BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Kevin de Le�n, Chair
SB 137 (Emmerson) - Developmental services: regional centers.
Amended: As introduced. Policy Vote: Human Services 6-0
Urgency: No Mandate: No
Hearing Date: April 22, 2013
Consultant: Brendan McCarthy
This bill meets the criteria for referral to the Suspense File.
Bill Summary: SB 137 would require each of the state's 21
regional centers to post on its website information regarding
the rates paid to vendors and information on certain financial
dealings with non-profit housing organizations.
Fiscal Impact:
One-time costs likely between $100,000 and $200,000 for the
Department of Developmental Services to adopt implementing
regulations (General Fund).
The regional centers indicate they anticipate one-time
costs of about $190,000 for system upgrades to make
specified information available online (General Fund).
The regional centers indicate they anticipate ongoing costs
of about $25,000 per year to compile and post required data
online (General Fund).
Background: The Department of Developmental Services is
responsible for coordinating care and services for about 250,000
people with developmental disabilities. The vast majority of
these people are served by 21 regional centers, which are
non-profit entities that contract with the state. The regional
centers, in turn, contract with a variety of vendors to provide
direct services to the developmentally disabled.
An report by the Bureau of State Audits in 2010 found that
regional centers were not appropriately monitoring expenditures
by vendors.
The human services budget trailer bill of 2011-12 (SB 74,
Chapter 9 of 2011) requires each regional center to post certain
SB 137 (Emmerson)
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information on its website, including certain audit reports,
contact information for vendors, and certain contracts.
Proposed Law: SB 137 would require regional centers to post
online additional information relating to vendors that contract
with the regional center.
Specifically, the bill would require each regional center to
post online:
The actual rates paid to each vendor, except vendors who
are consumers or family members of consumers, and
Any purchase by the regional center of services or funds
provided to a nonprofit housing organization outside the
request for proposals process.
Related Legislation:
AB 1554 (Jeffries & Silva, 2012) contained identical
language to this bill. That bill was held in the Assembly
Appropriations Committee.
AB 862 (Silva & Jeffries, 2011) contained identical
language to this bill (as well as a requirement for
additional disclosure of conflict of interest statements).
That bill was vetoed by Governor Brown.
Staff Comments: The Administrative Procedure Act (beginning at
Section 11340 of the Government Code) prohibits state agencies
from issuing or enforcing any rule, regulation, order, or
standard of general application unless it has been issued as a
regulation under the Administrative Procedure Act. In order to
clarify the requirements of this bill, the Department will most
likely have to adopt implementing regulations.
The regional centers are funded with a combination of General
Fund (about 65%) and federal funds (about 35%). It is not clear
whether federal funds could be used to pay for the required
administrative costs of this bill.