BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 382 (Liu)
          
          Hearing Date: 5/23/2011         Amended: 4/27/2011
          Consultant: Katie Johnson       Policy Vote: Hum. Serv. 7-0 
          Judiciary 5-0
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          ____
          BILL SUMMARY: SB 382 would: specify that the performance 
          objective part of the Department of Developmental Services' 
          (DDS) contract with a regional center include specified criteria 
          related to complaints and individual program plan services; 
          require DDS to develop processes and procedures to address 
          retaliation against regional center employees and vendors; 
          require DDS to report annually to the Legislature on the number 
          and type of complaints and to develop performance objectives for 
          regional centers based on the data collected; require DDS to 
          review regional center compliance with the individual program 
          plan processes and procedures and to develop related performance 
          objectives; require regional centers to post a list of vendors 
          and their rates on their Internet Web sites; clarify the 
          selection of least costly providers.
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          ___
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           Develop retaliation    likely in the low hundreds of thousands 
          of                     General/
          processes and procedures          dollars in FY 2011-2012Federal

          Annual report on       likely in the low hundreds of thousands 
          of                     General/
          complaints             dollars annually ongoing         Federal

          Additional IPP reviews likely in the low hundreds of thousands 
          of                     General/
                                 dollars annually ongoing         Federal

          RCs list of vendor-    unknown, potentially significant General/
          negotiated rates       cost pressure on RCs             Federal

          *DDS funding is mostly General Fund with some federal funds 
          depending on the individual served and program function.








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          _________________________________________________________________
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          STAFF COMMENTS: This bill meets the criteria for referral to the 
          Suspense File.
          
          SB 382 would:

             1)   Require each performance contract with a regional center 
               to include specified criteria based on regional center (RC) 
               track record on complaints, state hearings, and compliance 
               with the individual program plan (IPP).
             2)   Require the Department of Developmental Services (DDS), 
               in conjunction with the Association of Regional Center 
               Agencies and other stakeholders, to develop processes and 
               procedures to address issues of retaliation against RC 
               employees and vendors in relation to logging a complaint, 
               as specified. The stakeholder process as well as the 
               development of the processes and procedures would require 
               considerable, unabsorbable, staff time.
             3)   Require RCs, commencing January 1, 2012, to report 
               annually to the department the total number of complaints 
               they received within a single fiscal year. 
             4)   Require DDS, commencing January 1, 2012, to report 
               specified RC complaint information to the Legislature 
               annually and to develop annual performance objectives for 
               each RC based on the complaint information. DDS currently 
               receives complaint information from RCs that varies by type 
               of complaint. Completing an annual report could cost in the 
               low hundreds of thousands of dollars annually in staff 
               time.
             5)   Require DDS, commencing January 1, 2012, in addition to 
               all other audits and reviews the department conducts of 
               RCs, to conduct a review of each RC's compliance with the 
               procedures for developing IPPs required by law and 
               regulation, develop annual performance objectives for each 
               RC based on the reviews, and to publish the results of the 
               review in its annual review. To the extent that existing 
               audits and reviews would not satisfy this requirement, the 
               department could need up 2 additional staff to complete the 
               necessary reviews at a cost of approximately $200,000 - 
               $300,000 annually.
             6)   Require RCs, commencing July 1, 2013, and annually 
               thereafter, to publish a directory of vendorized service 








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               providers on its Internet Web site and any relevant 
               negotiated rates. There would be cost pressure on RCs to 
               collect and display this information in a meaningful way.
             7)   Make clarifying changes with regard to the selection of 
               least costly providers.