BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2231 (Calderon) - Care facilities: civil penalties ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 21, 2016 |Policy Vote: HUMAN S. 4 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Debra Cooper | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 2231 would increase the civil penalties to licensed community care facilities and imposes civil penalties for repeat violations. This bill would delete the provisions that authorize the Department of Social Services (DSS) to impose these civil penalties and instead makes them mandatory. This bill requires DSS to make a good faith effort to work with the licensee to determine the cause of deficiency and prevent repeat violations. This bill also requires civil penalties to be due and payable when administrative appeals have been exhausted and to be subject to late fees, except as specified. Fiscal Impact: Estimated one-time costs to DSS of $438,000 for fiscal year 2016-17 and ongoing costs of $378,000 per year for administrative costs, enforcement, and addressing the anticipated increase in appeals generated by the new penalty structure. (GF) AB 2231 (Calderon) Page 1 of ? One-time costs potentially in excess of $150,000 to DSS to revise regulations and make penalty system adjustments for licensed community care facilities. (GF) Potential revenue to DSS from assessing civil penalties for violations. (Child Health and Safety Fund) Background: When DSS finds a license community care facility in violation of law or regulation, the facility may be given a citation. The facility is given the opportunity to correct the violation and submit a Plan of Correction with a specified length of time. Failure to correct the deficiency within an established time frame results in accumulation of fines. Fine Structure : In 1985, the California Residential Care Facilities for the Elderly Act established a civil penalty structure for violations in licensed community care facilities. At the time, the minimum penalty was $25 and the maximum penalty was $150 per day per violation. It also permitted additional civil penalties for repeat violations within a 12 month period. Existing law allows DSS to levy civil penalties ranging from $1,000 to $15,000, depending on facility type, where violations are determined to have resulted in death, serious bodily injury, or physical abuse of a person receiving care. The author notes that civil penalty amounts for many other "less serious" violations have not been increased. Certain violations are informally referred to by DSS, as "zero tolerance" violations, which require immediate assessment of a civil penalty. Included in those violations are fire clearance violations, absence of required supervision, accessible bodies of water, accessible firearms or ammunition, refused entry to a facility, and the presence of an excluded person on the premises. Appeals Process : Existing law allows a licensee to request a formal review of a civil penalty assessed for the death of, serious bodily injury of, or physical abuse to a resident or child at a licensed care facility within 10 days of receipt of AB 2231 (Calderon) Page 2 of ? the notice of civil penalty. The appeals process for serious violations is a four-step process that would potentially be heard by a regional manager of DSS's Community Care Licensing Division's program administrator and deputy director, and ultimately to an administrative law judge, as specified. The appeals process for "less serious" violations is a streamlined two-step process. Proposed Law: This bill would make a number of changes to the civil penalty structure and enforcement provisions for licensed community care facilities, including, but not limited to, Residential Care Facilities for Persons with Chronic Life-Threatening Illness, Residential Care Facilities for the Elderly, Day Care Centers, and Family Day Care Homes, as follows: Delete language permitting DSS to impose specified civil penalties and instead making it required. Increase the civil penalty amount that DSS may levy to $100 per day for certain violations, as specified. Subject any agency or facility that repeats the violation to an immediate civil penalty of $250 per repeat violation and $100 for each day thereafter that the violation continues. Define "repeat violation" Require the notice of deficiency to state the manner in which the deficiency constitutes a repeat violation. Require, upon submission of evidence that a deficiency has been corrected and approved by DSS, the penalty to cease as of the day DSS received the evidence, or an earlier date if DSS is able to verify that the deficiency was corrected by the earlier date. Authorize DSS to inspect the facility within five working days after receiving evidence that a deficiency has been corrected to confirm that the deficiency has been corrected. Require that if DSS determines that a deficiency has not been corrected, civil penalties shall continue to accrue from the date of the original citation. Make changes to civil penalties assessed for more serious violations, as specified. Require DSS to level civil penalties of specific amounts for violations involving death physical abuse, or serious bodily injury, as specified. AB 2231 (Calderon) Page 3 of ? Require DSS to make a good faith effort to work with the licensee to determine the cause of the deficiency and ways to prevent repeat violations. Require that penalties shall be due and payable when administrative appeals have exhausted, unless payment arrangements, as specified have been made. Require DSS to post on its Internet Web site specified information regarding the number of citations, complaint inspections, and noncomplaint inspections during the preceding five years. Require every child care resource and referral program to provide an advisement to parents about their rights to information about complaints about a child care provider, as specified. Sunset certain provisions of the bill on July 1, 2017. Delay implementation of certain provisions of the bill, including new standard for repeat violations and delayed payments of civil penalties pending full adjudication of the appeal process until July 1, 2017. Related Legislation: AB 1387 (Chu, Chapter 486, Statutes of 2015) revised the appeals process for civil penalties. AB 1467 (Bloom, 2015) would have introduced a tiered system of civil penalties based on facility capacity and contained other provision similar to AB 2231. This bill was held in the Assembly Human Services Committee. AB 2236 (Maienschein, Chapter813, 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. -- END -- AB 2231 (Calderon) Page 4 of ?