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