BILL ANALYSIS Ó SB 834 Page 1 SENATE THIRD READING SB 834 (Committee on Budget and Fiscal Review) As Amended June 12, 2016 Majority vote. Budget Bill Appropriation Takes Effect Immediately SENATE VOTE: Vote not relevant SUMMARY: The omnibus developmental services trailer bill, and contains changes to implement the 2016-17 Budget. Specifically, this bill: 1)Currently, state employment must be terminated prior to becoming a vendor, resulting in a loss of income during the start-up period, which can take up to one year. This bill allows developmental center employees working at facilities slated for closure to become service providers prior to termination of their state employment. 2)Establishes a rate schedule for residential community care facilities vendored to provide services to a maximum of four persons with developmental disabilities. Prohibits regional centers from authorizing any residential service-level changes, if the change would increase state costs. 3)Repeals obsolete authority for the Prevention Resources and Referral Services program as eligibility for the Early Start SB 834 Page 2 program was restored, effective January 1, 2015. 4)Extends managed care provisions for Medi-Cal eligible individuals at the developmental centers that transition to the community and need coordinated medical and specialty care as documented in their individual program plan. These specified managed care provisions include access to specialized medical care, enhanced case management, and expedited enrollment services. Requires that the plan outlining these special provisions be shared with stakeholders prior to being finalized and be submitted to the Legislature by December 31, 2016. 5)Requires the department to provide an update to the Legislature at the time of the 2017-18 May budget revision regarding how the department will ensure access to crisis services post developmental closure and how the state will maintain its role in providing residential services to those whom private sector vendors cannot or will not serve. 6)Requires that reports of injuries, death, restraint usage, and incidents of seclusion, for example, at community facilities be reported to the federally-mandated protection and advocacy agency. 7)Limits the use of seclusion and restraints in enhanced behavioral support homes licensed by the Department of Social Services. 8)Requires regular public posting (on the department's Internet Web site) of progress being made to develop residential capacity by regional center, including information on monthly targets for movers based on transition activities and community resource development activities) by regional center. SB 834 Page 3 This monthly reporting would also include information on why targets are not met. 9)Requires regional centers to consult with stakeholders regarding activities that may be effective in addressing disparities. Requires the department to review requests for funding for activities related to addressing disparities within 30 days from the receipt of the last proposal. Requires each regional center to report to the department how the funding allocations for activities related to addressing disparities were used. 10)Requires regional centers to consult with the local volunteer advisory committee when conducting outreach to provide information about the Self-Determination Program and in the planning for trainings regarding this program. 11)Clarifies that the rate increase provided by AB 1 X2 (Thurmond), Chapter 3, Statutes of 2015-16 Second Extraordinary Session, applies to out-of-home respite services. Clarifies the provisions of competitive integrated employment (CIE) to expand participation in the workforce by providing an incentive payment separate from supported employment services for regional center providers that place individuals in CIE and that, in order for a provider to receive the first incentive payment, the individual must be employed after 30 consecutive days. 12)Implements provider rate adjustments to address the state minimum wage increase. SB 3 (Leno), Chapter 4, Statutes of 2016, provides for a series of scheduled increases to the state's minimum wage such that, depending on economic and budgetary conditions, the minimum wage would reach $15.00 per hour by January 1, 2022, after which it would be indexed to inflation. SB 834 Page 4 13)Establishes a performance dashboard, requires the Department of Developmental Services (DDS) to work with stakeholders on the development of this dashboard, and requires this dashboard to be published annually. Metrics included in this dashboard would include, but not be limited to: a) Recognized quality and access measures. b) Measures to indicate compliance with new federal Home and Community Based Services waiver rules. c) Measures to evaluate the changes in the number of consumers who work in competitive integrated employment. d) Consumer complaints. e) Number of administrative hearings. 14)Requires DDS to annually report and post on its website supplemental budget information. This information would be reported by February 1 and includes: a) Budget estimates for each developmental center, including a break out of staffing costs for Porterville Development Center's general treatment area and secured treatment area. b) For each regional center: current year estimates for operations funding, purchase of service (POS) funding, caseload, per capita for operations, per capita for POS. c) By regional center, information on staff. SB 834 Page 5 d) For Community Placement Program (CPP) funding: for each regional center, past year and current year information by component of CPP. 15)Specifies analysis and deliverables for the new fiscal and research unit established in the budget. These would include an: a) Assessment of disparities data reported by regional centers. b) Assessment of caseload ratio requirements by regional center. c) Assessment of performance dashboard data as it becomes available. 16)Requires DDS to report quarterly on the estimated General Fund backfill costs as a result of the loss of federal funds due to the decertification of intermediate care facility units at the Sonoma Developmental Center. Also requires similar reporting if these units at the Fairview and Porterville Developmental Centers are decertified by the federal government in the budget year. FISCAL EFFECT: This bill appropriates federal funds related to developmental services. COMMENTS: This bill makes technical and clarifying statutory revisions necessary to implement the Budget Act of 2016. Analysis Prepared by: Jazmin Hicks / BUDGET / (916) 319-2099 FN: 0003427 SB 834 Page 6