BILL ANALYSIS Ó AB 74 Page 1 Date of Hearing: March 24, 2015 ASSEMBLY COMMITTEE ON HUMAN SERVICES Chu, Chair AB 74 (Calderon) - As Introduced January 5, 2015 SUBJECT: Care facilities: regulatory visits SUMMARY: Phases in annual unannounced inspection visits in community care facilities, residential care facilities for the elderly, child day care centers, and family day care homes licensed by the Department of Social Services. Specifically, this bill: 1)Requires the Department of Social Services (DSS) to increase the frequency of annual unannounced licensing visits of Community Care Facilities, Residential Care Facilities for the Elderly, licensed child day care centers and family day care homes per the following: a) By July 1, 2016, requires DSS to conduct annual unannounced visits to at least a 30% random sample of facilities not otherwise subject to an annual inspections to address compliance issues or meet federal funding requirements, and requires that facilities are visited at least once every three years; b) By July 1, 2017, requires DSS to conduct annual unannounced visits to no less than a 20% random sample of facilities not otherwise subject to an annual inspection, and requires that facilities are visited at least once every two years; and AB 74 Page 2 c) Requires DSS to conduct at least one annual unannounced visit in each licensed facility on and after July 1, 2018. 1)Deletes provisions requiring DSS to conduct an unannounced visit at least once every five years. EXISTING LAW: 1)Establishes the California Community Care Facilities Act (CCFA) to provide a comprehensive statewide service system of quality community care for people who have a mental illness, a developmental or physical disability, and children and adults who require care or services by a facility or organization. (H&S Code 1500 and 1501) 2)Defines a "Community care facility" (CCF) as a facility, place, or building maintained and operated to provide nonmedical residential care, day treatment, adult day care, or foster family agency services for children, adults, or children and adults, including, but not limited to, individuals with cognitive or physical disabilities, as specified, and abused or neglected children. (H&S Code 1502) 3)Authorizes DSS to license facilities or organizations that provide services under the jurisdiction of the CCFA, including, residential facilities, as defined, adult day programs, therapeutic day services facilities, foster family agencies and homes, social rehabilitation facilities, community treatment facilities, full-service adoption agencies, noncustodial, adoption agencies, transitional shelter care facilities, and transitional housing placement providers for foster youth. (H&S Code 1520) 4)Establishes the California Residential Care Facility for the Elderly (RCFE) Act, which requires facilities that provide personal care and supervision, protective supervision, or health related services for persons 60 years of age or older AB 74 Page 3 who voluntarily choose to reside in those facilities to be licensed by DSS. (H&S Code 1569 et seq.) 5)Establishes the California Child Day Care Facilities Act to provide a comprehensive, quality system for licensing child day care facilities to ensure that working families have access to healthy and safe child care providers and that child care programs contribute positively to a child's emotional, cognitive, and educational development, and are able to respond to, and provide for, the unique characteristics and needs of children. (H&S Code 1596.70 et seq.) 6)Subjects all licensed community care facilities to unannounced inspections by DSS, with certain exceptions in foster family homes, as specified. (H&S 1534, 1569.33, 1597.09 and 1597.55a) 7)Provides that facilities licensed by DSS shall be subject to unannounced visits by DSS and that the department shall visit facilities as often as necessary to ensure the quality of care provided. (H&S 1534, 1569.33, 1597.09 and 1597.55a) 8)Requires annual unannounced inspections when a license is on probation, when required by the terms of a facility compliance plan, when an accusation is pending, when required for federal financial participation (CCFs and RCFEs), or to verify that a person who has been ordered out of the facility is no longer present. (H&S 1534, 1569.33, 1597.09 and 1597.55a) 9)Requires DSS to perform random inspections each year in no fewer than 20% of facilities not subject to annual inspections. Provides that this percentage shall increase by 10% if the total citations issued by the department exceeds the previous year by 10%. Requires DSS to visit every facility no less than every 5 years. (H&S 1534, 1569.33, 1597.09 and 1597.55a) FISCAL EFFECT: Unknown COMMENTS: AB 74 Page 4 Background: The Community Care Licensing Division (CCLD) of the Department of Social Services is responsible for the regulatory and licensing activities related to residential and non-residential programs. CCLD is charged with providing preventative and protective services to people in "community care facilities"; 24-hour senior, adult, and child residential care homes, as well as non-residential programs (e.g., child care centers and adult day programs). In the facilities it licenses, CCLD is responsible for conducting facility inspections, pursuing administrative actions when licensing standards are not met and assisting providers to maintain compliance with licensing regulations. CCLD also conducts criminal background checks of licensees, employees and all adults providing direct services to, or having routine contact with, clients in care. According to CCLD statistics, as of June, 2014, there were nearly 1.4 million children and adults served in 76,416 licensed residential and non-residential programs overseen by CCLD (these include 8,700 foster family homes and family child care homes licensed by counties through contracts with DSS). Facility inspection priorities: Prior to 2003, the required frequency of unannounced licensing visits was annually for most facility types (and tri-annually for family child care). However, due to the state's ongoing budget deficit and declining revenues, it was deemed necessary to find ways to reduce costs. As a result, CCLD is now required to conduct unannounced visits annually only when a facility is experiencing program compliance problems, or when it is required as a condition of federal funding participation. For all other facilities not subject to annual inspections, CCLD is required to conduct comprehensive compliance inspections of a 20% random sample of facilities each year, with no facility being visited less than once every five years. CCLD also conducts investigations when a complaint is filed against a facility, and there are additional inspection requirements for new facilities or when changes occur to the license, which helps to ensure