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