Existing law authorizes state agencies to enter into contracts for the acquisition of goods or services upon approval by the Department of General Services. Existing law regulates the method by which approval of the department is obtained.

This bill would authorize the Department of Rehabilitation to award contracts for rehabilitation services, as specified, provided that the value of the purchase is less than $10,000 and involves, among other things, assistive technology devices or services, as defined. The bill would exempt those contracts from competition and advertising if they are awarded in accordance with procedures for documenting fair and reasonable pricing adopted by the Department of Rehabilitation, in collaboration with the Department of General Services, as specified. The bill would require the Department of Rehabilitation to submit a report to the Legislature, prior to January 1, 2029, regarding contracts entered into pursuant to these provisions, as specified. The bill would repeal these provisions on January 1, 2030.

Existing law authorizes state agencies to enter into contracts for the acquisition of goods or services upon approval by the Department of General Services. Existing law regulates the method by which approval of the department is obtained.

This bill would authorize the Department of Rehabilitation to award contracts for rehabilitation services, as specified, provided that the value of the purchase is less than $10,000 and involves, among other things, assistive technology devices or services, as defined. The bill would exempt those contracts from competition and advertising if they are awarded in accordance with procedures for documenting fair and reasonable pricing adopted by the Department of Rehabilitation, in collaboration with the Department of General Services, as specified. The bill would require the Department of Rehabilitation to submit a report to the Legislature, prior to January 1, 2029, regarding contracts entered into pursuant to these provisions, as specified. The bill would repeal these provisions on January 1, 2030.

Existing law authorizes state agencies to enter into contracts for the acquisition of goods or services upon approval by the Department of General Services. Existing law regulates the method by which approval of the department is obtained.

This bill would authorize the Department of Rehabilitation to award contracts for rehabilitation services, as specified, provided that the value of the purchase is less than $25,000 $10,000 and involves, among other things, assistive technology devices or services, as defined. The bill would exempt those contracts from competition and advertising if they are awarded in accordance with procedures for documenting fair and reasonable pricing adopted by the Department of General Services, Rehabilitation, in collaboration with the Department of General Services, as specified. The bill would require the Department of General Services Rehabilitation to submit a report to the Legislature, prior to January 1, 2029, regarding contracts entered into pursuant to these provisions, as specified. The bill would repeal these provisions on January 1, 2030.

Existing law authorizes state agencies to enter into contracts for the acquisition of goods or services upon approval by the Department of General Services. Existing law regulates the method by which approval of the department is obtained.

This bill would authorize the Department of Rehabilitation to award contracts for rehabilitation services, as specified, provided that the value of the purchase is less than $25,000 and involves, among other things, assistive technology devices or services, as defined. The bill would exempt those contracts from competition and advertising if they are awarded in accordance with procedures adopted by the Department of General Services, as specified. The bill would require the Department of General Services, commencing January 1, 2026, and on or before January 1 of each succeeding year, Services to submit a report to the Legislature Legislature, prior to January 1, 2029, regarding contracts entered into pursuant to these provisions, as specified. The bill would repeal these provisions on January 1, 2030.

Existing law authorizes state agencies to enter into contracts for the acquisition of goods or services upon approval by the Department of General Services. Existing law regulates the method by which approval of the department is obtained.

This bill would authorize the Department of Rehabilitation to award contracts for rehabilitation services, as specified, provided that the value of the purchase is less than $25,000 and involves, among other things, assistive technology devices or services, as defined. The bill would exempt those contracts from approval and oversight by any division of competition and advertising if they are awarded in accordance with procedures adopted by the Department of General Services. Services, as specified. The bill would require the Department of Rehabilitation, General Services, commencing January 1, 2026, and on or before January 1 of each succeeding year, to submit a report to the Legislature, Legislature regarding contracts entered into pursuant to these provisions, as specified. The bill would repeal these provisions on January 1, 2030.

Existing law authorizes state agencies to enter into contracts for the acquisition of goods or services upon approval by the Department of General Services. Existing law regulates the method by which approval of the department is obtained.

This bill would authorize the Department of Rehabilitation to award contracts for rehabilitation services, as specified, provided that the value of the purchase is less than $25,000 and involves, among other things, assistive technology devices and or services, as defined. The bill would exempt those contracts from approval and oversight by any division of the Department of General Services. The bill would require the Department of Rehabilitation, commencing January 1, 2026, and on or before January 1 of each succeeding year, to submit a report to the Legislature, as specified.

Existing law authorizes state agencies to enter into contracts for the acquisition of goods or services upon approval by the Department of General Services. Existing law regulates the method by which approval of the department is obtained.

This bill would authorize the Department of Rehabilitation to award contracts for rehabilitation services, as specified, provided that the value of the purchase is less than $25,000 and involves, among other things, assistive technology devices and services, as defined. The bill would exempt those contracts from approval and oversight by any division of the Department of General Services. The bill would require the Department of Rehabilitation, commencing January 1, 2026, and on or before January 1 of each succeeding year, to submit a report to the Legislature, as specified.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 3193

Author:(Calderon)

As Amended Ver:August 23, 2024

Majority vote

SUMMARY

Permits the Department of Rehabilitation (DOR) to award a contract without competition or advertising if the value of the purchase is less than $10,000 and meets specified requirements.

Senate Amendments

1. Add reporting requirements.
2. Limit no competition purchases to be under $10,000 instead of the $25,000.
3. Require DOR to consult with the Department of General Services in developing procedures.
4. Sunset this bill on January 1, 2030.

COMMENTS

Background: Assistive Technology (AT) Services are a piece of equipment or products that helps children and adults carry out tasks they might not otherwise be able to do well or at all. It can be anything that is used to increase, maintain, or improve the functional capabilities and independence of persons with disabilities, aging populations, and people with non-communicable diseases. AT enables people to live healthy, productive, and dignified lives, and promotes inclusion and participation in education, the labor market, and civic life. More than two billion people around the world are expected to need at least one assistive product by 2030.

The World Health Organization (WHO) organizes AT into six domains of functioning, namely, cognition, communication, hearing, mobility, self-care, and vision. Examples of AT include, but are not limited to:

1. High-tech equipment: as specialized, customized computer hardware and accessories; custom switches, keyboards, and mouse alternatives;
2. Specialized computer software: screen-readers, communication software, or tools to help with reading or writing;
3. Services related to the use of AT: evaluation, training, set-up and installation, system configuration and testing, and technical support;
4. Inclusive or specialized learning materials, curriculum aids, and curriculum software;
5. Interpreter services for individuals who are deaf or hard of hearing;
6. Other items such as wheelchairs, height adjustable desks, power lifts, eye-gaze, head trackers, and environmental controls;
7. Low-tech devices such as a reacher, large grip pen, or independent living aid; and,
8. Accessible rental vehicles.

The Assistive Technology Act. In 1988, the Technology-Related Assistance Act (Tech Act) was passed by Congress to provide financial assistance to states to help states develop and implement a consumer-responsive system. All states were awarded funding by 1995. In 1994, the Tech Act was amended and shifted priorities to increase access to AT through policy advocacy and technical assistance. Then, in 1998 the Assistive Technology Act was reauthorized and awarded three-year grants to states for state AT programs.

The 2004 reauthorization made additional requirements for states to provide a consistent set of activities. The latest update was made in 2022 and was called the 21st Century Assistive Technology Act. Today, AT Programs are required to serve all people with all disabilities, all ages, all environments including early intervention, K-12, postsecondary, vocational rehabilitation (VR), and community living.

In California, DOR is the responsible entity for carrying out the Tech Act. DOR contracts with the California Foundation for Independent Living Centers to provide AT services, and funds a network of AT advocates.

According to DOR's Vocational Rehabilitation Portion of the Unified State Plan, "DOR's Mobility Evaluation Program (MEP) provides AT evaluations to DOR consumers. DOR VR Counselors initiate the request for this service by contacting MEP and discussing the case. The MEP will determine if the requested evaluation based on the consumer's needs, availability of equipment for trial, expertise with the technology the consumer may need, and distance to the potential evaluation location will be provided to the consumer. Generally, MEP will travel to the consumer's home, work, or school site, or even meet the consumer at the equipment vendor's facilities so the consumer may trial a piece of equipment to assess problems in the environments in which they occur. A written report providing recommendations for AT to solve specific performance problems, as well as price and availability information for the recommended items is sent to the VR counselor within a month after the consumer was last seen. …

"Through a statewide contract and AT funds for the Independent Living Network, DOR also provides AT services through the California AT Program, a statewide program federally funded through the AT Act and supplemented with state Social Security Reimbursement funds. The California AT Program provides services including:

1. Device Loan Program: Short-term loans can be provided up to one month to qualifying individuals and can be renewed;
2. Device Reutilization Program: A web-based program for individuals and organizations to list reused AT devices to their communities at low or no cost; and,
3. AT and Transportation Loan Guarantee Program: An individual with a disability, family member, or legal guardian of a child with a disability, and an employer (only for the AT Loan Program) can apply for a loan to purchase a vehicle, modifications for a vehicle, and AT services and devices."

Procurement in California. Procurement practices and contracts with buyers and suppliers determine what, where, and how much is purchased. Burdensome procurement and delivery processes delay and reduce access and can be overlooked when identifying bottlenecks in the AT system. A procurement study in the WHO Western Pacific region found that procurement for AT is not well integrated into the government's annual budget and planning cycles, and thus receives minimal and inconsistent funding from year-to-year. The provision of AT is limited for all categories, with the least availability for low-vision, communication, self-care, and cognition products.

In January 2019, California transitioned from using the State Price Schedule for Assistive Technology (SPS-AT) to the new California Assistive Technology, Services and Devices (Cal-ATSD) Supplier Directory. The Cal-ATSD is a statewide change (not limited to VR).

