HomeMy WebLinkAbout2016-03-08 - AGENDA REPORTS - ASSEMBLY BILL 1565 (2)0
Agenda Item: 3
CITY OF SANTA CLARITA
Q) AGENDA REPORT
CONSENT CALENDAR
i,
CITY MANAGER APPROVAL: 1 j=�
DATE: March 8, 2016
SUBJECT: STATE LEGISLATION: ASSEMBLY BILL 1565 (LACKEY) AND
ASSEMBLY BILLx2 1 (THURMOND)
DEPARTMENT: City Manager's Office
PRESENTER: Matthew Levesque
RECOMMENDED ACTION
City Council adopt the City Council Legislative Committee's recommendation to support
Assembly Bill 1565 (Lackey) and Assembly Billx2 1 (Thurmond) and transmit position
statements to Assembly Member Lackey, Assembly Member Thurmond, Santa Clarita's state
legislative delegation, appropriate legislative committees, Governor Brown, and the League of
California Cities.
BACKGROUND
Assembly Billx2 1 (ABx2 1) was introduced during the Second Extraordinary Session on Public
Health and Developmental Services in the State Legislature on July 2, 2015, and amended into
its current form on February 22, 2016, by Assembly Member Tony Thurmond (D -15 -
Richmond). The bill contains many of the components of Assembly Bill 1565 by Assembly
Member Tom Lackey (R -36 -Palmdale), which the City Council Legislative Committee has
recommended a position of support to the full City Council. ABx2 1 seeks to expand upon the
level and variety of services offered for individuals with developmental disabilities.
Existing state policies related to developmental services are largely shaped by the Lanterman
Developmental Disabilities Services Act (Statue 1977 Chapter 1252), which requires the State
Department of Developmental Services (DDS) to contract with regional centers to provide
services and support to individuals with developmental disabilities. Under existing law, regional
centers purchase the services necessary for individuals with developmental disabilities through
approved service providers or arrange for those services through other publicly funded agencies.
The Lanterman Act also establishes specified rates and wages to be paid to certain service
providers and the rates to be paid for certain developmental services, which are determined by
either the DDS or between regional centers and service providers.
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If enacted, ABx2 1 would implement targeted rate increases to the community-based
developmental services system within DDS by $287 million effective July 1, 2016. More
specifically, the bill would appropriate increased funding toward rates and wages for
developmental services providers and offer financial incentives for integrated employment
opportunities for individuals with disabilities to encourage placement and retention in the
workforce. DDS would also be required to complete a rate study to address the sustainability and
quality of community-based services for individuals with disabilities by March 1, 2019.
ABx2 1 differs from AB 1565 in terms of the total funding increase the bill proposes for
developmental services funding. ABx2 1 proposes between 5 percent and 7.5 percent increases
to various elements of developmental services funding, whereas AB 1565 proposes a 10 percent
across the board increase.
The City Council Legislative Committee met on February 16, 2016, and recommends that the
City Council adopt a "support" position on AB 1565. After the Legislative Committee meeting
Assembly Member Lackey's office informed City staff that a substantial number of provisions of
AB 1565 have been amended into ABx2 1. On February 29, 2016, ABx2 1 was passed by the
State Assembly 78-0 (supported by Assembly Members Tom Lackey and Scott Wilk) and Senate
40-0 (supported by Senators Fran Pavley and Sharon Runner) and was sent to Governor Brown
for signature.
ALTERNATIVE ACTION
1. Adopt an "oppose" position on ABx2 1
2. Take no position on ABx2 1
3. Refer ABx2 1 back to the Legislative Committee
4. Other direction as determined by the City Council
FISCAL IMPACT
No additional resources, beyond those contained within the adopted FY 2015/16 City budget, are
required for implementation of the recommended action.
ATTACHMENTS
Assembly Bill 1565
Assembly Billx2 1
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CALIFORNIA LEGISLATURE -2015-16 REGULAR SESSION
ASSEMBLY BILL No. 1565
Introduced by Assembly Member Lackey
(Principal coauthors: Assembly Members Baker, Chavez, Grove,
Linder, Patterson, and Wilk)
(Principal coauthor: Senator Stone)
(Coauthors: Assembly Members Achadjian, Bigelow, Maienschein,
and Mayes)
January 4, 2016
An act to amend Sections 4629.7, 4681.1, 4681.6, 4689.8, 4691.9,
and 4860 of, and to add Sections 4519.8, 4681.2, 4690.7, 4793, and
4794 to, the Welfare and Institutions Code, relating to developmental
services, and declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 1565, as introduced, Lackey. Developmental services: funding.
The Lanterman Developmental Disabilities Services Act requires the
State Department of Developmental Services to contract with regional
centers to provide services and supports to individuals with
developmental disabilities. Under existing law, the regional centers
purchase needed services for individuals with developmental disabilities
through approved service providers or arrange for those services through
other publicly funded agencies.
This bill would require the department to submit a plan to the
Legislature by August 1, 2017, to ensure the sustainability, quality, and
transparency of community-based services for individuals with
developmental disabilities. The bill would require the department to
regularly consult with stakeholders in developing the plan and would
require the plan to address specified topics, including, among others,
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recommendations for a comprehensive approach to funding regional
center operations in a sustainable and transparent manner that enables
regional centers to deliver high-quality services to consumers.
Existing law requires that contracts or agreements between regional
centers and service providers in which the rates between the regional
center and the service provider are determined through negotiations to
ensure that not more than 15% of regional center funds be spent on
administrative costs, as described.
This bill would instead provide that the percentage of the funds that
may be spent on administrative costs varies depending on the total
value, annually, of the payments received by a service provider from
all regional centers.
Existing law establishes specified rates to be paid to certain service
providers and the rates to be paid for certain developmental services.
Existing law requires that rates to be paid to other developmental service
providers either be set by the department or negotiated between the
regional center and the service provider. Existing law prohibits certain
provider rate increases, but authorizes increases to those rates as
necessary to adjust employee wages to meet the state minimum wage
law.
This bill would increase the rates established by existing law, as
specified, and would require an increase to the rates set by the
department and the rates negotiated between regional centers and service
providers, as specified. The bill would also require the department,
when setting rates for community care facilities serving people with
developmental disabilities, to ensure that the rates permit the viability
of those facilities by establishing different rates for each facility size,
as determined by the number of beds available, that reflect reasonable
differences in the cost structure of facilities with differing numbers of
beds. The bill would require the department to adopt emergency
regulations implementing that provision.
Existing law requires each regional center to submit, on or before
August 1 of each year, to the department and the State Council on
Developmental Disabilities a program budget plan for the subsequent
budget year. Existing law provides that, to the extent feasible, all funds
appropriated for developmental disabilities programs be allocated to
those programs by August 1 of each year and designates the department
as the agency responsible for the processing, audit, and payment of
funds made available to regional centers.
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This bill would require the department to increase the funding paid
to a regional center for the regional center's operating budget, beginning
July 1, 2016, by 10% above the amount the regional center otherwise
would have received under the department's core staffing formula, and,
beginning July 1, 2017, by 10% above the amount the regional center
otherwise would have received under the department's core staffing
formula, plus a percentage equal to the percentage of any increase in
the California Consumer Price Index since July 1, 2016. The bill would
also require the department to increase the funding provided to a regional
center to enable the regional center and the regional center's
purchase -of -service vendors to fund certain costs related to minimum
wage requirements.
This bill would declare that it is to take effect immediately as an
urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State -mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. (a) The Legislature finds and declares all of the
2 following:
3 (1) California's vision to promote fulfilling lives for persons
4 with developmental disabilities launched in 1969 with the passage
5 of the Lanterman Developmental Disabilities Services Act,
6 authored by Assembly Member Frank Lanterman and signed by
7 Governor Ronald Reagan. However, the Lanterman Act's vision
8 is now threatened by neglect of the community service system and
9 wasteful spending on outdated state institutions.
10 (2) The current funding system for regional center operations
11 and for community-based services is inadequate and outdated. The
12 funding currently provided has not kept pace with the cost of
13 delivering high-quality services. Funding formulas and ratesetting
14 methods are archaic and ill-suited to promote an effective and
15 efficient community system that delivers high-quality services to
16 consumers.
17 (3) The result of inadequate funding for community services
18 and onerous requirements on providers can be seen in the decline
19 of the number of vendors serving the community. As documented
20 in the January 2015 Fact Book issued by the State Department of
21 Developmental Services, the number of vendors declined by 30
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1 percent from 2009-10 to 2013-14, inclusive, despite an increase
2 of 12 percent in the number of consumers served in the community.
3 The Association of Regional Center Agencies also reports that 435
4 licensed residential homes and 57 day and work programs have
5 closed since July 2011.
6 (4) California must recommit itself to vibrant and sustainable
7 community services that maximize opportunities for persons with
8 developmental disabilities to thrive in their own neighborhoods.
9 (5) It is imperative that the Legislature take action to ensure the
10 viability of the community service system by paying sustainable
11 reimbursement rates, streamlining requirements for community
12 service providers, and fairly funding the regional center system to
13 administer services.
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(b) Accordingly, it is the intent of the Legislature to enact
short-term increases in reimbursement rates for community services
providers while undertaking a stakeholder process with specific
deadlines to develop and implement long-term reforms to
accomplish these goals. It is also the intent of the Legislature to
establish requirements for greater regional center transparency
with respect to rates paid to vendors and the amount and type of
services provided to consumers across the spectrum of regional
center services. It is further the intent of the Legislature that the
provisions added by this act only remain in place until a revised,
comprehensive rate system that provides adequate and transparent
funding for community-based services, including supported
employment, is implemented.
SEC. 2. Section 4519.8 is added to the Welfare and Institutions
Code, immediately following Section 4519.7, to read:
4519.8. (a) The department shall submit a plan to the
Legislature to ensure the sustainability, quality, and transparency
of community-based services for individuals with developmental
disabilities. The department shall regularly consult with
stakeholders in developing the plan. The department shall submit
the plan to the Legislature by August 1, 2017. The plan shall
include, but not be limited to, all of the following:
(1) An assessment of the effectiveness of the methods used to
pay each category of community service provider. This assessment
shall include consideration of the following factors for each
category of service provider:
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1 (A) Whether the current method of ratesetting for a service
2 category is ensuring an adequate supply of providers in that
3 category, including, but not limited to, whether there is a sufficient
4 supply of providers to enable a consumer to have a choice of
5 providers.
6 (B) A comparison of the likely fiscal effects of using the
7 following methodologies for each service provider category:
8 (i) Negotiated rates, which may be limited to regional medians
9 or other limits.
10 (ii) Rates established through regulations on either a statewide
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or regionally adjusted basis.
(iii) Alternate rate methodologies that may use combinations
of negotiated or regulatory rates on either a statewide or regionally
adjusted basis.
(2) An evaluation of the appropriateness of the number and type
of service codes for regional center services, including, but not
limited to, recommendations for making service codes more
reflective of the level and type of services provided and for
reducing the number and type of services that are billed with a
service code of "Miscellaneous."
