California 2017 2017-2018 Regular Session

California Assembly Bill AB1990 Amended / Bill

Filed 03/20/2018

                    Amended IN  Assembly  March 20, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1990Introduced by Assembly Member MathisFebruary 01, 2018 An act to amend Section 4417 4681.1 of the Welfare and Institutions Code, relating to developmental services. LEGISLATIVE COUNSEL'S DIGESTAB 1990, as amended, Mathis. Developmental services. services: community care facilities: rates.Under existing law, the Lanterman Developmental Disabilities Services Act, the State Department of Developmental Services is responsible for providing various services and supports to persons with developmental disabilities, and for ensuring the appropriateness and quality of those services and supports.Existing law requires the department to establish and maintain an equitable system of payment to providers of community living facilities of good quality for persons with developmental disabilities, and requires that system of payment to include provision for a rate to ensure that the provider can meet the special needs of persons with developmental disabilities and provide quality programs, as specified. Existing law requires the department to adopt regulations that specify rates for community care facilities serving persons with developmental disabilities, calculated on the basis of a cost model designed by the department that ensures that aggregate facility payments support the provision of services to each person, as prescribed. Existing law requires the department to provide the Legislature with annual community care facility rates, including any draft amendments to those regulations as required, and contingent upon an appropriation in the annual Budget Act, to adopt emergency regulations that establish the annual rates for community care facilities serving persons with developmental disabilities for each fiscal year. Existing law requires individual facilities to be held harmless for any reduction in aggregate facility payments caused solely by the change in reimbursement methodology during the first year of operation under the revised rate model.This bill would hold individual facilities harmless for reductions in aggregate facility payments caused by the change in reimbursement methodology indefinitely.Existing law vests in the State Department of Developmental Services jurisdiction over state hospitals referred to as developmental centers for the provision of residential care to individuals with developmental disabilities, and also requires the department to contract with regional centers to provide services and supports to individuals with developmental disabilities and their families.Existing law authorizes the department to perform various duties relating to the prevention, diagnosis, and treatment of persons with intellectual and developmental disabilities including disseminating educational information, providing advice, conducting educational and related work, and organizing, establishing, and maintaining community mental health clinics, as specified.This bill would make technical, nonsubstantive changes to those provisions.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NOYES  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 4681.1 of the Welfare and Institutions Code is amended to read:4681.1. (a) The department shall adopt regulations that specify rates for community care facilities serving persons with developmental disabilities. The implementation of the regulations shall be contingent upon an appropriation in the annual Budget Act for this purpose. These rates shall be calculated on the basis of a cost model designed by the department that ensures that aggregate facility payments support the provision of services to each person in accordance with his or her individual program plan and applicable program requirements. The cost model shall reflect cost elements that shall include, but are not limited to, all of the following:(1) Basic living needs include utilities, furnishings, food, supplies, incidental transportation, housekeeping, personal care items, and other items necessary to ensure a quality environment for persons with developmental disabilities. The amount identified for the basic living needs element of the rate shall be calculated as the average projected cost of these items in an economically and efficiently operated community care facility.(2) Direct care includes salaries, wages, benefits, and other expenses necessary to supervise or support the persons functioning in the areas of self-care and daily living skills, physical coordination mobility, and behavioral self-control, choice making, and integration. The amount identified for direct care shall be calculated as the average projected cost of providing the level of service required to meet each persons functional needs in an economically and efficiently operated community care facility. The direct care portion of the rate shall reflect specific service levels defined by the department on the basis of relative resident need and the individual program plan.(3) Special services include specialized training, treatment, supervision, or other services that a persons individual program plan requires to be provided by the residential facility in addition to the direct care provided under paragraph (2). The amount identified for special services shall be calculated for each individual based on the additional services specified in the persons individual program plan and the prevailing rates paid for similar services in the area. The special services portion of the rate shall reflect a negotiated agreement between the facility and the regional center in accordance with Section 4648.(4) Indirect costs include managerial personnel, facility operation, maintenance and repair, other nondirect care, employee benefits, contracts, training, travel, licenses, taxes, interest, insurance, depreciation, and general administrative expenses. The amount identified for indirect costs shall be calculated as the average projected cost for these expenses in an economically and efficiently operated community care facility.(5) Property costs include mortgages, leases, rent, taxes, capital or leasehold improvements, depreciation, and other expenses related to the physical structure. The amount identified for property costs shall be based on the fair rental value of a model facility that is adequately designed, constructed, and maintained to meet the needs of persons with developmental disabilities. The amount identified for property costs shall be calculated as the average projected fair rental value of an economically and efficiently operated community care facility.(b) The cost model shall take into account factors that include, but are not limited to, all of the following:(1) Facility size, as defined by the department on the basis of the number of facility beds licensed by the State Department of Social Services and vendorized by the regional center.(2) Specific geographic areas, as defined by the department on the basis of cost of living and other pertinent economic indicators.(3) Common levels of direct care, as defined by the department on the basis of services specific to an identifiable group of persons as determined through the individual program plan.(4) Positive outcomes, as defined by the department on the basis of increased integration, independence, and productivity at the aggregate facility and individual consumer level.(5) Owner-operated and staff-operated reimbursement, which shall not differ for facilities that are required to comply with the same program requirements.(c) The rates established for individual community care facilities serving persons with developmental disabilities shall reflect all of the model cost elements and rate development factors described in this section. The cost model design shall include a process for updating the cost model elements that address variables, including, but not limited to, all of the following:(1) Economic trends in California.(2) New state or federal program requirements.(3) Changes in the state or federal minimum wage.(4) Increases in fees, taxes, or other business costs.(5) Increases in federal supplemental security income/state supplementary program for the aged, blind, and disabled payments.(d) Rates established for persons with developmental disabilities who are also dually diagnosed with a mental health disorder may be fixed at a higher rate. The department shall work with the State Department of Health Care Services to establish criteria upon which higher rates may be fixed pursuant to this subdivision. The higher rate for persons with developmental disabilities who are also dually diagnosed with a mental health disorder may be paid when requested by the director of the regional center and approved by the Director of Developmental Services.(e) By January 1, 2001, the department shall prepare proposed regulations to implement the changes outlined in this section. The department may use a private firm to assist in the development of these changes and shall confer with consumers, providers, and other interested parties concerning the proposed regulations. By May 15, 2001, and each year thereafter, the department shall provide the Legislature with annual community care facility rates, including any draft amendments to the regulations as required. By July 1, 2001, and each year thereafter, contingent upon an appropriation in the annual Budget Act for this purpose, the department shall adopt emergency regulations that establish the annual rates for community care facilities serving persons with developmental disabilities for each fiscal year.(f) During the first year of operation under the revised rate model, individual Individual facilities shall be held harmless for any reduction in aggregate facility payments caused solely by the change in reimbursement methodology.SECTION 1.Section 4417 of the Welfare and Institutions Code is amended to read:4417.(a)The State Department of Developmental Services may:(1)Disseminate educational information relating to the prevention, diagnosis, and treatment of persons with intellectual disabilities.(2)Upon request, advise all public officers, organizations, and agencies interested in the developmental disabilities of the people of the state.(3)Conduct educational and related work that will tend to encourage the development of proper facilities for persons with developmental disabilities throughout the state.(b)The department may organize, establish, and maintain community mental health clinics for the prevention, early diagnosis, and treatment of intellectual disability. These clinics may be maintained only for persons not requiring institutional care, who voluntarily seek the aid of the clinics. These clinics may be maintained at the locations in the communities of the state designated by the director, or at any institution under the jurisdiction of the department designated by the director.(c)The department may establish rules and regulations necessary to carry out this section. This section does not authorize any form of compulsory medical or physical examination, treatment, or control of any person.

