BILL ANALYSIS Ó
AB 2066
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Date of Hearing: April 10, 2012
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Jim Beall Jr., Chair
AB 2066 (Monning) - As Amended: March 27, 2012
SUBJECT : Residential care facilities for the elderly:
revocation of licenses
SUMMARY : Establishes procedures to be followed in the event of
revocation of a license to operate a residential care facility
for the elderly (RCFE). Specifically, this bill :
1)Requires the Department of Social Services (DSS) to do the
following in the event of a determination to revoke an RCFE
license to protect the residents:
a) Make every effort to minimize trauma for residents;
b) Contact any local agency that may have placement or
advocacy responsibility for the residents of an RCFE after
the decision is made and work with these agencies to locate
alternative placement sites and to contact responsible
relatives; and,
c) Use appropriate medical personnel to provide onsite
evaluation of the residents and assist in their transfer.
2)Authorizes DSS to require the licensee to prepare and submit a
written plan for relocation and compliance with the terms and
conditions of the approved plans, and to provide other
information as necessary related to the revocation
requirements.
3)Requires the following upon an order to revoke an RCFE
license:
a) Requires the licensee to provide a 60-day notice of
closure to each resident and his or her responsible person
within 24 hours of receipt of the notice of revocation from
DSS.
b) Requires DSS to permit the licensee to secure the
services of a person or entity who is not an immediate
family member of the licensee or an entity owned by the
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licensee to manage the day-to-day operations of the RCFE
for a period of at least 60 days, provided the licensee
submits a proposal to DSS within 72 hours of receipt of the
revocation order that includes:
i) A completed application for a facility license; and,
ii) An executed agreement with the person or entity that
delineates respective roles and responsibilities and
specifies that the person or entity shall have full
authority necessary to operate the facility in compliance
with all applicable laws and regulations.
c) Requires that the person or entity secured to manage the
RCFE be currently licensed and in substantial compliance to
operate an RCFE of comparable size or greater and has
comparable programming. For this purpose defines the
following terms:
i) "Comparable programming includes, but is not limited
to, dementia care, hospice care, and care for residents
with exempted prohibited health care conditions.
ii) "Comparable size" means a facility capacity of 1 to
15 residents, 16 to 49 residents, or 50 or more
residents.
d) Exempts the third party person or entity from an
application fee.
e) Provides that a denial of a proposal to secure the
services of a third party person or entity shall not be
deemed a denial of a license application subject to hearing
or other procedural rights.
4)Authorizes DSS to amend the effective date in the revocation
order and to pursue other available remedies necessary to
protect the health and safety of residents.
EXISTING LAW
1)Under the Residential Care Facilities for the Elderly Act,
provides for the licensure and regulation of RCFEs by DSS,
Community Care Licensing Division.
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2)Authorizes DSS to take enforcement action, including, but not
limited to, actions to suspend, temporarily suspend, or revoke
a license and to impose civil penalties for violations of
rules and regulations established under licensing provisions
governing RCFEs.
3)Requires that, prior to surrendering its license or otherwise
transferring residents to another facility or independent
living arrangement, the RCFE licensee provide residents or
their responsible person with written notice no later than 60
days prior to the eviction, and provide relocation assistance.
4)Requires the DSS to contact any local agency that may have
placement or advocacy responsibility for the residents of an
RCFE and make every effort to minimize trauma for residents if
the director determines it is necessary to temporarily suspend
the facility's license.
5)Requires an RCFE to provide residents, their responsible
party, and the local long-term care ombudsman with a written
notice when DSS commences proceedings to suspend or revoke its
license, or a criminal action relating to health or safety of
the residents is brought against the facility.
6)Requires the licensee to take all reasonable steps to transfer
affected residents safely as the result of the revocation of
an RCFE license.
FISCAL EFFECT : Unknown
COMMENTS : RCFEs are licensed assisted living facilities for
persons 60 years of age and over and persons under 60 with
compatible needs. Varying levels of care and supervision,
protective supervision, or personal care are provided, based
upon residents' needs. As of March 2012, there were 7,655
licensed RCFEs in the state with a total capacity of 171,809
residents. According to DSS, approximately 80% of RCFEs are
licensed for six or fewer residents; the remaining RCFEs have an
average licensed capacity of approximately 60 residents.
Need for this bill : This bill addresses an unintended problem
with a bill enacted last year, AB 313 (Monning), Chapter 365,
Statutes of 2011. AB 313 added license revocations to the
statute requiring that, prior to surrendering its license or
otherwise transferring residents to another facility or
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independent living arrangement, an RCFE licensee provide
residents or their responsible person with written notice no
later than 60 days prior to the eviction. As the author notes,
"Ýw]hile a 60-day notice of closure is appropriate in a
voluntary forfeiture situation, it is not always appropriate
when a license has been revoked." The author further says:
First, when DSS, through its Community Care Licensing
Division, makes the decision to revoke a license, it
is considered the final remedy in a series of
on-going, unresolved deficiencies that put residents'
health and safety at risk. Allowing residents to
continue to live in this environment may actually be
detrimental to their health. Second, the licensee may
no longer be willing or able to meet the needs of the
residents for the next 60 days. Third, there is an
increased risk that care staff will begin leaving the
RCFE for other employment once license revocation is
announced.
This bill removes provisions related to license revocations from
the 60-day notice statute applicable to voluntary forfeitures
and establishes procedures to be followed in the case of a
revocation. In addition to providing for 60 days' notice to
residents and their representatives, this bill permits the
licensee, within 72 hours of receiving a revocation order, to
submit for DSS approval a proposal for a qualified third-party
manager to administer the day-to-day operations of the facility
during the 60-day closure period. The third party must be
currently licensed to operate a program of comparable size with
comparable programming, as specified. This process will give
residents more time to find other housing, and afford additional
time to potentially identify another licensed operator for the
RCFE thereby avoiding resident relocation entirely.
Should the provider not identify a qualified person or entity to
manage the RCFE during the 60-day period, the closure and
resident relocation would proceed, pursuant to any written plan
for relocation required by DSS. This bill provides that DSS may
amend the effective date in the revocation order or pursue any
other available remedies necessary to protect the health and
safety of the residents.
DOUBLE REFERRAL . This bill has been double-referred. Should
this bill pass out of this committee, it will be referred to the
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Aging and Long-Term Care Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
Aging Services of California
California Assisted Living Association
Opposition
None on File.
Analysis Prepared by : Eric Gelber / HUM. S. / (916) 319-2089