BILL ANALYSIS AB 302 Page 1 Date of Hearing: April 1, 2009 ASSEMBLY COMMITTEE ON APPROPRIATIONS Kevin De Leon, Chair AB 302 (Beall) - As Introduced: February 17, 2009 Policy Committee: Human Services Vote: 5-2 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill requires the Department of Developmental Services (DDS) to conduct annual analysis to be published in the aggregate and for each of the 21 Regional Centers (RC) to determine: 1)The proportion of RC-eligible individuals by ethnicity, age, and primary language who have no purchase of services (POS) expenditures. 2)The average annual per capita POS expenditures for consumers by residence type, service category, ethnicity, age, and primary language. FISCAL EFFECT 1)One-time cost of $200,000 GF and on-going costs of $100,000 GF to conduct statewide and RC-specific analysis and post it online. This bill requires the analysis of eligible but unserved consumers. It is not clear that this population is easily identified, therefore actual costs may be higher. 2)This bill is designed to highlight inequities in POS spending and reduce differences between ethnic and racial groups. If this research is effective, cost pressures are created to increase entitlement services under the Lanterman Act. The 2009-10 POS budget is $2.8 billion. A one-percent increase in this budget is $280 million (66% GF). COMMENTS AB 302 Page 2 1)Rationale . This bill requires DDS to publish annual reports regarding POS expenditures and services by a number of demographic variables, including primary language and ethnicity. The author indicates several reports over the past 15 year have shown significant differences in expenditures for consumers of different racial groups. For example, a recently published report by researchers at the University of California, San Francisco concluded that African-American, Asian, and Latino consumers had annual POS expenditures 10% and 25% lower than their Caucasian counterparts. Research indicates such differences may reflect service access, demand, and discrimination. 2)Many Codes within Purchase of Services . POS for consumers by RCs fall into 10 major service categories and total $2.5 billion (all funds) in 2008-09. The 10 categories are 1) community care facilities, 2) medical facilities, 3) day programs, 4) habilitation services, 5) transportation, 6) support services, 7) in-home respite, 8) out-of-home respite, 9) health care, and 10) miscellaneous services. Within the 10 major service categories, about 190 different and more specific service expenditure codes are authorized by DDS and used by the RCs to classify purchase of service expenditures for entry into the central POS database. 3)Is More Study Needed ? Numerous studies on the actual or suspected inequities in POS expenditures have been conducted since the early 1990s through the present day. Although findings have varied, many of the studies have confirmed questions of access and equity for a number of subpopulations. It is unclear how this bill will further answer the subsequent questions about solutions, including increased funding, to reduce disparities and improve quality for RC consumers. 4)Related Legislation . AB 1535 (Bass) in 2005 addressed similar research and equity issues as this bill. AB 1535 was amended to address a different subject. Analysis Prepared by : Mary Ader / APPR. / (916) 319-2081