BILL ANALYSIS                                                                                                                                                                                                    �



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          Date of Hearing:  April 29, 2014

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                Bob Wieckowski, Chair
                  AB 2171 (Wieckowski) - As Amended: April 21, 2014

                              As Proposed to be Amended
           
          SUBJECT  :  RESIDENTIAL CARE FACILITIES FOR THE ELDERLY

           KEY ISSUE  :  SHOULD CALIFORNIA ESTABLISH A SET OF STATUTORY  
          RIGHTS, AS SPECIFIED, TO PROTECT THE WELFARE AND SAFETY OF  
          ELDERLY RESIDENTS OF ASSISTED LIVING FACILITIES, AND ENABLE  
          RESIDENTS TO ENFORCE THESE NEW RIGHTS THROUGH A PRIVATE RIGHT OF  
          ACTION?

                                      SYNOPSIS
          
          This bill seeks to establish a number of basic rights for  
          residents of residential care facilities for the elderly (RCFE),  
          including rights protecting the privacy, dignity, safety, and  
          health of residents.  The bill provides for damages of $500 for  
          each violation of these rights and provides a private right of  
          action to residents to enforce these rights.  The bill is  
          supported by advocates for the elderly and a number of other  
          groups, who contend that rapid growth, inadequate oversight and  
          outdated standards in the RCFE industry threaten the safety and  
          welfare of RCFE residents, and that strong statutory rights are  
          needed to improve residents' ability to make choices about their  
          care, treatment and daily life.  Opponents contend, among other  
          things, that the private right of action will lead to frivolous  
          lawsuits based on technical infractions of the resident  
          protections, and that the bill will significantly add to an  
          already overburdened court system in California.  After lengthy  
          discussion with stakeholders on both sides, the author proposes  
          several amendments seeking to address concerns raised by  
          opponents.  Among other things, the proposed amendments: (1)  
          narrow the scope of resident rights to strike language relating  
          to the administration of medications; (2) provide a 30-day  
          notice of violation and opportunity to correct; (3) removes  
          provisions relating to incapacity determination to provide  
          stakeholders more time to revise those provisions; and (4)  
          clarify that federal protections related to hospice care  
          continue to apply under this bill.  With these proposed  
          amendments, the California Hospice and Palliative Care  








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          Association and the California Association for Health Services  
          at Home have agreed to remove their opposition pending approval  
          by this Committee.  This bill passed the Aging Committee by a  
          5-2 vote, and will be referred to the Appropriations Committee  
          should it pass this Committee.

           SUMMARY  :  Establishes a number of specified rights for residents  
          of residential care facilities for the elderly, and provides a  
          private right of action to enforce these rights.  Specifically,  
          this bill  :   

          1)Enumerates a number of rights and protections that residents  
            of RCFE's shall have, among which are the following:

             a)   The right to be treated with dignity and respect.
             b)   The right to personal privacy in accommodations, medical  
               treatment, personal care and assistance, visits, and  
               communications, among other things.
             c)   The right to confidential treatment of their records and  
               personal information and to approve their release
             d)   The right to be encouraged and assisted in exercising  
               their rights.
             e)   The right to a safe, homelike environment.
             f)   The right to be given individualized care delivered by  
               adequate, competent staff.
             g)   The right to be allowed to make choices about their  
               daily life, and participate to the extent possible in their  
               care.
             h)   The right to be free from neglect, exploitation,  
               seclusion, punishment, humiliation, intimidation, verbal,  
               mental, and sexual abuse.
             i)   The right to be allowed to choose their own physician,  
               or pharmacist.
             j)   The right to be protected from involuntary transfers.
             aa)  The right to be allowed to contact licensing  
               authorities, or the long-term care ombudsman (LTCO).

          2)Requires a facility staff person, at admission, to personally  
            advise a resident and the resident's representative of these  
            rights, to provide a copy of these rights for signature, and  
            to have the signed copy included in the resident's record.

          3)Requires a RCFE to prominently post a copy of these rights in  
            areas accessible to the residents and their representatives.









