BILL NUMBER: AB 641	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 31, 2011

INTRODUCED BY   Assembly Member Feuer

                        FEBRUARY 16, 2011

    An act to amend Section 1417.2 of the Health and Safety
Code, relating to health facilities.   An act to amend
Sections 1424, 1424.5, 1428, 1428.2, and 1429 of, and to repeal
Section 1417.5 of, the Heal   th and Safety Code, relating
to long-term health care facilities. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 641, as amended, Feuer.  Health   Long-
  term health care  facilities: civil penalties. 
   The existing Long-Term Care, Health, Safety, and Security Act of
1973 establishes an inspection and reporting system and a provisional
licensing mechanism to ensure that long-term health care facilities,
as defined, are in compliance with state statutes, regulations, and
standards pertaining to patient care. The act establishes a citation
and appeals process, that includes a citation review conference. The
act also makes a class "B" citation subject to a civil penalty in an
amount not less than $100 and not exceeding $1,000 for each and every
citation. Existing law creates the State Health Facilities Citation
Penalties Account in the Special Deposit Fund with the moneys in this
account to be used, upon appropriation, for prescribed purposes.
 
   This bill would repeal the citation review conference process and
make conforming changes. It would also increase the maximum of a
class "B" citation to $5,000.  
   Existing law establishes the State Health Facilities Citation
Penalties Account into which moneys derived from civil penalties for
violations of state law are deposited. Moneys in this account may be
used, upon appropriation by the Legislature, for the protection of
health or property of residents of long-term health care facilities,
as specified.  
   This bill would make a technical, nonsubstantive change to these
provisions. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    Section 1417.5 of the   Health
and Safety Code   is repealed.  
   1417.5.  (a) The department, in consultation with stakeholders,
shall develop recommendations to address the findings published in
the June 2010 report entitled, "Department of Public Health: It
Reported Inaccurate Financial Information and Can Likely Increase
Revenues for the State and Federal Health Facilities Citation
Penalties Accounts" (Report 2010-108). The recommendations shall
address, but not be limited to, all of the following:
   (1) Streamlining the citation appeal process, including the
citation review conference process.
   (2) Increasing citation penalty amounts, including late penalty
fees, and annually adjusting penalty amounts to reflect an inflation
indicator, such as the California Consumer Price Index.
   (3) Revising state law to enable the department to recommend that
the federal Centers for Medicare and Medicaid Services impose a
federal civil money penalty when the department's Licensing and
Certification Division determines that a facility is out of
compliance with both state and federal requirements.
   (4) Authorizing the department to collect citation penalty amounts
upon appeal of the citation and allowing the department to place
those funds into a special interest bearing account.
   (b) The department shall provide the recommendations to the fiscal
and policy committees of the Legislature no later than March 1,
2011. 
   SEC. 2.    Section 1424 of the   Health and
Safety Code   is amended to read: 
   1424.  Citations issued pursuant to this chapter shall be
classified according to the nature of the violation and shall
indicate the classification on the face thereof.
   (a) In determining the amount of the civil penalty, all relevant
facts shall be considered, including, but not limited to, the
following:
   (1) The probability and severity of the risk that the violation
presents to the patient's or resident's mental and physical
condition.
   (2) The patient's or resident's medical condition.
   (3) The patient's or resident's mental condition and his or her
history of menal disability or disorder.
   (4) The good faith efforts exercised by the facility to prevent
the violation from occurring.
   (5) The licensee's history of compliance with regulations.
   (b) Relevant facts considered by the department in determining the
amount of the civil penalty shall be documented by the department on
an attachment to the citation and available in the public record.
This requirement shall not preclude the department or a facility from
introducing facts not listed on the citation to support or challenge
the amount of the civil penalty in any proceeding set forth in
Section 1428.
   (c) Class "AA" violations are violations that meet the criteria
for a class "A" violation and that the state department determines to
have been a direct proximate cause of death of a patient or resident
of a long-term health care facility. Except as provided in Section
1424.5, a class "AA" citation is subject to a civil penalty in the
amount of not less than five thousand dollars ($5,000) and not
exceeding twenty-five thousand dollars ($25,000) for each citation.
