BILL ANALYSIS                                                                                                                                                                                                    �






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                            Senator Jim Beall, Chair


          BILL NO:       AB 1595                                      
          A
          AUTHOR:        Chesbro                                      
          B
          VERSION:       June 18, 2014
          HEARING DATE:  June 24, 2014                                
          1
          FISCAL:        Yes                                          
          5
                                                                      
          9
          CONSULTANT:    Mareva Brown                                 
          5

                                        

                                     SUBJECT
                                         
                  State Council on Developmental Disabilities

                                     SUMMARY  

          This bill broadly rewrites the statutory responsibilities  
          of the State Council on Developmental Disabilities (SCDD),  
          including restructuring the role and scope of the state's  
          13 area boards, to comply with the requirements of the  
          federal Administration on Intellectual and Developmental  
          Disabilities, which has designated the SCDD as being at  
          high risk and limited access to its $6.5 million grant.  
          Specifically, the bill would revise the Governor's  
          appointees on the council from 31 voting members, including  
          13 members from the area boards and 7 members at large to  
          20 members, as specified. While by federal statue the  
          Governor must appoint SCDD members, this bill removes  the  
          Governor's role in appointing members of area boards and  
          SCDD staff. This bill would recast the state's 13  
          independent area boards as regional offices or regional  
          advisory committees and would make their establishment  
          discretionary. Additionally, this bill revises the  
          authorization for the state Department of Developmental  

                                                         Continued---




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          Services (DDS) to contract with SCDD for advocacy services  
          within its developmental centers and makes other conforming  
          changes.

                                     ABSTRACT  

           Existing law

           1)Establishes the Lanterman Developmental Disabilities  
            Services Act, which states that California is responsible  
            for providing an array of services and supports  
            sufficiently complete to meet the needs and choices of  
            each person with developmental disabilities, regardless  
            of age or degree of disability, and at each stage of life  
            and to support their integration into the mainstream life  
            of the community. (WIC 4500, et al)  

           2)Under the Developmental Disabilities Assistance and Bill  
            of Rights Act of 2000 (DD Act) establishes in federal law  
            the Administration on Intellectual and Developmental  
            Disabilities (AIDD) with funding to state councils on  
            developmental disabilities to engage in advocacy,  
            capacity building and systemic change. (42 USC 15021 �   
            121)  
                 
           3)Creates the SCDD as an authority independent of any  
            single state service agency to advocate for persons with  
            developmental disabilities, tasks the Governor with  
            appointing all 31 members and designates the groups they  
            must represent, including area board members, and  
            specific terms of service. (WIC 4520, WIC 4521)  
                
          4)Establishes that statutes creating the SCDD and its area  
            boards are intended by the Legislature to secure full  
            compliance with the requirements of the DD Act. (WIC 4620  
            (c))  
                 
          5)In order to comply with federal requirements, requires  
            the SCDD to serve as the state planning council  
            responsible for developing and monitoring implementation  
            of the "California Developmental Disabilities State  
            Plan," and to perform a number of additional specified  
            duties, including: 

               a.     Serve as the official agency responsible for  





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                 planning the provision of the federal funds allotted  
                 to the state, as specified, and to apportion these  
                 funds among agencies and area developmental  
                 disabilities boards in compliance with applicable  
                 state and federal law.
               b.     Through support of the area boards, engage in  
                 geographically based outreach and individual and  
                 systemic advocacy to assist and enable individuals  
                 and families to obtain services, supports, and other  
                 forms of assistance.
               c.     Provide testimony to legislative committees  
                 reviewing fiscal or policy matters pertaining to  
                 persons with developmental disabilities.
               d.     Support and conduct training for persons with  
                 developmental disabilities and their families to  
                 enable these individuals to obtain access to, or to  
                 provide, community services, individualized  
                 supports, and other forms of assistance.
               e.     Conduct, or cause to be conducted,  
                 investigations or public hearings to resolve  
                 disagreements between state agencies, or between  
                 state and regional or local agencies, or between  
                 persons with developmental disabilities and agencies  
                 receiving state funds. These investigations or  
                 public hearings shall be conducted at the discretion  
                 of the state council only after all other  
                 appropriate administrative procedures for appeal, as  
                 established in state and federal law, have been  
                 fully utilized. (WIC 4540)

