Existing law provides for the furnishing of utility services by public utilities, as defined, subject to the regulatory authority of the Public Utilities Commission, including the supplying of natural gas service by gas corporations.

This bill would authorize the commission to authorize a gas corporation to procure zero-carbon gas, hydrogen, as defined, or low-carbon hydrogen, as defined, to serve customers or for another purpose stated in an application filed by the gas corporation. The bill would authorize a gas corporation to recover in rates the reasonable cost of pipeline infrastructure developed to deliver and transport the zero-carbon gas. or low-carbon hydrogen. The bill would require the gas corporation to deliver any of that hydrogen procured from producers to end users through the pipeline system. The bill would authorize the State Air Resources Board, the commission, and the State Energy Resources Conservation and Development Commission to authorize the production of zero-carbon or low-carbon hydrogen for end uses. The bill would require zero-carbon or low-carbon hydrogen delivered to an electrical generating facility or end user through a common carrier pipeline or interstate pipeline to comply with specified requirements.

Existing law creates the Employment Development Department in the Labor and Workforce Development Agency and vests it with certain functions, including job creation and computation of the amount and duration of benefits. Existing law authorizes the Employment Development Department to provide specified information to specific agencies subject to any restrictions imposed by state and federal law, and provides that unauthorized disclosure of that information is a misdemeanor. Existing law establishes the Employment First Policy, which is the policy that opportunities for integrated, competitive employment be given the highest priority for working-age individuals with developmental disabilities, regardless of the severity of their disabilities.

This bill would authorize the Employment Development Department to disclose specified information to the State Department of Developmental Services to assist the State Department of Developmental Services in the implementation of the Employment First Policy. By expanding a crime with respect to unauthorized disclosure of information, this bill would impose a state-mandated local program. This bill would authorize the disclosure to authorized employees of the Employment Development Department of information and records obtained in the course of providing intake, assessment, and services to persons with developmental disabilities for purposes of the Employment First Policy.

The bill would authorize the Employment Development Department to seek reimbursement for the costs associated with disclosing this information from the State Department of Developmental Services.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law creates the Employment Development Department in the Labor and Workforce Development Agency and vests it with certain functions, including job creation and computation of the amount and duration of benefits. Existing law authorizes the Employment Development Department to provide specified information to specific agencies subject to any restrictions imposed by state and federal law. law, and provides that unauthorized disclosure of that information is a misdemeanor. Existing law establishes the Employment First Policy, which is the policy that opportunities for integrated, competitive employment be given the highest priority for working-age individuals with developmental disabilities, regardless of the severity of their disabilities.

This bill would authorize the Employment Development Department to disclose specified information to the State Department of Developmental Services, upon request, through information-sharing agreements or data interfaces Services to assist the State Department of Developmental Services in the implementation of the Employment First Policy and to support consumers in the achievement of competitive integrated employment. The bill would subject the disclosure of this information to various privacy laws. Policy. By expanding a crime under these provisions, with respect to unauthorized disclosure of information, this bill would impose a state-mandated local program.

The bill would authorize the Employment Development Department to seek reimbursement for the costs associated with disclosing this information from the State Department of Developmental Services.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law creates the Employment Development Department in the Labor and Workforce Development Agency and vests it with certain functions, including job creation and computation of the amount and duration of benefits. Existing law authorizes the Employment Development Department to provide specified information to specific agencies subject to any restrictions imposed by state and federal law. Existing law establishes the Employment First Policy, which is the policy that opportunities for integrated, competitive employment be given the highest priority for working-age individuals with developmental disabilities, regardless of the severity of their disabilities.

This bill would authorize the Employment Development Department to disclose specified information to the State Department of Developmental Services, upon request, through information-sharing agreements or data interfaces to assist the State Department of Developmental Services in the implementation of the Employment First Policy and to support consumers in the achievement of competitive integrated employment. The bill would subject the disclosure of this information to various privacy laws. By expanding a crime under these provisions, this bill would impose a state-mandated local program.

The bill would authorize the Employment Development Department to seek reimbursement for the costs associated with disclosing this information from the State Department of Developmental Services.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law creates the Employment Development Department in the Labor and Workforce Development Agency and vests it with certain functions, including job creation and computation of the amount and duration of benefits. Existing law authorizes the Employment Development Department to provide specified information to specific agencies subject to any restrictions imposed by state and federal law. Existing law establishes the Employment First Policy, which is the policy that opportunities for integrated, competitive employment be given the highest priority for working age working-age individuals with developmental disabilities, regardless of the severity of their disabilities.

This bill would authorize the Employment Development Department to disclose specified information to the State Department of Developmental Services, upon request, through information sharing information-sharing agreements or data interfaces to assist the State Department of Developmental Services in the implementation of the Employment First Policy and to support consumers in the achievement of competitive integrated employment. The bill would subject the disclosure of this information to various privacy laws. By expanding a crime under these provisions, this bill would impose a state-mandated local program.

The bill would authorize the Franchise Tax Board and the Employment Development Department to seek reimbursement for the costs associated with disclosing this information from the State Department of Developmental Services.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law authorizes the Franchise Tax Board to disclose tax information to various entities for specified purposes. Existing law provides that the release or other use of information received by a state governmental licensing entity pursuant to these provisions, except as authorized, is punishable as a misdemeanor.

Existing law creates the Employment Development Department in the Labor and Workforce Development Agency and vests it with certain functions, including job creation and computation of the amount and duration of benefits. Existing law authorizes the Employment Development Department to provide specified information to specific agencies subject to any restrictions imposed by state and federal law. Existing law establishes the Employment First Policy, which is the policy that opportunities for integrated, competitive employment be given the highest priority for working age individuals with developmental disabilities, regardless of the severity of their disabilities.

This bill would authorize the Franchise Tax Board to disclose specified information to the State Department of Developmental Services, upon request, through information sharing agreements or data interfaces to verify potential eligibility for the California Earned Income Tax Credit and assist the State Department of Developmental Services to support consumers in the application process. By expanding a crime under these provisions, this bill would impose a state-mandated local program.

This bill would authorize the Employment Development Department to disclose specified information to the State Department of Developmental Services, upon request, through information sharing agreements or data interfaces to assist the State Department of Developmental Services in the implementation of the Employment First Policy and to support consumers in the achievement of competitive integrated employment. The bill would subject the disclosure of this information to various privacy laws. By expanding a crime under these provisions, this bill would impose a state-mandated local program.

The bill would authorize the Franchise Tax Board and the Employment Development Department to seek reimbursement for the costs associated with disclosing this information from the State Department of Developmental Services.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

SENATE THIRD READING

STR Bill Id:

Author:(Mendoza)

As Amended Ver:

Majority vote

SENATE VOTE: 37-0

SUMMARY: Authorizes the sharing of data between the Employment Development Department (EDD) and the Department of Developmental Services (DDS) in order to further facilitate DDS's evaluation of the effectiveness of the Employment First Policy for individuals with developmental disabilities.

1. Adds to the list of allowable purposes for which the director of EDD is required to permit use of any information in his or her possession, as specified and to the extent permitted under applicable federal statutes and regulations: to enable DDS to obtain quarterly wage data of consumers served by DDS in order to monitor and evaluate employment outcomes to determine the effectiveness of the Employment First Policy.
2. Adds to the list of exemptions to current law requiring the confidentiality of all information and records obtained during the provision of services to individuals with developmental disabilities: disclosure to authorized personnel who are employed by EDD as necessary to enable EDD to provide the information required by provisions of this bill to DDS, as specified.
3. Requires EDD to maintain the confidentiality of any information shared by DDS to the same extent as if EDD acquired the information directly.

