BILL NUMBER: SB 74	ENROLLED
	BILL TEXT

	PASSED THE SENATE  MARCH 16, 2011
	PASSED THE ASSEMBLY  MARCH 16, 2011
	AMENDED IN ASSEMBLY  MARCH 14, 2011

INTRODUCED BY   Committee on Budget and Fiscal Review

                        JANUARY 10, 2011

   An act to amend Sections 4626, 4627, 4639, 4640.6, and 4791 of, to
add Sections 4620.3, 4622.5, 4625.5, 4626.5, 4629.5, 4629.7,
4648.12, 4648.14, and 4652.5 to, and to add Article 2.6 (commencing
with Section 4659.10) to Chapter 5 of Division 4.5 of, the Welfare
and Institutions Code, and to amend Section 10 of Chapter 13 of the
Third Extraordinary Session of the Statutes of 2009, relating to
developmental services, making an appropriation therefor, and
declaring the urgency thereof, to take effect immediately, bill
related to the budget.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 74, Committee on Budget and Fiscal Review. Developmental
services.
   Existing law, the Lanterman Developmental Disabilities Services
Act, requires the State Department of Developmental Services to enter
into contracts with private nonprofit corporations to operate
regional centers for the provision of community services and support
for persons with developmental disabilities and their families.
Existing law sets forth the duties of the regional centers,
including, but not limited to, development of individual program
plans, the purchase of needed services to implement the plan, and
monitoring of the delivery of those services.
   This bill would require the department, in collaboration with
stakeholders, to develop best practices for the administrative
management of regional centers and for regional centers to use when
purchasing services for consumers and families, as specified. The
bill would require the department to submit the proposed best
practices to the fiscal and applicable policy committees of the
Legislature no later than May 15, 2011, and would make the best
practices effective only upon subsequent legislative enactment.
   Existing law establishes minimum requirements relating to the
composition of the governing board of a regional center. Existing law
requires the department to adopt and enforce conflict-of-interest
regulations to ensure that members of the governing board, program
policy committee, and employees of the regional center make decisions
with respect to the regional centers that are in the best interests
of consumers and families.
   This bill would require the regional center to annually submit to
the department documentation demonstrating that the composition of
the board is in compliance with the statutory provisions. This bill
would require a regional center governing board to adopt a written
policy requiring any regional center contract of $250,000 or more to
be approved by the regional center governing board, and would
condition the validity of those contracts upon board approval in
compliance with that policy. The bill would also require that the
department adopt emergency and other regulations to establish
standard conflict-of-interest reporting requirements to require
regional center board members, directors, and identified employees to
complete and file conflict-of-interest statements. The bill would
make conforming changes and would delete provisions permitting
persons who served on a board or program policy committee on January
1, 1982, to continue to serve. The bill would require each regional
center to submit a conflict-of-interest policy to the department by
July 1, 2011, and to post the policy on its Internet Web site by
August 1, 2011.
   Existing law requires the 5-year contracts between the department
and the regional center to contain prescribed provisions, including,
but not limited to, the requirement that the contracts include annual
performance objectives.
   This bill would, in addition, require that the contracts include
provisions requiring the regional center to adopt, maintain, and post
on its Internet Web site a transparency and public information
policy containing prescribed components. The bill would require the
department to establish a transparency portal on its Internet Web
site to include, but not be limited to, a link to the regional center
transparency and public information policy Internet Web sites, and
other service monitoring and enforcement information.
   The bill would require, notwithstanding any other provision of
law, all regional center contracts with the department, and all
regional center contracts or agreements with service providers, to
require that not more than 15% of regional center funds be spent on
administrative costs, as defined. This bill would require service
providers and contractors, upon request, to provide regional centers
with access to specified information pertaining to the service
providers' and contractors' negotiated rates.
   Existing law also requires the governing board of a regional
center to annually contract with an independent accounting firm for
an audited financial statement.
   This bill would prohibit the audit of a regional center from being
completed by the same accounting firm more than 5 times in every 10
years.
   Under existing law, regional center contracts require certain
specified staffing levels and expertise, which have been suspended
from July 1, 2010, to June 30, 2011.
   This bill would suspend those staffing requirements through June
30, 2012.
   Under existing law, regional centers purchase needed services for
individuals with developmental disabilities through approved service
providers or arrange for their provision through other publicly
funded agencies. Existing law provides for a vendorization process
for service providers.
   This bill would make certain persons or entities that have been
convicted of prescribed crimes or have been found liable for fraud or
abuse in any civil proceeding, or that have entered into a
settlement in lieu of conviction for fraud or abuse in any government
program, within the previous 10 years, ineligible to be regional
center vendors, and would require the department to adopt related
emergency and nonemergency regulations. The bill would require the
State Department of Social Services and the State Department of
Public Health to notify the department of any administrative action,
as defined, initiated against a licensee serving consumers with
developmental disabilities.
   This bill would require an entity receiving payments from one or
more regional centers, except for state and local governmental
agencies, the University of California, or the California State
University, to contract with an independent accounting firm for an
audit or review of that entity's financial statements, as specified.
The bill would require regional centers to review and require
resolution by the entity for issues identified in the report that
have a direct or indirect impact on regional center services and to
take appropriate action, up to termination of vendorization, for lack
of adequate resolution of issues. The bill would require a regional
center to notify the department of all qualified opinion reports or
reports noting significant issues that directly or indirectly impact
regional center services within 30 days after receipt.
   Existing law, the California Early Intervention Services Act,
provides various early intervention services for infants and toddlers
who have disabilities to enhance their development and to minimize
the potential for developmental delays. Existing law establishes
procedures for the resolution of disputes between a regional center
and a generic agency, as defined, over provision of, or payment for,
services that are contained in an individualized family service plan
or individual program plan for any child under 6 years of age.
   This bill would establish procedures authorizing the department or
regional center to institute legal proceedings against a 3rd party
or insurance carrier, as specified, when developmental services are
provided or will be provided to a developmental services consumer, or
a child under 36 months of age who is eligible for the California
Early Intervention Program, as a result of an injury for which the
3rd party or carrier is liable.
   This bill would entitle the department or regional center to
recover the reasonable value of services provided to the child or
consumer from a person who has brought an action or claim against a
3rd party who may be liable for causing the death of the child or
consumer. The bill would provide for a similar recovery provision
when the action is brought by the child or consumer, but would
provide for the deduction of a share of the child's or consumer's
attorney's fees and litigation costs from the reasonable value of the
services provided, as specified. The bill would set forth the powers
and duties of the department in recouping these amounts, and would
prohibit the department or regional center from recovering an amount
greater than the child or consumer.
   This bill would establish procedures for the enforcement of a lien
perfected by the department or regional center upon a judgment or
award in favor of a child or consumer for a 3rd-party injury. This
bill would require an insurer, as defined, to perform various duties
relating to actions or claims brought pursuant to the bill, including
a requirement to make requested information available to the
department or regional center, pursuant to procedures set forth in a
cooperative agreement entered into by the insurer and the department
or regional center.
   Existing law requires regional centers, in order to implement
changes in the level of funding for regional center purchase of
services, to reduce certain payments for services delivered by 4.25%
from July 1, 2010, to June 30, 2011, except as specified, and
authorizes the temporary modification of personnel requirements,
functions, or qualifications, or staff training requirements, and
suspends prescribed annual review and reporting requirements for
affected providers, until June 30, 2011.
   This bill would continue those provisions until June 30, 2012.
   This bill would appropriate $1,000 from the General Fund to the
State Department of Developmental Services for administrative costs.
