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AMENDED IN SENATE MARCH 14, 2011

california legislature201112 regular session

ASSEMBLY BILL No. 98

Introduced by Committee on Budget (Blumenfeld (Chair), Alejo,Allen, Brownley, Buchanan, Butler, Cedillo, Chesbro, Dickinson,Feuer, Gordon, Huffman, Mitchell, Monning, and Swanson)

January 10, 2011

An act relating to the Budget Act of 2011. An act to amend Sections

4626, 4627, 4639, 4640.6, and 4791 of, to add Sections 4620.3, 4622.5,4625.5, 4626.5, 4629.5, 4629.7, 4648.12, 4648.14, and 4652.5 to, andto add Article 2.6 (commencing with Section 4659.10) to Chapter 5 ofDivision 4.5 of, the Welfare and Institutions Code, and to amend Section10 of Chapter 13 of the Third Extraordinary Session of the Statutes of2009, relating to developmental services, making an appropriationtherefor, and declaring the urgency thereof, to take effect immediately,bill related to the budget.

legislative counsels digest

AB 98, as amended, Committee on Budget. Budget Act of 2011.

Developmental services.Existing law, the Lanterman Developmental Disabilities Services Act,

requires the State Department of Developmental Services to enter intocontracts with private nonproft corporations to operate regional centersfor the provision of community services and support for persons withdevelopmental disabilities and their families. Existing law sets forththe duties of the regional centers, including, but not limited to,development of individual program plans, the purchase of neededservices to implement the plan, and monitoring of the delivery of thoseservices.

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This bill would require the department, in collaboration withstakeholders, to develop best practices for the administrativemanagement of regional centers and for regional centers to use whenpurchasing services for consumers and families, as specifed. The billwould require the department to submit the proposed best practices tothe fscal and applicable policy committees of the Legislature no later

than May 15, 2011, and would make the best practices effective onlyupon subsequent legislative enactment.

Existing law establishes minimum requirements relating to thecomposition of the governing board of a regional center. Existing lawrequires the department to adopt and enforce conict-of-interestregulations to ensure that members of the governing board, programpolicy committee, and employees of the regional center make decisionswith respect to the regional centers that are in the best interests ofconsumers and families.

This bill would require the regional center to annually submit to thedepartment documentation demonstrating that the composition of theboard is in compliance with the statutory provisions. This bill would

require a regional center governing board to adopt a written policyrequiring any regional center contract of $250,000 or more to beapproved by the regional center governing board, and would conditionthe validity of those contracts upon board approval in compliance withthat policy. The bill would also require that the department adoptemergency and other regulations to establish standardconict-of-interest reporting requirements to require regional centerboard members, directors, and identifed employees to complete andfle conict-of-interest statements. The bill would make conformingchanges and would delete provisions permitting persons who servedon a board or program policy committee on January 1, 1982, to continueto serve. The bill would require each regional center to submit aconict-of-interest policy to the department by July 1, 2011, and to postthe policy on its Internet Web site by August 1, 2011.

Existing law requires the 5-year contracts between the departmentand the regional center to contain prescribed provisions, including, butnot limited to, the requirement that the contracts include annualperformance objectives.

This bill would, in addition, require that the contracts includeprovisions requiring the regional center to adopt, maintain, and poston its Internet Web site a transparency and public information policycontaining prescribed components. The bill would require the

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department to establish a transparency portal on its Internet Web siteto include, but not be limited to, a link to the regional centertransparency and public information policy Internet Web sites, andother service monitoring and enforcement information.

The bill would require, notwithstanding any other provision of law,all regional center contracts with the department, and all regional

center contracts or agreements with service providers, to require thatnot more than 15% of regional center funds be spent on administrativecosts, as defned. This bill would require service providers andcontractors, upon request, to provide regional centers with access tospecifed information pertaining to the service providers andcontractorsnegotiated rates.

Existing law also requires the governing board of a regional centerto annually contract with an independent accounting frm for an auditedfnancial statement.

This bill would prohibit the audit of a regional center from beingcompleted by the same accounting frm more than 5 times in every 10years.

Under existing law, regional center contracts require certain specifedstaffng levels and expertise, which have been suspended from July 1,2010, to June 30, 2011.

This bill would suspend those staffng requirements through June 30,2012.

Under existing law, regional centers purchase needed services forindividuals with developmental disabilities through approved serviceproviders or arrange for their provision through other publicly fundedagencies. Existing law provides for a vendorization process for serviceproviders.

This bill would make certain persons or entities that have beenconvicted of prescribed crimes or have been found liable for fraud orabuse in any civil proceeding, or that have entered into a settlement inlieu of conviction for fraud or abuse in any government program, withinthe previous 10 years, ineligible to be regional center vendors, andwould require the department to adopt related emergency andnonemergency regulations. The bill would require the State Departmentof Social Services and the State Department of Public Health to notifythe department of any administrative action, as defned, initiated againsta licensee serving consumers with developmental disabilities.

This bill would require an entity receiving payments from one or moreregional centers, except for state and local governmental agencies, the

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University of California, or the California State University, to contractwith an independent accounting frm for an audit or review of thatentitys fnancial statements, as specifed. The bill would requireregional centers to review and require resolution by the entity for issuesidentifed in the report that have a direct or indirect impact on regionalcenter services and to take appropriate action, up to termination of

vendorization, for lack of adequate resolution of issues. The bill wouldrequire a regional center to notify the department of all qualifed opinionreports or reports noting signifcant issues that directly or indirectlyimpact regional center services within 30 days after receipt.

Existing law, the California Early Intervention Services Act, providesvarious early intervention services for infants and toddlers who havedisabilities to enhance their development and to minimize the potentialfor developmental delays. Existing law establishes procedures for theresolution of disputes between a regional center and a generic agency,as defned, over provision of, or payment for, services that are containedin an individualized family service plan or individual program plan forany child under 6 years of age.

This bill would establish procedures authorizing the department orregional center to institute legal proceedings against a 3rd party orinsurance carrier, as specifed, when developmental services areprovided or will be provided to a developmental services consumer, ora child under 36 months of age who is eligible for the California EarlyIntervention Program, as a result of an injury for which the 3rd partyor carrier is liable.

This bill would entitle the department or regional center to recoverthe reasonable value of services provided to the child or consumer froma person who has brought an action or claim against a 3rd party whomay be liable for causing the death of the child or consumer. The billwould provide for a similar recovery provision when the action isbrought by the child or consumer, but would provide for the deductionof a share of the childs or consumers attorneys fees and litigationcosts from the reasonable value of the services provided, as specifed.The bill would set forth the powers and duties of the department inrecouping these amounts, and would prohibit the department or regionalcenter from recovering an amount greater than the child or consumer.

This bill would establish procedures for the enforcement of a lienperfected by the department or regional center upon a judgment oraward in favor of a child or consumer for a 3rd-party injury. This billwould require an insurer, as defned, to perform various duties relating

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to actions or claims brought pursuant to the bill, including a requirementto make requested information available to the department or regionalcenter, pursuant to procedures set forth in a cooperative agreemententered into by the insurer and the department or regional center.

Existing law requires regional centers, in order to implement changesin the level of funding for regional center purchase of services, to reduce

certain payments for services delivered by 4.25% from July 1, 2010, toJune 30, 2011, except as specifed, and authorizes the temporarymodifcation of personnel requirements, functions, or qualifcations,or staff training requirements, and suspends prescribed annual reviewand reporting requirements for affected providers, until June 30, 2011.

