BILL ANALYSIS �
AB 2338
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Date of Hearing: April 10, 2012
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Jim Beall Jr., Chair
AB 2338 (Chesbro and Beall) - As Introduced: February 24, 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 shall be consistent with
and shall not infringe upon rights under the Lanterman Act,
including the right of people with developmental
disabilities to make informed choices with respect to
services and supports through the individual program
planning.
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)Declares that nothing in the provisions related to the
Employment First Policy shall be construed to expand the
existing entitlement to services for people with developmental
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disabilities under the Lanterman Act.
4)Provides that, when developing an individual program plan for
a transition age youth or working age adult, the planning team
shall consider the Employment First Policy.
5)Defines terms as follows:
a) "Competitive employment" is work:
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.
6)Requires regional centers to ensure that, beginning at age 16,
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,
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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.
7)Authorizes the Department of Developmental Services (DDS) to
request information from regional centers on current and
planned activities related to the Employment First 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
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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.
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 authors, 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
---------------------------
---------------------------
<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.
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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
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
---------------------------
<3> Id. at 81.
<4> Id. at 53.
<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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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
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
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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
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
---------------------------
<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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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,
45-46. That proposed policy is the subject of this bill.
For people with developmental disabilities, the authors say, "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
authors further state 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 authors intend 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
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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."
AB 254 (Beall 2011) : This bill is substantially similar to AB
254, which was introduced last year and passed by this committee
but was held on suspense in the Assembly Appropriations
Committee. To address cost concerns with AB 254, this bill:
Does not specify the type of information and data that
DDS may request from regional centers on current and
planned activities related to the Employment First Policy.
Does not require regional centers to inform consumers
and their representatives that the regional center is
available to participate in consumers' special education
planning team meetings to discuss and coordinate transition
planning with the school district.
Explicitly states that nothing in this bill shall be
construed to expand the existing entitlement to services
for people with developmental disabilities under the
Lanterman Act.
Other concerns with AB 254 : When the Employment First Report,
including the proposed Employment First Policy, was being
considered for 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. That interpretation was not
warranted based on the wording of the proposed policy itself or
AB 254.
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 specifically says that it is the
policy of the state "that integrated, competitive employment is
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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.
The explicit language of AB 254 included a statement of the
intent of the policy. This bill, the authors say, makes it even
clearer that the policy is intended to be consistent with
existing rights under the Lanterman Act, "including the right of
people with developmental disabilities to make informed choices
with respect to services and supports through the �IPP]
process." Like AB 254, this bill further states 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 ."
And, finally, while AB 254 said that, when developing an
individual program plan for a transition age youth or working
age adult, the "regional center shall be guided by" the
Employment First Policy, this bill clarifies that it is the
"�IPP] team" which need only "consider" the policy.
Prior bills :
AB 254 (Beall 2011) was substantially similar to this bill but
raised cost issues and was held in the Assembly Appropriations
Committee. This bill addresses the cost issues as well as other
concerns with AB 254.
AB 287 (Beall), Chapter 231, Statutes of 2009 , established the
Employment First Committee as a standing committee of SCDD 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
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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 SCDD,
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),
SCDD.
REGISTERED SUPPORT / OPPOSITION :
Support
State Council on Developmental Disabilities (sponsor)
Mr. Bill Cornelius, Superintendent, Sutter County,
Superintendent of Schools
Opposition
None on file.
Analysis Prepared by : Eric Gelber / HUM. S. / (916) 319-2089