 Amended IN  Assembly  March 20, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1990Introduced by Assembly Member MathisFebruary 01, 2018 An act to amend Section 4417 4681.1 of the Welfare and Institutions Code, relating to developmental services. LEGISLATIVE COUNSEL'S DIGESTAB 1990, as amended, Mathis. Developmental services. services: community care facilities: rates.Under existing law, the Lanterman Developmental Disabilities Services Act, the State Department of Developmental Services is responsible for providing various services and supports to persons with developmental disabilities, and for ensuring the appropriateness and quality of those services and supports.Existing law requires the department to establish and maintain an equitable system of payment to providers of community living facilities of good quality for persons with developmental disabilities, and requires that system of payment to include provision for a rate to ensure that the provider can meet the special needs of persons with developmental disabilities and provide quality programs, as specified. Existing law requires the department to adopt regulations that specify rates for community care facilities serving persons with developmental disabilities, calculated on the basis of a cost model designed by the department that ensures that aggregate facility payments support the provision of services to each person, as prescribed. Existing law requires the department to provide the Legislature with annual community care facility rates, including any draft amendments to those regulations as required, and contingent upon an appropriation in the annual Budget Act, to adopt emergency regulations that establish the annual rates for community care facilities serving persons with developmental disabilities for each fiscal year. Existing law requires individual facilities to be held harmless for any reduction in aggregate facility payments caused solely by the change in reimbursement methodology during the first year of operation under the revised rate model.This bill would hold individual facilities harmless for reductions in aggregate facility payments caused by the change in reimbursement methodology indefinitely.Existing law vests in the State Department of Developmental Services jurisdiction over state hospitals referred to as developmental centers for the provision of residential care to individuals with developmental disabilities, and also requires the department to contract with regional centers to provide services and supports to individuals with developmental disabilities and their families.Existing law authorizes the department to perform various duties relating to the prevention, diagnosis, and treatment of persons with intellectual and developmental disabilities including disseminating educational information, providing advice, conducting educational and related work, and organizing, establishing, and maintaining community mental health clinics, as specified.This bill would make technical, nonsubstantive changes to those provisions.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NOYES  Local Program: NO 

 Amended IN  Assembly  March 20, 2018

Amended IN  Assembly  March 20, 2018

 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION

Assembly Bill No. 1990

Introduced by Assembly Member MathisFebruary 01, 2018

Introduced by Assembly Member Mathis
February 01, 2018

 An act to amend Section 4417 4681.1 of the Welfare and Institutions Code, relating to developmental services. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 1990, as amended, Mathis. Developmental services. services: community care facilities: rates.

