BILL ANALYSIS                                                                                                                                                                                                    �






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                            Senator Jim Beall, Chair


          BILL NO:       AB 2236                                      
          A
          AUTHOR:        Maienschein and Stone                        
          B
          VERSION:       August 22, 2014
          HEARING DATE:  August 27, 2014                              
          2
          FISCAL:        Yes                                          
          2
                                                                      
          3
          CONSULTANT:    Sara Rogers                                  
          6

                                        

                                     SUBJECT
                                         
                   Community Care Facilities: Civil Penalties

                                     SUMMARY  

          This bill, commencing July 1, 2015, would increase the  
          amount of civil penalties that may be imposed for a  
          violation that the California Department of Social Services  
          (CDSS) determines results in the death or serious bodily  
          injury or which constitutes physical abuse to a resident or  
          child at a care facility, as defined. Additionally, this  
          bill permits a licensee to request a formal review of a  
          civil penalty assessed for the death of, or serious bodily  
          injury or physical abuse to, a resident or child at the  
          care facility within 10 days of receipt of the notice of  
          the civil penalty assessment, as specified.

                                     ABSTRACT  

           Existing Law: 
           
          1)Establishes the Community Care Facilities Act (CCFA),  
            providing for the licensure and regulation of nonmedical  
            residential care, day treatment, adult day care, or  
                                                         Continued---



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            foster family agency services for children or adults.  
            (HSC 1500 et seq.)


          2)Establishes the Residential Care Facilities for the  
            Elderly Act to license and regulate Residential Care  
            Facilities for the Elderly (RCFEs) as a separate category  
            within the existing residential care licensing structure  
            of CDSS. (HSC 1569 et seq.)


          3)Provides for the licensure and regulation of Residential  
            Care Facilities for Persons with Chronic,  
            Life-Threatening Illness (RCFE-CI) under a separate  
            category. (HSC 168.01 et seq.)


          4)Establishes the Child Day Care Act, providing for the  
            licensure and regulation of child day care facilities,  
            and large and small family day care homes. (HSC 1596.70  
            et seq.)


          5)Permits CDSS to levy civil penalties for licensure  
            violations, and provides that in no event shall a civil  
            penalty assessment exceed $150 per day, per violation.  
            (HSC 1548, 1568.0822, 1569.49, 1596.99, 1597.58)


          6)Permits CDSS to establish an appeal process for civil  
            penalties via regulation. (HSC 1548, 1568.0822, 1569.49,  
            1596.99, 1597.58)


           This bill:
           
          1)Establishes specified civil penalties for violations  
            determined by CDSS to have resulted in the death, serious  
            bodily injury or which constitute physical abuse of a  
            resident or participant. (See chart in Background and  
            Discussion below)


          2)Defines physical abuse, pertaining to a facility that  
            serves children, to mean physical injury or death  




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            inflicted upon a child by another person by other than  
            accidental means, sexual abuse as defined in WIC 11165.1,  
            neglect as defined in WIC 11165.2, unlawful corporal  
            punishment or injury as defined in WIC 11165.4, where the  
            person responsible for the child's welfare is a licensee,  
            administrator, or employee of any facility licensed to  
            care for children.

          3)Defines physical abuse, pertaining to a facility serving  
            adults, in accordance with WIC 15610.63 to mean any of  
            the following:
                     Assault, as defined in Section 240 of the Penal  
                 Code.
                     Battery, as defined in Section 242 of the Penal  
                 Code.
                     Assault with a deadly weapon or force likely to  
                 produce great bodily injury, as defined in Section  
                 245 of the Penal Code.
                     Unreasonable physical constraint, or prolonged  
                 or continual deprivation of food or water.
                     Sexual assault, that means any of the  
                 following:
                    o           Sexual battery, as defined in Section  
                      243.4 of the Penal Code.
                    o           Rape, as defined in Section 261 of  
                      the Penal Code.
                    o           Rape in concert, as described in  
                      Section 264.1 of the Penal Code.
                    o           Spousal rape, as defined in Section  
                      262 of the Penal Code.
                    o           Incest, as defined in Section 285 of  
                      the Penal Code.
                    o           Sodomy, as defined in Section 286 of  
                      the Penal Code.
                    o           Oral copulation, as defined in  
                      Section 288a of the Penal Code.
                    o           Sexual penetration, as defined in  
                      Section 289 of the Penal Code.
                    o           Lewd or lascivious acts as defined in  
                      paragraph (2) of subdivision (b) of Section 288  
                      of the Penal Code.
                     Use of a physical or chemical restraint or  
                 psychotropic medication under any of the following  
                 conditions:
                    o           For punishment.




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                    o           For a period beyond that for which  
                      the medication was ordered pursuant to the  
                      instructions of a physician and surgeon  
                      licensed in the State of California, who is  
                      providing medical care to the elder or  
                      dependent adult at the time the instructions  
                      are given.
                    o           For any purpose not authorized by the  
                      physician and surgeon.


          1)Defines serious bodily injury, pertaining to facilities  
            serving adults except RCFEs, in accordance with Penal  
            Code 243(f)(4), to mean a serious impairment of physical  
            condition, including, but not limited to, the following:  
            loss of consciousness; concussion; bone fracture;  
            protracted loss or impairment of function of any bodily  
            member or organ; a wound requiring extensive suturing;  
            and serious disfigurement.


