BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                              Senator Isadore Hall, III
                                        Chair
                                2015 - 2016  Regular 

          Bill No:           SB 547           Hearing Date:    4/14/2015
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          |Author:    |Liu                                                  |
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          |Version:   |2/26/2015                                            |
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          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Arthur Terzakis                                      |
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          SUBJECT: Long-term care:  Assistant Secretary of Aging and  
          Long-Term Care:  Department of Community Living


            DIGEST:    This bill establishes the Department of Community  
          Living (DCL) within the Health and Human Services Agency to  
          serve as the single state-level contact on issues of aging and  
          long-term care.  Additionally, this bill creates an Assistant  
          Secretary of Aging and Long-Term Care Coordination position  
          within the agency with specified duties and responsibilities. 

          ANALYSIS:
          
          Existing law:
          
          1)Establishes the California Health and Human Services Agency  
            consisting of the Departments of Aging, Child Support  
            Services, Community Services and Development, Developmental  
            Services, Health Care Services, Managed Health Care, Public  
            Health, Rehabilitation, Social Services, and State Hospitals.

          2)Sets forth legislative findings and declarations regarding  
            long-term care services, including that consumers of those  
            services experience great differences in service levels,  
            eligibility criteria, and service availability that often  
            result in inappropriate and expensive care that is not  
            responsive to individual needs. Those findings and  
            declarations also state that the laws governing long-term care  
            facilities have established an uncoordinated array of  







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            long-term care services that are funded and administered by a  
            state structure that lacks necessary integration and focus.

          This bill:

          1)Establishes the Department of Community Living (DCL) within  
            the Health and Human Services Agency and creates an Assistant  
            Secretary of Aging and Long-Term Care Coordination position  
            within the agency, to be appointed by the Governor and  
            confirmed by the Senate.

          2)Stipulates that the DCL shall be aligned, to the extent  
            practicable, with the federal Administration for Community  
            Living and shall serve as the single state-level contact on  
            issues of aging and long-term care, oversee statewide  
            long-term care service delivery, promote coordinated long-term  
            care service delivery and access to home and community-based  
            services at the local and regional levels, and provide  
            leadership and information to local agencies on best  
            practices.

          3)Also, provides that the DCL shall serve as the organizational  
            unit designated to oversee all long-term care programs in the  
            state and to consolidate all long-term care administered  
            throughout all departments of the agency, including programs  
            serving older adults and persons with disabilities.

          4)Stipulates that the Assistant Secretary shall serve as liaison  
            to the federal Administration for Community Living and be  
            responsible for ensuring that the state maximizes the use of  
            federal funding opportunities.  Also, requires the Assistant  
            Secretary to do all of the following:

             a)   Consolidate data and programs pertaining to long-term  
               care from all departments and programs within the agency;

             b)   Coordinate and direct the establishment of the DCL and  
               lead the development and implementation of a statewide  
               long-term care strategic plan;

             c)   Oversee and coordinate the integration of health care  
               and long-term care services;

             d)   Facilitate the coordination of long-term care services  
               at the local level and work with rural and urban  








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               communities to identify infrastructure capacity issues and  
               lead in the development of access standards for home and  
               community-based services; and,

             e)   Report annually to the legislative policy and fiscal  
               committees regarding the status of long-term care in the  
               state, the level of state spending on long-term care  
               programs, the amount of federal funding received, progress  
               in improving the range of services, and recommendations to  
               enhance the overall coordination and delivery of long-term  
               care services.

          5)Additionally, requires the Assistant Secretary to develop a  
            system wide long-term care plan that establishes the state's  
            priorities, maximizes the use of limited resources, engages a  
            range of stakeholders who need long-term care services and  
            incorporates clear benchmarks and timelines for achieving the  
            goals set forth in the plan. 

