BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HUMAN SERVICES
                               Senator McGuire, Chair
                                2015 - 2016  Regular 

          Bill No:              AB 74
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          |Author:   |Calderon                                              |
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          |Version:  |April 7, 2015          |Hearing    | June 23, 2015   |
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          |Urgency:  |No                     |Fiscal:    |Yes              |
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          |Consultant|Sara Rogers                                           |
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                    Subject:  Care facilities:  regulatory visits

            SUMMARY
          
          This bill requires the California Department of Social Services  
          (CDSS) to increase the frequency of random unannounced licensing  
          visits of Community Care Facilities, Residential Care Facilities  
          for the Elderly and child day care centers, except Foster Care  
          Homes, as specified, achieving annual inspections for all  
          facilities by January 1, 2018.

            ABSTRACT
          
          Existing law:

          1)Establishes the Community Care Facilities Act, which provides  
            for the licensure and regulation by CDSS of CCFs defined as  
            nonmedical residential and non-residential facilities for  
            mentally ill, developmentally and physically disabled, and  
            children and adults who require care or services. (HSC 1500 et  
            seq.)


          2)Establishes the Residential Care Facilities for the Elderly  
            Act, which provides for the licensure and regulation of RCFEs  
            as a separate category within the existing residential care  
            licensing structure of CDSS. (HSC 1569 et seq.)


          3)Establishes the California Child Day Care Facilities Act to  








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            provide for the licensure and regulation of child day care and  
            family day care facilities as a separate licensing category  
            within the existing licensing structure of CDSS (HSC 1596.72  
            et seq.)


          4)Provides for the CDSS licensure and regulation of small family  
            day care homes serving between six and eight children, as  
            specified, in a residentially zoned and occupied property.  
            (HSC 1597.30 et seq.)


          5)Provides that facilities licensed by CDSS shall be subject to  
            unannounced visits by CDSS and that the department shall visit  
            facilities as often as necessary to ensure the quality of care  
            provided. (HSC 1534, 1569.33, 1597.09 and 1597.55a)


          6)Requires annual unannounced inspections when a licensee 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. (HSC 1534, 1569.33, 1597.09, 1597.55(a))


          7)Requires CDSS to perform random inspections each year on no  
            fewer than 20 percent of facilities not subject to annual  
            inspections. Provides that this percentage shall increase by  
            10 percent if the total citations issued by the department  
            exceeds the previous year by 10 percent. As a result of this  
            trigger, CDSS currently is required to perform random  
            inspections on 30 percent of the facilities not subject to  
            annual inspection. Requires CDSS to visit every facility no  
            less than every 5 years. (HSC 1534, 1569.33, 1597.09, 1597.55  
            (a))


          1)Requires CDSS to make a determination regarding the  
            completeness of an RCFE license application, and to arrange a  
            time for a prelicensure survey if the license is complete.  
            (HSC 1569.20)
          
          This bill:









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          1)Requires CDSS to increase the frequency of unannounced  
            licensing visits of CCFs, RCFEs and child day care centers,  
            except Foster Care Homes, as follows:


                     By July 1, 2016, every facility shall be visited at  
                 least once every three years and establishes in statute  
                 the current practice that 30 percent of all facilities  
                 are required to receive a random unannounced visit each  
                 year.
                     By July 1, 2017 every facility shall be visited at  
                 least once every two years, and 40 percent of all  
                 facilities are required to receive a random unannounced  
                 visit each year. 
                     By July 1, 2018 every facility shall be visited  
                 annually. 


          1)Deletes provisions requiring CDSS to conduct an unannounced  
            visit at least once every five years.


          2)Deletes the requirement that CDSS increase by 10 percent the  
            random sampling of community care facilities if there has been  
            a 10 percent increase in the number of citations the previous  
            year. 


            FISCAL IMPACT
          
          This bill would increase inspection frequency to annual  
          inspections for all facilities except foster care homes.  
          According to an analysis of the Assembly Appropriations  
          Committee, costs associated with these provisions are estimated  
          to be in the range of $20 million, once the frequency of  
          inspections in all facility types is completed annually.


          The Senate and Assembly both have approved the Governor's budget  
          proposal and trailer bill language to increase inspection  
          frequency to once every three years for child care facilities;  
          once every two years for children's residential facilities; and  









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          annual inspections for adult and senior care facilities. Ongoing  
          staffing cost for the budget proposal is estimated at $14  
          million. 