EXISTING LAW:

1. Establishes an entitlement to services for individuals with developmental disabilities under the Lanterman Developmental Disabilities Services Act (Lanterman Act). (Welfare and Institutions Code (Welfare and Institutions Code Section (WIC) 4500 et seq.)
2. Grants all individuals with developmental disabilities, among all other rights and responsibilities established for any individual by the United States Constitution and laws and the California Constitution and laws, the right to treatment and habilitation services and supports in the least restrictive environment. (WIC 4502)
3. Establishes a system of 21 nonprofit regional centers throughout the state to identify needs and coordinate services for eligible individuals with developmental disabilities and requires DDS to contract with regional centers to provide case management services and arrange for or purchase services that meet the needs of individuals with developmental disabilities, as defined. (WIC 4620 et seq.)
4. Requires the development of an Individual Program Plan (IPP) for each regional center consumer, which specifies services to be provided to the consumer, based on his or her individualized needs determination and preferences, and defines that planning process as the vehicle to ensure that services and supports are customized to meet the needs of consumers who are served by regional centers. (WIC 4512)
5. Establishes the state's Employment First Policy, whereby opportunities for integrated, competitive employment are required to be given the highest priority for working age individuals with developmental disabilities, regardless of the severity of their disabilities. (WIC 4869)
6. Defines "competitive employment" to mean work in the competitive labor market that is performed on a full- or part-time basis in an integrated setting and for which the employee is compensated at or above the minimum wage, but not less than the customary wage and level of benefits paid for the same or similar work performed by individuals who are not disabled. (WIC 4868 (d)(1))
7. Defines "integrated employment" to mean the engagement of an employee with a disability in a work setting usually found in the community, where interaction takes place between the employee and individuals without disabilities other than those who are providing services, to the same extent that individuals without disabilities in comparable positions interact with other persons. (WIC 4868 (d)(2))
8. Authorizes the executive board of the California Health Benefit Exchange to share information with relevant state departments necessary for the administration of the Exchange, consistent with the confidentiality provisions in federal law, as specified. (Government Code (GOV) 100504 (a)(8))
9. Establishes the California Right to Financial Privacy Act to limit the access of state and local government agencies to financial institution costumers' information. (GOV 7460 et seq.)
10. Requires the confidentiality of all information and records obtained during the provision of services to individuals with developmental disabilities, with limited exceptions, as specified. (WIC 4514)
11. Requires the director of EDD to permit the use of any information in his or her possession to the extent necessary for designated purposes including, but not limited to, providing state public employee retirement systems with earnings information, providing law enforcement agencies with certain information, enabling county administrators or their representatives to determine eligibility for locally provided general relief or assistance, and other activities, as specified. (Unemployment Insurance Code 1095)

FISCAL EFFECT: According to the Assembly Appropriations Committee on August 23, 2017, this bill may result in minor costs to DDS, likely in the low thousands of dollars, to reimburse EDD for information sharing costs, including administrative charges and fees.

COMMENTS:

Developmental services: Provision of services and supports to Californians with developmental disabilities is guided by the Lanterman Act (WIC Section 4500 et seq.). Consumers (i.e., individuals under the Act) are legally entitled to treatment and habilitation services and supports in the least restrictive environment. Lanterman Act services are designed to enable all consumers to live more independent and productive lives in the community.

"Developmental disability" means a disability that originates before an individual attains 18 years of age, is expected to continue indefinitely, and constitutes a substantial disability for that individual. It includes intellectual disabilities, cerebral palsy, epilepsy, and autism spectrum disorders (ASD). Other developmental disabilities are those disabling conditions similar to an intellectual disability that require treatment (i.e., care and management) similar to that required by individuals with an intellectual disability.

Direct responsibility for implementation of the Lanterman Act service system is shared by DDS and 21 regional centers, which are private nonprofit entities, established pursuant to the Lanterman Act, that contract with DDS to carry out many of the state's responsibilities under the Act. The 21 regional centers serve approximately 320,000 consumers, providing services such as residential placements, supported living services, respite care, transportation, day treatment programs, work support programs, and various social and therapeutic activities. Approximately 809 consumers reside at one of California's three Developmental Centers—and one state-operated, specialized community facility—which provide 24-hour habilitation and medical and social treatment services.

Services provided to people with developmental disabilities are outlined in an IPP, which is developed by the IPP team—including, among other individuals, the consumer, his or her legally authorized representative, and one or more regional center representatives—and is based on the consumer's needs and choices. The Lanterman Act requires that the IPP promote community integration and maximize opportunities for each consumer to develop relationships, be part of community life, increase control over his or her life, and acquire increasingly positive roles in the community. The IPP must give the highest preference to those services and supports that allow minors to live with their families and adults to live as independently as possible in the community.

Employment First Policy: California became the 12th state to adopt an Employment First Policy when it enacted AB 1041 (Chesbro), Chapter 677, Statutes of 2013. This policy, as outlined in Welfare and Institutions Code Section 4869 (a)(1), contained within the Lanterman Act, " is the policy of the state that opportunities for integrated, competitive employment shall be given the highest priority for working age individuals with developmental disabilities, regardless of the severity of their disabilities."

For transition-age youth and working age adults, IPP planning must consider the Employment First Policy. Pursuant to the Employment First Policy, integrated competitive employment – employment in a workplace where an individual with a disability works with people without disabilities, earns at least the minimum wage, and receives the same pay, benefits, and opportunities for promotion as workers without disabilities – is intended to be the first option considered by planning teams for working age individuals, although individuals may choose goals other than integrated competitive employment. DDS coordinates with the state Department of Rehabilitation (DOR) and the California Department of Education to deliver services.

Work services: In 2013, 12.5% of working age Californians with developmental disabilities were found to be employed, compared to 73.8% of the state's general population. For that same year, the median earnings of full-time/full-year California employees without a disability were $46,800 annually; for full-time/full-year California employees with a disability, median earnings were $41,500 per year. Meanwhile, the average yearly earnings for a DDS consumer were $6,490 (not including any unreported contract earnings).

The Work Services Section of DDS administers and oversees a number of services provided through regional centers and developmental centers to address employment needs of individuals with intellectual and developmental disabilities. "Supported Employment" services can be provided through the Habilitation Services Program or through DOR's vocational rehabilitation program. Supported Employment can involve individual or group placements, where a consumer might work in the community with support services and on-the-job training provided by job coaches, and is paid directly by the employer. "Work Activity Program" services are typically offered in a sheltered work setting, and include paid work, work adjustment, and supportive habilitation services; in a sheltered work setting, consumers are paid at a daily per capita rate based on productivity.

Individual Placement Supported Employment constitutes competitive integrated employment; according to a DDS compilation of data from 2013-14, only the 4,341 consumers in Individual Placement Supported Employment – (5.2%) of the almost 83,000 regional center clients served in day or employment services – were therefore engaged in competitive integrated employment. Another 5,729 consumers were served in Group Placement Supported Employment, and 10,036 were in Work Activity Programs (sheltered work settings). (Almost 63,000 other consumers were served in day programs and "look alike" day programs, typically in non-work settings.) Direction from the federal level – including pending changes to Medicaid Section 1915(c) waivers, known as Home and Community-Based Services (HCBS) waivers – indicates increased focus on ensuring that individuals with developmental disabilities are offered greater opportunity to obtain competitive, integrated employment.

Need for this bill: According to the author:

"California's Employment First Policy directs the state to make opportunities for integrated, competitive employment a clear priority. …[This bill] will help ensure this mandate is being properly carried out by providing the relevant state agencies with more detailed information about people with intellectual and developmental disabilities who are working, and information about their wages. By obtaining better data, the Employment First Committee can analyze progress and develop more effective strategies to improve employment opportunities for Californians with intellectual and developmental disabilities."

PRIOR LEGISLATION:

SB 577 (Pavley), Chapter 431, Statutes of 2014, required, contingent upon the receipt of federal funding, DDS to conduct a four-year demonstration project regarding the impacts of community-based vocational development services on employment outcomes for regional center consumers and on purchase-of-service costs for working-age adults.

AB 1041 (Chesbro), Chapter 677, Statutes of 2013, created a statewide Employment First Policy and set forth requirements related to the inclusion of employment opportunities and services in a regional center consumer's IPP.

AB 287 (Beall), Chapter 231, Statutes of 2009, required the State Council on Developmental Disabilities to establish a standing Employment First Committee to develop an Employment First Policy, and required the committee to report annually to the Legislature on its work and recommendations.

Analysis Prepared by: Daphne Hunt / HUM. S. / (916) 319-2089 FN: 0001596

Date of Hearing: August 23, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

SBPCA Bill Id:SB 433

Author:(Mendoza) – As Amended Ver:July 3, 2017

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

SUMMARY:

This bill allows the Employment Development Department (EDD) to share data with the Department of Developmental Services (DDS) to allow DDS to evaluate employment outcomes and determine the effectiveness of the state’s Employment First Policy. Specifically, this bill:

1. Enables DDS to obtain quarterly wage data of consumers served by DDS to monitor and evaluate employment outcomes, to determine the effectiveness of the Employment First Policy.
2. Provides that EDD must provide data only to the extent permitted under applicable federal law and regulation.
3. Authorizes DDS to disclose information and records to EDD as necessary to enable EDD to provide the required information.
4. Requires EDD to maintain the confidentiality of any information provided to it by DDS to the same extent as if EDD had acquired the information directly.

FISCAL EFFECT:

Minor costs to DDS, likely in the low thousands of dollars, to reimburse EDD for information sharing costs, including administrative charges and fees.

COMMENTS:

1. Purpose. This bill seeks to ensure the state’s “Employment First” mandate – which aims to help people with intellectual and developmental disabilities ((I/DD) find jobs – is being effectively carried out by allowing DDS to gather employment and wage information from EDD for people with I/DD. By allowing access to better data, the bill is designed to allow the state’s Employment First Committee to better analyze program outcomes and develop more effective strategies to improve employment opportunities for people with I/DD.

According to the author, this bill “will help improve employment opportunities for individuals with I/DD by allowing a more comprehensive stream of information to formulate effective strategies. According to the most recent DDS annual report, only 12.5% of working-age people with developmental disabilities are employed in California. This compares with 73.8% of the general population."

1. Background. DDS and the regional center system support about 252,200 working-age people with developmental disabilities, including intellectual disabilities. Services for people with I/DD are governed by the Lanterman Act which gives people with I/DD the right to treatment and habilitation services in the least restrictive environment. This allows people with I/DD to live more independent and productive lives in the community as compared to the routine institutionalization of people with I/DD, which occurred up until the Lanterman Act was passed in 1973.

In recent years, the Legislature has focused on providing better employment opportunities for people with I/DD. The state’s Employment First Policy, which was established by the Legislature in 2013, directs the state to make the creation of job opportunities for individuals with I/DD a clear priority. State law also directs the State Council on Developmental Disabilities to form a standing Employment First Committee to oversee effective employment first policies in California.

According to the most recent DDS report, in 2013 only 12.5% of working age Californians with developmental disabilities were found to be employed, compared to 73.8% of the state’s general population. For that same year, the median earnings of full-time/full-year California employees without a disability were $46,800 annually; for full-time/full-year California employees with a disability, median earnings were $41,500 per year. Meanwhile, the average yearly earnings for a DDS consumer were $6,490 (not including any unreported contract earnings).

This bill allows DDS to receive quarterly employment and wage data from EDD for people with I/DD, so that it can better analyze the progress of the Employment First Policy and develop better strategies to improve employment opportunities for individuals.

In addition to employment and wage data, EDD will also be able to share industry type and business names with DDS to help DDS understand in what types of jobs people with I/DD are working.

1. Prior legislation. SB 577 (Pavley), Chapter 431, Statutes of 2014, required, contingent upon the receipt of federal funding, DDS to conduct a four-year demonstration project regarding the impacts of community-based vocational development services on employment outcomes for regional center consumers and on purchase-of-service costs for working-age adults. Federal funding is pending with Centers for Medicare and Medicaid Services (CMS).

AB 1041 (Chesbro), Chapter 677, Statutes of 2013, created a statewide Employment First Policy and set forth requirements related to the inclusion of employment opportunities and services in a regional center consumer's IPP.

SB 287 (Beall), Chapter 231, Statutes of 2009, required the State Council on Developmental Disabilities to establish a standing Employment First Committee to develop an Employment First Policy, and required the committee to report annually to the Legislature on its work and recommendations.

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

Date of Hearing: July 11, 2017

ASSEMBLY COMMITTEE ON PRIVACY AND CONSUMER PROTECTION

Ed Chau, Chair

SBPCA Bill Id:SB 433

Author:(Mendoza) – As Amended Ver:July 3, 2017

SENATE VOTE: 37-0

SUBJECT: Developmental services: data exchange

SUMMARY: Allows the Employment Development Department (EDD) to share data with the Department of Developmental Services (DDS) to allow DDS to evaluate employment outcomes and determine the effectiveness of the state’s Employment First Policy. Specifically, this bill:

1. Enables DDS to obtain quarterly wage data of consumers served by DDS for the purpose of monitoring and evaluating employment outcomes and to determine the effectiveness of the Employment First Policy.
2. Provides that EDD shall provide data only to the extent permitted under applicable federal law and regulation.
3. Authorizes DDS to disclose information and records to EDD as necessary to enable EDD to provide the required information.
4. Requires EDD to maintain the confidentiality of any information provided to it by DDS to the same extent as if EDD had acquired the information directly.

EXISTING LAW:

1. Requires the Director of EDD to permit the use of any information in his or her possession to the extent necessary for designated purposes including, but not limited to, providing state public employee retirement systems with earnings information, providing law enforcement agencies with certain information, enabling county administrators or their representatives to determine eligibility for locally provided general relief or assistance, and other activities, as specified. (Unemployment Insurance Code Section 1095)
2. Establishes an entitlement to services for individuals with developmental disabilities under the Lanterman Developmental Disabilities Services Act (Lanterman Act). (Welfare and Institutions Code (WIC) Section 4500 et seq.)
3. Grants all individuals with developmental disabilities, among all other rights and responsibilities established for any individual by the United States Constitution and laws and the California Constitution and laws, the right to treatment and habilitation services and supports in the least restrictive environment. (WIC 4502)
4. Establishes a system of 21 nonprofit regional centers throughout the state to identify needs and coordinate services for eligible individuals with developmental disabilities and requires DDS to contract with regional centers to provide case management services and arrange for or purchase services that meet the needs of individuals with developmental disabilities, as defined. (WIC 4620 et seq.)
5. Requires the development of an Individual Program Plan (IPP) for each regional center consumer, which specifies services to be provided to the consumer, based on his or her individualized needs determination and preferences, and defines that planning process as the vehicle to ensure that services and supports are customized to meet the needs of consumers who are served by regional centers. (WIC 4512)
6. Establishes the state’s Employment First Policy, whereby opportunities for integrated, competitive employment are required to be given the highest priority for working age individuals with developmental disabilities, regardless of the severity of their disabilities. (WIC 4869)
7. Defines “competitive employment” to mean work in the competitive labor market that is performed on a full- or part-time basis in an integrated setting and for which the employee is compensated at or above the minimum wage, but not less than the customary wage and level of benefits paid for the same or similar work performed by individuals who are not disabled. (WIC 4868 (d)(1))
8. Defines “integrated employment” to mean the engagement of an employee with a disability in a work setting usually found in the community, where interaction takes place between the employee and individuals without disabilities other than those who are providing services, to the same extent that individuals without disabilities in comparable positions interact with other persons. (WIC 4868 (d)(2))
9. Authorizes the executive board of the California Health Benefit Exchange to share information with relevant state departments necessary for the administration of the Exchange, consistent with the confidentiality provisions in federal law, as specified. (Government Code Section (GC) 100504 (a)(8))
10. Establishes the California Right to Financial Privacy Act to limit the access of state and local government agencies to financial institution costumers’ information. (GC 7460 et seq.)

FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, any additional state costs are not significant, do not and will not require the appropriation of additional state funds, and will cause no significant reduction in revenues.

COMMENTS:

1. Purpose of the bill. This bill seeks to ensure the state’s “Employment First” mandate – which aims to help people with intellectual and developmental disabilities ((I/DD) find jobs – is being effectively carried out by allowing DDS to gather employment and wage information from EDD for people with I/DD. By allowing access to better data, the bill is designed to allow the state’s Employment First Committee to better analyze program outcomes and develop more effective strategies to improve employment opportunities for people with I/DD. This bill is sponsored by the State Council on Developmental Disabilities.
2. Author’s statement. According to the author, this bill “will help improve employment opportunities for individuals with I/DD by allowing a more comprehensive stream of information to formulate effective strategies. According to the most recent DDS annual report, only 12.5% of working-age people with developmental disabilities are employed in California. This compares with 73.8% of the general population."

“In 1969, the Lanterman Developmental Disabilities Services Act allowed people with developmental disabilities the right to services and support to enable them to live a more independent and typical life. Overtime, several laws and regulations have authorized a variety of service delivery models and funding sources to provide adequate support.”

1. Services for people with I/DD. DDS and the regional center system support about 252,200 working-age people with developmental disabilities, including intellectual disabilities. Services for people with I/DD are governed by the Lanterman Act which gives people with I/DD the right to treatment and habilitation services in the least restrictive environment, which allows people with I/DD to live more independent and productive lives in the community as compared to the routine institutionalization of people with I/DD, which occurred up until the Lanterman Act was passed in 1973.

“I/DD” means any one of a number of disabilities that originate before an individual reaches 18 years of age, is expected to continue indefinitely, and constitutes a substantial disability for that individual. It includes intellectual disabilities, cerebral palsy, epilepsy, and autism spectrum disorders. Other developmental disabilities are those disabling conditions similar to an intellectual disability that require treatment (i.e., care and management) similar to that required by individuals with an intellectual disability.

1. Employment for people with I/DD. In recent years, the Legislature has focused on providing better employment opportunities for people with I/DD. The state’s Employment First Policy, which was established by the Legislature in 2013, directs the state to make the creation of job opportunities for individuals with I/DD a clear priority. State law also directs the State Council on Developmental Disabilities to form a standing Employment First Committee to oversee effective employment first policies in California.

However, according to the most recent DDS report, in 2013 only 12.5% of working age Californians with developmental disabilities were found to be employed, compared to 73.8% of the state’s general population. For that same year, the median earnings of full-time/full-year California employees without a disability were $46,800 annually; for full-time/full-year California employees with a disability, median earnings were $41,500 per year. Meanwhile, the average yearly earnings for a DDS consumer were $6,490 (not including any unreported contract earnings).

This bill allows DDS to receive quarterly employment and wage data from EDD for people with I/DD, so that it can better analyze the progress of the Employment First Policy and develop better strategies to improve employment opportunities for individuals and therefore close the employment gap.

In addition to employment and wage data, EDD will also be able to share industry type and business names with DDS to help DDS understand in what types of jobs people with I/DD are working.

1. Recent amendments address privacy concerns. The most recent set of amendments revise and recast the bill to address concerns about what types of data EDD would be sharing under the bill and whether current law confidentiality and data security protections would apply. The bill, as amended, adds a provision to Section 1095 of the Unemployment Insurance Code, which carries with it an existing law mandate that any information collected in the administration of Section 1095 be kept confidential and not be made available for public disclosure. The prior version of the bill had proposed adding a new section of law, rather than amending Section 1095.
   
   The revised bill also narrows the data to be shared to quarterly wage data including industry and business codes, so that DDS can review the wage level, industry in which the person is employed, and the business name, if available. Under the bill as amended, EDD will not be permitted to share Social Security numbers or other sensitive personal information.
2. Arguments in support. The Association of Regional Center Agencies (ARCA) states in support: “Employment is one of the most important life goals for many people served in the regional center system. A better understanding of people’s progress towards that goal helps guide DDS, the regional centers, and advocacy groups in their ongoing efforts to improve employment outcomes. Data should drive the discourse. SB 433 will produce better data, a more informed discourse, and – ideally – more competitive integrated employment opportunities for people with developmental disabilities.”

Disability Rights California points out that “current [DDS] data does not allow it to assess employment outcomes by geography, disability type, and severity of disability, ethnicity, or age. In particular, there is a lack of data on the quality of employment for the people served and regional center consumers who do not receive day or employment services. Without better data, California cannot know how well it is implementing Employment First, where it is succeeding, or where it needs to improve.”

1. Related legislation. AB 462 (Thurmond) authorizes the Director of EDD to share specified information with the Mental Health Services Oversight and Accountability Commission (MHSOAC) to assist the MHSOAC in fulfilling its duties under the Mental Health Services Act. AB 462 is pending in the Senate Appropriations Committee.

AB 1275 (Irwin) requires CalVet to develop outcome and related indicators for veterans, for the purpose of assessing the status of veterans in California, for monitoring the quality of programs intended to serve those veterans, and to guide decision making on how to improve those services. AB 1275 is pending in the Senate Appropriations Committee.

1. Chaptering issues: This bill is currently in conflict with AB 462 (Thurmond) and AB 1275 (Irwin), which amend the same code sections as this bill.
2. Prior legislation. SB 577 (Pavley), Chapter 431, Statutes of 2014, required, contingent upon the receipt of federal funding, DDS to conduct a four-year demonstration project regarding the impacts of community-based vocational development services on employment outcomes for regional center consumers and on purchase-of-service costs for working-age adults.

AB 1041 (Chesbro), Chapter 677, Statutes of 2013, created a statewide Employment First Policy and set forth requirements related to the inclusion of employment opportunities and services in a regional center consumer's IPP.

SB 287 (Beall), Chapter 231, Statutes of 2009, required the State Council on Developmental Disabilities to establish a standing Employment First Committee to develop an Employment First Policy, and required the committee to report annually to the Legislature on its work and recommendations.

1. Double-referral. This bill was double-referred to the Assembly Human Services Committee, where it was heard on June 27, 2017, and passed on a 7-0 vote.

REGISTERED SUPPORT / OPPOSITION:

Support

State Council on Developmental Disabilities (sponsor)

Association of Regional Center Agencies

California Disability Services Association

Disability Rights California

Futures Explored

Opposition

None on file.

Analysis Prepared by: Jennie Bretschneider / P. & C.P. / (916) 319-2200

Date of Hearing: June 27 2017

ASSEMBLY COMMITTEE ON HUMAN SERVICES

Blanca Rubio, Chair

SBPCA Bill Id:SB 433

Author:(Mendoza) – As Amended Ver:June 20, 2017

SENATE VOTE: 37-0

SUBJECT: Developmental services: data exchange

SUMMARY: Adds to the list of allowable purposes for which the director of the Employment Development Department (EDD) is required to permit use of any information in his or her possession, as specified and to the extent permitted under applicable federal statutes and regulations: to enable the Department of Developmental Services (DDS) to obtain quarterly wage data of consumers served by DDS in order to monitor and evaluate employment outcomes to determine the effectiveness of the Employment First Policy.

EXISTING LAW:

1. Establishes an entitlement to services for individuals with developmental disabilities under the Lanterman Developmental Disabilities Services Act (Lanterman Act). (WIC 4500 et seq.)
2. Grants all individuals with developmental disabilities, among all other rights and responsibilities established for any individual by the United States Constitution and laws and the California Constitution and laws, the right to treatment and habilitation services and supports in the least restrictive environment. (WIC 4502)
3. Establishes a system of 21 nonprofit regional centers throughout the state to identify needs and coordinate services for eligible individuals with developmental disabilities and requires DDS to contract with regional centers to provide case management services and arrange for or purchase services that meet the needs of individuals with developmental disabilities, as defined. (WIC 4620 et seq.)
4. Requires the development of an Individual Program Plan (IPP) for each regional center consumer, which specifies services to be provided to the consumer, based on his or her individualized needs determination and preferences, and defines that planning process as the vehicle to ensure that services and supports are customized to meet the needs of consumers who are served by regional centers. (WIC 4512)
5. Establishes the state’s Employment First Policy, whereby opportunities for integrated, competitive employment are required to be given the highest priority for working age individuals with developmental disabilities, regardless of the severity of their disabilities. (WIC 4869)
6. Defines “competitive employment” to mean work in the competitive labor market that is performed on a full- or part-time basis in an integrated setting and for which the employee is compensated at or above the minimum wage, but not less than the customary wage and level of benefits paid for the same or similar work performed by individuals who are not disabled. (WIC 4868 (d)(1))
7. Defines “integrated employment” to mean the engagement of an employee with a disability in a work setting usually found in the community, where interaction takes place between the employee and individuals without disabilities other than those who are providing services, to the same extent that individuals without disabilities in comparable positions interact with other persons. (WIC 4868 (d)(2))
8. Authorizes the executive board of the California Health Benefit Exchange to share information with relevant state departments necessary for the administration of the Exchange, consistent with the confidentiality provisions in federal law, as specified. (GOV 100504 (a)(8))
9. Establishes the California Right to Financial Privacy Act to limit the access of state and local government agencies to financial institution costumers’ information. (GOV 7460 et seq.)
10. Requires the director of EDD to permit the use of any information in his or her possession to the extent necessary for designated purposes including, but not limited to, providing state public employee retirement systems with earnings information, providing law enforcement agencies with certain information, enabling county administrators or their representatives to determine eligibility for locally provided general relief or assistance, and other activities, as specified. (UIC 1095)

FISCAL EFFECT: Unknown.

COMMENTS:

Developmental services: Provision of services and supports to Californians with developmental disabilities is guided by the Lanterman Act (WIC § 4500 et seq.). Consumers (i.e., individuals under the Act) are legally entitled to treatment and habilitation services and supports in the least restrictive environment. Lanterman Act services are designed to enable all consumers to live more independent and productive lives in the community.

“Developmental disability” means a disability that originates before an individual attains 18 years of age, is expected to continue indefinitely, and constitutes a substantial disability for that individual. It includes intellectual disabilities, cerebral palsy, epilepsy, and autism spectrum disorders (ASD). Other developmental disabilities are those disabling conditions similar to an intellectual disability that require treatment (i.e., care and management) similar to that required by individuals with an intellectual disability.

Direct responsibility for implementation of the Lanterman Act service system is shared by DDS and 21 regional centers, which are private nonprofit entities, established pursuant to the Lanterman Act, that contract with DDS to carry out many of the state’s responsibilities under the Act. The 21 regional centers serve approximately 320,000 consumers, providing services such as residential placements, supported living services, respite care, transportation, day treatment programs, work support programs, and various social and therapeutic activities. Approximately 809 consumers reside at one of California’s three Developmental Centers—and one state-operated, specialized community facility—which provide 24-hour habilitation and medical and social treatment services.

Services provided to people with developmental disabilities are outlined in an IPP, which is developed by the IPP team—including, among other individuals, the consumer, his or her legally authorized representative, and one or more regional center representatives—and is based on the consumer’s needs and choices. The Lanterman Act requires that the IPP promote community integration and maximize opportunities for each consumer to develop relationships, be part of community life, increase control over his or her life, and acquire increasingly positive roles in the community. The IPP must give the highest preference to those services and supports that allow minors to live with their families and adults to live as independently as possible in the community.

Employment First Policy: California became the 12^th state to adopt an Employment First Policy when it enacted AB 1041 (Chesbro), Chapter 677, Statutes of 2013. This policy, as outlined in Welfare and Institutions Code Section 4869 (a)(1), contained within the Lanterman Act, “ is the policy of the state that opportunities for integrated, competitive employment shall be given the highest priority for working age individuals with developmental disabilities, regardless of the severity of their disabilities.”

For transition-age youth and working age adults, IPP planning must consider the Employment First Policy. Pursuant to the Employment First Policy, integrated competitive employment – employment in a workplace where an individual with a disability works with people without disabilities, earns at least the minimum wage, and receives the same pay, benefits, and opportunities for promotion as workers without disabilities – is intended to be the first option considered by planning teams for working age individuals, although individuals may choose goals other than integrated competitive employment. DDS coordinates with the state Department of Rehabilitation (DOR) and the California Department of Education to deliver services.

Work services: In 2013, 12.5% of working age Californians with developmental disabilities were found to be employed, compared to 73.8% of the state’s general population. For that same year, the median earnings of full-time/full-year California employees without a disability were $46,800 annually; for full-time/full-year California employees with a disability, median earnings were $41,500 per year. Meanwhile, the average yearly earnings for a DDS consumer were $6,490 (not including any unreported contract earnings).

The Work Services Section of DDS administers and oversees a number of services provided through regional centers and developmental centers to address employment needs of individuals with intellectual and developmental disabilities. “Supported Employment” services can be provided through the Habilitation Services Program or through DOR’s vocational rehabilitation program. Supported Employment can involve individual or group placements, where a consumer might work in the community with support services and on-the-job training provided by job coaches, and is paid directly by the employer. “Work Activity Program” services are typically offered in a sheltered work setting, and include paid work, work adjustment, and supportive habilitation services; in a sheltered work setting, consumers are paid at a daily per capita rate based on productivity.

Individual Placement Supported Employment constitutes competitive integrated employment; according to a DDS compilation of data from 2013-14, only the 4,341 consumers in Individual Placement Supported Employment – (5.2%) of the almost 83,000 regional center clients served in day or employment services – were therefore engaged in competitive integrated employment. Another 5,729 consumers were served in Group Placement Supported Employment, and 10,036 were in Work Activity Programs (sheltered work settings). (Almost 63,000 other consumers were served in day programs and “look alike” day programs, typically in non-work settings.) Direction from the federal level – including pending changes to Medicaid Section 1915(c) waivers, known as Home and Community-Based Services (HCBS) waivers – indicates increased focus on ensuring that individuals with developmental disabilities are offered greater opportunity to obtain competitive, integrated employment.

Need for this bill: According to the author:

“California’s Employment First Policy directs the state to make opportunities for integrated, competitive employment a clear priority. …[This bill] will help ensure this mandate is being properly carried out by providing the relevant state agencies with more detailed information about people with intellectual and developmental disabilities who are working, and information about their wages. By obtaining better data, the Employment First Committee can analyze progress and develop more effective strategies to improve employment opportunities for Californians with intellectual and developmental disabilities.”

Recommended amendments: In order to ensure that DDS can share information with EDD to facilitate data matching pursuant to this bill, committee staff recommends the following amendments to Section 4514 of the Welfare and Institutions Code:

4514. All information and records obtained in the course of providing intake, assessment, and services under Division 4.1 (commencing with Section 4400), Division 4.5 (commencing with Section 4500), Division 6 (commencing with Section 6000), or Division 7 (commencing with Section 7100) to persons with developmental disabilities shall be confidential. Information and records obtained in the course of providing similar services to either voluntary or involuntary recipients prior to 1969 shall also be confidential. Information and records shall be disclosed only in any of the following cases:

[Subdivisions (a) through (x) of WIC 4514 are omitted from these draft amendments for the sake of brevity.]

(y) To authorized personnel who are employed by the Employment Development Department as necessary to enable the Employment Development Department to provide the information required to be disclosed to the Department of Developmental Services under Section 1095, subdivision (ak) of the Unemployment Insurance Code.  The Employment Development Department shall maintain the confidentiality of any information provided to it by the Department of Developmental Services to the same extent as if the Employment Development had acquired the information directly.

