Developmental services.

This bill would authorize the department to make direct care purchases in individual amounts of less than $10,000 commencing with the 2026–27 fiscal year, as specified, for facilities operated by the department, and would require the department to establish and maintain a written policy and procedures manual to guide the implementation of these provisions. The bill would define "direct care purchases" to mean a good or service necessary for an individual's health, safety, or continuity of care, as specified.

(2) Existing law places various requirements on the department to report specified information to the Legislature, including reports on how the department will provide access to crisis services after the closure of a developmental center, the use of the department's employees in providing services in the community to assist in meeting the goal of successfully transitioning developmental center residents to community living, best practices for regional center administrative management and purchase of services, and the estimated amount of General Fund expenditures used to backfill federal funding as a result of the decertification of intermediate care facility units at the Sonoma Developmental Center.

This bill would remove those and other obsolete reporting requirements on the department.

(3) Existing law authorizes family home agencies to offer services and supports in family homes or family teaching homes, as defined. Existing law requires the department to promulgate regulations for family home agencies, family teaching homes, and family homes that include standards and requirements related to, among other things, rates of payment for family home agencies and approved family home providers.

This bill would authorize the department to establish a distinct service code and rate model for the family teaching home that is separate from the service code and rate model for the family home agency and that considers costs for housing, staffing, and census. If established by the department, the bill would require family home agencies that provide family teaching homes to use the service code and rate model for those family teaching homes.

(4) Existing federal law, known as Part C of the Individuals with Disabilities Education Act, generally provides funding for states for the purpose of operating a comprehensive statewide program of early intervention services for infants and toddlers with disabilities, from birth through 2 years of age, and their families. Part B of that federal act generally provides funding to states to provide public education available to children with disabilities from 3 to 5 years of age, inclusive.

Existing state law, the California Early Intervention Services Act, provides a statewide system of coordinated, comprehensive, family-centered, multidisciplinary, and interagency programs that are responsible for providing appropriate early intervention services and supports to all eligible infants and toddlers and their families. Existing law requires the State Department of Developmental Services, in collaboration with the State Department of Education, to plan, develop, implement, and monitor the statewide system of early intervention services, as specified. Existing law requires the department to serve as the lead agency responsible for the administration and coordination of the statewide system and makes the department responsible for various duties, as specified. Existing law requires the State Department of Education to be responsible for administering services and programs for infants with solely visual, hearing, and severe orthopedic impairments, as specified.

Under existing law, direct services for eligible infants and toddlers and their families are provided by regional centers and local educational agencies. Existing law requires the department and the State Department of Education to require regional centers and local educational agencies to designate a main point of contact for coordinating and completing the transition of child and family from Part C to Part B of the federal Individuals with Disabilities Education Act, as specified. Existing law authorizes the department, in consultation with the State Department of Education, to allocate funds to support family resource services, including, but not limited to, parent-to-parent support, information dissemination and referral, public awareness, family-professional collaboration activities, and transition assistance for families.

This bill would require the State Department of Education to enter into an interagency agreement with the State Department of Developmental Services to facilitate a seamless transition between services in Part C and under Part B of the federal Individuals with Disabilities Education Act and to collaborate with the State Department of Developmental Services as they develop and disseminate written directives for transition practices between those parts. The bill would revise and recast related provisions regarding local educational agencies and regional centers. The bill would authorize the department to, among other things, issue directives to local educational agencies and regional centers until regulations are adopted and would require the directives to be issued no later than June 30, 2029, as a condition to receive federal Part C grant funds. The bill would require regional centers to assess toddlers who qualify for early intervention services and are transitioning to or may be eligible for a state preschool program, as specified.

(5) Existing law establishes the Department of Rehabilitation (DOR), which provides individuals with disabilities with the tools to, among other things, maximize employment, independence, and economic and social self-sufficiency in the mainstream of society. Existing law designates DOR as the sole state agency with full power to supervise every phase of the administration of the state plan for vocational rehabilitation services to individuals with disabilities.

