Under existing law, the Department of Rehabilitation is required to provide various services to individuals with physical or mental disabilities who are found to be eligible therefor, including independent living services. Existing law provides for the operation of independent living centers, which are private, nonprofit organizations that provide specified services to individuals with disabilities, in order to assist those individuals in their attempts to live fuller and freer lives outside institutions. Under existing law, the department has the responsibility and authority for the encouragement of the planning, developing, and funding of independent living centers.

Under existing law, each independent living center, except those centers which have been both established and maintained using specified federal funding as a base funding, is required to receive, to the extent funds are appropriated by the Legislature, at least $235,000 in base grant funds allocated by the department. Existing law authorizes these state funds to be replaced by reimbursements under the federal Supplemental Security Disability Insurance and the federal Supplemental Security Income programs, as specified.

This bill would delete the above provisions excluding the centers that were previously established and maintained with federal funding and would instead require each independent living center to receive at least $235,000 in base grant funds allocated by the department, to the extent funds are appropriated by the Legislature and allocated by the department to the independent living centers from reimbursements under the federal programs. The bill would prohibit the department from redirecting specified funds that support independent living centers to provide the funding for the base grant funds for centers that are newly eligible for the base grant funds pursuant to this bill. make related findings and declarations.

Under existing law, the Department of Rehabilitation is required to provide various services to individuals with physical or mental disabilities who are found to be eligible therefor, including independent living services. Existing law provides for the operation of independent living centers, which are private, nonprofit organizations that provide specified services to individuals with disabilities, in order to assist those individuals in their attempts to live fuller and freer lives outside institutions. The Under existing law, the department has the responsibility and authority for the encouragement of the planning, developing, and funding of independent living centers.

Under existing law, each independent living center, except those centers which have been both established and maintained using specified federal funding as a base funding, is required to receive, to the extent funds are appropriated by the Legislature, at least $235,000 in base grant funds allocated by the department. Existing law authorizes these state funds to be replaced by reimbursements under the federal Supplemental Security Disability Insurance and the federal Supplemental Security Income programs, as specified.

This bill would delete the above provisions excluding the centers that were previously established and maintained with federal funding, thereby making those centers eligible for the prescribed state funding. funding and would instead require each independent living center to receive at least $235,000 in base grant funds allocated by the department, to the extent funds are appropriated by the Legislature and allocated by the department to the independent living centers from reimbursements under the federal programs. The bill would prohibit the department from redirecting specified funds that support independent living centers to provide the funding for the base grant funds for centers that are newly eligible for the base grant funds pursuant to this bill.

Under existing law, the Department of Rehabilitation is required to provide various services to individuals with physical or mental disabilities who are found to be eligible therefor, including independent living services. Existing law provides for the operation of independent living centers, which are private, nonprofit organizations that provide specified services to individuals with disabilities, in order to assist those individuals in their attempts to live fuller and freer lives outside institutions. The department has the responsibility and authority for the encouragement of the planning, developing, and funding of independent living centers.

Under existing law, each independent living center, except those centers which have been both established and maintained using specified federal funding as a base funding, is required to receive, to the extent funds are appropriated by the Legislature, at least $235,000 in base grant funds allocated by the department.

This bill would delete the above provisions excluding the centers that were previously established and maintained with federal funding, thereby making those centers eligible for the prescribed state funding.

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

AB 2565 (Salas) - Independent Living Centers: state funding

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

AB 2565 would permit all independent living centers (ILCs), including three that were previously excluded, to receive $235,000 in base grant funding annually.

Fiscal Impact:

Ongoing costs to the Department of Rehabilitation (DOR) of $705,000 per year to provide three ILCs with $235,000 in base grant funding. (Federal/GF)

Background:

An ILC is a consumer‑controlled, community‑based, cross‑disability, nonresidential private nonprofit agency that is designed and operated within a local community by individuals with disabilities and provides an array of independent living services. There are 28 ILCs in California that serve at least 22,000 individuals per year. The centers are overseen and funded by DOR with total statewide funding of $20 million.