            BACKGROUND AND DISCUSSION


          Purpose of the bill:



          According to the author, California's licensing program performs  
          the essential function of protecting the basic health and safety  
          of children and adults in care. The author states that, due to  
          budget cuts, the frequency of facility visits declined from  
          annually for most facility types (and tri-annually for family  
          child care) to the current standard of every five years. 

          The author writes that recent news reports have highlighted the  
          lack of frequent inspections in facilities across California and  
          the dangers faced by children and the elderly, stating that  
          seniors have suffered broken bones, deadly bed sores, sexual  
          assaults and other injuries in assisted living facilities while  
          children have been victims of neglect, endangerment, unkempt  
          conditions, and injuries. The author states that this bill will  
          work to address these problems by requiring annual unannounced  
          visits for all community care facilities licensed by CDSS, which  
          are fundamental in protecting the health and safety of children  
          and adults receiving care through facility or home-based care. 
          Budget Proposal


          Both the Senate and Assembly have approved the Governor's budget  
          proposal and trailer bill language to incrementally increase  
          inspection frequency such that by January 1, 2019 child care  
          facilities will be visited once every three years; children's  
          residential facilities will be visited once every two years; and  
          adult and senior care facilities will be inspected annually. In  
          contrast, over the same period of time, AB 74 would achieve  
          annual inspections for all three facility types. 
          
               Inspection Frequency: Budget proposal compared to AB 74
          
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          |  Facility   |  Current  | January 1, | January 1, | January 1,  |
          |    Type     |    Law    |    2016    |    2018    |    2019     |
           ----------------------------------------------------------------- 
          |------------+------------+------------+------------+------------+------------+------------+------------|
          |            |            |   Budget   |   AB 74    |   Budget   |   AB 74    |   Budget   |   AB 74    |
          |------------+------------+------------+------------+------------+------------+------------+------------|
          | Childcare  |  5 years   |  3 years   |  3 years   |  3 years   |  2 years   |  3 years   |   Annual   |
          | facilities |            |            |            |            |            |            |            |
          |------------+------------+------------+------------+------------+------------+------------+------------|
          | Children's |  5 years   |  3 years   |  3 years   |  2 years   |  2 years   |  2 years   |   Annual   |
          |residential |            |            |            |            |            |            |            |
          |    care    |            |            |            |            |            |            |            |
          | facilities |            |            |            |            |            |            |            |
          |------------+------------+------------+------------+------------+------------+------------+------------|
          | Adult and  |  5 years   |  3 years   |  3 years   |  2 years   |  2 years   |   Annual   |   Annual   |
          |senior care |            |            |            |            |            |            |            |
          | facilities |            |            |            |            |            |            |            |
          |------------+------------+------------+------------+------------+------------+------------+------------|
          | Percentage |    30%     |    30 %    |    30 %    |    30%     |    40%     |  30% (for  |    100%    |
          |     of     |            |            |            |            |            | those not  |            |
          | facilities |            |            |            |            |            |  annually  |            |
          |  randomly  |            |            |            |            |            | inspected) |            |
          | inspected  |            |            |            |            |            |            |            |
          |  annually  |            |            |            |            |            |            |            |
           ------------------------------------------------------------------------------------------------------- 

          Regulatory Oversight


          The Community Care Licensing Division (CCLD) of CDSS provides  
          the primary regulatory oversight over the quality and care in  
          70,907 licensed community care facilities. Counties are  
          contracted with the department to license an additional 6,222  
          facilities. These facilities fall under 23 separate licensure  
          categories including adoption agencies, foster family homes,  
          RCFEs, group homes, adult residential facilities, adult day  
          care, child day care facilities and others which provide  
          primarily non-medical care and supervision to 1.4 million  
          children and adults in California.<1> 



          ---------------------------
          <1> http://ccld.ca.gov/res/pdf/countylist.pdf  










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          Prior to January 2004, CCLD was required to conduct at least  
          annual visits for all licensed community care facilities within  
          its jurisdiction. However, in 2003 under a budget trailer bill  
          enacting substantial budget cuts due to the ongoing deficit,  
          this statute was changed to require that only those facilities  
          which warrant close monitoring because of a poor history of  
          compliance or are federally required to be inspected annually  
          are subject to annual visits (about 10 percent of facilities).  
          The trailer bill required that 10 percent of the remaining  
          facilities not subject to annual inspection would be randomly  
          inspected each year and that no facility shall be visited less  
          than once every five years.<2> 


          The bill included a trigger increasing the percentage of random  
          inspections by 10 percent if total citations increased over the  
          prior year by 10 percent or more. Later statute was changed to  
          impose a 20 percent random inspection standard. Today, as a  
          result of the trigger, 30 percent of facilities are randomly  
          selected for inspection each year. 


