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