BILL ANALYSIS �
AB 322
Page 1
Date of Hearing: May 8, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 322 (Yamada) - As Amended: April 23, 2013
Policy Committee: Human
ServicesVote:5 - 1
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill establishes the Home Care Services Act of 2013 to
license and regulate home care services for the elderly, frail,
and persons with disabilities. Specifically, this bill:
1)Requires that as of January 1, 2016, home care services cannot
be provided to a client unless the individual or entity first
obtains a license from the Department of Social Services
(DSS).
2)Defines home care services as non-medical services such as
bathing, dressing, feeding, exercising, personal hygiene,
assisting with self-administered medication, meal preparation,
laundry and companionship.
3)Establishes a maximum civil penalty of $400 per day for any
violation of the act.
4)Requires DSS to establish procedures for receiving,
investigating and resolving complaints against home care
services providers.
5)Requires DSS to make available on their web site a list of
licensed home care providers.
6)Allows DSS to assess licensing, renewal and other fees for
home care providers sufficient to cover the cost of the
program.
7)Creates the Home Care Organization Fund and continuously
appropriates those funds for DSS to use in carrying out is
AB 322
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home care licensing duties.
FISCAL EFFECT
1)Assuming that there are approximately 3,200 agencies that
employ 100,000 home care workers, DSS would be required to
license and investigate complaints for those new entities.
This would constitute almost a 5% increase in the number of
facilities licensed by DSS. Based on that increase, the
on-going cost for DSS' Community Care Licensing Division
(CCLD) would be approximately $5 million. These costs may be
partially or fully offset by annual licensing fees.
2)One-time costs of at least $27 million for regulations, forms,
and information technology related with creating the new
licensing system and the initial inspections and licensing of
all 3,200 agencies. In order for these costs to be fully
offset by licensing fees, each agency would need to pay
approximately $8,500 in a licensing application fee.
3)The Department of Justice projects GF costs of $175,500 for
2013-14, $300,500 for 2014-15, and $184,250 for 2015-16 for
the workload associated with the background checks required of
all home care aids and home care organizations.
4)This bill continuously appropriates money deposited in the
Home Care Organization Fund. The proposed continuous
appropriation of funds is contrary to general committee
policy.
COMMENTS
1)Purpose . Estimates suggest that there are over 100,000 home
care aids working in California. The agencies overseeing
these workers and the workers themselves are currently
completely unregulated by any state agency. The author hopes
this bill will create a licensing framework that would help
protect the health and safety of those individuals who require
the services of a home care worker.
Home care providers provide basic day-to-day non-medical
living assistance, such as cooking, cleaning, dressing,
feeding, and other regular daily needs. However, unlike their
In-Home Supportive Services and Home Health Agency
counterparts, there are no requirements in current law that
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require home care aides to have minimum levels of training, to
undergo a criminal background check, or comply with basic
standards of service.
2)Related Legislation . Currently, AB 1217 (Lowenthal), similar
to this bill, establishes the Home Care Services Consumer
Protection Act of 2013 to provide for the licensure and
regulation of home care organizations and the certification of
home care aides. That bill is currently pending in this
committee.
In 2011, AB 899 (Yamada), a substantially similar bill was
held on this committee's suspense file.
In 2011, SB 411 (Price), established the Home Care Services
Act of 2012 (HCSA) requiring the Department of Social Services
(DSS) to license private agencies that provide non-medical
home care services, and to certify home care aides. That bill
was vetoed by the governor. In his veto message, the governor
wrote, "Given the economic stresses and uncertainty, I am not
prepared to embark upon the institutional changes and costs
that this bill entails."
In 2007, AB 853 (Jones), a substantially similar bill was held
on this committee's suspense file.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081