BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           773 (Lieu)
          
          Hearing Date:  8/17/2009        Amended: 6/24/2009
          Consultant: Katie Johnson       Policy Vote: Health 8-3
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          ____
          BILL SUMMARY:  AB 773 would require a long-term care facility to  
          send a written notification to current residents and patients  
          and their contacts of the issuance of a citation for a Class  
          "AA" or Class "A" violation.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
                                                                  
          CDPH regulations                $70          $120 $0   Special*

          *State Department of Public Health Licensing and Certification  
          Program Fund
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          ____

          STAFF COMMENTS: 

          Existing law provides for the enforcement of the Long-Term Care,  
          Health, Safety and Security Act of 1973 by the California  
          Department of Public Health (CDPH).

          Existing law defines Class "A" violations as violations that  
          CDPH determines present either imminent danger from which death  
          or serious harm to patients or residents would result or  
          substantial probability that death or serious physical harm to  
          patients or residents would result. A facility that receives a  
          Class "A" citation is subject to a civil penalty of between  
          $2,000 and $20,000. Existing law defines Class "AA" violations  
          as violations that meet the Class "A" violation criteria and  
          that CDPH determines to have been a direct proximate cause of  
          death of a patient or resident. A facility that receives a Class  
          "AA" violation is subject to a civil penalty of between $25,000  
          and $100,000.

          This bill would require a long-term care facility to send  










          written notification, as specified, to all current residents,  
          patients, and their primary contacts of the receipt of a Class  
          "AA" or Class "A" violation within 30 days of the issuance of  
          the citation. This bill would permit CDPH to assess an  
          administrative penalty of $1,000 for each day following the end  
          of the 30-day period for which the facility is noncompliant.

          This bill would require that CDPH waive a penalty imposed under  
          these provisions if the facility can demonstrate, by provision  
          of a copy of the written notice and the list of individuals to  
          which the notice was sent, to CDPH that it had mailed the  
          written notification.

          CDPH would need $70,000 in FY 2009-2010 and $120,000 in FY  
          2010-2011 to promulgate regulations related to these provisions.  
          Ongoing costs to the department to implement this bill would be  
          minor and absorbable.