BILL ANALYSIS
AB 2555
Page 1
ASSEMBLY THIRD READING
AB 2555 (Feuer, Jones and Nielsen)
As Amended May 28, 2010
2/3 vote. Urgency
AGING 4-0 APPROPRIATIONS 17-0
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|Ayes:|Yamada, Norby, Bonnie |Ayes:|Fuentes, Conway, Ammiano, |
| |Lowenthal, Torres | | |
| | | |Bradford, Charles |
| | | |Calderon, Coto, |
| | | |Davis, Harkey, Miller, |
| | | |Monning, |
| | | |Nielsen, Norby, Ruskin, |
| | | |Skinner, |
| | | |Solorio, Torlakson, |
| | | |Torrico |
| | | | |
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SUMMARY : Appropriates $1.6 million to the California Department
of Aging (CDA) for the Long-Term Care Ombudsman Program (LTCOP).
Specifically, this bill :
1)Appropriates $1.6 million from the State Health Facilities
Citation Penalties Account to CDA to fund local ombudsman
programs.
2)Specifies that the funds may be used through the end of the
2010-11 fiscal year, at which time the remaining unencumbered
funds will revert to the State Health Facilities Citation
Penalties Account.
3)Includes an urgency clause in order to protect the safety of
older Californians by funding vital inspection services for
long-term health care facilities.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, 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.
AB 2555
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COMMENTS : The LTCOP is administered by CDA and includes 35
local programs that extensively utilize volunteers. Under
federal law, the primary responsibility of the LTCOP 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. In
addition, California places an additional responsibility upon
LTCOP staff and volunteers - the investigation of elder and
dependent adult abuse complaints in long-term care facilities.
In 2008, the Governor vetoed all state funding, approximately
$3.8 million or nearly half of the program's overall funding,
for the LTCOP. Advocates maintain that the loss of funds
created a devastating impact on local programs and greatly
compromised the program's ability to investigate complaints,
monitor facilities, and advocate on behalf of residents, putting
vulnerable Californians at risk of abuse and neglect.
The Department of Public Health (DPH) is responsible for the
licensing and oversight of skilled nursing facilities. Fines
imposed on facilities as a result of DPH monitoring can range
from $100 to $100,000 for violations of state requirements and
$50 to $10,000 per day and from $1,000 to $10,000 per instance,
for other violations of federal requirements. State law
provides the authority to deposit moneys collected as a result
of state and federal civil penalties imposed against health
facilities by DPH for non-compliance with state and federal laws
into two accounts: the State Health Facilities Citation
Penalties Account, and the Federal Health Facilities Citation
Penalties Account. Monies from these accounts are to be used
for the protection of the health or property of residents of
long-term care facilities, including relocation expenses
incurred by the state in the event of a facility closure,
maintenance of a facility, including temporary management or
receivership,or resident reimbursement for funds lost. There is
a $10 million cap on the allowable fund balance for the state
account, and no cap on the fund balance for the federal account.
State law requires DPH to produce reports on a quarterly basis
regarding the funds in both accounts. The report ending June
30, 2009 stated a fund balance of $4.8 million in the state
account and projected a fund balance of $4.510 million at the
end of June 30, 2010. The federal account balance on June 30,
AB 2555
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2009, was $1.931 million and the projected fund balance for June
30, 2010 was $172,000, following the transfer of $1.6 million to
CDA pursuant to AB 392 (Feuer), Chapter 102, Statutes of 2009.
In January, several legislators requested an audit of the two
accounts by the State Auditor through the Joint Legislative
Audit Committee, citing inconsistent reports from DPH on the
fund balances and large retroactive adjustments that have
greatly reduced those fund balances.
Analysis Prepared by : Allison Ruff / AGING & L.T.C. / (916)
319-3990
FN: 0004747