Amended in Senate June 13, 2016

Amended in Assembly April 14, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1606

Introduced by begin delete Committee on Budget (Assembly Members Ting (Chair), Travis Allen, Bigelow, Bloom, Bonta, Campos, Chávez, Chiu, Cooper, Gordon, Grove, Harper, Holden, Irwin, Kim, Lackey, McCarty, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Patterson, Rodriguez, Thurmond, Wilk, and Williams) end delete begin insert Committee on Budget (Assembly Members Ting (Chair), Bloom, Bonta, Campos, Chiu, Cooper, Gordon, Holden, Irwin, McCarty, Mullin, Nazarian, end insert begin insert O end insert begin insert ’Donnell, Rodriguez, Thurmond, and Williams) end insert

January 7, 2016

begin delete An act relating to the Budget Act of 2016. end delete begin insert An act to amend Section 1180.4 of the Health and Safety Code, to amend Section 10430 of the Public Contract Code, to amend Sections 4519.5, 4659.2, 4681.5, 4681.6, 4685.8, 4690.5, 4691.6, 4691.9, and 4870 of, to add Sections 4437, 4474.15, 4474.6, and 4572 to, and to repeal Section 4435.1 of, the Welfare and Institutions Code, and to amend Section 15 of Chapter 3 of the Statutes of 2016, Second Extraordinary Session, relating to developmental services, and making an appropriation therefor, to take effect immediately, bill related to the budget. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1606, as amended, Committee on Budget. begin delete Budget Act of 2016. end delete begin insert Developmental services. end insert

begin insert

(1) Existing law vests in the State Department of Developmental Services jurisdiction over developmental centers for the provision of residential care to individuals with developmental disabilities, including the Sonoma Developmental Center, the Fairview Developmental Center, and the Porterville Developmental Center.

end insert begin insert

This bill would require the department to report quarterly to the Joint Legislative Budget Committee the estimated amount of General Fund expenditures used to backfill federal funding as a result of the decertification of intermediate care facility units at the Sonoma Developmental Center. The bill would also require, if the intermediate care facility units at the Fairview Developmental Center or the Porterville Developmental Center are decertified by the federal government in the 2016-17 fiscal year, the department to report quarterly to the Joint Legislative Budget Committee the estimated amount of General Fund expenditures used to backfill federal funding as a result of the decertification or decertifications.

end insert begin insert

(2) Existing law requires the department to comply with procedural requirements when closing a developmental center, including submitting a detailed plan to the Legislature and holding at least one public hearing. Existing law requires the State Department of Developmental Services to submit, on or before October 1, 2015, a plan to the Legislature to close one or more developmental centers.

end insert begin insert

This bill would require the department to include an update to the Legislature in the 2017-18 May Revision regarding how the department will ensure access to crisis services after the closure of a developmental center and how the state will maintain its role in providing residential services to those whom private sector vendors cannot or will not serve. The bill would also require the department to post on its Internet Web site a monthly progress report regarding the development of residential capacity by each regional center, as specified.

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(3) Existing law requires the State Department of Developmental Services to provide followup services to help ensure a smooth transition to the community when an individual transitions from a developmental center to a community living arrangement.

end insert begin insert

Existing law establishes the Medi-Cal program, administered by the State Department of Health Care Services, under which basic health care services are provided to qualified low-income persons. The Medi-Cal program is, in part, governed and funded by federal Medicaid provisions. Existing law authorizes the department to provide health care services to beneficiaries through various models of managed care, including through a comprehensive program of managed health care plan services for Medi-Cal recipients residing in clearly defined geographical areas.

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This bill would require the State Department of Developmental Services and the State Department of Health Care Services to coordinate the transition of health care services for Medi-Cal eligible consumers who are transitioning from a developmental center into the community, as specified. The bill would require the State Department of Health Care Services to issue transition requirements for specified consumers. The bill would authorize the State Department of Health Care Services to implement those provisions by means of all-county letters, plan letters, plan or provider bulletins, or similar instructions. The bill would provide that its provisions shall be implemented only to the extent that any necessary federal approvals are obtained and federal financial participation is available.

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(4) Existing law, the Lanterman Developmental Disabilities Services Act, requires the State Department of Developmental Services to contract with regional centers to provide services and supports to individuals with developmental disabilities and their families.

end insert begin insert

Existing law also requires the department to implement an improved, unified quality assessment system, as specified. Existing law requires each regional center to, on or before August 1 of each year, submit to the department and the State Council on Developmental Disabilities a program budget plan for the subsequent budget year, as specified.

end insert begin insert

This bill would require the department to, on or before February 1 of each year, report to the Legislature and post on its Internet Web site specified supplemental budget information, including an estimate for the annual budget for each developmental center and the current fiscal year allocations of total and per capita funding for operations and purchase of services for each regional center. The bill would require the department to develop and implement a plan to monitor, evaluate, and improve the quality of community-based services through the use of a performance dashboard, to be published annually and include, among other things, recognized quality and access measures. The bill would require that, with the fiscal and research resources included as part of the Budget Act of 2016, the department annually assess specified data, including the performance dashboard data.

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(5) Existing law requires the State Department of Developmental Services and regional centers to annually collaborate to compile specified data relating to purchase of service authorization, utilization, and expenditure by each regional center. Existing law requires each regional center to annually report to the department regarding its implementation of specified requirements and requires the report to include, among other things, whether the data indicates a need to reduce disparities in the purchase of services among consumers in the regional center’s catchment area, and if so, the regional center’s recommendations and plan to promote equity and reduce disparities in the purchase of services. Existing law requires the department to, subject to available funding, allocate funding to regional centers to assist with the implementation of those recommendations and plans.

end insert begin insert

This bill would require each regional center to consult with stakeholders regarding activities that may be effective in addressing disparities in the receipt of regional center services and the regional center’s proposed requests for the above-mentioned funding and would also require each regional center to identify the stakeholders consulted with and to include information on how it incorporated stakeholder input into its requests. The bill would require the department to review requests for funding within 45 days from a specified deadline and would require each regional center to report to the department, as specified, how the funding allocations were used, among other things.

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(6) Existing law requires regional center vendors that provide residential services or supported living services, long-term health care facilities, as defined, and acute psychiatric hospitals, as defined, to report each death or serious injury of a person occurring during, or related to, the use of seclusion, physical restraint, or chemical restraint, as specified.

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This bill would additionally require regional center vendors that provide crisis services to make those reports. The bill would also require regional center vendors that provide crisis or residential services or supported living services, long-term health care facilities, and acute psychiatric hospitals, to report any unexpected or suspicious death, regardless of whether the cause is immediately known, any allegation of sexual assault, as defined, in which the alleged perpetrator is a staff member, service provider, or facility employee or contractor, and any report made to the local law enforcement agency in the jurisdiction in which the facility is located that involves physical abuse, as defined, in which a staff member, service provider, or facility employee or contractor is implicated. In addition, the bill would require those entities to report on a monthly basis, as specified, the number of incidents of seclusion and the duration of time spent per incident in seclusion, the number of incidents of the use of behavioral restraints and the duration of time spent per incident of restraint, and the number of times an involuntary emergency medication is used to control behavior.

end insert begin insert

(7) Existing law requires the State Department of Developmental Services, contingent upon approval of federal funding, to establish and implement a state Self-Determination Program, as defined, that would be available in every regional center catchment area to provide participants and their families, within an individual budget, increased flexibility and choice and greater control over decisions, resources, and needed and desired services and supports to implement their individual program plan (IPP), in accordance with prescribed requirements. Existing law makes each regional center responsible for implementing the Self-Determination Program, as specified. Existing law also requires each regional center to contract with local consumer of family-run organizations to conduct outreach through local meetings and to collaborate with local consumer or family-run organizations to jointly conduct training about the Self-Determination Program. Existing law requires each regional center to establish a local volunteer advisory committee to provide oversight of the Self-Determination Program.

end insert begin insert

This bill would require each regional center to consult with the local volunteer advisory committee in conducting the above-described outreach and training and would authorize the advisory committee to designate members to represent the committee at the training.

end insert begin insert

(8) The Lanterman Developmental Disabilities Services Act requires the State Department of Developmental Services to contract with regional centers to provide respite services and supported employment services. Existing law, effective June 9, 2016, and commencing July 1, 2016, requires the rate for family-member provided respite services authorized by the department and in operation on June 30, 2016, to be increased by 5%.

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This bill would additionally require the rates for out-of-home respites services in effect on June 30, 2016, to be increased by 5%.

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(9) Existing law requires the State Department of Developmental Services to establish guidelines and oversee a program, to the extent funds are appropriated in the annual Budget Act for this purpose, to increase paid internship opportunities for individuals with developmental disabilities, as specified, and to fund incentive payments for these internships on and after July 1, 2016. Existing law requires the program to be administered by community service providers, subject to specified criteria. On and after July 1, 2016, existing law also provides incentive payments for purposes of increasing employment placements by providers of supported employment services, as specified.

end insert begin insert

The bill would require the individual placed for employment to be employed for at least 30 days in order for a provider to receive the first incentive payment for an initial employment placement under these provisions. The bill would clarify that these payments are not available to providers that place individuals into internships, until the individual transitions into a competitive integrated employment placement. The bill would provide that these incentive payments apply to regional center service providers, rather than providers of supported employment services, and would prohibit payments made under the program from being in addition to specified placement payments for supported employment services. The bill would make other clarifying changes to these provisions with regard to payments, as specified.

end insert begin insert

(10) Existing law, the California Early Intervention Services Act, provides a statewide system of coordinated, comprehensive, family-centered, multidisciplinary, and interagency programs that are responsible for providing appropriate early intervention services and support to all eligible infants and toddlers, as defined, and their families. The act requires these services to be provided pursuant to the existing regional center system.

end insert begin insert

Existing law requires the State Department of Developmental Services to contract with an organization representing one or more family resource centers, as defined, to provide outreach, information, and referral services for at-risk babies who are not otherwise eligible for the early intervention services. Existing law also requires regional centers to refer at-risk babies to the family resource centers.

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This bill would repeal the above requirement for the department to contract with an organization representing one or more family resource centers to provide outreach, information, and referral services for at-risk babies, and would repeal the requirement that regional centers refer at-risk babies to the family resource centers.

end insert begin insert

(11) Existing law requires the minimum wage for all industries, on and after January 1, 2016, to be not less than $10 per hour. Existing law requires the minimum wage for all industries to be not less than specified amounts to be increased from January 1, 2017, to January 1, 2022, inclusive, for employers employing 26 or more employees and from January 1, 2018, to January 1, 2023, inclusive, for employers employing 25 or fewer employees, except as specified.

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Existing law sets forth the State Department of Developmental Services’s and the regional center’s authority to establish provider rates. Existing law prohibits certain provider rate increases but, commencing July 1, 2014, authorizes increases to those rates as necessary to adjust employee wages to meet the state minimum wage law.

