BILL ANALYSIS �
AB 254
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Date of Hearing: January 10, 2012
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Jim Beall Jr., Chair
AB 254 (Beall) - As Amended: January 4, 2012
SUBJECT : Developmental services: Employment First Policy
SUMMARY : Establishes a state Employment First Policy.
Specifically, this bill :
1)Declares that it is the policy of the state that integrated
competitive employment is the priority outcome for working age
individuals with developmental disabilities and refers to this
policy as the Employment First Policy.
2)States the following with respect to the Employment First
Policy:
a) The policy is in furtherance of the intent of the
Lanterman Developmental Disabilities Services Act
(Lanterman Act) that services and supports be available to
enable people with developmental disabilities to
approximate the pattern of everyday living available to
people without disabilities of the same age and that
support their integration into the mainstream life of the
community, and that such services and supports result in
more independent, productive, and normal lives for the
persons served.
b) Implementation of the policy is to be consistent with
rights established under the Lanterman Act, including the
right of people with developmental disabilities to make
informed choices with respect to individual program
planning and implementation.
c) Integrated competitive employment is intended to be the
first option considered for working age individuals;
however, individuals may choose goals other than integrated
competitive employment.
3)Defines terms as follows:
a) "Competitive employment" is work:
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i) That is in the competitive labor market that is
performed on a full-time or part-time basis in an
integrated setting; and,
ii) For which an individual is compensated at or above
the minimum wage, but not less than the customary wage
and level of and level of benefits paid by the employer
for the same or similar work performed by individuals who
are not disabled.
b) "Integrated employment" includes integrated work and
supported employment, as defined in existing law, as well
as microenterprises and self-employment.
c) "Microenterprises" are integrated competitive employment
consisting of small businesses owned by individuals with
developmental disabilities who control and oversee the
business and who have appropriate business licenses,
taxpayer identification numbers, and business bank
accounts.
d) "Self-employment" is an employment setting in which an
individual works in a chosen occupation, for profit or fee,
in his or her own small business, with control and
responsibility for decisions affecting the conduct of the
business.
4)Requires regional centers to ensure that, beginning at age 14,
consumers and, where appropriate, their parents, legal
guardians, or conservators, be provided with information, in a
language they understand, about:
a) The Employment First Policy;
b) Options for integrated competitive employment; and,
c) Services and supports, including post-secondary
education, available to enable the consumer to transition
from school to work and to achieve the outcomes of
obtaining and maintaining integrated competitive
employment.
5)Authorizes the Department of Developmental Services (DDS) to
request information from regional centers on current and
planned activities related to the Employment First Policy,
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including data on the numbers of consumers engaged in
integrative competitive employment, and, as appropriate, to
post information on its Internet Web site related to the
policy.
EXISTING LAW
1)Establishes the Lanterman Act, under which DDS contracts with
21 private non-profit regional centers to provide case
management services and arrange for, or purchase, services
that meet the needs and choices of individuals with
developmental disabilities.
2)Requires that regional centers secure needed services and
supports that meet the needs of each individual, as determined
in his or her individual program plan (IPP).
3)Provides that regional center planning teams give the highest
priority to services and supports that allow adults with
developmental disabilities to live as independently as
possible in the community, and states that services and
supports should be available to enable persons with
developmental disabilities to approximate the pattern of
everyday living available to people without disabilities of
the same age, that support their integration into the
mainstream life of the community, and that result in more
independent, productive, and normal lives for the persons
served.
4)Requires the California State Council on Developmental
Disabilities (SCDD) to form a standing Employment First
Committee and provides that the responsibilities of the
committee include recommending legislative, regulatory, and
policy changes for increasing the number of individuals with
developmental disabilities in integrated employment,
self-employment and microenterprises, and who earn wages at or
above minimum wage.
i) Requires that this shall include the development of
a proposed policy, the intended outcome of which is a
significant increase in the number of individuals with
developmental disabilities who engage in integrated
employment, self-employment and microenterprises, and in
the number of individuals who earn wages at or above
minimum wage.
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ii) Specifies that the proposed policy not limit service
and support options otherwise available under the
Lanterman Act.
5)Requires the Employment First Committee, by July 1, 2011, and
annually thereafter, to provide a report to legislative policy
committees and the Governor describing its work and
recommendations. Requires the initial report to include the
proposed policy.
FISCAL EFFECT : Unknown
COMMENTS : Reducing unemployment and creating jobs to enable
people to earn a living wage is a state and a national priority.
This bill, according to the author, would establish these goals
as state priorities for people with developmental disabilities
as well.
