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AB-1380 Developmental services: regional center services. (2017-2018)

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Date Published: 02/17/2017 09:00 PM
AB1380:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1380


Introduced by Assembly Member Santiago

February 17, 2017


An act to add Sections 4629.2, 4629.8, and 4686.1 to, and to add and repeal Section 4573 of, the Welfare and Institutions Code, relating to developmental services.


LEGISLATIVE COUNSEL'S DIGEST


AB 1380, as introduced, Santiago. Developmental services: regional center services.
Existing law, the Lanterman Developmental Disabilities Services Act, requires the State Department of Developmental Services to enter into contracts with private nonprofit corporations to operate regional centers for the provision of community services and supports for persons with developmental disabilities and their families. Existing law sets forth the duties of the regional centers, including, but not limited to, development of individual program plans, the purchase of needed services to implement the plan, and monitoring of the delivery of those services.
Existing law requires the regional center contracts and agreements with service providers in which rates are determined through negotiations between the regional center and the service providers to expressly require that not more than 15% of regional center funds be spent on administrative costs, as defined.
This bill would require all regional center contracts to include provisions requiring the regional center to develop a process by which all vendor contracts are reviewed at least once every 2 years and to require that the regional center take appropriate action to ensure that vendors comply with the contracts, up to and including terminating the vendorization if necessary. The bill would require all regional center contracts or agreements with service providers that provide in-home respite services to expressly require that at least 85% of regional center funds be spent on direct service expenditures, as defined.
Existing law authorizes the provision of in-home respite care for regional center consumers and specifies training requirements for those providers.
This bill would require an employer to submit the fingerprints of a prospective in-home respite worker to the Department of Justice for a criminal background check prior to employment. The bill would prohibit employment of an in-home respite worker that has been convicted for, or incarcerated following conviction for, specified crimes, including fraud against a government health program or a serious or violent felony, as specified, and would establish a method by which a consumer or an applicant could apply to the department for a waiver from these provisions.
The bill would also require the department to conduct an in-depth review of in-home respite provider rates by November 1, 2019, and to report the results of that review, on or before January 1, 2020, to the Legislature, as provided.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 4573 is added to the Welfare and Institutions Code, to read:

4573.
 (a) The department shall conduct an in-depth review of in-home respite provider rates by November 1, 2019. The review shall include all of the following:
(1) Obtain and analyze all vendors’ cost statements to determine the costs of providing services and whether the vendors’ administrative costs are reasonable.
(2) Obtain information from vendors on the hourly wages they pay to respite workers and analyze this information to determine whether hourly rates are reasonable.
(3) Using information from the cost statements, identify whether vendors’ temporary hourly rates should be converted to permanent rates.
(b) (1) On or before January 1, 2020, the department shall report the results of the review required pursuant to subdivision (a) to the Legislature, including a proposal on the extent to which legislative changes are needed to ensure that in-home hourly respite rates are appropriate.
(2) The report required pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.
This section shall remain in effect only until January 1, 2024, and as of that date is repealed.

SEC. 2.

 Section 4629.2 is added to the Welfare and Institutions Code, to read:

4629.2.
 In addition to the requirements set forth in Section 4629, the department’s contract with a regional center shall include both of the following:
(a) A requirement that the regional center develop a process by which all vendor contracts are reviewed at least once every two years. The outcome of those reviews shall be documented in the regional center’s files.
(b) A requirement that the regional center take appropriate action to ensure that vendors comply with the contracts, up to and including terminating the vendorization if necessary.

SEC. 3.

 Section 4629.8 is added to the Welfare and Institutions Code, to read:

4629.8.
 (a) For purposes of this section, the following definitions apply:
(1) “Administrative costs” means all costs other than direct service expenditures, including all amounts actually paid and all accounts payable, as calculated in accordance with generally accepted accounting principles, including, but not limited to, all of the following:
(A) Compensation and benefits, including federal, state, and local payroll taxes, workers’ compensation and unemployment insurance premiums, and recruiting, training, orientation, and background checks for managerial personnel whose primary purpose is the administrative management of the entity, including, but not limited to, directors and chief executive officers.
(B) Compensation and benefits, including federal, state, and local payroll taxes, workers’ compensation and unemployment insurance premiums, and recruiting, training, orientation, and background checks for employees who perform administrative functions, including, but not limited to, payroll management, personnel functions, accounting, budgeting, and facility management.
(C) Facility and occupancy costs directly associated with administrative functions.
(D) Maintenance and repair.
(E) Data processing and computer support services.
(F) Contract and procurement activities, except those provided by a direct service employee.
(G) Training directly associated with administrative functions.
(H) Travel directly associated with administrative functions.
(I) Licenses directly associated with administrative functions.
(J) Taxes.
(K) Interest.
(L) Property insurance.
(M) Personal liability insurance directly associated with administrative functions.
(N) Depreciation.
(O) General expenses, including, but not limited to, communication costs and supplies directly associated with administrative functions.
(P) Consultants and professional services, including, but not limited to, accounting and legal services.
(Q) Distributions to shareholders.
(R) Advertising costs.
(S) Conference, convention, and meeting costs.
(T) Facility and office equipment costs, including, but not limited to, rent, lease, and mortgage payments, directly associated with administrative functions.
(U) Transfers to a corporate parent or franchisor, including, but not limited to, franchise fees, fees for copyright or trademark usage, fees for advertising materials, royalty fees, or conference fees.
(V) Other general operating and overhead costs.
(2) “Direct service expenditures” means all amounts actually paid and all accounts payable, as calculated in accordance with generally accepted accounting principles, in the following categories:
(A) Wages and benefits, including state, federal, and local payroll taxes, workers’ compensation and unemployment insurance premiums, and recruiting, training, orientation, and background checks for respite care aides.
(B) Expenses substantially similar to those in subparagraph (A) that are directly related to the provision of in-home respite services.
(b) Notwithstanding Section 4629.7 or any other law, all regional center contracts or agreements with service providers that provide in-home respite services shall expressly require that at least 85 percent of regional center funds be spent on direct service expenditures. Funds spent on direct service expenditures shall not include administrative costs.
(c) Consistent with subdivision (b), service providers and contractors, upon request, shall provide regional centers with access to books, documents, papers, computerized data, source documents, consumer records, or other records pertaining to the service providers’ and contractors’ negotiated rates.

