BILL ANALYSIS                                                                                                                                                                                                    �




                                                                  AB 1899
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          Date of Hearing:   April 8, 2014

                        ASSEMBLY COMMITTEE ON HUMAN SERVICES
                                  Mark Stone, Chair
                    AB 1899 (Brown) - As Amended:  March 24, 2014
           
          SUBJECT  :  Residential Care Facilities for the Elderly (RCFE)

           SUMMARY  :  Prohibits an individual who abandons a RCFE from being  
          able to reinstate his or her license for ten years and requires  
          the Department of Social Services (DSS) to operate a RCFE  
          complaint telephone hotline and Internet Web site.   
          Specifically,  this bill  :   

          1)Prohibits a RCFE licensee, who abandons his or her facility,  
            from becoming eligible for reinstatement until ten years after  
            the forfeiture of the facility's license.

          2)Specifies that DSS may deny an application for a RCFE license  
            if the applicant has had a previous license revoked due to his  
            or her abandonment of a facility. 

          3)Requires the Director of DSS to establish and maintain a  
            telephone hotline and Internet Web site for the receipt of  
            complaints against RCFEs from residents and the public.

          4)Requires the Internet Web site to make available to the public  
            all final complaint actions resulting in citation, suspension,  
            or revocation taken against each licensee, listed both by the  
            licensee's name and by the facility's name, and for all  
            information to be listed in a manner that protects the privacy  
            of the residents and the confidentiality of resident  
            information.

           EXISTING LAW   

          1)Establishes the California RCFE Act, which requires facilities  
            that provide personal care and supervision, protective  
            supervision or health related services for persons 60 years of  
            age or older who voluntarily choose to reside in that facility  
            to be licensed by the California Department of Social Services  
            (DSS).  (H&S Code 1569 and 1569.1)

          2)Requires a RCFE licensee to forfeit its license when it  
            expires, is transferred, surrendered, when the facility is  









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            moved, or when the licensee dies, as specified. (H&S Code  
            1569.19)

          3)Permits any person to request an inspection of a RCFE through  
            the filing of a complaint, which may be made either orally or  
            in writing.  (H&S Code 1569.35(a))

          4)Prohibits the substance of the complaint from being provided  
            to the licensee no earlier than at the time of the inspection,  
            unless otherwise permitted by the complainant, as specified.   
            (H&S Code 1569.25(b))

          5)Requires DSS to conduct a preliminary review of every  
            complaint and conduct an onsite inspection unless it is  
            determined that the complaint is willfully intended to harass  
            a licensee or is without any reasonable basis, as specified.   
            (H&S Code 1569.35(c))

          6)Authorizes the Director of DSS to temporarily suspend any  
            license if he or she determines that the action is necessary  
            to protect the residents or clients of a RCFE from abuse,  
            abandonment, or any other substantial threat to health or  
            safety, as specified.  (H&S Code 1569.50(e))

           FISCAL EFFECT  :  Unknown.

           COMMENTS  :

           Background  :  It is the intent of the Legislature, in  
          establishing the RCFE Act, to help provide a system of  
          residential care to allow older persons be able to voluntarily  
          live independently in a homelike environment as opposed to being  
          forced to live in an institutionalized facility, such as a  
          nursing home, or having to move between medical and nonmedical  
          environments.  RCFEs, commonly referred to as assisted living  
          facilities, are licensed retirement residential homes and board  
          and care homes that accommodate and provide services to meet the  
          varying, and at times, fluctuating health care needs of  
          individuals who are 60 years of age and over, and persons under  
          the age of 60 with compatible needs.  Licensed by DSS' Community  
          Care Licensing Division (CCLD), they can range in size from  
          residential homes with six or less beds to more formal  
          residential facilities with 100 beds or more. 

          There is also no uniform common care model; rather the types of  









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          assistive services can vary widely, which can include differing  
          levels of personal care and protective supervision, based upon  
          the needs of the resident. 