Equity Implications: This bill is aimed to provide AT for individuals who need it for daily living. The devices needed to assist DOR clients are uncommon which complicates the procurement process and causes delays. The AT equipment is not a luxury. Users rely on these devices to live as independently as possible. While the state's procurement process generally serves to create fairness in contracts, the system is not working for these individuals.

According to the Author

"Individuals with disabilities receive specifically tailored assistive technology from the Department of Rehabilitation (DOR). These items include computer reading software for the vision impaired, wheelchairs, and easy to grip writing utensils. Unfortunately, the state's procurement process for these types of devices and technology are often delayed due to there being very few manufacturers of these items. For these individuals, long delays often lead to missed employment opportunities or falling behind in their education. [This bill] remedies this problem by authorizing DOR to award contracts without competition or advertising, provided that the value of the purchase does not exceed $25,000. This legislation will ensure that those who need the assistive technology will receive it in a timely manner."

Arguments in Support

According to the California Council of the Blind, "the DGS regulatory structure, which includes bidding, advertising, and other requirements, is designed for the state as purchaser in a competitive market. However, the purchase of assistive technology differs markedly from most purchasing performed by the state. First, the number of vendors is extremely small, making it difficult and sometimes impossible to obtain the required bids for approved purchase. Second, in order to meet the needs of a specific person with a disability for their education or training program or a job itself, the lowest responsible bid frequently will not be adequate. [This bill] would implement a permanent solution to this problem by exemption from DGS regulation purchases of assistive technology goods and services, which are under $25,000. This exemption will better enable purchases of assistive technology to be made in a way that meets the needs of the client and in a more expeditious manner."

Arguments in Opposition

No opposition on file.

FISCAL COMMENTS

According to the Senate Appropriations Committee on August 15, 2024, unknown one-time costs to DGS for additional staff workload, which includes creating new procurement procedures, producing the required report, and updating and providing staff trainings (Service Revolving Fund). Additionally, DOR anticipates minimal fiscal impact to utilize the method and process proposed in this bill to purchase AT for consumers. For context, DOR notes that it purchased approximately $7.7 million for AT assessments and evaluations, devices, and training in Fiscal Year 2023-24, serving 3,105 consumers. Only one AT procurement was in excess of $25,000.

VOTES:

ASM HUMAN SERVICES: 6-0-1

YES: Lee, Essayli, Calderon, Gipson, Jackson, Ortega

ABS, ABST OR NV: Mathis

ASM APPROPRIATIONS: 14-0-1

YES: Wicks, Sanchez, Arambula, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Grayson, Haney, Hart, Jim Patterson, Pellerin, Ta

ABS, ABST OR NV: Villapudua

ASSEMBLY FLOOR: 73-0-7

YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Davies, Dixon, Essayli, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Wicks, Wilson, Wood, Zbur

ABS, ABST OR NV: Calderon, Megan Dahle, Flora, Low, Mathis, Weber, Robert Rivas

UPDATED

VERSION: August 23, 2024

CONSULTANT: Alexandria Smith / HUM. S. / (916) 319-2089 FN: 0004825

 THIRD READING  

Bill No: AB 3193

Author: Calderon (D)

Amended: 8/23/24 in Senate

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 12-0, 6/25/24

AYES: Dodd, Wilk, Alvarado-Gil, Archuleta, Ashby, Bradford, Glazer, Nguyen, Padilla, Roth, Rubio, Smallwood-Cuevas

NO VOTE RECORDED: Jones, Ochoa Bogh, Portantino, Seyarto

SENATE HUMAN SERVICES COMMITTEE: 5-0, 7/1/24

AYES: Alvarado-Gil, Ochoa Bogh, Blakespear, Limón, Menjivar

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/15/24

AYES: Caballero, Jones, Ashby, Becker, Bradford, Seyarto, Wahab

ASSEMBLY FLOOR: 73-0, 5/2/24 (Consent) - See last page for vote

SUBJECT: State acquisitions of goods and services: rehabilitation services

SOURCE: California Council of the Blind

DIGEST: This bill authorizes the Department of Rehabilitation (DOR) to award a contract for rehabilitative services without competition or advertising, provided the value of the purchase is less than $10,000 and involves an assistive technology (AT) device or service, as specified.

Senate Floor Amendments of 8/23/24 (1) lower, from $25,000 to $10,000, the value of the contract that DOR may award a contract without competition or advertising and (2) require DOR, rather than DGS, to develop the procedures for the awarding of such contracts.

ANALYSIS:

Existing law:

1. Generally requires state agencies, for non-information technology (IT) goods and services contracts, to secure at least three competitive bids or proposals for each contract. Three competitive bids or proposals are not required in, among other cases, the following:
   1. In cases of emergency where a contract is necessary for the immediate preservation of the public health, welfare, or safety, or protection of state property.
   2. When the state agency awarding the contract has solicited all potential contractors but has received less than three bids or proposals.
   3. When the state agency and DGS agree that an article of a specified brand or trade name is the only article that will properly meet the needs of the state agency.
2. Requires DGS to prescribe the conditions under which a contract may be awarded without competition, and the methods and criteria which shall be used in determining the reasonableness of contract costs when a contract is awarded without competition.
3. Establishes DOR, which is tasked with working in partnerships with consumers and other stakeholders to provide services and advocacy resulting in employment, independent living, and equality for individuals with disabilities.
4. Includes legislative findings, under the Public Contract Code (PCC), stating that it is the intent of the Legislature in enacting the PCC to achieve the following objectives:
   1. To clarify the law with respect to competitive bidding requirements.
   2. To ensure full compliance with competitive bidding statutes as a means of protecting the public from misuse of public funds.
   3. To provide all qualified bidders with a fair opportunity to enter the bidding process, thereby stimulating competition in a manner conducive to sound fiscal practices.
   4. To eliminate favoritism, fraud, and corruption in the awarding of public contracts.

This bill:

1. Authorizes DOR, in accordance with procedures for documenting fair and reasonable pricing adopted by DOR, to award a contract for rehabilitative services without competition or advertising, provided that the value of the purchase is less than $10,000 and involves any of the following:
   1. AT devices or services, as defined.
   2. An item, which is not AT, but is to be incorporated into a new or existing integrated system, which does include AT.
   3. An AT device or service that is purchased along with other goods or services and a rehabilitation counselor determines that purchasing the goods or services from an AT vendor.
2. Requires DOR, in developing procedures, to consult with vendors of AT goods and services and organizations that advocate for people with disabilities, as specified.
3. Requires DOR to submit a report to the Legislature, prior to January 1, 2029, regarding contracts entered into pursuant to the provisions of this bill, as specified.
4. Requires the report to describe the efficiencies or improvements that resulted from having awarded contracts under this bill so as to provide the Legislature information necessary to determine the effectiveness of those procedures.

Background

Author Statement. According to the author’s office, “individuals with disabilities receive specifically tailored assistive technology from DOR. These items include computer reading software for the vision impaired, wheelchairs, and easy to grip writing utensils. Unfortunately, the state’s procurement process for these types of devices and technology are often delayed due to there being very few manufacturers of these items. For these individuals, long delays often lead to missed employment opportunities or falling behind in their education. Assembly Bill 3193 remedies this problem by authorizing DOR to award contracts without competition or advertising, provided that the value of the purchase does not exceed $25,000. This legislation will ensure that those who need the assistive technology will receive it in a timely manner.”

Assistive Technology Services. Assistive Technology Services are a piece of equipment or products that helps children and adults carry out tasks they might not otherwise be able to do well or at all. It can be anything that is used to increase, maintain, or improve the functional capabilities and independence of persons with disabilities, aging populations, and people with non-communicable diseases. AT enables people to live healthy, productive, and dignified lives, and promotes inclusion and participation in education, the labor market, and civic life. More than two billion people around the world are expected to need at least one assistive product by 2030.

The World Health Organization (WHO) organizes AT into six domains of functioning, namely, cognition, communication, hearing, mobility, self-care, and vision. Examples of AT include, but are not limited to:

1. High-tech equipment: as specialized, customized computer hardware and accessories; custom switches, keyboards, and mouse alternatives;
2. Specialized computer software: screen-readers, communication software, or tools to help with reading or writing;
3. Services related to the use of AT: evaluation, training, set-up and installation, system configuration and testing, and technical support;
4. Inclusive or specialized learning materials, curriculum aids, and curriculum software;
5. Interpreter services for individuals who are deaf or hard of hearing;
6. Other items such as wheelchairs, height adjustable desks, power lifts, eye-gaze, head trackers, and environmental controls;
7. Low-tech devices such as a reacher, large grip pen, or independent living aid; and,
8. Accessible rental vehicles.

Non-Competitive Contracts. Generally, state agencies for non-IT goods and services are required to secure at least three competitive bids or proposals for each contract. However, current law provides for a number of exceptions to this requirement. For instance, the requirement is waived in cases of emergency where a contract is necessary for the immediate preservation of the public health, welfare, safety, or protection of state property. This exception allows the state to quickly respond to an emergency and obtain the necessary goods or services as quickly as possible without having to wait for three bids to be secured.

Current law also exempts from these requirements instances where state agencies have gone through the bidding process and less than three bids or proposals have been secured. This exception obviously exists to ensure that the state is not prohibited from awarding a contract simply because there were not at least three bids or proposals secured.

Additionally, while other exceptions exist, one of the more commonly used exception is the “sole-source” exception which essentially authorizes state agencies to not abide by the three-bid requirement in those cases where the state agency and DGS agree that the contract can only be fulfilled by one single entity.