Under existing law, the Lanterman Developmental Disabilities Services Act, the State Department of Developmental Services is responsible for providing various services and supports to persons with developmental disabilities, and for ensuring the appropriateness and quality of those services and supports.Existing law requires the department to establish and maintain an equitable system of payment to providers of community living facilities of good quality for persons with developmental disabilities, and requires that system of payment to include provision for a rate to ensure that the provider can meet the special needs of persons with developmental disabilities and provide quality programs, as specified. Existing law requires the department to adopt regulations that specify rates for community care facilities serving persons with developmental disabilities, calculated on the basis of a cost model designed by the department that ensures that aggregate facility payments support the provision of services to each person, as prescribed. Existing law requires the department to provide the Legislature with annual community care facility rates, including any draft amendments to those regulations as required, and contingent upon an appropriation in the annual Budget Act, to adopt emergency regulations that establish the annual rates for community care facilities serving persons with developmental disabilities for each fiscal year. Existing law requires individual facilities to be held harmless for any reduction in aggregate facility payments caused solely by the change in reimbursement methodology during the first year of operation under the revised rate model.This bill would hold individual facilities harmless for reductions in aggregate facility payments caused by the change in reimbursement methodology indefinitely.Existing law vests in the State Department of Developmental Services jurisdiction over state hospitals referred to as developmental centers for the provision of residential care to individuals with developmental disabilities, and also requires the department to contract with regional centers to provide services and supports to individuals with developmental disabilities and their families.Existing law authorizes the department to perform various duties relating to the prevention, diagnosis, and treatment of persons with intellectual and developmental disabilities including disseminating educational information, providing advice, conducting educational and related work, and organizing, establishing, and maintaining community mental health clinics, as specified.This bill would make technical, nonsubstantive changes to those provisions.

Under existing law, the Lanterman Developmental Disabilities Services Act, the State Department of Developmental Services is responsible for providing various services and supports to persons with developmental disabilities, and for ensuring the appropriateness and quality of those services and supports.

Existing law requires the department to establish and maintain an equitable system of payment to providers of community living facilities of good quality for persons with developmental disabilities, and requires that system of payment to include provision for a rate to ensure that the provider can meet the special needs of persons with developmental disabilities and provide quality programs, as specified. Existing law requires the department to adopt regulations that specify rates for community care facilities serving persons with developmental disabilities, calculated on the basis of a cost model designed by the department that ensures that aggregate facility payments support the provision of services to each person, as prescribed. Existing law requires the department to provide the Legislature with annual community care facility rates, including any draft amendments to those regulations as required, and contingent upon an appropriation in the annual Budget Act, to adopt emergency regulations that establish the annual rates for community care facilities serving persons with developmental disabilities for each fiscal year. Existing law requires individual facilities to be held harmless for any reduction in aggregate facility payments caused solely by the change in reimbursement methodology during the first year of operation under the revised rate model.

This bill would hold individual facilities harmless for reductions in aggregate facility payments caused by the change in reimbursement methodology indefinitely.

Existing law vests in the State Department of Developmental Services jurisdiction over state hospitals referred to as developmental centers for the provision of residential care to individuals with developmental disabilities, and also requires the department to contract with regional centers to provide services and supports to individuals with developmental disabilities and their families.



Existing law authorizes the department to perform various duties relating to the prevention, diagnosis, and treatment of persons with intellectual and developmental disabilities including disseminating educational information, providing advice, conducting educational and related work, and organizing, establishing, and maintaining community mental health clinics, as specified.



This bill would make technical, nonsubstantive changes to those provisions.



## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 4681.1 of the Welfare and Institutions Code is amended to read:4681.1. (a) The department shall adopt regulations that specify rates for community care facilities serving persons with developmental disabilities. The implementation of the regulations shall be contingent upon an appropriation in the annual Budget Act for this purpose. These rates shall be calculated on the basis of a cost model designed by the department that ensures that aggregate facility payments support the provision of services to each person in accordance with his or her individual program plan and applicable program requirements. The cost model shall reflect cost elements that shall include, but are not limited to, all of the following:(1) Basic living needs include utilities, furnishings, food, supplies, incidental transportation, housekeeping, personal care items, and other items necessary to ensure a quality environment for persons with developmental disabilities. The amount identified for the basic living needs element of the rate shall be calculated as the average projected cost of these items in an economically and efficiently operated community care facility.(2) Direct care includes salaries, wages, benefits, and other expenses necessary to supervise or support the persons functioning in the areas of self-care and daily living skills, physical coordination mobility, and behavioral self-control, choice making, and integration. The amount identified for direct care shall be calculated as the average projected cost of providing the level of service required to meet each persons functional needs in an economically and efficiently operated community care facility. The direct care portion of the rate shall reflect specific service levels defined by the department on the basis of relative resident need and the individual program plan.(3) Special services include specialized training, treatment, supervision, or other services that a persons individual program plan requires to be provided by the residential facility in addition to the direct care provided under paragraph (2). The amount identified for special services shall be calculated for each individual based on the additional services specified in the persons individual program plan and the prevailing rates paid for similar services in the area. The special services portion of the rate shall reflect a negotiated agreement between the facility and the regional center in accordance with Section 4648.(4) Indirect costs include managerial personnel, facility operation, maintenance and repair, other nondirect care, employee benefits, contracts, training, travel, licenses, taxes, interest, insurance, depreciation, and general administrative expenses. The amount identified for indirect costs shall be calculated as the average projected cost for these expenses in an economically and efficiently operated community care facility.(5) Property costs include mortgages, leases, rent, taxes, capital or leasehold improvements, depreciation, and other expenses related to the physical structure. The amount identified for property costs shall be based on the fair rental value of a model facility that is adequately designed, constructed, and maintained to meet the needs of persons with developmental disabilities. The amount identified for property costs shall be calculated as the average projected fair rental value of an economically and efficiently operated community care facility.(b) The cost model shall take into account factors that include, but are not limited to, all of the following:(1) Facility size, as defined by the department on the basis of the number of facility beds licensed by the State Department of Social Services and vendorized by the regional center.(2) Specific geographic areas, as defined by the department on the basis of cost of living and other pertinent economic indicators.(3) Common levels of direct care, as defined by the department on the basis of services specific to an identifiable group of persons as determined through the individual program plan.(4) Positive outcomes, as defined by the department on the basis of increased integration, independence, and productivity at the aggregate facility and individual consumer level.(5) Owner-operated and staff-operated reimbursement, which shall not differ for facilities that are required to comply with the same program requirements.(c) The rates established for individual community care facilities serving persons with developmental disabilities shall reflect all of the model cost elements and rate development factors described in this section. The cost model design shall include a process for updating the cost model elements that address variables, including, but not limited to, all of the following:(1) Economic trends in California.(2) New state or federal program requirements.(3) Changes in the state or federal minimum wage.(4) Increases in fees, taxes, or other business costs.(5) Increases in federal supplemental security income/state supplementary program for the aged, blind, and disabled payments.(d) Rates established for persons with developmental disabilities who are also dually diagnosed with a mental health disorder may be fixed at a higher rate. The department shall work with the State Department of Health Care Services to establish criteria upon which higher rates may be fixed pursuant to this subdivision. The higher rate for persons with developmental disabilities who are also dually diagnosed with a mental health disorder may be paid when requested by the director of the regional center and approved by the Director of Developmental Services.(e) By January 1, 2001, the department shall prepare proposed regulations to implement the changes outlined in this section. The department may use a private firm to assist in the development of these changes and shall confer with consumers, providers, and other interested parties concerning the proposed regulations. By May 15, 2001, and each year thereafter, the department shall provide the Legislature with annual community care facility rates, including any draft amendments to the regulations as required. By July 1, 2001, and each year thereafter, contingent upon an appropriation in the annual Budget Act for this purpose, the department shall adopt emergency regulations that establish the annual rates for community care facilities serving persons with developmental disabilities for each fiscal year.(f) During the first year of operation under the revised rate model, individual Individual facilities shall be held harmless for any reduction in aggregate facility payments caused solely by the change in reimbursement methodology.SECTION 1.Section 4417 of the Welfare and Institutions Code is amended to read:4417.(a)The State Department of Developmental Services may:(1)Disseminate educational information relating to the prevention, diagnosis, and treatment of persons with intellectual disabilities.(2)Upon request, advise all public officers, organizations, and agencies interested in the developmental disabilities of the people of the state.(3)Conduct educational and related work that will tend to encourage the development of proper facilities for persons with developmental disabilities throughout the state.(b)The department may organize, establish, and maintain community mental health clinics for the prevention, early diagnosis, and treatment of intellectual disability. These clinics may be maintained only for persons not requiring institutional care, who voluntarily seek the aid of the clinics. These clinics may be maintained at the locations in the communities of the state designated by the director, or at any institution under the jurisdiction of the department designated by the director.(c)The department may establish rules and regulations necessary to carry out this section. This section does not authorize any form of compulsory medical or physical examination, treatment, or control of any person.

The people of the State of California do enact as follows:

