BILL ANALYSIS Ó
AB 601
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ASSEMBLY THIRD READING
AB
601 (Eggman)
As Amended April 23, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
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| | | | |
|----------------+------+--------------------+--------------------|
|HUMAN SERVICES |7-0 |Chu, Mayes, | |
| | |Calderon, Lopez, | |
| | |Maienschein, Mark | |
| | |Stone, Thurmond | |
| | | | |
| | | | |
|----------------+------+--------------------+--------------------|
|APPROPRIATIONS |12-0 |Gomez, Bloom, | |
| | |Bonta, Calderon, | |
| | |Daly, Eggman, | |
| | |Eduardo Garcia, | |
| | |Holden, Quirk, | |
| | |Rendon, Weber, Wood | |
| | | | |
| | | | |
|----------------+------+--------------------+--------------------|
| | | | |
| | | | |
| | | | |
|----------------+------+--------------------+--------------------|
| | | | |
AB 601
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SUMMARY: Expands and further specifies licensure requirements for
Residential Care Facilities for the Elderly.
Specifically, this bill:
1)Specifies that any party applying for a license for a
residential care facility for the elderly (RCFE) that is a firm,
or other entity, shall submit evidence affirming the reputable
and responsible character of any members or shareholders holding
a beneficial ownership interest of at least 10% and of the
person holding operational control of the RCFE in question, as
specified.
2)Requires an applicant for an RCFE license to disclose specified
information including, but not limited to, previous facility
ownership, management, and/or operation.
3)Expands required disclosure of an RCFE license applicant's prior
and present administrative service in or ownership of other
facilities, as specified. Further, specifies that such
facilities can be located in California or any other state and
that disclosure must encompass the past 10 years, as specified.
4)Requires an RCFE license applicant to disclose the applicant's
chief executive officer's, general partner's, or like party's
prior and present administrative service in or ownership of any
health or care facility within the past 10 years, as specified.
5)Expands and specifies required disclosure of an RCFE license
applicant's licensing history to include actions taken in
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California or any other state, and to include any suspension,
probation, or similar disciplinary action taken or in the
process of being taken against a health or care facility, as
specified, or against a license held or previously held by the
applicant or the applicant's chief executive officer, general
partner, or like party, within the past 10 years.
6)Requires an RCFE license applicant to submit evidence of right
of possession of the facility at the time the license is
granted, as specified.
7)Requires the Department of Social Services (DSS) to cross-check
the RCFE license applicant's information regarding facility
ownership, as specified, with the Department of Public Health
(DPH).
8)Removes the requirement that failure of an RCFE license
applicant to cooperate with DSS in completion of the
application, as specified, result in denial of the application
and instead makes such denial permissive.
9)Requires RCFE license application information, as specified, to
be provided to DSS upon initial application and further requires
that any changes in such information be provided to DSS within
30 calendar days of that change.
10)Requires DSS to deny an RCFE license application, and allows it
to subsequently revoke an RCFE license, if the applicant
knowingly made a false statement of fact regarding application
information.
11)Permits DSS to deny an RCFE application or subsequently revoke
an RCFE license if the applicant did not disclose enforcement
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actions, as specified, on the application.
12)Requires DSS, to the extent that its computer system can
accommodate additional RCFE information, to post identifying and
descriptive information, as specified, for licensed providers.
13)Permits DSS to deny an application for an RCFE license if the
applicant has a history of noncompliance with licensure
requirements for RCFEs or other health or care facilities,
applicable state and federal laws, and requirements governing
facility operators, as specified.
14)States that noncompliance by the chief executive officer,
general partner, or like party with RCFE licensure requirements
and implementing regulations, as specified, may be the basis for
license decisions against the owner.
FISCAL EFFECT: According to the Assembly Appropriations
Committee:
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:
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Residential Care Facilities for the Elderly: 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).
Health and safety concerns in RCFEs: Events in recent years have
drawn increased public attention to health and safety issues in
RCFEs. A 2013 series by ProPublica and Frontline profiled
experiences with Emeritus Corp., an assisted living company based
in Seattle that, at the time, ran approximately 500 facilities in
45 states. The series chronicled persistent understaffing,
substandard care, and a lack of required assessments.
Another example drawing significant media and public attention was
an incident occurring in Castro Valley: there, in October of
2013, after DSS began license revocation proceedings for the
Valley Springs Manor RCFE, 19 seniors in need of care were
abandoned by the licensee and all staff, save two. Those two
service staff stayed on over the weekend to provide care for the
residents until, eventually, sheriff's deputies and paramedics
sent the residents to local hospitals. A news article documenting
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the events at the Castro Valley facility stated that, "?records
showed the owners of the facility had a disastrous history running
both nursing homes and other RCFEs over the past several years,
including facilities in Modesto, Oakland and Castro Valley."
Need for this bill: The author states that, "Currently, if
consumers want detailed information about an RCFE, they must drive
to one of the 13 regional or district offices located throughout
the state. Having to drive to obtain public information is not in
the best interest of consumers because they may live hours away
from a regional or district office or may not be able to drive at
all. Additionally, complex ownership structures of RCFEs can lead
a consumer to unknowingly transfer their loved one from one
troubled facility to another without knowing the facilities are
part of the same chain. [This bill] will increase accountability
and transparency of RCFE licensees, as well as make facility
information more accessible to the public so consumers can make
more informed decisions when choosing a facility for a loved one."
Analysis Prepared by:
Daphne Hunt / HUM. S. / (916) 319-2089 FN:
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