BILL ANALYSIS                                                                                                                                                                                                    �






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                            Senator Carol Liu, Chair


          BILL NO:       SB 382                                      
          S
          AUTHOR:        Liu                                         
          B
          VERSION:       April 14, 2011
          HEARING DATE:  April 26, 2011                              
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          REFERRAL:      Judiciary and Appropriations                
          8
                                                                     
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          CONSULTANT:                                                
          Park
                                        

                                     SUBJECT
                                         
              Developmental services: regional centers: complaints

                                     SUMMARY  

          Requires each performance contract with a regional center 
          to include specified criteria based on regional center 
          track record on complaints, state hearings, and compliance 
          with the individual program plan.  Requires the Department 
          of Developmental Services and the Association of Regional 
          Center Agencies to develop processes and procedures to 
          address issues of retaliation, as specified.  Requires 
          regional centers to post specified information on vendors 
          and negotiated rates for services on its Web site.  Makes 
          clarifying changes with regard to the selection of least 
          costly providers. 

                                     ABSTRACT  

          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 to provide case management 
            services and arrange for, or purchase, services that meet 
                                                         Continued---



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            the needs of individuals with developmental disabilities, 
            as defined.

          DDS/regional center contract provisions and oversight of 
          contract compliance
          2.Requires the state to enter into five-year contracts with 
            regional centers, subject to the annual appropriation of 
            funds by the Legislature.  Requires contracts to include 
            a provision requiring each regional center to render 
            services in accordance with applicable provision of state 
            laws and regulations.

          3.Requires contracts to include annual performance 
            objectives that are specific, measurable, and designed to 
            assist consumers in achieving life quality outcomes, 
            achieve meaningful progress above the current baselines, 
            and develop services and supports identified as necessary 
            to meet identified needs.  Requires annual performance 
            objectives to be developed through a public process, as 
            specified, that includes but is not limited to providing 
            information in an understandable format to the community 
            about regional center services and supports; conducting a 
            public meeting where participants can provide input on 
            performance objectives and using focus groups or surveys 
            to collect information; and circulating a draft of 
            performance objectives to the community for input prior 
            to presentation at a regional center board meeting where 
            additional public input will be taken and considered 
            before adoption of the objectives. 

          4.Allows DDS to specify in the performance contract 
            additional areas of service and support that require 
            development or enhancement by the regional center, and 
            requires DDS, in determining those areas, to consider 
            public comments, the distribution of services and 
            supports with the regional center catchment area, and 
            review how availability of services and supports in one 
            regional catchment area compares with other catchment 
            areas.

          5.Requires each contract with a regional center to specify 
            steps to be taken to ensure contract compliance, 
            including, but not limited to: incentives that encourage 
            regional centers to meet or exceed performance standards; 
            and levels of probationary status and corrective action, 




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            as specified.  Requires DDS to evaluate a regional 
            center's compliance with its contract performance 
            objectives and legal obligations related to those 
            objectives, as specified.

          6.Requires DDS to make reasonable efforts to resolve 
            problems with a regional center that is not fulfilling 
            its contractual obligations, and requires letters of 
            noncompliance to be issued and corrective action plans to 
            be developed and implemented if there is no successful 
            resolution.  Requires DDS to terminate the contract of 
            any regional center that continues to fail in fulfilling 
            its contractual obligations, if specified findings are 
            made, and authorizes such findings to be the basis of 
            non-renewal.

          The Individual Program Plan
          7.Requires determination of services and supports that are 
            necessary for each consumer to be made through the 
            individual program plan process, and provides that the 
            determination shall be made on the basis of the needs and 
            preferences of the consumer or, when appropriate, the 
            consumer's family, and include consideration of a range 
            of service options proposed by individual program plan 
            participants, the effectiveness of each option in meeting 
            the goals stated in the individual program plan, and the 
            cost-effectiveness of each option. 