          If a resident needs medical care in his or her residence in  
          order to maintain an independent lifestyle,  incidental medical  
          services are permitted to be provided by a licensed or otherwise  
          approved external provider, such as a home healthcare agency  
          (HHA), which is licensed by the California Department of Public.  
           Additionally, some RCFEs, upon approval of DSS and after having  
          met specified orientation and training requirements, may provide  
          assistive memory care services to individuals with dementia or  
          Alzheimer's disease. 

          Existing regulations also lay out the circumstances under which  
          an individual may be allowed to reside in RCFEs.  Specifically,  
          they include persons:<1>

                 Capable of administering their own medications; 

                 Receiving medical care and treatment outside the  
               facility or who are receiving needed medical care from a  
               visiting nurse; 

                 Who because of forgetfulness or physical limitations  
               need only be reminded or to be assisted to take medication  
               usually prescribed for self-administration;

                 With problems including, but not limited to,  
               forgetfulness, wandering, confusion, irritability, and  
               inability to manage money;

                 With mild temporary emotional disturbance resulting from  
               personal loss or change in living arrangement;

                 Who are temporarily bedridden, as specified; and

                 Who are under 60 years of age whose needs are compatible  
               with other residents in care, if they require the same  
               amount of care and supervision as do the other residents in  
               the facility. 

          Regulations also provide specific prohibitions on individuals  


          ---------------------------
          <1> Section 87455(b) of Title 22, California Code of  
          Regulations.








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          who are allowed to reside in a RCFE, which includes whether the  
          resident has active communicable tuberculosis, requires 24-hour  
          skilled nursing or intermediate care, has an ongoing behavioral  
          or mental disorder, or has dementia, unless otherwise permitted  
          by CCLD.<2>

           Growing demand  :  Over the past thirty years, the demand for  
          RCFEs has grown substantially.  Although RCFEs have been  
          generally available, they experienced explosive growth in the  
          1990s, more than doubling the number of beds between 1990 and  
          2002,<3> and continued to grow 16 percent between 2001 and  
          2010.<4>  Nationwide, states reported 1.2 million beds in  
          licensed RCFEs in 2010.<5>  In 2010, the national Centers for  
          Disease Control reported that 40% of RCFE residents needed help  
          with three or more activities of daily living and three-fourths  
          of residents had at least two of the 10 most common chronic  
          conditions.<6>

          According to DSS, as of March 5, 2014 there are 7,589 licensed  
          RCFEs in California with a capacity to serve 176,317 residents. 

           Recent events  :  A series of recent events has drawn attention to  
          questions about the adequacy of RCFEs and the CCLD's ability to  
          comply with existing oversight and enforcement requirements to  
          help ensure for the health and safety of individuals who receive  
          services within CCLD-licensed facilities.  Over the last several  
          years, numerous media outlets have 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  
          ---------------------------
          <2> Section 87455(c) of Title 22, California Code of  
          Regulations. 
          <3>  Flores and Newcomer, "Monitoring Quality of Care in  
          Residential Care for the Elderly: The Information Challenge".  
          Journal of Aging and Social Policy, 21:225-242, 2009.
          <4>  SCAN Foundation. "Long Term Care Fundamentals: Residential  
          Care Facilities for the Elderly." March 2011.
          http://thescanfoundation.org/sites/thescanfoundation.org/files/LT 
          C_Fundamental_7_0.pdf
          <5>  "Assisted Living and Residential Care in the States in  
          2010," Mollica, Robert, AARP Public Policy Institute
          <6>  "Residents Living in Residential Care Facilities: United  
          States, 2010, Caffrey, Christine, et al., US Centers for
          Disease Control, April 2012








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          in recent years in RCFEs under questionable circumstances that  
          went ignored or unpunished by CCLD.<7>

          The coverage reached a climax with the abandonment of the Valley  
          Springs Manor, a RCFE with 29 residents in the city of Castro  
          Valley.  The facility, licensed by CCLD in March 2008, had been  
          frequently visited by CCLD due to numerous violations relating  
          to the inadequacy of care during its five year existence.  In  
          May 2013 CCLD, taking action in response to its poor care  
          history, revoked Valley Springs Manor's license.  The revocation  
          was immediately appealed by the licensee, which delayed action  
          by CCLD and allowed the facility to remain operational.  During  
          this time, CCLD continued to receive and investigate additional  
          complaints, which culminated with the licensee physically  
          abandoning the facility sometime in September or October 2013,  
          leaving its frail seniors under the care of the facility's  
          administrator and support staff. 