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          4)Permits a current or former resident to bring an action in a  
            court of competent jurisdiction for injunctive relief against  
            a licensee if a violation of one of these rights results in an  
            immediate or substantial threat to physical health, mental  
            health, or safety of residents, and provides for financial  
            liability of up to $500 for each violation, and for attorney's  
            fees.  Further provides that this private right of action does  
            not expire upon the death of the resident, and that waiving  
            such rights is contrary to public policy, and voidable.

          EXISTING LAW  :  

          1)Establishes the California Community Care Facilities Act  
            (CCFA) to provide a comprehensive statewide service system of  
            quality community care for people who have a mental illness, a  
            developmental or physical disability, and children and adults  
            who require care or services by a facility or organization.   
            (Health and Safety Code Section 1501.  All further references  
            are to this code unless otherwise stated.)

          2)Defines a "community care facility" (CCF) as a facility,  
            place, or building maintained and operated to provide  
            nonmedical residential care, day treatment, adult day care, or  
            foster family agency services for children, adults, or  
            children and adults, including, but not limited to, the  
            physically handicapped, mentally impaired, incompetent  
            persons, and abused or neglected children.  (Section 1502  
            (a).)

          3)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 Department of Social Services (DSS).  In  
            establishing the RCFE Act, the Legislature finds and declares  
            that a separate licensing category is necessary for a humane  
            approach in meeting the housing, social and care needs of  
            older persons within homelike environments.  (Section 1569.1  
            (g).)

          4)Prohibits any person, firm, partnership, association,  
            corporation or public agency from establishing, operating,  
            managing, conducting or maintaining a CCF or a RCFE without a  
            valid licensed provided by the DSS.  (Section 1569.10.)









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          5)Provides that any person who violates the CCFA or the RCFE Act  
            shall be guilty of a misdemeanor and upon conviction shall be  
            fined no more than $1,000, imprisoned in county jail for up to  
            one year, or both.  (Section 1569.40(a).)

          6)Establishes the office of Long-Term Care Ombudsman (LTCO)  
            program as a result of the federal Older Americans Act (OAA)  
            and places it within the California Department of Aging (CDA)  
            in order to encourage community contact and involvement with  
            elderly patients or residents of long-term health care  
            facilities or residential facilities through the use of  
            volunteers and volunteer programs.  (Sections 9700 and 9710.5  
            (b).)

          7)Requires the LTCO, either personally or through  
            representatives, to identify, investigate, and resolve  
            complaints that may adversely affect the health, safety,  
            welfare, or rights of residents of long-term care facilities.   
            (Section 9712.5.)

           FISCAL EFFECT  :  As currently in print this bill is keyed fiscal.

           COMMENTS  :  This bill seeks to establish a number of basic rights  
          for residents of residential care facilities for the elderly  
          (RCFE), and provides a private right of action to residents to  
          enforce these rights. Supporters of the bill, including  
          co-sponsors California Advocates for Nursing Home Reform and the  
          Consumer Attorneys, note that RCFEs are increasingly growing in  
          number to keep up with demographic changes in California despite  
          the fact that they are largely unregulated.  The proponents  
          explain:

              Residential care facilities for the elderly are  
              increasingly becoming the answer for our mothers, fathers,  
              and other relatives in their later years of life as  
              California's population ages.  Unfortunately, some  
              facilities have not maintained high standards of quality  
              of life for their residents.  A report by the California  
              Advocates for Nursing Home Reform (CANHR) cites an "RCFE  
              crisis" in an industry that has undergone rapid growth  
              with little oversight.  The report, "Residential Care in  
              California: Unsafe, Unregulated, and Unaccountable,"  
              describes a failed inspection system; a broken complaint  
              system; an ineffective system of penalties for violations;  
              and contract provisions that provide no enforcement power  








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              to residents.  These and other systemic problems come  
              together and leave seniors to live out their remaining  
              years in deplorable conditions with no attention paid to  
              their complaints.  This bill creates clarity for RCFE  
              operators and residents while ensuring that the elderly  
              are treated with decency and respect in the latter years  
              of life.

              As the Department of Social Services has acknowledged, the  
              changing role of the RCFE "license" necessitates an  
              overhaul of regulatory roles, structure, and a more  
              sophisticated means to ensure that residents are safe and  
              secure.  By establishing a modern bill of rights that fits  
              the needs of today's RCFE residents, AB 2171 will take a  
              major step toward that goal while giving residents and  
              their representatives the abilities to control decisions  
              affecting their lives.  
           
