BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1710
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          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 








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            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:








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               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:









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          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 


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