BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1454
                                                                  Page  1

          Date of Hearing:   April 9, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  AB 1454 (Calderon) - As Amended:  March 17, 2014 

          Policy Committee:                              Human  
          ServicesVote:7 - 0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill increases the frequency of inspections at facilities  
          licensed by the Department of Social Services (DSS), Community  
          Care Licensing Division (CCLD). Specifically, this bill: 

          1)Changes the requirement that DSS conduct an unannounced  
            licensing inspection visit of child day care facilities,  
            family day care homes, community care facilities and RCFEs  
            from once every five years to annually.  

          2)Requires DSS to conduct "more frequent unannounced visits,"  
            rather than an annual unannounced visit when the terms of the  
            facility's compliance plan requires it or it is a condition of  
            the facility receiving federal financial participation.

          3)Makes other conforming changes.

           FISCAL EFFECT  

          Costs in the range of $20 million dollars (GF) to increase CCLD  
          licensed facility inspections to once every year. CCLD budget  
          reductions over the years have caused the state to adopt  
          policies that reduce standard inspections to about once every  
          three to five years. The proposed budget for CCLD in 2014-15 is  
          $118 million ($36 million GF). This represents an 11% increase  
          above estimated 2013-14 total expenditures (37% above 2013-14 GF  
          expenditures).

          In response to recent health and safety issues discovered at  
          facilities licensed by CCL, the Governor's budget proposes a  
          comprehensive plan to reform the CCL program.  This proposal  








                                                                  AB 1454
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          includes an increase of $7.5 million ($5.8 million GF) for CCL  
          to increase the number of administrative and inspection analyst  
          positions in support of the plan.


           COMMENTS  

           1)Purpose . The intent of this legislation is to significantly  
            increase the number of inspection visits to licensed  
            facilities such as child care centers, residential care  
            facilities for the elderly, family child care homes, and  
            foster family homes. The author of this bill notes that  
            increasing the frequency of licensing visits "will demonstrate  
            that California is serious about addressing the deficiency in  
            our inspection process for Community Care Facilities and will  
            put California on par with the inspection procedures of other  
            states."

           2)Background  . Prior to 2003, the required frequency of CCLD  
            facility visits was annually for most facility types (and  
            tri-annually for family child care).  Since then, in response  
            to the state's fiscal situation, it was deemed necessary to  
            find ways to reduce costs.  As a result CCLD is now required  
            to do unannounced visits annually only in circumstances when  
            the facility has a history of compliance  
            problems-approximately 10% of facilities. For those  
            residential facilities not subject to annual inspections, CCLD  
            is currently required to conduct comprehensive compliance  
            inspections on a 30% random sample of facilities each year,  
            with no facility being visited less than once every five  
            years.  There are additional inspection requirements for new  
            facilities or when changes occur to the license. These  
            pre-licensing inspection and post-licensing inspections help  
            to ensure that a new licensee starts off correctly.

             Related Legislation  .  

             a)   Due to a long-term reform effort by the California  
               Nursing Home Reform group (CANHR), as well as in response  
               to a growing number of highly publicized incidents at  
               licensed community care facilities throughout the state,  
               many bills regarding licensing and inspections at community  
               care facilities, and RCFEs specifically, have been  
               introduced this session.









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             b)   AB 419 (Mitchell, 2011) would have required the  
               department to conduct  an unannounced inspection of a care  
               facility at least once each year and as often as necessary  
               to ensure the quality of care provided.  The bill was held  
               on this committee's Suspense File.


           Analysis Prepared by  :    Jennifer Swenson / APPR. / (916)  
          319-2081