Bill Text: CA SBX21 | 2015-2016 | Regular Session | Amended
Bill Title: Developmental services: funding.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Failed) 2016-03-10 - From committee without further action. [SBX21 Detail]
Download: California-2015-SBX21-Amended.html
BILL NUMBER: SBX2 1 AMENDED
BILL TEXT
AMENDED IN SENATE SEPTEMBER 3, 2015
AMENDED IN SENATE AUGUST 26, 2015
INTRODUCED BY Senator Beall
(Principal coauthors: Senators Monning and Pavley)
( Coauthors: Senators Block,
Hertzberg, Hueso, and Mendoza
)
JULY 2, 2015
An act to amend Sections 4648.4, 4652.5, 4681.3,
4681.6, 4688.21, 4689.8, 4691.9, and 4860, and to add Sections
4681.2, 4690.7, 4795, and 4796 to, the Welfare and Institutions Code,
relating to developmental services.
LEGISLATIVE COUNSEL'S DIGEST
SB 1, as amended, Beall. Developmental services: funding.
(1) 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. The annual Budget
Act also appropriates funds to the department to fund regional center
operations.
This bill would require the department, subject to an
appropriation by the Legislature for these purposes, to increase the
funding paid to a regional center for the regional center's operating
budget by 10%, and to increase funding to enable the regional center
and the regional center's purchase-of-service vendors to fund
certain costs related to minimum wage requirements. The bill would
also require the department to develop a 10-year financial
sustainability plan to ensure that the state's community-based
developmental services system effectively serves all individuals with
developmental disabilities.
(2) 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.
This bill would increase the rates established by existing law by
10%, as specified, and would require a 10% increase to the rates set
by the department and the rates negotiated between regional centers
and service providers, as specified.
(3) 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 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. Existing law exempts payments made using usual
and customary rates for services provided by regional centers from
these requirements.
This bill would instead require an entity to obtain only an
independent review report of its financial statements relating to
payments made by regional centers if it receives payments between
$250,000 and $2,000,000 from one or more regional centers and would
authorize these entities to apply for, and require the regional
center to grant, a 2-year exemption from this requirement if the
regional center does not find issues in the prior year's independent
review report that have an impact on regional center services. The
bill would also require an entity to obtain an independent audit of
its financial statements relating to payments made by regional
centers if it receives payments that are equal to or more than
$2,000,000 and would authorize these entities to apply for, and
require the regional center to grant, a 2-year exemption from the
audit requirement if the prior year's audit resulted in an unmodified
opinion, an unmodified opinion with additional communication, or a
qualified opinion with issues that are not material and pervasive.
The bill would require a regional center to notify the department of
any exemption it grants to an entity that receives a qualified
opinion report. The bill would also exempt social security benefit
payments from these requirements.
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 4648.4 of the Welfare and Institutions Code is
amended to read:
4648.4. (a) Notwithstanding any other law, commencing July 1,
2006, rates for services listed in paragraphs (1), (2), with the
exception of travel reimbursement, (3) to (8), inclusive, (10), and
(11) of subdivision (b), 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 change
shall be governed by subdivision (b).
(b) Notwithstanding any other law, except for subdivision (a), no
regional center may pay any provider of the following services or
supports a rate that is greater than the rate that is in effect on or
after 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:
(1) Supported living services.
(2) Transportation, including travel reimbursement.
(3) Socialization training programs.
(4) Behavior intervention training.
(5) Community integration training programs.
(6) Community activities support services.
(7) Mobile day programs.
(8) Creative art programs.
(9) Supplemental day services program supports.
(10) Adaptive skills trainers.
(11) Independent living specialists.
(c) Notwithstanding subdivisions (a) and (b), and subject to an
appropriation of funds by the Legislature for these purposes, a
regional center shall increase rates for services listed in
paragraphs (1), (2), with the exception of travel reimbursement, and
(3) to (11), inclusive, of subdivision (b), if the rates are
determined through a negotiation between the regional center and the
provider, by 10 percent above the levels that otherwise would have
been in effect on the effective date of the act that added this
subdivision, unless the rate for a service was increased pursuant to
another provision of the act that added this subdivision.