(3) Recommendations for a comprehensive purchase -of -services
rate structure that would ensure a sustainable, high-quality, and
transparent community services system.
(4) An assessment of the adequacy of the number and locations
of regional centers for providing timely service to consumers. This
assessment shall consider, at a minimum, all of the following
factors:
(A) The waiting time for consumers to obtain appointments
with regional center personnel.
(B) The distance consumers must travel for in-person meetings
with regional center personnel.
(C) The type and frequency of interactions between consumers
and regional center personnel that can be accommodated remotely
through electronic means, including, but not limited to, electronic
mail, video conferencing, or telehealth.
(D) Whether the number of consumers and the geographic size
of the catchment area served by each regional center are reasonable
for delivering high-quality service to consumers and their families.
(E) Whether additional regional centers or regional center
locations are necessary to address any identified deficiencies in
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1 access to regional center personnel, or whether technology -enabled
2 means of access or other solutions are warranted.
3 (5) Recommendations for a comprehensive approach to funding
4 regional center operations in a sustainable and transparent manner
5 that enables regional centers to deliver high-quality services to
6 their consumers, including, but not limited to, recommendations
7 and estimated costs for increasing the number of regional centers
8 or altering catchment areas.
9 (b) The report submitted to the Legislature pursuant to
10 subdivision (a) shall be submitted in compliance with Section 9795
11 of the Government Code.
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SEC. 3. Section 4629.7 of the Welfare and Institutions Code
is amended to read:
4629.7. (a) Notwithstanding any other-previ4on--e€ law, all
regional center contracts or agreements with service providers in
which rates are determined through negotiations between the
regional center and the service provider shall expressly require
that not more than
admit-=-`__`:_ _ eosts. For the amount of funds specified in
paragraphs (1) to (3), inclusive, be spent on administrative costs.
(1) For service providers who receive payments from one or
more regional centers totaling two million dollars ($2,000,000)
or more annually from those regional centers, 15 percent of
regional center funds.
(2) For service providers who receive payments from one or
more regional centers totaling less than two million dollars
($2,000,000), but more than five hundred thousand dollars
($500,000), annually from those regional centers, 20 percent of
regional center funds.
(3) For service providers who receive payments from one or
more regional centers totaling five hundred thousand dollars
($500, 000) or less annually from those regional centers, 25 percent
of regional center funds.
(b) For purposes of this subdivision, direct service expenditures
are those costs immediately associated with the services to
consumers being offered by the provider. Funds spent on direct
services shall not include any administrative costs. Administrative
costs include, but are not limited to, any of the following:
(1) Salaries, wages, and employee benefits for managerial
personnel whose primary purpose is the administrative management
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1 of the entity, including, but not limited to, directors and chief
2 executive officers.
3 (2) Salaries, wages, and benefits of employees who perform
4 administrative functions, including, but not limited to, payroll
5 management, personnel functions, accounting, budgeting, and
6 facility management.
7 (3) Facility and occupancy costs, directly associated with
8 administrative functions.
9 (4) Maintenance and repair.
10 (5) Data processing and computer support services.
11 (6) Contract and procurement activities, except those provided
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by a direct service employee.
(7) Training directly associated with administrative functions.
(8) Travel directly associated with administrative functions.
(9) Licenses directly associated with administrative functions.
(10) Taxes.
(11) Interest.
(12) Property insurance.
(13) Personal liability insurance directly associated with
administrative functions.
(14) Depreciation.
(15) General expenses, including, but not limited to,
communication costs and supplies directly associated with
administrative functions.
(c) Notwithstanding any other-previ4on- € law, all contracts
between the department and the regional centers shall require that
not more than 15 percent of all funds appropriated through the
regional center's operations budget shall be spent on administrative
costs. For purposes of this subdivision, "direct services" includes,
but is not limited to, service coordination, assessment and
diagnosis, monitoring of consumer services, quality assurance,
and clinical services. Funds spent on direct services shall not
include any administrative costs. For purposes of this subdivision,
administrative costs include, but are not limited to, any of the
following:
(1) Salaries, wages, and employee benefits for managerial
personnel whose primary purpose is the administrative management
of the regional center, including, but not limited to, directors and
chief executive officers.
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1 (2) Salaries, wages, and benefits of employees who perform
2 administrative functions, including, but not limited to, payroll
3 management, personnel functions, accounting, budgeting, auditing,
4 and facility management.
5 (3) Facility and occupancy costs, directly associated with
6 administrative functions.
7 (4) Maintenance and repair.
8 (5) Data processing and computer support services.
9 (6) Contract and procurement activities, except those performed
10 by direct service employees.
11 (7) Training directly associated with administrative functions.
12 (8) Travel directly associated with administrative functions.
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(9) Licenses directly associated with administrative functions.
(10) Taxes.
(11) Interest.
(12) Property insurance.
(13) Personal liability insurance directly associated with
administrative functions.
(14) Depreciation.
(15) General expenses, including, but not limited to,
communication costs and supplies directly associated with
administrative functions.
(d) Consistent with-s�rr{fr, subdivisions (a) and (b),
service providers and contractors, upon request, shall provide
regional centers with access to any books, documents, papers,
computerized data, source documents, consumer records, or other
records pertaining to the service providers' and contractors'
negotiated rates.
SEC. 4. Section 4681.1 of the Welfare and Institutions Code
is amended to read:
4681.1. (a) The department shall adopt regulations that specify
rates for community care facilities serving persons with
developmental disabilities. The implementation of the regulations
shall be contingent upon an appropriation in the annual Budget
Act for this purpose. These rates shall be calculated on the basis
of a cost model designed by the department that ensures that
aggregate facility payments support the provision of services to
each person in accordance with his or her individual program plan
and applicable program requirements. The cost model shall reflect
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1 cost elements that shall include, but are not limited to, all of the
2 following:
3 (1) "Basic living needs" include utilities, furnishings, food,
4 supplies, incidental transportation, housekeeping, personal care
5 items, and other items necessary to ensure a quality environment
6 for persons with developmental disabilities. The amount identified
7 for the basic living needs element of the rate shall be calculated
8 as the average projected cost of these items in an economically
9 and efficiently operated community care facility.
10 (2) "Direct care" includes salaries, wages, benefits, and other
11 expenses necessary to supervise or support the person's functioning
12 in the areas of self-care and daily living skills, physical
13 coordination mobility, and behavioral self-control, choice making,
14 and integration. The amount identified for direct care shall be
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calculated as the average projected cost of providing the level of
service required to meet each person's functional needs in an
economically and efficiently operated community care facility.
The direct care portion of the rate shall reflect specific service
levels defined by the department on the basis of relative resident
need and the individual program plan.
(3) "Special services" include specialized training, treatment,
supervision, or other services that a person's individual program
plan requires to be provided by the residential facility in addition
to the direct care provided under paragraph (2). The amount
identified for special services shall be calculated for each individual
based on the additional services specified in the person's individual
program plan and the prevailing rates paid for similar services in
the area The special services portion of the rate shall reflect a
negotiated agreement between the facility and the regional center
in accordance with Section 4648.
(4) "Indirect costs" include managerial personnel, facility
operation, maintenance and repair, other nondirect care, employee
benefits, contracts, training, travel, licenses, taxes, interest,
insurance, depreciation, and general administrative expenses. The
amount identified for indirect costs shall be calculated as the
average projected cost for these expenses in an economically and
efficiently operated community care facility.
(5) "Property costs" include mortgages, leases, rent, taxes,
capital or leasehold improvements, depreciation, and other
expenses related to the physical structure. The amount identified
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1 for property costs shall be based on the fair rental value of a model
2 facility that is adequately designed, constructed, and maintained
3 to meet the needs of persons with developmental disabilities. The
4 amount identified for property costs shall be calculated as the
5 average projected fair rental value of an economically and
6 efficiently operated community care facility.
7 (b) The cost model shall take into account factors that include,
8 but are not limited to, all of the following:
9 (1) Facility size, as defined by the department on the basis of
10 the number of facility beds licensed by the State Department of
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Social Services and vendorized by the regional center.
(2) Specific geographic areas, as defined by the department on
the basis of cost of living and other pertinent economic indicators.
(3) Common levels of direct care, as defined by the department
on the basis of services specific to an identifiable group of persons
as determined through the individual program plan.
(4) Positive outcomes, as defined by the department on the basis
of increased integration, independence, and productivity at the
aggregate facility and individual consumer level.
(5) Owner -operated and staff -operated reimbursement, which
shall not differ for facilities that are required to comply with the
same program requirements.
(c) The rates established for individual community care facilities
serving persons with developmental disabilities shall reflect all of
the model cost elements and rate development factors described
in this section. The cost model design shall include a process for
updating the cost model elements that address variables, including,
but not limited to, all of the following:
(1) Economic trends in California.
(2) New state or federal program requirements.
(3) Changes in the state or federal minimum wage.
(4) Increases in fees, taxes, or other business costs.
(5) Increases in federal supplemental security income/state
supplementary program for the aged, blind, and disabled payments.
(d) Rates established for persons with developmental disabilities
who are also dually diagnosed with a mental health disorder may
be fixed at a higher rate. The department shall work with the State
Department of Health Care Services to establish criteria upon
which higher rates may be fixed pursuant to this subdivision. The
higher rate for persons with developmental disabilities who are
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1 also dually diagnosed with a mental health disorder may be paid
2 when requested by the director of the regional center and approved
3 by the Director of Developmental Services.
4 (e) By January 1, 2001, the department shall prepare proposed
5 regulations to implement the changes outlined in this section. The
6 department may use a private firm to assist in the development of
7 these changes and shall confer with consumers, providers, and
8 other interested parties concerning the proposed regulations. By
9 May 15, 2001, and each year thereafter, the department shall
10 provide the Legislature with annual community care facility rates
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including any draft amendments to the regulations as required. By
July 1, 2001, and each year thereafter, contingent upon an
appropriation in the annual Budget Act for this purpose, the
department shall adopt emergency regulations that establish the
annual rates for community care facilities serving persons with
developmental disabilities for each fiscal year.
(f) During the first year of operation under the revised rate
model, individual facilities shall be held harmless for any reduction
in aggregate facility payments caused solely by the change in
reimbursement methodology.
(g) (1) The department shall ensure that rates established for
community care facilities serving persons with developmental
disabilities permit the viability of those facilities, including, but
not limited to, four -bed facilities, by establishing different rates
for each facility size, as determined by the number of beds
available, that reflect reasonable differences in the cost structure
offacilities with differing numbers of beds.
(2) The department shall adopt emergency regulations, within
30 days of the effective date of the amendments adding this
subdivision, to implement this subdivision. The adoption,
amendment, repeal, or readoption of a regulation authorized by
this paragraph is deemed to be necessary for the immediate
preservation of the public peace, health and safety, or general
welfare, for purposes of Sections 11346.1 and 11349.6 of the
Government Code, and the department is hereby exempted from
the requirement that it describe specific facts showing the need
for immediate action.
