BILL ANALYSIS                                                                                                                                                                                                    �






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                            Senator Jim Beall, Chair


          BILL NO:       AB 1454                                      
          A
          AUTHOR:        Calderon                                     
          B
          VERSION:       May 23, 2014
          HEARING DATE:  June 10, 2014                                
          1
          FISCAL:        Yes                                          
          4
                                                                      
          5
          CONSULTANT:    Sara Rogers                                  
          4

                                        

                                     SUBJECT
                                         
                       Care facilities: regulatory visits

                                     SUMMARY  

          This bill requires the California Department of Social  
          Services (CDSS) to increase the frequency of unannounced  
          licensing visits of community care facilities (CCFs),  
          Residential Care Facilities for the Elderly (RCFEs), child  
          day care centers, and family day care homes incrementally  
          so that by July 1, 2017 every facility shall be visited  
          annually. Additionally, this bill permits a CDSS the  
          discretion of completing a prelicensure survey for a new  
          licensee of a currently licensed RCFE for which there will  
          be no material change to management or operations when the  
          license changes hands.

                                     ABSTRACT  
          
           Existing Law:

          1.Establishes the Community Care Facilities Act, which  
            provides for the licensure and regulation by CDSS of CCFs  

                                                         Continued---




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            defined as nonmedical residential and non-residential  
            facilities for mentally ill, developmentally and  
            physically disabled, and children and adults who require  
            care or services. (HSC Section 1500 et seq.)


          2.Establishes the Residential Care Facilities for the  
            Elderly Act, which provides for the licensure and  
            regulation of RCFEs as a separate category within the  
            existing residential care licensing structure of CDSS.  
            (HSC 1569 et seq.)


          3.Establishes the California Child Day Care Facilities Act  
            to provide for the licensure and regulation of child day  
            care and family day care facilities as a separate  
            licensing category within the existing licensing  
            structure of CDSS (HSC 1596.72 et seq.)


          4.Provides for the CDSS licensure and regulation of small  
            family day care homes serving between six and eight  
            children, as specified, in a residentially zoned and  
            occupied property. (HSC 1597.30 et seq.)


          5.Provides that facilities licensed by CDSS shall be  
            subject to unannounced visits by CDSS and that the  
            department shall visit facilities as often as necessary  
            to ensure the quality of care provided. (HSC 1534,  
            1569.33, 1597.09 and 1597.55a)


          6.Requires annual unannounced inspections when a license is  
            on probation, when required by the terms of a facility  
            compliance plan, when an accusation is pending, when  
            required for federal financial participation (CCFs and  
            RCFEs), or to verify that a person who has been ordered  
            out of the facility is no longer present. (HSC 1534,  
            1569.33, 1597.09 and 1597.55a)


          7.Requires CDSS to perform random inspections each year on  
            no fewer than 20 percent of facilities not subject to  
            annual inspections. Provides that this percentage shall  





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            increase by 10 percent if the total citations issued by  
            the department exceeds the previous year by 10 percent.  
            As a result of this trigger, CDSS currently is required  
            to perform random inspections on 30 percent of the  
            facilities not subject to annual inspection. Requires  
            CDSS to visit every facility no less than every 5 years.  
            (HSC 1534, 1569.33, 1597.09 and 1597.55a)


          8.Requires CDSS to make a determination regarding the  
            completeness of an RCFE license application, and to  
            arrange a time for a prelicensure survey if the license  
            is complete. (HSC 1569.20)


           This bill:

           1.Requires CDSS to increase the frequency of unannounced  
            licensing visits of CCFs, RCFEs and child day care  
            centers as follows:

                     By July 1, 2015, every facility shall be  
                 visited at least once every three years and  
                 establishes in statute the current practice that 30  
                 percent of all facilities are required to receive a  
                 random unannounced visit each year.
                     By July 1, 2016 every facility shall be visited  
                 at least once every two years, and 20 percent of all  
                 facilities are required to receive a random  
                 unannounced visit each year (reduced from the  
                 current standard of 30%)
                     By July 1, 2017 every facility shall visited  
                 annually. 


          1.Deletes the requirement that CDSS increase by 10 percent  
            the random sampling of licensed facilities if there has  
            been a 10 percent increase in the number of citations the  
            previous year.


          2.Provides that a prelicensure survey of a currently  
            licensed RCFE for which there will be no material change  
            to management or operations is optional at the discretion  
            of CDSS.