SEC. 2. Section 4652.5 of the Welfare
and Institutions Code is amended to read:
4652.5. (a) (1) An entity receiving that
receives payments from one or more regional centers shall
contract with an independent accounting firm for
to obtain an independent audit or review of its
financial statements relating to payments made by
regional centers, subject to all both
of the following:
(A) When If the amount received from
the regional center or regional centers during the entity's fiscal
year is more than or equal to two hundred fifty thousand dollars
($250,000) but less than five hundred thousand dollars
($500,000), but less than two million dollars
($2,000,000), the entity shall obtain an independent
audit or independent review report of its financial
statements for the period. Consistent with Subchapter 21 (commencing
with Section 58800) of Chapter 3 of Division 2 of Title 17
of the California Code of Regulations, this subdivision shall also
apply to work activity program providers receiving less than two
hundred fifty thousand dollars ($250,000).
(B) When If the amount received from
the regional center or regional centers during the entity's fiscal
year is equal to or more than five hundred thousand dollars
($500,000), two million dollars ($2,000,000),
the entity shall obtain an independent audit of its financial
statements for the period.
(2) This requirement does not apply to payments made using usual
and customary rates, as defined by Title 17 of the California Code of
Regulations, for services provided by regional centers.
centers or social security benefit
payments.
(3) This requirement does not apply to state and local
governmental agencies, the University of California, or the
California State University.
(b) An entity subject to subdivision (a) shall provide copies of
the independent audit or independent review report required by
subdivision (a), and accompanying management letters, to the
vendoring regional center within 30 days after completion of
the audit or review. nine months of the end of the
fiscal year for the entity.
(c) Regional centers receiving that
receive the audit or review reports required by subdivision (b)
shall review and require resolution by the entity for issues
identified in the report that have an impact on regional center
services. Regional centers shall take appropriate action, up to
termination of vendorization, for lack of adequate resolution of
issues.
(d) Regional centers shall notify the department of all qualified
opinion reports or reports noting significant issues that directly or
indirectly impact regional center services within 30 days after
receipt. Notification shall include a plan for resolution of issues.
(e) For purposes of this section, an independent review of
financial statements must shall be
performed by an independent accounting firm and shall cover, at a
minimum, all of the following:
(1) An inquiry as to the entity's accounting principles and
practices and methods used in applying them.
(2) An inquiry as to the entity's procedures for recording,
classifying, and summarizing transactions and accumulating
information.
(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.
(h) (1) An entity required to obtain an independent review report
of its financial statement pursuant to subparagraph (A) of paragraph
(1) of subdivision (a) may apply to the regional center for, and the
regional center shall grant, a two-year exemption from the
independent review report requirement if the regional center does not
find issues in the prior year's independent review report that have
an impact on regional center services.
(2) An entity required to obtain an independent audit of its
financial statements pursuant to subparagraph (B) of paragraph (1) of
subdivision (a) may apply to the regional center for an exemption
from the independent audit requirement, subject to both of the
following conditions:
(A) If the independent audit for the prior year resulted in an
unmodified opinion or an unmodified opinion with additional
communication, the regional center shall grant the entity a two-year
exemption.
(B) If the independent audit for the prior year resulted in a
qualified opinion and the issues are not material and pervasive, the
regional center shall grant the entity a two-year exemption. However,
the entity and the regional center shall continue to address issues
raised in this independent audit, regardless of whether the exemption
is granted.
(3) A regional center shall notify the department of any exemption
it grants to an entity that receives a qualified opinion report.
SEC. 3. Section 4681.2 is added to the
Welfare and Institutions Code , to read:
4681.2. Notwithstanding any other law, and subject to an
appropriation of funds by the Legislature for these purposes, 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 on the effective
date of the act that added this section.
SEC. 2. SEC. 4. Section 4681.3 of
the Welfare and Institutions Code is amended to read:
4681.3. (a) Notwithstanding any other provision of this article,
for the 1996-97 fiscal year, the rate schedule authorized by the
department in operation on June 30, 1996, shall be
increased based upon the amount appropriated in the Budget Act of
1996 for that purpose. The increase shall be applied as a percentage,
and the percentage shall be the same for all providers.
(b) Notwithstanding any other provision of this article, for the
1997-98 fiscal year, the rate schedule authorized by the department
in operation on June 30, 1997, shall be increased based upon the
amount appropriated in the Budget Act of 1997 for that purpose. The
increase shall be applied as a percentage, and the percentage shall
be the same for all providers.
(c) Notwithstanding any other provision of this article, for the
1998-99 fiscal year, the rate schedule authorized by the department
in operation on June 30, 1998, shall be increased commencing July 1,
1998, based upon the amount appropriated in the Budget Act of 1998
for that purpose. The increase shall be applied as a percentage, and
the percentage shall be the same for all providers.
