BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 927


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          Date of Hearing:  January 12, 2016


                            ASSEMBLY COMMITTEE ON HEALTH


                                  Rob Bonta, Chair


          AB 927  
          McCarty - As Amended January 4, 2016


          SUBJECT:  Health facilities: nursing homes.


          SUMMARY:  Establishes the Nursing Home Ownership Disclosure Act  
          of 2016 within the Department of Public Health (DPH).  Imposes  
          additional transparency and suitability requirements for  
          ownership and licensure of skilled nursing facilities (SNFs) and  
          intermediate care facilities (ICFs).  Expands disclosure  
          requirements applicants for ownership or governance of ICFs and  
          SNFs must provide to DPH.  Specifically, this bill:



          1)Requires DPH to deny the application of any ICF and SNF  
            applicant who fails to cooperate with DPH in the completion of  
            an application for licensure of a specified health facility.   
            Defines "failure of an applicant to cooperate" as the  
            inability of the applicant to provide the information required  
            by existing law and DPH regulations, the inability to provide  
            the information in the form requested by DPH, or both.
          
          2)Expands the requirements DPH must investigate to determine if  
            an applicant has demonstrated a pattern and practice of  
            violations of state or federal laws and regulations, and if  
            the applicant has the ability to comply with existing law, to  
            all applicants for licensure of SNFs and ICFs.








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          3)Requires DPH to confirm an applicant is in good standing with  
            the appropriate licensing agency and obtain historical  
            information on any disciplinary action taken against an  
            applicant, if the applicant is a professional licensed by the  
            State of California.



          4)Requires applicants for licensure of SNFs and ICFs to disclose  
            additional information to DPH including the following:



             a)   Information regarding applicants who have held a direct  
               or indirect beneficial ownership interest of 5% or more in  
               any other SNF or ICF in California or any other state, or  
               in any residential care facility (RCF);

             b)   Existing relationships of an applicant's parent  
               organizations, subsidiaries, management or parent  
               organizations of management companies with any other SNFs  
               or ICFs within the United States, any community care  
               facility (CCF), or any RCF; and,



             c)   History of compliance or noncompliance with applicable  
               state and federal laws or regulations, as specified.



          5)Clarifies that a person, as defined, is prohibited from  
            acquiring a direct or indirect beneficial interest of 5% or  
            more in specified business structures without prior written  
            approval from DPH.
          
          6)Requires DPH to deny approval of a license application for  
            individuals who maintain 5% or greater direct or indirect  








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            beneficial interest in licensees, as defined, of a SNF, ICF,  
            CCF, or RCF for the elderly at a time during the seven-year  
            period prior to the application in which that facility  
            committed one or more of the following violations:


          
             a)   Issuance of a temporary suspension or revocation of a  
               facility's license by DPH;
             
             b)   Involuntary termination of a facility's Medicare or  
               Medi-Cal certification; or,


             
             c)   Appointment of a court-ordered receiver.


             
          7)Deletes existing criteria for DPH's authorization to deny  
            approval of a license application of a SNF or ICF, and  
            establishes new conditions for denial for specified persons,  
            if those actions have occurred within the seven-year period  
            prior to the application.
          
          8)Requires DPH to provide additional information on long-term  
            care (LTC) facilities through the consumer information service  
            system (CISS).


          
          9)Requires DPH to make current written copies of the LTC  
            facility profiles available to the public through its district  
            offices.


          
          10)Defines the following:









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             a)   "Beneficial interest" means the interest held by any  
               person, including a private equity firm and real estate  
               investment trust, that acquires an interest in any entity,  
               including, but not limited to, any firm, association,  
               organization, partnership, business trust, investment  
               trust, corporation, or limited liability company, that is  
               licensed to operate a SNF or ICF by assuming that entity's  
               debt;
             
             b)   "Indirect beneficial interest" means the interest held  
               by any person, including a private equity firm and real  
               estate investment trust that provides capital or assets to  
               a SNF or ICF, in exchange for a share of 5% or more of the  
               facility's gross income or profits; and,


             
             c)   "Management company" means any company or entity that  
               has assumed operational or managerial control over the  
               facility or who directly or indirectly conducts the  
               day-to-day operations of the facility either under contract  
               or through some other arrangement.