In any action to enforce a citation issued under this subdivision,
the state department shall prove all of the following:
   (1) The violation was a direct proximate cause of death of a
patient or resident.
   (2) The death resulted from an occurrence of a nature that the
regulation was designed to prevent.
   (3) The patient or resident suffering the death was among the
class of persons for whose protection the regulation was adopted.
   If the state department meets this burden of proof, the licensee
shall have the burden of proving that the licensee did what might
reasonably be expected of a long-term health care facility licensee,
acting under similar circumstances, to comply with the regulation. If
the licensee sustains this burden, then the citation shall be
dismissed.
   Except as provided in Section 1424.5, for each class "AA" citation
within a 12-month period that has become final, the state department
shall consider the suspension or revocation of the facility's
license in accordance with Section 1294. For a third or subsequent
class "AA" citation in a facility within that 12-month period that
has been sustained following a citation review conference, the state
department shall commence action to suspend or revoke the facility's
license in accordance with Section 1294.
   (d) Class "A" violations are violations which the state department
determines present either (1) imminent danger that death or serious
harm to the patients or residents of the long-term health care
facility would result therefrom, or (2) substantial probability that
death or serious physical harm to patients or residents of the
long-term health care facility would result therefrom. A physical
condition or one or more practices, means, methods, or operations in
use in a long-term health care facility may constitute a class "A"
violation. The condition or practice constituting a class "A"
violation shall be abated or eliminated immediately, unless a fixed
period of time, as determined by the state department, is required
for correction. Except as provided in Section 1424.5, a class "A"
citation is subject to a civil penalty in an amount not less than one
thousand dollars ($1,000) and not exceeding ten thousand dollars
($10,000) for each and every citation.
   If the state department establishes that a violation occurred, the
licensee shall have the burden of proving that the licensee did what
might reasonably be expected of a long-term health care facility
licensee, acting under similar circumstances, to comply with the
regulation. If the licensee sustains this burden, then the citation
shall be dismissed.
   (e) Class "B" violations are violations that the state department
determines have a direct or immediate relationship to the health,
safety, or security of long-term health care facility patients or
residents, other than class "AA" or "A" violations. Unless otherwise
determined by the state department to be a class "A" violation
pursuant to this chapter and rules and regulations adopted pursuant
thereto, any violation of a patient's rights as set forth in Sections
72527 and 73523 of Title 22 of the California Code of Regulations,
that is determined by the state department to cause or under
circumstances likely to cause significant humiliation, indignity,
anxiety, or other emotional trauma to a patient is a class "B"
violation. A class "B" citation is subject to a civil penalty in an
amount not less than one hundred dollars ($100) and not exceeding
 one   five  thousand dollars 
($1,000)   ($5,000)  for each and every citation. A
class "B" citation shall specify the time within which the violation
is required to be corrected. If the state department establishes
that a violation occurred, the licensee shall have the burden of
proving that the licensee did what might reasonably be expected of a
long-term health care facility licensee, acting under similar
circumstances, to comply with the regulation. If the licensee
sustains this burden, then the citation shall be dismissed.
   In the event of any citation under this paragraph, if the state
department establishes that a violation occurred, the licensee shall
have the burden of proving that the licensee did what might
reasonably be expected of a long-term health care facility licensee,
acting under similar circumstances, to comply with the regulation. If
the licensee sustains this burden, then the citation shall be
dismissed.
   (f) (1) Any willful material falsification or willful material
omission in the health record of a patient of a long-term health care
facility is a violation.
   (2) "Willful material falsification," as used in this section,
means any entry in the patient health care record pertaining to the
administration of medication, or treatments ordered for the patient,
or pertaining to services for the prevention or treatment of
decubitus ulcers or contractures, or pertaining to tests and
measurements of vital signs, or notations of input and output of
fluids, that was made with the knowledge that the records falsely
reflect the condition of the resident or the care or services
provided.
   (3) "Willful material omission," as used in this section, means
the willful failure to record any untoward event that has affected
the health, safety, or security of the specific patient, and that was
omitted with the knowledge that the records falsely reflect the
condition of the resident or the care or services provided.
