BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 141|
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UNFINISHED BUSINESS
Bill No: SB 141
Author: Soto (D)
Amended: 7/1/05
Vote: 21
SENATE HUMAN SERVICES COMMITTEE : 4-1, 4/12/05
AYES: Simitian, Alarcon, Alquist, Chesbro
NOES: Aanestad
NO VOTE RECORDED: Maldonado, Florez
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SENATE FLOOR : 23-14, 5/9/05
AYES: Alarcon, Alquist, Bowen, Cedillo, Chesbro, Ducheny,
Dunn, Figueroa, Florez, Kehoe, Kuehl, Lowenthal, Machado,
Migden, Murray, Ortiz, Perata, Scott, Simitian, Soto,
Speier, Torlakson, Vincent
NOES: Aanestad, Ackerman, Ashburn, Battin, Campbell, Cox,
Denham, Dutton, Hollingsworth, Maldonado, McClintock,
Morrow, Poochigian, Runner
NO VOTE RECORDED: Escutia, Margett, Romero
ASSEMBLY FLOOR : 58-17, 08/22/05 - See last page for vote
SUBJECT : Residential care facilities: preadmission fee
refunds
SOURCE : California Advocates for Nursing Home Reform
DIGEST : This bill establishes a refund policy in state
CONTINUED
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law for any preadmission fees paid by a new resident of a
facility licensed as a residential care facility for the
elderly.
Assembly Amendments eliminate the requirement for a refund
for residents who leave a facility in their fourth month of
stay.
ANALYSIS : Existing law requires licensing of any
residential care facility for the elderly. The licensing
and regulation of these facilities are provided by the
Department of Social Services (DSS). Today there are 6773
such facilities in California where over 150,000 residents
live.
Current law requires any preadmission fee to be disclosed
to the potential resident as a "written general statement
describing costs associated with the preadmission charges."
This bill amends current law by adding a specific
methodology for any and all preadmission fees charged such
that refunds would always be available based upon the
following standard:
If the applicant decides not to enter the facility
prior to the facility's completion of a preadmission
appraisal or if the facility fails to provide full
written disclosure of the preadmission fee charges and
refund conditions, the applicant or the applicant's
representative shall be entitled to a refund of 100
percent of the preadmission fee.
($1,000 paid = $1,000 received)
If the applicant does not enter the facility after a
preadmission appraisal is conducted, the applicant or
the applicant's representative shall be entitled to a
refund of at least 80 percent of the preadmission fee
amount in excess of five hundred dollars.
($1,000 paid = $400 received)
If the resident leaves the facility for any reason
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during the first month of residency, the resident
shall be entitled to a refund of at least 80 percent
of the preadmission fee amount in excess of five
hundred dollars.
($1,000 paid = $400 received)
If the resident leaves the facility for any reason
during the second month of residency, the resident
shall be entitled to a refund of at least 60 percent
of the preadmission fee amount in excess of five
hundred dollars.
($1,000 paid = $300 received)
If the resident leaves the facility for any reason
during the third month of residency, the resident
shall be entitled to a refund of at least 40 percent
of the preadmission fee amount in excess of five
hundred dollars.
($1,000 paid = $200 received)
The bill explicitly states that the facility may, but is
not required to, make a refund of any portion of the
preadmission fee for residents living in the facility for
four or more months.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 8/22/05)
California Advocates for Nursing Home Reform (source)
Alzheimer's Association
Bet Tzedek Legal Services
Congress of California Seniors
California Alliance for Retired Americans
California Caregiver Resource Centers
California Long Term Care Ombudsman Association
Gray Panthers
Older Women's League of California
San Joaquin County Commission on Aging
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ARGUMENTS IN SUPPORT : The source of this legislation,
California Advocates for Nursing Home Reform (CANHR), argue
that they receive complaints daily from residents of these
facilities about preadmission fees. The practice they are
trying to curb is a phenomenon where new applicants are
being charged anywhere from $100 to $5000 for undetermined
reasons as a condition of admission. If the placement is
not suitable for the person after a few months, they find
they cannot get any of the fee refunded in many
circumstances.
Supporters argue that "preadmission fees act like security
deposits, which are not allowed today, or act like a club
membership but pay for no real service." The lack of
refundability, particularly of the higher fees make it
"difficult, if not impossible for consumers to move to
another facility when the situation does not work out."
ASSEMBLY FLOOR :
AYES: Aghazarian, Arambula, Baca, Bass, Benoit, Berg,
Bermudez, Calderon, Canciamilla, Chan, Chavez, Chu,
Cogdill, Cohn, Coto, De La Torre, Dymally, Emmerson,
Evans, Frommer, Garcia, Goldberg, Hancock, Jerome Horton,
Shirley Horton, Houston, Jones, Karnette, Klehs, Koretz,
Laird, Leno, Levine, Lieber, Liu, Matthews, Montanez,
Mullin, Nakanishi, Nation, Nava, Negrete McLeod, Oropeza,
Parra, Pavley, Richman, Sharon Runner, Ruskin, Saldana,
Salinas, Spitzer, Torrico, Tran, Umberg, Vargas, Wolk,
Yee, Nunez
NOES: Blakeslee, Bogh, Daucher, DeVore, Haynes, Huff,
Keene, La Malfa, Leslie, Maze, Mountjoy, Niello, Plescia,
Strickland, Villines, Walters, Wyland
NO VOTE RECORDED: Harman, La Suer, McCarthy, Ridley-Thomas,
Vacancy
CTW:nl 8/23/05 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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