BILL ANALYSIS                                                                                                                                                                                                    Ó




                                                                  AB 1436
                                                                  Page A
          Date of Hearing:   April 8, 2014

                        ASSEMBLY COMMITTEE ON HUMAN SERVICES
                                  Mark Stone, Chair
                  AB 1436 (Waldron) - As Amended:  February 18, 2014
           
          SUBJECT  :  Residential Care Facilities for the Elderly (RCFE).

           SUMMARY  :  Requires the Department of Social Services (DSS) to  
          post on its website information relating to reports on  
          inspections of RCFEs.  Specifically,  this bill  :   

          1)Requires DSS to post on its website the results of licensing  
            inspection reports, consultation reports, lists of  
            deficiencies, and plans of correction for RCFES.  

          2)Requires DSS to include on its website whether a licensee has  
            requested an appeal in accordance with Section 87763 of Title  
            22 of the California Code of Regulations. 

          3)Requires DSS to immediately remove from its website a notice  
            of deficiency on a RCFE upon a successful appeal of the RCFE.

           EXISTING LAW:   

          1)Establishes the California RCFE Act, which requires facilities  
            that provide personal care and supervision, protective  
            supervision or health related services for persons 60 years of  
            age or older who voluntarily choose to reside in that facility  
            to be licensed by the California Department of Social Services  
            (DSS).  (H&S Code 1569 and 1569.1)

          2)Requires DSS to conduct an unannounced licensing inspection of  
            a RCFE no less than once every five years.  (H&S Code  
            1569.33(d)

          3)Requires DSS to conduct an annual unannounced licensing  
            inspection of a RCFE under the following circumstances:

               a.     When a licensee is on probation;

               b.     When the terms of agreement in a facility compliance  
                 plan require an annual evaluation;

               c.     When an accusation against a licensee is pending;









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               d.     When a facility requires an annual visit as a  
                 condition of receiving federal financial participation;  
                 and

               e.     In order to verify that a person who has been  
                 ordered out of the facility for the elderly by the  
                 department is no longer at the facility.  (H&S Code  
                 1569.33(b))

          4)Requires DSS to conduct unannounced inspections of a 30%  
            random sample of facilities each year. (H&S Code 1569.33(c))

          5)Requires DSS to notify RCFEs in writing of all deficiencies in  
            its compliance with applicable statute and regulations.  (H&S  
            Code 1569.33(e))

          6)Requires DSS to keep on file the results of each inspection,  
            evaluation, or consultation and to make available to the  
            public all inspection reports, consultation reports, lists of  
            deficiencies, and plans of correction.  (H&S Code 1569.33(f))

          7)Requires DSS to establish an automated RCFE license  
            information system on licensees and former licensees of  
            licensed RCFEs, which shall include information that may be  
            pertinent, as determined by the director, for licensure, which  
            may include, but is not limited to, the licensees' addresses,  
            telephone numbers, violations of any laws related to the care  
            of clients in a residential care facility for the elderly,  
            licenses, revocation of any licenses and, to the extent  
            permitted by federal law, social security numbers.  (H&S Code  
            1569.335)

           FISCAL EFFECT  :  Unknown.

           COMMENTS  :

           Background  :  It is the intent of the Legislature, in  
          establishing the RCFE Act, to help provide a system of  
          residential care to allow older persons to be able to  
          voluntarily live independently in a homelike environment as  
          opposed to being forced to live in an institutionalized  
          facility, such as a nursing home, or having to move between  
          medical and nonmedical environments.  RCFEs, commonly referred  
          to as assisted living facilities, are licensed retirement  









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          residential homes and board and care homes that accommodate and  
          provide services to meet the varying, and at times, fluctuating  
          health care needs of individuals who are 60 years of age and  
          over, and persons under the age of 60 with compatible needs.   
          Licensed by DSS' Community Care Licensing Division (CCLD), they  
          can range in size from residential homes with six or less beds  
          to more formal residential facilities with 100 beds or more. 

          There is also no uniform common care model; rather the types of  
          assistive services can vary widely, which can include differing  
          levels of personal care and protective supervision, based upon  
          the needs of the resident. 

          When a resident needs medical care in his or her residence in  
          order to maintain an independent lifestyle, incidental medical  
          services are permitted to be provided by a licensed or otherwise  
          approved external provider, such as a home healthcare agency  
          (HHA), which is licensed by the California Department of Public  
          Health.  Additionally, some RCFEs, upon approval of DSS and  
          after having met specified orientation and training  
          requirements, may provide assistive memory care services to  
          individuals with dementia or Alzheimer's disease. 