   (g) Except as provided in subdivision (a) of Section 1425.5, a
violation of subdivision (f) may result in a civil penalty not to
exceed ten thousand dollars ($10,000), as specified in paragraphs (1)
to (3), inclusive.
   (1) The willful material falsification or willful material
omission is subject to a civil penalty of not less than two thousand
five hundred dollars ($2,500) or more than ten thousand dollars
($10,000) in instances where the health care record is relied upon by
a health care professional to the detriment of a patient by
affecting the administration of medications or treatments, the
issuance of orders, or the development of plans of care. In all other
cases, violations of this subdivision are subject to a civil penalty
not exceeding two thousand five hundred dollars ($2,500).
   (2) Where the penalty assessed is one thousand dollars ($1,000) or
less, the violation shall be issued and enforced, except as provided
in this subdivision, in the same manner as a class "B" violation,
and shall include the right of appeal as specified in Section 1428.
Where the assessed penalty is in excess of one thousand dollars
($1,000), or for skilled nursing facilities or intermediate care
facilities as specified in paragraphs (1) and (2) of subdivision (a)
of Section 1418, in excess of two thousand dollars ($2,000), the
violation shall be issued and enforced, except as provided in this
subdivision, in the same manner as a class "A" violation, and shall
include the right of appeal as specified in Section 1428.
   Nothing in this section shall be construed as a change in previous
law enacted by Chapter 11 of the Statutes of 1985 relative to this
paragraph, but merely as a clarification of existing law.
   (3) Nothing in this subdivision shall preclude the state
department from issuing a class "A" or class "B" citation for any
violation that meets the requirements for that citation, regardless
of whether the violation also constitutes a violation of this
subdivision. However, no single act, omission, or occurrence may be
cited both as a class "A" or class "B" violation and as a violation
of this subdivision.
   (h) Where the licensee has failed to post the notices as required
by Section 9718 of the Welfare and Institutions Code in the manner
required under Section 1422.6, the state department shall assess the
licensee a civil penalty in the amount of one hundred dollars ($100)
for each day the failure to post the notices continues. Where the
total penalty assessed is less than two thousand dollars ($2,000),
the violation shall be issued and enforced in the same manner as a
class "B" violation, and shall include the right of appeal as
specified in Section 1428. Where the assessed penalty is equal to or
in excess of two thousand dollars ($2,000), the violation shall be
issued and enforced in the same manner as a class "A" violation and
shall include the right of appeal as specified in Section 1428. Any
fines collected pursuant to this subdivision shall be used to fund
the costs incurred by the California Department of Aging in producing
and posting the posters.
   (i) The director shall prescribe procedures for the issuance of a
notice of violation with respect to violations having only a minimal
relationship to patient safety or health.
   (j) The department shall provide a copy of all citations issued
under this section to the affected residents whose treatment was the
basis for the issuance of the citation, to the affected residents'
designated family member or representative of each of the residents,
and to the complainant if the citation was issued as a result of a
complaint.
   (k) Nothing in this section is intended to change existing
statutory or regulatory requirements governing the ability of a
licensee to contest a citation pursuant to Section 1428.
   (  l  ) The department shall ensure that district office
activities performed under Sections 1419 to 1424, inclusive, are
consistent with the requirements of these sections and all applicable
laws and regulations. To ensure the integrity of these activities,
the department shall establish a statewide process for the collection
of postsurvey evaluations from affected facilities.
   SEC. 3.    Section 1424.5 of the   Health
and Safety Code   is amended to read: 
   1424.5.  (a) In lieu of the fines specified in subdivisions (c),
(d), and (e) of Section 1424, fines imposed on skilled nursing
facilities or intermediate care facilities, as specified in
paragraphs (1) and (2) of subdivision (a) of Section 1418, shall be
as follows:
   (1) A class "AA" citation is subject to a civil penalty in an
amount not less than twenty-five thousand dollars ($25,000) and not
exceeding one hundred thousand dollars ($100,000) for each and every
citation. For a second or subsequent class "AA" citation in a skilled
nursing facility or intermediate care facility within a 24-month
period  that has been sustained following a citation review
conference, or where the licensee has chosen not to exercise its
right to a citation review conference  , the state
department shall commence action to suspend or revoke the facility's
license in accordance with Section 1294.