This bill would continue those provisions until June 30, 2012.This bill would appropriate $1,000 from the General Fund to the

State Department of Developmental Services for administrative costs.The California Constitution authorizes the Governor to declare a

fscal emergency and to call the Legislature into special session forthat purpose. Governor Schwarzenegger issued a proclamationdeclaring a fscal emergency, and calling a special session for this

purpose, on December 6, 2010. Governor Brown issued a proclamationon January 20, 2011, declaring and reaffrming that a fscal emergencyexists and stating that his proclamation supersedes the earlierproclamation for purposes of that constitutional provision.

This bill would state that it addresses the fscal emergency declaredand reaffrmed by the Governor by proclamation issued on January20, 2011, pursuant to the California Constitution.

This bill would declare that it is to take effect immediately as anurgency statute and a bill providing for appropriations related to theBudget Bill.

This bill would express the intent of the Legislature to enact statutorychanges relating to the Budget Act of 2011.

Vote: majority 23. Appropriation: no yes. Fiscal committee: noyes. State-mandated local program: no.

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

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SECTION 1. Section 4620.3 is added to the Welfare andInstitutions Code, to read:

4620.3. (a) To provide more uniformity and consistency in theadministrative practices and services of regional centersthroughout the state, promote appropriateness of services,

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maximize effciency of funding, address the state budget defcit,ensure consistency with Lanterman Act values, maintain theentitlement to services, and improve cost-effectiveness, thedepartment, in collaboration with stakeholders, shall develop bestpractices for the administrative management of regional centersand for regional centers to use when purchasing services for

consumers and families.(b) In developing regional center administrative management

best practices, the department shall consider the establishment ofpolicies and procedures to ensure prudent fscal and programmanagement by regional centers; effective and effcient use ofpublic resources; consistent practices to maximize the use offederal funds; detection and prevention of fraud, waste, and abuse;and proper contracting protocols.

(c) In developing purchase of services best practices, thedepartment shall consider eligibility for the service; duration ofservice necessary to meet objectives set in an individual programplan; frequency and effcacy of the service necessary to meet

objectives in an individual program plan; impact on communityintegration; service providers qualifcations and performance;rates; parental and consumer responsibilities pursuant to Sections4646.4, 4659, 4677, 4782, 4783 and 4784 of this code and Section95004 of Government Code; and self-directed service options.

(d) The department shall ensure that implementation of bestpractices that impact individual services and supports are madethrough the individual program planning process as provided forin this division or an individualized family service plan pursuantto Section 95020 of the Government Code, and that consumersand families are notifed of any exceptions or exemptions to thebest practices and their appeal rights established in Section 4701.

(e) Purchase of services best practices developed pursuant tothis section may vary by service category and may do all of thefollowing:

(1) Establish criteria determining the type, scope, amount,duration, location, and intensity of services and supports purchasedby regional centers for consumers and their families.

(2) Modify payment rates.(3) Reect family and consumer responsibilities, pursuant to

Sections 4646.4, 4659, 4677, 4782, 4783, and 4784 of this codeand Section 95004 of Government Code.

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(f) Purchase of services best practices shall include provisionsfor exceptions to ensure the health and safety of the consumer orto avoid out-of-home placement or institutionalization.

(g) Best practices developed pursuant to this section shall notdo either of the following:

(1) Endanger a consumers health or safety.

(2) Compromise the states ability to meet its commitments tothe federal Centers for Medicare and Medicaid Services forparticipation in the Home and Community-Based Services Waiveror other federal funding of services for persons with developmentaldisabilities.

(h) The department shall submit the proposed best practices tothe fscal and applicable policy committees of the Legislature byno later than May 15, 2011. This submission shall include adescription of the process followed to collaborate with systemstakeholders; the anticipated impact of the best practices, coupledwith prior reductions on consumers, families, and providers;estimated cost savings associated with each practice; and draft

statutory language necessary to implement the best practices.Implementation of the best practices shall take effect only uponsubsequent legislative enactment.

SEC. 2. Section 4622.5 is added to the Welfare and InstitutionsCode, to read:

4622.5. By August 15 of each year, the governing board ofeach regional center shall submit to the department detaileddocumentation, as determined by the department, demonstratingthat the composition of the board is in compliance with Section4622.


4625.5. (a) The governing board of each regional center shalladopt and maintain a written policy requiring the board to reviewand approve any regional center contract of two hundred fftythousand dollars ($250,000) or more, before entering into thecontract.

(b) No regional center contract of two hundredffty thousanddollars ($250,000) or more shall be valid unless approved by thegoverning board of the regional center in compliance with itswritten policy pursuant to subdivision (a).

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(c) For purposes of this section, contracts do not include vendorapproval letters issued by regional centers pursuant to Section54322 of Title 17 of the California Code of Regulations.

SEC. 4. Section 4626 of the Welfare and Institutions Code isamended to read:

4626. (a) In The department shall give a very high priority to

ensuring that regional center board members and employees actin the course of their duties solely in the best interest of theregional center consumers and their families without regard tothe interests of any other organization with which they areassociated or persons to whom they are related. Board members,employees, and others acting on the regional centers behalf, asdefned in regulations issued by the department, shall be free fromconicts of interest that could adversely inuence their judgment,objectivity, or loyalty to the regional center, its consumers, or itsmission.

(b) In order to prevent potential conficts of interest, no memberof the governing board or member of the program policy committee

of a regional center shall be any of the following:(1) An employee of the State Department of Developmental

Services or any state or local agency which thatprovides servicesto a regional center client consumer, if employed in a capacitywhich includes administrative or policymaking responsibility, orresponsibility for the regulation of the regional center.

(2) An employee or a member of the state council or an areaboard.

(3) Except as otherwise provided in subdivision (h) of Section4622, an employee or member of the governing board of any entityfrom which the regional center purchases client consumerservices.

(4) Any person who has anancial interest, as dened in Section87103 of the Government Code, in regional center operations,except as a consumer of regional center services.

(b) Notwithstanding paragraph (1) of subdivision (a), membersserving on the governing board or program policy committee of aregional center on January 1, 1982, may continue to serve on theboard or committee until the expiration of their term as dened insubdivision (f) of Section 4622. Notwithstanding any otherprovision of this section, members serving on the governing boardor program policy committee of a regional center on January 1,1982, may continue to serve on the board or committee until the

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expiration of their current term. Changes in the composition of theboard or committee required by amendments to this section thatare operative on January 1, 1982, shall apply only to subsequentvacancies on the board or committee.

(c) A person with a developmental disability who receivesemployment services through a regional center provider shall not

be precluded from serving on the governing board of a regionalcenter based solely upon receipt of these employment services.

(d) The department shall ensure that no regional centeremployee or board member has a conict of interest with an entitythat receives regional center funding, including, but not limitedto, a nonproft housing organization and an organization qualifedunder Section 501(c)(3) of the Internal Revenue Code, that activelyfunctions in a supporting relationship to the regional center.

(e) The department shall develop and publish a standardconict-of-interest reporting statement. The conict-of-intereststatement shall be completed by each regional center governingboard member and each regional center employee specifed in

regulations, including, at a minimum, the executive director, everyadministrator, every program director, every service coordinator,and every employee who has decisionmaking or policymakingauthority or authority to obligate the regional centers resources.

