BILL NUMBER: SB 1662	CHAPTERED  09/09/04

	CHAPTER  401
	FILED WITH SECRETARY OF STATE  SEPTEMBER 9, 2004
	APPROVED BY GOVERNOR  SEPTEMBER 9, 2004
	PASSED THE SENATE  AUGUST 17, 2004
	PASSED THE ASSEMBLY  AUGUST 12, 2004
	AMENDED IN ASSEMBLY  JULY 15, 2004
	AMENDED IN ASSEMBLY  JUNE 24, 2004
	AMENDED IN SENATE  MAY 24, 2004
	AMENDED IN SENATE  APRIL 12, 2004
	AMENDED IN SENATE  MARCH 22, 2004

INTRODUCED BY   Senator Soto

                        FEBRUARY 20, 2004

   An act to add Section 1569.657 to the Health and Safety Code,
relating to residential care facilities for the elderly.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1662, Soto.  Residential care facilities for the elderly:
rates.
   Existing law regulates the licensure and operation of residential
care facilities for the elderly, including setting forth the basic
services a facility is required to provide.  Existing law requires a
licensee of a residential care facility for the elderly that
increases the rates of fees for residents or makes increases in any
of its rate structures for services to provide no less than 60 days'
prior written notice to the resident or the resident's
representative, setting forth the amount of the increase, the reason
for the increase, and a general description of the additional costs,
except for an increase in the rate due to a change in the level of
care of the resident.  A violation of the provisions relating to the
licensure or operation of a residential care facility for the elderly
is a crime.
   This bill would require the licensee to provide the resident or
the representative a written notice of a rate increase that is due to
a change in the level of care within 2 business days after the
change in the level of care.
   This bill would make its provisions inapplicable to a provider who
has entered into one or more continuing care contracts at a licensed
residential care facility for the elderly pursuant to a certificate
of authority, as defined, and to any resident who is a recipient of
benefits under the State Supplementary Program for Aged, Blind and
Disabled.
   Because a violation of this bill's provisions would be a crime
under existing law, this bill would impose a state-mandated local
program by changing the definition of a crime.
  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.


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


  SECTION 1.  Section 1569.657 is added to the Health and Safety
Code, to read:
   1569.657.  (a) For any rate increase due to a change in the level
of care of the resident, the licensee shall provide the resident and
the resident's representative, if any, written notice of the rate
increase within two business days after initially providing services
at the new level of care.  The notice shall include a detailed
explanation of the additional services to be provided at the new
level of care and an accompanying itemization of the charges.
   (b) This section shall not apply to any resident of the facility
who is a recipient of benefits pursuant to Article 5 (commencing with
Section 12200) of Chapter 3 of Part 3 of Division 9 of the Welfare
and Institutions Code under the State Supplementary Program for Aged,
Blind and Disabled.
   (c) This section shall not apply to a provider who has entered
into one or more continuing care contracts at a licensed residential
care facility for the elderly pursuant to a certificate of authority,
as defined in paragraph (5) of subdivision (c) of Section 1771.
  SEC. 2.  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.