          Existing regulations also lay out the circumstances under which  
          an individual may be allowed to reside in RCFEs.  Specifically,  
          they include persons:<1>

                 Capable of administering their own medications;

                 Receiving medical care and treatment outside the  
               facility or who are receiving needed medical care from a  
               visiting nurse;

                 Who because of forgetfulness or physical limitations  
               need only be reminded or to be assisted to take medication  
               usually prescribed for self-administration;

                 With problems including, but not limited to,  
               forgetfulness, wandering, confusion, irritability, and  
               inability to manage money;

                 With mild temporary emotional disturbance resulting from  
               personal loss or change in living arrangement;


             --------------------------
          <1> Section 87455(b) of Title 22, California Code of  
          Regulations.








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                 Who are temporarily bedridden, as specified; or
                
                 Who are under 60 years of age whose needs are compatible  
               with other residents in care, if they require the same  
               amount of care and supervision as do the other residents in  
               the facility. 

          Regulations also provide specific prohibitions on individuals  
          who are allowed to reside in a RCFE, which includes whether the  
          resident has active communicable tuberculosis, requires 24-hour  
          skilled nursing or intermediate care, has an ongoing behavioral  
          or mental disorder, or has dementia, unless the individual is  
          otherwise permitted to be cared for in a RCFE by CCLD.<2>

           Growing demand:   Over the past thirty years, the demand for  
          RCFEs has grown substantially.  Although RCFEs have been  
          generally available, they experienced explosive growth in the  
          1990s, more than doubling the number of beds between 1990 and  
          2002,<3> and continued to grow 16% between 2001 and 2010.<4>   
          Nationwide, states reported 1.2 million beds in licensed RCFEs  
          in 2010.<5>  That same year, the national Centers for Disease  
          Control reported that 40% of RCFE residents needed help with  
          three or more activities of daily living and three-fourths of  
          residents had at least two of the 10 most common chronic  
          conditions.<6>

          According to March 5, 2014 data from DSS, there are currently  
          7,589 licensed RCFEs in California with a capacity to serve  
          176,317 residents. 

          ---------------------------
          <2> Section 87455(c) of Title 22, California Code of  
          Regulations. 
          <3>  Flores and Newcomer, "Monitoring Quality of Care in  
          Residential Care for the Elderly: The Information Challenge".  
          Journal of Aging and Social Policy, 21:225-242, 2009.
          <4>  SCAN Foundation. "Long Term Care Fundamentals: Residential  
          Care Facilities for the Elderly." March 2011.
          http://thescanfoundation.org/sites/thescanfoundation.org/files/LT 
          C_Fundamental_7_0.pdf
          <5>  "Assisted Living and Residential Care in the States in  
          2010," Mollica, Robert, AARP Public Policy Institute
          <6>  "Residents Living in Residential Care Facilities: United  
          States, 2010, Caffrey, Christine, et al., US Centers for
          Disease Control, April 2012








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           Transparency or lack thereof:   Under current law, DSS is  
          required to operate an automated RCFE license information system  
          to provide information on licensees and former licensees of  
          licensed RCFEs.  Although this requirement was established in  
          statute in 1985 (SB 185 (Mello) Chapter 1127, Statutes of 1985),  
          it is unclear how DSS is complying with this requirement.  It  
          currently has available a searchable database of RCFEs on its  
          website, however information is limited to the name, location,  
          contact information, type of facility and whether the facility's  
          license is current or pending.  It does not provide information  
          such as a facility's licensing history, the expertise and  
          certification of staff, or its complaints history, including  
          whether the complaint was resolved.  In order to acquire  
          additional information relating to the quality of a facility, a  
          person must travel to one of DSS' eight regional licensing  
          offices and request the information in person. 

          DSS also currently operates a webpage entitled "myccl" on its  
          departmental Internet Web site, however, it is only accessible  
          to RCFE licensees, administrators, board members of the RCFE,  
          staff, or related individuals per the approval of DSS. 

          Other than DSS' searchable database, which is limited to general  
          information of RCFEs, there currently does not exist an online  
          or other automated system provided by DSS whereby the public can  
          review or learn more about licensed RCFEs.  This not only limits  
          the public's access to information about RCFEs, but it is also  
          limits CCLD's internal ability to track patterns of poor care  
          within a single facility, much less across facilities with the  
          same licensee.  Under current practice, when a licensee  
          undergoes a licensing inspection or is subject to a complaint  
          investigation, the information reported by CCLD is maintained in  
          a paper-based format.  This limits CCLD's ability to track  
          licensees overtime and whether they operate other facilities  
          that should undergo additional scrutiny. 

