BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1142
                                                                  Page  1

          Date of Hearing:   May 11, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 1142 (Chesbro) - As Amended:  April 14, 2011 

          Policy Committee:                              Human 
          ServicesVote:6 - 0 

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          This bill prohibits residential care facilities for the elderly 
          (RCFEs) from charging specific fees for people who are deceased. 
          Specifically, this bill: 

          1)Prohibits an RCFE from charging personal care fees upon notice 
            of the death of a resident.

          2)Prohibits RCFEs from assessing fees for a residential living 
            unit of a deceased resident once all of the personal property 
            belong to the former resident is removed.

          3)Requires that admissions agreement for the RCFE include a 
            clear explanation of the fact that the RCFE is prohibited from 
            charging the above mentioned fees. 

           FISCAL EFFECT  

          Workload associated with this legislation would be minor and 
          absorbable within the Department of Social Services' resources.

           COMMENTS  

           1)Rationale  . This bill is intended to clarify that families 
            cannot be charged fees for personal care services or a 
            residential living unit once a resident is deceased. In 
            addition, this bill requires that these prohibitions be 
            included in the admissions agreement for RCFEs. 

            The author contends that this bill strengthens admission 
            agreements for residents of licensed RCFEs by clarifying the 








                                                                  AB 1142
                                                                  Page  2

            policy regarding contract termination when a resident has 
            passed away.  Currently, regulations allow for admission 
            agreements to include a 30-day cancellation notice even in 
            cases where a resident has passed away.  While this appears to 
            be an uncommon practice, the policy needs to be clarified to 
            eliminate confusion or distress for residents and their 
            families.  This bill ensures that all fees for resident care 
            end immediately once the community is notified of a resident's 
            death and fees for the residential living unit are no longer 
            charged after a deceased resident's personal property has been 
            removed.

           2)Background  . RCFEs serve persons 60 and older. They provide 
            room, board, housekeeping, supervision, and assistance with 
            basic activities like personal hygiene, dressing, eating, and 
            walking. These facilities often store their residents' 
            medication in a central location and assist the residents with 
            self-administering their medication.

            These facilities are designed for people who are unable to 
            live by themselves but who do not need 24-hour nursing care. 
            They are considered non-medical facilities and are not 
            required to have nurses, certified nursing assistants or 
            doctors on staff.

            The Department of Social Services Community Care Licensing 
            Division is responsible for licensing and monitoring all RCFEs 
            in the state.  According to recent data, there are 
            approximately 7,800 RCFEs throughout the state, housing 
            165,000 residents.

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081