BILL NUMBER: SB 980 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 22, 2016
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,
1034, 1035.3, 1038, 1038.5, and 1044 of, to add Sections
79.3, 79.4, 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
Sections 1011 and 1012.4 of, the Military and
Veterans Code, relating to veterans, and making an
appropriation therefor. veterans.
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 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 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, homes and to prioritize admission for
veterans with service- related disabilities, 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.
regulations, and would expand those provisions to include
domestic partners.
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. a resident's or
applicant's income or suitability for residence at a veteran
s ' home and would provide that providing false
information or failure to pay fees is grounds for financial penalties
or discharge from a veteran s ' home.
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. provision.
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. provide that failure to
pay fees is cause for the administrator to refer the resident to
collections or dismiss the resident from the home.
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 no
. Fiscal committee: yes. State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 79.3 is added to the
Military and Veterans Code , to read:
79.3. (a) Notwithstanding any other law, the department may
adopt, amend, or repeal regulations concerning the administration and
operation of the Veterans' Home of California. Except as otherwise
provided, these regulations shall be adopted pursuant to the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code).
(b) The department may adopt, amend, and repeal emergency
regulations concerning the administration and operation of the
Veterans' Home of California in compliance with Section 11346.1 of
the Government Code. However, if special circumstances, as defined in
subdivision (c), are present, then those regulations shall not be
subject to the requirements regarding findings of emergency in
paragraph (2) of subdivision (b) of Section 11346.1 of the Government
Code.
(c) Special circumstances shall be deemed to exist if the
Secretary of Veterans Affairs states in writing that the adoption,
amendment, or repeal is necessary for one or more of the following
reasons:
(1) The possible loss or delay in the receipt of federal, state,
or local funding.
(2) The need to maintain licensing or certification by any state
or federal agency for any Veterans' Home of California facility or
program.
(3) The need to protect against a serious and immediate threat to
the health or safety of residents or staff in one or more of the
facilities of the Veterans' Home of California.
(4) The urgent need to comply immediately with recommendations of
the Department of Finance or the California State Auditor.
SEC. 2. Section 79.4 is added to the
Military and Veterans Code , to read:
79.4. (a) The department shall do all of the following concerning
the operation and administration of the veterans' homes:
(1) Take the necessary steps to ensure that all medical or other
facilities under its jurisdiction satisfy all applicable federal and
state licensing, certification, and other approval requirements,
including, but not limited to, the requirements of the United States
Department of Veterans Affairs, the federal Centers for Medicare and
Medicaid Services, the State Department of Public Health, the State
Department of Social Services, and the California State Board of
Pharmacy, including preparation of plans of correction as required.
(2) Develop and maintain clinical policies and procedures,
including both of the following:
(A) Community standards for best clinical practices, including,
but not limited to, practices recommended by the federal Centers for
Disease Control and Prevention and the federal Centers for Medicare
and Medicaid Services.
(B) The appropriate clinical standard of practice.
(3) Adopt fire and life safety policies and procedures consistent
with the requirements of the State Fire Marshal and other applicable
regulatory and licensing agencies.
(4) Adopt earthquake and environmental protection policies and
procedures.
(b) The department may adopt regulations to implement this
section. The adoption, amendment, or repeal of a regulation
authorized by this section is hereby exempted from the rulemaking
provisions of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code).
SECTION 1. SEC. 3. 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. Affairs.
(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 or
domestic partner who has been admitted to residency at any
home.
(g) "Veteran" means a person who is eligible for benefits under
this chapter.
SEC. 2. SEC. 4. Section 1011 of the
Military and Veterans Code is repealed.
SEC. 3. SEC. 5. 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. SEC. 6. 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
with all relevant licensing and certification
agencies, including, but not limited to, the United States
Department of Veterans Affairs for their facilities and
Affairs, the federal Centers for Medicare and Medicaid
Services, the State Department of Social Services, and the State
Department of Public Health 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.
(9) Clarifying the relationship between
the department and allied councils.
(10) Any other policies and procedures to ensure the safe and
effective operation of the homes.
SEC. 5. SEC. 7. 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. SEC. 8. Section 1011.3 is
added to the Military and Veterans Code, to read:
1011.3. The
(a) It is the intent of the Legislature that the department submit
the report required pursuant to this section at a level of detail
that will provide the Legislature and the public with indicators of
the quality of both the health care and the management of facilities
of the Veterans' Home of California without compromising members'
privacy while still in compliance with applicable law and regulation.
By submitting consistent indicators over the long term, the
Legislature will be able to readily see significant changes and more
effectively perform its oversight functions.
