BILL ANALYSIS �
SB 137
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Date of Hearing: June 18, 2013
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Mark Stone, Chair
SB 137 (Emmerson, et al.) - As Introduced: January 28, 2013
SENATE VOTE : 39-0
SUBJECT : Developmental services: regional centers.
SUMMARY : Requires additional information to be posted on
regional center web sites. Specifically, this bill :
1)Adds the following to the information each regional center is
currently required to post on its Internet web site:
a) Actual rates paid to each vendor of regional center
services, updated annually, except vendors who are
consumers or family members of consumers; and
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 the contact information for vendors provided on
the web sites shall be the vendors' business contact
information.
EXISTING LAW
1)Establishes an entitlement to services for individuals with
developmental disabilities under the Lanterman Developmental
Disabilities Services Act (Lanterman Act). (WIC 4500 et seq.)
2)Grants all individuals with developmental disabilities, among
all other rights and responsibilities established for any
individual by the United States Constitution and laws and the
California Constitution and laws, the right to treatment and
habilitation services and supports in the least restrictive
environment. (WIC 4502)
3)Establishes a system of 21 nonprofit regional centers
throughout the state to identify needs and coordinate services
for eligible individuals with developmental disabilities.
(WIC 4620 et seq.)
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4)Requires the Department of Developmental Services (DDS) to
contract with private non-profit regional centers to provide
case management services and arrange for, or purchase,
services that meet the needs of individuals with developmental
disabilities, as defined. (WIC 4620 et seq.)
5)Sets forth specific requirements and annual performance
objectives for contracts between DDS and regional centers.
(WIC 4629)
6)Provides that each contract between DDS and a regional center
must include a requirement that the regional center adopt,
maintain, and post on its Internet Web site a board-approved
policy regarding transparency and access to public
information, and requires that policy to provide, at a
minimum, information regarding requests for proposals, service
provider rates, documentation related to establishment of
negotiated rates, audits, and other forms, as specified. (WIC
4629.5)
7)Requires each regional center to post the following
information on its Internet Web site:
a) Regional center annual independent audits;
b) Biannual fiscal audits conducted by the department;
c) Regional center annual reports, as specified;
d) Contract awards, including the organization or entity
awarded the contract, and the amount and purpose of the
award;
e) Purchase of service policies;
f) The names, types of service, and contact information of
all vendors, except consumers or family members of
consumers;
g) Board meeting agendas and approved minutes of open
meetings of the board and all committees of the board;
h) Bylaws of the regional center governing board;
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i) The annual performance contract and year-end performance
contract entered into with the department pursuant to this
division;
j) The biannual Home and Community-based Services Waiver
program review conducted by the department and the State
Department of Health Care Services;
aa) The board-approved transparency and public information
policy;
bb) The board-approved conflict-of-interest policy; and
cc) Reports required pursuant to Section 4639.5, which
include a regional center's complete current salary
schedule and all prior fiscal year expenditures from the
regional center's operations budget for all administrative
services. (WIC 4629.5)
1)Requires the transparency and public information policy to
maintain the confidentiality of consumer service information
and records. (WIC 4629.5)
FISCAL EFFECT : According to the Senate Appropriations
Committee, this bill will result in one-time costs likely
between $100,000 and $200,000 (General Fund) for the Department
of Developmental Services to adopt implementing regulations.
The regional centers have also indicated that they anticipate
one-time costs of about $190,000 (General Fund) for system
upgrades to make specified information available online, and
they anticipate ongoing costs of about $25,000 per year (General
Fund) to compile and post required data online.
COMMENTS : The Lanterman Act guides the provision of services
and supports for Californians with developmental disabilities,
including intellectual disabilities, cerebral palsy, epilepsy,
and autism. Each individual under the Act, typically referred
to as a "consumer," is legally entitled to treatment and
habilitation services and supports in the least restrictive
environment. Lanterman Act services are designed to enable all
consumers to live more independent and productive lives in the
community. The Department of Developmental Services (DDS)
contracts with 21 regional centers throughout the state, which
are private nonprofit entities, to carry out many of the state's
responsibilities under the Act.