The ILCs have several different funding sources. Title VII of the Rehabilitation Act established a framework for the creation and funding of ILCs across the nation. Federal Title VII(c) moneys flow directly to ILCs based on specific contracted agreements. Each ILC receives a standard $70,000 grant for assistive technology, and some ILCs that have taken on additional responsibilities typically receive more Title VII(c) funding.

Existing state law provides that each ILC is required to receive at least $235,000 in base grant funding allocated by DOR, except those centers that have been established and maintained using Title VII(c) funding. Three ILCs in California (the Disability Resources Agency for Independent Living, the Independent Living Center of Kern County, and the Placer Independent Resources Services, Inc) were established with larger Title VII(c) grants instead of the state base funding which was provided to other ILCs. All California ILCs receive Title VII(c) grants of varying amounts ranging from $68,088 for Tri-County Independent Living, Inc. to $531,840 for Disability Resources Agency for Independent Living.

Though the three ILCs that are exempted from the state base grant receive larger federal grants than many of the other ILCs, because they are solely funded with federal funds, they receive among the least total funding of the 28 ILCs.

Proposed Law:

This bill would:

• Strike language excluding ILCs which have been established and maintained using federal funding under Title VII(c) of the federal Rehabilitation Act as their primary base grant from receiving base funding of $235,000 and requiring DOR to fund those ILCs with the difference of the funding from the federal VII(c) allocation and $235,000.
• Strike language that authorizes base funding for the ILCs allocated from the state general fund to be replaced by reimbursements from the federal Supplemental Security Disability Insurance and the Supplemental Security Income programs and replaces it with language that requires base funding amounts to be allocated to the ILCs from those federal funds.

Related Legislation:

SB 826 (Leno, Chapter 23, Statutes of 2016), the State Budget Act of 2016-17, among other things, allocates $705,000 in base allocations from the state general fund.

Staff Comments:

Funding for the additional $705,000 in base allocations was already addressed in the 2016-17 state budget. While the state budget provides for this funding from the general fund, this bill requires the allocation to come from federal reimbursement funding.

Federal Social Security Reimbursements, which regularly fluctuate, are already reserved for other DOR programs; therefore, redirection of federal Social Security Reimbursements from other programs would result in a reduction of vocational rehabilitation services provided through DOR.

-- END --

SENATE COMMITTEE ON HUMAN SERVICES

Senator McGuire, Chair

2015 - 2016 Regular

Bill No: AB 2565

Subject: Independent Living Centers: state funding

SUMMARY

This bill deletes provisions in current law that make an Independent Living Center (ILC) eligible for state funding only under certain circumstances, thereby permitting three of the state’s 28 ILCs to receive the same $235,000 in state base funding annually that the others receive.

ABSTRACT

Existing law:

1. Declares that individuals with disabilities comprise a large percentage of California’s total population and that action is necessary to assist these individuals in their attempts to live fuller and freer lives outside of institutions. Further declares that in order to achieve this, it is necessary to provide state funding to maintain the services provided by existing ILCs and, where feasible, encourage the establishment of new centers which provide services to individuals with disabilities, and to establish the Department of Rehabilitation (DOR) has responsibility and authority to encourage planning, developing and funding of ILCs. (WIC 19800)
2. Defines an ILC to be a private, nonprofit organization with a board of directors controlled by a majority of individuals with disabilities and staffed by persons trained to assist persons with disabilities in achieving social and economic independence. Further defines the duties and philosophy of an ILC. (WIC 19801)
3. Requires that each ILC, except those centers which have been both established and maintained using federal funding under the federal Rehabilitation Act of 1973 as their primary base grant, shall receive at least $235,000 in base grant funds allocated by DOR, as specified. Requires that DOR allocate to those centers with Title VII(c) base grant funds of less than $235,000 an amount that, when combined with the federal Title VII(c) grant, equals $235,000 (WIC 19806)
4. Permits state funds used to fund the base grant to be replaced by reimbursements under the Supplemental Security Disability Insurance (SSDI) and the Supplemental Security Income (SSI) programs, as defined, to the extent appropriated by the Legislature and allocated by the department to ILCs, as specified. (WIC 19806 (c))
5. Establishes funding formulas for dispersing incentive funds to ILCs, including the requirement that one grant formula is based on the amount of private funding an ILC has received, as specified. (WIC 19806 (d))
6. Prohibits any funding for the base grant be based on receipt of private funding to an ILC. (WIC 19806 (a))