          8.Requires the IPP to be developed though a planning team, 
            as specified, following certain timelines, and requires 
            regional centers to comply with certain requests for 
            written notice.  Provides a process and timeline to 
            resolve disagreement within the IPP and provides for fair 
            hearing notice and opportunity if resolution cannot be 
            reached.  Requires the IPP planning process to include: 
            gathering information and conducting assessments, as 
            specified; a statement of goals and time-limited 
            objectives; a schedule of the type and amount of services 
            and supports to be purchased by regional center or 
            obtained from generic agencies; identification of 
            providers responsible for attaining each objective, with 
            accompanying timelines; among other requirements.  
            Requires that an IPP shall be reviewed and modified by 
            the planning team as necessary, but no less than once 
            every three years.  Requires regional centers to use 




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            training materials and format prepared by DDS, and 
            requires DDS to biennially review a random sample of IPPs 
            to assure that IPPs are being developed and modified in 
            compliance with specified provisions of law paraphrased 
            in this paragraph.

          9.Requires a regional center to secure services and 
            supports that meet the needs of the consumer, as 
            determined in the IPP, and within the context of the IPP, 
            requires the planning team to give highest preference to 
            those services and supports that would allow minors with 
            developmental disabilities to live with their families, 
            adult persons with developmental disabilities to live as 
            independently as possible in the community, and that 
            allow all consumers to interact with persons without 
            disabilities in positive, meaningful ways.  Requires 
            regional centers, in implementing IPPs to first consider 
            services and supports in natural community, home, work, 
            and recreational settings. 

          10.Requires the regional center and the consumer, or where 
            appropriate, his or her parents, legal guardian, 
            conservator, or authorized representative, to consider 
            all of the following when selecting a provider of 
            consumer services and supports, pursuant to the IPP: 
            provider's ability to deliver quality of services or 
            supports which can accomplish all or part of the 
            consumer's IPP; provider's success in achieving 
            objectives of the IPP; where appropriate, provider's 
            licensing, accreditation, or professional certification; 
            the cost of providing services or supports of comparable 
            quality by different providers, if available.  Requires 
            the least costly available provider of comparable 
            service, including transportations costs, who is able to 
            accomplish all or part of the consumer's IPP, consistent 
            with the needs of the consumer and family as identified 
            in the IPP, to be selected.  Requires consideration of 
            federal financial participation, and provides that the 
            consumer shall not be required to use the least costly 
            provider if it will result in the consumer moving to more 
            restrictive or less integrative services and supports.

          Transparency
          11.Requires, through the contract, regional centers to 
            adopt, maintain, and post on its Internet Web site a 




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            board-approved policy regarding transparency and access 
            to public information, including timely public access to 
            information, including, but not limited to, information 
            regarding requests for proposals and contract awards, 
            service provider rates, documentation related to 
            establishment of negotiated rates, audits, and IRS Form 
            990.

          12.Requires each regional center to include on its Internet 
            Web site, at a minimum: regional center annual 
            independent audits; biannual fiscal audits conducted by 
            the DDS; regional center annual reports; contract awards, 
            including the organization or entity awarded the 
            contract, and the amount and purpose of the award; 
            purchase of service policies; the names, types of 
            service, and contact information of all vendors, except 
            consumers or family members of consumers; board meeting 
            agendas and approved minutes of open meetings of the 
            board and all committees of the board; bylaws of the 
            regional center governing board; annual performance 
            contract and year-end performance contract entered into 
            with the department; biannual Home and Community-based 
            Services Waiver program review; board-approved 
            transparency and public information policy; 
            board-approved conflict-of-interest policy, and other 
            reports as specified. 

          13.Requires DDS to establish and maintain a transparency 
            portal on its Internet Web site, containing specified 
            links, that allows consumers, families, advocates, and 
            others to access provider and regional center 
            information. 