          EXISTING LAW:  
          
          1)Requires an applicant for licensure or management of a health  
            facility, including specified hospitals, SNFs, or ICFs, that  
            has not filed an application for license to operate that  
            facility to file an application with DPH with specified  
            information regarding the applicant and the health facility in  
            which the applicant seeks licensure or approval of management.
          
          2)Requires DPH to consider any available information, as  
            specified, regarding whether or not an applicant has  
            demonstrated a pattern and practice of violations of state or  








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            federal laws and regulations, and whether the applicant has  
            the ability to comply with existing law, when considering if  
            an applicant is qualified for licensure of a general acute  
            care hospital, an acute psychiatric hospital, or a special  
            hospital.
          
          3)Authorizes DPH to require an applicant for licensure of a  
            general acute care hospital, an acute psychiatric hospital, or  
            a special hospital to provide any documentation or information  
            DPH deems necessary for the proper administration and  
            enforcement of existing laws regarding licensure.
          
          4)Requires each applicant seeking licensure to operate a SNF or  
            ICF to disclose to DPH information regarding ownership,  
            management, and governance of other SNFs, ICFs, or CCFs, as  
            specified.

          5)On and after January 1, 1990, prohibits a person, as defined,  
            from acquiring a beneficial interest of 5% or more in any  
            corporation or partnership licensed to operate a SNF or ICF,  
            or in any management company under contract with a licensee of  
            a SNF or ICF, without prior written approval of DPH.
          
          6)Authorizes DPH to deny the license application of a person, as  
            defined, with a beneficial interest of 5% or more in a  
            licensee of, or in a management company under contract with a  
            licensee of, a SNF, ICF, CCF, or RCF for the elderly for any  
            of the following reasons, unless otherwise specified:
          
             a)   Its license was suspended or revoked due to violations  
               of existing law;

             b)   A court-ordered receiver was appointed; or,
             
             c)   A final Medi-Cal decertification action was taken by the  
               federal Centers for Medicare and Medicaid Services (CMS);
             
          7)Prohibits DPH from denying an application for licensure of a  
            SNF or ICF without first providing the applicant with a  








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            written notice of grounds for the proposed denial of  
            application, and an opportunity to submit additional evidence  
            in opposition to the proposed denial.
          
          8)Exempts banks, trust companies, financial institutions, title  
            insurers, controlled escrow companies, underwritten title  
            companies to which a license is issued in a fiduciary  
            capacity, and the directors of specified nonprofit  
            corporations from specified disclosure requirements and denial  
            criteria when applying for licensure of a SNF or ICF.
          
          9)Requires DPH to develop and establish a CISS to provide  
            updated and accurate information to the general public and  
            consumers regarding LTC facilities in their communities.

          10)Requires DPH to interface the CISS with its Automated  
            Certification and Licensure Information Management System,  
            wherever feasible.

          11)Declares the intent of the Legislature that DPH, in the  
            establishment and development of the CISS, to maximize the use  
            of available federal funds.

          12)Requires DPH to ensure the confidentiality of personal and  
            identifying information of residents and employees and  
            prohibits the disclosure of such information through the CISS.

          FISCAL EFFECT:  This bill has not yet been analyzed by a fiscal  
          committee.


          COMMENTS:





          1)PURPOSE OF THIS BILL.  According to the author, as owners of  
            LTC facilities use increasingly complex forms of ownership, it  








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            has become virtually impossible to determine if the owner of  
            one particular home has significant complaints against them at  
            a different facility, despite many efforts to highlight the  
            problem and uncover the information.  The author asserts it is  
            incumbent upon the Legislature to ensure the protection of  
            California's seniors, who are often in their most fragile and  
            vulnerable state in nursing home settings.  The author  
            contends it is in the best interest of the state to protect  
            consumers and prevent existing owners with poor track records  
            from opening new LTC facilities, and that there is currently a  
            lack of transparency from DPH.  The author concludes this bill  
            will help establish additional oversight and transparency for  
            nursing home ownership by strengthening suitability  
            requirements of owners, clarifying DPH's duty to review and  
            approve ownership changes, and make ownership information more  
            transparent to the public.
          
