BILL NUMBER: SB 980	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Nielsen

                        FEBRUARY 10, 2016

   An act to amend Sections 1010, 1012, 1012.1, 1012.2, 1012.3, 1023,
1031, 1034, 1035.3, 1038, and 1044 of, to repeal Sections 1012.4,
1012.6, 1014, 1015, 1024, 1033.2, and 1051 of, to repeal and add
Section 1011 of, and to add Sections 1011.1, 1011.2, 1011.3, and
1011.4 to, the Military and Veterans Code, relating to veterans, and
making an appropriation therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 980, as introduced, Nielsen. Veterans' homes.
   Existing law provides for the establishment and operation of
veterans' homes at various sites, and provides for an administrator
of each home, as specified. Existing law establishes the duties of
the Department of Veterans Affairs with regard to the establishment
and regulation of veterans' homes.
   This bill would revise and recast those provisions. Among other
things, the bill would provide that the administrator is the senior
executive appointed to oversee the operations of a veterans' home.
The bill would specify which veterans' homes are administered by the
Department of Veterans Affairs. The bill would require the Secretary
of Veterans Affairs to adopt uniform statewide policies and
procedures, by regulation, for the operation of those veterans'
homes, as specified. The bill would require the department to
establish a quality of care assessment team, by a specified date, to
conduct periodic reviews of each veterans' home. The bill would
require the secretary to implement a statewide electronic medical
record system for veterans' homes by a specified date. The bill would
require the secretary to annually report to the veterans policy
committees of the Legislature, as specified.
   Existing law establishes the criteria for admission to a veterans'
home, as specified. Existing law establishes the fees and charges
for residency, as established by each administrator of a home, and
requires each administrator to adopt rules and regulations for the
administration of the homes.
   This bill would instead require that the fees and charges be
established by the secretary, rather than by each administrator, and
that the secretary adopt rules and regulations that apply to the
homes and the criteria for admission. The bill would authorize the
secretary to establish needs-based criteria for admission to veterans'
homes, as specified.
   Existing law authorizes a resident spouse to continue his or her
residency after a veteran spouse's death.
   This bill would require a resident spouse who continues residency
after a veteran spouse's death to continue to pay all applicable fees
and to comply with all department regulations.
   Existing law authorizes the department to investigate a veteran's
financial status for admission purposes.
   This bill would further authorize the department to determine the
total worth of any member's property or assets for purposes of
admission, including to validate income levels for purposes of
establishing fees.
   Existing law requires 100% of the moneys received by a veterans'
home from veterans receiving federal aid to be placed to the credit
of the home to augment the current appropriation for the support of
the home.
   This bill would delete that provision, and would instead require
moneys received by a veterans' home from those veterans to be
deposited into the Federal Trust Fund, a continuously appropriated
fund, to be used for the operating costs of the home. Because the
moneys would be continuously appropriated for those purposes, the
bill would make an appropriation.
   Existing law requires members of a veterans' home to pay fees and
charges as determined by the department, subject to a specified fee
schedule.
   This bill would prohibit the fees paid by a member from exceeding
the average costs of care for the level of care in which the member
currently resides.
   Existing law, upon the death of a veteran in a home, requires any
moneys not in excess of $3,000 held by the home for the veteran to be
paid to the home's Morale, Welfare, and Recreation Fund, if no will
or heir or other family member is discovered within a specified
number of years after his or her death.
   This bill would increase the amount that may be transferred to
$15,000.
   Existing law, upon the departure of a veteran from a home,
requires any moneys not in excess of $3,000 held by the home for the
veteran to be paid to the home's Moral, Welfare, and Recreation Fund,
if the money is not requested by the veteran within a specified
number of years after his or her departure.
   This bill would increase the amount that may be transferred to
$5,000.
   This bill would make other conforming changes and would delete
obsolete provisions and references, as specified.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1010 of the Military and Veterans Code is
amended to read:
   1010.  As used in this  chapter:   chapter,
the following terms have the following meanings:  
   (a) "Home" means the Veterans' Home of California, Yountville, and
the Veterans' Home of California, Barstow.  