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This bill would authorize adjustment of prescribed provider rates commencing January 1, 2017, if the adjustment is necessary in order to pay employees no less than the increased minimum wage, as described above.

end insert begin insert

(12) Existing law prohibits a regional center from approving a service level for a residential service provider if the approval would result in an increase in the rate to be paid to the provider that is greater than the rate that is in effect on June 30, 2008, unless the regional center demonstrates to the State Department of Developmental Services that the approval is necessary to protect the consumer’s health or safety and the department has granted prior written authorization.

end insert begin insert

This bill would additionally prohibit that approval if it would result in an increase in state costs. The bill would require the department to, effective July 1, 2016, establish a rate schedule for residential community care facilities vendored to provide services to a maximum of four persons with developmental disabilities. The bill would exempt from the prohibition described above only residential community care facilities vendored to provide services to a maximum of four persons with developmental disabilities if either the regional center demonstrates to the department that the approval is necessary to protect the consumer’s health or safety and the department has granted prior written authorization or if the approved service level is not higher than the service level in effect at the time of implementation of the new rate schedule. The bill would require regional centers to submit a specified report to the department by February 1, 2017, regarding the number residential community care facilities with those rates.

end insert begin insert

(13) Under existing law, the State Department of Social Services regulates the licensure and operation of various care facilities, including community care facilities and enhanced behavioral supports homes. Existing law prohibits community care facilities, among other health and care facilities, from using physical restraint or containment as an extended procedure.

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This bill would prohibit enhanced behavioral supports homes from using physical restraint or containment for more than 15 consecutive minutes, except as specified.

end insert begin insert

(14) Existing law provides that specified contracts entered into by any state agency for goods, services, or other specified activities, whether awarded through competitive bidding or not, are void unless and until approved by the Department of General Services, and requires denial of approval if the contract does not meet the required specifications of the bidding process. That law exempts certain transactions and contracts from that law, as specified.

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This bill would make those laws inapplicable, subject to the approval of the Director of Developmental Services, to specified employees of the department for the purpose of the employee becoming a vendor of a regional center for persons with developmental disabilities, as specified.

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(15) Existing law appropriates $287,000,000 to the State Department of Developmental Services to, commencing July 1, 2016, among other things, increase rates and wages for certain developmental services providers and fund incentive payments for competitive integrated employment opportunities and internships for individuals with developmental disabilities.

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This bill would appropriate $186,200,000 in reimbursements associated with the above-mentioned appropriated funds to the State Department of Developmental Services for the same specified purposes.

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(16) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

end insert begin delete

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2016.

end delete

Vote: majority. Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 1180.4 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

1180.4.  

(a) A facility described in subdivision (a) of Section
1180.2 or subdivision (a) of Section 1180.3 shall conduct an initial
assessment of each person prior to a placement decision or upon
admission to the facility, or as soon thereafter as possible. This
assessment shall include input from the person and from someone
whom he or she desires to be present, such as a family member,
significant other, or authorized representative designated by the
person, and if the desired third party can be present at the time of
admission. This assessment shall also include, based on the
information available at the time of initial assessment, all of the
following:

(1) A person’s advance directive regarding deescalation or the
use of seclusion or behavioral restraints.

(2) Identification of early warning signs, triggers, and
precipitants that cause a person to escalate, and identification of
the earliest precipitant of aggression for persons with a known or
suspected history of aggressiveness, or persons who are currently
aggressive.

(3) Techniques, methods, or tools that would help the person
control his or her behavior.

(4) Preexisting medical conditions or any physical disabilities
or limitations that would place the person at greater risk during
restraint or seclusion.

(5) Any trauma history, including any history of sexual or
physical abuse that the affected person feels is relevant.

(b) A facility described in subdivision (a) of Section 1180.2 or
subdivision (a) of Section 1180.3 may use seclusion or behavioral
restraints for behavioral emergencies only when a person’s
behavior presents an imminent danger of serious harm to self or
others.

(c) A facility described in subdivision (a) of Section 1180.2 or
subdivision (a) of Section 1180.3 begin delete may end delete begin insert shall end insert not use either of the
following:

(1) A physical restraint or containment technique that obstructs
a person’s respiratory airway or impairs the person’s breathing or
respiratory capacity, including techniques in which a staff member
places pressure on a person’s back or places his or her body weight
against the person’s torso or back.

(2) A pillow, blanket, or other item covering the person’s face
as part of a physical or mechanical restraint or containment process.

(d) A facility described in subdivision (a) of Section 1180.2 or
subdivision (a) of Section 1180.3 begin delete may end delete begin insert shall end insert not use physical or
mechanical restraint or containment on a person who has a known
medical or physical begin delete condition, end delete begin insert condition end insert and begin delete where end delete there is reason
to believe that the use would endanger the person’s life or seriously
exacerbate the person’s medical condition.

(e) (1) A facility described in subdivision (a) of Section 1180.2
or subdivision (a) of Section 1180.3 begin delete may end delete begin insert shall end insert not use prone
mechanical restraint on a person at risk for positional asphyxiation
as a result of one of the following risk factors that are known to
the provider:

(A) Obesity.

(B) Pregnancy.

(C) Agitated delirium or excited delirium syndromes.

(D) Cocaine, methamphetamine, or alcohol intoxication.

(E) Exposure to pepper spray.

(F) Preexisting heart disease, including, but not limited to, an
enlarged heart or other cardiovascular disorders.

(G) Respiratory conditions, including emphysema, bronchitis,
or asthma.

(2) Paragraph (1) shall not apply when written authorization
has been provided by a physician, made to accommodate a person’s
stated preference for the prone position or because the physician
judges other clinical risks to take precedence. The written
authorization may not be a standing order, and shall be evaluated
on a case-by-case basis by the physician.

(f) A facility described in subdivision (a) of Section 1180.2 or
subdivision (a) of Section 1180.3 shall avoid the deliberate use of
prone containment techniques whenever possible, utilizing the
best practices in early intervention techniques, such as deescalation.
If prone containment techniques are used in an emergency situation,
a staff member shall observe the person for any signs of physical
duress throughout the use of prone containment. Whenever
possible, the staff member monitoring the person shall not be
involved in restraining the person.

(g) A facility described in subdivision (a) of Section 1180.2 or
subdivision (a) of Section 1180.3 begin delete may end delete begin insert shall end insert not place a person in
a facedown position with the person’s hands held or restrained
behind the person’s back.

(h) A facility described in subdivision (a) of Section 1180.2 or
subdivision (a) of Section 1180.3 begin delete may end delete begin insert shall end insert not use physical
restraint or containment as an extended procedure. begin insert A facility
described in subdivision (a) of Section 4684.80 of the Welfare and
Institutions Code that is licensed by the State Department of Social
Services shall not use physical restraint or containment for more
than 15 consecutive minutes. The department may, by regulation,
authorize an exception to the 15 minute maximum duration if
necessary to protect the immediate health and safety of residents
or others from risk of imminent serious physical harm. end insert

(i) A facility described in subdivision (a) of Section 1180.2 or
subdivision (a) of Section 1180.3 shall keep under constant,
face-to-face human observation a person who is in seclusion and
in any type of behavioral restraint at the same time. Observation
by means of video camera may be utilized only in facilities that
are already permitted to use video monitoring under federal
regulations specific to that facility.

(j) A facility described in subdivision (a) of Section 1180.2 or
subdivision (a) of Section 1180.3 shall afford to persons who are
restrained the least restrictive alternative and the maximum freedom
of movement, while ensuring the physical safety of the person and
others, and shall use the least number of restraint points.

(k) A person in a facility described in subdivision (a) of Section
1180.2 and subdivision (a) of Section 1180.3 has the right to be
free from the use of seclusion and behavioral restraints of any form
imposed as a means of coercion, discipline, convenience, or
retaliation by staff. This right includes, but is not limited to, the
right to be free from the use of a drug used in order to control
behavior or to restrict the person’s freedom of movement, if that
drug is not a standard treatment for the person’s medical or
psychiatric condition.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 10430 of the end insert begin insert Public Contract Code end insert begin insert is amended
to read: end insert

10430.  

This chapter does not apply to any of the following:

(a) The Regents of the University of California and the Trustees
of the California State University, except that Article 9
(commencing with Section 10420) shall apply to the Trustees of
the California State University.

(b) (1) Transactions covered under Chapter 3 (commencing
with Section 12100), except that Sections 10365.5, 10410, and
10411 shall apply to all transactions under that chapter.

(2) Notwithstanding paragraph (1), Section 10365.5 shall not
apply to incidental advice or suggestions made outside of the scope
of a consulting services contract.

(3) (A) Notwithstanding paragraph (1), Section 10365.5 shall
not apply to a contract that is part of a single competitive
procurement conducted in more than one stage for information
technology goods or services, when the Director of the Department
of General Services and the Chief Information Officer determine
that there is no conflict of interest under Section 10365.5 and that
it is in the best interest of the state to utilize this procurement
method. Nothing in this section shall preclude the applicability of
Section 12112 to this procurement method.

(B) The Department of General Services shall annually submit
a report on its Internet Web site describing each determination
granted pursuant to subparagraph (A), listing the basis for the
determination, and disclosing the total amount of money paid or
to be paid to the contractor under the contract that was the subject
of the determination. The department shall provide notice to the
Joint Legislative Budget Committee within 30 days of the posting
of the report.

(C) For purposes of this paragraph, “information technology”
means information technology goods or services, or both, as
appropriate.

(c) Except as otherwise provided in this chapter, any entity
exempted from Section 10295. However, the Board of Governors
of the California Community Colleges shall be governed by this
chapter, except as provided in Sections 10295, 10335, and 10389.
The Department of Water Resources shall be governed by this
chapter, except as provided in Sections 10295.6, 10304.1, 10335,
and 10340.

(d) Transactions covered under Chapter 10 (commencing with
Section 4525) of Division 5 of Title 1 of the Government Code.

(e) Except as provided for in subdivision (c), members of boards
or commissions who receive no payment other than payment for
each meeting of the board or commission, payment for preparatory
time, and payment for per diem.

(f) The emergency purchase of protective vests for correctional
peace officers whose duties require routine contact with state prison
inmates. This subdivision shall remain operative only until January
1, 1987.

(g) Spouses of state officers or employees and individuals and
entities that employ spouses of state officers and employees, that
are vendored to provide services to regional center clients pursuant
to Section 4648 of the Welfare and Institutions Code if the vendor
of services, in that capacity, does not receive any material financial
benefit, distinguishable from the benefit to the public generally,
from any governmental decision made by the state officer or
employee.

begin insert

(h) Subject to the approval of the Director of Developmental
Services, or his or her designee, a state employee of the department
who is qualified to provide necessary services for regional center
consumers, for the purpose of that employee becoming a vendor
of a regional center pursuant to Section 4648 of the Welfare and
Institutions Code. The state employee shall terminate employment
with any state agency or department before providing certification
to the regional center pursuant to paragraph (9) of subdivision
(a) of Section 54326 of Title 17 of the California Code of
Regulations, as part of the vendorization process. A contract
entered into by a regional center and a state employee, in his or
her capacity as a private citizen, to become a vendor of the
regional center does not constitute a state contract within the
meaning of Section 1090 of the Government Code. Accordingly,
the state employee has no financial interest in a state contract
under these circumstances.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 4435.1 of the end insert begin insert Welfare and Institutions Code end insert

begin insert is repealed. end insert

begin delete

4435.1.  

