BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 862 (Silva and Jeffries)
Hearing Date: 8/25/2011 Amended: 7/5/2011
Consultant: Katie Johnson Policy Vote: Human Services 7-0
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BILL SUMMARY: AB 862 would add several items to the list of
information that a regional center is required to include on its
Internet Web site.
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Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
RC workload cost pressure $33.5 $47 $20General/*
to post additional information $16.5 $23
$10Federal
*67 percent General Fund, 33 percent federal funds
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STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
Existing law, SB 74 (Committee on Budget and Fiscal Review),
Chapter 9, Statutes of 2011, requires each of the 21 nonprofit
regional centers (RCs), in order to promote transparency, to
include 13 specified pieces of information on their Internet Web
site, such as fiscal audits, annual reports, purchase of service
policies, bylaws, and annual and year-end performance contracts
with the Department of Developmental Services (DDS). These
existing law provisions were one component of a $27.1 million
General Fund ($50.3 million in total funds) cost avoidance
package.
This bill would add the following to the list:
1) The actual rates paid to each vendor, updated
semiannually, except to consumers or family members.
2) Any RC purchase of services or operations funds provided
to a nonprofit housing organization outside the request for
proposals process.
3) Disclose the owner and business contact information of
all vendors, in addition to their names and types of
services they provide.
AB 862 (Silva and Jeffries)
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4) Conflict-of-interest disclosures.
5) Any legal settlements that can be disclosed.
There could be cost pressure, in the aggregate, to the 21 RCs'
operations budgets of up to approximately $1 million in FY
2011-2012 and $2 million in FY 2012-2013 for start-up and the
first 6 months of ongoing costs that would include gathering the
necessary information and information technology changes.
Commencing FY 2013-2014, ongoing cost pressure would be up to
approximately $500,000 to update these items. Actual cost
pressure would vary by the actual number of vendors, legal
settlements and disclosures and the existing RC workforce
capacity. Costs would be shared about 67 percent General Fund
and 33 percent federal funds. RCs have sustained significant
operations budget cuts over the past three years of 3 percent in
FY 2009-2010, 4.5 percent in FY 2010-2011, and 4.5 percent in FY
2011-2012. Additionally, administrative expenses were capped at
15 percent commencing FY 2011-12. Any additional RC workload
would put cost pressure on that cap.
AS PROPOSED TO BE AMENDED. The author's proposed amendments
would:
1) Require the rates paid to vendors to be updated
annually;
2) Delete the requirement to disclose the owner and
business contact information of all vendors;
3) Limit conflict-of-interest disclosures to specified
individuals;
4) Delete the requirement to disclose legal settlements.
These amendments would significantly reduce the costs of this
bill so that it would be minor and absorbable.