CaliforniaAB 1432025-2026 Regular SessionHouseWALLET

Budget Act of 2025.

Sponsored By: Jesse Gabriel (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

19 provisions identified: 8 benefits, 0 costs, 11 mixed.

Self‑Determination budgets and payment rules

Your initial budget is usually the last 12 months of regional center spending, minus one‑time costs and items paid outside the program. For new participants without a 12‑month history, the center uses its average cost unless your needs show otherwise. The cost of an independent facilitator does not raise your budget. The regional center pays the full cost of your financial management service and pays at least twice a month. The financial manager gives you and your coordinator a monthly budget statement.

Self-Determination: eligibility, rules, and help

The Self-Determination Program is available statewide and voluntary starting July 1, 2021. You can join if you are a regional center consumer with a developmental disability. If you live in a licensed facility, you must be expected to move to the community within 90 days; the center starts planning within 60 days of request. Before enrolling, you complete a state orientation, try generic services first, and use a vendored financial manager. You must apply for Medi-Cal on time if eligible. Regional centers do outreach, help with Medi-Cal applications, certify spending plans, review high spending, and make sure services do not stop when you exit. DDS can issue program directives until regulations are adopted. Local and statewide advisory committees of consumers and families oversee the program.

Faster crisis help, shorter stays

In emergencies, regional centers may use an institution only when no other federally eligible services are available. They finish an assessment within 30 days, hold an IPP meeting right after, make a transition plan, and limit emergency stays to 180 days unless extended in 90‑day updates. For acute crises, if a move is not expected within 72 hours, the center completes court paperwork and a full assessment within 10 days, holds an IPP within 30 days, and reviews at 90 days. Stays over six months need added findings and court review; stays may not exceed one year except a limited 30‑day extension. Centers assess people already in institutions and consider specialized resource options. Centers can buy extra staffing when the IPP team finds it necessary and must review it often. Crisis services aim to keep people in their homes; if a move is needed, emergency housing is local and return happens as soon as possible.

Master Plan reports to guide services

By March 15, 2026, the Health and Human Services Agency and DDS submit an initial Master Plan report with priorities through 2027–28, near‑term recommendations, needed laws and funding, workgroups, and budget change proposals for 2026–27. Starting March 15, 2027, they file annual updates each year through March 15, 2036. Each update lists law changes, funding needs, progress made, and summaries of meetings and public comments to guide services.

More job and internship support

DDS runs a paid internship program, subject to funding. Interns are paid at or above minimum and customary wages, and internships are capped at 1,040 hours per year in integrated settings. Providers earn $750 at 30 days and $1,000 at 60 days for paid internships placed on or after July 1, 2021. For competitive jobs, providers get $1,000 at 30 days, $1,250 at six months, and $1,500 at 12 months; these rise to $2,000, $2,500, and $3,000 for milestones that fall July 1, 2021 through June 30, 2025. Regional centers may vendor new supported employment programs when standards are met, including conditional vendoring without CARF if Department of Rehabilitation standards are met and CARF is pursued on schedule. DDS also sets and posts hourly rates for supported employment and group services.

Higher pay for disability service providers

Starting April 1, 2022, provider rates rise by 25% of the gap between the March 31, 2022 rate and the fully funded model. From January 1, 2023 through December 31, 2024, rates move to 50% of that gap. Supported employment programs also get set fees: $360 at intake, $720 at job placement, and $720 after 90 days. The intake fee is waived if the person had an intake with the same program in the past 12 months. The placement and 90‑day fees are waived if the person is placed with other consumer(s) who share the same job coach during the same hours.

Faster rules and a statewide plan

The Secretary of Health and Human Services, with the Department of Developmental Services, leads a statewide Master Plan for Developmental Services. The plan uses input from people with disabilities, families, and experts. The department can issue written directives to run these rules until formal regulations are in place; regulations are due by June 30, 2028. The department can also use emergency rules for tailored day and vouchered training services and must file a compliance certificate within 24 months. The law repeals Section 4784 of the Welfare and Institutions Code.