          Currently, CDSS reports there are approximately 500 licensing  
          analysts monitoring the care of more than 66,000 licensed  
          facilities. In California, 40 counties contract to provide  
          licensing oversight to foster family homes and a handful of  
          counties contract to license family child care homes. The  
          department reports it makes more than 24,000 annual inspections  
          and investigates more than 14,000 complaints involving licensed  
          care. Due to extremely antiquated technology, the department is  
          unable to provide detailed information on the nature of those  
          complaints or how they were resolved. 


          Impact of reduced visit frequency


          A 2008 study published by the California Health Care Foundation  
          investigated the impact on the truncated frequency of visits on  
          RCFEs, and found that "routine visits were replaced with  
          significant increases in the number of complaint and  

          ---------------------------


          <2> AB 1752 (Committee on Budget) Chapter 225, Statutes of 2003








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          problem-driven visits" and that "the monitoring of quality of  
          care in RCFEs has become a complaint and problem driven  
          process." <3>  CCL has repeatedly sought to restore the cuts  
          made to licensing, arguing that the cuts to staff and resulting  
          changed protocols "have put client health and safety at risk. By  
          not consistently inspecting facilities, or inspecting a facility  
          only as the result of a complaint, CCL (analysts) have lost  
          rapport with licensees, which in turn has not been conducive to  
          helping clients in those facilities."<4>


          Related 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.


          SB 895 (Corbett, Chapter 704, Statutes of 2014) initially  
          included provisions pertaining only to RCFEs that would have  
          required three-year inspections by July 1, 2016, two-year  
          inspections by July 1, 2017, and annual inspections by July 1,  
          2018 and removed the provisions requiring a certain percentage  
          of facilities be inspected each year. Those provisions were  
          removed from the bill in the Assembly Appropriations Committee.


          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.

          ---------------------------
          <3> Inspection Visits in Residential Care Facilities for the  
          Elderly. C. Flores, A. Bostrom, and R. Newcomer. California  
          Health Care Foundation, 2008.


          <4> Department of Social Services spring finance letter CCLD-1,  
          2011-12










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          AB 419 (Mitchell, 2011) would have required CDSS 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.

            COMMENTS


          Staff recommends a technical amendment to strike provisions in  
          current law calling for a 10 percent increase in the random  
          sample of inspections the following year, if total citations  
          increase by 10 percent, since the provisions of this bill would  
          implement a 10 percent increase in random inspections the  
          following year and achieve 100% random inspections the year  
          following, regardless of this provision.


          Specifically, staff recommends the following amendments:


          Page 6, lines 5-10, strike inclusive.
          Page 7, lines 30-35, strike inclusive.
          Page 8, lines 31-36, strike inclusive.


            PRIOR VOTES
          
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          |Assembly Floor:                                            |80 - |
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          |Assembly Appropriations Committee:                         |17 - |
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          |Assembly Human Services Committee:                         |7 -  |
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            POSITIONS
                                          









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          Support:  
               Advancement Project
               AFSCME
               Alliance 
               California Advocates for Nursing Home Reform
               California Alternative Payment Program Association
               California Assisted Living Association
               California Childcare Resource & Referral Network 
               California Commission on Aging
               California Communities United Institute 
               California Continuing Care Residents Association
               California Long-Term Care Ombudsman Association.
               California Retired Teachers Association
               California State PTA
               California State Retirees
               Childcare Alliance of Los Angeles
               Children Now
               City of Burbank
               City of Fountain Valley
               Community Action Partnership of Madera County 
               Community Resources for Children 
               Consumer Federation of California
               County of San Bernardino
               County of San Diego
               Del Norte Child Care Council
               Early Edge California
               First 5 California 
               First 5 LA
               LAUP
               Leading Age California
               League of California Cities
               National Association of Social Workers
               Office of the State long-Term Care Ombudsman
               Solano Family and Children Services
               State Council on Developmental Disabilities
               United States Department of Defense
          
          
          Oppose:   
               None received.
                                      -- END --
          











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