SEC. 5. Section 4681.2 is added to the Welfare and Institutions
Code, to read:
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4681.2. (a) Notwithstanding any other law, commencing July
1, 2016, the department shall increase the rates set for community
care facilities serving persons with developmental disabilities by
10 percent above the levels that otherwise would have been in
effect as of July 1, 2016. Commencing July 1, 2017, except as
specified in subdivision (b), the department shall increase those
rates by a percentage equal to the percentage of any increase in
the California Consumer Price Index since July 1, 2016.
(b) The rate increase described in subdivision (a) that is required
to commence July 1, 2017, shall only be made if the Budget Act
of 2017 does not implement alternative rate increases or rate
reforms based on the plan required by Section 4519.8.
(c) The funding increases authorized in this section shall only
be made if the increase would not result in a reduction to the
amount of federal matching funds available for these services.
SEC. 6. Section 4681.6 of the Welfare and Institutions Code
is amended to read:
4681.6. (a) Notwithstanding any other-lave-�, law,
commencing July 1, 2008:
(1) A regional center shall not pay an existing residential service
provider, for services where for which rates are determined through
a negotiation between the regional center and the provider, a rate
higher than the rate in effect on June 30, 2008, unless the increase
is required by a contract between the regional center and the vendor
that is in effect on June 30, 2008, or the regional center
demonstrates that the approval is necessary to protect the
consumer's health or safety and the department has granted prior
written authorization.
(2) A regional center shall not negotiate a rate with a new
residential service provider, for services where for which rates are
determined through -ft negotiation between the regional center and
the provider, that is higher than the regional center's median rate
for the same service code and unit of service, or the statewide
median rate for the same service code and unit of service,
whichever is lower. The unit of service designation shall conform
with an existing regional center designation or, if none exists, a
designation used to calculate the statewide median rate for the
same service. The regional center shall annually certify to the
department its median rate for each negotiated rate service code,
by designated unit of service. This certification shall be subject to
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1 verification through the department's biennial fiscal audit of the
2 regional center.
3 (b) Notwithstanding subdivision (a), commencing July 1, 2014,
4 regional centers may negotiate a rate adjustment with residential
5 service providers regarding rates that are otherwise restricted
6 pursuant to subdivision (a), if the adjustment is necessary in order
7 to pay employees no less than the minimum wage as established
8 by Section 1182.12 of the Labor Code, as amended by Chapter
9 351 of the Statutes of 2013, and only for the purpose of adjusting
10 payroll costs associated with the minimum wage increase. The
11 rate adjustment shall be specific to the unit of service designation
12 that is affected by the increased minimum wage, shall be specific
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to payroll costs associated with any increase necessary to adjust
employee pay only to the extent necessary to bring pay into
compliance with the increased state minimum wage, and shall not
be used as a general wage enhancement for employees paid above
the minimum wage. Regional centers shall maintain documentation
on the process to determine, and the rationale for granting, any
rate adjustment associated with the minimum wage increase.
(c) (1) Notwithstanding subdivision (a), commencing July 1,
2016, regional centers shall increase the rates paid to residential
service providers, for services for which rates are determined
through negotiation between the regional center and the provider,
by 10 percent above the levels that otherwise would have been in
effect on July 1, 2016 Commencing July 1, 2017, except as
specified in paragraph (2), the regional centers shall increase
those rates by a percentage equal to the percentage of any increase
in the California Consumer Price Index since July 1, 2016
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1 (2) The rate increase described in paragraph(]) that is required
2 to commence July 1, 2017, shall only be made if the Budget Act
3 of 2017 does not implement alternative rate increases or rate
4 reforms based on the plan required by Section 4519.8.
5 (3) The funding increases authorized in this subdivision shall
6 only be made if the increase would not result in a reduction to the
7 amount of federal matching funds available for these services.
8 (d) For purposes of this section, "residential service provider"
9 includes Adult Residential Facilities for Persons with Special
10 Health Care Needs, as described in Section 4684.50.
11 (e) This section shall not apply to those services for which rates
12 are determined by the State Department of Health Care Services,
13 or the State Department of Developmental Services, or are usual
14 and customary.
15 SEC. 7. Section 4689.8 of the Welfare and Institutions Code
16 is amended to read:
17 4689.8. (a) Notwithstanding any other
18 regulation, law, commencing July 1, 2008:
19 (a) No
20 (1) A regional center -may shall not pay an existing supported
21 living service provider, for services where for which rates are
22 determined through -ft negotiation between the regional center and
23 the provider, a rate higher than the rate in effect on June 30, 2008,
24 unless the increase is required by a contract between the regional
25 center and the vendor that is in effect on June 30, 2008, or the
26 regional center demonstrates that the approval is necessary to
27 protect the consumer's health or safety and the department has
28 granted prior written authorization.
29 (b) No
30 (2) A regional center -ray shall not negotiate a rate with a new
31 supported living service provider, for services where for which
32 rates are determined through negotiation between the regional
33 center and the provider, that is higher than the regional center's
34 median rate for the same service code and unit of service, or the
35 statewide median rate for the same service code and unit of service,
36 whichever is lower. The unit of service designation shall conform
37 with an existing regional center designation or, if none exists, a
38 designation used to calculate the statewide median rate for the
39 same service. The regional center shall annually certify to the State
40 Department of Developmental Services its median rate for each
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1 negotiated rate service code, by designated unit of service. This
2 certification shall be subject to verification through the
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department's biennial fiscal audit of the regional center.
(b) (1) Notwithstanding subdivision (a), commencing July 1,
2016, regional centers shall increase the rates paid to supported
living service providers, for services for which rates are determined
through negotiation between the regional center and the provider,
by 10 percent above the levels that otherwise would have been in
effect on July 1, 2016 Commencing July 1, 2017, except as
specified in paragraph (2), the regional centers shall increase
those rates by a percentage equal to the percentage of any increase
in the California Consumer Price Index since July 1, 2016
(2) The rate increase described in paragraph (1) that is required
to commence July 1, 2017, shall only be made if the Budget Act
of 2017 does not implement alternative rate increases or rate
reforms based on the plan required by Section 4519.8.
(3) The funding increases authorized in this subdivision shall
only be made if the increase would not result in a reduction to the
amount of federal matching funds available for these services.
SEC. 8. Section 4690.7 is added to the Welfare and Institutions
Code, to read:
4690.7. (a) Notwithstanding any other law, commencing July
1, 2016, the department shall increase the rates set for
nonresidential service providers by 10 percent above the levels
that otherwise would have been in effect on July 1, 2016.
Commencing July 1, 2017, except as specified in subdivision (b),
the department shall increase those rates by a percentage equal to
the percentage of any increase in the California Consumer Price
Index since July 1, 2016.
(b) The rate increase described in subdivision (a) that is required
to commence July 1, 2017, shall only be made if the Budget Act
of 2017 does not implement alternative rate increases or rate
reforms based on the plan required by Section 4519.8.
(c) The funding increases authorized in this section shall only
be made if the increase would not result in a reduction to the
amount of federal matching funds available for these services.
SEC. 9. Section 4691.9 of the Welfare and Institutions Code
is amended to read:
4691.9. (a) Notwithstanding any other-lave-�, law,
commencing July 1, 2008:
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1 (1) A regional center shall not pay an existing service provider,
2 for services where rates are determined through a negotiation
3 between the regional center and the provider, a rate higher than
4 the rate in effect on June 30, 2008, unless the increase is required
5 by a contract between the regional center and the vendor that is in
6 effect on June 30, 2008, or the regional center demonstrates that
7 the approval is necessary to protect the consumer's health or safety
8 and the department has granted prior written authorization.
9 (2) A regional center shall not negotiate a rate with a new service
10 provider, for services where rates are determined through a
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negotiation between the regional center and the provider, that is
higher than the regional center's median rate for the same service
code and unit of service, or the statewide median rate for the same
service code and unit of service, whichever is lower. The unit of
service designation shall conform with an existing regional center
designation or, if none exists, a designation used to calculate the
statewide median rate for the same service. The regional center
shall annually certify to the State Department of Developmental
Services its median rate for each negotiated rate service code, by
designated unit of service. This certification shall be subject to
verification through the department's biennial fiscal audit of the
regional center.
(b) Notwithstanding subdivision (a), commencing July 1, 2014,
regional centers may negotiate a rate adjustment with providers
regarding rates if the adjustment is necessary in order to pay
employees no less than the minimum wage as established by
Section 1182.12 of the Labor Code, as amended by Chapter 351
of the Statutes of 2013, and only for the purpose of adjusting
payroll costs associated with the minimum wage increase. The
rate adjustment shall be specific to the unit of service designation
that is affected by the increased minimum wage, shall be specific
to payroll costs associated with any increase necessary to adjust
employee pay only to the extent necessary to bring pay into
compliance with the increased state minimum wage, and shall not
be used as a general wage enhancement for employees paid above
the increased minimum wage. Regional centers shall maintain
documentation on the process to determine, and the rationale for
granting, any rate adjustment associated with the minimum wage
increase.
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1 (c) Notwithstanding any othe law or regulatioit, law,
2 commencing January 1, 2015, rates for personal assistance and
3 supported living services in effect on December 31, 2014, shall
4 be increased by 5.82 percent, subject to funds specifically
5 appropriated for this increase for costs due to changes in federal
6 regulations implementing the federal Fair Labor Standards Act of
7 1938 (29 U.S.C. Sec. 201 et seq.). The increase shall be applied
8 as a percentage, and the percentage shall be the same for all
9 applicable providers. As used in this subdivision, both of the
10 following definitions shall apply:
11 (1) "Personal assistance" is limited only to those services
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provided by vendors classified by the regional center as personal
assistance providers, pursuant to the miscellaneous services
provisions contained in Title 17 of the California Code of
Regulations.
(2) "Supported living services" are limited only to those services
defined as supported living services in Title 17 of the California
Code of Regulations.
(d) (1) Notwithstanding subdivision (a), commencing July 1,
2016, regional centers shall increase the rates paid to service
providers, for services for which rates are determined through
negotiation between the regional center and the provider, by 10
percent above the levels that otherwise would have been in effect
on July 1, 2016 Commencing July 1, 2017, except as specified in
paragraph (2), the regional centers shall increase those rates by
a percentage equal to the percentage of any increase in the
California Consumer Price Index since July 1, 2016
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1 (2) The rate increase described in paragraph(]) that is required
2 to commence July 1, 2017, shall only be made if the Budget Act
3 of 2017 does not implement alternative rate increases or rate
4 reforms based on the plan required by Section 4519.8.
5 (3) The funding increases authorized in this subdivision shall
6 only be made if the increase would not result in a reduction to the
7 amount of federal matching funds available for these services.
8 (e) This section shall not apply to those services for which rates
9 are determined by the State Department of Health Care Services,
10 or the State Department of Developmental Services, or are usual
11 and customary.
