9530-9538

WELFARE AND INSTITUTIONS CODE
SECTION 9530-9538




9530.  (a) As part of its role in providing leadership to the area
agencies on aging in the development of systems of home and
community-based services to maintain individuals in their own homes
or least restrictive homelike environments and to ensure the
availability of information and awareness of their benefits, rights,
and responsibilities, the department shall contract for an array of
state-funded community-based services specified in this division to
older individuals and functionally impaired adults.
   (b) It is the intent of the Legislature to facilitate central
points of access through integration of the financing and local
management of the community-based services programs, specified in
Chapter 7.5 (commencing with Section 9540) under the area agencies on
aging. Except for any new funds appropriated, the department shall
contract for these services in the planning and service areas where
the services are currently provided.
   (c) It is the intent of the Legislature to ensure that contracts
for services specified in Chapter 7.5 (commencing with Section 9540)
be awarded through a competitive procurement process, considering
factors such as cost and scope of services. Where not otherwise
prohibited by state or federal law or regulations, programs may
benefit from the economical use of shared resources that are
colocated. This chapter shall not prohibit the development or
continuation of the colocation of these programs.



9530.5.  Consistent with Article 4.05 (commencing with Section
14139.05) of Chapter 7 of Part 3 of Division 9, the Legislature
reaffirms the need to restructure the array of categorical programs
that offer medical, social, and other support services that are
funded and administered by a variety of federal, state, and local
agencies. It is in the interest of the state, as a whole, to address
the duplication and fragmentation of the long-term care system and
the home- and community-based services needs of the elderly and
functionally impaired adults. Ideally, individuals needing long-term
care should be able to access the health and social services system
through a central point of entry, disclose basic demographic
information, and be referred to the appropriate sources for
assessment, care planning, and purchase of services. As a step
towards this ideal, the department should develop, by January, 1998,
a plan to expand its state-funded programs statewide, subject to the
redirection of funds.



9531.  (a) This chapter establishes the Community-Based Services
Network.
   (b) It is the intent of the Legislature that a Community-Based
Services Network be initiated by the department in order to do all of
the following:
   (1) Locally integrate the state-funded community-based services
programs, specified in this division, for older individuals and
functionally impaired adults.
   (2) Provide increased local flexibility in setting priorities for
the services contained within the six state General Fund programs
specified in Sections 9542 to 9547, inclusive.
   (3) Contract responsibility for local management of the
state-funded community-based services programs specified in Chapter
7.5 (commencing with Section 9540) to participating area agencies on
aging.
   (c) Each participating area agency on aging shall ensure the
continuation of the funding match currently required for the
community-based services programs specified in Chapter 7.5
(commencing with Section 9540). The match may consist of either cash
or in-kind services.
   (d) Each participating area agency on aging shall have
responsibility for local program management of the community-based
services programs specified in Chapter 7.5 (commencing with Section
9540).


9532.  In addition to the definitions already contained in this
division, the following definitions apply to this chapter.
   (a) "Community-based services programs" means the programs
specified in Chapter 7.5 (commencing with Section 9540).
   (b) "Community-Based Services Network" means the contracting of
state funds and local management responsibility for the
community-based services programs specified in Chapter 7.5
(commencing with Section 9540) to area agencies on aging.
   (c) "Functionally-impaired adult" means any adult 18 years of age
or older, who is at risk of institutional placement due to chronic
physical and mental limitations, including impairments caused by
organic disorders or diseases, that restrict his or her ability to
independently perform personal activities of daily living, who has an
inadequate informal or formal support network, and who has to leave
his or her home without supportive home- and community-based
services.
   (d) "Local program management" means the area agency on aging's
responsibility to oversee the operation of programs specified in
Chapter 7.5 (commencing with Section 9540).
   (e) "Participating area agency on aging" means an area agency on
aging that contracts with the department pursuant to this chapter.



9533.  The department shall be responsible for, but not limited to,
all of the following:
   (a) Reviewing and approving the Community-Based Services Network
component of the area plans of participating area agencies on aging.
   (b) Entering into contracts with area agencies on aging to carry
out the requirements set forth in this chapter and Chapter 7.5
(commencing with Section 9540) that shall include the requirements
set forth in subdivisions (c) and (e) for area agencies local
management responsibilities under this division.
   (c) Developing the respective responsibilities for the department
and participating area agencies on aging.
   (d) Developing model language for area agencies on aging to use in
their procurement and final contracts with direct service providers.
   (e) Enforcing statewide requirements to ensure compliance with the
statutes and regulations necessary to carry out the purposes of this
chapter and Chapter 7.5 (commencing with Section 9540).
   (f) Ensuring that a participating area agency on aging that has
not been directly providing the services specified under the programs
provided for in Chapter 7.5 (commencing with Section 9540) shall not
commence directly providing these services until the department has
reviewed and concurred with the area plan or update documentation
demonstrating that the area agency can provide a comparable quality
of these services at least as economically and at an enhanced benefit
to the consumer or that there is not an adequate supply of these
services in the affected area.



