AB 163 California Assembly · 2025-2026 Regular Session

Developmental services.

AB 163 is a procedural bill that expresses the Legislature's intent to enact future statutory changes related to the Budget Act of 2025. It does not specify any concrete budget policies, funding allocations, or direct impacts on residents or programs. The bill serves as a preparatory step to guide the development of the actual 2025 state budget. No specific mechanisms, provisions, or affected groups are detailed in the provided abstract.
Bill status passed 3 of 5 stages cleared
Introduction
Jan 2025
Committee Review
Jun 2026
Assembly Passage
Mar 2025
Senate Passage
Governor
Introduced Jan 8, 2025 Last action Aug 6, 2026
Maddy AI version diff · 2 comparisons

What changed between versions

01/08/25 - Introduced 06/26/26 - Amended Senate · 18 edits · Jun 26, 2026
MAJOR
AB 163 was transformed from a one-line placeholder bill (expressing only legislative intent to enact Budget Act changes) into a comprehensive developmental services reform bill with dozens of substantive provisions. The amended version covers direct care purchases, early intervention transitions, employment services integration, remote service delivery, grievance procedures, regional center governance, information technology modernization, and funding mechanisms. This represents a complete rewrite that adds approximately 5,800 lines of new statutory text across the Government Code, Public Contract Code, and Welfare and Institutions Code.
SCOPE

The bill went from a single section expressing legislative intent to a multi-section bill amending over 40 code sections across three codes (Government Code, Public Contract Code, Welfare and Institutions Code), making it a comprehensive developmental services reform measure.

Exempts contracts and contract amendments for rate reform implementation from the Public Contract Code, State Administrative Manual, and Department of General Services approval through December 31, 2030. Extends the regulation adoption deadline from June 30, 2028 to December 31, 2030.

Removes the prohibition on the department from directly operating a regional center program for longer than 120 days before contracting with a new governing board. Authorizes operation through contract during interim periods and requires semiannual notification to the Joint Legislative Budget Committee.

Effective January 1, 2027, vendors are no longer required to maintain a physical location within a regional center's service area unless a physical location is required for service delivery. Requires service providers to give preference to individuals served by their initially vendorizing regional center.

FISCAL

Authorizes the State Department of Developmental Services to make direct care purchases in individual amounts under $10,000 starting with the 2026-27 fiscal year for department-operated facilities, defined as goods or services necessary for an individual's health, safety, or continuity of care.

Restricts federal financial participation funds for the Self-Determination Program to offsetting criminal background check and administrative costs only. Separately requires up to $1,000,000 in reappropriated funds (July 1, 2026 through June 30, 2030) for participant needs including community resource fairs and statewide training.

Reappropriates funds from the Budget Acts of 2023, 2024, and 2025 related to Local Volunteer Advisory Committees and extends the encumbrance period until June 30, 2030.

REQUIREMENT

Requires hourly workers employed by regional center vendors providing supported living services to be paid overtime at 1.5 times their regular rate for hours worked over 40 per workweek, notwithstanding any other law.

Removes the requirement for work activity programs and supported employment programs to comply with CARF (Commission on Accreditation of Rehabilitation Facilities) standards, replacing it with service standards established by the department.

Requires the State Department of Education to enter into an interagency agreement with the State Department of Developmental Services to facilitate seamless transition between Part C and Part B of the federal Individuals with Disabilities Education Act, with written directives to be issued no later than June 30, 2029 as a condition to receive federal Part C grant funds.

Requires the department and Department of Rehabilitation to develop an interagency agreement creating an integrated employment services system between DOR and regional centers, with semiannual milestone reports on the department's website beginning December 1, 2026 until the system is developed.

Increases the regional center governing board contract approval threshold from $250,000 to $350,000 (until July 1, 2030), then to $450,000 as of July 1, 2030, increasing by $50,000 every 5 years thereafter. Exempts purchase of service authorizations from this requirement.

Limits regional center governing boards to no more than 17 members with specified expertise (California law, management, board governance, fiscal/financial, developmental disability programs) by January 1, 2028. Requires boards to retain or employ an attorney with at least 5 years of relevant legal experience by July 1, 2027.

Requires the department, beginning July 1, 2026, to post HCBS Final Rule compliance information on its website and update it at least every 6 months, shifting this monitoring responsibility from regional centers to the department.

ELIGIBILITY

Authorizes individuals and families to voluntarily choose to receive specified services remotely until December 31, 2028, if remote delivery would effectively meet needs identified through the planning team process. Requires providers to document remote services monthly.

ENFORCEMENT

Establishes a new grievance procedure effective February 1, 2027, replacing the prior complaint procedure. Under the new system, grievances are filed with the department (not regional centers), reviewed within 5 days, and resolution plans must be issued within 60 days. The department must review a sample of resolution plans and annually post deidentified results on its website.

TECHNICAL

Mandates that the Life Outcomes Improvement System (LOIS) serve as the single case management and financial technology system used by all regional centers, requiring them to discontinue all other such systems upon LOIS readiness. Requires quarterly written updates to legislative committees and the Legislative Analyst's Office on LOIS planning.

DEFINITION

Authorizes the department to establish a distinct service code and rate model for family teaching homes separate from family home agencies, considering costs for housing, staffing, and census. Requires family home agencies providing family teaching homes to use that separate rate model if established.

Floor votes · Assembly Mar 20, 2025

How they voted

5217
Passed · 10 other
Total votes 79
Mar 20, 2025
D Democratic59
52 Yea 7
88% Yea
R Republican20
17 Nay 3
85% Nay
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
14
Key actions
3
Committee
4
Amendments
1
Jun 29, 2026
Upper · Passed
From committee: Do pass. (Ayes 15. Noes 0.) (June 29).
upper
Jun 26, 2026
Introduced
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.
upper
Apr 2, 2025
Committee
Referred to Com. on B. & F. R.
upper
Mar 20, 2025
Lower · Passed
Read third time. Passed. Ordered to the Senate. (Ayes 53. Noes 17. Page 744.)
lower
Feb 3, 2025
Committee
Referred to Com. on BUDGET.
lower
Jan 9, 2025
Lower · Passed
From printer. May be heard in committee February 8.
lower
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.