          Background on RCFEs  :  RCFEs are licensed, assisted living  
          (non-medical) facilities for persons 60 years of age and over  
          and other, younger persons with similar needs.  Varying levels  
          of care and supervision, protective supervision, and personal  
          care such as assistance with hygiene, dressing, eating, bathing,  
          as well as storage and distribution of medications are provided,  
          based upon residents' needs.  All RCFEs provide meals and  
          housekeeping.  Ongoing medical care is not allowed except in  
          specific cases, although hospice care is allowed.  People with  
          ongoing medical needs require a higher level of care in a  
          nursing home or an intermediate care facility.

          California is home to the largest number of seniors in the  
          nation, and the older population is expanding at an  
          unprecedented historical pace.  The California Department of  
          Finance's Demographic Research Unit estimates that California's  
          65+ population will grow by 43%, from 4.4 million in 2010 to  
          6.35 million by 2020; another 39%, to 8.83 million by 2030; and  
          an additional 21% to 10.5 million by 2040.  The expanding  
          population of older Californians will impact housing policy, and  
          RCFE growth is reflected in the above described demographic  
          shift.  In fact, the number of RCFE licenses has increased  
          nearly 30% since 2002.  

          RCFE care is one of the fastest growing components of the  
          long-term supports and services industries.  There are currently  
          7,570 licensed RCFEs in California serving 176,026 people.   








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          According to DSS, approximately 80% of RCFEs are licensed for  
          four-six residents; the remaining 20% of RCFEs have an average  
          capacity of about 60 residents, though facilities can house over  
          100 people in some cases.

          Recent media reports revealed misconduct, mistreatment, and  
          neglect of dependent elders living within licensed RCFEs.  (See,  
          e.g., "With Good Info Hard to Find, Castro Valley Senior Home  
          Residents Left in the Dark."   San Jose Mercury News  , November 3,  
          2013.)  Additionally, over the past several years, the  
          elimination of vacant staff positions, hiring moratoriums, and  
          rolling staff furloughs have challenged the Department of Social  
          Services in its mission to protect vulnerable populations living  
          within facilities that it licenses.  These revelations have led  
          many to believe that RCFE residents are increasingly exposed to  
          harm.

           Private Right of Action and the Consumer Legal Remedies Act.    
          Currently, residents of long-term healthcare facilities (also  
          known as "nursing homes" or skilled nursing facilities), are  
          availed injunctive relief to compel compliance by a licensee  
          with state or other laws related to individual resident rights.   
          California established a statutory bill of rights for residents  
          of nursing homes in Division 2, Chapter 3.9, of the Health &  
          Safety Code.  The statutory rights are supplemented with a  
          regulatory bill of rights within title 22 (CC section 72527).   
          Health & Safety Code Section 1430(b) gives residents the right  
          to obtain an injunction to prevent future violations of the  
          rights and attorneys' fees from a provider.  In the absence of  
          departmental oversight, the injunctive relief and attorneys'  
          fees provided by Section 1430(b) are powerful tools to ensure  
          the rights of residents of skilled nursing facilities.

          This bill provides a private right of action to a current or  
          former resident for injunctive relief against a licensee if a  
          violation of one of the rights outlined in the bill results in  
          an immediate or substantial threat to physical health, mental  
          health, or safety of residents.  The bill also provides for  
          damages of up to $500 for each violation and for attorney's  
          fees.  Finally, the bill provides that the private right of  
          action does not expire upon the death of the resident, and that  
          waiving such rights is contrary to public policy, and voidable.

          According to proponents, the private right of action in this  
          bill seeks to extend to residents of RCFEs the same powerful  








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          protection mechanism that patients of skilled nursing facilities  
          currently enjoy.  They contend that without a private right of  
          action, the protections outlined in this bill may go largely  
          unenforced.  The private right of action is especially important  
          in this bill because the current economic climate makes it  
          highly unlikely that local prosecutors with limited resources  
          will ever pursue claims of violations or abuse in RCFEs.   On  
          the other hand, opponents, including the Civil Justice  
          Association of California (CJAC), contend that the private right  
          of action will create legal traps that will lead to frivolous  
          lawsuits based on technical infractions of the resident  
          protections.  These opponents contend that the bill will  
          significantly add to an already overburdened court system in  
          California and increase court caseloads.  Opponents also argue  
          that sufficient protections exist under the Elder Abuse and  
          Dependent Adult Civil Protection Act, which already provides for  
          private, civil enforcement of elder abuse and neglect with  
          strong remedies.  