## The people of the State of California do enact as follows:

SECTION 1. Section 4681.1 of the Welfare and Institutions Code is amended to read:4681.1. (a) The department shall adopt regulations that specify rates for community care facilities serving persons with developmental disabilities. The implementation of the regulations shall be contingent upon an appropriation in the annual Budget Act for this purpose. These rates shall be calculated on the basis of a cost model designed by the department that ensures that aggregate facility payments support the provision of services to each person in accordance with his or her individual program plan and applicable program requirements. The cost model shall reflect cost elements that shall include, but are not limited to, all of the following:(1) Basic living needs include utilities, furnishings, food, supplies, incidental transportation, housekeeping, personal care items, and other items necessary to ensure a quality environment for persons with developmental disabilities. The amount identified for the basic living needs element of the rate shall be calculated as the average projected cost of these items in an economically and efficiently operated community care facility.(2) Direct care includes salaries, wages, benefits, and other expenses necessary to supervise or support the persons functioning in the areas of self-care and daily living skills, physical coordination mobility, and behavioral self-control, choice making, and integration. The amount identified for direct care shall be calculated as the average projected cost of providing the level of service required to meet each persons functional needs in an economically and efficiently operated community care facility. The direct care portion of the rate shall reflect specific service levels defined by the department on the basis of relative resident need and the individual program plan.(3) Special services include specialized training, treatment, supervision, or other services that a persons individual program plan requires to be provided by the residential facility in addition to the direct care provided under paragraph (2). The amount identified for special services shall be calculated for each individual based on the additional services specified in the persons individual program plan and the prevailing rates paid for similar services in the area. The special services portion of the rate shall reflect a negotiated agreement between the facility and the regional center in accordance with Section 4648.(4) Indirect costs include managerial personnel, facility operation, maintenance and repair, other nondirect care, employee benefits, contracts, training, travel, licenses, taxes, interest, insurance, depreciation, and general administrative expenses. The amount identified for indirect costs shall be calculated as the average projected cost for these expenses in an economically and efficiently operated community care facility.(5) Property costs include mortgages, leases, rent, taxes, capital or leasehold improvements, depreciation, and other expenses related to the physical structure. The amount identified for property costs shall be based on the fair rental value of a model facility that is adequately designed, constructed, and maintained to meet the needs of persons with developmental disabilities. The amount identified for property costs shall be calculated as the average projected fair rental value of an economically and efficiently operated community care facility.(b) The cost model shall take into account factors that include, but are not limited to, all of the following:(1) Facility size, as defined by the department on the basis of the number of facility beds licensed by the State Department of Social Services and vendorized by the regional center.(2) Specific geographic areas, as defined by the department on the basis of cost of living and other pertinent economic indicators.(3) Common levels of direct care, as defined by the department on the basis of services specific to an identifiable group of persons as determined through the individual program plan.(4) Positive outcomes, as defined by the department on the basis of increased integration, independence, and productivity at the aggregate facility and individual consumer level.(5) Owner-operated and staff-operated reimbursement, which shall not differ for facilities that are required to comply with the same program requirements.(c) The rates established for individual community care facilities serving persons with developmental disabilities shall reflect all of the model cost elements and rate development factors described in this section. The cost model design shall include a process for updating the cost model elements that address variables, including, but not limited to, all of the following:(1) Economic trends in California.(2) New state or federal program requirements.(3) Changes in the state or federal minimum wage.(4) Increases in fees, taxes, or other business costs.(5) Increases in federal supplemental security income/state supplementary program for the aged, blind, and disabled payments.(d) Rates established for persons with developmental disabilities who are also dually diagnosed with a mental health disorder may be fixed at a higher rate. The department shall work with the State Department of Health Care Services to establish criteria upon which higher rates may be fixed pursuant to this subdivision. The higher rate for persons with developmental disabilities who are also dually diagnosed with a mental health disorder may be paid when requested by the director of the regional center and approved by the Director of Developmental Services.(e) By January 1, 2001, the department shall prepare proposed regulations to implement the changes outlined in this section. The department may use a private firm to assist in the development of these changes and shall confer with consumers, providers, and other interested parties concerning the proposed regulations. By May 15, 2001, and each year thereafter, the department shall provide the Legislature with annual community care facility rates, including any draft amendments to the regulations as required. By July 1, 2001, and each year thereafter, contingent upon an appropriation in the annual Budget Act for this purpose, the department shall adopt emergency regulations that establish the annual rates for community care facilities serving persons with developmental disabilities for each fiscal year.(f) During the first year of operation under the revised rate model, individual Individual facilities shall be held harmless for any reduction in aggregate facility payments caused solely by the change in reimbursement methodology.

SECTION 1. Section 4681.1 of the Welfare and Institutions Code is amended to read:

### SECTION 1.

4681.1. (a) The department shall adopt regulations that specify rates for community care facilities serving persons with developmental disabilities. The implementation of the regulations shall be contingent upon an appropriation in the annual Budget Act for this purpose. These rates shall be calculated on the basis of a cost model designed by the department that ensures that aggregate facility payments support the provision of services to each person in accordance with his or her individual program plan and applicable program requirements. The cost model shall reflect cost elements that shall include, but are not limited to, all of the following:(1) Basic living needs include utilities, furnishings, food, supplies, incidental transportation, housekeeping, personal care items, and other items necessary to ensure a quality environment for persons with developmental disabilities. The amount identified for the basic living needs element of the rate shall be calculated as the average projected cost of these items in an economically and efficiently operated community care facility.(2) Direct care includes salaries, wages, benefits, and other expenses necessary to supervise or support the persons functioning in the areas of self-care and daily living skills, physical coordination mobility, and behavioral self-control, choice making, and integration. The amount identified for direct care shall be calculated as the average projected cost of providing the level of service required to meet each persons functional needs in an economically and efficiently operated community care facility. The direct care portion of the rate shall reflect specific service levels defined by the department on the basis of relative resident need and the individual program plan.(3) Special services include specialized training, treatment, supervision, or other services that a persons individual program plan requires to be provided by the residential facility in addition to the direct care provided under paragraph (2). The amount identified for special services shall be calculated for each individual based on the additional services specified in the persons individual program plan and the prevailing rates paid for similar services in the area. The special services portion of the rate shall reflect a negotiated agreement between the facility and the regional center in accordance with Section 4648.(4) Indirect costs include managerial personnel, facility operation, maintenance and repair, other nondirect care, employee benefits, contracts, training, travel, licenses, taxes, interest, insurance, depreciation, and general administrative expenses. The amount identified for indirect costs shall be calculated as the average projected cost for these expenses in an economically and efficiently operated community care facility.(5) Property costs include mortgages, leases, rent, taxes, capital or leasehold improvements, depreciation, and other expenses related to the physical structure. The amount identified for property costs shall be based on the fair rental value of a model facility that is adequately designed, constructed, and maintained to meet the needs of persons with developmental disabilities. The amount identified for property costs shall be calculated as the average projected fair rental value of an economically and efficiently operated community care facility.(b) The cost model shall take into account factors that include, but are not limited to, all of the following:(1) Facility size, as defined by the department on the basis of the number of facility beds licensed by the State Department of Social Services and vendorized by the regional center.(2) Specific geographic areas, as defined by the department on the basis of cost of living and other pertinent economic indicators.(3) Common levels of direct care, as defined by the department on the basis of services specific to an identifiable group of persons as determined through the individual program plan.(4) Positive outcomes, as defined by the department on the basis of increased integration, independence, and productivity at the aggregate facility and individual consumer level.(5) Owner-operated and staff-operated reimbursement, which shall not differ for facilities that are required to comply with the same program requirements.(c) The rates established for individual community care facilities serving persons with developmental disabilities shall reflect all of the model cost elements and rate development factors described in this section. The cost model design shall include a process for updating the cost model elements that address variables, including, but not limited to, all of the following:(1) Economic trends in California.(2) New state or federal program requirements.(3) Changes in the state or federal minimum wage.(4) Increases in fees, taxes, or other business costs.(5) Increases in federal supplemental security income/state supplementary program for the aged, blind, and disabled payments.(d) Rates established for persons with developmental disabilities who are also dually diagnosed with a mental health disorder may be fixed at a higher rate. The department shall work with the State Department of Health Care Services to establish criteria upon which higher rates may be fixed pursuant to this subdivision. The higher rate for persons with developmental disabilities who are also dually diagnosed with a mental health disorder may be paid when requested by the director of the regional center and approved by the Director of Developmental Services.(e) By January 1, 2001, the department shall prepare proposed regulations to implement the changes outlined in this section. The department may use a private firm to assist in the development of these changes and shall confer with consumers, providers, and other interested parties concerning the proposed regulations. By May 15, 2001, and each year thereafter, the department shall provide the Legislature with annual community care facility rates, including any draft amendments to the regulations as required. By July 1, 2001, and each year thereafter, contingent upon an appropriation in the annual Budget Act for this purpose, the department shall adopt emergency regulations that establish the annual rates for community care facilities serving persons with developmental disabilities for each fiscal year.(f) During the first year of operation under the revised rate model, individual Individual facilities shall be held harmless for any reduction in aggregate facility payments caused solely by the change in reimbursement methodology.

