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Bill

SB 1617

DHFS-DHS-DIRECT SUPPORT WAGE

104th Regular Session Introduced by Li Arellano and 9 co-sponsors

Raises frontline IDD worker wages via higher DHS/HFS rates, including at least $2/hour more, funded through Medicaid/state reimbursements.

Rule 3-9(a) / Re-referred to Assignments
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Bill Summary · SB 1617

Summary — SB 1617 (Community Disability Living Wage Act / “DHFS‑DHS‑Direct Support Wage”)

Note on source material: The provided document contains fragments from multiple states (including an Arizona appropriation for a SR‑347 overpass and a Hawaii meeting‑time bill). This summary focuses on the substantive Illinois measure titled and described in the packet as relating to direct support wages (introduced by Sen. Celina Villanueva), which matches the bill title “DHFS‑DHS‑DIRECT SUPPORT WAGE.”

Purpose / Intent

SB 1617 (Community Disability Living Wage Act) aims to raise wages for front‑line staff who support people with intellectual and developmental disabilities (IDD) in community and residential settings. The Legislature’s stated intent is to (1) improve recruitment and retention of direct support personnel (DSPs and similar front‑line workers), (2) reduce staff turnover and overtime, and (3) ensure that increased state reimbursement for community disability providers is passed through to employee wages.

Key provisions

  • Defines “front‑line personnel” to include DSPs, aides, front‑line supervisors, and other non‑administrative direct support staff in community residential, day, employment, and service coordination programs funded by the State or through Medicaid (Title XIX).
  • Requires the Department of Human Services (DHS) to set reimbursement rates that “build toward livable wages” for front‑line personnel in residential and day programs and service coordination agencies serving persons with IDD.
  • For community‑based providers (and for specified ID/DD and medically complex DD facilities under the Illinois Public Aid Code), subject to federal approval for Medicaid‑funded services, rates effective for services delivered on or after July 1, 2025 must be increased sufficiently to:
    • Provide a minimum $2.00 per hour wage increase over wages in effect on June 30, 2025 for front‑line personnel; and
    • Provide wages for other residential non‑executive direct care staff (excluding DSPs) at the U.S. Department of Labor’s average wage (the Department will define this by rule).
  • States the intent that funds from rate increases be allocated to front‑line employee wages.
  • Grants emergency rulemaking authority to DHS and the Department of Healthcare and Family Services (HFS) to implement the statutory changes promptly; emergency rule authority is limited (the provision is repealed one year after the Act’s effective date).

Who is affected

  • Direct support professionals (DSPs), aides, front‑line supervisors, and other non‑administrative direct care staff in IDD community and residential programs.
  • Community‑based disability service providers and ID/DD / MC/DD facilities that receive State or Medicaid funding.
  • DHS and HFS (rulemaking and rate‑setting responsibilities).
  • Medicaid program administration (federal approval may be required for rate changes).
  • State budget/taxpayers (increased Medicaid and State reimbursement obligations likely; specific fiscal figures are not specified in the bill text).

Timeline & procedural notes

  • Rate increases apply to services delivered on or after July 1, 2025 (subject to federal approval where applicable).
  • Emergency rulemaking is authorized to expedite implementation; that emergency authority expires one year after the Act’s effective date.
  • Companion bill: HB 1453.
  • Sponsors / co‑sponsors include Sen. Celina Villanueva and multiple Illinois senators; legislative actions show introduction in February 2025 and committee activity thereafter.

Potential impacts

  • Likely immediate wage increases for many front‑line IDD workers (minimum $2/hour raise), improving worker income and retention.
  • Increased State and Medicaid expenditure to fund higher reimbursement rates; actual budget impact would depend on rate‑setting details and enrollment/service volumes.
  • Operational requirement for DHS/HFS to promulgate rules and secure any necessary federal (CMS) approvals for Medicaid‑funded rate changes.

If you want, I can: (1) extract and summarize the Arizona SR‑347 appropriation text also present in the packet, or (2) draft a short fiscal impact checklist listing what financial analyses would be needed to estimate the bill’s cost.

Compiled from official sources — confirm details with the bill’s official record.

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