          2)BACKGROUND.  According to the Department of Finance, the  
            fasting growing cohort in California's population is 65 to  
            74-year olds due to baby boomers reaching that milestone.   
            This group is expected to grow by 25% by 2019.  With this  
            rapid growth rate and a quickly changing healthcare and social  
            services system, the regulatory challenges for the state are  
            anticipated to grow in complexity.
          
             a)   DPH's Licensing and Certification (L&C) Program.  DPH's  
               L&C Program is the DPH's largest program and is responsible  
               for the regulatory oversight of over 7,500 licensed health  
               care facilities, 2,500 of which are LTC facilities such as  
               SNFs and ICFs.  Additionally, the federal CMS contracts  
               with L&C to evaluate facilities accepting payments from  
               Medicare and Medi-Cal, the state's Medicaid program, to  
               ensure that they meet federal requirements.  The L&C  
               Program evaluates health care facilities for compliance  
               with state and federal laws and regulations through a  
               variety of required tasks, including initial and  
               re-licensure surveys, federal certification surveys, and  
               investigations of complaints and entity-reported incidents  
               (ERIs).








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             b)   SNF and ICF Licenses and Ownership.  According to the  
               Office of Statewide Health Planning and Development, most  
               SNF and ICF facilities are run as for-profit enterprises;  
               about 13% are not-for-profit.  According to DPH, there is  
               an average of 34 individuals associated with SNF licensing  
               application, including owners, board members, the director  
               of nursing, and the administrator.  As of May 2015, DPH  
               stated that since 2008, one SNF or ICF license has been  
               suspended, 61 decertification actions have been taken, and  
               six certification termination acts were initiated where the  
               facility was able to return to compliance.  Between July 1,  
               2007 and March 15, 2015, a total of 549 ICF or SNF  
               facilities have been issued at least one Class AA or A  
               citation.  A class AA citation is a violation that DPH has  
               determined to have been a direct proximate cause of death  
               of a patient or resident of a LTC facility.  A class A  
               citation is a violation that DPH has determined presents  
               either imminent danger that death or serious harm to the  
               patients or residents, or that there is substantial  
               probability that death or serious physical harm to patients  
               or residents.

             c)   Nursing Homes in the Media.  In the summer of 2013, The  
               Sacramento Bee published a three-part series of articles  
               entitled "Nursing Homes Unmasked," highlighting the  
               challenges in determining ownership of nursing home  
               facilities in California, and the varying records of  
               performance of those facilities.  The Sacramento Bee  
               reported that approximately half of California's 120,000  
               licensed beds are controlled by 25 for-profit nursing home  
               chains; 10 of them performed below statewide averages in  
               2013 in more than half of the examined quality-of-care  
               categories, which measure frequency of incidences such as  
               falls and infections.  Furthermore, the articles stated  
               that 20 of the top 25 chains fell below state averages in  
               at least three out of five staffing measures.
             
             d)   DPH Complaints and Investigations.  Investigations of  








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               nursing home complaints and ERIs are carried out pursuant  
               to both federal and state mandates.  Current law requires  
               DPH to make an onsite investigation of a complaint against  
               a nursing home within 10 working days of receipt.  If the  
               complaint is an immediate jeopardy complaint, meaning that  
               it involves a threat of imminent danger of death or serious  
               bodily harm, DPH is required to make an onsite  
               investigation within 24 hours of receipt.  However, current  
               law does not specify the length of time required to  
               complete complaint investigations. 

             Longstanding concerns and complaints about the manner in  
               which the L&C program managed complaint and ERI  
               investigations have persisted for many years.  In 2006, the  
               Legislative Analyst's Office reported that only one-half of  
               all complaints not classified as immediate jeopardy were  
               investigated within the required 10-day timeframe.   
               Further, in 2007, the California State Auditor issued a  
               report finding that the Department of Health Services (now  
               referred to as DPH) struggled to initiate and close  
               complaint investigations and communicate with complainants  
               in a timely manner.  In July 2012, CMS sent a letter to DPH  
               expressing concern with its ability to meet many of its L&C  
               responsibilities, including timely complaint  
               investigations.  The state was in jeopardy of losing $1  
               million in federal funds if certain benchmarks were not  
               met.  Ultimately, $138,123 in federal funding was withheld.
             
