BILL ANALYSIS                                                                                                                                                                                                    �






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                            Senator Jim Beall, Chair


          BILL NO:       AB 1744                                      
          A
          AUTHOR:        Brown                                        
          B
          VERSION:       May 23, 2014
          HEARING DATE:  June 24, 2014                                
          1
          FISCAL:        Yes                                          
          7
                                                                      
          4
          CONSULTANT:    Mareva Brown                                 
          4
                                        

                                     SUBJECT
                                         
                         California Department of Aging

                                     SUMMARY  

          This bill would require the department, upon securing  
          $200,000 in nonstate funds from private sources for  
          purposes of implementing the bill, to convene a blue-ribbon  
          panel, comprised of at least 13 members, as specified, to  
          make legislative recommendations to improve services for  
          unpaid and family caregivers in California, as provided.  
          The bill would require the committee to prepare a report of  
          its findings and recommendations and provide it to the  
          Legislature on or before July 1, 2016.

                                     ABSTRACT  

           Existing law:
           
             1)   Establishes the Mello-Granlund Older Californians  
               Act, that reflects the policy mandates and directives  
               of the Older Americans Act of 1965 (42 USC Chapter 35,  
               Sec. 3001), and sets forth the state's commitment to  
               its older population and other populations served by  

                                                         Continued---




          STAFF ANALYSIS OF ASSEMBLY BILL 1744 (Brown)            
          PageB


          
               the programs administered by the California Department  
               of Aging. (WIC 9000 et seq.)

             2)   Establishes the California Department of Aging  
               (CDA) with the mission to provide leadership to the  
               area agencies on aging in developing systems of home-  
               and community-based services that maintain individuals  
               in their own homes or least restrictive homelike  
               environments. (WIC 9100)

             3)   Permits CDA to accept gifts and grants from any  
               source, public or private, to assist it in the  
               performance of its functions, and these gifts and  
               grants shall operate to augment any appropriation made  
               for the support of the department. (WIC 9107) 

             4)    Establishes the California Commission on Aging,  
               with 25 appointees, as designated, and staggered  
               three-year terms, and tasks the commission with  
               duties, including, but not limited to the following: 

                  a.        Serve as the principal advocate body in  
                    the state on behalf of older individuals,  
                    including, but not limited to, advisory  
                    participation in the consideration of all  
                    legislation and regulations made by state and  
                    federal departments and agencies relating to  
                    programs and services that affect older  
                    individuals.
                  b.         Participate with the department in  
                    training workshops for community, regional and  
                    statewide senior advocates, to help older  
                    individuals understand legislative, regulatory,  
                    and program implementation processes.
                  c.        Prepare, publish, and disseminate  
                    information, findings, and recommendations  
                    regarding the well-being of older individuals.
                  d.         Actively participate and advise the  
                    department in the development and preparation of  
                    the State Plan on Aging, conduct public hearings  
                    on the State Plan on Aging, review and comment on  
                    the state plan, and monitor the progress of the  
                    plan's implementation.
                  e.         Meet at least six times annually in  
                    order to study problems of older individuals and  





          STAFF ANALYSIS OF ASSEMBLY BILL 1744 (Brown)            
          PageC


          
                    present findings and make recommendations.
                  f.        Hold hearings throughout the state, that  
                    may include conducting an annual statewide  
                    hearing inviting all departments administering  
                    programs affecting seniors, in order to gather  
                    information and advise the Governor, Legislature,  
                    department, and agencies on all levels of  
                    government regarding solutions to problems  
                    confronting older individuals and the most  
                    effective use of existing resources and available  
                    services for individuals.
                  g.        Hire an executive director and, within  
                    budgetary limits, such staff as may be necessary  
                    for the commission to fulfill its duties.
                  h.        Develop, in cooperation with the  
                    department, a method for the selection of  
                    delegates to the statewide legislative meeting of  
                    senior advocates. (WIC 9200 et seq.)

             5)   Permits the commission on aging to accept gifts and  
               grants from any source, public or private, to assist  
               it in the performance of its functions. Requires that  
               any  gifts and grants shall augment any appropriation  
               made for the support of the commission and requires  
               that CDA serve as the fiscal agent for the accounting  
               of the gifts and grants and that no gifts or grants  
               shall be used for the operation by the commission of  
               direct service programs that would conflict with the  
               department's duties and functions as described by law.  
               (WIC 9203)

             6)   Establishes caregiver resource centers within  
               mental health statutes to support families and other  
               caregivers who care for adults with cognitive  
               impairments, including those suffering from strokes,  
               traumatic brain injuries. (WIC 4632)

           This bill:
           
             1)   Names this bill the California Caregiver Act of  
               2014.  

