BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2555
                                                                  Page  1

          Date of Hearing:   April 21, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 2555 (Feuer) - As Amended:  April 8, 2010 

          Policy Committee:                              Aging &  
          LTCVote:4-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill appropriates $1.6 million from the State Health  
          Facilities Citation Penalties Account to support local long-term  
          care (LTC) ombudsman programs administered by the California  
          Department of Aging (CDA). 

           FISCAL EFFECT  

          A one-time $1.6 million special fund appropriation from the  
          State Health Facilities Citation Penalties Account to CDA to  
          support local ombudsman programs. This bill makes funds  
          available for expenditure through 2010-11. Any unspent funds at  
          the end of the 2010-11 revert to the original state account. 

          The citation account is funded by penalties paid by nursing  
          homes for infractions of state law. The state account is capped  
          at $10 million. There is another account supported by penalties  
          for infractions of federal law. These funds are required to be  
          used for the protection of health or property of residents of  
          long-term health care facilities

          The author and nine other legislators requested an audit of the  
          California Department of Public Health (DPH) state and federal  
          citation special fund accounts due to concerns about  
          inconsistencies in accounting and a perceived lack of  
          enforcement with regard to collecting penalties. The Bureau of  
          State Audits has agreed to a review of the administration of  
          these accounts, but has not provided a date by which findings  
          will be released. 

           COMMENTS  

           1)Rationale  . This bill is co-sponsored by the California  






                                                                  AB 2555
                                                                  Page  2

            Association for Nursing Home Reform and the Health Insurance  
            Counseling and Advocacy Program (HICAP) of Northern  
            California.  Several other stakeholder groups supporting aging  
            Californians also support the funding shift proposed in this  
            bill. 

           2)The LTC Ombudsman Program  supports some of California's most  
            at-risk and vulnerable elderly who live in residential care  
            facilities 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. 
           
          3)Related Legislation  . AB 392 (Feuer), Chapter 102, Statutes of  
            2009 transferred $1.6 million from the Federal Health  
            Facilities Citation Penalties Account to backfill for a prior  
            line-item veto of $3.8 million GF in 2008. 

          SB 1397 (Soto), Chapter 545, Statutes of 2007, requires DPH to  
            post data related to the federal citation account.  

          Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081