   (2) A class "A" citation is subject to a civil penalty in an
amount not less than two thousand dollars ($2,000) and not exceeding
twenty thousand dollars ($20,000) for each and every citation.
   (3) Any "willful material falsification" or "willful material
omission," as those terms are defined in subdivision (f) of Section
1424, in the health record of a resident is subject to a civil
penalty in an amount not less than two thousand dollars ($2,000) and
not exceeding twenty thousand dollars ($20,000) for each and every
citation.
   (b) A licensee may, in lieu of contesting a class "AA" or class "A"
citation pursuant to Section 1428, transmit to the state department,
the minimum amount specified by law, or 65 percent of the amount
specified in the citation, whichever is greater, for each violation,
within 30 business days after the issuance of the citation.
   SEC. 4.    Section 1428 of the   Health and
Safety Code   is amended to read: 
   1428.  (a) If the licensee desires to contest a citation or the
proposed assessment of a civil penalty therefor, the licensee shall
use the processes described in subdivisions (b) and (c) for classes
"AA," "A," or "B" citations.  As a result of a citation
review conference, a citation or the proposed assessment of a civil
penalty may be affirmed, modified, or dismissed by the director or
the director's designee. If the director's designee affirms,
modifies, or dismisses the citation or proposed assessment of a civil
penalty, he or she shall state with particularity in writing his or
her reasons for that action, and shall immediately transmit a copy
thereof to each party to the original complaint. If the licensee
desires to contest a decision made after the citation review
conference, the licensee shall inform the director in writing within
15 business days after he or she receives the decision by the
director's designee.
   (b) If a licensee  notifies the director that he or she
 intends to contest a class "AA" or a class "A" citation,
the licensee  may first, within 15 business days after
service of the citation, notify the director in writing of his or her
request for a citation review conference. The licensee 
shall inform the director in writing, within 15 business days of the
service of the citation  or the receipt of the decision of
the director's designee after the citation review conference,
 of the licensee's intent to adjudicate the validity of the
citation in the superior court in the county in which the long-term
health care facility is located. In order to perfect a judicial
appeal of a contested citation, a licensee shall file a civil action
in the superior court in the county in which the long-term health
care facility is located. The action shall be filed no later than 90
calendar days after a licensee notifies the director that he or she
intends to contest the citation,  or no later than 90 days
after the receipt of the decision by the director's designee after
the citation review conference,  and served not later than
90 days after filing. Notwithstanding any other provision of law, a
licensee prosecuting a judicial appeal shall file and serve a case
management statement pursuant to Rule 212 of the California Rules of
Court within six months after the department files its answer in the
appeal. Notwithstanding subdivision (d), the court shall dismiss the
appeal upon motion of the department if the case management statement
is not filed by the licensee within the period specified. The court
may affirm, modify, or dismiss the citation, the level of the
citation, or the amount of the proposed assessment of the civil
penalty.
   (c) If a licensee desires to contest a class "B" citation, the
licensee  may request, within 15 business days after service
of the citation, a citation review conference, by writing the
director or the director's designee of the licensee's intent to
appeal the citation through the citation review conference. If the
licensee wishes to appeal the citation which has been upheld in a
citation review conference, the licensee  shall, within 15
working days  from the date the citation review conference
decision was rendered   after service of   the
citation  , notify the director or the director's designee that
he or she wishes to appeal the  decision  
citation  through the procedures set forth in Section 100171 or
elects to submit the matter to binding arbitration in accordance with
subdivision (d). The administrative law judge may affirm, modify, or
dismiss the citation or the proposed assessment of a civil penalty.
The licensee may choose to have his or her appeal heard by the
administrative law judge or submit the matter to binding arbitration
without having first appealed the decision to a citation review
conference by notifying the director in writing within 15 business
days of the service of the citation.