             e)   State Auditor Report.  In October 2014, the California  
               State Auditor released a report regarding the L&C Program  
               citing ineffective management of nursing home complaint  
               investigations.  The key findings of that report included:
             
               i)     As of April 2014, there were more than 11,000 open  
                 complaints and ERIs backlogged, many of which had  
                 relatively high priorities, and had remained open for an  
                 average of nearly a year;

               ii)    Despite backlogs and lengthy investigations, L&C  








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                 does not have any policies or procedures to ensure prompt  
                 completion of complaint/ERI investigations and in many  
                 cases did not meet statutory timeframes for initiating  
                 complaint investigations;

               iii)   There was no staffing analysis for any of its  
                 district offices to determine how much staff is needed to  
                 complete workload.  Most of the L&C district offices  
                 visited by audit staff reported not having the resources  
                 needed to investigate complaints properly, and having to  
                 work overtime in order to try to keep pace with workload;  
                 and,

               iv)    DPH failed to report all statutorily required  
                 information to the Legislature in certain years by  
                 omitting information related to the timeliness of  
                 complaint investigations in their 2012 and 2013 reports  
                 to the Legislature.

               DPH responded that it agreed with the majority of the  
               recommendations in the State Auditor's report.  However,  
               DPH disagreed with the suggested implementation of various  
               timelines, such as establishing timeframes in which to  
               process and complete complaint and ERI investigations.   
               According to the State Auditor's most recent update, out of  
               18 recommendations suggested by the State Auditor in the  
               report, only four have been fully implemented to date.

          3)SUPPORT.  The California Advocates for Nursing Home Reform, a  
            cosponsor of this bill, states this bill makes necessary  
            reforms that are critically needed to protect nursing home  
            residents from abuse, including mistreatment and death due to  
            neglect by operators.  The Office of the San Diego County  
            District Attorney, also a co-sponsor of this bill, contends  
            the lapse of oversight at DPH and the lack of accountability  
            by nursing home owners and operators have left many California  
            elders in grave danger.  The sponsors state it is time for  
            California to take strong steps to begin monitoring nursing  
            home chains operating in the state to keep those unfit from  








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            acquiring nursing homes or expanding their operations, and to  
            provide increased transparency to consumers and patients.

            The California Long-Term Care Ombudsman Association supports  
            this bill, stating this bill is a meaningful step toward  
            improving transparency and consumer protections for SNF  
            residents; local ombudsman representatives are often unable to  
            identify the owners of SNFs are frequently discouraged to  
            learn after working to assist a resident in transferring from  
            a facility because of "consistently unsatisfactory care  
            issues" only to discover later the resident has been  
            transferred to another facility by the same operators but  
            under a different corporate name.  Supporters of this bill  
            assert that under the current system, a family member can  
            unknowingly transfer a loved one from one troubled nursing  
            home facility to another without even knowing that the  
            facilities are part of the same chain.  Supporters also state  
            that this bill will strengthen California law governing  
            acquisition of nursing homes, suitability requirements for  
            operators, and disclosure to the public on who owns nursing  
            homes.


            
          4)OPPOSE UNLESS AMENDED.  LeadingAge California opposes this  
            bill unless it is amended, arguing that DPH should maintain  
            the discretion to deny an application, and that mandating the  
            denial of an application based solely on specific enforcement  
            actions would limit DPH's ability to determine the extent to  
            which an individual was actually culpable for a deficient  
            practice in the facility's operations.  LeadingAge California  
            further contends some provisions of this bill are too broad  
            and would leave potential applicants who own or manage even  
            high-performing facilities at risk for denial.  The California  
            Association of Health Facilities (CAHF) also opposes this bill  
            unless amended, stating that removing DPH's discretion on  
            license applications, and requiring mandatory denial of  
            experienced operators under certain conditions will have a  
            negative impact on California.  CAHF further argues that  








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            California should not prohibit experienced operators from  
            applying to own and operate new facilities, when the specifics  
            of both the purchasing company and the company being acquired  
            are very likely unique and should be looked at in isolation,  
            an option that DPH currently has the authority to take action  
            on.  CAHF contends that consolidation is a current reality  
            within the healthcare system, and because California is not  
            increasing its bed supply in LTC facilities, ensuring the  
            state can maintain the supply with experienced and skilled  
            operators when facilities close is critical to dealing with  
            consolidation.
          