          Soon after, however, due to lack of compensation and leadership,  
          the administrator and a majority of the support staff quit,  
          leaving only the cook and janitor, still unpaid, to provide care  
          for residents.  In response to its inability to reach the  
          licensee or any administrative staff, CCLD initiated its  
          temporary suspension order (TSO) process on October 17, 2013  
          whereby the license would be immediately revoked.  The TSO was  
          delivered four days later for enactment on Thursday, October 24,  
          2013.  After the TSO was delivered, and the licensing analyst's  
          inspection was concluded, the analyst delivered a $3,800 fine to  
          the cook for operating an unlicensed facility, even though the  
          fine should have been delivered either to the administrator or  
          licensee, and left.  No less than an hour after the analyst  
          left, feeling overwhelmed and unsure about what to do, the cook  
          and janitor called 911.  Immediately thereafter, emergency  
          services arrived and worked to remove all infirm and at-risk  
          seniors to local hospital or known relatives. 

          The following day, upon initial review, according to DSS, CCLD  
          "made a judgment call that the facility could continue to  
          function for several more days while the last residents were  
          relocated, but that judgment was in error."  DSS acknowledges,  
          in retrospect, that CCLD "staff should have been engaged on  
          Friday to address the developing crisis and make appropriate  



          ---------------------------


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








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          arrangements to ensure the safety of remaining residents."<8> 

          Exacerbating the circumstances of the Castro Valley situation  
          was the discovery that its licensee also owned and operated two  
          other RCFEs; a smaller facility in Oakland and another larger  
          facility in Modesto.  Concerned that similar circumstances would  
          occur at these two facilities, CCLD acted quickly to help  
          transfer the license of the Oakland facility to another  
          operator, however, it faced a much more difficult task of  
          stabilizing and transferring the Modesto facility; Sundial Palms  
          to another operator.  Over the course of three months, CCLD and  
          DSS executive leadership worked to put in place an intermediate  
          facility administrator at Sundial Palms, which had nearly twice  
          the number of residents than Valley Springs Manor in Castro  
          Valley, and worked to identify and transfer the license to  
          another operator. 

           Lack of transparency  :  Under current law, DSS is required to  
          operate an automated RCFE license information system to provide  
          information on licensees and former licensees of licensed RCFEs.  
           Although this requirement was established in SB 185 (Mello),  
          Chapter 1127, Statutes of 1985, it is unclear how DSS is  
          complying with it.  DSS currently has available a searchable  
          database of RCFEs on its website, however, information is  
          limited to the name, location, contact information, type of  
          facility and whether the facility's license is current or  
          pending.  It does not provide information such as a facility's  
          licensing history, the expertise and certification of staff, or  
          its complaints history, including whether the complaint was  
          resolved.  In order to acquire additional information relating  
          to the quality of a facility, a person must travel to one of  
          DSS' eight regional licensing offices and request the  
          information in person. 

          DSS also currently operates a webpage entitled "myccl" on its  
          departmental web site.  However, it is only accessible to RCFE  
          licensees, administrators, board members of the RCFE, staff, or  
          related individuals per the approval of DSS. 

          Other than DSS' searchable database, which is limited to general  
          information of RCFEs, there currently does not exist an online  
          or other automated system provided by DSS whereby the public can  
          review or learn more about licensed RCFEs.  This not only limits  


          ---------------------------
          <8> Departmental (DSS) Report on the Closure of the Valley  
          Springs Residential Care Facility for the Elderly. Page 2








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          the public's access to information about RCFEs, but it is also  
          limits CCLD's internal ability to track patterns of poor care  
          within a single facility, much less across facilities with the  
          same licensee.  Under current practice, when a license undergoes  
          a licensing inspection or is subject to a complaint  
          investigation, the information reported by CCLD is maintained in  
          a paper-based format.  This limits CCLD's ability to track  
          licensees overtime and whether they operate other facilities  
          that should undergo additional scrutiny. 

