BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1382|
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UNFINISHED BUSINESS
Bill No: SB 1382
Author: Block (D)
Amended: 8/22/14
Vote: 21
SENATE HUMAN SERVICES COMMITTEE : 4-1, 4/8/14
AYES: Liu, Berryhill, DeSaulnier, Hancock
NOES: Wyland
SENATE FLOOR : 23-8, 4/21/14
AYES: Anderson, Beall, Berryhill, Block, Corbett, Correa, De
León, DeSaulnier, Gaines, Galgiani, Hernandez, Hill, Hueso,
Jackson, Leno, Lieu, Liu, Padilla, Pavley, Roth, Steinberg,
Torres, Wolk
NOES: Fuller, Huff, Knight, Morrell, Nielsen, Vidak, Walters,
Wyland
NO VOTE RECORDED: Calderon, Cannella, Evans, Hancock, Lara,
Mitchell, Monning, Wright, Yee
ASSEMBLY FLOOR : 55-21, 8/26/14 - See last page for vote
SUBJECT : Residential care facilities for the elderly
SOURCE : Author
DIGEST : This bill increases the initial and annual licensing
fees for the Residential Care Facilities for the Elderly (RCFEs)
for every sized facility and makes related findings and
declarations.
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Assembly Amendments (1) remove references to a 30% increase in
fees; (2) add to the findings and declarations; (3) specify that
the Department of Social Services (DSS) is required to analyze
application fees and annual fees to ensure appropriate amounts
are charged; and (4) require DDS to recommend to the Legislature
that fees be adjusted as necessary.
ANALYSIS :
Existing Law:
1.Establishes the RCFE Act which provides for DSS to license and
regulate RCFEs as a separate category within the existing
residential care licensing structure of DSS.
2.Requires DSS to charge all RCFE applications a fee adjusted by
the size of the facility and capacity for the issuance of a
license.
3.Requires, following initial licensure, DSS to charge an annual
fee on each anniversary of the effective date of the license.
4.Establishes in statute the specific fee amounts according to
facility capacity, for both initial and annual licensing fees.
This bill:
1.Increases the initial and annual licensing fees for RCFEs for
every sized facility.
2.Makes the following findings and declarations:
A. The quality of services provided to residents of an RCFE
is dependent on DSS's ability to continue and enhance its
licensing, regulatory, and disciplinary functions.
B. After years of budgetary cutbacks, it is now imperative
that DSS be revitalized and given adequate resources to
support its mandate to provide consumer protection.
C. Failure to increase the fee amount will result in
continued lack of supervision and regulatory discipline,
which will undermine the care and services for residents.
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D. All revenues generated by fees for licenses computed
under these provisions and used for the purposes for which
they were imposed are not subject to Article XIIIB- related
to government spending limitation- of the California
Constitution.
3.Requires DSS, at least every five years, to analyze initial
application fees and annual fees issued by it to ensure the
appropriate fee amounts are charged.
4.Requires DSS to recommend to the Legislature that fees
established by the Legislature be adjusted as necessary to
ensure that the amounts are appropriate.
Prior Legislation
AB 313 (Monning, Chapter 365, Statutes of 2011) requires each
RCFE to provide residents, their responsible party, and the
local long-term care ombudsman with a 10-day written notice when
DSS commences proceedings to suspend or revoke its license, or a
criminal action relating to health or safety of the residents is
brought against the facility, and makes other changes related to
these actions.
AB 2066 (Monning, Chapter 643 Statutes of 2012) requires RCFEs
to provide a 60-day written notice to residents or the
responsible person within 24 hours following receipt of DSSs
order of revocation. Permits the licensee to secure an
alternative manager, as specified. Requires RCFEs to refund all
or a portion of preadmission fees to residents transferring as
the result of a license revocation, as specified.
SB 897 (Leno, Chapter 376, Statutes of 2011) requires RCFEs to
notify DSS, the Office of the State Long-Term Care Ombudsman and
the facility's residents when the property is subject to
foreclosure or certain other events occur due to financial
distress.
AB 419 (Mitchell, 2011) would have required every community care
facility licensed by DSS to be inspected unannounced at least
once per year using research based, field tested inspection
protocols, as specified. The bill died in the Assembly
Appropriations Committee.
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FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
SUPPORT : (Verified 8/26/14)
California Advocates for Nursing Home Reform
California Long-Term Care Ombudsman Association
California Senior Legislature
Hazel's Army
Stand Up For Rosie
ARGUMENTS IN SUPPORT : According to the author's office,
licensing fees for new and current RCFEs have only marginally
increased three times in the last 20 years, and have been low
since the establishment of the program and have not kept pace
with the need for increased oversight by the DSS. The author's
office states that recent scrutiny of RCFEs has highlighted the
need for increased regulation and supervision to better protect
residents.
According to the California Senior Legislature, RCFEs now serve
more residents with serious health problems and higher levels of
dementia. And although residents' health care needs are
greater, budget restrictions coupled with the historically low
licensing fees RCFEs pay have prohibited DSS from effectively
regulating RCFEs to fully protect current and prospective
residents.
ASSEMBLY FLOOR : 55-21, 8/26/14
AYES: Alejo, Ammiano, Bloom, Bocanegra, Bonilla, Bonta,
Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chávez,
Chesbro, Cooley, Dababneh, Daly, Dickinson, Eggman, Fong,
Frazier, Garcia, Gomez, Gonzalez, Gordon, Gorell, Gray, Hall,
Roger Hernández, Holden, Jones-Sawyer, Levine, Linder,
Lowenthal, Maienschein, Mullin, Nazarian, Nestande, Pan,
Perea, John A. Pérez, V. Manuel Pérez, Quirk, Rendon,
Ridley-Thomas, Rodriguez, Skinner, Stone, Ting, Waldron,
Weber, Wieckowski, Williams, Yamada, Atkins
NOES: Allen, Bigelow, Conway, Dahle, Donnelly, Fox, Beth
Gaines, Gatto, Grove, Hagman, Harkey, Jones, Logue, Mansoor,
Medina, Muratsuchi, Patterson, Quirk-Silva, Salas, Wagner,
Wilk
NO VOTE RECORDED: Achadjian, Melendez, Olsen, Vacancy
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JL:kd 8/27/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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