Today's Law As Amended

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SB-134 Regional center contracts.(2017-2018)



SECTION 1.
 The Legislature finds and declares all of the following:
(a) Regional centers established pursuant to the Lanterman Developmental Disabilities Services Act provide critical services to Californians with developmental disabilities, who are among the most vulnerable members of our communities. The State Department of Social Services contracts with private, nonprofit organizations to operate the regional centers to provide these crucial services.
(b) The state has a compelling interest in maintaining the continuity of services provided to Californians with developmental disabilities pursuant to the Lanterman Act during a change in the identity of the nonprofit organization with which the State Department of Developmental Services contracts to operate a regional center.
(c) A transitional retention period for regional center employees resulting from a change in the operator of a regional center ensures stability and continuity in services provided to Californians with developmental disabilities and prevents undue costs to the state and taxpayers.

SEC. 2.

 Section 4629.5 of the Welfare and Institutions Code is amended to read:

4629.5.
 (a) In addition to the requirements set forth in Section 4629, the department’s contract with a regional center shall require the regional center to adopt, maintain, and post on its Internet Web site a board-approved policy regarding transparency and access to public information. The transparency and public information policy shall provide for 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. The transparency and public information policy shall be in compliance with applicable law relating to the confidentiality of consumer service information and records, including, but not limited to, Section 4514.
(b) To promote transparency, each regional center shall include on its Internet Web site, as expeditiously as possible, at least all of the following:
(1) Regional center annual independent audits.
(2) Biannual fiscal audits conducted by the department.
(3) Regional center annual reports pursuant to Section 4639.5.
(4) Contract awards, including the organization or entity awarded the contract, and the amount and purpose of the award.
(5) Purchase of service policies.
(6) The names, types of service, and contact information of all vendors, except consumers or family members of consumers.
(7) Board meeting agendas and approved minutes of open meetings of the board and all committees of the board.
(8) Bylaws of the regional center governing board.
(9) The annual performance contract and year-end yearend  performance contract entered into with the department pursuant to this division.
(10) The biannual Home and Community-based Services Waiver program review conducted by the department and the State Department of Health Care Services.
(11) The board-approved transparency and public information policy.
(12) The board-approved conflict-of-interest policy.
(13) Reports required pursuant to Section 4639.5.
(14) A link to the page on the department’s Internet Web site specified in subdivision (d).
(15) The salaries, wages, and employee benefits for all managerial positions for which the primary purpose is the administrative management of the regional center, including, but not limited to, directors and chief executive officers.
(c) The department shall establish and maintain a transparency portal on its Internet Web site that allows consumers, families, advocates, and others to access provider and regional center information. Posted information on the department’s Internet Web site transparency portal shall include, but need not be limited to, all of the following:
(1) A link to each regional center’s Internet Web site information referenced in subdivision (b).
(2) Biannual fiscal audits conducted by the department.
(3) Vendor audits.
(4) Biannual Home and Community-based Services Waiver program reviews conducted by the department and the State Department of Health Care Services.
(5) Biannual targeted case management program and federal nursing home reform program reviews conducted by the department.
(6) Early Start Program reviews conducted by the department.
(7) Annual performance contract and year-end performance contract reports.
(d) The department shall establish and maintain a page on its Internet Web site that includes both a list of services purchased by regional centers or provided directly to consumers by regional centers and a brief description of those services.

SEC. 3.

 Article 1.1 (commencing with Section 4639.80) is added to Chapter 5 of Division 4.5 of the Welfare and Institutions Code, to read:

Article  1.1. Regional Center Worker Retention
4639.80.
 (a) Notwithstanding Section 4630 or any other law, a contract between the State Department of Developmental Services and a private nonprofit association for the operation of a regional center pursuant to Article 1 (commencing with Section 4620) that is entered into or renewed on and after January 1, 2019, shall include procedures for employee retention, as provided in this article.
(b) The following definitions apply for purposes of this article:
(1) “Change of operator” means the replacement, by the department, of a contractor with a successor contractor.
(2) “Contractor” means a nonprofit corporation with which the department contracts to operate a regional center pursuant to Sections 4621 and 4621.5.
(3) (A) “Covered employee” means an individual who has been employed by a contractor for at least 90 days immediately before a change of operator.
(B) “Covered employee” does not include any of the following:
(i) A managerial, supervisory, or confidential employee.
(ii) A temporary employee.
(iii) A part-time employee who has worked less than 20 hours per week for the predecessor contractor for at least 90 days immediately before the change of operator.
(4) “Department” means the State Department of Developmental Services.
(5) “Predecessor contractor” means the contractor before the change of operator.
(6) “Regional center” means a regional center as that term is used in this chapter.
(7) “Successor contractor” means the contractor following the change of operator.
(8) “Total compensation” means the combined value of the covered employee’s wages and benefits immediately before the change of operator. Total compensation may be paid entirely as wages or in any combination of wages and fringe benefits, to be determined by the successor contractor. Total compensation includes the following amounts:
(A) The covered employee’s hourly wage rate or per diem value of the covered employee’s monthly salary.
(B) Employer payments toward the covered employee’s health and welfare and pension benefits. Employer payments toward health and welfare and pension benefits shall include only those payments that are recognized as employer payments under paragraphs (1) and (2) of subdivision (b) of Section 1773.1. of the Labor Code.
(9) “Transition period” means a period of 90 days immediately following the effective date of a change of operator.
(c) (1) The department shall notify a contractor operating a regional center that the department has awarded, or intends to award, the contract to a different contractor. The notification shall include the effective date of the change of operator and the name, address, and contact information of the successor contractor.
(2) At least 15 days before the effective date of the change of operator, the predecessor contractor shall provide to the successor contractor a list of the names, addresses, hire dates, total compensation, and classification of all covered employees.
4639.81.
 A contract entered into or renewed pursuant to this article shall be subject to all of the following conditions:
(a) Except as otherwise provided in this section, the successor contractor shall agree to retain all covered employees for at least 90 days following a change of operator.
(1) During the transition period, the successor contractor shall not reduce the total compensation of any covered employee.
(2) During the transition period, the successor contractor shall not terminate a covered employee without cause.
(3) If the successor contractor determines in good faith that it requires fewer employees at a covered employee’s principal place of employment during the transition period than were required by the predecessor contractor, the successor contractor shall retain qualified covered employees by seniority within each job classification.
(4) At the end of the transition period, the successor contractor shall make a written performance evaluation for each covered employee retained during the transition period.
(5) A successor contractor and a labor organization representing covered employees may, by collective bargaining agreement, provide that the agreement supersedes the requirements of this subdivision.
(b) At least 15 days before the effective date of a change of operator, the predecessor contractor shall cause to be posted public notice of the change of operator at each principal place of employment of any covered employee. The notice shall include the name of the predecessor contractor and its contact information, the name of the successor contractor and its contact information, and the effective date of the change of operator. The notice shall be posted in a conspicuous place in a manner to be readily viewed by covered employees. At least 15 days before the effective date of a change of operator, the predecessor contractor shall also cause the notice to be sent to any labor organization that represents the covered employees.
(c) A successor contractor shall retain the following records, in written or electronic format, for at least three years:
(1) The list provided to the successor contractor pursuant to paragraph (2) of subdivision (c) of Section 4639.80.
(2) All offers of employment made to covered employees.
(3) All terminations of covered employees during a transition period, including the reasons for termination.
(4) All written performance evaluations of covered employees made pursuant to paragraph (4) of subdivision (a).
4639.82.
 (a) A covered employee who is not offered employment, who has been discharged in violation of this article, or who has been paid less than the covered employee’s total compensation during the transition period, may bring an action against a successor contractor in any superior court of the State of California with jurisdiction over the successor contractor.
(b) Upon finding a violation of this article, the court may award back pay, calculated at the rate of the covered employee’s total compensation, for each day the violation has occurred and continues to occur. The court may issue an injunction or appropriate order to stop the continued violation of this article, and provide any other relief as the court deems appropriate.
(c) If the covered employee is the prevailing party in the legal action, the court shall award the employee reasonable attorney’s fees and costs as part of the costs recoverable.
(d) A covered employee shall not maintain a cause of action under this section solely due to the failure of a successor contractor to provide a written performance evaluation pursuant to paragraph (4) of subdivision (a) of Section 4639.81.
(e) The rights and remedies provided by this section are in addition to, and are not intended to supplant, any existing rights or remedies.
4639.83.
 The provisions of this article are severable. If any provision of this article or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.