              2)   Makes 18 different Legislative findings and  
               declarations, including but not limited to:  






          STAFF ANALYSIS OF ASSEMBLY BILL 1744 (Brown)            
          PageD


          
                   a.        At present, there is no complete  
                    inventory of caregiving programs available to  
                    Californians performing unpaid caregiving  
                    services for an aging or disabled family member,  
                    friend, or neighbor.  
                   b.        Rising demand and shrinking families to  
                    provide caregiving support suggest that  
                    California needs a comprehensive person- and  
                    family-centered policy for long-term services and  
                    supports systems to better serve the needs of  
                    older persons with disabilities, support family  
                    and friends in their caregiving roles, and  
                    promote greater efficiencies in public spending.  
                   c.        In 2009, approximately 4 million family  
                    caregivers in California provided an estimated  
                    3.85 billion hours of unpaid labor to care to an  
                    adult with limitations in daily activities at any  
                    given point in time, and over 5.8 million  
                    provided care at some time during the year.  
                   d.        In 2009, 59 percent of all family  
                    caregivers were employed full or part time.  
                    Family caregivers typically spend 20 hours a week  
                    caring for a family member who needs help with  
                    bathing, dressing, and other kinds of personal  
                    care, as well as household tasks such as shopping  
                    and managing finances.  

              3)   Requires the Department of Aging to convene a  
               blue-ribbon panel on family caregiving and long-term  
               services and supports. The panel shall be jointly  
               chaired by the director of the department or his or  
               her designee and a representative elected by the  
               members of the panel.

             4)   Requires that formation of the blue-ribbon panel be  
               contingent upon securing $200,000 of nonstate funds  
               from private sources for the purpose of implementing  
               this section.  

              5)   Requires that each of the 13-panel members  
               represent one or more of the following categories: 
                  a.        A person with experience in the field of  
                    academic research on caregiving.  
                   b.        A family caregiver for an adult with a  
                    chronic or disabling condition.  





          STAFF ANALYSIS OF ASSEMBLY BILL 1744 (Brown)            
          PageE


          
                   c.        A representative of the mental health  
                    community.  
                   d.        A representative of the California  
                    caregiver resource centers. 
                   e.        A representative of the national  
                    Alzheimer's Association.  
                   f.        A representative of an organization that  
                    provides community-based adult services.  
                   g.        A representative of an organization that  
                    provides an adult day program.  
                   h.        A representative of an organization that  
                    provides services to caregivers.  
                   i.        A representative of an unpaid or family  
                    caregiver consumer organization.  
                   j.        A representative with expertise in and  
                    knowledge of the specific needs of culturally and  
                    linguistically diverse caregivers and the unique  
                    challenges of delivering services to family  
                    caregivers who face cultural or linguistic  
                    barriers.  
                   aa.        An adult with a chronic or disabling  
                    condition who receives care from an unpaid  
                    caregiver or family member.  
                   bb.        A director or designated representative  
                    of an area agency on aging.  

              6)   Requires the panel review the current policies and  
               practices of state, local, and community programs  
               available to caregivers of adults with chronic or  
               disabling conditions, and consider how the needs of  
               family caregivers should be assessed and addressed so  
               that they can continue in their caregiving role  
               without being overburdened.

             7)   Requires the panel consider the recommendations of  
               other state plans, including, but not limited to, the  
               Olmstead Plan, the Long-Range Strategic Plan on Aging,  
               the State Plan for Alzheimer's Disease, and the State  
               Plan on Aging  
                
             8)   Requires the panel compile an inventory of the  
               resources available to family caregivers, determine  
               gaps in services to family caregivers and identify  
               barriers to participation in current programs, and  
               consider cultural and linguistic factors that impact  





          STAFF ANALYSIS OF ASSEMBLY BILL 1744 (Brown)            
          PageF


          
               caregivers and care recipients who are from diverse  
               populations.
                
              9)   Requires the panel to consult with a broad range of  
               stakeholders, including people diagnosed with  
               Alzheimer's disease, adults with disabling or chronic  
               conditions, family caregivers, community-based and  
               institutional providers, caregiving researchers and  
               academicians, formal caregivers, the Caregiver  
               Resource Centers, the California Commission on Aging,  
               and other state entities.

             10)   Requires the panel to solicit testimony on the  
               needs of family caregivers, including the designation  
               of caregivers, training, respite services, medical  
               leave policies, delegation of tasks to nonmedical  
               aides, and other policies.

             11)  Requires the panel to identify best practices both  
               in California and in other states, and explore  
               expanding those best practices in caregiving programs  
               to populations that are not currently targeted.

