BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 648 (Mendoza) - Health and care facilities: referral agencies ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: May 5, 2015 |Policy Vote: HEALTH 7 - 2, JUD. | | | 5 - 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 18, 2015 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 648 would require referral agencies that refer consumers to residential care facilities for the elderly to be licensed by the Department of Public Health. The bill would impose new disclosure and liability insurance requirements on all licensed referral agencies. Fiscal Impact: Minor, one-time costs to update existing regulations by the Department of Public Health (Licensing and Certification Fund). SB 648 (Mendoza) Page 1 of ? One-time costs of about $2.5 million over two years for initial licensure of additional referral agencies by the Department of Public Health (Licensing and Certification Fund). The total number of referral agencies that are referring consumers to residential care facilities for the elderly is not known, as there are not current licensing requirements for this segment of the referral agency market. The Department estimates that there are about 2,000 such agencies statewide. Under this assumption, it will require about $2.5 million in staff costs over two years to complete the initial licensing process. After that, ongoing licensing and enforcement costs are anticipated to be minor. Background: Under current law, the Department of Public Health licenses and regulates a variety of health facilities, such as hospitals, skilled nursing facilities, and intermediate care facilities. The Department also licenses and regulates referral agencies that refer consumers to those licensed facilities. Under current law, the Department of Social Services licenses and regulates residential care facilities for the elderly. There is no licensing requirement for referral agencies who refer consumers to those facilities (unless they also refer consumers to the facilities listed above, regulated by the Department of Public Health). Proposed Law: SB 648 would require referral agencies that refer consumers to residential care facilities for the elderly to be licensed by the Department of Public Health. The bill would impose new disclosure and liability insurance requirements on all licensed referral agencies. Specific provisions of the bill would: Add referral agencies that refer to residential care facilities for the elderly (RCFEs) to this list of referral agencies that must be licensed by the Department of Public Health; Prohibit a referral agency from referring a consumer to a SB 648 (Mendoza) Page 2 of ? residential care facility for the elderly if that facility does not meet existing licensing standards; Require all licensed referral agencies to provide specified disclosures to consumers; Limit the personal information of a consumer that a referral agency can share with other parties; Require all licensed referral agencies to have specified amounts of liability insurance. -- END --