BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  SB 1153
          Author:   Leno (D), et al.
          Amended:  4/10/14
          Vote:     21


           SENATE HUMAN SERVICES COMMITTEE  :  5-0, 4/8/14
          AYES:  Liu, Berryhill, DeSaulnier, Hancock, Wyland

           SENATE APPROPRIATIONS COMMITTEE  : Senate Rule 28.8


           SUBJECT  :    Residential care facilities for the elderly

           SOURCE  :     California Advocates for Nursing Home Reform


           DIGEST  :    This bill authorizes the Department of Social  
          Services (DSS) to order a suspension of new admissions  
          prohibiting a residential care facility for the elderly (RCFE)  
          from admitting new residents if the facility has failed to pay a  
          fine assessed by DSS or if DSS finds that the facility has  
          violated applicable laws and the violation presents a direct or  
          immediate risk to the health, safety, or personal rights of a  
          resident and is not corrected immediately.  Authorizes a  
          licensee to appeal the suspension and requires DSS to adopt  
          regulations that specify the appeal procedure.

           ANALYSIS :    

          Existing law: 

          1.Establishes the RCFE Act which provides for DSS to license and  
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            regulate RCFEs as a separate category within the existing  
            residential care licensing structure of DSS.

          2.Provides that RCFEs shall be subject to unannounced visits by  
            DSS and that DSS shall visit facilities as often as necessary  
            to ensure the quality of care provided.

          3.Permits DSS to deny an application for a license or may  
            suspend or revoke any license due to a licensee's violation of  
            the RCFE Act or related regulations.

          4.Permits DSS to assess civil penalties of not less than $25 and  
            not more than $50 per violation, per day for each violation  
            except where the seriousness of the violation warrants a  
            higher penalty, in no case to exceed $150 per day per  
            violation.

          5.Provides that the failure of an applicant for licensure or a  
            licensee to pay all applicable and accrued fees and civil  
            penalties constitutes grounds for denial or forfeiture of a  
            license.

          6.Provides that upon issuing eviction notices to residents or  
            submitting a closure plan due to license forfeiture or a  
            facility change of use, that an RCFE shall not accept new  
            residents for admission.

          7.Through regulation, requires DSS to conduct a follow-up visit  
            within 10 working days following the latest date of correction  
            specified in the notice of deficiency, unless the licensee has  
            demonstrated that the deficiency was corrected as required.   
            Provides that no penalty shall be assessed unless a follow-up  
            visit is conducted.

          This bill: 

          1.Permits DSS to order a suspension of new admissions, defined  
            as a prohibition on admitting new residents, for a facility in  
            either of the following circumstances:

             A.   The facility has violated statute or regulation and the  
               violation indicates that the facility presents a direct and  
               immediate risk to the health, safety or personal rights of  
               a resident or residents of the facility, and the violation  

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               is not corrected immediately.

             B.   The facility has failed to pay a fine assessed by DSS  
               after the facility's appeal rights have been exhausted.

          1.Requires the suspension on new admissions due to a failure to  
            pay a fine to remain in effect until the facility pays the  
            fine assessed by DSS.

          2.Requires a suspension of new admissions to remain in effect  
            until DSS determines that the facility has corrected the  
            violation.  Requires DSS to conduct a follow-up visit to  
            determine compliance within 10 working days following the  
            latest date of correction specified in the notice of  
            deficiency, unless the licensee has demonstrated that the  
            deficiency was corrected as required in the notice.  Permits  
            DSS to make unannounced visits after the suspension of new  
            admissions is lifted to ensure that the facility continues to  
            maintain correction of the violation.  Permits DSS to order  
            another suspension of new admissions or take other appropriate  
            enforcement action if the facility does not maintain  
            correction of the violation.

          3.Permits a licensee to appeal a suspension of new admissions,  
            as defined, to the DSS Director and requires DSS to adopt  
            regulations that specify the appeal procedure.

          4.Prohibits a suspension of new admissions ordered under these  
            provisions from being stayed pending the facility's appeal or  
            request for review.