   (d) If a licensee is dissatisfied with the decision of the
administrative law judge, the licensee may, in lieu of seeking
judicial review of the decision as provided in Section 1094.5 of the
Code of Civil Procedure, elect to submit the matter to binding
arbitration by filing, within 60 days of its receipt of the decision,
a request for arbitration with the American Arbitration Association.
The parties shall agree upon an arbitrator designated from the
American Arbitration Association in accordance with the association's
established rules and procedures. The arbitration hearing shall be
set within 45 days of the election to arbitrate, but in no event less
than 28 days from the date of selection of an arbitrator. The
arbitration hearing may be continued up to 15 additional days if
necessary at the arbitrator's discretion. Except as otherwise
specifically provided in this subdivision, the arbitration hearing
shall be conducted in accordance with the American Arbitration
Association's established rules and procedures. The arbitrator shall
determine whether the licensee violated the regulation or regulations
cited by the department, and whether the citation meets the criteria
established in Sections 1423 and 1424. If the arbitrator determines
that the licensee has violated the regulation or regulations cited by
the department, and that the class of the citation should be upheld,
the proposed assessment of a civil penalty shall be affirmed,
subject to the limitations established in Section 1424. The licensee
and the department shall each bear its respective portion of the cost
of arbitration. A resident, or his or her designated representative,
or both, entitled to participate in the citation review conference
pursuant to subdivision (f), may make an oral or written statement
regarding the citation, at any arbitration hearing to which the
matter has been submitted after the citation review conference.
   (e) If an appeal is prosecuted under this section, including an
appeal taken in accordance with Section 100171, the department shall
have the burden of establishing by a preponderance of the evidence
that (1) the alleged violation did occur, (2) the alleged violation
met the criteria for the class of citation alleged, and (3) the
assessed penalty was appropriate. The department shall also have the
burden of establishing by a preponderance of the evidence that the
assessment of a civil penalty should be upheld.  If a
licensee fails to notify the director in writing that he or she
intends to contest the citation, or the proposed assessment of a
civil penalty therefor, or the decision made by the director's
designee, after a citation review conference, within the time
specified in this section, the decision by the director's designee
after a citation review conference shall be deemed a final order of
the department and shall not be subject to further administrative
review, except that the licensee may seek judicial relief from the
time limits specified in this section. If a licensee appeals
a contested citation or the assessment of a civil penalty, no civil
penalty shall be due and payable unless and until the appeal is
terminated in favor of the department. 
   (f) The director or the director's designee shall establish an
independent unit of trained citation review conference hearing
officers within the department to conduct citation review
conferences. Citation review conference hearing officers shall be
directly responsible to the deputy director for licensing and
certification, and shall not be concurrently employed as supervisors,
district administrators, or regional administrators with the
licensing and certification division. Specific training shall be
provided to members of this unit on conducting an informal
conference, with emphasis on the regulatory and legal aspects of
long-term health care.  
   Where the department issues a citation as a result of a complaint
or regular inspection visit, and a resident or residents are
specifically identified in a citation by name as being specifically
affected by the violation, then the following persons may attend the
citation review conference:  
   (1) The complainant and his or her designated representative.
 
   (2) A personal health care provider, designated by the resident.
 
   (3) A personal attorney.  
   (4) Any person representing the Office of the State Long-Term Care
Ombudsman, as referred to in subdivision (d) of Section 9701 of the
Welfare and Institutions Code. 
   Where the department determines that residents in the facility
were threatened by the cited violation but does not name specific
residents, any person representing the Office of the State Long-Term
Care Ombudsman, as referred to in subdivision (d) of Section 9701 of
the Welfare and Institutions Code, and a representative of the
residents or family council at the facility may participate to
represent all residents. In this case, these representatives shall be
the sole participants for the residents in the conference. The
residents or family council shall designate which representative will
participate.  
   The complainant, affected resident, and their designated
representatives shall be notified by the department of the conference
and their right to participate. The director's designee shall notify
the complainant or his or her designated representative and the
affected resident or his or her designated representative, of his or
her determination based on the citation review conference. 

   (g) 
    (f)  In assessing the civil penalty for a violation, all
relevant facts shall be considered, including, but not limited to,
all of the following:
   (1) The probability and severity of the risk which the violation
presents to the patient's or resident's mental and physical
condition.