(a) Effective July 1, 2011, the department shall
establish a program for at-risk babies. For purposes of this section,
“at-risk baby” means a child under 36 months of age who is
otherwise not eligible for the California Early Intervention Program
pursuant to Title 14 (commencing with Section 95000) of the
Government Code or services provided under the Lanterman
Developmental Disabilities Services Act (Division 4.5
(commencing with Section 4500)) and whose genetic, medical,
developmental, or environmental history is predictive of a
substantially greater risk for developmental disability than that for
the general population, the presence of which is diagnosed by
qualified clinicians.

(b) Effective July 1, 2011, when a regional center intake and
assessment determination is that a baby is an at-risk baby as defined
in subdivision (a), the regional center shall, with parental consent,
refer the baby and family to the family resource center set forth in
subdivision (c) for outreach, information, and referral services.

(c) Effective July 1, 2011, the department shall contract with
an organization representing one or more family resource centers
which receive federal funds from Subchapter III of the Individuals
with Disabilities Education Act (20 U.S.C. Sec. 1431, et seq.) to
provide outreach, information, and referral services to generic
agencies for children under 36 months of age who are otherwise
not eligible for the California Early Intervention Program pursuant
to Title 14 (commencing with Section 95000) of the Government
Code or services provided under the Lanterman Developmental
Disabilities Services Act (Division 4.5 (commencing with Section
4500)). The organization with which the department contracts shall
be an organization that supports families of young children with
intellectual or developmental disabilities, and those at risk of
intellectual or developmental disabilities by ensuring the
continuance, expansion, promotion, and quality of local family
support services, including coordination, outreach, and referral.
Any contracts entered into pursuant to this section shall be exempt
from state contracting and procurement requirements set forth in
the Government and Public Contract Codes and shall take effect
immediately to protect the health and safety of the children
receiving the services.

(d) The contract described in subdivision (c) shall do both of
the following:

(1) Ensure the expeditious delivery of outreach, information,
and referral services to at-risk babies.

(2) Require the organization to establish a process with the
applicable regional center or centers for referral of the at-risk baby
to the regional center when the family resource center suspects
that the child may be eligible for services pursuant to the California
Early Intervention Program or the Lanterman Developmental
Disabilities Services Act.

end delete

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 4437 is added to the end insert begin insert Welfare and Institutions
Code end insert begin insert , to read: end insert

begin insert

begin insert 4437. end insert   

(a) The State Department of Developmental Services
shall, on or before February 1 of each year, report to the
Legislature and post on its Internet Web site supplemental budget
information, which shall include both of the following:

(1) For each developmental center, an estimate for the annual
budget, including a breakdown of the staffing costs for Porterville
Developmental Center’s general treatment area and secured
treatment area.

(2) For each regional center, all of the following information:

(A) Current fiscal year allocations of total and per capita
funding for operations and purchase of services.

(B) The number of persons with developmental disabilities being
served by the regional center in the current fiscal year.

(C) The past fiscal year and current fiscal year information on
the funding for its community placement plan, including a
breakdown of the funding for startup, assessment, placement, and
deflection.

(D) Staff information.

(b) A report to be submitted pursuant to subdivision (a) shall
be submitted in compliance with Section 9795 of the Government
Code.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 4474.15 is added to the end insert begin insert Welfare and Institutions
Code end insert begin insert , end insert immediately following Section 4474.11 begin insert , to read: end insert

begin insert

begin insert 4474.15. end insert   

(a) The State Department of Developmental Services
shall include an update to the Legislature in the 2017-18 May
Revision regarding how the department will provide access to
crisis services after the closure of a developmental center and how
the state will maintain its role in providing residential services to
those whom private sector vendors cannot or will not serve. As
part of this plan, the department shall assess the option of
expanding the community state staff program authorized in Section
4474.2 to allow the department’s employees to serve as regional
crisis management teams that provide assessment, consultation,
and resolution for persons with developmental disabilities in crisis
in the community.

(b) The State Department of Developmental Services shall post
on its Internet Web site a monthly progress report regarding the
development of residential capacity by each regional center. The
report shall include information on monthly targets for individuals
moving out of a developmental center based on transition activities
and community resource development activities by each regional
center. The report shall also provide an explanation of any targets
that have not been met.

(c) (1) The requirement for submitting a report imposed under
subdivision (a) is inoperative on January 1, 2020, pursuant to
Section 10231.5 of the Government Code.

(2) A report to be submitted pursuant to subdivision (a) shall
be submitted in compliance with Section 9795 of the Government
Code.

end insert

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 4474.6 is added to the end insert begin insert Welfare and Institutions
Code end insert begin insert , to read: end insert

begin insert

begin insert 4474.6. end insert   

(a) The State Department of Developmental Services
and the State Department of Health Care Services shall coordinate
the transition of health care services for Medi-Cal eligible
consumers who are transitioning from a developmental center into
the community.

(b) In order to meet the unique medical health needs of
consumers who will be transitioning from a developmental center
into the community, whose individual program plans document
the need for coordinated medical and specialty care, and who are
Medi-Cal eligible, the State Department of Health Care Services
shall issue transition requirements including referral practices,
service authorization practices, coordination of case management
services, education and training services, and the management
and sharing of medical records, to applicable Medi-Cal managed
care health plans and monitor compliance. These transition
requirements shall include, but are not limited to, processes for
individuals assigned to a Medi-Cal managed care plan which
promote coordination of care during and following the transition,
identification of providers prior to a transition occurring, and the
continuation of medically necessary covered services. These
processes shall be described in a transition plan which will be
shared with stakeholders prior to being finalized. The final
transition plan shall be submitted to the Joint Legislative Budget
Committee no later than December 31, 2016.

(c) Notwithstanding Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code,
the State Department of Health Care Services may implement,
interpret, or make specific this section, in whole or in part, by
means of all-county letters, plan letters, plan or provider bulletins,
policy letters, or other similar instructions, without taking
regulatory action.

(d) The State Department of Health Care Services shall
implement this section only to the extent that any necessary federal
approvals are obtained and federal financial participation is
available.

end insert

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 4519.5 of the end insert begin insert Welfare and Institutions Code end insert

begin insert is amended to read: end insert

4519.5.  

(a) The department and the regional centers shall
annually collaborate to compile data in a uniform manner relating
to purchase of service authorization, utilization, and expenditure
by each regional center with respect to all of the following:

(1) The age of the consumer, categorized by the following:

(A) Birth to two years of age, inclusive.

(B) Three to 21 years of begin delete age end delete begin insert age, end insert inclusive.

(C) Twenty-two years of age and older.

(2) Race or ethnicity of the consumer.

(3) Primary language spoken by the consumer, and other related
details, as feasible.

(4) Disability detail, in accordance with the categories
established by subdivision (a) of Section 4512, and, if applicable,
a category specifying that the disability is unknown.

(5) Residence type, subcategorized by age, race or ethnicity,
and primary language.

(6) Number of instances when the written copy of the individual
program plan was provided at the request of the consumer and,
when appropriate, his or her parents, legal guardian or conservator,
or authorized representative, in a language other than a threshold
language, as defined by paragraph (3) of subdivision (a) of Section
1810.410 of Title 9 of the California Code of Regulations, if that
written copy was provided more than 60 days after the request.

(b) The data reported pursuant to subdivision (a) shall also
include the number and percentage of individuals, categorized by
age, race or ethnicity, and disability, and by residence type, as set
forth in paragraph (5) of subdivision (a), who have been determined
to be eligible for regional center begin delete services end delete begin insert services, end insert but are not
receiving purchase of service funds.

(c) By March 31, 2013, each regional center shall post the data
described in this section that is specific to the regional center on
its Internet Web site. Commencing on December 31, 2013, each
regional center shall annually post this data by December 31. Each
regional center shall maintain all previous years’ data on its Internet
Web site.

(d) By March 31, 2013, the department shall post the information
described in this section on a statewide basis on its Internet Web
site. Commencing December 31, 2013, the department shall
annually post this information by December 31. The department
shall maintain all previous years’ data on its Internet Web site.
The department shall also post notice of any regional center
stakeholder meetings on its Internet Web site.

(e) Within three months of compiling the data with the
department, and annually thereafter, each regional center shall
meet with stakeholders in one or more public meetings regarding
the data. The meeting or meetings shall be held separately from
any meetings held pursuant to Section 4660. The regional center
shall provide participants of these meetings with the data and any
associated begin delete information, end delete begin insert information related to improvements in
the provision of developmental services to underserved
communities end insert and shall conduct a discussion of the data and the
associated information in a manner that is culturally and
linguistically appropriate for that community, including providing
alternative communication services, as required by Sections 11135
to 11139.7, inclusive, of the Government Code and implementing
regulations. Regional centers shall inform the department of the
scheduling of those public meetings 30 days prior to the meeting.
Notice of the meetings shall also be posted on the regional center’s
Internet Web site 30 days prior to the meeting and shall be sent to
individual stakeholders and groups representing underserved
communities in a timely manner. Each regional center shall, in
holding the meetings required by this subdivision, consider the
language needs of the community and shall schedule the meetings
at times and locations designed to result in a high turnout by the
public and underserved communities.

(f) (1) Each regional center shall annually report to the
department regarding its implementation of the requirements of
this section. The report shall include, but shall not be limited to,
all of the following:

(A) Actions the regional center took to improve public
attendance and participation at stakeholder meetings, including,
but not limited to, attendance and participation by underserved
communities.

(B) Copies of minutes from the meeting and attendee comments.

(C) Whether the data described in this section indicates a need
to reduce disparities in the purchase of services among consumers
in the regional center’s catchment area. If the data does indicate
that need, the regional center’s recommendations and plan to
promote equity, and reduce disparities, in the purchase of services.

(2) Each regional center and the department shall annually post
the reports required by paragraph (1) on its Internet Web site by
August 31.

(g) (1) The department shall consult with stakeholders,
including consumers and families that reflect the ethnic and
language diversity of regional center consumers, regional centers,
advocates, providers, the protection and advocacy agency described
in Section 4901, and those entities designated as University Centers
for Excellence in Developmental Disabilities Education, Research,
and Service pursuant to Section 15061 of Title 42 of the United
States Code, to achieve the following objectives:

(A) Review the data compiled pursuant to subdivision (a).