12 SEC. 10. Section 4793 is added to the Welfare and Institutions
13 Code, to read:
14 4793. (a) The department shall increase the funding provided
15 to a regional center for the regional center's operating budget as
16 follows:
17 (1) Beginning July 1, 2016, increase the amount paid under the
18 core staffing formula by 10 percent.
19 (2) Beginning July 1, 2017, increase the amount paid under the
20 core staffing formula by 10 percent, plus a percentage equal to the
21 percentage of any increase in the California Consumer Price Index
22 since July 1, 2016.
23 (b) The rate increase described in paragraph (2) of subdivision
24 (a) that is required to commence July 1, 2017, shall only be made
25 if the Budget Act of 2017 does not implement alternative rate
26 increases or regional center funding reforms based on the plan
27 required by Section 4519.8.
28 (c) The funding increases authorized in this section shall only
29 be made if the increase would not result in a reduction to the
30 amount of federal matching funds available for these services.
31 SEC. 11. Section 4794 is added to the Welfare and Institutions
32 Code, to read:
33 4794. (a) The department shall increase the funding provided
34 to a regional center to enable the regional center and regional
35 center's purchase -of -service vendors to fund all of the following
36 costs associated with minimum wage requirements:
37 (1) The costs necessary to comply with a statewide minimum
38 wage requirement.
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1 (2) The costs necessary to comply with minimum wage
2 requirements enacted by local governments that exceed the
3 statewide minimum wage.
4 (3) The costs necessary to increase compensation for exempt,
5 salaried employees to comply with wage orders issued by the
6 Industrial Welfare Commission or any other state regulatory
7 agency.
8 (4) Any other wage adjustments that vendors are required to
9 make in response to minimum wage increases mandated by state
10 or federal statutes, regulations, or other authorities.
11 (b) The funding increases required by this section shall be in
12 addition to the funding increases required by Sections 4681.2,
13 4681.6, 4689.8, 4690.7, 4691.9, 4793, and 4860, as those sections
14 were added or amended by the act that added this section.
15 SEC. 12. Section 4860 of the Welfare and Institutions Code is
16 amended to read:
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4860. (a) (1) The -Except as provided in subdivision (J), the
hourly rate for supported employment services provided to
consumers receiving individualized services shall beery
thirty-four dollars and-eigf*y-twa twenty four cents).
($34.24).
(2) Job coach hours spent in travel to consumer worksites may
be reimbursable for individualized services only when the job
coach travels from the vendor's headquarters to the consumer's
worksite or from one consumer's worksite to another, and only
when the travel is one way.
(b) T+,e--Except as provided in subdivision (J), the hourly rate
for group services shall be4hirty thirty-four dollars and -eighty-two
twenty four cents ($30-82), ($34.24) regardless of the number of
consumers served in the group. Consumers in a group shall be
scheduled to start and end work at the same time, unless an
exception that takes into consideration the consumer's compensated
work schedule is approved in advance by the regional center. The
department, in consultation with stakeholders, shall adopt
regulations to define the appropriate grounds for granting these
exceptions. When the number of consumers in a supported
employment placement group drops to fewer than the minimum
required in subdivision (r) of Section 4851, the regional center
may terminate funding for the group services in that group, unless,
within 90 days, the program provider adds one or more regional
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1 centers, or Department of Rehabilitation -funded supported
2 employment consumers to the group.
3 (c) Job coaching hours for group services shall be allocated on
4 a prorated basis between a regional center and the Department of
5 Rehabilitation when regional center and Department of
6 Rehabilitation consumers are served in the same group.
7 (d) When Section 4855 applies, fees shall be authorized for the
8 following:
9 (1) A four -hundred -dollar
10 ($400) fee shall be paid to the program provider upon intake of a
11 consumer into a supported employment program. No fee shall be
12 paid if that consumer completed a supported employment intake
13 process with that same supported employment program within the
14 previous 12 months.
15 (2) An
16 eight -hundred -dollar ($800) fee shall be paid upon placement of
17 a consumer in an integrated job, except that no fee shall be paid
18 if that consumer is placed with another consumer or consumers
19 assigned to the same job coach during the same hours of
20 employment.
21 (3) An
22 eight -hundred -dollar ($800) fee shall be paid after a 90 -day
23 retention of a consumer in a job, except that no fee shall be paid
24 if that consumer has been placed with another consumer or
25 consumers, assigned to the same job coach during the same hours
26 of employment.
27 (e) Notwithstanding paragraph (4) of subdivision (a) of Section
28 4648, the regional center shall pay the supported employment
29 program rates established by this section.
30 (J) (1) Commencing July 1, 2017, the rates established by
31 subdivisions (a) and (b) shall be thirty-seven dollars and sixty-six
32 cents ($37.66).
33 (2) The rate increase described in paragraph (1), shall only be
34 made if the Budget Act of 2017 does not implement alternative
35 rate increases or regional center funding reforms based on the
36 plan required by Section 4519.8.
37 SEC. 13. The Legislature declares that the changes made by
38 this act are not intended to result in the substantial impairment of
39 any contract. To the extent any contract would be substantially
40 impaired as a result of the application of any change made by this
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1 act, it is the intent of the Legislature that the change apply only to
2 contracts renewed or entered into on or after the effective date of
3 this act.
4 SEC. 14. This act is an urgency statute necessary for the
5 immediate preservation of the public peace, health, or safety within
6 the meaning of Article IV of the Constitution and shall go into
7 immediate effect. The facts constituting the necessity are:
8 In order to ensure that the necessary increases in the rates paid
9 for services provided to persons with developmental disabilities
10 and in the hourly rates for supported employment services provided
11 to consumers receiving individualized services take effect as soon
12 as possible, it is necessary that this act take immediate effect.
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Proposed Conference Report No. 1
February 22, 2016
AMENDED IN SENATE SEPTEMBER 3, 2015
CALIFORNIA LEGISLATURE -2015-16 SECOND EXTRAORDINARY SESSION
ASSEMBLY BILL No. 1
Introduced by Assembly Menthet Bonta Assembly Member
Thurmond, Senator Beall, Assembly Member Banta, Assembly
Member Maienschein, and Senator Cannella
(Coauthors: Assembly Members Alejo, Atkins, Baker, Bigelow, Bloom,
Bonilla, Brown, Burke, Calderon, Campos, Chau, Chiu, Chu,
Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier,
Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez,
Gonzalez, Gordon, Gray, Roger Hernkndez, Holden, Irwin, Jones,
Jones -Sawyer, Levine, Linder, Lopez, Low, Mathis, Mayes,
McCarty, Medina, Mullin, Nazarian, O'Donnell, Olsen, Quirk,
Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone,
Ting, Waldron, Weber, Williams, and Wood)
(Coauthors: Senators Allen, Block, De Leon, Galgiani, Glazer, Hall,
Hancock, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leno,
Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Pan, Pavley,
Roth, Wieckowski, and Wolk)
July 2, 2015
An actrelafing to soeittl serviees. to amend Sections 4519.5, 4639.5,
4652.5, 4689.8, 4690.5, 4691.6, 4691.9, and 4860 of, and to add Sections
4519.8, 4691.10, 4691.11, 4870, 14105.075, and 14105.195 to, the
Welfare and Institutions Code, relating to human services financing,
and making an appropriation therefor.
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LEGISLATIVE COUNSEL'S DIGEST
AB 1, as amended, Berta Thurmond.
Developmental services: Medi -Cal: funding.
The Lanterman Developmental Disabilities Services Act requires the
State Department ofDevelopmental Services to contract with regional
centers to provide services and supports to individuals with
developmental disabilities. Under existing law, regional centers
purchase needed services for individuals with developmental disabilities
through approved service providers or arrange for those services
through other publicly funded agencies. Existing law establishes
specified rates and wages to be paid to certain service providers and
the rates to be paid for certain developmental services. Existing law
requires that rates to be paid to other developmental service providers
either be set by the department or negotiated between the regional
center and the service provider.
Existing law establishes the Medi -Cal program, administered by the
State Department of Health Care Services, under which basic health
care services are provided to qualified low-income persons. The
Medi -Cal program is, in part, governed and funded by federal Medicaid
Program provisions. Existing law requires, except as otherwise
provided, Medi -Cal provider payments to be reduced, as specified.
This bill would appropriate a specified sum to the State Department
ofDevelopmental Services to, commencing July 1, 2016, among other
things, increase rates and wages for certain developmental services
providers and fund incentive payments for competitive integrated
employment opportunities and internships for individuals with
developmental disabilities. The bill would require the department to
submit a rate study to specified committees of the Legislature on or
before March 1, 2019, regarding community-based services for
individuals with developmental disabilities. The bill would require each
regional center to report specified information to the department
regarding increased funding for regional center operations. The bill
would, for dates of service on or after August 1, 2016, increase the
payment rates for intermediate care facilities and skilled nursing
facilities that provide services to developmentally disabled individuals
under the Medi -Cal program, as specified.
The bill would also prohibit the State Department of Health Care
Services from seeking to retroactively implement certain Medi -Cal
provider payment reductions and limitations with regards to
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reimbursements for services provided by skilled nursing facilities that
are distinct parts of general acute care hospitals for dates of service
on or after June 1, 2011, and on or before September 30, 2013, and
from seeking to recoup overpayments, as specified.
Existing law requires the department and regional centers to annually
collaborate to compile specified data relating to purchase of service
authorization, utilization, and expenditure by each regional center.
Existing law requires each regional center to annually report to the
department regarding the regional center's implementation of these
requirements, including whether the data indicates a need to reduce
disparities in the purchase ofservices among consumers in the regional
center's catchment area and the regional center's recommendations
and plan to promote equity, and reduce disparities, in the purchase of
services. Existing law requires the department to consult with specified
stakeholders to review the data, develop recommendations to help
reduce disparities in purchase of service expenditures, and encourage
development and expansion of culturally appropriate services, among
other things, and to report the status of its efforts during the 2016-17
legislative budget subcommittee hearing process.
The bill would also require the department, subject to available
funding, to allocate funding to regional centers to assist in implementing
specified recommendations and plans, including the recommendations
and plans of the regional centers to promote equity, and reduce
disparities, in the purchase of services.
Existing law requires an entity that receives payments between
$250, 000 and $500, 000 per year from one or more regional centers to
obtain either an independent audit or an independent review report of
its financial statements, and requires an entity that receives payments
that are equal to or more than $500,000 per year to obtain an
independent audit.
