BILL ANALYSIS                                                                                                                                                                                                    






                           SENATE JUDICIARY COMMITTEE
                            Martha M. Escutia, Chair
                           2001-2002 Regular Session


          AB 1278                                                A
          Assembly Member Wayne                                  B
          As Amended June 14, 2001
          Hearing Date:  July 3, 2001                            1
          Health and Safety Code; Probate Code                   2
          GMO:sr                                                 7
                                                                 8

                                     SUBJECT
                                         
                             Health Care Decisions


                                   DESCRIPTION  

          This bill would make minor substantive and technical  
          revisions to the Health Care Decisions Law (HCDL) at the  
          recommendation of the California Law Revision Commission  
          (CLRC).  

          The revisions would clarify duties and liabilities of an  
          appointed agent for health care with respect to funeral  
          decisions and the relationship between a "surrogate" and an  
          "agent," and remove authority to make health care decisions  
          from the authority that may be given by a person having  
          capacity to an attorney-in-fact under a general power of  
          attorney.  The bill would redefine "capacity" as used in  
          the HCDL and specify use of a court petition to enforce  
          health care instructions by the person or his or her agent  
          or surrogate. 
                                         
                                   BACKGROUND  

          California's Health Care Decisions Law was enacted in 1999  
          (AB 891, Alquist, Chapter 658, Statutes of 1999), and  
          became operative on July 1, 2000. The HCDL provides for the  
          creation, form, and revocation of advance health care  
          directives, and for the manner of making health care  
          decisions for patients without surrogates.  While there  
          were inconsistent and unclear guidelines being used by the  
                                                                 
          (more)



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          medical profession and the bar before AB 891 was passed,  
          the Act now provides uniform statutory rules for  
          determining succession to decisionmaking in the case of an  
          incapacitated person, especially one who has no appointed  
          surrogate. 

          Since it became operative last year, health care  
          institutions and professional groups that have begun to  
          implement the new law have uncovered several problems and  
          reported them to the CLRC.  This bill contains all of the  
          Commission's recommendations for resolving those reported  
          problems and other minor issues.

                             CHANGES TO EXISTING LAW
           
          Under the  Health Care Decisions Law  (the HCDL), a person  
          having capacity may authorize another to make decisions on  
          his or her behalf pursuant to a power of attorney or  
          pursuant to an advance health care directive, as specified.  
           The HCDL defines a legally sufficient health care  
          directive, specifies how a power of attorney that suffices  
          as a health care directive is to be limited, and specifies  
          the powers of an agent appointed by the principal of a  
          power of attorney for health care.  Under the HCDL, a  
          patient in a health care facility or intermediate care  
          facility may also appoint a surrogate, orally or in  
          writing, and communicate that to the supervising health  
          care provider.

           This bill  would:

           clarify that an attorney-in fact under a general power of  
            attorney is not authorized to make health care decisions  
            for the principal;
           redefine "capacity" with respect to a person's ability to  
            understand, make, and communicate decisions, including  
            health care decisions;
           clarify the duties and liabilities of an agent with  
            respect to funeral decisions;
           clarify the authority of a "surrogate" rather than an  
            "agent" to make health care decisions if both were  
            appointed;
           clarify who may and may not make health care decisions as  
            a surrogate under the Health Care Decisions Law or an  
            agent under a power of attorney for health care;
                                                                       




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           specify use of a court petition to honor individual  
            health care instructions or to enforce health care  
            decisions by an agent or surrogate.


                                     COMMENT
           

          1.    Stated need for the bill

             The miscellaneous revisions to the Health Care Decisions  
            Law proposed by the California Law Revision Commission  
            arose from a follow-up study of the HCDL since it became  
            effective July 1, 2000.  The Commission states that the  
            revisions are necessary to avoid unintended consequences  
            of the HCDL, and to clarify ambiguities that have  
            surfaced or that may cause problems later on.



          2.    Definition of "capacity"

             "Capacity" is currently defined in the HCDL as:

               "a patient's ability to understand the nature and  
               consequences of proposed health care, including  
               its significant benefits, risks, and  
               alternatives, and to make and communicate a  
               health care decision."  [Probate Code Section  
               4609.]