4681.1. (a) The department shall adopt regulations that specify rates for community care facilities serving persons with developmental disabilities. The implementation of the regulations shall be contingent upon an appropriation in the annual Budget Act for this purpose. These rates shall be calculated on the basis of a cost model designed by the department that ensures that aggregate facility payments support the provision of services to each person in accordance with his or her individual program plan and applicable program requirements. The cost model shall reflect cost elements that shall include, but are not limited to, all of the following:(1) Basic living needs include utilities, furnishings, food, supplies, incidental transportation, housekeeping, personal care items, and other items necessary to ensure a quality environment for persons with developmental disabilities. The amount identified for the basic living needs element of the rate shall be calculated as the average projected cost of these items in an economically and efficiently operated community care facility.(2) Direct care includes salaries, wages, benefits, and other expenses necessary to supervise or support the persons functioning in the areas of self-care and daily living skills, physical coordination mobility, and behavioral self-control, choice making, and integration. The amount identified for direct care shall be calculated as the average projected cost of providing the level of service required to meet each persons functional needs in an economically and efficiently operated community care facility. The direct care portion of the rate shall reflect specific service levels defined by the department on the basis of relative resident need and the individual program plan.(3) Special services include specialized training, treatment, supervision, or other services that a persons individual program plan requires to be provided by the residential facility in addition to the direct care provided under paragraph (2). The amount identified for special services shall be calculated for each individual based on the additional services specified in the persons individual program plan and the prevailing rates paid for similar services in the area. The special services portion of the rate shall reflect a negotiated agreement between the facility and the regional center in accordance with Section 4648.(4) Indirect costs include managerial personnel, facility operation, maintenance and repair, other nondirect care, employee benefits, contracts, training, travel, licenses, taxes, interest, insurance, depreciation, and general administrative expenses. The amount identified for indirect costs shall be calculated as the average projected cost for these expenses in an economically and efficiently operated community care facility.(5) Property costs include mortgages, leases, rent, taxes, capital or leasehold improvements, depreciation, and other expenses related to the physical structure. The amount identified for property costs shall be based on the fair rental value of a model facility that is adequately designed, constructed, and maintained to meet the needs of persons with developmental disabilities. The amount identified for property costs shall be calculated as the average projected fair rental value of an economically and efficiently operated community care facility.(b) The cost model shall take into account factors that include, but are not limited to, all of the following:(1) Facility size, as defined by the department on the basis of the number of facility beds licensed by the State Department of Social Services and vendorized by the regional center.(2) Specific geographic areas, as defined by the department on the basis of cost of living and other pertinent economic indicators.(3) Common levels of direct care, as defined by the department on the basis of services specific to an identifiable group of persons as determined through the individual program plan.(4) Positive outcomes, as defined by the department on the basis of increased integration, independence, and productivity at the aggregate facility and individual consumer level.(5) Owner-operated and staff-operated reimbursement, which shall not differ for facilities that are required to comply with the same program requirements.(c) The rates established for individual community care facilities serving persons with developmental disabilities shall reflect all of the model cost elements and rate development factors described in this section. The cost model design shall include a process for updating the cost model elements that address variables, including, but not limited to, all of the following:(1) Economic trends in California.(2) New state or federal program requirements.(3) Changes in the state or federal minimum wage.(4) Increases in fees, taxes, or other business costs.(5) Increases in federal supplemental security income/state supplementary program for the aged, blind, and disabled payments.(d) Rates established for persons with developmental disabilities who are also dually diagnosed with a mental health disorder may be fixed at a higher rate. The department shall work with the State Department of Health Care Services to establish criteria upon which higher rates may be fixed pursuant to this subdivision. The higher rate for persons with developmental disabilities who are also dually diagnosed with a mental health disorder may be paid when requested by the director of the regional center and approved by the Director of Developmental Services.(e) By January 1, 2001, the department shall prepare proposed regulations to implement the changes outlined in this section. The department may use a private firm to assist in the development of these changes and shall confer with consumers, providers, and other interested parties concerning the proposed regulations. By May 15, 2001, and each year thereafter, the department shall provide the Legislature with annual community care facility rates, including any draft amendments to the regulations as required. By July 1, 2001, and each year thereafter, contingent upon an appropriation in the annual Budget Act for this purpose, the department shall adopt emergency regulations that establish the annual rates for community care facilities serving persons with developmental disabilities for each fiscal year.(f) During the first year of operation under the revised rate model, individual Individual facilities shall be held harmless for any reduction in aggregate facility payments caused solely by the change in reimbursement methodology.

