BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 382|
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THIRD READING
Bill No: SB 382
Author: Liu (D), et al.
Amended: 5/31/11
Vote: 21
SENATE HUMAN SERVICES COMMITTEE : 7-0, 4/26/11
AYES: Liu, Emmerson, Berryhill, Hancock, Strickland,
Wright, Yee
SENATE JUDICIARY COMMITTEE : 5-0, 5/3/11
AYES: Evans, Harman, Blakeslee, Corbett, Leno
SENATE APPROPRIATIONS COMMITTEE : 8-0, 5/26/11
AYES: Kehoe, Walters, Alquist, Lieu, Pavley, Price,
Runner, Steinberg
NO VOTE RECORDED: Emmerson
SUBJECT : Developmental services: regional centers:
complaints
SOURCE : Author
DIGEST : This bill permits the performance objective part
of the Department of Developmental Services (DDS) contract
with a regional center to include specified criteria
related to complaints and individual program plan services,
requires DDS to develop processes and procedures to address
retaliation against regional center employees and vendors,
requires regional centers to post a list of vendors and
their rates on their Internet Web sites, and clarifies the
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selection of least costly providers.
ANALYSIS : Existing law, the Lanterman Developmental
Disabilities Services Act (Lanterman Act), generally
provides state services to persons with developmental
disabilities and establishes rights of those individuals to
receive such services. (Welfare and Institutions Code
Section 4500 et seq.)
Existing law requires contracts entered into between the
DDS and regional centers to include provisions requiring
each regional center to render services in accordance with
applicable state laws and regulations. (Welfare and
Institutions Code Section 4629(b))
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 United States Code Section 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. (Labor Code Section
1102.5(b))
This bill:
1. Permits 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. Requires the 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, as
specified. The stakeholder process as well as the
development of the processes and procedures would
require considerable, unabsorbable, staff time.
3. Requires RCs, commencing January 1, 2012, to report
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annually to the department the total number of
complaints they received within a single fiscal year.
4. Requires 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.
5. Requires RCs, commencing July 1, 2013, and annually
thereafter, to publish a directory of vendorized service
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.
6. Makes clarifying changes with regard to the selection of
least costly providers.
7. Permits DDS to issue any necessary guidance to aid RCs
in demonstrating compliance with individual program
plans. DDS would be required to utilize the results of
these reviews, when necessary, to develop annual
performance objectives for RCs.
Background
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 Lanterman 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
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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
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 Home and Community Based
Services 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 Lanterman Act
is anchored in individualized supports and services. While
the audits and performance contracts provide some measure
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of oversight of regional centers, regional centers have
considerable authority over key elements of the Lanterman
Act, including development of the IPP, selection of vendors
(within the IPP process), and establishment of certain
vendor payment rates.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
RCs list of vendor- Unknown, potentially
significant General/
negotiated rates cost pressure on RCs Federal
SUPPORT : (Verified 5/31/11)
Disability Rights California
ResCoalition
Service Employees International Union Developmental
Disabilities Council
ARGUMENTS IN SUPPORT : 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."
CTW:kc 5/31/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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