   The California Constitution authorizes the Governor to declare a
fiscal emergency and to call the Legislature into special session for
that purpose. Governor Schwarzenegger issued a proclamation
declaring a fiscal emergency, and calling a special session for this
purpose, on December 6, 2010. Governor Brown issued a proclamation on
January 20, 2011, declaring and reaffirming that a fiscal emergency
exists and stating that his proclamation supersedes the earlier
proclamation for purposes of that constitutional provision.
   This bill would state that it addresses the fiscal emergency
declared and reaffirmed by the Governor by proclamation issued on
January 20, 2011, pursuant to the California Constitution.
   This bill would declare that it is to take effect immediately as
an urgency statute and a bill providing for appropriations related to
the Budget Bill.
   Appropriation: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 4620.3 is added to the Welfare and Institutions
Code, to read:
   4620.3.  (a) To provide more uniformity and consistency in the
administrative practices and services of regional centers throughout
the state, promote appropriateness of services, maximize efficiency
of funding, address the state budget deficit, ensure consistency with
Lanterman Act values, maintain the entitlement to services, and
improve cost-effectiveness, the department, in collaboration with
stakeholders, shall develop best practices for the administrative
management of regional centers and for regional centers to use when
purchasing services for consumers and families.
   (b) In developing regional center administrative management best
practices, the department shall consider the establishment of
policies and procedures to ensure prudent fiscal and program
management by regional centers; effective and efficient use of public
resources; consistent practices to maximize the use of federal
funds; detection and prevention of fraud, waste, and abuse; and
proper contracting protocols.
   (c) In developing purchase of services best practices, the
department shall consider eligibility for the service; duration of
service necessary to meet objectives set in an individual program
plan; frequency and efficacy of the service necessary to meet
objectives in an individual program plan; impact on community
integration; service providers' qualifications and performance;
rates; parental and consumer responsibilities pursuant to Sections
4646.4, 4659, 4677, 4782, 4783, and 4784 of this code and Section
95004 of the Government Code; and self-directed service options.
   (d) The department shall ensure that implementation of best
practices that impact individual services and supports are made
through the individual program planning process as provided for in
this division or an individualized family service plan pursuant to
Section 95020 of the Government Code, and that consumers and families
are notified of any exceptions or exemptions to the best practices
and their appeal rights established in Section 4701.
   (e) Purchase of services best practices developed pursuant to this
section may vary by service category and may do all of the
following:
   (1) Establish criteria determining the type, scope, amount,
duration, location, and intensity of services and supports purchased
by regional centers for consumers and their families.
   (2) Modify payment rates.
   (3) Reflect family and consumer responsibilities, pursuant to
Sections 4646.4, 4659, 4677, 4782, 4783, and 4784 of this code and
Section 95004 of the Government Code.
   (f) Purchase of services best practices shall include provisions
for exceptions to ensure the health and safety of the consumer or to
avoid out-of-home placement or institutionalization.
   (g) Best practices developed pursuant to this section shall not do
either of the following:
   (1) Endanger a consumer's health or safety.
   (2) Compromise the state's ability to meet its commitments to the
federal Centers for Medicare and Medicaid Services for participation
in the Home and Community-Based Services Waiver or other federal
funding of services for persons with developmental disabilities.
   (h) The department shall submit the proposed best practices to the
fiscal and applicable policy committees of the Legislature by no
later than May 15, 2011. This submission shall include a description
of the process followed to collaborate with system stakeholders; the
anticipated impact of the best practices, coupled with prior
reductions on consumers, families, and providers; estimated cost
savings associated with each practice; and draft statutory language
necessary to implement the best practices. Implementation of the best
practices shall take effect only upon subsequent legislative
enactment.
  SEC. 2.  Section 4622.5 is added to the Welfare and Institutions
Code, to read:
   4622.5.  By August 15 of each year, the governing board of each
regional center shall submit to the department detailed
documentation, as determined by the department, demonstrating that
the composition of the board is in compliance with Section 4622.
  SEC. 3.  Section 4625.5 is added to the Welfare and Institutions
Code, to read:
   4625.5.  (a) The governing board of each regional center shall
adopt and maintain a written policy requiring the board to review and
approve any regional center contract of two hundred fifty thousand
dollars ($250,000) or more, before entering into the contract.
   (b) No regional center contract of two hundred fifty thousand
dollars ($250,000) or more shall be valid unless approved by the
governing board of the regional center in compliance with its written
policy pursuant to subdivision (a).
   (c) For purposes of this section, contracts do not include vendor
approval letters issued by regional centers pursuant to Section 54322
of Title 17 of the California Code of Regulations.
  SEC. 4.  Section 4626 of the Welfare and Institutions Code is
amended to read:
   4626.  (a) The department shall give a very high priority to
ensuring that regional center board members and employees act in the
course of their duties solely in the best interest of the regional
center consumers and their families without regard to the interests
of any other organization with which they are associated or persons
to whom they are related. Board members, employees, and others acting
on the regional center's behalf, as defined in regulations issued by
the department, shall be free from conflicts of interest that could
adversely influence their judgment, objectivity, or loyalty to the
regional center, its consumers, or its mission.
   (b) In order to prevent potential conflicts of interest, no member
of the governing board or member of the program policy committee of
a regional center shall be any of the following:
   (1) An employee of the State Department of Developmental Services
or any state or local agency that provides services to a regional
center consumer, if employed in a capacity which includes
administrative or policymaking responsibility, or responsibility for
the regulation of the regional center.
   (2) An employee or a member of the state council or an area board.

   (3) Except as otherwise provided in subdivision (h) of Section
4622, an employee or member of the governing board of any entity from
which the regional center purchases consumer services.
   (4) Any person who has a financial interest, as defined in Section
87103 of the Government Code, in regional center operations, except
as a consumer of regional center services.
   (c) A person with a developmental disability who receives
employment services through a regional center provider shall not be
precluded from serving on the governing board of a regional center
based solely upon receipt of these employment services.
   (d) The department shall ensure that no regional center employee
or board member has a conflict of interest with an entity that
receives regional center funding, including, but not limited to, a
nonprofit housing organization and an organization qualified under
Section 501(c)(3) of the Internal Revenue Code, that actively
functions in a supporting relationship to the regional center.
   (e) The department shall develop and publish a standard
conflict-of-interest reporting statement. The conflict-of-interest
statement shall be completed by each regional center governing board
member and each regional center employee specified in regulations,
including, at a minimum, the executive director, every administrator,
every program director, every service coordinator, and every
employee who has decisionmaking or policymaking authority or
authority to obligate the regional center's resources.
   (f) Every new regional center governing board member and regional
center executive director shall complete and file the
conflict-of-interest statement described in subdivision (e) with his
or her respective governing board within 30 days of being selected,
appointed, or elected. Every new regional center employee referenced
in subdivision (e) and every current regional center employee
referenced in subdivision (e) accepting a new position within the
regional center shall complete and file the conflict-of-interest
statement with his or her respective regional center within 30 days
of assuming the position.
   (g) Every regional center board member and regional center
employee referenced in subdivision (e) shall complete and file the
conflict-of-interest statement by August 1 of each year.
   (h) Every regional center board member and regional center
employee referenced in subdivision (e) shall complete and file a
subsequent conflict-of-interest statement upon any change in status
that creates a potential or present conflict of interest. For the
purposes of this subdivision, a change in status includes, but is not
limited to, a change in financial interests, legal commitment,
regional center or board position or duties, or both, or outside
position or duties, or both, whether compensated or not.
   (i) The governing board shall submit a copy of the completed
conflict-of-interest statements of the governing board members and
the regional center executive director to the department within 10
days of receipt of the statements.
