Bill Text: CA ABX23 | 2015-2016 | Regular Session | Introduced
Bill Title: Developmental services: provider rates: minimum wage.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Failed) 2016-03-15 - Died at Desk. [ABX23 Detail]
Download: California-2015-ABX23-Introduced.html
BILL NUMBER: ABX2 3 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Chu
(Coauthor: Assembly Member Roger Hernández)
JULY 16, 2015
An act to amend Sections 4681.6, 4691.6, and 4691.9 of the Welfare
and Institutions Code, relating to developmental services.
LEGISLATIVE COUNSEL'S DIGEST
AB 3, as introduced, Chu. Developmental services: provider rates:
minimum wage.
Existing law, 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 and their families.
Existing law requires the department to enter into contracts with
private nonprofit corporations to operate regional centers that
provide community services and support for consumers and their
families, including, but not limited to, residential placement.
Existing law sets forth the department's and the regional center's
authority to negotiate and set provider rates, and sets forth
certain limitations. Existing law authorizes prescribed provider rate
increases and prohibits others. Existing law, commencing July 1,
2014, increases the state minimum wage to no less than $9 per hour,
and commencing January 1, 2016, increases the state minimum wage to
no less than $10 per hour. Existing law authorizes an adjustment in
prescribed provider rates commencing July 1, 2014, as necessary to
adjust employee wages to meet that state minimum wage.
This bill would instead authorize an adjustment in prescribed
provider rates as necessary to adjust employee wages to meet the
state minimum wage law.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 4681.6 of the Welfare and Institutions Code is
amended to read:
4681.6. (a) Notwithstanding any other law or regulation,
commencing July 1, 2008:
(1) A regional center shall not pay an existing residential
service provider, for services where 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 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 department 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 residential
service providers regarding rates that are otherwise restricted
pursuant to subdivision (a), 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
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 subdivision (a), commencing July 1, 2015,
regional centers may negotiate a rate adjustment with residential
service providers regarding rates that are otherwise restricted
pursuant to subdivision (a), 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.
(d) For purposes of this section, "residential service provider"
includes Adult Residential Facilities for Persons with Special Health
Care Needs, as described in Section 4684.50.
(e) 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. 2. Section 4691.6 of the Welfare and Institutions Code is
amended to read:
4691.6. (a) Notwithstanding any other law or regulation,
commencing July 1, 2006, the community-based day program, work
activity program, and in-home respite service agency rate schedules
authorized by the department and in operation June 30, 2006, shall be
increased by 3 percent, subject to funds specifically appropriated
for this increase in the Budget Act of 2006. The increase shall be
applied as a percentage, and the percentage shall be the same for all
providers. Any subsequent increase shall be governed by subdivisions
(b), (c), (d), (e), (f), (g), (h), (i), and (j), 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 less than the
minimum wage established on and after July 1, 2014, by Section
1182.12 of the Labor Code, as amended by Chapter 351 of the
Statutes of 2013. Code. The rate adjustment
pursuant to this subdivision 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 constitute a general wage
enhancement for employees paid above the increased minimum wage.
(g) Notwithstanding any other law or regulation, commencing July
1, 2014, community-based day program and in-home respite services
agency providers with temporary payment rates set by the department
may seek unanticipated rate adjustments from the department due to
the impacts of the increased minimum wage as established by Section
1182.12 of the Labor Code, as amended by Chapter 351 of the
Statutes of 2013. Code. The rate adjustment
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 constitute a general wage enhancement for employees paid
above the increased minimum wage.
(h) Notwithstanding any other law or regulation, commencing
January 1, 2015, the in-home respite service agency rate schedule
authorized by the department and in operation 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
percentage, and the percentage shall be the same for all applicable
providers.
(i) Notwithstanding any other law or regulation, commencing July
1, 2015, the department may approve rate adjustments for a work
activity program that demonstrates to the department that the rate
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.
(j) Notwithstanding any other law or regulation, commencing July
1, 2015, community-based day program and in-home respite services
agency providers with temporary payment rates set by the department
may seek unanticipated rate adjustments from the department 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.
SEC. 3. Section 4691.9 of the Welfare and Institutions Code is
amended to read:
4691.9. (a) Notwithstanding any other law or regulation,
commencing July 1, 2008:
(1) A regional center shall not pay an existing service provider,
for services where 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
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 percentage, and the
percentage shall be the same for all applicable providers. As used in
this subdivision, both of the following definitions shall apply:
(1) "Personal assistance" is limited only to those services
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) Notwithstanding subdivision (a), commencing July 1, 2015,
regional centers may negotiate a rate adjustment with existing
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) 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.