(f) Every new regional center governing board member andregional center executive director shall complete and fle theconict-of-interest statement described in subdivision (e) with hisor her respective governing board within 30 days of being selected,appointed, or elected. Every new regional center employeereferenced in subdivision (e) and every current regional centeremployee referenced in subdivision (e) accepting a new positionwithin the regional center shall complete and fle theconict-of-interest statement with his or her respective regionalcenter within 30 days of assuming the position.

(g) Every regional center board member and regional centeremployee referenced in subdivision (e) shall complete andfle theconict-of-interest statement by August 1 of each year.

(h) Every regional center board member and regional centeremployee referenced in subdivision (e) shall complete andfle asubsequent conict-of-interest statement upon any change in statusthat creates a potential or present conict of interest. For thepurposes of this subdivision, a change in status includes, but is

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not limited to, a change in fnancial interests, legal commitment,regional center or board position or duties, or both, or outsideposition or duties, or both, whether compensated or not.

(i) The governing board shall submit a copy of the completedconict-of-interest statements of the governing board membersand the regional center executive director to the department within

10 days of receipt of the statements.(j) A person who knowingly provides false information on a

conict-of-interest statement required by this section shall besubject to a civil penalty in an amount up to ffty thousand dollars($50,000), in addition to any civil remedies available to thedepartment. An action for a civil penalty under this provision maybe brought by the department or any public prosecutor in the nameof the people of the State of California.

(k) The director of the regional center shall review theconict-of-interest statement of each regional center employeereferenced in subdivision (e) within 10 days of receipt of thestatement. If a potential or present conict of interest is identifed

for a regional center employee that cannot be eliminated, theregional center shall, within 30 days of receipt of the statement,submit to the department a copy of the conict-of-interest statementand a plan that proposes mitigation measures, includingtimeframes and actions the regional center or the employee, orboth, will take to mitigate the conict of interest.

(l) The department and the regional center governing boardshall review the conict-of-interest statement of the regional centerexecutive director and each regional center board member toensure that no conicts of interest exist. If a present or potentialconict-of-interest is identifed for a regional center director ora board member that cannot be eliminated, the regional centergoverning board shall, within 30 days of receipt of the statement,submit to the department and the state council a copy of theconict-of-interest statement and a plan that proposes mitigationmeasures, including timeframes and actions the regional centergoverning board or the individual, or both, will take to mitigatethe conict of interest.


4626.5. Each regional center shall submit a conict-of-interestpolicy to the department by July 1, 2011, and shall post the policy

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of Section 11346.1 of the Government Code, the 120-day period,as applicable to the effective period of an emergency regulatoryaction and submission of specifed materials to the Offce ofAdministrative Law, is hereby extended to 180 days.

(e) The department shall adopt regulations to implement theterms of subdivision (d) through the regular rulemaking process

pursuant to Sections 11346 and 11349.1 of the Government Codewithin 18 months of the adoption of emergency regulationspursuant to subdivision (d).


4629.5. (a) In addition to the requirements set forth in Section4629, the departments contract with a regional center shallrequire the regional center to adopt, maintain, and post on itsInternet Web site a board-approved policy regarding transparencyand access to public information. The transparency and publicinformation policy shall provide for timely public access toinformation, 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 policyshall be in compliance with applicable law relating to theconfdentiality of consumer service information and records,including, but not limited to, Section 4514.

(b) To promote transparency, each regional center shall includeon its Internet Web site, as expeditiously as possible, at least allof the following:

(1) Regional center annual independent audits.(2) Biannual fscal 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 performance

contract entered into with the department pursuant to this division.

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(10) The biannual Home and Community-based Services Waiverprogram review conducted by the department and the StateDepartment of Health Care Services.

(11) The board-approved transparency and public informationpolicy.

(12) The board-approved conict-of-interest policy.

(13) Reports required pursuant to Section 4639.5.(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 centerinformation. Posted information on the departments Internet Website transparency portal shall include, but need not be limited to,all of the following:

(1) A link to each regional centers Internet Web site informationreferenced in subdivision (b).

(2) Biannual fscal audits conducted by the department.(3) Vendor audits.(4) Biannual Home and Community-based Services Waiver

program reviews conducted by the department and the StateDepartment of Health Care Services.

(5) Biannual targeted case management program and federalnursing home reform program reviews conducted by thedepartment.

(6) Early Start Program reviews conducted by the department.(7) Annual performance contract and year-end performance

contract reports.SEC. 8. Section 4629.7 is added to the Welfare and Institutions

Code, to read:4629.7. (a) Notwithstanding any other provision of law, all

regional center contracts or agreements with service providers inwhich rates are determined through negotiations between theregional center and the service provider shall expressly requirethat not more than 15 percent of regional center funds be spenton administrative costs. For purposes of this subdivision, directservice expenditures are those costs immediately associated withthe services to consumers being offered by the provider. Fundsspent on direct services shall not include any administrative costs.Administrative costs include, but are not limited to, any of thefollowing:

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(1) Salaries, wages, and employee benefts for managerialpersonnel whose primary purpose is the administrativemanagement of the entity, including, but not limited to, directorsand chief executive offcers.

(2) Salaries, wages, and benefts of employees who performadministrative functions, including, but not limited to, payroll

management, personnel functions, accounting, budgeting, andfacility management.

(3) Facility and occupancy costs, directly associated withadministrative functions.

(4) Maintenance and repair.(5) Data processing and computer support services.(6) Contract and procurement activities, except those provided

by a direct service employee.(7) Training directly associated with administrative functions.(8) Travel directly associated with administrative functions.(9) Licenses directly associated with administrative functions.(10) Taxes.

(11) Interest.(12) Property insurance.(13) Personal liability insurance directly associated with

administrative functions.(14) Depreciation.(15) General expenses, including, but not limited to,

communication costs and supplies directly associated withadministrative functions.

(b) Notwithstanding any other provision of law, all contractsbetween the department and the regional centers shall require thatnot more than 15 percent of all funds appropriated through theregional centers operations budget shall be spent onadministrative costs. For purposes of this subdivision, directservices includes, but is not limited to, service coordination,assessment and diagnosis, monitoring of consumer services, qualityassurance, and clinical services. Funds spent on direct servicesshall not include any administrative costs. For purposes of thissubdivision, administrative costs include, but are not limited to,any of the following:

(1) Salaries, wages, and employee benefts for managerialpersonnel whose primary purpose is the administrative

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management of the regional center, including, but not limited to,directors and chief executive offcers.

(2) Salaries, wages, and benefts of employees who performadministrative functions, including, but not limited to, payrollmanagement, personnel functions, accounting, budgeting, auditing,and facility management.

(3) Facility and occupancy costs, directly associated withadministrative functions.

(4) Maintenance and repair.(5) Data processing and computer support services.(6) Contract and procurement activities, except those performed

by direct service employees.(7) Training directly associated with administrative functions.(8) Travel directly associated with administrative functions.(9) Licenses directly associated with administrative functions.(10) Taxes.(11) Interest.(12) Property insurance.

(13) Personal liability insurance directly associated withadministrative functions.

(14) Depreciation.(15) General expenses, including, but not limited to,

communication costs and supplies directly associated withadministrative functions.

(c) Consistent with subdivision (a), service providers andcontractors, upon request, shall provide regional centers withaccess to any books, documents, papers, computerized data, sourcedocuments, consumer records, or other records pertaining to theservice providersand contractorsnegotiated rates.