   (j) A person who knowingly provides false information on a
conflict-of-interest statement required by this section shall be
subject to a civil penalty in an amount up to fifty thousand dollars
($50,000), in addition to any civil remedies available to the
department. An action for a civil penalty under this provision may be
brought by the department or any public prosecutor in the name of
the people of the State of California.
   (k) The director of the regional center shall review the
conflict-of-interest statement of each regional center employee
referenced in subdivision (e) within 10 days of receipt of the
statement. If a potential or present conflict of interest is
identified for a regional center employee that cannot be eliminated,
the regional center shall, within 30 days of receipt of the
statement, submit to the department a copy of the
conflict-of-interest statement and a plan that proposes mitigation
measures, including timeframes and actions the regional center or the
employee, or both, will take to mitigate the conflict of interest.
   (l) The department and the regional center governing board shall
review the conflict-of-interest statement of the regional center
executive director and each regional center board member to ensure
that no conflicts of interest exist. If a present or potential
conflict of interest is identified for a regional center director or
a board member that cannot be eliminated, the regional center
governing board shall, within 30 days of receipt of the statement,
submit to the department and the state council a copy of the
conflict-of-interest statement and a plan that proposes mitigation
measures, including timeframes and actions the regional center
governing board or the individual, or both, will take to mitigate the
conflict of interest.
  SEC. 5.  Section 4626.5 is added to the Welfare and Institutions
Code, to read:
   4626.5.  Each regional center shall submit a conflict-of-interest
policy to the department by July 1, 2011, and shall post the policy
on its Internet Web site by August 1, 2011. The policy shall do, or
comply with, all of the following:
   (a) Contain the elements of this section and be consistent with
applicable law.
   (b) Define conflicts of interest.
   (c) Identify positions within the regional center required to
complete and file a conflict-of-interest statement.
   (d) Facilitate disclosure of information to identify conflicts of
interest.
   (e) Require candidates for nomination, election, or appointment to
a regional center board, and applicants for regional center director
to disclose any potential or present conflicts of interest prior to
being appointed, elected, or confirmed for hire by the regional
center or the regional center governing board.
   (f) Require the regional center and its governing board to
regularly and consistently monitor and enforce compliance with its
conflict-of-interest policy.
  SEC. 6.  Section 4627 of the Welfare and Institutions Code is
amended to read:
   4627.  (a) The director of the department shall adopt and enforce
conflict-of-interest regulations to ensure that members of the
governing board, program policy committee, and employees of the
regional center make decisions with respect to the regional centers
that are in the best interests of the center's consumers and
families.
   (b) The department shall monitor and ensure the regional centers'
compliance with this section and Sections 4626 and 4626.5. Failure to
disclose information pursuant to these sections and related
regulations may be considered grounds for removal from the board or
for termination of employment.
   (c) The department shall adopt regulations to develop standard
conflict-of-interest reporting requirements.
   (d) The department shall adopt emergency regulations to implement
this section and Sections 4626 and 4626.5 by May 1, 2011. The
adoption, amendment, repeal, or readoption of a regulation authorized
by this section is deemed to be necessary for the immediate
preservation of the public peace, health and safety, or general
welfare, for purposes of Sections 11346.1 and 11349.9 of the
Government Code, and the department is hereby exempted from that
requirement. For purposes of subdivision (e) of Section 11346.1 of
the Government Code, the 120-day period, as applicable to the
effective period of an emergency regulatory action and submission of
specified materials to the Office of Administrative Law, is hereby
extended to 180 days.
   (e) The department shall adopt regulations to implement the terms
of subdivision (d) through the regular rulemaking process pursuant to
Sections 11346 and 11349.1 of the Government Code within 18 months
of the adoption of emergency regulations pursuant to subdivision (d).

  SEC. 7.  Section 4629.5 is added to the Welfare and Institutions
Code, to read:
   4629.5.  (a) In addition to the requirements set forth in Section
4629, the department's contract with a regional center shall require
the regional center to adopt, maintain, and post on its Internet Web
site a board-approved policy regarding transparency and access to
public information. The transparency and public information policy
shall provide for timely public access to information, including, but
not limited to, information regarding requests for proposals and
contract awards, service provider rates, documentation related to
establishment of negotiated rates, audits, and IRS Form 990. The
transparency and public information policy shall be in compliance
with applicable law relating to the confidentiality of consumer
service information and records, including, but not limited to,
Section 4514.
   (b) To promote transparency, each regional center shall include on
its Internet Web site, as expeditiously as possible, at least all of
the following:
   (1) Regional center annual independent audits.
   (2) Biannual fiscal audits conducted by the department.
   (3) Regional center annual reports pursuant to Section 4639.5.
   (4) Contract awards, including the organization or entity awarded
the contract, and the amount and purpose of the award.
   (5) Purchase of service policies.
   (6) The names, types of service, and contact information of all
vendors, except consumers or family members of consumers.
   (7) Board meeting agendas and approved minutes of open meetings of
the board and all committees of the board.
   (8) Bylaws of the regional center governing board.
   (9) The annual performance contract and year-end performance
contract entered into with the department pursuant to this division.
   (10) The biannual Home and Community-based Services Waiver program
review conducted by the department and the State Department of
Health Care Services.
   (11) The board-approved transparency and public information
policy.
   (12) The board-approved conflict-of-interest policy.
   (13) Reports required pursuant to Section 4639.5.
   (c) The department shall establish and maintain a transparency
portal on its Internet Web site that allows consumers, families,
advocates, and others to access provider and regional center
information. Posted information on the department's Internet Web site
transparency portal shall include, but need not be limited to, all
of the following:
   (1) A link to each regional center's Internet Web site information
referenced in subdivision (b).
   (2) Biannual fiscal audits conducted by the department.
   (3) Vendor audits.
   (4) Biannual Home and Community-based Services Waiver program
reviews conducted by the department and the State Department of
Health Care Services.
   (5) Biannual targeted case management program and federal nursing
home reform program reviews conducted by the department.
   (6) Early Start Program reviews conducted by the department.
   (7) Annual performance contract and year-end performance contract
reports.
  SEC. 8.  Section 4629.7 is added to the Welfare and Institutions
Code, to read:
   4629.7.  (a) Notwithstanding any other provision of law, all
regional center contracts or agreements with service providers in
which rates are determined through negotiations between the regional
center and the service provider shall expressly require that not more
than 15 percent of regional center funds be spent on administrative
costs. For purposes of this subdivision, direct service expenditures
are those costs immediately associated with the services to consumers
being offered by the provider. Funds spent on direct services shall
not include any administrative costs. Administrative costs include,
but are not limited to, any of the following:
   (1) Salaries, wages, and employee benefits for managerial
personnel whose primary purpose is the administrative management of
the entity, including, but not limited to, directors and chief
executive officers.
   (2) Salaries, wages, and benefits of employees who perform
administrative functions, including, but not limited to, payroll
management, personnel functions, accounting, budgeting, and facility
management.
   (3) Facility and occupancy costs, directly associated with
administrative functions.
   (4) Maintenance and repair.
   (5) Data processing and computer support services.
   (6) Contract and procurement activities, except those provided by
a direct service employee.
   (7) Training directly associated with administrative functions.
   (8) Travel directly associated with administrative functions.
   (9) Licenses directly associated with administrative functions.
   (10) Taxes.
   (11) Interest.
   (12) Property insurance.
   (13) Personal liability insurance directly associated with
administrative functions.
   (14) Depreciation.
   (15) General expenses, including, but not limited to,
communication costs and supplies directly associated with
administrative functions.
