BILL ANALYSIS                                                                                                                                                                                                    Ó




                                                                  AB 753
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          Date of Hearing:   April 23, 2013

                   ASSEMBLY COMMITTEE ON AGING AND LONG-TERM CARE
                                Mariko Yamada, Chair
                   AB 753 (Lowenthal) - As Amended:  April 18, 2013
           
          SUBJECT  :   Cognitively impaired adults: caregiver resource  
          centers

           SUMMARY  :   Repeals and recasts statutes related to the system of  
          caregiver resource centers (CRCs) and the recent transfer of the  
          program from the former Department of Mental Health (DMH) to the  
          Department of Health Care Services (DHCS) pursuant to the FY  
          2012-13 budget trailer bill provisions (AB 1467 Chapter 23,  
          Statutes of 2012).  Specifically,  this bill  :  

          1)Repeals outdated statutes authorizing CRCs within the former  
            DMH, and creates the Comprehensive Act for Families and  
            Caregivers of Cognitively Impaired Adults.

          2)Makes a number of legislative findings and declarations  
            regarding CRCs, including that:

               a)     Families caring for loved ones with cognitive  
                 impairments face significant challenges to
               maintaining physical and mental health due to burdens  
               associated with caregiving;

               b)     CRCSs advocate for family caregivers;

             c)   CRCs use evidence based practices to improve health  
               outcomes for caregivers and the people for whom they care;

             d)   CRC services help families avoid or delay nursing home  
               placement resulting in significant savings in health care  
               costs to families, as well as government individuals and  
               communities;

               e)     CRC's help the state's economy by assisting and  
                 supporting families care for a loved one;
               and,

             f)   The state shall support family caregivers taking care of  
               adults living with cognitive impairments by funding and  
               implementing caregiver resource centers.









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          3)Establishes various definitions for purposes of the program,  
            for "Caregiver," "Cognitive Impairment," ''Cognitively  
            Impaired adult," among others.

          4)Requires the director of the DHCS to: 

               a)     Maintain contracts with 11 CRCS;

               b)     Maintain a CRC Operations Manual that define CRC  
                 procedures, and identifies CRC duties, responsibilities;  
                 and,

               c)     Seek funding for CRCs from federal and private  
                 resources.

          5)Requires agencies designated as CRCs to include on their  
            governing boards or advisory bodies, or both, representatives  
            that reflect the ethnic and socioeconomic character of the  
            area and people served, and establishes criteria to be used  
            when selecting a resource center, including:

               a)     Fiscal stability, and sound financial management,  
                 including fundraising competencies;

               b)     The ability to build community support for the  
                 agency; and,

             c)   The ability to deliver services to, and advocate for,  
               the needs of caregivers of cognitively impaired adults,  
               including consultations, respite, counseling, support  
               groups, legal and financial consultation, education, and  
               training.

          6)Establishes services that must be delivered by CRCs based upon  
            available resources and the needs of the community, including  
            consultations, respite, counseling, support groups, legal and  
            financial consultation, education, and training.

          7)Declares that recipients of services may be required to  
            contribute to defray the cost of services received.

          8)Requires CRCs to submit progress reports on activities, as  
            required by the director of DHCS;










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          9)Authorizes the director of DHCS to enter into exclusive or  
            nonexclusive contracts on a bid or negotiated basis and to  
            amend existing contracts to provide or arrange for services  
            provided under this bill.

          10)Includes an urgency clause to make the provisions of this  
            bill take effect immediately.

           EXISTING LAW  establishes the Comprehensive Act for Families and  
          Caregivers of Brain-Impaired Adults, previously administered by  
          DMH, to contract with a Statewide Resources Consultant to  
          coordinate a statewide system of CRCs to serve caregivers of  
          adults with Alzheimer's disease, stroke, Parkinson's, traumatic  
          brain injury, and other adult-onset cognitive disorders.

          AB 753 intends to continue the existing resource centers

           FISCAL EFFECT  :   Unknown   

           1)PURPOSE  : The Association of California CRCs has sponsored AB  
            753 to update CRC statutes for the first time in 30 years.  By  
            doing, AB 753 recasts obsolete code sections reflecting the  
            program's transition from the former Department of Mental  
            Health to the Department of Health Care Services.

