Amended in Senate August 26, 2015

California Legislature—2015–16 Second Extraordinary Session

Senate BillNo. 1


Introduced by Senator Beall

(Principal coauthors: Senators Monning and Pavley)

July 2, 2015


An act to amend Sections 4648.4,begin insert 4681.3,end insert 4681.6, 4688.21, 4689.8, 4691.9, and 4860, and to add Sections 4681.2, 4690.7, 4795, and 4796 to, the Welfare and Institutions Code, relating to developmental services.

LEGISLATIVE COUNSEL’S DIGEST

SB 1, as amended, Beall. Developmental services: funding.

(1) 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. Under existing law, the regional centers purchase needed services for individuals with developmental disabilities through approved service providers or arrange for those services through other publicly funded agencies. The annualbegin delete budgetend deletebegin insert Budget Act alsoend insert appropriates funds to the department to fund regional center operations.

This bill would require the department, subject to an appropriation by the Legislature for these purposes, to increase the funding paid to a regional center for the regional center’s operating budget by 10%, and to increase funding to enable the regional center and the regional center’s purchase-of-service vendors to fund certain costs related to minimum wage requirements. The bill would also require the department to develop a 10-year financial sustainability plan to ensure that the state’s community-based developmental services system effectively serves all individuals with developmental disabilities.

(2) Existing law establishes specified rates to be paid to certain service providers and the rates to be paid for certain developmental services. Existing law requires that rates to be paid to other developmental service providers either be set by the department or negotiated between the regional center and the service provider.

This bill would increase the rates established by existing law by 10%, as specified, and would require a 10% increase to the rates set by the department and the rates negotiated between regional centers and service providers, as specified.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

P2    1

SECTION 1.  

Section 4648.4 of the Welfare and Institutions
2Code
is amended to read:

3

4648.4.  

begin insert(a)end insertbegin insertend insert Notwithstanding any other law, commencing July
41, 2006, rates for services listed in paragraphs (1), (2), with the
5exception of travel reimbursement, (3) to (8), inclusive, (10), and
6(11) of subdivision (b), shall be increased by 3 percent, subject to
7funds specifically appropriated for this increase in the Budget Act
8of 2006. The increase shall be applied as a percentage, and the
9percentage shall be the same for all providers. Any subsequent
10change shall be governed by subdivision (b).

11(b) Notwithstanding any other law, except for subdivision (a),
12no regional center may pay any provider of the following services
13or supports a rate that is greater than the rate that is in effect on or
14after June 30, 2008, unless the increase is required by a contract
15between the regional center and the vendor that is in effect on June
1630, 2008, or the regional center demonstrates that the approval is
17necessary to protect the consumer’s health or safety and the
18department has granted prior written authorization:

19(1) Supported living services.

20(2) Transportation, including travel reimbursement.

21(3) Socialization training programs.

22(4) Behavior intervention training.

23(5) Community integration training programs.

24(6) Community activities support services.

25(7) Mobile day programs.

26(8) Creative art programs.

P3    1(9) Supplemental day services program supports.

2(10) Adaptive skills trainers.

3(11) Independent living specialists.

4(c) Notwithstanding subdivisions (a) and (b), and subject to an
5appropriation of funds by the Legislature for these purposes, a
6regional center shall increase rates for services listed in paragraphs
7(1), (2), with the exception of travel reimbursement, and (3) to
8(11), inclusive, of subdivision (b),begin delete whereend deletebegin insert ifend insert the rates are determined
9through a negotiation between the regional center and the provider,
10by 10 percent above the levels that otherwise would have been in
11effect on the effective date of the act that added this subdivision,
12unless the rate for a service was increased pursuant to another
13provision of the act that added this subdivision.

14begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 4681.3 of the end insertbegin insertWelfare and Institutions Codeend insert
15begin insert is amended to read:end insert

16

4681.3.  

(a) Notwithstanding any other provision of this article,
17for the 1996-97 fiscal year, the rate schedule authorized by the
18department in operation June 30, 1996, shall be increased based
19upon the amount appropriated in the Budget Act of 1996 for that
20purpose. The increase shall be applied as a percentage, and the
21percentage shall be the same for all providers.

22(b) Notwithstanding any other provision of this article, for the
231997-98 fiscal year, the rate schedule authorized by the department
24in operation on June 30, 1997, shall be increased based upon the
25amount appropriated in the Budget Act of 1997 for that purpose.
26The increase shall be applied as a percentage, and the percentage
27shall be the same for all providers.