Finally, all contracts for goods, services or IT can be awarded without competition, as long as DGS can establish that the pricing is fair and reasonable. This is a statewide policy, thus not unique to the Department of Rehabilitation. However, DGS notes that they have worked with DOR to help set up its current process for these transactions, which involves a qualified vendors list managed by DOR called the California Assistive Technologies, Services, and Devices Supplier Directory.

The Role of DGS in State Contracting. Each state agency is responsible for its own services and acquisition programs. This responsibility includes ensuring the necessity of the services, securing appropriate funding, complying with laws and policies, writing the contract in a manner that safeguards the State’s interests, and obtaining required approvals. The Role of DGS includes all of the following:

1. Approving contracts after execution by the State agency.
2. Designating an Office of Legal Services (OLS) attorney to agencies for review and approval of non-IT services contracts. The designated attorney can serve as a resource during the contracting process.
3. Overseeing State contracting practices.
4. Improving the State’s contracting system.
5. Training personnel in contract requirements.

As such, DGS plays a crucial role in the state contracting process both in the approval of state contracts and in providing oversight over all state agencies to ensure full compliance with competitive bidding statutes as a means of protecting the public from misuse of public funds.

Related/Prior Legislation

SB 1271 (Wilk, Chapter 543, Statutes of 2022) required a state agency, for contracts awarded without competitive bidding for the acquisition of goods or services in the amount of $75 million or more, entered into on or after January 1, 2023, to submit information regarding the terms and conditions of a proposed or renewal of the contract to the Joint Legislative Budget Committee.

SB 1367 (Wilk, 2023) would have prohibited a state agency from awarding a contract for which the state has not secured at least three competitive bids or proposals to a company that has made a behested payment, at the behest of the Governor, in the preceding 12 months. (Failed Passage in the Senate Governmental Organization Committee)

SCA 7 (Wilk, 2022) would have subjected the approval of renewal of a no-bid contract by a state agency for the acquisition of goods or services pursuant to law governing public contracts, in the amount of $25 million or more, entered into on or after January 1, 2023, to the oversight of the Joint Legislative Budget Committee, as prescribed. (Never Heard in the Senate Governmental Organization Committee)

AB 2385 (Kiley, 2022) would have prohibited a contract entered into pursuant to the California Emergency Services Act from containing an automatic renewal clause except if, by the terms of the contract, the clause is operative only upon the Legislature’s approval, by concurrent resolution or statute, of the renewal of the contract. (Never Heard in the Assembly Emergency Management Committee)

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee, unknown one-time costs to DGS for additional staff workload, which includes creating new procurement procedures, producing the required report, and updating and providing staff trainings (Service Revolving Fund). Additionally, DOR anticipates minimal fiscal impact to utilize the method and process proposed in this bill to purchase AT for consumers. For context, DOR notes that it purchased approximately $7.7 million for AT assessments and evaluations, devices, and training in Fiscal Year 2023-24, serving 3,105 consumers. Only one AT procurement was in excess of $25,000.

SUPPORT: (Verified 8/15/2024)

California Council of the Blind (source)

Association of California Employees with Disabilities

Association of Regional Center Agencies

California Foundation for Independent Living Centers

Disability Rights California

OPPOSITION: (Verified 8/15/2024)

None received

ARGUMENTS IN SUPPORT: According to the California Council of the Blind, “the DGS regulatory structure, which includes bidding, advertising, and other requirements, is designed for the state as purchaser in a competitive market. However, the purchase of assistive technology differs markedly from most purchasing performed by the state. First, the number of vendors is extremely small, making it difficult and sometimes impossible to obtain the required bids for approved purchase. Second, in order to meet the needs of a specific person with a disability for their education or training program or a job itself, the lowest responsible bid frequently will not be adequate. AB 3193 would implement a permanent solution to this problem by exemption from DGS regulation purchases of assistive technology goods and services, which are under $25,000. This exemption will better enable purchases of assistive technology to be made in a way that meets the needs of the client and in a more expeditious manner.”

ASSEMBLY FLOOR: 73-0, 5/2/24

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Davies, Dixon, Essayli, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Wicks, Wilson, Wood, Zbur

NO VOTE RECORDED: Calderon, Megan Dahle, Flora, Low, Mathis, Weber, Robert Rivas

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

8/25/24 13:36:00

**** END ****

 THIRD READING  

Bill No: AB 3193

Author: Calderon (D)

Amended: 8/15/24 in Senate

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 12-0, 6/25/24

AYES: Dodd, Wilk, Alvarado-Gil, Archuleta, Ashby, Bradford, Glazer, Nguyen, Padilla, Roth, Rubio, Smallwood-Cuevas

NO VOTE RECORDED: Jones, Ochoa Bogh, Portantino, Seyarto

SENATE HUMAN SERVICES COMMITTEE: 5-0, 7/1/24

AYES: Alvarado-Gil, Ochoa Bogh, Blakespear, Limón, Menjivar

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/15/24

AYES: Caballero, Jones, Ashby, Becker, Bradford, Seyarto, Wahab

ASSEMBLY FLOOR: 73-0, 5/2/24 (Consent) - See last page for vote

SUBJECT: State acquisitions of goods and services: rehabilitation services

SOURCE: California Council of the Blind

DIGEST: This bill authorizes the Department of Rehabilitation (DOR), in accordance with procedures adopted by the Department of General Services (DGS) to award a contract for rehabilitative services without competition or advertising, provided the value of the purchase is less than $25,000 and involves an assistive technology (AT) device or service, as specified.

ANALYSIS:

Existing law:

1. Generally requires state agencies, for non-information technology (IT) goods and services contracts, to secure at least three competitive bids or proposals for each contract. Three competitive bids or proposals are not required in, among other cases, the following:
   1. In cases of emergency where a contract is necessary for the immediate preservation of the public health, welfare, or safety, or protection of state property.
   2. When the state agency awarding the contract has solicited all potential contractors but has received less than three bids or proposals.
   3. When the state agency and DGS agree that an article of a specified brand or trade name is the only article that will properly meet the needs of the state agency.
2. Requires DGS to prescribe the conditions under which a contract may be awarded without competition, and the methods and criteria which shall be used in determining the reasonableness of contract costs when a contract is awarded without competition.
3. Establishes DOR, which is tasked with working in partnerships with consumers and other stakeholders to provide services and advocacy resulting in employment, independent living, and equality for individuals with disabilities.
4. Includes legislative findings, under the Public Contract Code (PCC), stating that it is the intent of the Legislature in enacting the PCC to achieve the following objectives:
   1. To clarify the law with respect to competitive bidding requirements.
   2. To ensure full compliance with competitive bidding statutes as a means of protecting the public from misuse of public funds.
   3. To provide all qualified bidders with a fair opportunity to enter the bidding process, thereby stimulating competition in a manner conducive to sound fiscal practices.
   4. To eliminate favoritism, fraud, and corruption in the awarding of public contracts.

This bill:

1. Authorizes DOR, in accordance with procedures adopted by DGS, to award a contract for rehabilitative services without competition or advertising, provided that the value of the purchase is less than $25,000 and involves any of the following:
   1. AT devices or services, as defined.
   2. An item, which is not AT, but is to be incorporated into a new or existing integrated system, which does include AT.
   3. An AT device or service that is purchased along with other goods or services and a rehabilitation counselor determines that purchasing the goods or services from an AT vendor.
2. Requires DGS, in developing procedures, to consult with vendors of AT goods and services and organizations that advocate for people with disabilities, as specified.
3. Requires DGS to submit a report to the Legislature, prior to January 1, 2029, regarding contracts of $10,000 or more entered into pursuant to the provisions of this bill, as specified.
4. Requires the report to describe the efficiencies or improvements that resulted from having awarded contracts under this bill so as to provide the Legislature information necessary to determine the effectiveness of those procedures.

Background

Author Statement. According to the author’s office, “individuals with disabilities receive specifically tailored assistive technology from DOR. These items include computer reading software for the vision impaired, wheelchairs, and easy to grip writing utensils. Unfortunately, the state’s procurement process for these types of devices and technology are often delayed due to there being very few manufacturers of these items. For these individuals, long delays often lead to missed employment opportunities or falling behind in their education. Assembly Bill 3193 remedies this problem by authorizing DOR to award contracts without competition or advertising, provided that the value of the purchase does not exceed $25,000. This legislation will ensure that those who need the assistive technology will receive it in a timely manner.”

Assistive Technology Services. Assistive Technology Services are a piece of equipment or products that helps children and adults carry out tasks they might not otherwise be able to do well or at all. It can be anything that is used to increase, maintain, or improve the functional capabilities and independence of persons with disabilities, aging populations, and people with non-communicable diseases. AT enables people to live healthy, productive, and dignified lives, and promotes inclusion and participation in education, the labor market, and civic life. More than two billion people around the world are expected to need at least one assistive product by 2030.

The World Health Organization (WHO) organizes AT into six domains of functioning, namely, cognition, communication, hearing, mobility, self-care, and vision. Examples of AT include, but are not limited to:

1. High-tech equipment: as specialized, customized computer hardware and accessories; custom switches, keyboards, and mouse alternatives;
2. Specialized computer software: screen-readers, communication software, or tools to help with reading or writing;
3. Services related to the use of AT: evaluation, training, set-up and installation, system configuration and testing, and technical support;
4. Inclusive or specialized learning materials, curriculum aids, and curriculum software;
5. Interpreter services for individuals who are deaf or hard of hearing;
6. Other items such as wheelchairs, height adjustable desks, power lifts, eye-gaze, head trackers, and environmental controls;
7. Low-tech devices such as a reacher, large grip pen, or independent living aid; and,
8. Accessible rental vehicles.

