BILL ANALYSIS                                                                                                                                                                                                    



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

          SB 648 (Mendoza) - Health and care facilities:  referral  
          agencies
          
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          |Version: January 5, 2016        |Policy Vote: HEALTH 7 - 2, JUD. |
          |                                |          5 - 1                 |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: January 21, 2016  |Consultant: Brendan McCarthy    |
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          *********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
             The following information is revised to reflect amendments 
                      adopted by the committee on May 28, 2015


          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 Social Services. 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 Social Services (special fund).

           One-time costs of about $2.5 million over two years for  
            initial licensure of additional referral agencies by the  
            Department of Social Services (special fund). The total number  







          SB 648 (Mendoza)                                       Page 1 of  
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            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. It is estimated 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.


          Author  
          Amendments:  Prohibit the payment of a fee or commission by a  
          residential care facility for the elderly to an unlicensed  
          referral agency and authorize telephonic, oral acknowledgement  
          by a consumer.


          Committee  
          Amendments:  Shift the responsibility for licensing referral  
          agencies to residential care facilities for the elderly to the  
          Department of Social Services.


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