          Prohibitions against retaliation
          14.Under Labor Code, prohibits employers, both public and 
            private, from preventing employees from disclosing 
            information, or retaliating against employees for 
            disclosing information, to a government or law 
            enforcement agency where the employee has reasonable 
            cause to believe that the information discloses a 
            violation of state or federal statute, or a violation of 
            or noncompliance with a state or federal rule or 
            regulation.  Requires the Attorney General (AG) to 
            maintain a whistleblower hotline to receive calls 
            regarding such violations, and requires the AG to refer 




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            calls to the appropriate government agency for review and 
            possible investigation.  Requires the AG and appropriate 
            government agency to hold in confidence, during the 
            initial review of the call, information disclosed through 
            the whistleblower hotline, including the identity of the 
            caller and the employer identified by the caller.  
            Establishes fines and criminal penalties for violations 
            of these provisions, and burden of proof pertaining to 
            civil actions and administrative proceedings related to 
            such violations.

          15.Under Government Code, prohibits employers from making, 
            adopting, or enforcing any rule, regulation, or policy 
            preventing an employee from disclosing information to a 
            government or law enforcement agency or from acting in 
            furtherance of a false claims action, and prohibits an 
            employer from discharging, demoting, suspending, 
            threatening, harassing, denying promotion to, or in any 
            other manner discriminating against, an employee in the 
            terms and conditions of employment because of lawful acts 
            done by the employee on behalf of the employee or others 
            in disclosing information to a government or law 
            enforcement agency or in furthering a false claims 
            action.  Provides for relief measures, including 
            reinstatement, back pay, damages, litigation costs, and 
            attorney's fees, in addition to other remedies.

          This bill:
          1.Requires DDS, no later than July 1, 2012, to develop 
            processes and procedures to address issues of retaliation 
            against regional center employees and vendors, to be 
            included in the regional center standard agreement 
            contract.  Requires those processes and procedures to 
            meet minimum requirements, including: 

              a. For the purposes of the contract, a definition of 
            "retaliation."
              b. A requirement for the regional center to report all 
            allegations of retaliation to its board members and to 
            the department, although the department shall not be 
            required to investigate the allegation unless received 
            directly from the party making the allegation.
              c. A process for corrective action by the regional 
            center and a process for verification of corrective 
            action by the department.




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              d. A provision of notice to employees and vendors, made 
            by the regional center, of the processes and procedures 
            that are developed, detailing to whom they can make a 
            complaint of retaliation and who will investigate the 
            complaint; and a requirement that the provision of notice 
            specify that the department will not investigate a 
            complaint of retaliation unless the complainant directly 
            files that complaint with the department, and also 
            specify the department's policy on responding to 
            whistleblower complaints and the right to make a 
            complaint directly to the department.  Allows this notice 
            to be disseminated in the same manner as other notices to 
            stakeholders concerning their rights when filing a 
            complaint.

          2.Requires DDS to develop the processes and procedures 
            described above in conjunction with the Association of 
            Regional Center Agencies (ARCA), and in consultation with 
            other stakeholder groups representing employees, 
            consumers and their families, and vendors.

          3.Requires a regional center to report annually to DDS the 
            total number of complaints it has received within a 
            fiscal year, including the method in which the complaint 
            was received, the type of complaint, the number of days 
            pending to resolution, and the disposition of each 
            complaint.

          4.Requires DDS to report annually to the Legislature the 
            total volume, method, type of complaint, days pending, 
            and disposition of complaints for each regional center 
            that the regional center has received in a fiscal year 
            and for each regional center that DDS has directly 
            received in a fiscal year.  Requires DDS to the best of 
            its ability to avoid duplicate counting of complaints.

          5.Requires DDS to use the complaint data to develop annual 
            performance objectives for each regional center that will 
            improve each regional center's resolution of complaints, 
            where necessary.

          6.Requires DDS to conduct a review of each regional 
            center's compliance with the procedures for developing 
            individual program plans required by law and regulation, 
            as specified.  Provides that the regional center shall 




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            have the duty of demonstrating compliance and requires 
            DDS to issue necessary guidance to aid regional centers 
            in retaining or producing documentation that constitutes 
            demonstration of compliance.

