BILL ANALYSIS Ó
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. |
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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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