SEC. 4.

 Section 4686.1 is added to the Welfare and Institutions Code, to read:

4686.1.
 (a) Prior to employing an in-home respite worker, as defined in Section 4686, the employer shall submit the person’s fingerprints to the Department of Justice.
(b) (1) If it is found that the person has ever been convicted of a violation or attempted violation of Section 243.4 of the Penal Code, a sex offense against a minor, or of any felony that requires registration pursuant to Section 290 of the Penal Code, or that the person has been convicted or incarcerated within the last 10 years as the result of committing a violation or attempted violation of Section 273a or 273d or of subdivision (a) or (b) of Section 368 of the Penal Code, or as the result of committing a theft, robbery, burglary, or any felony, the Department of Justice shall notify the employer of that fact. If no criminal record information has been recorded, the Department of Justice shall provide the employer with a statement of that fact.
(2) A person who, in the last 10 years, has been convicted for, or incarcerated following conviction for, fraud against a government health care or supportive services program shall not be hired as an in-home respite worker.
(3) A person who, in the last 10 years, has been convicted for, or incarcerated following conviction for, a violation of subdivision (a) of Section 273a or of Section 368 of the Penal Code, or similar violations in another jurisdiction, shall not be hired as an in-home respite worker.
(4) An employer may deny employment to a person who is the subject of a report under paragraph (1) when the report indicates that the person has committed any of the crimes identified in paragraph (1) that are not included in paragraph (2) or (3).
(5) Nothing in this section shall be construed to require an employer to hire a person who is the subject of a report under paragraph (1) when the report indicates that the person has not committed any of the crimes indicated in paragraph (1).
(c) Subject to subdivision (d), an applicant subject to this section shall not be eligible to provide or receive payment for providing in-home respite services for 10 years following a conviction for, or incarceration following a conviction for, any of the following:
(1) A violent or serious felony, as specified in subdivision (c) of Section 667.5 and in subdivision (c) of Section 1192.7 of the Penal Code.
(2) A felony offense for which a person is required to register under subdivision (c) of Section 290 of the Penal Code. For purposes of this paragraph, the 10-year time period specified in this section shall commence with the date of conviction for, or incarceration following a conviction for, the underlying offense, and not the date of registration.
(3) A felony offense described in paragraph (2) of subdivision (c) of, or in paragraph (2) of subdivision (g) of, Section 10980.
(d) (1) Notwithstanding subdivision (c), an application shall not be denied under this section if the applicant has obtained a certificate of rehabilitation under Chapter 3.5 (commencing with Section 4852.01) of Title 6 of Part 3 of the Penal Code or if the information or accusation against him or her has been dismissed pursuant to Section 1203.4 of the Penal Code.
(2) A consumer who wishes to employ an in-home respite worker who would be prohibited pursuant to this section may petition the department for an individual waiver through a process substantially similar to the process prescribed in subdivision (d) of Section 12305.87.
(3) An applicant who has been convicted of an offense specified in subdivision (b) or (c) may seek from the department a general exception to the exclusion provided for in this section. The department shall use the process and factors prescribed in Section 12305.87 to make the determination whether to grant or deny the waiver.
(e) (1) Fingerprints shall be on a card provided by the Department of Justice for the purpose of obtaining a set of fingerprints. The employer shall submit the fingerprints to the Department of Justice. Within 30 calendar days of the receipt of the fingerprints, the Department of Justice shall notify the employer of the criminal record information, as provided in this subdivision. If no criminal record information has been recorded, the Department of Justice shall provide the employer with a statement of that fact as soon as possible, but not later than 30 calendar days from the date of receipt of the fingerprints. If new fingerprints are required for processing, the Department of Justice shall, as soon as possible, but not later than 30 calendar days from the date of receipt of the fingerprints, notify the employer that the fingerprints were illegible.
(2) Fingerprints may be taken by any local law enforcement officer or agency for purposes of paragraph (1).
(3) A regional center shall notify a consumer whose individual program plan includes in-home respite care that a criminal record check is available, and that the check can be performed by the Department of Justice.
(f) (1) The Department of Justice shall charge a fee to the employer to cover the reasonable costs of administering this section.
(2) It is the intent of the Legislature that the Department of Justice charge a fee to cover its reasonable costs in providing services in accordance with this section to comply with the 30-calendar-day requirement for provision to the department of the criminal record information, as contained in subdivision (e).