BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                       AB 1217|
          |Office of Senate Floor Analyses   |                              |
          |1020 N Street, Suite 524          |                              |
          |(916) 651-1520         Fax: (916) |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 
           
                                           
                                    THIRD READING


          Bill No:  AB 1217
          Author:   Lowenthal (D)
          Amended:  9/11/13 in Senate
          Vote:     21


           SENATE HUMAN SERVICES COMMITTEE  :  4-2, 6/25/13
          AYES:  Yee, Evans, Liu, Wright
          NOES:  Berryhill, Emmerson

           SENATE APPROPRIATIONS COMMITTEE  :  5-2, 8/30/13
          AYES:  De León, Hill, Lara, Padilla, Steinberg
          NOES:  Walters, Gaines

           SENATE HUMAN SERV. COMM.  :  4-2, 9/11/13 (pursuant to Senate Rule  
            29.10)
          AYES:  Yee, Evans, Liu, Wright
          NOES:  Berryhill, Emmerson

           ASSEMBLY FLOOR  :  52-26, 5/30/13 - See last page for vote


           SUBJECT  :    Home Care Services Consumer Protection Act of 2013

           SOURCE  :     Congress of California Seniors


           DIGEST  :    This bill enacts the Home Care Services Consumer  
          Protection Act, which provides, on and after January 1, 2015,  
          for the licensure and regulation of home care organizations, as  
          defined, by Department of Social Services (DSS), and the  
          registration of home care aides.  This bill excludes specified  
          entities from the definition of a home care organization and  
                                                                CONTINUED





                                                                    AB 1217
                                                                     Page  
          2

          excludes certain types of individuals as home care aides.   
          Requires DSS to establish and continuously update a home care  
          aid registry and requires background clearances for home care  
          aides, as prescribed.  This bill requires DSS to impose various  
          fees to be deposited in the Home Care Aide Fund created by this  
          bill.

           Senate Floor Amendments  of 9/11/13 remove inclusion of Child  
          Abuse Client Index information on the home care aide registry,  
          remove an inadvertent re-insertion of previously deleted  
          language, and make one technical amendment.

           Senate Floor Amendments  of 9/6/13 gut existing language and  
          restructure the bill, significantly revising its language and  
          making several key policy changes; limit the scope of a  
          DSS-administered public registry for home care aides and their  
          organizations; remove client rights protections; modify  
          certification requirements for aides who work for home care  
          organization; remove requirement for independent aides to become  
          certified or to be placed on the registry; and establish a  
          misdemeanor crime for impersonating a home health care aide,  
          makes other substantive changes.

           Senate Floor Amendments  of 9/5/13 clarify that information  
          shared by the Department of Social Services (DSS) pursuant to  
          this bill is subject to existing law (Penal Code Section 11142),  
          which states that the sharing of criminal records or information  
          from criminal records with persons not authorized by law to  
          receive such information is a misdemeanor.

           ANALYSIS  :    

          Existing law:

          1.Establishes the California Community Care Facilities Act,  
            which provides for the licensing and regulation of community  
            care facilities providing non-medical residential care, day  
            treatment, and adult day care under the Department of Social  
            Services (DSS).

          2.Provides for the licensing and regulation of health care  
            facilities providing diagnosis, care, prevention, and  
            treatment of human illness, physical or mental, to which more  
            than one person is admitted for a 24-hour stay or longer.

                                                                CONTINUED





                                                                    AB 1217
                                                                     Page  
          3


          3.Provides for the licensing and regulation of home health  
            agencies and home health aides providing skilled nursing  
            services to patients in their home residence.

          4.Establishes the In-Home Supportive Services (IHSS) program to  
            provide in-home domestic and personal care services for aged,  
            blind or disabled individuals living at or below the poverty  
            level for the purpose of enabling IHSS consumers to avoid  
            institutionalization and remain safely in their homes with  
            supportive services.

          5.Requires prospective IHSS providers to undergo a criminal  
            background check and establishes two tiers of exclusionary  
            crimes.

          6.Permits an IHSS consumer or any employer of an unlicensed  
            in-home care provider to an aged or disabled consumer, to  
            request a criminal background check for the provider and  
            requires county welfare agencies to regularly inform the  
            consumer of this right.