This bill would instead require an entity that receives payments
between $500,000 and $2,000,000 from one or more regional centers
to obtain an independent review report of its financial statements, and
would authorize these entities to apply for, and require the regional
center to grant, a 2 -year exemption from this requirement ifthe regional
center does not find issues in the independent review report that have
an impact on regional center services. The bill would require an entity
that receives payments from one or more regional centers that are equal
to or more than $2, 000, 000 to obtain an independent audit and would
authorize these entities to apply for, and require the regional center to
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grant, a 2 -year exemption from the audit requirement if the audit
resulted in an unmodified opinion, an unmodified opinion with
additional communication, or a qualified opinion with issues that are
not material. The bill would require a regional center to annually report
to the State Department of Developmental Services any exemptions
granted pursuant to these provisions.
eeitters to provide sefviees and suppofts to individuals with
other publiely funded agetteies.
thaf establishes ftniding gottrees mid meeliallignis in order to pro -fide
Provided
idd+ _ _g _ _1
Vote: ftt&jff4tr2/3. Appropriation: eyes. Fiscal committee: rfa
yes. State -mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. Section 4519.5 of the Welfare and Institutions
2 Code is amended to read:
3 4519.5. (a) The department and the regional centers shall
4 annually collaborate to compile data in a uniform manner relating
5 to purchase of service authorization, utilization, and expenditure
6 by each regional center with respect to all of the following:
7 (1) The age of the consumer, categorized by the following:
8 (A) Birth to age two, two years of age, inclusive.
9 (B) Three tom 21 years of age inclusive.
10 (C) Twenty-two years of age and older.
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1 (2) Race or ethnicity of the consumer.
2 (3) Primary language spoken by the consumer, and other related
3 details, as feasible.
4 (4) Disability detail, in accordance with the categories
5 established by subdivision (a) of Section 4512, and, if applicable,
6 a category specifying that the disability is unknown.
7 (5) Residence type, subcategorized by age, race or ethnicity,
8 and primary language.
9 (6) Number of instances when the written copy of the individual
10 program plan was provided at the request of the consumer and,
11 when appropriate, his or her parents, legal guardian or conservator,
12 or authorized representative, in a language other than a threshold
13 language, as defined by paragraph (3) of subdivision (a) of Section
14 1810.410 of Title 9 of the California Code of Regulations, if that
15 written copy was provided more than 60 days after the request.
16 (b) The data reported pursuant to subdivision (a) shall also
17 include the number and percentage of individuals, categorized by
18 age, race or ethnicity, and disability, and by residence type, as set
19 forth in paragraph (5) of subdivision (a), who have been determined
20 to be eligible for regional center services but are not receiving
21 purchase of service funds.
22 (c) By March 31, 2013, each regional center shall post the data
23 described in this section that is specific to the regional center on
24 its Internet Web site. Commencing on December 31, 2013, each
25 regional center shall annually post this data by December 31. Each
26 regional center shall maintain all previous years' data on its Internet
27 Web site.
28 (d) By March 31, 2013, the department shall post the information
29 described in this section on a statewide basis on its Internet Web
30 site. Commencing December 31, 2013, the department shall
31 annually post this information by December 31. The department
32 shall maintain all previous years' data on its Internet Web site.
33 The department shall also post notice of any regional center
34 stakeholder meetings on its Internet Web site.
35 (e) Within three months of compiling the data with the
36 department, and annually thereafter, each regional center shall
37 meet with stakeholders in one or more public meetings regarding
38 the data. The meeting or meetings shall be held separately from
39 any meetings held pursuant to Section 4660. The regional center
40 shall provide participants of these meetings with the data and any
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1 associated information, and shall conduct a discussion of the data
2 and the associated information in a manner that is culturally and
3 linguistically appropriate for that community, including providing
4 alternative communication services, as required by Sections 11135
5 to 11139.7, inclusive, of the Government Code and implementing
6 regulations. Regional centers shall inform the department of the
7 scheduling of those public meetings 30 days prior to the meeting.
8 Notice of the meetings shall also be posted on the regional center's
9 Internet Web site 30 days prior to the meeting and shall be sent to
10 individual stakeholders and groups representing underserved
11 communities in a timely manner. Each regional center shall, in
12 holding the meetings required by this subdivision, consider the
13 language needs of the community and shall schedule the meetings
14 at times and locations designed to result in a high turnout by the
15 public and underserved communities.
16 (f) (1) Each regional center shall annually report to the
17 department regarding its implementation of the requirements of
18 this section. The report shall include, but shall not be limited to,
19 all of the following:
20 (A) Actions the regional center took to improve public
21 attendance and participation at stakeholder meetings, including,
22 but not limited to, attendance and participation by underserved
23 communities.
24 (B) Copies of minutes from the meeting and attendee comments.
25 (C) Whether the data described in this section indicates a need
26 to reduce disparities in the purchase of services among consumers
27 in the regional center's catchment area If the data does indicate
28 that need, the regional center's recommendations and plan to
29 promote equity, and reduce disparities, in the purchase of services.
30 (2) Each regional center and the department shall annually post
31 the reports required by paragraph (1) on its Internet Web site by
32 August 31.
33 (g) (1) The department shall consult with stakeholders,
34 including consumers and families that reflect the ethnic and
35 language diversity of regional center consumers, regional centers,
36 advocates, providers, the protection and advocacy agency described
37 in Section 4901, and those entities designated as University Centers
38 for Excellence in Developmental Disabilities Education, Research,
39 and Service pursuant to Section 15061 of Title 42 of the United
40 States Code, to achieve the following objectives:
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1 (A) Review the data compiled pursuant to subdivision (a).
2 (B) Identify barriers to equitable access to services and supports
3 among consumers and develop recommendations to help reduce
4 disparities in purchase of service expenditures.
5 (C) Encourage the development and expansion of culturally
6 appropriate services, service delivery, and service coordination.
7 (D) Identify best practices to reduce disparity and promote
8 equity.
9 (2) The department shall reportthe status of its efforts to satisfy
10 the requirements of paragraph (1) during the 2016-17 legislative
11 budget subcommittee hearing process.
12 (h) Subject to available funding, the department shall allocate
13 funding to regional centers to assist with implementation of the
14 recommendations and plans developed pursuant to subdivisions
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(f) and (g). Activities funded through these allocations may include,
but are not limited to, pay differentials supporting direct care
bilingual staff of community-based service providers, parent or
caregiver education programs, cultural competency training for
regional center staff, outreach to underserved populations, or
additional culturally appropriate service types or service delivery
models.
SEC. 2. Section 4519.8 is added to the Welfare and Institutions
Code, to read:
4519.8. On or before March 1, 2019, the department shall
submit a rate study to the appropriate fiscal and policy committees
of the Legislature addressing the sustainability, quality, and
transparency of community-based services for individuals with
developmental disabilities. The department shall consult with
stakeholders, through the developmental services task force
process, in developing the study. The study shall include, but not
be limited to, all of thefollowing:
(a) An assessment of the effectiveness of the methods used to
pay each category ofcommunity service provider. This assessment
shall include consideration of the following factors for each
category of service provider:
(1) Whether the current method of ratesetting for a service
category provides an adequate supply ofproviders in that category,
including, but not limited to, whether there is a sufficient supply
ofproviders to enable consumers throughout the state to have a
choice ofproviders, depending upon the nature of the service.
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(2) A comparison of the estimated fiscal effects of alternative
rate methodologies for each service provider category.
(3) How different rate methodologies can incentivize outcomes
for consumers.
(b) An evaluation of the number and type of service codes for
regional center services, including, but not limited to,
recommendations for simplifying and making service codes more
reflective of the level and types of services provided.
SEC. 3. Section 4639.5 of the Welfare and Institutions Code
is amended to read:
4639.5. (a) By December 1 of each year, each regional center
shall provide a listing to the State Department of Developmental
Services a complete current salary schedule for all personnel
classifications used by the regional center. The information shall
be provided in a format prescribed by the department. The
department shall provide this information to the public upon
request. From February 1, 2009, to June 30, 2010, inclusive, the
requirements of this subdivision shall not apply.
(b) By December 1 of each year, each regional center shall
report information to the State Department of De-velopmenta+
Seff iees department on all prior fiscal year expenditures from the
regional center operations budget for all administrative services,
including managerial, consultant, accounting, personnel, labor
relations, and legal services, whether procured under a written
contract or otherwise. Expenditures for the maintenance, repair,
or purchase of equipment or property shall not be required to be
reported for purposes of this subdivision. The report shall be
prepared in a format prescribed by the department and shall include,
at a minimum, for each recipient the amount of funds expended,
the type of service, and purpose of the expenditure. The department
shall provide this information to the public upon request. Regional
centers shall not be required to prepare or submit the report required
by this subdivision in 2009.
(c) Beginning July I, 2016, and to the extent funds are
appropriated in the annual Budget Act for this purpose, the
department shall allocate thirty-one million one hundred thousand
dollars ($31,100,000), plus any associated matching funds, to
provide a salary increase, benefit increase, or both, excluding
unfunded retirement liabilities, for regional center operations. Of
this amount, twenty-nine million seven hundred thousand dollars
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1 ($29,700, 000) shall be used for salary, benefit increases, or both,
2 for regional center staff, and shall not supplant funding currently
3 scheduled to be used for this purpose. These funds shall not be
4 used to provide salary or benefit increases to regional center
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executive staffor for unfunded retirement liabilities. The remaining
one million four hundred thousand dollars ($1,400,000) shall be
used for an increase for administrative costs, consistent with those
specified in subdivision (b) of Section 4629.7, for both regional
centers and clients' rights advocates contracts pursuant to
subdivision (b) of Section 4433. Regional centers shall maintain
documentation, subject to audit, on how this funding was allocated.
(d) By March 10, 2017, and again by October 1, 2017, and in
a formatprescribed by the department, each regional center shall
report the following information to the department:
(1) The total amountprovided to staffforpurposes ofsubdivision
(c).
(2) The position titles ofstaffreceiving the increase and amounts
of increases by title.
(3) The number of service coordinators receiving the increase.
(4) Data on staff turnover.
(5) The classification of expenditures and amount for each of
the administrative costs outlined in subdivision (b) of Section
4629.7.
(6) The allocation methodology used by a regional center to
distribute the funding.
(7) Any other information determined by the department.
(e) In its 2017-18MayRevisionfiscal estimate, the department
shall describe the implementation of the increase provided in
subdivision (c), including, but not limited to, the data described
in subdivision (d), aggregated by regional center and statewide,
and the impact of the increase on caseload ratios.
(f) Any regional center that fails to report the information
required by subdivision (d) to the department shall forfeit the
increases described in subdivision (c).
SEC. 4. Section 4652.5 of the Welfare and Institutions Code
is amended to read:
4652.5. (a) (1) An entity-reeeiairtg that receives payments
from one or more regional centers shall contract with an
independent accounting firm for tm to obtain an independent audit
or independent review report of its financial statements relating
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1 to payments made by regional centers, subject tom both of the
2 following:
3 (A)*Rteit--If the amount received from the regional center or
4 regional centers during the entity's fiscal year is more than or equal
5 to, five hundred
6 thousand dollars ($500, 000), but less than `- '---- red 4--------'
7 dtwo million dollars ($2,000,000), the entity
8 shall obtain an independent review report of
9 its financial statements for the period. Consistent with Subchapter
10 21 (commencing with Section 58800) of Chapter 3 ofDivision 2
11 of Title 17 of the California Code of Regulations, this subdivision
12 shall also apply to work activity program providers receiving less
13 than . five hundred
14 thousand dollars ($500, 000).
