BILL ANALYSIS Ó
SB 648
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Date of Hearing: August 3, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
SB 648
(Mendoza) - As Amended June 30, 2016
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|Policy |Aging and Long Term Care |Vote:|4 - 1 |
|Committee: | | | |
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| |Judiciary | |10 - 0 |
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Urgency: No State Mandated Local Program: YesReimbursable:
No
SUMMARY:
This bill requires agencies that refer individuals to
residential care facilities for the elderly (RCFEs) to be
licensed by the Department of Social Services (DSS), and
establishes a number of consumer protections related to the
referral practices of such agencies, including anti-kickback
rules, restrictions on the sharing of consumers' information,
restrictions on commission for referrals, and required
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disclosures.
It also makes owners, operators, and employees of referral
agencies mandated reporters of elder or dependent adult abuse.
FISCAL EFFECT:
Significant one-time costs to DSS, potentially exceeding $1
million GF to establish the licensure program, as well as
significant ongoing costs in the range of $1.5 million or
higher. Estimates of ongoing costs are subject to significant
uncertainty due to the varying size and complexity of referral
agencies, uncertainty about complaint volume, and number of
licensees. If complaint volume is high or significant
enforcement resources are necessary, costs could be higher.
COMMENTS:
1)Purpose. This bill seeks to impose licensure and minimum
standards on agencies that refer individuals to RCFEs. The
author notes most seniors and their families typically seek
the assistance of a referral agency following a decline in
independence or a significant health event, a particularly
vulnerable time. Since referral agency services are generally
provided for free to the individual and referral agencies are
paid on commission from the facilities to which they are
referring, potential serious conflicts of interest exist that
can harm consumers. This bill seeks to erect a consumer
protection framework around the RCFE referral industry.
2)Background. RCFEs, commonly known as assisted living
facilities, are licensed by DSS. They range in size from
several beds to hundreds of beds. They provide a home-like
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environment for seniors and dependent adults who need
assistance with activities of daily living such as dressing,
preparing food, and bathing. In recent years, the quality of
RCFE care has been a question of public discussion, with
high-profile incidents of understaffing and even abandonment
noted in news media. This bill addresses an aspect of the
RCFE industry: those agencies that refer consumers to RCFEs,
in order to ensure consumers can rely with more confidence on
such referrals. Agencies that refer individuals to licensed
health facilities, such as nursing homes, are already licensed
by the California Department of Public Health.
3)Staff Comments. Most licensure programs are fee-supported.
This bill does not establish a fee structure for licensed
referral agencies. The author may wish to consider, if
licensure is the right solution to the problems identified,
establishing a fee structure that ensures any program costs
are fully fee-supported and that scales somewhat based on size
or complexity of the referral agency or associated licensure
and enforcement activities.
Analysis Prepared by:Lisa Murawski / APPR. / (916)
319-2081
SB 648
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