BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                 UNFINISHED BUSINESS


          Bill No:  SB 534
          Author:   Hernandez (D)
          Amended:  9/4/13
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  8-0, 4/17/13
          AYES:  Hernandez, Anderson, Beall, De León, DeSaulnier, Monning,  
            Nielsen, Wolk
          NO VOTE RECORDED:  Pavley

           SENATE HUMAN SERVICES COMMITTEE  :  6-0, 4/23/13
          AYES:  Yee, Berryhill, Emmerson, Evans, Liu, Wright

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           SENATE HEALTH COMMITTEE :  8-0, 9/12/13
          (Pursuant to Senate Rule 29.10)
          AYE:  Hernandez, Anderson, Beall, DeSaulnier, Monning, Nielsen,  
            Pavley, Wolk
          NO VOTE RECORDED:  De León

           SENATE FLOOR  :  34-0, 5/13/13 (Consent)  
          AYES:  Anderson, Beall, Berryhill, Block, Cannella, Corbett,  
            Correa, De León, DeSaulnier, Emmerson, Evans, Fuller,  
            Galgiani, Hancock, Hernandez, Hill, Hueso, Huff, Jackson,  
            Knight, Lara, Leno, Lieu, Liu, Monning, Nielsen, Padilla,  
            Pavley, Roth, Steinberg, Wolk, Wright, Wyland, Yee
          NO VOTE RECORDED:  Calderon, Gaines, Price, Walters, Vacancy,  
            Vacancy

           ASSEMBLY FLOOR  :  Not available

                                                                CONTINUED





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           SUBJECT  :    Health and care facilities

           SOURCE  :     Department of Public Health


           DIGEST  :    This bill requires chronic dialysis clinics, surgical  
          clinics, rehabilitation clinics, and intermediate care  
          facilities/developmentally disabled-nursing to meet federal  
          certification standards under the Department of Public Health  
          (DPH) and adopts licensing regulations for these facilities.

           Assembly Amendments  1) create a specific exemption to current  
          law which requires congregate living health facilities to be  
          freestanding, that allows for multiple congregate living health  
          facilities to exist on one multi-floor building if specified  
          requirements are met, 2) add findings and declarations, and 3)  
          add co-authors. 

           ANALYSIS  :    

          Existing law:

          1.Licenses and regulates various clinics by Department of Public  
            Health (DPH), including primary care clinics as well as  
            specialty clinics which include: surgical clinics, chronic  
            dialysis clinics, and rehabilitation clinics.

          2.Requires DPH to adopt reasonable rules and regulations as may  
            be necessary to enable DPH to carry out the purposes of  
            provisions of law governing the various types of clinics  
            licensed by DPH.

          3.Licenses and regulates intermediate care  
            facilities/developmentally disabled-nursing (ICF/DD-N) by DPH,  
            which are defined as facilities with a capacity of 4 to 15  
            beds that provides 24-hour personal care, developmental  
            services, and nursing supervision for persons with  
            developmental disabilities who have intermittent recurring  
            needs for skilled nursing care but have been certified by a  
            physician as not requiring continuous skilled nursing care.

          4.Licenses and regulates congregate living health facilities  
            (CLHFs) by DPH, which are defined as residential homes with a  







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            capacity of no more than 12 beds that provide inpatient care,  
            including 24-hour skilled nursing care.  Requires CLHFs to be  
            freestanding, but specifies that this does not preclude their  
            location on the premises of a hospital.  

          5.Requires DPH to propose licensing fees for all of its clinics  
            and facilities at a level that will not require the licensing  
            and certification program to seek General Funds to support its  
            activities unless otherwise specified in statute.

          This bill:

          1.Requires, until DPH adopts regulations relating to the  
            provision of services by a chronic dialysis clinic, surgical  
            clinic or a rehabilitation clinic, those clinics to comply  
            with the following federal certification standards in effect  
            immediately preceding January 1, 2013:

             A.   Requires a chronic dialysis clinic to comply with  
               applicable federal certification standards for an end stage  
               renal disease clinic;

             B.   Requires a surgical clinics to comply with applicable  
               federal certification standards for an ambulatory surgical  
               clinic; and,

             C.   Requires a rehabilitation clinic to comply with  
               applicable federal certification standards for a  
               comprehensive outpatient rehabilitation facility.

          1.Requires, until DPH and the Department of Developmental  
            Services (DDS) jointly develop regulations regarding CF/DD-N,  
            these facilities to comply with applicable federal  
            certification standards for ICF for individuals with  
            intellectual disabilities in effect immediately preceding  
            January 1, 2013.