             6)   Establishes 13 local area boards on developmental  
               disabilities to conduct the local advocacy, capacity  
               building, and systemic change activities required by  
               the federal DD Act, and attaches those boards to the  
               SCDD for administrative purposes only. Establishes  
               specific duties and defines the composition of the  
               area boards as follows: 

               a.     The number of voting members, based on the  
                 number of counties that the board represents the  
                 representation of various stakeholders to be  
                 included on each board.
               b.     The process by which the Governor receives  
                 input in order to make appointments to the area  
                 boards.





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               c.     That boards meet at least quarterly.
               d.     The authority to pursue legal, administrative,  
                 and other appropriate remedies to ensure the  
                 protection of the legal, civil, and service rights  
                 of persons who require services or who are receiving  
                 services in the area. State statute authorizes area  
                 boards to appoint a representative to assist the  
                 person in expressing his or her desires and in  
                 making decisions and advocating his or her needs,  
                 preferences, and choices, where the person with  
                 developmental disabilities has no legally authorized  
                 representative and the area board determines will  
                 not be properly protected or advocated without one  
                 being appointed.
               e.     The responsibility, when appropriate, to  
                 appoint a representative to advocate the rights and  
                 protect the interests of a person residing in a  
                 developmental center for whom community placement is  
                 proposed. (WIC 4543 et seq.) (Public Law 106-402 (42  
                 U.S.C. Sec. 15001)) (WIC 4620 (b))

          7)Requires that prior to recommending the establishment of  
            new geographic boundaries, the state council to hold a  
            public hearing within any existing area board geographic  
            area affected by the proposed change and then submit to  
            the Governor and the Legislature any recommended changes  
            in area board boundaries. (WIC 4545)

          8)Establishes a hiring process for staff of the SCDD,  
            including that the appointment of the SCDD executive  
            director and executive directors for each area board be  
            made by the SCDD Board Chairman with the concurrence of a  
            majority of the council. Requires the Governor to appoint  
            a deputy director for area board operations, as  
            specified. All other state council employees must be  
            appointed by the executive director, with the approval of  
            the state council. (WIC 4551)

          9)Permits DDS to contract with State Council for the  
            purpose of utilizing area boards to provide clients'  
            rights advocacy services to individuals with  
            developmental disabilities who reside in developmental  
            centers and state hospitals. States the intent of the  
            Legislature that area boards maintain local discretion in  
            the provision of these advocacy services and that the  





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            state council not direct the advocacy services provided  
            by area boards. (WIC 4433.5) 

           This bill:
           
          1)Rewrites statute related to the SCDD and area boards to  
            clarify that the area boards are not independent entities  
            but are regional offices of the SCDD, including:

                      Replaces references to area boards throughout  
                 the statute with references to the State Council.
                      Removes the statutory structure of the area  
                 boards, including their composition, required  
                 meeting frequency and duties.
                      Removes the responsibility of area boards to  
                 advocate on behalf of individuals with developmental  
                 disabilities, including the authority to pursue  
                 legal remedies and the authority to appoint legal  
                 representatives on behalf of consumers.
                      Removes the authority of the governor to  
                 appoint members of each area board.
                      In place of area boards, establishes state  
                 council regional advisory committees as of December  
                 31, 2014, requires the committees operate according  
                 to policies and procedures that may be established  
                 by the SCDD.