4639. (a) The governing board of a regional center shallannually contract with an independent accounting rm for anaudited nancial statement. The audit report and accompanyingmanagement letter shall be reviewed and approved by the regionalcenter board and submitted to the department within 60 days ofcompletion and before April 1 of each year. Upon submission tothe department, the audit report and accompanying managementletter shall be made available to the public by the regional center.

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It is the intent of the Legislature that no additional funds beappropriated for this purpose.

(b) For the 201112 fscal year and subsequent years, the auditspecifed in subdivision (a) shall not be completed by the sameaccounting frm more than fve times in every 10 years.

SEC. 10. Section 4640.6 of the Welfare and Institutions Code

is amended to read:4640.6. (a) In approving regional center contracts, the

department shall ensure that regional center stafng patternsdemonstrate that direct service coordination are the highest priority.

(b) Contracts between the department and regional centers shallrequire that regional centers implement an emergency responsesystem that ensures that a regional center staff person will respondto a consumer, or individual acting on behalf of a consumer, withintwo hours of the time an emergency call is placed. This emergencyresponse system shall be operational 24 hours per day, 365 daysper year.

(c) Contracts between the department and regional centers shall

require regional centers to have service coordinator-to-consumerratios, as follows:

(1) An average service coordinator-to-consumer ratio of 1 to62 for all consumers who have not moved from the developmentalcenters to the community since April 14, 1993. In no case shall aservice coordinator for these consumers have an assigned caseloadin excess of 79 consumers for more than 60 days.

(2) An average service coordinator-to-consumer ratio of 1 to45 for all consumers who have moved from a developmental centerto the community since April 14, 1993. In no case shall a servicecoordinator for these consumers have an assigned caseload inexcess of 59 consumers for more than 60 days.

(3) Commencing January 1, 2004, the followingcoordinator-to-consumer ratios shall apply:

(A) All consumers three years of age and younger and forconsumers enrolled in the Home and Community-based ServicesWaiver program for persons with developmental disabilities, anaverage service coordinator-to-consumer ratio of 1 to 62.

(B) All consumers who have moved from a developmentalcenter to the community since April 14, 1993, and have livedcontinuously in the community for at least 12 months, an averageservice coordinator-to-consumer ratio of 1 to 62.

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(C) All consumers who have not moved from the developmentalcenters to the community since April 14, 1993, and who are notdescribed in subparagraph (A), an average servicecoordinator-to-consumer ratio of 1 to 66.

(4) For purposes of paragraph (3), service coordinators mayhave a mixed caseload of consumers three years of age and

younger, consumers enrolled in the Home and Community-basedServices Waiver program for persons with developmentaldisabilities, and other consumers if the overall average caseloadis weighted proportionately to ensure that overall regional centeraverage service coordinator-to-consumer ratios as specied inparagraph (3) are met. For purposes of paragraph (3), in no caseshall a service coordinator have an assigned caseload in excess of84 for more than 60 days.

(d) For purposes of this section, service coordinator means aregional center employee whose primary responsibility includespreparing, implementing, and monitoring consumers individualprogram plans, securing and coordinating consumer services and

supports, and providing placement and monitoring activities.(e) In order to ensure that caseload ratios are maintained

pursuant to this section, each regional center shall provide servicecoordinator caseload data to the department, annually for eachscal year. The data shall be submitted in the format, includingthe content, prescribed by the department. Within 30 days of receiptof data submitted pursuant to this subdivision, the department shallmake a summary of the data available to the public upon request.The department shall verify the accuracy of the data whenconducting regional center scal audits. Data submitted by regionalcenters pursuant to this subdivision shall:

(1) Only include data on service coordinator positions as denedin subdivision (d). Regional centers shall identify the number ofpositions that perform service coordinator duties on less than afull-time basis. Stafng ratios reported pursuant to this subdivisionshall refect the appropriate proportionality of these staff toconsumers served.

(2) Be reported separately for service coordinators whosecaseload includes any of the following:

(A) Consumers who are three years of age and older and whohave not moved from the developmental center to the communitysince April 14, 1993.

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(B) Consumers who have moved from a developmental centerto the community since April 14, 1993.

(C) Consumers who are younger than three years of age.(D) Consumers enrolled in the Home and Community-based

Services Waiver program.(3) Not include positions that are vacant for more than 60 days

or new positions established within 60 days of the reporting monththat are still vacant.

(4) For purposes of calculating caseload ratios for consumersenrolled in the Home- and Community-based Services Waiverprogram, vacancies shall not be included in the calculations.

(f) The department shall provide technical assistance and requirea plan of correction for any regional center that, for two consecutivereporting periods, fails to maintain service coordinator caseloadratios required by this section or otherwise demonstrates aninability to maintain appropriate stafng patterns pursuant to thissection. Plans of correction shall be developed following inputfrom the local area board, local organizations representing

consumers, family members, regional center employees, includingrecognized labor organizations, and service providers, and otherinterested parties.

(g) Contracts between the department and regional center shallrequire the regional center to have, or contract for, all of thefollowing areas:

(1) Criminal justice expertise to assist the regional center inproviding services and support to consumers involved in thecriminal justice system as a victim, defendant, inmate, or parolee.

(2) Special education expertise to assist the regional center inproviding advocacy and support to families seeking appropriateeducational services from a school district.

(3) Family support expertise to assist the regional center inmaximizing the effectiveness of support and services provided tofamilies.

(4) Housing expertise to assist the regional center in accessingaffordable housing for consumers in independent or supportiveliving arrangements.

(5) Community integration expertise to assist consumers andfamilies in accessing integrated services and supports and improvedopportunities to participate in community life.

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(6) Quality assurance expertise, to assist the regional center toprovide the necessary coordination and cooperation with the areaboard in conducting quality-of-life assessments and coordinatingthe regional center quality assurance efforts.

(7) Each regional center shall employ at least one consumeradvocate who is a person with developmental disabilities.

(8) Other stafng arrangements related to the delivery ofservices that the department determines are necessary to ensuremaximum cost-effectiveness and to ensure that the service needsof consumers and families are met.

(h) Any regional center proposing a stafng arrangement thatsubstantially deviates from the requirements of this section shallrequest a waiver from the department. Prior to granting a waiver,the department shall require a detailed stafng proposal, including,but not limited to, how the proposed stafng arrangement willbenet consumers and families served, and shall demonstrate clearand convincing support for the proposed stafng arrangement fromconstituencies served and impacted, that include, but are not limited

to, consumers, families, providers, advocates, and recognized labororganizations. In addition, the regional center shall submit to thedepartment any written opposition to the proposal fromorganizations or individuals, including, but not limited to,consumers, families, providers, and advocates, includingrecognized labor organizations. The department may grant waiversto regional centers that sufciently demonstrate that the proposedstafng arrangement is in the best interest of consumers andfamilies served, complies with the requirements of this chapter,and does not violate any contractual requirements. A waiver shallbe approved by the department for up to 12 months, at which timea regional center may submit a new request pursuant to thissubdivision.

(i) From February 1, 2009, to June 30, 2010, inclusive, thefollowing shall not apply:

(1) The service coordinator-to-consumer ratio requirements ofparagraph (1), and subparagraph (C) of paragraph (3), ofsubdivision (c).

(2) The requirements of subdivision (e). The regional centersshall, instead, maintain sufcient service coordinator caseload datato document compliance with the service coordinator-to-consumerratio requirements in effect pursuant to this section.

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(3) The requirements of paragraphs (1) to (6), inclusive, ofsubdivision (g).

