BILL NUMBER: AB 392AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 22, 2009 INTRODUCED BY Assembly Members Feuer and Jones (Principal coauthor: Assembly Member Bonnie Lowenthal) ( Principal coauthor: Senator Alquist ) (Coauthors: Assembly Members Hill, Huffman, Lieu, Monning, Price, and Ruskin) FEBRUARY 23, 2009 An act to amend Section 1417.2 of the Health and Safety Code, relating to long-term health care facilities , and making an appropriation therefor . LEGISLATIVE COUNSEL'S DIGEST AB 392, as amended, Feuer. Long-term health care facilities. Existing law provides for the licensure of long-term health care facilities by the State Department of Public Health. Under existing law, the Long-Term Care, Health, Safety, and Security Act of 1973, the department may assess penalties for violation of prescribed state and federal requirements. Moneys collected as a result of the penalties imposed pursuant to these provisions are required to be deposited into either the State Health Facilities Citation Penalties Account or the Federal Health Facilities Citation Penalties Account, and used, upon appropriation by the Legislature, for the protection of health or property of residents of long-term health care facilities, including reimbursing residents for personal funds lost and costs associated with informational meetings. Existing law establishes the Office of the State Long-Term Care Ombudsman in the California Department of Aging. Under existing law, the office is responsible for, among other things, investigating and resolving complaints and concerns communicated by or on behalf of patients, residents, or clients of long-term care facilities, as defined. Existing law authorizes the California Department of Aging to allocate all federal and state funds for local ombudsman programs according to a specified distribution schedule. This bill would require at least 1/2 of the funds in the State Health Facilities Citation Penalties Account and the Federal Health Facilities Citation Penalties Account be used to fund local ombudsman programs pursuant to the aforementioned distribution schedule. This bill would appropriate $1.6 million from the Federal Health Facilities Citation Penalties Account to the California Department of Aging for local ombudsman programs, to be used before the end of the 2009-10 fiscal year. Vote: majority 2/3 . Appropriation: no yes . Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The sum of one million six hundred thousand dollars ($1,600,000) is hereby appropriated from the Federal Health Facilities Citation Penalties Account to the California Department of Aging for use in funding local ombudsman programs pursuant to the distribution schedule in Section 9719.5 of the Welfare and Institutions Code. These funds may be used for this purpose through the end of the 2009-10 fiscal year, at which time remaining funds shall revert to the originating account. SECTION 1. Section 1417.2 of the Health and Safety Code is amended to read: 1417.2. (a) Notwithstanding Section 1428, moneys collected as a result of state and federal civil penalties imposed under this chapter or federal law shall be deposited into accounts that are hereby established in the Special Deposit Fund created pursuant to Section 16370 of the Government Code. These accounts are titled the State Health Facilities Citation Penalties Account, into which moneys derived from civil penalties for violations of state law shall be deposited, and the Federal Health Facilities Citation Penalties Account, into which moneys derived from civil penalties for violations of federal law shall be deposited. Moneys from these accounts shall be used, notwithstanding Section 16370 of the Government Code, upon appropriation by the Legislature, as follows: (1) At least one-half of the funds in the accounts shall be used to fund the local ombudsman programs pursuant to the distribution schedule in Section 9719.5 of the Welfare and Institutions Code. (2) The remaining funds in the accounts that are not used pursuant to paragraph (1) shall be used in accordance with state and federal law for the protection of health or property of residents of long-term health care facilities, including, but not limited to, the following: (A) Relocation expenses incurred by the department, in the event of a facility closure. (B) Maintenance of facility operation pending correction of deficiencies or closure, such as temporary management or receivership, in the event that the revenues of the facility are insufficient. (C) Reimbursing residents for personal funds lost. In the event that the loss is a result of the actions of a long-term health care facility or its employees, the revenues of the facility shall first be used. (D) The costs associated with informational meetings required under Section 1327.2. (b) Notwithstanding subdivision (a), the balance in the State Health Facilities Citation Penalties Account shall not, at any time, exceed ten million dollars ($10,000,000). (c) Moneys from the Federal Health Facilities Citation Penalties Account, in the amount not to exceed one hundred thirty thousand dollars ($130,000), may also be used, notwithstanding Section 16370 of the Government Code, upon appropriation by the Legislature, in accordance with state and federal law for the improvement of quality of care and quality of life for long-term health care facilities residents pursuant to Section 1417.3. (d) The department shall post on its Internet Web site, and shall update on a quarterly basis, all of the following regarding the funds in the State Health Facilities Citation Penalties Account and the Federal Health Facilities Citation Penalties Account: (1) The specific sources of funds deposited into the account. (2) The amount of funds in the account that have not been allocated. (3) A detailed description of how funds in the account have been allocated and expended, including, but not limited to, the names of persons or entities that received the funds, the amount of salaries paid to temporary managers, and a description of equipment purchased with the funds. However, the description shall not include the names of residents.