           Proposed amendment to require 30-day notice and opportunity to  
          correct.   In order to address opposition concerns, the author  
          proposes to amend the enforcement provisions of the bill to  
          include a 30-day notice rule, similar to that found in the  
          Consumer Legal Remedies Act (see Civil Code Section 1782).  As  
          proposed to be amended, the RCFE resident would have to give  
          written notice to the person alleged to have violated any  
          requirements of this bill, and the alleged violator would then  
          have thirty days to cease, correct, or otherwise rectify the  
          alleged violation.  If the alleged violation is still in place  
          after thirty days, the potential plaintiff may then commence an  
          action for damages.

           Additional Author's Amendments.   To address opposition concerns  
          that the bill may interfere with the ability to provide hospice  
          care to RCFE residents in conflict with state and federal  
          regulations, the author proposes the following amendments:

               On page 5, delete lines 1 to 3, and delete lines 7 to 19,  
          inclusive.
           
           Under federal law, hospice patients enjoy certain protections  
          such as the right to refuse care or treatment, choice of  
          physician, and the right to be involved in the development of  
          the hospice plan of care.  (42 C.F.R. section 418.52).  As  
          proposed to be amended, the bill clarifies that RCFE residents  








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          must comply with federal laws regulating hospice care in  
          addition to the rights proposed in this bill.  The amendment is:  


               On page 7, line 21, after "state", insert "or federal"

          Finally, in order to address concerns that the bill may  
          contradict longstanding principles of capacity and surrogacy  
          law, the author proposes to remove Section1569.271 of the bill  
          so that he can continue to work with stakeholders to seek  
          language that appropriately strikes the right balance with  
          existing law but furthers protections for RCFE residents in the  
          area of incapacity.  The amendment is:

               On page 7, delete lines 39-40, and on page 8, delete lines  
          1 to 11.

           ARGUMENTS IN SUPPORT  :  The Office of the State Long Term Care  
          Ombudsman (OSLTCO), an office within the California Department  
          of Aging, authorized by the federal Older Americans Act and the  
          Older Californians Act, with primary responsibility to  
          investigate and endeavor to resolve complaints made by, or on  
          behalf of, individual residents in long-term care facilities,  
          cites troubling developments in the past year that have focused  
          upon mistreatment of older, frail and vulnerable Californians  
          living in RCFEs.  Without programmatic resources that are scaled  
          to respond to the growth in long-term care facilities, and  
          without the ability to maintain their presence in a rapidly  
          expanding industry, the OSLTCO believes that the mere existence  
          of statutory rights compels facilities to remain in compliance  
          with standards that support safe and adequate care.  

          Consumer Attorneys of California describes this bill as the  
          linchpin of the package of bills introduced this year to protect  
          seniors and those with disabilities who reside in RCFEs.   
          According to this co-sponsor, the bill reflects a model of  
          resident rights and enforcement that has been effective for  
          nursing homes and their residents for over 30 years.  They  
          assert there is no reason these protections should not be as  
          successful when applied to RCFEs.  Consumer Attorneys argues  
          that unlike nursing homes which are more heavily regulated,  
          RCFEs, by comparison, lack even minimal government oversight and  
          inspections, making this population extremely vulnerable to  
          abuse and neglect.









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          The California Commission on Aging, an independent state agency  
          made up of gubernatorial and legislative appointees, writes that  
          the lives of RCFE residents are often "limited and bleak," and  
          that a resident's bill of rights is a positive step toward  
          assuring that residents are treated with dignity and respect.   
          The American Association of Retired Persons (AARP) supports the  
          bill because they strongly believe that the legislature should  
          explicitly provide a private right of action in all legislation  
          intended to protect individual rights, as this bill does.

