20250SB__016398AMD INTRODUCED 2025-01-23 AMENDED_ASSEMBLY 2026-06-26 2025 SB AMD Introduced by Committee on Budget and Fiscal Review LEAD_AUTHOR SENATE Committee on Budget and Fiscal Review

An act to amend Sections 14672.9, 15432, 95007, 95008, 95012, and of, and to add

Chapter 3.1 (commencing with

Section 95013) to Title of, the Government Code, to amend

Section of the Public Contract Code, to amend Sections 4435.1, 4435.2, 4519.2, 4519.10, 4519.11, 4572, 4620.5, 4622, 4625.5, 4629, 4636, 4648, 4685.8, 4688.21, 4689.1, 4851, and 4856, 4861, and of, to amend and repeal Sections 4429, 4430, 4474.1, 4474.12, 4474.15, and of, to amend, repeal, and add Sections 4474.2, 4519.1, 4620.3, and of, to add Sections 4418.05, 4519.12, 4621.6, 4689.9, and 4868.6 to, to add

Chapter 16 (commencing with

Section 4890) to Division 4.5 of, to repeal

Section of, and to repeal and add

Section 4625.6 of, the Welfare and Institutions Code, and to repeal

Section of

Chapter of the Statutes of 2001, to repeal

Section of

Chapter of the Statutes of 2008, and to repeal

Section of

Chapter of the Statutes of 2016, relating to developmental services, and making an appropriation therefor, to take effect immediately, bill related to the budget. developmental services, and making an appropriation therefor, to take effect immediately, bill related to the budget Developmental services.

(1) Existing law establishes the State Department of Developmental Services and sets forth its powers and duties, including, but not limited to, the administration of state developmental centers, community facilities, and acute crisis homes to provide care to persons with developmental disabilities, as specified.

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 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 to 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 hours per workweek at a rate of 1 1 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 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 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 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 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 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 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 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 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 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 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 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 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 months, as specified, until the transition to the new governing board is complete.

(13) The Budget Acts of 2023, 2024, and 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. This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2025.</xhtml:p>"?> MAJORITY YES YES NO YES NO NO NO NO NO YES The people of the State of California do enact as follows:

SECTION

Section 14672.9 of the Government Code is amended to read: 14672.9. (a)

(1) Notwithstanding

Section 14670, the Director of General Services, with the consent of the State Department of Developmental Services, may let in the best interests of the state to a nonprofit corporation, for the purposes specified in this section, real property not exceeding 45.3 acres located within the grounds of the Agnews State Hospital. Of this amount, up to acres may be leased for a period not to exceed years beginning in and ending July 1, 2053, for the purpose of constructing a business development park.

In addition, no more than five acres, of the remaining acres, required by the local government agency for offsite improvements and roadways to support the business development park, may be leased for a period not to exceed years beginning in and ending July 1, 2053. The remaining acres shall be leased for a period not to exceed years beginning in and ending on July 1, 2024, for the purpose of conducting an educational and work program for developmentally disabled and other handicapped persons.

In the event the nonprofit corporation fails to substantially commence construction of the business development park by July 1, 1988, the terms of the lease allowing construction of a business development park and roadways and offsite improvements shall be null and void, and the lease shall revert to a 50-year period terminating July 1, 2024. The</xhtml:p>"?>

(2) The Department of General Services may provide a one-year extension to the deadline for commencement of construction if the department determines the nonprofit corporation has reasonable grounds for failure to commence construction. (

b) The lease authorized by this

section shall be subject to periodic review every five years. The review shall require submission of a report every five years by the lessee. The report shall be reviewed by the Director of General Services, who shall assure the state that the original purposes of the lease are being carried out. (

c) Subject to the approval of the Director of General Services and the State Department of Developmental Services, a lease executed under subdivision (

a) may be revised to provide any of the following:

(1) That the nonprofit corporation may assign its interest in the leased property, in whole or in part.

(2) That the nonprofit corporation may sublet all or any portion of the leased property.

(3) That the nonprofit corporation may enter into joint ventures with any other person, firm, partnership, or corporation to construct facilities or to conduct programs and activities on the leased property. (

d) Any revision of the nonprofit corporation’s lease pursuant to subdivision (

c) shall be subject to the requirement that all activities, assignments, and subleases shall be in furtherance of the purposes specified in subdivision (a). (

e) Any sublease or partial assignment or transfer of the nonprofit corporation’s interest in the leased property, whether voluntary, involuntary, or by operation of law, shall not terminate the nonprofit corporation’s remaining interest in the leased property. (

f) In addition to rent paid by the nonprofit corporation to the state, the nonprofit corporation shall pay the state percent of the gross rental income resulting from any subleases pursuant to subdivision (

c) through June 30, 2024, and percent of the gross rental income from July 1, 2024, to July 1, 2053. Any proceeds received by the state shall be deposited in a special account within the General Fund to be known as the Developmental Disabilities Services Account. All funds within this account shall be held without regard to fiscal years and shall be available for appropriation by the Legislature for the benefit of persons with developmental disabilities. Any interest accruing to moneys deposited in the account also shall accrue to the account.

On or before April of each year beginning in 1987, the State Department of Developmental Services shall submit a report to the Assembly Ways and Means Committee and the Senate Appropriations Committee. The report shall include, but not be limited to, the following information:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>The amount of funds in the Developmental Disabilities Services Account in the General Fund.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>The department’s priorities for expenditure of those funds.</xhtml:p>"?> (

g) Any profits to the nonprofit corporation from the proceeds of a sublease executed pursuant to paragraph (2) of subdivision (

c) shall be directed into programs for persons with disabilities for the purpose of directly benefiting clients of the nonprofit corporation. (

h) A minimum of percent of the total number of jobs created as a result of the sublease shall be reserved for handicapped employees and placed by the nonprofit corporation. (i)

(1) Moneys in the Developmental Disabilities Services Account shall be expended by the State Department of Developmental Services, through a request for proposals process, for projects that expand the availability of affordable housing for persons with developmental disabilities, including housing for funding developers in nonprofit housing development corporations or coalitions with expertise in the housing needs of persons with developmental disabilities.

(2) Prior to the expenditure of funds under this subdivision, the department shall consult with stakeholder groups, as designated by the State Department of Developmental Services, in ranking proposals and awarding funds. At least one project shall be located on the site previously known as the West Campus of Agnews Developmental Center. Funds shall not be awarded pursuant to this subdivision to a regional center for the development or management of housing projects or to fund regional center staff required in subdivision (

c) of

Section 4640.6 of the Welfare and Institutions Code.

(3) On or before April of each year, the State Department of Developmental Services shall submit a report to the appropriate fiscal and policy committees of the Legislature on the implementation of this subdivision. The report shall include, but not be limited to, both of the following: (1)</xhtml:p>"?> (

A) A description of projects funded in the previous year. (2)</xhtml:p>"?> (

B) A description of the process used to select projects, including the criteria used in their selection and the stakeholder groups that were consulted as part of that process.

SEC. 2.

Section of the Government Code is amended to read: 15432.

As used in this part, the following words and terms shall have the following meanings, unless the context clearly indicates or requires another or different meaning or intent: (a) “Act” means the California Health Facilities Financing Authority Act. (b) “Authority” means the California Health Facilities Financing Authority created by this part or any board, body, commission, department, or officer succeeding to the principal functions thereof or to which the powers conferred upon the authority by this part shall be given by law. (c) “Cost,” as applied to a project or portion of a project financed under this part, means and includes all or any part of the cost of construction and acquisition of all lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and interests acquired or used for a project, the cost of demolishing or removing any buildings or structures on land so acquired, including the cost of acquiring any lands to which those buildings or structures may be moved, the cost of all machinery and equipment, financing charges, interest prior to, during, and for a period not to exceed the later of one year or one year following completion of construction, as determined by the authority, the cost of insurance during construction, the cost of funding or financing noncapital expenses, reserves for principal and interest and for extensions, enlargements, additions, replacements, renovations, and improvements, the cost of engineering, service contracts, reasonable financial and legal services, plans, specifications, studies, surveys, estimates, administrative expenses, and other expenses of funding or financing, that are necessary or incident to determining the feasibility of constructing any project, or that are incident to the construction, acquisition, or financing of any project. (d) “Health facility” means a facility, place, or building that is licensed, accredited, or certified and organized, maintained, and operated for the diagnosis, care, prevention, and treatment of human illness, or physical, mental, or developmental disability, including convalescence and rehabilitation and including care during and after pregnancy, or for any one or more of these purposes, for one or more persons, and includes, but is not limited to, all of the following types:

(1) A general acute care hospital that is a health facility having a duly constituted governing body with overall administrative and professional responsibility and an organized medical staff that provides 24-hour inpatient care, including the following basic services: medical, nursing, surgical, anesthesia, laboratory, radiology, pharmacy, and dietary services.

