BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                         AB 74|
          |Office of Senate Floor Analyses   |                              |
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                                   THIRD READING 


          Bill No:  AB 74
          Author:   Calderon (D)
          Amended:  8/31/15 in Senate
          Vote:     21  

           SENATE HUMAN SERVICES COMMITTEE:  5-0, 6/23/15
           AYES:  McGuire, Berryhill, Hancock, Liu, Nguyen

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 8/27/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           ASSEMBLY FLOOR:  80-0, 6/1/15 - See last page for vote

           SUBJECT:   Care facilities:  regulatory visits


          SOURCE:    Author

          DIGEST:  This bill requires annual unannounced inspections of  
          all licensed child day care centers and family child care homes  
          on and after January 1, 2019.

          ANALYSIS: 
          
          Existing law:

          1)Establishes the California Child Day Care Facilities Act to  
            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 California  
            Department of Social Services (CDSS). (HSC 1596.72 et seq.)

          2)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.  








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            (HSC 1597.30 et seq.)

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

          4)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 CDSS 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))

          5)Increases incrementally, pursuant to SB 79 (Committee on  
            Budget and Fiscal Review, Chapter 20, Statutes of 2015), the  
            inspection frequency for licensed community care facilities as  
            follows:

             a)   Adult residential facilities and adult day programs:

               i)     Beginning January 1, 2017 facilities shall be  
                 inspected no less than every 3 years;
               ii)    Beginning January 1, 2018, facilities shall be  
                 inspected no less than every 2 years;
               iii)   Beginning January 1, 2019, facilities shall be  
                 inspected annually.

             b)   Children's residential facilities and foster family  
               homes:

               i)     Beginning January 1, 2017 facilities shall be  
                 inspected no less than every 3 years;
               ii)    Beginning January 1, 2018, facilities shall be  
                 inspected no less than every 2 years.

             c)   Child care centers and family day care homes:

               i)     Beginning January 1, 2017 day care centers shall be  








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                 inspected at least every three years.

          This bill provides that, beginning January 1, 2019, child care  
          centers and family day care homes shall be inspected annually. 

          Background
          
          Regulatory Oversight:  The Community Care Licensing Division  
          (CCLD) of CDSS provides the primary regulatory oversight over  
          the quality and care in nearly 65,000 licensed community care  
          facilities. Counties are contracted with the department to  
          license an additional 6,100 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. 

          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.

          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 it makes more than 24,000 annual  
          inspections and investigates more than 14,000 complaints  
          involving licensed care. Due to extremely antiquated technology,  








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          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 problem-driven visits" and that "the  
          monitoring of quality of care in RCFEs has become a complaint  
          and problem driven process."  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."

          Recent Budget Actions:  SB 855 (Committee on Budget and Fiscal  
          Review, Chapter 27, Statutes of 2014) among other provisions,  
          included legislative intent language stating, "It is the intent  
          of the Legislature to, over a period of time, increase the  
          frequency of facility inspections resulting in annual  
          inspections for some or all facility types. This year, SB 79  
          (Committee on Budget and Fiscal Review, Chapter 20, Statutes of  
          2015) statutorily increased the frequency of inspections for all  
          facilities as described in the table below.  However, SB 79 does  
          not achieve annual inspections for children's residential care  
          facilities or child care facilities. This bill would expand on  
          the budget action to additionally implement annual inspections  
          for child care facilities, while children's residential  
          facilities would remain subject to inspections every two years. 

                Inspection Frequency Summary: SB 79 compared to AB 74


           ----------------------------------------------------------------- 
          |  Facility   |  Current  | January 1, | January 1, | January 1,  |
          |    Type     |    Law    |    2017    |    2018    |    2019     |
           ----------------------------------------------------------------- 
          |-------------+-----------+------------+------------+------+------|
          |             |           |            |   Budget   |Budget|AB 74 |
          |             |           |   Budget   |            |      |      |








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          |             |           |            |            |      |      |
          |-------------+-----------+------------+------------+------+------|
          |  Childcare  |  5 years  |  3 years   |  3 years   |3     |Annual|
          | facilities  |           |            |            |  years|  ly  |
          |-------------+-----------+------------+------------+------+------|
          | Children's  |  5 years  |  3 years   |  2 years   |2     | N/A  |
          | residential |           |            |            |  years|      |
          |    care     |           |            |            |      |      |
          | facilities  |           |            |            |      |      |
          |-------------+-----------+------------+------------+------+------|
          |  Adult and  |  5 years  |  3 years   |  2 years   |Annual| N/A  |
          | senior care |           |            |            |      |      |
          | facilities  |           |            |            |      |      |
          |-------------+-----------+------------+------------+------+------|
          | Percentage  |    30%    |    30 %    |    20%     | 30%  | N/A  |
          |     of      |           |            |            | (for |      |
          | facilities  |           |            |            |those |      |
          |  randomly   |           |            |            | not  |      |
          |  inspected  |           |            |            |annual|      |
          |  annually   |           |            |            |  ly  |      |
          |             |           |            |            |inspec|      |
          |             |           |            |            | ted) |      |
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          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No

          According to the Senate Appropriations Committee, this bill  
          would incur first-year licensing costs to the Department of  
          Social Services of $13.5 million and $10.5 million (General  
          Fund) annually thereafter.


          SUPPORT:   (Verified8/28/15)


          Advancement Project
          AFSCME
          Alliance 
          California Advocates for Nursing Home Reform
          California Alternative Payment Program Association
          California Assisted Living Association








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          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
          Childcare Development Resources of Ventura County
          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
          Special Needs Network
          State Council on Developmental Disabilities
          United States Department of Defense State Liaison


          OPPOSITION:   (Verified8/28/15)


          None received

          ASSEMBLY FLOOR:  80-0, 6/1/15
          AYES:  Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
            Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,  
            Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,  








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            Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,  
            Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder,  
            Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina,  
            Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,  
            Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez,  
            Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,  
            Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins

          Prepared by:Sara Rogers / HUMAN S. / (916) 651-1524
          8/30/15 19:07:11


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