           Background
           
           Recent events  .  A series of recent events has drawn attention to  
          questions about the adequacy of DSS' oversight and the state's  
          ability to protect people who receive services within  
          DSS-licensed facilities.

          In July 2013, ProPublica and Frontline reporters wrote and  
          produced a series of stories on Emeritus, the nation's largest  
          RCFE provider.

          Featured in the article was a woman who died after receiving  
          poor care at in a facility in Auburn, California.  The series  

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          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 in recent  
          years in RCFEs under questionable circumstances that went  
          ignored or unpunished by the Community Care Licensing Division  
          (CCL).

          In late October 2013, 19 frail seniors were abandoned at Valley  
          Springs Manor in Castro Valley by the licensee and all but two  
          staff after the state began license revocation proceedings for  
          the facility.  DSS inspectors, noting the facility had been  
          abandoned, left the two unpaid service staff to care for the  
          abandoned residents with insufficient food and medication,  
          handing them a $3,800 citation before leaving for the weekend.   
          The next day sheriff's deputies and paramedics sent the patients  
          to local hospitals.

           Prior Legislation
           
          AB 313 (Monning, Chapter 365, Statutes of 2011) requires each  
          RCFE to provide residents, their responsible party, and the  
          local long-term care ombudsman with a 10 day written notice when  
          DSS commences proceedings to suspend or revoke its license, or a  
          criminal action relating to health or safety of the residents is  
          brought against the facility, and makes other changes related to  
          these actions.

          AB 2066 (Monning, Chapter 643, Statutes of 2012) requires RCFEs  
          to provide a 60 day written notice to residents or the  
          responsible person within 24 hours following receipt of DSSs  
          order of revocation.  Permits the licensee to secure an  
          alternative manager, as specified.  Requires RCFEs to refund  
          all, or a portion of preadmission fees to residents transferring  
          as the result of a license revocation, as specified.

          SB 897 (Leno, Chapter 376, Statutes of 2011) requires licensed  
          RCFEs to notify DSS, the state's Long-Term Care Ombudsman and  
          the facility's residents when the property is subject to  
          foreclosure or certain other events occur due to financial  
          distress.


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          AB 419 (Mitchell, 2011), would have required every community  
          care facility licensed by DSS to be inspected unannounced at  
          least once per year using research based, field tested  
          inspection protocols, as specified.  This bill died in the  
          Assembly Appropriations Committee.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  4/29/14)

          California Advocates for Nursing Home Reform (source)
          AARP
          Advocacy Inc of Santa Cruz and San Benito Counties
          AFSCME
          Alliance on Aging of Monterey County
          Assisted Living Consumer Alliance
          California Assisted Living Association
          California Association of Public Authorities for IHSS
          California Commission on Aging
          California Continuing Care Residents Association
          California Long Term Care Association
          California Senior Legislature
          Congress of California Seniors
          Consumer Attorneys of California
          Consumer Federation of California
          County of San Diego
          Elder Abuse Task Force of Santa Clara County
          Elder Law and Advocacy, San Diego and Imperial Counties
          Johnson Moore 
          Leading Age California 
          Long Term Care Ombudsman Services of San Luis Obispo County
          National Consumer Voice for Long Term Care
          National Senior Citizens Law Center
          Ombudsman and HICAP Services of Northern California
          Ombudsman Services of Contra Costa
          Valentine Law Group

           ARGUMENTS IN SUPPORT  :    California Advocates for Nursing Home  
          Reform (CANHR), the sponsor of this bill, states that recent  
          media and advocacy reports have uncovered major problems in  
          RCFEs.  One area that has been universally criticized has been  
          enforcement of regulatory care standards by DSS.  CANHR asserts  
          that currently, DSS has very few methods to ensure RCFE  

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          compliance with state standards.

          CANHR believes this bill will help protect the state's frail and  
          vulnerable seniors in RCFEs by giving the DSS' CCL a powerful  
          new enforcement tool to ensure that RCFEs comply with critical  
          health and safety regulations and pay civil penalties and fines  
          that have been assessed against them.


          JL:e  4/30/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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