          1)Maintains the responsibility of the SCDD, as required in  
            federal law, by mirroring federal language, re-stating  
            the federal purpose for the council, and defining the  
            council's responsibilities with the scope of federal law,  
            including:

                      Serve as an advocate for individuals with  
                 developmental disabilities and, through council  
                 members, staff, consultants, and contractors and  
                 grantees, conduct advocacy, capacity building, and  
                 systemic change activities.
                      Develop and implement the state plan in  
                 accordance with requirements issued by the United  
                 States Secretary of Health and Human Services.
                      Monitor and evaluate implementation of the  
                 plan.
                      Serve as the agency responsible for planning  
                 for the provision of federal funds by completing  





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                 specified activities, including issuing grants.

          1)Underscores the autonomy of the State Council from the  
            Governor and Legislature, including: 

                      Revises the hiring practices of SCDD staff to  
                 require the council chairperson to appoint the  
                 executive director and the executive director to  
                 appoint all other staff, as specified.
                      Deletes the requirement that the Governor  
                 appoint members representing the area boards to the  
                 SCDD as well as 7 at large members and instead  
                 requires that 20 of the 31 voting members be  
                 non-agency members who reflect the socioeconomic,  
                 geographic, disability, racial and ethnic and  
                 language diversity of the state.
                      Grants the SCDD full authority on the use of  
                 its funds for implementation of the state plan, to  
                 the extent provided for in the federal DD Act. 
                      Requires the SCDD to be the sole entity  
                 responsible for conducting activities necessary to  
                 develop and implement the state plan on  
                 developmental disabilities in the various regions of  
                 the state and requires the state plan to be  
                 responsive to the needs of the state's diverse  
                 communities, as specified.

          1)Provides a list of activities that the board may do, in  
            its discretion, if the activities fit within the state  
            plan, instead of requiring specified activities,  
            including: 

                      Supporting and conducting advocacy activities  
                 on a local and statewide basis, including:  
                 self-advocacy, education of policymakers, supporting  
                 new approaches to serving individuals with  
                 developmental disabilities, supporting  
                 geographically based outreach activities, and  
                 others. 
                      Appointing an authorized representative for  
                 individuals to assist the person in expressing his  
                 or her desires and making decisions when the person  
                 has requested a representative be appointed.
                      Conducting public hearings and forums and the  
                 evaluation and issuance of public reports on the  





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                 programs identified in the state plan, as may be  
                 necessary to carry out the duties of the state  
                 council.
                      Reviewing and commenting on pertinent portions  
                 of the proposed plans and budgets of all state  
                 agencies, as defined.
                      Promoting systems change and implementation by  
                 reviewing the policies and practices of publicly  
                 funded agencies serving persons with developmental  
                 disabilities to determine if programs are meeting  
                 their obligations, under local, state, and federal  
                 laws. 

                                  FISCAL IMPACT  

          An analysis by the Assembly Committee on Appropriations  
          projected state costs for this bill would be negligible,  
          and that passage of this bill would preserve $6.5 million  
          in federal grant funding for the State Council on  
          Developmental Disabilities.

                            BACKGROUND AND DISCUSSION  

           Purpose of the bill: 
           
          According to the author, AB 1595 will make the changes in  
          state law necessary to come into compliance with the  
          federal DD Act, which is administered by the Administration  
          on Intellectual and Developmental Disabilities (AIDD). In  
          this way, the author writes, the bill will provide for the  
          continued funding and operation of the State Council on  
          Developmental Disabilities and its regional offices.

          On November 22, 2013, the AIDD limited the state Council's  
          access to its federal grant until California demonstrates  
          that it will come into compliance with the federal law that  
          funds the Council. This bill restructures the scope of the  
          SCDD to comply with federal law, removing state oversight  
          of many of its functions including the ability of the  
          Governor to appoint regional board directors and eliminates  
          prescriptive language in state statute, including requiring  
          a specified number of regional boards. 

           Developmental disabilities
           





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          A developmental disability is defined as a disability that  
          originates before an individual attains 18 years of age, is  
          expected to continue indefinitely, and constitutes a  
          substantial disability for that individual.  It includes  
          intellectual disabilities, cerebral palsy, epilepsy, and  
          autism spectrum disorders (ASD).  In California,  
          approximately 270,000 individuals with developmental  
          disabilities are overseen by the state Department of  
          Developmental Services with local services provided by 21  
          nonprofit regional centers across the state. Another 1,250  
          individuals live within California's four developmental  
          centers. 

