Amended in Assembly August 30, 2013

Amended in Senate May 28, 2013

Amended in Senate April 11, 2013

Amended in Senate March 14, 2013

Senate Bill No. 208

Introduced by Senator Lara

February 8, 2013

An act to begin insert amend Section 14452 of, and to end insert add Section 4648.11 begin delete to end delete begin insert to, end insert the Welfare and Institutions Code, relating to begin delete developmental end delete begin insert public social end insert services.

LEGISLATIVE COUNSEL’S DIGEST

SB 208, as amended, Lara. begin delete Developmental services: request for proposals. end delete begin insert Public social services: contracting. end insert

Under existing law, the Lanterman Developmental Disabilities Services Act, the State Department of Developmental Services contracts with regional centers to provide services and supports to individuals with developmental disabilities. The services and supports to be provided to a regional center consumer are contained in an individual program plan (IPP), developed in accordance with prescribed requirements. Existing law authorizes the regional center to, among other things, solicit an individual or agency, by requests for proposals (RFPs) or other means, to provide needed services or supports that are not available to achieve the stated objectives of a consumer’s IPP.

This bill would require a request for proposals that is prepared by a regional center for consumer services and supports to include a section on issues of equity and diversity, as specified.

begin insert

Existing law provides for the Medi-Cal program, which is administered by the State Department of Health Care Services, under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid Program provisions. Existing law authorizes the department to enter into various types of contracts for the provision of services to beneficiaries, including contracts with prepaid health plans, as defined. Existing law requires all subcontracts entered into by prepaid health plans to, among other things, contain the amount of compensation or other consideration that the subcontractor will receive under the terms of the subcontract, except as provided. Existing law prohibits a prepaid health plan from entering into a subcontract in which consideration is determined by a percentage of the primary contractor’s payment from the department.

end insert begin insert

This bill would eliminate that prohibition and instead authorize a prepaid health plan, unless the department objects, to enter into a subcontract in which consideration is determined by a percentage of the primary contractor’s payment from the department.

end insert

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

The Legislature hereby finds and declares the
following:

(a) The State Department of Developmental Services and the
regional center system provide treatment, habilitation, and other
services to Californians with developmental disabilities so that
they may lead more independent, productive, and integrated lives.

(b) California, where diverse communities account for about
60 percent of the population, is now a “majority minority” state.

(c) The Lanterman Developmental Disabilities Services Act
requires that a person who receives services from a regional center
must have programs, services, and supports that are “person
centered” and that are based on the specific assessment and needs
of each consumer.

(d) Therefore, services provided to regional center consumers
should be provided in a linguistically and culturally competent
manner that promotes equity and diversity for all Californians.

SEC. 2.  

Section 4648.11 is added to the Welfare and
Institutions Code, to read:

4648.11.  

(a) A request for proposals that is prepared by a
regional center for consumer services and supports shall include
a section on issues of equity and diversity.

(b) The section on equity and diversity shall request, but not be
limited to, all of the following information:

(1) A statement outlining the applicant’s plan to serve diverse
populations, including, but not limited to, culturally and
linguistically diverse populations.

(2) Examples of the applicant’s commitment to addressing the
needs of those diverse populations.

(3) Any additional information that the applicant deems relevant
to issues of equity and diversity.

(c) This section shall not alter contracts entered into before
January 1, 2014.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 14452 of the end insert begin insert Welfare and Institutions Code end insert begin insert is
amended to read: end insert

14452.  

(a) All subcontracts shall be entered into pursuant to
the requirements of the Knox-Keene Health Care Service Plan Act
of 1975, or the requirements of Chapter 11A (commencing with
Section 11491) of Part 2 of Division 2 of the Insurance Code, as
appropriate, and federal law. All subcontracts shall be in writing,
a copy of which shall be transmitted to the department.

Each subcontract shall contain the amount of compensation or
other consideration begin delete which end delete begin insert that end insert the subcontractor will receive under
the terms of the subcontract with the prepaid health begin delete plan; provided,
however, that these end delete begin insert plans. These end insert provisions shall not apply to a
provider who is employed or salaried by the prepaid health plan.
begin delete A prepaid health plan shall not enter into any subcontract in which
consideration is determined by a percentage of the primary
contractor’s payment from the department. end delete begin insert Unless the department
objects, a prepaid health plan may enter into a subcontract in
which consideration is determined by a percentage of the primary
contractor’s payment from the department. end insert This subdivision shall
not be construed to prohibit any subcontract in which consideration
is determined on a capitation basis.

Subcontracts between a prepaid health plan and the subcontractor
shall be public records on file with the department. The names of
the officers and owners of the subcontractor, stockholders owning
more than 10 percent of the stock issued by the subcontractor, and
major creditors holding more than 5 percent of the debt of the
subcontractor shall be submitted by each prepaid health plan to
the department and shall be public records on file with the
department.

(b) A prepaid health plan begin delete which end delete begin insert that end insert is not a qualified health
maintenance organization pursuant to Title XIII of the federal
Public Health Service Act shall submit all provider and
management subcontracts to the department for approval prior to
the subcontract taking effect.

(c) Each subcontract shall require that the subcontractor make
all of its books and begin delete records, end delete begin insert records end insert pertaining to the goods and
services furnished under the terms of the begin delete subcontract, end delete begin insert subcontract end insert
available for inspection, examination, or copying by the department
during normal working hours at the subcontractor’s place of
business, or begin delete at such other end delete begin insert another end insert mutually agreeable location in
California.