          7.Requires DDS to include this review in any other audit or 
            review, but requires DDS to conduct the review no less 
            than once every 36 months.  Requires DDS to monitor a 
            regional center that has been found to be noncompliant 
            with state law or regulation, with respect to the 
            development or ongoing requirements of individual program 
            plans, and ensure that corrective actions are taken by 
            the regional center.

          8.Requires DDS to utilize the results of this review to 
            develop annual performance objectives for each regional 
            center that will improve each regional center's 
            compliance with state law and regulation with respect to 
            the development and ongoing requirements of individual 
            program plans.  Requires DDS to include the results of 
            this review in its published annual review. 

          9.Requires each regional center, in order to provide 
            consumers and their families with information about 
            service providers, and to provide greater transparency in 
            the rates paid to service providers, to publish a 
            directory of vendorized service providers on its Internet 
            Web site, listing them by category of service, beginning 
            July 1, 2013. Requires the negotiated rate to be 
            published for vendors who have negotiated rates, and 
            requires this directory to be updated annually. 

          10.Requires, rather than authorizes (as in current law) DDS 
            to specify in the regional center performance contract 
            additional areas of service and support that require 
            development or enhancement by the regional center, and 
            requires DDS to utilize complaint data and IPP review 
            information in this process.  Also requires DDS to 
            consider the subject and result of fair hearing 
            decisions, in addition to public comment, and other 
            required criteria in determining those additional areas 
            of service and support.

          11.Clarifies that the determination of comparability for 
            selecting the least costly available provider of 




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            comparable service shall be made by the individual 
            program plan planning team and shall include, but not be 
            limited to, the criteria already required to be 
            considered in the IPP under current law.

           
                                 FISCAL IMPACT  

          Unknown.


                            BACKGROUND AND DISCUSSION  

          Authors' statement
          The author states that SB 382 aims to increase 
          accountability, transparency, and state oversight of 
          California's 21 regional centers, in order to better serve 
          consumers of regional center services, and their families.  
          The author points out that, in 2010, the Bureau of State 
          Audits released a report of its audit findings of six 
          regional centers, which made recommendations to increase 
          accountability, cost-effectiveness, and transparency of 
          regional center operations; the Senate and Assembly 
          committees on human services held a joint hearing in 
          November 2010 to listen to stakeholder responses to the 
          audit, as well as other concerns and suggestions for 
          improving regional centers. 

          The author states that testimony provided through this 
          hearing, additional testimony received by the Assembly 
          Accountability and Administrative Review committee in prior 
          years, other discussions with stakeholders, and the BSA 
          audit report all revealed problems related to how IPPs are 
          being conducted, how complaints have been dealt with at 
          certain regional centers, the confusion over the 
          requirement to select the least costly provider of 
          comparable services, and the general lack of transparency 
          and complexity of the rate system for providers. 

          The author states that the bill seeks to increase DDS' 
          oversight of regional centers, while using the preferred 
          contract relationship between DDS and regional centers to 
          make improvements in regional center performance.  The 
          author believes that, in a time of large scale changes 
          driven by the state's fiscal crisis, it is critical for DDS 




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          and regional centers to monitor and address how changes are 
          being implemented in a decentralized system such as the 
          regional center system.  The author believes that by, 
          requiring DDS to scrutinize complaints, state fair 
          hearings, and conduct more vigorous IPP reviews, the state 
          will have a better understanding of how consumers and 
          families, providers, and employees are faring with such 
          changes and create a feedback loop for continuous 
          improvement.

          Regional centers
          California's regional center system consists of 21 private 
          nonprofit regional centers, which serve more than 240,000 
          developmentally disabled individuals and their families. 
          Regional centers employ more than 6,000 people, who secure 
          the necessary supports and services outlined in the IPP 
          from a variety of service providers. 