           AIDD

           The federal AIDD is responsible for administering the DD  
          Act, which provides the federal authority for and funds the  
          Councils on Developmental Disabilities in all states. In  
          FFY 2011-12, federal funding to state councils was nearly  
          $75 million. According to a fact sheet on the AIDD's  
          website,<1> the 56 State Councils on Developmental  
          Disabilities are federally funded, self-governing  
          organizations charged with identifying the most pressing  
          needs of people with developmental disabilities in their  
          states or U.S. territories. Councils are committed to  
          advancing public policy and systems change that help  
          individuals gain more control over their lives by promoting  
          self-determination, integration, and inclusion, according  
          to the AIDD. 

          Federal law directs each state's Council members to be  
          appointed by a state's governor, and more than 60 percent  
          of a Council's membership to consist of individuals with  
          developmental disabilities or their family members.  
          Councils are directed to focus on empowering individuals  
          through activities that teach self-advocacy skills and  
          support self-determination by the creation of five-year  
          plans to address one or more of seven specified goals.  
          States must spend a minimum of 70 percent of their federal  
          funding to address their plan objectives. 

           State Council on Developmental Disabilities

          -------------------------
          <1>  
          http://www.acl.gov/Programs/AIDD/Programs/DDC/index.aspx




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           California's Lanterman Act creates the State Council on  
          Developmental Disabilities (SCDD) and area boards, governs  
          their operations and requires the Council to fund the area  
          boards with its federal grant. The Council is comprised of  
          31 members appointed by the Governor, including individuals  
          with disabilities, their families, federally funded  
          partners and state agencies. The SCDD's current state plan,  
          which spans 2011 to 2016, includes fifteen goals including  
          helping parents with young children learn to advocate for  
          services, providing training on new health care changes and  
          continued work on the SCDD's Employment First Initiative.  
          The SCDD and its area boards also administer grants to  
          further the goals of the state plan.

          In addition to the work on the state plan, the SCDD works  
          on other projects. One of those is a joint effort with DDS  
          and the Human Services Research Institute (HSRI), which is  
          part of a national effort. The SCDD's effort included  
          conducting thousands of quality assessment interviews with  
          consumers using the nationally recognized National Core  
          Indicators assessment tool. 

          Another project is the Employment First Initiative, which,  
          by state statute, requires the SCDD to create a committee  
          and issue an annual report. The 40-page 2013 report noted  
          that passage of an Employment First policy (AB 1041,  
          Chesbro, chapter 677, Statutes of 2013) "is the result of  
          seven years of work between the Council, stakeholders, the  
          Legislature, and Administration on ways to improve  
          employment outcomes for people with developmental  
          disabilities." 


          Area boards

          California's vast size, complexity, and diversity prompted  
          the legislature in 1969 to create Area Boards on  
          Developmental Disabilities, which act independently but  
          report key issues to the SCDD. The Legislature, in creating  
          the boards, found that legal, civil, and service rights of  
          persons with developmental disabilities cannot be  
          adequately guaranteed throughout the state, and the state  
          plan cannot be implemented, unless monitoring  
          responsibility is established on a regional basis through  
          area boards on developmental disabilities. 





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          Statute then went on to prescribe the number of voting  
          members for each board, based on the number of counties  
          represented, duration of terms, composition of the board  
          members, frequency of meetings, and directed which entities  
          should appoint members to the board, including five  
          appointed by the Governor.  This system has been in place  
          for decades.

          Concerns with California's structure

          Federal law requires the state's grant to be administered  
          by the SCDD free from interference from the state. While  
          the Governor is charged with appointing members of the  
          SCDD, the state's prescription of the number of area  
          boards, governor's appointment of those area board  
          directors and other prescriptive language in statute is at  
          odds with the federal requirements. Also at odds with the  
          federal AIDD are any statutorily required duties of the  
          State Council which are not provided under federal grant  
          funding, such as the Employment First Initiative. Although  
          the initiative is in line with the state's plan and the  
          federal goals, the requirement in state statute for the  
          SCDD to convene the committee and issue an annual report  
          has concerned the IADD. 

