BILL ANALYSIS AB 935 Page 1 Date of Hearing: May 13, 2009 ASSEMBLY COMMITTEE ON APPROPRIATIONS Kevin De Leon, Chair AB 935 (Feuer) - As Amended: April 16, 2009 Policy Committee: Health Vote:14-1 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill requires at least half of the funds in the California Department of Public Health (DPH) State Health Facilities Citation Penalties Account (state account) and the Federal Health Facilities Citation Penalties Account (federal account) be used to support local long-term care (LTC) ombudsman programs administered by the California Department of Aging (CDA). In addition, this bill requires any remaining funds to be used to protect the health and safety of nursing home residents. FISCAL EFFECT 1)An annual shift of special funds to support the LTC ombudsman program. If based on 2008-09 account balances, this bill would shift $5.4 million (special fund) to the LTC ombudsman program. The revenues into these two special fund accounts are provided by citations levied by DPH and the federal Centers for Medicare and Medicaid against nursing homes for violations of health and safety standards. 2)This bill reprioritizes current DPH and CDA health and safety efforts by requiring a specific focus on LTC ombudsman programming and placing other activities as lesser priorities. The special funds addressed in this bill are used, upon appropriation, to support activities protecting the health and safety of residents in LTC facilities. 3)This bill will likely deplete both the state and federal special funds addressed in the bill and current programming supported by these funds. While the current balance, combined, of these special funds is more than $10 million, the combined revenues into the fund in the past year is less than $2 AB 935 Page 2 million, meaning the fund may not be able to support substantial activities, per this bill or current law priorities. COMMENTS 1)Rationale . This bill is a companion measure to AB 392 (Feuer), pending on the floor of the Assembly, which appropriates $1.6 million, on a one-time basis, from the federal citation account to support the LTC ombudsman programs administered by CDA. Together, these two bills are intended to reverse budget reductions associated with a $3.8 million (GF) funding reduction in 2008 and provide more stable funding. As a result of recent budget cuts, LTC ombudsman services were reduced and staff was laid-off. 2)The LTC Ombudsman Program supports some of California's most at-risk and vulnerable elderly who live in residential care facilities for the elderly and nursing homes. The local programs are supported by a combination of volunteer and paid staff. The LTC ombudsman programs investigate complaints made by and on behalf of nursing home residents. Local program staff makes unannounced visits to residential facilities to investigate complaints. Analysis Prepared by : Mary Ader / APPR. / (916) 319-2081