BILL ANALYSIS Ó
AB 601
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Date of Hearing: May 13, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
601 (Eggman) - As Amended April 23, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill expands the scope and further specifies the
information that prospective Residential Care Facilities for the
Elderly (RCFE) licensees must provide to the Department of
Social Services (DSS). Additionally, this bill requires DSS to
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cross-check the RCFE licensee applicant information regarding
facility ownership with the Department of Public Health (DPH).
FISCAL EFFECT:
1)Unknown, potentially moderate costs (GF) to DSS to
"cross-check" information against DPH information, dependent
on the process (manual vs. automated) utilized to cross-check
information.
2)Minor costs (GF) to DSS for automation and staff training.
3)Cost pressure (GF) to DSS to obtain available technology that
would enable posting of identifying and descriptive
information for licensed providers on its website.
COMMENTS:
1)Purpose. According to the author, in recent years, there has
been notable increase in corporate ownership of RCFEs.
Ownership of a facility by one business and operation of it by
another, along with other complex ownership structures, can be
confusing for consumers and their families. This bill could
assist consumers by requiring RCFE license applicants to
disclose their operational history under facility licenses,
and by requiring DSS to cross-check applicant, licensee, and
owner information with the Department of Public Health, which
is responsible for licensing Skilled Nursing Facilities,
Intermediate Care Facilities, and others.
Confusion about RCFEs can be compounded by the relative lack
of facility and licensing information made available online by
DSS. This bill will assist consumers by requiring DSS, to the
extent possible using its computer system, to post the
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licensed capacity of the facility, whether a facility is
permitted to provide hospice care services, whether a facility
has a special care unit or program for people with Alzheimer's
disease or other dementias and has a delayed egress or secured
perimeter system in place, along with more detailed ownership
and licensee information.
2)Background: RCFEs, sometimes referred to as "assisted living
facilities," provide housing, care, supervision, and
assistance with activities of daily living to individual ages
60 and older, as well as individuals under the age of 60 with
compatible needs. RCFEs differ from Skilled Nursing
Facilities (SNFs) in that RCFEs are considered a housing
alternative, while SNFs are considered a medical facility;
however, incidental medical services may be provided in RCFEs
under special care plans. RCFE residents require varying
levels of care and services, and RCFEs can vary widely in the
services offered. Costs can range widely as well; in
California, the monthly cost for a one-bedroom single
occupancy unit can range from $700 to $10,650, with the median
monthly cost at $3,750.
As of June 30, 2014, there were 7,474 RCFEs licensed in
California, with the capacity to serve 146,955 residents.
RCFEs can range in size from six beds to over 100 beds, and
are licensed by DSS's Community Care Licensing Division
(CCLD).
3)Related Legislation. AB 927 (McCarty), 2015, pending in the
Assembly Health Committee, would expand certain requirements
regarding disclosure of ownership and governance information
by SNF and Intermediate Care Facility license applicants, and
adopt related provisions.
4)Prior Legislation. AB 1571 (Eggman), 2014, was similar to this
bill, and also would have required DSS to provide information
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on RCFE facilities on it Internet Web site. It was held on
the Senate Appropriations Committee Suspense File.
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081