   (b) Notwithstanding any other provision of law, all contracts
between the department and the regional centers shall require that
not more than 15 percent of all funds appropriated through the
regional center's operations budget shall be spent on administrative
costs. For purposes of this subdivision, "direct services" includes,
but is not limited to, service coordination, assessment and
diagnosis, monitoring of consumer services, quality assurance, and
clinical services. Funds spent on direct services shall not include
any administrative costs. For purposes of this subdivision,
administrative costs include, but are not limited to, any of the
following:
   (1) Salaries, wages, and employee benefits for managerial
personnel whose primary purpose is the administrative management of
the regional center, including, but not limited to, directors and
chief executive officers.
   (2) Salaries, wages, and benefits of employees who perform
administrative functions, including, but not limited to, payroll
management, personnel functions, accounting, budgeting, auditing, and
facility management.
   (3) Facility and occupancy costs, directly associated with
administrative functions.
   (4) Maintenance and repair.
   (5) Data processing and computer support services.
   (6) Contract and procurement activities, except those performed by
direct service employees.
   (7) Training directly associated with administrative functions.
   (8) Travel directly associated with administrative functions.
   (9) Licenses directly associated with administrative functions.
   (10) Taxes.
   (11) Interest.
   (12) Property insurance.
   (13) Personal liability insurance directly associated with
administrative functions.
   (14) Depreciation.
   (15) General expenses, including, but not limited to,
communication costs and supplies directly associated with
administrative functions.
   (c) Consistent with subdivision (a), service providers and
contractors, upon request, shall provide regional centers with access
to any books, documents, papers, computerized data, source
documents, consumer records, or other records pertaining to the
service providers' and contractors' negotiated rates.
  SEC. 9.  Section 4639 of the Welfare and Institutions Code is
amended to read:
   4639.  (a) The governing board of a regional center shall annually
contract with an independent accounting firm for an audited
financial statement. The audit report and accompanying management
letter shall be reviewed and approved by the regional center board
and submitted to the department within 60 days of completion and
before April 1 of each year. Upon submission to the department, the
audit report and accompanying management letter shall be made
available to the public by the regional center. It is the intent of
the Legislature that no additional funds be appropriated for this
purpose.
   (b) For the 2011-12 fiscal year and subsequent years, the audit
specified in subdivision (a) shall not be completed by the same
accounting firm more than five times in every 10 years.
  SEC. 10.  Section 4640.6 of the Welfare and Institutions Code is
amended to read:
   4640.6.  (a) In approving regional center contracts, the
department shall ensure that regional center staffing patterns
demonstrate that direct service coordination are the highest
priority.
   (b) Contracts between the department and regional centers shall
require that regional centers implement an emergency response system
that ensures that a regional center staff person will respond to a
consumer, or individual acting on behalf of a consumer, within two
hours of the time an emergency call is placed. This emergency
response system shall be operational 24 hours per day, 365 days per
year.
   (c) Contracts between the department and regional centers shall
require regional centers to have service coordinator-to-consumer
ratios, as follows:
   (1) An average service coordinator-to-consumer ratio of 1 to 62
for all consumers who have not moved from the developmental centers
to the community since April 14, 1993. In no case shall a service
coordinator for these consumers have an assigned caseload in excess
of 79 consumers for more than 60 days.
   (2) An average service coordinator-to-consumer ratio of 1 to 45
for all consumers who have moved from a developmental center to the
community since April 14, 1993. In no case shall a service
coordinator for these consumers have an assigned caseload in excess
of 59 consumers for more than 60 days.
   (3) Commencing January 1, 2004, the following
coordinator-to-consumer ratios shall apply:
   (A) All consumers three years of age and younger and for consumers
enrolled in the Home and Community-based Services Waiver program for
persons with developmental disabilities, an average service
coordinator-to-consumer ratio of 1 to 62.
   (B) All consumers who have moved from a developmental center to
the community since April 14, 1993, and have lived continuously in
the community for at least 12 months, an average service
coordinator-to-consumer ratio of 1 to 62.
   (C) All consumers who have not moved from the developmental
centers to the community since April 14, 1993, and who are not
described in subparagraph (A), an average service
coordinator-to-consumer ratio of 1 to 66.
   (4) For purposes of paragraph (3), service coordinators may have a
mixed caseload of consumers three years of age and younger,
consumers enrolled in the Home and Community-based Services Waiver
program for persons with developmental disabilities, and other
consumers if the overall average caseload is weighted proportionately
to ensure that overall regional center average service
coordinator-to-consumer ratios as specified in paragraph (3) are met.
For purposes of paragraph (3), in no case shall a service
coordinator have an assigned caseload in excess of 84 for more than
60 days.
   (d) For purposes of this section, "service coordinator" means a
regional center employee whose primary responsibility includes
preparing, implementing, and monitoring consumers' individual program
plans, securing and coordinating consumer services and supports, and
providing placement and monitoring activities.
   (e) In order to ensure that caseload ratios are maintained
pursuant to this section, each regional center shall provide service
coordinator caseload data to the department, annually for each fiscal
year. The data shall be submitted in the format, including the
content, prescribed by the department. Within 30 days of receipt of
data submitted pursuant to this subdivision, the department shall
make a summary of the data available to the public upon request. The
department shall verify the accuracy of the data when conducting
regional center fiscal audits. Data submitted by regional centers
pursuant to this subdivision shall:
   (1) Only include data on service coordinator positions as defined
in subdivision (d). Regional centers shall identify the number of
positions that perform service coordinator duties on less than a
full-time basis. Staffing ratios reported pursuant to this
subdivision shall reflect the appropriate proportionality of these
staff to consumers served.
   (2) Be reported separately for service coordinators whose caseload
includes any of the following:
   (A) Consumers who are three years of age and older and who have
not moved from the developmental center to the community since April
14, 1993.
   (B) Consumers who have moved from a developmental center to the
community since April 14, 1993.
   (C) Consumers who are younger than three years of age.
   (D) Consumers enrolled in the Home and Community-based Services
Waiver program.
                          (3) Not include positions that are vacant
for more than 60 days or new positions established within 60 days of
the reporting month that are still vacant.
   (4) For purposes of calculating caseload ratios for consumers
enrolled in the Home and Community-based Services Waiver program,
vacancies shall not be included in the calculations.
   (f) The department shall provide technical assistance and require
a plan of correction for any regional center that, for two
consecutive reporting periods, fails to maintain service coordinator
caseload ratios required by this section or otherwise demonstrates an
inability to maintain appropriate staffing patterns pursuant to this
section. Plans of correction shall be developed following input from
the local area board, local organizations representing consumers,
family members, regional center employees, including recognized labor
organizations, and service providers, and other interested parties.
   (g) Contracts between the department and regional center shall
require the regional center to have, or contract for, all of the
following areas:
   (1) Criminal justice expertise to assist the regional center in
providing services and support to consumers involved in the criminal
justice system as a victim, defendant, inmate, or parolee.
   (2) Special education expertise to assist the regional center in
providing advocacy and support to families seeking appropriate
educational services from a school district.
   (3) Family support expertise to assist the regional center in
maximizing the effectiveness of support and services provided to
families.
   (4) Housing expertise to assist the regional center in accessing
affordable housing for consumers in independent or supportive living
arrangements.
   (5) Community integration expertise to assist consumers and
families in accessing integrated services and supports and improved
opportunities to participate in community life.
   (6) Quality assurance expertise, to assist the regional center to
provide the necessary coordination and cooperation with the area
board in conducting quality-of-life assessments and coordinating the
regional center quality assurance efforts.
   (7) Each regional center shall employ at least one consumer
advocate who is a person with developmental disabilities.
   (8) Other staffing arrangements related to the delivery of
services that the department determines are necessary to ensure
maximum cost-effectiveness and to ensure that the service needs of
consumers and families are met.