            The CLRC explains that when HCDL was drafted, the  
            Commission adopted the definition of capacity from Health  
            and Safety Code Section 1418.8 (which actually defines  
            when a person in a skilled nursing facility or an  
            intermediate care facility lacks capacity to make  
            decisions) and the Uniform Health Care Decisions Law of  
            1993.  

            Now, the CLRC states, a technical problem has surfaced  
            where there is no "proposed health care" at the time the  
            individual's capacity is relevant.  This would occur  
            when, for example, a person is filling out an advance  
            health care directive to appoint a health care agent or  
            to give future health care instructions.  Even though the  
                                                                       




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            "ability to make and communicate a health care decision"  
            prong of the definition is met, the fact that there is no  
            "proposed health care" may cause confusion.

            By proposing the new definition of "capacity" the  
            Commission intends to make clear that in both aspects  
            (i.e., health care decisionmaking and instrument  
            execution), the person must have the ability to  
            understand the nature and consequences of the decision or  
            action and be able to communicate it.  This would avoid  
            the technical problem raised when there is no "proposed  
            health care" for the person executing the advance health  
            care directive.

            Under this bill, the new definition of "capacity" would  
            be: 

               "a person's ability to understand the nature and  
               consequences of a decision and to make and  
               communicate a decision, and includes in the case  
               of proposed health care, the ability to  
               understand its significant benefits, risks, and  
               alternatives."

            The CLRC points out that this new definition will also  
            apply to a person's decision to select or disqualify a  
            surrogate.




          3.    Surrogates and agents for health care: what happens  
            when both are appointed;  limitations on surrogate  
            appointment
           
            While designation of an agent under a power of attorney  
            for health care is the preferred route, the HCDL permits  
            a patient to designate a "surrogate" by personally  
            informing the supervising health care provider, orally or  
            in writing, affirming the patient's autonomy in the  
            clinical context.  However, the HCDL also limits such  
            surrogate designations to the "course of treatment or  
            illness or during the stay in the health care institution  
            when the designation is made."

                                                                       




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            There are two problems with the above rules, according to  
            the CLRC.  One is that even though the statute does not  
            specify that a patient's oral designation of a surrogate  
            revokes a previous designation of an agent (under a power  
            of attorney for health care), the CLRC comment to Section  
            4711 provides for that result (i.e., the statute would be  
            construed as to revoke the agent's previous designation).  
             In retrospect, CLRC now believes this policy would be  
            too harsh and may actually defeat a patient's intent.

            The second problem is that the restriction on the  
            duration of oral surrogate designations to the "stay in  
            the health care institution" is not a meaningful  
            limitation (for example, if the patient has diabetes or  
            other chronic condition, thus making the stay in the  
            health care institution unlimited).

            This bill resolves these problems by making the surrogate  
            designation effective (whether oral or in writing) only  
            for the duration of the course of treatment or the stay  
            in the health care facility, or 60 days, whichever is  
            shorter.  During this period, the surrogate would have  
            priority over an agent for health care.  The expiration  
            of the surrogate designation would not affect any other  
            authority of the surrogate under any other law or  
            standard of practice.

            However, the bill would make clear that the designation  
            of a surrogate under these conditions would not revoke  
            the designation of an agent for health care, unless the  
            patient communicates the intention to revoke in writing,  
            or by personally informing the supervising health care  
            provider (who would note that in the patient's records).

            This new scheme proposed by AB 1278 would thus reverse  
            that which exists under the current HCDL, which revokes  
            the agent's authority once a surrogate is designated.   
            The CLRC agrees that "designating a surrogate should act  
            as revocation of the agency only if the patient expresses  
            that intention,"  because a patient may want the  
            surrogate to act in place of a named agent for a number  
            of reasons, without intending to permanently replace the  
            agent (such as when an agent is on a vacation or is  
            otherwise unavailable when the patient is hospitalized).

                                                                       




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          4.    Attorney-in-fact under general power of attorney has  
            no health care decision-making power
           
            A general power of attorney grants the attorney-in-fact  
            broad authority and decisionmaking powers with regards to  
            the principal's property, personal care, health care or  
            any other matter.

            This bill would delete the authority to make health care  
            decisions from those granted to an attorney-in-fact.

            By doing so, a person who wants to grant such authority  
            to another must make it under a power of attorney for  
            health care.  This would be in keeping with the goal of  
            the HCDL to encourage people to use the advance health  
            care directive or power of attorney for health care as  
            the appropriate vehicles for health care decisions.