Non-Competitive Contracts. Generally, state agencies for non-IT goods and services are required to secure at least three competitive bids or proposals for each contract. However, current law provides for a number of exceptions to this requirement. For instance, the requirement is waived in cases of emergency where a contract is necessary for the immediate preservation of the public health, welfare, safety, or protection of state property. This exception allows the state to quickly respond to an emergency and obtain the necessary goods or services as quickly as possible without having to wait for three bids to be secured.

Current law also exempts from these requirements instances where state agencies have gone through the bidding process and less than three bids or proposals have been secured. This exception obviously exists to ensure that the state is not prohibited from awarding a contract simply because there were not at least three bids or proposals secured.

Additionally, while other exceptions exist, one of the more commonly used exception is the “sole-source” exception which essentially authorizes state agencies to not abide by the three-bid requirement in those cases where the state agency and DGS agree that the contract can only be fulfilled by one single entity.

Finally, all contracts for goods, services or IT can be awarded without competition, as long as DGS can establish that the pricing is fair and reasonable. This is a statewide policy, thus not unique to the Department of Rehabilitation. However, DGS notes that they have worked with DOR to help set up its current process for these transactions, which involves a qualified vendors list managed by DOR called the California Assistive Technologies, Services, and Devices Supplier Directory.

The Role of DGS in State Contracting. Each state agency is responsible for its own services and acquisition programs. This responsibility includes ensuring the necessity of the services, securing appropriate funding, complying with laws and policies, writing the contract in a manner that safeguards the State’s interests, and obtaining required approvals. The Role of DGS includes all of the following:

1. Approving contracts after execution by the State agency.
2. Designating an Office of Legal Services (OLS) attorney to agencies for review and approval of non-IT services contracts. The designated attorney can serve as a resource during the contracting process.
3. Overseeing State contracting practices.
4. Improving the State’s contracting system.
5. Training personnel in contract requirements.

As such, DGS plays a crucial role in the state contracting process both in the approval of state contracts and in providing oversight over all state agencies to ensure full compliance with competitive bidding statutes as a means of protecting the public from misuse of public funds.

Related/Prior Legislation

SB 1271 (Wilk, Chapter 543, Statutes of 2022) required a state agency, for contracts awarded without competitive bidding for the acquisition of goods or services in the amount of $75 million or more, entered into on or after January 1, 2023, to submit information regarding the terms and conditions of a proposed or renewal of the contract to the Joint Legislative Budget Committee.

SB 1367 (Wilk, 2023) would have prohibited a state agency from awarding a contract for which the state has not secured at least three competitive bids or proposals to a company that has made a behested payment, at the behest of the Governor, in the preceding 12 months. (Failed Passage in the Senate Governmental Organization Committee)

SCA 7 (Wilk, 2022) would have subjected the approval of renewal of a no-bid contract by a state agency for the acquisition of goods or services pursuant to law governing public contracts, in the amount of $25 million or more, entered into on or after January 1, 2023, to the oversight of the Joint Legislative Budget Committee, as prescribed. (Never Heard in the Senate Governmental Organization Committee)

AB 2385 (Kiley, 2022) would have prohibited a contract entered into pursuant to the California Emergency Services Act from containing an automatic renewal clause except if, by the terms of the contract, the clause is operative only upon the Legislature’s approval, by concurrent resolution or statute, of the renewal of the contract. (Never Heard in the Assembly Emergency Management Committee)

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee, unknown one-time costs to DGS for additional staff workload, which includes creating new procurement procedures, producing the required report, and updating and providing staff trainings (Service Revolving Fund). Additionally, DOR anticipates minimal fiscal impact to utilize the method and process proposed in this bill to purchase AT for consumers. For context, DOR notes that it purchased approximately $7.7 million for AT assessments and evaluations, devices, and training in Fiscal Year 2023-24, serving 3,105 consumers. Only one AT procurement was in excess of $25,000.

SUPPORT: (Verified 8/15/2024)

California Council of the Blind (source)

Association of California Employees with Disabilities

Association of Regional Center Agencies

California Foundation for Independent Living Centers

Disability Rights California

OPPOSITION: (Verified 8/15/2024)

None received

ARGUMENTS IN SUPPORT: According to the California Council of the Blind, “the DGS regulatory structure, which includes bidding, advertising, and other requirements, is designed for the state as purchaser in a competitive market. However, the purchase of assistive technology differs markedly from most purchasing performed by the state. First, the number of vendors is extremely small, making it difficult and sometimes impossible to obtain the required bids for approved purchase. Second, in order to meet the needs of a specific person with a disability for their education or training program or a job itself, the lowest responsible bid frequently will not be adequate. AB 3193 would implement a permanent solution to this problem by exemption from DGS regulation purchases of assistive technology goods and services, which are under $25,000. This exemption will better enable purchases of assistive technology to be made in a way that meets the needs of the client and in a more expeditious manner.”

ASSEMBLY FLOOR: 73-0, 5/2/24

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Davies, Dixon, Essayli, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Wicks, Wilson, Wood, Zbur

NO VOTE RECORDED: Calderon, Megan Dahle, Flora, Low, Mathis, Weber, Robert Rivas

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

8/19/24 17:46:31

**** END ****

SENATE COMMITTEE ON

Senator Anna Caballero, Chair

2023 - 2024 Regular Session

AB 3193 (Calderon) - State acquisitions of goods and services: rehabilitation services

Bill Summary:

AB 3193 authorizes the Department of Rehabilitation (DOR) to award a contract to provide rehabilitation services to eligible individuals with disabilities, without competition or advertising and in accordance with Department of General Services (DGS) established procedures, if the value of the purchase is less than $25,000 and involves an assistive technology (AT) device or service, as specified. AB 3193 also requires DGS to report to the Legislature on contracts entered into pursuant to this bill.

*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********

The following information is revised to reflect amendments

adopted by the committee on August 15, 2024

Fiscal Impact:

• Unknown one-time cost to DGS for additional staff workload, which includes creating new procurement procedures, producing the required report, and updating and providing staff trainings (Service Revolving Fund).
• DOR anticipates minimal fiscal impact to utilize the method and process proposed in this bill to purchase AT for consumers. For context, DOR notes that it purchased approximately $7.7 million of AT assessments and evaluations, devices, and training in Fiscal Year 2023-24, serving 3,105 consumers. Only one AT procurement was in excess of $25,000.

Author Amendments:

Revise DGS reporting requirements as follows:

• Strike ongoing reporting requirement and instead require DGS to submit a report to the Legislature by January 1, 2029.
• Require the report to describe the efficiencies or improvements that resulted from having awarded contracts pursuant to the alternative procedures authorized by this bill and provide the Legislature any information necessary to determine the effectiveness of the alternative procedures.
• Make other technical and nonsubstantive changes.

-- END --

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anna Caballero, Chair

2023 - 2024 Regular Session

AB 3193 (Calderon) - State acquisitions of goods and services: rehabilitation services

Bill Summary:

AB 3193 authorizes the Department of Rehabilitation (DOR) to award a contract to provide rehabilitation services to eligible individuals with disabilities, without competition or advertising and in accordance with Department of General Services (DGS) established procedures, if the value of the purchase is less than $25,000 and involves an assistive technology (AT) device or service, as specified. AB 3193 also requires DGS to report to the Legislature on contracts entered into pursuant to this bill.

Fiscal Impact:

• DGS reports total annual ongoing costs of approximately $742,000 for additional staff workload, which includes creating new procurement procedures, producing the required report, monitoring and overseeing reporting and transaction compliance, and updating and providing staff trainings (Service Revolving Fund). DGS also notes unknown, additional one-time costs to modify the FI$Cal system to include the new reporting criteria.
• DOR anticipates minimal fiscal impact to utilize the method and process proposed in this bill to purchase AT for consumers. For context, DOR notes that it purchased approximately $7.7 million of AT assessments and evaluations, devices, and training in Fiscal Year 2023-24, serving 3,105 consumers. Only one AT procurement was in excess of $25,000.

Background:

Generally, state agencies for non-information technology (IT) goods and services are required to secure at least three competitive bids or proposals for each contract. However, current law provides for a number of exceptions to this requirement. For instance, the requirement is waived in cases of emergency where a contract is necessary for the immediate preservation of the public health, welfare, safety, or protection of state property. This exception allows the state to quickly respond to an emergency and obtain the necessary goods or services as quickly as possible without having to wait for three bids to be secured.

Current law also exempts from these requirements instances where state agencies have gone through the bidding process and less than three bids or proposals have been secured. This exception exists to ensure that the state is not prohibited from awarding a contract simply because there were not at least three bids or proposals secured.

Additionally, while other exceptions exist, one of the more commonly used exceptions is the “sole-source” exception which essentially authorizes state agencies to not abide by the three-bid requirement in those cases where the state agency and DGS agree that the contract can only be fulfilled by one single entity.

Finally, all contracts for goods, services or IT can be awarded without competition, as long as DGS can establish that the pricing is fair and reasonable. This is a statewide policy, thus not unique to the DOR. However, DGS notes that they have worked with DOR to help set up its current process for these transactions, which involves a qualified vendors list managed by DOR called the California Assistive Technologies, Services, and Devices Supplier Directory.