This bill:

1. Makes a variety of uncodified Legislative findings and declarations including that independent living is a vested civil right under federal and state law, that it is a viable alternative to significantly more costly institutionalization in nursing homes and other settings, and that there currently is a large difference in the amount of funding that each of the California ILCs receives.
2. Strikes language excluding ILCs which have been established and maintained using federal funding under title VII(c) of the federal Rehabilitation Act as their primary base grant from receiving base funding of $235,000 from the DOR.
3. Strikes related language requiring DOR to fund those ILCs with the difference of the funding from the federal VII(c) allocation and $235,000.
4. Strikes language that permits base funding for the ILCs allocated from the state general fund to be replaced by reimbursements from the federal Supplemental Security Disability Insurance and the Supplemental Security Income programs and replaces it with language that requires base funding amounts be allocated to the ILCs from those federal funds.

FISCAL IMPACT

According to an analysis prepared by the Assembly Appropriations Committee, this bill will result in ongoing costs of $705,000 (Federal funds/GF) annually to provide three ILCs with $235,000 in base grant funding.

Appropriations staff also noted that in addition to an annual base state funding level of $235,000 (with the exception of the three ILCs), all 28 ILCs receive federal funding directly from the Administration for Community Living in the form of Title VII(c) grants. The total amount of federal funding California ILCs receive is approximately $7.7 million annually. However, there is a difference in the amount of federal funding that each ILC receives. The 28 ILCs share a total of $20.2 million dollars through state and federal funding annually, which is about $900 per individual receiving direct services

BACKGROUND AND DISCUSSION

Purpose of the bill:

According to the author, three of the state’s 28 ILCs are excluded from state base funding from the DOR. These ILCs serve a total of 10 counties and thousands of individuals and the author states at least two of the three centers suffer from insufficient staff to provide adequate services.

The author states that these three ILCs were founded after the enacting state statute and were excluded from the annual base allocation of $235,000. While the three received additional federal funding allocations from a different funding stream at the time they were established, the author said inequities persist and these three centers are at particular risk of federal funding loss because they do not have state base funding.

“Resolving this funding inequity requires a modest annual appropriation of $235,000 for each of the three ILCs,” the author states. “This would bring these centers up to the minimum base funding level.” The three ILCs that don’t receive state base funding are Independent Living Center of Kern County; Disability Resource Agency for Independent Living in Modesto, Stockton and Sonora; and Placer Independent Resource Services, serving Placer, El Dorado and Alpine counties.

The author further states that because the base funding is typically allocated from federal Social Security Income incentive payments that the state receives for successful job placements of individuals with disabilities, the state will not be paying for the additional base funding from General Fund.

Independent Living Centers (ILCs)

An ILC is a consumer-controlled, community-based, cross disability, nonresidential private nonprofit agency that is designed and operated within a local community by individuals with disabilities, according to DOR. In California, 28 ILCs each serve at least 22,000 individuals statewide per year with total statewide funding of $20 million.

Each center offers five core services that are mandated by the Rehabilitation Act of 1973, including cross-disability peer support, independent living skill development, advocacy and systems advocacy, information and referrals, assistive technology services and transition services. California added two core services: Personal assistance services and housing.

In order to be certified to become an ILC and to receive state and federal funding, DOR must affirm that 51 percent of the ILCs board is comprised of people with significant disabilities, the majority of decision makers in the organization are persons with disabilities and that specific core services are provided. The California Foundation for Independent Living Centers (CFILC), which represents 23 of the state’s 28 nonprofit ILCs, notes that there is “an enormous difference in the amount of funding” across all ILCs.

