California Senate Bill SB143

California 2025-2026 Regular Session

• Introduced: 1/23/25
• Refer: 2/5/25
• Engrossed: 3/20/25
• Refer: 3/24/25
• Refer: 6/24/25

Caption

An act relating to the Budget Act of 2025. An act to amend Sections 4511.1, 4519.10, 4581, 4620.3, 4620.4, 4648, 4685.8, 4688.21, 4851, 4857.1, 4860, 4861, and 4870 of, to add Section 4580.5 to, and to repeal Section 4784 of, the Welfare and Institutions Code, relating to developmental services, and making an appropriation therefor, to take effect immediately, bill related to the budget.

Summary

SB 143 is a budget-related developmental services bill that makes a broad set of changes to California’s Lanterman Developmental Disabilities Services Act framework. It revises rules for the statewide Self-Determination Program, including changing how individual budgets are calculated, requiring regional centers to certify spending plans, and directing the Department of Developmental Services to create standardized statewide processes and procedures with community input by March 1, 2027. The bill also expands and formalizes reporting and planning around the Master Plan for Developmental Services, including requiring the Master Plan committee to meet at least twice a year and requiring ongoing implementation updates to the Legislature and Governor. The bill also updates provider rate and program rules across several developmental services categories. It ties eligibility for the quality incentive program to compliance with electronic visit verification, home- and community-based services rules, and audit requirements beginning in fiscal year 2026-27, and it shortens the hold-harmless rate freeze period to February 28, 2026. It changes rules for supported employment, work activity, tailored day services, and vouchered community-based training services by shifting certain rates from fixed statutory amounts to rates set by the department and posted on its website, revising some staffing ratios and definitions, and removing the requirement that habilitation providers be accredited community nonprofit agencies. The bill also repeals the monthly parental fee for certain children receiving 24-hour out-of-home care through regional centers or state hospitals. SB 143 further makes several equity- and access-related changes. It continues and conditions implicit bias training for regional center staff on legislative appropriation, expands language access and cultural competency efforts, and requires regional centers to support non-English-speaking consumers in accessing health and safety waiver-related services subject to appropriation. The bill also appropriates $2.789 million from the General Fund for project planning activities at regional centers associated with the Life Outcomes Improvement System, and it declares itself an urgency-style budget bill to take effect immediately if enacted. The overall sentiment reflected in the available vote history appears generally favorable, at least at the Senate stage, where the bill passed 28-10 on third reading. The bill’s structure as a budget measure and the absence of committee transcript excerpts limit direct evidence of debate, but the content suggests broad support for developmental services system modernization, with an emphasis on transparency, equity, and implementation planning. At the same time, the bill’s many funding contingencies and delayed implementation dates indicate an effort to balance program expansion with fiscal constraints. The main points of contention likely center on cost, administrative control, and provider impacts. Potential concerns include the repeal of the parental fee, the shift from fixed statutory rates to department-set rates for some services, the new compliance conditions for quality incentive payments, and the move to standardized Self-Determination Program procedures that may be viewed as increasing oversight. Providers and regional centers may also be affected by the shortened rate-freeze timeline, new audit and EVV requirements, and the removal of some accreditation and rate protections, while advocates may focus on whether the bill sufficiently advances self-determination, equity, and service access for consumers and families.

Impact

SB 143 amends multiple sections of the Welfare and Institutions Code governing developmental services, including regional center operations, the Self-Determination Program, provider rate-setting, habilitation and supported employment services, tailored day services, and the Master Plan for Developmental Services. It repeals the statutory monthly parental fee for certain out-of-home care placements, conditions some training and language-access requirements on appropriations, and appropriates $2.789 million for Life Outcomes Improvement System planning. The bill also shifts several service rates and program standards from fixed statutory formulas to department-set rates and procedures, increasing administrative discretion for DDS while adding reporting, certification, and compliance requirements for providers and regional centers.

Sentiment

The available voting history suggests the bill had meaningful legislative support, passing the Senate 28-10 on third reading. The bill’s budget-related framing, immediate-effect language, and appropriation for developmental services planning indicate it was treated as part of the broader budget package rather than as a standalone policy fight. Overall, the bill appears to have been viewed positively as a system-modernization measure, though the lack of transcript excerpts limits direct insight into floor or committee debate.

Contention

Likely areas of contention include the repeal of the parental fee, which removes a revenue source and a long-standing cost-sharing mechanism; the shift to department-set rates for supported employment and tailored day services, which may concern providers seeking predictability; and the new quality-incentive eligibility conditions tied to EVV, HCBS compliance, and audits, which may be burdensome for providers. Self-Determination Program changes may also draw scrutiny from participants and advocates if standardized procedures are seen as improving consistency at the expense of flexibility, while regional centers may be concerned about added administrative duties and reporting requirements. The bill’s appropriation contingencies also suggest some provisions depend on future funding, which can be a point of concern for both advocates and implementers.