          5)CONCERNS.  The California Hospital Association submitted a  
            letter of concern to the Committee regarding a previous  
            version of this bill, stating that it supports transparency  
            and the appropriate oversight of applications for SNF  
            ownership and operation, however that the provisions in the  
            previous version of this bill may discourage quality  
            providers, including hospitals, health systems, and others, to  
            acquire and establish SNFs to meet the need of the individuals  
            and communities they serve.
                                                                          


          6)POLICY COMMENTS.  This bill imposes a number of requirements  
            on DPH regarding the collection and publication of information  
            on SNFs and ICFs.  In order to increase efficiency and ensure  
            the timeliness of these requirements, the author may wish to  
            consider the following amendments in the future.


          
             a)   Searchable database.  In an effort to increase  
               transparency of information to the public regarding LTC  
               facilities, this bill expands the data required to be  
               posted on the statewide CISS.  The author points to the  
               current difficulty of obtaining ownership information for  
               licensed LTC facilities, however the language does not  
               explicitly dictate that the CISS be created in a user or  








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               consumer-friendly manner.  To further the original intent  
               of the bill, and to allow DPH staff to more easily access  
               the compliance history of a particular individual or group,  
               the author may wish to consider mandating that the CISS be  
               created in a manner such that the information is able to be  
               searched via the name of an individual who has an indirect  
               or direct beneficial interest in an LTC facility.

             b)   Deadlines for DPH.  As stated, this bill increases the  
               data required to be collected by DPH for publication on the  
               statewide CISS.  However, the bill language does not  
               specify a deadline by which DPH must collect and publish  
               the information.  The 2014 State Auditor Report on DPH,  
               discussed previously, highlights DPH's poor history of  
               timely implementation of the State Auditor's  
               recommendations and completion of certain tasks, such as  
               final resolution of complaints at LTC facilities.  To help  
               establish oversight and ensure consumers and patients have  
               access to LTC information in a timely manner, the author  
               may wish to consider imposing a deadline on DPH to collect  
               and publish all new information required for the statewide  
               CISS under this bill.



          7)SUGGESTED AMENDMENTS.  This bill establishes a number of  
            additional disclosure and suitability requirements for  
            licensure of SNFs and ICFs.  Furthermore, this bill requires  
            DPH to increase the transparency of information regarding  
            ownership of such facilities.  In order to ensure state  
            resources are used more efficiently, and to better meet the  
            original intent of the legislation, the Committee may wish to  
            consider the following amendments:
          
             a)   Establish stronger definitions to further intent.  This  
               bill includes additional requirements for applicants who  
               have a direct and indirect beneficial interest in a  
               healthcare facility when applying for additional facility  
               licensure with DPH.  The author contends it is in the best  








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               interest of the State to protect consumers and prevent  
               existing owners with poor track records from opening new  
               LTC facilities.  However, not all LTC facilities are  
               operated by management companies; federal law requires ICFs  
               to have a governing body which meets specified criteria,  
               but does not require a management company.  And although it  
               is an entity that should be held accountable, the owner or  
               owners of LTC facilities may not be active in the daily  
               operations of the facility.  As such, the Committee may  
               wish to amend this bill to instead apply the requirements  
               to those who control the direction of the management or  
               policies of a licensed facility, whether through ownership,  
               contract, or otherwise.

             b)   Conserve state staffing resources.  This bill requires  
               DPH to update the online profile of each LTC facility on  
               the CISS, on a regular and timely basis, with current  
               information regarding any appeal resolution pertaining to a  
               citation or complaint.  As discussed previously, DPH has a  
               history of complaints with how it manages complaint  
               investigations at LTC facilities, particularly the length  
               of time in which it addresses complaints.  As such, it is  
               unknown if DPH would be able to accurately and regularly  
               update the CISS.  The Committee may wish to consider  
               amending this bill to instead require DPH to update the  
               online profiles of LTC facilities with the final  
               disposition of a citation or complaint.



             c)   Option to confirm with other state agencies.  This bill  
               requires applicants to disclose any history of compliance  
               and noncompliance with any applicable state or federal law  
               or regulation regarding specified facilities.  It also  
               requires applicants to disclose their relationships with  
               other SNFs and ICFs.  Although the language specifies  
               certain circumstances by which to confirm information  
               provided by an applicant, in order to ensure completeness  
               and provide DPH with additional information, the Committee  








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               may wish to consider amending this bill to authorize DPH to  
               contact other state agencies and departments to obtain  
               information regarding an applicant's compliance history.



