BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 534| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 SB 534 Page 2 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 SB 534 Page 3 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 SB 534 Page 4 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 SB 534 Page 5 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 SB 534 Page 6 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 **** END ****