BILL ANALYSIS �
AB 862
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 862 (Silva and Jeffries)
As Amended August 30, 2011
Majority vote
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|ASSEMBLY: |76-4 |(June 1, 2011) |SENATE: |33-0 |(August 31, |
| | | | | |2011) |
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Original Committee Reference: HUM. S.
SUMMARY : Adds specified items to the information each regional
center is required to post on the regional center's Internet Web
site.
The Senate amendments :
1)Clarify that the information to be posted on rates paid to
each vendor does not apply to vendors who are consumers or
family members.
2)Clarify that the requirement that information be posted on
funds provided to nonprofit housing organizations applies only
to regional center purchase of services or operations funds.
3)Delete the requirement that information to be posted about
vendors include the owner or owners, and clarifies that the
information includes business contact information.
4)Provide that posted vendor rate information need be updated
annually, rather than semiannually.
5)Clarify that conflict of interest disclosures required to be
posted are those required by the 2011-12 Budget trailer bill
pertaining to the Department of Developmental Services (DDS),
SB 74 (Budget and Fiscal Review Committee), Chapter 9,
Statutes of 2011, which are to be completed by each regional
center governing board member and each regional center
employee specified in regulations, including, at a minimum,
the executive director, every administrator, every program
director, every service coordinator, and every employee who
has decision-making or policymaking authority or authority to
obligate the regional center's resources.
AB 862
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6)Delete the requirement that legal settlements be posted.
EXISTING LAW :
1)Establishes the Lanterman Developmental Disabilities Services
Act (Lanterman Act), under which 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, to promote transparency, each RC to include
specified information on its Internet Web site, as
expeditiously as possible.
AS PASSED BY THE ASSEMBLY , added specified items to the
information regional centers are required to post on their
Internet Web sites.
FISCAL EFFECT : According to the Senate Appropriations
Committee, the amendments taken in that committee "would
significantly reduce the costs of this bill so that it would be
minor and absorbable."
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
six RCs. 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
AB 862
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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
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, SB 74 (Budget and Fiscal Review
Committee), Chapter 9, Statutes of 2011, the 2011-12 Budget
trailer bill pertaining to DDS, requires DDS to establish a
transparency portal on its Web site and requires that each RC
post specified information on its Internet Web.
This bill adds to the list of items required to be posted on the
RCs' Internet Web sites pursuant to SB 74. The Senate
amendments clarify, limit or delete some of the disclosures in
order to reduce the fiscal impact of this bill.
Analysis Prepared by : Eric Gelber / HUM. S. / (916) 319-2089
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