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: May 23, 2013      Consultant: Brendan McCarthy
          
          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  
          information on its website, including certain audit reports,  








          SB 137 (Emmerson)
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          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.