PRIOR LEGISLATION:

SB 577 (Pavley), Chapter 431, Statutes of 2014, required, contingent upon the receipt of federal funding, DDS to conduct a four-year demonstration project regarding the impacts of community-based vocational development services on employment outcomes for regional center consumers and on purchase-of-service costs for working-age adults.

AB 1041 (Chesbro), Chapter 677, Statutes of 2013, created a statewide Employment First Policy and set forth requirements related to the inclusion of employment opportunities and services in a regional center consumer's IPP.

SB 287 (Beall), Chapter 231, Statutes of 2009, required the State Council on Developmental Disabilities to establish a standing Employment First Committee to develop an Employment First Policy, and required the committee to report annually to the Legislature on its work and recommendations.

DOUBLE REFERRAL. This bill has been double-referred. Should this bill pass out of this committee, it will be referred to the Assembly Privacy & Consumer Protection Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

Association of Regional Center Agencies

California Disability Services Association

Disability Rights California

Futures Explored, Inc.

State Council on Developmental Disabilities (SCDD) (sponsor)

Opposition

None on file.

Analysis Prepared by: Daphne Hunt / HUM. S. / (916) 319-2089

 THIRD READING  

Bill No: SB 433

Author:

:

Vote:

SENATE HUMAN SERVICES COMMITTEE: 4-0, 3/28/17

AYES: Wiener, Glazer, Newman, Nguyen

NO VOTE RECORDED: Berryhill

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT:

SOURCE: State Council on Developmental Disabilities

DIGEST: This bill authorizes data sharing between the Department of Developmental Services (DDS) and Employment Development Department (EDD) in order to assess and implement statewide employment goals for individuals with developmental disabilities.

ANALYSIS:

Existing law:

1. Establishes the Lanterman Developmental Disabilities Services Act, which states that California is responsible for providing an array of services and supports sufficiently complete to meet the needs and choices of each person with developmental disabilities, regardless of age or degree of disability, and at each stage of life, and to support their integration into the mainstream life of the community. (WIC 4500, et seq.)
2. Defines a “developmental disability” to mean a disability that originates before an individual attains 18 years of age which continues, or can be expected to continue, indefinitely and constitutes a substantial disability for that individual, including intellectual disability, cerebral palsy, epilepsy, and autism and related conditions, but excluding other handicapping conditions that are solely physical in nature. (WIC 4512)
3. Establishes a system of nonprofit Regional Centers, overseen by DDS, to provide fixed points of contact in the community for all persons with developmental disabilities and their families, to coordinate services and supports best suited to them throughout their lifetime. (WIC 4620)
4. Establishes an Individual Program Plan (IPP) and defines that planning process as the vehicle to ensure that services and supports are customized to meet the needs of consumers who are served by regional centers. (WIC 4512)
5. Establishes an individual habilitation services plan and specifies areas in which consumers must meet individual employment goals. (WIC 4853; WIC 4854)
6. Establishes the Employment First Policy which prioritizes opportunities for integrated, competitive employment for working age individuals with developmental disabilities, regardless of the severity of their disabilities in order to enable persons with developmental disabilities to approximate the pattern of everyday living available to people without disabilities of the same age, to support the integration into the mainstream life of the community, and to bring about more independent, productive, and normal lives for the persons served. (WIC 4869 (a)(1))
7. Defines competitive employment to mean work in the competitive labor market that is performed on a full-time or part-time basis in an integrated setting and for which an individual is compensated at or above the minimum wage, but not less than the customary wage and level of benefits paid by the employer for the same or similar work performed by individuals who are not disabled. (WIC 4868 (d))
8. Establishes information sharing and confidentiality requirements for state agencies. (GOV 100504(a)(8))
9. Authorizes the director of EDD to permit the use of any information in his or her possession to the extent necessary and may require reimbursement for all direct costs incurred in providing any and all information specified in this section for various purposes, including, but not limited to:
   1. To enable federal, state or local governmental departments or agencies to verify or determine entitlement of an applicant or a recipient of public social services when verification is directly connected to the administration of public social services.
   2. To provide any law enforcement agency with the name, address, telephone number, birth date, social security number, physical description, and names and addresses of present and past employers, of any victim, suspect, missing person, potential witness, or person for whom a felony arrest warrant has been issued, as specified.
   3. To provide public employee retirement systems in California with information relating to the earnings of any person who has applied for or is receiving a disability income, disability allowance, or disability retirement allowance, from a public employee retirement system, as specified.
   4. To enable federal, state, or local governmental departments or agencies to administer child support enforcement programs under Part D of Title IV of the federal Social Security Act.
   5. To provide DDS with wage and employer information that will assist in the collection of moneys owed by the recipient, parent, or any other legally liable individual for services and supports provided, as specified.
   6. To enable the Chancellor of the California Community Colleges to obtain quarterly wage data, on students who have attended one or more community colleges, to assess the impact of education on the employment and earnings of students, to conduct the annual evaluation of district-level and individual college performance in achieving priority educational outcomes, as specified. (UIC 1095)

This bill:

1. Adds a new section to Unemployment Insurance Code authorizing EDD to permit the use of employment information by DDS, upon request, through information sharing agreements or data interfaces to assist DDS in implementing the Employment First Policy, and to support consumers in achieving competitive integrated employment.
2. Limits disclosure of employment information to:
   1. Wages, identifying information, industry, and business names.
   2. Demographic information of any DDS consumer.
3. Authorizes imposition of a fine or penalty for the unauthorized use or disclosure of the information disclosed pursuant to this section by any deputy, agent, clerk, officer, or employee of any agency receiving this information.
4. Mandates that any information received from the EDD shall be subject to specified information sharing and confidentiality requirements.
5. Clarifies that this bill shall not be construed to supersede the requirements and protections of the California Right to Financial Privacy Act, as specified, or in any way modify any privacy and information security requirements and protections in federal or state law regarding protected health information or personally identifiable information, including, but not limited to, the federal Health Insurance Portability and Accountability Act of 1996, and other specified statutory measures that have the effect of, protecting individual privacy and information security.
6. Permits EDD to seek reimbursement from DDS for costs incurred in providing such information.

Background

Approximately 300,000 children and adults with developmental disabilities receive services under the state’s Lanterman Act, which entitles qualifying recipients to services and supports throughout their lifetimes. Virtually all of these consumers live in community settings. DDS is responsible for overseeing services, however direct coordination of services is the responsibility of 21 nonprofit regional centers.

A developmental disability is a condition that originates before age 18, can be expected to continue indefinitely, and constitutes a substantial impairment in three or more areas of life activity. These may include intellectual disability, Autism Spectrum Disorders, epilepsy, cerebral palsy and other related conditions.

Employment

As of December 2016, more than half of all regional center consumers were of working age – between ages 18 and 61. Nearly 1 in 5 consumers were between 22 and 31 years old, according to DDS-issued consumer characteristics data. In 2015, 13.6 percent of working-age consumers in the developmental services system worked and received wages; their average wage was $604 per month, according to DDS data. Statewide, 73.8 percent of working-age adults were employed.

There are a variety of ways for consumers to be supported in a work environment. Historically, regional centers have contracted with employment services programs to address the employment needs of individuals with developmental disabilities. Consumers are placed in jobs according to their skills, needs and choices, and provided support services on an individual basis or in a group, as needed. Ensuring that individuals with developmental disabilities have the opportunity and path to participate in competitive integrated employment is a priority of the state.

Individual and Group Employment

Work Activity Programs are employment services programs in a sheltered work environment for consumers who have acquired basic vocational and independent living skills. Consumers are paid at a daily per capita rate based on productivity. As of May 2015, there were approximately 9,600 consumers in work activity programs, according to DDS data. Often these workers make less than minimum wage.