          4.    Agent's liability for funeral expenses clarified and  
          limited

             Existing law provides a detailed scheme defining rights,  
            duties, and liabilities of surviving family members and  
            other persons, including agents and public guardians,  
            relating to disposition of remains.  The statutory scheme  
            makes it a misdemeanor to fail to perform the statutory  
            duty and provides liability for treble damages. [Health  
            and Safety Code Sections 7100 et seq.]  

            In 1998 SB 1360 (Alpert, Chapter 253, Statutes of 1998)  
            amended Health and Safety Code Section 7100 to give  
            health care agents top priority to control disposition of  
            the decedent's remains.  This amendment was made because  
            of a problem created by a person charged with the  
            decedent's murder having priority in making decisions for  
            the disposition of the remains.

            Apparently, because the liability of an agent under the  
            HCDL is not clear as it relates to funeral expenses  
            (which would be governed by the Health and Safety Code  
            provisions, including the misdemeanor and treble damages  
            liability), many potential agents are reluctant to be  
            appointed, and persons who want to designate family  
            members or friends as agents hesitate because of this  
            potential liability.
                                                                       




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            AB 1278 resolves this situation by specifying that an  
            agent under a power of attorney for health care is liable  
            for the costs of disposition (of the decedent's remains)  
            only where the agent makes a specific arrangement to pay  
            for the costs of disposition, or where, in the absence of  
            such an arrangement, the agent does make decisions  
            concerning disposition, but only for reasonable costs  
            incurred and only to the extent that the decedent's  
            estate or other appropriate fund is insufficient.

          5.    Treating physician may not be health care agent

             The HCDL carried forward the limitations enacted in the  
            1980s on who can be designated as a health care agent and  
            the exceptions to the limitations.  Thus, under Section  
            4659, the patient's supervising health care provider or  
            an employee of the health care provider cannot act as an  
            agent or surrogate health care decisionmaker.  An  
            exception exists where an employee related to the patient  
            by blood, marriage, or adoption, or who is employed by  
            the same health care institution, can be appointed to act  
            as the relative's or coworker's health care agent.

            The CLRC states that the statute was never intended to  
            permit the treating physician (who would be included in  
            the term "supervising health care provider") to serve as  
            the patient's health care agent - a construction that is  
            possible under the current language of Section 4659.

            This bill would make clear that a supervising health care  
            provider cannot make decisions as a health care agent for  
            his or her patient under any circumstances.  Thus, under  
            this rule, if a doctor wants to act as the agent for his  
            or her spouse, the doctor would need to decline to act as  
            the supervising health care provider.

          6.    New petition to require third persons to honor agent's  
            authority under power of attorney for health care or  
            surrogate's health care decision for patient
           
            The HCDL provides an expedited procedure for obtaining  
            judicial review in appropriate situations.  Specified  
            situations that may be addressed by such petitions are 1)  
            whether the patient has capacity to make health care  
                                                                       




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            decisions; 2) whether an advance health care directive is  
            in effect; 3) whether the acts or proposed acts of an  
            agent or surrogate are consistent with the patient's  
            desires as expressed in an advance health care directive  
            or as made known to the court; or 4) whether, where the  
            patient's desires are unknown or unclear, whether the  
            acts or proposed acts of the agent or surrogate are in  
            the patient's best interest. 

            This bill would allow a petition to be filed under the  
            same expedited procedure, to compel a third person to  
            honor individual health care instructions or the  
            authority of an agent or surrogate.




          7.    Technical amendment

             On page 2, line 20, strike out "cost" and insert "costs"

            The author will offer this amendment in committee.

          Support: National Senior Citizens Law Center; California  
                 Medical Association; American Association of Retired  
                 Persons (AARP) - California; Protection and  
                 Advocacy, Inc.

          Opposition: None Known

                                         
                                    HISTORY
           
          Source: California Law Revision Commission

          Related Pending Legislation: None Known

          Prior Legislation: AB 891 (Alquist, Chapter 658, Statutes  
                       of 1999)  -- enacted the Health Care Decisions  
                       Law

          Prior Vote:  Asm. Jud. (Ayes 8, Noes 0)
                         Asm. Flr. (Ayes 73, Noes 0)

          
                                                                       




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