           ARGUMENTS IN OPPOSITION  :  The California Assisted Living  
          Association (CALA), an organization representing licensed RCFEs  
          throughout the state, asserts that the primary impact of this  
          bill would be more lawsuits, as the rights that currently exist  
          in regulation would be codified as law, and could be enforced  
          via a private individual's right to seek relief through the  
          courts.  Such a prospect, they contend, would carry significant  
          financial implications in terms of fines, liability insurance,  
          reputation and particularly attorney's fees.  CALA remains  
          concerned about language which may inappropriately place  
          facilities in the position of judging and becoming liable for,  
          actions of a resident's physician.  CALA also stresses that the  
          private right of action is broader than the one provided to  
          residents of nursing homes, and that the effect is to invite  
          more law suits and to increase liability insurance costs, with  
          no relationship to improved safety.   

           Leading Age California which represents more than 400 providers  
          of not-for-profit senior care and living opportunities, such as  
          affordable housing, continuing care retirement communities,  
          assisted living (RCFE), skilled nursing, and community-based  
          care, is concerned that AB 2171 invites litigation and does  
          little to improve oversight.  They cite Title 22's resident  
          rights, and is concerned that AB 2171 would add current  
          regulatory requirements as new "rights," which would allow for  
          private enforcement outside of the state's regulatory agency.   
          Leading Age is also concerned that AB 2171 inserts RCFE  
          caregiving staff into the physician's treatment plan regarding  
          the use of medications.  RCFEs do not prescribe medications and  
          under existing law and practice, all medications must be  
          self-administered.  Requiring RCFEs to verify "informed consent"  
          is beyond the scope of the social model of care RCFEs provide.  

          The California Hospice and Palliative Care Association (CHAPCA)  
          and the California Association for Health Services at Home have  








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          cited similar concerns with the bill.  The Committee has  
          received a letter from CHAPCA stating that their concerns have  
          been addressed by the author's proposed amendments to the bill,  
                                                              and that their organization will be neutral on the bill once the  
          amendments are adopted.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Advocates for Nursing Home Reform (CANHR)   
          (co-sponsor)
          Consumer Attorneys of California (co-sponsor)
          Alliance on Aging 
          American Association of Retired Persons (AARP) 
          Assisted Living Consumer Alliance (ALCA) 
          Bet Tzedek Legal Services 
          California Alliance for Retired Americans (CARA) 
          California Commission on Aging 
          California Conference Board of the Amalgamated Transit Union 
          California Conference of Machinists 
          California Continuing Care Residents Association 
          California Long-Term Ombudsman Association (CLTCOA)
          California Senior Legislature 
          California Teamsters Public Affairs Council 
          Congress of California Seniors 
          Consumer Advocates for RCFE Reform (CARR) 
          Consumer Attorneys of California - Co-Sponsor 
          Consumer Federation of California
          Contra Costa Advisory Council on Aging (CCACOA) 
          Elder Abuse Task Force of Santa Clara County 
          Elder Law & Advocacy 
          Engineers and Scientists of CA, IFPTE Local 20, AFL-CIO 
          International Longshore and Warehouse Union 
          Johnson Moore Trial Lawyers 
          Long Term Care Services of Ventura County, Inc. 
          Moran Law 
          National Association of Social Workers (NASW) California Chapter  

          National Consumer Voice for Quality Long-Term Care 
          National Senior Citizens Law Center 
          Office of the State Long-Term Care Ombudsman 
          Older Women's League (OWL) 
          Ombudsman Services of Contra Costa 
          Professional & Technical Engineers, IFPTE Local 21, AFL-CIO 








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          Sonoma County Area Agency on Aging
          Stebner and Associates 
          Utility Workers Union of America, Local 132 
          UNITE-HERE, AFL-CIO 
          Valentine Law Group
          WISE & Healthy Aging 



           Oppose
           
          Barney & Barney
          California Assisted Living Association (CALA)
          Channing House
          Community Residential Care Association of California
          Civil Justice Association of California (CJAC)
          Leading Age California

           Oppose (Unless Amended)

           California Hospice and Palliative Care Association
          California Association for Health Services at Home
           
          Analysis Prepared by  :   Anthony Lew and Vincent Wiraatmadja /  
          JUD. / (916) 319-2334