Placer Independent Resource Services

The Auburn-based Placer Independent Resource Services serves individuals in Alpine, El Dorado, and Placer Counties. According to the agency’s website, the ILC advocates for the rights of people with disabilities, educates the community about disability issues, empowers and provides services to persons with disabilities to live independent, productive lives. Any person with a disability is eligible for free services. According to documents provided by the CFILC, Placer received total funding of $455,790 in 2013/2014 and $314,504 in Title VII(c) funding.

Independent Living Center of Kern County

The Independent Living Center of Kern County was established more than 30 years ago. The center recently added two programs – an American Sign Language interpretation service, and a technology assistance program for older individuals who are blind. The ILC of Kern County said more than 30 percent of Kern County’s population lives with a disability. The organization’s website notes that more than 90 percent of the ILC’s staff is people with disabilities. According to documents provided by the CFILC, ILC of Kern County’s total grant allocation in 2013/ 2014 was $494,065, the third lowest of the 28 centers, just ahead of Placer. Kern’s ILC received $323,482 in Title VII(c) funding.

Disability Resource Agency for Independent Living (DRAIL)

DRAIL has been serving people with disabilities in Stanislaus County for 25 years, assisting more than 6,000 consumers to establish goals and objectives to achieve reach independence. DRAIL has provided more than 40,000 information and referral resources to consumers and the community in general. During the first two years of DRAIL, it was necessary to outreach to the community and to let the community know that services were available to people with all types of disabilities of all ages. According to the agency’s website, since 2001 DRAIL has transitioned 96 consumers from nursing homes into their own home saving the government $436,464 over twelve years.

The author notes that DRAIL has been forced to start a waiting list because it is cannot meet demand for services. According to documents provided by the CFILC, DRAIL received $734,000 in total funding in 2013/2014, and $516,369 in Title VII(c) funding.

Department of Rehabilitation

The ILCs are overseen and funded by the state DOR, which serves approximately 110,000 people annually with a total budget of approximately $435 million. About $350 million comes from federal sources, according to the agency’s 2015 annual report.

DOR’s primary focus is its vocational rehabilitation (VR) program, which provides job-seeking consumers with disabilities with support to prepare for, find and retain employment. VR services may include career assessment and counseling, help with job search, preparation with interview skills, independent living skills, training, career education and assistive technology. The VR program is not an entitlement; if demand exceeds the available VR slots, the state may institute an “Order of Selection,” per federal statute.

Funding streams

ILCs receive funding in several ways. Those centers with a base allocation from the state may receive $235,000 from the general fund, although typically the base funding in paid for through reimbursements from the federal Social Security Administration, which pays incentive funds to states for finding and maintaining a consumer in a job for nine months. State statute permits the federal reimbursement money to be used in lieu of general fund. Federal regulations say the reimbursement funds must be used for vocational rehabilitation but it is discretionary for the states to allocate.

According to data provided by the CFILC, total funding for ILCs in 2013/2014 ranged from $407,000 in Eureka’s Tri-County Independent Living Inc., center to $1.2 million at the Dayle McIntosh Center for the Disabled in Anaheim.

Federal Title VII(c) dollars flow directly to ILCs from the federal government based on specific contracted agreements for services. ILCs that have taken on additional responsibilities typically have more Title VII(c) funding. Each ILC receives a standard $70,000 grant for assistive technology. Seymour Incentive Grants are used to federally match fundraising dollars that each ILC raises. Funding through the Title VII(c) allocation is based on contracted service delivery obligations and ranges broadly from a low of $63,117 for Marin County to $526,672 allocated to Berkeley’s Center for Independent Living.

According to DOR, in fiscal year 2014-2015, the three centers without state base funding collectively provided services to 1,322 individuals from 10 counties. DOR notes that these three centers were established with large Title 7-C grants instead of the state base funding which was provided to the other ILCs. Today, DOR notes all ILCs receive Title VII-C grants of varying amounts. Because the federal government may award the VII-C funds based upon a variety of reasons, including on need and the compelling justification of an ILC, some ILCs receive more federal funding than others, including some of the 3 ILCs that are not eligible for the base funding under current law.