          6)Furthermore, stipulates that the plan shall do all of the  
            following:

             a)   Address the expansion of managed care in Coordinated  
               Care Initiative counties, as defined, and the changes to,  
               and differences in, access to health care for older and  
               disabled adults throughout the state and development of a  
               strategy for integrating the health care system statewide.

             b)   Provide a review and an analysis of existing programs,  
               services, and deficiencies as well as a plan of action for  
               a support network for unpaid family caregivers in this  
               state and consideration of employment-related policies and  
               proposals to improve the support network.

             c)   Include an analysis of workforce needs, including the  
               training and education requirements of a long-term care  
               workforce and a strategy for aligning the available  
               resources to meet those needs.

             d)   Provide directives for ensuring that the system screens  
               individuals prior to placement in a "nursing home" or  
               similar long-term care facility to avoid unnecessary  
               admissions and examine how a preadmission screening program  
               may be integrated into a managed care system and also  
               include a discussion of best practices in other states.








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             e)   Contain a strategy for developing a public/private  
               partnership to raise awareness of, and engagement in,  
               long-term care planning.

             f)   Identify how to educate long-term care consumers and  
               providers, the legal system, and the public about "safe"  
               advance directives, limited conservatorships, and  
               affordable access to conservators.

             g)   Address end-of-life planning issues and improvements to  
               end-of-life care and examine model programs in various  
               cities and counties and consider how to expand local and  
               state-level innovations designed to address the challenges  
               related to long-term care services delivery.

           

          Background

          Purpose of SB 547:  According to the author's office, Senator  
          Liu, Chair of the Senate Select Committee on Aging and Long-Term  
          Care, led a comprehensive effort in 2014 to identify the  
          structural, policy, and administrative changes necessary to  
          realize an "ideal" long-term care delivery system and develop  
          recommendations and a strategy to achieve that vision.   This  
          measure represents certain recommendations contained in the  
          Select Committee's report titled, "A Shattered System: Reforming  
          Long-Term Care in California." The full report addresses  
          challenges in the current system that fall into eight issue  
          areas and contains an overall strategy for creating a  
          sustainable, efficient continuum of care for this and future  
          generations of aging and disabled adults.

          One of the issue areas identified by the Select Committee  
          involves "state leadership" - specifically, the Select Committee  
          found that "California's fragmented organizational structure  
          leaves the state with a leadership vacuum that complicates any  
          effort to undertake comprehensive long-term care reform.  Rather  
          than develop a vision and overall strategic plan for long-term  
          care system transformation, the state has adopted a piecemeal  
          and reactive approach to change."  

          The Report's suggested recommendation with respect to this issue  
          area is as follows: "Reform the state-level administrative  








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          structure by naming a Long-Term Care leader (a Czar) to organize  
          system-wide planning activities and establishing a Department of  
          Community Living with the Health and Human Services Agency.  The  
          Department, in collaboration with other agencies and departments  
          with relevant responsibilities, should develop a state Long-Term  
          Care Plan to guide the priorities and implementation of aging  
          and long-term care investments, policies, and programs  
          statewide."

          California's Aging Population:  According to information  
          provided by the Senate Select Committee on Aging and Long-Term  
          Care, California's aging population is growing rapidly and also  
          becoming more racially and culturally diverse.  The population  
          of individuals over age 65 will increase by 27% for young  
          retirees (aged 65-74) and 10% for mature retirees (aged 75-84)  
          by the year 2017.  In addition, the number of adults with  
          disabilities in California is expected to grow by approximately  
          20% in the next 20 years.

          Alzheimer's disease and other dementias are on the rise and  
          projected to affect an estimated 1.1 million Californians by  
          2030.  Aging disproportionately impacts women; though women  
          comprise roughly half of the population overall, by age 65 the  
          proportion of women to men increases to almost six out of ten,  
          and in the 85+ group, women outnumber men nearly two to one.   
          Moreover, because women's life expectancy is longer than men's,  
          women are more likely to outlive their resources and slip into  
          poverty.  

          These demographic realities constitute a social and moral  
          imperative to plan thoughtfully for the aging of our population.  
          At stake is the ability to age with dignity, choice, and  
          independence for two key groups: older adults and people with  
          disabilities who depend upon a system of long-term care (LTC) to  
          remain as independent as possible.  Unfortunately, California is  
          not prepared to meet this demographic imperative.  

          A person-centered, culturally responsive LTC system would enable  
          individuals to receive services in the most affordable,  
          home-like settings available. California was once a leader in  
          providing services to support the full integration of older  
          adults and persons with disabilities into community life.  Over  
          the past several years, however, the LTC system has been  
          adversely impacted by system fragmentation, a lack of usable  
          data, poor planning, unaddressed workforce issues, capacity  








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          issues, and of course devastating budget cuts during the  
          recession.