California and national employment rates for people with
disabilities, generally, and for people with intellectual and
developmental disabilities, particularly, are far worse than for
the general public. The most recent report on state-by-state
employment data from the Institute for Community Inclusion notes
that "there remains a significant gap in employment rates
between people with and without disabilities"<1> Nationally,
the StateData Report indicates that, in 2009, 68.2% of
working-age people (ages 16-64) were employed, compared to 34.9%
of people with any disability and 23.9% of people with a
cognitive disability.<2> Comparable figures for California
were: 66% of all people employed, compared to 33% of people
with any disability and 21.3% of people with a cognitive
disability.<3> Nationally, moreover, the percentage of people
served by state intellectual/developmental disabilities agencies
(DDS in California), who are in integrated employment has gone
down, from a high of 25% in 2001 to only 20% in 2009.<4> In
California, the percentage decreased from 24% in 2001 to only
---------------------------
<1> Butterworth, J., Hall, A.C., Smith, F.A., Migliore, A., &
Winsor, J. (2011) StateData: The National Report on Employment
Services and Outcomes. Boston, MA: Institute for community
Inclusion, University of Massachusetts Boston, p. 9; "StateData
Report."
<2> Id. at 51.
<3> Id. at 81.
<4> Id. at 53.
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15% in 2009.<5>
Employment First : In response to this state of affairs, a
growing number of states are adopting "Employment First"
policies-either through statute or administrative policies and
practices.<6> There are currently over 25 states that are
focused at some level on the concept of Employment First-in some
cases with a focus specifically on people with intellectual
and/or developmental disabilities, and in others a
cross-disability focus.<7> Approximately 10 states have clear
public policies in place.<8>
Employment First recognizes that providing services and supports
to enable people with disabilities to earn a living wage is a
legitimate state priority. Employment First embodies the notion
that employment should be the first option offered to
working-age adults with disabilities, including developmental
disabilities.
In October 2008, the U.S. Department of Labor, Office of
Disability Employment Policy, held a Roundtable on Employment
for People with Intellectual and Other Developmental
Disabilities. The executive summary made the following points
related to employment of people with disabilities and the
establishment of Employment First policies:
The majority of individuals with intellectual and
other significant, complex disabilities who have high
support needs are unable to achieve the American dream
of a job, a family and financial security. Instead,
they are caught in a cycle of poverty by the laws,
regulations and policies of the public and private
----------------------
<5> Id. at 83.
<6> See, e.g., Q&A's on State Employment First Policies (March
2008), State Employment Leadership Network (SELN)
( http://www.seln.org/images/stories/site_documents/dmr%20request%
20employment%20policy%203-08rev.pdf ); Establishing a National
Employment First Agenda, (October 2009) APSE
( http://www.apse.org/docs/FINAL%20Employment%20First%20Paper%2010
1.pdf ).
<7> Kiernan, E., Hoff, D., Freeze, S., and Mank, D. (2011).
Employment First: A beginning not an end. Intellectual and
Developmental Disabilities, 49(4), 300.
<8> Id.
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programs providing their supports and services.
Individuals with significant disabilities and high
support needs continue to be considered "nonfeasible"
for typical employment, often relegated to
institutions, day programs or sheltered work
environments at sub-minimum wages. ... Fortunately,
innovative strategies have emerged over the last few
years that, if fully implemented, would remove most of
the existing barriers to employment and
self-sufficiency for individuals with intellectual and
other significant, complex disabilities. ... �A]
handful of states have adopted policies that require
employment to be a prime consideration for Medicaid
Waiver dollars. These "Employment First" initiatives
can significantly increase employment opportunities
for individuals with intellectual and other
developmental disabilities and high support needs.
AB 287 : AB 287 (Beall), Chapter 231, Statutes of 2009, included
findings and declarations stating, among other things, that:
Working age people with disabilities are among the most
unemployed and underemployed members of society;
People with developmental disabilities are an important
and largely untapped employment resource;
Recent data indicate that California ranks 41st among
the states in the percentage of working age individuals
with developmental disabilities in competitive or supported
employment.
Regional center planning teams are encouraged to discuss
school-to-work opportunities during IPP meetings beginning
when a consumer reaches 14 years of age, and regional
center representatives are encouraged to inform consumers
and their representatives that the regional center is
available, upon request, to participate in the consumer's
individualized education plan meetings to discuss
transition planning.