COMMENTS

Funding for the additional $705,000 in base allocations is already established in the 2016-2017 state budget (SB 826, Leno, 2016, item 5160-101-0001). The budget, however, provides for this funding from state general fund. The language of this bill alters the ongoing allocation of the base grant to require its allocation from the federal reimbursement funding. Should this bill move from this committee, the author may want to revisit whether to include the possibility of General Fund allocations if reimbursement funds are unavailable in future years.

PRIOR VOTES

POSITIONS

Support:

California State Independent Living Council

Cornelius Financial Group

Court Appointed Special Advocates of Kern County

Disability Rights California

Friends Outside

Golden Empire Transit District

Goodwill Industries of South Central California

Housing Authority of the County of Kern

Kern Travel

Knight’s Pumping and Portable Services, Inc.

La Perla Market

New Advances for People with Disabilities

Office of the Mayor of the City of Bakersfield/ The Bakersfield City Council

PETRO-LUD

Rent 1 One

The Bakersfield ARC

The California Association of Public Authorities

The California Foundation for Independent Living Centers

The City of Modesto

The Disability Resource Agency for Independent Living

The Housing Authority of the County of Kern

The Kern County Board of Supervisors

The Kern County Office of the National Multiple Sclerosis Society

The Mental Health Collaborative of Kern County

The Voiced Coalition

Oppose:

None.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 2565

Author:(Salas)

As Introduced Ver:

Majority vote

SUMMARY: Includes independent living centers (ILCs) that were previously excluded, due to receipt of funding under Title VII(c) of the federal Rehabilitation Act of 1973, among ILCs that are required to receive at least $235,000 in base grant funds, as specified.

EXISTING LAW:

1. Establishes the federal Rehabilitation Act, which, among other things, empowers individuals with disabilities to maximize employment, economic self-sufficiency, self-determination, independence, inclusion and integration into society through statewide workforce investment systems, independent living centers and services, research, training, demonstration projects and the guarantee of equal opportunity. (29 United States Code (U.S.C.) Section 701 et seq.)
2. Establishes the Department of Rehabilitation (DOR) within the California Health and Human Services Agency, and designates DOR the sole state agency charged with administration of the state plan for vocational rehabilitation services. (Welfare and Institutions Code (WIC) Section 19000 et seq.)
3. Requires DOR to oversee the Independent Living Services Program and the state's 28 ILCs for the purpose of helping people with disabilities live fuller and freer lives outside of institutions. (WIC Section 19751, 19800 et seq.)
4. Allocates base grant funding of $235,000 to each ILC, with the exception of those centers established and maintained using federal funding under Title VII(c) of the federal Rehabilitation Act of 1973. (WIC Section 19806)

FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill may result in ongoing costs of $705,000 (Federal funds/General Fund) annually to provide the three ILCs with $235,000 in base grant funding.

COMMENTS:

Department of Rehabilitation (DOR): DOR operates under the California Health and Human Services Agency and in accordance with the federal Rehabilitation Act of 1973, as amended by Title IV of the Workforce Innovation and Opportunity Act of 2014 and, as such, administers programs funded with federal and matching state dollars. Vocational rehabilitation services are funded with 78.7% federal dollars and 21.3% matching funds, part of which are provided by the state General Fund and part by public agencies through the DOR's cooperative program agreements. For every $1 in funds the state contributes, the DOR receives $4 in federal funds. The DOR's overall budget for the 2015-2016 fiscal year is $436 million; of that, $59 million is from the General Fund.

Independent Living Centers: Title VII of the Rehabilitation Act – Independent Living Services and Centers for Independent Living – established a framework for the creation and funding of ILCs across the nation. California currently has 28 ILCs which provide services to people with disabilities, enabling them to remain in their own homes and communities by supporting projects and activities carried out in a manner consistent with the principles of respect for individual dignity, personal responsibility, and self-determination. Additionally, ILCs support the pursuit of meaningful careers, based upon informed choice of individuals with disabilities. An ILC is a consumer-centered, community-based, non-residential, private non-profit entity that is designed and operated within a local community by individuals with disabilities. Currently California has 28 ILCs which serve approximately 100,000 California residents.

