BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2565


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          Date of Hearing:   April 12, 2016


                        ASSEMBLY COMMITTEE ON HUMAN SERVICES


                                Susan Bonilla, Chair


          AB 2565  
          (Salas) - As Introduced February 19, 2016


          SUBJECT:  Independent Living Centers:  state funding


          SUMMARY:  Includes independent living centers (ILCs) that were  
          previously excluded, due to receipt of funding under Title  
          VII(c) of the federal Rehabilitation Act of 1973, among ILCs  
          that are required to receive at least $235,000 in base grant  
          funds, as specified .


          EXISTING LAW: 


          1)Establishes the federal Rehabilitation Act, which, among other  
            things, empowers individuals with disabilities to maximize  
            employment, economic self-sufficiency, self-determination,  
            independence, inclusion and integration into society through  
            statewide workforce investment systems, independent living  
            centers and services, research, training, demonstration  
            projects and the guarantee of equal opportunity.  (29 U.S.C.  
            701 et seq.)


          2)Establishes the Department of Rehabilitation (DOR) within the  
            California Health and Human Services Agency, and designates  
            DOR the sole state agency charged with administration of the  








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            state plan for vocational rehabilitation services.  (WIC 19000  
            et seq.)


          3)Requires DOR to oversee the Independent Living Services  
            Program and the state's 28 ILCs for the purpose of helping  
            people with disabilities live fuller and freer lives outside  
            of institutions.  (WIC 19751, 19800 et seq.)


          4)Allocates base grant funding of $235,000 to each ILC, with the  
            exception of those centers established and maintained using  
            federal funding under Title VII(c) of the federal  
            Rehabilitation Act of 1973.  (WIC 19806)


          FISCAL EFFECT: Unknown. 


          COMMENTS:  


          Department of Rehabilitation (DOR):  DOR operates under the  
          California Health and Human Services Agency and in accordance  
          with the federal Rehabilitation Act of 1973, as amended by Title  
          IV of the Workforce Innovation and Opportunity Act of 2014 and,  
          as such, administers programs funded with federal and matching  
          state dollars.  Vocational rehabilitation services are funded  
          with 78.7% federal dollars and 21.3% matching funds, part of  
          which are provided by the state General Fund and part by public  
          agencies through the DOR's cooperative program agreements.  For  
          every $1 in funds the state contributes, the DOR receives $4 in  
          federal funds.  The DOR's overall budget for the 2015-2016  
          fiscal year is $436 million; of that, $59 million is from the  
          General Fund. 


          Independent Living Centers:  Title VII of the Rehabilitation Act  
          - Independent Living Services and Centers for Independent Living  








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          - established a framework for the creation and funding of ILCs  
          across the nation.  California currently has 28 ILCs which  
          provide services to people with disabilities, enabling them to  
          remain in their own homes and communities by supporting projects  
          and activities carried out in a manner consistent with the  
          principles of respect for individual dignity, personal  
          responsibility, and self-determination.  Additionally, ILCs  
          support the pursuit of meaningful careers, based upon informed  
          choice of individuals with disabilities.  An ILC is a  
          consumer-centered, community-based, non-residential, private  
          non-profit entity that is designed and operated within a local  
          community by individuals with disabilities.  Currently  
          California has 28 ILCs which serve approximately 100,000  
          California residents. 


          AB 204:  In 1979, the State of California passed AB 204 (Bates),  
          Chapter 191, Statutes of 1979, which authorized the Department  
          of Rehabilitation to provide each ILC with $235,000 annually,  
          with the exception of the three specific ILCs discussed in this  
          bill, as they were already receiving large funding grants from  
          the federal government. 


          Federally Funded ILCs:  In 1984, three ILCs, Independent Living  
          Center of Kern County (ILCKC), Disability Resource Agency for  
          Independent Living (DRAIL), and Placer Independent Living  
          Resources, applied directly for Title VII funding in order to  
          meet the needs of their consumers.  Because these particular  
          ILCs received funding from the federal government and not the  
          state, they were subject to the waxing and waning of  
          Congressional appropriation of funds.  The remaining ILCs were  
          funded by the State (and some federal dollars), and as such  
          received Cost of Living Adjustments (COLAs) over time such that  
          there arose funding inequities between ILCs funded by both the  
          state and ILCs funded solely by the federal government.


          Today, DRAIL, ILCKC, and Placer Independent Living Resources are  








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          among the lowest-funded ILCs in the state, receiving an annual  
          total in Title VII federal funds of $726,730, $481,750, and  
          $444,001, respectively. Still, due to initially seeking federal  
          funds instead of state funds, these three ILCs have larger  
          federal grants than any other ILC that has since applied for and  
          received federal funds in order to meet the needs of their  
          consumers.



          Need for this bill:  According to the author's office, "By no  
          fault of their own, these 3 centers have been excluded from  
          receiving state funding.  [This bill] corrects this inequity and  
          creates parity between all centers improving their ability to  
          operate and make long lasting positive impacts on the lives of  
          those they serve."

          Staff comments:  It has been acknowledged that the ILC system as  
          a whole is in need of additional funding in order to meet the  
          needs of its consumers.  AB 204 was initially passed in 1979 in  
          order to provide base funding across the board and ensure  
          foundational equity among ILCs.  In order to ensure equitable  
          funding across California's 28 ILCs, it has been suggested that  
          the State of California first consider all federal grants  
          received by each ILC, and then appropriate State funds according  
          to the needs of each ILC.  While DRAIL, ILCKC and Placer  
          Independent Living Resources are among the lowest-funded ILCs,  
          some ILCs do receive less total funding annually, and others  
          receive similar allocations; all would certainly benefit from  
          additional funding, be they state or federal dollars.  Most  
          notably, Marin Center for Independent Living has an annual  
          budget of $398,135, and Tri-County Independent Living Center,  
          Inc., has an annual budget of $389,380; each of these ILCs  
          receive the $235,000 state grant, but only receive federal  
          funding of $69,793 and $68,010, respectively.  Should this bill  
          move forward, the author may wish to consider the effects of  
          this bill on the remaining ILCs, and seek to address issues of  
          equity across all 28 centers.









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          PRIOR LEGISLATION:


          AB 204 (Bates), Chapter 191, Statutes of 1979, provided state  
          funding to maintain the services offered by existing independent  
          living centers and encouraged the establishment of new centers  
          to provide services to individuals with disabilities.

          REGISTERED SUPPORT / OPPOSITION:




          Support


          Bakersfield ARC 


          California Association of Public Authorities for IHSS


          California Foundation for Independent Living Centers (CFILC)


          California State Independent Living Council (SILC)


          City of Modesto 










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          Cornelius Financial Group
          Court Appointed Special Advocates of Kern County
          Disability Resource Agency for Independent Living 


          Friends Outside 


          Golden Empire Transit District
          Goodwill Industries of South Central California
          Housing Authority of the County of Kern
          Kern County Board of Supervisors


          Kern County Office of the National Multiple Sclerosis


          Kern Travel


          Knight's Pumping & Portable Services, Inc.


          La Perla Market


          Mayor Harvey L. Hall, City of Bakersfield 


          Mental Health Collaborative of Kern County
          New Advance for People with Disabilities 


          Petro-LUD


          RENT 1 ONE










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          VOICED Coalition


          2 individual 




          Opposition


          None on file.




          Analysis Prepared by:Kelsy C. Castillo / HUM. S. / (916)  
          319-2089