          In 1994 again in 2006 and in 2013, federal reviewers  
          expressed concern with inconsistencies in the Lanterman Act  
          and the federal DD Act, and provided recommendations to the  
          State Council to ensure compliance with the DD Act. 

          Specifically, in 1994, the AIDD issued a program  
          administrative review report that cited findings and  
          provided recommendations for improvement in three key  
          compliance areas:

                 Membership: there were multiple vacancies for more  
               than one year and key positions were not represented;  
               membership at meetings was poor, the Council was not  
               fulfilling its advocacy role, the by-laws needed  
               updating and the vice chair was chairing the Executive  
               committee, diluting the authority of the chair.
                 Hiring authority: The Lanterman Act's requirement  
               that the governor appoint two staff members and that  
               all other staff members be appointed by the executive  





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               director upon approval of the Council is in direct  
               conflict with the federal requirement that all hiring  
               and supervision be done by the executive director.  
               This was found to undermine the supervisory authority  
               of the Executive Director. 
                 Budget: The Lanterman Act's prescriptiveness over  
               program direction, allocation of the federal DD Act  
               Funds to area boards and other issues removes  
               authority of the Council to budget and control federal  
               funds. 

          The Council replied with a corrective action plan which,  
          among other fixes, required the executive director to  
                                                   interview all staff job candidates and make recommendations  
          to the Governor's office. It responded to IADD budget  
          concerns by noting that the Council does not feel  
          constrained by the requirement to fund area boards because  
          the Council has chosen to fully fund them. The Council also  
          responded to other points. 

          In 2001, the AIDD advised California that the Council was  
          out of compliance with the DD Act because of its statutory  
          requirement to fund the area boards. In a Nov. 21, 2001  
          letter from the state's Health and Human Services  
          secretary, the state assured AIDD it would remedy the issue  
          by August 1, 2002. In 2003, the Legislature merged the  
          Council and Area Boards into a single legal entity and  
          reclassified Area Board staff as regional office staff in  
          SB 1364 (Chesbro) Chapter 68, Statutes of 2004.

          However, in May 2006, the AIDD conducted a Monitoring and  
          Technical Assistance Review System (MTARS) to assess  
          whether the changes resolved the compliance issues. The  
          MTARS team found a number of concerns, including: 

                     Membership: Similar concerns about lengthy  
                 vacancies preventing the Council from performing its  
                 duties and renewed concerns about the Governor's  
                 Office having undue control over appointments.
                     Budget: AIDD remained concerned that statute  
                 and the most recent state budget appeared to require  
                 SCDD to provide annual funding to Area Boards,  
                 renewing concern that the Lanterman Act still was in  
                 conflict with the non-conflict provision of federal  
                 law. 





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                     Overlap between Protection and Advocacy and  
                 Area Board Activities: State statute directs the  
                 area boards to engage in legal, administrative and  
                 other appropriate remedies on behalf of consumers.  
                 The federally-granted Protection and Advocacy  
                 organization has the same charge and is engaged in  
                 bringing legal action. The AIDD required SCDD to  
                 submit ongoing updates to ensure the area boards  
                 were not overlapping in this area. 

          The SCDD acknowledged in a 2007 letter to AIDD that there  
          were conflicting provisions between the Lanterman Act and  
          federal DD Act and responded by creating an MTARS task  
          force. The task force was to include representatives from  
          the State Council, Governor's office and the legislature to  
          conduct a comprehensive review of historic issues and  
          develop strategies to resolve them. 