Existing law, the Lanterman Developmental Disabilities Services Act, requires the State Department of Developmental Services (the department) to contract with regional centers to provide services and support to individuals with developmental disabilities. Existing law requires a regional center consumer to be referred to a provider of habilitation services if they are determined to be in need of habilitation services, which is defined to mean community-based services purchased or provided for adults with developmental disabilities, including services provided under the Work Activity Program and the Supported Employment Program, to prepare and maintain them at their highest level of vocational functioning, or to prepare them for referral to vocational rehabilitation services. Existing law authorizes a regional center to vendor a new work activity or supported employment program after determining the capacity of the program to deliver effective services and assessing the ability of the program to comply with the requirements of CARF, the Commission on Accreditation of Rehabilitation Facilities. Existing law requires a regional center to monitor, evaluate, and audit habilitation services providers for program effectiveness using performance criteria that include, among other things, compliance with applicable CARF standards.

This bill would remove the requirement for a work activity program or supported employment program to comply with the requirements of CARF, the Commission on Accreditation of Rehabilitation Facilities, and would instead require a regional center to monitor, evaluate, and audit habilitation services providers for program effectiveness using, among other things, service standards established by the department. The bill would also require the department and DOR to develop an interagency agreement, with respect to the delivery of habilitation services and vocational rehabilitation programs, to create an integrated employment services system between DOR and regional centers, with the goals of having each individual experience uninterrupted services, minimized handoffs, and fewer barriers, and increase timely access to employment, as specified. The bill would, beginning December 1, 2026, require the department to semiannually report milestones on the development of the integrated employment services system on the department's internet website until the integrated employment services system is developed. The bill would also make related technical, nonsubstantive changes.

Under existing law, the services and supports to be provided to a regional center consumer are contained in an individual program plan (IPP), developed in accordance with prescribed requirements. Existing law requires the department to establish and implement a statewide Self-Determination Program, as defined, that is available in every regional center catchment area to provide participants and their families, within an individual budget, increased flexibility and choice and greater control over decisions, resources, and needed and desired services and supports to implement their IPP.

This bill would authorize individuals and families to voluntarily choose to receive specified services remotely until December 31, 2028, if remotely receiving those services or supports would effectively meet the needs identified through the planning team process. The bill would require providers to document the remote services each individual receives on a monthly basis. The bill would require the department to include specified information regarding remote services in quarterly updates to the Legislature beginning in March 2027, and to report to the Legislature no later than February 1, 2028, survey results regarding specified information about remote services. The bill would authorize the department to implement these provisions by means of written directives or similar instructions.

Existing law authorizes a consumer to choose a tailored day service or vouchered community-based training service, in lieu of, or in conjunction with, any other regional center vendored day program, look-alike day program, supported employment program, or work activity program. Existing law prohibits tailored day services from being delivered on the same day as any other regional center vendored day program, look-alike day program, supported employment program, or work activity program, unless certain conditions are met.

This bill would authorize tailored day services to be delivered on the same day as supported employment individual placement services.

Existing law prescribes the process for allocating specific federal financial participation funds, first by offsetting the costs to the department for the required criminal background check and other administrative costs and then authorizing the remaining funds be used by the department, in consultation with stake holders, to prioritize the use of funds to meet the needs of participants, including costs associated with independent facilitators, development of the participant's initial individual budget, and regional center operations. Existing law requires the establishment of local and statewide advisory committees to ensure the effective implementation of the program.

This bill would restrict the allocation of those federal financial participation funds to offsetting the costs to the department for the required criminal background check and other administrative costs, inclusive of support for the Statewide Self-Determination Advisory Committee. The bill would, commencing July 1, 2026, and ending June 30, 2030, require that up to $1,000,000 of specified reappropriated funds be made available to the department to meet the needs of participants, including costs associated with local community resource fairs and the development and delivery of standardized statewide training. Beginning on July 1, 2030, and subject to an appropriation of at least $1,000,000 for these purposes, the bill would require that those funds be made available to the department for those same activities.

(6) The Lanterman Developmental Disabilities Services Act authorizes regional centers to contract with agencies or individuals, also known as vendors, to assist consumers in securing their own homes and to provide consumers with the supports needed to live in their own homes, and lists the range of supported living services and supports to include, among other things, assistance in finding, modifying and maintaining a home and recruiting, training, and hiring individuals to provide personal care and other assistance. Existing law requires the contracts to include a provision requiring each regional center to render services in accordance with applicable state laws and regulations.

This bill would, notwithstanding any other law, require that hourly workers employed by a regional center vendor providing supported living services, as those terms are defined, be compensated for hours worked in excess of 40 hours per workweek at a rate of 112 times the employee's regular rate of pay.

The bill would require department-approved performance measures, as specified, to be incorporated into contracts between the state and regional centers, and would require the department to give consideration to the availability of regional center operations funding when establishing and revising these measures. The bill would also require the contracts to include a provision requiring each regional center to render services in accordance with applicable provisions of federal law and written directives from the department.