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The regional center caseload includes over 250,000 consumers who
receive services such as residential placements, supported
living services, respite care, transportation, day treatment
programs, work support programs, and various social and
therapeutic activities. Approximately 1,600 consumers reside at
one of California's four Developmental Centers-and one
state-operated, specialized community facility-which provide
24-hour habilitation and medical and social treatment services.
Prior to being approved to receive funding from a regional
center for providing services to a consumer, a service provider
must become vendored by the regional center that oversees the
catchment area in which the provider is located. This
"vendorization" process includes verifying that the provider is
qualified to provide the planned services and meets all other
regulatory standards and requirements, aside from licensing
requirements, which are enforced by other departments and
agencies. There are approximately 40,000 vendors that provide
services paid for by regional centers in California who would
not be classified as consumer parent vendors for purposes of
this bill.
California Bureau of State Audits : An August 2010 Bureau of
State Audits (BSA) report titled, "A More Uniform and
Transparent Procurement and Rate-Setting Process Would Improve
the Cost-Effectiveness of Regional Centers," pointed out
disparities in how the six regional centers it examined set and
documented vendor rates, including some instances in which there
appeared to be favoritism towards certain vendors. Included in
the report were recommendations for regional centers to notify
the vendor community of contracting opportunities, as well as
document the competitive evaluation of vendor proposals and take
other steps towards transparency. After the BSA audit was
released, DDS revised its regional center audit procedures to
include an assessment of how regional centers establish rates,
and the 2011developmental services Budget Act trailer bill was
signed into law (SB 74, Chapter 9, Statutes of 2011), which
established the current requirements pertaining to regional
center transparency and the posting and accessibility of public
information.
Need for the bill : Although this is the third attempt to add
vendor rate and other purchase of service data to the
information regional centers are required to post on their web
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sites, the author asserts that there is a continued need for
this bill in order to ensure readily accessible, transparent
information is provided to the public regarding how regional
centers are spending public dollars. The bill's sponsor,
ResCoalition, says it has requested the vendor rate information
sought through this bill from regional centers, and has had
minimal success in receiving responses from most of the regional
centers. Additionally, according to the sponsor, the fact that
Regional Center of Orange County, Eastern Los Angeles Regional
Center and Kern Regional Center have all already posted the
information required in this bill on their web sites means other
regional centers should be able to do the same.
Arguments in support : ResCoalition states, "?It is time to take
a closer look at where the system is effective and efficient in
maintaining basic needs for this population?The availability of
valid data for California's disability service system would
provide critical information for policymakers, task forces
working toward necessary budgetary outcomes, community members,
service provides, and disability advocates. Currently, the
Regional Centers use their non-profit status to deny requestors
information that would typically be covered under the California
Public Records Act."
Arguments in opposition : The Association of Regional Center
Agencies (ARCA) asserts that the information the author is
requesting to have posted on line is already required to be
provided upon request in state law. WIC Section 4629.5(a)
specifically requires regional center contracts with DDS to
include transparency and public information policies that
require timely access to public information, including
information about contract awards and service provider rates.
Additionally, ARCA claims that there have only been two requests
made to regional centers for such information in recent years,
therefore making the requirement that all of the regional
centers post the information costly and unnecessary.
PRIOR LEGISLATION
AB 1554 (Jeffries/ Silva) of 2012, contained language identical
to the provisions of this bill. Died in the Assembly
Appropriations Committee.
AB 862 (Silva/Jeffries) of 201, contained language identical to
the provisions of this bill. Vetoed by the Governor.
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SB 74 (Committee on Budget and Fiscal Review) Chapter 9, Statues
of 2011 required that DDS contracts include provisions requiring
each regional center to adopt, maintain, and post on its
Internet Web site a transparency and public information policy
containing prescribed components, among other requirements.
REGISTERED SUPPORT / OPPOSITION :
Support
ResCoalition (Sponsor)
Opposition
Association of Regional Center Agencies (ARCA)
Analysis Prepared by : Myesha Jackson / HUM. S. / (916)
319-2089