BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 137|
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THIRD READING
Bill No: SB 137
Author: Emmerson (R), et al.
Amended: As introduced
Vote: 21
SENATE HUMAN SERVICES COMMITTEE : 6-0, 4/9/13
AYES: Yee, Berryhill, Emmerson, Evans, Liu, Wright
SENATE APPROPRIATIONS COMMITTEE : 7-0, 5/23/13
AYES: De Le�n, Walters, Gaines, Hill, Lara, Padilla, Steinberg
SUBJECT : Developmental services: regional centers
SOURCE : ResCoalition
DIGEST : This bill requires that specified information about
vendor rates and payments to nonprofit housing corporations be
posted on each regional center's Internet Web site, alongside
other existing information.
ANALYSIS :
Existing law:
1.Establishes the Lanterman Developmental Disabilities Services
Act, which states that California is responsible for providing
an array of services and supports sufficient to meet the needs
and choices of each person with developmental disabilities,
regardless of age or degree of disability, and at each stage
of life and to support their integration into the mainstream
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life of the community.
2.Establishes a system of 21 nonprofit regional centers to
identify and coordinate services for eligible individuals with
developmental disabilities who live in California.
3.Requires each regional center to enter into a contractual
agreement with the state Department of Developmental Services
(DDS) to provide appropriate services to eligible individuals
and sets forth specific performance objectives.
4.Requires each regional center, as a condition of satisfying
its contract with DDS, to adopt, maintain and post on its
Internet Web site, a board-approved policy regarding
transparency and access to public information. Requires the
policy to provide for timely public access to contract
information, service provider rates, documentation related to
establishment of negotiated rates, audits, and other
information, as specified.
5.Requires each regional center to post specified information on
its Internet Web site.
This bill:
1.Adds to the required information to be posted on each regional
center's Internet Web site:
A. The actual rates paid to each vendor, updated annually,
except vendors who are consumers, or family members of
consumers.
B. Any regional center purchase of services from, or
operations funds provided to, a nonprofit housing
organization outside the request for proposals process.
1.Clarifies that a vendor's business telephone number must be
provided on the Internet Web site.
Background
California Bureau of State Audits . In August 2010, the Bureau
of State Auditors (BSA) released a report examining the Regional
Center system, entitled, "A More Uniform and Transparent
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Procurement and Rate-Setting Process Would Improve the
Cost-Effectiveness of Regional Centers," the report noted
concerns with the lack of DDS oversight in vendor selection and
rate setting.
Regional centers set rates using different methodologies, often
do not keep documentation demonstrating how rates were set, and
in certain instances gave the appearance of favoritism or fiscal
irresponsibility.
The BSA examined 61 rates at six regional centers statewide. In
26 of those samples, auditors could not determine how the rates
were set, and only 18 were established using a detailed cost
statement from the vendor, which auditors cited as a best
practice. Additionally, five rates at four regional centers
appeared to violate a rate freeze required by law, and in two of
those instances the regional center approved rates almost twice
as high as the statewide median rate for the same service.
Auditors recommended a number of reforms intended to clarify and
make transparent the vendor selection and rate-setting process.
Prior Legislation
AB 1554 (Jeffries, Silva, 2012) contained identical language to
SB 137; it died in the Assembly Appropriations Committee.
AB 862 (Silva, Jeffries, 2011) contained identical language to
SB 137; it was vetoed by Governor Brown.
His veto message read: "Among its provisions, the bill
would require conflict-of interest statements to be posted
on regional center Web sites, pursuant to a regulation that
the Department of Developmental services must develop and
issue. The department is still in the process of
developing this regulation, which will identify who must
file such statements. It would be appropriate to wait
until the regulation is complete, before enacting related
requirements by statute."
SB 74 (Committee on Budget and Fiscal Review, Chapter 9,
Statutes of 2011), requires that DDS contracts include
provisions requiring each regional center to adopt, maintain,
and post on its Internet Web site a transparency and public
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information policy containing prescribed components, among other
requirements.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
One-time costs likely between $100,000 and $200,000 for
DDS 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).
SUPPORT : (Verified 5/23/13)
ResCoalition (source)
ARGUMENTS IN SUPPORT : According to the sponsor, ResCoalition,
the intent and motivation of SB 137 to require the regional
centers to disclose information to the public is simple, the
regional center system is funded with California taxpayer's
monies; therefore, they should be obligated to share information
with the public, if requested.
JL:ej 5/23/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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