          In January 2013, the AIDD conducted a third site review to  
          assess whether historic issues had been resolved. The MTARS  
          team found the state remained out of compliance with  
          several requirements of the DD Act and that AIDD continues  
          to have significant concerns about the SCDD's autonomy from  
          state interference in its "federally mandated role as the  
          primary driver of statewide systems change, advocacy and  
          capacity building."<2> 

          In 2013, the AIDD issued a letter to the SCDD that the  
          Council had been given a high risk designation and would no  
          longer be receiving a federal grant, but instead would be  
          placed on a cost reimbursement basis. To obtain payments  
          for costs incurred, the Council is required to submit a  
          specified form and specified supporting documents. It also  
          required the SCDD to submit a corrective action plan in  
          February 2014 addressing how the state planned to fix all  
          findings from the three visits and to provide monthly  
          program progress reports on the plan beginning in March  
          2014. 

          In March 2014, a letter from the AIDD noted that the  
          October expenses had been approved but the AIDD was still  
          reviewing reimbursement requests from November, December  
          -------------------------
          <2> Administration on Intellectual and Developmental  
          Disabilities Monitoring and Technical Assistance Review  
          System report, January 14-17 site visit, page 15.




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          and January. "Given the depth of the Council's historic  
          compliance issues, we anticipate it taking time for the  
          Council to demonstrate adequate progress for ACL to make an  
          adequate determination about removing your grant from High  
          Risk status."



           Related legislation: 
           
          SB 1364 (Chesbro) Chapter 68, Statutes of 2004, made  
          changes to the term limits and composition of the SCDD  
          membership in order to comply with the federal DD Act.
          
          SB 1630 (Chesbro) Chapter 676, Statutes of 2002, was the  
          Legislature's response to guidance provided by the AIDD in  
          2001.  The bill brought the SCDD and the 13 area boards  
          into conformity with the federal requirement that federal  
          developmental disability grant money administered by the  
          SCDD through the area boards be under the "complete  
          control" of the SCDD.  


                                   PRIOR VOTES  

          Assembly Floor      73 - 0
          Assembly Appropriations  17 - 0
          Assembly Human Services    7 - 0

                                     COMMENTS

           This bill attempts to resolve conflicting issues between  
          the Lanterman Act and the federal DD Act, which has been  
          extensively documented by the AIDD and ultimately resulted  
          in a suspension of grant funding. 

          Language from this bill was written by the MTARS workgroup  
          at the Council, with technical assistance from the AIDD.  
          The Council, which is the bill's sponsor, states that with  
          changes made in the most recent amendments, will satisfy  
          the AIDD sufficiently to remove the Council's high risk  
          designation, and will restore access to the $6.5 million  
          federal grant to the Council. However, it is unclear  
          whether these amendments will go far enough to satisfy the  
          AIDD's concerns about state interference. Should the AIDD  





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          provide additional direction, this bill may need to be  
          amended in the next committee or on the floor.  
          Additionally, while this bill specifically preserves the  
          positions of SCDD staff members who were appointed by the  
          Governor, it is unclear how the state will transition those  
          positions to civil service classification, and may require  
          additional language in the next committee. 

                                    POSITIONS  

          Support:       Alameda County Developmental Disabilities  
          Council
                         Alpha Resource Center of Santa Barbara 
                         Arc of Ventura County
                         Area 4 Developmental Disabilities Board
                         Autism Society of Los Angeles
                         California State Council on Developmental  
                    Disabilities
                         California Supported Living Network
                         Developmental Disabilities Area Board 3
                         Developmental Disabilities Board Area 5
                         Family Resource Centers Network of  
                    California
                         San Diego Regional Center
                         San Diego Unified School District
                         State Council on Developmental Disabilities  
                    Area Board 
                         State Council on Developmental Disabilities  
                    Area Board 2
                         State Council on Developmental Disabilities  
                    Area Board 9
                         State Council on Developmental Disabilities  
                    Area Board XII
                         State Council on Developmental Disabilities  
                    Area Board XIII
                         United Cerebral Palsy of San Luis Obispo 
                         VTC Enterprises 
                         3 individuals


          Oppose:   None received.



                                   -- END --





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