BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 484|
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                                 THIRD READING


          Bill No:  SB 484
          Author:   Rubio (D)
          Amended:  5/3/11
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  3-2, 4/5/11
          AYES:  Evans, Corbett, Leno
          NOES:  Harman, Blakeslee

           SENATE PUBLIC SAFETY COMMITTEE  :  5-2, 4/26/11
          AYES:  Hancock, Calderon, Liu, Price, Steinberg
          NOES:  Anderson, Harman

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Department of Corrections and Rehabilitation:  
          access to 
                      confidential health care services contracts and 
          rates

           SOURCE  :     Author


           DIGEST  :    This bill provides the Legislative Analysts 
          Office (LAO) with the same level of access to confidential 
          California Department of Corrections and Rehabilitation 
          (CDCR) health care services contracts, including rates, as 
          the Joint Legislative Audit Committee and the Bureau of 
          State Audits, as specified.   

           ANALYSIS  :    Current law contains the California Public 
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          Records Act, enacted as "the Legislature, mindful of the 
          right of individuals to privacy, finds and declares that 
          access to information concerning the conduct of the 
          people's business is a fundamental and necessary right of 
          every person in this state."  (Government Code Section 6250 
          et seq.)  

          Current law generally provides that the Public Records Act 
          does not require disclosure of records of the CDCR "that 
          relate to health care services contract negotiations, and 
          that reveal the deliberative processes, discussions, 
          communications, or any other portion of the negotiations, 
          including, but not limited to, records related to those 
          negotiations such as meeting minutes, research, work 
          product, theories, or strategy of the department, or its 
          staff, or members of the California Medical Assistance 
          Commission, or its staff, who act in consultation with, or 
          on behalf of, the department."  (Government Code Section 
          6254.14(a))
           
          Current law provides that, except "for the portion of a 
          contract that contains the rates of payment, contracts for 
          health services entered into by CDCR or the California 
          Medical Assistance Commission on or after July 1, 1993, 
          shall be open to inspection one year after they are fully 
          executed," as specified.  (Id.)    

          Current law provides that three years after a contract or 
          amendment is open to inspection pursuant to this section, " 
          the portion of the contract or amendment containing the 
          rates of payment shall be open to inspection."  (Id.)

          Current law further provides that, "(n)otwithstanding any 
          other provision of law, the entire contract or amendment 
          shall be open to inspection by the Joint Legislative Audit 
          Committee and the Bureau of State Audits.  The Joint 
          Legislative Audit Committee and the Bureau of State Audits 
          shall maintain the confidentiality of the contracts and 
          amendments until the contract or amendment is fully open to 
          inspection by the public. ? It is the intent of the 
          Legislature that confidentiality of health care provider 
          contracts, and of the contracting process as provided in 
          this subdivision, is intended to protect the competitive 
          nature of the negotiation process, and shall not affect 

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          public access to other information relating to the delivery 
          of health care services?."  (Id.)
           
          This bill adds the LAO to the law now authorizing the Joint 
          Legislative Audit Committee and Bureau of State Audits to 
          inspect an entire contract or amendment subject to these 
          provisions.  

          This bill additionally specifically provides that these 
          provisions supersede Evidence Code Section 1060, pertaining 
          to the privilege to refuse to disclose a trade secret.

          This bill makes an additional technical conforming change.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

           SUPPORT  :   (Verified  5/10/11)

          American Federation of State, County and Municipal 
          Employees
          Taxpayers for Improving Public Safety

           ARGUMENTS IN SUPPORT  :    According to the author, "Prison 
          health care costs are currently skyrocketing.  The 
          non-partisan LAO found 'dramatic increase in spending on 
          adult prison health care: from $1.2 billion in 2005-2006 to 
          $2.5 billion in 2008-2009.'  Last year, California spent an 
          average of $16,000 per inmate (170,000 total) on health 
          care services.  The LAO directly attributes the growing 
          health care costs to greater usage of contract medical 
          services.  Despite the growing costs in prison health care, 
          the LAO and the Legislature are kept in the dark about 
          exactly how much is being spent on health contracts because 
          all health care contracts and records under the Department 
          of Corrections and Rehabilitation are exempt from the 
          Public Records Act."

          The American Federation of State, County and Municipal 
          Employees, which supports this bill, states:  

            "The Public records Act prevents the records of the 
            (CDCR) relating to health care services contract 
            negotiations from being disclosed until one year after 

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            the contract is fully executed.  This Act also provides 
            that the part of the contract that contains the rates of 
            payment is not open to inspection until three years after 
            it has been fully executed.  The (JLBC) and (BSA), 
            however, are immediately able to inspect the entirety of 
            the contract or amendment.

            "(This bill) ? would facilitate the Legislature's ability 
            to understand and monitor health care services contracts 
            made with CDCR. ?"


          RJG:mw  5/10/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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