28(c) Notwithstanding any other provision of this article, for the
291998-99 fiscal year, the rate schedule authorized by the department
30in operation on June 30, 1998, shall be increased commencing July
311, 1998, based upon the amount appropriated in the Budget Act
32of 1998 for that purpose. The increase shall be applied as a
33percentage, and the percentage shall be the same for all providers.

34(d) Notwithstanding any other provision of this article, for the
351998-99 fiscal year, the rate schedule authorized by the department
36in operation on December 31, 1998, shall be increased January 1,
371999, based upon the cost-of-living adjustments in the
38Supplemental Security Income/State Supplementary Program for
39the Aged, Blind, and Disabled appropriated in the Budget Act of
P4    11998 for that purpose. The increase shall be applied as a percentage
2and the percentage shall be the same for all providers.

3(e) Notwithstanding any other provision of this article, for the
41999-2000 fiscal year, the rate schedule authorized by the
5department in operation on June 30, 1999, shall be increased July
61, 1999, based upon the amount appropriated in the Budget Act
7of 1999 for that purpose. The increase shall be applied as a
8percentage and the percentage shall be the same for all providers.

9(f) In addition, commencing January 1, 2000, any funds available
10from cost-of-living adjustments in the Supplemental Security
11Income/State Supplementary Payment (SSI/SSP) for the 1999-2000
12fiscal year shall be used to further increase the community care
13facility rate. The increase shall be applied as a percentage, and the
14percentage shall be the same for all providers.

15(g) Notwithstanding any otherbegin delete provision of law or regulation,end delete
16begin insert law,end insert for the 2006-07 fiscal year, the rate schedule in effect on June
1730, 2006, shall be increased on July 1, 2006, by 3 percent, subject
18to funds specifically appropriated for this increase in the Budget
19Act of 2006. The increase shall be applied as a percentage and the
20percentage shall be the same for all providers. Any subsequent
21increase shall be governed by Sections 4681.5 and 4681.6.

begin insert

22(h) Notwithstanding any other law, for the 2015-16 fiscal year,
23the rate schedule and rates set by the department that are in effect
24on June 30, 2015, shall be increased by 10 percent, subject to
25funds specifically appropriated for this purpose. The increase shall
26be applied as a percentage and the percentage shall be the same
27for all providers. The increase required by this subdivision shall
28be in addition to the rate changes required by Chapter 23 of the
29Statutes of 2015.

end insert
30

begin deleteSEC. 2.end delete
31begin insertSEC. 3.end insert  

Section 4681.2 is added to the Welfare and Institutions
32Code
, to read:

33

4681.2.  

Notwithstanding any other law, and subject to an
34appropriation of funds by the Legislature for these purposes, the
35department shall increase the rates set for community care facilities
36serving persons with developmental disabilities by 10 percent
37above the levels that otherwise would have been in effect on the
38effective date of the act that added this section.

P5    1

begin deleteSEC. 3.end delete
2begin insertSEC. 4.end insert  

Section 4681.6 of the Welfare and Institutions Code
3 is amended to read:

4

4681.6.  

(a) Notwithstanding any other law, commencing July
51, 2008:

6(1) A regional center shall not pay an existing residential service
7provider, for servicesbegin delete whereend deletebegin insert for whichend insert rates are determined through
8a negotiation between the regional center and the provider, a rate
9higher than the rate in effect on June 30, 2008, unless the increase
10is required by a contract between the regional center and the vendor
11that is in effect on June 30, 2008, or the regional center
12demonstrates that the approval is necessary to protect the
13consumer’s health or safety and the department has granted prior
14written authorization.

15(2) A regional center shall not negotiate a rate with a new
16residential service provider, for servicesbegin delete whereend deletebegin insert for whichend insert rates are
17determined through a negotiation between the regional center and
18the provider, that is higher than the regional center’s median rate
19for the same service code and unit of service, or the statewide
20median rate for the same service code and unit of service,
21whichever is lower. The unit of service designation shall conform
22with an existing regional center designation or, if none exists, a
23designation used to calculate the statewide median rate for the
24same service. The regional center shall annually certify to the
25department its median rate for each negotiated rate service code,
26by designated unit of service. This certification shall be subject to
27verification through the department’s biennial fiscal audit of the
28regional center.

