Senate BillNo. 779


Introduced by Senator Hall

February 27, 2015


An act to amend Section 1276.65 of the Health and Safety Code, and to amend Section 14126.022 of the Welfare and Institutions Code, relating to health care facilities.

LEGISLATIVE COUNSEL’S DIGEST

SB 779, as introduced, Hall. Skilled nursing facilities: certified nurse assistant staffing.

(1) Existing law provides for the licensure and regulation by the State Department of Public Health of health facilities, including skilled nursing facilities. Existing law requires the department to develop regulations that become effective August 1, 2003, that establish staff-to-patient ratios for direct caregivers working in a skilled nursing facility. Existing law requires that these ratios include separate licensed nurse staff-to-patient ratios in addition to the ratios established for other direct caregivers. Existing law also requires every skilled nursing facility to post information about staffing levels in the manner specified by federal requirements. Existing law makes it a misdemeanor for any person to willfully or repeatedly violate these provisions.

This bill would require the department to develop regulations that become effective June 1, 2016, and include separate staff-to-patient ratios for certified nurse assistants that comply with specified requirements. The bill would require the posted information to include an accurate report of the number of staff working each shift and to be posted in specified locations, including an area used for employee breaks. The bill would require a skilled nursing facility to make staffing data available, upon oral or written request and at a reasonable cost, within 15 days of receiving a request. By expanding the scope of a crime, this bill would impose a state-mandated local program.

(2) Existing law provides for the Medi-Cal program, which is administered by the State Department of Health Care Services, under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid Program provisions.

Existing law, the Medi-Cal Long-Term Care Reimbursement Act, operative until August 1, 2015, requires the department to make a supplemental payment to skilled nursing facilities based on specified criteria and according to performance measure benchmarks. Existing law requires the department to establish and publish quality and accountability measures, which are used to determine supplemental payments. Existing law requires, beginning in the 2011-12 fiscal year, the measures to include, among others, compliance with specified nursing hours per patient per day requirements.

This bill would also require, beginning in the 2016-17 fiscal year, the measures to include compliance with specified certified nursing assistant staff-to-patient ratio requirements. The bill would make this provision contingent on the Medi-Cal Long-Term Care Reimbursement Act being operative on January 1, 2016.

(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 1276.65 of the Health and Safety Code
2 is amended to read:

3

1276.65.  

(a) For purposes of this section, the following
4definitions shall apply:

5(1) “Direct caregiver” means a registered nurse, as referred to
6in Section 2732 of the Business and Professions Code, a licensed
7vocational nurse, as referred to in Section 2864 of the Business
8and Professions Code, a psychiatric technician, as referred to in
P3    1Section 4516 of the Business and Professions Code, and a certified
2nurse assistant, as defined in Section 1337.

3(2) “Skilled nursing facility” means a skilled nursing facility as
4defined in subdivision (c) of Section 1250.

5(b) A person employed to provide services such as food
6preparation, housekeeping, laundry, or maintenance services shall
7not provide nursing care to residents and shall not be counted in
8determining ratios under this section.

9(c) (1) begin insert(A)end insertbegin insertend insert Notwithstanding any otherbegin delete provision ofend delete law, the
10State Department ofbegin delete Health Servicesend deletebegin insert Public Healthend insert shall develop
11regulations that become effectivebegin delete August 1, 2003,end deletebegin insert June 1, 2016,end insert
12 that establish staff-to-patient ratios for direct caregivers working
13in a skilled nursing facility. These ratios shall include separate
14licensed nurse staff-to-patient ratiosbegin insert and certified nurse assistant
15staff-to-patient ratios,end insert
in addition to the ratios established for other
16direct caregivers.

begin insert

17(B) (i) The certified nurse assistant staff-to-patient ratios
18developed pursuant to subparagraph (A) shall be no less than the
19following:

end insert
begin insert

20(I) During the day shift, one certified nurse assistant for every
21five patients, or fraction thereof.

end insert
begin insert

22(II) During the evening shift, one certified nurse assistant for
23every seven patients, or fraction thereof.

end insert
begin insert

24(III) During the night shift, one certified nurse assistant for
25every 16 patients, or fraction thereof.

end insert
begin insert

26(ii) For the purposes of this subparagraph, the following terms
27have the following meanings:

end insert
begin insert

28(1) “Day shift” means the 8-hour period during which the
29facility’s patients require the greatest amount of care.

end insert
begin insert

30(II) “Evening shift” means the 8-hour period when the facility’s
31patients require more than minimal care.

