Bill Text: CA AB1477 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Human services.

Spectrum: Partisan Bill (Democrat 16-0)

Status: (Engrossed - Dead) 2014-08-29 - From committee: Be re-referred to Com. on B. & F.R. pursuant to Senate Rule 29.10. (Ayes 5. Noes 0.) Re-referred to Com. on B. & F.R. From committee: Return to Senate floor for consideration. (Ayes 9. Noes 3.) (August 29). Ordered to third reading. [AB1477 Detail]

Download: California-2013-AB1477-Amended.html

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BILL NUMBER: AB 1477	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 11, 2014

INTRODUCED BY   Committee on Budget (Skinner (Chair), Bloom, Campos,
Chesbro, Dababneh, Daly, Dickinson, Gordon, Jones-Sawyer, Mullin,
Muratsuchi, Nazarian, Rodriguez, Stone, Ting, and Weber)

                        JANUARY 9, 2014

    An act relating to the Budget Act of 2014.  
An act to amend Sections 1546.1, 1546.2, 1569.481, 1569.482, and
1569.682 of the Health and Safety Code, to amend Sections 11461.3,
11462.04, 11477, and 12300.4 of the Welfare and Institutions Code,
and to amend Section 88 of Chapter 29 of the Statutes of 2014,
relating to human services, and making an appropriation therefor, to
take effect immediately, bill related to the budget. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1477, as amended, Committee on Budget.  Budget Act of
2014.   Human services.  
   (1) Under existing law, the State Department of Social Services
regulates the licensure and operation of various types of facilities,
including community care facilities and residential care facilities
for the elderly.  
   Existing law authorizes the department to appoint a temporary
manager to assume the operation of a community care facility or
residential care facility for the elderly for 60 days, subject to
extension by the department, when specified circumstances exist. To
the extent department funds are used for the costs of the temporary
manager or related expenses, existing law requires the department to
be reimbursed from the revenues accruing to the facility or to the
licensee, and to the extent those revenues are insufficient, requires
that the unreimbursed amount constitute a lien upon the asset of the
facility or the proceeds from the sale of the facility.  
   Existing law also authorizes the department to apply for a court
order appointing a receiver to temporarily operate a community care
facility or a residential care facility for the elderly for no more
than 3 months, subject to extension by the department, when certain
circumstances exist. To the extent that state funds are used to pay
for the salary of the receiver or other related expenses, existing
law requires the state be reimbursed from the revenues accruing to
the facility or to the licensee or the entity related to the license,
and to the extent that those revenues are insufficient, requires the
unreimbursed amount constitute a lien on the assets of the facility
or the proceeds from the sale of the facility.  
   This bill would instead provide that if the revenues are
insufficient to reimburse the department for the costs of the
temporary manager, the salary of the receiver, or related expenses,
the unreimbursed amount shall constitute grounds for a monetary
judgment in civil court and subsequent lien upon the assets of the
facility or the proceeds from the sale thereof. The bill would make
other related changes to these provisions. The bill would provide
that liens placed against the personal and real property of a
licensee for reimbursement of funds relating to the receivership be
given judgment creditor priority.  
   (2) Existing law requires each county to provide cash assistance
and other social services to needy families through the California
Work Opportunity and Responsibility to Kids (CalWORKs) program using
federal Temporary Assistance to Needy Families (TANF) block grant
program, state, and county funds. Existing law specifies the amounts
of cash aid to be paid each month to CalWORKs recipients. Existing
law continuously appropriates moneys from the General Fund to defray
a portion of county costs under the CalWORKs program.  
   Existing law establishes the Aid to Families with Dependent
Children-Foster Care (AFDC-FC) program, under which counties provide
payments to foster care providers on behalf of qualified children in
foster care. Under existing law, a child is eligible for AFDC-FC if
he or she is placed in the approved home of a relative and is
otherwise eligible for federal financial participation in the AFDC-FC
payment, as specified. Existing law, beginning January 1, 2015,
establishes the Approved Relative Caregiver Funding Option Program in
counties choosing to participate, for the purpose of making the
amount paid to relative caregivers for the in-home care of children
placed with them who are ineligible for AFDC-FC payments equal to the
amount paid on behalf of children who are eligible for AFDC-FC
payments.  
   Existing law requires that the related child placed in the home
meet certain requirements in order to be eligible under the Approved
Relative Caregiver Funding Option Program and requires that specified
funding be used for the program.  
   This bill would require, for purposes of this program, that the
care and placement of the child be the responsibility of the county
welfare department or the county probation department. The bill would
also, for purposes of funding the program, delete the requirement
that the funding of the applicable per-child CalWORKs grant be
limited to the federal funds received.  
   (3) Under existing law, foster care providers licensed as group
homes have rates established by classifying each group home program
and applying a standardized schedule of rates. Existing law prohibits
the establishment of a new group home rate or change to an existing
rate under the AFDC-FC program, except for exemptions granted by the
department on a case-by-case basis. Existing law also limits, for the
2012-13 and 2013-14 fiscal years, exceptions for any program with a
rate classification level below 10 to exceptions associated with a
program change.  
   This bill would extend that limitation to the 2014-15 fiscal year.
 
   (4) Existing law requires each applicant or recipient to assign to
the county, as a condition of eligibility for aid paid under
CalWORKs, any rights to support from any other person the applicant
or recipient may have on his or her own behalf, or on behalf of any
other family member for whom the applicant or recipient is applying
for or receiving aid, and to cooperate with the county welfare
department and local child support agency in establishing the
paternity of a child of the applicant or recipient born out of
wedlock with respect to whom aid is claimed, and in establishing,
modifying, or enforcing a support order with respect to a child of
the individual for whom aid is requested or obtained. Existing law
exempts from these provisions an assistance unit that excludes any
adults pursuant to specified provisions of law, including a provision
that makes an individual ineligible for CalWORKs aid if the
individual has been convicted in state or federal court for a felony
drug conviction, as specified, after December 31, 1997.  
   This bill would provide that if the income for an assistance unit
that excludes any adults as described above includes reasonably
anticipated income derived from child support, the first $50 of any
amount of child support received each month shall not be considered
income or resources and shall not be deducted from the amount of aid
to which the assistance unit otherwise would be eligible.  
   (5) Existing law establishes the In-Home Supportive Services
(IHSS) program, administered by the State Department of Social
Services and counties, under which qualified aged, blind, and
disabled persons are provided with services in order to permit them
to remain in their own homes and avoid institutionalization. Existing
law establishes the Medi-Cal program, administered by the State
Department of Health Care Services, under which qualified low-income
individuals receive health care services. The Medi-Cal program is, in
part, governed and funded by federal Medicaid Program provisions.
Existing law authorizes certain Medi-Cal recipients to receive waiver
personal care services, as defined, in order to allow the recipients
to remain in their own homes.  
    Existing law requires that in-home supportive services and waiver
personal care services be performed by providers within a workweek
that does not exceed 66 hours per week, as reduced by a specified net
percentage.  
   This bill would, if certain conditions are met, deem a provider
authorized to work a recipient's county-approved adjusted hours for
the week when a recipient's weekly authorized hours are adjusted and
at the time of adjustment the recipient currently receives all
authorized hours of services from one provider.  
   (6) Existing law authorizes the State Department of Social
Services to implement specified provisions of the Chapter 29 of the
Statutes of 2014 through all-county letters or similar instructions
and requires the department to adopt emergency regulations
implementing these provisions no later than January 1, 2016. 

   This bill would extend that authorization for all-county letters
and similar instructions to additional provisions of Chapter 29 of
the Statutes of 2014 that relate to the CalFresh program.  
   (7) Item 5180-151-0001 of Section 2.00 of the Budget Act of 2014
appropriated $1,435,400,000 to the State Department of Social
Services for local assistance for children and adult services, which
includes, among other things, increased costs associated with cases
of child abuse and neglect and revised federal requirements for child
welfare case reviews, and funds for the Commercially Sexually
Exploited Children Program. Item 5180-153-0001 of Section 2.00 of the
Budget Act of 2014 also appropriated $1,901,000 to the State
Department of Social Services for local assistance for increased
costs associated with revised county collection and reporting
activities for cases of child abuse and neglect and revised federal
requirements for child welfare case reviews.  
   This bill would revise these items by increasing the appropriation
in Item 5180-151-0001 by $1,686,000 for the Commercially Sexually
Exploited Children Program, and by reducing the appropriation in Item
5180-153-0001 by $1,686,000.  
   (8) This bill would provide that the continuous appropriation
applicable to CalWORKs is not made for purposes of implementing the
bill.  
   (9) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
 