29(b) Notwithstanding subdivision (a), commencing July 1, 2014,
30regional centers may negotiate a rate adjustment with residential
31service providers regarding rates that are otherwise restricted
32pursuant to subdivision (a), if the adjustment is necessary in order
33to pay employees no less than the minimum wage as established
34by Section 1182.12 of the Labor Code, as amended by Chapter
35351 of the Statutes of 2013, and only for the purpose of adjusting
36payroll costs associated with the minimum wage increase. The
37rate adjustment shall be specific to the unit of service designation
38that is affected by the increased minimum wage, shall be specific
39to payroll costs associated with any increase necessary to adjust
40employee pay only to the extent necessary to bring pay into
P6    1compliance with the increased state minimum wage, and shall not
2be used as a general wage enhancement for employees paid above
3the minimum wage. Regional centers shall maintain documentation
4on the process to determine, and the rationale for granting, any
5rate adjustment associated with the minimum wage increase.

6(c) Notwithstanding subdivision (a), commencing July 1, 2015,
7regional centers may negotiate a rate adjustment with residential
8service providers regarding rates that are otherwise restricted
9pursuant to subdivision (a), if the adjustment is necessary to
10implement Article 1.5 (commencing with Section 245) of Chapter
111 of Part 1 of Division 2 of the Labor Code, as added by Chapter
12317 of the Statutes of 2014. The rate adjustment may be applied
13only if a minimum of 24 hours or three days of paid sick leave per
14year was not a benefit provided to employees as of June 30, 2015,
15and shall be specific to payroll costs associated with any increase
16necessary to compensate an employee up to a maximum of 24
17hours or three days of paid sick leave in each year of employment.

18(d) Notwithstanding subdivision (a), and subject to an
19appropriation of funds by the Legislature for these purposes,
20regional centers shall increase the rates paid to residential service
21providers, for servicesbegin delete whereend deletebegin insert for whichend insert rates are determined
22through a negotiation between the regional center and the provider,
23by 10 percent above the levels that otherwise would have been in
24effect on the effective date of the act that added this subdivision.

25(e) For purposes of this section, “residential service provider”
26includes Adult Residential Facilities for Persons with Special
27Health Care Needs, as described in Section 4684.50.

28(f) This section shall not apply to those services for which rates
29are determined by the State Department of Health Care Services,
30or the State Department of Developmental Services, or are usual
31and customary.

32

begin deleteSEC. 4.end delete
33begin insertSEC. 5.end insert  

Section 4688.21 of the Welfare and Institutions Code
34 is amended to read:

35

4688.21.  

(a) The Legislature places a high priority on
36opportunities for adults with developmental disabilities to choose
37and customize day services to meet their individualized needs;
38have opportunities to further the development or maintenance of
39employment and volunteer activities; direct their services; pursue
40postsecondary education; and increase their ability to lead
P7    1integrated and inclusive lives. To further these goals, a consumer
2may choose a tailored day service or vouchered community-based
3training service, in lieu of any other regional center vendored day
4program, look-alike day program, supported employment program,
5or work activity program.

6(b) (1) A tailored day service shall do both of the following:

7(A) Include an individualized service design, as determined
8through the individual program plan (IPP) and approved by the
9regional center, that maximizes the consumer’s individualized
10choices and needs. This service design may include, but may not
11be limited to, the following:

12(i) Fewer days or hours than in the program’s approved day
13program, look-alike day program, supported employment program,
14or work activity program design.

15(ii) Flexibility in the duration and intensity of services to meet
16the consumer’s individualized needs.

17(B) Encourage opportunities to further the development or
18maintenance of employment, volunteer activities, or pursuit of
19postsecondary education; maximize consumer direction of the
20service; and increase the consumer’s ability to lead an integrated
21and inclusive life.

22(2) The type and amount of tailored day service shall be
23determined through the IPP process, pursuant to Section 4646.
24The IPP shall contain, but not be limited to, the following:

25(A) A detailed description of the consumer’s individualized
26choices and needs and how these choices and needs will be met.

27(B) The type and amount of services and staffing needed to
28meet the consumer’s individualized choices and needs, and unique
29health and safety and other needs.

30(3) The staffing requirements set forth in Section 55756 of Title
3117 of the California Code of Regulations and subdivision (r) of
32Section 4851 of this code shall not apply to a tailored day service.

