Fiscal Note - SB 0136 - RCFs I & II To Serve People Who Are Mentally Incapable of Negotiating Their Way To Safety Without Assistance
L.R. NO. 0630-01
BILL NO. SB 136
SUBJECT: Elderly; Health Care; Department of Health; Nursing and Boarding
Homes; Department of Social Services
TYPE: Original
DATE: January 10, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Health assume this proposal would not
fiscally impact their agency.
Department of Mental Health (DMH) officials state that rates of residential
care facilities' (RCF) are generally a flat rate amount and are not a
budgeted rate. Therefore, if additional cost to the provider is involved
(i.e., cost of renovating, hiring additional staff, etc.) the provider might
opt to no longer serve DMH's client, as the overhead cost involved might make
it unrealistic for the provider to accept DMH clients at the flat rate. This
may result in fewer housing choices for some DMH clients. DMH, however, may
continue to utilize existing providers and is not obligated to use providers
who make the improvements required under this proposal. Therefore, DMH
assumes this proposal would not fiscally impact their agency.
Officials from the Department of Social Services (DOS) state that current
licensure rules already require that RCF's licensed after 1980, except for
RCFs I with twenty or fewer residents, have complete fire alarm systems, as
described in this proposal, and to the exit requirements contained in the
proposal. Currently there are 61 RCFs out of 383 RCFs with twenty or fewer
residents. DOS - Division of Aging Life Safety Code staff estimate that
approximately 80% of all currently licensed RCFs (I and II) already have
sprinkler and fire alarm systems in place and whose exits comply with the
proposal. The remaining 20% is comprised of those RCFs I which have twenty
or fewer residents and RCFs licensed prior to 1980, before fire alarm
systems, if there is a sprinkler system, were required. There may also be a
minimal number of RCFs which were licensed before 1987 which are neither
constructed of fire resistant materials nor sprinklered. Therefore, the
proposal would not affect many RCFs already in existence.
DOS assumes there would be no immediate fiscal impact for the DOS - Division
of Aging (Aging) in that inspections for compliance with fire safety
requirements, staffing and training requirements are currently done on an
annual basis. The changes in this proposal would be incorporated into the
current inspection process. If there is an increase in the number of
facilities developed as a result of this proposal, Aging would have to assess
its need for increased inspection staff, and possibly clerical staff, to
conduct and process the inspections. It is not likely that this will occur
in the next three or four years to any significant degree. In fact, the most
recent reported occupancy rate of 71.8% suggests that existing facilities, if
they elect to admit these individuals, may satisfy the immediate or near-term
need for the placement of these individuals.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Small Business
Small businesses would be expected to be fiscally impacted to the extent that
they incur additional costs due to the safety requirements of this proposal.
DESCRIPTION
This proposal would allow Residential Care Facilities I and II, which meet
specific fire safety, staffing and training requirements to admit and/or
retain persons who are physically capable, but who are mentally incapable, of
negotiating a normal path to safety without assistance. The facility would
be equipped with (1) an approved automatic sprinkler and (2) an electrically
supervised fire alarm system which would have either batteries or a generator
as an emergency source of power and alarm bells or other sounding devices.
The fire alarm systems, with manual pull stations, would be located at or
near each exit or nurses station. Any multi-story facility would have at
least two unobstructed exits remote from each other. One exit would be an
outside stairway or an enclosed stairway separated by at least one 1-hour
firewall. The second exit may lead to a lobby, if such lobby has exit
facilities leading directly outside at ground level. The facility would have
an adequate number and type of personnel on duty twenty-four hours a day.
The required staff persons shall be awake, dressed and prepared to assist
residents in case of an emergency. Newly employed personnel must have at
least twenty hours of orientation training within thirty days of
employment and four hours of this time shall relate to the care and safety of
residents with Alzheimer's disease and/or related dementia.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Department of Health
Department of Social Services
Department of Mental Health
This Fiscal Note is not an official copy and should not be quoted or cited.