AB 204: In 1979, the State of California passed AB 204 (Bates), Chapter 191, Statutes of 1979, which authorized the Department of Rehabilitation to provide each ILC with $235,000 annually, with the exception of the three specific ILCs discussed in this bill, as they were already receiving large funding grants from the federal government.

Federally Funded ILCs: In 1984, three ILCs, Independent Living Center of Kern County (ILCKC), Disability Resource Agency for Independent Living (DRAIL), and Placer Independent Living Resources, applied directly for Title VII funding in order to meet the needs of their consumers. Because these particular ILCs received funding from the federal government and not the state, they were subject to the waxing and waning of Congressional appropriation of funds. The remaining ILCs were funded by the State (and some federal dollars), and as such received Cost of Living Adjustments (COLAs) over time such that there arose funding inequities between ILCs funded by both the state and ILCs funded solely by the federal government.

Today, DRAIL, ILCKC, and Placer Independent Living Resources are among the lowest-funded ILCs in the state, receiving an annual total in Title VII federal funds of $726,730, $481,750, and $444,001, respectively. Still, due to initially seeking federal funds instead of state funds, these three ILCs have larger federal grants than any other ILC that has since applied for and received federal funds in order to meet the needs of their consumers.

Need for this bill: According to the author's office, "By no fault of their own, these 3 centers have been excluded from receiving state funding. [This bill] corrects this inequity and creates parity between all centers improving their ability to operate and make long lasting positive impacts on the lives of those they serve."

PRIOR LEGISLATION:

AB 204 (Bates), Chapter 191, Statutes of 1979, provided state funding to maintain the services offered by existing independent living centers and encouraged the establishment of new centers to provide services to individuals with disabilities.

Analysis Prepared by: Kelsy Castillo / HUM. S. / (916) 319-2089 FN: 0003224

Date of Hearing: May 18, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 2565

Author:(Salas) – As Introduced Ver:February 19, 2016

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill includes independent living centers (ILCs) that were previously excluded, due to receipt of funding under Title VII(c) of the federal Rehabilitation Act of 1973, among ILCs that are required to receive at least $235,000 in base grant funds, as specified.

FISCAL EFFECT:

Ongoing costs of $705,000 (Federal funds/GF) annually to provide three ILCs with $235,000 in base grant funding.

Staff notes: In addition to an annual base state funding level of $235,000 (with the exception of the 3 ILCs), all 28 ILCs receive federal funding directly from the Administration for Community Living in the form of Title 7C grants. The total amount of federal funding California ILCs receive is approximately $7.7 million annually. However, there is a difference in the amount of federal funding that each ILC receives. The 28 ILCs share a total of $20.2 million dollars through state and federal funding annually, which is about $900 per individual receiving direct services.

COMMENTS:

1. Purpose. According to the author’s office, “By no fault of their own, these three centers have been excluded from receiving state funding. This bill corrects this inequity and creates parity between all centers improving their ability to operate and make long lasting positive impacts on the lives of those they serve.”
2. Background. The Department of Rehabilitation (DOR), which operates under the California Health and Human Services Agency and in accordance with the federal Rehabilitation Act of 1973, as amended by Title IV of the Workforce Innovation and Opportunity Act of 2014, administers programs funded with federal and matching state dollars. Vocational rehabilitation services are funded with 78.7% federal dollars and 21.3% matching funds, part of which are provided by the state General Fund and part by public agencies through DOR’s cooperative program agreements. For every $1 in funds the state contributes, DOR receives $4 in federal funds. The DOR’s overall budget for FY 2015-2016 is $436 million; of that, $59 million is from the General Fund.
3. Independent Living Centers: Title VII of the Rehabilitation Act established a framework for the creation and funding of ILCs across the nation. ILCs serve people who have physical, sensory, cognitive, and mental health disabilities. The state’s twenty-eight centers, serving approximately 100,000 California residents, help promote the social and economic achievements of individuals with disabilities by providing employment, housing, technology, and advocacy services.

