BILL ANALYSIS Ó AB 1710 Page 1 ASSEMBLY THIRD READING AB 1710 (Yamada) As Amended April 26, 2012 Majority vote HEALTH 13-6 APPROPRIATIONS 12-4 ----------------------------------------------------------------- |Ayes:|Monning, Ammiano, Atkins, |Ayes:|Fuentes, Blumenfield, | | |Bonilla, Eng, Gordon, | |Bradford, Charles | | |Hayashi, | |Calderon, Campos, Davis, | | |Roger Hernández, Bonnie | |Gatto, Hall, Hill, Lara, | | |Lowenthal, Mitchell, Pan, | |Mitchell, Solorio | | |V. Manuel Pérez, Williams | | | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Logue, Garrick, Mansoor, |Nays:|Donnelly, Nielsen, Norby, | | |Nestande, Silva, Smyth | |Wagner | | | | | | ----------------------------------------------------------------- SUMMARY : Authorizes the Department of Public Health (DPH) to adjust the licensing fees for the Nursing Home Administrator Program (NHAP) and removes the licensing fee adjustment limitation in existing law relating to the California Consumer Price Index. Requires DPH to prepare certain reports relating to nursing home administrator (NHA) licensing fees and to submit these reports to the appropriate policy and fiscal committees of the Legislature and to post the reports on its Internet Web site. Specifically, this bill : 1)Declares that it is the intent of the Legislature that activities of the NHAP related to licensure of NHAs is supported by fee revenue that is sufficient to fund these activities. 2)Authorizes DPH, if the revenue projected to be collected from NHA licensing fees is less than the projected costs for the budget year, to propose NHA licensing fees to be adjusted to an amount sufficient to cover the reasonable regulatory costs to DPH. Requires DPH, commencing February 1, 2013, and every February 1 thereafter, to publish a list of proposed adjustments to NHA licensing fees. 3)Requires DPH, within 30 days of the enactment of the annual AB 1710 Page 2 Budget Act each year, to publish a list of actual numerical fee charges as adjusted. Requires the final NHA licensing fee list, with an explanation of any adjustment, to be published by all of the following means: a) Issuing a letter to all licensed NHAs, all skilled nursing facilities (SNFs) and intermediate care facilities, and all continuing education providers; b) Posting the list of DPH's Internet Web site; and, c) Including the final fee list as part of the licensing application package. 4)Prohibits the adjustment of NHA licensing fees and the publication of the NHA licensing fee list from being subject to regulation requirements in existing law. 5)Requires DPH, for purposes of ensuring efficient and effective utilization of fees collected and proper allocation of DPH resources for the administration of activities required by this bill, to conduct a staffing and systems analysis. 6)Requires DPH, by March 31, 2013, to make a report detailing this analysis available to the public by posting it on DPH's Internet Web site, and by submitting it to the appropriate policy and fiscal committees of the Legislature. Requires the report to be submitted to comply with existing law. Makes the reporting requirement inoperative January 1, 2017. 7)Requires DPH, by January 15 of each year, to prepare the following reports and make those reports available to the public by submitting it to the appropriate policy and fiscal committees of the Legislature, and by posting it on DPH's Internet Web site: a) Estimates of costs to implement NHAP licensing fee activities and estimated fee revenues; b) Recommended adjustments to fees based on projected workload and costs; c) An analysis containing the following information for the current fiscal year and each of the previous four fiscal years: AB 1710 Page 3 i) The number of persons applying for a NHA license, the number of NHA licenses approved or denied, and the number of NHA licenses renewed; ii) The number of applicants taking the NHA exam and the number of applicants who pass or fail the exam; iii) The number of persons applying for, accepted into, and completing the Administrator in Training (AIT) Program; iv) The number, source, and disposition of complaints made against persons in the AIT Program and licensed NHAs, including the length of time between receipt of the complaint and completion of the investigation; v) The number and type of final administrative, remedial, or disciplinary actions taken against licensed NHAs; vi) A listing of the names and nature of violations for individual licensed NHAs, including final administrative, remedial, or disciplinary actions taken; and, vii) The number of appeals, informal conferences, or hearings filed by NHAs or held, the length of time between the request being filed and the final determination of the appeal, and the number of administrative, remedial, or disciplinary actions taken. 8)Requires, within 10 days after the beginning of every month, all NHAP licensing fees collected by the program for the month preceding to be paid in to the DPH Licensing and Certification Program Fund. 9)Requires administrative fines collected by the NHAP to be deposited in the DPH Licensing and Certification Program Fund. FISCAL EFFECT : According to the Assembly Appropriations Committee: AB 1710 Page 4 1)Potential increased fee revenue of up to $400,000 annually could be assessed if DPH supported all NHAP activities by NHAP-related fee revenue as envisioned in this bill. For example, if all fees related to the NHAP program were increased proportionately, fees for nursing home administrators could approximately double from the current biennial fee of $190 to $380. 2)Costs associated with new reporting requirements are expected to be minor and absorbable. COMMENTS : According to the author, this bill modernizes the way NHAP fees are calculated in order to realistically reflect the workload and program needs. The author maintains that the NHAP funding was inadvertently omitted from the fee reform initiative for "right-sizing" or adjusting licensing fees based on the workload and costs for the Department of Health Services Licensing and Certification Program (now DPH Licensing and Certification Program) as a part of the fiscal year 2006-07 Budget Act. The author maintains this lack of integrated funding, public accountability and resources, creates problems for the NHAP to be able to fully implement its statutory responsibilities to protect the health and safety of nursing home residents by ensuring that NHAs meet professional licensing standards. According to the author, as a result of lack of resources, the program has not been able to do the following: 1) Revise the state exam for NHAs; 2) Investigate complaints in a timely manner; 3) Take disciplinary actions for violations of professional standards; or, 4) Conduct routine analysis to determine any correlation between SNF violations and NHA responsibilities. Analysis Prepared by : Tanya Robinson-Taylor / HEALTH / (916) 319-2097 FN: 0003392