(j) From July 1, 2010, to June 30, 2011, 2012, inclusive, thefollowing shall not apply:

(1) The service coordinator-to-consumer ratio requirements ofparagraph (1), and subparagraph (C) of paragraph (3), of

subdivision (c).(2) The requirements of paragraphs (1) to (6), inclusive, of

subdivision (g).(k) (1) Any contract between the department and a regional

center entered into on and after January 1, 2003, shall require thatall employment contracts entered into with regional center staffor contractors be available to the public for review, upon request.For purposes of this subdivision, an employment contract or portionthereof may not be deemed condential nor unavailable for publicreview.

(2) Notwithstanding paragraph (1), the social security numberof the contracting party may not be disclosed.

(3) The term of the employment contract between the regionalcenter and an employee or contractor shall not exceed the term ofthe states contract with the regional center.

SEC. 11. Section 4648.12 is added to the Welfare andInstitutions Code, immediately following Section 4648.1, to read:

4648.12. (a) The Legislature fnds and declares that underfederal and state law, certain individuals and entities are ineligibleto provide Medicaid services.

(b) An individual, partnership, group association, corporation,institution, or entity, and the offcers, directors, owners, managingemployees, or agents thereof, that has been convicted of any felonyor misdemeanor involving fraud or abuse in any governmentprogram, or related to neglect or abuse of an elder or dependentadult or child, or in connection with the interference with, orobstruction of, any investigation into health care related fraud orabuse, or that has been found liable for fraud or abuse in any civilproceeding, or that has entered into a settlement in lieu ofconviction for fraud or abuse in any government program, withinthe previous 10 years, shall be ineligible to be a regional centervendor. The regional center shall not deny vendorization to anotherwise qualifed applicant whose felony or misdemeanor

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charges did not result in a conviction solely on the basis of theprior charges.

(c) In order to ensure compliance with federal disclosurerequirements and to preserve federal funding of consumer services,the department shall do all of the following:

(1) (A) Adopt emergency regulations to amend provider and

vendor eligibility and disclosure criteria to meet federalparticipation requirements. These emergency regulations shalladdress, at a minimum, disclosure requirements of current andprospective vendors, including information about entity ownershipand control, contracting interests, and criminal convictions orcivil proceedings involving fraud or abuse in any governmentprogram, or abuse or neglect of an elder, dependent adult, orchild.

(B) Adopt emergency regulations to meet federal requirementsapplicable to vouchered services.

(C) The adoption, amendment, repeal, or readoption of aregulation authorized by this paragraph is deemed to be necessary

for the immediate preservation of the public peace, health andsafety, or general welfare, for purposes of Sections 11346.1 and11349.9 of the Government Code, and the department is herebyexempted from that requirement. For purposes of subdivision (e)of Section 11346.1 of the Government Code, the 120-day period,as applicable to the effective period of an emergency regulatoryaction and submission of specifed materials to the Offce ofAdministrative Law, is hereby extended to 180 days.

(2) Adopt nonemergency regulations to implement the terms ofparagraph (1) though the regular rulemaking process pursuant toSections 11346 and 11349.1 of the Government Code within 18months of the adoption of emergency regulations pursuant toparagraph (1).

SEC. 12. Section 4648.14 is added to the Welfare andInstitutions Code, immediately preceding Section 4648.2, to read:

4648.14. Notwithstanding any other provision of law, the StateDepartment of Social Services and the State Department of PublicHealth shall notify the State Department of Developmental Servicesof any administrative action initiated against a licensee servingconsumers with developmental disabilities. For the purposes ofthis section administrative action includes, but is not limitedto, all of the following:

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(a) The issuance of a citation requiring corrective action for ahealth and safety violation.

(b) The temporary or other suspension or revocation of alicense.

(c) The issuance of a temporary restraining order.(d) The appointment of a temporary receiver pursuant to Section

1327 of the Health and Safety Code.SEC. 13. Section 4652.5 is added to the Welfare and Institutions

Code, to read:4652.5. (a) (1) An entity receiving payments from one or more

regional centers shall contract with an independent accountingfrm for an audit or review of its fnancial statements subject toall of the following:

(A) When the amount received from the regional center orregional centers during the entitys fscal year is more than orequal to two hundred andffty thousand dollars ($250,000) butless than fve hundred thousand dollars ($500,000), the entity shallobtain an independent audit or independent review report of its

fnancial statements for the period. Consistent with Subchapter21 (commencing with Section 58800) of Title 17 of the CaliforniaCode of Regulations, this subdivision shall also apply to workactivity program providers receiving less than two hundredfftythousand dollars ($250,000).

(B) When the amount received from the regional center orregional centers during the entitys fscal year is equal to or morethan fve hundred thousand dollars ($500,000), the entity shallobtain an independent audit of its fnancial statements for theperiod.

(2) This requirement does not apply to payments made usingusual and customary rates, as defned by Title 17 of the CaliforniaCode of Regulations, for services provided by regional centers.

(3) This requirement does not apply to state and localgovernmental agencies, the University of California, or theCalifornia State University.

(b) An entity subject to subdivision (a) shall provide copies ofthe independent audit or independent review report required bysubdivision (a), and accompanying management letters, to thevendoring regional center within 30 days after completion of theaudit or review.

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(c) Regional centers receiving the audit or review reportsrequired by subdivision (b) shall review and require resolution bythe entity for issues identifed in the report that have an impact onregional center services. Regional centers shall take appropriateaction, up to termination of vendorization, for lack of adequateresolution of issues.

(d) Regional centers shall notify the department of all qualifedopinion reports or reports noting signifcant issues that directlyor indirectly impact regional center services within 30 days afterreceipt. Notifcation shall include a plan for resolution of issues.

(e) For purposes of this section, an independent review offnancial statements must be performed by an independentaccountingfrm and shall cover, at a minimum, all of the following:

(1) An inquiry as to the entitys accounting principles andpractices and methods used in applying them.

(2) An inquiry as to the entitys procedures for recording,classifying, and summarizing transactions and accumulatinginformation.

(3) Analytical procedures designed to identify relationships oritems that appear to be unusual.

(4) An inquiry about budgetary actions taken at meetings of theboard of directors or other comparable meetings.

(5) An inquiry about whether the fnancial statements have beenproperly prepared in conformity with generally acceptedaccounting principles and whether any events subsequent to thedate of the fnancial statements would have a material effect onthe statements under review.

(6) Working papers prepared in connection with a review offnancial statements describing the items covered as well as anyunusual items, including their disposition.

(f) For purposes of this section, an independent review reportshall cover, at a minimum, all of the following:

(1) Certifcation that the review was performed in accordancewith standards established by the American Institute of CertifedPublic Accountants.

(2) Certifcation that the statements are the representations ofmanagement.

(3) Certifcation that the review consisted of inquiries andanalytical procedures that are lesser in scope than those of anaudit.

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(4) Certifcation that the accountant is not aware of any materialmodifcations that need to be made to the statements for them tobe in conformity with generally accepted accounting principles.

(g) The department shall not consider a request for adjustmentsto rates submitted in accordance with Title 17 of the CaliforniaCode of Regulations by an entity receiving payments from one or

more regional centers solely to fund either anticipated orunanticipated changes required to comply with this section.

