BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 894
                                                                  Page  1

          Date of Hearing:   August 6, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    SB 894 (Corbett) - As Amended:  June 26, 2014 

          Policy Committee:                             Human  
          ServicesVote:5 - 0
                       Aging                                  5 - 0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires the Department of Social Services (DSS) to  
          provide the Office of the State Long-Term Care Ombudsman (within  
          the Department of Aging) a precautionary notification for the  
          purposes of providing advocacy services to residents "if the  
          department begins to prepare to issue" a temporary suspension  
          order to a residential care facility for the elderly (RCFE) or  
          revoking a facility's license.

           FISCAL EFFECT  

          Negligible fiscal impact to DSS to send, and to the Department  
          of Aging to receive, additional notifications from DSS of  
          pending suspension and revocation orders.

           COMMENTS  

           1)Purpose  . Supporters contend state law does not adequately  
            protect consumers when the license of a RCFE is suspended or  
            revoked.  Proponents further assert DSS is unable to  
            adequately safeguard the health and safety of elder and  
            dependent adults living in residential care facilities whose  
            licenses have been suspended or revoked.  SB 894 takes a small  
            step to strengthen and improve the safeguards for residents by  
            requiring the Long-Term Care Ombudsman be notified earlier in  
            the facility license suspension/revocation process.

           2)Background  . RCFEs, commonly referred to as assisted living  
            facilities, are licensed retirement  residential homes and  
            board and care homes that provide personal care and  








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            supervision or health-related services to persons who are 60  
            years of age and over, who voluntarily choose to reside in the  
            facility.  RCFEs enable older persons to live independently in  
            a home-like environment rather than in nursing home or other  
            institutionalized facility.  Services include personal care  
            and protective supervision, including incidental medical  
            services, based upon the needs of the resident.   
           
            There are 7,589 licensed RCFEs in California with a capacity  
            to serve over 176,000 residents.  Licensed by the DSS  
            Community Care Licensing Division (CCLD), RCFEs range in size  
            from residential homes with six or less beds to more formal  
            residential facilities with more than 100 beds. Existing law  
            requires DSS to notify the Office of the State LTC Ombudsman  
            whenever DSS substantiates serious violations posing a threat  
            to health and safety of any resident or causes an accusation  
            to be filed for license revocation.

           3)Recent events  . Recent media focused upon the abandonment of  
            Valley Springs Manor, a RCFE with 19 residents in the city of  
            Castro Valley.  In May 2013 the CCLD, taking action in  
            response to the beleaguered facility's poor care history,  
            revoked Valley Springs Manor's license.  Licensees are granted  
            appeal rights in such instances and the revocation was  
            immediately appealed, which allowed the facility to remain  
            operational.  The licensee abandoned the facility during the  
            fall of 2013, ultimately leaving its frail clientele under the  
            care of the facility cook. It was not until the cook called  
            "911" that emergency protocol to protect the residents was  
            activated. 

           4)RCFE Reform Package  . In response to a number of highly  
            publicized events at facilities that have raised questions  
            about the adequacy of RCFEs and the state's ability to comply  
            with existing oversight and enforcement requirements, a number  
            of legislative measures are being pursued to strengthen,  
            address shortcomings, resolve legal liabilities and gaps in  
            the provision of services, and ultimately reform the RCFE  
            industry.  


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










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