(d) Notwithstanding any other provision of this article, for the
1998-99 fiscal year, the rate schedule authorized by the department
in operation on December 31, 1998, shall be increased January 1,
1999, based upon the cost-of-living adjustments in the Supplemental
Security Income/State Supplementary Program for the Aged, Blind, and
Disabled appropriated in the Budget Act of 1998 for that purpose. The
increase shall be applied as a percentage and the percentage shall
be the same for all providers.
(e) Notwithstanding any other provision of this article, for the
1999-2000 fiscal year, the rate schedule authorized by the department
in operation on June 30, 1999, shall be increased July 1, 1999,
based upon the amount appropriated in the Budget Act of 1999 for that
purpose. The increase shall be applied as a percentage and the
percentage shall be the same for all providers.
(f) In addition, commencing January 1, 2000, any funds available
from cost-of-living adjustments in the Supplemental Security
Income/State Supplementary Payment (SSI/SSP) for the 1999-2000 fiscal
year shall be used to further increase the community care facility
rate. The increase shall be applied as a percentage, and the
percentage shall be the same for all providers.
(g) Notwithstanding any other law, for the 2006-07 fiscal year,
the rate schedule in effect on June 30, 2006, shall be increased on
July 1, 2006, 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 Sections 4681.5 and 4681.6.
(h) Notwithstanding any other law, for the 2015-16 fiscal year,
the rate schedule and rates set by the department that are in effect
on June 30, 2015, shall be increased by 10 percent, subject to funds
specifically appropriated for this purpose. The increase shall be
applied as a percentage and the percentage shall be the same for all
providers. The increase required by this subdivision shall be in
addition to the rate changes required by Chapter 23 of the Statutes
of 2015.
SEC. 3. Section 4681.2 is added to the Welfare
and Institutions Code, to read:
4681.2. Notwithstanding any other law, and subject to an
appropriation of funds by the Legislature for these purposes, 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 on the effective
date of the act that added this section.
SEC. 4. SEC. 5. Section 4681.6 of
the Welfare and Institutions Code is amended to read:
4681.6. (a) Notwithstanding any other law, commencing July 1,
2008:
(1) A regional center shall not pay an existing residential
service provider, for services 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 for which 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) Notwithstanding subdivision (a), and subject to an
appropriation of funds by the Legislature for these purposes,
regional centers shall increase the rates paid to residential service
providers, for services for which rates are determined through a
negotiation between the regional center and the provider, by 10
percent above the levels that otherwise would have been in effect on
the effective date of the act that added this subdivision.
(e) 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.
(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. 5. SEC. 6. Section 4688.21 of
the Welfare and Institutions Code is amended to read:
4688.21. (a) The Legislature places a high priority on
opportunities for adults with developmental disabilities to choose
and customize day services to meet their individualized needs; have
opportunities to further the development or maintenance of employment
and volunteer activities; direct their services; pursue
postsecondary education; and increase their ability to lead
integrated and inclusive lives. To further these goals, a consumer
may choose a tailored day service or vouchered community-based
training service, in lieu of any other regional center vendored day
program, look-alike day program, supported employment program, or
work activity program.
(b) (1) A tailored day service shall do both of the following:
(A) Include an individualized service design, as determined
through the individual program plan (IPP) and approved by the
regional center, that maximizes the consumer's individualized choices
and needs. This service design may include, but may not be limited
to, the following:
(i) Fewer days or hours than in the program's approved day
program, look-alike day program, supported employment program, or
work activity program design.
(ii) Flexibility in the duration and intensity of services to meet
the consumer's individualized needs.
(B) Encourage opportunities to further the development or
maintenance of employment, volunteer activities, or pursuit of
postsecondary education; maximize consumer direction of the service;
and increase the consumer's ability to lead an integrated and
inclusive life.
(2) The type and amount of tailored day service shall be
determined through the IPP process, pursuant to Section 4646. The IPP
shall contain, but not be limited to, the following:
(A) A detailed description of the consumer's individualized
choices and needs and how these choices and needs will be met.
(B) The type and amount of services and staffing needed to meet
the consumer's individualized choices and needs, and unique health
and safety and other needs.
(3) The staffing requirements set forth in Section 55756 of Title
17 of the California Code of Regulations and subdivision (r) of
Section 4851 of this code shall not apply to a tailored day service.