Proposed Law:

• Authorizes DOR to award a contract to provide rehabilitation services to eligible individuals with disabilities, as specified, without competition or advertising and in accordance with DGS procedures, if the value of the purchase is less than $25,000 and involves any of the following: AT devices or services; an item which is not AT, but is to be incorporated into a new or existing integrated system which does include AT; or an AT device or service that is purchased along with other goods or services and a rehabilitation counselor determines that purchasing the goods or services from an AT vendor is most beneficial for the consumer.
• Requires DGS to consult with vendors of AT goods and services and organizations that advocate for people with disabilities in developing its procedures. Requires DGS to give primary emphasis on ensuring the timely delivery of products identified to meet the individual needs of consumers.
• Beginning January 1, 2026 and by January 1 each succeeding year, requires DGS to submit a report to the Legislature on contracts of $10,000 or more entered into pursuant to alternative procedures authorized by this bill.
  • Requires the report to list, for each contract entered into in the previous calendar year, the contract or purchase order number, a brief description of the goods or services, the contractor name, date of the acquisition, and the amount paid. Requires purchases for the same consumer to be grouped together.
• Defines “assistive technology device” as any item, piece of equipment, software or product system designed to increase, maintain, or improve the functional capabilities of individuals with disabilities, as specified.
• Defines “assistive technology service” as a service which directly assists an individual with a disability in the selection, acquisition, or use of an AT device.
• Defines “integrated system” as a collection of equipment or software which is designed to work together as a system.
• Sunsets the above provisions January 1, 2030.

-- END --

SENATE COMMITTEE ON HUMAN SERVICES

Senator Alvarado-Gil, Chair

2023 - 2024 Regular

Subject: State acquisitions of goods and services: rehabilitation services

SUMMARY

This bill would authorize the Department of Rehabilitation (DOR) to award contracts for assistive technology devices or services if the value of the purchase is less than $25,000, and would exempt those contracts from competition and advertising. This bill would require the Department of General Services (DGS) to submit a report to the Legislature regarding contracts entered into pursuant to these provisions.

ABSTRACT

Existing Law:

1. Establishes the DOR within the California Health and Human Services Agency. Makes legislative findings and declarations that vocational rehabilitation services can enable individuals with disabilities to pursue meaningful careers by securing gainful employment commensurate with their abilities and capabilities. Designates DOR as the sole agency with full power to supervise every phase of the administration of the state plan for vocational rehabilitation services. (WIC 19000 et seq.)
2. Defines “individual with a disability” as any individual who:
   1. Has a physical or mental impairment which constitutes or results in a substantial impediment to employment.
   2. Can benefit in terms of an employment outcome from vocational rehabilitation services. (WIC 19151(a))
3. Makes any individual with a disability who requires vocational rehabilitation services to prepare for, enter, engage in, or retain gainful employment, eligible for services through DOR. States it shall be presumed that an individual can benefit in terms of an employment outcome from vocational rehabilitation services unless it can be demonstrated by clear and convincing evidence that the individual is incapable of doing so. Requires eligibility determinations for vocational rehabilitation services to be completed within the timeframes specified in federal law and, to the extent possible, to rely upon existing information available from other programs and providers, as specified. (WIC 19103)
4. Establishes DGS within the Government Operations Agency. Makes legislative declarations that DGS is created to provide centralized services, as specified, including purchasing. Requires DGS to develop and enforce policy and procedures. (Government Code 14600 et seq.)
5. State the intent of the Legislature to achieve the following objectives:
   1. To clarify the law with respect to competitive bidding requirements.
   2. To ensure full compliance with competitive bidding statutes as a means of protecting the public from misuse of public funds.
   3. To provide all qualified bidders with a fair opportunity to enter the bidding process, thereby stimulating competition in a manner conducive to sound fiscal practices.
   4. To eliminate favoritism, fraud, and corruption in the awarding of public contracts. (Public Contract Code [PCC] 100)
6. Requires state agencies to secure at least three competitive bids or proposals for each contract, with some exceptions, as specified. The exceptions include, but are not limited to, when the state agency awarding the contract has solicited all potential contractors but has received less than three bids or proposals, and when the state agency and DGS agree that an article of a specific brand or trade name is the only article that will properly meet the needs of the state agency. (PCC 10340)
7. Requires DGS to prescribe the conditions under which a contract may be awarded without competition, and the methods and criteria to be used in determining the reasonableness of corresponding contract costs. (PCC 10348)

This Bill:

1. Authorizes DOR to award a contract to provide rehabilitation services to eligible individuals with disabilities without competition or advertising if the value of the purchase is less than $25,000 and it involves any of the following:
   1. Assistive technology devices or services.
   2. An item which is not assistive technology, but is to be incorporated into a new or existing integrated system which does include assistive technology.
   3. An assistive technology device or service that is purchased along with other goods or services and a rehabilitation counselor determines that purchasing the goods or services from an assistive technology vendor is most beneficial for the consumer.
2. Provides that these DOR contracts shall be in accordance with procedures adopted by DGS, in collaboration with the DOR. Requires DGS to consult with vendors of assistive technology goods and services and organizations that advocate for people with disabilities, and that DGS shall give primary emphasis on ensuring the timely delivery of products identified to meet the individual needs of consumers.
3. Commencing January 1, 2026, and on or before January 1 of each succeeding year, requires DGS to submit a report to the Legislature on contracts of $10,000 or more entered into pursuant to these alternative contract procedures. Requires the report, for each contract entered into in the previous calendar, to list the contract or purchase order number, a brief description of the goods or services, the contractor name, the date of the acquisition, and the amount paid. Requires purchases for the same consumer to be grouped together. Makes this provision inoperative on January 1, 2029, pursuant to GOV 10231.5. Requires this report to be submitted in compliance with GOV 9795.
4. Defines “assistive technology device” as any item, piece of equipment, software or product system that is designed to increase, maintain, or improve the functional capabilities of individuals with disabilities, including, but not limited to:
   1. Low-tech devices such as a reacher, large grip pen, or independent living aid.
   2. High-tech equipment such as specialized computer hardware and accessories such as custom switches, keyboards, and mouse alternatives.
   3. Specialized computer software such as screen-readers, communication software, or tools to help with reading and writing.
   4. Inclusive or specialized learning materials and curriculum aids.
   5. Specialized curricular software.
   6. Other items such as wheelchairs, height adjustable desks, power lifts, eye-gaze, head trackers, and environmental controls.
5. Defines “assistive technology service” as a service which directly assists an individual with a disability in the selection, acquisition, or use of an assistive technology device. These services include, but are not limited to, evaluation, training, set up and installation, system configuration and testing, and technical support.
6. Defines “integrated system” as a collection of equipment or software which is designed to work together as a system to meet the disability-related needs of a DOR consumer. This includes, but is not limited to, situations where a consumer is adapted through the use of specialized software and peripherals. Some of the necessary components of the system may be generic equipment or software such as cables, scanners, or printers, so long as the system includes one or more assistive technology devices.
7. Sets a sunset date of January 1, 2030 for the provisions of this bill.

FISCAL IMPACT

According to the Assembly Appropriations Committee analysis, “DOR anticipates no net costs. While DOR currently has delegated purchasing authority from DGS that permits DOR to purchase assistive technology devices directly from approved vendors, DOR is still required to follow all DGS procurement rules for Assistive Technology purchases, including seeking multiple bids and advertising. Any staff time made available as a result of awarding contracts using the alternative procedures exempt from approval or oversight by DGS, as specified in this bill, would be offset by other responsibilities required for the provision of services for DOR consumers, including the development and implementation of the alternative procedures authorized by this bill.”

BACKGROUND AND DISCUSSION

Purpose of the Bill:

According to the author, “Individuals with disabilities receive specifically tailored assistive technology from the DOR. These items include computer reading software for the vision impaired, wheelchairs, and easy to grip writing utensils. Unfortunately, the state’s procurement process for these types of devices and technology are often delayed due to there being very few manufacturers of these items. For these individuals, long delays often lead to missed employment opportunities or falling behind in their education. Assembly Bill 3193 remedies this problem by authorizing DOR to award contracts without competition or advertising, provided that the value of the purchase does not exceed $25,000. This legislation will ensure that those who need the assistive technology will receive it in a timely manner”

Assistive Technology

Assistive Technology is any piece of equipment, device, or system that helps children and adults carry out tasks they might not otherwise be able to do well or at all. Assistive Technology can be anything that is used to increase, maintain, or improve the functional capabilities and independence of individuals with disabilities, aging populations, and people with non-communicable diseases. The World Health Organization categorizes Assistive Technology into six domains of functioning: cognition, communication, hearing, mobility, self-care, and vision. Examples of Assistive Technology include wheelchairs, hearing aids, glasses, prosthetic devices, spell checkers and autocorrect, voice recognition, iPads and tablets, braille displays, interpretation services, training and installation services, and inclusive or specialized learning materials. Assistive Technology enables people to live healthy, productive, and dignified lives, and promotes inclusion and participation in education, the labor market, and civic life. According to the World Health Organization, with an aging global population and a rise in non-communicable diseases, an estimated 3.5 billion people will need Assistive Technology by 2050^[1].

Department of Rehabilitation

The DOR works with people with disabilities to help them get jobs, develop or promote in their current jobs, live on their own, and enjoy a life equal to others. DOR administers the largest vocational rehabilitation and independent living programs in the country. Vocational rehabilitation services are designed to help job seekers with disabilities obtain competitive employment in integrated work settings. Independent living services may include peer support, skill development, systems advocacy, referrals, Assistive Technology services, transition services, housing assistance, and personal assistance services. An individual is deemed eligible for DOR services if they have a disability, defined as a physical or mental impairment which constitutes or results in a substantial impediment to employment, and can benefit from vocational rehabilitation services. According to the DOR website^[2], 134,369 people with disabilities received services across 80 field offices during the 2022–23 fiscal year.

According to DOR’s Vocational Rehabilitation Services Portion of the Unified State Plan^[3], the Mobility Evaluation Program provides Assistive Technology evaluations to DOR consumers. Vocational rehabilitation counselors initiate the request for this service by contacting the program and discussing the case. If an evaluation is determined to be necessary, the Mobility Evaluation Program will visit the consumer’s home, work, or school site, or meet at the equipment vendor’s facilities so the consumer may trial a piece of equipment to assess problems in the environments in which they occur. Then, a written report with recommendations for assistive technology, as well as price and availability information for the recommended items is sent to the vocational rehabilitation counselor. Additionally, the DOR provides Assistive Technology services through the California Assistive Technology Program, a statewide, federally-funded program. The California Assistive Technology Program provides services including a Device Loan Program for short-term loans of up to one month that can be renewed.

