BILL ANALYSIS SENATE COMMITTEE ON VETERANS AFFAIRS JEFF DENHAM, CHAIRMAN Bill No: SB 950 Author: Wiggins Version: As Introduced Hearing Date: April 13, 2010 Fiscal: Yes Consultant: Donald E. Wilson SUBJECT OF BILL Veterans' Homes: accounting for charges: written notification. PROPOSED LAW 1.Requires that terms and conditions for entry into veterans' homes are written in plain language. 2.Requires that potential residents must be notified of any terms or conditions that may change fees and costs. 3.Requires a signature from the veteran that he or she has read AND understands the notifications given. EXISTING LAW AND BACKGROUND Existing law establishes the veterans' homes and requires certain procedures that properly notify potential residents in writing by the administrator of any costs that may be incurred "in excess of the member contribution fee". (MVC 1035.7) The notification is required to include the following - a) "Explanation of circumstances under which the member may incur costs"; b) "Specifically indicate that these excess costs of care are costs in addition to, or above and beyond, the member contribution fee"; c) Provide examples of "excess costs of care that are frequently incurred by veterans"; d) Notify the would-be resident that a quarterly accounting of the costs will be provided although the statement is for information purposes only; e) "Inform the veteran that, if he or she is a resident of the home at the time of death, the home may disburse his or her moneys or personal property for payment of unreimbursed excess costs of care"; f) Provide an advisory to the resident to seek legal expertise on the protection of his or her assets. In the Fall of 2009, Medal of Honor winner Alejandro Ruiz passed from this life at the Yountville Veterans' Home. Shortly thereafter a news story developed when Mr. Ruiz's family was billed $262,500 for his four years at Yountville that was above and beyond the $3,000 per month he was paying during his time as a resident. According to news reports the family of Mr. Ruiz was unaware of the sum required beyond the $3,000 per month. Mr. Ruiz left the family $60,000. COMMENT 1. As noted above, many requirements to inform Veterans Home residents of their rights already exist in current law. 2. However, there is no requirement in the code at the present time to have the veteran or his or her family sign anything acknowledging any understanding of the rules or how they work. 3. Additionally, the proposed "plain, straightforward language" requirement seeks to better ensure the veteran or the family knows what is being signed. Page 2 4. These new requirements are Senator Wiggins's attempt to prevent another scenario like that of Alejandro Ruiz. 5. This is a new bill. There are no previous votes. SUPPORT None received OPPOSE None received Page 3