          2)Defines serious bodily injury, pertaining to RCFEs, in  
            accordance with WIC 15610.67 to mean an injury involving  
            extreme physical pain, substantial risk of death, or  
            protracted loss or impairment of function of a bodily  
            member, organ, or of mental faculty, or requiring medical  
            intervention, including, but not limited to,  
            hospitalization, surgery, or physical rehabilitation.


          3)Defines serious injury, pertaining to child day care  
            facilities and family day care homes, in accordance with  
            HSC 1596.8865 to mean a serious impairment of physical  
            condition, including, but not limited to, the following:  
            loss of consciousness; concussion; bone fracture;  
            protracted loss or impairment of function of any bodily  
            member or organ; a wound requiring extensive suturing;  
            and serious disfigurement.


          4)Provides that a civil penalty for physical abuse, serious  
            bodily injury or death must be approved by the Director  
            of CDSS. 






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          5)Permits a licensee to submit to the department a written  
            request for a formal review of a civil penalty within 10  
            days of receipt of the notice according to the following  
            structure: 
                     Within ten days of assessment, the penalty may  
                 be appealed to the regional manager. The regional  
                 manager must respond within 60 days.
                     Within ten days of the response, the penalty  
                 may be appealed to the program administrator. The  
                 program administrator must respond within 60 days.
                     Within ten days of the response, the penalty  
                 may be appealed to the deputy director for CCLD. The  
                 deputy director must provide a final response within  
                 60 days.
                     After administrative appeal is exhausted, the  
                 licensee may appeal to an Administrative Law Judge.   



          9. Provides that the provisions of this bill shall take  
          effect beginning July 1, 2015.

                                  FISCAL IMPACT  

          The Senate Appropriations Analysis of a prior version of  
          this bill stated there are ongoing costs to CDSS in the  
          range of $150,000 to $300,000 (General Fund) for legal  
          review of potential citations prior to issuance, dependent  
          on the volume of citations to be handled. Additionally,  
          there are potentially significant ongoing costs in the  
          hundreds of thousands of dollars (General Fund) to CDSS for  
          the expanded appeal and review process. The analysis  
          additionally states there are one-time costs to DSS  
          potentially in excess of $150,000 (General Fund) to revise  
          regulations and make penalty system adjustments. The cost  
          estimate for the prior language of this bill is expected to  
          reflect cost estimates for the current version as well.


                            BACKGROUND AND DISCUSSION  
          
          According to the author, the current civil penalty  
          structure for community care facilities does not  
          distinguish between violations of differing severities and  
          has remained essentially unchanged since its establishment  




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          in 1985. The author states that today, the maximum civil  
          penalty that CDSS can assess for a violation that led to a  
          death or serious bodily injury of a resident, or which  
          constitute physical abuse is $150 and that such a low fine  
          is not meaningful. 

          The current version of this bill is the result of extensive  
          negotiations that included legislative staff, CDSS, the  
          administration, facility representation and consumer  
          groups. 

          2014-2015 Budget Act

          As part of the Governor's 2014-2015 proposed budget, the  
          Administration put forth trailer bill language that had  
          substantial overlap with provisions of this bill. However,  
          that language ultimately was not included in SB 855  
          (Committee on Budget and Fiscal Review, 2014) the Human  
          Services omnibus trailer bill which was passed by the  
          Legislature on June 15th. Instead of amending the civil  
          penalty structure in the budget, the Legislature adopted  
          the following intent language:


            The Legislature finds and declares that the current civil  
            penalty structure for facilities licensed by the State  
            Department of Social Services is insufficient to ensure  
            the health and safety of those in care. It is the intent  
            of the Legislature to comprehensively increase these  
            penalties for all facilities in subsequent legislation,  
            with particular emphasis on penalties for violations that  
            result in serious injury or death.


          In its original proposal, the Administration proposed  
          significant changes to the civil penalty structure using a  
          substantially different methodology than this bill.  
          Specifically, the Governor's proposal established a penalty  
          structure for serious offenses, including but not limited  
          to death, serious bodily injury and physical abuse, of five  
          times the amount of the annual licensing fee per day per  
          violation. The stated reasoning behind this method was that  
          given the wide variation in size of facilities, even within  
          licensing categories, it was not feasible to set an  
          appropriate penalty amount that would not be either  




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          excessively burdensome on small facilities, or so small as  
          to have no deterrent effect on large facilities. The  
          department argued that establishing a civil penalty  
          structure based on a factor of a facilities licensing fee  
          would create a structural penalty variation proportionate  
          to the size of each facility. 


          In contrast, this measure establishes set dollar amounts  
          for each violation type and for each facility, depending on  
          size of the facility as follows:









 ------------------------------------------------------------- 
                                         
                                    COMMENTS
           
          Negotiations with stakeholders have led to significant  
          changes in the final content of the bill. Specifically, it  
          was the author's initial intent to address the civil  
          penalty amounts for "zero tolerance" violations in RCFEs  
          that are considered to place residents or participants at  
          risk of death or serious injury, such as an unsecured  
          swimming pool or fire hazard. However, the Governor's  
          proposal sought to amend civil penalties for all  
          CDSS-licensed facilities, and the administration indicated  
          it was opposed to amending civil penalties for RCFEs alone.  
          This version of the bill reflects the author's response to  
          facilities' varied concerns with the existing structure of  
          "zero tolerance" violations. As a result of these concerns,  
          the bill was narrowed to focus only on single-occurrence  
          type violations that led to death, serious bodily injury or  
          physical abuse.

                                   PRIOR VOTES  

          The current version of this bill has not been voted on.





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                                   POSITIONS  

          Support:       None received

          Oppose:   None received

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