end insert
begin insert

32(III) “Night shift” means the 8-hour period during which a
33facility’s patients require the least amount of care.

end insert

34(2) The department, in developing staff-to-patient ratios for
35directbegin delete caregiversend deletebegin insert caregivers, certified nurse assistants,end insert and licensed
36nurses required by this section, shall convert the existing
37requirement under Section 1276.5 of this code and Section 14110.7
38of the Welfare and Institutions Code for 3.2 nursing hours per
39patient day of care and shall ensure that no less care is given than
40is required pursuant to Section 1276.5 of this code and Section
P4    114110.7 of the Welfare and Institutions Code. Further, the
2department shall develop the ratios in a manner that minimizes
3additional state costs, maximizes resident access to care, and takes
4into account the length of the shift worked. In developing the
5regulations, the department shall develop a procedure for facilities
6to apply for a waiver that addresses individual patient needs except
7that in no instance shall the minimum staff-to-patient ratios be less
8than the 3.2 nursing hours per patient day required under Section
91276.5 of this code and Section 14110.7 of the Welfare and
10Institutions Code.

11(d) The staffing ratios to be developed pursuant to this section
12shall be minimum standards only. Skilled nursing facilities shall
13employ and schedule additional staff as needed to ensure quality
14resident care based on the needs of individual residents and to
15ensure compliance with all relevant state and federal staffing
16requirements.

17(e) No later than January 1, 2006, and every five years thereafter,
18the department shall consult with consumers, consumer advocates,
19recognized collective bargaining agents, and providers to determine
20the sufficiency of the staffing standards provided in this section
21and may adopt regulations to increase the minimum staffing ratios
22to adequate levels.

23(f) begin insert(1)end insertbegin insertend insert In a manner pursuant to federal requirements, effective
24January 1, 2003, every skilled nursing facility shall post
25information about staffing levels that includes the current number
26of licensed and unlicensed nursing staff directly responsible for
27resident care in the facility. This posting shall include staffing
28requirements developed pursuant to thisbegin delete section.end deletebegin insert section and an
29accurate report of the number of staff working each shift. The
30information shall be posted on paper that is at least 8.5 inches by
3114 inches and shall be printed in a font of at least 16 point.end insert

begin insert

32(2) The information described in paragraph (1) shall be posted,
33at a minimum, in the following locations:

end insert
begin insert

34(A) An area readily accessible to members of the public.

end insert
begin insert

35(B) An area used for employee breaks.

end insert
begin insert

36(C) An area used by residents for communal functions,
37including, but not limited to, dining, resident council meetings, or
38activities.

end insert
begin insert

39(3) (A) Upon oral or written request, every skilled nursing
40facility shall make direct caregiver staffing data available to the
P5    1public for review at a reasonable cost. A skilled nursing facility
2shall provide the data to the requestor within 15 days after
3receiving a request.

end insert
begin insert

4(B) For the purpose of this paragraph, “reasonable cost”
5includes, but is not limited to, a ten-cent ($0.10) per page fee for
6standard reproduction of documents that are 8.5 inches by 14
7inches or smaller or a retrieval or processing fee not exceeding
8sixty dollars ($60) if the requested data is provided on a digital
9or other electronic medium and the requestor requests delivery of
10the data in a digital or other electronic medium, including
11electronic mail.

end insert

12(g) (1) Notwithstanding any otherbegin delete provision ofend delete law, the
13department shall inspect for compliance with this section during
14state and federal periodic inspections, including, but not limited
15to, those inspections required under Section 1422. This inspection
16requirement shall not limit the department’s authority in other
17circumstances to cite for violations of this section or to inspect for
18compliance with this section.

19(2) A violation of the regulations developed pursuant to this
20section may constitute a class “B,” “A,” or “AA” violation pursuant
21to the standards set forth in Section 1424.

22(h) The requirements of this section are in addition to any
23requirement set forth in Section 1276.5 of this code and Section
2414110.7 of the Welfare and Institutions Code.

25(i) Initial implementation of the staffing ratio developed pursuant
26to requirements set forth in this section shall be contingent on an
27appropriation in the annual Budget Act or another statute.

28(j) In implementing this section, the department may contract
29as necessary, on a bid or nonbid basis, for professional consulting
30services from nationally recognized higher education and research
31institutions, or other qualified individuals and entities not
32associated with a skilled nursing facility, with demonstrated
33expertise in long-term care. This subdivision establishes an
34accelerated process for issuing contracts pursuant to this section
35and contracts entered into pursuant to this section shall be exempt
36from the requirements of Chapter 1 (commencing with Section
3710100) and Chapter 2 (commencing with Section 10290) of Part
382 of Division 2 of the Public Contract Code.

