BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2565


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          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


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          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


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          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


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          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


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          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