BILL ANALYSIS Ó
AB 261
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 261 (Chesbro)
As Amended June 18, 2013
Majority vote
-----------------------------------------------------------------
|ASSEMBLY: |76-0 |(April 25, |SENATE: |38-0 |(August 15, |
| | |2013) | | |2013) |
-----------------------------------------------------------------
Original Committee Reference: HUM. S.
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 property 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 property has
been removed from the facility to the resident's authorized
representative(s) within 15 days of removal of the belongings,
as specified.
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.
The Senate amendments :
1) Clarify references to a resident's personal "property"
rather than "belongings."
AB 261
Page 2
2) Clarify that a resident's personal property may be
removed by a court-appointed executor or administrator of
the decedent's estate.
3) Make other nonsubstantive technical and clarifying
changes.
AS PASSED BY THE ASSEMBLY , this bill provided clarification on
the termination of an admission agreement and the charging of
fees when a RCFE resident passes away.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS :
Background : It is the intent of the Legislature, in creating
RCFEs as its 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
California Community Care Facilities Act (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.
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.
AB 261
Page 3
Past 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 the Assembly Human Services Committee 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
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 : This bill is a reintroduction of AB 1142
with similar intent but a simpler approach. Whereas AB 1142
introduced new terminology to the CCFA, this bill 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).
Analysis Prepared by : Chris Reefe / HUM. S. / (916) 319-2089
FN: 0001526