(B) Identify barriers to equitable access to services and supports
among consumers and develop recommendations to help reduce
disparities in purchase of service expenditures.

(C) Encourage the development and expansion of culturally
appropriate services, service delivery, and service coordination.

(D) Identify best practices to reduce disparity and promote
equity.

(2) The department shall report the status of its efforts to satisfy
the requirements of paragraph (1) during the 2016-17 legislative
budget subcommittee hearing process.

(h)  begin insert (1) end insert begin insert   end insert Subject to available funding, the department shall
allocate funding to regional centers to assist with implementation
of the recommendations and plans developed pursuant to
subdivisions (f) and (g). Activities funded through these allocations
may include, but are not limited to, pay differentials supporting
direct care bilingual staff of community-based service providers,
parent or caregiver education programs, cultural competency
training for regional center staff, outreach to underserved
populations, or additional culturally appropriate service types or
service delivery models.

begin insert

(2) Each regional center shall consult with stakeholders
regarding activities that may be effective in addressing disparities
in the receipt of regional center services and the regional center’s
proposed requests for the funding specified in paragraph (1). Each
regional center shall identify the stakeholders it consulted with
and include information on how it incorporated the input of
stakeholders into its requests.

end insert begin insert

(3) The department shall review requests for funding within 45
days from the deadline specified in the department’s guidance to
regional centers.

end insert begin insert

(4) Each regional center shall report to the department in the
annual report required by subdivision (f) how the funding
allocations were used and shall include recommendations of
priorities for activities that may be effective in addressing
disparities, based on the consultation with stakeholders.

end insert

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 4572 is added to the end insert begin insert Welfare and Institutions
Code end insert begin insert , to read: end insert

begin insert

begin insert 4572. end insert   

The State Department of Developmental Services shall
develop and implement a plan to monitor, evaluate, and improve
the quality of community-based services through the use of a
performance dashboard. The department shall work with
stakeholders, including, but not limited to, regional centers,
consumer advocates, providers, and the Legislature, on the
development of the dashboard. The dashboard shall be published
annually and shall include, but not be limited to, all of the following
metrics:

(a) Recognized quality and access measures.

(b) Measures to indicate the movement toward compliance with
the federal Home and Community-Based Services Waiver rules
(CMS 2249-F and CMS 2296-F).

(c) Measures to evaluate the changes in the number of
consumers who work in competitive integrated employment.

(d) The number of complaints referred to the department
pursuant to subdivision (c) of Section 4731, for every 1,000
consumers served, by each regional center.

(e) The number of administrative fair hearings held pursuant
to Article 3 (commencing with Section 4710) of Chapter 7,
separated by eligibility and service issues, for individuals ages
three and over, for every one thousand consumers served, by each
regional center.

end insert

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 4659.2 of the end insert begin insert Welfare and Institutions Code end insert

begin insert is amended to read: end insert

4659.2.  

(a) For the purposes of this section, the following
definitions apply:

(1) “Physical restraint” means any behavioral or mechanical
restraint, as defined in Section 1180.1 of the Health and Safety
Code.

(2) “Chemical restraint” means a drug that is used to control
behavior and that is used in a manner not required to treat the
patient’s medical conditions.

(3) “Seclusion” means involuntary confinement of a person
alone in a room or an area as defined in subdivision (e) of Section
1180.1 of the Health and Safety Code.

(4) “Long-term health care facility” means a facility, as defined
in Section 1418 of the Health and Safety Code, that is required to
report to a regional center pursuant to Section 54327 of Title 17
of the California Code of Regulations.

(5) “Acute psychiatric hospital” means a facility, as defined in
subdivision (b) of Section 1250 of the Health and Safety Code,
including an institution for mental disease, that is a regional center
vendor.

(6) “Regional center vendor” means an agency, individual, or
service provider that a regional center has approved to provide
vendored or contracted services or supports pursuant to paragraph
(3) of subdivision (a) of Section 4648.

begin insert

(b) (1) All regional center vendors that provide crisis or
residential services or supported living services, long-term health
care facilities, and acute psychiatric hospitals shall report to the
agency designated pursuant to subdivision (i) of Section 4900 all
of the following:

end insert begin insert

(A) Each death or serious injury of a person occurring during,
or related to, the use of seclusion, physical restraint, or chemical
restraint, or any combination thereof.

end insert begin insert

(B) Any unexpected or suspicious death, regardless of whether
the cause is immediately known.

end insert begin insert

(C) Any allegation of sexual assault, as defined in Section
15610.63, in which the alleged perpetrator is a staff member,
service provider, or facility employee or contractor.

end insert begin insert

(D) Any report made to the local law enforcement agency in
the jurisdiction in which the facility is located that involves physical
abuse, as defined in Section 15610.63, in which a staff member,
service provider, or facility employee or contractor is implicated.

end insert begin delete

(b)

end delete

begin insert (2) end insert   begin delete All regional center vendors that provide residential services
or supported living services, long-term health care facilities, and
acute psychiatric hospitals end delete begin insert The reports described in paragraph (1) end insert
shall begin delete report each death or serious injury of a person occurring
during, or related to, the use of seclusion, physical restraint, or
chemical restraint, or any combination thereof, to the agency
designated pursuant to subdivision (i) of Section 4900 end delete begin insert be made end insert no
later than the close of the business day following the death or
serious injury. The report shall include the encrypted identifier of
the person involved, and the name, street address, and telephone
number of the facility.

begin insert

(c) (1) On a monthly basis all regional center vendors that
provide crisis or residential services or supported living services,
long-term health care facilities, and acute psychiatric hospitals
shall report to the agency designated pursuant to subdivision (i)
of Section 4900 all of the following:

end insert begin insert

(A) The number of incidents of seclusion and the duration of
time spent per incident in seclusion.

end insert begin insert

(B) The number of incidents of the use of behavioral restraints
and the duration of time spent per incident of restraint.

end insert begin insert

(C) The number of times an involuntary emergency medication
is used to control behavior.

end insert begin insert

(2) The reports required pursuant to paragraph (1) shall include
the name, street address, and telephone number of the facility.

end insert

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 4681.5 of the end insert begin insert Welfare and Institutions Code end insert

begin insert is amended to read: end insert

4681.5.  

begin insert (a) end insert begin insert   end insert Notwithstanding any other begin delete provision of end delete law or
regulation, begin delete no end delete begin insert a end insert regional center begin delete may end delete begin insert shall not end insert approve begin delete any end delete begin insert a end insert service
level for a residential service provider, as defined in Section begin delete 56005 end delete
begin insert 56002 end insert of Title 17 of the California Code of Regulations, if the
approval would result in an increase in begin insert state costs or end insert the rate to be
paid to the provider that is greater than the rate that is in effect on
June 30, 2008, begin insert or, for residential service providers subject to
subdivision (b), end insert unless the regional center demonstrates to the
department that the approval is necessary to protect the consumer’s
health or safety and the department has granted prior written
authorization.

begin insert

(b) Notwithstanding subdivision (a) or any other law or
regulation, the department shall, effective July 1, 2016, establish
a rate schedule for residential community care facilities vendored
to provide services to a maximum of four persons with
developmental disabilities.

end insert begin insert

(c) Community care facilities with rates established pursuant
to subdivision (b) are subject to the regulatory requirements
contained in Subchapter 4 (commencing with Section 56001) of
Chapter 3 of Division 2 of Title 17 of the California Code of
Regulations.

end insert begin insert

(d) Rate changes made as a result of implementing the rate
schedule established pursuant to subdivision (b) for community
care facilities vendored to provide services to a maximum of four
persons with developmental disabilities are not subject to the
restrictions of subdivision (a) if the approved service level is not
higher than the service level in effect at the time of the change.

end insert begin insert

(e) No later than February 1, 2017, regional centers shall report
to the department on the number of residential community care
facilities with rates established pursuant to subdivision (b). The
report shall include, but not be limited to, both of the following:

end insert begin insert

(1) The number of facilities vendored since July 1, 2016, by
service level and vendored capacity.

end insert begin insert

(2) The number of facilities vendored prior to July 1, 2016, that
have subsequently been approved for a new rate, by service level,
vendored capacity, and prior vendored capacity, if applicable.

end insert

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 4681.6 of the end insert begin insert Welfare and Institutions Code end insert

begin insert is amended to read: end insert

4681.6.  

(a) Notwithstanding any other law or regulation,
commencing July 1, 2008:

(1) A regional center shall not pay an existing residential service
provider, for services where rates are determined through a
negotiation between the regional center and the provider, a rate
higher than the rate in effect on June 30, 2008, unless the increase
is required by a contract between the regional center and the vendor
that is in effect on June 30, 2008, or the regional center
demonstrates that the approval is necessary to protect the
consumer’s health or safety and the department has granted prior
written authorization.

(2) A regional center shall not negotiate a rate with a new
residential service provider, for services where rates are determined
through a negotiation between the regional center and the provider,
that is higher than the regional center’s median rate for the same
service code and unit of service, or the statewide median rate for
the same service code and unit of service, whichever is lower. The
unit of service designation shall conform with an existing regional
center designation or, if none exists, a designation used to calculate
the statewide median rate for the same service. The regional center
shall annually certify to the department its median rate for each
negotiated rate service code, by designated unit of service. This
certification shall be subject to verification through the
department’s biennial fiscal audit of the regional center.

(b) Notwithstanding subdivision (a), commencing begin delete July end delete begin insert January end insert
1, begin delete 2014, end delete begin insert 2017, end insert regional centers may negotiate a rate adjustment
with residential service providers regarding rates that are otherwise
restricted pursuant to subdivision (a), if the adjustment is necessary
in order to pay employees no less than the minimum wage as
established by Section 1182.12 of the Labor Code, as amended by
Chapter begin delete 351 end delete begin insert 4 end insert of the Statutes of begin delete 2013, end delete begin insert 2016, end insert and only for the
purpose of adjusting payroll costs associated with the minimum
wage increase. The rate adjustment shall be specific to the unit of
service designation that is affected by the increased minimum
wage, shall be specific to payroll costs associated with any increase
necessary to adjust employee pay only to the extent necessary to
bring pay into compliance with the increased state minimum wage,
and shall not be used as a general wage enhancement for employees
paid above the minimum wage. Regional centers shall maintain
documentation on the process to determine, and the rationale for
granting, any rate adjustment associated with the minimum wage
increase.

(c) Notwithstanding subdivision (a), commencing July 1, 2015,
regional centers may negotiate a rate adjustment with residential
service providers regarding rates that are otherwise restricted
pursuant to subdivision (a), if the adjustment is necessary to
implement Article 1.5 (commencing with Section 245) of Chapter
1 of Part 1 of Division 2 of the Labor Code, as added by Chapter
317 of the Statutes of 2014. The rate adjustment may be applied
only if a minimum of 24 hours or three days of paid sick leave per
year was not a benefit provided to employees as of June 30, 2015,
and shall be specific to payroll costs associated with any increase
necessary to compensate an employee up to a maximum of 24
hours or three days of paid sick leave in each year of employment.

