Amended in Assembly April 11, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1054

Introduced by Assembly Member Chesbro

(Principal coauthor: Assembly Member Lowenthal)

February 22, 2013

An act to amend Section 5912 of the Welfare and Institutions Code, relating to mental health.

LEGISLATIVE COUNSEL’S DIGEST

AB 1054, as amended, Chesbro. Mental health: skilled nursing facility: reimbursement rate.

Existing law provides for the licensure and regulation of health facilities, including skilled nursing facilities, by the State Department of Public Health. Existing law requires the State Department of Health Care Services to contract with skilled nursing facilities that have been designated by the State Department of begin delete Mental Health end delete begin insert State Hospitals end insert as institutions for mental disease to provide services to the residents. begin delete Existing law also provides procedures for the transfer of programmatic and fiscal responsibilities for mental health services from the state to counties. end delete Under existing law, as long as contracts require institutions for mental disease to continue to be licensed as skilled nursing facilities, they are reimbursed at a specified rate.

This bill would begin delete set end delete begin insert , effective July 1, 2014, require end insert the reimbursement rate for services in those institutions for mental disease begin delete at the rate established through negotiations between the institution and the county in which it is located. By imposing new duties on local agencies this bill would impose a state-mandated local program end delete begin insert to increase by 3.5% annually end insert .

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The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete yes end delete begin insert no end insert .

The people of the State of California do enact as follows:

SECTION 1.  

Section 5912 of the Welfare and Institutions Code
is amended to read:

5912.  

begin insert (a) end insert begin insert   end insert As long as contracts require institutions for mental
disease to continue to be licensed and certified as skilled nursing
facilities by the State Department of Public Health, they shall be
reimbursed for basic services at the rate established begin delete through
negotiations between the institution for mental disease and the
county in which it is located. end delete begin insert by the State Department of Health
Care Services. Effective July 1, 2014, the reimbursement rate for
institutions for mental disease shall increase by 3.5 percent
annually. end insert

begin insert

(b) It is the intent of the Legislature that the annual rate
increases provided in subdivision (a) be utilized by the institutions
for mental disease to meet direct service costs and, to the extent
possible, improve the quality of care rendered to residents in the
facilities.

end insert

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SEC. 2.  

If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.

end delete