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                                  FISCAL IMPACT  

          An Assembly Appropriations analysis estimates costs in the  
          range of $20 million (GF) to increase Community Care  
          Licensing Division inspections to once every year. The  
          Governor's current budget proposal includes an increase of  
          $7.5 million for CCLD to restructure the licensing  
          structure.
                            BACKGROUND AND DISCUSSION  

           Purpose of the bill:


           According to the author, California's licensing program  
          performs the essential function of protecting the basic  
          health and safety of children and adults in care. The  
          author states that currently five years or more may elapse  
          between site visits from the licensing program, hardly  
          frequent enough to ensure minimum safety in an industry  
          with high staff turnover.  


          The author additionally states that many recent news  
          reports have highlighted the lack of frequent inspections  
          in facilities across California and the dangers faced by  
          children and the elderly noting that seniors have suffered  
          broken bones, deadly bed sores, sexual assaults and other  
          injuries in assisted living facilities. Additionally, the  
          author states that children have been victims of neglect,  
          endangerment, unkempt conditions, and injuries and that  
          this bill will work to address these problems by requiring  
          CDSS to phase in annual unannounced visits for all  
          community care facilities. The author notes that the bill  
          does not require every inspection to be a comprehensive  
          inspection and will allow the department to continue using  
          its key indicator tool, as well as comprehensive  
          inspections when needed. 


          Regulatory Oversight

          The Community Care Licensing Division (CCLD) of CDSS  
          provides the primary regulatory oversight over the quality  
          and care in 76,627 licensed community care facilities.  





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          These facilities fall under 23 separate licensure  
          categories including adoption agencies, foster family  
          homes, RCFEs, group homes, adult residential facilities,  
          adult day care, child day care facilities and others which  
          provide primarily non-medical care and supervision to 1.4  
          million children and adults in California.<1> 


          Prior to January 2004, CCLD was required to conduct at  
          least annual visits for all licensed community care  
          facilities within its jurisdiction. However, in 2003 under  
          a budget trailer bill enacting substantial budget cuts due  
          to the ongoing deficit, this statute was changed to require  
          that only those facilities which warrant close monitoring  
          because of a poor history of compliance or are federally  
          required to be inspected annually are subject to annual  
          visits (about 10 percent of facilities). The trailer bill  
          required that 10 percent of the remaining facilities not  
          subject to annual inspection would be randomly inspected  
          each year and that no facility shall be visited less than  
          once every five years.<2> 


          The bill included a trigger increasing the percent of  
          random inspections by 10 percent if total citations  
          increased over the prior year by 10 percent or more. Later  
          statute was changed to impose a 20 percent random  
          inspection standard. Today, as a result of the trigger, 30  
          percent of facilities are randomly selected for inspection  
          each year. 


          Currently, CDSS reports there are approximately 462  
          licensing analysts monitoring the care of more than 66,000  
          licensed facilities. In California, 40 counties contract to  
          provide licensing oversight to foster family homes and a  
          handful of counties contract to license family child care  
          homes. The department reports it makes more than 24,000  
          -------------------------


          <1>  http://ccld.ca.gov/res/pdf/countylist.pdf  


          <2> AB 1752 (Committee on Budget) Chapter 225, Statutes of  
          2003






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          annual inspections and investigates more than 13,000  
          complaints involving licensed care. Due to extremely  
          antiquated technology, the department is unable to provide  
          detailed information on the nature of those complaints or  
          how they were resolved. 


          Impact of reduced visit frequency

          A 2008 study published by the California Health Care  
          Foundation investigated the impact on the truncated  
          frequency of visits on RCFEs, and found that "routine  
          visits were replaced with significant increases in the  
          number of complaint and problem-driven visits" and that  
          "the monitoring of quality of care in RCFEs has become a  
          complaint and problem driven process." <3>  CCL has  
          repeatedly sought to restore the cuts made to licensing,  
          arguing that the cuts to staff and resulting changed  
          protocols "have put client health and safety at risk. By  
          not consistently inspecting facilities, or inspecting a  
          facility only as the result of a complaint, CCL (analysts)  
          have lost rapport with licensees, which in turn has not  
          been conducive to helping clients in those facilities."<4>


          Governor's Budget Proposal

          As part of the Governor's 2014-2015 proposed budget, the  
          Administration has put forth a proposal that overlaps with  
          provisions of this bill. Specifically, it proposes to  
          increase CCLD staff by 71.5 positions, with an increase of  
          $7.5 million, creating more specialized workloads that are  
          intended to free up the workload of its Licensing Program  
          Analysts, who then will presumably be able to increase the  
          -------------------------

          -------------------------
          <3> Inspection Visits in Residential Care Facilities for  
          the Elderly. C. Flores, A. Bostrom, and R. Newcomer.  
          California Health Care Foundation, 2008.


