2007-2008 Legislative Session
AB 2947 (Eng) - Anti-Arbitration in AL
VETOED
The Governor, recognizing the benefits of arbitration, vetoed AB 2947 which would have placed severe restrictions in the right to arbitrate disputes in Assisted Living. CALA lobbied agressively against this bill and benefited from strong grassroots efforts by members - thanks to everyone who wrote letters! Thanks also to Joel Goldman and Lori Ferguson, Hanson Bridgett, who provided legal arguments and testified in opposition to the bill. The text of the Governor's veto message is included below:
To the Members of the California State Assembly:
I am returning Assembly Bill 2947 without my signature. This bill is well intentioned, but it discourages the use of arbitration which is a cost effective means of resolving disputes. The use of arbitration helps to reduce the backlogs in our overburdened court system. Additionally, the increased provider costs associated with resolving all disputes with residents through litigation could ultimately be detrimental to the residents themselves, as these costs are passed on in increased rates.
State restrictions on the right to arbitrate are contrary to the Federal Arbitration act and those restrictions would not address the intent of the bill, which is the protection of elders in Residential Care Facilities for the Elderly from abuse.
For these reasons, I am returning this bill without my signature.
Sincerely,
Arnold Swarzenegger
AB 2598 (Leno) -- Rent Control in Assisted Living
DEAD
This bill, which would have allowed local jurisdictions to impose rent control on assisted living, was not taken up for a vote on the Assembly Floor prior to the deadline and is now dead. During the final days of this bill, there was growing recognition that imposing rent control on a 24-hour licensed care provider was counter-productive and could likely end up seriously harming this model of care which consumers find so desirable. What remains, however, is a strong interest in expanding access to Assisted Living services. CALA is committed to working with Assemblyman Leno and others to do just that.
AB 2370 (Bass) – Rate History Disclosure
SIGNED by the Governor
On or before January 31 of each year, licensed RCFEs will now be required to prepare a document disclosing average monthly rate increases, inclusive of rates for living units and service fees, over the previous three years. “Service fees” do not include fees for optional services or services provided by
a third party. The average amount of the increase as well as the average percentage of the increase must be disclosed. This written disclosure is to be provided to every resident or resident’s representative upon signing the admission agreement. The resident or resident’s representative must sign a confirmation of receipt of the disclosure and this must be kept in the resident’s file. You must also provide a copy to any prospective resident or his/her representative. While most providers already share this information upon request, this new law will ensure that all consumers have access to the information.
Newly licensed facilities without three years of resident rate increase history shall disclose for the years during which it served residents. This law does not apply to newly licensed facilities with no current residents.
CALA was able to work with Speaker Bass on amendments that, among other things, removed the requirement that the information be posted on the front door. These amendments enabled us to remove our opposition. The final language provides helpful information to all prospective residents, while at the same time respecting the privacy concerns of current residents. CALA members are welcome to access additional information regarding this bill by clicking here.
AB 749 (Wolk) -- Disaster Plans
SIGNED by the Governor
AB 749 enhances the current disaster plan requirements by providing that all communities must have a plan to be self-reliant for up to 72-hours following any emergency or disaster. Effective March 1, 2009, all RCFEs must have a disaster plan that addresses the following:
- procedures for provision of emergency power, that could include identification of companies that supply back-up generators
- process for responding to residents’ needs in the event the emergency call buttons are inoperable
- process for communicating with residents, families, hospice providers, and others, as appropriate, that might include landline phones, cellular phones, or walkie-talkies
- storage and preservation of medications
- operation of assistive medical devices that need electric power for their operation, including but not limited to, oxygen equipment and wheelchairs
- process for identifying residents with special needs, such as hospice and a plan for meeting those needs
- transportation needs and evacuation procedures to ensure that the facility can communicate with emergency response personnel or can access the information necessary in order to check the emergency routes to be used at the time of an evacuation and relocation necessitated by a disaster.
The plan must be made available to residents onsite and available to local emergency responders. CCLD will confirm that the plan is on file at the facility during comprehensive licensing visits. CCLD is not required to evaluate the plan. While much of AB 749 is already required or recommended by CCLD, the bill will result in a higher standard that all providers must comply with. CALA is pleased to have been able to work with Assemblymember Wolk on this important legislation benefiting providers and consumers. CALA members are encouraged to check out the Disaster Preparedness Guide, available to members only. (make the Disaster Preparedness Guide a link)
AB 759 (Karnette) Fire Safety
VETOED
Once again, the Governor has vetoed a bill to strengthen fire safety in small, 6-bed RCFEs. This bill would have required annual fire safety inspections for RCFEs licensed for 6 or fewer residents and authorized fees to cover the cost of the inspections. The Governor vetoed the bill due to concerns
that the additional costs to providers would reduce access to housing and care for California’s seniors.
Originally, this bill required 6-bed facilities to be fully sprinklered. It was amended due to prior vetoes and DSS opposition to that requirement. The annual fire safety inspections were intended to provide additional safeguards without the expense of sprinklers.
AB 978 (Benoit) Enforcement
SIGNED by the Governor
This bill strengthens the enforcement methods for violations of serious health and safety violations in CCLD licensed facilities. AB 978 defines serious violations warranting civil penalties of up to $150 per day to include lack of fire clearance, absence of supervision, accessible bodies of water, accessible firearms or ammunition, refusing CCLD entry to a facility, and presence of an excluded person. Given the serious
and significant misinterpretation and misapplication of fire clearance requirements regarding “bedridden” residents, CALA obtained amendments to clarify that there are no civil penalties when:
- the clearance has been requested and is pending;
- eviction notices have been issued; or
- a denial is under appeal. Providers have 60 days to appeal a denial to the local fire jurisdiction and the
- OSFM.
The bill authorizes DSS to use civil penalties to ensure the health and safety of persons provided care and supervision by licensees and support activities of the licensing program. The bill also requires DSS to ensure that a licensee’s plan of correction is verifiable and measurable. It requires DSS to specify in its licensing report violations which if not corrected will present an immediate risk to the health, safety or personal rights of clients, and place a note of final conclusion in the facility’s file after its investigation is completed.