that a new licensee starts off correctly. However, in most cases, five years could pass between CCLD inspection visits AB 74 Page 5 at a residential facility, often jeopardizing resident or client safety. Today, according to DSS, there are approximately 500 licensing program analysts responsible for conducting inspections in licensed community care facilities. It is clear that the ongoing budget deficit of the last ten years has had a significant impact on DSS' ability to monitor the health and safety of residents and clients of community care facilities throughout the state. An increase in oversight responsibility for certain mental health facilities, staff reductions and vacancies, and on-again off-again work furloughs and hiring freezes have all severely reduced the department's administrative capacity. Although this does not clear the state of its responsibility to ensure community care facilities' compliance with statutory program requirements, it does demonstrate the significant challenges DSS faces in ensuring that children, adults and seniors in need of care and supervision are not put at risk. Governor's budget proposal: The Governor's 2015-16 January budget proposal included increased funding and 28.5 positions within CCLD to address a facility complaint backlog and to expand training and technical assistance. This proposal for licensing positions was accompanied by a plan to phase-in increased inspection frequency to once every three years by 2017, for all facilities, once every two years by 2018 for all facility types except child care, and annually by 2019 for adult day care and residential care facilities for the elderly. Need for this bill: Unannounced licensing visits are of fundamental importance in protecting the health and safety of children and adults receiving care through facility- or home-based care in the community. They ensure that basic health and safety requirements are being met and provide opportunities for increased technical assistance to programs, enhanced information sharing, the development of best practices and, overall, an improvement in the quality of life for clients of care facilities. Additionally, regular and frequent unannounced inspection visits allow for state and local agencies to provide relevant and up-to-date information to the public on the quality of care AB 74 Page 6 being provided to consumers. According to Child Care Aware of America, a study conducted by the National Bureau of Economic Research in Florida found that frequent inspections, which were made available to the public, "increased the quality of the inspections and the productivity of the inspectors" and resulted in an increased number of inspections that were carried out more consistently. Further, in a 2010-11 Spring Finance Letter, DSS stated that "regular and frequent inspections of facilities improve client health and safety as evidenced by reductions in the percentage of the more serious imminent risk to total citations." DSS went on to note that increased annual inspections result in better quality of care and a smaller risk to the health and safety of clients. According to the author, "Increasing the frequency of licensing visits will demonstrate that California is serious about addressing the deficiency in our inspection process for Community Care Facilities and will put California on par with the inspection procedures of other states. Currently we have a complaint based oversight system that is reactive to issues in our facilities instead of being proactive to prevent issues or fix and stop these issues before they become deadly. By at least having a licensing program analyst, or inspector, in these facilities, boots on the ground, once a year we will be able to be proactive and no longer be operating under a complaints based system. Facilities are in need of frequent inspections because of the vulnerability of the clients these facilities serve and it is our job to make sure these individuals are being properly taken care of." Recommended amendments: As introduced, this bill requires that the phase-in toward annual unannounced CCLD visits begins with an increase to a 30% random sampling of facilities not otherwise necessitating annual inspections, and a visit no less than once every three years, by July 1, 2016. This bill goes on to require that facilities are visited no less than once every two years by July 1, 2017, but only requires CCLD to conduct annual inspections in a 20% random sampling of facilities not otherwise necessitating annual inspections to meet that goal. In order to gradually increase the number of annual unannounced inspections, committee staff recommends that the 20% sampling of AB 74 Page 7 facilities in which annual unannounced visits are required to take place on or before July 1, 2017 be replaced with a 40% sampling in the following sections of the bill in print: Health & Safety Code Sections 1534(a)(2)(D)(2), 1569.33(c)(3), 1597.09(c)(3), and 1597.55a(c)(3). PRIOR LEGISLATION: AB 1454 (Calderon), 2014, was substantially similar to this bill. It would have phased in annual licensing inspection visits by July 1, 2017 and deleted language requiring inspection visits at least once every 5 years. It died on the Senate Appropriations Suspense File. AB 364 (Calderon), 2013, required CCL to conduct licensing inspections in most community care facilities at least once every two years. It died on the Assembly Appropriations Suspense File. AB 419 (Mitchell), 2011, would have required DSS to conduct an unannounced inspection of a care facility, using prescribed inspection protocols, at least once each year and as often as necessary to ensure the quality of care provided, except for family day care centers, which the department would have been required to inspect at least once every 2 years. It died on the Assembly Appropriations Committee Suspense File. DOUBLE REFERRAL . This bill has been double-referred. Should this bill pass out of this committee, it will be referred to the Assembly Committee on Aging and Long-Term Care. REGISTERED SUPPORT / OPPOSITION: Support American Federation of State, County and Municipal Employees AB 74 Page 8 (AFSCME) AFL-CIO California Commission on Aging Advancement Project California Alternative Payment Program Association (CAPPA) California Assisted Living Association (CALA) California Child care Resource & Referral Network California Communities United Institute California Retired Teachers Association (CalRTA) Child Care Alliance of Los Angeles Child Development Resources of Ventura County Community Action Partnership of Madera County (CAPMC) Community Resources for Children Del Norte Child Care Council FIRST 5 Santa Clara Leading Age California Solano Family & Children's Services Special Needs Network (SNN) Opposition None on file. Analysis Prepared by: Myesha Jackson/HUM. S./(916) 319-2089