Amended in Assembly September 6, 2013

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 BillNo. 208


Introduced by Senator Lara

February 8, 2013


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

LEGISLATIVE COUNSEL’S DIGEST

SB 208, as amended, Lara. Public social services: contracting.

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 requirebegin delete a request for proposalsend deletebegin insert an RFPend insert 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 The bill would require an RFP that applies only to specifically identified consumers to only request information on how the applicant plans to provide culturally and linguistically competent services and supports to those specific consumers. The bill would make findings and declarations in that regard.end 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.

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.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

P2    1

SECTION 1.  

The Legislature hereby finds and declares the
2following:

3(a) The State Department of Developmental Services and the
4regional center system provide treatment, habilitation, and other
5services to Californians with developmental disabilities so that
6they may lead more independent, productive, and integrated lives.

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

9(c) The Lanterman Developmental Disabilities Services Act
10requires that a person who receives services from a regional center
11must have programs, services, and supports that are “person
12centered” and that are based on the specific assessment and needs
13of each consumer.

P3    1(d) Therefore, services provided to regional center consumers
2should be provided in a linguistically and culturally competent
3manner that promotes equity and diversity for all Californians.

4

SEC. 2.  

Section 4648.11 is added to the Welfare and
5Institutions Code
, to read:

6

4648.11.  

(a) begin deleteA end deletebegin insert(1)end insertbegin insertend insertbegin insertExcept as provided in subdivision (b), a end insert
7request for proposals that is prepared by a regional center for
8consumer services and supports shall include a section on issues
9of equity and diversity.

begin delete

6 10(b)

end delete

11begin insert(2)end insert The section on equity and diversity shall request, but not be
12limited to, all of the following information:

begin delete

8 13(1)

end delete

14begin insert(A)end insert A statement outlining the applicant’s plan to serve diverse
15populations, including, but not limited to, culturally and
16linguistically diverse populations.

begin delete

11 17(2)

end delete

18begin insert(B)end insert Examples of the applicant’s commitment to addressing the
19 needs of those diverse populations.

begin delete

13 20(3)

end delete

21begin insert(C)end insert Any additional information that the applicant deems relevant
22to issues of equity and diversity.

begin insert

23(b) A request for proposals that applies only to specifically
24identified consumers is required only to request information on
25how the applicant plans to provide culturally and linguistically
26competent services and supports to those specific consumers.

end insert

27(c) This section shall not alter contracts entered into before
28January 1, 2014.

29

SEC. 3.  

Section 14452 of the Welfare and Institutions Code is
30amended to read:

31

14452.  

(a) All subcontracts shall be entered into pursuant to
32the requirements of the Knox-Keene Health Care Service Plan Act
33of 1975, or the requirements of Chapter 11A (commencing with
34Section 11491) of Part 2 of Division 2 of the Insurance Code, as
35appropriate, and federal law. All subcontracts shall be in writing,
36a copy of which shall be transmitted to the department.

37Each subcontract shall contain the amount of compensation or
38other consideration that the subcontractor will receive under the
39terms of the subcontract with the prepaid health plans. These
40provisions shall not apply to a provider who is employed or salaried
P4    1by the prepaid health plan. Unless the department objects, a prepaid
2health plan may enter into a subcontract in which consideration is
3determined by a percentage of the primary contractor’s payment
4from the department. This subdivision shall not be construed to
5prohibit any subcontract in which consideration is determined on
6a capitation basis.

7Subcontracts between a prepaid health plan and the subcontractor
8shall be public records on file with the department. The names of
9the officers and owners of the subcontractor, stockholders owning
10more than 10 percent of the stock issued by the subcontractor, and
11major creditors holding more than 5 percent of the debt of the
12subcontractor shall be submitted by each prepaid health plan to
13the department and shall be public records on file with the
14department.

15(b) A prepaid health plan that is not a qualified health
16maintenance organization pursuant to Title XIII of the federal
17Public Health Service Act shall submit all provider and
18management subcontracts to the department for approval prior to
19the subcontract taking effect.

20(c) Each subcontract shall require that the subcontractor make
21all of its books and records pertaining to the goods and services
22furnished under the terms of the subcontract available for
23inspection, examination, or copying by the department during
24normal working hours at the subcontractor’s place of business, or
25another mutually agreeable location in California.



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