33(4) For currently vendored programs wishing to offer a tailored
34day service option, the regional center shall vendor a tailored day
35service option upon negotiating a rate and maximum units of
36service design that includes, but is not limited to, the following:

37(A) A daily or hourly rate and maximum units of service design
38that does not exceed the equivalent cost of four days per week of
39the vendor’s current rate, if the vendor has a daily day program
40rate.

P8    1(B) A rate and maximum units of service design that does not
2exceed the equivalent cost of four-fifths of the hours of the vendor’s
3current rate, if the vendor has an hourly rate.

4(5) The regional center shall ensure that the vendor is capable
5of complying with, and will comply with, the consumer’s IPP,
6individual choice, and health and safety needs.

7(6) For new programs wishing to offer a tailored day service
8option, the regional center shall vendor a tailored day service option
9upon negotiating a rate and maximum units of service design. The
10rate paid to the new vendor shall not exceed four-fifths of the
11temporary payment rate or the median rate, whichever is applicable.

12(7) Notwithstanding any other law, and subject to an
13appropriation of funds by the Legislature for these purposes, the
14rates paid to tailored day service providers shall be increased by
1510 percent above the levels that otherwise would have been in
16effect on the effective date of the act that added this paragraph.

17(8) Effective July 1, 2011, and prior to the time of development,
18review, or modification of a consumer’s IPP, regional centers shall
19provide information about tailored day service to eligible adult
20consumers. A consumer may request information about tailored
21day services from the regional center at any time and may request
22an IPP meeting to secure those services.

23(c) (1) A vouchered community-based training service is
24defined as a consumer-directed service that assists the consumer
25in the development of skills required for community integrated
26employment or participation in volunteer activities, or both, and
27the assistance necessary for the consumer to secure employment
28or volunteer positions or pursue secondary education.

29(2) Implementation of vouchered community-based training
30service is contingent upon the approval of the federal Centers for
31Medicare and Medicaid Services.

32(3) Vouchered community-based training service shall be
33provided in natural environments in the community, separate from
34the consumer’s residence.

35(4) A consumer, parent, or conservator vendored as a vouchered
36community-based training service shall utilize the services of a
37financial management services (FMS) entity. The regional center
38shall provide information about available financial management
39services and shall assist the consumer in selecting a FMS vendor
40to act as coemployer.

P9    1(5) A parent or conservator shall not be the direct support worker
2employed by the vouchered community-based training service
3vendor.

4(6) If the direct support worker is required to transport the
5consumer, the vouchered community-based training service vendor
6shall verify that the direct support worker can transport the
7consumer safely and has a valid California driver’s license and
8proof of insurance.

9(7) (A) The rate for vouchered community-based training
10service shall not exceed thirteen dollars and forty-seven cents
11($13.47) per hour. The rate includes employer-related taxes and
12all transportation needed to implement the service, except as
13described in paragraph (8). The rate does not include the cost of
14the FMS.

15(B) Notwithstanding subparagraph (A), and subject to an
16appropriation of funds by the Legislature for these purposes, the
17rate described in subparagraph (A) shall be fourteen dollars and
18eighty-two cents ($14.82) per hour.

19(8) A consumer vendored as a vouchered community-based
20training service shall also be eligible for a regional center-funded
21bus pass, if appropriate and needed.

22(9) Vouchered community-based training service shall be limited
23to a maximum of 150 hours per quarter. The services to be provided
24and the service hours shall be documented in the consumer’s IPP.

25(10) A direct support worker of vouchered community-based
26training service shall be an adult who possesses the skill, training,
27and experience necessary to provide services in accordance with
28the IPP.

29(11) Effective July 1, 2011, and prior to the time of development,
30review, or modification of a consumer’s IPP, regional centers shall
31provide information about vouchered community-based training
32service to eligible adult consumers. A consumer may request
33information about vouchered community-based training service
34from the regional center at any time and may request an IPP
35meeting to secure those services.

36(12) The type and amount of vouchered community-based
37training service shall be determined through the IPP process
38pursuant to Section 4646. The IPP shall contain, but not be limited
39to, the following:

P10   1(A) A detailed description of the consumer’s individualized
2choices and needs and how these choices and needs will be met.

3(B) The type and amount of services and staffing needed to
4meet the consumer’s individualized choices and unique health and
5safety and other needs.

