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 board observer, ensuring that the interests of service recipients are represented. Covered provider agencies with revenues exceeding $2 million must also form an independent audit committee. The bill emphasizes transparency by requiring these agencies to 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 imposes a cap of 15 percent on expenditures for executive compensation and administrative costs, while also updating existing salary caps based on future increases in the State's minimum wage. It prohibits loans to staff members and requires agencies to report significant events that could adversely impact operations. Furthermore, the bill mandates the establishment of written policies on nepotism, conflicts of interest, and retaliation, fostering an environment where concerns can be raised without fear of repercussions. To support the implementation of these provisions, the bill appropriates $300,000 from the General Fund to the Department of Human Services for hiring additional staff to monitor compliance.