SENATE BILL REPORT

ESHB 2954

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by Senate Committee On:

Ways & Means, March 8, 2010

Title: An act relating to license fees for nursing homes, boarding homes, and adult family homes.

Brief Description: Concerning license fees for nursing homes, boarding homes, and adult family homes.

Sponsors: House Committee on Health & Human Services Appropriations (originally sponsored by Representative Cody; by request of Department of Social and Health Services).

Brief History: Passed House: 2/26/10, 53-43.

Committee Activity: Ways & Means: 3/08/10 [DPA, DNP, w/oRec].

SENATE COMMITTEE ON WAYS & MEANS

Majority Report: Do pass as amended.

Signed by Senators Prentice, Chair; Fraser, Vice Chair, Capital Budget Chair; Tom, Vice Chair, Operating Budget; Fairley, Keiser, Kline, Kohl-Welles, McDermott, Murray, Pridemore, Regala and Rockefeller.

Minority Report: Do not pass.

Signed by Senators Zarelli, Ranking Minority Member; Carrell, Honeyford and Schoesler.

Minority Report: That it be referred without recommendation.

Signed by Senators Brandland, Hewitt and Parlette.

Staff: Megan Atkinson (786-7446)

Background: The Department of Social and Health Services (DSHS) administers numerous licensure programs including licenses for nursing homes, boarding homes, and adult family

homes. The authority to charge license fees for these three facility types is currently provided in statute along with differing direction regarding the amount of the fee. DSHS is directed to set the nursing home license fee in an amount adequate to fully recover the costs of the licensure program, the boarding home fee is to be based on costs to administer the program, and the amount of the adult family home license fee is set in statute.

In addition, DSHS is provided with a general direction fee [for all licensure programs] based on the costs of the licensure activities.

Currently in Washington there are approximately:

Summary of Bill (Recommended Amendments): Establishes procedures for license fees for nursing homes, boarding homes, and adult family homes.

License fees for nursing homes and boarding homes will be set by DSHS based on the costs to operate the licensure, inspection and regulatory program. DSHS must subsequently increase the license fees for boarding homes to account for economic trends and conditions.

The initial and annual renewal license fees for adult family homes will be set in the biennial appropriations act for Fiscal Year 2011. The license fees for Fiscal Year 2012 will be set by DSHS based on the costs to operate the licensure, inspection and regulatory program. DSHS must subsequently increase the license fees for adult family homes to account for economic trends and conditions.

EFFECT OF CHANGES MADE BY WAYS & MEANS COMMITTEE (Recommended Amendments): Beginning July 1, 2010, license fees for nursing homes and boarding homes will be set by DSHS based on the costs to operate the licensure, inspection and regulatory program. DSHS must subsequently increase the license fees for boarding homes to account for economic trends and conditions.

The initial and annual renewal license fees for adult family homes will be set in the biennial appropriations act for Fiscal Year 2011. The license fees for Fiscal Year 2012 will be set by DSHS based on the costs to operate the licensure, inspection and regulatory program. DSHS must subsequently increase the license fees for adult family homes to account for economic trends and conditions.

Changes the effective date to July 1, 2010.

Appropriation: None.

Fiscal Note: Available.

[OFM requested ten-year cost projection pursuant to I-960.]

Committee/Commission/Task Force Created: Yes.

Effective Date: The bill takes effect on July 1, 2010.

Staff Summary of Public Testimony: Bill not heard in public hearing.

Persons Testifying: N/A.