Bill Text: CA SB1329 | 2009-2010 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Residential care facilities for the elderly.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Vetoed) 2010-09-29 - In Senate. To unfinished business. (Veto) [SB1329 Detail]
Download: California-2009-SB1329-Amended.html
Bill Title: Residential care facilities for the elderly.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Vetoed) 2010-09-29 - In Senate. To unfinished business. (Veto) [SB1329 Detail]
Download: California-2009-SB1329-Amended.html
BILL NUMBER: SB 1329 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 6, 2010
INTRODUCED BY Senator Leno
( Coauthor: Senator Romero
)
FEBRUARY 19, 2010
An act to amend Sections 1569.33 and 1569.682 of, and to add
Section 1569.686 to, the Health and Safety Code, relating to
residential care facilities for the elderly.
LEGISLATIVE COUNSEL'S DIGEST
SB 1329, as amended, Leno. 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. Under existing law, a violation of these provisions is a
crime.
Existing law requires the department to conduct an annual
unannounced visit of a facility under specified circumstances.
This bill would require the licensee of a facility to notify the
department in writing within 24 hours of specified events or
obtaining knowledge of these events, and would require the department
to conduct an annual unannounced visit to the facility when the
facility experiences any of these events.
This bill would require the licensee of a facility to notify all
residents and, if applicable, their legal representatives, as well as
applicants and potential residents, of specified events.
Existing law requires a licensee of a facility, prior to
transferring a resident of the facility to another facility or to an
independent living arrangement as a result of forfeiture of a
license, or change of use of the facility pursuant to the department'
s regulations, to take reasonable steps to transfer affected
residents safely and to minimize possible trauma, as specified.
This bill would make the above-described reasonable steps
requirement applicable to an immediate successor in interest to
property that includes a residential care facility for the elderly.
By expanding the definition of an existing crime, this bill would
impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. This act shall be known, and may be cited, as the RCFE
Residents Foreclosure Protection Act of 2010.
SEC. 2. The Legislature finds and declares all of the following:
(a) There are currently approximately 8,000 residential care
facilities for the elderly (RCFEs) in California.
(b) The vast majority of RCFEs are located in single-family
dwellings, with a mortgage on the property.
(c) The best interests of the residents of RCFEs requires
procedures to ensure that they are notified and protected whenever
their home is subject to a foreclosure or other event indicating
significant financial distress.
(d) Therefore, it is the intent of the Legislature in enacting
this act to establish procedures to protect RCFE residents by
providing them and the state with information when an RCFE is
suffering foreclosure proceedings or experiencing financial distress.
SEC. 3. Section 1569.33 of the Health and Safety Code is amended
to read:
1569.33. (a) Every licensed residential care facility for the
elderly shall be subject to unannounced visits by the department. The
department shall visit these facilities as often as necessary to
ensure the quality of care provided.
(b) The department shall conduct an annual unannounced visit of a
facility under any of the following circumstances:
(1) When a license is on probation.
(2) When the terms of agreement in a facility compliance plan
require an annual evaluation.
(3) When an accusation against a licensee is pending.
(4) When a facility requires an annual visit as a condition of
receiving federal financial participation.
(5) In order to verify that a person who has been ordered out of
the facility for the elderly by the department is no longer at the
facility.
(6) When a facility experiences any of the events described in
subdivision (c) of Section 1569.686.
(c) (1) The department shall conduct annual unannounced visits to
no less than 20 percent of facilities not subject to an evaluation
under subdivision (b). These unannounced visits shall be conducted
based on a random sampling methodology developed by the department.
(2) If the total citations issued by the department exceed the
previous year's total by 10 percent, the following year the
department shall increase the random sample by 10 percent of the
facilities not subject to an evaluation under subdivision (b). The
department may request additional resources to increase the random
sample by 10 percent.
(d) Under no circumstance shall the department visit a residential
care facility for the elderly less often than once every five years.
(e) The department shall notify the residential care facility for
the elderly in writing of all deficiencies in its compliance with the
provisions of this chapter and the rules and regulations adopted
pursuant to this chapter, and shall set a reasonable length of time
for compliance by the facility.
(f) Reports on the results of each inspection, evaluation, or
consultation shall be kept on file in the department, and all
inspection reports, consultation reports, lists of deficiencies, and
plans of correction shall be open to public inspection.
(g) As a part of the department's evaluation process, the
department shall review the plan of operation, training logs, and
marketing materials of any residential care facility for the elderly
that advertises or promotes special care, special programming, or a
special environment for persons with dementia to monitor compliance
with Sections 1569.626 and 1569.627.
SEC. 4. 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 or an immediate successor in interest to property on
which a residential care facility for the elderly is located, 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 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.
(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
ombudsperson 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 the 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 ombudsperson program.
(c) (1) If a licensee fails to comply with the requirements of
subdivision (a), 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. The department shall contact any local agency that
may have placement or advocacy responsibility for the residents, and
shall work 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. If
the licensee fails to provide the relocation services required in
subdivisions (a) and (b), 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.
(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,
corporation, or immediate successor in interest to property on which
a residential care facility for the elderly is located, who owns,
operates, establishes, manages, conducts, maintains, or takes 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 fees. This 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 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 1569.686 is added to the Health and Safety Code,
to read:
1569.686. (a) Within 24 hours of any event, or obtaining
knowledge of any event, described in subdivision (b), the licensee of
a residential care facility for the elderly shall notify the
department in writing of the event. This notification may be provided
by telephone facsimile, overnight mail, or by telephone with a
written confirmation within five calendar days after the telephone
call.
(b) Any of the following events requires notification pursuant to
this section:
(1) Failure to make one or more mortgage payments on the property.
(2) Failure to make timely payment of any premiums required to
maintain mandated insurance policies or bonds in effect, or any tax
lien levied by any government agency.
(3) A utility company has sent notice of intent to terminate a
utility on the property.
(4) A judgment lien has been levied against the facility or any of
the assets of the facility or licensee.
(5) A financial institution refuses to honor a check or other
instrument issued by the licensee to its employees for a regular
payroll.
(6) The financial resources of the licensee fall below the amount
needed to operate the facility for a period of at least 45 days based
on the current occupancy of the facility.
(7) A notice of foreclosure is issued on the property.
(8) An unlawful detainer action is initiated against the licensee.
(9) The licensee files for bankruptcy.
(c) A licensee shall notify all residents and, if applicable,
their legal representatives, within 24 hours of any of the following
events, or knowledge of the event:
(1) A notice of foreclosure is issued on the property.
(2) An unlawful detainer action is initiated against the licensee.
(3) The licensee files for bankruptcy.
(d) A licensee shall notify applicants and potential residents,
prior to admission, of any of the following events, or knowledge of
the event:
(1) A notice of foreclosure is issued on the property.
(2) An unlawful detainer action is initiated against the licensee.
(3) The licensee files for bankruptcy.
(e) A licensee who fails to comply with this section shall be
liable for civil penalties in the amount of one hundred dollars
($100) for each day of the failure to provide notification required
in this section. If the failure to notify has compromised
the health or safety of a resident or led to the relocation of any
residents, the in this section. If residents are
relocated without the adequate notification required by this
section, or if the health or safety of a resident has been
compromised as a result of a relocation that has occurred withou
t adequate notification, the department may also
suspend or revoke the licensee's license and issue a permanent
revocation of the licensee's ability to operate a facility anywhere
in the state.
(f) For purposes of this section, "property" means the land or
building in which a residential care facility for the elderly is
located.
SEC. 6. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