   (h) Any regional center proposing a staffing arrangement that
substantially deviates from the requirements of this section shall
request a waiver from the department. Prior to granting a waiver, the
department shall require a detailed staffing proposal, including,
but not limited to, how the proposed staffing arrangement will
benefit consumers and families served, and shall demonstrate clear
and convincing support for the proposed staffing arrangement from
constituencies served and impacted, that include, but are not limited
to, consumers, families, providers, advocates, and recognized labor
organizations. In addition, the regional center shall submit to the
department any written opposition to the proposal from organizations
or individuals, including, but not limited to, consumers, families,
providers, and advocates, including recognized labor organizations.
The department may grant waivers to regional centers that
sufficiently demonstrate that the proposed staffing arrangement is in
the best interest of consumers and families served, complies with
the requirements of this chapter, and does not violate any
contractual requirements. A waiver shall be approved by the
department for up to 12 months, at which time a regional center may
submit a new request pursuant to this subdivision.
   (i) From February 1, 2009, to June 30, 2010, inclusive, the
following shall not apply:
   (1) The service coordinator-to-consumer ratio requirements of
paragraph (1), and subparagraph (C) of paragraph (3), of subdivision
(c).
   (2) The requirements of subdivision (e). The regional centers
shall, instead, maintain sufficient service coordinator caseload data
to document compliance with the service coordinator-to-consumer
ratio requirements in effect pursuant to this section.
   (3) The requirements of paragraphs (1) to (6), inclusive, of
subdivision (g).
   (j) From July 1, 2010, to June 30, 2012, inclusive, the following
shall not apply:
   (1) The service coordinator-to-consumer ratio requirements of
paragraph (1), and subparagraph (C) of paragraph (3), of subdivision
(c).
   (2) The requirements of paragraphs (1) to (6), inclusive, of
subdivision (g).
   (k) (1) Any contract between the department and a regional center
entered into on and after January 1, 2003, shall require that all
employment contracts entered into with regional center staff or
contractors be available to the public for review, upon request. For
purposes of this subdivision, an employment contract or portion
thereof may not be deemed confidential nor unavailable for public
review.
   (2) Notwithstanding paragraph (1), the social security number of
the contracting party may not be disclosed.
   (3) The term of the employment contract between the regional
center and an employee or contractor shall not exceed the term of the
state's contract with the regional center.
  SEC. 11.  Section 4648.12 is added to the Welfare and Institutions
Code, immediately following Section 4648.1, to read:
   4648.12.  (a) The Legislature finds and declares that under
federal and state law, certain individuals and entities are
ineligible to provide Medicaid services.
   (b) An individual, partnership, group association, corporation,
institution, or entity, and the officers, directors, owners, managing
employees, or agents thereof, that has been convicted of any felony
or misdemeanor involving fraud or abuse in any government program, or
related to neglect or abuse of an elder or dependent adult or child,
or in connection with the interference with, or obstruction of, any
investigation into health care related fraud or abuse, or that has
been found liable for fraud or abuse in any civil proceeding, or that
has entered into a settlement in lieu of conviction for fraud or
abuse in any government program, within the previous 10 years, shall
be ineligible to be a regional center vendor. The regional center
shall not deny vendorization to an otherwise qualified applicant
whose felony or misdemeanor charges did not result in a conviction
solely on the basis of the prior charges.
   (c) In order to ensure compliance with federal disclosure
requirements and to preserve federal funding of consumer services,
the department shall do all of the following:
   (1) (A) Adopt emergency regulations to amend provider and vendor
eligibility and disclosure criteria to meet federal participation
requirements. These emergency regulations shall address, at a
minimum, disclosure requirements of current and prospective vendors,
including information about entity ownership and control, contracting
interests, and criminal convictions or civil proceedings involving
fraud or abuse in any government program, or abuse or neglect of an
elder, dependent adult, or child.
   (B) Adopt emergency regulations to meet federal requirements
applicable to vouchered services.
   (C) The adoption, amendment, repeal, or readoption of a regulation
authorized by this paragraph is deemed to be necessary for the
immediate preservation of the public peace, health and safety, or
general welfare, for purposes of Sections 11346.1 and 11349.9 of the
Government Code, and the department is hereby exempted from that
requirement. For purposes of subdivision (e) of Section 11346.1 of
the Government Code, the 120-day period, as applicable to the
effective period of an emergency regulatory action and submission of
specified materials to the Office of Administrative Law, is hereby
extended to 180 days.
   (2) Adopt nonemergency regulations to implement the terms of
paragraph (1) through the regular rulemaking process pursuant to
Sections 11346 and 11349.1 of the Government Code within 18 months of
the adoption of emergency regulations pursuant to paragraph (1).
  SEC. 12.  Section 4648.14 is added to the Welfare and Institutions
Code, immediately preceding Section 4648.2, to read:
   4648.14.  Notwithstanding any other provision of law, the State
Department of Social Services and the State Department of Public
Health shall notify the State Department of Developmental Services of
any administrative action initiated against a licensee serving
consumers with developmental disabilities. For the purposes of this
section "administrative action" includes, but is not limited to, all
of the following:
   (a) The issuance of a citation requiring corrective action for a
health and safety violation.
   (b) The temporary or other suspension or revocation of a license.
   (c) The issuance of a temporary restraining order.
   (d) The appointment of a temporary receiver pursuant to Section
1327 of the Health and Safety Code.
  SEC. 13.  Section 4652.5 is added to the Welfare and Institutions
Code, to read:
   4652.5.  (a) (1) An entity receiving payments from one or more
regional centers shall contract with an independent accounting firm
for an audit or review of its financial statements subject to all of
the following:
   (A) When the amount received from the regional center or regional
centers during the entity's fiscal year is more than or equal to two
hundred fifty thousand dollars ($250,000) but less than five hundred
thousand dollars ($500,000), the entity shall obtain an independent
audit or independent review report of its financial statements for
the period. Consistent with Subchapter 21 (commencing with Section
58800) of Title 17 of the California Code of Regulations, this
subdivision shall also apply to work activity program providers
receiving less than two hundred fifty thousand dollars ($250,000).
   (B) When the amount received from the regional center or regional
centers during the entity's fiscal year is equal to or more than five
hundred thousand dollars ($500,000), the entity shall obtain an
independent audit of its financial statements for the period.
   (2) This requirement does not apply to payments made using usual
and customary rates, as defined by Title 17 of the California Code of
Regulations, for services provided by regional centers.
   (3) This requirement does not apply to state and local
governmental agencies, the University of California, or the
California State University.
   (b) An entity subject to subdivision (a) shall provide copies of
the independent audit or independent review report required by
subdivision (a), and accompanying management letters, to the
vendoring regional center within 30 days after completion of the
audit or review.
   (c) Regional centers receiving the audit or review reports
required by subdivision (b) shall review and require resolution by
the entity for issues identified in the report that have an impact on
regional center services. Regional centers shall take appropriate
action, up to termination of vendorization, for lack of adequate
resolution of issues.
   (d) Regional centers shall notify the department of all qualified
opinion reports or reports noting significant issues that directly or
indirectly impact regional center services within 30 days after
receipt. Notification shall include a plan for resolution of issues.
   (e) For purposes of this section, an independent review of
financial statements must be performed by an independent accounting
firm and shall cover, at a minimum, all of the following:
   (1) An inquiry as to the entity's accounting principles and
practices and methods used in applying them.
   (2) An inquiry as to the entity's procedures for recording,
classifying, and summarizing transactions and accumulating
information.
   (3) Analytical procedures designed to identify relationships or
items that appear to be unusual.
   (4) An inquiry about budgetary actions taken at meetings of the
board of directors or other comparable meetings.
