BILL ANALYSIS �
SB 577
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Date of Hearing: August 6, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 577 (Pavley) - As Amended: June 25, 2014
Policy Committee: Human
ServicesVote:7 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the Department of Developmental Services
(DDS) to conduct a four-year demonstration project to determine
whether community-based vocational development services increase
integrated competitive employment outcomes and reduce purchase
of service costs for working age adults. Specifically, this
bill:
1)Requires DDS to select up to five volunteer regional centers
that reflect the state's geographic diversity to participate
in the demonstration project, and requires DDS to review the
effectiveness of the project and make determinations regarding
employment outcomes, cost impacts, and whether the project may
be implemented on a statewide basis.
2)Requires DDS to report to the Legislature on its
determinations regarding the project, and provides a sunset
date on the demonstration project of January 1, 2025.
3)Requires implementation of the demonstration project only if
federal money is secured.
4)Defines "community-based vocational development services," and
requires the development of a community-based vocational
development services plan, if such services are deemed
necessary to help a person with a developmental disability
achieve a supported employment outcome.
5)Provides that a consumer's hours of participation in
community-based vocational development services may be
provided in lieu of other community-based day services for up
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to two years and may be authorized beyond two years, but not
to exceed a total of four years, if the consumer's individual
program plan (IPP) planning team determines and documents the
consumer is making significant progress.
6)Establishes a new $40 per hour rate for the provision of
services identified in a consumer's community-based vocational
development services plan for a maximum of 75 hours per
calendar quarter.
7)Requires the Department of Developmental Services (DDS) to
secure federal Medicaid funding prior to the implementation of
community-based vocational development services.
FISCAL EFFECT
1)Minor and absorbable costs to DDS to administer and evaluate
the project.
2)If community-based vocational development services are
implemented statewide at some future date, unknown, potential
short-term costs ranging from $0 to $9,400 (GF and federal
funds) per consumer to the extent that those who use
community-based vocational development services at the new
$40/hr rate will be using less of some other less costly
service. Exact costs will depend on how many consumers use the
new services and what services they were previously using.
3)In the long term, if the intended outcomes of enhancing
employment opportunities and reducing purchase of service
costs are achieved, there will be cost savings over time
because more consumers will move from the more expensive day
programs into the less expensive supported employment
programs.
COMMENTS
1)Purpose . According to the author, in California, the
employment rates for people with autism and other
developmental disabilities are appalling. According to the
2010-2011 Department of Developmental Services report on
employment and day services, between 2007 and 2011, as the
number of individuals in regional centers has risen, the
percentage of working age regional center clients that are
employed has steadily decreased to 12.5%. The 2011-12 National
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Core Indicators survey of 5,532 regional center clients
indicated that less than 5% of those surveyed had a job in an
integrated competitive employment setting. The author
maintains this bill will help increase opportunities for
individuals with autism and other developmental disabilities
to gain integrated, competitive, community employment and
career advancement by helping individuals develop general,
non-job-task-specific strengths and skills.
2)Background . The Department of Developmental Services is
responsible for coordinating services and supports for about
250,000 people with developmental disabilities. The vast
majority of these people are served by 21 regional centers,
which are non-profit entities that contract with the state.
The regional centers, in turn, contract with vendors to
provide direct services to the developmentally disabled,
including employment services programs and providers. In
these programs consumers are placed in jobs according to their
individual skills, needs and choices, and they are provided
support services on an individual or group basis.
Work Activity Programs (WAPs) are employment services programs
in a sheltered work environment for consumers who have
acquired basic vocational and independent living skills. All
WAP work is paid at a daily per capita rate based on
productivity. Alternatively, Supported Employment Programs
(SEPs) are community-based rehabilitation programs that focus
on helping consumers obtain, retain or maintain employment in
integrated settings. SEPs often involve job coaches that
provide on-the-job services and training, and wages paid
directly to the consumer by the employer.
Currently there are approximately 130,000 regional center
consumers of working age. In 2010-11, approximately 4,600 were
in supported employment, 10,600 were in work activity
programs, while another 54,000 were in day programs.
If it is determined that some form of supported employment
would best meet the employment needs of a consumer, a regional
center will refer the consumer to the Department of
Rehabilitation (DOR), which is responsible for increasing
employment opportunities in the community and providing
time-limited employment services to individuals with
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disabilities. If a regional center consumer needs long-term
support to continue in their place of employment, the
responsibility shifts back to DDS.
3)Related Legislation .
a) AB 1041 (Chesbro) Chapter 677, Statutes of 2013,
established the "Employment First Policy" for Californians
with developmental disabilities, which includes a
requirement that regional centers provide consumers 16
years of age or older information about the Employment
First Policy, options for integrated competitive
employment, and services and supports, including
postsecondary education, that are available to enable the
consumer to transition from school to work, and to achieve
the outcomes of obtaining and maintaining integrated
competitive employment.
b) AB 1626 (Maienschein) 2014, increases the rates and fees
paid to supported employment services providers for
regional center consumers. This bill is pending on the
Senate Appropriations Committee's Suspense File.
c) SB 1160 (Beall) 2014, reduces the minimum job
coach-to-consumer ratio for supported employment services
and ensures that support for consumers who receive
individualized job coaching services only decreases over
time with the goal of achieving stabilization if such a
goal is appropriate and consistent with a consumer's IPP.
This bill is before this committee today.
1)Chaptering Out and Technical Amendments Needed . Both this
bill and SB 1160 (Beall) amend Section 4851 of the Welfare and
Institutions Code. The author may wish to consider amendments
to avoid chaptering out conflicts. In addition, the author
may wish to clarify that the $40 per hour rate applies to the
demonstration project. Staff suggests the following:
On page 9, line 35, after "services" insert:
for purposes of Section 4850.3,
Analysis Prepared by : Jennifer Swenson / APPR. / (916)
319-2081
SB 577
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