Bill Text: CA AB2423 | 2023-2024 | Regular Session | Amended

California Assembly Bill 2423

Bill Title: Developmental services: rates.

Spectrum: Slight Partisan Bill (Republican 6-2)

Status: (Introduced) 2024-05-16 - From committee: Do pass. (Ayes 15. Noes 0.) (May 16). [AB2423 Detail]

Download: California-2023-AB2423-Amended.html

Amended IN Assembly March 21, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 2423

Introduced by Assembly Member Mathis

February 13, 2024

An act to ~~amend Sections 4690, 4690.1, and 4690.2 of~~ add Section 4519.11 to the Welfare and Institutions Code, relating to developmental services.

LEGISLATIVE COUNSEL'S DIGEST

AB 2423, as amended, Mathis. Developmental services: ~~regional centers:~~ rates.

Existing law, the Lanterman Developmental Disabilities Services Act, requires the State Department of Developmental Services to contract with regional centers for the provision of community services and supports for persons with developmental disabilities and their families. Existing law requires the department, 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 Director of Developmental Services to establish, maintain, and revise, as necessary, an equitable process for setting rates of state payment for nonresidential services and in-home respite services purchased by regional centers. Existing law requires the department, in consultation with regional centers and providers of transportation services, to develop a cost statement to be used in setting rates for providers of transportation services.

This bill would require the ~~director or department, as applicable, to annually review those rates to assess whether the rates are sufficient to adequately provide the above-described services to regional center consumers.~~ 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. The bill would also require the department to post the updated rate models to its internet website no later than January 1 of the following year.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

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

SECTION 1.

Section 4519.11 is added to the Welfare and Institutions Code, immediately following Section 4519.10, 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 1 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.