   (5) An inquiry about whether the financial statements have been
properly prepared in conformity with generally accepted accounting
principles and whether any events subsequent to the date of the
financial statements would have a material effect on the statements
under review.
   (6) Working papers prepared in connection with a review of
financial statements describing the items covered as well as any
unusual items, including their disposition.
   (f) For purposes of this section, an independent review report
shall cover, at a minimum, all of the following:
   (1) Certification that the review was performed in accordance with
standards established by the American Institute of Certified Public
Accountants.
   (2) Certification that the statements are the representations of
management.
   (3) Certification that the review consisted of inquiries and
analytical procedures that are lesser in scope than those of an
audit.
   (4) Certification that the accountant is not aware of any material
modifications that need to be made to the statements for them to be
in conformity with generally accepted accounting principles.
   (g) The department shall not consider a request for adjustments to
rates submitted in accordance with Title 17 of the California Code
of Regulations by an entity receiving payments from one or more
regional centers solely to fund either anticipated or unanticipated
changes required to comply with this section.
  SEC. 14.  Article 2.6 (commencing with Section 4659.10) is added to
Chapter 5 of Division 4.5 of the Welfare and Institutions Code, to
read:

      Article 2.6.  Third-Party Liability


   4659.10.  It is the intent of the Legislature that this article
shall be implemented consistent with the responsibilities of the
department and the regional centers to provide services and supports
pursuant to the requirements of this division and the California
Early Intervention Program. It is further the intent of the
Legislature that the department and the regional centers shall
continue to be the payers of last resort consistent with the
requirements of this division and the California Early Intervention
Program.
   4659.11.  (a) When services are provided or will be provided to a
consumer under this division, or to a child under 36 months of age
who is eligible for the California Early Intervention Program
pursuant to Title 14 (commencing with Section 95000) of the
Government Code, as a result of an injury for which another person is
liable, or for which an insurance carrier is liable in accordance
with the provisions of any policy of insurance issued pursuant to
Section 11580.2 of the Insurance Code, the department or the regional
center from which the individual obtained services shall have a
right to recover from the person or carrier the reasonable value of
services so provided. To enforce that right, the department or the
regional center may institute and prosecute legal proceedings against
the third person or carrier who may be liable for the injury in an
appropriate court, either in the name of the department or regional
center or in the name of the child or consumer, his or her guardian,
conservator, limited conservator, personal representative, estate, or
survivors.
   (b) The department and the regional center may compromise, or
settle and release a claim as described in subdivision (a).
   (c) The department may waive a claim as described in subdivision
(a), in whole or in part, if the department determines that
collection would not be cost efficient, would result in undue
hardship upon the consumer or child who suffered the injury, or in a
wrongful death action upon the heirs of the deceased.
   (d) No action taken on behalf of the department or the regional
center pursuant to this section or any judgment rendered in that
action shall be a bar to any action upon the claim or cause of action
of the child or consumer, his or her guardian, conservator, personal
representative, estate, dependents, or survivors against the third
party who may be liable for the injury, or shall operate to deny to
the child or consumer the recovery for that portion of any damages
not covered hereunder.
   (e) The department, the State Department of Health Care Services,
and the Department of Managed Health Care shall work together to
ensure that the recovery sought by the department, regional centers,
and the State Department of Health Care Services for services for
Medi-Cal beneficiaries with developmental disabilities is
appropriate.
   4659.12.  (a) Where an action is brought by the department or a
regional center pursuant to Section 4659.11, it shall be commenced
within the period prescribed in Section 338 of the Code of Civil
Procedure.
   (b) The death of a consumer or child under 36 months of age who is
eligible for the California Early Intervention Program does not
abate any right of action established by Section 4659.11.
   (c) When an action or claim is brought by a person or persons
entitled to bring the action or assert the claim against a third
party who may be liable for causing the death of the child or
consumer, any settlement, judgment, or award obtained is subject to
the right of the department or the regional center to recover from
that party the reasonable value of the services provided to the
consumer under this division.
   (d) Where the action or claim is brought by the child or consumer
alone, and the child or consumer incurs a personal liability to pay
attorney's fees and costs of litigation, the claim for reimbursement
by the department or the regional center of the services provided to
the child or consumer shall be limited to the reasonable value of
services less 25 percent, which represents the department's or the
regional center's reasonable share of attorney's fees paid by the
child or consumer, and that portion of the cost of litigation
expenses determined by multiplying by the ratio of the full amount of
the reasonable value of services so provided to the full amount of
the judgment, award, or settlement.
   4659.13.  (a) If a consumer or child under 36 months of age who is
eligible for the California Early Intervention Program, the
department, or a regional center brings an action or claim against a
third party or carrier, the consumer, child, regional center, or
department, within 30 days of filing the action, shall provide the
other persons or entities specified in this subdivision with written
notice by personal service or registered mail of the action or claim,
and of the name of the court or state or local agency in which the
action or claim is brought. Proof of the notice shall be filed in the
action or claim. If an action or claim is brought by the department,
the regional center, the child, or the consumer, any of the other
persons or entities described in this subdivision, at any time before
trial on the facts, may become a party to, or shall consolidate,
their action or claim with, another action or claim if brought
independently.
   (b) If an action or claim is brought by the department or the
regional center pursuant to subdivision (a) of Section 4659.11,
written notice to the child, consumer, guardian, conservator,
personal representative, estate, or survivor given pursuant to this
section shall advise him or her of his or her right to intervene in
the proceeding, his or her right to obtain a private attorney of his
or her choice, and the department's right to recover the reasonable
value of the services provided.
   4659.14.  In the event of judgment or award in a suit or claim
against a third party or carrier:
   (a) If the action or claim is prosecuted by the child or consumer
alone, the court or agency shall first order paid from any judgment
or award the reasonable litigation expenses incurred in preparation
and prosecution of the action or claim, together with reasonable
attorney's fees, when an attorney has been retained. After payment of
these expenses and attorney's fees the court or agency, on the
application of the department or the regional center, shall allow as
a lien against the amount of the settlement, judgment, or award, the
reasonable value of additional services provided to the child under
the California Early Intervention Program or consumer under this
division, as provided in subdivision (d) of Section 4659.12.
   (b) If the action or claim is prosecuted both by the consumer or
child and the department or regional center, the court or agency
shall first order paid from any judgment or award the reasonable
litigation expenses incurred in preparation and prosecution of the
action or claim, together with reasonable attorney's fees based
solely on the services rendered for the benefit of the child or
consumer. After payment of these expenses and attorney's fees, the
court or agency shall apply out of the balance of the judgment or
award an amount sufficient to reimburse the department the full
amount of the reasonable value of services provided.
   4659.15.  Upon further application at any time before the judgment
or award is satisfied, the court shall allow as a further lien the
reasonable value of additional services provided arising out of the
same cause of action or claim provided on behalf of the consumer
under this division, or child under the California Early Intervention
Program, where the services were provided or became payable
subsequent to the original order.
   4659.16.  (a) No settlement, judgment, or award in any action or
claim by a consumer or child to recover damages for injuries, where
the department or regional center has an interest, shall be deemed
final or satisfied without first giving the department notice and a
reasonable opportunity to perfect and to satisfy the department's or
regional center's lien. Recovery of the lien from an injured consumer'
s or child's action or claim is limited to that portion of a
settlement, judgment, or award that represents payment for services
provided on behalf of the consumer under this division or a child
under the California Early Intervention Program. All reasonable
efforts shall be made to obtain the department's advance agreement to
a determination as to what portion of a settlement, judgment, or
award represents payment for services provided on behalf of the
consumer under this division or the child under the California Early
Intervention Program. Absent the department's advance agreement as to
what portion of a settlement, judgment, or award represents payment
for medical expenses, or medical care, provided to the child or
consumer, the matter shall be submitted to a court for decision. The
department, the regional center, or the child or consumer may seek
resolution of the dispute by filing a motion, which shall be subject
to regular law and motion procedures.