SEC. 14. Article 2.6 (commencing with Section 4659.10) isadded to Chapter 5 of Division 4.5 of the Welfare and InstitutionsCode, to read:

Article 2.6. Third-Party Liability

4659.10. It is the intent of the Legislature that this article shallbe implemented consistent with the responsibilities of thedepartment and the regional centers to provide services andsupports pursuant to the requirements of this division and the

California Early Intervention Program. It is further the intent ofthe Legislature that the department and the regional centers shallcontinue to be the payers of last resort consistent with therequirements of this division and the California Early InterventionProgram.

4659.11. (a) When services are provided or will be providedto a consumer under this division, or to a child under 36 monthsof age who is eligible for the California Early InterventionProgram pursuant to Title 14 of the Government Code(commencing with Section 95000), as a result of an injury forwhich another person is liable, or for which an insurance carrieris liable in accordance with the provisions of any policy ofinsurance issued pursuant to Section 11580.2 of the InsuranceCode, the department or the regional center from which theindividual obtained services shall have a right to recover from theperson or carrier the reasonable value of services so provided. Toenforce that right, the department or the regional center mayinstitute and prosecute legal proceedings against the third personor carrier who may be liable for the injury in an appropriate court,either in the name of the department or regional center or in thename of the child or consumer, his or her guardian, conservator,limited conservator, personal representative, estate, or survivors.

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(b) The department and the regional center may compromise,or settle and release a claim as described in subdivision (a).

(c) The department may waive a claim as described insubdivision (a), in whole or in part, if the department determinesthat collection would not be cost-effcient, would result in unduehardship upon the consumer or child who suffered the injury, or

in a wrongful death action upon the heirs of the deceased.(d) No action taken on behalf of the department or the regional

center pursuant to this section or any judgment rendered in thataction shall be a bar to any action upon the claim or cause ofaction of the child or consumer, his or her guardian, conservator,personal representative, estate, dependents, or survivors againstthe third party who may be liable for the injury, or shall operateto deny to the child or consumer the recovery for that portion ofany damages not covered hereunder.

(e) The department, the State Department of Health CareServices, and the Department of Managed Health Care shall worktogether to ensure that the recovery sought by the department,

regional centers, and the State Department of Health Care Servicesfor services for Medi-Cal benefciaries with developmentaldisabilities is appropriate.

4659.12. (a) Where an action is brought by the department ora regional center pursuant to Section 4659.11, it shall becommenced within the period prescribed in Section 338 of theCode of Civil Procedure.

(b) The death of a consumer or child under 36 months of agewho is eligible for the California Early Intervention Program doesnot abate any right of action established by Section 4659.11.

(c) When an action or claim is brought by a person or personsentitled to bring the action or assert the claim against a third partywho may be liable for causing the death of the child or consumer,any settlement, judgment, or award obtained is subject to the rightof the department or the regional center to recover from that partythe reasonable value of the services provided to the consumerunder this division.

(d) Where the action or claim is brought by the child orconsumer alone, and the child or consumer incurs a personalliability to pay attorneys fees and costs of litigation, the claim forreimbursement by the department or the regional center of theservices provided to the child or consumer shall be limited to the

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reasonable value of services less 25 percent, which represents thedepartments or the regional centers reasonable share ofattorneys fees paid by the child or consumer, and that portion ofthe cost of litigation expenses determined by multiplying by theratio of the full amount of the reasonable value of services soprovided to the full amount of the judgment, award, or settlement.

4659.13. (a) If a consumer or child under 36 months of agewho is eligible for the California Early Intervention Program, thedepartment, or a regional center brings an action or claim againsta third party or carrier, the consumer, child, regional center, ordepartment, within 30 days offling the action, shall provide theother persons or entities specifed in this subdivision with writtennotice by personal service or registered mail of the action or claim,and of the name of the court or state or local agency in which theaction or claim is brought. Proof of the notice shall be fled in theaction or claim. If an action or claim is brought by the department,the regional center, the child, or the consumer, any of the otherpersons or entities described in this subdivision, at any time before

trial on the facts, may become a party to, or shall consolidate,their action or claim with, another action or claim if broughtindependently.

(b) If an action or claim is brought by the department or theregional center pursuant to subdivision (a) of Section 4659.11,written notice to the child, consumer, guardian, conservator,personal representative, estate, or survivor given pursuant to thissection shall advise him or her of his or her right to intervene inthe proceeding, his or her right to obtain a private attorney of hisor her choice, and the departments right to recover the reasonablevalue of the services provided.

4659.14. In the event of judgment or award in a suit or claimagainst a third party or carrier:

(a) If the action or claim is prosecuted by the child or consumeralone, the court or agency shall frst order paid from any judgmentor award the reasonable litigation expenses incurred inpreparation and prosecution of the action or claim, together withreasonable attorneys fees, when an attorney has been retained.After payment of these expenses and attorneys fees the court oragency, on the application of the department or the regional center,shall allow as a lien against the amount of the settlement, judgment,or award, the reasonable value of additional services provided to

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the child under the California Early Intervention Program orconsumer under this division, as provided in subdivision (d) ofSection 4659.12.

(b) If the action or claim is prosecuted both by the consumeror child and the department or regional center, the court or agencyshall frst order paid from any judgment or award the reasonable

litigation expenses incurred in preparation and prosecution of theaction or claim, together with reasonable attorneys fees basedsolely on the services rendered for the beneft of the child orconsumer. After payment of these expenses and attorneys fees,the court or agency shall apply out of the balance of the judgmentor award an amount suffcient to reimburse the department thefull amount of the reasonable value of services provided.

4659.15. Upon further application at any time before thejudgment or award is satisfed, the court shall allow as a furtherlien the reasonable value of additional services provided arisingout of the same cause of action or claim provided on behalf of theconsumer under this division, or child under the California Early

Intervention Program, where the services were provided or becamepayable subsequent to the original order.

4659.16. (a) No settlement, judgment, or award in any actionor claim by a consumer or child to recover damages for injuries,where the department or regional center has an interest, shall bedeemedfnal or satisfed withoutfrst giving the department noticeand a reasonable opportunity to perfect and to satisfy thedepartments or regional centers lien. Recovery of the lien froman injured consumers or childs action or claim is limited to thatportion of a settlement, judgment, or award that representspayment for services provided on behalf of the consumer underthis division or a child under the California Early InterventionProgram. All reasonable efforts shall be made to obtain thedepartments advance agreement to a determination as to whatportion of a settlement, judgment, or award represents paymentfor services provided on behalf on the consumer under this divisionor the child under the California Early Intervention Program.Absent the departments advance agreement as to what portion ofa settlement, judgment, or award represents payment for medicalexpenses, or medical care, provided to the child or consumer, thematter shall be submitted to a court for decision. The department,the regional center, or the child or consumer may seek resolution

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of the dispute by fling a motion, which shall be subject to regularlaw and motion procedures.

(b) If the child or consumer has fled a third-party action orclaim, the court in which the action or claim was fled shall havejurisdiction over a dispute between the department or regionalcenter and the child or consumer regarding the amount of a lien

asserted pursuant to this section that is based upon an allocationof damages contained in a settlement or compromise of thethird-party action or claim. If no third-party action or claim hasbeen fled, any superior court in California where venue wouldhave been proper, had a claim or action been fled, shall havejurisdiction over the motion. The motion may be fled as a specialmotion and treated as an ordinary law and motion proceedingsubject to regular motion fees. The reimbursement determinationmotion shall be treated as a special proceeding of a civil naturepursuant to Part 3 (commencing with Section 1063) of the Codeof Civil Procedure. When no action is pending, the person makingthe motion shall be required to pay a frst appearance fee. When

an action is pending, the person making the motion shall pay aregular law and motion fee. Notwithstanding Section 1064 of theCode of Civil Procedure, the child or consumer, the regionalcenter, or the department may appeal the fnal fndings, decision,or order.