   (b) 
    (a)  "Administrator" means the  Administrator of
the Veterans' Home of California, Yountville, and the Administrator
of each site of the southern California Veterans' Home, including,
but not limited to, the Veterans' Home of California, Barstow.
  senior executive appointed to oversee the operations
of a home.  
   (c) 
    (b)  "Department" means the Department of Veterans
Affairs. 
   (c) "Deputy secretary" means the Deputy Secretary of Veterans
Homes. 
   (d) "Director" or  "secretary"  means the 
Director   Secretary  of Veterans Affairs. 

   (e) "Veteran" means a member of the home.  
   (e) "Home" means any facility operated by the department for the
provision of long-term care, assisted living, adult day health,
independent living, or other health care services to eligible
veterans.  
   (f) "Member" means any veteran or nonveteran spouse who has been
admitted to residency at any home.  
   (g) "Veteran" means a person who is eligible for benefits under
this chapter. 
  SEC. 2.  Section 1011 of the Military and Veterans Code is
repealed. 
   1011.  (a) There is in the department a Veterans' Home of
California, Yountville, situated at Veterans' Home, Napa County.
   (b) (1) The department may establish and construct a second home
that shall be situated in the County of Imperial, Los Angeles,
Orange, Riverside, San Bernardino, San Diego, or Ventura. The home
may be located on one or more sites. The department shall operate the
second home concurrently with the first home.
   (2) The initial site is the Veterans' Home of California, Barstow,
situated in Barstow, San Bernardino County. That site may provide
skilled nursing care for up to 250 residents.
   (3) When completed, the second site shall be the Veterans' Home of
California, Chula Vista, situated in Chula Vista, San Diego County,
pursuant to the recommendations made by the commission established
pursuant to former Section 1011.5.
   (4) When completed, the third site shall be the Veterans' Home of
California, Lancaster, situated in Lancaster, Los Angeles County,
pursuant to the recommendations made by the commission established
pursuant to former Section 1011.5.
   (5) When completed, the fourth site shall be the Veterans' Home of
California, Ventura, situated in the community of Saticoy, Ventura
County.
   (6) There shall be an administrator for, and located at, each site
of the southern California home.
   (7) The department may complete any preapplication process
necessary with the United States Department of Veterans Affairs for
construction of the second home.
   (c) The Legislature hereby finds and declares that the second home
is a new state function. The department may perform any or all work
in operating the second home by independent contractors, except the
overall administration and management of the home. Any and all
actions of the department taken before September 17, 1996, that are
consistent with this subdivision are hereby ratified and confirmed,
it having at all times been the intent of the Legislature that the
department be so authorized.
   (d) There shall be an administrator for each home or homesite, who
shall be recommended by the Secretary of Veterans Affairs and
appointed by the Governor, and shall be located at that home or
homesite. The salary for each administrator shall be subject to the
approval of the Department of Human Resources. 
  SEC. 3.  Section 1011 is added to the Military and Veterans Code,
to read:
   1011.  There is in the department a Veterans' Home of California,
which the department shall administer. The Veterans' Home of
California is a system comprising the following subsidiary home
locations:
   (a) The Veterans' Home of California, Yountville, in Napa County.
   (b) The Veterans' Home of California, Barstow, in San Bernardino
County.
   (c) The Veterans' Home of California, Chula Vista, in San Diego
County.
   (d) The Veterans' Home of California, West Los Angeles, in Los
Angeles County.
   (e) The Veterans' Home of California, Lancaster, in Los Angeles
County.
   (f) The Veterans' Home of California, Ventura, in Santa Barbara
County.
   (g) The Veterans' Home of California, Fresno, in Fresno County.
   (h) The Veterans' Home of California, Redding, in Shasta County.
  SEC. 4.  Section 1011.1 is added to the Military and Veterans Code,
to read:
   1011.1.  (a) The secretary shall adopt uniform statewide policies
and procedures, by regulation, in accordance with the Administrative
Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code), for the operation
of the homes. The policies and procedures shall be in conformity, as
nearly as possible, to the rules and regulations of the United States
Department of Veterans Affairs for their facilities and to ensure
that adequate care and a homelike environment is provided in a
cost-effective manner for members of the homes.
   (b) These policies and procedures shall implement the requirements
to obtain and maintain required licenses and accreditations, as well
as to ensure members in all homes throughout the state, to the
extent possible, receive equitable treatment, benefits, and services,
and to ensure that high-quality care is provided.
