This bill establishes governance and service standards for developmental disability service providers, specifically targeting those agencies authorized to provide $250,000 or more in billable services during the previous State fiscal year. It mandates that these "covered provider agencies" have a board of directors with a minimum of five members, the majority of whom must be independent. Additionally, the bill requires the appointment of a self-advocate or family member of a recipient as a non-voting board observer, and for agencies with revenues exceeding $2 million, the establishment of an independent audit committee. The bill also stipulates that these agencies must publicly post their three most recent annual audited financial statements on their websites.

To ensure that funds are primarily used for direct client services, the bill caps expenditures on executive compensation and administrative costs at 15% of program revenues and sets salary limits based on the agency's revenue from the division. It also prohibits loans to staff members and requires agencies to report significant events that could adversely impact operations. Furthermore, the bill mandates the creation of written policies addressing nepotism, conflicts of interest, and retaliation, and requires a full-time manager at sites serving more than three clients. To support the implementation and enforcement of these provisions, the bill appropriates $300,000 from the General Fund to the Department of Human Services.