          2.Deletes a requirement that regulations developed by DPH and  
            DDS pertaining to ICF/DD-Ns and ICF/DD-continuous nursing  
            include licensing fee schedules appropriate to facilities  
            which will encourage their development.

          3.Permits multiple CHLFs to exist in one multi-floor building,  
            notwithstanding an existing law requirement that CHLFs be  







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            freestanding, if all of the following requirements are  
            satisfied:

             A.   Each facility meets other applicable building standards  
               not related to multiple floors;

             B.   Each facility is separated by a wall, floor, or other  
               permanent partition but may share an elevator, stairs, or  
               stairwell, and need not be freestanding;

             C.   Proposals to develop proximate CLHFs are supported by  
               the county in which the facilities are to be located; and

             D.   The CLHFs are proposed for one of four specified  
               buildings located on the former McClellan Air Force Base.
          
           Background on CLHFs.
           
          CLHFs are required to provide a non-institutional, home-like  
          environment, while providing medical care that is generally less  
          intense than that provided in general acute care hospitals, but  
          more intense than that provided in skilled nursing facilities.   
          CLHFs are licensed to provide services to one of three types of  
          persons: persons who are mentally alert but have physical  
          disabilities and may be ventilator dependent; persons who have a  
          diagnosis of terminal illness or a life-threatening illness, as  
          defined; or persons who are catastrophically and severely  
          disabled, as defined.

           Comments
           
          This bill would require four health facility categories  
          currently regulated by DPH to comply with facility-specific  
          federal certification requirements to meet state licensing  
          requirements until DPH adopts state regulations.  These  
          facilities already meet federal requirements in order to receive  
          Medicare and Medicaid funding; this bill simply gives authority  
          to state regulators to enforce these standards until such time  
          that DPH adopts regulations specific to these facilities.

          In addition, this bill would remove an obstacle to establishing  
          CLHFs on the former McClellan Air Force Base.  Current law  
          requires these facilities to be "freestanding," which DPH  
          interprets as requiring a separate foundation.  McClellan  







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          Business Park would like to convert a three story building into  
          three separately licensed CLHFs, and this bill would grant the  
          necessary flexibility from the "freestanding" requirement, while  
          also ensuring that all other requirements are met.
           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          This bill has not been analyzed by a fiscal committee.

           SUPPORT  :   (Verified  5/7/13)

          McClellan Business Park
          Sacramento County Board of Supervisors
          Sacramento County Public Health Officer
          California Department of Public Health (prior version)

           ARGUMENTS IN SUPPORT  :    The Sacramento County Board of  
          Supervisors states in support of the CLHF provisions that this  
          bill would provide DPH with clear statutory authority to permit  
          the conversion of existing military housing units into CLHFs at  
          locations within McClellan Business Park that are specified in  
          the bill.  Sacramento County states that these provisions will  
          remove any ambiguity over whether CLHFs in former military  
          housing with multiple floors would meet the existing requirement  
          that such facilities by freestanding.  Sacramento County states  
          that this bill will help it meet the growing demand for CLHFs,  
          with facilities in two separate three-story buildings that  
          formerly were military housing.  This arrangement would allow  
          for greater specialization in the types of units provided for  
          shorter -term stays, as well as the ability to create a  
          home-like environment for longer-term clients. McClellan  
          Business Park also supports the CLHF provisions of this bill to  
          help establish contiguous CLHFs within the former McClellan Air  
          Force Base in North Highlands. 

          DPH states, in support of the prior version of the bill (before  
          the CLHF provisions were added), that this bill would enable it  
          to adopt existing federal regulatory standards as the state  
          licensing standards for chronic dialysis clinics, rehabilitation  
          clinics, surgical clinics, and ICF/DD-Ns.  DPH states that it  
          functions as the regulatory agency for approximately 30  
          different types of health care facilities and clinics.  DPH  
          states that it does not have state licensing standards in place  
          for chronic dialysis clinics, rehabilitation clinics, surgical  







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          clinics, and ICF/DD-Ns.  Federal standards for these facilities  
          exist, but DPH lacks the statutory authority to enforce the  
          standards.  In the absence of such authority, DPH states that it  
          may only recommend action by the federal Centers for Medicare  
          and Medicaid Services to stop Medicare/Medicaid program funding  
          if the health care facility is out of compliance.  
          

          JL:nl  9/12/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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