          According to DSS, there are approximately 462 licensing program  
          analysts responsible for the more than 75,000 licensed community  
          care facilities, including RCFEs, and the nearly 1.4 million  
          individuals they serve, ranging from the earliest stages of life  
          to the end of life care.  This comes to a ratio of one licensing  
          analyst per 162 facilities and 3,030 individuals in care.

          In response to increased media coverage of incidences that have  
          occurred in RCFEs across the state, DSS is currently working to  









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          provide more robust information of licensed RCFEs on its  
          website.  It is anticipated that DSS will be providing an online  
          searchable database, where the public can access up to five  
          years of historical information on RCFEs.  This searchable  
          database is proposed to include the following:

                 The name of the facility and its licensee's name and  
               contact information;

                 The number of substantiated, unsubstantiated, and  
               inconclusive complaints filed against the facility,  
               including complaint severity and whether a complaint  
               resulted in a citation; and

                 The number of inspections, complaint investigations, and  
               general visits the facility has received.

          A timeline for the availability of this searchable database has  
          not been established.

          However, due to the current statutory requirement that all  
          community care facilities, including RCFEs, undergo an  
          unannounced licensing inspection visit at least once every five  
          years, rather than annually as required prior to 2003, the  
          reliability and relevance of information included in this  
          database will be limited.  Whereas more information would be  
          available for those facilities that have recently been inspected  
          or undergone a complaint investigation, information for a  
          facility that has not had any complaints filed against it nor  
          has undergone a licensing inspection in several years be limited  
          to basic demographic information related to the facility.

           Need for the bill  :  Stating the need for the bill, the author  
          writes that "California must keep up with modern technology and  
          require the State Department of Social Services to post all  
          inspection reports, consultation reports, lists of deficiencies,  
          appeals and plans for correction on the department's website."  
           
           Opposition  :  Writing in opposition to this bill, the California  
          Association for Health Services at Home writes, "Facilities are  
          surveyed and during the process evaluators may incorrectly cite  
          a deficiency.  In order to protect providers from inaccurate  
          deficiencies, an established appeal process already exists which  
          entitles additional review by DSS licensing staff.  During this  
          appeal process deficiencies can be overturned.









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          "In order to protect the reputation of providers with the  
          public, only final deficiencies, those  not  on appeal or those  
          being filed for appeal, should only be made public."

           RECOMMENDED AMENDMENTS:

           As proposed, this measure would require DSS to post all RCFE  
          inspection reports, consultation reports, lists of deficiencies,  
          and plans of correction on its website.  It would also require  
          the posting of any appeals filed by the facility and, in cases  
          where a deficiency is dismissed on appeal, to have the  
          deficiency removed from the website. 

          The bill does not provide requirements on whether any steps  
          should be taken to protect the privacy and confidentiality of  
          the complainant's information that may be included in the  
          information this measure seeks to have posted to DSS website.   
          Additionally, current law requires DSS to make all inspection  
          reports, consultation reports, lists of deficiencies, and plans  
          of correction available to the public, but it does not require  
          that pending complaints and appeals information be made  
          available.  The posting of pending deficiencies, like  
          allegations, without a proper investigation and outcome could  
          unfairly disadvantage RCFEs subject to unfounded or otherwise  
          unsubstantiated complaints.

          Should the committee choose to pass this measure, it should be  
          amended to take into account necessary privacy protections of  
          residents and information relevant to the public.

          Specifically, staff recommends the following amendments:

          Amendment #1 - On page 3, line 3 delete "lists of deficiencies"  
          and replace with "violations"

          Amendment #2 - On page 3, line 5 delete "The Internet Web site"  
          and lines 6 through 11. 

          Amendment #3 - On page 3, line 5 after the first "Internet Web  
          site." add the following language to read:

               The department shall also post on the department's Internet  
               Web site the number and nature of complaints filed against  
               a facility within each calendar year, including whether a  









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               complaint is undergoing investigation, whether it has been  
               substantiated or unsubstantiated, and whether it has been  
               found to be inconclusive. The department shall redact all  
               personally identifiable information of residents prior to  
               the posting of information pursuant to this subdivision. 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Assisted Living Association (CALA)
          California Commission on Aging
          California Long-Term Care Ombudsman Association
          California Right to Life Committee, Inc.
          Community Residential Care Association of California
          Consumer Advocates for TRCFE Reform (CAR)
          Consumer Attorneys of California
          LeadingAge California
          Office of the State Long-Term Care Ombudsman

           Opposition 
           
          California Association for Health Services at Home (CAHSAH)
           
          Analysis Prepared by  :    Chris Reefe / HUM. S. / (916) 319-2089