   This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2014. 
   Vote: majority. Appropriation:  no   yes
 . Fiscal committee:  no   yes  .
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 1546.1 of the   Health
and Safety Code   , as added by Section 11 of Chapter 29 of
the Statutes of 2014, is amended to read: 
   1546.1.  (a) (1) It is the intent of the Legislature in enacting
this section to authorize the department to take quick, effective
action to protect the health and safety of clients of community care
facilities and to minimize the effects of transfer trauma that
accompany the abrupt transfer of clients by appointing a temporary
manager to assume the operation of a facility that is found to be in
a condition in which continued operation by the licensee or his or
her representative presents a substantial probability of imminent
danger of serious physical harm or death to the clients.
   (2) A temporary manager appointed pursuant to this section shall
assume the operation of the facility in order to bring it into
compliance with the law, facilitate a transfer of ownership to a new
licensee, or ensure the orderly transfer of clients should the
facility be required to close. Upon a final decision and order of
revocation of the license or a forfeiture by operation of law, the
department shall immediately issue a provisional license to the
appointed temporary manager. Notwithstanding the applicable sections
of this code governing the revocation of a provisional license, the
provisional license issued to a temporary manager shall automatically
expire upon the termination of the temporary manager. The temporary
manager shall possess the provisional license solely for purposes of
carrying out the responsibilities authorized by this section and the
duties set forth in the written agreement between the department and
the temporary manager. The temporary manager shall have no right to
appeal the expiration of the provisional license.
   (b) For purposes of this section, "temporary manager" means the
person, corporation, or other entity appointed temporarily by the
department as a substitute facility licensee or administrator with
authority to hire, terminate, reassign staff, obligate facility
funds, alter facility procedures, and manage the facility to correct
deficiencies identified in the facility's operation. The temporary
manager shall have the final authority to direct the care and
supervision activities of any person associated with the facility,
including superseding the authority of the licensee and the
administrator.
   (c) The director may appoint a temporary manager when it is
determined that it is necessary to temporarily suspend any license of
a community care facility pursuant to Section 1550.5 and any of the
following circumstances exist:
   (1) The immediate relocation of the clients is not feasible based
on transfer trauma, lack of alternate placements, or other emergency
considerations for the health and safety of the clients.
   (2) The licensee is unwilling or unable to comply with the
requirements of Section 1556 for the safe and orderly relocation of
clients when ordered to do so by the department.
   (d) (1) Upon appointment, the temporary manager shall complete its
application for a license to operate a community care facility and
take all necessary steps and make best efforts to eliminate any
substantial threat to the health and safety to clients or complete
the transfer of clients to alternative placements pursuant to Section
1556. For purposes of a provisional license issued to a temporary
manager, the licensee's existing fire safety clearance shall serve as
the fire safety clearance for the temporary manager's provisional
license.
   (2) A person shall not impede the operation of a temporary
manager. The temporary manager's access to, or possession of, the
property shall not be interfered with during the term of the
temporary manager appointment. There shall be an automatic stay for a
60-day period subsequent to the appointment of a temporary manager
of any action that would interfere with the functioning of the
facility, including, but not limited to, termination of utility
services, attachments or set-offs of client trust funds, and
repossession of equipment in the facility.
   (e) (1) The appointment of a temporary manager shall be
immediately effective and shall continue for a period not to exceed
60 days unless otherwise extended in accordance with paragraph (2) of
subdivision (h) at the discretion of the department or otherwise
terminated earlier by any of the following events:
   (A) The temporary manager notifies the department, and the
department verifies, that the facility meets state and, if
applicable, federal standards for operation, and will be able to
continue to maintain compliance with those standards after the
termination of the appointment of the temporary manager.
   (B) The department approves a new temporary manager.
   (C) A new operator is licensed.
   (D) The department closes the facility.
   (E) A hearing or court order ends the temporary manager
appointment, including the appointment of a receiver under Section
1546.2.
   (F) The appointment is terminated by the department or the
temporary manager.
   (2) The appointment of a temporary manager shall authorize the
temporary manager to act pursuant to this section. The appointment
shall be made pursuant to a written agreement between the temporary
manager and the department that outlines the circumstances under
which the temporary manager may expend funds. The department shall
provide the licensee and administrator with a copy of the accusation
to appoint a temporary manager at the time of appointment. The
accusation shall notify the licensee of the licensee's right to
petition the Office of Administrative Hearings for a hearing to
contest the appointment of the temporary manager as described in
subdivision (f) and shall provide the licensee with a form and
appropriate information for the licensee's use in requesting a
hearing.
   (3) The director may rescind the appointment of a temporary
manager and appoint a new temporary manager at any time that the
director determines the temporary manager is not adhering to the
conditions of the appointment.
   (f) (1) The licensee of a community care facility may contest the
appointment of the temporary manager by filing a petition for an
order to terminate the appointment of the temporary manager with the
Office of Administrative Hearings within 15 days from the date of
mailing of the accusation to appoint a temporary manager under
subdivision (e). On the same day as the petition is filed with the
Office of Administrative Hearings, the licensee shall serve a copy of
the petition to the office of the director.
   (2) Upon receipt of a petition under paragraph (1), the Office of
Administrative Hearings shall set a hearing date and time within 10
business days of the receipt of the petition. The office shall
promptly notify the licensee and the department of the date, time,
and place of the hearing. The office shall assign the case to an
administrative law judge. At the hearing, relevant evidence may be
presented pursuant to Section 11513 of the Government Code. The
administrative law judge shall issue a written decision on the
petition within 10 business days of the conclusion of the hearing.
The 10-day time period for holding the hearing and for rendering a
decision may be extended by the written agreement of the parties.
   (3) The administrative law judge shall uphold the appointment of
the temporary manager if the department proves, by a preponderance of
the evidence, that the circumstances specified in subdivision (c)
applied to the facility at the time of the appointment. The
administrative law judge shall order the termination of the temporary
manager if the burden of proof is not satisfied.
   (4) The decision of the administrative law judge is subject to
judicial review as provided in Section 1094.5 of the Code of Civil
Procedure by the superior court of the county where the facility is
located. This review may be requested by the licensee of the facility
or the department by filing a petition seeking relief from the
order. The petition may also request the issuance of temporary
injunctive relief pending the decision on the petition. The superior
court shall hold a hearing within 10 business days of the filing of
the petition and shall issue a decision on the petition within 10
days of the hearing. The department may be represented by legal
counsel within the department for purposes of court proceedings
authorized under this section.
   (g) If the licensee of the community care facility does not
protest the appointment or does not prevail at either the
administrative hearing under paragraph (2) of subdivision (f) or the
superior court hearing under paragraph (4) of subdivision (f), the
temporary manager shall continue in accordance with subdivision (e).
   (h) (1) If the licensee of the community care facility petitions
the Office of Administrative Hearings pursuant to subdivision (f),
the appointment of the temporary manager by the director pursuant to
this section shall continue until it is terminated by the
administrative law judge or by the superior court, or it shall
continue until the conditions of subdivision (e) are satisfied,
whichever is earlier.
   (2) At any time during the appointment of the temporary manager,
the director may request an extension of the appointment by filing a
petition for hearing with the Office of Administrative Hearings and
serving a copy of the petition on the licensee. The office shall
proceed as specified in paragraph (2) of subdivision (f). The
administrative law judge may extend the appointment of the temporary
manager an additional 60 days upon a showing by the department that
the conditions specified in subdivision (c) continue to exist.
   (3) The licensee or the department may request review of the
administrative law judge's decision on the extension as provided in
paragraph (4) of subdivision (f).
   (i) The temporary manager appointed pursuant to this section shall
meet the following qualifications:
   (1) Be qualified to oversee correction of deficiencies on the
basis of experience and education.
   (2) Not be the subject of any pending actions by the department or
any other state agency nor have ever been excluded from a department
licensed facility or had a license or certification suspended or
revoked by an administrative action by the department or any other
state agency.
   (3) Have no financial ownership interest in the facility and have
no member of his or her immediate family who has a financial
ownership interest in the facility.
   (4) Not currently serve, or within the past two years have served,
as a member of the staff of the facility.
   (j) Payment of the costs of the temporary manager shall comply
with the following requirements:
   (1) Upon agreement with the licensee, the costs of the temporary
manager and any other expenses in connection with the temporary
management shall be paid directly by the facility while the temporary
manager is assigned to that facility. Failure of the licensee to
agree to the payment of those costs may result in the payment of the
costs by the department and subsequent required reimbursement of the
department by the licensee pursuant to this section.
   (2) Direct costs of the temporary manager shall be equivalent to
the sum of the following:
   (A) The prevailing fee paid by licensees for positions of the same
type in the facility's geographic area.
   (B) Additional costs that reasonably would have been incurred by
the licensee if the licensee and the temporary manager had been in an
employment relationship.
   (C) Any other reasonable costs incurred by the temporary manager
in furnishing services pursuant to this section.
   (3) May exceed the amount specified in paragraph (2) if the
department is otherwise unable to attract a qualified temporary
manager.
   (k) (1) The responsibilities of the temporary manager may include,
but are not limited to, the following:
   (A) Paying wages to staff. The temporary manager shall have the
full power to hire, direct, manage, and discharge employees of the
facility, subject to any contractual rights they may have. The
temporary manager shall pay employees at the same rate of
compensation, including benefits, that the employees would have
received from the licensee or wages necessary to provide adequate
staff for the protection of clients and compliance with the law.
   (B) Preserving client funds. The temporary manager shall be
entitled to, and shall take possession of, all property or assets of
clients that are in the possession of the licensee or administrator
of the facility. The temporary manager shall preserve all property,
assets, and records of clients of which the temporary manager takes
possession.
   (C) Contracting for outside services as may be needed for the
operation of the facility. Any contract for outside services in
excess of five thousand dollars ($5,000) shall be approved by the
director.
   (D) Paying commercial creditors of the facility to the extent
required to operate the facility. The temporary manager shall honor
all leases, mortgages, and secured transactions affecting the
building in which the facility is located and all goods and fixtures
in the building, but only to the extent of payments that, in the case
of a rental agreement, are for the use of the property during the
period of the temporary management, or that, in the case of a
purchase agreement, come due during the period of the temporary
management.
   (E) Doing all things necessary and proper to maintain and operate
the facility in accordance with sound fiscal policies. The temporary
manager shall take action as is reasonably necessary to protect or
conserve the assets or property of which the temporary manager takes
possession and may use those assets or property only in the
performance of the powers and duties set out in this section.
   (2) Expenditures by the temporary manager in excess of five
thousand dollars ($5,000) shall be approved by the director. Total
encumbrances and expenditures by the temporary manager for the
duration of the temporary management shall not exceed the sum of
forty-nine thousand nine hundred ninety-nine dollars ($49,999) unless
approved by the director in writing.
   (3) The temporary manager shall make no capital improvements to
the facility in excess of five thousand dollars ($5,000) without the
approval of the director.
   (l) (1) To the extent department funds are advanced for the costs
of the temporary manager or for other expenses in connection with the
temporary management, the department shall be reimbursed from the
revenues accruing to the facility or to the licensee or an entity
related to the licensee. Any reimbursement received by the department
shall be redeposited in the account from which the department funds
were advanced. If the revenues are insufficient to reimburse the
department, the unreimbursed amount shall constitute  a
  grounds for a monetary judgment in civil court and a
subsequent  lien upon the assets of the facility or the proceeds
from the sale thereof.  The   Pursuant to
Chapter 2 (commencing with Section 697.510) of Division 2 of Title 9
of Part 2 of the Code of Civil Procedure, a  lien against the
personal assets of the facility or an entity related to the licensee
 based on the monetary judgment obtained  shall be filed
with the Secretary of State on the forms required for a notice of
judgment lien. A lien against the real property of the facility or an
entity related to the licensee  based on the monetary judgment
obtained  shall be recorded with the county recorder of the
county where the facility of the licensee is located or where the
real property of the entity related to the licensee is located. The
lien shall not attach to the interests of a lessor, unless the lessor
is operating the facility. The authority to place a lien against the
personal and real property of the licensee for the reimbursement of
any state funds expended pursuant to this section shall be given
judgment creditor priority.
   (2) For purposes of this section, "entity related to the licensee"
means an entity, other than a natural person, of which the licensee
is a subsidiary or an entity in which a person who was obligated to
disclose information under Section 1520 possesses an interest that
would also require disclosure pursuant to Section 1520.
   (m) Appointment of a temporary manager under this section does not
relieve the licensee of any responsibility for the care and
supervision of clients under this chapter. The licensee, even if the
license is deemed surrendered or the facility abandoned, shall be
required to reimburse the department for all costs associated with
operation of the facility during the period the temporary manager is
in place that are not accounted for by using facility revenues or for
the relocation of clients handled by the department if the licensee
fails to comply with the relocation requirements of Section 1556 when
required by the department to do so. If the licensee fails to
reimburse the department under this section, then the department,
along with using its own remedies available under this chapter, may
request that the Attorney General's office, the city attorney's
office, or the local district attorney's office seek any available
criminal, civil, or administrative remedy, including, but not limited
to, injunctive relief, restitution, and damages in the same manner
as provided for in Chapter 5 (commencing with Section 17200) of Part
2 of Division 7 of the Business and Professions Code.
   (n) The department may use funds from the emergency client
contingency account pursuant to Section 1546 when needed to
supplement the operation of the facility or the transfer of clients
under the control of the temporary manager appointed under this
section if facility revenues are unavailable or exhausted when
needed. Pursuant to subdivision (l), the licensee shall be required
to reimburse the department for any funds used from the emergency
client contingency account during the period of control of the
temporary manager and any incurred costs of collection.
   (o) This section does not apply to a residential facility that
serves six or fewer persons and is also the principal residence of
the licensee.
   (p) Notwithstanding any other provision of law, the temporary
manager shall be liable only for damages resulting from gross
negligence in the operation of the facility or intentional tortious
acts.
   (q) All governmental immunities otherwise applicable to the state
shall also apply to the state in the use of a temporary manager in
the operation of a facility pursuant to this section.
   (r) A licensee shall not be liable for any occurrences during the
temporary management under this section except to the extent that the
occurrences are the result of the licensee's conduct.
   (s) The department may adopt regulations for the administration of
this section.
   SEC. 2.    Section 1546.2 of the   Health
and Safety Code   , as added by Section 12 of Chapter 29 of
the Statutes of 2014, is amended to read: 
   1546.2.  (a) It is the intent of the Legislature in enacting this
section to authorize the department to take quick, effective action
to protect the health and safety of residents of community care
facilities and to minimize the effects of transfer trauma that
accompany the abrupt transfer of clients through a system whereby the
department may apply for a court order appointing a receiver to
temporarily operate a community care facility. The receivership is
not intended to punish a licensee or to replace attempts to secure
cooperative action to protect the clients' health and safety. The
receivership is intended to protect the clients in the absence of
other reasonably available alternatives. The receiver shall assume
the operation of the facility in order to bring it into compliance
with law, facilitate a transfer of ownership to a new licensee, or
ensure the orderly transfer of clients should the facility be
required to close.
   (b) (1) Whenever circumstances exist indicating that continued
management of a community care facility by the current licensee would
present a substantial probability or imminent danger of serious
physical harm or death to the clients, or the facility is closing or
intends to terminate operation as a community care facility and
adequate arrangements for relocation of clients have not been made at
least 30 days prior to the closing or termination, the director may
petition the superior court for the county in which the community
care facility is located for an order appointing a receiver to
temporarily operate the community care facility in accordance with
this section.
   (2) The petition shall allege the facts upon which the action is
based and shall be supported by an affidavit of the director. A copy
of the petition and affidavits, together with an order to appear and
show cause why temporary authority to operate the community care
facility should not be vested in a receiver pursuant to this section,
shall be delivered to the licensee, administrator, or a responsible
person at the facility to the attention of the licensee and
administrator. The order shall specify a hearing date, which shall be
not less than 10, nor more than 15, days following delivery of the
petition and order upon the licensee, except that the court may
shorten or lengthen the time upon a showing of just cause.
   (c) (1) If the director files a petition pursuant to subdivision
(b) for appointment of a receiver to operate a community care
facility, in accordance with Section 564 of the Code of Civil
Procedure, the director may also petition the court, in accordance
with Section 527 of the Code of Civil Procedure, for an order
appointing a temporary receiver. A temporary receiver appointed by
the court pursuant to this subdivision shall serve until the court
has made a final determination on the petition for appointment of a
receiver filed pursuant to subdivision (b). A receiver appointed
pursuant to this subdivision shall have the same powers and duties as
a receiver would have if appointed pursuant to subdivision (b). Upon
the director filing a petition for a receiver, the receiver shall
complete its application for a provisional license to operate a
community care facility. For purposes of a provisional license issued
to a receiver, the licensee's existing fire safety clearance shall
serve as the fire safety clearance for the receiver's provisional
license.
   (2) At the time of the hearing, the department shall advise the
licensee of the name of the proposed receiver. The receiver shall be
a certified community care facility administrator or other
responsible person or entity, as determined by the court, from a list
of qualified receivers established by the department, and, if need
be, with input from providers of residential care and consumer
representatives. Persons appearing on the list shall have experience
in the delivery of care services to clients of community care
facilities, and, if feasible, shall have experience with the
operation of a community care facility, shall not be the subject of
any pending actions by the department or any other state agency, and
shall not have ever been excluded from a department licensed facility
nor have had a license or certification suspended or revoked by an
administrative action by the department or any other state agency.
The receivers shall have sufficient background and experience in
management and finances to ensure compliance with orders issued by
the court. The owner, licensee, or administrator shall not be
appointed as the receiver unless authorized by the court.
   (3) If at the conclusion of the hearing, which may include oral
testimony and cross-examination at the option of any party, the court
determines that adequate grounds exist for the appointment of a
receiver and that there is no other reasonably available remedy to
protect the clients, the court may issue an order appointing a
receiver to temporarily operate the community care facility and
enjoining the licensee from interfering with the receiver in the
conduct of his or her duties. In these proceedings, the court shall
make written findings of fact and conclusions of law and shall
require an appropriate bond to be filed by the receiver and paid for
by the licensee. The bond shall be in an amount necessary to protect
the licensee in the event of any failure on the part of the receiver
to act in a reasonable manner. The bond requirement may be waived by
the licensee.
   (4) The court may permit the licensee to participate in the
continued operation of the facility during the pendency of any
receivership ordered pursuant to this section and shall issue an
order detailing the nature and scope of participation.
   (5) Failure of the licensee to appear at the hearing on the
petition shall constitute an admission of all factual allegations
contained in the petition for purposes of these proceedings only.
   (6) The licensee shall receive notice and a copy of the
application each time the receiver applies to the court or the
department for instructions regarding his or her duties under this
section, when an accounting pursuant to subdivision (i) is submitted,
and when any other report otherwise required under this section is
submitted. The licensee shall have an opportunity to present
objections or otherwise participate in those proceedings.
   (d) A person shall not impede the operation of a receivership
created under this section. The receiver's access to, or possession
of, the property shall not be interfered with during the term of the
receivership. There shall be an automatic stay for a 60-day period
subsequent to the appointment of a receiver of any action that would
interfere with the functioning of the facility, including, but not
limited to, cancellation of insurance policies executed by the
licensees, termination of utility services, attachments or setoffs of
client trust funds and working capital accounts, and repossession of
equipment in the facility.
   (e) When a receiver is appointed, the licensee may, at the
discretion of the court, be divested of possession and control of the
facility in favor of the receiver. If the court divests the licensee
of possession and control of the facility in favor of the receiver,
the department shall immediately issue a provisional license to the
receiver. Notwithstanding the applicable sections of this code
governing the revocation of a provisional license, the provisional
license issued to a receiver shall automatically expire upon the
termination of the receivership. The receiver shall possess the
provisional license solely for purposes of carrying out the
responsibilities authorized by
       this section and the duties ordered by the court. The receiver
shall have no right to appeal the expiration of the provisional
license.
   (f) A receiver appointed pursuant to this section:
   (1) May exercise those powers and shall perform those duties
ordered by the court, in addition to other duties provided by
statute.
   (2) Shall operate the facility in a manner that ensures the safety
and adequate care for the clients.
   (3) Shall have the same rights to possession of the building in
which the facility is located, and of all goods and fixtures in the
building at the time the petition for receivership is filed, as the
licensee and administrator would have had if the receiver had not
been appointed.
   (4) May use the funds, building, fixtures, furnishings, and any
accompanying consumable goods in the provision of care and services
to clients and to any other persons receiving services from the
facility at the time the petition for receivership was filed.
   (5) Shall take title to all revenue coming to the facility in the
name of the receiver who shall use it for the following purposes in
descending order of priority:
   (A) To pay wages to staff. The receiver shall have full power to
hire, direct, manage, and discharge employees of the facility,
subject to any contractual rights they may have. The receiver shall
pay employees at the same rate of compensation, including benefits,
that the employees would have received from the licensee or wages
necessary to provide adequate staff for the protection of the clients
and compliance with the law.
   (B) To preserve client funds. The receiver shall be entitled to,
and shall take, possession of all property or assets of clients that
are in the possession of the licensee or operator of the facility.
The receiver shall preserve all property, assets, and records of
clients of which the receiver takes possession.
   (C) To contract for outside services as may be needed for the
operation of the community care facility. Any contract for outside
services in excess of five thousand dollars ($5,000) shall be
approved by the court.
   (D) To pay commercial creditors of the facility to the extent
required to operate the facility. Except as provided in subdivision
(h), the receiver shall honor all leases, mortgages, and secured
transactions affecting the building in which the facility is located
and all goods and fixtures in the building of which the receiver has
taken possession, but only to the extent of payments which, in the
case of a rental agreement, are for the use of the property during
the period of receivership, or which, in the case of a purchase
agreement, come due during the period of receivership.
   (E) To receive a salary, as approved by the court.
   (F) To do all things necessary and proper to maintain and operate
the facility in accordance with sound fiscal policies. The receiver
shall take action as is reasonably necessary to protect or conserve
the assets or property of which the receiver takes possession and may
use those assets or property only in the performance of the powers
and duties set out in this section and by order of the court.
   (G) To ask the court for direction in the treatment of debts
incurred prior to the appointment, if the licensee's debts appear
extraordinary, of questionable validity, or unrelated to the normal
and expected maintenance and operation of the facility, or if payment
of the debts will interfere with the purposes of receivership.
   (g) (1) A person who is served with notice of an order of the
court appointing a receiver and of the receiver's name and address
shall be liable to pay the receiver, rather than the licensee, for
any goods or services provided by the community care facility after
the date of the order. The receiver shall give a receipt for each
payment and shall keep a copy of each receipt on file. The receiver
shall deposit amounts received in a special account and shall use
this account for all disbursements. Payment to the receiver pursuant
to this subdivision shall discharge the obligation to the extent of
the payment and shall not thereafter be the basis of a claim by the
licensee or any other person. A client shall not be evicted nor may
any contract or rights be forfeited or impaired, nor may any
forfeiture be effected or liability increased, by reason of an
omission to pay the licensee, operator, or other person a sum paid to
the receiver pursuant to this subdivision.
   (2) This section shall not be construed to suspend, during the
temporary management by the receiver, any obligation of the licensee
for payment of local, state, or federal taxes. A licensee shall not
be held liable for acts or omissions of the receiver during the term
of the temporary management.
   (3) Upon petition of the receiver, the court may order immediate
payment to the receiver for past services that have been rendered and
billed, and the court may also order a sum not to exceed one month's
advance payment to the receiver of any sums that may become payable
under the Medi-Cal program.
   (h) (1) A receiver shall not be required to honor a lease,
mortgage, or secured transaction entered into by the licensee of the
facility and another party if the court finds that the agreement
between the parties was entered into for a collusive, fraudulent
purpose or that the agreement is unrelated to the operation of the
facility.
   (2) A lease, mortgage, or secured transaction or an agreement
unrelated to the operation of the facility that the receiver is
permitted to dishonor pursuant to this subdivision shall only be
subject to nonpayment by the receiver for the duration of the
receivership, and the dishonoring of the lease, mortgage, security
interest, or other agreement, to this extent, by the receiver shall
not relieve the owner or operator of the facility from any liability
for the full amount due under the lease, mortgage, security interest,
or other agreement.
   (3) If the receiver is in possession of real estate or goods
subject to a lease, mortgage, or security interest that the receiver
is permitted to avoid pursuant to paragraph (1), and if the real
estate or goods are necessary for the continued operation of the
facility, the receiver may apply to the court to set a reasonable
rent, price, or rate of interest to be paid by the receiver during
the duration of the receivership. The court shall hold a hearing on
this application within 15 days. The receiver shall send notice of
the application to any known owner of the property involved at least
10 days prior to the hearing.
   (4) Payment by the receiver of the amount determined by the court
to be reasonable is a defense to any action against the receiver for
payment or possession of the goods or real estate, subject to the
lease or mortgage, which is brought by any person who received the
notice required by this subdivision. However, payment by the receiver
of the amount determined by the court to be reasonable shall not
relieve the owner or operator of the facility from any liability for
the difference between the amount paid by the receiver and the amount
due under the original lease, mortgage, or security interest.
   (i) A monthly accounting shall be made by the receiver to the
department of all moneys received and expended by the receiver on or
before the 15th day of the following month or as ordered by the
court, and the remainder of income over expenses for that month shall
be returned to the licensee. A copy of the accounting shall be
provided to the licensee. The licensee or owner of the community care
facility may petition the court for a determination as to the
reasonableness of any expenditure made pursuant to paragraph (5) of
subdivision (f).
   (j) (1) The receiver shall be appointed for an initial period of
not more than three months. The initial three-month period may be
extended for additional periods not exceeding three months, as
determined by the court pursuant to this section. At the end of one
month, the receiver shall report to the court on its assessment of
the probability that the community care facility will meet state
standards for operation by the end of the initial three-month period
and will continue to maintain compliance with those standards after
termination of the receiver's management. If it appears that the
facility cannot be brought into compliance with state standards
within the initial three-month period, the court shall take
appropriate action as follows:
   (A) Extend the receiver's management for an additional three
months if there is a substantial likelihood that the facility will
meet state standards within that period and will maintain compliance
with the standards after termination of the receiver's management.
The receiver shall report to the court in writing upon the facility's
progress at the end of six weeks of any extension ordered pursuant
to this paragraph.
   (B) Order the director to revoke or temporarily suspend, or both,
the license pursuant to Article 5 (commencing with Section 1550) and
extend the receiver's management for the period necessary to transfer
clients in accordance with the transfer plan, but for not more than
three months from the date of initial appointment of a receiver, or
14 days, whichever is greater. An extension of an additional three
months may be granted if deemed necessary by the court.
   (2) If it appears at the end of six weeks of an extension ordered
pursuant to subparagraph (A) of paragraph (1) that the facility
cannot be brought into compliance with state standards for operation
or that it will not maintain compliance with those standards after
the receiver's management is terminated, the court shall take
appropriate action as specified in subparagraph (B) of paragraph (1).

