BILL ANALYSIS Ó AB 2231 Page 1 Date of Hearing: May 4, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2231 (Calderon) - As Amended April 6, 2016 ----------------------------------------------------------------- |Policy |Human Services |Vote:|6 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill increases the civil penalties for specified violations, and clarifies definitions and adopts penalties for repeat violations, in licensed community care facilities including, but not limited to, Residential Care Facilities for AB 2231 Page 2 Persons With Chronic Life-Threatening Illness (RCFCIs), Residential Care Facilities for the Elderly (RCFEs), Day Care Centers, and Family Day Care Homes. This bill also provides for a penalty refund process if a licensee prevails in an appeal. FISCAL EFFECT: 1)Unknown, but potentially significant cost pressure, likely in the low hundreds of thousands of dollars (GF), to Department of Social Services (DSS) address the anticipated increase in appeals generated by the new penalty structure. 2)Minor and absorbable costs to DSS for training and updating regulations. COMMENTS: 1)Purpose. According to the author's office, "Other than those penalties increased in AB 2236, civil penalties for DSS-licensed facilities have not been increased for almost 30 years. This includes penalties for violations like the presence of a person specifically excluded from the facility or the absence of supervision of individuals in care. The current maximum penalty amount of $150 if DSS discovers a serious violation is a relic from 3 decades ago. This bill provides the long overdue adjustment by increasing civil penalties for the violations which were not addressed in AB 2236 (Maienschein) Chapter 813, Statutes of 2014. It also corrects drafting errors and omissions from AB 2236. This bill will once again make civil penalties a relevant tool to achieve compliance and will help DSS protect the health and safety of those in care." AB 2231 Page 3 2)Current civil penalty structure. The civil penalty structure for the state's community care facilities remained virtually unchanged for 30 years until the passage of AB 2236 (Maienschein) Chapter 813, Statutes of 2014. That bill created a new framework for civil penalties applicable to violations determined by DSS to have resulted in death or serious bodily injury, or determined by DSS to constitute physical abuse for all facilities licensed by DSS. This bill addresses the civil penalty structure for all remaining violations not covered in AB 2236, the 2014 Maienschein legislation. 3)Appeals process. Following the adoption of AB 2236, a subsequent bill, AB 1387 (Chu) Chapter 486, Statutes of 2015, streamlined the appeals process for community care facility civil penalty and violation appeals, and enhanced the complaint process for RCFEs. Among other provisions, it established a separate two-step process for lesser violations. The bill required that a licensee submit a request for a formal review within 15 days of receipt of the notice of the civil penalty assessment of decision, and required that the licensee provide all available supporting documentation at the time a request for a formal review of a civil penalty is submitted. This bill provides penalty refund process, should a licensee prevail in the appeals process. 4)Prior Legislation. a) AB 1387 (Chu), Chapter 486, Statutes of 2015, AB 2231 Page 4 established in statute an appeals process for civil penalties. b) AB 1467 (Bloom), 2015, would have introduced a system of civil penalties tiered based on facility capacity and contained other provisions substantially similar to this bill. It died in the Assembly Human Services Committee. c) AB 2236 (Maienschein and Stone), Chapter 813, Statutes of 2014, increased monetary civil penalties assessed for violations which resulted in the death, serious bodily injury, or physical abuse of a person receiving care in various DSS-licensed facilities. d) AB 978 (Benoit), Chapter 291, Statutes of 2008, required DSS to assess immediate civil penalties of $150 per day per violation for serious violations of health and safety statutes or regulations. Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081 AB 2231 Page 5