BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 2675
                                                                  Page  1

          AB 2675 (Chesbro)
            As Amended  August 18, 2010
          Majority vote 

          |ASSEMBLY:  |74-0 |(May 6, 2010)   |SENATE: |36-0 |(August 23,    |
          |           |     |                |        |     |2010)          |
           Original Committee Reference:    HEALTH  

           SUMMARY  :  Requires an applicant, or an applicant's designee, for  
          initial licensure of an intermediate care  
          facility/developmentally disabled - habilitative (ICF/DD-H) or  
          an intermediate care facility/developmentally disabled - nursing  
          (ICF/DD-N), to attend a sixteen-hour orientation program related  
          to business management.  

           The Senate amendments  :

          1)Make inoperative, as of October 1, 2011, the requirement that  
            an applicant, or designee of the applicant, attend an  
            eight-hour orientation program as a part of initial licensure  
            of an ICF/DD-H or an ICF/DD-N.

          2)Repeal the requirement in 1) above as of January 1, 2012,  
            unless a later enacted statute, becomes operative on or before  
            January 1, 2012, and deletes or extends the dates on which it  
            becomes inoperative and is repealed. 

          3)Establish, commencing October 1, 2011, the requirement that an  
            applicant, or designee of the applicant, attend a 16-hour  
            orientation program as a part of initial licensure of an  
            ICF/DD-H or an ICF/DD-N.

           EXISTING LAW  :  

          1)Establishes the State Department of Public Health (DPH) and  
            deems DPH responsible for the licensing and regulation of  
            health facilities, including ICFs/DD-H and ICFs/DD-N.

          2)Establishes the Department of Developmental Services (DDS) and  
            sets forth its powers and duties relating to the  
            administration of the state developmental centers and entering  


                                                                  AB 2675
                                                                  Page  2

            into contracts with regional centers for the provision of  
            ICF/DD-H and ICF/DD-N services to consumers in the community.

          3)Establishes DHCS and deems DHCS responsible for the  
            certification review process to ensure that ICFs/DD-H and  
            ICFs/DD-N meet the federal standards of participation in the  
            Medi-Cal Program.

          4)Establishes the Lanterman Developmental Disabilities Services  
            Act which provides the right of Californians with  
            developmental disabilities to receive treatment and  
            habilitation services and supports in the least restrictive  

          5)Establishes the Supreme Court decision in Olmstead v. L.C.  
            (1999) 527 U.S. 581 (  Olmstead  ), which interprets Title II of  
            the Americans with Disabilities Act to require federal, state,  
            and local governments to develop more opportunities for  
            individuals with disabilities through accessible systems of  
            cost-effective community-based services.

          6)Requires an applicant, or an applicant's designee for initial  
            licensure of an ICF/DD-H and ICF/DD-N, to attend an eight-hour  
            orientation program containing the following components  
            approved by DDS:

             a)    The scope of responsibility for operation including  
               regulatory requirements and statutes governing the facility  

             b)   Local planning;

             c)   Regional center and other community support services;

             d)   All federal and state agencies responsible for licensing  
               and certification, and data collection; and,

             e)   Government and private agencies responsible for ensuring  
               the rights of the developmentally disabled.

          7)Requires that the ICF/DD-H and ICF/DD-N orientation program be  
            conducted by relevant community services and provider  

          8)Requires that organizations conducting the ICF/DD-H and  


                                                                  AB 2675
                                                                  Page  3

            ICF/DD-N orientation program be responsible for keeping a  
            record of all attendees and to provide DDS with the  
            information within 15 working days or upon request.

          9)Requires that instructors of the ICF/DD-H and ICF/DD-N  
            orientation program have knowledge or experience in the  
            subject area to be taught and to meet any of the following  

             a)   Possession of a four-year degree relevant to the course  
               or courses to be taught;

             b)   Be a health professional with a valid and current  
               license to practice in California; and,

             c)   Have at least two years experience in California as an  
               administrator of a long-term health care facility that  
               provides services to persons with developmental  
               disabilities within the last eight years.

          10)Requires that, if the licensee can demonstrate to the  
            satisfaction of DDS that the licensee, or a representative of  
            the licensee, has taken the orientation program any year prior  
            to opening a new facility, the licensee will not be required  
            to repeat the program to open the facility.

           AS PASSED BY THE ASSEMBLY  , this bill was substantially similar  
          to the version passed by the Senate.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           COMMENTS  :  According to the author, in California, the majority  
          of persons with developmental disabilities now reside in the  
          community and small ICFs/DD are continuing to open throughout  
          the state.  The author maintains that, typically, those seeking  
          to operate ICFs/DD have programmatic expertise but lack the  
          necessary business skills to successfully run their operations.   
          The author maintains that feedback from new ICF/DD operators and  
          oversight agencies find that new licensees are struggling to  
          manage the financial aspects of their businesses.  The author  
          argues that adding eight hours to the existing course  
          requirements for initial licensure for ICFs/DD-H and ICFs/DD-N  
          will address this issue by allowing instructors with expertise  
          in accounting and business practices, specific to ICFs/DD, to  


                                                                  AB 2675
                                                                  Page  4

          educate would-be providers about key business operations.

          Analysis Prepared by  :    Tanya Robinson-Taylor / HEALTH / (916)  

                                                                FN: 0006214