BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1153
                                                                  Page  1

          Date of Hearing:   July 2, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    SB 1153 (Leno) - As Amended:  April 10, 2014 

          Policy Committee:                             Human  
          ServicesVote:6 - 0
                       Aging                                  6 - 0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable: No

           SUMMARY  

          This bill authorizes the Department of Social Services (DSS) to  
          suspend admissions to a Residential Care Facility for the  
          Elderly (RCFE) under specific circumstances. Specifically, this  
          bill: 

          1)Authorizes DSS to order a suspension of new admissions for a  
            facility if either:

             a)   The RCFE has violated statute or any applicable  
               regulations, the violation presents a direct and immediate  
               risk to the health, safety, or personal rights of a  
               resident or residents of the facility, and the violation is  
               not corrected immediately.

             b)   The RCFE has failed to pay a fine assessed by the  
               department after the facility's appeal rights have been  
               exhausted.

          2)Provides that any suspension of new admissions for a failure  
            to pay a fine, as specified, shall remain in effect until the  
            facility pays the assessed find. 

          3)Requires a suspension of new admissions to remain in effect  
            until DSS determines the facility has corrected the violation.  


          4)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  








                                                                  SB 1153
                                                                  Page  2

            licensee has demonstrated that the deficiency was corrected as  
            required in the notice. 

          5)Authorizes 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 and 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.

          6)Provides appeal rights for RCFEs who have received an  
            admissions suspension and requires DSS to adopt regulations  
            that specify the appeal procedure.  

           FISCAL EFFECT  

          1)One-time costs to DSS of approximately $120,000 (GF) to  
            develop an implementation plan, write regulations, and update  
            the Evaluator Manual.
          2)On-going costs to DSS, likely in the range of $30,000 to  
            $60,000 annually, for compliance and case management visits  
            following admissions bans, assuming between 50% and 100% of  
            possible admissions bans are imposed.  
           
          3)Unknown on-going costs to DSS, likely in the range of $250,000  
            to $500,000 annually, to process appeals. DSS reports that in  
            2012-13 there were 509 citations or penalty delinquencies that  
            could qualify for admissions suspension under this bill.   
            Assuming between 25% and 50% of RCFEs appeal a suspension and  
            that each appeal takes approximately 12.75 hours of staff  
            time, costs to handle the appeals would range from $250,000 to  
            $500,000.  If suspensions were not imposed in all cases, the  
            costs would be less.
           
          COMMENTS  

           1)Purpose  . The author notes, California needs tougher  
            enforcement tools to help ensure that assisted living  
            facilities comply with the state's critical health and  
            safety regulations, which are designed to keep elderly  
            people safe during a critical time in their lives.  SB  
            1153 allows Community Care Licensing (CCL) to ban all new  
            admissions to care facilities that have serious  
            violations of health and safety regulations.  It gives  
            assisted living facilities an opportunity to focus on  








                                                                  SB 1153
                                                                  Page  3

            correcting the identified problems before admitting new,  
            paying clients.  The bill would also ban new admissions  
            if a facility has not paid its fines.  It is unacceptable  
            to allow elderly Californians, especially those who are  
            most vulnerable, to become residents of care homes that  
            we already know are unsafe.  Under no circumstances  
            should new patients enter a facility that has documented  
            and unaddressed health and safety violations.

           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  
            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 more than 176,000 residents.  Licensed by DSS'  
            Community Care Licensing Division (CCL), RCFEs range in size  
            from residential homes with six or less beds to more formal  
            residential facilities with 100 beds or more.  DSS is required  
            to conduct unannounced licensing inspections of the more than  
            75,000 licensed community care facilities, including RCFEs, at  
            least once every five years, more often in some circumstances.  


           3)RCFE Reform Package  . In response to a number of highly  
            publicized events at facilities licensed by CCL that have  
            raised questions regarding 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 











                                                                  SB 1153
                                                                  Page  4