AB 1565 Summary

• Requires the Department of Developmental Services to submit a comprehensive plan to the Legislature by August 1, 2017, addressing sustainability, quality, and transparency of community-based services for individuals with developmental disabilities, including assessment of rate-setting methods and funding approaches for regional centers.

• Increases rates for community care facilities, residential service providers, supported living service providers, and nonresidential service providers by 10% effective July 1, 2016, with additional increases tied to the California Consumer Price Index beginning July 1, 2017 (contingent on the 2017 Budget Act not implementing alternative reforms).

• Modifies administrative cost limitations for service providers based on annual payment amounts received from regional centers: 15% for providers receiving $2 million or more annually, 20% for those receiving $500,000-$2 million, and 25% for those receiving $500,000 or less.

• Increases supported employment service rates from $30.82 to $34.24 per hour for both individualized and group services, with a further increase to $37.66 per hour effective July 1, 2017 (contingent on 2017 Budget Act action), and increases associated intake and placement fees.

• Provides 10% increase to regional center operating budgets via the core staffing formula beginning July 1, 2016, plus additional funding for minimum wage compliance costs for both regional centers and their service vendors.