          Regional centers were created in statute as private 
          nonprofit entities to carry out many of the state's 
          responsibilities under the Act, under contract with DDS.  
          Regional centers "assist persons with developmental 
          disabilities and their families in securing those services 
          and supports which maximize opportunities and choices in 
          living, working, learning and recreating in the community." 
           The main roles of regional centers include intake and 
          assessment, individualized program plan development, case 
          management, and securing services through generic agencies 
          (schools, county mental health departments, Medi-Cal, 
          Social Security Administration, community agencies, etc.) 
          and/or by purchasing services from providers, whom regional 
          centers have responsibility for "vendoring." (Vendorization 
          is the process by which a service provider, upon meeting 
          minimum qualifications set in regulations, can become 
          eligible to provide services to consumers and receive 
          payment from regional centers.)  Regional centers purchase 
          services such as transportation, health care, day programs 
          and residential care provided by community care facilities, 
          and generally pay for services if an individual's private 
          insurance does not cover, or the individual has no private 
          coverage, or where "generic" services provided through 
          other programs, entities, or agencies are not available.

          The relationship between DDS and regional centers is 
            primarily contractual, with oversight being conducted 




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          through a variety of audits.  DDS has performance contracts 
          with regional centers through which DDS monitors progress 
          and follows up when a regional center fails to maintain an 
          acceptable level of compliance with performance objectives 
          or make progress toward meeting them.  DDS may impose 
          corrective actions on a regional center, additional 
          contract provisions, and levels of probation.  DDS also 
          performs biennial (or annual, if warranted) fiscal audits 
          of regional centers.  Additionally, for the purpose of 
          ensuring the regional center is meeting federal 
          requirements pursuant to the HCBS waiver, DDS staff visit 
          each regional center every other year and review records, 
          interview consumers and staff, and visit program sites.  
          DDS must also review regional center purchase of service 
          policies to prevent a regional center from utilizing a 
          policy that violates the Lanterman Act.

          As private nonprofit entities, regional centers have, to 
          the extent not prescribed or proscribed by law or 
          regulation, the ability to control their own affairs and 
          meet the goals of the Lanterman Act with a high degree of 
          flexibility and variability, given that the Act is anchored 
          in individualized supports and services.  While the audits 
          and performance contracts provide some measure of oversight 
          of regional centers, regional centers have considerable 
          authority over key elements of the Act, including 
          development of the IPP, selection of vendors (within the 
          IPP process), and establishment of certain vendor payment 
          rates. 

          In the 1985 ARC decision (citation), the court identified 
          the critical point for determining those services rests 
          with the individual program plan (IPP) (or individual 
          family service plan, in the case of children three years of 
          age or under), which is conducted by service coordinators 
          at regional centers.  (The Court held, "The rights of 
          developmentally disabled persons and the corresponding 
          obligations of the State toward them under the Lanterman 
          Act are implemented in the Individual Program Plan (IPP).") 
            The IPP process, prescribed in statute, must be done 
          through planning teams, including, among others, the person 
          with a developmental disability, referred to in the Act as 
          "consumers," his or her legally authorized representative, 
          and one or more regional center representatives.  The Act 
          requires that the IPP promote community integration.  




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          Planning teams must develop goals that maximize 
          opportunities and teach skills needed for each person to 
          develop relationships, be part of community life, increase 
          control over his or her life and acquire increasingly 
          positive roles in the community.  Moreover, the IPP must 
          give the highest preference to those services and supports 
          that allow minors to live with their families and adults to 
          live as independently as possible in the community.
             
           BSA audit
          In August 2010, BSA issued a report entitled, Department of 
          Developmental Services:  A more uniform and transparent 
          procurement and rate-setting process would improve the 
          cost-effectiveness of regional centers, California State 
          Auditor, Bureau of State Audits, Report: 2009-118 (August 
          2010) (BSA Report).   The report included numerous 
          recommendations, based on its review of six regional 
          centers, including that DDS should provide more oversight 
          and issue more guidance to RCs for preparing and adhering 
          to written procedures regarding rate-setting, vendor 
          selection, and procurement processes to ensure consumers 
          receive high-quality, cost-effective services that meet the 
          goals of the consumers and the program.  It was also 
          recommended that DDS monitor RCs' adherence to laws, 
          regulations, and new processes by enhancing the level of 
          reviews to include examining rate-setting, vendor 
          selection, and procurement practices at the regional 
          centers and to adhere to its newly documented process for 
          receiving, tracking, and investigating complaints from 
          regional center employees.  In a hearing held by this 
          committee on March 22, 2011, BSA and DDS both stated a high 
          degree of compliance with BSA's audit recommendations, with 
          one specified exception where there was disagreement about 
          an interpretation of current law concerning selection of 
          the least costly available provider of comparable services.