             12)  Requires the panel to prepare a report of its  
               findings and at least three legislative  
               recommendations to improve the provision of services  
               for unpaid and family caregivers in California and to  
               submit that report to the Legislature on or before  
               July 1, 2016. The recommendations must address all of  
               the following:

                  a.        Community-based support for California's  
                    diverse population of caregivers for adults with  
                    chronic or disabling conditions.
                  b.        Choices for care and residence for  
                    persons with Alzheimer's disease and their  
                    families.
                  c.        The family caregiving competence of  
                    health care professionals.

             13)  Sunsets the requirement for submitting the report  
               on July 1, 2020.

             14)  Provides that panel members shall serve without  
               compensation, but shall receive reimbursement for  





          STAFF ANALYSIS OF ASSEMBLY BILL 1744 (Brown)            
          PageG


          
               travel and other necessary expenses actually incurred  
               in the performance of their official duties.

             15)  Requires the panel to meet on a bimonthly basis.
             16)  Requires all meetings of the panel to be open to  
               the public and adequate notice shall be provided in  
               accordance with the Bagley-Keene Open Meeting Act, as  
               specified. 
                                         
                                 FISCAL IMPACT  

          An analysis by the Assembly Committee on Appropriations  
          projected one-time GF costs to the Department of Aging to  
          support the study and report in the low hundreds of  
          thousands of dollars and minor ongoing GF costs, likely  
          under $50,000, to provide staff support and travel  
          reimbursement for panel activities.

                                         
                           BACKGROUND AND DISCUSSION  

           Purpose of the bill:
           
          The bill requires the blue ribbon panel to identify  
          policies, resources and programs available for family  
          caregivers and prepare and provide a report of its findings  
          and recommendations to the Legislature by July 1, 2016. The  
          author cites research on the 4 million California family  
          caregivers of adults with limitations in daily activities  
          that estimates the economic value of their unpaid  
          contributions is approximately $47 billion annually. 

          By 2026, as the baby boomers age into their 80s, the  
          decline in the caregiver support ratio is projected to  
          shift from a slow decline to a significant drop, the author  
          writes.  In 2010, the caregiver support ratio in California  
          was 7.7 potential caregivers for every person in the  
          high-risk years of 80-plus. By 2030, the ratio is projected  
          to decline sharply to 3.9 caregivers available to every 1  
          person who requires assistance with daily activities and to  
          2.7 to 1 in 2050, according to the author.

          According to the author, California must get its arms  
          around what we currently have, explore the gaps in  
          services, hear from stakeholders on their needs and  





          STAFF ANALYSIS OF ASSEMBLY BILL 1744 (Brown)            
          PageH


          
          problems with access, and begin to expand our current best  
          practice offerings, grapple with communicating and  
          assisting our many diverse communities working tirelessly  
          to aid their loved ones, while also better-publicizing the  
          excellent programs we already do have. This bill requires  
          the California Department of Aging, upon securing $200,000  
          from private sources for the purpose of implementing this  
          activity, to convene a blue ribbon panel on family  
          caregiving and long-term support services. This bill will  
          provide family caregivers and our state invaluable data and  
          information as we move forward in addressing family  
          caregiving and long-term support service issues.  The  
          author states that this bill was modeled after AB 491  
          (Alquist), which established the Alzheimer's advisory  
          committee within the Department of Public Health.

           Aging population
           
          Nationally, according to the U.S. Administration on Aging  
          (AoA), 40 million adults were aged 65 or older in 2009, the  
          latest year for which data is available, or about one in  
          every eight Americans. By 2030, the AoA calculated, there  
          will be about 72.1 million older persons, more than twice  
          their number in 2000. People aged 65 or older represented  
          12.4% of the population in the year 2000 but are expected  
          to grow to be 19% of the population by 2030.<1> 

          According to data on the Department of Aging website,  
          California's aging population has one of the nation's  
          fastest growth rates among the elderly. In California, the  
          elderly population is expected to grow more than twice as  
          fast as the total population and this growth will vary by  
          region. 

           Family caregivers

           A 2011 report issued by the AARP Public Policy Institute  
          noted that about 42 million family caregivers in the United  
          States provided care to an adult with limitations in daily  
          activities in 2009, and nearly 62 million provided care at  
          some point during the year. The estimated economic value of  
          their unpaid contributions was approximately $450 billion  
          in 2009, according to the report, based on an average of  
          18.4 hours of care per week at an average value of $11.16  
          -------------------------
          <1> http://www.aoa.gov/Aging_Statistics/




          STAFF ANALYSIS OF ASSEMBLY BILL 1744 (Brown)            
          PageI


          
          per hour.

          According to data from the Centers for Disease Control  
          website, unpaid caregivers provided an estimated 90 percent  
          of the long-term care in 2008. The typical caregiver is a  
          46 year old woman with some college experience who provides  
          more than 20 hours of care each week to her mother. Just  
          over half of caregivers who said their health had gotten  
          worse due to caregiving also said the decline in their  
          health has affected their ability to provide care.