(2) An acute psychiatric hospital that is a health facility having a duly constituted governing body with overall administrative and professional responsibility and an organized medical staff that provides 24-hour inpatient care for mentally disordered, incompetent, or other patients referred to in Division 5 (commencing with

Section 5000) or Division 6 (commencing with

Section 6000) of the Welfare and Institutions Code, including the following basic services: medical, nursing, rehabilitative, pharmacy, and dietary services.

(3) A skilled nursing facility that is a health facility that provides the following basic services: skilled nursing care and supportive care to patients whose primary need is for availability of skilled nursing care on an extended basis.

(4) An intermediate care facility that is a health facility that provides the following basic services: inpatient care to ambulatory or semiambulatory patients who have recurring need for skilled nursing supervision and need supportive care, but who do not require availability or continuous skilled nursing care.

(5) A special health care facility that is a health facility having a duly constituted governing body with overall administrative and professional responsibility and an organized medical or dental staff that provides inpatient or outpatient, acute or nonacute care, including, but not limited to, medical, nursing, rehabilitation, dental, or maternity.

(6) A clinic that is operated by a tax-exempt nonprofit corporation that is licensed pursuant to

Section or 1204.1 of the Health and Safety Code or a clinic exempt from licensure pursuant to subdivision (

b) or (

c) of

Section of the Health and Safety Code.

(7) An adult day health center that is a facility, as defined under subdivision (

b) of

Section 1570.7 of the Health and Safety Code, that provides adult day health care, as defined under subdivision (

a) of

Section 1570.7 of the Health and Safety Code.

(8) A facility owned or operated by a local jurisdiction for the provision of county health services.

(9) A multilevel facility is an institutional arrangement where a residential care facility for the elderly is operated as a part of, or in conjunction with, an intermediate care facility, a skilled nursing facility, or a general acute care hospital. For purposes of this paragraph, “elderly” means a person years of age or older.

(10) A child daycare facility operated in conjunction with a health facility. A child daycare facility is a facility, as defined in

Section 1596.750 of the Health and Safety Code. For purposes of this paragraph, “child” means a minor from birth to years of age.

(11) An intermediate care facility/developmentally disabled habilitative that is a health facility, as defined under subdivision (

e) of

Section of the Health and Safety Code.

(12) An intermediate care facility/developmentally disabled-nursing that is a health facility, as defined under subdivision (

h) of

Section of the Health and Safety Code.

(13) A community care facility that is a facility, as defined under subdivision (

a) of

Section of the Health and Safety Code, that provides care, habilitation, rehabilitation, or treatment services to developmentally disabled or mentally impaired persons.

(14) A nonprofit community care facility, as defined in subdivision (

a) of

Section of the Health and Safety Code, other than a facility that, as defined in that subdivision, is a foster family agency, a foster family home, a full service adoption agency, or a noncustodial adoption agency.

(15) A community work activity program, as specified in subdivision (

e) of

Section and

Section of the Welfare and Institutions Code.

(16) A community mental health center, as defined in paragraph (3) of subdivision (

b) of

Section of the Welfare and Institutions Code.

(17) A nonprofit speech and hearing center, as defined in

Section 1201.5 of the Health and Safety Code.

(18) A blood bank, as defined in

Section 1600.2 of the Health and Safety Code, licensed pursuant to

Section 1602.5 of the Health and Safety Code, and exempt from federal income taxation pursuant to

Section 501(c)(3) of the Internal Revenue Code.

(19) A residential facility for persons with developmental disabilities, as defined in Sections 4688.5 and 4688.6 of the Welfare and Institutions Code, which includes, but is not limited to, a community care facility licensed pursuant to

Section of the Health and Safety Code and a family teaching home as defined in

Section 4689.1 of the Welfare and Institutions Code. (20) (

A) A residential care facility for the elderly, as defined in

Section 1569.2 of the Health and Safety Code. (

B) This paragraph shall not be construed as affecting the licensing of health facilities under

Chapter 2 (commencing with

Section 1250) of Division of the Health and Safety Code, or any other provisions relating to health facilities, except as the term “health facility” is interpreted for purposes of the California Health Facilities Financing Authority Act under this part. The designation of a residential care facility for the elderly as a health facility, as made pursuant to this paragraph, shall apply to this part only.

(21) A nonpublic school that provides educational services in conjunction with a health facility, as defined in paragraphs (1) to (20), inclusive, that otherwise qualifies for financing pursuant to this part, if the nonpublic school is certified pursuant to Sections and 56366.1 of the Education Code as meeting standards relating to the required special education and specified related services and facilities for individuals with physical, mental, or developmental disabilities. “Health facility” includes a clinic that is described in subdivision (

l) of

Section of the Health and Safety Code. “Health facility” includes information systems equipment and the following facilities, if the equipment and facility is operated in conjunction with or to support the services provided in one or more of the facilities specified in paragraphs (1) to (21), inclusive, of this subdivision: a laboratory, laundry, a nurses or interns residence, housing for staff or employees and their families or patients or relatives of patients, a physicians’ facility, an administration building, a research facility, a maintenance, storage, or utility facility, an information systems facility, all structures or facilities related to any of the foregoing facilities or required or useful for the operation of a health facility and the necessary and usual attendant and related facilities and equipment, and parking and supportive service facilities or structures required or useful for the orderly conduct of the health facility. “Health facility” does not include any institution, place, or building used or to be used primarily for sectarian instruction or study or as a place for devotional activities or religious worship. (e) “Participating health institution” means a city, city and county, or county, a district hospital, or a private nonprofit corporation or association, or a limited liability company whose sole member is a nonprofit corporation or association authorized by the laws of this state to provide or operate a health facility or a nonprofit corporation that controls or manages, is controlled or managed by, is under common control or management with, or is affiliated with any of the foregoing, and that, pursuant to this part, undertakes the financing or refinancing of the construction or acquisition of a project or of working capital as provided in this part. “Participating health institution” also includes, for purposes of the California Health Facilities Revenue Bonds (UCSF-Stanford Health Care) 1998 Series A, the Regents of the University of California. (f) “Project” means construction, expansion, remodeling, renovation, furnishing, or equipping, or funding, financing, or refinancing of a health facility or acquisition of a health facility to be financed or refinanced with funds provided in whole or in part pursuant to this part. “Project” may include reimbursement for the costs of construction, expansion, remodeling, renovation, furnishing, or equipping, or funding, financing, or refinancing of a health facility or acquisition of a health facility. “Project” may include any combination of one or more of the foregoing undertaken jointly by any participating health institution with one or more other participating health institutions. (g) “Revenue bond” or “bond” means a bond, warrant, note, lease, or installment sale obligation that is evidenced by a certificate of participation or other evidence of indebtedness issued by the authority. (h) “Working capital” means moneys to be used by, or on behalf of, a participating health institution to pay or prepay maintenance or operation expenses or any other costs that would be treated as an expense item, under generally accepted accounting principles, in connection with the ownership or operation of a health facility, including, but not limited to, reserves for maintenance or operation expenses, interest on any loan for working capital made pursuant to this part, and reserves for debt service with respect to, and any costs necessary or incidental to, that financing.

SEC. 3.

Section of the Government Code is amended to read: 95007. The State Department of Developmental Services shall serve as the lead agency responsible for administration and coordination of the statewide system. The specific duties and responsibilities of the State Department of Developmental Services shall include, but are not limited to, all of the following: (

a) Establishing a single point of contact with the federal Office of Special Education Programs for the administration of

Part C of the federal Individuals with Disabilities Education Act. (

b) Administering the state early intervention system in accordance with

Part C of the federal Individuals with Disabilities Education Act (20 U.S.C.

