SB 638 Summary

• Requires the Department of Developmental Services to submit a comprehensive plan to the Legislature by August 1, 2016, addressing sustainability, quality, and transparency of community-based services for individuals with developmental disabilities, including recommendations for regional center funding and rate-setting methodologies.

• Increases regional center operating budget funding by 10% beginning July 1, 2015, and by 10% plus any California Consumer Price Index increases since July 1, 2015, beginning July 1, 2016 (contingent on the 2016 Budget Act not implementing alternative reforms).

• Increases rates for community care facilities, residential service providers, supported living providers, and nonresidential service providers by 10% effective July 1, 2015, and by the percentage increase in the California Consumer Price Index starting July 1, 2016 (subject to federal matching fund availability).

• Adjusts administrative cost caps for service provider contracts based on total annual payments received, ranging from 15% for providers receiving $2 million or more annually to 25% for providers receiving $500,000 or less annually.

• Requires the Department of Developmental Services to establish different facility rates based on size (number of beds) to ensure the viability of community care facilities, with emergency regulations due by July 1, 2016, and adds separate funding requirements for minimum wage compliance costs.