39(k) This section shall not apply to facilities defined in Section
401276.9.

P6    1

SEC. 2.  

Section 14126.022 of the Welfare and Institutions
2Code
is amended to read:

3

14126.022.  

(a) (1) By August 1, 2011, the department shall
4develop the Skilled Nursing Facility Quality and Accountability
5Supplemental Payment System, subject to approval by the federal
6Centers for Medicare and Medicaid Services, and the availability
7of federal, state, or other funds.

8(2) (A) The system shall be utilized to provide supplemental
9payments to skilled nursing facilities that improve the quality and
10accountability of care rendered to residents in skilled nursing
11facilities, as defined in subdivision (c) of Section 1250 of the
12Health and Safety Code, and to penalize those facilities that do
13not meet measurable standards.

14(B) A freestanding pediatric subacute care facility, as defined
15in Section 51215.8 of Title 22 of the California Code of
16Regulations, shall be exempt from the Skilled Nursing Facility
17Quality and Accountability Supplemental Payment System.

18(3) The system shall be phased in, beginning with the 2010-11
19rate year.

20(4) The department may utilize the system to do all of the
21following:

22(A) Assess overall facility quality of care and quality of care
23improvement, and assign quality and accountability payments to
24skilled nursing facilities pursuant to performance measures
25described in subdivision (i).

26(B) Assign quality and accountability payments or penalties
27relating to quality of care, or direct care staffing levels, wages, and
28benefits, or both.

29(C) Limit the reimbursement of legal fees incurred by skilled
30nursing facilities engaged in the defense of governmental legal
31actions filed against the facilities.

32(D) Publish each facility’s quality assessment and quality and
33accountability payments in a manner and form determined by the
34director, or his or her designee.

35(E) Beginning with the 2011-12 fiscal year, establish a base
36year to collect performance measures described in subdivision (i).

37(F) Beginning with the 2011-12 fiscal year, in coordination
38with the State Department of Public Health, publish the direct care
39staffing level data and the performance measures required pursuant
40to subdivision (i).

P7    1(b) (1) There is hereby created in the State Treasury, the Skilled
2Nursing Facility Quality and Accountability Special Fund. The
3fund shall contain moneys deposited pursuant to subdivisions (g)
4and (j) to (l), inclusive. Notwithstanding Section 16305.7 of the
5Government Code, the fund shall contain all interest and dividends
6earned on moneys in the fund.

7(2) Notwithstanding Section 13340 of the Government Code,
8the fund shall be continuously appropriated without regard to fiscal
9year to the department for making quality and accountability
10payments, in accordance with subdivision (m), to facilities that
11meet or exceed predefined measures as established by this section.

12(3) Upon appropriation by the Legislature, moneys in the fund
13may also be used for any of the following purposes:

14(A) To cover the administrative costs incurred by the State
15Department of Public Health for positions and contract funding
16required to implement this section.

17(B) To cover the administrative costs incurred by the State
18Department of Health Care Services for positions and contract
19funding required to implement this section.

20(C) To provide funding assistance for the Long-Term Care
21Ombudsman Program activities pursuant to Chapter 11
22(commencing with Section 9700) of Division 8.5.

23(c) No appropriation associated with this bill is intended to
24implement the provisions of Section 1276.65 of the Health and
25Safety Code.

26(d) (1) There is hereby appropriated for the 2010-11 fiscal year,
27one million nine hundred thousand dollars ($1,900,000) from the
28Skilled Nursing Facility Quality and Accountability Special Fund
29to the California Department of Aging for the Long-Term Care
30Ombudsman Program activities pursuant to Chapter 11
31(commencing with Section 9700) of Division 8.5. It is the intent
32of the Legislature for the one million nine hundred thousand dollars
33($1,900,000) from the fund to be in addition to the four million
34one hundred sixty-eight thousand dollars ($4,168,000) proposed
35in the Governor’s May Revision for the 2010-11 Budget. It is
36further the intent of the Legislature to increase this level of
37appropriation in subsequent years to provide support sufficient to
38carry out the mandates and activities pursuant to Chapter 11
39(commencing with Section 9700) of Division 8.5.