Sec. 1431 et seq.), applicable regulations, and an approved state application. (

c) Administering mandatory and discretionary components as specified in Sections and 95024. (

d) Administering fiscal arrangements and interagency agreements with participating agencies and community-based organizations to implement this title. (e) "?>Establishing interagency procedures, including the designation of local coordinating structures, as are necessary to share agency information and to coordinate policymaking activities. In developing these procedures, efforts shall be made to

schedule meetings with, and engage parents and legal guardians in, transition-related activities. (2)<xhtml:span class="EnSpace"/>Require each regional center to designate a main point of contact for coordinating and completing, with other agencies and persons, the transition of a child and family from

Part C to Part B of the federal Individuals with Disabilities Education Act, including establishing practices to educate and support families during transition.</xhtml:p>"?> (

f) Adopting written procedures for receiving and resolving complaints regarding violations of

Part C of the federal Individuals with Disabilities Education Act by public agencies covered under this title, as specified in

Section 1435(a)(10) of Title of the United States Code and appropriate federal regulations. (

g) Establishing, adopting, and implementing procedural safeguards that comply with the requirements of

Part C of the federal Individuals with Disabilities Education Act, as specified in

Section of Title of the United States Code and appropriate federal regulations. (h)

(1) Monitoring of agencies, institutions, and organizations receiving assistance under this title.

(2) Monitoring shall be conducted by interagency teams that are sufficiently trained to ensure compliance. Interagency teams shall consist of, but not be limited to, representatives from the State Department of Developmental Services, the State Department of Education, the interagency coordinating council, or a local family resource center or network, parent, direct service provider, or any other agency responsible for providing early intervention services.

(3) All members of an interagency team shall have access to all information that is subject to review. Members of each interagency team shall maintain the confidentiality of the information, and each member of the interagency team shall sign a written agreement of confidentiality.

(4) A

summary of monitoring issues and findings shall be forwarded biannually to the interagency coordinating council for review. (

i) Establishing innovative approaches to information distribution, family support services, and interagency coordination at the local level. This shall include the posting of information for parents specific to transition requirements along with other parent training opportunities on the lead agency’s internet website, the regional centers’ websites, and other appropriate internet websites. (

j) Ensuring the provision of appropriate early intervention services to all infants eligible under

Part C of the federal Individuals with Disabilities Education Act (20 U.S.C.

Sec. 1431 et seq.) and under

Section 95014, except for those infants who have solely a low incidence disability as defined in

Section 56026.5 of the Education Code and who are not eligible for services under the Lanterman Developmental Disabilities Services Act (Division 4.5 (commencing with

Section 4500) of the Welfare and Institutions Code). The development and implementation of subdivisions (

e) to (h), inclusive, shall be a collaborative effort between the State Department of Developmental Services and the State Department of Education. In establishing the written procedures for receiving and resolving complaints as specified in subdivision (

f) and in establishing and implementing procedural safeguards as specified in subdivision (g), it is the intent of the Legislature that these procedures be identical for all infants served under this act and shall be in accordance with Sections 303.400 and 303.420(

b) of Title of the Code of Federal Regulations. The procedural safeguards and due process requirements established under this title shall replace and be used in lieu of due process procedures contained in

Chapter 1 (commencing with

Section 4500) of Division 4.5 of the Welfare and Institutions Code and

Part 30 (commencing with

Section 56500) of the Education Code for infants and their families eligible under this title. (k)

(1) Notwithstanding any other law, and as a condition to receive federal

Part C grant funds, the State Department of Developmental Services may issue directives to local educational agencies and regional centers operating programs under this title until updated regulations are adopted, which shall occur no later than June 30, 2029. The department may collaborate</xhtml:p>"?>

(2) The State Department of Education shall collaborate with the State Department of Developmental Services as the State Department of Developmental Services develops and disseminates written directives related to transition practices between

Part C and under Part B of the federal Individuals with Disabilities Education Act. (

l) The requirements set forth in this title shall be interpreted and implemented in a manner consistent with the federal Individuals with Disabilities Education Act.

SEC. 4.

Section of the Government Code is amended to read: 95008. "?>The State Department of Education shall be responsible for administering services and programs for infants with solely visual, hearing, and severe orthopedic impairments, and any combination thereof, who meet the criteria in Sections and 56026.5 of the Education Code, and in

Section 3030(a), (b), (d), or (

e) of, and

Section of, Title of the California Code of Regulations and

Part C of the federal Individuals with Disabilities Education Act (20 U.S.C.

Sec. 1431 et seq.) and who are not eligible for services under the Lanterman Developmental Disabilities Services Act (Division 4.5 (commencing with

Section 4500) of the Welfare and Institutions Code). (b)<xhtml:span class="EnSpace"/>The State Department of Education shall require each local educational agency to designate a main point of contact for coordinating and completing, with other agencies and persons, the transition of a child and family from

Part C to Part B of the federal Individuals with Disabilities Education Act, including establishing practices to educate and support families during transition.</xhtml:p>"?>

SEC. 5.

Section of the Government Code is amended to read: 95012. (

a) The following departments shall cooperate and coordinate their early intervention services for eligible infants and their families under this title, and need to collaborate with families and communities, to provide a family-centered, comprehensive, multidisciplinary, interagency, community-based early intervention system:

(1) State Department of Developmental Services.

(2) State Department of Education.

(3) State Department of Health Care Services.

(4) State Department of Social Services. (

b) Each participating department shall enter into an interagency agreement with the State Department of Developmental Services. Each interagency agreement shall specify, at a minimum, the agency’s current and continuing level of financial participation in providing services to infants and toddlers with disabilities and their families. Each interagency agreement shall also specify procedures for resolving disputes in a timely manner.

Interagency agreements shall also contain provisions for ensuring effective cooperation and coordination among agencies concerning policymaking activities associated with the implementation of this title, including legislative proposals, regulation development, and fiscal planning.

All interagency agreements shall be reviewed annually and revised as necessary. (c)<xhtml:span class="EnSpace"/>In addition to the provisions specified in subdivision (b), the interagency agreement with the State Department of Education shall include provisions related to the joint development and dissemination of educational information about transitioning from

Part C of the federal Individuals with Disabilities Education Act.</xhtml:p>"?>

SEC. 6.

Chapter 3.1 (commencing with

Section 95013) is added to Title of the Government Code , to read: 3.1. Transition to Preschool and Other Programs 95013. The requirements set forth in this

chapter shall be interpreted and implemented in a manner consistent with the federal Individuals with Disabilities Education Act. In order to comply with the federal regulations in

Section 303.209 of Title of the Code of Federal Regulations and to facilitate a seamless transition between services in

Part C and under Part B of the federal Individuals with Disabilities Education Act (20 U.S.C.

Sec. 1400 et seq.), the State Department of Education, as the state education agency, shall enter into an interagency agreement with the State Department of Developmental Services which shall include provisions that address both of the following: (

a) Federal requirements consistent with

Section 303.209(a)(3) of Title of the Code of Federal Regulations. (

b) The joint development and dissemination of educational information about transitioning from

Part C to Part B. 95013.1. In the transition of a child and family from

Part C to Part B of the federal Individuals with Disabilities Education Act: (

a) Each regional center shall designate a main point of contact for coordinating and completing the transition with other agencies and persons, including establishing practices to educate and support families during transition. (

b) The State Department of Education shall require each local educational agency to designate a main point of contact for coordinating and completing the transition with other agencies and persons. 95013.2. In providing services pursuant to paragraph (2) of subdivision (

d) of

Section 95024, resources shall be made available by the lead agency or the agency’s contractor or both to families with information on the following areas: (

a) The difference between Part B and

Part C services. (

b) Information about local Part B programs and other services in a family’s community. (

c) Options for services for families after their child reaches three years of age. (

d) An overview of the process and timelines for a child’s transition at three years of age. 95013.3. It is the regional center’s responsibility to do both of the following: (

a) Assess a toddler who qualifies for early intervention services from the regional center pursuant to subparagraph (

B) of paragraph (3) of subdivision (

a) of

Section of the Welfare and Institutions Code. (

b) Provide information about available community or preschool programs, including California state preschool programs, as defined in

Section of the Education Code, for toddlers transitioning out of

Part C services.

SEC. 7.

Section of the Government Code is amended to read: 95024. (

a) Any increased cost to local educational agencies due to the implementation of this title shall be funded from the

Part C federal funds provided for the purposes of this title. (

b) Any increased costs to regional centers due to the implementation of this title shall be funded from the

Part C federal funds provided for the purposes of this title. (

c) The annual Budget Act shall specify the amount of federal

Part C funds allocated for local assistance and for state operations individually, for the State Department of Developmental Services, and for the State Department of Education. (

d) If federal funds are available after mandatory components and increased costs in subdivisions (

a) and (b), if any, are funded, the lead agency, in consultation with the State Department of Education, may do the following:

(1) Designate local interagency coordination areas throughout the state and allocate available

Part C federal funds to fund interagency coordination activities, including, but not limited to, outreach and public awareness, and interagency approaches to service planning and delivery. If the lead agency chooses to designate and fund local interagency coordination areas, the lead agency shall first offer to enter into a contract with the regional center or a local educational agency.

