BILL ANALYSIS                                                                                                                                                                                                    



                                                                 
           AB 1278
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1278 (Wayne)
          As Amended June 9, 2001
          Majority vote
           
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          |ASSEMBLY:  |73-0 |(April 19,      |SENATE: |22-11|(July 19,      |
          |           |     |2001)           |        |     |2001)          |
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           Original Committee Reference:    JUD.  

           SUMMARY  :   Makes various revisions to the 1999 Health Care  
          Decisions Law.  Specifically,  this bill  :  

          1)Generalizes the definition of capacity with respect to a  
            principal's ability to execute or revoke an advance health  
            care directive.

          2)Provides that an informal designation of a surrogate health  
            care decision-maker would not revoke a prior designation of an  
            agent in a power of attorney for health care unless the  
            patient expresses the intention to remove the agent.  Provides  
            that the duration of an informal surrogate designation would  
            be limited to 60 days, but expiration of the designation would  
            not affect health care decision-making under other law or  
            standards of practice.

          3)Provides that the health care agent would not automatically be  
            liable for the costs of disposition of the principal's  
            remains.

          4)Expands the grounds for petitioning the court under the Health  
            Care Decisions Law to include a petition to compel a third  
            person to honor the authority of a health care agent or  
            surrogate.

          5)Makes clear that a supervising health care provider can never  
            act as an agent for his or her patient, even if related to the  
            patient by blood, marriage, adoption, or registered domestic  
            partnership, or where they are coworkers.

          6)Excludes health care decisions from the authority of an  
            attorney-in-fact (agent) under a general power of attorney.








                                                                 
           AB 1278
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           The Senate amendments  :

          1)Clarify that a health care agent's duty of disposition of the  
            remains is separate from the agent's liability for the costs  
            of disposition. 

          2)Provide that the agent may only be held liable for the costs  
            of disposition where the agent has specifically agreed to pay  
            such costs, or has made decisions concerning disposition that  
            incur costs.  Where there is no agreement to pay costs, the  
            agent is only liable for costs incurred as a result of the  
            agent's decisions to the extent that the estate or other  
            appropriate fund is insufficient.  

           EXISTING LAW  permits a person to authorize another to make  
          certain decisions on their behalf pursuant to a general power of  
          attorney or pursuant to an advance health care directive. 

           AS PASSED BY THE ASSEMBLY  , this bill was substantially the same  
          in most respects.  Specifically,  this bill  provided that:

          1)A health care agent would have a duty of disposition of the  
            principal's remains and liability for the costs of such  
            disposition only if the agent specifically agreed to assume  
            such duty and liability. 

          2)If the agent assumed the duty of disposition, the agent would  
            be liable for the costs incurred as a result of the agent's  
            decisions concerning disposition to the extent that the  
            decedent's estate or other appropriate fund was insufficient.   


           FISCAL EFFECT  :  None

           COMMENTS  :  This bill, which is sponsored by the California Law  
          Revision Commission (CLRC), makes a number of minor substantive  
          and technical revisions as a follow-up to AB 891 (Alquist),  
          Chapter 658, Statutes of 1999, the Health Care Decisions Law.   
          According to CLRC, as health care institutions and professional  
          groups have begun to study and implement the new law, CLRC has  
          learned of several problems that need further attention.  This  
          bill proposes revisions to the 1999 legislation in the following  
          areas.








                                                                 
           AB 1278
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          AB 891 included a definition of capacity that was specifically  
          crafted to apply in the health care decision-making context.   
          CLRC explains that a technical problem has been noted in the  
          application of this definition where there is no "proposed  
          health care" at the time the individual's capacity is relevant.   
          In response to this concern, AB 1278, in effect, would return  
          the law concerning capacity to execute a power of attorney for  
          health care to the rule in effect under the Power of Attorney  
          Law.  This standard would also be applied to selecting or  
          disqualifying a surrogate.

          The Health Care Decisions Law includes provisions recognizing  
          the patient's right to designate a "surrogate" by personally  
          informing the supervising health care provider, orally or in  
          writing.  Due to concerns about the possibility of giving effect  
          to obsolete oral statements in the patient's record, the  
          effectiveness of oral surrogate designations was limited to the  
          "course of treatment or illness or during the stay in the health  
          care institution when the designation is made."  CLRC states  
          that the "course of treatment or illness" rule does not provide  
          any real limit where the patient has a chronic illness.   
          Accordingly, CLRC recommends amending this rule to address these  
          problems and provide additional statutory guidance on surrogate  
          designations.

          This bill reverses the presumption that a surrogate designation  
          revokes the appointment of a health care agent.  This bill also  
          provides that, unless the patient specifies a shorter period, an  
          informal surrogate designation is effective only during the  
          course of treatment or illness during the stay in the health  
          care institution when the surrogate designation is made, or for  
          60 days, whichever period is shorter.  In addition, this bill  
          also provides that the expiration of an informal surrogate  
          designation does not affect any role the person designated may  
          have in making health care decisions for the patient under any  
          other law or standards of practice.
           
          This bill also eliminates an agent's automatic liability for  
          funeral expenses, and it expands the grounds for petitioning the  
          court to include a petition to compel a third party to honor  
          individual health care instructions or the authority of a health  
          care agent or surrogate, consistent with the treatment of powers  
          of attorney for financial matters.  This bill clarifies that a  








                                                                 
           AB 1278
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          supervising health care provider may never serve as the  
          patient's agent, even if the provider is related to the patient  
          by blood, marriage, adoption, or registered domestic  
          partnership, as well as if they are coworkers.  And this bill  
          makes a technical amendment to clarify that agents under a  
          general power of attorney do not have the authority to make  
          health care decisions.


           Analysis Prepared by  :  Kathy Sher / JUD. / (916) 319-2334


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