BILL ANALYSIS �
AB 862
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ASSEMBLY THIRD READING
AB 862 (Silva and Jeffries)
As Amended May 27, 2011
Majority vote
HUMAN SERVICES 6-0 APPROPRIATIONS 17-0
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|Ayes:|Beall, Jones, Ammiano, |Ayes:|Fuentes, Harkey, |
| |Grove, Butler, Swanson | |Blumenfield, Bradford, |
| | | |Charles Calderon, Campos, |
| | | |Davis, Donnelly, Gatto, |
| | | |Hall, Hill, Lara, |
| | | |Mitchell, Nielsen, Norby, |
| | | |Solorio, Wagner |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Adds the following items to the information regional
centers are required to post on their Internet Web sites:
1)The actual rates paid to each regional center vendor, updated
semiannually;
2)Any public funds provided to a nonprofit housing organization
outside the request for proposals process;
3)Conflict of interest disclosures; and,
4)Any legal settlements that can be disclosed.
EXISTING LAW :
1)Establishes the Lanterman Developmental Disabilities Services
Act (Lanterman Act), under which the Department of
Developmental Services (DDS) contracts with 21 private
non-profit regional centers (RCs) to provide case management
services and arrange for, or purchase services that meet the
needs of individuals with developmental disabilities.
2)Requires that the contract between the DDS and each RC require
the RC to adopt, maintain, and post on its Internet Web site a
board-approved policy regarding transparency and access to
public information.
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3)To promote transparency, requires each RC to include on its
Internet Web site, as expeditiously as possible, at least all
of the following:
a) RC annual independent audits;
b) Biannual fiscal audits conducted by DDS;
c) RC annual reports;
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 RC governing board;
i) The annual performance contract and year-end performance
contract entered into with DDS;
j) The biannual Home and Community-Based Services (HCBS)
Waiver program review conducted by DDS and the Department
of Health Care Services (DHCS);
aa) The board-approved transparency and public information
policy;
bb) The board-approved conflict-of-interest policy; and,
cc) The annual reports of salary schedules by personnel
classification, and operations budget expenditures for
administrative services.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
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GF costs likely in excess of $100,000 for 21 �RCs],
combined, to gather and report the information
required, particularly the actual rates paid to
vendors. This bill establishes statewide requirements
on the 21 RCs which are non-profit, nonpublic
entities, serving 225,000 consumers via approximately
65,000 providers, including parents of consumers.
COMMENTS : The Lanterman Act establishes a comprehensive
statutory scheme to provide services and supports to people with
developmental disabilities. Direct responsibility for
implementation of the Lanterman Act service system is allocated
between DDS and 21 RCs. RCs are private nonprofit entities
established pursuant to the Lanterman Act that contract with DDS
to carry out many of the state's responsibilities under the Act,
including intake and assessment, case management, and individual
program plan development and implementation.
BSA Audit : The California State Auditor, Bureau of State Audits
(BSA), recently issued a report of its review of RC procurement
and rate-setting processes. Department of Developmental
Services: A more uniform and transparent rate-setting process
would improve the cost-effectiveness of regional centers, Report
2009-118, August 2010 (BSA Report). The BSA visited a sample of
6 RCs. For those RCs, the Joint Legislative Audit Committee
directed the BSA to review procedures for allowing public access
to information on operations and to determine if requests for
public records made by service providers in the past two fiscal
years were satisfied in a timely manner and within the
requirements of the law. The BSA determined "that the
information that regional centers are required to make public is
limited to employment contracts and that the regional centers
are not required to maintain, and do not maintain, logs of
public information requests or track how such requests are
fulfilled. As such, we could not perform tests of public or
service provider requests for information."
The BSA Report noted the lack of formal and transparent
rate-setting and vendor-selection processes by the RCs included
in the audit (BSA Report, p. 2). It was noted that the lack of
transparency to outside reviewers results in the potential for
favoritism and makes it impossible to determine whether RCs are
properly taking cost into consideration in selecting among
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comparable vendors (BSA Report, p. 46).
Budget trailer bill : The Governor's Budget for 2011-12 proposed
increases in accountability and transparency in the RC system.
To promote transparency, the recently chaptered 2011-12 Budget
trailer bill pertaining to DDS, SB 74 (Budget and Fiscal Review
Committee), Chapter 9, Statutes of 2011, requires DDS to
establish a transparency portal on its Web site, which is to
include, but need not be limited to, all of the following:
1)Links to RC Internet Web sites with the information specified
in paragraph 3 under Existing Law, above;
2)Biannual fiscal audits conducted by DDS;
3)Vendor audits;
4)Biannual HCBS Waiver program reviews conducted by DHCS;
5)Early Start Program reviews conducted by DDS; and,
6)Annual performance contract and year-end performance contract
reports.
In addition, SB 74 (Budget and Fiscal Review Committee) requires
each RC to adopt, maintain, and post on its Internet Web site a
board-approved policy regarding transparency and access to
public information. The policy must provide for timely public
access to information, including information regarding requests
for proposals and contract awards, service provider rates,
documentation related to establishment of negotiated rates,
audits, and Internal Revenue Service (IRS) Form 990. Under SB
74, each RC must also post on its Internet Web site the
information listed in paragraph 3) under Existing Law, above.
This bill adds to the list of items required to be posted on
each RC's Internet Web site pursuant to SB 74.
Analysis Prepared by : Eric Gelber / HUM. S. / (916) 319-2089
FN: 0001019
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