   (b) If the child or consumer has filed a third-party action or
claim, the court in which the action or claim was filed shall have
jurisdiction over a dispute between the department or regional center
and the child or consumer regarding the amount of a lien asserted
pursuant to this section that is based upon an allocation of damages
contained in a settlement or compromise of the third-party action or
claim. If no third-party action or claim has been filed, any superior
court in California where venue would have been proper, had a claim
or action been filed, shall have jurisdiction over the motion. The
motion may be filed as a special motion and treated as an ordinary
law and motion proceeding subject to regular motion fees. The
reimbursement determination motion shall be treated as a special
proceeding of a civil nature pursuant to Part 3 (commencing with
Section 1063) of the Code of Civil Procedure. When no action is
pending, the person making the motion shall be required to pay a
first appearance fee. When an action is pending, the person making
the motion shall pay a regular law and motion fee. Notwithstanding
Section 1064 of the Code of Civil Procedure, the child or consumer,
the regional center, or the department may appeal the final findings,
decision, or order.
   (c) The court shall issue its findings, decision, or order, which
shall be considered the final determination of the parties' rights
and obligations with respect to the department's lien, unless the
settlement is contingent on an acceptable allocation of the
settlement proceeds, in which case, the court's findings, decision,
or order shall be considered a tentative determination. If the child
or consumer does not serve notice of a rejection of the tentative
determination, which shall be based solely upon a rejection of the
contingent settlement, within 30 days of the notice of entry of the
court's tentative determination, subject to further consideration by
the court pursuant to subdivision (d), the tentative determination
shall become final. Notwithstanding Section 1064 of the Code of Civil
Procedure, the child, consumer, regional center, or department may
appeal the final findings, decision, or order.
   (d) If the consumer or child does not accept the tentative
determination, which shall be based solely upon a rejection of the
contingent settlement, any party may subsequently seek further
consideration of the court's findings upon application to modify the
prior findings, decision, or order based on new or different facts or
circumstances. The application shall include an affidavit showing
what application was made before, when, and to what judge, what order
or decision was made, and what new or different facts or
circumstances, including a different settlement, are claimed to
exist. Upon further consideration, the court may modify the
allocation in the interest of fairness and for good cause.
   4659.17.  When the department or regional center has perfected a
lien upon a judgment or award in favor of a child eligible for the
California Early Intervention Program or a consumer against any third
party for an injury for which the consumer has received services
pursuant to this division, the department or the regional center
shall be entitled to a writ of execution as lien claimant to enforce
payment of the lien against the third party with interest and other
accruing costs as in the case of other executions. In the event the
amount of the judgment or award so recovered has been paid to the
child or consumer, the department or the regional center shall be
entitled to a writ of execution against the child or consumer to the
extent of the department's or the regional center's lien, with
interest and other accruing costs as in the case of other executions.

   4659.18.  Notwithstanding any other provision of law, in no event
shall the department or the regional center recover an amount
                                        greater than the child
eligible for the California Early Intervention Program or consumer
recovers after deducting from the settlement judgment, or award,
attorney's fees and litigation costs paid for by the child or
consumer. If the recovery of the department or regional center is
determined under this section, the reductions in subdivision (d) of
Section 4659.12 shall not apply.
   4659.19.  The amount recovered by the department or regional
center shall not exceed the amount derived from applying Section
4659.12, 4659.16, or 4659.18, whichever is less.
   4659.20.  In the event that the child or consumer, his or her
guardian, conservator, limited conservator, personal representative,
estate, or survivors, or any of them brings an action against the
third party that may be liable for the injury, notice of institution
of legal proceedings, notice of settlement, and all other notices
required by this article shall be given to the director of the
department in Sacramento except in cases where the director specifies
that notice shall be given to the Attorney General. All notices
shall be given by insurance carriers, as described in Section
14124.70, having liability for the child's or consumer's claim, and
by the attorney retained to assert the claim by the consumer or
child, or by the injured child or consumer, his or her guardian,
conservator, limited conservator, personal representative, estate, or
survivors, if no attorney is retained.
   4659.21.  Notwithstanding any other provision of law, all carriers
described in Section 14124.70, including automobile, casualty,
property, and malpractice insurers, shall enter into agreements with
regional centers and the department to permit and assist the matching
of the eligibility files of the department and the regional centers
against the carrier's claim files, utilizing, if necessary, social
security numbers as common identifiers for the purpose of determining
whether services were provided to a child eligible for the
California Early Intervention Program or consumer because of an
injury for which another person is liable, or for which a carrier is
liable in accordance with the provisions of any policy of insurance.
The carrier shall maintain a centralized file of claimants' names,
mailing addresses, and social security numbers or dates of birth.
This information shall be made available to the department and the
regional center upon a reasonable request by the department or a
regional center. The agreement described in this section shall
include financial arrangements for reimbursing carriers for necessary
costs incurred in furnishing requested information.
   4659.22.  (a) Every health insurer, self-insured plan, group
health plan, as defined in Section 607(1) of the federal Employee
Retirement Income Security Act of 1974 (29 U.S.C. Sec. 1001 et seq.),
service benefit plan, managed care organization, including health
care service plans as defined in subdivision (f) of Section 1345 of
the Health and Safety Code, licensed pursuant to the Knox-Keene
Health Care Service Plan Act of 1975 (Chapter 2.2 (commencing with
Section 1340) of Division 2 of the Health and Safety Code), pharmacy
benefit manager, or other party that is, by statute, contract, or
agreement, legally responsible for payment of a claim for a health
care item or service, upon request of the department or a regional
center for any records, or any information contained in records
pertaining to, an individual or group health insurance policy or plan
issued by the insurer or plan against, or pertaining to, the
services paid by or claims made against the insurer or plans under a
policy or plan, shall make the requested records or information
available upon a certification by the department or regional center
that the individual is an applicant for or recipient of services
under this division, is an applicant for or recipient of services
under the California Early Intervention Program, or is a person who
is legally responsible for the applicant or recipient, provided that
the department and regional center certifies its compliance with all
state and federal laws pertaining to the confidentiality of medical
information.
   (b) The department or regional center shall enter into a
cooperative agreement setting forth mutually agreeable procedures for
requesting and furnishing appropriate information, consistent with
laws pertaining to the confidentiality and privacy of medical
information. These procedures shall include any financial
arrangements as may be necessary to reimburse insurers or plans for
necessary costs incurred in furnishing requested information, and the
time and manner those procedures are to become effective. The
department shall make every effort to coordinate with the State
Department of Health Care Services to obtain this information for
this purpose, avoid duplication and administrative costs, and to
protect privacy of medical information pursuant to state and federal
law.
   (c) The information required to be made available pursuant to this
section shall be limited to information necessary to determine
whether health care services have been or should have been claimed
and paid pursuant to an obligation of entities identified in
subdivision (a) and the terms and conditions of the enrollee's
contract or, in the case of a Medi-Cal beneficiary, pursuant to the
scope of the contract between the State Department of Health Care
Services and a Medi-Cal managed care health plan, with respect to
services received by a particular individual for which services under
this division or under the California Early Intervention Program
would be available.
   (d) Not later than the date upon which the procedures agreed to
pursuant to subdivision (b) become effective, the director shall
establish guidelines to ensure that information relating to an
individual certified to be an applicant child or consumer, furnished
to any insurer or plan pursuant to this section, is used only for the
purpose of identifying the records or information requested in the
manner so as not to violate the confidentiality of an applicant or
recipient.