          Staff Comments:  

          Suggested technical amendment - On page 3, line 6, after the  
          word "Senate" add the following: "Committee on Rules" 

          Prior/Related Legislation
          
          SB 128 (Monning), 2015-16 Session.  Among other things, would  
          enact the End of Life Option Act authorizing an adult who meets  
          certain qualifications, and who has been determined by his or  
          her attending physician to be suffering from a terminal illness,  
          as defined, to make a request for medication prescribed pursuant  
          to these provisions for the purpose of ending his or her life.   
          Also, would establish the procedures for making these requests.   
          (Pending in Senate Appropriations Committee)

          AB 2014 (Berg) 2005-06 Session.  Would have established a new,  
          single department, known as the California Department of Adult  
          and Aging Services, for the purpose of coordinating and  
          promoting those programs that support adults who are aging or  
          disabled so that they may remain in their homes and communities  
          for as long as practicably possible.  (Held in Senate Human  
          Services Committee)

          FISCAL EFFECT:                 Appropriation:  No    Fiscal  
          Com.:             Yes          Local:          No


            
          SUPPORT:  

          California Alzheimer's Association
          California Association of Area Agencies on Aging
          California Collaborative for Long Term Services and Supports
          California Commission on Aging
          California Foundation for Independent Living Centers
          Congress of California Seniors
          Justice in Aging
          LeadingAge California
          Service Employees International Union (SEIU) United Long Term  
          Care Workers
          State Independent Living Council








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          OPPOSITION:

          California Association of Public Authorities for In-Home  
          Supportive Services

          ARGUMENTS IN SUPPORT:   Writing in support of SB 547, the  
          California Retired Teachers Association states that "fractured  
          oversight and the complexity of the administrative 'spider web'  
          have been ongoing issues of discussion in recent years,  
          especially with heightened interest in improving the system of  
          long-term care.  For example, nursing homes are overseen by the  
          Department of Public Health, while residential care facilities  
          for the elderly are under the jurisdiction of the Department of  
          Social Services.  As our population ages and requires more  
          nuanced and specialized care, the artificial bifurcation of  
          programs within the Administration is illogical and burdensome  
          to navigate for seniors, their families, and caregivers.   
          Additionally, lack of coordination between state departments has  
          created a system with compromised transparency and  
          accountability, meaning that bad actors regulated by one  
          department may subsequently be licensed to run programs under  
          the banner of a second department."  

          The California Retired Teachers Association believes that SB 547  
          will improve the likelihood that community-based services will  
          meet the needs of seniors, reducing hospitalizations and  
          institutional placements and ultimately improving their health  
          and well-being. 

          ARGUMENTS IN OPPOSITION:  Writing in opposition to SB 547, the  
          California Association of Public Authorities (CAPA) has  
          expressed concern about the bill's potential impact on the  
          In-Home Support Services (IHSS) program.  CAPA points out that  
          the IHSS program provides personal care and domestic services to  
          aged, blind or disabled individuals in their own homes. The  
          purpose of the program is to allow these individuals to live  
          safely at home rather than in costly and less desirable  
          out-of-home placement facilities. The California Department of  
          Social Services (CDSS) has lead responsibility for the  
          administration of the IHSS program.

          CAPA notes that the IHSS program has undergone extensive changes  
          in the past few years and that one of the most significant  
          undertakings has been implementation of the Coordinated Care  








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          Initiative (CCI) which was created to improve care for  
          California seniors and persons with disabilities who are dually  
          eligible for both Medi-Cal and Medicare. CAPA states that even  
          though this is a difficult population to serve its members have  
          had a great deal of "customer" satisfaction with CDSS.  CAPA  
          emphasizes that CDSS has displayed a cooperative and thorough  
          manner of providing assistance.  CAPA believes that in light of  
          the fact that CDSS has several other major projects underway  
          that impact Public Authorities, the state-level reorganization  
          of the Health and Human Services Agency called for in SB 547 is  
          not well timed for IHSS consumers or providers.          

          DUAL REFERRAL:  Senate Health Committee