Supported Employment Programs are community-based rehabilitation programs that focus on helping consumers obtain, retain or maintain employment in integrated settings either individually or in groups. Often supported employment includes a job coach that provides on-the-job services and training, and wages paid directly to the consumer by the employer. Supported employment can either be tailored to an individual, or performed with a group. According to data from DDS, as of May 2015, there were approximately 5,900 consumers in group supported employment and nearly 4,400 individual participants.

Competitive Integrated Employment

AB 287 (Beall, Chapter 231, Statutes of 2009) required that the State Council on Developmental Disabilities establish a standing Employment First Committee to identify strategies, best practices, and incentives, and to develop an Employment First Policy. The goal of the policy was to increase the number of people with developmental disabilities who are employed in integrated work, self-employment, and microenterprises, and the number of people earning at or above minimum wage. A subsequent report, released in 2011, found that 26.5 percent of working-age adults with developmental disabilities live below the federal poverty line compared with 13 percent of same-aged adults in the general population. Other findings included a need for additional supports for individuals to prepare for and maintain employment.^[1]

Four years later, AB 1041 (Chesbro, Chapter 677, Statutes of 2013) established the Employment First Policy, which mandates that opportunities for integrated competitive employment be given the highest priority for working-age individuals with developmental disabilities, regardless of the severity of their disabilities. It required the Employment First Committee of the State Council on Developmental Disabilities to identify existing sources of consumer data that can be matched with employment data, and to recommend goals for measuring employment participation and outcomes for various consumers within the developmental services system. Under the Employment First Policy, regional centers must provide consumers 16 years of age and older with options for integrated competitive employment, and services and supports, including postsecondary education, to enable the consumer to transition from school to work, and to achieve the outcomes of obtaining and maintaining integrated competitive employment.

California Competitive Integrated Employment Blueprint for Change

In December 2014, the state departments of Education, Rehabilitation and Developmental Services signed a memorandum of understanding to jointly identify improvements in the coordination and capacity of the service system for individuals with developmental disabilities. The goal is to assist more individuals with developmental disabilities in becoming employed in integrated settings at competitive wages, which is consistent with the state's Employment First Policy and other federal and state laws.^[2]

Federal policy direction

The Blueprint comes as the federal government is making key policy changes through its Workforce Innovation and Opportunity Act (WIOA) and a new Home and Community Based Services (HCBS) settings rule. Under the 2014 federal WIOA statute, the state must provide five types of pre-employment transition services to students with disabilities aged 16 through 21. The WIOA also substantially limits the state’s ability to facilitate sub-minimum wage work for people with developmental disabilities who are younger than age 24.

In January 2014, the federal Centers for Medicaid and Medicare Services published final regulations defining appropriate settings for individuals who receive federal HCBS funding, including more than 100,000 consumers of regional center services. The new HCBS settings rules take effect in 2019, and require individuals be integrated into their communities in work and home activities. The new guidelines are forcing modifications in state-run programs, including a focus on integrated, competitive employment outcomes.

Additionally, the Office of Disability Employment Policy, the US Department of Labor and the Administration on Intellectual and Developmental Disabilities have encouraged states to adopt the Employment First philosophy. Under this approach, publicly-financed systems are encouraged to align policies, services and fiscal reimbursements to ensure community integrated employment is the priority option for youth and adults with developmental disabilities.

Related/Prior Legislation

AB 1041 (Chesbro, Chapter 677, Statutes of 2013) established the Employment First Policy statewide.

SB 287 (Beall, Chapter 231, Statutes of 2009) required the State Council on Developmental Disabilities to create an Employment First Committee and a state plan and to provide annual Legislative updates on the plan.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 4/18/17)

State Council on Developmental Disabilities (source)

The Association of Regional Center Agencies

California Disability Services Association

Disability Rights California

Futures Explored, Inc.

OPPOSITION: (Verified 4/18/17)

None received

ARGUMENTS IN SUPPORT: According to the author, this bill will help improve employment opportunities for individuals with intellectual and developmental disabilities by allowing a more comprehensive stream of information to formulate effective changes.

Disability Rights California writes in support of the bill that the employment First Policy directs the state to make opportunities for integrated, competitive employment a clear priority. Collecting data from the EDD “will allow for a means to measure progress of competitive integrated employment implementation and to assist in developing effective strategies to improve employment outcomes for Californians with intellectual and developmental disabilities.”

Prepared by:

4/19/17 14:39:30

**** END ****

1. http://www.scdd.ca.gov/res/docs/pdf/Employment_First/2012%20EFC%20Annual%20Report%20Jan%2016%202013.pdf ↑

2. http://www.chhs.ca.gov/Pages/Competitive-Integrated-Employment-(CIE).aspx ↑

SENATE COMMITTEE ON HUMAN SERVICES

Senator Wiener, Chair

2017 - 2018 Regular

Bill No: SB 433

Subject: Developmental services: data exchange

SUMMARY

This bill authorizes data sharing between the Department of Developmental Services (DDS) and Employment Development Department (EDD) in order to assess and implement statewide employment goals for individuals with developmental disabilities.

ABSTRACT

Existing law:

1. Establishes the Lanterman Developmental Disabilities Services Act, which states that California is responsible for providing an array of services and supports sufficiently complete to meet the needs and choices of each person with developmental disabilities, regardless of age or degree of disability, and at each stage of life, and to support their integration into the mainstream life of the community. (WIC 4500, et seq.)
2. Defines a “developmental disability” to mean a disability that originates before an individual attains 18 years of age which continues, or can be expected to continue, indefinitely and constitutes a substantial disability for that individual, including intellectual disability, cerebral palsy, epilepsy, and autism and related conditions, but excluding other handicapping conditions that are solely physical in nature. (WIC 4512)
3. Establishes a system of nonprofit Regional Centers, overseen by DDS, to provide fixed points of contact in the community for all persons with developmental disabilities and their families, to coordinate services and supports best suited to them throughout their lifetime. (WIC 4620)
4. Establishes an Individual Program Plan (IPP) and defines that planning process as the vehicle to ensure that services and supports are customized to meet the needs of consumers who are served by regional centers. (WIC 4512)
5. Establishes an individual habilitation services plan and specifies areas in which consumers must meet individual employment goals. (WIC 4853; WIC 4854)
6. Establishes the Employment First Policy which prioritizes opportunities for integrated, competitive employment for working age individuals with developmental disabilities, regardless of the severity of their disabilities in order to enable persons with developmental disabilities to approximate the pattern of everyday living available to people without disabilities of the same age, to support the integration into the mainstream life of the community, and to bring about more independent, productive, and normal lives for the persons served. (WIC 4869 (a)(1))
7. Defines competitive employment to mean work in the competitive labor market that is performed on a full-time or part-time basis in an integrated setting and for which an individual is compensated at or above the minimum wage, but not less than the customary wage and level of benefits paid by the employer for the same or similar work performed by individuals who are not disabled. (WIC 4868 (d))
8. Establishes information sharing and confidentiality requirements for state agencies. (GOV 100504(a)(8))
9. Authorizes the director of EDD to permit the use of any information in his or her possession to the extent necessary and may require reimbursement for all direct costs incurred in providing any and all information specified in this section for various purposes, including, but not limited to:
   1. To enable federal, state or local governmental departments or agencies to verify or determine entitlement of an applicant or a recipient of public social services when verification is directly connected to the administration of public social services.
   2. To provide any law enforcement agency with the name, address, telephone number, birth date, social security number, physical description, and names and addresses of present and past employers, of any victim, suspect, missing person, potential witness, or person for whom a felony arrest warrant has been issued, as specified.
   3. To provide public employee retirement systems in California with information relating to the earnings of any person who has applied for or is receiving a disability income, disability allowance, or disability retirement allowance, from a public employee retirement system, as specified.
   4. To enable federal, state, or local governmental departments or agencies to administer child support enforcement programs under Part D of Title IV of the federal Social Security Act.
   5. To provide DDS with wage and employer information that will assist in the collection of moneys owed by the recipient, parent, or any other legally liable individual for services and supports provided, as specified.
   6. To enable the Chancellor of the California Community Colleges to obtain quarterly wage data, on students who have attended one or more community colleges, to assess the impact of education on the employment and earnings of students, to conduct the annual evaluation of district-level and individual college performance in achieving priority educational outcomes, as specified. (UIC 1095)

This bill:

1. Adds a new section to Unemployment Insurance Code authorizing EDD to permit the use of employment information by DDS, upon request, through information sharing agreements or data interfaces to assist DDS in implementing the Employment First Policy, and to support consumers in achieving competitive integrated employment.
2. Limits disclosure of employment information to:

• Information necessary to validate or make eligibility determination, including wages, identifying information, industry, and business names.
• Demographic information of any DDS consumer.