(4) For currently vendored programs wishing to offer a tailored
day service option, the regional center shall vendor a tailored day
service option upon negotiating a rate and maximum units of service
design that includes, but is not limited to, the following:
(A) A daily or hourly rate and maximum units of service design
that does not exceed the equivalent cost of four days per week of the
vendor's current rate, if the vendor has a daily day program rate.
(B) A rate and maximum units of service design that does not
exceed the equivalent cost of four-fifths of the hours of the vendor'
s current rate, if the vendor has an hourly rate.
(5) The regional center shall ensure that the vendor is capable of
complying with, and will comply with, the consumer's IPP, individual
choice, and health and safety needs.
(6) For new programs wishing to offer a tailored day service
option, the regional center shall vendor a tailored day service
option upon negotiating a rate and maximum units of service design.
The rate paid to the new vendor shall not exceed four-fifths of the
temporary payment rate or the median rate, whichever is applicable.
(7) Notwithstanding any other law, and subject to an appropriation
of funds by the Legislature for these purposes, the rates paid to
tailored day service providers shall be increased by 10 percent above
the levels that otherwise would have been in effect on the effective
date of the act that added this paragraph.
(8) Effective July 1, 2011, and prior to the time of development,
review, or modification of a consumer's IPP, regional centers shall
provide information about tailored day service to eligible adult
consumers. A consumer may request information about tailored day
services from the regional center at any time and may request an IPP
meeting to secure those services.
(c) (1) A vouchered community-based training service is defined as
a consumer-directed service that assists the consumer in the
development of skills required for community integrated employment or
participation in volunteer activities, or both, and the assistance
necessary for the consumer to secure employment or volunteer
positions or pursue secondary education.
(2) Implementation of vouchered community-based training service
is contingent upon the approval of the federal Centers for Medicare
and Medicaid Services.
(3) Vouchered community-based training service shall be provided
in natural environments in the community, separate from the consumer'
s residence.
(4) A consumer, parent, or conservator vendored as a vouchered
community-based training service shall utilize the services of a
financial management services (FMS) entity. The regional center shall
provide information about available financial management services
and shall assist the consumer in selecting a FMS vendor to act as
coemployer.
(5) A parent or conservator shall not be the direct support worker
employed by the vouchered community-based training service vendor.
(6) If the direct support worker is required to transport the
consumer, the vouchered community-based training service vendor shall
verify that the direct support worker can transport the consumer
safely and has a valid California driver's license and proof of
insurance.
(7) (A) The rate for vouchered community-based training service
shall not exceed thirteen dollars and forty-seven cents ($13.47) per
hour. The rate includes employer-related taxes and all transportation
needed to implement the service, except as described in paragraph
(8). The rate does not include the cost of the FMS.
(B) Notwithstanding subparagraph (A), and subject to an
appropriation of funds by the Legislature for these purposes, the
rate described in subparagraph (A) shall be fourteen dollars and
eighty-two cents ($14.82) per hour.
(8) A consumer vendored as a vouchered community-based training
service shall also be eligible for a regional center-funded bus pass,
if appropriate and needed.
(9) Vouchered community-based training service shall be limited to
a maximum of 150 hours per quarter. The services to be provided and
the service hours shall be documented in the consumer's IPP.
(10) A direct support worker of vouchered community-based training
service shall be an adult who possesses the skill, training, and
experience necessary to provide services in accordance with the IPP.
(11) Effective July 1, 2011, and prior to the time of development,
review, or modification of a consumer's IPP, regional centers shall
provide information about vouchered community-based training service
to eligible adult consumers. A consumer may request information about
vouchered community-based training service from the regional center
at any time and may request an IPP meeting to secure those services.
(12) The type and amount of vouchered community-based training
service shall be determined through the IPP process pursuant to
Section 4646. The IPP shall contain, but not be limited to, the
following:
(A) A detailed description of the consumer's individualized
choices and needs and how these choices and needs will be met.
(B) The type and amount of services and staffing needed to meet
the consumer's individualized choices and unique health and safety
and other needs.
(d) The department may adopt emergency regulations for tailored
day service or vouchered community-based training service. The
adoption, amendment, repeal, or readoption of a regulation authorized
by this subdivision 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. A certificate of compliance for these implementing
regulations shall be filed within 24 months following the adoption of
the first emergency regulations filed pursuant to this subdivision.
