(a) For any occupation in which a minimum wage has been established, the commission may issue to an employee who is mentally or physically disabled, or both, a special license authorizing the employment of the licensee for a period not to exceed one year from date of issue, at a wage less than the legal minimum wage. The commission shall fix a special minimum wage for the licensee. That license may be renewed on a yearly basis. No new licenses may be issued after January 1, 2022. Upon release of the plan, as described in subdivision (c), a license may only be renewed for existing licenseholders who meet the requisite benchmarks in the development plan established in accordance with subdivisions (c) and (d). This subdivision shall remain operative only until January 1, 2025, or until the plan as described in subdivision (c) is released, whichever is later, and as of that date is inoperative.

(b) Commencing January 1, 2025, or when the plan as described in subdivision (c) is released, whichever is later, an employee with a disability shall not be paid less than the legal minimum wage required by Section 1182.12 or the applicable local minimum wage ordinance, whichever is higher.

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(c) The State Council on Developmental Disabilities, in consultation with stakeholders and relevant state agencies, as appropriate, including, but not limited to, the Department of Finance, the Labor and Workforce Development Agency, the Department of Rehabilitation, the State Department of Education, and the State Department of Developmental Services, shall develop a multiyear phaseout plan with stakeholder involvement, by January 1, 2023, in accordance with the procedures set forth in subdivision (d), to pay any employee with a disability, by January 1, 2025, no less than the minimum wage otherwise required for an employee under Section 1182.12 or the applicable local minimum wage ordinance, whichever is higher.

(d) The multiyear phaseout plan, as described in subdivision (c) shall include, but not be limited to, all of the following:

(1) Benchmarks and desired outcomes for each year of the plan.

(2) A list of the resources necessary to ensure that employees with disabilities can receive services and support according to their needs and preferences of the individuals and in an integrated setting, regardless of the nature or severity of each individual’s disabilities, including an assessment of the financial investment needed to transition individuals to competitive integrated employment or other services, the development of new rates for new service models or additional rates necessary for competitive integrated employment supports, and suggestions for revenue streams.

(3) A road map for applying to and using all federal funding programs, including, but not limited to, programs available under Medicaid waiver amendments, technical assistance grants under the Office of Disability Employment Policy, and resources under the federal Workforce Innovation and Opportunity Act, to assist individuals with disabilities to obtain competitive, integrated employment.

(4) Data collection and reporting requirements for tracking the following outcomes for the individual employees with disabilities who are transitioned out of subminimum wage employment:

(A) Wages earned.

(B) Hours worked each month.

(C) Type of job.

(D) Length of employment.

(E) Services utilized to obtain competitive integrated employment.

(5) Data collection and reporting requirements that will track the following aggregate outcomes of employees with disabilities who transition out of subminimum wage employment:

(A) Total number of individuals with disabilities who are employed and paid subminimum wage.

(B) Employment rates.

(C) The number of individuals who were participating in a subminimum wage position that are not participating in job search activities.

(D) The number of individuals who move from subminimum wage positions to nonpaying activities.

(E) The number of individuals who move from subminimum wage positions to positions that are paid at or above minimum wage.

(e) In developing the multiyear phaseout plan pursuant to subdivisions (c) and (d), the State Council on Developmental Disabilities shall engage with and seek input from people with developmental disabilities who have experience working for subminimum wage and stakeholder organizations, including, but not limited to, the protection and advocacy agency designated by the Governor in this state to fulfill the requirements and assurances of the federal Developmental Disabilities Assistance and Bill of Rights Act of 2000, other self-advocate and family organizations, provider organizations, including representatives of organizations utilizing the special minimum wage license and those who previously utilized special minimum wage licenses and have successfully transitioned to other employment models, employer and business organizations, and vocational training programs representing those impacted by the changes made to wages for individuals with disabilities.

(f) (1) By January 1, 2023, the State Council on Developmental Disabilities shall release and publicly post a report detailing its multiyear phaseout plan as described in subdivision (c) on its internet website. The State Council on Developmental Disabilities shall also submit a copy of the report on its multiyear phaseout plan to the appropriate policy committees of the Legislature for review on or before January 1, 2023. The report shall include, but not be limited to, all of the following:

(A) Planned benchmarks developed to achieve the outcomes of the plan.

(B) Recommendations for funding levels or other resources necessary to implement the plan.

(C) Outreach and follow up for each employee with a disability who is being paid less than the minimum wage to ensure that the employee’s wages are brought up to the minimum wage. This outreach and followup may include consultation with members of the employee’s hiring or service coordination team, as appropriate.

(2) The requirement for submitting a report imposed under paragraph (1) is inoperative on January 1, 2027, pursuant to § 10231.5 of the Government Code.

(3) A report to be submitted pursuant to paragraph (2) shall be submitted in compliance with § 9795 of the Government Code.

(g) (1) The State Council on Developmental Disabilities shall publicly post on its internet website and submit to the Legislature an annual report beginning on January 1, 2024, and continuing for each year of the multiyear phaseout plan, detailing at least, but not limited to, all of the following:

(A) Status updates on the progress made to meet the developed benchmarks.

(B) Recommendations for funding levels or other resources necessary to implement the plan and an accounting of the resources invested in the multiyear phaseout plan to date.

(C) The data collected in accordance with paragraphs (4) and (5) of subdivision (d).

(2) A report to be submitted pursuant to paragraph (1) shall be submitted in compliance with § 9795 of the Government Code.

(h) For purposes of this section, “employee with a disability” means an employee who has a “physical disability” or “mental disability” as defined in § 12926 of the Government Code.

(Amended by Stats. 2021, Ch. 339, Sec. 2. (SB 639) Effective January 1, 2022.)