15 (B)*Atett--If the amount received from the regional center or
16 regional centers during the entity's fiscal year is equal to or more
17 than two million dollars
18 ($2, 000, 000), the entity shall obtain an independent audit of its
19 financial statements for the period.
20 (2) This requirement does not apply to payments made using
21 usual and customary rates, as defined by Title 17 of the California
22 Code of Regulations, for services provided by regional centers.
23 (3) This requirement does not apply to state and local
24 governmental agencies, the University of California, or the
25 California State University.
26 (b) An entity subject to subdivision (a) shall provide copies of
27 the independent audit or independent review report required by
28 subdivision (a), and accompanying management letters, to the
29 vendoring regional center within
30 attdit or review.nine months of the end of the fiscal year for the
31 entity.
32 (c) Regional centers reeeiving that receive the audit or review
33 reports required by subdivision (b) shall review and require
34 resolution by the entity for issues identified in the report that have
35 an impact on regional center services. Regional centers shall take
36 appropriate action, up to termination of vendorization, for lack of
37 adequate resolution of issues.
38 (d) Regional centers shall notify the department of all qualified
39 opinion reports or reports noting significant issues that directly or
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1 indirectly impact regional center services within 30 days after
2 receipt. Notification shall include a plan for resolution of issues.
3 (e) For purposes of this section, an independent review of
4 financial statements must shall be performed by an independent
5 accounting firm and shall cover, at a minimum, all of the following:
6 (1) An inquiry as to the entity's accounting principles and
7 practices and methods used in applying them.
8 (2) An inquiry as to the entity's procedures for recording,
9 classifying, and summarizing transactions and accumulating
10 information.
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(3) Analytical procedures designed to identify relationships or
items that appear to be unusual.
(4) An inquiry about budgetary actions taken at meetings of the
board of directors or other comparable meetings.
(5) An inquiry about whether the financial statements have been
properly prepared in conformity with generally accepted accounting
principles and whether any events subsequent to the date of the
financial statements would have a material effect on the statements
under review.
(6) Working papers prepared in connection with a review of
financial statements describing the items covered as well as any
unusual items, including their disposition.
(f) For purposes of this section, an independent review report
shall cover, at a minimum, all of the following:
(1) Certification that the review was performed in accordance
with standards established by the American Institute of Certified
Public Accountants.
(2) Certification that the statements are the representations of
management.
(3) Certification that the review consisted of inquiries and
analytical procedures that are lesser in scope than those of an audit.
(4) Certification that the accountant is not aware of any material
modifications that need to be made to the statements for them to
be in conformity with generally accepted accounting principles.
(g) The department shall not consider a request for adjustments
to rates submitted in accordance with Title 17 of the California
Code of Regulations by an entity receiving payments from one or
more regional centers solely to fund either anticipated or
unanticipated changes required to comply with this section.
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1 (h) (1) An entity required to obtain an independent review
2 report of its financial statement pursuant to subparagraph (A) of
3 paragraph (1) of subdivision (a) may apply to the regional center
4 for, and the regional center shall grant, a two-year exemption from
5 the independent review report requirement if the regional center
6 does not find issues in the prior year's independent review report
7 that have an impact on regional center services.
8 (2) An entity required to obtain an independent audit of its
9 financial statements pursuant to subparagraph (B) of paragraph
10 (1) of subdivision (a) may apply to the regional center for an
11 exemptionfrom the independent audit requirement, subject to both
12 of the following conditions:
13 (A) If the independent audit for the prior year resulted in an
14 unmodified opinion or an unmodified opinion with additional
15 communication, the regional center shall grant the entity a
16 two-year exemption.
17 (B) If the independent audit for the prior year resulted in a
18 qualified opinion and the issues are not material, the regional
19 center shall grant the entity a two-year exemption. The entity and
20 the regional center shall continue to address issues raised in this
21 independent audit, regardless ofwhether the exemption is granted.
22 (3) A regional center shall annually report to the department
23 any exemptions granted pursuant to this subdivision.
24 SEC. 5. Section 4689.8 of the Welfare and Institutions Code
25 is amended to read:
26 4689.8. Notwithstanding any other—previ4err4 law or
27 regulation, commencing July 1, 2008:
28 (a) No regional center may pay an existing supported living
29 service provider, for services where rates are determined through
30 a negotiation between the regional center and the provider, a rate
31 higher than the rate in effect on June 30, 2008, unless the increase
32 is required by a contract between the regional center and the vendor
33 that is in effect on June 30, 2008, or the regional center
34 demonstrates that the approval is necessary to protect the
35 consumer's health or safety and the department has granted prior
36 written authorization.
37 (b) No regional center may negotiate a rate with anew supported
38 living service provider, for services where rates are determined
39 through a negotiation between the regional center and the provider,
40 that is higher than the regional center's median rate for the same
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—13— AB
1 service code and unit of service, or the statewide median rate for
2 the same service code and unit of service, whichever is lower. The
3 unit of service designation shall conform with an existing regional
4 center designation or, if none exists, a designation used to calculate
5 the statewide median rate for the same service. The regional center
6 shall annually certify to the State Department of Developmental
7 Services its median rate for each negotiated rate service code, by
8 designated unit of service. This certification shall be subject to
9 verification through the department's biennial fiscal audit of the
10 regional center.
11 (c) Notwithstanding any other law or regulation, commencing
12 July 1, 2016, and to the extent funds are appropriated in the annual
13 BudgetAct for this purpose, the rates in effect on June 30, 2016,
14 for supported living services, as defined in Subchapter 19 of
15 Chapter 3 of Division 2 of Title 17 of the California Code of
16 Regulations, shall be increased by 5 percent. The increase shall
17 be applied as a percentage, and the percentage shall be the same
18 for all providers.
19 SEC. 6. Section 4690.5 of the Welfare and Institutions Code
20 is amended to read:
21 4690.5. Notwithstanding any other-1%revi4on--e€ law or
22 regulation, commencing July 1, 2006, 2016, and to the extent funds
23 are appropriated in the annual Budget Act for this purpose, the
24 rate for family member -provided respite services authorized by
25 the department and in operation June 30, 2996, 2016, shall be
26 increased by
27 for t4iis itterease in t4te Budget,ket of 2 5 percent. The increase
28 shall be applied as a percentage, and the percentage shall be the
29 same for all providers.
30 SEC. 7. Section 4691.6 of the Welfare and Institutions Code
31 is amended to read:
32 4691.6. (a) Notwithstanding any other law or regulation,
33 commencing July 1, 2006, the community-based day program,
34 work activity program, and in-home respite service agency rate
35 schedules authorized by the department and in operation June 30,
36 2006, shall be increased by 3 percent, subject to funds specifically
37 appropriated for this increase in the Budget Act of 2006. The
38 increase shall be applied as a percentage, and the percentage shall
39 be the same for all providers. Any subsequent increase shall be
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governed by subdivisions (b), (c), (d), (e), (f), (g), (h), (i),
(k), and (l), and Section 4691.9.
(b) Notwithstanding any other law or regulation, the department
shall not establish any permanent payment rate for a
community-based day program or in-home respite service agency
provider that has a temporary payment rate in effect on June 30,
2008, if the permanent payment rate would be greater than the
temporary payment rate in effect on or after June 30, 2008, unless
the regional center demonstrates to the department that the
permanent payment rate is necessary to protect the consumers'
health or safety.
(c) Notwithstanding any other law or regulation, neither the
department nor any regional center shall approve any program
design modification or revendorization for a community-based
day program or in-home respite service agency provider that would
result in an increase in the rate to be paid to the vendor from the
rate that is in effect on or after June 30, 2008, unless the regional
center demonstrates that the program design modification or
revendorization is necessary to protect the consumers' health or
safety and the department has granted prior written authorization.
(d) Notwithstanding any other law or regulation, the department
shall not approve an anticipated rate adjustment for a
community-based day program or in-home respite service agency
provider that would result in an increase in the rate to be paid to
the vendor from the rate that is in effect on or after June 30, 2008,
unless the regional center demonstrates that the anticipated rate
adjustment is necessary to protect the consumers' health or safety.
(e) Notwithstanding any other law or regulation, except as set
forth in subdivisions (f) and (i), the department shall not approve
any rate adjustment for a work activity program that would result
in an increase in the rate to be paid to the vendor from the rate that
is in effect on or after June 30, 2008, unless the regional center
demonstrates that the rate adjustment is necessary to protect the
consumers' health and safety and the department has granted prior
written authorization.
(f) Notwithstanding any other law or regulation, commencing
July 1, 2014, the department may approve rate adjustments for a
work activity program that demonstrates to the department that
the rate adjustment is necessary in order to pay employees who,
prior to July 1, 2014, were being compensated at a wage that is
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1 less than the minimum wage established on and after July 1, 2014,
2 by Section 1182.12 of the Labor Code, as amended by Chapter
3 351 of the Statutes of 2013. The rate adjustment pursuant to this
4 subdivision shall be specific to payroll costs associated with any
5 increase necessary to adjust employee pay only to the extent
6 necessary to bring pay into compliance with the increased state
7 minimum wage, and shall not constitute a general wage
8 enhancement for employees paid above the increased minimum
9 wage.
10 (g) Notwithstanding any other law or regulation, commencing
11 July 1, 2014, community-based day program and in-home respite
12 services agency providers with temporary payment rates set by
13 the department may seek unanticipated rate adjustments from the
14 department due to the impacts of the increased minimum wage as
15 established by Section 1182.12 of the Labor Code, as amended by
16 Chapter 351 of the Statutes of 2013. The rate adjustment shall be
17 specific to payroll costs associated with any increase necessary to
18 adjust employee pay only to the extent necessary to bring pay into
19 compliance with the increased state minimum wage, and shall not
20 constitute a general wage enhancement for employees paid above
21 the increased minimum wage.
22 (h) Notwithstanding any other law or regulation, commencing
23 January 1, 2015, the in-home respite service agency rate schedule
24 authorized by the department and in operation December 31, 2014,
25 shall be increased by 5.82 percent, subject to funds specifically
26 appropriated for this increase for costs due to changes in federal
27 regulations implementing the federal Fair Labor Standards Act of
28 1938 (29 U.S.C. Sec. 201 et seq.). The increase shall be applied
29 as a percentage, and the percentage shall be the same for all
30 applicable providers.
31 (i) Notwithstanding any other law or regulation, commencing
32 July 1, 2015, the department may approve rate adjustments for a
33 work activity program that demonstrates to the department that
34 the rate adjustment is necessary to implement Article 1.5
35 (commencing with Section 245) of Chapter 1 of Part 1 of Division
36 2 of the Labor Code, as added by Chapter 317 of the Statutes of
37 2014. The rate adjustment may be applied only if a minimum of
38 24 hours or three days of paid sick leave per year was not a benefit
39 provided to employees as of June 30, 2015, and shall be specific
40 to payroll costs associated with any increase necessary to
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compensate an employee up to a maximum of 24 hours or three
2
days of paid sick leave in each year of employment.
