HB3698 98TH GENERAL ASSEMBLY

LRB098 14203 RLC 48802 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3698

Introduced , by Rep. Robyn Gabel

SYNOPSIS AS INTRODUCED:

20 ILCS 1705/55.5 new
305 ILCS 5/5-5.4i new

Amends the Mental Health and Developmental Disabilities Administrative Act and the Illinois Public Aid Code. Provides that the Department of Human Services shall establish reimbursement rates which build toward livable wages for direct service personnel in residential and day programs serving individuals with developmental disabilities, including but not limited to intermediate care facilities for the developmentally disabled, community integrated living arrangements, developmental training programs, employment, and other residential and day programs for individuals with developmental disabilities supported by State funds or funding under Title XIX of the federal Social Security Act. Establishes starting wages for direct service personnel. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning care for the developmentally disabled, which may be referred to as the Community Disability Living Wage Act.

WHEREAS, An estimated 23,000 children and adults with developmental disabilities are supported in community-based settings in Illinois; direct service personnel (DSP), are trained paraprofessional staff that are engaged in activities of daily living and community support; these employees earn wages that place them and their families below the poverty level; and

WHEREAS, According to a recent industry salary survey, the average DSP wage in Illinois is $9.35 per hour which is 21% below the U.S. Department of Health and Human Services poverty threshold of $11.32 for a family of 4; this predominately female, minority workforce is often compelled to work many overtime hours or hold down a second job to support their families; many have to fall back on public benefits such as Medicaid and food stamps, creating additional expenditures for state government; low wages are a consequence of the historically low reimbursement rates paid by the State of Illinois to community-based service providers; over the last 10 fiscal years, increases in State funding to these agencies have averaged less than 1% per year, for a total of 9.5%; by contrast, the Consumer Price Index increased 23% over the same period; and

WHEREAS, The lack of adequate wages for employees who perform the challenging work of supporting individuals with disabilities results in high employee turnover, which in turn negatively impacts the quality of services provided; higher wages are proven to reduce staff turnover, improving stability and quality of services while reducing employer training costs; and

WHEREAS, The General Assembly finds that in order to reduce turnover, increase retention, and ensure direct service personnel are adequately compensated for the critically important work they do, an increase in rates and reimbursements to community-based service providers to effectuate an increase in the starting hourly wage paid to direct service personnel is needed; and

WHEREAS, It is the purpose of this amendatory Act to increase the wages of direct service personnel in community disability agencies beyond that of poverty level in an effort to improve their lives and the lives of the vulnerable individuals they support; therefore

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Mental Health and Developmental Disabilities Administrative Act is amended by adding Section 55.5 as follows:

(20 ILCS 1705/55.5 new)

Sec. 55.5. Increased wages for direct service personnel. The Department shall establish reimbursement rates which build toward livable wages for direct service personnel in residential and day programs serving individuals with developmental disabilities under Section 54 of this Act, including but not limited to intermediate care facilities for the developmentally disabled, community integrated living arrangements, developmental training programs, employment, and other residential and day programs for individuals with developmental disabilities supported by State funds or funding under Title XIX of the federal Social Security Act. For the purposes of this Section, "direct service personnel" means direct care staff, front-line supervisors, qualified support professionals, nurses, and non-administrative support staff working in service settings outlined in this Section.

The Department shall increase rates and reimbursements so that on or before July 1, 2016 direct service personnel earn a starting wage of not less than $13 per hour. On or before July 1, 2014 rates shall increase to fund a $1 per hour increase. On or before January 1, 2015 rates shall increase to fund an additional $1 per hour increase. On or before July 1, 2015 rates shall increase to fund an additional $1 per hour increase. On or before January 1, 2016 rates shall increase to fund an additional $0.65 per hour increase.

Section 10. The Illinois Public Aid Code is amended by adding Section 5-5.4i as follows:

(305 ILCS 5/5-5.4i new)

Sec. 5-5.4i. Increased wages for direct service personnel. Under Section 55.5 of the Mental Health and Developmental Disabilities Administrative Act, the amount of the payment rate for all nursing facilities certified by the Department of Public Health under the ID/DD Community Care Act as Intermediate Care for the Developmentally Disabled Facilities or Long Term Care for Under Age 22 facilities shall increase to fund:

(1) a $1 per hour increase on or before July 1, 2014;

(2) an additional $1 per hour increase on or before January 1, 2015;

(3) an additional $1 per hour increase on or before July 1, 2015; and

(4) an increase to fund an additional $0.65 per hour increase on or before January 1, 2016.

Section 99. Effective date. This Act takes effect upon becoming law.