AB 287 put in place a process for examining issues concerning
employment of people with developmental disabilities, centered
on the concept of employment first. AB 287 required that SCDD
establish a standing Employment First Committee. The Employment
First Committee includes designees of specified entities that
are members of SCDD: DDS, the Department of Rehabilitation, the
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Superintendent of Public Instruction, the university centers for
excellence in developmental disabilities, and the state
protection and advocacy agency. It also includes a member of
SCDD's consumer advisory committee. The Employment First
Committee is also required to meet and consult, as appropriate,
with other state and local agencies and organizations,
including, but not limited to, the Employment Development
Department, the Association of Regional Center Agencies,
supported employment provider organizations, an organized labor
organization representing service coordination staff, and
consumer family member organizations.
Under AB 287, the Employment First Committee's responsibilities
include identifying strategies and best practices, and making
recommendations for legislative, regulatory, and policy changes,
the intended outcome of which is "a significant increase in the
number of people with developmental disabilities who engage in
integrated employment, self-employment, and microenterprises,
and the number of individuals who earn wages at or above minimum
wage."
By July 1, 2011, and annually thereafter, the Employment First
Committee is required by AB 287 to provide a report to the
appropriate policy committees of the Legislature and the
Governor describing its work and recommendations. The 2011
Employment First Report (Report)<9> notes that "Employment First
is about focusing on real jobs, real wages, and real business
settings for individuals with developmental disabilities to have
the ability to increase their income and benefits, accrue assets
and build wealth." (p. 4.) The Report delineates goals and
objectives for improving integrated employment outcomes.
Recommendations address such issues as interagency collaboration
and coordination; transition planning for students in secondary
education; obtaining and maintaining employment; and the impact
of employment on public benefits.
As directed by AB 287, among its recommendations, the July 2011
Report proposes an Employment First Policy. Report, pp. 4,
---------------------------
<9> Employment First: A vision of Californians with
developmental disabilities working in competitive integrated
employment. (2011), State Council on Developmental Disabilities;
available at
http://www.scdd.ca.gov/HQ-%20Employment%20First%20Report%208-9-11
.pdf
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45-46. That proposed policy is the subject of this bill.
For people with developmental disabilities, the author says, "a
job provides a structure to the day, a paycheck that can be used
for purchasing goods and services, an identity as a contributing
member of the community, and an increase in personal
self-esteem." The Legislature's adoption of the policy proposed
by the Employment First Committee will demonstrate the state's
commitment to increasing the number of Californians with
developmental disabilities who are productive, pay taxes, and
are more self-sufficient and involved in their communities. The
author further states that the Employment First Policy
"establishes a high priority on providing supported employment
and other integrated employment opportunities for people with
developmental disabilities." Competitive integrated employment
is also cost-effective. Supported employment services are less
costly on average than alternative day and work programs.
Moreover, people in integrated competitive employment pay taxes
and are less reliant on public services.
The author intends that the Employment First Policy will
establish a goal to guide future efforts, and will provide the
impetus and set the groundwork for activities and initiatives to
expand opportunities for people with developmental disabilities
to engage in integrated gainful employment and postsecondary
education.
In support of this bill, SCDD says that focusing the state on
integrated competitive employment for people with developmental
disabilities "is critical to enhancing the productivity,
independence and inclusion of these individuals into society."
It will reduce their dependence on segregated services and
thereby reduce costs to the State. SCDD notes that this bill
"recognizes and retains an individual's right to make informed
choices about their future and that there are a variety of paths
to employment including post-secondary education and other
vocational training options." However, "the outcome is real
work side-by-side �with] others with and without disabilities."
SCDD concludes that this bill "is good for the economy, good for
business and good for individuals with disabilities as they
become productive members of society and give back as
contributing/taxpaying members of the community."
Concerns : When the Employment First Report, including the
proposed Employment First Policy, was being considered for
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adoption by SCDD, concerns were expressed by some individuals
that the proposed Employment First Policy would mandate that
employment be a priority for every individual and, therefore,
would be inconsistent with the Lanterman Act's emphasis on
individual choice. The same concern is expressed by Educate.
Advocate., which opposes this bill unless amended.
