BILL ANALYSIS �
AB 1823
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CONCURRENCE IN SENATE AMENDMENTS
AB 1823 (Yamada)
As Amended June 14, 2012
Majority vote
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|ASSEMBLY: |72-0 |(May 3, 2012) |SENATE: |38-0 |(July 2, 2012) |
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Original Committee Reference: V. A.
SUMMARY : Makes changes to the content of the statement for fees
and charges that is presented to residents of the veterans' home.
Specifically, this bill specifies that residents' quarterly
statements shall include, in clear terms, all of the following:
1)A statement that the charges for the excess costs of care are
provided to the member for information purposes only.
2)A statement that, if the veteran is a resident of the home at
the time of death, the home may use his or her money or personal
property that is in possession of the home for payment of
unreimbursed excess costs of care.
3)A statement that advises the member to seek counsel from a legal
expert to protect his or her assets.
The Senate amendments :
1)Delete the requirement that the statement include language
specifying that the terms and conditions upon which the member's
fees and costs can be changed.
2)Add a requirement that the statement be written in plain,
straightforward language, avoiding technical terms as much as
possible and using a coherent and easily readable style.
EXISTING LAW :
1)Requires a member of a veterans' home to pay fees and charges as
determined by the California Department of Veterans Affairs
(CDVA). Upon admission to a California veterans' home, the
administrator of each home must provide written notice to the
veteran informing him or her of costs of care that may be
incurred in excess of the member contribution fee. The
notification must:
AB 1823
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a) Include an explanation of circumstances under which the
member may incur costs that are in excess of the contribution
fee;
b) Specifically indicate that these excess costs of care are
costs in addition to, or above and beyond, the member
contribution fee;
c) Provide examples of "excess costs of care that are
frequently incurred by veterans;"
d) Inform the member that he or she will receive a quarterly
accounting statement of the total excess costs of care, but
that the statement is provided for informational purposes
only;
e) Inform the veteran that, if he or she is a resident of the
home at the time of death, the home may disburse his or her
moneys or personal property for payment of unreimbursed
excess costs of care;
f) Include a statement advising the member to seek counsel
from a legal expert to protect his or her assets;
g) Include the terms and conditions upon which the member
fees and costs can be changed;
h) The notification shall require the signature of the
veteran that acknowledges that he or she has read and
understands the notification;
i) The notification shall be written in plain,
straightforward language, avoiding technical terms as much as
possible, and using a coherent and easily readable style;
and,
j) A copy of the notification, containing all the information
specified above and titled in large font "NOTICE TO
RESIDENTS," shall be conspicuously posted in each veteran's
home by the administrator of the veterans' home.
2)States that the administrator of the home must provide each
member with a quarterly statement or accounting of all charges
for the costs of care rendered to the member in excess of the
member fee, as defined.
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3)Specifies that the CDVA may recover costs from the estate of the
veteran for payment of funeral expenses or any obligation owed
to the home, including the cost of any care rendered by the home
in excess of the fees paid by the veteran to the home.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar to
the version passed by the Senate, but included an additional
reminder that the terms and conditions on which costs are based
can be changed. The bill lacked an explicit direction to use
plain language and writing.
FISCAL EFFECT : According to the Assembly Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : Residents are already given a notice substantially
similar to the one contemplated in the bill when they become a
member of the home. However, most of the residents of the home
are elderly and/or disabled and they might benefit from additional
reminders located on their quarterly statements. The additional
burden/cost of adding the advisory language to the statement is
"negligible" and the language might bring some peace of mind
and/or avoid surprises for the residents. It will also give
residents more opportunities to plan the disposition of their
assets should they wish to do so.
The Senate amendments do not substantially alter the bill. The
statement will still provide an enhanced reminder for residents.
Analysis Prepared by : John Spangler / V. A. / (916) 319-3550
FN: 0004215