BILL ANALYSIS �
SB 1160
Page 1
Date of Hearing: August 6, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 1160 (Beall) - As Amended: August 4, 2014
Policy Committee: Human
ServicesVote:7 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill adjusts the allowable job coach-to-consumer ratio for
group supported employment services provided to individuals with
developmental disabilities. Specifically, this bill:
1)Reduces the minimum job coach-to-consumer ratio from 1:3 to
1:2 and makes a correlating change to the minimum number of
regional center consumers required to participate in group
supported employment from three to two.
2)Authorizes the Department of Developmental Services (DDS) to
approve group services at the new job coach-to-consumer ratios
and adds criteria for DDS to consider when determining the
appropriateness of the job coach-to-consumer ratio for a new
or modified group.
3)Redefines individualized services to mean job coaching and
other supported employment services that decrease over time,
consistent with the consumer's individual program plan and
abilities, with the goal of achieving stabilization, when
possible.
4)Contains chaptering out amendments to resolve conflicts with
SB 577 (Pavley).
FISCAL EFFECT
1)Ongoing, unknown but potentially significant, costs (GF and
federal funds) to DDS for additional job coaches to the extent
that existing employment groups split into smaller groups.
There are approximately 1,650 total supported employment
SB 1160
Page 2
groups serving 5,160 consumers. The bulk of those groups,
1,406, are three-person groups serving 4,218 consumers. If
50% shifted to two-person groups, 351 new groups would be
formed with a corresponding increase in annual costs for job
coaches and other supports of approximately $5 million.
2)Unknown impact on the utilization of group supported
employment services (GF and federal funds). By reducing the
minimum number of consumers required for group employment
services, this bill may increase demand for those services by
making it easier to set up two-consumer groups. Additionally,
by allowing individualized services to potentially continue
over a longer period of time (in some cases indefinitely) this
bill could increase demand for those services.
Costs associated with an increase in the use of supported
employment services will likely be a cost shift from other
services currently being used by eligible consumers. In most,
if not all, cases the foregone services are more expensive to
provide (average annual cost of supported employment services
is approximately $4,000 per consumer, work activity programs,
$5,300, and day programs, $11,700), thus any costs associated
with providing additional group supported employment services
will be largely offset by a corresponding reduction in costs
of other services and will likely result in an overall cost
savings. The extent of this impact is unknown.
3)Additionally, the state has negotiated a Home and
Community-Based Services for the Developmentally Disabled
Waiver (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 this bill.
COMMENTS
1)Purpose . According to the author, the unemployment rate for
people with intellectual and developmental disabilities (I/DD)
is nearly 80%. Workers with disabilities need assistance in
preparing for a job, finding that job, getting hired and
retaining that job over time. In spite of the desires of many
people with I/DD to work, many barriers exist that make it
SB 1160
Page 3
difficult. The author maintains since the law governing
supported employment was first created, the minimum group size
of at least three consumers has limited the ability of many
small businesses to employ persons with I/DD and has reduced
the degree of integration of workers into their work
environment. In addition, many workers improve in their work
with experience over time. But the group of three has been
difficult to maintain because employers find that two workers
can now do what three were previously required to do. The
author notes without the authority for groups of two, the
group has had to be disbanded with all workers losing their
jobs.
2)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.
Regional centers provide a variety of employment-related
services and supports to consumers, including work activity
programs (sometimes referred to as sheltered workshops) which
allow for consumers to work in groups in a structured
environment under the supervision of a regional center vendor,
and supported employment services, which 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.
3)Recent Amendments . At the request of DDS, the author added
criteria for DDS to consider when determining the
appropriateness of the job coach-to-consumer ratio for a new
or modified employment group. Based on past experience, DDS
anticipates an influx of requests to modify existing groups
from 1:3 to 1:2 and notes the costs associated with the
changes. Accordingly, DDS remains concerned that cost
effectiveness is not among the criteria to consider when
SB 1160
Page 4
approving the new groups.
4)Related Legislation .
a) AB 1626 (Maienschein) would increase the rates paid
providers of individualized and group-supported employment
services. This bill is pending on the Senate Appropriations
Committee's Suspense File.
b) SB 577 (Pavley) 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. This bill is before this committee today.
c) AB 1041 (Chesbro, Chapter 677, Statutes of 2013),
created the Employment First Policy and requires regional
centers to provide consumers age 16 and older with
information about employment, options for integrated
competitive employment, post-secondary education options,
and other information.
Analysis Prepared by : Jennifer Swenson / APPR. / (916)
319-2081