6(d) The department may adopt emergency regulations for
7tailored day service or vouchered community-based training
8service. The adoption, amendment, repeal, or readoption of a
9regulation authorized by this subdivision is deemed to be necessary
10for the immediate preservation of the public peace, health and
11safety, or general welfare, for purposes of Sections 11346.1 and
1211349.6 of the Government Code, and the department is hereby
13exempted from the requirement that it describe specific facts
14showing the need for immediate action. A certificate of compliance
15for these implementing regulations shall be filed within 24 months
16following the adoption of the first emergency regulations filed
17pursuant to this subdivision.

18

begin deleteSEC. 5.end delete
19begin insertSEC. 6.end insert  

Section 4689.8 of the Welfare and Institutions Code
20 is amended to read:

21

4689.8.  

(a) Notwithstanding any other law, commencing July
221, 2008:

23(1) A regional center shall not pay an existing supported living
24service provider, for servicesbegin delete whereend deletebegin insert for whichend insert rates are determined
25through a negotiation between the regional center and the provider,
26a rate higher than the rate in effect on June 30, 2008, unless the
27increase is required by a contract between the regional center and
28the vendor that is in effect on June 30, 2008, or the regional center
29demonstrates that the approval is necessary to protect the
30consumer’s health or safety and the department has granted prior
31written authorization.

32(2) A regional center shall not negotiate a rate with a new
33supported living service provider, for servicesbegin delete whereend deletebegin insert for whichend insert
34 rates are determined through a negotiation between the regional
35center and the provider, that is higher than the regional center’s
36median rate for the same service code and unit of service, or the
37statewide median rate for the same service code and unit of service,
38whichever is lower. The unit of service designation shall conform
39with an existing regional center designation or, if none exists, a
40designation used to calculate the statewide median rate for the
P11   1same service. The regional center shall annually certify to the State
2Department of Developmental Services its median rate for each
3negotiated rate service code, by designated unit of service. This
4certification shall be subject to verification through the
5department’s biennial fiscal audit of the regional center.

6(b) Notwithstanding subdivision (a), and subject to an
7appropriation of funds by the Legislature for these purposes,
8regional centers shall increase the rates paid to supported living
9service providers, for servicesbegin delete whereend deletebegin insert for whichend insert rates are determined
10through a negotiation between the regional center and the provider,
11by 10 percent above the levels that otherwise would have been in
12effect on the effective date of the act that added this subdivision.

13

begin deleteSEC. 6.end delete
14begin insertSEC. 7.end insert  

Section 4690.7 is added to the Welfare and Institutions
15Code
, to read:

16

4690.7.  

(a) Notwithstanding any other law, and subject to an
17appropriation of funds by the Legislature for these purposes, the
18department shall increase the rates set for nonresidential service
19providers by 10 percent above the levels that otherwise would have
20been in effect on the effective date of the act that added this section.

21

begin deleteSEC. 7.end delete
22begin insertSEC. 8.end insert  

Section 4691.9 of the Welfare and Institutions Code
23 is amended to read:

24

4691.9.  

(a) Notwithstanding any other law, commencing July
251, 2008:

26(1) A regional center shall not pay an existing service provider,
27for services where rates are determined through a negotiation
28between the regional center and the provider, a rate higher than
29the rate in effect on June 30, 2008, unless the increase is required
30by a contract between the regional center and the vendor that is in
31effect on June 30, 2008, or the regional center demonstrates that
32the approval is necessary to protect the consumer’s health or safety
33and the department has granted prior written authorization.

34(2) A regional center shall not negotiate a rate with a new service
35provider, for services where rates are determined through a
36negotiation between the regional center and the provider, that is
37higher than the regional center’s median rate for the same service
38code and unit of service, or the statewide median rate for the same
39service code and unit of service, whichever is lower. The unit of
40service designation shall conform with an existing regional center
P12   1designation or, if none exists, a designation used to calculate the
2statewide median rate for the same service. The regional center
3shall annually certify to the State Department of Developmental
4Services its median rate for each negotiated rate service code, by
5designated unit of service. This certification shall be subject to
6verification through the department’s biennial fiscal audit of the
7regional center.