Existing law provides that each independent living service is required to receive at least $235,000 in the base grant funds allocated by the department, except those centers which have been both established and maintained using specified federal funding as base funding. Three ILCs were established with federal funding and have therefore been excluded from receiving the annual $235,000 in state funding received by all other ILCs throughout the state. The affected ILCs include:

1. Independent Living Center of Kern County (ILCKC), which serves Kern County and receives $481,750 in federal funds;
2. Disability Resource Agency for Independent Living (DRAIL), which serves Amador, Calaveras, Tuolumne, Mariposa, Stanislaus, and San Joaquin Counties and receives $726,730 in federal funds; and
3. Placer Independent Living Resources, which serves Placer, El Dorado, and Alpine Counties and receives $441,001 in federal funds.

Although these three centers receive larger federal grants than any of the other ILCs, over time funding inequities have arisen because the three funded solely with federal funds have received fewer cost of living adjustments (COLAs). Today, they are among the lowest funded ILCs in the state.

1. Prior Legislation. AB 204 (Bates), Chapter 191, Statutes of 1979, authorized the Department of Rehabilitation to provide each ILC with $235,000 annually, with the exception of the three ILCs which were both established and maintained using specific federal funding as base funding.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: April 12, 2016

ASSEMBLY COMMITTEE ON HUMAN SERVICES

Susan Bonilla, Chair

ABPCA Bill Id:AB 2565 (

Author:Salas) – As Introduced Ver:February 19, 2016

SUBJECT: Independent Living Centers: state funding

SUMMARY: Includes independent living centers (ILCs) that were previously excluded, due to receipt of funding under Title VII(c) of the federal Rehabilitation Act of 1973, among ILCs that are required to receive at least $235,000 in base grant funds, as specified .

EXISTING LAW:

1. Establishes the federal Rehabilitation Act, which, among other things, empowers individuals with disabilities to maximize employment, economic self-sufficiency, self-determination, independence, inclusion and integration into society through statewide workforce investment systems, independent living centers and services, research, training, demonstration projects and the guarantee of equal opportunity. (29 U.S.C. 701 et seq.)
2. Establishes the Department of Rehabilitation (DOR) within the California Health and Human Services Agency, and designates DOR the sole state agency charged with administration of the state plan for vocational rehabilitation services. (WIC 19000 et seq.)
3. Requires DOR to oversee the Independent Living Services Program and the state's 28 ILCs for the purpose of helping people with disabilities live fuller and freer lives outside of institutions. (WIC 19751, 19800 et seq.)
4. Allocates base grant funding of $235,000 to each ILC, with the exception of those centers established and maintained using federal funding under Title VII(c) of the federal Rehabilitation Act of 1973. (WIC 19806)

FISCAL EFFECT: Unknown.

COMMENTS:

Department of Rehabilitation (DOR): DOR operates under the California Health and Human Services Agency and in accordance with the federal Rehabilitation Act of 1973, as amended by Title IV of the Workforce Innovation and Opportunity Act of 2014 and, as such, administers programs funded with federal and matching state dollars. Vocational rehabilitation services are funded with 78.7% federal dollars and 21.3% matching funds, part of which are provided by the state General Fund and part by public agencies through the DOR’s cooperative program agreements. For every $1 in funds the state contributes, the DOR receives $4 in federal funds. The DOR’s overall budget for the 2015-2016 fiscal year is $436 million; of that, $59 million is from the General Fund.