   (3) In evaluating the probability that a community care facility
will maintain compliance with state standards of operation after the
termination of receiver management ordered by the court, the court
shall consider at least the following factors:
   (A) The duration, frequency, and severity of past violations in
the facility.
   (B) History of compliance in other care facilities operated by the
proposed licensee.
   (C) Efforts by the licensee to prevent and correct past
violations.
   (D) The financial ability of the licensee to operate in compliance
with state standards.
   (E) The recommendations and reports of the receiver.
   (4) Management of a community care facility operated by a receiver
pursuant to this section shall not be returned to the licensee, to
any person related to the licensee, or to any person who served as a
member of the facility's staff or who was employed by the licensee
prior to the appointment of the receiver unless both of the following
conditions are met:
   (A) The department believes that it would be in the best interests
of the clients of the facility, requests that the court return the
operation of the facility to the former licensee, and provides clear
and convincing evidence to the court that it is in the best interests
of the facility's clients to take that action.
   (B) The court finds that the licensee has fully cooperated with
the department in the appointment and ongoing activities of a
receiver appointed pursuant to this section, and, if applicable, any
temporary manager appointed pursuant to Section 1546.1.
   (5) The owner of the facility may at any time sell, lease, or
close the facility, subject to the following provisions:
   (A) If the owner closes the facility, or the sale or lease results
in the closure of the facility, the court shall determine if a
transfer plan is necessary. If the court so determines, the court
shall adopt and implement a transfer plan consistent with the
provisions of Section 1556.
   (B) If the licensee proposes to sell or lease the facility and the
facility will continue to operate as a community care facility, the
court and the department shall reevaluate any proposed transfer plan.
If the court and the department determine that the sale or lease of
the facility will result in compliance with licensing standards, the
transfer plan and the receivership shall, subject to those conditions
that the court may impose and enforce, be terminated upon the
effective date of the sale or lease.
   (k) (1) The salary of the receiver shall be set by the court
commensurate with community care facility industry standards, giving
due consideration to the difficulty of the duties undertaken, and
shall be paid from the revenue coming to the facility. If the revenue
is insufficient to pay the salary in addition to other expenses of
operating the facility, the receiver's salary shall be paid from the
emergency client contingency account as provided in Section 1546.
State advances of funds in excess of five thousand dollars ($5,000)
shall be approved by the director. Total advances for encumbrances
and expenditures shall not exceed the sum of forty-nine thousand nine
hundred ninety-nine dollars ($49,999) unless approved by the
director in writing.
   (2) To the extent state funds are advanced for the salary of the
receiver or for other expenses in connection with the receivership,
as limited by subdivision (g), the state shall be reimbursed from the
revenues accruing to the facility or to the licensee or an entity
related to the licensee. Any reimbursement received by the state
shall be redeposited in the account from which the state funds were
advanced. If the revenues are insufficient to reimburse the state,
the unreimbursed amount shall constitute  a  
grounds for a monetary judgment in civil court and a subsequent 
lien upon the assets of the facility or the proceeds from the sale
thereof.  The   Pursuant to Chapter 2
(commencing with Section 697.510) of Division 2 of Title 9 of Part 2
of the Code of Civil Procedure, a  lien against the personal
assets of the facility or an entity related to the licensee 
based on the monetary judgment obtained  shall be filed with the
Secretary of State on the forms required for a notice of judgment
lien. A lien against the real property of the facility or an entity
related to the licensee  based on the monetary judgment obtained
 shall be recorded with the county recorder of the county where
the facility of the licensee is located or where the real property of
the entity related to the licensee is located. The lien shall not
attach to the interests of a lessor, unless the lessor is operating
the facility.  The authority to place a lien against the personal
and real property of the licensee for the reimbursement of any state
funds expended pursuant to this section shall be given judgment
creditor priority. 
   (3) For purposes of this subdivision, "entity related to the
licensee" means an entity, other than a natural person, of which the
licensee is a subsidiary or an entity in which any person who was
obligated to disclose information under Section 1520 possesses an
interest that would also require disclosure pursuant to Section 1520.

