BILL ANALYSIS Ó AB 2565 Page 1 ASSEMBLY THIRD READING AB 2565 (Salas) As Introduced February 19, 2016 Majority vote ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Human Services |7-0 |Bonilla, Grove, | | | | |Calderon, Lopez, | | | | |Maienschein, Mark | | | | |Stone, Thurmond | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |20-0 |Gonzalez, Bigelow, | | | | |Bloom, Bonilla, | | | | |Bonta, Calderon, | | | | |Chang, Daly, Eggman, | | | | |Gallagher, Eduardo | | | | |Garcia, Roger | | | | |Hernández, Holden, | | | | |Jones, Obernolte, | | | | |Quirk, Santiago, | | | | |Wagner, Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------ AB 2565 Page 2 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 United States Code (U.S.C.) Section 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 state plan for vocational rehabilitation services. (Welfare and Institutions Code (WIC) Section 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 Section 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 Section 19806) AB 2565 Page 3 FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill may result in ongoing costs of $705,000 (Federal funds/General Fund) annually to provide the three ILCs with $235,000 in base grant funding. 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 - 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 AB 2565 Page 4 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 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. AB 2565 Page 5 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." 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. Analysis Prepared by: Kelsy Castillo / HUM. S. / (916) 319-2089 FN: 0003224