Fewer large facilities, more community options

Regional centers do not buy residential services from 24‑hour facilities with 16+ beds, unless the facility meets narrow waiver or Medi‑Cal rules, including special mental health rehab rules and required emergency assessments and transition plans. Centers cannot make new placements in institutions for mental disease; this has applied in all cases since July 1, 2013. Since January 1, 2020, any acute‑crisis IMD admission requires a written assessment showing community options cannot meet needs and a director’s confirmation. Regional centers may arrange community placements and follow‑along supports in homes you own or lease, foster family homes, health facilities, and licensed care; parents must approve for children. Clients’ rights advocates get notice at least seven days before IPP meetings and admissions unless the consumer objects; facilities must tell the center within five days of outside placements, and the center must assess within 30 days.

New limits and rates for day services

You cannot get tailored day services on the same day as another day or work program, unless you have a transition plan; any overlap can last no more than six months. Your tailored day monthly hours are capped at authorized days in the month times four. For vouchered community-based training, the posted rate includes employer taxes and needed transportation (not FMS), and a bus pass can be funded when needed. Direct support workers must be qualified adults; drivers must have a valid California license and insurance. From July 1, 2022 through June 30, 2025, the tailored day hourly rate equals 80% of a base set at twice the 'Community‑Based Day, Community Only, 1:2' model rate.

Self-Determination access, budgets, and moves

You can join the Self-Determination Program even if you are not on Medi-Cal, as long as other rules are met and services qualify for federal funding. If you move to a new regional center area, you keep your SDP services and your remaining budget follows you. Your budget is set once every 12 months and can be updated if your circumstances change. You may move money between approved service codes and budget categories with approval, and the regional center must promptly tell your financial management service to do it. If you leave the program by choice, you cannot rejoin for at least 12 months.

Stronger language access and rights info

DDS runs a language access and cultural program, and regional centers must carry it out. Centers can use funds to translate vital documents and websites, provide oral and sign‑language interpreters, offer orientations, check language needs, coordinate services, and review translation quality; these funds cannot replace existing efforts. If lawmakers provide money, centers get extra funds to help non‑English speakers apply for health‑and‑safety waiver payments and must report the number helped each year. DDS must create a simple rights poster for facilities and day programs to post, and centers must provide rights information in other languages, braille, or audio. State‑run implicit bias training happens only if funded by the Legislature; centers are urged to continue training as they are able.

Tailored day and training options

Adult consumers can choose tailored day services or a vouchered community‑based training service in place of, or with, other day programs. The plan is set in the IPP and can focus on work or education with flexible hours. The vouchered training service runs in community settings, uses a financial manager, and does not allow a parent or conservator as the worker. It is capped at 150 hours per quarter and takes effect with federal CMS approval. Starting July 1, 2025, DDS sets and posts the hourly rate for tailored day services. Programs with higher hourly rates on June 30, 2022 are protected from immediate cuts.

Provider rates and quality bonuses

Beginning January 1, 2025, DDS pays a base rate equal to 90% of the rate model, plus a quality incentive up to 10%. Rates above model levels are frozen through February 28, 2026. If a provider’s January 1, 2023 rate was over 90% of the model, that base rate stays frozen until February 28, 2026; after that, rates align within each region. These providers can still earn quality incentives. DDS runs a quality incentive program with public input. Full payments start in 2024–25. Starting in 2026–27, eligibility requires electronic visit verification, HCBS compliance, and annual fiscal reviews or audits. DDS also surveys providers each year on costs, placements, and wages.

Provider rates, quality rules, and wages

Starting January 1, 2025, rates are uniform within each service category and include geographic cost adjustments; providers not identified in the rate study as needing increases cannot get those adjustments. Starting July 1, 2024, rate models update when the statewide minimum wage changes. For 2022–23, most rate increases must raise pay or benefits for staff who spend at least 75% of their time on direct care, and providers must keep audit‑ready records. Starting July 1, 2023, vendors must follow the federal HCBS final rule or implement a corrective plan to get quality incentive payments. These rate reforms depend on required federal funding approvals.

Supported employment rules and payments

Group supported employment must use a job coach‑to‑consumer ratio between 1:2 and 1:8; individualized services use 1:1. Regional centers buy habilitation only from vendored providers. For individualized services, job coach travel is reimbursed only one‑way (headquarters to a worksite, or from one consumer worksite to another). Group members start and end at the same time unless the regional center approves an exception; funding can end if the group falls below the minimum and is not fixed within 90 days. Regional centers must pay the established supported employment rates; new work activity programs get the posted rate. Providers cannot claim both internship placement and other placement payments for the same placement, and placement incentives do not apply until an intern moves into a competitive job.