(b) The secretary shall make an
annual report to the Senate and Assembly Committees on Veterans
Affairs by January 1 of each year, beginning January 1,
2018, reporting on April 1 of each year, beginning
April 1, 2018. This report shall be in compliance with the federal
Health Insurance Portability and Accountability Act (HIPAA) (Public
Law 104-191) and all relevant laws and regulations related
to patient privacy or other protected information. This report shall
reflect significant veterans veterans
' home-related performance issues, which shall
include, but are not limited to, all of the following:
(a)
(1) Current census and census changes since last
report.
(b)
(2) Any major changes to home policy and the impact of
those changes on the residents.
(c)
(3) Changes in provision of care, including licensure
changes.
(d)
(4) Significant events that impacted the operations of
the home.
(e) Results of regulatory agency inspections or reviews and
corrective action taken to address findings.
(5) Copies of annual licensing survey records.
(f)
(6) 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.
(7) Copies of available data from licensing agencies comparing
veterans' home quality of care metrics to industry averages.
(i)
(8) Other significant issues that may be of interest to
the committee members.
SEC. 7. SEC. 9. Section 1011.4 is
added to the Military and Veterans Code, to read:
1011.4. (a) On or before January 1, 2018,
2019, 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 (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. SEC. 10. 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, 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)
(3) Veterans who qualify for benefits under this chapter who have
disability ratings that have been rated by the United States
Department of Veterans Affairs as being service-connected, as
determined under Part 4 of Title 38 of the Code of Federal
Regulations, may be given priority over other veterans.
(4) 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 do not qualify for
prioritization under paragraph (2) or (3) and can afford to
provide for their own care elsewhere.
(c) A resident spouse or domestic partner 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. SEC. 11. Section 1012.1 of
the Military and Veterans Code is amended to read:
1012.1. (a) Prior to the admission of
a veteran an applicant as a member of
the a veteran s'
home, and at any time during which a veteran
person is a member of the a
veterans ' home, the department may investigate any
applicant's or member's financial status and personal
background 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 member's or
applicant's income and suitability for residence at a veterans' home.
The department may contract with any other state or
federal agency or private entity to conduct such an
investigation in on its behalf.
(b) Providing false financial and other information by an
applicant or member or nonpayment of fees may be grounds for
financial penalties or denial of admission to, or discharge from, a
veterans' home.
SEC. 10. SEC. 12. 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)
(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.
(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. SEC. 13. 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, spouses or domestic
partners, shall pay fees and charges as determined by the
department, department to cover room and
board, 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.
(c) Subdivision (a) shall not apply to penalties for late fee
payment.
(d) Failure to pay the required fees shall be cause for the
administrator to refer the resident to collections or dismiss the
resident from the home.
(e) Retroactive benefit payments from the United States Department
of Veterans Affairs shall be subject to subdivision (a) for the
period of the time covered by the benefit award that the veteran
resided at a veterans' home. The veterans' home shall recompute the
fees and charges previously determined for the benefit period, and
the resident shall be billed for the full amount of fees and charges
due for the benefit period.
SEC. 12. SEC. 14. Section 1012.4 of
the Military and Veterans Code is repealed.
SEC. 15. Section 1012.4 is added to the
Military and Veterans Code , to read:
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 leverage federal contracts for the
procurement of goods and services.
SEC. 13. SEC. 16. Section 1012.6 of
the Military and Veterans Code is repealed.
SEC. 14. SEC. 17. Section 1014 of the
Military and Veterans Code is repealed.
SEC. 15. SEC. 18. Section 1015 of
the Military and Veterans Code is repealed.
SEC. 16. SEC. 19. 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. SEC. 20. Section 1024 of
the Military and Veterans Code is repealed.
SEC. 18. SEC. 21. Section 1033.2 of
the Military and Veterans Code is repealed.
SEC. 19. SEC. 22. 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. 20. SEC. 23. 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. 21. SEC. 24. 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. 25. Section 1038.5 of the Military
and Veterans Code is amended to read:
1038.5. Any money deposited with the home by a veteran
member shall be credited with interest
at no more than the State Monetary Investment Fund rate, less 0.75
percent, interest, pursuant to Section 51.60 of Title
38 and Section 483.10 of Title 42 of the Code of Federal Regulations,
and shall be paid to the veteran
member or to his or her heirs, devisees, legatees, or the
qualified executor or the administrator of his or her estate pursuant
to Section 1037 or Section 1038.
SEC. 22. SEC. 26. 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. 23. SEC. 27. Section 1051 of
the Military and Veterans Code is repealed.