If the regional center or any of the local educational agencies do not accept the offer, the lead agency, in consultation with the State Department of Education and the approval of the regional center and local educational agencies in the area, directly may enter into a contract with a private, nonprofit organization. Nothing in this

section shall preclude a regional center or local educational agency that enters into a contract with the lead agency from subcontracting with a private, nonprofit organization.

(2) 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. (A)<xhtml:span class="EnSpace"/>The difference between Part B and

Part C services.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>Information about local Part B programs and other services in a family’s community.</xhtml:p><xhtml:p>(C)<xhtml:span class="EnSpace"/>Options for services for families after their child reaches three years of age.</xhtml:p><xhtml:p>(D)<xhtml:span class="EnSpace"/>An overview of the process and timelines for a child’s transition at three years of age.</xhtml:p>"?> (

e) If an expenditure plan is developed under subdivision (d), the lead agency, in consultation with the State Department of Education, shall give high priority to funding family resource services. (

f) Nothing in this

section shall be construed to limit the lead agency’s authority, in consultation with the State Department of Education, to allocate discretionary

Part C federal funds for any legitimate purpose consistent with the statutes and regulations under

Part C (20 U.S.C. Secs. 1431 to 1444, inclusive) and this title.

SEC. 8.

Section of the Public Contract Code is amended to read: 10295. (

a) All contracts entered into by any state agency for (1) the acquisition of goods or elementary school textbooks, (2) services, whether or not the services involve the furnishing or use of goods or are performed by an independent contractor, (3) the construction, alteration, improvement, repair, or maintenance of property, real or personal, or (4) the performance of work or services by the state agency for or in cooperation with any person, or public body, are void unless and until approved by the department.

Every contract shall be transmitted with all papers, estimates, and recommendations concerning it to the department and, if approved by the department, shall be effective from the date of the approval. (

b) This

section applies to a state agency that by general or specific statute is expressly or impliedly authorized to enter into transactions referred to in this section. (

c) This

section does not apply to any of the following:

(1) A transaction entered into by the Trustees of the California State University, by the Board of Governors of the California Community Colleges, or by a department under the State Contract Act or the California State University Contract Law.

(2) A contract of a type specifically mentioned and authorized to be entered into by the Department of Transportation under

Section or 14035.5 of the Government Code, Sections to 99319, inclusive, of the Public Utilities Code, or the Streets and Highways Code.

(3) A contract entered into by the Department of Transportation that is not funded by money derived by state tax sources but, rather, is funded by money derived from federal or local tax sources.

(4) A contract entered into by the Department of Human Resources for state employee benefits, occupational health and safety, training services, or combination thereof.

(5) A contract let by the Legislature.

(6) A contract entered into under the authority of

Chapter 4 (commencing with

Section 11770) of Part of Division of the Insurance Code.

(7) A contract entered into by the Department of Forestry and Fire Protection for the purpose of providing logistical support for large-scale prescribed fire operations, including, but not limited to, meals, lodging, hired equipment, onsite preparatory efforts, and land use agreements, or any related subcontract.

(8) A letter, contract, or contract amendment issued or entered into by the State Department of Developmental Services for a funding allocation or adjustment to a regional center pursuant to

Section 4621.6 of the Welfare and Institutions Code.

SEC.

Section 4418.05 is added to the Welfare and Institutions Code , to read: 4418.05. (

a) It is the intent of the Legislature to provide individuals served in facilities operated by the department with prompt access to essential goods and services and provide continuity of care by authorizing direct care purchases. (

b) Notwithstanding any other law, for facilities operated by the department, the department may make direct care purchases in individual amounts of less than ten thousand dollars ($10,000) commencing with the 2026–27 fiscal year. The dollar amount limit shall be adjusted every July thereafter for that fiscal year by the most recently available changes in the California Consumer Price Index, as calculated by the Department of Finance. (

c) Direct care purchases made pursuant to this

section shall be exempt from the procurement requirements contained in the Public Contract Code and the State Administrative Manual, and from approval by the Department of General Services. (

d) The department shall establish and maintain a written policy and procedures manual to guide the implementation of this section. The manual shall include, but not be limited to, appropriate oversight, internal controls, and the provision of public transparency through the Financial Information System for California (FI$Cal), or other reporting system. (

e) For purposes of this section, “direct care purchase” means a good or service necessary for an individual’s health, safety, or continuity of care. These purchases may include, but are not limited to, prescription and medical copayments, pharmacy supplies, over-the-counter health products, nutritional supplements, treatment programs, lodging expenses, groceries and food, clothing, personal hygiene materials, furniture, home goods, educational and technology devices and services for the use of individuals receiving care, and fitness and recreational equipment.

SEC. 10.

Section of the Welfare and Institutions Code is amended to read: 4429. (

a) The department shall biennially report to the Legislature its acts and proceedings for the two years ending the June 30th last preceding, with such facts regarding the management of the institution for the developmentally disabled as it deems necessary for the information of the Legislature, including estimates of the amounts required for the use of such hospitals and the reasons therefor, and including annual reports for each state hospital. (

b) This

section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC. 11.

Section of the Welfare and Institutions Code is amended to read: 4430. (

a) The department shall report to the Legislature the prospective needs for the care, custody, and treatment of developmentally disabled persons, together with its recommendations therefor. For the purpose of preventing overcrowding, it shall recommend such plans for the development of additional medical facilities as, in its judgment, will best meet the requirements of such persons. (

b) This

section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC.

Section 4435.1 of the Welfare and Institutions Code is amended to read: 4435.1. (

a) It is the intent of the Legislature to provide more statewide uniformity and consistency and promote equity in the administrative practices and services of regional centers, consistent with the Lanterman Developmental Disabilities Services Act (Division 4.5 (commencing with

Section 4500)), as specified in this section. (b)

(1) No later than June 30, 2024, the department shall establish common data

definitions that shall be used to promote service access and equity in all regional center services and programs. No later than January 1, 2025, regional centers shall start recording the race and ethnicity and preferred language identified by each individual, subject to paragraph (4), at the time of initial intake, assessment, and the individual program plan meeting following the individual’s 18th birthday. Individuals have the right to update their demographic information at any time.

(2) The categories for race and ethnicity shall be based on the latest categories adopted by the United States Core Data for Interoperability set forth by the United States Office of the National Coordinator for Health Information Technology. (3) “Preferred language” means the language chosen by the applicant or individual, or, when appropriate, the individual’s parent, legal guardian or conservator, or authorized representative.

(4) This

section does not compel an individual, their parent, their legal guardian or conservator, or their authorized representative to provide requested information regarding the race, ethnicity, or preferred language of any of those persons.

(5) The data requirements described in this subdivision shall be integrated with the Life Outcomes Improvement System (LOIS), as established pursuant to

Section 4519.1. (c)

(1) No later than June 30, 2025, the department shall establish standardized processes, including standardized templates, for assessing a consumer’s need for respite services. Regional centers shall implement these standardized processes no later than January 1, 2026.

(2) The processes shall include a requirement that the regional center obtain information about respite needs from family members and, when appropriate, from other caregivers. The information obtained from these standardized processes shall be considered by the individual’s individual program planning team.

(3) Regional centers shall make any modifications to their purchase-of-service policies as necessary for implementation of this subdivision. (

d) No later than June 30, 2024, the department shall establish a standardized individual program plan template and standardized procedures, including frequency of meetings, that are consistent with person-centered services planning requirements. The template shall be integrated with LOIS. Regional centers shall implement the standardized individual program plan template and procedures no later than January 1, 2025. (e)

(1) No later than June 30, 2025, the department shall establish standardized vendorization procedures. These procedures may include, but are not limited to, standardized vendorization forms and requirements to streamline vendorization elements, including when services are provided through more than one regional center. Regional centers shall implement these standardized vendorization procedures and provide updated vendor lists to the department on a quarterly basis no later than January 1, 2026.