   (2) The patient's or resident's medical condition.
   (3) The patient's or resident's mental condition and his or her
history of mental disability.
   (4) The good faith efforts exercised by the facility to prevent
the violation from occurring.
   (5) The licensee's history of compliance with regulations.

   (h) 
    (g)  Except as otherwise provided in this subdivision,
an assessment of civil penalties for a class "A" or class "B"
violation shall be trebled and collected for a second and subsequent
violation for which a citation of the same class was issued within
any 12-month period. Trebling shall occur only if the first citation
issued within the 12-month period was issued in the same class, a
civil penalty was assessed, and a plan of correction was submitted
for the previous same-class violation occurring within the period,
without regard to whether the action to enforce the previous citation
has become final. However, the increment to the civil penalty
required by this subdivision shall not be due and payable unless and
until the previous action has terminated in favor of the department.
   If the class "B" citation is issued for a patient's rights
violation, as defined in subdivision (e) of Section 1424, it shall
not be trebled unless the department determines the violation has a
direct or immediate relationship to the health, safety, security, or
welfare of long-term health care facility residents. 
                                                          (i)

    (h)  The director shall prescribe procedures for the
issuance of a notice of violation with respect to violations having
only a minimal relationship to safety or health. 
   (j) 
    (i)  Actions brought under this chapter shall be set for
trial at the earliest possible date and shall take precedence on the
court calendar over all other cases except matters to which equal or
superior precedence is specifically granted by law. Times for
responsive pleading and for hearing the proceeding shall be set by
the judge of the court with the object of securing a decision as to
subject matters at the earliest possible time. 
   (k) 
    (j)  If the citation is dismissed, the department shall
take action immediately to ensure that the public records reflect in
a prominent manner that the citation was dismissed. 
   (  l  )
    (k)  Penalties paid on violations under this chapter
shall be applied against the department's accounts to offset any
costs incurred by the state pursuant to this chapter. Any costs or
penalties assessed pursuant to this chapter shall be paid within 30
days of the date the decision becomes final. If a facility does not
comply with this requirement, the state department shall withhold any
payment under the Medi-Cal program until the debt is satisfied. No
payment shall be withheld if the department determines that it would
cause undue hardship to the facility or to patients or residents of
the facility. 
   (m) 
    (l)  The amendments made to subdivisions (a) and (c) of
this section by Chapter 84 of the Statutes of 1988, to extend the
number of days allowed for the provision of notification to the
director, do not affect the right, that is also contained in those
amendments, to request judicial relief from these time limits.
   SEC. 5.    Section   1428.2 of the 
 Health and Safety Code   is amended to read: 
   1428.2.  In the case of a class "A" or class "AA" citation issued
to a long-term health care facility which is appealed, the citation
shall expire and have no further legal effect, if the Attorney
General has not filed an action in the court of competent
jurisdiction, within one year from the date the facility notifies the
State Department of  Public  Health  Services
 of its intent to contest the citation in court. 
Notwithstanding the time limit prescribed in subdivision (a) of
Section 1428, at the facility's request, the department shall conduct
a citation review conference within 35 days from the date of the
request for a citation review conference. Unless a conference is
requested by the facility, this section shall not require the
department to conduct the conference within the 35-day period. The
hearing officer shall issue the decision within 30 days of the
citation review conference. 
   SEC. 6.    Section 1429 of the   Health and
Safety Code   is amended to read: 
   1429.  (a) Each class "AA" and class "A" citation specified in
subdivisions (c) and (d) of Section 1424 that is issued, or a copy or
copies thereof, shall be prominently posted for 120 days. The
citation or copy shall be posted in a place or places in plain view
of the patients or residents in the long-term health care facility,
persons visiting those patients or residents, and persons who inquire
about placement in the facility.
   (1) The citation shall be posted in at least the following
locations in the facility:
   (A) An area accessible and visible to members of the public.
   (B) An area used for employee breaks.
   (C) An area used by residents for communal functions, such as
dining, resident council meetings, or activities.