   (l) (1) This section does not impair the right of the owner of a
community care facility to dispose of his or her property interests
in the facility, but any facility operated by a receiver pursuant to
this section shall remain subject to that administration until
terminated by the court. The termination shall be promptly
effectuated, provided that the interests of the clients have been
safeguarded as determined by the court.
   (2) This section does not limit the power of the court to appoint
a receiver under any other applicable provision of law or to order
any other remedy available under law.
   (m) (1) Notwithstanding any other provision of law, the receiver
shall be liable only for damages resulting from gross negligence in
the operation of the facility or intentional tortious acts.
   (2) All governmental immunities otherwise applicable to the State
of California shall also apply in the use of a receiver in the
operation if a facility pursuant to this section.
   (3) The licensee shall not be liable for any occurrences during
the receivership except to the extent that the occurrences are the
result of the licensee's conduct.
   (n) The department may adopt regulations for the administration of
this section. This section does not impair the authority of the
department to temporarily suspend licenses under Section 1550.5 or to
reach a voluntary agreement with the licensee for alternate
management of a community care facility including the use of a
temporary manager under Section 1546.1. This section does not
authorize the department to interfere in a labor dispute.
   (o) This section does not apply to a residential facility that
serves six or fewer persons and is also the principal residence of
the licensee.
   (p) This section does not apply to a licensee that has obtained a
certificate of authority to offer continuing care contracts, as
defined in paragraph (8) of subdivision (c) of Section 1771.
   SEC. 3.    Section 1569.481 of the   Health
and Safety Code   , as added by Section 24 of Chapter 29 of
the Statutes of 2014, is amended to read: 
   1569.481.  (a) (1) It is the intent of the Legislature in enacting
this section to authorize the department to take quick, effective
action to protect the health and safety of residents of residential
care facilities for the elderly and to minimize the effects of
transfer trauma that accompany the abrupt transfer of residents by
appointing a temporary manager to assume the operation of a facility
that is found to be in a condition in which continued operation by
the licensee or his or her representative presents a substantial
probability of imminent danger of serious physical harm or death to
the residents.
   (2) A temporary manager appointed pursuant to this section shall
assume the operation of the facility in order to bring it into
compliance with the law, facilitate a transfer of ownership to a new
licensee, or ensure the orderly transfer of residents should the
facility be required to close. Upon a final decision and order of
revocation of the license, issuance of a temporary suspension, or a
forfeiture by operation of law, the department shall immediately
issue a provisional license to the appointed temporary manager.
Notwithstanding the applicable sections of this code governing the
revocation of a provisional license, the provisional license issued
to a temporary manager shall automatically expire upon the
termination of the temporary manager. The temporary manager shall
possess the provisional license solely for purposes of carrying out
the responsibilities authorized by this section and the duties set
forth in the written agreement between the department and the
temporary manager. The temporary manager shall have no right to
appeal the expiration of the provisional license.
   (b) For purposes of this section, "temporary manager" means the
person, corporation, or other entity appointed temporarily by the
department as a substitute facility licensee or administrator with
authority to hire, terminate, reassign staff, obligate facility
funds, alter facility procedures, and manage the facility to correct
deficiencies identified in the facility's operation. The temporary
manager shall have the final authority to direct the care and
supervision activities of any person associated with the facility,
including superseding the authority of the licensee and the
administrator.
   (c) The director, in order to protect the residents of the
facility from physical or mental abuse, abandonment, or any other
substantial threat to health or safety, may appoint a temporary
manager when any of the following circumstances exist:
   (1) The director determines that it is necessary to temporarily
suspend the license of a residential care facility for the elderly
pursuant to Section 1569.50 and the immediate relocation of the
residents is not feasible based on transfer trauma, lack of available
alternative placements, or other emergency considerations for the
health and safety of the residents.
   (2) The licensee is unwilling or unable to comply with the
requirements of Section 1569.525 or the requirements of Section
1569.682 regarding the safe and orderly relocation of residents when
ordered to do so by the department or when otherwise required by law.

   (3) The licensee has opted to secure a temporary manager pursuant
to Section 1569.525.
   (d) (1) Upon appointment, the temporary manager shall complete its
application for a license to operate a residential care facility for
the elderly and take all necessary steps and make best efforts to
eliminate any substantial threat to the health and safety to
residents or complete the transfer of residents to alternative
placements pursuant to Section 1569.525 or 1569.682. For purposes of
a provisional license issued to a temporary manager, the licensee's
existing fire safety clearance shall serve as the fire safety
clearance for the temporary manager's provisional license.
   (2) A person shall not impede the operation of a temporary
manager. The temporary manager's access to, or possession of, the
property shall not be interfered with during the term of the
temporary manager appointment. There shall be an automatic stay for a
60-day period subsequent to the appointment of a temporary manager
of any action that would interfere with the functioning of the
facility, including, but not limited to, termination of utility
services, attachments, or setoffs of resident trust funds, and
repossession of equipment in the facility.
   (e) (1) The appointment of a temporary manager shall be
immediately effective and shall continue for a period not to exceed
60 days unless otherwise extended in accordance with paragraph (2) of
subdivision (h) at the discretion of the department or as permitted
by paragraph (2) of subdivision (d) of Section 1569.525, or unless
otherwise terminated earlier by any of the following events:
   (A) The temporary manager notifies the department, and the
department verifies, that the facility meets state and, if
applicable, federal standards for operation, and will be able to
continue to maintain compliance with those standards after the
termination of the appointment of the temporary manager.
   (B) The department approves a new temporary manager.
   (C) A new operator is licensed.
   (D) The department closes the facility.
   (E) A hearing or court order ends the temporary manager
appointment, including the appointment of a receiver under Section
1569.482.
   (F) The appointment is terminated by the department or the
temporary manager.
   (2) The appointment of a temporary manager shall authorize the
temporary manager to act pursuant to this section. The appointment
shall be made pursuant to a written agreement between the temporary
manager and the department that outlines the circumstances under
which the temporary manager may expend funds. The department shall
provide the licensee and administrator with a copy of the accusation
to appoint a temporary manager at the time of appointment. The
accusation shall notify the licensee of the licensee's right to
petition the Office of Administrative Hearings for a hearing to
contest the appointment of the temporary manager as described in
subdivision (f) and shall provide the licensee with a form and
appropriate information for the licensee's use in requesting a
hearing.
   (3) The director may rescind the appointment of a temporary
manager and appoint a new temporary manager at any time that the
director determines the temporary manager is not adhering to the
conditions of the appointment.
   (f) (1) The licensee of a residential care facility for the
elderly may contest the appointment of the temporary manager by
filing a petition for an order to terminate the appointment of the
temporary manager with the Office of Administrative Hearings within
15 days from the date of mailing of the accusation to appoint a
temporary manager under subdivision (e). On the same day as the
petition is filed with the Office of Administrative Hearings, the
licensee shall serve a copy of the petition to the office of the
director.
   (2) Upon receipt of a petition under paragraph (1), the Office of
Administrative Hearings shall set a hearing date and time within 10
business days of the receipt of the petition. The office shall
promptly notify the licensee and the department of the date, time,
and place of the hearing. The office shall assign the case to an
administrative law judge. At the hearing, relevant evidence may be
presented pursuant to Section 11513 of the Government Code. The
administrative law judge shall issue a written decision on the
petition within 10 business days of the conclusion of the hearing.
The 10-day time period for holding the hearing and for rendering a
decision may be extended by the written agreement of the parties.
   (3) The administrative law judge shall uphold the appointment of
the temporary manager if the department proves, by a preponderance of
the evidence, that the circumstances specified in subdivision (c)
applied to the facility at the time of the appointment. The
administrative law judge shall order the termination of the temporary
manager if the burden of proof is not satisfied.
   (4) The decision of the administrative law judge is subject to
judicial review as provided in Section 1094.5 of the Code of Civil
Procedure by the superior court of the county where the facility is
located. This review may be requested by the licensee of the facility
or the department by filing a petition seeking relief from the
order. The petition may also request the issuance of temporary
injunctive relief pending the decision on the petition. The superior
court shall hold a hearing within 10 business days of the filing of
the petition and shall issue a decision on the petition within 10
days of the hearing. The department may be represented by legal
counsel within the department for purposes of court proceedings
authorized under this section.
   (g) If the licensee does not protest the appointment or does not
prevail at either the administrative hearing under paragraph (2) of
subdivision (f) or the superior court hearing under paragraph (4) of
subdivision (f), the temporary manager shall continue in accordance
with subdivision (e).
   (h) (1) If the licensee petitions the Office of Administrative
Hearings pursuant to subdivision (f), the appointment of the
temporary manager by the director pursuant to this section shall
continue until it is terminated by the administrative law judge or by
the superior court, or it shall continue until the conditions of
subdivision (e) are satisfied, whichever is earlier.
   (2) At any time during the appointment of the temporary manager,
the director may request an extension of the appointment by filing
                                       a petition for hearing with
the Office of Administrative Hearings and serving a copy of the
petition on the licensee. The office shall proceed as specified in
paragraph (2) of subdivision (f). The administrative law judge may
extend the appointment of the temporary manager an additional 60 days
upon a showing by the department that the conditions specified in
subdivision (c) continue to exist.
   (3) The licensee or the department may request review of the
administrative law judge's decision on the extension as provided in
paragraph (4) of subdivision (f).
   (i) The temporary manager appointed pursuant to this section shall
meet the following qualifications:
   (1) Be qualified to oversee correction of deficiencies in a
residential care facility for the elderly on the basis of experience
and education.
   (2) Not be the subject of any pending actions by the department or
any other state agency nor have ever been excluded from a
department-licensed facility or had a license or certification
suspended or revoked by an administrative action by the department or
any other state agency.
   (3) Have no financial ownership interest in the facility and have
no member of his or her immediate family who has a financial
ownership interest in the facility.
   (4) Not currently serve, or within the past two years have served,
as a member of the staff of the facility.
   (j) Payment of the costs of the temporary manager shall comply
with the following requirements:
   (1) Upon agreement with the licensee, the costs of the temporary
manager and any other expenses in connection with the temporary
management shall be paid directly by the facility while the temporary
manager is assigned to that facility. Failure of the licensee to
agree to the payment of those costs may result in the payment of the
costs by the department and subsequent required reimbursement of the
department by the licensee pursuant to this section.
   (2) Direct costs of the temporary manager shall be equivalent to
the sum of the following:
   (A) The prevailing fee paid by licensees for positions of the same
type in the facility's geographic area.
   (B) Additional costs that reasonably would have been incurred by
the licensee if the licensee and the temporary manager had been in an
employment relationship.
   (C) Any other reasonable costs incurred by the temporary manager
in furnishing services pursuant to this section.
   (3) Direct costs may exceed the amount specified in paragraph (2)
if the department is otherwise unable to find a qualified temporary
manager.
   (k) (1) The responsibilities of the temporary manager may include,
but are not limited to, the following:
   (A) Paying wages to staff. The temporary manager shall have the
full power to hire, direct, manage, and discharge employees of the
facility, subject to any contractual rights they may have. The
temporary manager shall pay employees at the same rate of
compensation, including benefits, that the employees would have
received from the licensee or wages necessary to provide adequate
staff for the protection of clients and compliance with the law.
   (B) Preserving resident funds. The temporary manager shall be
entitled to, and shall take possession of, all property or assets of
residents that are in the possession of the licensee or administrator
of the facility. The temporary manager shall preserve all property,
assets, and records of residents of which the temporary manager takes
possession.
   (C) Contracting for outside services as may be needed for the
operation of the facility. Any contract for outside services in
excess of five thousand dollars ($5,000) shall be approved by the
director.
   (D) Paying commercial creditors of the facility to the extent
required to operate the facility. The temporary manager shall honor
all leases, mortgages, and secured transactions affecting the
building in which the facility is located and all goods and fixtures
in the building, but only to the extent of payments that, in the case
of a rental agreement, are for the use of the property during the
period of the temporary management, or that, in the case of a
purchase agreement, come due during the period of the temporary
management.
   (E) Performing all acts that are necessary and proper to maintain
and operate the facility in accordance with sound fiscal policies.
The temporary manager shall take action as is reasonably necessary to
protect or conserve the assets or property of which the temporary
manager takes possession and may use those assets or property only in
the performance of the powers and duties set forth in this section.
   (2) Expenditures by the temporary manager in excess of five
thousand dollars ($5,000) shall be approved by the director. Total
encumbrances and expenditures by the temporary manager for the
duration of the temporary management shall not exceed the sum of
forty-nine thousand nine hundred ninety-nine dollars ($49,999) unless
approved by the director in writing.
   (3) The temporary manager shall not make capital improvements to
the facility in excess of five thousand dollars ($5,000) without the
approval of the director.
   (l) (1) To the extent department funds are advanced for the costs
of the temporary manager or for other expenses in connection with the
temporary management, the department shall be reimbursed from the
revenues accruing to the facility or to the licensee or an entity
related to the licensee. Any reimbursement received by the department
shall be redeposited in the account from which the department funds
were advanced. If the revenues are insufficient to reimburse the
department, the unreimbursed amount shall constitute  a
  grounds for a monetary judgment in civil court and a
subsequent  lien upon the assets of the facility or the proceeds
from the sale thereof.  The   Pursuant to
Chapter 2 (commencing with Section 697.510) of Division 2 of Title 9
of Part 2 of the Code of Civil Procedure, a  lien against the
personal assets of the facility or an entity related to the licensee
 based on the monetary judgment obtained  shall be filed
with the Secretary of State on the forms required for a notice of
judgment lien. A lien against the real property of the facility or an
entity related to the licensee  based on the monetary judgment
obtained  shall be recorded with the county recorder of the
county where the facility of the licensee is located or where the
real property of the entity related to the licensee is located. The
lien shall not attach to the interests of a lessor, unless the lessor
is operating the facility. The authority to place a lien against the
personal and real property of the licensee for the reimbursement of
any state funds expended pursuant to this section shall be given
judgment creditor priority.
   (2) For purposes of this section, "entity related to the licensee"
means an entity, other than a natural person, of which the licensee
is a subsidiary or an entity in which a person who was obligated to
disclose information under Section 1569.15 possesses an interest that
would also require disclosure pursuant to Section 1569.15.
   (m) Appointment of a temporary manager under this section does not
relieve the licensee of any responsibility for the care and
supervision of residents under this chapter. The licensee, even if
the license is deemed surrendered or the facility abandoned, shall be
required to reimburse the department for all costs associated with
operation of the facility during the period the temporary manager is
in place that are not accounted for by using facility revenues or for
the relocation of residents handled by the department if the
licensee fails to comply with the relocation requirements of Section
1569.525 or 1569.682 when required by the department to do so. If the
licensee fails to reimburse the department under this section, then
the department, along with using its own remedies available under
this chapter, may request that the Attorney General's office, the
city attorney's office, or the local district attorney's office seek
any available criminal, civil, or administrative remedy, including,
but not limited to, injunctive relief, restitution, and damages in
the same manner as provided for in Chapter 5 (commencing with Section
17200) of Part 2 of Division 7 of the Business and Professions Code.