(2) No later than March 1, 2028, in consultation with stakeholders, the department shall 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, including ending the practice and process currently known as courtesy vendorization. Service providers shall give preference to providing services to individuals served by the service provider’s initially vendorizing regional center. This

section does not require a regional center to refer individuals to any specific service provider (f)

(1) No later than January 1, 2025, the department shall establish a standardized intake process consistent with the requirements and timelines specified in

Section 4642.

(2) No later than June 30, 2025, and to the extent allowed by current data systems, regional centers shall report to the department, quarterly as described in paragraph (4), the number of assessments and the length of time that it took to determine eligibility.

(3) The department shall include all of the following information in LOIS: (

A) The number of individuals for whom intake was requested. (

B) The outcome of that intake, including whether an assessment was determined to be necessary. (

C) The length of time that it took to complete the assessment. (

D) The number of notices of action sent pursuant to paragraph (3) of subdivision (

a) of

Section 4642.

(4) Regional centers shall report the data described in this subdivision to the department on a quarterly basis, based on the criteria specified in paragraphs (1) to (5), inclusive, of subdivision (

a) of

Section 4519.5. (

g) The department shall develop the standardized processes specified in this

section with input from stakeholders, including consumers and families, who reflect the demographic diversity of California, to the extent practicable. In developing the standardized processes specified in this section, the department shall address barriers that may impact access to services. (

h) Notwithstanding

Chapter 3.5 (commencing with

Section 11340) of Part of Division of Title of the Government Code, the department may implement, interpret, or make specific this

section through written directives until regulations are effective. (

i) As part of its quarterly updates to the Legislature pursuant to

Section 4474.17, the department shall provide information on the status of implementation of this section.

SEC.

Section 4435.2 of the Welfare and Institutions Code is amended to read: 4435.2. (

a) No later than July 1, 2025, the department, with input from stakeholders, including consumers and families, relevant state agencies, and other entities overseeing benefits or services considered generic services by regional centers, including representatives of the State Department of Education, the Department of Rehabilitation, the State Department of Social Services, and the State Department of Health Care Services, shall provide all of the following information to the Legislature in accordance with

Section of the Government Code:

(1) A definition of generic services.

(2) Options to improve coordination of generic services for individuals and families.

(3) A description of regional center efforts to coordinate generic services for individuals and families.

(4) Identified barriers to accessing generic services. (

b) The department shall explore the feasibility of including the functionality in the Life Outcomes Improvement System (LOIS), as established pursuant to

Section 4519.1, to track utilization of generic services. This functionality shall be used to the extent that data are available. (c)

(1) The department shall, with input from stakeholders, including consumers and families, evaluate the availability of common services and supports that individuals served by regional centers can access when determined necessary by their individual program planning team or their individualized family service plan team.

(2) The department shall evaluate these common services and supports for all of the following: (

A) Inconsistencies in the availability of services or supports across the state. (

B) Availability of services or supports based on the preferred language of consumers. (

C) Recommendations for addressing inconsistencies, including data collection and related infrastructure requirements that may be necessary to analyze service or support use patterns.

(3) By January 10, 2025, the department shall provide a status update on efforts to complete the evaluation described in this subdivision and a projected date for completing the evaluation. (

d) As part of its quarterly updates to the Legislature pursuant to

Section 4474.17, the department shall provide information on the status of implementation of this section.

SEC.

Section 4474.1 of the Welfare and Institutions Code is amended to read: 4474.1. (

a) Whenever the State Department of Developmental Services proposes the closure of a state developmental center, the department shall be required to submit a detailed plan to the Legislature not later than April immediately prior to the fiscal year in which the plan is to be implemented, and as a part of the Governor’s proposed budget. A plan submitted to the Legislature pursuant to this section, including any modifications made pursuant to subdivision (b), shall not be implemented without the approval of the Legislature. (

b) A plan submitted on or before April immediately prior to the fiscal year in which the plan is to be implemented may be subsequently modified during the legislative review process. (

c) Prior to submission of the plan to the Legislature, the department shall solicit input from the State Council on Developmental Disabilities, the Association of Regional Center Agencies, the protection and advocacy agency specified in

Section 4901, the local regional center, consumers living in the developmental center, parents, family members, guardians, and conservators of persons living in the developmental centers or their representative organizations, persons with developmental disabilities living in the community, developmental center employees and employee organizations, community care providers, the affected city and county governments, and business and civic organizations, as may be recommended by local state Senate and Assembly representatives. (

d) Prior to the submission of the plan to the Legislature, the department shall confer with the county in which the developmental center is located, the regional centers served by the developmental center, and other state departments using similar occupational classifications, to develop a program for the placement of staff of the developmental center planned for closure in other developmental centers, as positions become vacant, or in similar positions in programs operated by, or through contract with, the county, regional centers, or other state departments, including, but not limited to, the community state staff program, use of state staff for mobile health and crisis teams in the community, and use of state staff in new state-operated models that may be developed as a component of the closure plan. (

e) Prior to the submission of the plan to the Legislature, the department shall confer with the county in which the developmental center is located, and shall consider recommendations for the use of the developmental center property. (

f) Prior to the submission of the plan to the Legislature, the department shall hold at least one public hearing in the community in which the developmental center is located, with public comment from that hearing summarized in the plan. (

g) The plan submitted to the Legislature pursuant to this

section shall include all of the following:

(1) A description of the land and buildings at the developmental center.

(2) A description of existing lease arrangements at the developmental center.

(3) A description of resident characteristics, including, but not limited to, age, gender, ethnicity, family involvement, years of developmental center residency, developmental disability, and other factors that will determine service and support needs.

(4) A description of stakeholder input provided pursuant to subdivisions (c), (d), and (e), including a description of local issues, concerns, and recommendations regarding the proposed closure, and alternative uses of the developmental center property.

(5) The impact on residents and their families.

(6) A description of the unique and specialized services provided by the developmental center, including, but not limited to, crisis facilities, health and dental clinics, and adaptive technology services.

(7) A description of the assessment process and community placement decision process that will ensure necessary services and supports are in place prior to a resident transitioning into the community.

(8) Anticipated alternative placements for residents.

(9) A description of how the department will transition the client rights advocacy contract provided at the developmental center pursuant to

Section to the community.

(10) A description of how the well-being of the residents will be monitored during and following their transition into the community.

(11) The impact on regional center services.

(12) Where services will be obtained that, upon closure of the developmental center, will no longer be provided by that facility.

(13) A description of the potential job opportunities for developmental center employees, activities the department will undertake to support employees through the closure process, and other efforts made to mitigate the effect of the closure on employees.

(14) The fiscal impact of the closure.

(15) The timeframe in which closure will be accomplished. (

h) This

section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC.

Section 4474.12 of the Welfare and Institutions Code is amended to read: 4474.12. (

a) The department shall seek to modify the contract in existence on January 1, 2017, for the conduct of a movers longitudinal study to include all of the following:

(1) A requirement that at least individuals who meet the following criteria participate in the study: (

A) Volunteered to participate in the study. (

B) Proportionately selected from among individuals who have moved into the community from Sonoma Developmental Center, Fairview Developmental Center, or Porterville Developmental Center. (

C) Proportionately selected from among individuals who have moved into the community at different stages of the closure process.

(2) A requirement that the study follow a sample of individuals described in paragraph (1) for a two-year period after the individual moves into the community from the developmental center.

(3) A requirement that the study include individuals who move into the community from a developmental center during the first year of the study, and during each subsequent year of the study, until the developmental centers identified in subparagraph (

B) of paragraph (1) close.

(4) A requirement that researchers conducting the study meet with each individual participating in the study at intervals of three months, six months, one year, and two years following the person’s move into the community from the developmental center to discuss the individual’s quality of life and services and supports. (

b) The movers longitudinal study described in this

section is one element of the quality assurance instrument required pursuant to

Section 4571. (c)

(1) For purposes of conducting the study, the department shall maintain and update the addresses of, and contact information for, former residents of the centers who relocated as a result of the closure of the centers.

(2) The department shall ensure, to the extent permitted by law, that researchers conducting the study have access to data and other information necessary to conduct the study, including the addresses of, and contact information for, former residents of the centers who relocated due to the closure of the centers. (

d) The department shall annually submit interim reports to the Legislature regarding the study in accordance with the requirements of

Section of the Government Code. The reports shall include information about consumer and family satisfaction and adequacy of community services. Upon the completion of the study as described in subdivision (a), the department shall submit the study to the Legislature, in accordance with the requirements of

Section of the Government Code. (

e) This

section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC.

