BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1554
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          Date of Hearing:   May 21, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 1554 (Skinner) - As Amended:  April 22, 2014 

          Policy Committee:                              Human  
          ServicesVote:7 - 0
                        Aging                                 6 - 0 

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

           SUMMARY  

          This bill requires the Department of Social Services (DSS)  
          Community Care Licensing Division (CCL) to investigate  
          complaints involving abuse, neglect, or serious harm to a RCFE  
          resident within 24 hours or 10 days, and to complete  
          investigations within 30 or 90 days, depending on the nature of  
          the complaint. Specifically, this bill:  

          1)Allows complaints to be made electronically or verbally, as  
            well as in writing, and clarifies that complainants may seek  
            investigations, instead of inspections, when credible,  
            non-harassing assertions of violations are made by any person.  
             

          2)Requires DSS to make a preliminary review of the complaint  
            upon receipt and to notify the complainant of the name of the  
            investigator within two working days, and make an onsite  
            investigation within 10 days after receiving the complaint.   
            Requires an investigation within 24 hours if the complaint  
            alleges credible abuse (including neglect) or an imminent  
            threat of death or serious harm.  

          3)Assures priority action by DSS when the Long-Term Care  
            Ombudsman submits a complaint that a licensee fails to provide  
            the Ombudsman with a roster, census, or list of names and room  
            numbers and locations of residents, or is restricting the  
            Ombudsman's access to the facility and inhibits interaction  
            with its residents.

          4)Provides for immediate civil monetary penalty of $1,000 for  








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            each day, for each violation, and allows the department to  
            take any other authorized enforcement actions for violations.   


          5)Requires the investigation to be completed within 90 days  
            unless law enforcement has established an investigation  
            already, in which case DSS may extend or temporarily suspend  
            the investigation.  

          6)Provides for an appeal process in the event the complainant is  
            dissatisfied with the department's findings or investigation,  
            or resulting enforcement actions.  
           
          FISCAL EFFECT

           On-going costs to DSS, likely in the range of $200,000 to  
          $400,000, for additional personnel to review complaints, confer  
          with complainants, and potentially investigate complaints within  
          the required time frame.
           COMMENTS  

           1)Purpose  . The author asserts, "Due to the lack of regular  
            inspections of RCFEs, it is critical that CCL have a strong  
            and effective complaint investigation system to identify and  
            stop instances of abuse and neglect.  Yet CCL's current  
            complaint investigation system is plagued by problems of  
            inadequate investigation, poor communication with  
            complainants, lack of transparency, weak enforcement, and  
            appeal procedures that protect operators and imperil  
            residents.  CCL does not send written findings to complainants  
            except upon request, and does not give complainants an  
            opportunity to appeal CCL's findings.   Even when complaints  
            are substantiated, meaningful enforcement action by CCL is  
            very rare."  

            This bill seeks to improve the complaint response system by  
            establishing a strict timeline for CCL to begin and complete  
            investigations of complaints, and providing opportunities for  
            all affected parties to participate in process and be informed  
            of and appeal the outcomes.

           2)Background  . RCFEs, commonly referred to as assisted living  
            facilities, are licensed retirement  residential homes and  
            board and care homes that provide personal care and  
            supervision or health related services to persons who are 60  








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            years of age and over, who voluntarily choose to reside in the  
            facility.  RCFEs enable older persons to live independently in  
            a home-like environment rather than in nursing home or other  
            institutionalized facility. Services include personal care and  
            protective supervision, including incidental medical services,  
            based upon the needs of the resident.   
           
            There are 7,589 licensed RCFEs in California with a capacity  
            to serve over 176,000 residents.  Licensed by DSS' Community  
            Care Licensing Division (CCL), RCFEs range in size from  
            residential homes with six or less beds to more formal  
            residential facilities with 100 beds or more.  DSS is required  
            to conduct unannounced licensing inspections of the more than  
            75,000 licensed community care facilities, including RCFEs, at  
            least once every five years, more often in some circumstances.  


           3)Complaints.  CCL is required to respond to a complaint against  
            a RCFE within 10 days.  However, there is no requirement that  
            CCL inform the complainant it has received the complaint, what  
            course of action is necessary, or how long CCL may take to  
            investigate the complaint. Residents have no recourse if a  
            complaint takes an unreasonable amount of time to investigate  
            or is not pursued.  Additionally, neither current law nor  
            regulation provides an appeals process for residents who have  
            found the outcomes of the complaint investigation to be  
            dissatisfactory.  Conversely, in cases where a RCFE has been  
            found to have a deficiency or be in violation of law during a  
            regular inspection visit or complaint investigation,  
            regulations provide a process for appeal.  

            According to CCL, it received nearly 3,000 complaints against  
            RCFEs in 2011-12. The California Long Term Care Ombudsman  
            Program reported receiving 11,673 complaints against RCFEs in  
            2012, 1,673 of which involved abuse. 

           4)Community Care Licensing Capacity  .  Today, according to DSS,  
            there are approximately 462 licensing analysts responsible for  
            the more than 75,000 licensed facilities and the nearly 1.4  
            million individuals they serve, ranging from the earliest  
            stages of life to the end of life care.  This means a ratio of  
            one licensing analyst per 162 facilities and 3,030  
            individuals.

            It is clear the budget deficits of the last 10 years have  








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            significantly impacted the ability of DSS to monitor the  
            health and safety of residents and clients of community care  
            facilities throughout the state.  An increase in oversight  
            responsibilities, combined with staff reductions and unfilled  
            staff positions, work furloughs and hiring freezes, has  
            severely reduced its administrative capacity and imposed  
            significant workload challenges. 

           5)Governor's Budget Proposal  . In response to recent health and  
            safety issues discovered at facilities licensed by CCL, the  
            2014-15 Governor's Budget proposes a comprehensive plan to  
            reform the CCL program. This proposal includes an increase of  
            $7.5 million ($5.8 million General Fund) and 71.5 positions to  
            improve the timeliness of investigations, ensure the CCL  
            inspects all facilities at least once every five years,  
            increase staff training, and establish clear fiscal, program,  
            and corporate accountability. The proposal also increases  
            civil penalties assessed for violations and increases  
            licensing and application fees by 10%. 

            Further, the proposal includes a specialized and centralized  
            toll-free public complaint hotline, which can help acquire  
            better initial information, conduct consistent prioritization,  
            and dispatch incoming complaints to regional offices.

           6)Related Legislation  . AB 1899 (Brown, 2014) among other  
            provisions, requires DSS to establish and maintain a telephone  
            hotline and an internet-based website to accept public  
            complaints regarding RCFEs. This bill is pending on this  
            committee's Suspense File.

           7)RCFE Reform Package  . In response to a number of highly  
            publicized events at facilities licensed by CCL that have  
            raised questions regarding the state's ability to comply with  
            existing oversight and enforcement requirements, a number of  
            legislative measures are being pursued to strengthen, address  
            shortcomings, resolve legal liabilities and gaps in the  
            provision of services, and ultimately reform the RCFE  
            industry.  Several of these measures are pending on this  
            committee's Suspense File.



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








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