BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 2338 (Chesbro) - Developmental services: Employment First
Policy.
Amended: July 5, 2012 Policy Vote: Human Services 4-2
Urgency: No Mandate: No
Hearing Date: August 6, 2012
Consultant: Jolie Onodera
This bill meets the criteria for referral to the Suspense File.
Bill Summary: AB 2338 would require regional center (RC)
planning teams under the jurisdiction of the Department of
Developmental Services (DDS) to consider an Employment First
Policy, as specified, when developing an individual program plan
(IPP) for consumers 16 years of age and older. Additionally,
this bill:
States it is the policy of the state, to be known as the
Employment First Policy, that opportunities for integrated,
competitive employment shall be given the highest priority
for working age individuals with developmental
disabilities.
Requires RCs to provide consumers, beginning at 16 years
of age, and their parents, legal guardians, or
conservators, with information, in a language that the
consumer and consumer's representative understand, about
the Employment First Policy, about options for integrated
competitive employment, and about services and supports,
including postsecondary education, available to enable the
consumer to transition from school to work, and to achieve
the outcomes of obtaining and maintaining integrated
competitive employment.
Fiscal Impact:
Potentially significant one-time costs to the extent the
translation of written materials into languages that
consumers and their representatives can understand is
required to comply with the provisions of this bill.
Alternatively, potential ongoing costs for training or
hiring service coordinators fluent in a number of languages
to the extent information is to be provided verbally to
consumers.
AB 2338 (Chesbro)
Page 1
Substantial potential future costs to the extent RC
consideration of the Employment First Policy results in
increases in supportive and supplemental employment
programs and job training programs, and/or the request for
dedicated employment specialists or benefits counselors at
RCs. One new position at each of the 21 RCs would result in
ongoing costs of approximately $1.3 million (General Fund).
Potential long-term fiscal benefits to the state
including reduced reliance on publicly-funded
benefits/services as well as increased tax revenues to the
extent more individuals engage in integrated, competitive
employment as a result of this policy.
Background: California provides community-based services to
approximately 250,000 persons with developmental disabilities
and their families through a statewide system of 21 regional
centers. Regional centers are private, nonprofit agencies under
contract with DDS for the provision of various services and
supports to people with developmental disabilities. As a single
point of entry, regional centers provide diagnostic and
assessment services to determine eligibility; convene planning
teams to develop an individual program plan (IPP) for each
eligible consumer; and either provide or obtain from generic
agencies appropriate services for each consumer in accordance
with the IPP.
According to the State Council on Developmental Disabilities
(SCDD), data indicates only 13 percent of working age
individuals with developmental and intellectual disabilities are
engaged in competitive or supported employment. The SCDD
released an Employment First Report in August 2011 which
outlined goals and objectives to improve integrated employment
outcomes, including interagency collaboration, transition
planning for students in secondary education, obtaining and
maintaining employment, and the impact of employment on public
benefits. The recommendations included in the SCDD report are
the subject of this measure.
Proposed Law: This bill seeks to pursue a policy of employment
first for individuals with developmental disabilities, as
follows:
Declares it is the policy of the state, to be known as
the Employment First Policy, that opportunities for
integrated, competitive employment shall be given the
AB 2338 (Chesbro)
Page 2
highest priority for working age individuals with
developmental disabilities, regardless of the severity of
their disabilities.
Requires implementation of the policy to be consistent
with, and not infringe upon, the rights of people with
developmental disabilities to make informed choices with
respect to services and supports through the IPP process.
Provides that integrated competitive employment is
intended to be the first option considered by planning
teams for working age adults, but individuals may choose
goals other than integrated competitive employment.
Provides definitions for the following terms:
competitive employment integrated employment,
self-employment, and microenterprises.
Requires a RC planning team to consider the Employment
First Policy, as specified, when developing an IPP for a
transition age youth or working age adult.
Provides that this chapter shall not be construed to
expand the existing entitlement to services for persons
with disabilities described in this division.
Provides that this chapter shall not alleviate schools
of their responsibility to provide transition services to
individuals with developmental disabilities.
Requires RCs to provide consumers, beginning at 16 years
of age, and where appropriate, their parents, legal
guardians, or conservators, with information in a language
that the consumer and the consumer's representative
understand, about the Employment First Policy, about
options for integrated competitive employment, and about
services and supports, including postsecondary education,
available to enable the consumer to transition from school
to work, and to achieve the outcomes of obtaining and
maintaining integrated competitive employment.
