BILL ANALYSIS                                                                                                                                                                                                    Ó



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          SENATE THIRD READING


          SB  
          547 (Liu)


          As Amended  August 1, 2016


          Majority vote


          SENATE VOTE:  35-4


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Aging           |6-0  |Brown, Hadley, Dahle, |                    |
          |                |     |Gray, Levine, Lopez   |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |19-1 |Gonzalez, Bloom,      |Bigelow             |
          |                |     |Bonilla, Bonta,       |                    |
          |                |     |Calderon, Chang,      |                    |
          |                |     |Daly, Eggman,         |                    |
          |                |     |Gallagher,            |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Eduardo Garcia,       |                    |
          |                |     |Holden, Jones,        |                    |
          |                |     |Obernolte, Quirk,     |                    |
          |                |     |Santiago, Wagner,     |                    |
          |                |     |Weber, Wood, McCarty  |                    |
          |                |     |                      |                    |








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          |                |     |                      |                    |
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          SUMMARY:  This bill creates the Statewide Aging and Long-Term  
          Care Services and Coordinating Council (Council), chaired by the  
          Secretary of the California Health and Human Services Agency  
          (CHHS) and requires the Council to develop a state aging and  
          long-term care services strategic plan to address how in 2020,  
          2025, and 2030 California will meet the needs of the aging  
          population.  Specifically, this bill:  


          1)Requires the Secretary of CHHS (Secretary) to be responsible  
            for the inter- and intra-agency coordination of state aging  
            and long-term care services, supports, and programs, to ensure  
            the efficient and effective use of state funds, and maximize  
            the drawdown, and efficient and effective use of federal  
            funds.


          2)Creates a Statewide Aging and Long-Term Care Services and  
            Coordinating Council (Council), chaired by the Secretary and  
            consisting of the heads, or designees, representing 22 state  
            departments.


          3)Requires the Council to develop a state aging and long-term  
            care services strategic plan to address how in 2020, 2025, and  
            2030, California will meet the needs of the aging population.


          4)Requires the strategic plan to incorporate clear benchmarks  
            and timelines for achieving the goals set forth in the  
            strategic plan, and include a cost benefit analysis for each  
            goal or recommendation included in the plan.


          5)Requires consultation with specified experts, practitioners,  








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            service providers, advocates and stakeholders in developing  
            the strategic plan, and requires the findings and  
            recommendations of the California Task Force on Family Care  
            Giving be incorporated in the strategic plan.  


          6)Requires the strategic plan to address all of the following:


             a)   Integration and coordination of services that support  
               independent living, aging in place, social and civic  
               engagement, and preventative care;


             b)   Long-term care financing;


             c)   Managed care expansion and continuum of care;


             d)   Advanced planning for end-of-life care;


             e)   Elder justice;


             f)   Care guidelines for Alzheimer's disease, dementia,  
               Amyotrophic Lateral Sclerosis, and other debilitating  
               diseases;


             g)   Caregiver support;


             h)   Data collection, consolidation, uniformity, analysis,  
               and access;


             i)   Affordable housing;








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             j)   Mobility;


             k)   Workforce;


             l)   The alignment of state programs with the Federal  
               Administration for Community Living (ACL); and,


             m)   The potential for integration and coordination of aging  
               and long-term care services with services and supports for  
               people with disabilities.


          7)Requires the Council to examine model programs and consider  
            how to scale up local, regional, and state-level best  
            practices and innovations to overcome long-term care services  
            delivery.


          8)Requires the strategic plan to be submitted to the specified  
            committees of the Legislature by July 1, 2018.  


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee: 

          1)One-time costs, potentially in the hundreds of thousands, in  
            staff or contract costs to convene the council and produce a  
            strategic plan that includes goals, timelines, and  
            cost-benefit analyses (General Fund (GF), or potentially  
            private or in-kind funds).  Staff time from a number of  
            departments and agencies will be required as well; however, no  
            significant increased staffing appears necessary (various  
            funds).  The cost will vary based on the robustness of the  
            effort.  








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          2)The creation of a legislatively mandated strategic plan may  
            result in unknown cost pressure (potentially  
            GF/federal/special funds) if various improvements to the  
            long-term care system are recommended as goals in the plan.   
            Improvements could also result in cost avoidance by increasing  
            efficiency and effectiveness of aging services and long-term  
            care services and supports.  The magnitude of any such costs,  
            and net effect on costs, are unknown.








          COMMENTS:  


          Author's statement.  According to the author, "California's  
          population of residents 65 years old and older will grow from  
          about 13 percent of the population to almost 20 percent of the  
          population by 2030.  The state is not prepared for this 'silver  
          tsunami.'  ?California's aging and long term care "system" of  
          services and supports is fragmented to the point of being almost  
          impossible for consumers, caregivers, and providers to navigate.  
           There are 112 aging and long term care programs spread over 20  
          state agencies and departments and very little coordination  
          among them.  ?California must begin now to organize our services  
          and supports delivery system and plan our investments in long  
          term care to maximize returns in the form of improved quality of  
          life and cost savings to consumers and taxpayers before we are  
          faced with an overwhelming crisis."


          Senate Select Committee on Aging and Long Term Care report.  The  
          Senate Select Committee on Aging and Long Term Care's 2014  








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          report, A Shattered System: Reforming Long Term Care in  
          California (report) was the result of 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.  The report 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.  Among state agencies there is no  
          distinct leader who is responsible for establishing and  
          implementing a vision for comprehensive LTC service delivery.   
          Instead, the current structure offers a piecemeal approach to  
          system change; there is no overarching plan for creating an  
          integrated system.


          The Little Hoover Commission in its 2011 report, A Long-Term  
          Strategy for Long-Term Care, found California's long-term care  
          system broken.  The state has no reliable means of gauging what  
          clients need, what benefits they receive, which services are  
          used by whom, how much each service costs the state, and which  
          programs work the best and are the most cost-effective in  
          keeping people in their homes.  There is virtually no  
          coordination or communication between programs and staff  
          responsible for long-term care services.  There is no integrated  
          management or coordination of financing, service delivery or  
          assessment of long-term care client needs or of providers.   
          These fundamental structural flaws leave the system unable to  
          effectively or efficiently deal with current needs and make it  
          woefully unprepared for the "silver tsunami" of seniors who will  
          lack services in the years to come.  Furthermore, California  
          lacks a single leader within the Health and Human Services  
          Agency accountable for managing and modernizing long-term care  
          in the state, which creates significant challenges to any  
          attempt to systematically harness the dozens of long-term care  
          programs and the many billions of dollars spent on them.











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          Analysis Prepared by:                                             
                          Barry Brewer / AGING & L.T.C. / (916) 319-3990    
                                                                    FN:  
          0004051