BILL ANALYSIS Ó AB 557 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 557 (Yamada) As Amended June 20, 2013 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |75-0 |(May 13, 2013) |SENATE: |31-0 |(July 8, 2013) | ----------------------------------------------------------------- Original Committee Reference: V.A. SUMMARY : Changes the font size and some language in the quarterly statements to residents of the Veterans Home. Specifically, this bill : 1)Requires that the quarterly statements of all charges for the costs of care rendered to the member in excess of the member fee include language that if the veteran is a resident of the home at the time of death, the home may use his or her money or personal property that is in possession of the home or outside the home for payment of unreimbursed costs of care. 2)Requires that the statements and notices relating to the statements shall be in 14-point font size or larger. The Senate amendments delete the requirement of Americans with Disabilities Act compliance with regard to the font and font size in favor of a requirement that the font used shall be 14-point or larger. EXISTING LAW : 1)Requires a member of a veterans' home to pay fees and charges as determined by the Department of Veterans Affairs (DVA). 2)Directs that upon admission to a California veterans' home, the administrator of each home must provide written notice to the veteran informing him or her of costs of care that may be incurred in excess of the member contribution fee. The notification must include various details about the costs and fees of the home, and in particular what may happen if there are unreimbursed costs of care at the time of the veteran's death. Among other things the notice tells the veteran: AB 557 Page 2 a) Residents will receive a quarterly accounting statement of the total excess costs of care, but the statement is provided for informational purposes only. b) If he or she is a resident of the home at the time of death, the home may disburse his or her moneys or personal property for payment of unreimbursed excess costs of care. c) That the veteran is advised to seek counsel from a legal expert to protect his or her assets. d) The terms and conditions upon which the member fees and costs can be changed. e) That the veteran must sign the notification in acknowledgement that he or she has read and understands it. 3)Requires the notification to be written in plain, straightforward language, avoiding technical terms as much as possible, and using a coherent and easily readable style. A copy of the notification, containing all the information specified above and titled in large font "NOTICE TO RESIDENTS," must be conspicuously posted in each veterans home by the administrator of the veterans home. 4)Requires the administrator of the home to provide each member with a quarterly statement or accounting of all charges for the costs of care rendered to the member in excess of the member fee, as defined. The statement must include: a) A statement that the charges for the excess costs of care are provided to the member for informational purposes only. b) A statement that, if the veteran is a resident of the home at the time of death, the home may use his or her money or personal property that is in possession of the home for payment of unreimbursed excess costs of care. c) A statement that advises the member to seek counsel from a legal expert to protect his or her assets. 5)Allows the DVA to recover costs from the estate of the veteran for payment of funeral expenses or any obligation owed to the AB 557 Page 3 home, including the cost of any care rendered by the home in excess of the fees paid by the veteran to the home. Any funds of the deceased veteran representing the cost of care rendered by the home in excess of the fees paid by the veteran to the home shall be paid to the Morale, Welfare, and Recreation Fund for the veteran home where the deceased veteran formerly resided. This subdivision applies only to veterans becoming members of the home on or after January 1, 1984. FISCAL EFFECT : The Assembly Appropriations Committee, found the Assembly version of this bill to have, "negligible state cost." The Senate Appropriations Committee did not hear this bill pursuant to Senate Rule 28.8, so there is no fiscal analysis from the Senate. COMMENTS : This bill makes minor changes to existing law and policy. The bill adds language warning the home member that recovery of excess cost of care can be from the member's personal property wherever it is located and adds a requirement that the language be in a larger than average font (Anecdotally, most printed material not intended as posters or advertisements are in 12-point font or smaller) to call attention to the message. The Senate amendments are only a minor formatting change to the notices affected by this bill and do not alter the policy of the bill as it left the Assembly. Analysis Prepared by : John Spangler / V. A. / (916) 319-3550 FN: 0001487