BILL ANALYSIS                                                                                                                                                                                                    �






                              SENATE JUDICIARY COMMITTEE
                             Senator Noreen Evans, Chair
                              2011-2012 Regular Session


          SB 382 (Liu)
          As Amended April 27, 2011
          Hearing Date: May 3, 2011
          Fiscal: Yes 
          Urgency: No
          TW
                    

                                       SUBJECT
                                           
               Developmental Services:  Regional Centers:  Complaints

                                      DESCRIPTION  

          This bill would provide greater transparency of regional center 
          contracts through additional contract requirements and an annual 
          report of regional center complaints, as specified.  This bill 
          also would address retaliation by a regional center against a 
          vendor, vendor applicant, and regional center employee for 
          filing a complaint against the regional center.  This bill would 
          require regional center contracts to contain language 
          prohibiting retaliation, which would be developed by the 
          Department of Developmental Services and subject to stakeholder 
          input.  This bill also contains provisions relating to annual 
          reports by regional centers and evaluations of regional center 
          individual program plan procedures.  

                                      BACKGROUND  

          In 1969, the Legislature enacted the Lanterman Developmental 
          Disabilities Services Act to provide services to people with 
          developmental disabilities and establish the right of those 
          individuals to receive state services.  The Department of 
          Developmental Services (DDS), charged with regulatory oversight 
          of state developmental disability services, contracts with 21 
          private regional centers to provide services for individuals 
          with developmental disabilities.

          On November 4, 2010, an oversight hearing of California's 
          regional centers was conducted by the Senate and Assembly 
          Committees on Human Services.  At this hearing, the California 
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          State Auditor reported that an audit performed by the Bureau of 
          State Audits found that "almost half of the roughly 400 regional 
          center employees who responded to our survey do not feel safe to 
          report suspected improprieties.  Also, many indicated that 
          regional centers do not create an atmosphere of mutual trust or 
          establish open communication."  (Bureau of State Audits, Cal. 
          State Auditor Report 2009-118 - Presentation Document, November 
          4, 2010.)
          Last year, two bills were introduced to address concerns over 
          regional center retaliation.  AB 435 (Committee on 
          Accountability and Administrative Review), among other things, 
          would have provided anti-retaliation provisions under the 
          Lanterman Act to protect regional center employees who file a 
          complaint alleging misconduct by the regional center or its 
          employees.  AB 435 was held in the Senate Rules Committee.

          AB 1589 (Committee on Accountability and Administrative Review) 
          would have enacted the Regional Center Whistleblower Protection 
          Act and would have provided retaliation protections for regional 
          center employees.  AB 1589 was held in the Assembly Committee on 
          Appropriations. 

          This author-sponsored bill would provide greater transparency of 
          regional center contracts and require these contracts to contain 
          retaliation provisions developed by DDS, as specified.

          This bill also contains provisions relating to annual reports by 
          regional centers and evaluations of regional center individual 
          program plan procedures.  This bill has been heard by the Senate 
          Committee on Human Services for consideration of these 
          provisions, which are not within this Committee's jurisdiction.  
          The measure was approved by that committee on April 26, 2011 by 
          a vote of 7-0.  

                                CHANGES TO EXISTING LAW
           
           Existing law  , the Lanterman Act, generally provides state 
          services to persons with developmental disabilities and 
          establishes rights of those individuals to receive such 
          services.  (Welf. & Inst. Code Sec. 4500 et seq.)

           Existing law  requires contracts entered into between the 
          Department of Developmental Services (DDS) and regional centers 
          to include provisions requiring each regional center to render 
          services in accordance with applicable state laws and 
          regulations.  (Welf. & Inst. Code Sec. 4629(b).)
                                                                      



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          Existing federal law  prohibits personnel actions against any 
          employee because of the exercise of any appeal, complaint, or 
          grievance right granted by any law, rule, or regulation.  (5 
          U.S.C. Sec. 2302.) 

           Existing state law  , the California Whistleblower Protection Act, 
          prohibits employers from retaliating against an employee who 
          discloses information to a government or law enforcement agency 
          where the employee has reasonable cause to believe that the 
          information discloses a violation of federal or state laws or 
          regulations.  (Lab. Code Sec. 1102.5(b).)