          There are eleven Caregiver Resource Centers:
             a)   Bay Area CRC/ Family Caregiver Alliance, serving  
               Alameda, Contra Costa, Marin, San Francisco, San Mateo and  
               Santa Clara Counties; 
             b)   Redwood CRC serving Del Norte, Humboldt, Lake,  
               Mendocino, Napa, Solano and Sonoma Counties; 
             c)   Los Angeles CRC, serving Los Angeles County; 
             d)   Inland CRC, serving Inyo, Mono, Riverside and San  
               Bernardino Counties; 
             e)   Del Oro CRC, serving Alpine, Amador, Calaveras, Colusa,  
               El Dorado, Nevada, Placer, Sacramento, San Joaquin, Sierra,  
               Sutter, Yolo and Yuba Counties; 
             f)   Southern CRC, serving San Diego and Imperial Counties; 
             g)   Coast CRC, serving San Luis Obispo, Santa Barbara and  
               Ventura Counties; 
             h)   Mountain CRC, serving Butte, Glenn, Lassen, Modoc,  
               Plumas, Shasta, Siskiyou, Tehama and Trinity Counties;  
             i)   Valley CRC, serving Fresno, Kern, Kings, Madera,  
               Mariposa, Merced, Stanislaus, Tulare and Tuolumne Counties;  










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             j)   Del Mar CRC, serving Monterey, San Benito and Santa Cruz  
               Counties; and, 
             aa)  CRC of Orange County, serving Orange County.

           1)CAREGIVING IN CALIFORNIA  : California is home to the largest  
            number of seniors in the nation and their numbers are  
            expanding at a pace unprecedented in history.  The California  
            Department of Finance's Demographic Research Unit estimates  
            that California's 65+ population will have grown 44 percent  
            between 2010 and 2020 (from 4.4 million to 6.35 million).  By  
            2030 the 65+ population will reach nearly 9 million people.   
            The ratio of 65+ people will grow from about one in ten people  
            today, to one in five by 2035.   Though women comprise roughly  
            half of the general population, by age 65 their proportion  
            increases to about 57%.  By age 85, women outnumber men  
            two-to-one.
           
          2)WHO ARE CAREGIVERS  :  Given the demographics confronting  
            California, it would come as no surprise that most people will  
            become a caregiver at some point during their lives.  Who are  
            caregivers?  According to the Family Caregiver Alliance, the  
            short answer is: Most of us, at some point in our lives.  
            "Caregivers are daughters, wives, husbands, sons,  
            grandchildren, nieces, nephews, partners and friends. While  
            some people receive care from paid caregivers, most rely on  
            unpaid assistance from families, friends and neighbors." 

          The National Alliance on Caregiving and AARP report "Caregiving  
          in the United States, 2009," estimates:
             a)   31.2% of households in the U.S. had at least one person  
               who served as an unpaid family caregiver during the course  
               of the year.  
             b)   At any one time the report estimates 37.3 million people  
               are providing care.  
             c)   66% are women and 34% are men.  
             d)   The typical family caregiver is a 49-year-old woman  
               caring for her widowed 69-year-old mother who does not live  
               with her -- she is married and employed.  
             e)   1.4 million children ages 8 to 18 provide care for an  
               adult relative; 
             f)   72% are caring for a parent or grandparent; and 
             g)   64% live in the same household as their care recipient. 

          The same report estimates the number of caregivers in California  
          at any given time at 4.0 million, with an estimated 5.88 million  









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          people serving as caregivers during the course of a year.
           
          1)WHAT IS CAREGIVING  : Caregivers can be paid or unpaid.   
            Caregivers support the needs of dependent individuals in a  
            variety of ways, performing a range of tasks, including  
            companionship, light house-keeping, meal preparation, and  
            personal care tasks.  More complex and sensitive tasks include  
            money management, medication management, communicating with  
            health professionals, and coordinating care.  The Family  
            Caregiver Alliance (FCA) finds that many family members and  
            friends do not consider such assistance and care  
            "caregiving"-they are just doing what comes naturally to them:  
            taking care of someone they love.   But that care may be  
            required for months or years, and may take an emotional,  
            physical and financial toll on caregiving families.  

          2)HISTORY  : CRC were first authorized under legislation when  
            Governor Deukmejian signed AB 2913 in 1984.  The  
            "Comprehensive Act for Family Caregivers of Brain-Impaired  
            Adults" established 11 regional agencies known as Caregiver  
            Resource Centers under the Department of Mental Health.  CRCs  
            were legislatively mandated to assist families who provide  
            care for loved ones with Alzheimer's Disease, stroke,  
            Parkinson's, Huntington's Disease, Traumatic Brain Injury  
            (TBI), Multiple Sclerosis and other brain disorders acquired  
            after the age of 18.  The CRC system was the first of its kind  
            in the nation and was looked to as a model for the development  
            of similar services now available in all 50 states. 