Related/Prior Legislation:

SB 1271 (Wilk, Chapter 543, Statutes of 2022) required a state agency, for contracts awarded without competitive bidding for the acquisition of goods or services in the amount of $75 million or more, entered into on or after January 1, 2023, to submit information regarding the terms and conditions of a proposed or renewal of the contract to the Joint Legislative Budget Committee.

SB 1367 (Wilk, 2022) would have prohibited a state agency from awarding a contract for which the state has not secured at least three competitive bids or proposals to a company that has made a behested payment, at the behest of the Governor, in the preceding 12 months. SB 1367 failed passage in the Senate Governmental Organization Committee.

AB 2385 (Kiley, 2022) would have prohibited a contract entered into pursuant to the California Emergency Services Act from containing an automatic renewal clause except if, by the terms of the contract, the clause is operative only upon the Legislature’s approval, by concurrent resolution or statute, of the renewal of the contract. AB 2385 was referred to the Assembly Emergency Management Committee and had no further action.

COMMENTS

This bill seeks to simplify DOR procurement of Assistive Technology by exempting DOR from certain state contracting procedures. Just as each person’s ability levels vary, the needs of individuals with disabilities for Assistive Technology vary and can be specific or unique to that person. Assistive Technology acts as an equalizer for individuals with disabilities by enabling them to perform tasks to be able to secure and maintain employment. It is often a priority for Assistive Technology to be procured in a timely manner so as to provide necessary assistance to a consumer as soon as possible and avoid delays or hindrances to employment.

According to data from the U.S. Bureau of Labor Statistics^[4], the unemployment rate for people with a disability was 7.2 percent in 2023, about twice the rate of people with no disability (3.5 percent). However, this measure excludes people who are not in the labor force, meaning people who are not actively looking for a job. The Bureau specified that about three-fourths of people with a disability were not in the labor force in 2023, compared with nearly one-third of people with no disability.

The author may wish to consider requiring a report to be submitted to the Legislature that describes the efficiencies or improvements resulting from the DOR contracting exemptions to establish proof of concept ahead of the bill’s sunset date of January 1, 2030. This could allow the Legislature to determine if the contracting exemptions established pursuant to this bill are effective.

PRIOR VOTES

POSITIONS

Support:

California Council of The Blind (Sponsor)

Association of Regional Center Agencies
California Foundation for Independent Living Centers
Disability Rights California

Oppose:

None

-- END --

1. https://www.who.int/news-room/fact-sheets/detail/assistive-technology ↑

2. https://www.dor.ca.gov/ ↑

3. https://publicaccessstorage.blob.core.usgovcloudapi.net/publicsitefiles/DOR%20Documents/State%20Plan/2022% 20DOR%20State%20Plan%20Modification_Final%20and%20Approved%20by%20RSA.pdf ↑

4. https://www.bls.gov/news.release/disabl.nr0.htm ↑

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Bill Dodd

Chair

2023 - 2024 Regular

Bill No: AB Hearing Date: 6/25/2024

SUBJECT:

DIGEST: This bill authorizes the Department of Rehabilitation (DOR) to award a contract for rehabilitative services without competition or advertising, provided the value of the purchase is less than $25,000 and involves an assistive technology (AT) device or service, as specified. Additionally, the bill exempts any of these contracts from approval or oversight by any division of the Department of General Services (DGS).

ANALYSIS:

Existing law:

1. Generally requires state agencies, for non-information technology (IT) goods and services contracts, to secure at least three competitive bids or proposals for each contract. Three competitive bids or proposals are not required in, among other cases, the following:
   1. In cases of emergency where a contract is necessary for the immediate preservation of the public health, welfare, or safety, or protection of state property.
   2. When the state agency awarding the contract has solicited all potential contractors but has received less than three bids or proposals.
   3. When the state agency and DGS agree that an article of a specified brand or trade name is the only article that will properly meet the needs of the state agency.
2. Requires DGS to prescribe the conditions under which a contract may be awarded without competition, and the methods and criteria which shall be used in determining the reasonableness of contract costs when a contract is awarded without competition.
3. Establishes DOR, which is tasked with working in partnerships with consumers and other stakeholders to provide services and advocacy resulting in employment, independent living, and equality for individuals with disabilities.
4. Includes Legislative findings, under the Public Contract Code (PCC), stating that it is the intent of the Legislature in enacting the PCC to achieve the following objectives:
   1. To clarify the law with respect to competitive bidding requirements.
   2. To ensure full compliance with competitive bidding statutes as a means of protecting the public from misuse of public funds.
   3. To provide all qualified bidders with a fair opportunity to enter the bidding process, thereby stimulating competition in a manner conducive to sound fiscal practices.
   4. To eliminate favoritism, fraud, and corruption in the awarding of public contracts.

This bill:

1. Authorizes DOR to award a contract for rehabilitative services without competition or advertising, provided that the value of the purchase is less than $25,000 and involves any of the following:
   1. AT devices or services.
   2. An item, which is not AT, but is to be incorporated into a new or existing integrated system, which does include AT.
   3. An AT device or service that is purchased along with other goods or services and a rehabilitation counselor determines that purchasing the goods or services from an AT vendor.
2. Provides that contracts awarded through the provisions of this bill shall be exempt from approval or oversight by any division of DGS.
3. Requires DOR, beginning on January 1, 2026, and on or before January 1, until January 1, 2029, to submit a report to the Legislature on contracts of $10,000 or more entered into pursuant to the provisions of this bill.
4. Requires the report to list, for each contract entered into the previous calendar year, the contract or purchase order number, a brief description of the goods and services, the contractor name, the date of the acquisition, and the amount paid.
5. Defines “assistive technology device” to mean any item, piece of equipment, software or product system that is designed to increase, maintain, or improve the functional capabilities of individuals with disabilities, including, but not limited to:
   1. Low tech devices such as a reacher, large grip pen, or independent living aid.
   2. High tech equipment such as specialized computer hardware and accessories such as custom switches, keyboards, and mouse alternatives.
   3. Specialized computer software such as screen-readers, communication software, or tools to help with reading and writing.
   4. Inclusive or specialized learning materials and curriculum aids.
   5. Specialized curricular software.
   6. Other items such as wheelchairs, height adjustable desks, power lifts, eye-gaze, head trackers and environmental controls.
6. Defines “assistive technology service” to mean a service which directly assists an individual with a disability in the selection, acquisition, or use of an AT device. These services include, but are not limited to, evaluation, training, set up and installation, system configuration and testing, and technical support.

Background

Author Statement. According to the author’s office, “individuals with disabilities receive specifically tailored assistive technology from DOR. These items include computer reading software for the vision impaired, wheelchairs, and easy to grip writing utensils. Unfortunately, the state’s procurement process for these types of devices and technology are often delayed due to there being very few manufacturers of these items. For these individuals, long delays often lead to missed employment opportunities or falling behind in their education. Assembly Bill 3193 remedies this problem by authorizing DOR to award contracts without competition or advertising, provided that the value of the purchase does not exceed $25,000. This legislation will ensure that those who need the assistive technology will receive it in a timely manner.”

Assistive Technology Services. Assistive Technology Services are a piece of equipment or products that helps children and adults carry out tasks they might not otherwise be able to do well or at all. It can be anything that is used to increase, maintain, or improve the functional capabilities and independence of persons with disabilities, aging populations, and people with non-communicable diseases. AT enables people to live healthy, productive, and dignified lives, and promotes inclusion and participation in education, the labor market, and civic life. More than two billion people around the world are expected to need at least one assistive product by 2030.

The World Health Organization (WHO) organizes AT into six domains of functioning, namely, cognition, communication, hearing, mobility, self-care, and vision. Examples of AT include, but are not limited to:

1. High-tech equipment: as specialized, customized computer hardware and accessories; custom switches, keyboards, and mouse alternatives;
2. Specialized computer software: screen-readers, communication software, or tools to help with reading or writing;
3. Services related to the use of AT: evaluation, training, set-up and installation, system configuration and testing, and technical support;
4. Inclusive or specialized learning materials, curriculum aids, and curriculum software;
5. Interpreter services for individuals who are deaf or hard of hearing;
6. Other items such as wheelchairs, height adjustable desks, power lifts, eye-gaze, head trackers, and environmental controls;
7. Low-tech devices such as a reacher, large grip pen, or independent living aid; and,
8. Accessible rental vehicles.

Non-Competitive Contracts. Generally, state agencies for non-IT goods and services are required to secure at least three competitive bids or proposals for each contract. However, current law provides for a number of exceptions to this requirement. For instance, the requirement is waived in cases of emergency where a contract is necessary for the immediate preservation of the public health, welfare, safety, or protection of state property. This exception allows the state to quickly respond to an emergency and obtain the necessary goods or services as quickly as possible without having to wait for three bids to be secured.

Current law also exempts from these requirements instances where state agencies have gone through the bidding process and less than three bids or proposals have been secured. This exception obviously exists to ensure that the state is not prohibited from awarding a contract simply because there were not at least three bids or proposals secured.

Additionally, while other exceptions exist, one of the more commonly used exception is the “sole-source” exception which essentially authorizes state agencies to not abide by the three-bid requirement in those cases where the state agency and DGS agree that the contract can only be fulfilled by one single entity.