Section 4474.15 of the Welfare and Institutions Code is amended to read: 4474.15. (

a) The State Department of Developmental Services shall include an update to the Legislature in the 2017–18 May Revision regarding how the department will provide access to crisis services after the closure of a developmental center and how the state will maintain its role in providing residential services to those whom private sector vendors cannot or will not serve. As part of this plan, the department shall assess the option of expanding the community state staff program authorized in

Section 4474.2 to allow the department’s employees to serve as regional crisis management teams that provide assessment, consultation, and resolution for persons with developmental disabilities in crisis in the community. (

b) The State Department of Developmental Services shall post on its Internet Web site a monthly progress report regarding the development of residential capacity by each regional center. The report shall include information on monthly targets for individuals moving out of a developmental center based on transition activities and community resource development activities by each regional center. The report shall also provide an explanation of any targets that have not been met. (

c) Commencing July 1, 2017, and until December 31, 2020, the State Department of Developmental Services shall provide quarterly updates to the appropriate policy and fiscal committees of the Legislature on the steps foreseen, planned, and completed in the development of services under the department’s update to the Legislature pursuant to subdivision (a), including any planned services or residences intended to facilitate transitions or diversions from institutes for mental disease, or other restrictive settings in the community, or the secure treatment program at Porterville Developmental Center.

These updates may be made in conjunction with planned quarterly updates on closure activities for developmental centers. (d)

(1) The requirement for submitting a report imposed under subdivision (

a) is inoperative on January 1, 2020, pursuant to

Section 10231.5 of the Government Code.

(2) A report to be submitted pursuant to subdivision (

a) shall be submitted in compliance with

Section of the Government Code. (

e) This

section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC.

Section 4474.2 of the Welfare and Institutions Code is amended to read: 4474.2. (

a) Notwithstanding any other law, the department may operate any facility, provide its employees to assist in the operation of any facility, or provide other necessary services and supports if, in the discretion of the department, it determines that the activity will assist in meeting the goal of successfully transitioning developmental center residents to community living or deflecting the admission of individuals with developmental disabilities to a developmental center, an institution for mental disease, an out-of-state placement, a general acute care hospital, or an acute psychiatric hospital.

The department may contract with any entity for the use of the department’s employees to provide services and supports in furtherance of this goal. (

b) The department shall prepare a report on the use of the department’s employees in providing services in the community pursuant to this section. The report shall include data on the number and classification of state employees working in the community program. The report shall include recommendations on whether the program should be continued or ways in which the program may be improved. Notwithstanding

Section 10231.5 of the Government Code, the report shall be submitted with the Governor’s proposed budget for the 2015–16 fiscal year to the fiscal committees of both houses of the Legislature and annually thereafter. (

c) This

section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC.

Section 4474.2 is added to the Welfare and Institutions Code , to read: 4474.2. (

a) Notwithstanding any other law, the department may operate any facility, provide its employees to assist in the operation of any facility, or provide other necessary services and supports if, in the discretion of the department, it determines that the activity will assist in meeting the goal of successfully transitioning developmental center residents to community living or deflecting the admission of individuals with developmental disabilities to a developmental center, an institution for mental disease, an out-of-state placement, a general acute care hospital, or an acute psychiatric hospital.

The department may contract with any entity for the use of the department’s employees to provide services and supports in furtherance of this goal. (

b) This

section shall become operative on July 1, 2026.

SEC.

Section 4519.1 is added to the Welfare and Institutions Code , to read: 4519.1. (a)

(1) It is 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). LOIS shall 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.

(2) The Legislature finds and declares all of the following: (

A) LOIS is intended to provide a more consistent statewide experience for individuals and families, regional centers, and service providers. (

B) LOIS is intended to enable individuals, families, and service providers to access and update their own information. (

C) LOIS is intended to simplify the complexity of information technology support needs for the delivery of developmental services and eliminate costly duplications and redundancies and data reconciliation and transfers. (

D) LOIS is intended to enable more robust, timely, complete, and consistent data collection, reporting, and analysis capabilities, enabling better management of regional centers, services to individuals and families, and improved information for oversight, monitoring, and policymaking. (

b) For purposes of this section, LOIS constitutes an “enterprise system,” as defined in

Section 7922.700 of the Government Code. (

c) Beginning July 1, 2026, regional centers shall do all of the following to prepare for and assist the transition from their existing information technology systems to LOIS:

(1) Notify the department of any plans to permit or actions permitting third-party applications or information technology systems to access data of any of the following: (

A) Individuals applying for or receiving regional center services, and their families. (

B) Service provider information. (

C) Financial information. (

D) Regional center operations.

(2) Notify the department of any plans to use any new information technology systems that will do either of the following: (

A) Collect, retain, or transmit information described in paragraph (1). (

B) Replicate, enhance, or replace the existing functionality of existing systems.

(3) Prohibit both the transitioning of, or planning the transition of, any existing case management system, such as SANDIS, Virtual Chart, SmartChart, KEA, Atlas, and Atticus, to solutions other than LOIS, without prior written approval from the department.

(4) Prioritize data cleanup and other transitional activities necessary to prepare for the implementation of LOIS, as directed by the department. (

d) Upon readiness of LOIS for implementation, each regional center shall discontinue the use of all other case management and financial technology systems, following instructions from the department. The transition to implementation of LOIS shall be designed and implemented to minimize disruptions for individuals and families and regional center operations. (

e) Beginning July 1, 2026, and until completion of planning for LOIS, the department shall 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. The written updates shall include a plain language description of progress towards the implementation of LOIS that includes, but is not limited to, all the following:

(1) The most recent estimated cost and

schedule of LOIS. If, at the time of an update, the department has not completed the Stage Alternatives Analysis of the Project Approval Lifecycle (PAL) process, the department shall provide the “rough order of magnitude” estimate included in the Stage Business Analysis of the PAL process.

(2) An accounting of LOIS planning expenditures to date and the remaining balances of appropriated funds at the time of the quarterly submission.

(3) Status updates on any requests for federal funding.

(4) A copy of the governance and change management plans for LOIS.

(5) The involvement in LOIS of individuals and families, regional centers, service providers, and advocacy organizations. (

f) The department shall provide the Legislature with a copy of the Post Implementation Evaluation Report for LOIS, when available, which shall include the details of both stakeholder involvement and regular reporting to the Legislature on how the goals specified in subdivision (

a) are being met as the project moves into maintenance and operations. (

g) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with

Section 11340) of Part of Division of Title of the Government Code), the department may implement and make specific the provisions of this

section by means of written directives or similar instructions consistent with this section.

SEC.

Section 4519.2 of the Welfare and Institutions Code is amended to read: 4519.2. (

a) The department shall identify key indicators to track the regional center system’s delivery of services. These indicators shall include both local and statewide measures and shall include a recommendation for analysis and follow up of any concerning trends, as well as a plan for reporting of best practices for use statewide. The department, with stakeholder input, shall also identify recommendations for measuring outcomes and improving outcomes for consumers.

Goals for system improvement include enhancement of customer services for consumers and their families, facilitation of enhanced communication between regional centers and the state, and identification and dissemination of best practices for developmental services providers. The department shall report these recommended indicators, best practices, and recommendations for analysis to the Legislature no later than January 10, 2021. (b)

(1) Each regional center shall post the following information on its internet website in a format determined by the department no later than April 1, 2020, and shall update the information no less frequently than every six months until the department determines that statewide compliance with the federal Home and Community-Based Services (HCBS) Final Rule has been met, or January 1, 2025, whichever is earlier: (

A) The number of providers identified as needing assessment for HCBS compliance, broken down by provider type, as defined by the department. (

B) The number of providers within each provider type that have been inspected or reviewed for HCBS compliance. (

C) The number of providers within each provider type that have been determined to be HCBS compliant. (

D) The number of providers within each provider type that have been determined not to be HCBS compliant and the reason for lack of compliance. (

E) The number of providers, broken down by provider type, that have been identified as presumed to have the qualities of an institutional setting, as described in Sections 441.301(c)(5)(

v) and 441.710(a)(2)(

v) of Title of the Code of Federal Regulations.

(2) The department shall provide this information to the Legislature as statewide data and for each regional center, no later than May 1, 2020, and shall post that

summary on its internet website.