P8    1(2) The department, in partnership with the California
2Department of Aging, shall seek approval from the federal Centers
3for Medicare and Medicaid Services to obtain federal Medicaid
4reimbursement for activities conducted by the Long-Term Care
5Ombudsman Program. The department shall report to the fiscal
6committees of the Legislature during budget hearings on progress
7being made and any unresolved issues during the 2011-12 budget
8deliberations.

9(e) There is hereby created in the Special Deposit Fund
10established pursuant to Section 16370 of the Government Code,
11the Skilled Nursing Facility Minimum Staffing Penalty Account.
12The account shall contain all moneys deposited pursuant to
13subdivision (f).

14(f) (1) Beginning with the 2010-11 fiscal year, the State
15Department of Public Health shall use the direct care staffing level
16data it collects to determine whether a skilled nursing facility has
17met the nursing hours per patient per day requirements pursuant
18to Section 1276.5 of the Health and Safety Code.

19(2) (A) Beginning with the 2010-11 fiscal year, the State
20Department of Public Health shall assess a skilled nursing facility,
21licensed pursuant to subdivision (c) of Section 1250 of the Health
22and Safety Code, an administrative penalty if the State Department
23of Public Health determines that the skilled nursing facility fails
24to meet the nursing hours per patient per day requirements pursuant
25to Section 1276.5 of the Health and Safety Code as follows:

26(i) Fifteen thousand dollars ($15,000) if the facility fails to meet
27the requirements for 5 percent or more of the audited days up to
2849 percent.

29(ii) Thirty thousand dollars ($30,000) if the facility fails to meet
30the requirements for over 49 percent or more of the audited days.

31(B) (i) If the skilled nursing facility does not dispute the
32determination or assessment, the penalties shall be paid in full by
33the licensee to the State Department of Public Health within 30
34days of the facility’s receipt of the notice of penalty and deposited
35into the Skilled Nursing Facility Minimum Staffing Penalty
36Account.

37(ii) The State Department of Public Health may, upon written
38notification to the licensee, request that the department offset any
39moneys owed to the licensee by the Medi-Cal program or any other
P9    1payment program administered by the department to recoup the
2penalty provided for in this section.

3(C) (i) If a facility disputes the determination or assessment
4made pursuant to this paragraph, the facility shall, within 15 days
5of the facility’s receipt of the determination and assessment,
6simultaneously submit a request for appeal to both the department
7and the State Department of Public Health. The request shall
8include a detailed statement describing the reason for appeal and
9include all supporting documents the facility will present at the
10hearing.

11(ii) Within 10 days of the State Department of Public Health’s
12receipt of the facility’s request for appeal, the State Department
13of Public Health shall submit, to both the facility and the
14department, all supporting documents that will be presented at the
15hearing.

16(D) The department shall hear a timely appeal and issue a
17decision as follows:

18(i) The hearing shall commence within 60 days from the date
19of receipt by the department of the facility’s timely request for
20appeal.

21(ii) The department shall issue a decision within 120 days from
22the date of receipt by the department of the facility’s timely request
23for appeal.

24(iii) The decision of the department’s hearing officer, when
25issued, shall be the final decision of the State Department of Public
26Health.

27(E) The appeals process set forth in this paragraph shall be
28exempt from Chapter 4.5 (commencing with Section 11400) and
29Chapter 5 (commencing with Section 11500), of Part 1 of Division
303 of Title 2 of the Government Code. The provisions of Section
31100171 and 131071 of the Health and Safety Code shall not apply
32to appeals under this paragraph.

33(F) If a hearing decision issued pursuant to subparagraph (D)
34is in favor of the State Department of Public Health, the skilled
35nursing facility shall pay the penalties to the State Department of
36Public Health within 30 days of the facility’s receipt of the
37decision. The penalties collected shall be deposited into the Skilled
38Nursing Facility Minimum Staffing Penalty Account.

39(G) The assessment of a penalty under this subdivision does not
40supplant the State Department of Public Health’s investigation
P10   1process or issuance of deficiencies or citations under Chapter 2.4
2(commencing with Section 1417) of Division 2 of the Health and
3Safety Code.

4(g) The State Department of Public Health shall transfer, on a
5monthly basis, all penalty payments collected pursuant to
6subdivision (f) into the Skilled Nursing Facility Quality and
7Accountability Special Fund.

8(h) Nothing in this section shall impact the effectiveness or
9utilization of Section 1278.5 or 1432 of the Health and Safety Code
10relating to whistleblower protections, or Section 1420 of the Health
11and Safety Code relating to complaints.

