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Dear Community,
Governor Newsom’s proposed 2026-27 budget includes several proposed changes to California law. These proposals were released earlier this week by the California Department of Finance. If approved later this year, these changes will take effect on July 1, 2026, as part of the 2026-27 state budget.
Summaries of Proposed Changes
You can access more detailed information about each proposal by clicking the links below.
Early Intervention Programs Oversight
- This proposal would transfer responsibility for overseeing schools that implement “Part C” early intervention programs to the Department from the California Department of Education.
Employment Access Alignment
- We are partnering with the Department of Rehabilitation to create a “no wrong door” service model for individuals with intellectual and developmental disabilities who want to find employment.
- This partnership will remove the need to worry about which department to work with. It is intended to make access to employment services faster for individuals and reduce confusion and stress.
- This proposal will also remove the requirement that employment service providers be accredited by the Commission on Accreditation of Rehabilitation Facilities.
Federal Access Rule
- This proposal would establish a new grievance process. The new grievance process is required by federal Access Rule regulations. Starting in July 2026, people will be able to file a grievance if they believe:
- Their Individual Program Plan was not developed in a person-centered way; or
- Their authorized services are not being provided in a person-centered way; or
- Their residential facility does not comply with federal home- and community-based settings requirements.
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This proposal also would merge the “4731” and “citizen complaint” processes into the new process.
- The proposal intends to improve timely resolutions of issues for individuals and reduce confusion about how to file different types of complaints.
Life Outcomes Improvement System
- This proposal would identify LOIS as the single system to be used by all regional centers, when it is available for implementation.
- The proposal also would require the Department to approve any major changes to current case management systems before LOIS is fully implemented.
Rate Reform/Quality Incentive Program Contract Exemption
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This proposal would continue a contracting exemption for rate reform and the Quality Incentive Program to December 31, 2030. This extension would allow the Department and its current contractor to:
- continue updating rates,
- manage the complexity of rate reform,
- transfer knowledge to department employees, and
- provide more time to complete the rulemaking process with community input.
Regional Center Supported Living Services 40-Hour Work Week
- The Department proposes that employees of regional center vendors who provide supported living services receive overtime pay, following state law. This is the law today, but pending federal regulations could change this.
Regional Center Oversight
- The Department is proposing changes to help strengthen how regional centers are governed and overseen, including:
- Professionalize and provide more training and support for regional center governing boards, so they can better oversee operations and funding, while keeping individuals and families actively involved in shaping priorities that reflect their needs
- Merge the Department’s core regional center contract with the regional center performance contract and the regional center performance measures to clarify expectations across regional centers
- Authorize funding allocations to regional centers to be done without the administrative process and delays of formal contract amendments
- Update the authority of the Department to address persistent regional center noncompliance with the terms of contracts with the Department
- Remove an outdated rule that requires service providers to have a physical office within every regional center’s area, unless it’s needed to deliver a service
- End the practice called “courtesy vendorization” to simplify the process for service providers who want to expand where they offer services
Remote Services
- This proposal would put into law the authority to provide some services remotely when requested by an individual. Right now, these same services can be delivered remotely under a directive from the Department, which is set to expire at the end of the year.
Self-Determination Program Administrative Costs Funding
- This proposal would remove outdated language regarding the use of historical savings for administrative costs of the Self-Determination Program.
Please visit the Department’s budget information page to access trailer bill language of each proposal.
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