BILL ANALYSIS Ó
AB 261
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Date of Hearing: April 2, 2013
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Mark Stone, Chair
AB 261 (Chesbro) - As Amended: April 1, 2013
SUBJECT : Residential care facilities for the elderly: fees and
charges
SUMMARY : Provides clarification on the termination of an
admission agreement and the charging of fees when a residential
care facility for the elderly (RCFE) resident passes away.
Specifically, this bill :
1)Prohibits a RCFE from requiring advance notice for the
termination of an admission agreement upon the death of a
resident.
2)Requires a RCFE to cease charging fees when all personal
property of a deceased resident is removed from the living
unit.
3)Prohibits a RCFE from impeding the removal of a deceased
resident's belongings by the resident's authorized
representative(s).
4)Requires a RCFE to issue a refund of any fees paid in advance
that cover time after the deceased resident's belongings have
been removed from the facility to the resident's authorized
representative(s) within 15 days of removal of the belongings.
5)Requires a RCFE licensee to provide a deceased resident's
representative written notice regarding contract termination
upon death and refunds within three days of becoming aware of
the resident's death if fees are assessed while a deceased
resident's belongings remain in the facility.
EXISTING LAW
1)Establishes the California Community Care Facilities Act
(CCFA) to provide a comprehensive statewide service system of
quality community care for people who have a mental illness, a
developmental or physical disability, and children and adults
who require care or services from a facility or organization.
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2)Defines a "Community care facility" (CCF) as a facility,
place, or building maintained and operated to provide
nonmedical residential care, day treatment, adult day care, or
foster family agency services for children, adults, or
children and adults, including, but not limited to, the
physically handicapped, mentally impaired, incompetent
persons, and abused or neglected children.
3)Establishes the California RCFE Act, which requires facilities
that provide personal care and supervision, protective
supervision or health related services for persons 60 years of
age or older who voluntarily choose to reside in that facility
to be licensed by the California Department of Social Services
(DSS).
4)Prohibits any person, firm, partnership, association,
corporation or public agency from establishing, operating,
managing, conducting or maintaining a CCF or a RCFE without a
valid license provided by DSS.
5)Provides that any person who violates the CCFA or the RCFE Act
shall be guilty of a misdemeanor and upon conviction be fined
no more than $1,000, imprisoned in county jail for up to one
year, or both.
6)Requires RCFE administrators and staff to meet specified
professional development and training requirements in order to
be certified to operate or work in a RCFE.
7)Requires an "admission agreement" to include all documents
that a resident or his or her representative must sign at the
time of, or as a condition of admission to a RCFE.
8)Requires an admission agreement to include a breakdown of
items and services provided, a comprehensive description of
the RCFE's fee schedule, its refund policy, the conditions
under which the admission agreement may be terminated, and
other requirements, as specified.
FISCAL EFFECT : Unknown
COMMENTS :
Background
It is the intent of the Legislature, in creating RCFEs as its
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own separate licensing category under the RCFE Act, to help
provide a system of residential care to allow older persons to
remain as independent as possible while not forcing them to move
between medical and nonmedical services. Commonly referred to
as assisted living facilities, retirement homes and board and
care homes, RCFEs are licensed facilities under the CCFA that
provide services to individuals who are 60 years of age and over
and persons under the age of 60 with compatible needs. RCFEs
provide a wide array of care, which can include varying levels
of personal care and protective supervision, based upon the
needs of the resident.
According to DSS, as of February 6, 2013 there are currently
7,613 licensed RCFEs in California with a capacity to serve
173,333 residents.
Under the CCFA, RCFEs are required to provide each resident with
an "admission agreement." An admission agreement generally
refers to all documents that resident or his or her authorized
representative must sign at the time of, or as a condition of,
admission to the RCFE. Admission agreements are required to
meet explicit and specific requirements as to what may and may
not be included. In regards to termination of the admission
agreement, current law provides for two methods of termination.
The first is through the resident moving out of the facility
voluntarily or involuntarily, i.e. eviction, and the other is
through the death of the resident.
Past Legislation
Similar legislation, AB 1142 (Chesbro), was pursued during the
2011-12 Legislative Session to address a conflict between
existing statute and regulations regarding how an admission
agreement may be canceled when a resident passes away.
As noted in this committee's analysis of AB 1142:
The author points out that administrative regulations
pertaining to RCFEs allow for admission agreements to
include a 30-day cancellation notice. The RCFE regulations
also provide that the agreement is "automatically
terminated by the death of the resident, whose relatives
shall not be liable for any payment beyond that due at the
date of death, unless agreed to in writing or ordered by
court." 22 CCR Section 87507(h). Although, the author
notes, it appears to be an uncommon practice, some RCFEs
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apparently apply these regulations together to include
provisions in admission agreements holding relatives
responsible for payment of fees for 30 days, even after the
death of the resident. According to the author, "the
policy needs to be clarified to eliminate confusion or
distress for residents and their families."
Need for the bill
AB 261 is a reintroduction of AB 1142 with similar intent but a
simpler approach. Whereas AB 1142 introduced new terminology to
the CCFA, AB 261 uses existing terminology and builds upon
current law to address the conflict in the interpretation of how
and when facility-related fees may be charged to a deceased
resident's authorized representative(s).
Writing in support of AB 261, the California Commission on Aging
writes:
By prohibiting the imposition of a 30-day termination
notice when a resident dies, AB 261 protects families
already traumatized by the death [of a family member] from
unnecessary expenses. By requiring that fees stop once the
personal property of the deceased resident has been removed
from the resident's apartment, RCFE operators have some
degree of leverage to have the residence vacated promptly,
while assuring that families do not face ongoing fees once
the room has been cleared.
REGISTERED SUPPORT / OPPOSITION :
Support
Alzheimer's Association
California Assisted Living Association (CALA)
California Association for Health Services at Home (CAHSAH)
California Commission on Aging
California School Employees Association, AFL-CIO
Community Residential Care Association of CA
County Welfare Directors Association of California (CWDA)
LeadingAge California
Opposition
None on file
AB 261
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Analysis Prepared by : Chris Reefe / HUM. S. / (916) 319-2089