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: January 5, 2016 |Policy Vote: HEALTH 7 - 2, JUD. | | | 5 - 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: January 21, 2016 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- *********** 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 ? 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. -- END --