8(b) Notwithstanding subdivision (a), commencing July 1, 2014,
9regional centers may negotiate a rate adjustment with providers
10regarding rates if the adjustment is necessary in order to pay
11employees no less than the minimum wage as established by
12Section 1182.12 of the Labor Code, as amended by Chapter 351
13of the Statutes of 2013, and only for the purpose of adjusting
14payroll costs associated with the minimum wage increase. The
15rate adjustment shall be specific to the unit of service designation
16that is affected by the increased minimum wage, shall be specific
17to payroll costs associated with any increase necessary to adjust
18employee pay only to the extent necessary to bring pay into
19compliance with the increased state minimum wage, and shall not
20be used as a general wage enhancement for employees paid above
21the increased minimum wage. Regional centers shall maintain
22documentation on the process to determine, and the rationale for
23granting, any rate adjustment associated with the minimum wage
24 increase.

25(c) Notwithstanding any other law or regulation, commencing
26January 1, 2015, rates for personal assistance and supported living
27services in effect on December 31, 2014, shall be increased by
285.82 percent, subject to funds specifically appropriated for this
29increase for costs due to changes in federal regulations
30implementing the federal Fair Labor Standards Act of 1938 (29
31U.S.C. Sec. 201 et seq.). The increase shall be applied as a
32percentage, and the percentage shall be the same for all applicable
33providers. As used in this subdivision, both of the following
34definitions shall apply:

35(1) “Personal assistance” is limited only to those services
36provided by vendors classified by the regional center as personal
37assistance providers, pursuant to the miscellaneous services
38provisions contained in Title 17 of the California Code of
39Regulations.

P13   1(2) “Supported living services” are limited only to those services
2defined as supported living services in Title 17 of the California
3Code of Regulations.

4(d) Notwithstanding subdivision (a), commencing July 1, 2015,
5regional centers may negotiate a rate adjustment with existing
6service providers for services for which rates are determined
7through negotiation between the regional center and the provider,
8if the adjustment is necessary to implement Article 1.5
9(commencing with Section 245) of Chapter 1 of Part 1 of Division
102 of the Labor Code, as added by Chapter 317 of the Statutes of
112014. The rate adjustment may be applied only if a minimum of
1224 hours or three days of paid sick leave per year was not a benefit
13provided to employees as of June 30, 2015, and shall be specific
14to payroll costs associated with any increase necessary to
15compensate an employee up to a maximum of 24 hours or three
16days of paid sick leave in each year of employment.

17(e) Notwithstanding subdivision (a), and subject to an
18appropriation of funds by the Legislature for these purposes,
19regional centers shall increase the rates paid to service providers,
20for servicesbegin delete whereend deletebegin insert for whichend insert rates are determined through a
21negotiation between the regional center and the provider, by 10
22percent above the levels that otherwise would have been in effect
23on the effective date of the act that added this subdivision.

24(f) This section shall not apply to those services for which rates
25are determined by the State Department of Health Care Services,
26or the State Department of Developmental Services, or are usual
27and customary.

28

begin deleteSEC. 8.end delete
29begin insertSEC. 9.end insert  

Section 4795 is added to the Welfare and Institutions
30Code
, to read:

31

4795.  

(a) The department shall, subject to an appropriation of
32funds by the Legislature for these purposes, increase the funding
33provided to a regional center for the regional center’s operating
34budget by 10 percent above the levels that otherwise would have
35been in effect on the effective date of the act that added this section.

36(b) The department shall, subject to an appropriation of funds
37by the Legislature for these purposes, increase the funding provided
38to a regional center to enable the regional center and regional
39center’s purchase-of-service vendors to fund all of the following
40costs associated with minimum wage requirements:

P14   1(1) The costsbegin delete necessaryend delete to comply with a statewide minimum
2wage requirement.

3(2) The costsbegin delete necessaryend delete to comply with minimum wage
4requirements enacted by local governments that exceed the
5statewide minimum wage.

6(3) The costsbegin delete necessaryend delete to increase compensation for exempt,
7salaried employees to comply with wage orders issued by the
8Industrial Welfare Commission or any other state regulatory
9agency.

10(4) Any other wage adjustments that vendors are required to
11make in response to minimum wage increases mandated by state
12or federal statutes, regulations, or other authorities.

13

begin deleteSEC. 9.end delete
14begin insertSEC. 10.end insert  

Section 4796 is added to the Welfare and Institutions
15Code
, to read:

16

4796.  

The department shall develop a 10-year financial
17sustainability plan to ensure that the state’s community-based
18developmental services system effectively serves all individuals
19with developmental disabilities.

