BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2066
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 2066 (Monning)
          As Amended  June 14, 2012
          Majority vote
           
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          |ASSEMBLY:  |70-0 |(May 25, 2012)  |SENATE: |36-0 |(August 9,     |
          |           |     |                |        |     |2012)          |
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           Original Committee Reference:    HUM. S.  

           SUMMARY  :  Establishes procedures to be followed in the event of 
          revocation of a license to operate a residential care facility 
          for the elderly (RCFE) and 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.  
          Additionally, requires DSS to provide other information as 
          necessary related to the revocation requirements, and requires 
          the licensee to provide adequate notice to each RCFE resident 
          and their responsible person, as specified.

           The Senate amendments  add language exempting DSS and the 
          licensee from having to follow notification procedures as 
          proposed to be established by this measure should the licensee 
          have its license revoked due to health and safety violations as 
          specified in the Health and Safety Code Section 1596.50 
           
          EXISTING LAW  :

          1)Provides, under the Residential Care Facilities for the 
            Elderly Act, for the licensure and regulation of RCFEs by DSS, 
            Community Care Licensing Division.

          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.








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          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  :  According to the Senate Appropriations 
          Committee, pursuant to Senate Rule 28.8, negligible state costs. 
          
          
           AS PASSED BY THE ASSEMBLY  , this bill revised the revocation 
          procedures for RCFE licensed facilities to provide separate 
          procedures for when they voluntarily surrender their license or 
          have their license revoked. 

           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 
          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, 








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          "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.

          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.

           
          Analysis Prepared by  :    Chris Reefe  / HUM. S. / (916) 319-2089 



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