SENATE BILL REPORT

SB 6571

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 of January 25, 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: Senators Prentice and Kohl-Welles; by request of Department of Social and Health Services.

Brief History:

Committee Activity: Ways & Means: 1/26/10.

SENATE COMMITTEE ON WAYS & MEANS

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.

Summary of Bill: DSHS must set license fees for nursing homes and boarding homes based on the cost of licensure and subsequently increase the fee to address inflation.

Slightly different procedures are used to set the annual license fee for adult family homes. The adult family home license fee is established in the biennial budget act for fiscal years 2011 and 2012. Thereafter, the fee is set by the department based on the cost to administer the licensure program and subsequently increased for inflation.

For all licenses the inflation factor is defined as the lower of either the percentage change in the implicit price deflator or the consumer price index for the Seattle-Tacoma-Bremerton metropolitan statistical area.

Appropriation: None.

Fiscal Note: Requested on January 20, 2010.

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

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.