This bill would also state the intent of the Legislature to modernize the department's financial and case management information technology systems for use by regional centers through the development and implementation of the Life Outcomes Improvement System (LOIS), and would require LOIS to serve as the system used by all regional centers to improve the user experience, promote access, and manage eligibility and services for individuals and families who are applying for or receiving regional center services. The bill would prescribe requirements for regional centers to prepare for and assist the transition from their existing information technology systems to LOIS, as specified, and upon readiness of LOIS for implementation, would require each regional center to discontinue the use of all other case management and financial technology systems. The bill would also require the department to submit quarterly written updates to both the relevant budget subcommittees and policy committees of each house of the Legislature, as well as the Legislative Analyst's Office, on the planning for LOIS, and to submit to the Legislature a copy of the Post Implementation Evaluation Report for LOIS, as specified.

(7) The Lanterman Developmental Disabilities Services Act requires a regional center to post specified information on its internet website, and update the information no less frequently than once every 6 months, until the department determines that there is statewide compliance with the federal Home and Community-Based Services (HCBS) Final Rule, or January 1, 2025, whichever occurs first.

This bill would require the department, beginning July 1, 2026, to post that information on its internet website and update the information no less frequently than every 6 months to monitor compliance with the HCBS Final Rule.

Existing law provides that a consumer, or any representative acting on behalf of a consumer or consumers, who believes that a right to which a consumer is entitled has been abused, punitively withheld, or improperly or unreasonably denied by a regional center, state-operated facility, or service provider, may pursue a complaint and establishes a procedure for processing of those complaints. Pursuant to that procedure, existing law requires the initial referral of a complaint to be made to the director of the regional center, or the director of the state-operated facility, as applicable, and requires the complaint to be investigated and a proposed resolution sent within 20 working days of receiving the complaint. Existing law authorizes, if the complainant is not satisfied with the proposed resolution, the complainant to refer the complaint, in writing, to the Director of Developmental Services, who is required to issue a written administrative decision on the complaint within 45 days of its receipt.

This bill would make that procedure applicable only to complaints filed before February 1, 2027, and would establish a new procedure to apply to grievances filed on or after February 1, 2027. The bill would require, under that new procedure, grievances to be filed with the department and the department to, among other things, refer the grievance to the applicable regional center or state-operated facility. The bill would require the grievance to be reviewed within 5 days and would require the grievant to be given an opportunity to present evidence, information, or testimony and make legal and factual arguments related to their grievance. The bill would require the grievance reviewer to send, produce, and sign a resolution plan within 60 days of the date that the grievance was referred by the department, subject to extension, as specified. The bill would authorize the grievant to request a review of the resolution plan by the department, and would require the department to make a determination on it within 21 days. The bill would require the department to review a sample of resolution plans and annually post the deidentified results of that review, as well as certain additional information related to grievances, on its internet website. The bill would authorize the department to implement these provisions by means of written directives or similar instructions.

The bill would require the department to convene stakeholders and legislative staff by August 1, 2027, to receive input and feedback regarding implementation of these provisions, and to submit a report to the Legislature on the implementation of these provisions no later than December 1, 2027.

(8) Existing law requires the State Department of Developmental Services on or before March 1, 2019, to submit a rate study to specified committees of the Legislature regarding community-based services for individuals with developmental disabilities. Existing law requires the department to implement rate increases between April 1, 2022, and July 1, 2025, to raise service providers' rates based on a formula that takes into account the fully funded rate reflected in the rate models that were included in the rate study. Existing law requires the department, commencing on July 1, 2025, and every other year thereafter, subject to appropriation and the approval of federal funds, to review and update the rate models, as defined, per the cost inputs available at the time of the review. Existing law requires, in conjunction with the rate reform, the department to implement a quality incentive program that includes the development of a quality incentive payment structure for providers meeting quality measures or benchmarks, or both. Existing law requires the department to adopt regulations by no later than June 30, 2028.

This bill would exempt, operative through December 31, 2030, contracts and contract amendments to procure services necessary to implement the provisions above from the requirements of the Public Contract Code, the State Administrative Manual, and from approval by the Department of General Services. The bill would instead require the department to adopt regulations by no later than December 31, 2030.