Finally, all contracts for goods, services or IT can be awarded without competition, as long as DGS can establish that the pricing is fair and reasonable. This is a statewide policy, thus not unique to the Department of Rehabilitation. However, DGS notes that they have worked with DOR to help set up its current process for these transactions, which involves a qualified vendors list managed by DOR called the California Assistive Technologies, Services, and Devices Supplier Directory.

The Role of DGS in State Contracting. Each state agency is responsible for its own services and acquisition programs. This responsibility includes ensuring the necessity of the services, securing appropriate funding, complying with laws and policies, writing the contract in a manner that safeguards the State’s interests, and obtaining required approvals. The Role of DGS includes all of the following:

1. Approving contracts after execution by the State agency.
2. Designating an Office of Legal Services (OLS) attorney to agencies for review and approval of non-IT services contracts. The designated attorney can serve as a resource during the contracting process.
3. Overseeing State contracting practices.
4. Improving the State’s contracting system.
5. Training personnel in contract requirements.

As such, DGS plays a crucial role in the state contracting process both in the approval of state contracts and in providing oversight over all state agencies to ensure full compliance with competitive bidding statutes as a means of protecting the public from misuse of public funds.

Concerns and Suggested Amendments: As previously discussed, DGS plays a critical role in achieving one of the main goals of the PCC; eliminating favoritism, fraud, and corruption in the awarding of public contracts. This bill, by exempting certain contracts from the competitive bidding process and from approval and oversight from any division of DGS, does raise a number of concerns. For example, under this bill, DOR would not only be free to enter into contracts under procedures set up by DOR itself but the bill would prohibit those contracts from approval and oversight of DGS. In doing so, the bill eliminates the ability of DGS, the state agency tasked with approval and oversight of state contracts, from approving and overseeing state contracts. Without approval and oversight from DGS, it would be difficult to ensure that adequate protections are in place to ensure that these contracts are being awarded in a manner that protects the state’s interest. With that in mind, the committee may wish to amend the bill in the following manner to ensure that DGS and the Legislature maintain proper oversight over these contracts.

Amendment 1. As previously mentioned, DGS is responsible for overseeing the state’s contracting process, for prescribing the conditions under which a contract may be awarded without competition, and the methods and criteria which shall be used in determining the reasonableness of contract costs when a contract is awarded without competition. As such, the committee may wish to amend the bill to ensure the DGS, in collaboration with DOR, be the entity responsible for establishing the procedures by which these contracts can be awarded without competition, or advertising as follows:

(b) Notwithstanding the bidding, advertising, and protesting procedures of this chapter, the Department of Rehabilitation may award a contract described in subdivision (a) without competition or advertising, in accordance with procedures adopted by the Department of Rehabilitation Department of General Services, in collaboration with the Department of Rehabilitation, provided that the value of the purchase is less than twenty five thousand dollars ($25,000) and involves any of the following:

Amendment 2. Similarly, the committee may wish to delete the provision below to ensure DGS maintain approval and oversight of state contracts as follows:

(c) Contracts awarded using the alternative procedures described in subdivision (b) shall be exempt from approval or oversight by any division of the Department of General Services.

Amendment 3. To ensure that DGS consults with experts of AT and advocacy organizations for people with disabilities, the committee may wish to add the following provision to the bill:

In developing the procedures, the Department of General Services shall consult with vendors of assistive technology goods and services and advocacy organizations for people with disabilities and shall give primary emphasis on ensuring the timely delivery of products identified to meet the individualize needs of consumers.

Amendment 4. Because DGS is currently responsible for overseeing and approving state contracts, it would seem appropriate that DGS would be the state agency that would be most appropriate to prepare the report currently required in the bill. As such, the committee may wish to amend the bill as follows:

(d) (1) Commencing January 1, 2026, and on or before January 1 of each succeeding year, the Department of Rehabilitation Department of General Services shall submit a report to the Legislature on contracts of $10,000 or more entered into pursuant to the alternative procedures authorized by this section.

(2) The report shall, at a minimum, list, for each contract entered into in the previous calendar year, the contract or purchase order number, a brief description of the goods or services, the contractor name, the date of the acquisition, and the amount paid. Purchases for the same consumer shall be grouped together.

Amendment 5. In order to allow the Legislature the opportunity to review the reports currently required in the bill before making the provisions of the bill permanent, the committee may wish to add a sunset as follows:

This article shall remain in effect until January 1, 2030, and as of that date is repealed.

Prior/Related Legislation

SB 1271 (Wilk, Chapter 543, Statutes of 2022) requires a state agency, for contracts awarded without competitive bidding for the acquisition of goods or services in the amount of $75 million or more, entered into on or after January 1, 2023, to submit information regarding the terms and conditions of a proposed or renewal of the contract to the Joint Legislative Budget Committee.

SB 1367 (Wilk, 2023) would have prohibited a state agency from awarding a contract for which the state has not secured at least three competitive bids or proposals to a company that has made a behested payment, at the behest of the Governor, in the preceding 12 months. (Failed Passage in the Senate Governmental Organization Committee)

SCA 7 (Wilk, 2022) subjects the approval of renewal of a no-bid contract by a state agency for the acquisition of goods or services pursuant to law governing public contracts, in the amount of $25 million or more, entered into on or after January 1, 2023, to the oversight of the Joint Legislative Budget Committee, as prescribed. (Never Heard in the Senate Governmental Organization Committee)

AB 2385 (Kiley, 2022) prohibits a contract entered into pursuant to the California Emergency Services Act from containing an automatic renewal clause except if, by the terms of the contract, the clause is operative only upon the Legislature’s approval, by concurrent resolution or statute, of the renewal of the contract. (Never Heard in the Assembly Emergency Management Committee)

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT:

California Council of the Blind (Source)

California Foundation for Independent Living Centers

Association of California Employees with Disabilities

Association of Regional Center Agencies

Disability Rights California

OPPOSITION:

None received

ARGUMENTS IN SUPPORT: According to the California Council of the Blind, “the DGS regulatory structure, which includes bidding, advertising, and other requirements, is designed for the state as purchaser in a competitive market. However, the purchase of assistive technology differs markedly from most purchasing performed by the state. First, the number of vendors is extremely small, making it difficult and sometimes impossible to obtain the required bids for approved purchase. Second, in order to meet the needs of a specific person with a disability for their education or training program or a job itself, the lowest responsible bid frequently will not be adequate. AB 3193 would implement a permanent solution to this problem by exemption from DGS regulation purchases of assistive technology goods and services, which are under $25,000. This exemption will better enable purchases of assistive technology to be made in a way that meets the needs of the client and in a more expeditious manner.”

DUAL REFERRAL: Senate Governmental Organization Committee & Senate Human Services Committee

Date of Hearing: April 24, 2024

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 3193

Author:(Calderon) – As Introduced Ver:February 16, 2024

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill authorizes the Department of Rehabilitation (DOR) to award a contract for rehabilitative services without competition or advertising, provided the value of the purchase is less than $25,000, and involves an assistive technology (AT) device or service.

Specifically, this bill:

1. Specifies the provisions of this bill apply only to contracts awarded by DOR to provide rehabilitation services to eligible individuals with disabilities.
2. Allows DOR to award a contract without competition or advertising, in accordance with procedures adopted by DOR, if the value of the purchase is less than $25,000 and involves an assistive technology (AT) device or service, as specified.
3. Requires, beginning January 1, 2026, until January 1, 2029, and by January 1 of each succeeding year, DOR to submit a report to the Legislature on contracts of $10,000 or more entered into pursuant to the alternative procedures authorized by this bill.
4. Requires the report to include a list of each contract entered into in the previous calendar year, and contain specified information.
5. Defines, for purposes of this bill, “assistive technology device” to mean any item, piece of equipment, software, or product system that is designed to increase, maintain, or improve the functional capabilities of individuals with disabilities, as specified.

FISCAL EFFECT:

DOR anticipates no net costs. While DOR currently has delegated purchasing authority from DGS that permits DOR to purchase assistive technology devices directly from approved vendors, DOR is still required to follow all DGS procurement rules for AT purchases, including seeking multiple bids and advertising. Any staff time made available as a result of awarding contracts using the alternative procedures exempt from approval or oversight by DGS, as specified in this bill, would be offset by other responsibilities required for the provision of services for DOR consumers, including the development and implementation of the alternative procedures authorized by this bill.

COMMENTS:

1. Purpose. The author seeks to improve the process for individuals with disabilities to procure the assistive technologies and services they need for daily living. According to the author:

Individuals with disabilities receive specifically tailored assistive technology from the Department of Rehabilitation (DOR). These items include computer reading software for the vision impaired, wheelchairs, and easy to grip writing utensils. Unfortunately, the state’s procurement process for these types of devices and technology are often delayed due to there being very few manufacturers of these items. For these individuals, long delays often lead to missed employment opportunities or falling behind in their education. [This bill] remedies this problem by authorizing DOR to award contracts without competition or advertising, provided that the value of the purchase does not exceed $25,000. This bill will ensure those who need the assistive technology will receive it in a timely manner.

1. Background. AT devices are pieces of equipment or products that help children and adults carry out tasks they might not otherwise be able to do well or at all. AT can be anything that is used to increase, maintain, or improve the functional capabilities and independence of persons with disabilities, aging populations, and others. AT promotes inclusion and participation in education, the labor market, and civic life. More than two billion people around the world are expected to need at least one assistive product by 2030.

Existing law requires the process by which the state procures AT devices be subject to approval and oversight by the Department of General Services (DGS). DOR has delegated purchasing authority from DGS that permits DOR to purchase AT devices directly from approved vendors, but DOR is still required to follow all DGS procurement rules for AT purchases, including seeking multiple bids and advertising.

