BILL NUMBER: AB 1899 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 22, 2014
AMENDED IN SENATE JUNE 26, 2014
AMENDED IN ASSEMBLY MAY 23, 2014
AMENDED IN ASSEMBLY APRIL 22, 2014
AMENDED IN ASSEMBLY MARCH 24, 2014
INTRODUCED BY Assembly Member Brown
FEBRUARY 19, 2014
An act to amend Sections 1569.19, 1569.50, and 1569.682 of the
Health and Safety Code, relating to residential care facilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 1899, as amended, Brown. Residential care facilities for the
elderly.
Existing law, the California Residential Care Facilities for the
Elderly Act, provides for the licensure and regulation of residential
care facilities for the elderly by the State Department of Social
Services.
Existing law sets forth the qualifications of a licensee and
requires a license to be forfeited by operation of law when the
licensee abandons the facility. Existing law also authorizes the
department to deny an application for, or to suspend or revoke a
license upon specified grounds, including conduct inimical to the
health, morals, welfare, or safety of an individual in or receiving
services from a facility. Existing law authorizes a person whose
license has been revoked to petition the department for reinstatement
of the license after one year has elapsed since the revocation.
Under existing law, if an application for a license indicates that
the applicant was previously issued a license to operate a
residential care facility for the elderly or specified other
licenses, and that license was revoked within the last 2 years, the
department is required to cease reviewing the application until 2
years has elapsed since the revocation.
This bill would additionally exclude a licensee, who abandons the
residential care facility for the elderly and the residents in care
resulting in an immediate and substantial threat to the health and
safety of the abandoned residents, from licensure in facilities
licensed by the department without the right to petition for
reinstatement.
Existing law requires a licensee of a licensed residential care
facility for the elderly, prior to transferring a resident of the
facility to another facility or to an independent living arrangement
as a result of a license forfeiture due to abandonment of the
facility, among other things, or due to a change of use of
the facility pursuant to the department's regulations, to take all
reasonable steps to transfer affected residents safely, to minimize
possible transfer trauma, and to take specified actions. A licensee
who fails to comply with these requirements is subject to certain
penalties, including, but not limited to, civil penalties in the
amount of $100 per violation per day for each day that the licensee
is in violation, until the violation has been corrected.
This bill, on and after January 1, 2015, would additionally
exclude a licensee, who fails to comply with the above provisions and
abandons the residential care facility for the elderly and the
residents in care resulting in an immediate and substantial threat to
the health and safety of the abandoned residents, from licensure in
facilities licensed by the department without the right to petition
for reinstatement.
This bill would incorporate changes to Section 1569.682 of the
Health and Safety Code as proposed by either AB 1477 or SB 873 of the
2013-14 Regular Session that would only become operative if either
AB 1477 or SB 873 is enacted and becomes effective immediately,
either bill amends Section 1569.682 of the Health and Safety Code,
and this bill is enacted after either bill.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1569.19 of the Health and Safety Code is
amended to read:
1569.19. A license shall be forfeited by operation of law prior
to its expiration date when one of the following occurs:
(a) The licensee sells or otherwise transfers the facility or
facility property, except when change of ownership applies to
transferring of stock when the facility is owned by a corporation and
when the transfer of stock does not constitute a majority change in
ownership. The sale of a facility shall be subject to the
requirements of this chapter.
(b) The licensee surrenders the license to the department.
(c) The licensee moves a facility from one location to another.
The department shall develop regulations to ensure that the
facilities are not charged a full licensing fee and do not have to
complete the entire application process when applying for a license
for the new location.
(d) The licensee is convicted of an offense specified in Section
220, 243.4, or 264.1, or paragraph (1) of Section 273a, Section 273d,
288, or 289 of the Penal Code, or is convicted of another crime
specified in subdivision (c) of Section 667.5 of the Penal Code.
(e) The licensee dies. When a licensee dies, the continued
operation shall be subject to the requirements of Section 1569.193.
(f) The licensee abandons the facility. A licensee who abandons
the facility and the residents in care resulting in an immediate and
substantial threat to the health and safety of the abandoned
residents, in addition to forfeiture of the license pursuant to this
section, shall be excluded from licensure in facilities licensed by
the department without the right to petition for reinstatement.
