BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 935
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          Date of Hearing:   April 28, 2009

                            ASSEMBLY COMMITTEE ON HEALTH
                                  Dave Jones, Chair
                AB 935 (Feuer and Jones) - As Amended:  April 16, 2009
           
          SUBJECT  :   Long-term health care facilities.

           SUMMARY  :  Requires at least half of the funds in existing  
          federal and state citation penalty accounts to be used to  
          restore funding for local long-term care ombudsman programs.   
          Specifically,  this bill  :

          1)Requires that at least half of the funds in the State Health  
            Facilities Citation Penalties Account (State Account) and the  
            Federal Health Facilities Citation Penalties Account (Federal  
            Account) be used to fund local ombudsman programs.

          2)Requires that remaining funds in the accounts not used in  
            accordance with 1) above be used in accordance with state and  
            federal law for the protection of health or property of  
            residents of long-term health care facilities.

           EXISTING LAW  :

          1)Authorizes the California State Long-Term Care Ombudsman  
            Program (LTC Ombudsman) by the federal Older Americans Act and  
            its State companion, the Older Californians Act, to  
            investigate and endeavor to resolve complaints made by, or on  
            behalf of, individual residents in long-term care facilities.

          2)Establishes the State Account into which monies derived from  
            civil penalties levied against long-term care facilities for  
            violations of state law are deposited.

          3)Establishes the Federal Account, into which monies derived  
            from civil penalties levied against long-term care facilities  
            for violations of federal law are deposited.

           FISCAL EFFECT  :  This bill has not yet been analyzed by a fiscal  
          committee.

           COMMENTS  :    

           1)PURPOSE OF THIS BILL  .  According to the author, in September  








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            of 2008, the Governor, through a line item veto, eliminated  
            all state funding for the LTC Ombudsman, approximately $3.8  
            million, which represented about half of the local program  
            funding.  According to the author, as of January 5, 2009, more  
            than 80 staff ombudsman positions have been eliminated due to  
            the state funding cuts.  The author maintains that the funding  
            cuts are causing a devastating impact on long-term care  
            ombudsman programs throughout California and are greatly  
            compromising their capacity to investigate complaints, monitor  
            facilities, and advocate on behalf of long-term care facility  
            residents, putting the most vulnerable segment of our  
            population at greater risk of abuse and neglect.

           2)BACKGROUND  .  According to the California Department of Aging's  
            (CDA's) Web site, since its inception over thirty years ago,  
            the primary responsibility of the LTC Ombudsman Program is to  
            investigate and endeavor to resolve complaints made by, or on  
            behalf of, individual residents in long-term care facilities.   
            These facilities include nursing homes, residential care  
            facilities for the elderly, and assisted-living facilities.   
            The LTC Ombudsman also investigates elder abuse complaints in  
            long-term care facilities and in residential care facilities  
            for the elderly.   

           The LTC Ombudsman Program is administered by CDA and is a  
            community-supported program that extensively utilizes  
            volunteers.  The paid staff of 35 local LTC Ombudsman Program  
            Coordinators are responsible for recruiting, training, and  
            supervising nearly 1,200 volunteer state-certified ombudsman  
            representatives.  The LTC Ombudsman Program's goal to advocate  
            for the rights of all residents of long-term care facilities  
            takes two forms: a) To receive and resolve individual  
            complaints and issues by, or on behalf of, these residents;  
            and, b) To pursue resident advocacy in the long-term care  
            system, its laws, policies, regulations, and administration  
            through public education and consensus building.  Residents or  
            their family members can file a complaint directly with the  
            LTC Ombudsman or by calling the state administered CRISISline.  
             All long-term care facilities are required to post, in a  
            conspicuous location, the phone number for the local ombudsman  
            office and the toll-free Statewide CRISISline number.  The  
            CRISISline is available 24 hours a day, 7 days a week to take  
            calls and refer complaints from residents.

           3)RELATED LEGISLATION .  This bill is part of a two-bill package  








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            intended to provide funding for the LTC Ombudsman Program.  AB  
            392 (Feuer), now before the Assembly Appropriations Committee,  
            appropriates $1.6 million to support the ombudsman program for  
            the 2009-10 Fiscal Year.  This bill authorizes the future use  
            of both penalty accounts to support the ombudsman program. 

           4)PENALTY ACCOUNTS  .  According to the Department of Public  
            Health (DPH), current state law provides DPH authority to  
            deposit moneys collected as a result of state and federal  
            civil penalties imposed against health facilities for  
            non-compliance with state and federal laws into two accounts:  
            the State Account and the Federal Account.  Monies from these  
            accounts are to be used, upon appropriation by the  
            Legislature, in accordance with state and federal law for the  
            protection of health or property of residents of long-term  
            health care facilities, including, but not limited to the  
            following:  a) Relocation expenses incurred by the state, in  
            the event of a facility closure; b) Maintenance of facility  
            operation pending correction of deficiencies or closure, such  
            as temporary management or receivership; c) Reimbursing  
            residents for personal funds lost; and, d) Costs associated  
            with informational meetings required under existing law.

          There is a $10 million cap on the allowable fund balance for the  
            State Account.  There is no cap on the fund balance for the  
            Federal Account.

           5)SUPPORT  .  According to the Alliance on Aging, supporters of  
            this bill, last year's $3.8 million state budget cut to  
            California's local ombudsman programs severely compromised the  
            LTC Ombudsman Program's ability to provide services and has  
            put long-term care residents at risk of abuse and neglect.   
            Numerous individuals, including former volunteer ombudsmen and  
            family members of residents of long-term care facilities,  
            state that often residents and their families are hesitant to  
            make complaints to the appropriate regulatory agency fearing  
            retaliation by the facility staff.  Supporters further state  
            that residents depend on ombudsmen to provide a voice for them  
            when their rights have been violated.  The Alzheimer's  
            Association maintains that an ombudsman's presence, advocacy,  
            and intervention are crucial to the safety and well-being of  
            facility residents.  

          REGISTERED SUPPORT / OPPOSITION  :   









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           Support 
           
          Alliance on Aging
          Alzheimer's Association
          California Advocates for Nursing Home Reform
          California Alliance for Retired Americans
          California Long Term Care Ombudsman Association
          City of Capitola
          Human Services Department, Sonoma County
          Imperial County Public Administrator
          Institute on Aging
          Ombudsman Program, Monterey
          Ombudsman Program, Napa
          Ombudsman Program, San Luis Obispo County
          Ombudsman Program, San Mateo County
          Patient's Rights Advocate, Santa Cruz
          San Francisco Gray Panthers
          Senior Advocacy Services
          Volunteer Center of Riverside County
          81 individuals


           Opposition 
           
          None on file.
           

          Analysis Prepared by  :    John Miller / HEALTH / (916) 319-2097