          This bill:

          1.Separates the definition of "affiliated home care aides" -  
            those aides who are employed by a homecare organization to  
            provide home care services to a client - from "independent  
            home care aides" - those aides who are not employed by a home  
            care organization.

          2.Removes reference to home care aide "certification" and  
            replaces it with "registration."  Additionally, the amendments  
            remove DSS' oversight responsibility over registered aides,  
            aside from maintaining the home care registry.  While  
            affiliated home care aides will still be required to be  
            registered, pass a tuberculosis test, and complete basic  
            training, the amendments remove these requirements for  
            independent home care aides.

          3.Requires affiliated home care aides to be listed on the public  
            home care aide registry, administered by DSS, and removes the  
            requirement independent home care aides' registry is  
            voluntary.  Establishes that, when determining whether to  
            approve an application for registration, DSS shall consider,  

                                                                CONTINUED





                                                                    AB 1217
                                                                     Page  
          4

            among other things, whether a home care aide is "reputable and  
            responsible" by reviewing information including criminal  
            offender records.

          4.Requires DSS to maintain on its website a registry of both  
            registered home care aides and applicants, and facilitate  
            public search of these individuals using the following search  
            criteria:

             A.   name
             B.   registration number
             C.   registration status
             D.   registration expiration date
          1.Deletes language that required DSS to maintain a registry on  
            its Internet Web site of home care organizations and their  
            licensure status.

          2.Removes the section on Clients' Rights.

          3.Newly establishes as a misdemeanor the following:  falsely  
            representing or presenting oneself as a home care aide  
            applicant or registered home care aide, and violating the  
            chapter in question or willfully or repeatedly violating a  
            rule or regulation under that chapter.

          4.Adds specified child care providers in the definition of home  
            care aides, but excludes providers of care to children from  
            multiple families, foster parents, relatives and other  
            categories of providers, as specified.

          5.Removes the section requiring employment agencies that refer,  
            but do not act as the employer of, home care aides to maintain  
            general and professional liability insurance.

          6.Moves the bill's operative date to January 1, 2015.

           Background
           
           Licensing standards  .  Existing law generally provides for the  
          DPH to license or certify facilities, organizations and  
          individuals that provide clinical medical services, whether in a  
          facility or in a patient's residence.  Such services range from  
          minor medical care to intensive skilled nursing services.  Home  
          health providers are required to complete a minimum of 75 hours  

                                                                CONTINUED





                                                                    AB 1217
                                                                     Page  
          5

          of training and complete a background check.

           IHSS program  .  California's IHSS program is the state's primary  
          community-based long-term service, providing in-home domestic  
          and personal care services for 448,000 aged, blind or disabled  
          individuals living at or below the poverty level.  The purpose  
          of IHSS is to enable seniors and persons with disabilities to  
          remain safely in their homes and avoid institutional care  
          through the provision of a specified number of assistance hours  
          provided by a home care worker under the direction of the  
          consumer.  The program is administered locally by counties and  
          county public authorities under the direction and regulation of  
          DSS.  There are approximately 386,000 providers.

           Prior Legislation

           AB 322 (Yamada, 2013) would have established the Home Care  
          Services Act of 2013 to license and regulate home care  
          organizations providing services for the elderly, frail and  
          persons with disabilities.  The bill was held in Assembly  
          Appropriations Committee.

          SB 411 (Price, 2011) would have established the Home Care  
          Services Act of 2011, which required DPH to license and regulate  
          home care organizations.  The bill was vetoed by Governor Brown.

          AB 899 (Yamada, 2011) would have established the Home Care  
          Services Act of 2013 to license and regulate home care  
          organizations providing services for the elderly, frail and  
          persons with disabilities.  The bill was held in Assembly  
          Appropriations Committee.

          AB 853 (Jones, 2007) would have established the Home Care  
          Services Act to license and regulate home care services for the  
          elderly, frail and persons with disabilities.  The bill was held  
          in Assembly Appropriations Committee.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Appropriations Committee:

           One-time costs of approximately $22.5 million (General Fund)  
            to promulgate regulations, forms, automation changes to create  

                                                                CONTINUED





                                                                    AB 1217
                                                                     Page  
          6

            the new licensing system and development of registries,  
            inspections and licensing for 2,000 agencies, and  
            certification of over 101,000 home care aides.  Ongoing costs  
            to be covered by licensure and certification fees from the  
            newly created Home Care Organization and Home Care Aide  
            (HCOHCA) Fund.