According to Disability Rights California and the California Council of the Blind, supporters of the bill:

The DGS regulatory structure, which includes bidding, advertising, and other requirements, is designed for the state as a purchaser in a competitive market. However, the purchase of assistive technology differs markedly from most purchasing performed by the state. First, the number of vendors is extremely small, making it difficult and sometimes impossible to obtain the required bids for an approved purchase. Second, in order to meet the needs of a specific person with a disability, the lowest responsive bid frequently will not be adequate. Finally, meeting these requirements often takes an inordinate amount of time, thus leading to costly delays in a client’s education or training program or, once an employment offer is received, the inability of a person to perform their job for an extended period of time.

Exempting from DGS regulation purchases of assistive technology goods and services which are under $25,000 will improve the ability of DOR clients to complete the education and training they need and succeed when they receive an offer of employment.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: April 9, 2024

ASSEMBLY COMMITTEE ON HUMAN SERVICES

Alex Lee, Chair

ABPCA Bill Id:AB 3193 (

Author:Calderon) – As Introduced Ver:February 16, 2024

SUBJECT: State acquisitions of goods and services: rehabilitation services

SUMMARY: Permits the Department of Rehabilitation (DOR) to award a contract without competition or advertising if the value of the purchase is less than $25,000 and meets specified requirements. Specifically, this bill:

1. Notwithstanding the bidding, advertising, and protesting procedures, permits DOR to award a contract without competition or advertising, in accordance with procedures adopted by DOR, provided that the value of the purchase is less than $25,000 and involves any of the following:
   1. Assistive technology (AT) devices or services;
   2. An item which is not AT, but is to be incorporated into a new or existing integrated system which does include AT;
   3. An AT device or service that is purchased along with other goods or services and a rehabilitation counselor determines that purchasing the goods or services from an AT vendor is most beneficial for the consumer; and,
   4. Contracts awarded using the alternative procedures are to be exempt from approval or oversight by any division of the Department of General Services.
2. Requires, beginning January 1, 2026, until January 1, 2029, and on or before January 1 of each succeeding year, DOR to submit a report to the Legislature on contracts of $10,000 or more entered into pursuant to the alternative procedures authorized by this bill.
3. Requires the report to include a list of each contract entered into in the previous calendar year, the contract or purchase order number, a brief description of the goods or services, the contractor name, the date of the acquisition, and the amount paid, and requires purchases for the same consumer to be grouped.
4. Exempts contracts entered into from requirements of the Prison Industry Authority (PIA) as described Penal Code (PEN) § 2807.
5. Specifies this bill only applies to contracts awarded by DOR to provide rehabilitation services to eligible individuals with disabilities
6. Defines the following for purposes of this bill:
   1. “Assistive technology device” means any item, piece of equipment, software, or product system that is designed to increase, maintain, or improve the functional capabilities of individuals with disabilities, including but not limited to:
      1.  Low-tech devices such as a reacher, large grip pen, or independent living aid;
      2. High-tech equipment such as specialized computer hardware and accessories such as custom switches, keyboards, and mouse alternatives;
      3. Specialized computer software such as screen readers, communication software, or tools to help with reading and writing;
      4. Inclusive or specialized learning materials and curriculum aids;
      5. Specialized curricular software; and,
      6. Other items such as wheelchairs, height adjustable desks, power lifts, eye-gaze, head trackers and environmental controls.
   2.  “Assistive technology service” means a service which directly assists an individual with a disability in the selection, acquisition, or use of an AT device. These services include, but are not limited to, evaluation, training, set up and installation, system configuration and testing, and technical support.
   3. “Integrated system” means a collection of equipment or software which is designed to work together as a system to meet the disability-related needs of a DOR consumer. This includes, but is not limited to, situations where a computer is adapted through use of specialized software and peripherals. Some of the necessary components of the system may be generic equipment or software such as cables, scanners, or printers, so long as the system includes one or more AT devices.

EXISTING LAW:

1. Establishes competitive bidding and other acquisition procedures. (Public Contract Code [PCC] §§ 10300 – 10334)
2. Requires state agencies to purchase products and services from PIA at the prices fixed by the Authority. (PEN § 2807(a))
3. Requires state agencies to make “maximum utilization” of the products provided by PIA and to consult with PIA to develop new products and adapt existing products to meet their needs. (PEN § 2807(b))

FISCAL EFFECT: Unknown, this bill has not been analyzed by a fiscal committee.

COMMENTS:

Background: Assistive Technology Services are a piece of equipment or products that helps children and adults carry out tasks they might not otherwise be able to do well or at all. It can be anything that is used to increase, maintain, or improve the functional capabilities and independence of persons with disabilities, aging populations, and people with non-communicable diseases. AT enables people to live healthy, productive, and dignified lives, and promotes inclusion and participation in education, the labor market, and civic life. More than two billion people around the world are expected to need at least one assistive product by 2030.

The World Health Organization (WHO) organizes AT into six domains of functioning, namely, cognition, communication, hearing, mobility, self-care, and vision. Examples of AT include, but are not limited to:

• High-tech equipment: as specialized, customized computer hardware and accessories; custom switches, keyboards, and mouse alternatives;
• Specialized computer software: screen-readers, communication software, or tools to help with reading or writing;
• Services related to the use of AT: evaluation, training, set-up and installation, system configuration and testing, and technical support;
• Inclusive or specialized learning materials, curriculum aids, and curriculum software;
• Interpreter services for individuals who are deaf or hard of hearing;
• Other items such as wheelchairs, height adjustable desks, power lifts, eye-gaze, head trackers, and environmental controls;
• Low-tech devices such as a reacher, large grip pen, or independent living aid; and,
• Accessible rental vehicles.

The Assistive Technology Act. In 1988, the Technology-Related Assistance Act (Tech Act) was passed by Congress to provide financial assistance to states to help states develop and implement a consumer-responsive system. All states were awarded funding by 1995. In 1994, the Tech Act was amended and shifted priorities to increase access to AT through policy advocacy and technical assistance. Then, in 1998 the Assistive Technology Act was reauthorized and awarded three-year grants to states for state AT programs.

The 2004 reauthorization made additional requirements for states to provide a consistent set of activities. The latest update was made in 2022 and was called the 21st Century Assistive Technology Act. Today, AT Programs are required to serve all people with all disabilities, all ages, all environments including early intervention, K-12, postsecondary, vocational rehabilitation (VR), and community living.

In California, DOR is the responsible entity for carrying out this Act. DOR contracts with the California Foundation for Independent Living Centers to provide AT services, and funds a network of AT advocates.

According to DOR’s Vocational Rehabilitation Portion of the Unified State Plan, “DOR’s Mobility Evaluation Program (MEP) provides AT evaluations to DOR consumers. DOR VR Counselors initiate the request for this service by contacting MEP and discussing the case. The MEP will determine if the requested evaluation based on the consumer’s needs, availability of equipment for trial, expertise with the technology the consumer may need, and distance to the potential evaluation location will be provided to the consumer. Generally, MEP will travel to the consumer’s home, work, or school site, or even meet the consumer at the equipment vendor’s facilities so the consumer may trial a piece of equipment to assess problems in the environments in which they occur. A written report providing recommendations for AT to solve specific performance problems, as well as price and availability information for the recommended items is sent to the VR counselor within a month after the consumer was last seen. …

“Through a statewide contract and AT funds for the Independent Living Network, DOR also provides AT services through the California AT Program, a statewide program federally funded through the AT Act and supplemented with state Social Security Reimbursement funds. The California AT Program provides services including:

• Device Loan Program: Short-term loans can be provided up to one month to qualifying individuals and can be renewed;
• Device Reutilization Program: A web-based program for individuals and organizations to list reused AT devices to their communities at low or no cost; and,
• AT and Transportation Loan Guarantee Program: An individual with a disability, family member, or legal guardian of a child with a disability, and an employer (only for the AT Loan Program) can apply for a loan to purchase a vehicle, modifications for a vehicle, and AT services and devices.”

Procurement in California. Procurement practices and contracts with buyers and suppliers determine what, where, and how much is purchased. Burdensome procurement and delivery processes delay and reduce access and can be overlooked when identifying bottlenecks in the AT system. A procurement study in the WHO Western Pacific region found that procurement for AT is not well integrated into the government's annual budget and planning cycles, and thus receives minimal and inconsistent funding from year-to-year. The provision of AT is limited for all categories, with the least availability for low-vision, communication, self-care, and cognition products.

In January 2019, California transitioned from using the State Price Schedule for Assistive Technology (SPS-AT) to the new California Assistive Technology, Services and Devices (Cal-ATSD) Supplier Directory. The Cal-ATSD is a statewide change (not limited to VR).

Author’s Statement: According to the Author, “Individuals with disabilities receive specifically tailored assistive technology from the Department of Rehabilitation (DOR). These items include computer reading software for the vision impaired, wheelchairs, and easy to grip writing utensils. Unfortunately, the state’s procurement process for these types of devices and technology are often delayed due to there being very few manufacturers of these items. For these individuals, long delays often lead to missed employment opportunities or falling behind in their education. Assembly Bill 3193 remedies this problem by authorizing DOR to award contracts without competition or advertising, provided that the value of the purchase does not exceed $25,000. This legislation will ensure that those who need the assistive technology will receive it in a timely manner.”

Equity Implications: This bill is aimed to provide AT for individuals who need it for daily living. The devices needed to assist DOR clients are uncommon which complicates the procurement process and causes delays. The AT equipment is not a luxury. Users rely on these devices to live as independently as possible. While the state’s procurement process generally serves to create fairness in contracts, the system is not working for these individuals.

REGISTERED SUPPORT / OPPOSITION:

Support

California Council of the Blind (Sponsor)
Disability Rights California

Opposition

None on file.

Analysis Prepared by: Alexandria Smith / HUM. S. / (916) 319-2089