   (n) The department may use funds from the emergency resident
contingency account pursuant to Section 1569.48 when needed to
supplement the operation of the facility or the transfer of residents
under the control of the temporary manager appointed under this
section if facility revenues are unavailable or exhausted when
needed. Pursuant to subdivision (l), the licensee shall be required
to reimburse the department for any funds used from the emergency
resident contingency account during the period of control of the
temporary manager and any incurred costs of collection.
   (o) This section does not apply to a residential care facility for
the elderly that serves six or fewer persons and is also the
principal residence of the licensee.
   (p) Notwithstanding any other provision of law, the temporary
manager shall be liable only for damages resulting from gross
negligence in the operation of the facility or intentional tortious
acts.
   (q) All governmental immunities otherwise applicable to the state
shall also apply to the state in the use of a temporary manager in
the operation of a facility pursuant to this section.
   (r) A licensee shall not be liable for any occurrences during the
temporary management under this section except to the extent that the
occurrences are the result of the licensee's conduct.
   (s) The department may adopt regulations for the administration of
this section.
   SEC. 4.    Section 1569.482 of the   Health
and Safety Code   , as added by Section 25 of Chapter 29 of
the Statutes of 2014, is amended to read: 
   1569.482.  (a) It is the intent of the Legislature in enacting
this section to authorize the department to take quick, effective
action to protect the health and safety of residents of residential
care facilities for the elderly and to minimize the effects of
transfer trauma that accompany the abrupt transfer of residents
through a system whereby the department may apply for a court order
appointing a receiver to temporarily operate a residential care
facility for the elderly. The receivership is not intended to punish
a licensee or to replace attempts to secure cooperative action to
protect the residents' health and safety. The receivership is
intended to protect the residents in the absence of other reasonably
available alternatives. The receiver shall assume the operation of
the facility in order to bring it into compliance with law,
facilitate a transfer of ownership to a new licensee, or ensure the
orderly transfer of residents should the facility be required to
close.
   (b) (1) Whenever circumstances exist indicating that continued
management of a residential care facility by the current licensee
would present a substantial probability or imminent danger of serious
physical harm or death to the residents, or the facility is closing
or intends to terminate operation as a residential care facility for
the elderly and adequate arrangements for relocation of residents
have not been made at least 30 days prior to the closing or
termination, the director may petition the superior court for the
county in which the facility is located for an order appointing a
receiver to temporarily operate the facility in accordance with this
section.
   (2) The petition shall allege the facts upon which the action is
based and shall be supported by an affidavit of the director. A copy
of the petition and affidavits, together with an order to appear and
show cause why temporary authority to operate the residential care
facility for the elderly should not be vested in a receiver pursuant
to this section, shall be delivered to the licensee, administrator,
or a responsible person at the facility to the attention of the
licensee and administrator. The order shall specify a hearing date,
which shall be not less than 10, nor more than 15, days following
delivery of the petition and order upon the licensee, except that the
court may shorten or lengthen the time upon a showing of just cause.

   (c) (1) If the director files a petition pursuant to subdivision
(b) for appointment of a receiver to operate a residential care
facility for the elderly, in accordance with Section 564 of the Code
of Civil Procedure, the director may also petition the court, in
accordance with Section 527 of the Code of Civil Procedure, for an
order appointing a temporary receiver. A temporary receiver appointed
by the court pursuant to this subdivision shall serve until the
court has made a final determination on the petition for appointment
of a receiver filed pursuant to subdivision (b). A receiver appointed
pursuant to this subdivision shall have the same powers and duties
as a receiver would have if appointed pursuant to subdivision (b).
Upon the director filing a petition for a receiver, the receiver
shall complete its application for a provisional license to operate a
residential care facility for the elderly. For purposes of a
provisional license issued to a receiver, the licensee's existing
fire safety clearance shall serve as the fire safety clearance for
the receiver's provisional license.
   (2) At the time of the hearing, the department shall advise the
licensee of the name of the proposed receiver. The receiver shall be
a certified residential care facility for the elderly administrator
or other responsible person or entity, as determined by the court,
from a list of qualified receivers established by the department,
and, if need be, with input from providers of residential care and
consumer representatives. Persons appearing on the list shall have
experience in the delivery of care services to clients of community
care facilities, and, if feasible, shall have experience with the
operation of a residential care facility for the elderly, shall not
be the subject of any pending actions by the department or any other
state agency, and shall not have ever been excluded from a department
licensed facility nor have had a license or certification suspended
or revoked by an administrative action by the department or any other
state agency. The receivers shall have sufficient background and
experience in management and finances to ensure compliance with
orders issued by the court. The owner, licensee, or administrator
shall not be appointed as the receiver unless authorized by the
court.
   (3) If at the conclusion of the hearing, which may include oral
testimony and cross-examination at the option of any party, the court
determines that adequate grounds exist for the appointment of a
receiver and that there is no other reasonably available remedy to
protect the residents, the court may issue an order appointing a
receiver to temporarily operate the residential care facility for the
elderly and enjoining the licensee from interfering with the
receiver in the conduct of his or her duties. In these proceedings,
the court shall make written findings of fact and conclusions of law
and shall require an appropriate bond to be filed by the receiver and
paid for by the licensee. The bond shall be in an amount necessary
to protect the licensee in the event of any failure on the part of
the receiver to act in a reasonable manner. The bond requirement may
be waived by the licensee.
   (4) The court may permit the licensee to participate in the
continued operation of the facility during the pendency of any
receivership ordered pursuant to this section and shall issue an
order detailing the nature and scope of participation.
   (5) Failure of the licensee to appear at the hearing on the
petition shall constitute an admission of all factual allegations
contained in the petition for purposes of these proceedings only.
   (6) The licensee shall receive notice and a copy of the
application each time the receiver applies to the court or the
department for instructions regarding his or her duties under this
section, when an accounting pursuant to subdivision (i) is submitted,
and when any other report otherwise required under this section is
submitted. The licensee shall have an opportunity to present
objections or otherwise participate in those proceedings.
   (d) A person shall not impede the operation of a receivership
created under this section. The receiver's access to, or possession
of, the property shall not be interfered with during the term of the
receivership. There shall be an automatic stay for a 60-day period
subsequent to the appointment of a receiver of any action that would
interfere with the functioning of the facility, including, but not
limited to, cancellation of insurance policies executed by the
licensees, termination of utility services, attachments, or setoffs
of resident trust funds and working capital accounts and repossession
of equipment in the facility.
   (e) When a receiver is appointed, the licensee may, at the
discretion of the court, be divested of possession and control of the
facility in favor of the receiver. If the court divests the licensee
of possession and control of the facility in favor of the receiver,
the department shall immediately issue a provisional license to the
receiver. Notwithstanding the applicable sections of this code
governing the revocation of a provisional license, the provisional
license issued to a receiver shall automatically expire upon the
termination of the receivership. The receiver shall possess the
provisional license solely for purposes of carrying out the
responsibilities authorized by this section and the duties ordered by
the court. The receiver shall have no right to appeal the expiration
of the provisional license.
   (f) A receiver appointed pursuant to this section:
   (1) May exercise those powers and shall perform those duties
ordered by the court, in addition to other duties provided by
statute.
   (2) Shall operate the facility in a manner that ensures the safety
and adequate care for the residents.
   (3) Shall have the same rights to possession of the building in
which the facility is located, and of all goods and fixtures in the
building at the time the petition for receivership is filed, as the
licensee and administrator would have had if the receiver had not
been appointed.
   (4) May use the funds, building, fixtures, furnishings, and any
accompanying consumable goods in the provision of care and services
to residents and to any other persons receiving services from the
facility at the time the petition for receivership was filed.
   (5) Shall take title to all revenue coming to the facility in the
name of the receiver who shall use it for the following purposes in
descending order of priority:
   (A) To pay wages to staff. The receiver shall have full power to
hire, direct, manage, and discharge employees of the facility,
subject to any contractual rights they may have. The receiver shall
pay employees at the same rate of compensation, including benefits,
that the employees would have received from the licensee or wages
necessary to provide adequate staff for the protection of the clients
and compliance with the law.
   (B) To preserve resident funds. The receiver shall be entitled to,
and shall take, possession of all property or assets of residents
that are in the possession of the licensee or operator of the
facility. The receiver shall preserve all property, assets, and
records of residents of which the receiver takes possession.
   (C) To contract for outside services as may be needed for the
operation of the residential care facility for the elderly. Any
contract for outside services in excess of five thousand dollars
($5,000) shall be approved by the court.
   (D) To pay commercial creditors of the facility to the extent
required to operate the facility. Except as provided in subdivision
(h), the receiver shall honor all leases, mortgages, and secured
transactions affecting the building in which the facility is located
and all goods and fixtures in the building of which the receiver has
taken possession, but only to the extent of payments which, in the
case of a rental agreement, are for the use of the property during
the period of receivership, or which, in the case of a purchase
agreement, come due during the period of receivership.
   (E) To receive a salary, as approved by the court.
   (F) To do all things necessary and proper to maintain and operate
the facility in accordance with sound fiscal policies. The receiver
shall take action as is reasonably necessary to protect or conserve
the assets or property of which the receiver takes possession and may
use those assets or property only in the performance of the powers
and duties set out in this section and by order of the court.
   (G) To ask the court for direction in the treatment of debts
incurred prior to the appointment, if the licensee's debts appear
extraordinary, of questionable validity, or unrelated to the normal
and expected maintenance and operation of the facility, or if payment
of the debts will interfere with the purposes of receivership.
   (g) (1) A person who is served with notice of an order of the
court appointing a receiver and of the receiver's name and address
shall be liable to pay the receiver, rather than the licensee, for
any goods or services provided by the residential care facility for
the elderly after the date of the order. The receiver shall give a
receipt for each payment and shall keep a copy of each receipt on
file. The receiver shall deposit amounts received in a special
account and shall use this account for all disbursements. Payment to
the receiver pursuant to this subdivision shall discharge the
obligation to the extent of the payment and shall not thereafter be
the basis of a claim by the licensee or any other person. A resident
shall not be evicted nor may any contract or rights be forfeited or
impaired, nor may any forfeiture be effected or liability increased,
by reason of an omission to pay the licensee, operator, or other
person a sum paid to the receiver pursuant to this subdivision.
   (2) This section shall not be construed to suspend, during the
temporary management by the receiver, any obligation of the licensee
for payment of local, state, or federal taxes. A licensee shall not
be held liable for acts or omissions of the receiver during the term
of the temporary management.
   (3) Upon petition of the receiver, the court may order immediate
payment to the receiver for past services that have been rendered and
billed, and the court may also order a sum not to exceed one month's
advance payment to the receiver of any sums that may become payable
under the Medi-Cal program.
   (h) (1) A receiver shall not be required to honor a lease,
mortgage, or secured transaction entered into by the licensee of the
facility and another party if the court finds that the agreement
between the parties was entered into for a collusive, fraudulent
purpose or that the agreement is unrelated to the operation of the
facility.
   (2) A lease, mortgage, or secured transaction or an agreement
unrelated to the operation of the facility that the receiver is
permitted to dishonor pursuant to this subdivision shall only be
subject to nonpayment by the receiver for the duration of the
receivership, and the dishonoring of the lease, mortgage, security
interest, or other agreement, to this extent, by the receiver shall
not relieve the owner or operator of the facility from any liability
for the full amount due under the lease, mortgage, security interest,
or other agreement.
   (3) If the receiver is in possession of real estate or goods
subject to a lease, mortgage, or security interest that the receiver
is permitted to avoid pursuant to paragraph (1), and if the real
estate or goods are necessary for the continued operation of the
facility, the receiver may apply to the court to set a reasonable
rent, price, or rate of interest to be paid by the receiver during
the duration of the receivership. The court shall hold a hearing on
this application within 15 days. The receiver shall send notice of
the application to any known owner of the property involved at least
10 days prior to the hearing.
   (4) Payment by the receiver of the amount determined by the court
to be reasonable is a defense to any action against the receiver for
payment or possession of the goods or real estate, subject to the
lease or mortgage, which is brought by any person who received the
notice required by this subdivision. However, payment by the receiver
of the amount determined by the court to be reasonable shall not
relieve the owner or operator of the facility from any liability for
the difference between the amount paid by the receiver and the amount
due under the original lease, mortgage, or security interest.
   (i) A monthly accounting shall be made by the receiver to the
department of all moneys received and expended by the receiver on or
before the 15th day of the following month or as ordered by the
court, and the remainder of income over expenses for that month shall
be returned to the licensee. A copy of the accounting shall be
provided to the licensee. The licensee or owner of the residential
care facility for the elderly may petition the court for a
determination as to the reasonableness of any expenditure made
pursuant to paragraph (5) of subdivision (f).
   (j) (1) The receiver shall be appointed for an initial period of
not more than three months. The initial three-month period may be
extended for additional periods not exceeding three months, as
determined by the court pursuant to this section. At the end of one
month, the receiver shall report to the court on its assessment of
the probability that the residential care facility for the elderly
will meet state standards for operation by the end of the initial
three-month period and will continue to maintain compliance with
those standards after termination of the receiver's management. If it
appears that the facility cannot be brought into compliance with
state standards within the initial three-month period, the court
shall take appropriate action as follows:
   (A) Extend the receiver's management for an additional three
months if there is a substantial likelihood that the facility will
meet state standards within that period and will maintain compliance
with the standards after termination of the receiver's management.
The receiver shall report to the court in writing upon the facility's
progress at the end of six weeks of any extension ordered pursuant
to this paragraph.
                                                            (B) Order
the director to revoke or temporarily suspend, or both, the license
pursuant to Section 1569.50 and extend the receiver's management for
the period necessary to transfer clients in accordance with the
transfer plan, but for not more than three months from the date of
initial appointment of a receiver, or 14 days, whichever is greater.
An extension of an additional three months may be granted if deemed
necessary by the court.
   (2) If it appears at the end of six weeks of an extension ordered
pursuant to subparagraph (A) of paragraph (1) that the facility
cannot be brought into compliance with state standards for operation
or that it will not maintain compliance with those standards after
the receiver's management is terminated, the court shall take
appropriate action as specified in subparagraph (B) of paragraph (1).