          Assembly Accountability and Administrative Review (AAR) 
          Committee hearing 
          In June 2010, the Assembly AAR Committee held a public 
          hearing on regional center accountability and oversight.  
          The committee focused on a lack of transparency, noting in 
          a background paper prepared for the hearing that "�RCs] are 
          not required to provide information about their operations 
          or expenditures to the public."  The paper also noted that 
          "�t]here is currently no way to make . . . reports or 




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          complaints to the �RC], DDS, the Attorney General, or any 
          other oversight agency in an anonymous manner because 
          Whistleblower protections are not applicable."  The paper 
          concluded, based on input gathered by Committee staff, 
          that, while "several �RCs] were cited as well-run 
          organizations which operate in accordance with high 
          standards of transparency and accountability," other RCs 
          "were fraught with allegations of conflict of interest, 
          overbilling, refusals to provide information, and 
          retaliation towards those who raised concerns about the way 
          their local �RC] operates." 
          
          Complaints/Whistleblower/Retaliation
          DDS indicates that it has a variety of complaint and appeal 
          processes available to vendors/contractors, agencies, 
          facilities, parents, and consumers.  These include consumer 
          rights complaints; complaints related to the Early Start 
          program, due process requests, and mediation conference 
          requests; Lanterman Act fair hearing requests; Title 17 
          complaints; citizen complaints and comments.  DDS notes 
          that each of these complaint and appeal processes has 
          separate and distinct procedures for resolution.

          On July 28, 2010, DDS issued a letter to all regional 
          center executive directors regarding its whistleblower 
          complaint process.  The DDS whistleblower notice defines 
          both improper regional center activity and improper 
          vendor/contractor activity and indicates that DDS will need 
          a clear and concise statement of the improper activity and 
          any evidence to support the allegation.  The notice states 
          that, "If you do not provide a name or other information 
          (witnesses or documents) that clearly identifies the person 
          you are alleging has acted improperly, and the regional 
          center or vendor/contractor where that person works, we may 
          not have sufficient information to investigate. ?  Although 
          complaints may be filed anonymously, if insufficient 
          information is provided and we have no means to contact 
          you, we may not be able to investigate your allegations."

          The notice also states that DDS "?will do everything 
          possible to maintain the confidentiality of a complainant 
          making a whistleblower complaint if the complainant 
          requests confidentiality.  However, in the rare 
          circumstances where DDS is unable to maintain 
          confidentiality due to its statutory responsibilities 




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          (including ensuring the health and safety of consumers and 
          regional center contract compliance), the Department will 
          attempt to inform the complainant of its need to disclose 
          certain information prior to releasing identifying 
          information.  Additionally, the identity of the complainant 
          may be revealed to appropriate law enforcement agencies 
          conducting a criminal investigation."

          In its latest contract with regional centers, DDS required 
          regional centers to institute a board-approved 
          whistleblower policy addressing the reporting of alleged 
          improper regional center and/or vendor/contractor 
          activities, and required the policy to ensure, among other 
          things, that the policy clearly indicates that the regional 
          center will not retaliate against any complainant, ensure 
          that a process is in place to investigate and take 
          appropriate action on complaints, including complaints of 
          retaliation, and ensure a process for notification of 
          employees, board members, consumers/families, and vendor 
          community of both the regional center and the State's 
          whistleblower policy within thirty days of the effective 
          date of the policy and annually thereafter. 