           This bill  , among other things, would require DDS to develop 
          processes and procedures to address issues of retaliation 
          against regional center employees and vendors who may file a 
          complaint alleging regional center misconduct.
           
          This bill  would require these processes and procedures developed 
          by DDS, in conjunction with the Association of Regional Center 
          Agencies, and in consultation with a broad representation of 
          stakeholder groups, as specified, to contain the following:
                 a requirement for the regional center to report all 
               allegations of retaliation to its board members and to DDS, 
               although DDS will not be required to investigate the 
               allegation unless it receives the allegation directly from 
               the complaining party;
                 a process for corrective action by the regional center 
               and a process for verification of corrective action by DDS; 
               and
                 a provision of notice by the regional center to its 
               employees and vendors detailing the retaliation processes 
               and procedures developed by DDS, as specified; such notice 
               shall specify all applicable federal and state laws 
               prohibiting retaliation.
           
          This bill  would require the standard agreement contracts between 
          DDS and regional centers to contain provisions specifying the 
          processes and procedures regarding retaliation developed by DDS 
          under this bill.

           This bill  would require regional centers to submit an annual 
          report, as specified, to DDS.

           This bill  would require DDS to conduct a review of each regional 
          center's compliance with the procedures for developing 
                                                                      



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          individual program plans, as specified.  

           This bill  would require regional centers to publish a directory 
          of vendorized service providers on their respective Internet web 
          sites, as specified.

                                        COMMENT
           
          1.  Stated need for the bill  
          
          The author writes:
          
            �SB 382] seeks to provide DDS �Department of Developmental 
            Services] with more tools to conduct oversight, while using 
            the preferred contract relationship between DDS and regional 
            centers to make improvements in regional center performance.  
            In a time of large scale changes driven by the state's fiscal 
            crisis, it is critical for DDS and regional centers to monitor 
            and address how changes are being implemented in a 
            decentralized system such as the regional center system.
          
          2.  Contract provisions regarding retaliation  

          This bill would require contracts between DDS and regional 
          centers to contain provisions regarding retaliation processes 
          and procedures to be developed by DDS.  This bill would specify 
          that DDS would be required to develop the processes and 
          procedures in conjunction with the Association of Regional 
          Center Agencies (ARCA) and in consultation with a broad 
          representation of stakeholder groups, including employees, 
          consumers and their families, and vendors.  Existing law 
          requires DDS to develop various regional center contract 
          provisions and requirements with stakeholder input.  (Welf. & 
          Inst. Code Sec. 4620 et seq.)
          
          The author argues that stakeholder input is necessary to 
          effectively provide a method for employees to report misconduct 
          by regional centers.  DDS and ARCA, the main decision makers of 
          the retaliation procedures and processes under this bill, have 
          different concerns regarding retaliation than the employees 
          themselves, which differ from the concerns of the regional 
          center clients and their families.  

          Although this bill would require consultation of stakeholder 
          groups during the development of retaliation processes and 
          procedures, this bill would not provide a public process during 
                                                                      



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          this development because, although a public process exists for 
          determining performance objectives of the regional centers, the 
          standard agreement contracts entered into between DDS and the 
          regional centers are not statutorily required to be open to a 
          public process.  If a public process was included under this 
          bill, it could open the door to other standard agreement 
          contract provisions being open for public debate.  

          Further, a public input process may not benefit employees who 
          want to provide their input but are afraid to publicly identify 
          themselves.  In order to address these concerns of limiting 
          input on the provisions of the standard agreement while still 
          providing input from relevant stakeholders, this bill would 
          provide that certain stakeholder groups must be part of the 
          retaliation provisions development process. 


           Support  :  ResCoalition

           Opposition  :  None Known

                                        HISTORY
           
           Source  :  Author

           Related Pending Legislation  :  None Known

           Prior Legislation  :  See Background.
           
          Prior Vote  :  Senate Committee on Human Services (Ayes 7, Noes 0)

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