BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 2565 (Salas) - Independent Living Centers:  state funding
          
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          |Version: August 1, 2016         |Policy Vote: HUMAN S. 5 - 0     |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 8, 2016    |Consultant: Debra Cooper        |
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          This bill meets the criteria for referral to the Suspense File.


          Bill  
          Summary:  AB 2565 would permit all independent living centers  
          (ILCs), including three that were previously excluded, to  
          receive $235,000 in base grant funding annually.


          Fiscal  
          Impact:  Ongoing costs to the Department of Rehabilitation (DOR)  
          of $705,000 per year to provide three ILCs with $235,000 in base  
          grant funding. (Federal/GF)


          Background:  An ILC is a consumercontrolled, communitybased,  
          crossdisability, nonresidential private nonprofit agency that is  
          designed and operated within a local community by individuals  
          with disabilities and provides an array of independent living  
          services. There are 28 ILCs in California that serve at least  
          22,000 individuals per year. The centers are overseen and funded  
          by DOR with total statewide funding of $20 million.








          AB 2565 (Salas)                                        Page 1 of  
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          The ILCs have several different funding sources. Title VII of  
          the Rehabilitation Act established a framework for the creation  
          and funding of ILCs across the nation. Federal Title VII(c)  
          moneys flow directly to ILCs based on specific contracted  
          agreements. Each ILC receives a standard $70,000 grant for  
          assistive technology, and some ILCs that have taken on  
          additional responsibilities typically receive more Title VII(c)  
          funding. 


          Existing state law provides that each ILC is required to receive  
          at least $235,000 in base grant funding allocated by DOR, except  
          those centers that have been established and maintained using  
          Title VII(c) funding. Three ILCs in California (the Disability  
          Resources Agency for Independent Living, the Independent Living  
          Center of Kern County, and the Placer Independent Resources  
          Services, Inc) were established with larger Title VII(c) grants  
          instead of the state base funding which was provided to other  
          ILCs. All California ILCs receive Title VII(c) grants of varying  
          amounts ranging from $68,088 for Tri-County Independent Living,  
          Inc. to $531,840 for Disability Resources Agency for Independent  
          Living. 


          Though the three ILCs that are exempted from the state base  
          grant receive larger federal grants than many of the other ILCs,  
          because they are solely funded with federal funds, they receive  
          among the least total funding of the 28 ILCs.




          Proposed Law:  
            This bill would:
           Strike language excluding ILCs which have been established and  
            maintained using federal funding under Title VII(c) of the  
            federal Rehabilitation Act as their primary base grant from  
            receiving base funding of $235,000 and requiring DOR to fund  
            those ILCs with the difference of the funding from the federal  
            VII(c) allocation and $235,000.
           Strike language that authorizes base funding for the ILCs  
            allocated from the state general fund to be replaced by  
            reimbursements from the federal Supplemental Security  








          AB 2565 (Salas)                                        Page 2 of  
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            Disability Insurance and the Supplemental Security Income  
            programs and replaces it with language that requires base  
            funding amounts to be allocated to the ILCs from those federal  
            funds.


          Related  
          Legislation:  SB 826 (Leno, Chapter 23, Statutes of 2016), the  
          State Budget Act of 2016-17, among other things, allocates  
          $705,000 in base allocations from the state general fund.


          Staff  
          Comments:  Funding for the additional $705,000 in base  
          allocations was already addressed in the 2016-17 state budget.  
          While the state budget provides for this funding from the  
          general fund, this bill requires the allocation to come from  
          federal reimbursement funding. 
          Federal Social Security Reimbursements, which regularly  
          fluctuate, are already reserved for other DOR programs;  
          therefore, redirection of federal Social Security Reimbursements  
          from other programs would result in a reduction of vocational  
          rehabilitation services provided through DOR.




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