             d)   Establish consistency with existing law.  This bill  
               authorizes DPH to deny an application for licensure of a  
               SNF or ICF if the applicant, within the past seven years,  
               has prevented or attempted to impede the work of any  
               authorized representative of DPH.  Existing law under  
               Health and Safety Code Section 1431 states it is a  
               misdemeanor to willfully prevent, interfere with, or  
               attempt to impede in any way, the work of, examination of  
               records by, or preservation of evidence by, a duly  
               authorized DPH representative who is enforcing current law.  
                The current bill language is not fully consistent with  
               current statute.  The Committee may wish to consider  
               aligning this bill with Health and Safety Code Section  
               1431.


             
               The current language of this bill allows for DPH to deny an  
               application for licensure after one occurrence of specified  
               infractions.  Some of these infractions may occur due to  
               factors outside of the control of the facility, and may  
               also be possible for a facility to remedy within 24 hours.   
               Existing law also authorizes many state authorities to deny  
               licensure to applicants upon a finding of a pattern of  
               non-compliance with certain criteria rather than one  
               occurrence, which protects those individuals who are  
               impacted by events outside of their control.  The Committee  
               may wish to consider amending this bill to authorize DPH to  
               deny applications for licensure if an applicant has  
               demonstrated a pattern of non-compliance involving  
               specified infractions.  The Committee may also wish to  
               consider excluding those infractions that can be remedied  
               within 24 hours by a facility, and providing limited  








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               protection for those applicants who have unintentionally  
               committed certain infractions, due to factors outside of  
               their control.



             e)   Eliminate provisions difficult to define.  This bill  
               authorizes DPH to deny an application if the applicant,  
               within the past seven years, has failed to demonstrate  
               competence in operating a facility.  There are currently no  
               standards by which DPH is required to assess one's  
               competence in operating a facility in statute; in addition,  
               this bill does not provide guidance as to how this would be  
               measured.  This bill already addresses circumstances in  
               which an applicant would be denied licensure due to a lack  
               of compliance during operation of a facility, thus an  
               additional criteria regarding competence may be  
               unnecessary.  As such, the Committee may wish to consider  
               striking this provision.
             
             f)   Modify mandatory denials to create accountability and  
               consistency with current law.  This bill requires DPH to  
               deny an application for licensure of an SNF or ICF if the  
               applicant owned, governed, or managed a LTC facility at a  
               time during the seven-year period prior to the application  
               in which that facility had an appointment of a  
               court-ordered receiver, involuntary termination of federal  
               certification, or issuance of a temporary suspension order  
               or revocation of a facility's license by DPH.  In order to  
               create accountability by the applicants, and to be  
               consistent with current law, the Committee may wish to  
               consider amending the provisions of this bill related to  
               the automatic denial as follows:


             
               i)     Optional leniency for appointments of court-ordered  
                 receivers.  Existing law allows for certain state  
                 agencies to have some discretion in review of license  








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                 applications under these circumstances, if an applicant  
                 demonstrates that the applicant took all reasonable  
                 actions to either prevent or correct violations that led  
                 to the receivership.  The Committee may wish to consider  
                 amending this bill to provide DPH this discretion.
               
               ii)    Accountability after seven-year probationary period.  
                  The seven-year probationary period in this measure  
                 appears to be arbitrary, and the language is silent as to  
                 what occurs following this timeframe.  The provisions  
                 also do not allow for applicants to prove that they are  
                 qualified to own a facility prior to the end of that  
                 seven-year period.  Owners, administrators, and managers  
                 of LTC facilities are responsible for the well-being and  
                 health of many of our more fragile Californians.  In  
                 order to ensure the safety of the state's LTC residents  
                 and patients, the Committee may wish to consider amending  
                 this bill to require an applicant to prove to DPH that  
                 the applicant is qualified enough, following the  
                 seven-year period, to own, govern, or manage a licensed  
                 SNF or ICF, despite the previous violations.  To provide  
                 more fairness to potential applicants during the  
                 timeframe of automatic denial, the Committee may wish  
                 allow an applicant to prove qualifications to own,  
                 govern, or manage a SNF or ICF to DPH, prior to the end  
                 of the seven-year period, under specified extenuating  
                 circumstances.


