BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 261|
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CONSENT
Bill No: AB 261
Author: Chesbro (D)
Amended: 6/18/13 in Senate
Vote: 21
SENATE HUMAN SERVICES COMMITTEE : 6-0, 6/25/13
AYES: Yee, Berryhill, Emmerson, Evans, Liu, Wright
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 76-0, 4/25/13 (Consent) - See last page for
vote
SUBJECT : Residential care facilities for the elderly: fees
and charges
SOURCE : California Assisted Living Association
DIGEST : This bill prohibits Residential Care Facilities for
the Elderly (RCFE) from requiring advance notice to terminate an
admission agreement upon death of a resident, prohibits the
accrual of any fees once the personal property of a deceased
resident is removed and requires that within three days of a
patient's death the RCFE provide a written notice of the
facility's polices involving contract termination and refunds,
as specified. This bill requires RCFEs to refund any fees paid
in advance that cover the time after the resident's property has
been removed. It also makes other conforming changes.
ANALYSIS :
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Existing law:
1. Establishes California Residential Care Facilities for the
Elderly Act.
2. Defines "Residential care facility for the elderly" as a
housing arrangement chosen voluntarily by persons 60 years of
age or over, or their authorized representative, where
varying levels and intensities of care and supervision,
protective supervision, personal care, or health-related
services are provided, based upon their varying needs, as
determined in order to be admitted and to remain in the
facility.
3. Requires the Department of Social Services (DSS) to inspect
and license RCFEs.
4. Establishes that an "admission agreement" shall 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.
5. Requires the admission agreement include the facility's
policy concerning refunds and conditions under which the
admission agreement may be terminated, among other things, as
detailed.
6. Requires RCFEs to implement a theft and loss program which
includes an inventory and surrender of personal effects and
valuables following the death of a resident to the authorized
representative in exchange for a signed receipt and immediate
written notice to the public administrator of the county upon
the death of a resident whose heirs are unable or unwilling
to claim the property.
7. Permits RCFEs to charge a fee for the services provided,
which shall include, but not be limited to, supervision,
room, leisure activities, and meals.
8. Provides that any fee charged by a licensee of a residential
care facility for the elderly, whether prior to or after
admission, shall be clearly specified in the admission
agreement.
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9. Provides that any person who violates this chapter, or who
willfully or repeatedly violates any rule or regulation
adopted under this chapter, is guilty of a misdemeanor and
upon conviction thereof shall be punished by a fine not to
exceed $1,000, by imprisonment in the county jail for a
period not to exceed one year, or by both the fine and
imprisonment.
10.Defines "Equity project" as a continuing care retirement
community where residents receive an equity interest in the
continuing care retirement community property.
11.Defines "Refundable contract" as a continuing care contract
that includes a promise, expressed or implied, by the
provider to pay an entrance fee refund or to repurchase the
transferor's unit, membership, stock, or other interest in
the continuing care retirement community when the promise to
refund some or all of the initial entrance fee extends beyond
the resident's sixth year of residency.
Existing state regulation states the admission agreement shall
be 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 the
court.
This bill:
1. Prohibits an RCFE from requiring advanced notice for
terminating an admission agreement upon death of a resident.
2. Prohibits an RCFE from accruing fees once all personal
property belonging to the deceased resident is removed from
the living unit.
3. Prohibits an RCFE from impeding the removal of the deceased
resident's personal property, as specified.
4. Establishes that an RCFE must refund any fees paid in
advance covering the time after the resident's personal
property has been removed from the facility within 15 days,
as specified.
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5. Requires that, if fees are assessed while a resident's
property remain in a unit after the resident is deceased, the
licensee shall, within three days of becoming aware of the
resident's death, provide to the resident's responsible
person or other individuals identified in the admissions
agreement, with written notice of the facility's policies
regarding contract termination upon death and refunds.
6. States that this section does not apply to fees charged by a
continuing care equity project or amounts deducted from
entrance fee refunds or repayments, as specified in statute.
7. Requires the RCFE's admission agreement to include the
facility's policy concerning refunds, including the
conditions under which a refund for advanced monthly fees
will be returned in the event of a resident's death.
Background
Residential Care Facility for the Elderly . Residential Care
Facilities for the Elderly (RCFEs) provide a housing arrangement
chosen voluntarily by the resident, the resident's guardian,
conservator or other responsible person.
According to DSS, as of May 2013, there were 7,500 licensed
RCFEs in the state with a total capacity of 143,459 residents.
According to the organization California Registry, the cost of
residential care for an elderly person can range from $1,500 to
$4,500 a month, depending on the care needs, the quality of the
accommodations and the location of the facility.
Admission Agreements . California Statute provides that an
admission agreement contract between an RCFE and a resident
shall include all documents that a resident or responsible
person must sign at the time of, or as a condition of, admission
into an RCFE.
Specifically, the admission agreement includes, among other
requirements:
A comprehensive description of any items and services
provided under a single fee, such as a monthly fee for room,
board, and other items and services.
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A comprehensive description of, and the fee schedule for,
all items and services not included in a single fee. In
addition, the agreement shall indicate that the resident
shall receive a monthly statement itemizing all separate
charges incurred by the resident.
A comprehensive description of billing and payment policies
and procedures.
The facility's policy concerning refunds.
Conditions under which the agreement may be terminated.
According to the author, there is currently no statutory
prohibition on RCFEs requiring a cancellation notice even in
cases where a resident has passed away, provided the policy is
disclosed and agreed to in writing in the admission agreement.
California Regulations . California regulation states that "the
admission agreement shall be 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 the court."
While this legislation would largely codify the state regulation
that requires admission agreements to be terminated at the date
of death, it would not permit any exceptions, such as orders by
the court.
Prior Legislation
AB 1142 (Chesbro, 2011) was substantively similar legislation.
It addressed the termination of the admissions agreement and
prohibited the assessment of fees after all personal property
was removed from the RCFE. This bill was held without hearing
in Senate Human Services.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 8/9/13)
California Assisted Living Association (source)
AARP
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Alzheimer's Association
California Advocates for Nursing Home Reform
California Association for Health Services at Home
California Commission on Aging
California Long-Term Care Ombudsman Association
California School Employees Association, AFL-CIO
California Senior Legislature
Community Residential Care Association of California
Contra Costa County Advisory Council on Aging
County Welfare Directors Association of California
National Association of Social Workers
ARGUMENTS IN SUPPORT : According to the author, this bill
brings additional clarity and fairness to a certain billing
practice with regard to assessing fees upon the death of a
resident in Residential Care Facilities for the Elderly (RCFEs).
This bill prohibits an RCFE from requiring advanced notice
before terminating an admission agreement when the resident has
died. It also requires that fees stop once the deceased
resident's personal property has been removed from the
resident's apartment.
ASSEMBLY FLOOR : 76-0, 4/25/13
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown,
Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway,
Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier,
Beth Gaines, Garcia, Gatto, Gomez, Gordon, Gorell, Gray,
Grove, Hagman, Hall, Harkey, Roger Hernández, Holden, Jones,
Jones-Sawyer, Levine, Linder, Logue, Maienschein, Mansoor,
Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi,
Nestande, Olsen, Pan, Patterson, Perea, V. Manuel Pérez,
Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting,
Torres, Wagner, Waldron, Weber, Wieckowski, Wilk, Williams,
Yamada, John A. Pérez
NO VOTE RECORDED: Cooley, Lowenthal, Nazarian, Vacancy
JL:nl 8/12/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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