   (c) These policies and procedures shall include, but are not
limited to, all of the following:
   (1) The admission of applicants.
   (2) The conditions upon which members may enter and remain in the
home.
   (3) Resident disciplinary procedures.
   (4) Quality of care standards.
   (5) An internal quality of care review process.
   (6) Delineating which services will be provided to members by the
state.
   (7) Setting staffing standards.
   (8) Staff training requirements.
   (9) Establishment and operation of allied councils.
   (10) Any other policies and procedures to ensure the safe and
effective operation of the homes.
   (d) On or before July 1, 2017, the department shall establish a
quality of care assessment team, from within existing resources, to
conduct periodic reviews of how each home meets the quality of care
standards adopted pursuant to this section.
  SEC. 5.  Section 1011.2 is added to the Military and Veterans Code,
to read:
   1011.2.  (a) There shall be an administrator for each home, who
shall be recommended by the secretary and appointed by the Governor,
and who shall be located at that home. The salary for each
administrator shall be subject to the approval of the Department of
Human Resources.
   (b) The administrator shall be responsible for ensuring compliance
with all state and federal statutes and regulations related to the
operation of the home and for implementation of all statewide
policies and procedures, as specified in Section 1011.1.
  SEC. 6.  Section 1011.3 is added to the Military and Veterans Code,
to read:
   1011.3.  The secretary shall make an annual report to the veterans
policy committees of the Legislature by January 1 of each year,
beginning January 1, 2018, reporting on significant veterans
home-related performance issues, which shall include, but are not
limited to, all of the following:
   (a) Current census and census changes since last report.
   (b) Any major changes to home policy and the impact of those
changes on the residents.
   (c) Changes in provision of care, including licensure changes.
   (d) Significant events that impacted the operations of the home.
   (e) Results of regulatory agency inspections or reviews and
corrective action taken to address findings.
   (f) Significant patient care complaints, results of any
investigations into those complaints, and any corrective action taken
to address validated complaints.
   (g) Results of internal quality of care reviews.
   (h) A comparison of veterans home quality of care metrics to
industry averages.
   (i) Other significant issues that may be of interest to the
committee members.
  SEC. 7.  Section 1011.4 is added to the Military and Veterans Code,
to read:
   1011.4.  On or before January 1, 2018, the secretary shall
implement an electronic medical record system. The usage of the
electronic medical record system shall be standardized in all homes.
  SEC. 8.  Section 1012 of the Military and Veterans Code is amended
to read:
   1012.  (a)  Except as provided in Section 1012.4, the
  The  home is for aged and disabled persons who
served in the Armed Forces of the United States of  America
  America,  who were discharged or released from
active duty under honorable conditions from service, who are eligible
for hospitalization or domiciliary care in a veterans' facility in
accordance with the rules and regulations of the United States
Department of Veterans Affairs,  are unable to pay for necessary
domiciliary and licensed long-term care outside the home,  and
who are bona fide residents of this state at the time of application;
and for the spouses of these persons if all of the following
conditions, as are applicable, are satisfied:
   (1) Space is available.
   (2) Joint residency will be in the best interests of the home
member, as determined by the administrator.
   (3) The spouse is a bona fide resident of this state at the time
of application for admission to the home and either is married to,
and has resided with, the home member for at least one year, or is
the widow or widower of a recipient of the Medal of Honor or a former
prisoner of war (POW).
   (4) The home member and spouse agree to pay the fees and charges
for joint residency, or for a widow or widower,  for the
residency,  that the  administrator  
secretary  may establish.
   (b) (1) Veterans who qualify for benefits under this chapter due
to service during a time of war shall be given priority over veterans
who qualify due to service during a time of peace.
   (2) Veterans who qualify for benefits under this chapter who are
recipients of the Medal of Honor or who were prisoners of war (POWs)
shall be given priority over all other qualified veterans, regardless
of the level of care required. 
   (3) The secretary may establish needs-based criteria for admission
to the homes, and any veteran meeting those criteria shall be given
priority over veterans who can afford to provide for their own care
elsewhere. 