           Estimated ongoing costs of approximately $20 million (HCOHCA  
            Fund) to administer the licensure and certification programs,  
            to be fully offset by licensure and certification fees.   
            Assuming 60% of ongoing costs would be attributable to  
            licensure would result in a licensure fee of $6,000 per agency  
            and $80 certification fee per home care aide.

           Fingerprint Fees Account costs to the Department of Justice of  
            $280,000 in FY 2013-14, $400,000 in FY 2014-15, and $130,000  
            in FY 2015-16 and annually thereafter for workload associated  
            with additional background checks required of all home care  
            aides and home care organization licensees.

           Minor ongoing administrative costs to the Secretary of State  
            to the extent additional organizations register to conduct  
            business in California.

           SUPPORT  :   (Verified  9/9/13)

          Congress of California Seniors (source)
          AARP
          AFSCME
          California Commission on Aging
          California Council of the Blind
          California Senior Legislature
          Contra Costa Advisory Council on Aging
          Los Angeles County District Attorney's Office
          Richmond Commission on Aging
          SEIU California
          UDW/AFSCME Local 3930

           OPPOSITION  :    (Verified  9/9/13)

          California Association for Health Services at Home
          Cambrian Homecare
          Care to Stay Home
          Caring Solutions

                                                                CONTINUED





                                                                    AB 1217
                                                                     Page  
          7

          Comfort Care Senior Services
          Home Care Association of California
          Home Instead Senior Care
          Matched CareGivers Continuous Care
          Maxim Healthcare Services, Inc.
          People's Care

           ARGUMENTS IN SUPPORT  :    According to the author's office, the  
          number of California residents aged 85 and older will double to  
          more than 1.3 million by 2030.  The author's office states that  
          many older adults, facing chronic conditions and functional  
          limitations, will require the provision of medical and  
          non-medical services in their homes.  The author's office notes  
          that individuals and organizations providing skilled nursing  
          services at a person's residence are required to be licensed,  
          however for non-medical in-home personal care services, only the  
          publicly funded service programs require providers to pass a  
          background check or meet basic training standards.

          The author's office states that approximately 1,200  
          privately-funded homecare agencies operate in California with a  
          business license and that an unknown number of independent home  
          care aides provide services without any oversight or regulation.  
           The author's office states that this bill requires all home  
          care aides to be certified and that this bill ensures that all  
          consumers of home care services have access to quality care from  
          properly screened and trained caregivers, whether they receive  
          services through a public or private entity.

           ARGUMENTS IN OPPOSITION  :    The Home Care Association of  
          California and Maxim Healthcare Services, Inc. write, expressing  
          their support for licensure in concept, but opposition to this  
          bill as drafted.  Specifically, both state concerns with the  
          DSS-maintained registry mandated in the bill due to privacy  
          concerns, the availability of personal information on a website  
          and potential costs.   
           
           ASSEMBLY FLOOR  :  52-26, 5/30/13
          AYES:  Alejo, Ammiano, Atkins, Bloom, Blumenfield, Bocanegra,  
            Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon,  
            Campos, Chau, Chesbro, Cooley, Daly, Dickinson, Eggman, Fong,  
            Fox, Frazier, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gray,  
            Hall, Roger Hernández, Jones-Sawyer, Levine, Lowenthal,  
            Medina, Mitchell, Mullin, Muratsuchi, Nazarian, Pan, Perea, V.  

                                                                CONTINUED





                                                                    AB 1217
                                                                     Page  
          8

            Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner,  
            Stone, Ting, Weber, Wieckowski, Williams, John A. Pérez
          NOES:  Achadjian, Allen, Bigelow, Chávez, Conway, Dahle,  
            Donnelly, Beth Gaines, Gorell, Grove, Hagman, Harkey, Jones,  
            Linder, Logue, Maienschein, Mansoor, Melendez, Morrell,  
            Nestande, Olsen, Patterson, Wagner, Waldron, Wilk, Yamada
          NO VOTE RECORDED:  Holden, Vacancy


          JL:ej  9/11/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

                                   ****  END  ****
          






























                                                                CONTINUED