   (3) In evaluating the probability that a residential care facility
for the elderly will maintain compliance with state standards of
operation after the termination of receiver management ordered by the
court, the court shall consider at least the following factors:
   (A) The duration, frequency, and severity of past violations in
the facility.
   (B) History of compliance in other care facilities operated by the
proposed licensee.
   (C) Efforts by the licensee to prevent and correct past
violations.
   (D) The financial ability of the licensee to operate in compliance
with state standards.
   (E) The recommendations and reports of the receiver.
   (4) Management of a residential care facility for the elderly
operated by a receiver pursuant to this section shall not be returned
to the licensee, to any person related to the licensee, or to any
person who served as a member of the facility's staff or who was
employed by the licensee prior to the appointment of the receiver
unless both of the following conditions are met:
   (A) The department believes that it would be in the best interests
of the residents of the facility, requests that the court return the
operation of the facility to the former licensee, and provides clear
and convincing evidence to the court that it is in the best
interests of the facility's residents to take that action.
   (B) The court finds that the licensee has fully cooperated with
the department in the appointment and ongoing activities of a
receiver appointed pursuant to this section, and, if applicable, any
temporary manager appointed pursuant to Section 1569.481.
   (5) The owner of the facility may at any time sell, lease, or
close the facility, subject to the following provisions:
   (A) If the owner closes the facility, or the sale or lease results
in the closure of the facility, the court shall determine if a
transfer plan is necessary. If the court so determines, the court
shall adopt and implement a transfer plan consistent with the
provisions of Section 1569.682.
   (B) If the licensee proposes to sell or lease the facility and the
facility will continue to operate as a residential care facility for
the elderly, the court and the department shall reevaluate any
proposed transfer plan. If the court and the department determine
that the sale or lease of the facility will result in compliance with
licensing standards, the transfer plan and the receivership shall,
subject to those conditions that the court may impose and enforce, be
terminated upon the effective date of the sale or lease.
   (k) (1) The salary of the receiver shall be set by the court
commensurate with community care facility industry standards, giving
due consideration to the difficulty of the duties undertaken, and
shall be paid from the revenue coming to the facility. If the revenue
is insufficient to pay the salary in addition to other expenses of
operating the facility, the receiver's salary shall be paid from the
emergency resident contingency account as provided in Section
1569.48. State advances of funds in excess of five thousand dollars
($5,000) shall be approved by the director. Total advances for
encumbrances and expenditures shall not exceed the sum of forty-nine
thousand nine hundred ninety-nine dollars ($49,999) unless approved
by the director in writing.
   (2) To the extent state funds are advanced for the salary of the
receiver or for other expenses in connection with the receivership,
as limited by subdivision (g), the state shall be reimbursed from the
revenues accruing to the facility or to the licensee or an entity
related to the licensee. Any reimbursement received by the state
shall be redeposited in the account from which the state funds were
advanced. If the revenues are insufficient to reimburse the state,
the unreimbursed amount shall constitute  a  
grounds for a monetary judgment in civil court and a subsequent 
lien upon the assets of the facility or the proceeds from the sale
thereof.  The   Pursuant to Chapter 2
(commencing with Section 697.510) of Division 2 of Title 9 of Part 2
of the Code of Civil Procedure,   a  lien against the
personal assets of the facility or an entity related to the licensee
 based on the monetary judgment obtained  shall be filed
with the Secretary of State on the forms required for a notice of
judgment lien. A lien against the real property of the facility or an
entity related to the licensee  based on the monetary judgment
obtained  shall be recorded with the county recorder of the
county where the facility of the licensee is located or where the
real property of the entity related to the licensee is located. The
lien shall not attach to the interests of a lessor, unless the lessor
is operating the facility.  The authority to place a  
lien against the personal and real property of the licensee for the
reimbursement of any state funds expended pursuant to this section
shall be given judgment creditor priority. 
   (3) For purposes of this subdivision, "entity related to the
licensee" means an entity, other than a natural person, of which the
licensee is a subsidiary or an entity in which any person who was
obligated to disclose information under Section 1569.15 possesses an
interest that would also require disclosure pursuant to Section
1569.15.
   (l) (1) This section does not impair the right of the owner of a
residential care facility for the elderly to dispose of his or her
property interests in the facility, but any facility operated by a
receiver pursuant to this section shall remain subject to that
administration until terminated by the court. The termination shall
be promptly effectuated, provided that the interests of the residents
have been safeguarded as determined by the court.
   (2) This section does not limit the power of the court to appoint
a receiver under any other applicable provision of law or to order
any other remedy available under law.
   (m) (1) Notwithstanding any other provision of law, the receiver
shall be liable only for damages resulting from gross negligence in
the operation of the facility or intentional tortious acts.
   (2) All governmental immunities otherwise applicable to the State
of California shall also apply in the use of a receiver in the
operation if a facility pursuant to this section.
   (3) The licensee shall not be liable for any occurrences during
the receivership except to the extent that the occurrences are the
result of the licensee's conduct.
   (n) The department may adopt regulations for the administration of
this section. This section does not impair the authority of the
department to temporarily suspend licenses under Section 1569.50 or
to reach a voluntary agreement with the licensee for alternate
management of a community care facility including the use of a
temporary manager under Section 1569.481. This section does not
authorize the department to interfere in a labor dispute.
   (o) This section does not apply to a residential care facility for
the elderly that serves six or fewer persons and is also the
principal residence of the licensee.
   (p) This section does not apply to a licensee that has obtained a
certificate of authority to offer continuing care contracts, as
defined in paragraph (8) of subdivision (c) of Section 1771.
   SEC. 5.    Section 1569.682 of the   Health
and Safety Code   is amended to read: 
   1569.682.  (a) A licensee of a licensed residential care facility
for the elderly shall, prior to transferring a resident of the
facility to another facility or to an independent living arrangement
as a result of the forfeiture of a license, as described in
subdivision (a), (b), or (f) of Section 1569.19, or a change of use
of the facility pursuant to the department's regulations, take all
reasonable steps to transfer affected residents safely and to
minimize possible transfer trauma, and shall, at a minimum, do all of
the following:
   (1) Prepare, for each resident, a relocation evaluation of the
needs of that resident, which shall include both of the following:
   (A) Recommendations on the type of facility that would meet the
needs of the resident based on the current service plan.
   (B) A list of facilities, within a 60-mile radius of the resident'
s current facility, that meet the resident's present needs.
   (2) Provide each resident or the resident's responsible person
with a written notice no later than 60 days before the intended
eviction. The notice shall include all of the following:
   (A) The reason for the eviction, with specific facts to permit a
determination of the date, place, witnesses, and circumstances
concerning the reasons.
   (B) A copy of the resident's current service plan.
   (C) The relocation evaluation.
   (D) A list of referral agencies.
   (E) The right of the resident or resident's legal representative
to contact the department to investigate the reasons given for the
eviction pursuant to Section 1569.35.
   (F) The contact information for the local long-term care
ombudsman, including address and telephone number.
   (3) Discuss the relocation evaluation with the resident and his or
her legal representative within 30 days of issuing the notice of
eviction.
   (4) Submit a written report of any eviction to the licensing
agency within five days.
   (5) Upon issuing the written notice of eviction, a licensee shall
not accept new residents or enter into new admission agreements.
   (6) (A) For paid preadmission fees in excess of five hundred
dollars ($500), the resident is entitled to a refund in accordance
with all of the following:
   (i) A 100-percent refund if preadmission fees were paid within six
months of notice of eviction.
   (ii) A 75-percent refund if preadmission fees were paid more than
six months but not more than 12 months before notice of eviction.
   (iii) A 50-percent refund if preadmission fees were paid more than
12 months but not more than 18 months before notice of eviction.
   (iv) A 25-percent refund if preadmission fees were paid more than
18 months but less than 25 months before notice of eviction.
   (B) No preadmission refund is required if preadmission fees were
paid 25 months or more before the notice of eviction.
   (C) The preadmission refund required by this paragraph shall be
paid within 15 days of issuing the eviction notice. In lieu of the
refund, the resident may request that the licensee provide a credit
toward the resident's monthly fee obligation in an amount equal to
the preadmission fee refund due.
   (7) If the resident gives notice five days before leaving the
facility, the licensee shall refund to the resident or his or her
legal representative a proportional per diem amount of any prepaid
monthly fees at the time the resident leaves the facility and the
unit is vacated. Otherwise the licensee shall pay the refund within
seven days from the date that the resident leaves the facility and
the unit is vacated.
   (8) Within 10 days of all residents having left the facility, the
licensee, based on information provided by the resident or resident's
legal representative, shall submit a final list of names and new
locations of all residents to the department and the local ombudsman
program.
   (b) If seven or more residents of a residential care facility for
the elderly will be transferred as a result of the forfeiture of a
license or change in the use of the facility pursuant to subdivision
(a), the licensee shall submit a proposed closure plan to the
department for approval. The department shall approve or disapprove
the closure plan, and monitor its implementation, in accordance with
the following requirements:
   (1) Upon submission of the closure plan, the licensee shall be
prohibited from accepting new residents and entering into new
admission agreements for new residents.
   (2) The closure plan shall meet the requirements described in
subdivision (a), and describe the staff available to assist in the
transfers. The department's review shall include a determination as
to whether the licensee's closure plan contains a relocation
evaluation for each resident.
   (3) Within 15 working days of receipt, the department shall
approve or disapprove the closure plan prepared pursuant to this
subdivision, and, if the department approves the plan, it shall
become effective upon the date the department grants its written
approval of the plan.
   (4) If the department disapproves a closure plan, the licensee may
resubmit an amended plan, which the department shall promptly either
approve or disapprove, within 10 working days of receipt by the
department of the amended plan. If the department fails to approve a
closure plan, it shall inform the licensee, in writing, of the
reasons for the disapproval of the plan.
   (5) If the department fails to take action within 20 working days
of receipt of either the original or the amended closure plan, the
plan, or amended plan, as the case may be, shall be deemed approved.
   (6) Until such time that the department has approved a licensee's
closure plan, the facility shall not issue a notice of transfer or
require any resident to transfer.
   (7) Upon approval by the department, the licensee shall send a
copy of the closure plan to the local ombudsman program.
   (c) (1) If a licensee fails to comply with the requirements of
this section,  and   or  if the director
determines that it is necessary to protect the residents of a
facility from physical or mental abuse, abandonment, or any other
substantial threat to health or safety, the department shall take any
necessary action to minimize trauma for the residents, including
caring for the residents through the use of a temporary manager 
or receiver  as provided for in  Section 1569.481
  Sections 1569.481 and 1569.482  when the director
determines the immediate relocation of the residents is not feasible
based on transfer trauma or other considerations such as the
unavailability of alternative placements. The department shall
contact any local agency that may have assessment placement,
protective, or advocacy responsibility for the residents, and shall
work together with those agencies to locate alternative placement
sites, contact relatives or other persons responsible for the care of
these residents, provide onsite evaluation of the residents, and
assist in the transfer of residents.
   (2) The participation of the department and local agencies in the
relocation of residents from a residential care facility for the
elderly shall not relieve the licensee of any responsibility under
this section. A licensee that fails to comply with the requirements
of this section shall be required to reimburse the department and
local agencies for the cost of providing the relocation services or
the costs incurred in caring for the residents through the use of a
temporary manager  or receiver  as provided for in 
Section 1569.481.   Sections 1569.481 and 1569.482.
 If the licensee fails to provide the relocation services
required in this section, then the department may request that the
Attorney General's office, the city attorney's office, or the local
district attorney's office seek injunctive relief and damages in the
same manner as provided for in Chapter 5 (commencing with Section
17200) of Part 2 of Division 7 of the Business and Professions Code,
including restitution to the department of any costs incurred in
caring for the residents through the use of a temporary manager 
or receiver  as provided for in  Section 1569.481.
  Sections 1569.481 and 1569.482. 
   (d) A licensee who fails to comply with requirements of this
section shall be liable for the imposition of civil penalties in the
amount of one hundred dollars ($100) per violation per day for each
day that the licensee is in violation of this section, until such
time that the violation has been corrected. The civil penalties shall
be issued immediately following the written notice of violation.
However, if the violation does not present an immediate or
substantial threat to the health or safety of residents and the
licensee corrects the violation within three days after receiving the
notice of violation, the licensee shall not be liable for payment of
any civil penalties pursuant to this subdivision related to the
corrected violation.
   (e) A resident of a residential care facility for the elderly
covered under this section, may bring a civil action against any
person, firm, partnership, or corporation who owns, operates,
establishes, manages, conducts, or maintains a residential care
facility for the elderly who violates the rights of a resident, as
set forth in this section. Any person, firm, partnership, or
corporation who owns, operates, establishes, manages, conducts, or
maintains a residential care facility for the elderly who violates
this section shall be responsible for the acts of the facility's
employees and shall be liable for costs and attorney's fees. Any such
residential care facility for the elderly may also be enjoined from
permitting the violation to continue. The remedies specified in this
section shall be in addition to any other remedy provided by law.
   (f) This section shall not apply to a licensee that has obtained a
certificate of authority to offer continuing care contracts, as
defined in paragraph (8) of subdivision (c) of Section 1771.
   SEC. 6.    Section 11461.3 of the   Welfare
and Institutions Code   , as added by Section 74 of Chapter
29 of the Statutes of 2014,   is amended to read: 
   11461.3.  (a) The Approved Relative Caregiver Funding Option
Program is hereby established for the purpose of making the amount
paid to approved relative caregivers for the in-home care of children
placed with them who are ineligible for AFDC-FC payments equal to
the amount paid on behalf of children who are eligible for AFDC-FC
payments. This is an optional program for counties choosing to
participate, and in so doing, participating counties agree to the
terms of this section as a condition of their participation. It is
the intent of the Legislature that the funding described in paragraph
(1) of subdivision (e) for the Approved Relative Caregiver Funding
Option Program be appropriated, and available for use from January
through December of each year, unless otherwise specified.
   (b) Subject to subdivision (c), effective January 1, 2015,
counties shall pay an approved relative caregiver a per child per
month rate in return for the care and supervision, as defined in
subdivision (b) of Section 11460, of a child that is placed with the
relative caregiver that is equal to the basic rate paid to foster
care providers pursuant to subdivision (g) of Section 11461, if both
of the following conditions are met:
   (1) The county with payment responsibility has notified the
department in writing by October 1 of the year before participation
begins of its decision to participate in the Approved Relative
Caregiver Funding Option Program.
   (2) The related child placed in the home meets all of the
following requirements:
   (A) The child resides in the State of California.
   (B) The child is described by subdivision (b), (c), or (e) of
Section 11401  and is not eligible for AFDC-FC pursuant to
subdivision (a) of Section 11404.   and the county
welfare department or the county probation department is responsible
for the placement and care of the child. 
   (C) The child is not eligible for AFDC-FC while placed with the
approved relative caregiver because the child is not eligible for
federal financial participation in the AFDC-FC payment.
   (c) A county's election to participate in the Approved Relative
Caregiver Funding Option Program shall affirmatively indicate that
the county understands and agrees to all of the following conditions:

   (1) Commencing October 1, 2014, the county shall notify the
department in writing of its decision to participate in the Approved
Relative Caregiver Funding Option Program. Failure to make timely
notification, without good cause as determined by the department,
shall preclude the county from participating in the program for the
upcoming year. Annually thereafter, any county not presently
participating who elects to do so shall notify the department in
writing no later than October 1 of its decision to participate for
the upcoming calendar year.
   (2) The county shall confirm that it will make per child per month
payments to all approved relative caregivers on behalf of eligible
children in the amount specified in subdivision (b) for the duration
of the participation of the county in this program.
   (3) The county shall confirm that it will be solely responsible to
pay any additional costs needed to make all payments pursuant to
subdivision (b) if the state and federal funds allocated to the
Approved Relative Caregiver Funding Option Program pursuant to
paragraph (1) of subdivision (e) are insufficient to make all
eligible payments.
   (d) (1) A county deciding to opt out of the Approved Relative
Caregiver Funding Option Program shall provide at least 120 days'
prior written notice of that decision to the department.
Additionally, the county shall provide at least 90 days' prior
written notice to the approved relative caregiver or caregivers
informing them that his or her per child per month payment will be
reduced and the date that the reduction will occur.
   (2) The department shall presume all counties have opted out of
the Approved Relative Caregiver Funding Option Program if the funding
appropriated in subclause (II) of clause (i) of subparagraph (B) of
paragraph (1) of subdivision (e), including any additional funds
appropriated pursuant to clause (ii) of subparagraph (B) of paragraph
(1) of subdivision (e), is reduced, unless a county notifies the
department in writing of its intent to opt in within 60 days of
enactment of the state budget. The counties shall provide at least 90
days' prior written notice to the approved relative caregiver or
caregivers informing them that his or her per child per month payment
will be reduced, and the date that the reduction will occur.
   (3) Any reduction in payments received by an approved relative
caregiver on behalf of a child under this section that results from a
decision by a county, including the presumed opt-out pursuant to
paragraph (2), to not participate in the Approved Relative Caregiver
Funding Option Program shall be exempt from state hearing
jurisdiction under Section 10950.
   (e) (1) The following funding shall be used for the Approved
Relative Caregiver Funding Option Program:
   (A) The applicable regional per-child CalWORKs  grant from
federal funds received as part of the TANF block grant program.
  grant. 
   (B) (i) General Fund resources that do not count toward the state'
s maintenance of effort requirements under Section 609(a)(7)(B)(i) of
Title 42 of the United States Code. For this purpose, the following
money is hereby appropriated:
   (I) The sum of thirty million dollars ($30,000,000) from the
General Fund for the period January 1, 2015 through December 31,
2015.
   (II) The sum of thirty million dollars ($30,000,000) from the
General Fund in each calendar year thereafter, as cumulatively
adjusted annually by the California Necessities Index used for each
May Revision of the Governor's Budget, to be used in each respective
calendar year.
   (ii) To the extent that the appropriation made in subclause (I) is
insufficient to fully fund the base caseload of approved relative
caregivers as of July 1, 2014, for the period of time described in
subclause (I), as jointly determined by the department and the County
Welfare Directors' Association and approved by the Department of
Finance on or before October 1, 2015, the amounts specified in
subclauses (I) and (II) shall be increased in the respective amounts
necessary to fully fund that base caseload. Thereafter, the adjusted
amount of subclause (II), and the other terms of that provision,
including an annual California Necessities Index adjustment to its
amount, shall apply.
   (C) County funds only to the extent required under paragraph (3)
of subdivision (c).
   (D) This section is intended to appropriate the funding necessary
to fully fund the base caseload of approved relative caregivers,
defined as the number of approved relative caregivers caring for a
child who is not eligible to receive AFDC-FC payments, as of July 1,
2014.
   (2) Funds available pursuant to subparagraphs (A) and (B) of
paragraph (1) shall be allocated to participating counties
proportionate to the number of their approved relative caregiver
placements, using a methodology and timing developed by the
department, following consultation with county human services
agencies and their representatives.
   (3) Notwithstanding subdivision (c), if in any calendar year the
entire amount of funding appropriated by the state for the Approved
Relative Caregiver Funding Option Program has not been fully
allocated to or utilized by counties, a county that has paid any
funds pursuant to subparagraph (C) of paragraph (1) of subdivision
(e) may request reimbursement for those funds from the department.
The authority of the department to approve the requests shall be
limited by the amount of available unallocated funds.
   (f) An approved relative caregiver receiving payments on behalf of
a child pursuant to this section shall not be eligible to receive
additional CalWORKs payments on behalf of the same child under
Section 11450.
   (g) To the extent permitted by federal law, payments received by
the approved relative caregiver from the Approved Relative Caregiver
Funding Option Program shall not be considered income for the purpose
of determining other public benefits.
   (h) Prior to referral of any individual or recipient, or that
person's case, to the local child support agency for child support
services pursuant to                                          Section
17415 of the Family Code, the county human services agency shall
determine if an applicant or recipient has good cause for
noncooperation, as set forth in Section 11477.04. If the applicant or
recipient claims good cause exception at any subsequent time to the
county human services agency or the local child support agency, the
local child support agency shall suspend child support services until
the county social services agency determines the good cause claim,
as set forth in Section 11477.04. If good cause is determined to
exist, the local child support agency shall suspend child support
services until the applicant or recipient requests their resumption,
and shall take other measures that are necessary to protect the
applicant or recipient and the children. If the applicant or
recipient is the parent of the child for whom aid is sought and the
parent is found to have not cooperated without good cause as provided
in Section 11477.04, the applicant's or recipient's family grant
shall be reduced by 25 percent for the time the failure to cooperate
lasts.
   (i) Consistent with Section 17552 of the Family Code, if aid is
paid under this chapter on behalf of a child who is under the
jurisdiction of the juvenile court and whose parent or guardian is
receiving reunification services, the county human services agency
shall determine, prior to referral of the case to the local child
support agency for child support services, whether the referral is in
the best interest of the child, taking into account both of the
following:
   (1) Whether the payment of support by the parent will pose a
barrier to the proposed reunification in that the payment of support
will compromise the parent's ability to meet the requirements of the
parent's reunification plan.
   (2) Whether the payment of support by the parent will pose a
barrier to the proposed reunification in that the payment of support
will compromise the parent's current or future ability to meet the
financial needs of the child.
   SEC. 7.    Section 11462.04 of the   Welfare
and Institutions Code   is amended to read: 
   11462.04.  (a) Notwithstanding any other law, no new group home
rate or change to an existing rate shall be established pursuant to
Section 11462. An application shall not be accepted or processed for
any of the following:
   (1) A new program.
   (2) A new provider.
   (3) A program change, such as a rate classification level (RCL)
increase.
   (4) A program capacity increase.
   (5) A program reinstatement.
   (b) Notwithstanding subdivision (a), the department may grant
exceptions as appropriate on a case-by-case basis, based upon a
written request and supporting documentation provided by county
placing agencies, including county welfare or probation directors.
   (c) For the 2012-13  and   ,  2013-14
 , and 2014-15  fiscal years, notwithstanding subdivision
(b), for any program below RCL 10, the only exception that may be
sought and granted pursuant to this section is for an application
requesting a program change, such as an RCL increase. The authority
to grant other exceptions does not apply to programs below RCL 10
during these fiscal years.
   SEC. 8.    Section 11477 of the   Welfare
and Institutions Code   , as amended by Section 75 of
Chapter 29 of the Statutes of 2014,   is amended to read:

   11477.  As a condition of eligibility for aid paid under this
chapter, each applicant or recipient shall do all of the following:
   (a) (1) Do either of the following:
   (i) For applications received before October 1, 2009, assign to
the county any rights to support from any other person the applicant
or recipient may have on his or her own behalf or on behalf of any
other family member for whom the applicant or recipient is applying
for or receiving aid, not exceeding the total amount of cash
assistance provided to the family under this chapter. Receipt of
public assistance under this chapter shall operate as an assignment
by operation of law. An assignment of support rights to the county
shall also constitute an assignment to the state. If support rights
are assigned pursuant to this subdivision, the assignee may become an
assignee of record by the local child support agency or other public
official filing with the court clerk an affidavit showing that an
assignment has been made or that there has been an assignment by
operation of law. This procedure does not limit any other means by
which the assignee may become an assignee of record.
   (ii) For applications received on or after October 1, 2009, assign
to the county any rights to support from any other person the
applicant or recipient may have on his or her own behalf, or on
behalf of any other family member for whom the applicant or recipient
is applying for or receiving aid. The assignment shall apply only to
support that accrues during the period of time that the applicant is
receiving assistance under this chapter, and shall not exceed the
total amount of cash assistance provided to the family under this
chapter. Receipt of public assistance under this chapter shall
operate as an assignment by operation of law. An assignment of
support rights to the county shall also constitute an assignment to
the state. If support rights are assigned pursuant to this
subdivision, the assignee may become an assignee of record by the
local child support agency or other public official filing with the
court clerk an affidavit showing that an assignment has been made or
that there has been an assignment by operation of law. This procedure
does not limit any other means by which the assignee may become an
assignee of record.
   (2) Support that has been assigned pursuant to paragraph (1) and
that accrues while the family is receiving aid under this chapter
shall be permanently assigned until the entire amount of aid paid has
been reimbursed.
   (3) If the federal government does not permit states to adopt the
same order of distribution for preassistance and postassistance child
support arrears that are assigned on or after October 1, 1998,
support arrears that accrue before the family receives aid under this
chapter that are assigned pursuant to this subdivision shall be
assigned as follows:
   (A) Child support assigned prior to January 1, 1998, shall be
permanently assigned until aid is no longer received and the entire
amount of aid has been reimbursed.
   (B) Child support assigned on or after January 1, 1998, but prior
to October 1, 2000, shall be temporarily assigned until aid under
this chapter is no longer received and the entire amount of aid paid
has been reimbursed or until October 1, 2000, whichever comes first.
   (C) On or after October 1, 2000, support assigned pursuant to this
subdivision that was not otherwise permanently assigned shall be
temporarily assigned to the county until aid is no longer received.
   (D) On or after October 1, 2000, support that was temporarily
assigned pursuant to this subdivision shall, when a payment is
received from the federal tax intercept program, be temporarily
assigned until the entire amount of aid paid has been reimbursed.
   (4) If the federal government permits states to adopt the same
order of distribution for preassistance and postassistance child
support arrears, child support arrears shall be assigned, as follows:

   (A) Child support assigned pursuant to this subdivision prior to
October 1, 1998, shall be assigned until aid under this chapter is no
longer received and the entire amount has been reimbursed.
   (B) On or after October 1, 1998, child support assigned pursuant
to this subdivision that accrued before the family receives aid under
this chapter and that was not otherwise permanently assigned, shall
be temporarily assigned until aid under this chapter is no longer
received.
   (C) On or after October 1, 1998, support that was temporarily
assigned pursuant to this subdivision shall, when a payment is
received from the federal tax intercept program, be temporarily
assigned until the entire amount of aid paid has been reimbursed.
   (b) (1) Cooperate with the county welfare department and local
child support agency in establishing the paternity of a child of the
applicant or recipient born out of wedlock with respect to whom aid
is claimed, and in establishing, modifying, or enforcing a support
order with respect to a child of the individual for whom aid is
requested or obtained, unless the applicant or recipient qualifies
for a good cause exception pursuant to Section 11477.04. The granting
of aid shall not be delayed or denied if the applicant is otherwise
eligible, if the applicant completes the necessary forms and agrees
to cooperate with the local child support agency in securing support
and determining paternity, if applicable. The local child support
agency shall have staff available, in person or by telephone, at all
county welfare offices and shall conduct an interview with each
applicant to obtain information necessary to establish paternity and
establish, modify, or enforce a support order at the time of the
initial interview with the welfare office. The local child support
agency shall make the determination of cooperation. If the applicant
or recipient attests under penalty of perjury that he or she cannot
provide the information required by this subdivision, the local child
support agency shall make a finding regarding whether the individual
could reasonably be expected to provide the information before the
local child support agency determines whether the individual is
cooperating. In making the finding, the local child support agency
shall consider all of the following:
   (A) The age of the child for whom support is sought.
   (B) The circumstances surrounding the conception of the child.
   (C) The age or mental capacity of the parent or caretaker of the
child for whom aid is being sought.
   (D) The time that has elapsed since the parent or caretaker last
had contact with the alleged father or obligor.
   (2) Cooperation includes all of the following:
   (A) Providing the name of the alleged parent or obligor and other
information about that person if known to the applicant or recipient,
such as address, social security number, telephone number, place of
employment or school, and the names and addresses of relatives or
associates.
   (B) Appearing at interviews, hearings, and legal proceedings
provided the applicant or recipient is provided with reasonable
advance notice of the interview, hearing, or legal proceeding and
does not have good cause not to appear.
   (C) If paternity is at issue, submitting to genetic tests,
including genetic testing of the child, if necessary.
   (D) Providing any additional information known to or reasonably
obtainable by the applicant or recipient necessary to establish
paternity or to establish, modify, or enforce a child support order.
   (3) A recipient or applicant shall not be required to sign a
voluntary declaration of paternity, as set forth in Chapter 3
(commencing with Section 7570) of Part 2 of Division 12 of the Family
Code, as a condition of cooperation.
   (c)  (1)    This section shall not apply if all
of the adults are excluded from the assistance unit pursuant to
Section 11251.3, 11454, or 11486.5. 
   (d) 
    (2)  It is the intent of the Legislature that the
regular receipt of child support in the preceding reporting period be
considered in determining reasonably anticipated income for the
following reporting period. 
   (3) In accordance with Sections 11265.2 and 11265.46, if the
income of an assistance unit described in paragraph (1) includes
reasonably anticipated income derived from child support, the first
fifty dollars ($50) of any amount of child support received each
month shall not be considered income or resources and shall not be
deducted from the amount of aid to which the assistance unit
otherwise would be eligible. 
   SEC. 9.    Section 12300.4 of the   Welfare
and Institutions Code   , as added by Section 76 of Chapter
29 of the Statutes of 2014,   is amended to read: 
   12300.4.  (a) Notwithstanding any other law, including, but not
limited to, Chapter 10 (commencing with Section 3500) of Division 4
of Title 1 of the Government Code and Title 23 (commencing with
Section 110000) of the Government Code, a recipient who is authorized
to receive in-home supportive services pursuant to this article, or
Section 14132.95, 14132.952, or 14132.956, administered by the State
Department of Social Services, or waiver personal care services
pursuant to Section 14132.97, administered by the State Department of
Health Care Services, or any combination of these services, shall
direct these authorized services, and the authorized services shall
be performed by a provider or providers within a workweek and in a
manner that complies with the requirements of this section.
   (b) (1) A workweek is defined as beginning at 12:00 a.m. on Sunday
and includes the next consecutive 168 hours, terminating at 11:59
p.m. the following Saturday.
   (2) A provider of services specified in subdivision (a) shall not
work a total number of hours within a workweek that exceeds 66, as
reduced by the net percentage defined by Sections 12301.02 and
12301.03, as applicable, and in accordance with subdivision (d). The
total number of hours worked within a workweek by a provider is
defined as the sum of the following:
   (A) All hours worked providing authorized services specified in
subdivision (a).
   (B) Travel time as defined in subdivision (f), only if federal
financial participation is not available to compensate for that
travel time. If federal financial participation is available for
travel time as defined in subdivision (f), the travel time shall not
be included in the calculation of the total weekly 
authorized hours of services.   hours worked within a
workweek. 
   (3) (A) If the authorized in-home supportive services of a
recipient cannot be provided by a single provider as a result of the
limitation specified in paragraph (2), it is the responsibility of
the recipient to employ an additional provider or providers, as
needed, to ensure his or her authorized services are provided within
his or her total weekly authorized hours of services established
pursuant to subdivision (b) of Section 12301.1.
   (B) If the provider of authorized waiver personal care services
cannot provide those services to a recipient as a result of the
limitation specified in paragraph (2), the State Department of Health
Care Services shall work with the recipient to engage additional
providers, as necessary. It is the intent of the Legislature that
this section shall not result in reduced services authorized to
recipients of waiver personal care services defined in subdivision
(a).
   (4) (A) A provider shall inform each of his or her recipients of
the number of hours that the provider is available to work for that
recipient, in accordance with this section.
   (B) A recipient, his or her authorized representative, or any
other entity, including any person or entity providing services
pursuant to Section 14186.35, shall not authorize any provider to
work hours that exceed the applicable limitation or limitations of
this section.
   (C) A recipient may authorize a provider to work hours in excess
of the recipient's weekly authorized hours established pursuant to
Section 12301.1 without notification of the county welfare
department, in accordance with both of the following:
   (i) The authorization does not result in more than 40 hours of
authorized services per week being provided.
   (ii) The authorization does not exceed the recipient's authorized
hours of monthly services pursuant to paragraph (1) of subdivision
(b) of Section 12301.1.
   (5) For providers of in-home supportive services, the State
Department of Social Services or a county may terminate the provider
from providing services under the IHSS program if a provider
continues to violate the limitations of this section on multiple
occasions.
   (c) Notwithstanding any other law, only federal law and
regulations regarding overtime compensation apply to providers of
services defined in subdivision (a).
   (d) A provider of services defined in subdivision (a) is subject
to all of the following, as applicable to his or her situation:
   (1)  (A)    A provider who works for  an
  one  individual recipient of those services
shall not work a total number of hours within a workweek that exceeds
66 hours, as reduced by the net percentage defined by Sections
12301.02 and 12301.03, as applicable. In no circumstance shall the
provision of these services by that provider to the individual
recipient exceed the total weekly hours of the services authorized to
that recipient, except as additionally authorized pursuant to
subparagraph (C) of paragraph (4) of subdivision (b). If multiple
providers serve the same recipient, it shall continue to be the
responsibility of that recipient or his or her authorized
representative to schedule the work of his or her providers to ensure
the authorized services of the recipient are provided in accordance
with this section. 
   (B) When a recipient's weekly authorized hours are adjusted
pursuant to subparagraph (C) of paragraph (1) of subdivision (b) of
Section 12301.1 and exceed 66 hours, as reduced by the net percentage
defined by Sections 12301.02 and 12301.03, as applicable, and at the
time of adjustment the recipient currently receives all authorized
hours of service from one provider, that provider shall be deemed
authorized to work the recipient's county-approved adjusted hours for
that week, but only if the additional hours of work, based on the
adjustment, do not exceed the total number of hours worked that are
compensable at an overtime pay rate that the provider would have been
authorized to work in that month if the weekly hours had not been
adjusted. 
   (2) A provider of in-home supportive services described in
subdivision (a) who serves multiple recipients is not authorized to,
and shall not, work more than 66 total hours in a workweek, as
reduced by the net percentage defined by Sections 12301.02 and
12301.03, as applicable, regardless of the number of recipients for
whom the provider provides services authorized by subdivision (a).
Providers are subject to the limits of each recipient's total
authorized weekly hours of in-home supportive services described in
subdivision (a), except as additionally authorized pursuant to
subparagraph (C) of paragraph (4) of subdivision (b).
   (e) Recipients and providers shall be informed of the limitations
and requirements contained in this section, through notices at
intervals and on forms as determined by the State Department of
Social Services or the State Department of Health Care Services, as
applicable, following consultation with stakeholders.
   (f) (1) A provider of services described in subdivision (a) shall
not engage in travel time in excess of seven hours per week. For the
purposes of this subdivision, "travel time" means time spent
traveling directly from a location where authorized services
specified in subdivision (a) are provided to one recipient, to
another location where authorized services are to be provided to
another recipient. A provider shall coordinate hours of work with his
or her  recipient or  recipients to comply with
this section.
   (2) The hourly wage to compensate a provider for travel time
described in this subdivision when the travel is between two counties
shall be the hourly wage of the destination county.
   (3) Travel time, and compensation for that travel time, between a
recipient of authorized in-home supportive services specified in
subdivision (a) and a recipient of authorized waiver personal care
services specified in subdivision (a), shall be attributed to the
program authorizing services for the recipient to whom the provider
is traveling.
   (4) Hours spent by a provider while engaged in travel time shall
not be deducted from the authorized hours of service of any recipient
of services specified in subdivision (a).
   (5) The State Department of Social Services and the State
Department of Health Care Services shall issue guidance and processes
for travel time between recipients that will assist the provider and
recipient to comply with this subdivision. Each county shall provide
technical assistance to providers and recipients, as necessary, to
implement this subdivision.
   (g) A provider of authorized in-home supportive services specified
in subdivision (a) shall timely submit, deliver, or mail, verified
by postmark or request for delivery, a signed payroll timesheet
within two weeks after the end of each bimonthly payroll period.
Notwithstanding any other law, a provider who submits an untimely
payroll timesheet for providing authorized in-home supportive
services specified in subdivision (a) shall be paid by the state
within 30 days of the receipt of the signed payroll timesheet.
   (h) This section does not apply to a contract entered into
pursuant to Section 12302 or 12302.6 for authorized in-home
supportive services. Contract rates negotiated pursuant to Section
12302 or 12302.6 shall be based on costs consistent with a 40-hour
workweek.
   (i) The state and counties are immune from any liability resulting
from implementation of this section.
   (j) Any action authorized under this section that is implemented
in a program authorized pursuant to Section 14132.95, 14132.97,
14132.952, or 14132.956 shall be compliant with federal Medicaid
requirements, as determined by the State Department of Health Care
Services.
   (k) Notwithstanding the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code),
the State Department of Social Services and the State Department of
Health Care Services may implement, interpret, or make specific this
section by means of all-county letters or similar instructions,
without taking any regulatory action.
   (l) (1) This section shall become operative only when the
regulatory amendments made by RIN 1235-AA05 to Part 552 of Title 29
of the Code of Federal Regulations are deemed effective, either on
the date specified in RIN 1235-AA05 or at a later date specified by
the Federal Department of Labor, whichever is later.
   (2) If the regulatory amendments described in paragraph (1) become
only partially effective by the date specified in paragraph (1),
this section shall become operative only for those persons for whom
federal financial participation is available as of that date.
   SEC. 10.    Sec   tion 88 of Chapter 29 of
the Statutes of 2014 is amended to read: 
  SEC. 88.  (a) Notwithstanding the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code),
the department may implement and administer the changes made by
Sections 1, 64, 67, 68, 69, 70, 72, 73, 74, 75, 77, 79, 80, 
and 81 of this act   81, 82, and 83 of Chapter 29 of the
Statutes of 2014  through all-county letters or similar
instructions until regulations are adopted.
   (b) The department shall adopt emergency regulations implementing
these provisions no later than January 1, 2016. The department may
readopt any emergency regulation authorized by this section that is
the same as, or substantially equivalent to, any emergency regulation
previously adopted pursuant to this section. The initial adoption of
regulations pursuant to this section and one readoption of emergency
regulations shall be deemed to be an emergency and necessary for the
immediate preservation of the public peace, health, safety, or
general welfare. Initial emergency regulations and the one readoption
of emergency regulations authorized by this section shall be exempt
from review by the Office of Administrative Law. The initial
emergency regulations and the one readoption of emergency regulations
authorized by this section shall be submitted to the Office of
Administrative Law for filing with the Secretary of State and each
shall remain in effect for no more than 180 days, by which time final
regulations shall be adopted.
   SEC. 11.    The amount of one million six hundred
eighty-six thousand dollars ($1,686,000) is hereby appropriated to
the State Department of Social Services in augmentation of Item
5180-151-0001 of Section 2.00 of the Budget Act of 2014, for Program
25.30 for the Commercially Sexually Exploited Children Program, and
total the amount appropriated in Item 5180-153-0001 of Section 2.00
of the Budget Act of 2014 is hereby reduced by the amount of one
million six hundred eighty-six thousand dollars ($1,686,000) to
offset that appropriation. 
   SEC. 12.    No appropriation pursuant to Section
15200 of the Welfare and Institutions Code is made for purposes of
this act. 
   SEC. 13.    This act is a bill providing for
appropriations related to the Budget Bill within the meaning of
subdivision (e) of Section 12 of Article IV of the California
Constitution, has been identified as related to the budget in the
Budget Bill, and shall take effect immediately.  
  SECTION 1.    It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2014.