(3) Beginning July 1, 2026, the department shall post the information described in paragraph (1) on its internet website, and shall update the information no less frequently than every six months to monitor compliance with the federal Home and Community-Based Services (HCBS) Final Rule. The information may be collected through the statewide provider directory, the Life Outcomes Improvement System, or any other means identified by the department. (c)

(1) The department shall update the Legislature annually, beginning on January 10, 2020, with the number of complaints filed at each regional center pursuant to

Section for the prior fiscal year, and include the following information: (

A) The subject matter of complaints filed. (

B) How complaints were resolved. (

C) The timeframe within which resolutions to those complaints were provided by the regional center. (

D) The number of complaints that were appealed to the department, their resolution, and the timeframe within which a written administrative decision was issued. (

E) Demographic information, as identified by the department, about consumers on whose behalf the complaint was filed, including the ethnicity of the consumer.

(2) The update shall include data for the prior two fiscal years, as available.

(3) The department shall also post this data on its internet website.

(4) This subdivision shall become inoperative on February 1, 2027. (

d) The department and each regional center shall include on their internet websites a link to the protection and advocacy agency designated pursuant to Division 4.7 (commencing with

Section 4900) and the clients’ rights advocate contracted with pursuant to

Section 4433. This link shall be posted on the home page of their internet websites, or in another standard location determined by the department. (

e) On and after October 1, 2019, the department shall post all new directives that it issues to regional centers on its internet website. (

f) Any reports submitted by the department to the Legislature pursuant to this

section shall be submitted in compliance with

Section of the Government Code.

SEC.

Section 4519.10 of the Welfare and Institutions Code is amended to read: 4519.10. (

a) The Legislature finds and declares all of the following:

(1) The current service provider rate structure in the system administered by the State Department of Developmental Services lacks transparency, remains complex, is not tied to person-centered outcomes, and varies across providers who provide the same service in the same region.

(2) In 2016, the Legislature funded a rate study to address the sustainability, quality, and transparency of community-based services for individuals with developmental disabilities.

(3) The department, with the help of a consultant, completed the rate study in and subsequently submitted the study’s findings and recommendations to the Legislature. Among other things, the study recommended all of the following: (

A) Within each service category, rate models that include components that may be regularly updated. (

B) Regional differentials to account for regional variance in the cost of living and doing business. (

C) Enhanced rates for services delivered in other languages, including American Sign Language. (

D) An optional add-on for direct service professional levels and wage differentials based on training and demonstrated competency. (

E) The consolidation of certain service codes.

(4) The rate study’s fiscal impact analysis indicated that full implementation of these rate models would cost an additional one billion one hundred million dollars ($1,100,000,000) from the General Fund, or one billion eight hundred million dollars ($1,800,000,000) of total funds, in the 2019–20 fiscal year.

(5) The recommendations from the rate study and the associated rate models have not been implemented, even as rate study findings informed supplemental rate increases for many service categories in the 2019–20 fiscal year and three additional service categories in the 2020–21 fiscal year.

(6) For Medi-Cal eligible consumers, the department receives federal Medicaid reimbursements to support home- and community-based services provided to those consumers.

(7) Direct service professionals employed by service providers are critical to the quality and provision of services and supports to individuals with intellectual and developmental disabilities.

(8) A prevailing need and challenge within the developmental services system is moving from a compliance-based system to an outcomes-based system. Outcome measures must reinforce the system’s core values of meeting individual needs based on person-centered planning.

The implementation of rates, pursuant to this section, should support this person-centered transformation through consideration of incentive payments, alternative payment models, alternative service delivery, lessons learned from the COVID-19 pandemic period, person-centered and culturally and linguistically sensitive and competent approaches, training of direct service professionals, compliance with the federal home- and community-based services rule set to take effect on March 17, 2023, and methods for assessing and reporting outcomes.

(9) To improve consumer outcomes and experiences and measure overall system performance, four goals should guide rate reform: (

A) Consumer experience. (

B) Equity. (

C) Quality and outcomes. (

D) System efficiencies. (

b) Therefore, it is the intent of the Legislature to phase in funding and policies beginning in the 2021–22 fiscal year to implement rate reform, which shall include a quality incentive program, create an enhanced person-centered, outcomes-based system, and complete this transformation by July 1, 2025. (c) (1) (

A) Commencing April 1, 2022, the department shall implement a rate increase for service providers that equals one-quarter of the difference between current rates and the fully funded rate model for each provider. (

B) Commencing January 1, 2023, and continuing through December 31, 2024, the department shall adjust rates to equal one-half of the difference between rates in effect March 31, 2022, and the fully funded rate model for each provider, and additional funding shall be available for the quality incentive program described in subdivision (e). (

i) Notwithstanding any other law or regulation, it is the intent of the Legislature that the majority of the rate increase described in this subparagraph for the 2022–23 fiscal year be used for the purpose of enhancing wages and benefits for staff who spend a minimum of percent of their time providing direct services to consumers. (ii) Commencing January 1, 2023, a provider shall not spend a smaller percentage of the rate increase on direct care staff wages and benefit costs than the corresponding percentage included for direct care staff wages and benefit costs in the rate models for each specific service. (iii) A provider granted a rate increase pursuant to this

section shall maintain documentation, subject to audit by the department or regional center, that the portion of the rate increase identified in this subparagraph was used to increase wages, salaries, or benefits of eligible staff members spending a minimum of percent of their time providing direct services to consumers at least at the same percentage as provided in the rate models. (iv) For the purpose of this subparagraph, “direct services” are services, supports, care, supervision, or assistance provided by staff directly to a consumer to address the consumer’s needs, as identified in the individual program plan, and includes staff’s participation in training and other activities directly related to providing services to consumers, as well as program preparation functions as defined in

Section of Title of the California Code of Regulations. (

v) Commencing July 1, 2023, a vendor shall be in compliance with the home- and community-based final rule, effective March 17, 2014, or implementing a corrective action plan, to be eligible for the quality incentive program described in subdivision (e). (C) (

i) Commencing January 1, 2025, the department shall implement the fully funded rate models. The fully funded rate models shall be implemented using two payment components, a base rate equaling percent of the rate model, and a quality incentive payment, equaling up to percent of the rate model, to be implemented through the quality incentive program described in subdivision (e). (ii) Notwithstanding any other law, commencing July 1, 2024, the rate models shall be updated to account for the current and any subsequent changes to the statewide minimum wage, as established by

Section 1182.12 of the Labor Code, or other relevant statute. (2) (

A) Effective January 1, 2025, it is the intent of the Legislature that rates be uniform within service categories and adjusted for geographic cost differentials, including differentials in wages, the cost of travel, and the cost of real estate. (

B) Providers who were not identified as requiring a rate increase in the rate study are not eligible for rate adjustments pursuant to paragraph (1). (d)

(1) Beginning in the 2021–22 fiscal year, the department shall implement a hold harmless policy for providers whose rates exceed rate model recommendations. The policy shall freeze a provider’s existing rates until February 28, 2026, after which time the provider’s rates shall be adjusted to equal the rates for other providers in the provider’s service category and region.

(2) Beginning January 1, 2025, the department shall also implement a hold harmless policy for providers whose rates in effect on January 1, 2023, exceed percent of the rate model. The policy shall freeze a provider’s base rate at the rate in effect on January 1, 2023, until February 28, 2026, after which time the provider’s base rates shall be adjusted to equal the base rates for other providers in the provider’s service category and region. The provider shall be eligible for a quality incentive payment that, when added to their base rate, equals the fully funded rate model.

(3) Notwithstanding paragraphs (1) and (2), the department may adjust rates as a result of reviews or audits. (

e) In conjunction with implementing rate reform, the department shall implement a quality incentive program in order to improve consumer outcomes, service provider performance, and the quality of services. (1) (

A) The department shall, with input from stakeholders, develop quality measures or benchmarks, or both, for consumer outcomes and regional center and service provider performance. Given the time necessary to identify and develop the measures or benchmarks described in this paragraph, the department may establish quality measures or benchmarks, or both, in the initial years of the quality incentive program that focus on building capacity, developing reporting systems, gathering baseline data, and similar activities while working towards meaningful outcome measures at the individual consumer level for all services.

Measures or benchmarks, or both, shall initially include process- and performance-related measures for service providers and, by the conclusion of the 2025–26 fiscal year, shall also evolve to include outcome measures at the individual consumer level. In developing the proposed measures or benchmarks, or both, the department shall do all of the following: (

i) Gather public input through regularly held public meetings that are accessible both virtually and by telephone.