(c) The court shall issue its fndings, decision, or order, whichshall be considered the fnal determination of the parties rightsand obligations with respect to the departments lien, unless thesettlement is contingent on an acceptable allocation of thesettlement proceeds, in which case, the courts fndings, decision,or order shall be considered a tentative determination. If the childor consumer does not serve notice of a rejection of the tentativedetermination, which shall be based solely upon a rejection of thecontingent settlement, within 30 days of the notice of entry of thecourts tentative determination, subject to further considerationby the court pursuant to subdivision (d), the tentative determinationshall become fnal. Notwithstanding Section 1064 of the Code ofCivil Procedure, the child, consumer, regional center, ordepartment may appeal the fnal fndings, decision, or order.

(d) If the consumer or child does not accept the tentativedetermination, which shall be based solely upon a rejection of thecontingent settlement, any party may subsequently seek further

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consideration of the courts fndings upon application to modifythe priorfndings, decision, or order based on new or differentfacts or circumstances. The application shall include an affdavitshowing what application was made before, when, and to whatjudge, what order or decision was made, and what new or differentfacts or circumstances, including a different settlement, are claimed

to exist. Upon further consideration, the court may modify theallocation in the interest of fairness and for good cause.

4659.17. When the department or regional center has perfecteda lien upon a judgment or award in favor of a child eligible forthe California Early Intervention Program or a consumer againstany third party for an injury for which the consumer has receivedservices pursuant to this division, the department or the regionalcenter shall be entitled to a writ of execution as lien claimant toenforce payment of the lien against the third party with interestand other accruing costs as in the case of other executions. In theevent the amount of the judgment or award so recovered has beenpaid to the child or consumer, the department or the regional

center shall be entitled to a writ of execution against the child orconsumer to the extent of the departments or the regional centerslien, with interest and other accruing costs as in the case of otherexecutions.

4659.18. Notwithstanding any other provision of law, in noevent shall the department or the regional center recover anamount greater than the child eligible for the California EarlyIntervention Program or consumer recovers after deducting fromthe settlement judgment, or award, attorneys fees and litigationcosts paid for by the child or consumer. If the recovery of thedepartment or regional center is determined under this section,the reductions in subdivision (d) of Section 4659.12 shall not apply.

4659.19. The amount recovered by the department or regionalcenter shall not exceed the amount derived from applying Section4659.12, 4659.16, or 4659.18, whichever is less.

4659.20. In the event that the child or consumer, his or herguardian, conservator, limited conservator, personalrepresentative, estate, or survivors, or any of them brings an actionagainst the third party that may be liable for the injury, notice ofinstitution of legal proceedings, notice of settlement, and all othernotices required by this article shall be given to the director of thedepartment in Sacramento except in cases where the director

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specifes that notice shall be given to the Attorney General. Allnotices shall be given by insurance carriers, as described in Section14124.70, having liability for the childs or consumers claim, andby the attorney retained to assert the claim by the consumer orchild, or by the injured child or consumer, his or her guardian,conservator, limited conservator, personal representative, estate,

or survivors, if no attorney is retained.4659.21. Notwithstanding any other provision of law, all

carriers described in Section 14124.70, including automobile,casualty, property, and malpractice insurers, shall enter intoagreements with regional centers and the department to permitand assist the matching of the eligibility fles of the departmentand the regional centers against the carriers claim fles, utilizing,if necessary, social security numbers as common identifers forthe purpose of determining whether services were provided to achild eligible for the California Early Intervention Program orconsumer because of an injury for which another person is liable,or for which a carrier is liable in accordance with the provisions

of any policy of insurance. The carrier shall maintain a centralizedfle of claimants names, mailing addresses, and social securitynumbers or dates of birth. This information shall be made availableto the department and the regional center upon a reasonablerequest by the department or a regional center. The agreementdescribed in this section shall include fnancial arrangements forreimbursing carriers for necessary costs incurred in furnishingrequested information.

4659.22. (a) Every health insurer, self-insured plan, grouphealth plan, as defned in Section 607(1) of the federal EmployeeRetirement Income Security Act of 1974 (29 U.S.C. Sec. 1001 etseq.), service beneft plan, managed care organization, includinghealth care service plans as defned in subdivision (f) of Section1345 of the Health and Safety Code, licensed pursuant to theKnox-Keene Health Care Service Plan Act of 1975 (Chapter 2.2(commencing with Section 1340) of Division 2 of the Health andSafety Code), pharmacy beneft manager, or other party that is,by statute, contract, or agreement, legally responsible for paymentof a claim for a health care item or service, upon request of thedepartment or a regional center for any records, or anyinformation contained in records pertaining to, an individual orgroup health insurance policy or plan issued by the insurer or

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plan against, or pertaining to, the services paid by or claims madeagainst the insurer or plans under a policy or plan, shall make therequested records or information available upon a certifcationby the department or regional center that the individual is anapplicant for or recipient of services under this division, is anapplicant for or recipient of services under the California Early

Intervention Program, or is a person who is legally responsiblefor the applicant or recipient, provided that the department andregional center certifes its compliance with all state and federallaws pertaining to the confdentiality of medical information.

(b) The department or regional center shall enter into acooperative agreement setting forth mutually agreeable proceduresfor requesting and furnishing appropriate information, consistentwith laws pertaining to the confdentiality and privacy of medicalinformation. These procedures shall include any fnancialarrangements as may be necessary to reimburse insurers or plansfor necessary costs incurred in furnishing requested information,and the time and manner those procedures are to become effective.

The department shall make every effort to coordinate with the StateDepartment of Health Care Services to obtain this information forthis purpose, avoid duplication and administrative costs, and toprotect privacy of medical information pursuant to state andfederal law.

(c) The information required to be made available pursuant tothis section shall be limited to information necessary to determinewhether health care services have been or should have beenclaimed and paid pursuant to an obligation of entities identifedin subdivision (a) and the terms and conditions of the enrolleescontract or, in the case of a Medi-Cal benefciary, pursuant to thescope of the contract between the State Department of Health CareServices and a Medi-Cal managed care health plan, with respectto services received by a particular individual for which servicesunder this division or under the California Early InterventionProgram would be available.

(d) Not later than the date upon which the procedures agreedto pursuant to subdivision (b) become effective, the director shallestablish guidelines to ensure that information relating to anindividual certifed to be an applicant child or consumer, furnishedto any insurer or plan pursuant to this section, is used only for thepurpose of identifying the records or information requested in the

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manner so as not to violate the confdentiality of an applicant orrecipient.

(e) The department shall implement this section no later thanJuly 1, 2011.

4659.23. In order to assess overlapping or duplicate healthcoverage, every health insurer, self-insured plan, group health

plan, as defned in Section 607(1) of the federal EmployeeRetirement Income Security Act of 1974 (29 U.S.C. Sec. 1001 etseq.), service beneft plan, managed care organization, includinghealth care service plans as defned in subdivision (f) of Section1345 of the Health and Safety Code, licensed pursuant to theKnox-Keene Health Care Service Plan Act of 1975 (Chapter 2.2(commencing with Section 1340) of Division 2 of the Health andSafety Code), pharmacy beneft manager, or other party that is,by statute, contract, or agreement, legally responsible for paymentof a claim for a health care item or service shall maintain acentralizedfle of the subscribers, policyholders, or enrolleesnames, mailing addresses, and social security numbers or date of

birth, and where available, for all other covered persons, the namesand social security numbers or dates of births. This informationshall be made available to the department or a regional centerupon reasonable request. Notwithstanding Section 20230 of theGovernment Code, the Board of Administration of the CaliforniaPublic Employees Retirement System and affliated systems orcontract agencies shall permit data matches with the statedepartment to identify consumers with third-party health coverageor insurance.