   (c) A resident spouse may continue residence after the veteran's
 death.   death, so long as he or she continues
to pay all applicable fees and comply with the department's policies,
procedures, and regulations. 
   (d) The property of the home shall be used for this purpose.
  SEC. 9.  Section 1012.1 of the Military and Veterans Code is
amended to read:
   1012.1.  Prior to the admission of a veteran as a member of the
home, and at any time during which a veteran is a member of the home,
the department may investigate  the veterans'  
any member's  financial status  to determine the total
value of the property and assets of any veteran applying for
admission to the home, or  to  insure  
ensure  that the  veteran   member  is
unable to pay for necessary  hospital or domiciliary
 care outside of the  home.   home, or
to validate income levels for the purposes of establishing fees.
 The department may contract with any other state agency to
conduct such an investigation in its behalf.
  SEC. 10.  Section 1012.2 of the Military and Veterans Code is
amended to read:
   1012.2.  (a) (1) Notwithstanding any other law, any member of the
home who is receiving an aid and attendance allowance from the United
States Department of Veterans Affairs and who has no dependent
spouse, child, grandchild, father, or mother shall pay to the home an
amount equal to that allowance in all levels of care excluding
domiciliary.
   (2) Paragraph (1) shall not apply to a member of the home who is
in intermediate care or skilled nursing care and has a disability
that has been rated by the United States Department of Veterans
Affairs as being 70 percent or more service-connected, as determined
under Part 4 of Title 38 of the Code of Federal Regulations. 

   (b) One hundred percent of the moneys received by the home under
this section shall be placed to the credit of the home and shall
augment the current appropriation for the support of the home.
 
   (b) Moneys received by a home under this section shall be
deposited into the Federal Trust Fund and shall be used for the
operating costs of the home. 
  SEC. 11.  Section 1012.3 of the Military and Veterans Code is
amended to read:
   1012.3.  (a) Members of the home, including members who are
nonveteran spouses, shall pay fees and charges as determined by the
department, except that the total of the individual member's fees and
charges for any fiscal year shall not be greater than as set forth
in the following schedule:
   (1) Forty-seven and one-half percent of the member's annual income
for domiciliary care.
   (2) Fifty-five percent of the member's annual income for
residential care for the elderly or assisted living.
   (3) Sixty-five percent of the member's annual income for
intermediate care.
   (4) Seventy percent of the member's annual income for skilled
nursing care.
   (b) Subdivision (a) shall not apply to a member of the home who is
in intermediate care or skilled nursing care and has a disability
that has been rated by the United States Department of Veterans
Affairs as being 70 percent or more service-connected, as determined
under Part 4 of Title 38 of the Code of Federal Regulations and whose
related payments made under Section 51.41 of Title 38 of the Code of
Federal Regulations are considered by the United States Department
of Veterans Affairs as payment in full for the member's care. 
   (c) Fees paid by a member shall not exceed the average cost of
care for the level of care in which the member currently resides.

  SEC. 12.  Section 1012.4 of the Military and Veterans Code is
repealed. 
   1012.4.  Notwithstanding Section 1012, the department may arrange
by contract or any other form of agreement with the United States
Department of Veterans Affairs to do both of the following:
   (a) Authorize veterans, collateral dependents, and other
beneficiaries authorized by the United States Department of Veterans
Affairs, who are not residents of the Veterans' Home of California,
Yountville, to receive outpatient medical services at that home.
   (b) Establish rates for reimbursement from the federal government
to the State of California for outpatient services rendered by the
Veterans' Home of California, Yountville to veterans who are
authorized under subdivision (a).
   (c) The outpatient services and reimbursement procedures
authorized under subdivisions (a) and (b) may be established for the
veterans' home located in Barstow, California, and any veterans' home
constructed within the state on or after January 1, 2000. 
  SEC. 13.  Section 1012.6 of the Military and Veterans Code is
repealed. 
   1012.6.  The department may accept and process applications from
veterans who are seeking residency at a home, beginning on the start
date of construction of that particular home. 
  SEC. 14.  Section 1014 of the Military and Veterans Code is
repealed. 
   1014.  The home shall be under the management and control of the
department and subject to the policies adopted by the California
Veterans Board. 
  SEC. 15.  Section 1015 of the Military and Veterans Code is
repealed. 
   1015.  (a) It is the intent of the Legislature that installation
of air-conditioning at the hospital and related buildings of the home
be given high priority whenever any new construction or
reconstruction is done, and that this construction or reconstruction
be accelerated so as to accomplish the purposes of this section. The
department shall, in this connection, consider whether construction
of a new hospital facility at the home may be more cost-effective
than renovation of the existing facility. The Master Plan for the
Veterans' Home of California construction schedule shall be revised
to reflect this acceleration. The department shall submit the revised
schedule to the Legislature on or before November 1, 1984. For each
additional year of the master plan following the 1984-85 fiscal year,
the Governor's Budget shall include an appropriation in an amount
necessary to complete all projects relating to the installation of
air-conditioning as shown in the revised schedule.
   (b) The sum of ninety-one thousand dollars ($91,000) is hereby
appropriated from the Special Account for Capital Outlay in the
General Fund to the Department of Veterans Affairs for expenditure
during the 1984-85 fiscal year for the purposes of subdivision (a) in
accordance with the following schedule:
Renovate hospital support services
(preliminary plans).................    16,000
Hospital wards 1, 2, 3A (SNF)
(preliminary plans).................    45,000
Section B (ICF)
(preliminary plans).................    30,000


   (c) Notwithstanding any other provision of law, the department,
through the Office of the State Architect, may prepare and advertise
bids for any master plan project in advance of funds being
appropriated by the Legislature, but shall not award any contract for
construction of the project until construction funds are available
and appropriated therefor.
   (d) No contract for construction of any project related to the
master plan shall be entered into prior to the department's obtaining
a written commitment from the federal government to fund either 65
percent of the project cost, as approved by the federal government,
or the maximum amount available to the state. 
  SEC. 16.  Section 1023 of the Military and Veterans Code is amended
to read:
   1023.  (a) The department may sue and be sued in any of the courts
of this state. All property held by the department for the home
shall be held in trust for the state and for the use and benefit of
the home. The  administrator shall manage the home and
administer its affairs, and, subject to the direction of the
director, adopt rules and regulations for the government of the home
in conformity, as nearly as possible, to the rules and regulations of
the United States Department of Veterans Affairs for their
facilities.   secretary shall adopt rules and
regulations for the administration of the homes conforming as nearly
as possible to the rules and regulations of the United States
Department of Veterans Affairs and those of other states with
veterans' homes. 
   (b) The Director of General Services may lease or let any real
property held by the department for the home, and not needed for any
direct or immediate purpose of the home, to any entity or person upon
terms and conditions determined to be in the best interests of the
home.  In any leasing or letting, primary consideration shall
be given to the use of real property for agricultural purposes, and
except as provided in Section 1048, all   All 
moneys received in connection therewith shall be deposited in the
General Fund  to the credit of, and shall augment the current
appropriation for the support of, the home.   as a
reimbursement for operating costs of the home. 
  SEC. 17.  Section 1024 of the Military and Veterans Code is
repealed. 
   1024.  The department may conduct such investigation as may be
required to determine the total value of the property and assets of
any veteran applying for admission to the home, and may contract with
any other state agency to conduct such an investigation in its
behalf. 
  SEC. 18.  Section 1031 of the Military and Veterans Code is amended
to read:
   1031.  All moneys received by the  State  
state  from the United States for the use of the home shall be
 placed to the credit of and shall augment the current
appropriation for the support of the home.   depo 
 sited into the General Fund as a reimbursement for operating
costs of the home. 
  SEC. 19.  Section 1033.2 of the Military and Veterans Code is
repealed. 
   1033.2.  If the total amount collected for reimbursements for
Medi-Cal and Medicare services provided in any fiscal year by a
veterans' home exceeds the budgeted reimbursements for that home, the
additional funds collected shall be used to repay any unpaid General
Fund loans provided to the veterans' home in prior fiscal years for
the operation of that home. 