   (e) The department shall implement this section no later than July
1, 2011.
   4659.23.  In order to assess overlapping or duplicate health
coverage, every health insurer, self-insured plan, group health plan,
as defined in Section 607(1) of the federal Employee Retirement
Income Security Act of 1974 (29 U.S.C. Sec. 1001 et seq.), service
benefit plan, managed care organization, including health care
service plans as defined in subdivision (f) of Section 1345 of the
Health and Safety Code, licensed pursuant to the Knox-Keene Health
Care Service Plan Act of 1975 (Chapter 2.2 (commencing with Section
1340) of Division 2 of the Health and Safety Code), pharmacy benefit
manager, or other party that is, by statute, contract, or agreement,
legally responsible for payment of a claim for a health care item or
service shall maintain a centralized file of the subscribers',
policyholders', or enrollees' names, mailing addresses, and social
security numbers or date of birth, and where available, for all other
covered persons, the names and social security numbers or dates of
births. This information shall be made available to the department or
a regional center upon reasonable request. Notwithstanding Section
20230 of the Government Code, the Board of Administration of the
California Public Employees' Retirement System and affiliated systems
or contract agencies shall permit data matches with the state
department to identify consumers with third-party health coverage or
insurance.
   4659.24.  (a) When the rights of a consumer or a child receiving
services under the California Early Intervention Program to recovery
from an insurer have been assigned to the department or a regional
center, an insurer shall not impose any requirement on the department
or the regional center that is different from any requirement
applicable to an agent or assignee of the covered consumer or child.
   (b) The department may garnish the wages, salary, or other
employment income of, and withhold amounts from state tax refunds
from, any person to whom both of the following apply:
   (1) The person is required by a court or administrative order to
provide coverage of the costs of services provided to a child under
the California Early Intervention Program or a consumer under this
division.
   (2) The person has received payment from a third party for the
costs of the services for the child or consumer, but he or she has
not used the payments to reimburse, as appropriate, either the other
parent or the person having custody of the child or consumer, or the
provider of the services, to the extent necessary to reimburse the
department for expenditures for those costs under this division. All
claims for current or past due child support shall take priority over
claims made by the department or the regional center.
   (c) For purposes of this section, "insurer" includes every health
insurer, self-insured plan, group health plan, as defined in Section
607(1) of the federal Employee Retirement Income Security Act of 1974
(29 U.S.C. Sec. 1001 et seq.), service benefit plan, managed care
organization, including health care service plans as defined in
subdivision (f) of Section 1345 of the Health and Safety Code,
licensed pursuant to the Knox-Keene Health Care Service Plan Act of
1975 (Chapter 2.2 (commencing with Section 1340) of Division 2 of the
Health and Safety Code), pharmacy benefit manager, or other party
that is, by statute, contract, or agreement, legally responsible for
payment of a claim for a health care item or service.
  SEC. 15.  Section 4791 of the Welfare and Institutions Code is
amended to read:
   4791.  (a) Notwithstanding any other provision of law or
regulation, between July 1, 2010, and June 30, 2012, inclusive,
regional centers may temporarily modify personnel requirements,
functions, or qualifications, or staff training requirements for
providers, except for licensed or certified residential providers,
whose payments are reduced by 4.25 percent pursuant to the amendments
to Section 10 of Chapter 13 of the Third Extraordinary Session of
the Statutes of 2009, as amended by Section 164 of Chapter 717 of the
Statutes of 2010.
   (b) A temporary modification pursuant to subdivision (a),
effective during any agreed upon period of time between July 1, 2010,
and June 30, 2012, inclusive, may only be approved when the regional
center determines that the change will not do any of the following:
   (1) Adversely affect the health and safety of a consumer receiving
services or supports from the provider.
   (2) Result in a consumer receiving services in a more restrictive
environment.
   (3) Negatively impact the availability of federal financial
participation.
   (4) Violate any state licensing or labor laws or other provisions
of Title 17 of the California Code of Regulations not eligible for
modification pursuant to this section.
   (c) A temporary modification pursuant to subdivision (a) shall be
described in a written services contract between the regional center
purchasing the services and the provider, and a copy of the written
services contract and any related documentation shall be retained by
the provider and the regional center purchasing the services from the
provider.
   (d) Notwithstanding any other provision of law or regulation, the
department shall suspend, from July 1, 2010, to June 30, 2012,
inclusive, the requirements described in Sections 56732 and 56800 of
Title 17 of the California Code of Regulations requiring
community-based day programs and in-home respite agencies to conduct
annual reviews and to submit written reports to vendoring regional
centers, user regional centers, and the department.
   (e) Notwithstanding any other provision of law or regulation, from
July 1, 2010, to June 30, 2012, inclusive, a residential service
provider, vendored by a regional center and whose payment is reduced
by 4.25 percent pursuant to the amendments to Section 10 of Chapter
13 of the Third Extraordinary Session of the Statutes of 2009, as
amended by Section 164 of Chapter 717 of the Statutes of 2010, shall
not be required to complete quarterly and semiannual progress reports
required in subdivisions (b) and (c) of Section 56026 of Title 17 of
the California Code of Regulations. During program review, the
provider shall inform the regional center case manager of the
consumer's progress and any barrier to the implementation of the
individual program plan for each consumer residing in the residence.
  SEC. 16.  Section 10 of Chapter 13 of the Third Extraordinary
Session of the Statutes of 2009, as amended by Section 164 of Chapter
717 of the Statutes of 2010, is amended to read:
  Sec. 10.  (a) Notwithstanding any other provision of law, in order
to implement changes in the level of funding for regional center
purchase of services, regional centers shall reduce payments for
services and supports provided pursuant to Title 14 (commencing with
Section 95000) of the Government Code and Division 4.1 (commencing
with Section 4400) and Division 4.5 (commencing with Section 4500) of
the Welfare and Institutions Code. From February 1, 2009, to June
30, 2010, inclusive, regional centers shall reduce all payments for
these services and supports paid from purchase of services funds for
services delivered on or after February 1, 2009, by 3 percent, and
from July 1, 2010, to June 30, 2012, inclusive, by 4.25 percent,
unless the regional center demonstrates that a nonreduced payment is
necessary to protect the health and safety of the individual for whom
the services and supports are proposed to be purchased, and the
State Department of Developmental Services has granted prior written
approval.
   (b) Regional centers shall not reduce payments pursuant to
subdivision (a) for the following:
   (1) Supported employment services with rates set by Section 4860
of the Welfare and Institutions Code.
   (2) Services with "usual and customary" rates established pursuant
to Section 57210 of Title 17 of the California Code of Regulations.
   (3) Payments to offset reductions in Supplemental Security
Income/State Supplementary Payment (SSI/SSP) benefits for consumers
receiving supported and independent living services.
   (c) Notwithstanding any other provision of law, in order to
implement changes in the level of funding appropriated for regional
centers, the department shall amend regional center contracts to
adjust regional center budgets accordingly for the 2008-09 fiscal
year through the 2011-12 fiscal year. The contract amendments and
budget adjustments shall be exempt from the provisions of Article 1
(commencing with Section 4620) of Chapter 5 of Division 4.5 of the
Welfare and Institutions Code.
  SEC. 17.  The sum of one thousand dollars ($1,000) is hereby
appropriated from the General Fund to the State Department of
Developmental Services for administrative costs.
  SEC. 18.  This act addresses the fiscal emergency declared and
reaffirmed by the Governor by proclamation on January 20, 2011,
pursuant to subdivision (f) of Section 10 of Article IV of the
California Constitution.
  SEC. 19.  This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.
  SEC. 20.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
   In order to make changes necessary for implementation of the
Budget Act of 2011, it is necessary that this act take effect
immediately.