9534.  (a) Contracts between the department and participating area
agencies on aging shall be exempt from Chapter 2 (commencing with
Section 10290) of Part 2 of Division 2 of the Public Contract Code.
   (b) For the health insurance counseling and advocacy program,
participating area agencies on aging that cover a single planning and
service area shall maintain the existing service arrangements during
the 1997-98 fiscal year, unless either a contractor terminates the
agreement according to the terms and conditions of the existing
contract, the state and area agencies on aging terminate the
agreement for legal cause under the terms and conditions of the
existing contract, or if state funds cease to be budgeted for the
specified services.
   (c) For the health insurance counseling and advocacy program,
participating area agencies on aging that cover multiple planning and
service areas shall enter into mutual agreements or joint powers
agreements, or both, to maintain the existing service arrangements
for the health insurance counseling and advocacy program for the
1997-98 fiscal year and for one additional year, if needed, but not
to extend beyond June 30, 1999, unless either a contractor terminates
the agreement according to the terms and conditions of the existing
contract, the state and area agency on aging terminate the agreement
for legal cause under the terms and conditions of the existing
contract, or if state funds cease to be budgeted for the specified
services.
   (d) For the programs other than the health insurance counseling
and advocacy program specified in Chapter 7.5 (commencing with
Section 9540), participating area agencies on aging shall maintain
the existing service arrangements during the 1997-98 fiscal year,
unless either a contractor terminates the agreement according to the
terms and conditions of the existing contract, the state and area
agency on aging terminate the agreement for legal cause under the
terms and conditions of the existing contract, or if state funds
cease to be budgeted for the specified services.
   (e) For the programs other than the health insurance counseling
and advocacy program specified in Chapter 7.5 (commencing with
Section 9540), participating area agencies on aging shall maintain
the existing service arrangements during the 1998-99 fiscal year,
unless a contractor terminates the agreement according to the terms
and conditions of the existing contract, the state and the area
agency on aging terminate the agreement for legal cause under the
terms and conditions of the existing contract, or state funds cease
to be budgeted for the specified services.
   (f) Subject to fiscal years specified in subdivisions (b) to (e),
inclusive, participating area agencies on aging that elect not to
provide the community-based services specified in Chapter 7.5
(commencing with Section 9540) directly, shall provide for the
services through contracts awarded on the basis of a competitive
proposal or bid process, or both, that is conducted at least once
every four years, except that an area agency on aging shall not be
required to conduct a full competitive process if all of the
following conditions are met:
   (1) A request for application is published, and full outreach is
conducted to reasonably notify all potential interested parties, such
as formal advertisements in trade journals and association
publications.
   (2) No applicants, in addition to current contractors, respond to
the request for application.
   (3) Complete documentation of the outreach effort is maintained by
the area agency on aging.
   (g) Any dispute regarding the procurement of, and the terms and
conditions of the direct service contracts procured by the area
agency on aging shall be resolved locally, consistent with
subdivision (k) of Section 9535, and as specified in the local area
agency procurement documents and contracts.



