BILL ANALYSIS Ó AB 1821 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1821 (Gordon) As Amended June 17, 2014 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |78-0 |(May 28, 2014) |SENATE: |33-0 |(August 22, | | | | | | |2014) | ----------------------------------------------------------------- Original Committee Reference: V.A. SUMMARY : Establishes the Medical Foster Home Pilot Program and would, commencing June 1, 2015, and until January 1, 2018, authorize a United States Department of Veterans Affairs (USDVA) facility to establish a medical foster home that is not subject to licensure or regulation as a residential care facility for the elderly provided that specified federal requirements are satisfied, the USDVA facility establishing the home agrees to be subject to the jurisdiction of the California State Auditor, and the USDVA obtains criminal background information for caregivers and specified individuals residing in the home. States the intent of the Legislature that the California State Auditor, through a request to the Joint Legislative Audit Committee, conduct an audit evaluating the pilot program created by this bill no sooner than January 1, 2016, as specified. The Senate Amendments exempt Medical Foster Homes in the Pilot Program from licensure or regulation under the California Community Care Facilities Act and the California Residential Care Facilities for Persons With Chronic Life-Threatening Illness Act. FISCAL EFFECT : The Senate Appropriations Committee notes State Auditor costs of up to $200,000 (General Fund). COMMENTS : Providing veterans with a new, federally-funded, health care delivery setting option is sound policy for several reasons. Being treated in a home-like setting will surely be an attractive option for many veterans. According to the Author, the Medical Foster Home program is running successfully in other states. Furthermore, this model of care seems in keeping with the United States Supreme Court's decision in Olmstead v. L.C., a ruling that requires states to eliminate unnecessary segregation of persons with disabilities and to ensure that persons with disabilities receive services in the most integrated setting appropriate to their needs. AB 1821 Page 2 However, the step of exempting MFH's from state regulation and oversight should be carefully evaluated and the Senate amendments add two additional statutory/regulatory exemptions from the version of this bill passed by the Assembly. The bill does contain certain safeguards: introducing Medical Foster Homes to California as a pilot program, sunset provisions, an audit, and other requirements. There is a rigorous federal regulatory and oversight scheme in place for Medical Foster Homes and as noted above, the bill proposes safeguards. However, recently the USDVA has been the subject of serious allegations of systemic failings and misconduct with regard to veterans healthcare. The Medical Foster Home Pilot Program by its nature will provide care even more remotely, away from USDVA facilities in private homes and to some of California's most vulnerable veterans. Analysis Prepared by : John Spangler / V. A. / (916) 319-3550FN: 0005033