3
0) Notwithstanding any other law or regulation, commencing
4
July 1, 2015, community-based day program and in-home respite
5
services agency providers with temporary payment rates set by
6
the department may seek unanticipated rate adjustments from the
7
department if the adjustment is necessary to implement Article 1.5
8
(commencing with Section 245) of Chapter 1 of Part 1 of Division
9
2 of the Labor Code, as added by Chapter 317 of the Statutes of
10
2014. The rate adjustment may be applied only if a minimum of
11
24 hours or three days of paid sick leave per year was not a benefit
12
provided to employees as of June 30, 2015, and shall be specific
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to payroll costs associated with any increase necessary to
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compensate an employee up to a maximum of 24 hours or three
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days of paid sick leave in each year of employment.
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(k) Notwithstanding any other law or regulation, commencing
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July 1, 2016, and to the extent funds are appropriated in the annual
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rate schedule authorized by the department and in operation June
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30, 2016, shall be increased by 5 percent. The increase shall be
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applied as a percentage, and the percentage shall be the same for
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all providers.
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(l) Notwithstanding any other law or regulation, commencing
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July 1, 2016, and to the extent funds are appropriated in the annual
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schedule authorized by the department and in operation June 30,
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2016, shall be increased by 5 percent. The increase shall be applied
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as a percentage, and the percentage shall be the same for all
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providers.
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SEC. 8. Section 4691.9 of the Welfare and Institutions Code
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is amended to read:
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4691.9. (a) Notwithstanding any other law or regulation,
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commencing July 1, 2008:
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(1) A regional center shall not pay an existing service provider,
35
for services where rates are determined through a negotiation
36
between the regional center and the provider, a rate higher than
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the rate in effect on June 30, 2008, unless the increase is required
38
by a contract between the regional center and the vendor that is in
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effect on June 30, 2008, or the regional center demonstrates that
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—17— AB
the approval is necessary to protect the consumer's health or safety
and the department has granted prior written authorization.
(2) A regional center shall not negotiate arate with anew service
provider, for services where rates are determined through a
negotiation between the regional center and the provider, that is
higher than the regional center's median rate for the same service
code and unit of service, or the statewide median rate for the same
service code and unit of service, whichever is lower. The unit of
service designation shall conform with an existing regional center
designation or, if none exists, a designation used to calculate the
statewide median rate for the same service. The regional center
shall annually certify to the State Department of Developmental
Services its median rate for each negotiated rate service code, by
designated unit of service. This certification shall be subject to
verification through the department's biennial fiscal audit of the
regional center.
(b) Notwithstanding subdivision (a), commencing July 1, 2014,
regional centers may negotiate a rate adjustment with providers
regarding rates if the adjustment is necessary in order to pay
employees no less than the minimum wage as established by
Section 1182.12 of the Labor Code, as amended by Chapter 351
of the Statutes of 2013, and only for the purpose of adjusting
payroll costs associated with the minimum wage increase. The
rate adjustment shall be specific to the unit of service designation
that is affected by the increased minimum wage, shall be specific
to payroll costs associated with any increase necessary to adjust
employee pay only to the extent necessary to bring pay into
compliance with the increased state minimum wage, and shall not
be used as a general wage enhancement for employees paid above
the increased minimum wage. Regional centers shall maintain
documentation on the process to determine, and the rationale for
granting, any rate adjustment associated with the minimum wage
increase.
(c) Notwithstanding any other law or regulation, commencing
January 1, 2015, rates for personal assistance and supported living
services in effect on December 31, 2014, shall be increased by
5.82 percent, subject to funds specifically appropriated for this
increase for costs due to changes in federal regulations
implementing the federal Fair Labor Standards Act of 1938 (29
U.S.C. Sec. 201 et seq.). The increase shall be applied as a
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1 percentage, and the percentage shall be the same for all applicable
2 providers. As used in this subdivision, both of the following
3 definitions shall apply:
4 (1) "Personal assistance" is limited only to those services
5 provided by vendors classified by the regional center as personal
6 assistance providers, pursuant to the miscellaneous services
7 provisions contained in Title 17 of the California Code of
8 Regulations.
9 (2) "Supported living services" are limited only to those services
10 defined as supported living services in Title 17 of the California
11 Code of Regulations.
12 (d) Notwithstanding subdivision (a), commencing July 1, 2015,
13 regional centers may negotiate a rate adjustment with existing
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service providers for services for which rates are determined
through negotiation between the regional center and the provider,
if the adjustment is necessary to implement Article 1.5
(commencing with Section 245) of Chapter 1 of Part 1 of Division
2 of the Labor Code, as added by Chapter 317 of the Statutes of
2014. The rate adjustment may be applied only if a minimum of
24 hours or three days of paid sick leave per year was not a benefit
provided to employees as of June 30, 2015, and shall be specific
to payroll costs associated with any increase necessary to
compensate an employee up to a maximum of 24 hours or three
days of paid sick leave in each year of employment.
(e) Notwithstanding any other law or regulation, commencing
July 1, 2016, and to the extent funds are appropriated in the annual
Budget Act for this purpose, rates for transportation services in
effect on June 30, 2016, shall be increased by 5 percent. The
increase shall be applied as a percentage to existing rates, and
the percentage shall be the same for all applicable providers.
(f) This section shall not apply to those services for which rates
are determined by the State Department of Health Care Services,
or the State Department of Developmental Services, or are usual
and customary.
SEC. 9. Section 4691.10 is added to the Welfare and Institutions
Code, to read:
4691.10. (a) (I) Notwithstanding any other law or regulation,
and to the extent funds are appropriated in the annual BudgetAct
for this purpose, the department shall provide a rate increase for
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1 the purpose of enhancing wages and benefits for staff who spend
2 a minimum of 75 percent of their time providing direct services to
3 consumers. The department shall not allocate more than one
4 hundred sixty-nine million five hundred thousand dollars
5 ($169,500, 000) of the amount appropriated in the act that added
6 this section for this purpose, plus any associated matching funds.
7 The rate increase shall only apply to services for which rates are
8 set by the department or through negotiations between the regional
9 centers and service providers, and to the rates paid for supported
10 employment services, as specified in subdivisions (a) and (b) of
11 Section 4860, and vouchered community-based services, as
12 specified in paragraph (7) of subdivision (c) of Section 4688.21.
13 This section shall not apply to those services for which rates are
14 determined by other entities, including, but not limited to, the State
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Department of Health Care Services or the State Department of
Social Services, or are usual and customary.
(2) For the purposes of this subdivision, "direct services" are
services, supports, care, supervision, or assistance provided by
staff directly to a consumer to address the consumer's needs, as
identified in the individual program plan, and include staff's
participation in training and other activities directly related to
providing services to consumers, as well as program preparation
functions as defined in Section 54302 of Title 17 of the California
Code of Regulations. State employees participating in the
Community State Staff Program are ineligible for the wage
increase described in this section.
(b) The rate increase specified in subdivision (a) shall be
implemented in the following manner:
(1) With regional center participation, the department shall
conduct a survey of random sample ofservice providers in each
service category eligible for the rate increase. The survey shall
request information regarding all of the following and shall be
returned to the regional center and department by April 15, 2016:
(A) Number of employees who spend a minimum of 75 percent
oftheir time providing direct services to consumers and their total
salary, wage, and benefit costs.
(B) Administrative costs as specified in subdivision (b) of Section
4629.7, including the number ofemployees and total salary, wage,
and benefit costs associated with those administrative costs.
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1 (C) Any other staff and their total salary, wage, and benefit
2 costs that are not included in either subparagraph (A) or (B).
3 (D) Any other costs to the provider, other than the costs
4 described in subparagraphs (A) to (C), inclusive.
5 (E) Any additional information, as requested by the department,
6 to assist in the determination of rate increases.
7 (2) The vendoring regional center shall certify that, to the best
8 of its knowledge, the survey results accurately reflect the services
9 provided by each surveyed service provider. The results from the
10 survey shall be used by the department to determine the rate
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increase to be applied, by service category. The rate increase shall
be the same for all eligible providers in each service category and
is intended to provide comparable increases across service
categories for staff providing direct services as described in
subdivision (a).
(3) By July 1, 2016, utilizing the data derived from paragraph
(1), the department shall do both of the following:
(A) For those service providers whose rates are set by the
department, notify those providers and the associated regional
centers of the amount by which the rates are to be increased.
(B) For those service providers whose rates are set by
negotiation with the regional center, notify the regional center of
the amount by which the rates are to be increased.
(4) With regional center participation, the department shall
conduct a survey, in a format determined by the department, ofall
providers who received the rate increase described in subdivision
(a). Providers shall submit the completed survey to the department
by October 1, 2017. The survey shall request information on how
the rate increase was used by providers and shall include, but is
not limited to, the following:
(A) Number of employees and their salary, wage, and benefit
costs, and increases provided as a result of this subdivision.
(B) Percentage of time each employee spends providing direct
services.
(C) Administrative expenses, consistent with subdivision (b) of
Section 4629.7.
(D) Any additional information as determined by the department.
(c) Providers granted a rate increase pursuant to this section
shall maintain documentation, subject to audit by the department
or regional center, that the rate increase was used solely to
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AB 1
1 increase wages, salaries, and benefits of eligible staff members
2 spending a minimum of 75 percent of their time providing direct
3 services to consumers.
4 (d) The rate increases calculated by the department pursuant
5 to this section shall be effective July 1, 2016, and implemented as
6 described in subdivision (b).
7 (e) Any provider that fails to report the information required
8 byparagraph (4) of subdivision (b) to the department by October
9 1, 2017, shall forfeit the increases described in subdivision (a).
10 (J) In its 2017-18MayRevision fiscal estimate, the department
11 shall describe the implementation of the increases provided
12 pursuant to this section.
13 SEC. 10. Section 4691.11 is added to the Welfare and
14 Institutions Code, to read:
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4691.11. Notwithstanding any other law or regulation, and to
the extent funds are appropriated in the annual BudgetAct for this
purpose, the department shall allocate no more than nine million
nine hundred thousand dollars ($9,900, 000) plus any associated
matching funds for the purpose of administrative expenses for
service providers. The department shall provide a rate increase
for the purpose of administrative expenses that shall apply only
to providers for which rates are set by the department or through
negotiations between the regional centers and service providers,
and to the rates paid for supported employment services, as
specified in subdivisions (a) and (b) of Section 4860, and vouchered
community-based services, as specified in paragraph (7) of
subdivision (c) of Section 4688.21. This increase shall be
determined using the information collected pursuant to subdivision
(b) of Section 4691.10. This increase shall be consistent for
providers within each service category and is intended to provide
comparable increases for administrative expenses across service
categories. This section shall not apply to those services for which
rates are determined by other entities, including, but not limited
to, the State Department of Health Care Services or the State
Department of Social Services, or are usual and customary.