4681.1. (a) The department shall adopt regulations that specify rates for community care facilities serving persons with developmental disabilities. The implementation of the regulations shall be contingent upon an appropriation in the annual Budget Act for this purpose. These rates shall be calculated on the basis of a cost model designed by the department that ensures that aggregate facility payments support the provision of services to each person in accordance with his or her individual program plan and applicable program requirements. The cost model shall reflect cost elements that shall include, but are not limited to, all of the following:(1) Basic living needs include utilities, furnishings, food, supplies, incidental transportation, housekeeping, personal care items, and other items necessary to ensure a quality environment for persons with developmental disabilities. The amount identified for the basic living needs element of the rate shall be calculated as the average projected cost of these items in an economically and efficiently operated community care facility.(2) Direct care includes salaries, wages, benefits, and other expenses necessary to supervise or support the persons functioning in the areas of self-care and daily living skills, physical coordination mobility, and behavioral self-control, choice making, and integration. The amount identified for direct care shall be calculated as the average projected cost of providing the level of service required to meet each persons functional needs in an economically and efficiently operated community care facility. The direct care portion of the rate shall reflect specific service levels defined by the department on the basis of relative resident need and the individual program plan.(3) Special services include specialized training, treatment, supervision, or other services that a persons individual program plan requires to be provided by the residential facility in addition to the direct care provided under paragraph (2). The amount identified for special services shall be calculated for each individual based on the additional services specified in the persons individual program plan and the prevailing rates paid for similar services in the area. The special services portion of the rate shall reflect a negotiated agreement between the facility and the regional center in accordance with Section 4648.(4) Indirect costs include managerial personnel, facility operation, maintenance and repair, other nondirect care, employee benefits, contracts, training, travel, licenses, taxes, interest, insurance, depreciation, and general administrative expenses. The amount identified for indirect costs shall be calculated as the average projected cost for these expenses in an economically and efficiently operated community care facility.(5) Property costs include mortgages, leases, rent, taxes, capital or leasehold improvements, depreciation, and other expenses related to the physical structure. The amount identified for property costs shall be based on the fair rental value of a model facility that is adequately designed, constructed, and maintained to meet the needs of persons with developmental disabilities. The amount identified for property costs shall be calculated as the average projected fair rental value of an economically and efficiently operated community care facility.(b) The cost model shall take into account factors that include, but are not limited to, all of the following:(1) Facility size, as defined by the department on the basis of the number of facility beds licensed by the State Department of Social Services and vendorized by the regional center.(2) Specific geographic areas, as defined by the department on the basis of cost of living and other pertinent economic indicators.(3) Common levels of direct care, as defined by the department on the basis of services specific to an identifiable group of persons as determined through the individual program plan.(4) Positive outcomes, as defined by the department on the basis of increased integration, independence, and productivity at the aggregate facility and individual consumer level.(5) Owner-operated and staff-operated reimbursement, which shall not differ for facilities that are required to comply with the same program requirements.(c) The rates established for individual community care facilities serving persons with developmental disabilities shall reflect all of the model cost elements and rate development factors described in this section. The cost model design shall include a process for updating the cost model elements that address variables, including, but not limited to, all of the following:(1) Economic trends in California.(2) New state or federal program requirements.(3) Changes in the state or federal minimum wage.(4) Increases in fees, taxes, or other business costs.(5) Increases in federal supplemental security income/state supplementary program for the aged, blind, and disabled payments.(d) Rates established for persons with developmental disabilities who are also dually diagnosed with a mental health disorder may be fixed at a higher rate. The department shall work with the State Department of Health Care Services to establish criteria upon which higher rates may be fixed pursuant to this subdivision. The higher rate for persons with developmental disabilities who are also dually diagnosed with a mental health disorder may be paid when requested by the director of the regional center and approved by the Director of Developmental Services.(e) By January 1, 2001, the department shall prepare proposed regulations to implement the changes outlined in this section. The department may use a private firm to assist in the development of these changes and shall confer with consumers, providers, and other interested parties concerning the proposed regulations. By May 15, 2001, and each year thereafter, the department shall provide the Legislature with annual community care facility rates, including any draft amendments to the regulations as required. By July 1, 2001, and each year thereafter, contingent upon an appropriation in the annual Budget Act for this purpose, the department shall adopt emergency regulations that establish the annual rates for community care facilities serving persons with developmental disabilities for each fiscal year.(f) During the first year of operation under the revised rate model, individual Individual facilities shall be held harmless for any reduction in aggregate facility payments caused solely by the change in reimbursement methodology.



