BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 484| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 484 Author: Rubio (D) Amended: 7/11/11 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 SENATE FLOOR : 34-4, 5/19/11 AYES: Alquist, Anderson, Blakeslee, Calderon, Cannella, Corbett, Correa, De León, Dutton, Emmerson, Evans, Fuller, Hancock, Harman, Kehoe, La Malfa, Leno, Lieu, Liu, Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio, Runner, Simitian, Steinberg, Strickland, Vargas, Wolk, Wright, Wyland, Yee NOES: Berryhill, Gaines, Huff, Walters NO VOTE RECORDED: DeSaulnier, Hernandez ASSEMBLY FLOOR : Not available SUBJECT : Department of Corrections and Rehabilitation: access to confidential health care services contracts and rates CONTINUED SB 484 Page 2 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. Assembly Amendments added and then deleted the same language in the Penal Code. This bill is now in the exact form as when it left the Senate. ANALYSIS : Current law contains the California Public 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 CONTINUED SB 484 Page 3 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 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 8/29/11) American Federation of State, County and Municipal Employees California Correctional Health Care Services (Receiver) 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 CONTINUED SB 484 Page 4 $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 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 8/29/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED