BILL NUMBER: SB 980	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 31, 2016
	AMENDED IN SENATE  APRIL 26, 2016

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
add Sections 1011.1, 1011.2, 1011.3, and 1011.4 to,  to repeal
Sections 1012.4, 1012.6, 1014, 1015, 1024, 1033.2, and 1051 of, 
and  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 amended, 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,   Senate
and Assembly Committees on Veterans Affairs,  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 Morale, 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, the following terms have the
following meanings:
   (a) "Administrator" means the senior executive appointed to
oversee the operations of a home.
   (b) "Department" means the Department of Veterans Affairs.
   (c) "Deputy secretary" means the Deputy Secretary of Veterans
Homes.
   (d) "Director" or "secretary" means the Secretary of Veterans
Affairs.
   (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.
  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   Senate
and Assembly Committees on Veterans Affairs  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.  (a) 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.
   (b) The electronic medical record system required by this section,
and all transactions made in that system, shall comply with the
Confidentiality of Medical Information Act (Part 2.6 (commencing with
Section 56) of Division 1 of the Civil Code), Chapter 1 (commencing
with Section 123100) of Part 1 of Division 106 of the Health and
Safety Code, the Information Practices Act of 1977 (Chapter 1
(commencing with Section 1798) of Title 1.8 of Part 4 of Division 3
of the Civil Code), the federal Health Insurance Portability and
Accountability Act (HIPAA)(Public Law 104-191), the federal Health
Information Technology for Economic and Clinical Health Act (HITECH)
(Public Law 111-005), and all corresponding regulations relating to
privacy and security.
  SEC. 8.  Section 1012 of the Military and Veterans Code is amended
to read:
   1012.  (a) The home is for aged and disabled persons who served in
the Armed Forces of the United  States of America, 
 States,  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, that the 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, 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 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 ensure that the member is
unable to pay for necessary care outside of the 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) 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.
  SEC. 13.  Section 1012.6 of the Military and Veterans Code is
repealed.
  SEC. 14.  Section 1014 of the Military and Veterans Code is
repealed.
  SEC. 15.  Section 1015 of the Military and Veterans Code is
repealed.
  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 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. All moneys received in connection therewith shall be deposited
in the General Fund as a reimbursement for operating costs of the
home.
  SEC. 17.  Section 1024 of the Military and Veterans Code is
repealed. 
  SEC. 18.    Section 1031 of the Military and
Veterans Code is amended to read:
   1031.  All moneys received by the state from the United States for
the use of the home shall be deposited into the General Fund as a
reimbursement for operating costs of the home. 
   SEC. 19.  SEC. 18.   Section 1033.2 of
the Military and Veterans Code is repealed.
   SEC. 20.   SEC. 19.   Section 1034 of
the Military and Veterans Code is amended to read:
   1034.  Except money received from this 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 administrator of the
home. On or before the 10th day of each month, the administrator of
the home shall forward to the Treasurer all moneys in his or her
possession, except pension and other moneys belonging to veterans,
trust moneys, the post funds, the emergency fund, and donations made
to each home, hereinafter mentioned, together with a statement of the
sources from which the moneys have been received. The moneys shall
be deposited by the Treasurer to the credit of the General Fund;
provided, however, that abatements of support expenditures shall be
credited to the support appropriation current at the time of
collection.
   SEC. 21.   SEC. 20.   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 fifteen
thousand dollars ($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 fifteen thousand dollars
($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 fifteen thousand dollars ($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 fifteen thousand dollars ($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.  SEC. 21.   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 five thousand dollars
($5,000), or within a period of five years thereafter, if the amount
exceeds five thousand dollars ($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.   SEC. 22.   Section 1044 of
the Military and Veterans Code is amended to read:
   1044.  The 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.   SEC. 23.   Section 1051 of
the Military and Veterans Code is repealed.