12(i) (1) Beginning in the 2010-11 fiscal year, the department,
13in consultation with representatives from the long-term care
14industry, organized labor, and consumers, shall establish and
15publish quality and accountability measures, benchmarks, and data
16submission deadlines by November 30, 2010.

17(2) The methodology developed pursuant to this section shall
18include, but not be limited to, the following requirements and
19performance measures:

20(A) Beginning in the 2011-12 fiscal year:

21(i) Immunization rates.

22(ii) Facility acquired pressure ulcer incidence.

23(iii) The use of physical restraints.

24(iv) Compliance with the nursing hours per patient per day
25requirements pursuant to Section 1276.5 of the Health and Safety
26Code.

27(v) Resident and family satisfaction.

28(vi) Direct care staff retention, if sufficient data is available.

begin insert

29(B) Beginning in the 2016-17 fiscal year, compliance with the
30certified nursing assistant staff-to-patient ratio requirements
31pursuant to Section 1276.65 of the Health and Safety Code.

end insert
begin delete

32(B)

end delete

33begin insert(end insertbegin insertC)end insert If this act is extended beyond the dates on which it becomes
34inoperative and is repealed, in accordance with Section 14126.033,
35the department, in consultation with representatives from the
36long-term care industry, organized labor, and consumers, beginning
37in the 2013-14 rate year, shall incorporate additional measures
38into the system, including, but not limited to, quality and
39accountability measures required by federal health care reform
P11   1that are identified by the federal Centers for Medicare and Medicaid
2Services.

begin delete

3(C)

end delete

4begin insert(end insertbegin insertD)end insert The department, in consultation with representatives from
5the long-term care industry, organized labor, and consumers, may
6incorporate additional performance measures, including, but not
7limited to, the following:

8(i) Compliance with state policy associated with the United
9States Supreme Court decision in Olmstead v. L.C. ex rel. Zimring
10(1999) 527 U.S. 581.

11(ii) Direct care staff retention, if not addressed in the 2012-13
12rate year.

13(iii) The use of chemical restraints.

14(j)  (1)  Beginning with the 2010-11 rate year, and pursuant to
15subparagraph (B) of paragraph (5) of subdivision (a) of Section
1614126.023, the department shall set aside savings achieved from
17setting the professional liability insurance cost category, including
18any insurance deductible costs paid by the facility, at the 75th
19percentile. From this amount, the department shall transfer the
20General Fund portion into the Skilled Nursing Facility Quality and
21Accountability Special Fund. A skilled nursing facility shall
22provide supplemental data on insurance deductible costs to
23facilitate this adjustment, in the format and by the deadlines
24determined by the department. If this data is not provided, a
25facility’s insurance deductible costs will remain in the
26administrative costs category.

27(2) Notwithstanding paragraph (1), for the 2012-13 rate year
28only, savings from capping the professional liability insurance cost
29category pursuant to paragraph (1) shall remain in the General
30Fund and shall not be transferred to the Skilled Nursing Facility
31Quality and Accountability Special Fund.

32(k) Beginning with the 2013-14 rate year, if there is a rate
33increase in the weighted average Medi-Cal reimbursement rate,
34the department shall set aside the first 1 percent of the weighted
35average Medi-Cal reimbursement rate increase for the Skilled
36Nursing Facility Quality and Accountability Special Fund.

37(l) If this act is extended beyond the dates on which it becomes
38inoperative and is repealed, in accordance with Section 14126.033,
39beginning with the 2014-15 rate year, in addition to the amount
40set aside pursuant to subdivision (k), if there is a rate increase in
P12   1the weighted average Medi-Cal reimbursement rate, the department
2shall set aside at least one-third of the weighted average Medi-Cal
3reimbursement rate increase, up to a maximum of 1 percent, from
4which the department shall transfer the General Fund portion of
5this amount into the Skilled Nursing Facility Quality and
6Accountability Special Fund.

7(m) (1)  (A)  Beginning with the 2013-14 rate year, the
8department shall pay a supplemental payment, by April 30, 2014,
9to skilled nursing facilities based on all of the criteria in subdivision
10(i), as published by the department, and according to performance
11measure benchmarks determined by the department in consultation
12with stakeholders.

13(B) (i) The department may convene a diverse stakeholder
14group, including, but not limited to, representatives from consumer
15groups and organizations, labor, nursing home providers, advocacy
16organizations involved with the aging community, staff from the
17Legislature, and other interested parties, to discuss and analyze
18alternative mechanisms to implement the quality and accountability
19payments provided to nursing homes for reimbursement.