SECTION 1.Section 4690 of the Welfare and Institutions Code is amended to read:
4690.
(a)The Director of Developmental Services shall establish, maintain, and revise, as necessary, an equitable process for setting rates of state payment for nonresidential services purchased by regional centers, and may promulgate regulations establishing program standards, or the process to be used for setting these rates, or both, in order to assure that regional centers may secure high-quality services for persons with developmental disabilities from individuals or agencies vendored to provide these services. In developing the rates pursuant to regulation, the director may require vendors to submit program, cost, or other information, as necessary. The director shall take into account the rates paid by other agencies and jurisdictions for comparable services in order to assure that regional center rates are at competitive levels. In no event shall rates established pursuant to this article be any less than those established for comparable services under the Medi-Cal program.
(b)The director shall annually review the rates set pursuant to subdivision (a) to assess whether the rates are sufficient to provide adequate nonresidential services for consumers. This subdivision does not prohibit the director from reviewing the rates more than once per year.
SEC. 2.Section 4690.1 of the Welfare and Institutions Code is amended to read:
4690.1.
(a)By March 1, 1986, the department, in consultation with representatives of regional centers and providers of transportation services to regional center clients, shall develop a cost statement to be used in setting rates for providers of transportation services.
(b)Notwithstanding subdivision (a), the department may develop alternative procedures for establishing rates for providers of transportation services, including, but not limited to, a noncompetitive process and a competitive process for use by regional centers in which rates of reimbursement are established based on contract bids or proposals.
(c)The department shall annually review the rates set pursuant to subdivision (a) to assess whether the rates are sufficient to provide adequate transportation services for consumers. This subdivision does not prohibit the department from reviewing the rates more than once per year.
SEC. 3.Section 4690.2 of the Welfare and Institutions Code is amended to read:
4690.2.
(a)The Director of Developmental Services shall develop program standards and establish, maintain, and revise, as necessary, an equitable process for setting rates of state payment, based upon those standards, for in-home respite services purchased by regional centers from agencies vendored to provide these services. The Director of Developmental Services may promulgate regulations establishing these standards and the process to be used for setting rates. “In-home respite services” means intermittent or regularly scheduled temporary nonmedical care and supervision provided in the client’s own home, for a regional center client who resides with a family member. These services are designed to do all of the following:
~~(1)Assist family members in maintaining the client at home.~~
~~(2)Provide appropriate care and supervision to ensure the client’s safety in the absence of family members.~~
~~(3)Relieve family members from the constantly demanding responsibility of caring for the client.~~
(4)Attend to the client’s basic self-help needs and other activities of daily living including interaction, socialization, and continuation of usual daily routines which would ordinarily be performed by the family members.
(b)The provisions of subdivisions (b) to (f), inclusive, of Section 4691 and subdivisions (a) to (f), inclusive, and subdivision (h) of Section 4691.5 applicable to community-based day programs, shall also apply to in-home respite service vendors for the purpose of establishing standards and an equitable process for setting rates, except:
(1)The process specified in paragraph (4) of subdivision (a) of Section 4691.5 for increasing rates for fiscal year 1990–91 shall apply only to the administrative portion of the rate for eligible in-home respite service vendors, and the amount of funds available for this increase shall not exceed three hundred thousand dollars ($300,000) of the total amount appropriated for rate increases. The administrative portion of the rate shall consist of the in-home respite service vendor’s allowable costs, other than those for respite worker’s salary, wage, benefits, and travel. Vendors eligible for this rate increase shall include only those in-home respite service vendors which received a deficiency adjustment in their permanent or provisional rate for fiscal year 1989–90, as specified in paragraph (4) of subdivision (a) of Section 4691.5.
(2)In addition, a rate increase shall also be provided for fiscal year 1990–91, for the salary, wage, and benefit portion of the rate for in-home respite service vendors eligible for the increase. The amount of funds available for this rate increase is limited to the remaining funds appropriated for this paragraph and paragraph (1) for fiscal year 1990–91. The amount of increase which each eligible in-home respite service vendor shall receive shall be limited to the amount necessary to increase the salary, wage, and benefit portion of the rate for respite workers to five dollars and six cents ($5.06) per hour in salary and wages plus ninety-five cents ($0.95) in benefits. Vendors eligible for this increase shall include only those in-home respite service vendors whose salary, wage, and benefit portion of their existing provisional or permanent rate, as established by the department for respite workers is below the amounts specified in this paragraph, and the vendor agrees to reimburse its respite workers at no less than these amounts during fiscal year 1990–91 and thereafter. In order to establish rates pursuant to this paragraph, existing programs receiving a permanent or provisional rate shall submit to the department, the program, cost, and other information specified by the department for either the 1988 calendar year, or for the 1988–89 fiscal year. The specified information shall be submitted on forms developed by the department, not later than 45 days following receipt of the required forms from the department, after the effective date of this section. Programs which fail to submit the required information within the time specified shall have payment of their permanent or provisional rate suspended until the required information has been submitted.
(3)Effective July 1, 1990, and pursuant to the rate methodology developed by the department, the administrative portion and the salary, wage, and benefit portion of the rates for in-home respite service vendors currently receiving a provisional or permanent rate shall be combined and paid as a single rate.
(4)Rate increases for fiscal year 1990–91 shall be limited to those specified in paragraphs (1) and (2). For fiscal year 1991–92 and all succeeding fiscal years, the provisions of subdivision (c) of Section 4691, which specify that any rate increases shall be subject to the appropriation of sufficient funds in the Budget Act, shall also apply to rates for in-home respite service vendors.
(5)For the 1998–99 fiscal year, an in-home respite service vendor shall receive rate increases pursuant to subdivision (e) of Section 4691.5. Any rate increase shall be subject to the appropriation of funds pursuant to the Budget Act.
(6)The rate methodology developed by the department may include a supplemental amount of reimbursement for travel costs of respite workers using their private vehicles to and from and between respite sites. The supplemental amount shall be the minimum rate for travel reimbursement for state employees.
(c)In accordance with paragraph (5) of subdivision (b) of Section 4629.5, each regional center shall include on its internet website the purchase of service policies. For respite services, a regional center shall also include any procedures and assessment tools used by the regional center to determine the level of services needed by each consumer.
(d)The director shall annually review the rates set pursuant to this section to assess whether the rates are sufficient to provide adequate in-home respite services for consumers. This subdivision does not prohibit the director from reviewing the rates more than once per year.