9535.  Area agencies on aging shall be responsible for, but not
limited to, all of the following:
   (a) Contracting with the department to locally manage the
community-based programs specified in and in accordance with the
requirements of this chapter and Chapter 7.5 (commencing with Section
9540).
   (b) Integrating the community-based services programs contracted
under this chapter into the local area plan development process.
   (c) Where the area agency on aging proposes to redirect funding
under this chapter, the area agency shall ensure that it has
submitted its recommendations to a locally formed advisory committee,
that shall include consumers of long-term care services,
representatives of local organizations of seniors, functionally
impaired adults, representatives of employees who deliver direct
long-term care services, and representatives of organizations that
provide long-term care services. At least one-half of the members of
the advisory committee shall be consumers of services provided under
this chapter or their representatives.
   (d) In addition, where the area agency on aging proposes to
redirect funding under this chapter, an administrative action plan
shall be developed and shall receive the approval of the area agency'
s governing board, which shall consider the input received pursuant
to subdivision (c). The administrative action plan shall receive the
governing board's approval prior to submission to the department for
final state approval. The administrative action plan shall be an
update to the area plan.
   (e) Effective in the 1999-2000 fiscal year, and except for the
health insurance counseling and advocacy program, determining which
of the community-based services programs specified in Chapter 7.5
(commencing with Section 9540) and contracted under the authority in
this chapter will continue to be funded and the amount of funding to
be allocated for that purpose.
   (f) Subject to Section 9534, providing directly, through contracts
with other local governmental entities, or through competitively
procured contracts, the community-based services programs.
   (g) When required pursuant to Chapter 875 of the Statutes of 1995,
and subject to the annual Budget Act, relinquishing funding
originally contracted under this chapter and the associated local
management of the community-based services programs, and except for
the health insurance counseling and advocacy program, to the
long-term care integration pilot program.
   (h) Monitoring direct services contract performance and ensuring
compliance with the requirements of this chapter and any other
relevant state or federal laws or regulations and the
nondiscrimination requirements set forth under Article 9.5
(commencing with Section 4135) of Chapter 1 of Part 1 of Division 3
of Title 2 of the Government Code.
   (i) Appropriately expending and accounting for all funds
associated with this chapter and providing access to all program
books of account and other records to state auditors.
   (j) Maintaining a systematic means of capturing and reporting to
the department all required community-based services program data,
specified in paragraph (5) of subdivision (a) of Section 9102.
   (k) The governing body of each participating area agency shall
establish a process within its area plan for requesting and providing
a hearing for the programs specified under this chapter and Chapter
7.5 (commencing with Section 9540). A hearing shall be provided upon
the request of either provider whose existing direct services
contract is either terminated prior to its expiration date or reduced
in scope outside of the state or federal budget process, or any
applicant that is not selected in a direct service contract
procurement process due to the alleged presence of a conflict of
interest, procedural error or omission in solicitation request, or
the lack of substantial evidence to support the award.




9536.  (a) The state funds available for the community-based
services programs may not be expended for services other than those
specified in Chapter 7.5 (commencing with Section 9540), and shall be
limited to the state funds appropriated to the department for the
implementation of this chapter and Chapter 7.5 (commencing with
Section 9540).
   (b) Reimbursement for administrative costs incurred by a
participating area agency on aging in operating the community-based
services network shall not exceed the administrative funding ratio
allowed for area agencies on aging under Title III of the federal
Older Americans Act (42 U.S.C. Sec. 3001, et seq.), and as specified
in the contract.
   (c) The funding provided under this chapter may not be used to
supplant the local matching requirements of other state and federal
programs.



9537.  The funding contracted by the department to the participating
area agencies on aging under this chapter shall consist of both of
the following:
   (a) The proportion of local assistance funds appropriated to, and
encumbered by, the department for direct services under the
community-based services programs specified in Chapter 7.5
(commencing with Section 9540).
   (b) The proportion of state operations cost savings realized by
the department that are directly attributable to the local management
of the community-based services programs specified in Chapter 7.5
(commencing with Section 9540) and any additional funds subsequently
appropriated for the administrative costs incurred by the area
agencies on aging.
   (c) Subject to the annual Budget Act, in no event shall the amount
appropriated to the participating area agency on aging for purposes
of subdivisions (a) and (b), be less than that appropriated in the
base fiscal year of 1997-98.


9538.  (a) Persons involved in the procurement or management of
services shall not engage in a conflict of interest, real or
apparent.
   (b) Staff and volunteers shall not engage in the business of
insurance or other related activity while associated with the
community-based services programs.
   (c) For the services covered under the community-based services
programs, no area agency or contract officer, employee, or board
member shall use the formal names or acronyms for the services except
in conjunction with the provision of covered services, official
duty, and participation in specifically sanctioned events.
   (d) No information concerning any individual that is acquired by
the department, the area agencies on aging, or service providers in
the administration and delivery of community-based services specified
in Chapter 7.5 (commencing with Section 9540), including the fact
that an individual has sought or received services, shall be
disclosed without the informed written consent of the individual to
whom the information applies or unless pursuant to court order, after
noticed hearing, irrespective of whether the person or party seeking
disclosure already has the information, has other means of obtaining
the information, had obtained a subpoena to obtain the information,
or asserts any other basis or justification for disclosure of the
information. Nothing in this subdivision shall preclude the exchange
of information between the department, the area agencies on aging,
and service providers which is necessary for the effective state and
local administration and oversight of the programs involved, or the
sharing of information with state licensing and certification
agencies or law enforcement entities when the information is
necessary for the performance of their respective duties.