BILL NUMBER: AB 392	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 22, 2009

INTRODUCED BY   Assembly Members Feuer and Jones
   (Principal coauthor: Assembly Member Bonnie Lowenthal)
    (   Principal coauthor:   Senator 
 Alquist   ) 
   (Coauthors: Assembly Members  Hill,  
  Huffman,  Lieu, Monning,  Price,
 and Ruskin)

                        FEBRUARY 23, 2009

   An act  to amend Section 1417.2 of the Health and Safety
Code,   relating to long-term health care facilities  ,
and making an appropriation therefor  .


	LEGISLATIVE COUNSEL'S DIGEST


   AB 392, as amended, Feuer. Long-term health care facilities.
   Existing law provides for the licensure of long-term health care
facilities by the State Department of Public Health. Under existing
law, the Long-Term Care, Health, Safety, and Security Act of 1973,
the department may assess penalties for violation of prescribed state
and federal requirements. Moneys collected as a result of the
penalties imposed pursuant to these provisions are required to be
deposited into either the State Health Facilities Citation Penalties
Account or the Federal Health Facilities Citation Penalties Account,
and used, upon appropriation by the Legislature, for the protection
of health or property of residents of long-term health care
facilities, including reimbursing residents for personal funds lost
and costs associated with informational meetings.
   Existing law establishes the Office of the State Long-Term Care
Ombudsman in the California Department of Aging. Under existing law,
the office is responsible for, among other things, investigating and
resolving complaints and concerns communicated by or on behalf of
patients, residents, or clients of long-term care facilities, as
defined. Existing law authorizes the California Department of Aging
to allocate all federal and state funds for local ombudsman programs
according to a specified distribution schedule. 
   This bill would require at least 1/2 of the funds in the State
Health Facilities Citation Penalties Account and the Federal Health
Facilities Citation Penalties Account be used to fund local ombudsman
programs pursuant to the aforementioned distribution schedule.
 
   This bill would appropriate $1.6 million from the Federal Health
Facilities Citation Penalties Account to the California Department of
Aging for local ombudsman programs, to be used before the end of the
2009-10 fiscal year. 
   Vote:  majority   2/3  . Appropriation:
 no   yes . Fiscal committee: yes.
State-mandated local program: no.


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

   SECTION 1.    The sum of one million six hundred
thousand dollars ($1,600,000) is hereby appropriated from the Federal
Health Facilities Citation Penalties Account to the California
Department of Aging for use in funding local ombudsman programs
pursuant to the distribution schedule in Section 9719.5 of the
Welfare and Institutions Code. These funds may be used for this
purpose through the end of the 2009-10 fiscal year, at which time
remaining funds shall revert to the originating account. 

  SECTION 1.    Section 1417.2 of the Health and
Safety Code is amended to read:
   1417.2.  (a) Notwithstanding Section 1428, moneys collected as a
result of state and federal civil penalties imposed under this
chapter or federal law shall be deposited into accounts that are
hereby established in the Special Deposit Fund created pursuant to
Section 16370 of the Government Code. These accounts are titled the
State Health Facilities Citation Penalties Account, into which moneys
derived from civil penalties for violations of state law shall be
deposited, and the Federal Health Facilities Citation Penalties
Account, into which moneys derived from civil penalties for
violations of federal law shall be deposited. Moneys from these
accounts shall be used, notwithstanding Section 16370 of the
Government Code, upon appropriation by the Legislature, as follows:
   (1) At least one-half of the funds in the accounts shall be used
to fund the local ombudsman programs pursuant to the distribution
schedule in Section 9719.5 of the Welfare and Institutions Code.
   (2) The remaining funds in the accounts that are not used pursuant
to paragraph (1) shall be used in accordance with state and federal
law for the protection of health or property of residents of
long-term health care facilities, including, but not limited to, the
following:
   (A) Relocation expenses incurred by the department, in the event
of a facility closure.
   (B) Maintenance of facility operation pending correction of
deficiencies or closure, such as temporary management or
receivership, in the event that the revenues of the facility are
insufficient.
   (C) Reimbursing residents for personal funds lost. In the event
that the loss is a result of the actions of a long-term health care
facility or its employees, the revenues of the facility shall first
be used.
   (D) The costs associated with informational meetings required
under Section 1327.2.
   (b) Notwithstanding subdivision (a), the balance in the State
Health Facilities Citation Penalties Account shall not, at any time,
exceed ten million dollars ($10,000,000).
   (c) Moneys from the Federal Health Facilities Citation Penalties
Account, in the amount not to exceed one hundred thirty thousand
dollars ($130,000), may also be used, notwithstanding Section 16370
of the Government Code, upon appropriation by the Legislature, in
accordance with state and federal law for the improvement of quality
of care and quality of life for long-term health care facilities
residents pursuant to Section 1417.3.
   (d) The department shall post on its Internet Web site, and shall
update on a quarterly basis, all of the following regarding the funds
in the State Health Facilities Citation Penalties Account and the
Federal Health Facilities Citation Penalties Account:
   (1) The specific sources of funds deposited into the account.
   (2) The amount of funds in the account that have not been
allocated.
   (3) A detailed description of how funds in the account have been
allocated and expended, including, but not limited to, the names of
persons or entities that received the funds, the amount of salaries
paid to temporary managers, and a description of equipment purchased
with the funds. However, the description shall not include the names
of residents.