1. Authorizes imposition of a fine or penalty for the unauthorized use or disclosure of the information disclosed pursuant to this section by any deputy, agent, clerk, officer, or employee of any agency receiving this information.
2. Mandates that any information received from the EDD shall be subject to specified information sharing and confidentiality requirements.
3. Clarifies that this bill shall not be construed to supersede the requirements and protections of the California Right to Financial Privacy Act, as specified, or in any way modify any privacy and information security requirements and protections in federal or state law regarding protected health information or personally identifiable information, including, but not limited to, the federal Health Insurance Portability and Accountability Act of 1996, and other specified statutory measures that have the effect of, protecting individual privacy and information security.
4. Permits EDD to seek reimbursement from DDS for costs incurred in providing such information.

FISCAL IMPACT

This bill has not been analyzed by a fiscal committee.

BACKGROUND AND DISCUSSION

Purpose of the bill:

According to the author, this bill will help improve employment opportunities for individuals with intellectual and developmental disabilities by allowing a more comprehensive stream of information to formulate effective changes.

Supporters of the bill say that it is important for DDS to be able to access wage and employment information to assess whether the state’s employment initiatives are successful.

Developmental Services

Approximately 300,000 children and adults with developmental disabilities receive services under the state’s Lanterman Act, which entitles qualifying recipients to services and supports throughout their lifetimes. Virtually all of these consumers live in community settings. DDS is responsible for overseeing services, however direct coordination of services is the responsibility of 21 nonprofit regional centers.

A developmental disability is a condition that originates before age 18, can be expected to continue indefinitely, and constitutes a substantial impairment in three or more areas of life activity. These may include intellectual disability, Autism Spectrum Disorders, epilepsy, cerebral palsy and other related conditions.

Employment

As of December 2016, more than half of all regional center consumers were of working age – between ages 18 and 61. Nearly 1 in 5 consumers were between 22 and 31 years old, according to DDS-issued consumer characteristics data. In 2015, 13.6 percent of working-age consumers in the developmental services system worked and received wages; their average wage was $604 per month, according to DDS data. Statewide, 73.8 percent of working-age adults were employed.

There are a variety of ways for consumers to be supported in a work environment. Historically, regional centers have contracted with employment services programs to address the employment needs of individuals with developmental disabilities. Consumers are placed in jobs according to their skills, needs and choices, and provided support services on an individual basis or in a group, as needed. Ensuring that individuals with developmental disabilities have the opportunity and path to participate in competitive integrated employment is a priority of the state.

Individual and Group Employment

Work Activity Programs are employment services programs in a sheltered work environment for consumers who have acquired basic vocational and independent living skills. Consumers are paid at a daily per capita rate based on productivity. As of May 2015, there were approximately 9,600 consumers in work activity programs, according to DDS data. Often these workers make less than minimum wage.

Supported Employment Programs are community-based rehabilitation programs that focus on helping consumers obtain, retain or maintain employment in integrated settings either individually or in groups. Often supported employment includes a job coach that provides on-the-job services and training, and wages paid directly to the consumer by the employer. Supported employment can either be tailored to an individual, or performed with a group. According to data from DDS, as of May 2015, there were approximately 5,900 consumers in group supported employment and nearly 4,400 individual participants.

Competitive Integrated Employment

AB 287 (Beall, Chapter 231, Statutes of 2009) required that the State Council on Developmental Disabilities establish a standing Employment First Committee to identify strategies, best practices, and incentives, and to develop an Employment First Policy. The goal of the policy was to increase the number of people with developmental disabilities who are employed in integrated work, self-employment, and microenterprises, and the number of people earning at or above minimum wage. A subsequent report, released in 2011, found that 26.5 percent of working-age adults with developmental disabilities live below the federal poverty line compared with 13 percent of same-aged adults in the general population. Other findings included a need for additional supports for individuals to prepare for and maintain employment.^[1]

Four years later, AB 1041 (Chesbro, Chapter 677, Statutes of 2013) established the Employment First Policy, which mandates that opportunities for integrated competitive employment be given the highest priority for working-age individuals with developmental disabilities, regardless of the severity of their disabilities. It required the Employment First Committee of the State Council on Developmental Disabilities to identify existing sources of consumer data that can be matched with employment data, and to recommend goals for measuring employment participation and outcomes for various consumers within the developmental services system. Under the Employment First Policy, regional centers must provide consumers 16 years of age and older with options for integrated competitive employment, and services and supports, including postsecondary education, that are available to enable the consumer to transition from school to work, and to achieve the outcomes of obtaining and maintaining integrated competitive employment.

California Competitive Integrated Employment Blueprint for Change

In December 2014, the state departments of Education, Rehabilitation and Developmental Services signed a memorandum of understanding to jointly identify improvements in the coordination and capacity of the service system for individuals with developmental disabilities. The goal is to assist more individuals with developmental disabilities in becoming employed in integrated settings at competitive wages, which is consistent with the state's Employment First Policy and other federal and state laws.^[2]

Federal policy direction

The Blueprint comes as the federal government is making key policy changes through its Workforce Innovation and Opportunity Act (WIOA) and a new Home and Community Based Services (HCBS) settings rule. Under the 2014 federal WIOA statute, the state must provide five types of pre-employment transition services to students with disabilities aged 16 through 21. The Act also substantially limits the state’s ability to facilitate sub-minimum wage work for people with developmental disabilities who are younger than age 24.

In January 2014, the federal Centers for Medicaid and Medicare Services published final regulations defining appropriate settings for individuals who receive federal HCBS funding, including more than 100,000 consumers of regional center services. The new HCBS settings rules take effect in 2019, and require individuals be integrated into their communities in work and home activities. The new guidelines are forcing modifications in state-run programs, including a focus on integrated, competitive employment outcomes.

Additionally, the Office of Disability Employment Policy, the US Department of Labor and the Administration on Intellectual and Developmental Disabilities have encouraged states to adopt the Employment First philosophy. Under this approach, publicly-financed systems are encouraged to align policies, services and fiscal reimbursements to ensure community integrated employment is the priority option for youth and adults with developmental disabilities.

Related legislation:

AB 1041 (Chesbro, Chapter 677, Statutes of 2013) established the Employment First Policy statewide.

SB 287 (Beall, Chapter 231, Statutes of 2009) required the State Council on Developmental Disabilities to create an Employment First Committee and a state plan and to provide annual Legislative updates on the plan.

COMMENTS

Language in this bill mistakenly references “eligibility determination.” Staff recommends deleting this reference, as follows:

1095.5. (a)

(2) Employment information disclosed pursuant to this section shall be limited to the following:

(A) Information necessary to validate or make eligibility determination, including wages, Wages, identifying information, industry, and business names.

POSITIONS

Support:

California Disability Services Association

Futures Explored, Inc.

The Association of Regional Center Agencies

Oppose:

None.

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1. http://www.scdd.ca.gov/res/docs/pdf/Employment_First/2012%20EFC%20Annual%20Report%20Jan%2016%202013.pdf ↑

2. http://www.chhs.ca.gov/Pages/Competitive-Integrated-Employment-(CIE).aspx ↑