(d) For purposes of this section, “residential service provider”
includes Adult Residential Facilities for Persons with Special
Health Care Needs, as described in Section 4684.50.

(e) This section shall not apply to those services for which rates
are determined by the State Department of Health Care Services,
or the State Department of Developmental Services, or are usual
and customary.

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 4685.8 of the end insert begin insert Welfare and Institutions Code end insert

begin insert is amended to read: end insert

4685.8.  

(a) The department shall implement a statewide
Self-Determination Program. The Self-Determination Program
shall be available in every regional center catchment area to provide
participants and their families, within an individual budget,
increased flexibility and choice, and greater control over decisions,
resources, and needed and desired services and supports to
implement their IPP. The statewide Self-Determination Program
shall be phased in over three years, and during this phase-in period,
shall serve up to 2,500 regional center consumers, inclusive of the
remaining participants in the self-determination pilot projects
authorized pursuant to Section 13 of Chapter 1043 of the Statutes
of 1998, as amended, and Article 4 (commencing with Section
4669.2) of Chapter 5. Following the phase-in period, the program
shall be available on a voluntary basis to all regional center
consumers, including residents in developmental centers who are
moving to the community, who are eligible for the
Self-Determination Program. The program shall be available to
individuals who reflect the disability, ethnic, and geographic
diversity of the state. The Department of Finance may approve,
upon a request from the department and no sooner than 30 days
following notification to the Joint Legislative Budget Committee,
an increase to the number of consumers served by the
Self-Determination Program before the end of the three-year
phase-in period.

(b) The department, in establishing the statewide program, shall
do both of the following:

(1) For the first three years of the Self-Determination Program,
determine, as part of the contracting process described in Sections
4620 and 4629, the number of participants each regional center
shall serve in its Self-Determination Program. To ensure that the
program is available on an equitable basis to participants in all
regional center catchment areas, the number of Self-Determination
Program participants in each regional center shall be based on the
relative percentage of total consumers served by the regional
centers minus any remaining participants in the self-determination
pilot projects authorized pursuant to Section 13 of Chapter 1043
of the Statutes of 1998, as amended, and Article 4 (commencing
with Section 4669.2) of Chapter 5 or another equitable basis.

(2) Ensure all of the following:

(A) Oversight of expenditure of self-determined funds and the
achievement of participant outcomes over time.

(B) Increased participant control over which services and
supports best meet his or her needs and the IPP objectives. A
participant’s unique support system may include the purchase of
existing service offerings from service providers or local
businesses, hiring his or her own support workers, or negotiating
unique service arrangements with local community resources.

(C) Comprehensive person-centered planning, including an
individual budget and services that are outcome based.

(D) Consumer and family training to ensure understanding of
the principles of self-determination, the planning process, and the
management of budgets, services, and staff.

(E) Choice of independent facilitators who can assist with the
person-centered planning process and choice of financial
management services providers vendored by regional centers who
can assist with payments and provide employee-related services.

(F) Innovation that will more effectively allow participants to
achieve their goals.

(c) For purposes of this section, the following definitions apply:

(1) “Financial management services” means services or
functions that assist the participant to manage and direct the
distribution of funds contained in the individual budget, and ensure
that the participant has the financial resources to implement his or
her IPP throughout the year. These may include bill paying services
and activities that facilitate the employment of service and support
workers by the participant, including, but not limited to, fiscal
accounting, tax withholding, compliance with relevant state and
federal employment laws, assisting the participant in verifying
provider qualifications, including criminal background checks,
and expenditure reports. The financial management services
provider shall meet the requirements of Sections 58884, 58886,
and 58887 of Title 17 of the California Code of Regulations and
other specific qualifications established by the department. The
costs of financial management services shall be paid by the
participant out of his or her individual budget, except for the cost
of obtaining the criminal background check specified in subdivision
(w).

(2) “Independent facilitator” means a person, selected and
directed by the participant, who is not otherwise providing services
to the participant pursuant to his or her IPP and is not employed
by a person providing services to the participant. The independent
facilitator may assist the participant in making informed decisions
about the individual budget, and in locating, accessing, and
coordinating services and supports consistent with the participant’s
IPP. He or she is available to assist in identifying immediate and
long-term needs, developing options to meet those needs, leading,
participating, or advocating on behalf of the participant in the
person-centered planning process and development of the IPP, and
obtaining identified services and supports. The cost of the
independent facilitator, if any, shall be paid by the participant out
of his or her individual budget. An independent facilitator shall
receive training in the principles of self-determination, the
person-centered planning process, and the other responsibilities
described in this paragraph at his or her own cost.

(3) “Individual budget” means the amount of regional center
purchase of service funding available to the participant for the
purchase of services and supports necessary to implement the IPP.
The individual budget shall be determined using a fair, equitable,
and transparent methodology.

(4) “IPP” means individual program plan, as described in Section
4646.

(5) “Participant” means an individual, and when appropriate,
his or her parents, legal guardian or conservator, or authorized
representative, who has been deemed eligible for, and has
voluntarily agreed to participate in, the Self-Determination
Program.

(6) “Self-determination” means a voluntary delivery system
consisting of a defined and comprehensive mix of services and
supports, selected and directed by a participant through
person-centered planning, in order to meet the objectives in his or
her IPP. Self-determination services and supports are designed to
assist the participant to achieve personally defined outcomes in
community settings that promote inclusion. The Self-Determination
Program shall only fund services and supports provided pursuant
to this division that the federal Centers for Medicare and Medicaid
Services determines are eligible for federal financial participation.

(d) Participation in the Self-Determination Program is fully
voluntary. A participant may choose to participate in, and may
choose to leave, the Self-Determination Program at any time. A
regional center shall not require or prohibit participation in the
Self-Determination Program as a condition of eligibility for, or
the delivery of, services and supports otherwise available under
this division. Participation in the Self-Determination Program shall
be available to any regional center consumer who meets the
following eligibility requirements:

(1) The participant has a developmental disability, as defined
in Section 4512, and is receiving services pursuant to this division.

(2) The consumer does not live in a licensed long-term health
care facility, as defined in paragraph (44) of subdivision (a) of
Section 54302 of Title 17 of the California Code of Regulations.
An individual, and when appropriate his or her parent, legal
guardian or conservator, or authorized representative, who is not
eligible to participate in the Self-Determination Program pursuant
to this paragraph may request that the regional center provide
person-centered planning services in order to make arrangements
for transition to the Self-Determination Program, provided that he
or she is reasonably expected to transition to the community within
90 days. In that case, the regional center shall initiate
person-centered planning services within 60 days of that request.

(3) The participant agrees to all of the following terms and
conditions:

(A) The participant shall receive an orientation to the
Self-Determination Program prior to enrollment, which includes
the principles of self-determination, the role of the independent
facilitator and the financial management services provider,
person-centered planning, and development of a budget.

(B) The participant shall utilize the services and supports
available within the Self-Determination Program only when generic
services and supports are not available.

(C) The participant shall only purchase services and supports
necessary to implement his or her IPP and shall comply with any
and all other terms and conditions for participation in the
Self-Determination Program described in this section.

(D) The participant shall manage Self-Determination Program
services and supports within his or her individual budget.

(E) The participant shall utilize the services of a financial
management services provider of his or her own choosing and who
is vendored by a regional center.

(F) The participant may utilize the services of an independent
facilitator of his or her own choosing for the purpose of providing
services and functions as described in paragraph (2) of subdivision
(c). If the participant elects not to use an independent facilitator,
he or she may use his or her regional center service coordinator to
provide the services and functions described in paragraph (2) of
subdivision (c).

(e) A participant who is not Medi-Cal eligible may participate
in the Self-Determination Program and receive self-determination
services and supports if all other program eligibility requirements
are met and the services and supports are otherwise eligible for
federal financial participation.

(f) An individual receiving services and supports under a
self-determination pilot project authorized pursuant to Section 13
of Chapter 1043 of the Statutes of 1998, as amended, or pursuant
to Article 4 (commencing with Section 4669.2) of Chapter 5, may
elect to continue to receive self-determination services and supports
pursuant to this section or the regional center shall provide for the
participant’s transition from the self-determination pilot program
to other services and supports. This transition shall include the
development of a new IPP that reflects the services and supports
necessary to meet the individual’s needs. The regional center shall
ensure that there is no gap in services and supports during the
transition period.

(g) The additional federal financial participation funds generated
by the former participants of the self-determination pilot projects
authorized pursuant to Section 13 of Chapter 1043 of the Statutes
of 1998, as amended, or pursuant to Article 4 (commencing with
Section 4669.2) of Chapter 5, shall be used as follows:

(1) First, to offset the cost to the department for the criminal
background check conducted pursuant to subdivision (w) and other
administrative costs incurred by the department in implementing
the Self-Determination Program.

(2) With the remaining funds, to offset the costs to the regional
centers in implementing the Self-Determination Program,
including, but not limited to, operations costs for caseload ratio
enhancement, training for regional center staff, costs associated
with the participant’s initial person-centered planning meeting,
the development of the participant’s initial individual budget, and
the costs associated with training consumers and family members.

(h) If at any time during participation in the Self-Determination
Program a regional center determines that a participant is no longer
eligible to continue in, or a participant voluntarily chooses to exit,
the Self-Determination Program, the regional center shall provide
for the participant’s transition from the Self-Determination Program
to other services and supports. This transition shall include the
development of a new IPP that reflects the services and supports
necessary to meet the individual’s needs. The regional center shall
ensure that there is no gap in services and supports during the
transition period.

(i) An individual determined to be ineligible for or who
voluntarily exits the Self-Determination Program shall be permitted
to return to the Self-Determination Program upon meeting all
applicable eligibility criteria and upon approval of the participant’s
planning team, as described in subdivision (j) of Section 4512. An
individual who has voluntarily exited the Self-Determination
Program shall not return to the program for at least 12 months.
During the first three years of the program, the individual’s right
to return to the program is conditioned on his or her regional center
not having reached the participant cap imposed by paragraph (1)
of subdivision (b).

(j) An individual who participates in the Self-Determination
Program may elect to continue to receive self-determination
services and supports if he or she transfers to another regional
center catchment area, provided that he or she remains eligible for
the Self-Determination Program pursuant to subdivision (d). The
balance of the participant’s individual budget shall be reallocated
to the regional center to which he or she transfers.

(k) The IPP team shall utilize the person-centered planning
process to develop the IPP for a participant. The IPP shall detail
the goals and objectives of the participant that are to be met through
the purchase of participant-selected services and supports. The
IPP team shall determine the individual budget to ensure the budget
assists the participant to achieve the outcomes set forth in his or
her IPP and ensures his or her health and safety. The completed
individual budget shall be attached to the IPP.