20

begin deleteSEC. 10.end delete
21begin insertSEC. 11.end insert  

Section 4860 of the Welfare and Institutions Code is
22amended to read:

23

4860.  

(a) (1) (A) The hourly rate for supported employment
24services provided to consumers receiving individualized services
25shall be thirty dollars and eighty-two cents ($30.82).

26(B) Notwithstanding subparagraph (A), and subject to an
27appropriation of funds by the Legislature for these purposes, the
28rate described in subparagraph (A) shall be thirty-three dollars and
29ninety cents ($33.90).

30(2) Job coach hours spent in travel to consumer worksites may
31be reimbursable for individualized services only when the job
32coach travels from the vendor’s headquarters to the consumer’s
33worksite or from one consumer’s worksite to another, and only
34when the travel is one way.

35(b) (1) The hourly rate for group services shall be thirty dollars
36and eighty-two cents ($30.82), regardless of the number of
37consumers served in the group. Consumers in a group shall be
38scheduled to start and end work at the same time, unless an
39exception that takes into consideration the consumer’s compensated
40work schedule is approved in advance by the regional center. The
P15   1 department, in consultation with stakeholders, shall adopt
2regulations to define the appropriate grounds for granting these
3exceptions. When the number of consumers in a supported
4employment placement group drops to fewer than the minimum
5required in subdivision (r) of Section 4851, the regional center
6may terminate funding for the group services in that group, unless,
7within 90 days, the program provider adds one or more regional
8centers, or Department of Rehabilitation-funded supported
9employment consumers to the group.

10(2) Notwithstanding paragraph (1), and subject to an
11appropriation of funds by the Legislature for these purposes, the
12rate described in paragraph (1) shall be thirty-three dollars and
13ninety cents ($33.90).

14(c) Job coaching hours for group services shall be allocated on
15a prorated basis between a regional center and the Department of
16Rehabilitation when regional center and Department of
17Rehabilitation consumers are served in the same group.

18(d) When Section 4855 applies, fees shall be authorized for the
19following:

20(1) (A) A three-hundred-sixty-dollar ($360) fee shall be paid
21to the program provider upon intake of a consumer into a supported
22employment program. No fee shall be paid if that consumer
23completed a supported employment intake process with that same
24supported employment program within the previous 12 months.

25(B) Notwithstanding subparagraph (A), and subject to an
26appropriation of funds by the Legislature for these purposes, the
27fee described in subparagraph (A) shall bebegin delete three-hundred-ninety-six-dollarsend deletebegin insert three hundred ninety-six dollarsend insert ($396).

30(2) (A) A seven-hundred-twenty-dollar ($720) fee shall be paid
31upon placement of a consumer in an integrated job, except that no
32fee shall be paid if that consumer is placed with another consumer
33or consumers assigned to the same job coach during the same hours
34of employment.

35(B) Notwithstanding subparagraph (A), and subject to an
36appropriation of funds by the Legislature for these purposes, the
37fee described in subparagraph (A) shall bebegin delete seven-hundred-ninety-two-dollarsend deletebegin insert seven hundred ninety-two dollarsend insert ($792).

P16   1(3) (A) A seven-hundred-twenty-dollar ($720) fee shall be paid
2after a 90-day retention of a consumer in a job, except that no fee
3shall be paid if that consumer has been placed with another
4consumer or consumers, assigned to the same job coach during
5the same hours of employment.

6(B) Notwithstanding subparagraph (A), and subject to an
7appropriation of funds by the Legislature for these purposes, the
8fee described in subparagraph (A) shall bebegin delete seven-hundred-ninety-two-dollarsend deletebegin insert seven hundred ninety-two dollarsend insert ($792).

11(e) Notwithstanding paragraph (4) of subdivision (a) of Section
124648, the regional center shall pay the supported employment
13program rates established by this section.

begin delete
14

SEC. 11.  

The Legislature declares that the changes made by
15this act are not intended to result in the substantial impairment of
16any contract. To the extent any contract would be substantially
17impaired as a result of the application of any change made by this
18act, it is the intent of the Legislature that the change apply only to
19contracts renewed or entered into on or after the effective date of
20this act.

end delete
21begin insert

begin insertSEC. 12.end insert  

end insert

begin insertThe rate increases for end insertbegin insertdevelopmental services
22required by this act shall supplement, and not supplant, increases
23to those rates made by the Budget Act of 2015 and Chapter 23 of
24the Statutes of 2015.end insert



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