BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 484
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          SENATE THIRD READING
          SB 484 (Rubio)
          As Amended July 11, 2011
          Majority vote 

           SENATE VOTE  :34-4  
           
           JUDICIARY           7-1         HEALTH              10-3        
           
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          |Ayes:|Feuer, Wagner, Atkins,    |Ayes:|Monning, Atkins, Bonilla, |
          |     |Dickinson, Huber,         |     |Eng, Gordon, Hayashi,     |
          |     |Monning, Wieckowski       |     |Bonnie Lowenthal, Pan, V. |
          |     |                          |     |Manuel Pèrez, Williams    |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Beth Gaines               |Nays:|Ammiano, Mitchell,        |
          |     |                          |     |Nestande                  |
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           APPROPRIATIONS      17-0                                         

           ----------------------------------------------------------------- 
          |Ayes:|Fuentes, Harkey,          |     |                          |
          |     |Blumenfield, Bradford,    |     |                          |
          |     |Charles Calderon, Campos, |     |                          |
          |     |Davis, Donnelly, Gatto,   |     |                          |
          |     |Hall, Hill, Lara,         |     |                          |
          |     |Mitchell, Nielsen, Norby, |     |                          |
          |     |Solorio, Wagner           |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Authorizes the Legislative Analyst's Office (LAO) to 
          have the same access to the California Department of Corrections 
          and Rehabilitation (CDCR) health services contracts that the 
          Joint Legislature Audit Committee (JLAC) and the Bureau of State 
          Audits (BSA) have under existing law.  Specifically,  this bill  
          provides that, notwithstanding any restrictions imposed by law, 
          CDCR records relating to health care services contracts, or any 
          amendments thereto, shall be open to inspection to the LAO, and 
          that the LAO shall maintain the confidentiality of any contract 
          and amendment until the contract or amendment is fully open to 
          inspection by the public. 









                                                                  SB 484
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           EXISTING LAW  :

          1)Requires, under the California Public Records Act, that all 
            public agency documents be disclosed to the public, unless a 
            specific statutory exemption applies.  

          2)Provides that, notwithstanding any restrictions imposed by 
            law, that CDCR records relating to health care services 
            contracts, or any amendments, shall be open to inspection to 
            JLAC and BSA, and that JLAC and BSA shall maintain the 
            confidentiality of any contract and amendment until the 
            contract or amendment is fully open to inspection by the 
            public.  

          3)Requires CDCR to consult with the California Medical 
            Assistance Commission (CMAC) to assist the department in 
            planning and negotiating contracts for the purpose of health 
            care services and negotiating with providers.  

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, negligible fiscal impact.
           
          COMMENTS  :  Although the Public Records Act (PRA) generally 
          requires that all public records should be open for public 
          inspection, it permits a number of exceptions.  Under existing 
          law, the PRA limits access to the records of CDCR that relate to 
          its health care services contracts.  Information that reveals 
          the process of negotiations are not subject to disclosure for 
          one year after execution of the contract, and information that 
          relates to payment rates are not subject to disclosure for three 
          years after execution.  The purpose of this restriction is to 
          protect the competitive nature of the bidding process.  
          Notwithstanding these restrictions, contracts are immediately 
          open to inspection by JLAC and BSA, so long as confidentiality 
          is maintained until the contracts would generally be available 
          to the public.  This bill gives the LAO the same access to 
          contracts, subject to the same confidentiality requirement.  
          According to the author, the LAO will use this information for 
          purposes of analyzing CDCR's budget needs.   

          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 








                                                                  SB 484
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          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."


           Analysis Prepared by  :    Thomas Clark / JUD. / (916) 319-2334 

                                                                FN: 0001922