Independent Living Centers: Title VII of the Rehabilitation Act – Independent Living Services and Centers for Independent Living – established a framework for the creation and funding of ILCs across the nation. California currently has 28 ILCs which provide services to people with disabilities, enabling them to remain in their own homes and communities by supporting projects and activities carried out in a manner consistent with the principles of respect for individual dignity, personal responsibility, and self-determination. Additionally, ILCs support the pursuit of meaningful careers, based upon informed choice of individuals with disabilities. An ILC is a consumer-centered, community-based, non-residential, private non-profit entity that is designed and operated within a local community by individuals with disabilities. Currently California has 28 ILCs which serve approximately 100,000 California residents.

AB 204: In 1979, the State of California passed AB 204 (Bates), Chapter 191, Statutes of 1979, which authorized the Department of Rehabilitation to provide each ILC with $235,000 annually, with the exception of the three specific ILCs discussed in this bill, as they were already receiving large funding grants from the federal government.

Federally Funded ILCs: In 1984, three ILCs, Independent Living Center of Kern County (ILCKC), Disability Resource Agency for Independent Living (DRAIL), and Placer Independent Living Resources, applied directly for Title VII funding in order to meet the needs of their consumers. Because these particular ILCs received funding from the federal government and not the state, they were subject to the waxing and waning of Congressional appropriation of funds. The remaining ILCs were funded by the State (and some federal dollars), and as such received Cost of Living Adjustments (COLAs) over time such that there arose funding inequities between ILCs funded by both the state and ILCs funded solely by the federal government.

Today, DRAIL, ILCKC, and Placer Independent Living Resources are among the lowest-funded ILCs in the state, receiving an annual total in Title VII federal funds of $726,730, $481,750, and $444,001, respectively. Still, due to initially seeking federal funds instead of state funds, these three ILCs have larger federal grants than any other ILC that has since applied for and received federal funds in order to meet the needs of their consumers.

Need for this bill: According to the author’s office, “By no fault of their own, these 3 centers have been excluded from receiving state funding. [This bill] corrects this inequity and creates parity between all centers improving their ability to operate and make long lasting positive impacts on the lives of those they serve.”

Staff comments: It has been acknowledged that the ILC system as a whole is in need of additional funding in order to meet the needs of its consumers. AB 204 was initially passed in 1979 in order to provide base funding across the board and ensure foundational equity among ILCs. In order to ensure equitable funding across California’s 28 ILCs, it has been suggested that the State of California first consider all federal grants received by each ILC, and then appropriate State funds according to the needs of each ILC. While DRAIL, ILCKC and Placer Independent Living Resources are among the lowest-funded ILCs, some ILCs do receive less total funding annually, and others receive similar allocations; all would certainly benefit from additional funding, be they state or federal dollars. Most notably, Marin Center for Independent Living has an annual budget of $398,135, and Tri-County Independent Living Center, Inc., has an annual budget of $389,380; each of these ILCs receive the $235,000 state grant, but only receive federal funding of $69,793 and $68,010, respectively. Should this bill move forward, the author may wish to consider the effects of this bill on the remaining ILCs, and seek to address issues of equity across all 28 centers.

PRIOR LEGISLATION:

AB 204 (Bates), Chapter 191, Statutes of 1979, provided state funding to maintain the services offered by existing independent living centers and encouraged the establishment of new centers to provide services to individuals with disabilities.

REGISTERED SUPPORT / OPPOSITION:

Support

Bakersfield ARC

California Association of Public Authorities for IHSS

California Foundation for Independent Living Centers (CFILC)

California State Independent Living Council (SILC)

City of Modesto

Cornelius Financial Group

Court Appointed Special Advocates of Kern County

Disability Resource Agency for Independent Living

Friends Outside

Golden Empire Transit District

Goodwill Industries of South Central California

Housing Authority of the County of Kern

Kern County Board of Supervisors

Kern County Office of the National Multiple Sclerosis

Kern Travel

Knight’s Pumping & Portable Services, Inc.

La Perla Market

Mayor Harvey L. Hall, City of Bakersfield

Mental Health Collaborative of Kern County

New Advance for People with Disabilities

Petro-LUD

RENT 1 ONE

VOICED Coalition

2 individual

Opposition

None on file.

Analysis Prepared by: Kelsy C. Castillo / HUM. S. / (916) 319-2089