               
               iii)   Establish an appeals process for certain denials.   
                 Existing law allows applicants who have been denied  
                 approval for other licenses, permits, or similar  
                 authorization by a state department or agency to be able  
                 to appeal the decision of that department.  The Committee  
                 may wish to consider amending this bill to be consistent  
                 with other areas of the law, and include the opportunity  
                 for an applicant to appeal a denial.









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          8)TECHNICAL AMENDMENT.  In order to ensure consistency and  
            clarity within this bill, the Committee may wish to consider  
            amending this bill to further clarify the meaning of a single  
            entity, consistent with existing law.

          9)PREVIOUS LEGISLATION.  



             a)   AB 348 (Brown) of 2015 would have established a  
               timeframe under which DPH would be required to complete an  
               investigation into a complaint about a LTC facility.  AB  
               348 was held in the Senate Appropriations Committee.
             
             b)   AB 1710 (Yamada), Chapter 672, Statutes of 2012, revises  
               how nursing home administrator licensing fees are to be  
               adjusted so that fee revenue is sufficient to cover the  
               regulatory costs to DPH, and revises and increases DPH  
               reporting requirements regarding the Nursing Home  
               Administrator Program.



             c)   SB 799 (Negrete-McLeod) of 2011 would have required DPH  
               to complete LTC facility complaint investigations within a  
               90-working day period.  SB 799 was held on suspense in  
               Senate Appropriations. 


             
             d)   SB 535 (Kuehl) of 2008 would have directed DPH to  
               establish a Website offering specified on-line information  
               regarding LTC facilities.  SB 535 was vetoed by the  
               Governor.


             








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             e)   AB 399 (Feuer) of 2007 would have established a 40 day  
               timeframe for DPH to complete a LTC facility complaint  
               investigation.  AB 399 was vetoed by the Governor.


             
             f)   AB 1807 (Committee on Budget), Chapter 74, Statutes of  
               2006, was the health trailer bill for the Budget Act of  
               2006.  Among other changes, AB 1807 establishes a new fee  
               structure for health facilities that are licensed and/or  
               certified by L&C: fees must be calculated based on: i)  
               specified workload data provided by DPH to the Legislature  
               and made available to the public on their Website; ii) any  
               General Fund support appropriated by the Legislature; iii)  
               any federal grant funds received for this purpose; and, iv)  
               any policy adjustments as proposed by the Administration  
               and as adopted by the Legislature. States intent that L&C  
               become entirely supported by fees and federal funds by no  
               later than July 1, 2009. 


             
             g)   SB 1312 (Alquist) Chapter 895, Statutes of 2006,  
               requires inspections and investigations of LTC facilities  
               certified by the Medicare or Medicaid program to determine  
               compliance with federal standards and California statutes  
               and regulations. 


             
             h)   AB 1731 (Shelley), Chapter 451, Statutes of 2000, enacts  
               major reforms for SNFs and ICFs, including the expansion of  
               citations and penalties, an increase in disclosure  
               requirements and inspections, requires DPH to provide  
               specified notice to complainants within specified  
               timeframes, and requires initial onsite investigations  
               within 24 hours in response to complaints where there is a  
               serious threat of imminent danger of death or serious  
               bodily harm.








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          REGISTERED SUPPORT / OPPOSITION:



          Support



          California Advocates for Nursing Home Reform (cosponsor)
          Office of the San Diego County District Attorney (cosponsor)
          AARP
          American Federation of State, County and Municipal Employees  
          (previous version)
          The Arc and United Cerebral Palsy California Collaboration
          Area 3 Agency on Aging Advisory Council
          Asian Law Alliance (previous version)
          California Commission on Aging (previous version)
          California Long-Term Care Ombudsman Association
          California Retired Teachers Association (previous version)
          Coalition of California Welfare Rights Organizations, Inc.  
          (previous version)
          Congress of California Seniors (previous version)
          Consumer Attorneys of California
          Consumer Federation of California
          Disability Rights California
          National Association of Social Workers - California Chapter
          Office of the District Attorney of Alameda County
          Office of the State Long-Term Care Ombudsman
          Several individuals
          Several law firms
          
          Opposition



          California Association of Health Facilities








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          LeadingAge California


          Analysis Prepared by:An-Chi Tsou / HEALTH / (916) 319-2097