4659.24. (a) When the rights of a consumer or a child receivingservices under the California Early Intervention Program torecovery from an insurer have been assigned to the departmentor a regional center, an insurer shall not impose any requirementon the department or the regional center that is different from anyrequirement applicable to an agent or assignee of the coveredconsumer or child.

(b) The department may garnish the wages, salary, or otheremployment income of, and withhold amounts from state taxrefunds from, any person to whom both of the following apply:

(1) The person is required by a court or administrative orderto provide coverage of the costs of services provided to a child

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under the California Early Intervention Program or a consumerunder this division.

(2) The person has received payment from a third party for thecosts of the services for the child or consumer, but he or she hasnot used the payments to reimburse, as appropriate, either theother parent or the person having custody of the child or consumer,

or the provider of the services, to the extent necessary to reimbursethe department for expenditures for those costs under this division.All claims for current or past due child support shall take priorityover claims made by the department or the regional center.

(c) For purposes of this section, insurer includes every healthinsurer, self-insured plan, group health plan, as defned in Section607(1) of the federal Employee Retirement Income Security Actof 1974 (29 U.S.C. Sec. 1001 et seq.), service beneft plan, managedcare organization, including health care service plans as defnedin subdivision (f) of Section 1345 of the Health and Safety Code,licensed pursuant to the Knox-Keene Health Care Service PlanAct of 1975 (Chapter 2.2 (commencing with Section 1340) of

Division 2 of the Health and Safety Code), pharmacy beneftmanager, or other party that is, by statute, contract, or agreement,legally responsible for payment of a claim for a health care itemor service.


4791. (a) Notwithstanding any other provision of law orregulation, between July 1, 2010, and June 30, 2011, 2012,inclusive, regional centers may temporarily modify personnelrequirements, functions, or qualications, or staff trainingrequirements for providers, except for licensed or certiedresidential providers, whose payments are reduced by 4.25 percentpursuant to the amendments to Section 10 of Chapter 13 of theThird Extraordinary Session of the Statutes of 2009, as containedin Section 164 of the act that adds this section as amended bySection 164 of Chapter 717 of the Statutes of 2010.

(b) A temporary modication pursuant to subdivision (a),effective during any agreed upon period of time between July 1,2010, and June 30, 2011, 2012, inclusive, may only be approvedwhen the regional center determines that the change will not doany of the following:

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(1) Adversely affect the health and safety of a consumerreceiving services or supports from the provider.

(2) Result in a consumer receiving services in a more restrictiveenvironment.

(3) Negatively impact the availability of federal nancialparticipation.

(4) Violate any state licensing or labor laws or other provisionsof Title 17 of the California Code of Regulations not eligible formodication pursuant to this section.

(c) A temporary modication pursuant to subdivision (a) shallbe described in a written services contract between the regionalcenter purchasing the services and the provider, and a copy of thewritten services contract and any related documentation shall beretained by the provider and the regional center purchasing theservices from the provider.

(d) Notwithstanding any other provision of law or regulation,the department shall suspend, from July 1, 2010, to June 30, 2011,2012, inclusive, the requirements described in Sections 56732 and

56800 of Title 17 of the California Code of Regulations requiringcommunity-based day programs and in-home respite agencies toconduct annual reviews and to submit written reports to vendoringregional centers, user regional centers, and the department.

(e) Notwithstanding any other provision of law or regulation,from July 1, 2010, to June 30, 2011, 2012, inclusive, a residentialservice provider, vendored by a regional center and whose paymentis reduced by 4.25 percent pursuant to the amendments to Section10 of Chapter 13 of the Third Extraordinary Session of the Statutesof 2009, as contained in Section 163 of the act that adds this sectionas amended by Section 164 of Chapter 717 of the Statutes of 2010,shall not be required to complete quarterly and semiannual progressreports required in subdivisions (b) and (c) of Section 56026 ofTitle 17 of the California Code of Regulations. During programreview, the provider shall inform the regional center case managerof the consumers progress and any barrier to the implementationof the individual program plan for each consumer residing in theresidence.

SEC. 16. Section 10 of Chapter 13 of the Third ExtraordinarySession of the Statutes of 2009, as amended by Section 164 ofChapter 717 of the Statutes of 2010, is amended to read:

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Sec. 10. (a) Notwithstanding any other provision of law, inorder to implement changes in the level of funding for regionalcenter purchase of services, regional centers shall reduce paymentsfor services and supports provided pursuant to Title 14(commencing with Section 95000) of the Government Code andDivision 4.1 (commencing with Section 4400) and Division 4.5

(commencing with Section 4500) of the Welfare and InstitutionsCode. From February 1, 2009, to June 30, 2010, inclusive, regionalcenters shall reduce all payments for these services and supportspaid from purchase of services funds for services delivered on orafter February 1, 2009, by 3 percent, and from July 1, 2010, toJune 30, 2011, 2012, inclusive, by 4.25 percent, unless the regionalcenter demonstrates that a nonreduced payment is necessary toprotect the health and safety of the individual for whom the servicesand supports are proposed to be purchased, and the StateDepartment of Developmental Services has granted prior writtenapproval.

(b) Regional centers shall not reduce payments pursuant to

subdivision (a) for the following:(1) Supported employment services with rates set by Section

4860 of the Welfare and Institutions Code.(2) Services with usual and customary rates established

pursuant to Section 57210 of Title 17 of the California Code ofRegulations.

(3) Payments to offset reductions in Supplemental SecurityIncome/State Supplementary Payment (SSI/SSP) benets forconsumers receiving supported and independent living services.

(c) Notwithstanding any other provision of law, in order toimplement changes in the level of funding appropriated for regionalcenters, the department shall amend regional center contracts toadjust regional center budgets accordingly for the 200809 scalyear through the 201011 201112 scal year. The contractamendments and budget adjustments shall be exempt from theprovisions of Article 1 (commencing with Section 4620) of Chapter5 of Division 4.5 of the Welfare and Institutions Code.

SEC. 17. The sum of one thousand dollars ($1,000) is herebyappropriated from the General Fund to the State Department ofDevelopmental Services for administrative costs.

SEC. 18. This act addresses the fscal emergency declared andreaffrmed by the Governor by proclamation on January 20, 2011,

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pursuant to subdivision (f) of Section 10 of Article IV of theCalifornia Constitution.

SEC. 19. This act is a bill providing for appropriations relatedto the Budget Bill within the meaning of subdivision (e) of Section12 of Article IV of the California Constitution, has been identifedas related to the budget in the Budget Bill, and shall take effect

immediately.SEC. 20. This act is an urgency statute necessary for the

immediate preservation of the public peace, health, or safety withinthe meaning of Article IV of the Constitution and shall go intoimmediate effect. The facts constituting the necessity are:

In order to make changes necessary for implementation of theBudget Act of 2011, it is necessary that this act take effectimmediately.

SECTION 1. It is the intent of the Legislature to enact statutorychanges relating to the Budget Act of 2011.

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