          According to the AARP survey, "Valuing the Invaluable," one  
          in five women reported that caregiving strains their  
          household finances and that 42 percent of caregivers spend  
          more than $5,000 a year on caregiving expenses. However,  
          one of the more significant impacts on caregiving is the  
          emotional and physical toll on caregivers. 

               "An extensive body of research finds that  
               providing care to a chronically ill family member  
               or close friend can have profound negative  
               effects on the caregiver's own physical and  
               psychological health, increase social isolation  
               and adversely impact quality of life and  
               well-being. More than two-thirds of family  
               caregivers responding to an online survey said  
               that caring for a loved one was their number one  
               source of stress, ahead of the economic downturn  
               and other family health problems."
           
           Caregiver resource centers

          Every year, California's nonprofit Caregiver Resource  
          Centers serve more than 14,000 families and caregivers of  
          adults affected by chronic and debilitating health  
          conditions including dementia, Alzheimer's disease,  
          cerebrovascular diseases (such as stroke or aneurysms),  
          degenerative diseases such as Parkinson's, Huntington's and  
          multiple sclerosis, or traumatic brain injury among many  
          others.<2>

          A 2012 report issued by the California Commission on Aging  
          -------------------------
          <2>  
          https://caregiver.org/californias-caregiver-resource-centers 





          STAFF ANALYSIS OF ASSEMBLY BILL 1744 (Brown)            
          PageJ


          
          noted that the state faces serious caregiver challenges in  
          today's economic climate. As budgets are cut at the state  
          level, state policies are moving rapidly toward providing  
          more services to frail elders in the home, according to the  
          report, entitled "Celebrating Caregiving in California."  
          The Commission cautioned that policymakers must weigh the  
          value of protecting the interest of family caregivers  
          against the cost of institutionalization.
           
          Related legislation
           
          AB 753 (Lowenthal) Chapter 708, Statutes of 2013 requires  
          the Department of Health Care Services to contract directly  
          with nonprofit caregiver resource centers (CRCs) to provide  
          direct services to caregivers of cognitively impaired  
          adults, including specialized information, family  
          consultation, respite care, short-term counseling, and  
          support groups. 

          AB 491 (Alquist) Chapter 339, Statutes of 2008 requires the  
          California Department of Public Health to establish an  
          Alzheimer's Disease and Related Disorders Advisory  
          Committee, appoint members, and develop recommendations  
          about various policy issues related to Alzheimer's disease.

                                     COMMENTS

              1.   While this bill raises valid concerns around the  
               issues of family caregivers, it leaves unanswered many  
               elemental questions. Staff recommends that before  
               being heard in the next committee, the author define  
               the following aspects of the bill: 

                 Who is responsible for appointing members of the  
               panel 
                 Duration of their terms
                 Consider permitting the panel to choose a chair and  
               vice chair, rather than having co-chairs with one of  
               them being statutorily designated 

             1.   Additionally, staff recommends the author consider  
               whether to focus of the blue ribbon panel directly on  
               relative caregivers rather than including other  
               long-term care policies, as the title of the panel  
               suggests. 





          STAFF ANALYSIS OF ASSEMBLY BILL 1744 (Brown)            
          PageK


          

             2.   Staff further recommends the author consider  
               reducing the number of findings and declarations to  
               eliminate a substantial amount of data that is  
               time-specific. 

             3.   Finally, staff suggests the author consider  
               revising the following legislative recommendation to  
               broaden its scope:  (B) Choices for care and residence  
               for persons with Alzheimer's disease and their  
               families.

             4.   Additionally, the author states that she plans to  
               amend the bill before it is heard in the next  
               committee to clarify in Section 3 that the department  
               is not responsible for raising the private funding,  
               but that it will simply create the panel once it is in  
               receipt of the funds.

                                   PRIOR VOTES  

          Assembly Floor                76 - 0
          Assembly Appropriations       14 - 3
          Assembly Aging and Long Term Care   7 - 0
                                            
                                    POSITIONS  

          Support:       AARP (Sponsor)
                         Alzheimer's Association
                         Area 4 Agency on Aging
                         Association of California Caregiver Resource  
                    Centers
                         California Assisted Living Association
                         California Association for Adult Day  
                    Services
                         California Association of Area Agencies on  
                    Aging
                         California Commission on Aging
                         California Senior Legislature
                         Congress of California Seniors
                         Family Caregiver Alliance/National Center on  
          Caregiving
                         SEIU California
                         UDW/AFSCME Local 3930






          STAFF ANALYSIS OF ASSEMBLY BILL 1744 (Brown)            
          PageL


          
          Oppose:   None received.






                                   -- END --