Authorizes the DDS to request information from RCs on
current and planned activities related to the Employment
First Policy.
Related Legislation: AB 254 (Beall) 2011 was substantially
similar to this measure and was held on the Suspense File of the
Assembly Committee on Appropriations.
AB 287 (Beall) Chapter 231/2009 established the Employment First
Committee as a standing committee of SCDD to identify strategies
and best practices for significantly increasing the numbers of
AB 2338 (Chesbro)
Page 3
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 and made significant changes to the IPP process and
imposed responsibilities on RCs and DDS related to the
development of materials, the provision of information, and the
conduct of IPP meetings. This bill was held on the Suspense File
of this Committee.
SB 1270 (Chesbro) Chapter 397/2006 established a process to
receive public input on way to expand opportunities for
individuals with developmental disabilities in the areas of
employment and community participation.
Staff Comments: This bill requires RCs to provide consumers,
beginning at 16 years of age, and where appropriate, their
parents, legal guardians, or conservators, with information in a
language that the consumer and the consumer's representative
understand, about the Employment First Policy, about options for
integrated competitive employment, and about services and
supports, including postsecondary education, available to enable
the consumer to transition from school to work, and to achieve
the outcomes of obtaining and maintaining integrated competitive
employment.
In previous bills regarding this issue, the provisions specified
that when the consumer's primary language is not English, that
RCs take appropriate steps to ensure the consumer was able to
understand the information. Although not specifically stated in
this bill, there could be a similar presumption of a requirement
for translation, in writing, verbally, or potentially both, in
order for the information to be provided "in a language that the
consumer and the consumer's representative understand." This
could result in significant new costs for translation of written
materials, and/or the training and hiring of service
coordinators fluent in a number of languages in order to provide
the specified information verbally.
This bill states it is the policy of the state that
opportunities for integrated, competitive employment be given
the highest priority for working age individuals with
developmental disabilities in furtherance of the intent to make
AB 2338 (Chesbro)
Page 4
services and supports available to these individuals. The
provision in the bill stating that "This chapter shall not be
construed to expand the existing entitlement to services?"
notwithstanding, the DDS could incur significant future costs in
order to adhere to the principles established under the
provisions of this bill to the extent RC consideration of the
Employment First Policy results in increases in the provision
of, or information related to the availability of, supportive
and supplemental employment programs and job training programs.
In order to realize the goal of providing adequate supports to
individuals with developmental disabilities, the SCDD Employment
First Report (August 2011) included strategies including but not
limited to the following:
Provide RC service coordinators with employment training
from experts to instruct them on the available supports to
individuals with developmental disabilities in obtaining and
maintaining employment.
Request funding to add a dedicated employment specialist at
each RC, to enhance the level of information about employment
and related issues available to individuals with
developmental disabilities, families, service coordinators,
and employers.
Provide funding to each RC to employ a designated benefits
counselor to assist individuals with developmental
disabilities and their families understand the desirability
of employment even if benefits change, assist them to access
benefits such as Social Security impairment related work
expenses for transportation and other needs, etc.
While statewide cost information is unavailable, the changes
proposed by this bill could result in significant costs to the
DDS associated with increases in service coordinator time for
training on the new policy, IPP development and implementation,
and the development and distribution of additional educational
materials. Additional workload could also be incurred for
examining the existing allocation of resources to determine if a
shift from non-work related activities to supports for
employment and work would be possible, or if additional
resources would be required in order to further the goals of the
Employment First Policy.
By prioritizing the principles of the Employment First Policy,
AB 2338 (Chesbro)
Page 5
there could be future costs to the DDS to the extent the
strategies referenced above are pursued. Costs to fund dedicated
employment specialists or benefits counselors as recommended by
the SCDD could result in ongoing costs of approximately $1.3
million (based on a minimum of one new position at each of the
21 RCs).
With regard to the potential impact on services, if one percent
of the individuals served by RCs received additional
employment-related services at an average of $1,000 per person
as the result of this bill, the provisions of this bill could
result in new costs of $2.5 million annually. Total costs could
be offset in part by a corresponding shift away from
participation in day programs to employment-related programs.
The DDS has indicated this measure could have a minor,
absorbable fiscal impact for DDS to compile outcome data, as
authorized but not mandated under the provisions of this bill.
To the extent the implementation of the Employment First Policy
assists individuals with developmental disabilities engage in
integrated, competitive employment, this measure could result in
long-term fiscal benefits to the state including reduced
reliance on publicly-funded benefits/services as well as
increased tax revenues.