Public meeting agendas and meeting materials shall be posted at least three days in advance of any meeting and shared by various means, including internet website updates, focus groups, and other communication. (ii) Provide documents, which may include, but are not limited to, updates, concept papers, interim reports, proposals, and performance and quality measures and benchmarks, and revisions to these materials, to the Legislature and post these materials on an internet website for public comment at least days, as required by the Centers for Medicare and Medicaid Services, prior to submitting a request for federal funding. (iii) Seek input from subject matter experts to understand options for outcomes-based system structures using person-centered planning and alternative payment models. (B) (

i) On or before April 1, 2022, proposed quality measures or benchmarks, or both, shall be provided to the Legislature and posted for public comment, as described in subparagraph (A).

After the department has considered public comments and modified the proposed quality measures or benchmarks, or both, as needed, the measures or benchmarks, or both, shall be finalized and implemented in the 2022–23 fiscal year. (ii) On or before April of any subsequent year in which the department proposes new or revised quality measures or benchmarks, or both, the proposed measures or benchmarks, or both, shall be provided to the Legislature and posted for public comment, as described in subparagraph (A).

After the department has considered public comments and modified the proposed quality measures or benchmarks, or both, as needed, the measures or benchmarks, or both, shall be finalized and implemented in the upcoming fiscal year. (

C) Beginning in the 2024–25 fiscal year, there will be opportunity for eligible providers to earn full quality incentive payments through one or more measures. (

D) Beginning in the 2026–27 fiscal year, a provider shall be compliant with electronic visit verification, home- and community-based services rules, and applicable annual fiscal reviews and audit requirements as a condition of eligibility for the quality incentive program. (2) (

A) The department shall develop a quality incentive payment structure for providers meeting the quality measures or benchmarks, or both, developed pursuant to paragraph (1). The department shall issue written directives to define the way quality incentive payments will be made to service providers based on quality measures or benchmarks, or both, developed and implemented under this subdivision. (

B) The department shall determine each provider’s quality incentive payment percentage prior to the start of the fiscal year, with the exception of the 2024–25 fiscal year, by measuring the provider’s performance against the quality measures or benchmarks for the most recently available reporting period. The department shall provide a written communication to the fiscal and policy committees of the Legislature that reports on the total amount of quality incentive payments estimated to be paid to providers pursuant to this section.

This written communication shall be made as soon as is practicable, but no later than days after the quality incentive payment percentages are determined and the providers are informed of their payments. (

f) On or before March 1, 2024, the department shall provide a status update to the Legislature regarding progress toward implementing rate reform and creating an enhanced person-centered, outcomes-based system. The status update may include, but is not limited to, information about all of the following:

(1) Additional changes that may be necessary to effectively implement rate reform, including adding and amending statutes, regulations, and other departmental policies.

(2) Compliance with rules of the federal Medicaid program, including the home- and community-based services final rule effective on March 17, 2014, and state compliance consistent with the current federal guidance, including all of the following: (

A) A definition of what it means to be compliant with the rules of the federal Medicaid program. (

B) Whether there are certain service categories that are unlikely to achieve compliance due to the structure of the service, and, if so, which categories this includes. (

C) Data about the total number of providers within each service category and the estimated number of providers that have not yet achieved compliance.

(3) Program and system improvement efforts made as a result of the state’s home- and community-based services additional federal funding, including the one-time investment implemented beginning in the 2021–22 state fiscal year, including a description of how the department will build on the investments. (

g) For purposes of this section, “rate model” means a rate model included in the rate study submitted to the Legislature pursuant to

Section 4519.8. (

h) Operative through December 31, 2030, contracts and contract amendments to procure services to implement this

section are exempt from the requirements of the Public Contract Code and the State Administrative Manual, and from approval by the Department of General Services. (h)</xhtml:p>"?> (

i) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with

Section 11340) of Part of Division of Title of the Government Code), the department may implement, interpret, or make specific this

section by means of written directives or similar instructions until regulations are adopted, which shall occur no later than December 31, 2030. (i)</xhtml:p>"?> (

j) Implementation of this

section is contingent upon the approval of federal funding.

SEC.

Section 4519.11 of the Welfare and Institutions Code is amended to read: 4519.11. (

a) Commencing on July 1, 2025, and every other year thereafter, the department shall review and update the rate models per the cost inputs available at the time of the review and shall post the updated rate models on its internet website no later than January of the following year. (

b) An adjustment to a provider rate pursuant to the updated rate models shall be contingent upon the appropriation of funds by the Legislature in the annual Budget Act and approval of federal funding. (

c) For purposes of this section, “rate model” means a rate model included in the rate study submitted to the Legislature pursuant to

Section 4519.8. (

d) Operative through December 31, 2030, contracts and contract amendments to procure services to implement this

section are exempt from the requirements of the Public Contract Code and the State Administrative Manual, and from approval by the Department of General Services.

SEC.

Section 4519.12 is added to the Welfare and Institutions Code , immediately following

Section 4519.11 , to read: 4519.12. (

a) It is the intent of the Legislature that the department and regional centers actively partner with and support regional center service providers to successfully meet the benchmarks of the quality incentive program. (

b) The department and regional centers shall continue and enhance robust ongoing technical assistance, training, and operational guidance to service providers. (

c) The department shall 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. (

d) The department shall make data collection requirements clear and accessible, and ensure they do not place an undue administrative burden on service providers. (

e) The department shall evaluate the reasons why some providers have been unable to access the quality incentive rate increment for the 2026–27 fiscal year. The department and regional centers shall support service providers in meeting the qualifying prerequisites to maximize access to the quality incentive rate increment for the 2027–28 fiscal year and ongoing, immediately following the department’s issuance of quality incentive measures for each fiscal year.

SEC. 24.

Section of the Welfare and Institutions Code is amended to read: 4572. The State Department of Developmental Services shall develop and implement a plan to monitor, evaluate, and improve the quality of community-based services through the use of a performance dashboard. The department shall work with stakeholders, including, but not limited to, regional centers, consumer advocates, providers, and the Legislature, on the development of the dashboard. The dashboard shall be published annually and in a machine-readable format.

Each regional center shall publish its own dashboard and shall post a link to the department’s dashboard on its internet website. The dashboard shall include, but not be limited to, all of the following metrics: (

a) Recognized quality and access measures. (

b) Measures to indicate the movement toward compliance with the federal Home and Community-Based Services Waiver rules (CMS 2249-F and CMS 2296-F). (

c) Measures to evaluate the changes in the number of consumers who work in competitive integrated employment. (d)

(1) Until February 1, 2027, the number of complaints referred to the department pursuant to subdivision (

c) of

Section 4731, for every 1,000 consumers served, by each regional center.

(2) Commencing February 1, 2027, the information described in subdivision (

o) of

Section 4891. (

e) The number of administrative fair hearings held pursuant to

Article 3 (commencing with

Section 4710) of

Chapter 7, separated by eligibility and service issues, for individuals ages three and over, for every one thousand consumers served, by each regional center.

SEC.

Section 4620.3 of the Welfare and Institutions Code is amended to read: 4620.3. (

a) To provide more uniformity and consistency in the administrative practices and services of regional centers throughout the state, promote appropriateness of services, maximize efficiency of funding, address the state budget deficit, ensure consistency with Lanterman Act values, maintain the entitlement to services, and improve cost-effectiveness, the department, in collaboration with stakeholders, shall develop best practices for the administrative management of regional centers and for regional centers to use when purchasing services for consumers and families. (

b) In developing regional center administrative management best practices, the department shall consider the establishment of policies and procedures to ensure prudent fiscal and program management by regional centers; effective and efficient use of public resources; consistent practices to maximize the use of federal funds; detection and prevention of fraud, waste, and abuse; and proper contracting protocols. (

c) In developing purchase of services best practices, the department shall consider eligibility for the service; duration of service necessary to meet objectives set in an individual program plan; frequency and efficacy of the service necessary to meet objectives in an individual program plan; impact on community integration; service providers’ qualifications and performance; rates; parental and consumer responsibilities pursuant to Sections 4646.4, 4659, and of this code and

Section of the Government Code; and self-directed service options. (

d) The department shall ensure that implementation of best practices that impact individual services and supports are made through the individual program planning process provided for in this division or an individualized family service plan pursuant to

Section of the Government Code, and that consumers and families are notified of any exceptions or exemptions to the best practices and their appeal rights established in

Section 4701. (

e) Purchase of services best practices developed pursuant to this

section may vary by service category and may do all of the following:

(1) Establish criteria determining the type, scope, amount, duration, location, and intensity of services and supports purchased by regional centers for consumers and their families.

(2) Mod