  SEC. 20.  Section 1034 of the Military and Veterans Code is amended
to read:
   1034.  Except money received from this  State 
 state  for disbursement, all moneys received by the home,
or by any officer of the home, including pension and other moneys
belonging to veterans and other trust moneys, shall be immediately
paid to the  executive officer   administrator
 of the home. On or before the  tenth  
10th  day of each  month the executive officer 
 month, the administrator  of the home shall forward to the
State Treasurer all moneys in his  or her  possession,
except pension and other moneys belonging to veterans, trust moneys,
the post funds,  and  the emergency fund,  and
donations made to each home,  hereinafter mentioned, together
with a statement of the sources from which the  same
  moneys  have been received. The moneys shall be
deposited by the State Treasurer to the credit of the General Fund of
the State; provided, however, that abatements of support
expenditures shall be credited to the support appropriation current
at the time of collection.
  SEC. 21.  Section 1035.3 of the Military and Veterans Code is
amended to read:
   1035.3.  (a) If no will or heir is discovered within two years
after the death of the veteran, any moneys not exceeding 
three   fifteen  thousand dollars  ($3,000)
  ($15,000)  held by the home pursuant to Section
1035 and not paid or otherwise delivered to the heir or heirs or
pursuant to the will of the deceased veteran, or otherwise disbursed
by the administrator pursuant to Section 1035, shall be paid to the
Morale, Welfare, and Recreation Fund.
   If no will or heir is discovered within five years after the death
of the veteran, any moneys exceeding  three  
fifteen  thousand dollars  ($3,000)  
($15,000)  held by the home pursuant to Section 1035 and not
paid or otherwise delivered to the heir or heirs or pursuant to the
will of the deceased veteran, or otherwise disbursed by the
administrator pursuant to Section 1035, shall be paid to the Morale,
Welfare, and Recreation Fund.
   This subdivision applies only to veterans becoming members of the
home on or after January 1, 1984.
   (b) If no spouse, child, grandchild, or father or mother is
discovered within two years after the death of the veteran, any
moneys not exceeding  three   fifteen 
thousand dollars  ($3,000)   ($15,000) 
held by the home pursuant to Section 1035 and not paid or otherwise
delivered to the spouse, children, grandchildren, or father or
mother, or otherwise disbursed by the administrator pursuant to
Section 1035, shall be paid to the Morale, Welfare, and Recreation
Fund.
   If no spouse, child, grandchild, or father or mother is discovered
within five years after the death of the veteran, any moneys
exceeding  three   fifteen  thousand
dollars  ($3,000)   ($15,000)  held by the
home pursuant to Section 1035 and not paid or otherwise delivered to
the spouse, children, grandchildren, or father or mother, or
otherwise disbursed by the administrator pursuant to Section 1035,
shall be paid to the Morale, Welfare, and Recreation Fund.
   This subdivision applies only to veterans who have become members
of the home prior to January 1, 1984.
  SEC. 22.  Section 1038 of the Military and Veterans Code is amended
to read:
   1038.  All money deposited with the home for a veteran shall be
paid to him or her on demand, upon his or her discharge or voluntary
departure from the home. If the money is not so demanded at the time
of his or her discharge or departure or within a period of two years
thereafter, if the amount does not exceed  three 
 five  thousand dollars  ($3,000),  
($5,000),  or within a period of five years thereafter, if the
amount exceeds  three   five  thousand
dollars  ($3,000)   ($5,000)  either by the
veteran, or, in the event of the veteran's death after his or her
discharge or departure, by the veteran's heirs, devisees, legatees,
or qualified executor or administrator of his or her estate, the
money shall be paid to the Morale, Welfare, and Recreation Fund.
  SEC. 23.  Section 1044 of the Military and Veterans Code is amended
to read:
   1044.  The  administrator, in accordance with the policies
adopted by the California Veterans Board and subject to the
direction of the director,   secretary  may adopt
rules and regulations governing the admission of applicants and may
prescribe the conditions upon which they may enter and remain with
the home.
  SEC. 24.  Section 1051 of the Military and Veterans Code is
repealed. 
   1051.  (a) There is hereby established in the State Treasury the
California Veterans Homes Fund to receive those amounts transferred
to the fund pursuant to Section 18811 of the
                  Revenue and Taxation Code.
   (b) Any funds remaining in the Veterans' Quality of Life Fund, as
established by Section 2 of Chapter 143 of the Statutes of 2005,
shall be transferred to the California Veterans Homes Fund
established by subdivision (a).