BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 74


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          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









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             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  








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            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:   









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          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  








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          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  








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          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  








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          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  








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          (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