            CRCs emerged as the brain-child of research carried out by the  
            FCA, a San Francisco based resource and research center where  
            the study of family-centered care for older adults developed  
            into a special expertise in creating and replicating family  
            caregiver support programs, and translating research to  
            promote policy change.

            CRC Services are somewhat unique.  Unlike most publicly  
            supported services and programs, CRC services are not means  
            tested.  They are not intended to address the needs of the  
            disabled family member who is being cared for directly -- but  
            instead directed to the caregiver, in order to support and  
            preserve the informal family caregiving relationship.  The  
            public value lies in extending the caregiving relationship  
            through respite, counseling and other supports to caregivers.   
            Doing so assures caregivers endure the unremitting demands of  









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            caregiving and delays institutionalization, the likelihood of  
            imminent impoverishment, and other debilitating conditions  
            that caregivers are known experience, which could lead to a  
            dependency upon public social resources.

           3)FUNDING  : Funding for CRCs has been reduced by 74% since 2009.   
            As a result of these budget reductions, all CRCs maintain  
            waiting lists for various services; the CRC serving the Los  
            Angeles area has a waiting list of over 900 people for respite  
            services alone.

            When the CRC program was under the authority of DMH, the FCA,  
            the original CRC, was selected to serve as the Statewide  
            Resources Consultant.  In this capacity, FCA assisted in  
            statewide program development, data analysis, reporting  
            functions, and technical assistance.   

            The Governor's 2012-13 Budget proposed to eliminate all  
            funding for CRCs.  In rejecting this proposal, the Legislature  
            noted that CRCs are a valuable component of the state's  
            overall safety net that allows caregivers to continue  
            providing long-term care in homes, thereby enabling many  
            disabled Californians to continue living in the community  
            rather than in nursing facilities, hospitals, or  
            institutionalized settings, at costs that typically exceed  
            most individual or family savings, leading to impoverishment,  
            and ultimately, dependency upon public social services.    

            According to a recent joint informational hearing of this  
            committee and the Assembly Human Services Committee, the value  
            of the services family caregivers provide for "free," when  
            caring, was estimated to be $450 billion in 2009.  The  
            estimated value of unpaid care in California is $47 billion,  
            accounting for over 3.8 billion hours of care at $12.17, the  
            average caregiver wage in 2009.   On the personal side,  
            long-term caregiving has significant financial consequences  
            for caregivers, particularly for women.  Informal caregivers  
            personally lose about $659,139 over a lifetime: $25,494 in  
            Social Security benefits; $67,202 in pension benefits; and  
            $566,443 in forgone wages.  Caregivers face the loss of income  
            of the care recipient, loss of their own income if they reduce  
            their work hours or leave their jobs, loss of employer-based  
            medical benefits, shrinking of savings to pay caregiving  
            costs, and a threat to their retirement income due to fewer  










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            contributions to pensions and other retirement vehicles<1>.  

           4)SUPPORT  :  Several individual CRCs note in support that  
            dedicated families, not institutions, provide most of the  
            long-term care for loved ones with cognitive impairments,  
            often at great physical, emotional, and financial sacrifice.   
            They state that this bill ensures that the state continues to  
            support and fund these programs that give caregivers a place  
            to turn for services.  The Peninsula Stroke Association writes  
            in support that the small investment the state makes in CRCs  
            results in large monetary savings over the long-term by  
            preventing or delaying the placement of adults with cognitive  
            impairments in nursing homes or hospitals.  

          This bill passed out of Assembly Health with a vote of 19-0 with  
          a recommendation to consent.

           REGISTERED SUPPORT / OPPOSITION  :   

          Support 
           
          Alzheimer's Association
          Association of California Caregiver Resource Centers (CRC)
          California Association for Health Services at Home (CAHSAH)
          Coast Caregiver Resource Centers
          Del Oro caregiver Resource Center
          Family Caregiver Alliance
          Health Projects Center's Del Mar CRC
          Inland Caregiver Resource Center
          Multipurpose Senior Services Program Site Association (MSA)
          Orange County Caregiver Resource Center
          Peninsula Stroke Association
          Redwood Caregiver Resource Center 
          Southern Caregiver Resource Center
          Traumatic Brain Injury Services of California
          Valley Caregiver Resource Centers

           Opposition 
           
          None on file.
           
          ---------------------------
          <1> Valuing the Invaluable: 2011 Update: The Growing  
          Contributions and Costs of Family Caregiving, Lynn Feinberg,  
          Susan C. Reinhard, Ari Houser, and Rita Choula, AARP Public  
          Policy Institute








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          Analysis Prepared by  :    Robert MacLaughlin / AGING & L.T.C. /  
          (916) 319-3990