4681.1. (a) The department shall adopt regulations that specify rates for community care facilities serving persons with developmental disabilities. The implementation of the regulations shall be contingent upon an appropriation in the annual Budget Act for this purpose. These rates shall be calculated on the basis of a cost model designed by the department that ensures that aggregate facility payments support the provision of services to each person in accordance with his or her individual program plan and applicable program requirements. The cost model shall reflect cost elements that shall include, but are not limited to, all of the following:

(1) Basic living needs include utilities, furnishings, food, supplies, incidental transportation, housekeeping, personal care items, and other items necessary to ensure a quality environment for persons with developmental disabilities. The amount identified for the basic living needs element of the rate shall be calculated as the average projected cost of these items in an economically and efficiently operated community care facility.

(2) Direct care includes salaries, wages, benefits, and other expenses necessary to supervise or support the persons functioning in the areas of self-care and daily living skills, physical coordination mobility, and behavioral self-control, choice making, and integration. The amount identified for direct care shall be calculated as the average projected cost of providing the level of service required to meet each persons functional needs in an economically and efficiently operated community care facility. The direct care portion of the rate shall reflect specific service levels defined by the department on the basis of relative resident need and the individual program plan.

(3) Special services include specialized training, treatment, supervision, or other services that a persons individual program plan requires to be provided by the residential facility in addition to the direct care provided under paragraph (2). The amount identified for special services shall be calculated for each individual based on the additional services specified in the persons individual program plan and the prevailing rates paid for similar services in the area. The special services portion of the rate shall reflect a negotiated agreement between the facility and the regional center in accordance with Section 4648.

(4) Indirect costs include managerial personnel, facility operation, maintenance and repair, other nondirect care, employee benefits, contracts, training, travel, licenses, taxes, interest, insurance, depreciation, and general administrative expenses. The amount identified for indirect costs shall be calculated as the average projected cost for these expenses in an economically and efficiently operated community care facility.

(5) Property costs include mortgages, leases, rent, taxes, capital or leasehold improvements, depreciation, and other expenses related to the physical structure. The amount identified for property costs shall be based on the fair rental value of a model facility that is adequately designed, constructed, and maintained to meet the needs of persons with developmental disabilities. The amount identified for property costs shall be calculated as the average projected fair rental value of an economically and efficiently operated community care facility.

(b) The cost model shall take into account factors that include, but are not limited to, all of the following:

(1) Facility size, as defined by the department on the basis of the number of facility beds licensed by the State Department of Social Services and vendorized by the regional center.

(2) Specific geographic areas, as defined by the department on the basis of cost of living and other pertinent economic indicators.

(3) Common levels of direct care, as defined by the department on the basis of services specific to an identifiable group of persons as determined through the individual program plan.

(4) Positive outcomes, as defined by the department on the basis of increased integration, independence, and productivity at the aggregate facility and individual consumer level.

(5) Owner-operated and staff-operated reimbursement, which shall not differ for facilities that are required to comply with the same program requirements.

(c) The rates established for individual community care facilities serving persons with developmental disabilities shall reflect all of the model cost elements and rate development factors described in this section. The cost model design shall include a process for updating the cost model elements that address variables, including, but not limited to, all of the following:

(1) Economic trends in California.

(2) New state or federal program requirements.

(3) Changes in the state or federal minimum wage.

(4) Increases in fees, taxes, or other business costs.

(5) Increases in federal supplemental security income/state supplementary program for the aged, blind, and disabled payments.

(d) Rates established for persons with developmental disabilities who are also dually diagnosed with a mental health disorder may be fixed at a higher rate. The department shall work with the State Department of Health Care Services to establish criteria upon which higher rates may be fixed pursuant to this subdivision. The higher rate for persons with developmental disabilities who are also dually diagnosed with a mental health disorder may be paid when requested by the director of the regional center and approved by the Director of Developmental Services.

(e) By January 1, 2001, the department shall prepare proposed regulations to implement the changes outlined in this section. The department may use a private firm to assist in the development of these changes and shall confer with consumers, providers, and other interested parties concerning the proposed regulations. By May 15, 2001, and each year thereafter, the department shall provide the Legislature with annual community care facility rates, including any draft amendments to the regulations as required. By July 1, 2001, and each year thereafter, contingent upon an appropriation in the annual Budget Act for this purpose, the department shall adopt emergency regulations that establish the annual rates for community care facilities serving persons with developmental disabilities for each fiscal year.

(f) During the first year of operation under the revised rate model, individual Individual facilities shall be held harmless for any reduction in aggregate facility payments caused solely by the change in reimbursement methodology.





(a)The State Department of Developmental Services may:



(1)Disseminate educational information relating to the prevention, diagnosis, and treatment of persons with intellectual disabilities.



(2)Upon request, advise all public officers, organizations, and agencies interested in the developmental disabilities of the people of the state.



(3)Conduct educational and related work that will tend to encourage the development of proper facilities for persons with developmental disabilities throughout the state.



(b)The department may organize, establish, and maintain community mental health clinics for the prevention, early diagnosis, and treatment of intellectual disability. These clinics may be maintained only for persons not requiring institutional care, who voluntarily seek the aid of the clinics. These clinics may be maintained at the locations in the communities of the state designated by the director, or at any institution under the jurisdiction of the department designated by the director.



(c)The department may establish rules and regulations necessary to carry out this section. This section does not authorize any form of compulsory medical or physical examination, treatment, or control of any person.