   (2) The citation, along with a cover sheet, shall be posted on a
white or light-colored sheet of paper, at least 81/2 by 11 inches in
size, that includes all of the following information:
   (A) The full name of the facility, in a clear and easily readable
font in at least 28-point type.
   (B) The full address of the facility, in a clear and easily
readable font in at least 20-point type.
   (C) Whether the citation is class "AA" or class "A."
   (3) The facility may post the plan of correction.
   (4) The facility may post a statement disputing the citation or a
statement showing the appeal status, or both.
   (5) The facility may remove and discontinue the posting required
by this section if the citation is withdrawn or dismissed by the
department  , or is dismissed as a result of a citation
review conference  .
   (b) Each class "B" citation specified in subdivision (e) of
Section 1424 that is issued pursuant to this section and that has
become final, or a copy or copies thereof, shall be retained by the
licensee at the facility cited until the violation is corrected to
the satisfaction of the department. Each citation shall be made
promptly available by the licensee for inspection or examination by
any member of the public who so requests. In addition, every licensee
shall post in a place or places in plain view of the patient or
resident in the long-term health care facility, persons visiting
those patients or residents, and persons who inquire about placement
in the facility, a prominent notice informing those persons that
copies of all final uncorrected citations issued by the department to
the facility will be made promptly available by the licensee for
inspection by any person who so requests.
   (c) A violation of this section shall constitute a class "B"
violation, and shall be subject to a civil penalty in the amount of
one thousand dollars ($1,000), as provided in subdivision (e) of
Section 1424. Notwithstanding Section 1290, a violation of this
section shall not constitute a crime. Fines imposed pursuant to this
section shall be deposited into the State Health Facilities Citation
Penalties Account, created pursuant to Section 1417.2. 
  SECTION 1.    Section 1417.2 of the Health and
Safety Code is amended to read:
   1417.2.  (a) Notwithstanding Section 1428, moneys collected as a
result of state and federal civil penalties imposed under this
chapter or federal law shall be deposited into accounts that are
hereby established in the Special Deposit Fund created pursuant to
Section 16370 of the Government Code. These accounts are titled the
State Health Facilities Citation Penalties Account, into which moneys
derived from civil penalties for violations of state law shall be
deposited, and the Federal Health Facilities Citation Penalties
Account, into which moneys derived from civil penalties for
violations of federal law shall be deposited. Moneys from these
accounts shall be used, notwithstanding Section 16370 of the
Government Code, upon appropriation by the Legislature, in accordance
with state and federal law for the protection of health or property
of residents of long-term health care facilities, including, but not
limited to, the following:
   (1) Relocation expenses incurred by the department, in the event
of a facility closure.
   (2) Maintenance of facility operation pending correction of
deficiencies or closure, including, but not limited to, temporary
management or receivership, in the event that the revenues of the
facility are insufficient.
   (3) Reimbursing residents for personal funds lost. In the event
that the loss is a result of the actions of a long-term health care
facility or its employees, the revenues of the facility shall first
be used.
   (4) The costs associated with informational meetings required
under Section 1327.2.
   (b) Notwithstanding subdivision (a), the balance in the State
Health Facilities Citation Penalties Account shall not, at any time,
exceed ten million dollars ($10,000,000).
   (c) Moneys from the Federal Health Facilities Citation Penalties
Account, in the amount not to exceed one hundred thirty thousand
dollars ($130,000), may also be used, notwithstanding Section 16370
of the Government Code, upon appropriation by the Legislature, in
accordance with state and federal law for the improvement of quality
of care and quality of life for long-term health care facilities
residents pursuant to Section 1417.3.
   (d) The department shall post on its Internet Web site, and shall
update on a quarterly basis, all of the following regarding the funds
in the State Health Facilities Citation Penalties Account and the
Federal Health Facilities Citation Penalties Account:
   (1) The specific sources of funds deposited into the account.
   (2) The amount of funds in the account that have not been
allocated.
   (3) A detailed description of how funds in the account have been
allocated and expended, including, but not limited to, the names of
persons or entities that received the funds, the amount of salaries
paid to temporary managers, and a description of equipment purchased
with the funds. However, the description shall not include the names
of residents.