BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 2231 (Calderon) - Care facilities:  civil penalties
          
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          |Version: June 21, 2016          |Policy Vote: HUMAN S. 4 - 0     |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 1, 2016    |Consultant: Debra Cooper        |
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          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)







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           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  








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          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.








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           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.




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