BILL ANALYSIS AB 935 Page 1 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 AB 935 Page 2 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 AB 935 Page 3 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 : AB 935 Page 4 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