BILL ANALYSIS Ó SB 547 Page 1 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 | | | | | | | SB 547 Page 2 | | | | | ------------------------------------------------------------------ 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, SB 547 Page 3 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; SB 547 Page 4 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. SB 547 Page 5 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 SB 547 Page 6 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. SB 547 Page 7 Analysis Prepared by: Barry Brewer / AGING & L.T.C. / (916) 319-3990 FN: 0004051