The wording of the proposed policy was considered and approved
by the Employment First Committee, established pursuant to AB
287 and comprised of a broad spectrum of stakeholders, including
consumers, with expertise in the Lanterman Act and employment of
people with developmental disabilities. It was also approved by
SCDD as part of the Employment First Report. The statement of
the Employment First Policy, itself, specifically says that it
is the policy of the state "that integrated, competitive
employment is the priority outcome for working age individuals
with developmental disabilities." It neither states that this
is a priority nor mandates that this be the outcome for any
individual. In addition, the explicit language of this bill
includes a clear statement of the intent of the policy. AB 254
explicitly says that "�i]mplementation of the policy shall be
consistent with the rights established under �the Lanterman
Act], including the right of individuals to make informed
choices" and, further, that "�i]ntegrated competitive employment
is intended to be the first option considered for working age
individuals, " but individuals may choose goals other than
integrated competitive employment . "
Related to this issue, East Bay Innovations (EBI), a service
provider of multiple services to people with developmental
disabilities, including employment services and supports, states
in support of this bill, "we clearly see AB 254 as a bill that
will push our service system forward to generate more quality
employment opportunities for people with developmental
disabilities." EBI further says, "�w]e do not see AB 254 as a
barrier to people with developmental disabilities directing
their own future and services through the IPP process or somehow
limiting the menu of service options currently available." The
Service Employees International Union - California (SEIU), also
in support, similarly notes that "traditional day and employment
services have played and will continue to play an important role
as part of the web of community supports. AB 254 preserves the
ability of regional center clients to make their own choices on
their preferred options for day services, and these traditional
services will continue to offer them those supports when they
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choose." "However," SEIU says, "regional center clients have
generally NOT been given a real choice that involves integrated
competitive employment, since those necessary employment
supports are largely not available. By creating an 'Employment
First' policy, AB 254 seeks to redirect state resources to give
people that choice."
The Association of Regional Center Agencies (ARCA) has a
"support if amended" position on this bill. ARCA expresses
support for the "opportunity to have a comprehensive Employment
First policy" but has concerns with asserted workload issues
resulting from specific provisions of the bill, particularly the
requirement that regional centers discuss school-to-work
opportunities at IPP meetings beginning when a consumer is 14
years of age, and offering to participate in special education
individualized education planning meetings to discuss and
coordinate transition planning with the school district. In
light of regional centers' overall case management
responsibilities under current law, however-even for school-age
consumers-and the inarguable benefit of providing continuity as
consumers move from school to work, it is not clear that this
provision places any significant new responsibilities on
regional centers.
ARCA is also concerned with the requirement that information
about the Employment First Policy, about options for integrated
and competitive employment, and about services and supports,
including post-secondary education, be provided "in a language
that the consumer and, as appropriate, the consumer's
representative understand." This requirement is characterized
as "onerous" and "beyond the capacity of any regional center."
It is not obvious what ARCA proposes as an alternative: E.g.,
not providing information about employment and post-secondary
education options, etc. to non-English-speaking consumers? Or,
providing such information but in a language the consumer and
consumer representative do not understand? Neither alternative
would be consistent with existing regional center obligations
under the Lanterman Act. Moreover, this bill does not require
the development of materials, as ARCA suggests, and certainly
not separately by each regional center.
Finally, ARCA is concerned with the provision of this bill
authorizing DDS to request information, as appropriate, from
regional centers on current and planned activities related to
the Employment First Policy. This bill authorizes DDS to
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request input from regional centers on their activities related
to the Employment First Policy and data on the numbers of
consumers engaged in integrated competitive employment. These
provisions will assist in, for example, identifying best
practices and in tracking progress from implementation of the
policy. While recognizing the importance of ongoing data
tracking to assist in measuring the success of the policy, ARCA
is concerned with the additional workload on regional center
staff.
Prior bills :
AB 287 (Beall), Chapter 231, Statutes of 2009 , established the
Employment First Committee as a standing committee of the State
Council on Developmental Disabilities to identify strategies and
best practices for significantly increasing the numbers of
people with developmental disabilities in competitive integrated
employment and the number who earn wages at or above minimum
wage.
AB 2424 (Beall 2008) would have established an employment first
policy. Unlike this bill, AB 2424 also made significant changes
to the IPP process and imposed responsibilities on regional
centers and DDS related to the development of materials, the
provision of information, and the conduct of IPP meetings. AB
2424 also addressed non-employment-related integrated
activities. AB 2424 was held in the Senate Appropriations
Committee.
SB 1270 (Chesbro), Chapter 397, Statutes of 2006 , established a
process to receive public input on ways to expand opportunities
for people with developmental disabilities in the areas of
employment and community participation. A resulting May 2007
Report to the Legislature and the Governor, prepared by the
State Council on Developmental Disabilities, included
recommendations for improvements to the transition services
planning process for students and recommended policies and
initiatives to expand employment opportunities for people with
developmental disabilities. SB 1270 Report on expanding
opportunities and choice in California's day program services
for individuals with developmental disabilities," (May 2007),
State Council on Developmental Disabilities.
REGISTERED SUPPORT / OPPOSITION :
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Support
State Council on Developmental Disabilities (SCDD) (sponsor)
Area 4 Board on Developmental Disabilities
Disability Rights California
East Bay Innovations (EBI)
Service Employees International Union - California (SEIU)
Opposition
Educate. Advocate. (unless amended)
Analysis Prepared by : Eric Gelber / HUM. S. / (916) 319-2089