(l) The participant shall implement his or her IPP, including
choosing and purchasing the services and supports allowable under
this section necessary to implement the plan. A participant is
exempt from the cost control restrictions regarding the purchases
of services and supports pursuant to Sections 4648.5 and 4686.5.
A regional center shall not prohibit the purchase of any service or
support that is otherwise allowable under this section.

(m) A participant shall have all the rights established in Sections
4646 to 4646.6, inclusive, and Chapter 7 (commencing with Section
4700).

(n) (1) Except as provided in paragraph (4), the IPP team shall
determine the initial and any revised individual budget for the
participant using the following methodology:

(A) (i) Except as specified in clause (ii), for a participant who
is a current consumer of the regional center, his or her individual
budget shall be the total amount of the most recently available 12
months of purchase of service expenditures for the participant.

(ii) An adjustment may be made to the amount specified in
clause (i) if both of the following occur:

(I) The IPP team determines that an adjustment to this amount
is necessary due to a change in the participant’s circumstances,
needs, or resources that would result in an increase or decrease in
purchase of service expenditures, or the IPP team identifies prior
needs or resources that were unaddressed in the IPP, which would
have resulted in an increase or decrease in purchase of service
expenditures.

(II) The regional center certifies on the individual budget
document that regional center expenditures for the individual
budget, including any adjustment, would have occurred regardless
of the individual’s participation in the Self-Determination Program.

(iii) For purposes of clauses (i) and (ii), the amount of the
individual budget shall not be increased to cover the cost of the
independent facilitator or the financial management services.

(B) For a participant who is either newly eligible for regional
center services or who does not have 12 months of purchase service
expenditures, his or her individual budget shall be calculated as
follows:

(i) The IPP team shall identify the services and supports needed
by the participant and available resources, as required by Section
4646.

(ii) The regional center shall calculate the cost of providing the
services and supports to be purchased by the regional center by
using the average cost paid by the regional center for each service
or support unless the regional center determines that the consumer
has a unique need that requires a higher or lower cost. The regional
center shall certify on the individual budget document that this
amount would have been expended using regional center purchase
of service funds regardless of the individual’s participation in the
Self-Determination Program.

(iii) For purposes of clauses (i) and (ii), the amount of the
individual budget shall not be increased to cover the cost of the
independent facilitator or the financial management services.

(2) The amount of the individual budget shall be available to
the participant each year for the purchase of program services and
supports. An individual budget shall be calculated no more than
once in a 12-month period, unless revised to reflect a change in
circumstances, needs, or resources of the participant using the
process specified in clause (ii) of subparagraph (A) of paragraph
(1).

(3) The individual budget shall be assigned to uniform budget
categories developed by the department in consultation with
stakeholders and distributed according to the timing of the
anticipated expenditures in the IPP and in a manner that ensures
that the participant has the financial resources to implement his or
her IPP throughout the year.

(4) The department, in consultation with stakeholders, may
develop alternative methodologies for individual budgets that are
computed in a fair, transparent, and equitable manner and are based
on consumer characteristics and needs, and that include a method
for adjusting individual budgets to address a participant’s change
in circumstances or needs.

(o) Annually, participants may transfer up to 10 percent of the
funds originally distributed to any budget category set forth in
paragraph (3) of subdivision (n) to another budget category or
categories. Transfers in excess of 10 percent of the original amount
allocated to any budget category may be made upon the approval
of the regional center or the participant’s IPP team.

(p) Consistent with the implementation date of the IPP, the IPP
team shall annually ascertain from the participant whether there
are any circumstances or needs that require a change to the annual
individual budget. Based on that review, the IPP team shall
calculate a new individual budget consistent with the methodology
identified in subdivision (n).

(q) (1) On or before December 31, 2014, the department shall
apply for federal Medicaid funding for the Self-Determination
Program by doing one or more of the following:

(A) Applying for a state plan amendment.

(B) Applying for an amendment to a current home- and
community-based waiver for individuals with developmental
disabilities.

(C) Applying for a new waiver.

(D) Seeking to maximize federal financial participation through
other means.

(2) To the extent feasible, the state plan amendment, waiver, or
other federal request described in paragraph (1) shall incorporate
the eligibility requirements, benefits, and operational requirements
set forth in this section. Except for the provisions of subdivisions
(k), (m), (p), and this subdivision, the department may modify
eligibility requirements, benefits, and operational requirements as
needed to secure approval of federal funding.

(3) Contingent upon approval of federal funding, the
Self-Determination Program shall be established.

(r) (1) The department, as it determines necessary, may adopt
regulations to implement the procedures set forth in this section.
Any regulations shall be adopted in accordance with the
requirements of Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code.

(2) Notwithstanding paragraph (1) and Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code, and only to the extent that all necessary federal
approvals are obtained, the department, without taking any further
regulatory action, shall implement, interpret, or make specific this
section by means of program directives or similar instructions until
the time regulations are adopted. It is the intent of the Legislature
that the department be allowed this temporary authority as
necessary to implement program changes only until completion
of the regulatory process.

(s) The department, in consultation with stakeholders, shall
develop informational materials about the Self-Determination
Program. The department shall ensure that regional centers are
trained in the principles of self-determination, the mechanics of
the Self-Determination Program, and the rights of consumers and
families as candidates for, and participants in, the
Self-Determination Program.

(t) Each regional center shall be responsible for implementing
the Self-Determination Program as a term of its contract under
Section 4629. As part of implementing the program, the regional
center shall do both of the following:

(1) Contract with local consumer or family-run organizations
begin insert and consult with the local volunteer advisory committee established
pursuant end insert to begin insert paragraph (1) of subdivision (x) to end insert conduct outreach
through local meetings or forums to consumers and their families
to provide information about the Self-Determination Program and
to help ensure that the program is available to a diverse group of
participants, with special outreach to underserved communities.

(2) Collaborate with the local consumer or family-run
organizations identified in paragraph (1) to jointly conduct training
about the Self-Determination Program. begin insert The regional center shall
consult with the local volunteer advisory committee established
pursuant to paragraph (1) of subdivision (x) in planning for the
training, and the local volunteer advisory committee may designate
members to represent the advisory committee at the training. end insert

(u) The financial management services provider shall provide
the participant and the regional center service coordinator with a
monthly individual budget statement that describes the amount of
funds allocated by budget category, the amount spent in the
previous 30-day period, and the amount of funding that remains
available under the participant’s individual budget.

(v) Only the financial management services provider is required
to apply for vendorization in accordance with Subchapter 2
(commencing with Section 54300) of Chapter 3 of Division 2 of
Title 17 of the California Code of Regulations for the
Self-Determination Program. All other service and support
providers shall not be on the federal debarment list and shall have
applicable state licenses, certifications, or other state required
documentation, including documentation of any other qualifications
required by the department, but are exempt from the vendorization
requirements set forth in Title 17 of the California Code of
Regulations when serving participants in the Self-Determination
Program.

(w) To protect the health and safety of participants in the
Self-Determination Program, the department shall require a
criminal background check in accordance with all of the following:

(1) The department shall issue a program directive that identifies
nonvendored providers of services and supports who shall obtain
a criminal background check pursuant to this subdivision. At a
minimum, these staff shall include both of the following:

(A) Individuals who provide direct personal care services to a
participant.

(B) Other nonvendored providers of services and supports for
whom a criminal background check is requested by a participant
or the participant’s financial management service.

(2) Subject to the procedures and requirements of this
subdivision, the department shall administer criminal background
checks consistent with the department’s authority and the process
described in Sections 4689.2 to 4689.6, inclusive.

(3) The department shall electronically submit to the Department
of Justice fingerprint images and related information required by
the Department of Justice of nonvendored providers of services
and supports, as specified in paragraph (1), for purposes of
obtaining information as to the existence and content of a record
of state or federal convictions and state or federal arrests and also
information as to the existence and content of a record of state or
federal arrests for which the Department of Justice establishes that
the person is free on bail or on his or her recognizance pending
trial or appeal.

(4) When received, the Department of Justice shall forward to
the Federal Bureau of Investigation requests for federal summary
criminal history information received pursuant to this section. The
Department of Justice shall review the information returned from
the Federal Bureau of Investigation and compile and disseminate
a response to the department.

(5) The Department of Justice shall provide a state or federal
response to the department pursuant to paragraph (1) of subdivision
(p) of Section 11105 of the Penal Code.

(6) The department shall request from the Department of Justice
subsequent notification service, as provided pursuant to Section
11105.2 of the Penal Code, for persons described in paragraph (1).

(7) The Department of Justice shall charge a fee sufficient to
cover the cost of processing the request described in this
subdivision.

(8) The fingerprints of any provider of services and supports
who is required to obtain a criminal background check shall be
submitted to the Department of Justice prior to employment. The
costs of the fingerprints and the financial management service’s
administrative cost authorized by the department shall be paid by
the services and supports provider or his or her employing agency.
Any administrative costs incurred by the department pursuant to
this subdivision shall be offset by the funds specified in subdivision
(g).

(9) If the criminal record information report shows a criminal
history, the department shall take the steps specified in Section
4689.2. The department may prohibit a provider of services and
supports from becoming employed, or continuing to be employed,
based on the criminal background check, as authorized in Section
4689.6. The provider of services and supports who has been denied
employment shall have the rights set forth in Section 4689.6.

(10) The department may utilize a current department-issued
criminal record clearance to enable a provider to serve more than
one participant, as long as the criminal record clearance has been
processed through the department and no subsequent arrest
notifications have been received relative to the cleared applicant.

(11) Consistent with subdivision (h) of Section 4689.2, the
participant or financial management service that denies or
terminates employment based on written notification from the
department shall not incur civil liability or unemployment insurance
liability.

(x) To ensure the effective implementation of the
Self-Determination Program and facilitate the sharing of best
practices and training materials commencing with the
implementation of the Self-Determination Program, local and
statewide advisory committees shall be established as follows:

(1) Each regional center shall establish a local volunteer advisory
committee to provide oversight of the Self-Determination Program.
The regional center and the State Council on Developmental
Disabilities shall each appoint one-half of the membership of the
committee. The committee shall consist of the regional center
clients’ rights advocate, consumers, family members, and other
advocates, and community leaders. A majority of the committee
shall be consumers and their family members. The committee shall
reflect the multicultural diversity and geographic profile of the
catchment area. The committee shall review the development and
ongoing progress of the Self-Determination Program, including
whether the program advances the principles of self-determination
and is operating consistent with the requirements of this section,
and may make ongoing recommendations for improvement to the
regional center and the department.