          According to DSS, there are approximately 462 licensing analysts  
          responsible for the more than 75,000 licensed community care  
          facilities, including RCFEs, and the nearly 1.4 million  
          individuals they serve, ranging from the earliest stages of life  
          to the end of life care.  This comes to a ratio of one licensing  
          analyst per 162 facilities and 3,030 individuals in care.

          In response to increased media coverage of incidences that have  
          occurred in RCFEs across the state, DSS is currently working to  
          provide more robust information of licensed RCFEs on its  
          website. It is anticipated that DSS will be providing an online  
          searchable database, where the public can access up to five  
          years of historical information on RCFEs.  This searchable  
          database is proposed to include the following:

                 The name of the facility and its licensee's name and  
               contact information;

                 The number of substantiated, unsubstantiated, and  
               inconclusive complaints filed against the facility,  
               including its severity and whether the complaint resulted  
               in a citation; and

                 The number of inspections, complaint investigations, and  
               general visits the facility has received.

          A timeline for the availability of this searchable database has  
          not been established.

          However, due to the current statutory requirement that all  
          community care facilities, including RCFEs, undergo an  
          unannounced licensing inspection visit at least once every five  
          years, rather than annually as required prior to 2003, the  
          reliability and relevance of information included in this  
          database will be limited.  Whereas more information would be  









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          available for those facilities that have recently been inspected  
          or undergone a complaint investigation, information for a  
          facility that has not had any complaints filed against it nor  
          has undergone a licensing inspection in several years will be  
          limited to basic demographic information related to the  
          facility.

           Need for this bill  :  Stating the need for a ten-year ban on  
          licensees who abandon their facility, the author writes:

               "AB 1899 seeks to address the abandonment of residential  
               care facilities and the need to have an efficient and  
               centralized system of obtaining accurate information about  
               these facilities to prevent violators from repeatedly  
               violating health and safety codes with impunity."

          The author goes on to write regarding the need for a centralized  
          system for the filing and public reporting of complaints that:

               "A centralized and modernized method of inquiring,  
               obtaining, and reporting information about these facilities  
               through the creation of a telephone hotline and a  
               progressive internet website program would allow CDSS to  
               better monitor and track licensure of RCFEs and help  
               protect California's elderly RCFE consumers."

           Oppose unless amended  :  The California Commission on Aging has  
          taken an "oppose unless amended" position on the measure.  The  
          Commission writes that it "believes there can be no justifiable  
          reason for abandoning vulnerable RCFE residents, and for this  
          reason, there can be no reason for reinstating a license when  
          abandonment has occurred.  We appreciate the bill's intent of  
          strengthening the state's response to abandonment, but believe  
          this bill does not go far enough."

           RECOMMENDED AMENDMENTS:  

          Committee staff agrees that should a licensee abandon his or her  
          RCFE, leaving its vulnerable residents in a position where their  
          health and safety is at great risk, he or she should not be  
          allowed to have a license reinstated or be approved for a new  
          license. 

          Specifically, staff recommends the following amendments:










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          Amendment #1 - On page 3, lines 7 and 8 delete ", until 10 years  
          have elapsed since the forfeiture"

          Amendment #2 - On page 5, lines 24 and 25 delete ", until 10  
          years have elapsed since the revocation"

           DOUBLE REFERRAL  .  This bill has been double-referred.  Should  
          this bill pass out of this committee, it will be referred to the  
          Assembly Aging and Long Term Care Committee.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Assisted Living Association (CALA)
          California Long-Term Care Ombudsman Association (CLTCOA)
          California Police Chiefs Association
          Community Residential Care Association of CA

           Opposition 
           
          None on File.
           
          Analysis Prepared by  :    Chris Reefe / HUM. S. / (916) 319-2089