          <4> Department of Social Services spring finance letter  
          CCLD-1, 2011-12






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          frequency of inspections.<5> The Governor's budget proposal  
          provides no statutory change to the required visit  
          frequency, though the department indicates that visit  
          frequency is expected to generally increase to each  
          facility being visited at least every two years.


          Overlap with RCFE Reform Act Package

          This bill has substantial overlap with SB 895 (Corbett)  
          which requires incremental build-up to annual visits for  
          RCFE facilities by 2018. That bill, sponsored by California  
          Advocates for Nursing Home Reform is one of a large package  
          of bills that respond to a series of recent events calling  
          into question the adequacy of CDSS oversight and the  
          state's ability to protect people who reside in RCFEs.  
          Specifically, in July 2013, ProPublica and Frontline  
          reporters wrote and produced a series of stories on  
          Emeritus, the nation's largest RCFE provider.<6> Featured  
          in the article was a woman who died after receiving poor  
          care at in a facility in Auburn, California. The series  
          documented chronic understaffing and a lack of required  
          assessments and substandard care. 


          Reports in September 2013, prompted by a consumer watchdog  
          group that had hand-culled through stacks of documents in  
          San Diego, revealed that more than two dozen seniors had  
          died in recent years in RCFEs under questionable  
          circumstances that went ignored or unpunished by CCL.<7> 

          -------------------------
          <5> 2014-2015 Budget Change Proposal #CCLD-2; Department of  
          Social Services


          <6>  
          http://www.propublica.org/article/life-and-death-in-assisted 
          -living-single


          <7> "Care Home Deaths Show System Failures," San Diego  
          Union Tribune, Sept.7, 2013






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          Most recently, in late October 2013, 19 frail seniors were  
          abandoned at Valley Springs Manor in Castro Valley by the  
          licensee and all but two staff after the state began  
          license revocation proceedings. CDSS inspectors, noting the  
          facility had been abandoned, left the two unpaid service  
          staff to care for the abandoned residents with insufficient  
          food and medication, handing them a $3,800 citation before  
          leaving for the weekend. The next day sheriff's deputies  
          and paramedics sent the patients to local hospitals.


          The California Council of Community Mental Health Agencies,  
          representing county-funded nonprofit agencies providing  
          services for seriously emotionally disturbed children,  
          writes in opposition to the bill and states that additional  
          audits will not induce change and that instead residential  
          facilities would be better served with oversight and audits  
          conducted by county mental health which conduct Medi-Cal  
          audits.


                                     COMMENTS

           This bill is substantially similar to SB 895 (which only  
          applies to RCFEs) which pushes the phase-in back by one  
          year, requiring three-year inspections by July 1, 2016,  
          two-year inspections by July 1, 2017, and annual  
          inspections by July 1, 2018 and which removes the  
          provisions requiring a certain percentage of facilities be  
          inspected each year. Additionally, SB 895 provides that the  
          department shall conduct an evaluation for compliance with  
          the laws and regulations governing residential care  
          facilities for the elderly, which may require the  
          department to amend or retire use of its current key  
          indicator inspection tool. SB 895 additionally requires  
          that deficiencies shall be verified to have been corrected  
          within 10 days following notification to the facility.

                                   PRIOR VOTES  

          Assembly Floor      79 - 0
          Assembly Appropriations  16 - 0
          Assembly Human Services    7 - 0






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                                    POSITIONS  

          Support:       Advancement Project
                         AFSCME
                         AFSCME Local 2620
                         BANANAS
                         California Alliance of Child and Family  
          Services
                         California Alternative Payment Program
                         California Assisted Living Association
                         California Child Care Resource & Referral  
          Network
                         California Commission on Aging
                         California Communities United Institute
                         California Continuing Care Residents  
          Association
                         California food Policy Advocates
                         Child Care Alliance of Los Angeles
                         Child Care Law Center
                         Child Care Resource Center
                         Children Now
                         Consumer Advocates for RCFE Reform
                         Community Residential Care Association of  
          California
                         County of San Diego
                         County Welfare Directors Association of  
                    California
                         First 5 LA
                         Leading Age California
                         Local Early Education Planning Council of  
          Santa Clara County
                         Los Angeles County Board of Supervisors
                         Marin Child Care Council
                         Northern Directors Group
                         Policy Roundtable for Child Care, Los  
                    Angeles
                         San Francisco Child Care Planning and  
          Advisory Council
                         Solano County Board of Supervisors


          Oppose:   California Council of Community Mental Health  
          Agencies






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