SEC. 6. SEC. 7. Section 4689.8 of
the Welfare and Institutions Code is amended to read:
4689.8. (a) Notwithstanding any other law, commencing July 1,
2008:
(1) A regional center shall not pay an existing supported living
service provider, for services 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
supported living service provider, for services for which 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), and subject to an
appropriation of funds by the Legislature for these purposes,
regional centers shall increase the rates paid to supported living
service providers, for services for which rates are determined
through a negotiation between the regional center and the provider,
by 10 percent above the levels that otherwise would have been in
effect on the effective date of the act that added this subdivision.
SEC. 7. SEC. 8. Section 4690.7 is
added to the Welfare and Institutions Code, to read:
4690.7. (a) Notwithstanding
any other law, and subject to an appropriation of funds by the
Legislature for these purposes, 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 the effective
date of the act that added this section.
SEC. 8. SEC. 9. Section 4691.9 of
the Welfare and Institutions Code is amended to read:
4691.9. (a) Notwithstanding any other law, 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) Notwithstanding subdivision (a), and subject to an
appropriation of funds by the Legislature for these purposes,
regional centers shall increase the rates paid to service providers,
for services for which rates are determined through a negotiation
between the regional center and the provider, by 10 percent above the
levels that otherwise would have been in effect on the effective
date of the act that added this subdivision.
(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. SEC. 10. Section 4795 is
added to the Welfare and Institutions Code, to read:
4795. (a) The department shall, subject to an appropriation of
funds by the Legislature for these purposes, increase the funding
provided to a regional center for the regional center's operating
budget by 10 percent above the levels that otherwise would have been
in effect on the effective date of the act that added this section.
(b) The department shall, subject to an appropriation of funds by
the Legislature for these purposes, increase the funding provided to
a regional center to enable the regional center and regional center's
purchase-of-service vendors to fund all of the following costs
associated with minimum wage requirements:
(1) The costs to comply with a statewide minimum wage requirement.
(2) The costs to comply with minimum wage requirements enacted by
local governments that exceed the statewide minimum wage.
(3) The costs to increase compensation for exempt, salaried
employees to comply with wage orders issued by the Industrial Welfare
Commission or any other state regulatory agency.
(4) Any other wage adjustments that vendors are required to make
in response to minimum wage increases mandated by state or federal
statutes, regulations, or other authorities.
SEC. 10. SEC. 11. Section 4796 is
added to the Welfare and Institutions Code, to read:
4796. The department shall develop a 10-year financial
sustainability plan to ensure that the state's community-based
developmental services system effectively serves all individuals with
developmental disabilities.
SEC. 11. SEC. 12. Section 4860 of
the Welfare and Institutions Code is amended to read:
4860. (a) (1) (A) The hourly rate for supported employment
services provided to consumers receiving individualized services
shall be thirty dollars and eighty-two cents ($30.82).
(B) Notwithstanding subparagraph (A), and subject to an
appropriation of funds by the Legislature for these purposes, the
rate described in subparagraph (A) shall be thirty-three dollars and
ninety cents ($33.90).
(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) (1) The hourly rate for group services shall be thirty dollars
and eighty-two cents ($30.82), 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.
(2) Notwithstanding paragraph (1), and subject to an appropriation
of funds by the Legislature for these purposes, the rate described
in paragraph (1) shall be thirty-three dollars and ninety cents
($33.90).
(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) 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.
(B) Notwithstanding subparagraph (A), and subject to an
appropriation of funds by the Legislature for these purposes, the fee
described in subparagraph (A) shall be three hundred
ninety-six ninety six dollars ($396).
(2) (A) 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 or
consumers assigned to the same job coach during the same hours of
employment.
(B) Notwithstanding subparagraph (A), and subject to an
appropriation of funds by the Legislature for these purposes, the fee
described in subparagraph (A) shall be seven hundred
ninety-two ninety two dollars ($792).
(3) (A) A seven-hundred-twenty-dollar ($720) fee shall be paid
after a 90-day retention of a consumer in a job, except that no fee
shall be paid if that consumer has been placed with another consumer
or consumers, assigned to the same job coach during the same hours of
employment.
(B) Notwithstanding subparagraph (A), and subject to an
appropriation of funds by the Legislature for these purposes, the fee
described in subparagraph (A) shall be seven hundred
ninety-two ninety two dollars ($792).
(e) Notwithstanding paragraph (4) of subdivision (a) of Section
4648, the regional center shall pay the supported employment program
rates established by this section.
SEC. 12. SEC. 13. The rate increases
for developmental services required by this act shall supplement,
and not supplant, increases to those rates made by the Budget Act of
2015 and Chapter 23 of the Statutes of 2015.
