AB 1400, as introduced, Santiago. Developmental services: regional center contracts.
Existing law, the Lanterman Developmental Disabilities Services Act, requires the State Department of Developmental Services to enter into contracts with private nonprofit corporations to operate regional centers for the provision of community services and support for persons with developmental disabilities and their families. Existing law sets forth the duties of the regional centers, including, but not limited to, development of individual program plans, the purchase of needed services to implement the plan, and monitoring of the delivery of those services.
Existing law requires the regional center contracts and agreements with service providers in which rates are determined through negotiations between the regional center and the service providers to expressly require that not more than 15% of regional center funds be spent on administrative costs, as defined.
This bill would require all regional center contracts or agreements with service providers that provide in-home respite services to expressly require that at least 85% of regional center funds be spent on direct service expenditures, as defined.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 4629.8 is added to the Welfare and
2Institutions Code, to read:
(a) For purposes of this section, the following
4definitions apply:
5(1) “Administrative costs” means all costs other than direct
6service expenditures, including all amounts actually paid and all
7accounts payable, as calculated in accordance with generally
8accepted accounting principles, including, but not limited to, all
9of the following:
10(A) Compensation and benefits, including federal, state, and
11local payroll taxes, workers’ compensation and unemployment
12insurance premiums, and recruiting, training, orientation, and
13background checks for managerial personnel whose primary
14purpose is the administrative management of the entity, including,
15but not limited to, directors and chief
executive officers.
16(B) Compensation and benefits, including federal, state, and
17local payroll taxes, workers’ compensation and unemployment
18insurance premiums, and recruiting, training, orientation, and
19background checks for employees who perform administrative
20functions, including, but not limited to, payroll management,
21personnel functions, accounting, budgeting, and facility
22management.
23(C) Facility and occupancy costs directly associated with
24administrative functions.
25(D) Maintenance and repair.
26(E) Data processing and computer support services.
27(F) Contract and procurement activities, except those provided
28by a direct service employee.
29(G) Training directly associated with administrative functions.
30(H) Travel directly associated with administrative functions.
31(I) Licenses directly associated with administrative functions.
32(J) Taxes.
33(K) Interest.
34(L) Property insurance.
P3 1(M) Personal liability insurance directly associated with
2administrative functions.
3(N) Depreciation.
4(O) General expenses, including, but not limited to,
5communication costs and supplies directly
associated with
6administrative functions.
7(P) Consultants and professional services, including, but not
8limited to, accounting and legal services.
9(Q) Distributions to shareholders.
10(R) Advertising costs.
11(S) Conference, convention, and meeting costs.
12(T) Facility and office equipment costs, including, but not
13limited to, rent, lease, and mortgage payments, directly associated
14with administrative functions.
15(U) Transfers to a corporate parent or franchisor, including, but
16not limited to, franchise fees, fees for copyright or trademark usage,
17fees for advertising materials, royalty fees, or conference fees.
18(V) Other general operating and overhead costs.
19(2) “Direct service expenditures” means all amounts actually
20paid and all accounts payable, as calculated in accordance with
21generally accepted accounting principles, in the following
22categories:
23(A) Wages and benefits, including state, federal, and local
24payroll taxes, workers’ compensation and unemployment insurance
25premiums, and recruiting, training, orientation, and background
26checks for respite care aides.
27(B) Expenses substantially similar to those in subparagraph (A)
28that are directly related to the provision of in-home respite services.
29(b) Notwithstanding Section 4629.7 or any other law, all regional
30center contracts or agreements
with service providers that provide
31in-home respite services shall expressly require that at least 85
32percent of regional center funds be spent on direct service
33expenditures. Funds spent on direct service expenditures shall not
34include administrative costs.
35(c) Consistent with subdivision (b), service providers and
36contractors, upon request, shall provide regional centers with access
37to books, documents, papers, computerized data, source documents,
P4 1consumer records, or other records pertaining to the service
2providers’ and contractors’ negotiated rates.
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