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