SEC. 11. Section 4860 of the Welfare and Institutions Code is
amended to read:
4860. (a) (1) The hourly rate for supported employment
services provided to consumers receiving individualized services
. is thirty-four
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dollars and twenty-four cents ($34.24). The rate shall be adjusted
by the department pursuant to subdivision (a) of Sections 4691.10
and 4691.11.
(2) Job coach hours spent in travel to consumer worksites may
be reimbursable for individualized services only when the job
coach travels from the vendor's headquarters to the consumer's
worksite or from one consumer's worksite to another, and only
when the travel is one way.
(b) The hourly rate for group services
eighty two eents , is thirty-four dollars and twenty four
cents ($34.24), regardless of the number of consumers served in
the group. Consumers in a group shall be scheduled to start and
end work at the same time, unless an exception that takes into
consideration the consumer's compensated work schedule is
approved in advance by the regional center. The department, in
consultation with stakeholders, shall adopt regulations to define
the appropriate grounds for granting these exceptions. When the
number of consumers in a supported employment placement group
drops to fewer than the minimum required in subdivision (r) of
Section 4851, the regional center may terminate funding for the
group services in that group, unless, within 90 days, the program
provider adds one or more regional centers, or Department of
Rehabilitation -funded supported employment consumers to the
group. The rate shall be adjusted by the department pursuant to
subdivision (a) of Sections 4691.10 and 4691.11.
(c) Job coaching hours for group services shall be allocated on
a prorated basis between a regional center and the Department of
Rehabilitation when regional center and Department of
Rehabilitation consumers are served in the same group.
(d) When Section 4855 applies, fees shall be authorized for the
following:
(1) A three -hundred -sixty -dollar ($360) fee shall be paid to the
program provider upon intake of a consumer into a supported
employment program. No fee shall be paid if that consumer
completed a supported employment intake process with that same
supported employment program within the previous 12 months.
(2) A seven -hundred -twenty -dollar ($720) fee shall be paid
upon placement of a consumer in an integrated job, except that no
fee shall be paid if that consumer is placed with another consumer
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—23— AB 1
1 or consumers assigned to the same job coach during the same hours
2 of employment.
3 (3) A seven -hundred -twenty -dollar ($720) fee shall be paid after
4 a 90 -day retention of a consumer in a j ob, except that no fee shall
5 be paid if that consumer has been placed with another consumer
6 or consumers, assigned to the same job coach during the same
7 hours of employment.
8 (e) Notwithstanding paragraph (4) of subdivision (a) of Section
9 4648, the regional center shall pay the supported employment
10 program rates established by this section.
11 (J) The department, with regional center participation, shall
12 conduct an annual survey ofproviders, in a format determined by
13 the department, to collect the following information:
14 (1) The number of employment placements in the previous 12
15 months.
16 (2) Types of employment in which consumers are placed.
17 (3) The cost components ofthe rates in subdivisions (a) and (b),
18 including, but not limited to, the amount used for hourly wages of
19 job coaches, administration, and placement search costs.
20 (4) The number of hours each consumer works and the
21 consumer's hourly wage.
22 (5) Any other information determined by the department.
23 (g) In its 2017-18MayRevision fiscal estimate, the department
24 shall describe the results of the survey described in subdivision
25 (j).
26 SEC. 12. Section 4870 is added to the Welfare and Institutions
27 Code, to read:
28 4870. (a) To encourage competitive integrated employment
29 opportunities statewide for individuals with developmental
30 disabilities, the department shall establish guidelines and oversee
31 a program, to the extent funds are appropriated in the annual
32 Budget Act for this purpose, to increase paid internship
33 opportunities for individuals with developmental disabilities that
34 produce outcomes consistent with the individual program plan.
35 The department shall consult with the State Council on
36 Developmental Disabilities, regional centers, employers, supported
37 employmentprovider organizations, and clients'rights advocates,
38 to establish a program that shall be administered by community
39 service providers and that meets all of the following criteria:
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1 (1) Payments for internships shall not exceed ten thousand four
2 hundred dollars ($10,400) per year for each individual placed in
3 an internship.
4 (2) Placements shall be made into competitive, integrated work
5 environments.
6 (3) Placements shall be made into internships that develop skills
7 that will facilitate paid employment opportunities in the future.
8 (4) Regional centers shall increase awareness of these
9 internships to consumers outside ofcurrent employmentprograms
10 through outreach to consumers once the program is implemented,
11 as well as during the individual program plan process.
12 (b) The department shall require annual reporting by regional
13 centers and vendors that ensures program accountability and
14 achievement ofprogram goals. This shall include, but is not limited
15 to, all of the following:
16 (1) The number ofinterns placed who might not otherwise have
17 achieved the placement absent this internship program.
18 (2) Types of employment in which interns are placed.
19 (3) Length of internships.
20 (4) Demographic information of interns.
21 (5) Amount of each intern placement payment.
22 (6) Employment-related supports provided by another agency
23 or individual to the intern.
24 (7) Number of interns who subsequently entered paid
25 employment, including salary and benefit information.
26 (8) Any additional information, as determined by the department.
27 (c) The department shall include in its annual May Revision
28 fiscal estimate a description of the implementation of the program,
29 including, but not limited to, a description of the stakeholder
30 consultation, the data described in subdivision (b), aggregated by
31 regional center and statewide, and any recommendations for
32 program changes that may be necessary or desirable to maximize
33 program effectiveness and accountability.
34 (d) Consistent with the individual program plan, the program
35 shall increase sustained and appropriate competitive integrated
36 employment placements by providers of supported employment
37 services, as defined in subdivision (p) of Section 4851, as follows:
38 (1) A payment of one thousand dollars ($1, 000) to the supported
39 employment services provider for initial placements made on or
40 after July 1, 2016, in competitive integrated employment, as defined
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AB 1
1 in subdivision (o) of Section 4851 and subdivision (d) of Section
2 4868.
3 (2) An additional payment of one thousand two hundred fifty
4 dollars ($1,250) to the supported employment services provider
5 for an individual described in paragraph (1) who remains in
6 competitive integrated employment for six consecutive months.
7 (3) An additional payment ofone thousand five hundred dollars
8 ($1,500) to the supported employment services provider for an
9 individual described in paragraphs (1) and (2) who remains in
10 competitive integrated employment for 12 consecutive months.
11 (e) Regional centers shall annually report to the department
12 the payments for placements pursuant to subdivision (d). The
13 information shall be reported in a format determined by the
14 department, and shall include the number ofindividuals placed in
15 internships or other employment as described in this section each
16 year.
17 SEC. 13. Section 14105.075 is added to the Welfare and
18 Institutions Code, to read:
19 14105.075. (a) Notwithstanding any other law, for dates of
20 service on or after August 1, 2016, payments to intermediate care
21 facilities for the developmentally disabled that are licensed
22 pursuantto subdivision (e), (g), or (h) ofSection 1250 oftheHealth
23 and Safety Code, and to facilities providing continuous skilled
24 nursing care to developmentally disabled individuals pursuant to
25 the pilot project established by Section 14132.20, as determined
26 by the applicable methodology for setting reimbursement rates for
27 those facilities, shall be the reimbursement rates that were
28 applicable to those facilities in the 2008 09 rate year, increased
29 by 3.7 percent. Payments to the facilities pursuant to this section
30 shall also include the projected cost of complying with new state
31 or federal mandates to the extent applicable to the reimbursement
32 methodology associated with the type offacility.
33 (b) The director shall seek any necessary federal approvals to
34 implement this section. This section shall not be implemented until
35 the necessary federal approval is obtained, and only to the extent
36 federal financial participation is available. If, and only to the
37 extent, federal approval is obtained to implement this section, the
38 payments resulting from the application of subdivision (a) shall
39 be implemented retroactively to August 1, 2016, or any later
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1 effective date identified in the federal approval that is obtained,
2 as applicable.
3 SEC. 14. Section 14105.195 is added to the Welfare and
4 Institutions Code, to read:
5 14105.195. (a) Notwithstanding Sections 14105.191 and
6 14105.192, the department shall not seek to retroactively implement
7 the reductions and limitations to the reimbursement for services
8 provided by skilled nursing facilities that are distinct parts of
9 general acute care hospitals set forth in Sections 14105.191 and
10 14105.192 for dates of service on or after June 1, 2011, and on or
11 before September 30, 2013. For purposes of this section, "distinct
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part" has the same meaning as defined in Section 72041 of Title
22 of the California Code ofRegulations.
(b) The department shall not seek to recoup any overpayments
from skilled nursing facilities that are distinct parts of general
acute care hospitals resulting from the reductions and limitations
to the reimbursement for these facilities pursuant to Sections
14105.191 and 14105.192 for dates of service on or after June 1,
2011, and on or before September 30, 2013.
(c) Notwithstanding Chapter 3.5 (commencing with Section
11340) ofPart I ofDivision 3 of Title 2 of the Government Code,
the department may implement this section by means of provider
bulletins or notices, policy letters, or other similar instructions,
without taking regulatory action.
SEC. 15. (a) The sum of two hundred eighty-seven million
dollars ($287,000,000) is hereby appropriated from the General
Fund to the State Department ofDevelopmental Services to provide
all of the following, effective July 1, 2016:
(1) Twenty-nine million seven hundred thousand dollars
($29,700, 000) for regional centers for staff, in an allocation to be
determined by the department.
(2) One million four hundred thousand dollars ($1,400, 000) for
regional centers for administrative costs, in an allocation to be
determined by the department. This amount includes an amount
to be allocated by the departmentfor regional center clients'rights
advocates contracts pursuant to subdivision (b) of Section 4433.
(3) Nine million nine hundred thousand dollars ($9,900,000)
for administrative costs for service providers, in an allocation to
be determined by the department.
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AB 1
1 (4) One hundred sixty-nine million five hundred thousand dollars
2 ($169,500,000) for a rate increase for staff providing direct
3 services employed by a community-based provider organization,
4 in a manner to be determined by the department.
5 (5) A 5 -percent rate increase for supported and independent
6 living services.
7 (6) Twenty million dollars ($20,000,000) for competitive
8 integrated employment incentive payments.
9 (7) A 5 -percent rate increase for in-home and out -of -home
10 respite services.
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(8) A 5 -percent increase for transportation services.
(9) A three -dollar -and forty -two -cent ($3.42) per hour rate
increase for supported employment providers.
(10) Eleven million dollars ($11,000,000) for bilingual staff at
regional centers and implementing plans and recommendations
to address disparities.
(b) These funds shall be available for encumbrance until June
30, 2017, and available for expenditure until June 30, 2019.
SEC. 16. The increases in rates and payments provided for in
this act shall be effective July 1, 2016, and August 1, 2016, as
expressly provided in this act, unless otherwise provided in this
act.
SEGTION 1. It is the itttettt of the f7egislature to etitwt
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