This bill would require the department to continue and enhance robust ongoing technical assistance, training, and operational guidance to service providers and to use the data collected through the quality incentive program to understand and address provider capacity needs in the system and inform and develop the infrastructure necessary to track and achieve quality outcomes. The bill would also require the department to evaluate the reasons why some providers have been unable to access the quality incentive rate increment in the 2026–27 fiscal year and require the department and regional centers to support service providers with meeting the qualifying prerequisites to maximize access to the quality incentive rate increment in the 2027–28 fiscal year and ongoing, as specified.

(9) Existing law requires that all contracts entered into by a state agency for the acquisition of goods, services, construction, or performance of work or services by the state agency for or in cooperation with any person or public body, be approved by the Department of General Services, except as specified.

The bill would require the State Department of Developmental Services to issue and adjust funding allocations to the regional centers, and would specify that those funding allocations and adjustments may be done, at the department's discretion, by letter, contract, or contract amendment, and require that those funding allocations be consistent with, and subject to, funding appropriated in the annual Budget Act. The bill would also make those funding allocations and adjustments exempt from the Public Contract Code and the State Contracting Manual and not subject to the approval of the Department of General Services.

(10) Existing law states legislative intent to provide consistency and uniformity and promote equity within the administrative practices and services of regional centers. Under existing law, the services and supports to be provided to a regional center consumer are contained in an individual program plan, developed in accordance with prescribed requirements. Existing law requires regional centers to perform specified functions, including securing needed services and supports for an individual to implement their individual program plan, including pursuant to a vendorization or a contract.

The bill would require, no later than March 1, 2028, the department, in consultation with stakeholders, to issue guidance to regional centers on maintaining necessary quality assurance oversight of service providers, special incident reporting, provider directory structure, and rate controls while removing barriers to statewide accessibility of services. The bill would require service providers to give preference to providing services to individuals served by the service provider's initially vendorizing regional center.

Under this bill, effective January 1, 2027, a vendor would not be required to maintain a physical location within a regional center's service area unless a physical location is required for the delivery of services. The bill would authorize the department to repeal or amend any regulations necessary to implement this provision.

(11) Existing law limits the state's authority to contract only with agencies whose governing boards meet certain requirements, including the backgrounds of members of the board. Existing law requires no less than 50% of the members of the governing board to be persons with developmental disabilities or their parents or legal guardians and no less than 25% of the members of the governing board to be persons with developmental disabilities.

The bill would limit the state's authority to contract only with agencies whose governing boards meet, no later than January 1, 2028, additional requirements, including, among other things, that the board be composed of no more than 17 individuals with specified expertise, including California law, management, board governance, fiscal or financial, and developmental disability programs. The bill would require the board to complete trainings in specified subject areas, to appoint an advisory group, as specified, and to review the performance of the regional center executive director on an annual basis.

Existing law requires the governing board of each regional center to adopt and maintain a written policy requiring the board to review and approve any regional center contract of $250,000 or more before entering into the contract.

The bill, until July 1, 2030, would subject contracts of $350,000 or more to approval by the governing board of each regional center. The bill would increase this amount to $450,000 as of July 1, 2030, and would increase this amount by $50,000 every 5 years thereafter. The bill would exempt purchase of service authorizations from this requirement.

Existing law prohibits an attorney retained or employed by the governing board of a regional center from being an employee of the regional center to ensure the delivery of independent legal advice.

The bill would instead require, by no later than July 1, 2027, the governing board of a regional center to retain or employ an attorney to provide general legal advice and counsel. The bill would require the attorney to have at least 5 years of specified legal experience. The bill would require the attorney to be present at all regional center board meetings and executive committee meetings where final decisions are made, except as specified.

(12) Existing law authorizes the department to directly operate a regional center during the interim period between the termination of its contract with one governing board and the assumption of operating responsibility by a regional center contract with another governing board. Existing law prohibits the department from directly operating a regional center program for longer than 120 days before contracting with a new governing board.

The bill would remove the prohibition on the department from directly operating a regional center program for longer than 120 days before contracting with a new governing board. The bill would also authorize the department to operate a regional center during the interim period between governing boards through contract. The bill would require the department to notify the Joint Legislative Budget Committee every 6 months, as specified, until the transition to the new governing board is complete.

(13) The Budget Acts of 2023, 2024, and 2025 made appropriations related to Local Volunteer Advisory Committees.

This bill would reappropriate those funds and extend the period in which the reappropriated funds may be encumbered until June 30, 2030.

(14) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.