Master Plan oversight and language access

The Master Plan committee meets at least twice a year starting in 2025, through March 15, 2036 or later if needed. By March 15, 2025, the Secretary submits the first Master Plan report. Through December 31, 2035, DDS links any budget change proposals to Master Plan recommendations. Beginning January 10, 2022, DDS reports each year on how language access funds are used and remaining needs. The law appropriates $2.789 million for Life Outcomes Improvement System planning at regional centers, available through June 30, 2026. DDS also develops best practices with stakeholders; if they affect services, changes go through the person’s plan and families are told how to appeal.

Bias training at regional centers

The Department of Developmental Services requires implicit bias training at all regional centers. Staff and contractors who do intake, assessments, or eligibility must complete it. Centers must keep records, report yearly completion rates by job title, and the department posts training details online. The department or an approved regional center buys the training.

Background checks for non‑vendored workers

Certain non‑vendored direct care workers must complete fingerprint background checks before starting work. Prints go to the state Department of Justice and the FBI. The worker or employing agency pays the fingerprint and any FMS admin fees. DDS may block a hire based on results, with appeal rights.

Planning rights, safe care, and tech use

IPP teams must consider cost‑effective supports such as paid roommates, personal help, and technical or financial help. If your IPP calls for a facilitator, you choose the person. Services and hearings can use phone or video, but replacing in‑person appearances needs your informed consent or your representative’s. Regional centers do not pay for experimental treatments that are not proven safe or effective; for people getting them on July 1, 2009, the ban applied on August 1, 2009. By August 1, 2026, DDS issues a written rule defining “cost effective” after at least 45 days of public feedback; it stays in effect until regulations are adopted, but no longer than two years.

Sponsors & Cosponsors

Sponsor

  • Jesse Gabriel

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 153 • No: 49

Senate vote 6/27/2025

Item 95 — Senate SFLOOR

Yes: 29 • No: 9

House vote 6/27/2025

Item 1000 — Assembly AFLOOR

Yes: 58 • No: 18

legislature vote 6/25/2025

Vote in CS62

Yes: 13 • No: 5

House vote 3/20/2025

Item 73 — Assembly AFLOOR

Yes: 53 • No: 17

Actions Timeline

  1. Chaptered by Secretary of State - Chapter 12, Statutes of 2025.

    6/27/2025Senate
  2. Approved by the Governor.

    6/27/2025legislature
  3. Enrolled and presented to the Governor at 3:15 p.m.

    6/27/2025legislature
  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 58. Noes 18. Page 2339.).

    6/27/2025House
  5. Assembly Rule 63 suspended. (Ayes 54. Noes 19. Page 2329.)

    6/27/2025House
  6. In Assembly. Concurrence in Senate amendments pending.

    6/27/2025House
  7. Read third time. Passed. Ordered to the Assembly. (Ayes 29. Noes 9. Page 1808.).

    6/27/2025Senate
  8. Read second time. Ordered to third reading.

    6/26/2025Senate
  9. From committee: Do pass. (Ayes 13. Noes 5.) (June 25).

    6/25/2025Senate
  10. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F. R.

    6/24/2025Senate
  11. Joint Rule 62(a) suspended. (Ayes 27. Noes 9. Page 1703.)

    6/23/2025Senate
  12. Referred to Com. on B. & F. R.

    4/2/2025Senate
  13. In Senate. Read first time. To Com. on RLS. for assignment.

    3/20/2025Senate
  14. Read third time. Passed. Ordered to the Senate. (Ayes 53. Noes 17. Page 734.)

    3/20/2025House
  15. Read second time. Ordered to third reading.

    3/18/2025House
  16. (Ayes 53. Noes 17. Page 643.)

    3/17/2025House
  17. Ordered to second reading.

    3/17/2025House
  18. Withdrawn from committee.

    3/17/2025House
  19. Referred to Com. on BUDGET.

    2/3/2025House
  20. From printer. May be heard in committee February 8.

    1/9/2025House
  21. Read first time. To print.

    1/8/2025House

Bill Text

  • Chaptered

    6/27/2025

  • Enrolled

    6/27/2025

  • Amended Senate

    6/24/2025

  • Introduced

    1/8/2025

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