          State prohibitions against retaliation
          Regional centers, like other non-governmental employers, 
          are subject to the Labor Code and Government Code 
          prohibitions on retaliation against employees for 
          disclosures of violations of state or federal statute, or a 
          violation of or noncompliance with a state or federal rule 
          or regulation.  These provisions include fines and 
          penalties for violations of the provisions.

          Arguments in support
          In relation to the bill as introduced, ResCoalition writes 
          that SB 382 addresses several concerns within the regional 
          center system including performance contracts, 
          transparency, retaliation and complaints, IPP reviews, and 
          the least costly provider. ResCoalition states that the 
          bill is an important step in ensuring there are checks and 
          balances as the Regional Center system struggles to get 
          back to its roots and be accountable to the communities it 
          serves.  ResCoalition suggests one amendment to include a 
          direct reference to complaints made under Welfare and 
          Institutions section 4731, in what DDS must consider when 
          developing further supports and services in performance 




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          objectives. 
           
           Related/prior legislation
          SB 74, Chapter 9, Statutes of 2011, the DDS budget trailer 
          bill, provides for specified information to be posted on 
          DDS' Web site and regional center Web sites (see page 3-4 
          under Transparency), in addition to numerous other 
          requirements across many areas affecting developmental 
          services.
          
          AB 435 (Assembly Committee on Accountability and 
          Administrative Review) of 2010 in its final form dealt with 
          anti-retaliation/whistleblower protections for regional 
          center employees.  Held in Senate Appropriations Committee.

          ABx4 9, Chapter 9, Statutes of 2009-10, Fourth 
          Extraordinary Session among other provisions, required the 
          least costly available provider of comparable service, 
          including transportations costs, who is able to accomplish 
          all or part of the consumer's IPP, consistent with the 
          needs of the consumer and family as identified in the IPP, 
          to be selected to deliver services to the consumer.
          
          AB 1589 (Committee on Accountability and Administrative 
          Review) of 2009 would have required regional centers (RCs) 
          to disclose information on "related-persons transactions" 
          and establishes whistleblower protections for RC employees 
          who report improper RC activities.  Held under submission 
          by the Assembly Appropriations Committee.


                               QUESTIONS & COMMENTS
           
          1.Double-referred.  This bill is double-referred to Senate 
            Judiciary Committee. Because of the upcoming deadline for 
            policy committees to hear fiscal bills, any amendments 
            agreed to in this committee must be put across by Senate 
            Judiciary Committee.

          2.Recent amendments.  Recent amendments to the bill include 
            the striking of duplicative transparency language (i.e., 
            requiring regional centers to post their contracts on 
            their Web sites), because an identical requirement was 
            passed through SB 74, Chapter 9, Statutes of 2011.  
            Additionally, the bill's anti-retaliation provisions were 




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            substantially amended to accommodate the Association of 
            Regional Center Agencies (ARCA) requested changes.  ARCA 
            indicated that the previous anti-retaliation language 
            could cause regional centers to fear being accused of 
            retaliatory activity, which could interfere with their 
            role in protecting of consumers.  The bill now requires 
            ARCA and DDS to develop processes and procedures with 
            stakeholders to address retaliation, provided that 
            specific requirements become part of those processes and 
            procedures.  Finally, at ARCA's request, the timeframe to 
            update provider directories and negotiated rates on 
            regional center Web sites changed from every 6 months to 
            annually.

          3.Changes in the regional center system.  With the passage 
            of  SB 74, Chapter 9, Statutes of 2011, the regional 
            center system is expected to undergo major changes 
            affecting all stakeholders in the system.  (This comes on 
            top of several changes and cuts that have been enacted in 
            the past few years.)  The Legislature enacted $576 
            million in General Fund reductions for the budget year, 
            much of which is expected to affect community services.  
            DDS is currently expected to come up with purchase of 
            service best practices to reduce general fund 
            expenditures by $174 million (as part of the $576 
            million) in May 2011.

                                    POSITIONS  

          
          Support:  ResCoalition (prior version of the bill)
          
          Oppose:None received

                                   -- END --