SEC. 2. Section 1569.50 of the Health and Safety Code is amended
to read:
1569.50. (a) The department may deny an application for a license
or may suspend or revoke a license issued under this chapter upon
any of the following grounds and in the manner provided in this
chapter:
(1) Violation by the licensee of this chapter or of the rules and
regulations adopted under this chapter.
(2) Aiding, abetting, or permitting the violation of this chapter
or of the rules and regulations adopted under this chapter.
(3) Conduct that is inimical to the health, morals, welfare, or
safety of either an individual in or receiving services from the
facility or the people of the State of California.
(4) The conviction of a licensee, or other person mentioned in
Section 1569.17 at any time before or during licensure, of a crime as
defined in Section 1569.17.
(5) Engaging in acts of financial malfeasance concerning the
operation of a facility, including, but not limited to, improper use
or embezzlement of client moneys and property or fraudulent
appropriation for personal gain of facility moneys and property, or
willful or negligent failure to provide services for the care of
clients.
(b) The director may temporarily suspend a license, prior to a
hearing when, in the opinion of the director, the action is necessary
to protect residents or clients of the facility from physical or
mental abuse, abandonment, or any other substantial threat to health
or safety. The director shall notify the licensee of the temporary
suspension and the effective date of the temporary suspension and at
the same time shall serve the provider with an accusation. Upon
receipt of a notice of defense to the accusation by the licensee, the
director shall, within 15 days, set the matter for hearing, and the
hearing shall be held as soon as possible but not later than 30 days
after receipt of the notice. The temporary suspension shall remain in
effect until the time the hearing is completed and the director has
made a final determination on the merits. However, the temporary
suspension shall be deemed vacated if the director fails to make a
final determination on the merits within 30 days after the original
hearing has been completed.
(c) A licensee who abandons the facility and the residents in care
resulting in an immediate and substantial threat to the health and
safety of the abandoned residents, in addition to revocation of the
license pursuant to this section, shall be excluded from licensure in
facilities licensed by the department without the right to petition
for reinstatement.
SEC. 3. Section 1569.682 of the Health and Safety Code is
, as amended by Section 27 of
Chapter 29 of the Statutes of 2014, 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 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 as provided for in Section 1569.481 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 as provided for in Section 1569.481. 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 as provided for in
Section 1569.481.
(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 licensee, on and after January 1, 2015, who fails to comply
with this section and abandons the facility and the residents in care
resulting in an immediate and substantial threat to the health and
safety of the abandoned residents, in addition to forfeiture of the
license pursuant to Section 1569.19, shall be excluded from licensure
in facilities licensed by the department without the right to
petition for reinstatement.
(f) A resident of a residential care facility for the elderly
covered under this section, 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.
(g) 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. 3.5. Section 1569.682 of the
Health and Safety Code , as proposed to be amended by AB
1477 or SB 873 of the 2013-14 Regular Session, 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, 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 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 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 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 licensee, on and after January 1, 2015, who fails to comply
with this section and abandons the facility and the residents in care
resulting in an immediate and substantial threat to the health and
safety of the abandoned residents, in addition to forfeiture of the
license pursuant to Section 1569.19, shall be excluded from licensure
in facilities licensed by the department without the right to
petition for reinstatement.
(e)
(f) A resident of a residential care facility for the
elderly covered under this section, 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)
(g) 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. 4. Section 3.5 of this bill incorporates
amendments to Section 1569.682 of the Health and Safety Code proposed
by this bill and either Assembly Bill 1477 or Senate Bill 873. It
shall only become operative if (1) this bill and either Assembly Bill
1477 or Senate Bill 873 are enacted and become effective on or
before January 1, 2015, (2) each bill amends Section 1569.682 of the
Health and Safety Code, and (3) this bill is enacted after either
Assembly Bill 1477 or Senate Bill 873, in which case Section 1569.682
of the Health and Safety Code, as amended by either Assembly Bill
1477 or Senate Bill 873, shall remain operative only until the
operative date of this bill, at which time Section 3.5 of this bill
shall become operative, and Section 3 of this bill shall not become
operative.