(2) The State Council on Developmental Disabilities shall form
a volunteer committee, to be known as the Statewide
Self-Determination Advisory Committee, comprised of the chairs
of the 21 local advisory committees or their designees. The council
shall convene the Statewide Self-Determination Advisory
Committee twice annually, or more frequently in the sole discretion
of the council. The Statewide Self-Determination Advisory
Committee shall meet by teleconference or other means established
by the council to identify self-determination best practices,
effective consumer and family training materials, implementation
concerns, systemic issues, ways to enhance the program, and
recommendations regarding the most effective method for
participants to learn of individuals who are available to provide
services and supports. The council shall synthesize information
received from the Statewide Self-Determination Advisory
Committee, local advisory committees, and other sources, share
the information with consumers, families, regional centers, and
the department, and make recommendations, as appropriate, to
increase the program’s effectiveness in furthering the principles
of self-determination.

(y) Commencing January 10, 2017, the department shall
annually provide the following information to the appropriate
policy and fiscal committees of the Legislature:

(1) Number and characteristics of participants, by regional
center, including the number of participants who entered the
program upon movement from a developmental center.

(2) Types and amount of services and supports purchased under
the Self-Determination Program, by regional center.

(3) Range and average of individual budgets, by regional center,
including adjustments to the budget to address the adjustments
permitted in clause (ii) of subparagraph (A) of paragraph (1) of
subdivision (n).

(4) The number and outcome of appeals concerning individual
budgets, by regional center.

(5) The number and outcome of fair hearing appeals, by regional
center.

(6) The number of participants who voluntarily withdraw from
the Self-Determination Program and a summary of the reasons
why, by regional center.

(7) The number of participants who are subsequently determined
to no longer be eligible for the Self-Determination Program and a
summary of the reasons why, by regional center.

(z) (1) The State Council on Developmental Disabilities, in
collaboration with the protection and advocacy agency identified
in Section 4900 and the federally funded University Centers for
Excellence in Developmental Disabilities Education, Research,
and Service, may work with regional centers to survey participants
regarding participant satisfaction under the Self-Determination
Program and, when data is available, the traditional service delivery
system, including the proportion of participants who report that
their choices and decisions are respected and supported and who
report that they are able to recruit and hire qualified service
providers, and to identify barriers to participation and
recommendations for improvement.

(2) The council, in collaboration with the protection and
advocacy agency identified in Section 4900 and the federally
funded University Centers for Excellence in Developmental
Disabilities Education, Research, and Service, shall issue a report
to the Legislature, in compliance with Section 9795 of the
Government Code, no later than three years following the approval
of the federal funding on the status of the Self-Determination
Program authorized by this section, and provide recommendations
to enhance the effectiveness of the program. This review shall
include the program’s effectiveness in furthering the principles of
self-determination, including all of the following:

(A) Freedom, which includes the ability of adults with
developmental disabilities to exercise the same rights as all citizens
to establish, with freely chosen supporters, family and friends,
where they want to live, with whom they want to live, how their
time will be occupied, and who supports them; and for families to
have the freedom to receive unbiased assistance of their own
choosing when developing a plan and to select all personnel and
supports to further the life goals of a minor child.

(B) Authority, which includes the ability of a person with a
disability, or family, to control a certain sum of dollars in order to
purchase services and supports of their choosing.

(C) Support, which includes the ability to arrange resources and
personnel, both formal and informal, that will assist a person with
a disability to live a life in his or her community that is rich in
community participation and contributions.

(D) Responsibility, which includes the ability of participants to
take responsibility for decisions in their own lives and to be
accountable for the use of public dollars, and to accept a valued
role in their community through, for example, competitive
employment, organizational affiliations, spiritual development,
and general caring of others in their community.

(E) Confirmation, which includes confirmation of the critical
role of participants and their families in making decisions in their
own lives and designing and operating the system that they rely
on.

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Section 4690.5 of the end insert begin insert Welfare and Institutions Code end insert

begin insert is amended to read: end insert

4690.5.  

Notwithstanding any other law or regulation,
commencing July 1, 2016, and to the extent funds are appropriated
in the annual Budget Act for this purpose, the rate for family
member-provided respite services authorized by the department
and in begin delete operation end delete begin insert effect on end insert June 30, 2016, begin insert and the rates for
out-of-home respite services in effect on June 30, 2016, end insert shall be
increased by 5 percent. The increase shall be applied as a
percentage, and the percentage shall be the same for all providers.

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 4691.6 of the end insert begin insert Welfare and Institutions Code end insert

begin insert is amended to read: end insert

4691.6.  

(a) Notwithstanding any other law or regulation,
commencing July 1, 2006, the community-based day program,
work activity program, and in-home respite service agency rate
schedules authorized by the department and in operation June 30,
2006, shall be increased by 3 percent, subject to funds specifically
appropriated for this increase in the Budget Act of 2006. The
increase shall be applied as a percentage, and the percentage shall
be the same for all providers. Any subsequent increase shall be
governed by subdivisions (b), (c), (d), (e), (f), (g), (h), (i), (j), (k),
and (l), and Section 4691.9.

(b) Notwithstanding any other law or regulation, the department
shall not establish any permanent payment rate for a
community-based day program or in-home respite service agency
provider that has a temporary payment rate in effect on June 30,
2008, if the permanent payment rate would be greater than the
temporary payment rate in effect on or after June 30, 2008, unless
the regional center demonstrates to the department that the
permanent payment rate is necessary to protect the consumers’
health or safety.

(c) Notwithstanding any other law or regulation, neither the
department nor any regional center shall approve any program
design modification or revendorization for a community-based
day program or in-home respite service agency provider that would
result in an increase in the rate to be paid to the vendor from the
rate that is in effect on or after June 30, 2008, unless the regional
center demonstrates that the program design modification or
revendorization is necessary to protect the consumers’ health or
safety and the department has granted prior written authorization.

(d) Notwithstanding any other law or regulation, the department
shall not approve an anticipated rate adjustment for a
community-based day program or in-home respite service agency
provider that would result in an increase in the rate to be paid to
the vendor from the rate that is in effect on or after June 30, 2008,
unless the regional center demonstrates that the anticipated rate
adjustment is necessary to protect the consumers’ health or safety.

(e) Notwithstanding any other law or regulation, except as set
forth in subdivisions (f) and (i), the department shall not approve
any rate adjustment for a work activity program that would result
in an increase in the rate to be paid to the vendor from the rate that
is in effect on or after June 30, 2008, unless the regional center
demonstrates that the rate adjustment is necessary to protect the
consumers’ health and safety and the department has granted prior
written authorization.

(f) Notwithstanding any other law or regulation, commencing
begin delete July end delete begin insert January end insert 1, begin delete 2014, end delete begin insert 2017, end insert the department may approve rate
adjustments for a work activity program that demonstrates to the
department that the rate adjustment is necessary in order to pay
employees who, prior to begin delete July end delete begin insert January end insert 1, begin delete 2014, end delete begin insert 2017, end insert were being
compensated at a wage that is less than the minimum wage
established on and after begin delete July end delete begin insert January end insert 1, begin delete 2014, end delete begin insert 2017, end insert by Section
1182.12 of the Labor Code, as amended by Chapter begin delete 351 end delete begin insert 4 end insert of the
Statutes of begin delete 2013. end delete begin insert 2016. end insert The rate adjustment pursuant to this
subdivision shall be specific to payroll costs associated with any
increase necessary to adjust employee pay only to the extent
necessary to bring pay into compliance with the increased state
minimum wage, and shall not constitute a general wage
enhancement for employees paid above the increased minimum
wage.

(g) Notwithstanding any other law or regulation, commencing
begin delete July end delete begin insert January end insert 1, begin delete 2014, end delete begin insert 2017, end insert community-based day program and
in-home respite services agency providers with temporary payment
rates set by the department may seek unanticipated rate adjustments
from the department due to the impacts of the increased minimum
wage as established by Section 1182.12 of the Labor Code, as
amended by Chapter begin delete 351 end delete begin insert 4 end insert of the Statutes of begin delete 2013. end delete begin insert 2016. end insert The rate
adjustment shall be specific to payroll costs associated with any
increase necessary to adjust employee pay only to the extent
necessary to bring pay into compliance with the increased state
minimum wage, and shall not constitute a general wage
enhancement for employees paid above the increased minimum
wage.

(h) Notwithstanding any other law or regulation, commencing
January 1, 2015, the in-home respite service agency rate schedule
authorized by the department and in operation December 31, 2014,
shall be increased by 5.82 percent, subject to funds specifically
appropriated for this increase for costs due to changes in federal
regulations implementing the federal Fair Labor Standards Act of
1938 (29 U.S.C. Sec. 201 et seq.). The increase shall be applied
as a percentage, and the percentage shall be the same for all
applicable providers.

(i) Notwithstanding any other law or regulation, commencing
July 1, 2015, the department may approve rate adjustments for a
work activity program that demonstrates to the department that
the rate adjustment is necessary to implement Article 1.5
(commencing with Section 245) of Chapter 1 of Part 1 of Division
2 of the Labor Code, as added by Chapter 317 of the Statutes of
2014. The rate adjustment may be applied only if a minimum of
24 hours or three days of paid sick leave per year was not a benefit
provided to employees as of June 30, 2015, and shall be specific
to payroll costs associated with any increase necessary to
compensate an employee up to a maximum of 24 hours or three
days of paid sick leave in each year of employment.

(j) Notwithstanding any other law or regulation, commencing
July 1, 2015, community-based day program and in-home respite
services agency providers with temporary payment rates set by
the department may seek unanticipated rate adjustments from the
department if the adjustment is necessary to implement Article 1.5
(commencing with Section 245) of Chapter 1 of Part 1 of Division
2 of the Labor Code, as added by Chapter 317 of the Statutes of
2014. The rate adjustment may be applied only if a minimum of
24 hours or three days of paid sick leave per year was not a benefit
provided to employees as of June 30, 2015, and shall be specific
to payroll costs associated with any increase necessary to
compensate an employee up to a maximum of 24 hours or three
days of paid sick leave in each year of employment.

(k) Notwithstanding any other law or regulation, commencing
July 1, 2016, and to the extent funds are appropriated in the annual
Budget Act for this purpose, the in-home respite service agency
rate schedule authorized by the department and in operation June
30, 2016, shall be increased by 5 percent. The increase shall be
applied as a percentage, and the percentage shall be the same for
all providers.

(l) Notwithstanding any other law or regulation, commencing
July 1, 2016, and to the extent funds are appropriated in the annual
Budget Act for this purpose, the independent living service rate
schedule authorized by the department and in operation June 30,
2016, shall be increased by 5 percent. The increase shall be applied
as a percentage, and the percentage shall be the same for all
providers.

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Section 4691.9 of the end insert begin insert Welfare and Institutions Code end insert

begin insert is amended to read: end insert

4691.9.  

(a) Notwithstanding any other law or regulation,
commencing July 1, 2008:

(1) A regional center shall not pay an existing service provider,
for services where rates are determined through a negotiation
between the regional center and the provider, a rate higher than
the rate in effect on June 30, 2008, unless the increase is required
by a contract between the regional center and the vendor that is in
effect on June 30, 2008, or the regional center demonstrates that
the approval is necessary to protect the consumer’s health or safety
and the department has granted prior written authorization.