20(ii) The department shall articulate in a report to the fiscal and
21appropriate policy committees of the Legislature the
22implementation of an alternative mechanism as described in clause
23(i) at least 90 days prior to any policy or budgetary changes, and
24seek subsequent legislation in order to enact the proposed changes.

25(2) Skilled nursing facilities that do not submit required
26performance data by the department’s specified data submission
27deadlines pursuant to subdivision (i) shall not be eligible to receive
28supplemental payments.

29(3) Notwithstanding paragraph (1), if a facility appeals the
30performance measure of compliance with the nursing hours per
31patient per day requirements, pursuant to Section 1276.5 of the
32Health and Safety Code, to the State Department of Public Health,
33and it is unresolved by the department’s published due date, the
34department shall not use that performance measure when
35determining the facility’s supplemental payment.

36(4) Notwithstanding paragraph (1), if the department is unable
37to pay the supplemental payments by April 30, 2014, then on May
381, 2014, the department shall use the funds available in the Skilled
39Nursing Facility Quality and Accountability Special Fund as a
40result of savings identified in subdivisions (k) and (l), less the
P13   1administrative costs required to implement subparagraphs (A) and
2(B) of paragraph (3) of subdivision (b), in addition to any Medicaid
3funds that are available as of December 31, 2013, to increase
4provider rates retroactively to August 1, 2013.

5(n) The department shall seek necessary approvals from the
6federal Centers for Medicare and Medicaid Services to implement
7this section. The department shall implement this section only in
8a manner that is consistent with federal Medicaid law and
9regulations, and only to the extent that approval is obtained from
10the federal Centers for Medicare and Medicaid Services and federal
11financial participation is available.

12(o) In implementing this section, the department and the State
13Department of Public Health may contract as necessary, with
14California’s Medicare Quality Improvement Organization, or other
15entities deemed qualified by the department or the State
16Department of Public Health, not associated with a skilled nursing
17facility, to assist with development, collection, analysis, and
18reporting of the performance data pursuant to subdivision (i), and
19with demonstrated expertise in long-term care quality, data
20collection or analysis, and accountability performance measurement
21models pursuant to subdivision (i). This subdivision establishes
22an accelerated process for issuing any contract pursuant to this
23section. Any contract entered into pursuant to this subdivision shall
24be exempt from the requirements of the Public Contract Code,
25through December 31, 2013.

26(p) Notwithstanding Chapter 3.5 (commencing with Section
2711340) of Part 1 of Division 3 of Title 2 of the Government Code,
28the following shall apply:

29(1) The director shall implement this section, in whole or in
30part, by means of provider bulletins, or other similar instructions
31without taking regulatory action.

32(2) The State Public Health Officer may implement this section
33by means of all facility letters, or other similar instructions without
34taking regulatory action.

35(q) Notwithstanding paragraph (1) of subdivision (m), if a final
36judicial determination is made by any state or federal court that is
37not appealed, in any action by any party, or a final determination
38is made by the administrator of the federal Centers for Medicare
39and Medicaid Services, that any payments pursuant to subdivisions
40(a) and (m), are invalid, unlawful, or contrary to any provision of
P14   1federal law or regulations, or of state law, these subdivisions shall
2become inoperative, and for the 2011-12 rate year, the rate increase
3provided under subparagraph (A) of paragraph (4) of subdivision
4(c) of Section 14126.033 shall be reduced by the amounts described
5in subdivision (j). For the 2013-14 rate year, and for each
6subsequent rate year, any rate increase shall be reduced by the
7amounts described in subdivisions (j) to (l), inclusive.

8

SEC. 3.  

No reimbursement is required by this act pursuant to
9Section 6 of Article XIII B of the California Constitution because
10the only costs that may be incurred by a local agency or school
11district will be incurred because this act creates a new crime or
12infraction, eliminates a crime or infraction, or changes the penalty
13for a crime or infraction, within the meaning of Section 17556 of
14the Government Code, or changes the definition of a crime within
15the meaning of Section 6 of Article XIII B of the California
16Constitution.

17

SEC. 4.  

Section 2 of this act shall only become operative if the
18Medi-Cal Long-Term Care Reimbursement Act (Article 3.8
19(commencing with Section 14126) of Chapter 7 of Part 3 of
20Division 9 of the Welfare and Institutions Code) is operative on
21January 1, 2016.



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