BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Kevin de Le�n, Chair
SB 1160 (Beall) - Employment.
Amended: April 24, 2014 Policy Vote: Human Services 4-0
Urgency: No Mandate: No
Hearing Date: May 23, 2014 Consultant: Brendan McCarthy
SUSPENSE FILE. AS AMENDED.
Bill Summary: SB 1160 would decrease the minimum number of
participating regional center consumers required for group
employment services from three consumers to two consumers. The
bill would extend the length of time consumers would be eligible
for individualized employment support services. The bill would
establish a 5 percent bid preference in state contracting for
businesses that employ developmentally disabled individuals.
Fiscal Impact (as approved on May 23, 2014):
Unknown impact on the utilization of group supported
employment services (General Fund and federal funds). By
reducing the minimum number of consumers participating in a
group employment services, the bill may increase demand for
those services by making it easier to set up two-consumer
groups. Additionally, by allowing individualized services
potentially continue over a longer period of time (in some
cases indefinitely) the bill could increase demand for those
services. The extent of those impacts are unknown.
On the other hand, consumers who cannot be served by group
services are already eligible for individualized services,
so there may not actually be much unmet demand for these
services. In addition, providing supported employment
services is less expensive than other services that
consumers would be eligible for in the absence of
competitive employment. For example, the average annual cost
to provide supported employment services is about $4,000
whereas the average annual cost to provide a place in a work
activity program is about $5,300 and the average annual cost
for day programs is about $11,700. To the extent that
additional supported employment services allow consumers to
remain in competitive employment and not access more
expensive services, those savings will likely offset some or
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all of the costs to provide additional services under the
bill.
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 the Department of Developmental Services 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 for each eligible consumer; and either provide or
obtain from generic agencies appropriate services for each
consumer in accordance with the Individual Program Plan.
Regional centers provide a variety of employment-related
services and supports to consumers. For example, work activity
programs (sometimes referred to as sheltered workshops) provide
opportunities for consumers to work in groups in a structured
environment under the supervision of a regional center vendor.
Consumers may also make use of supported employment services,
which are designed to assist consumers in achieving employment
in a traditional workplace. Typically, supported employment
services include various types of job coaching to assist
consumers in performing their duties and working with coworkers,
supervisors, and the public. Supported employment services are
available in groups of three to eight consumers or individually,
depending on the specific consumer's needs. Individualized
supported employment services must decrease over time until
stabilization of the consumer's needs is achieved.
Proposed Law: SB 1160 would decrease the minimum number of
participating consumers required for group employment services
from three consumers to two.
The bill would extend the availability of individual supported
employment services, by modifying current law to require such
services to decline over time consistent with the consumer's
needs with the goal of achieving stabilization, when possible.
The bill would establish a 5 percent bid preference in state
contracting for businesses when at least ten percent of the
workers providing services under the contract are
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developmentally disabled.
Related Legislation:
AB 1626 (Maienschein) would increase the rates paid for
supported employment services. That bill is on the Assembly
Appropriations Committee's Suspense File.
SB 577 (Pavley) would establish "community-based
prevocational services" as a new type of supported
employment service. That bill is pending in the Assembly
Human Services Committee.
AB 1041 (Chesbro, Statutes of 2013) established a state
employment first policy.
Staff Comments: In recent years, the state has negotiated a Home
and Community-Based Services for the Developmentally Disabled
Waiver (the "Waiver") which allows the Department to receive
federal matching funds for services provided to regional center
consumers. The purpose of this Waiver is to use state and
federal funds to allow consumers to remain in the community,
rather than being institutionalized. In some cases, the state
could use such funding to pay for a portion of the costs to
provide supported employment services under the bill.
Committee amendments: delete the bid preference requirement.