(2) A regional center shall not negotiate a rate with a new service
provider, for services where rates are determined through a
negotiation between the regional center and the provider, that is
higher than the regional center’s median rate for the same service
code and unit of service, or the statewide median rate for the same
service code and unit of service, whichever is lower. The unit of
service designation shall conform with an existing regional center
designation or, if none exists, a designation used to calculate the
statewide median rate for the same service. The regional center
shall annually certify to the State Department of Developmental
Services its median rate for each negotiated rate service code, by
designated unit of service. This certification shall be subject to
verification through the department’s biennial fiscal audit of the
regional center.

(b) Notwithstanding subdivision (a), commencing begin delete July end delete begin insert January end insert
1, begin delete 2014, end delete begin insert 2017, end insert regional centers may negotiate a rate adjustment
with providers regarding rates if the adjustment is necessary in
order to pay employees no less than the minimum wage as
established by Section 1182.12 of the Labor Code, as amended by
Chapter begin delete 351 end delete begin insert 4 end insert of the Statutes of begin delete 2013, end delete begin insert 2016, end insert and only for the
purpose of adjusting payroll costs associated with the minimum
wage increase. The rate adjustment shall be specific to the unit of
service designation that is affected by the increased minimum
wage, shall be specific to payroll costs associated with any increase
necessary to adjust employee pay only to the extent necessary to
bring pay into compliance with the increased state minimum wage,
and shall not be used as a general wage enhancement for employees
paid above the increased minimum wage. Regional centers shall
maintain documentation on the process to determine, and the
rationale for granting, any rate adjustment associated with the
minimum wage increase.

(c) Notwithstanding any other law or regulation, commencing
January 1, 2015, rates for personal assistance and supported living
services in effect on December 31, 2014, shall be increased by
5.82 percent, subject to funds specifically appropriated for this
increase for costs due to changes in federal regulations
implementing the federal Fair Labor Standards Act of 1938 (29
U.S.C. Sec. 201 et seq.). The increase shall be applied as a
percentage, and the percentage shall be the same for all applicable
providers. As used in this subdivision, both of the following
definitions shall apply:

(1) “Personal assistance” is limited only to those services
provided by vendors classified by the regional center as personal
assistance providers, pursuant to the miscellaneous services
provisions contained in Title 17 of the California Code of
Regulations.

(2) “Supported living services” are limited only to those services
defined as supported living services in Title 17 of the California
Code of Regulations.

(d) Notwithstanding subdivision (a), commencing July 1, 2015,
regional centers may negotiate a rate adjustment with existing
service providers for services for which rates are determined
through negotiation between the regional center and the provider,
if the adjustment is necessary to implement Article 1.5
(commencing with Section 245) of Chapter 1 of Part 1 of Division
2 of the Labor Code, as added by Chapter 317 of the Statutes of
2014. The rate adjustment may be applied only if a minimum of
24 hours or three days of paid sick leave per year was not a benefit
provided to employees as of June 30, 2015, and shall be specific
to payroll costs associated with any increase necessary to
compensate an employee up to a maximum of 24 hours or three
days of paid sick leave in each year of employment.

(e) Notwithstanding any other law or regulation, commencing
July 1, 2016, and to the extent funds are appropriated in the annual
Budget Act for this purpose, rates for transportation services in
effect on June 30, 2016, shall be increased by 5 percent. The
increase shall be applied as a percentage to existing rates, and the
percentage shall be the same for all applicable providers.

(f) This section shall not apply to those services for which rates
are determined by the State Department of Health Care Services,
or the State Department of Developmental Services, or are usual
and customary.

begin insert

begin insert SEC. 16. end insert   

end insert

begin insert Section 4870 of the end insert begin insert Welfare and Institutions Code end insert begin insert is
amended to read: end insert

4870.  

(a) To encourage competitive integrated employment
opportunities statewide for individuals with developmental
disabilities, the department shall establish guidelines and oversee
a program, to the extent funds are appropriated in the annual
Budget Act for this purpose, to increase paid internship
opportunities for individuals with developmental disabilities that
produce outcomes consistent with the individual program plan.
The department shall consult with the State Council on
Developmental Disabilities, regional centers, employers, supported
employment provider organizations, and clients’ rights advocates,
to establish a program that shall be administered by community
service providers and that meets all of the following criteria:

(1) Payments for internships shall not exceed ten thousand four
hundred dollars ($10,400) per year for each individual placed in
an internship.

(2) Placements shall be made into competitive, integrated work
environments.

(3) Placements shall be made into internships that develop skills
that will facilitate paid employment opportunities in the future.

(4) Regional centers shall increase awareness of these internships
to consumers outside of current employment programs through
outreach to consumers once the program is implemented, as well
as during the individual program plan process.

(b) The department shall require annual reporting by regional
centers and vendors that ensures program accountability and
achievement of program goals. This shall include, but is not limited
to, all of the following:

(1) The number of interns placed who might not otherwise have
achieved the placement absent this internship program.

(2) Types of employment in which interns are placed.

(3) Length of internships.

(4) Demographic information of interns.

(5) Amount of each intern placement payment.

(6) Employment-related supports provided by another agency
or individual to the intern.

(7) Number of interns who subsequently entered paid
employment, including salary and benefit information.

(8) Any additional information, as determined by the department.

(c) The department shall include in its annual May Revision
fiscal estimate a description of the implementation of the program,
including, but not limited to, a description of the stakeholder
consultation, the data described in subdivision (b), aggregated by
regional center and statewide, and any recommendations for
program changes that may be necessary or desirable to maximize
program effectiveness and accountability.

(d) Consistent with the individual program plan, the program
shall increase sustained and appropriate competitive integrated
employment placements by begin delete providers of supported employment
services, end delete begin insert regional center service providers, end insert as begin delete defined in
subdivision (p) of Section 4851, as end delete follows:

(1) A payment of one thousand dollars ($1,000) begin insert shall be made end insert
to the begin delete supported employment services end delete begin insert regional center service end insert
provider begin delete for initial placements made end delete begin insert that, end insert on or after July 1, 2016,
begin delete in end delete begin insert places an individual into end insert competitive integrated employment,
begin insert and the individual is still competitively employed after 30
consecutive days, end insert as begin delete defined end delete begin insert described end insert in subdivision (o) of Section
4851 and subdivision (d) of Section 4868.

(2) An additional payment of one thousand two hundred fifty
dollars ($1,250) begin insert shall be made end insert to the begin delete supported employment
services end delete begin insert regional center service end insert provider for an individual
described in paragraph (1) who remains in competitive integrated
employment for six consecutive months.

(3) An additional payment of one thousand five hundred dollars
($1,500) begin insert shall be made end insert to the begin delete supported employment services end delete
begin insert regional center service end insert provider for an individual described in
paragraphs (1) and (2) who remains in competitive integrated
employment for 12 consecutive months.

(e) Regional centers shall annually report to the department the
payments for placements pursuant to subdivision (d). The
information shall be reported in a format determined by the
department, and shall include the number of individuals placed in
internships or other employment as described in this section each
year.

begin insert

(f) The payments made pursuant to this section shall not be in
addition to the placement payments made pursuant to subdivision
(d) of Section 4860.

end insert begin insert

(g) Regional center service providers that place individuals into
internships under subdivision (a) are not eligible for the
employment placement incentives under this section, until the
individual is transitioned into a competitive integrated employment
placement that is not funded as an internship.

end insert

begin insert

begin insert SEC. 17. end insert   

end insert

begin insert Section 15 of Chapter 3 of the Statutes of 2016,
Second Extraordinary Session, is amended to read: end insert

SEC. 15.  

(a) The sum of two hundred eighty-seven million
dollars ($287,000,000) is hereby appropriated from the General
Fund to the State Department of Developmental Services to provide
all of the following, effective July 1, 2016:

(1) Twenty-nine million seven hundred thousand dollars
($29,700,000) for regional centers for staff, in an allocation to be
determined by the department.

(2) One million four hundred thousand dollars ($1,400,000) for
regional centers for administrative costs, in an allocation to be
determined by the department. This amount includes an amount
to be allocated by the department for regional center clients’ rights
advocates contracts pursuant to subdivision (b) of Section 4433.

(3) Nine million nine hundred thousand dollars ($9,900,000)
for administrative costs for service providers, in an allocation to
be determined by the department.

(4) One hundred sixty-nine million five hundred thousand dollars
($169,500,000) for a rate increase for staff providing direct services
employed by a community-based provider organization, in a
manner to be determined by the department.

(5) A 5-percent rate increase for supported and independent
living services.

(6) Twenty million dollars ($20,000,000) for competitive
integrated employment incentive payments.

(7) A 5-percent rate increase for in-home and out-of-home
respite services.

(8) A 5-percent increase for transportation services.

(9) A three-dollar-and-forty-two-cent ($3.42) per hour rate
increase for supported employment providers.

(10) Eleven million dollars ($11,000,000) for bilingual staff at
regional centers and implementing plans and recommendations to
address disparities.

begin insert

(b) The sum of one hundred eighty-six million two hundred
thousand dollars ($186,200,000) in reimbursements associated
with the funds appropriated in subdivision (a) is hereby
appropriated to the State Department of Developmental Services
for the purposes specified in subdivision (a).

end insert begin delete

(b)

end delete

begin insert (c) end insert  These funds shall be available for encumbrance begin insert or
expenditure end insert until June 30, 2017, and available for begin delete expenditure end delete
begin insert liquidation end insert until June 30, 2019.

begin insert

begin insert SEC. 18. end insert   

end insert begin insert

With the fiscal and research resources included as
part of the Budget Act of 2016, the State Department of
Developmental Services shall annually assess disparities data
reported by regional centers, caseload ratio requirements by
regional centers, and performance dashboard data, collected
pursuant to Section 4572 of the Welfare and Institutions Code, as
it becomes available.

end insert

begin insert

begin insert SEC. 19. end insert   

end insert begin insert

(a) The State Department of Developmental Services
shall report quarterly to the Joint Legislative Budget Committee
the estimated amount of General Fund expenditures used to backfill
federal funding as a result of the decertification of intermediate
care facility units at the Sonoma Developmental Center.

end insert begin insert

(b) If the intermediate care facility units at the Fairview
Developmental Center or the Porterville Developmental Center
are decertified by the federal government in the 2016-17 fiscal
year, the State Department of Developmental Services shall report
quarterly to the Joint Legislative Budget Committee the estimated
amount of General Fund expenditures used to backfill federal
funding as a result of the decertification or decertifications.

end insert

begin insert

begin insert SEC. 20. end insert   

end insert begin insert

This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.

end insert

begin delete

SECTION 1.  

It is the intent of the Legislature to enact statutory
changes relating to the 2016 Budget Act.

end delete

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CORRECTIONS:

Heading--Lines 1, 2, 3, 4, and 5.

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