Amended in Senate June 18, 2013

Amended in Assembly April 1, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 261

Introduced by Assembly Member Chesbro

February 7, 2013

An act to amend Section 1569.884 of, and to add Section 1569.652 to the Health and Safety Code, relating to residential care facilities for the elderly.

LEGISLATIVE COUNSEL’S DIGEST

AB 261, as amended, Chesbro. Residential care facilities for the elderly: fees and charges.

Existing law provides for the licensure and regulation of residential care facilities for the elderly, as defined, by the State Department of Social Services, including, among other things, regulation of fees and charges. Existing law requires the admission agreement for a residential care facility for the elderly to contain specified elements. Under existing law, a violation of any of these provisions is punishable as a misdemeanor.

This bill would prohibit a residential care facility for the elderly from requiring advance notice for terminating an admission agreement upon the death of a resident, would prohibit begin delete the facility from assessing any fees end delete begin insert the accrual of any fees end insert once all personal property of the deceased is removed from the facility, and would prohibit the facility from impeding the removal of a deceased resident’s personal begin delete belongings, end delete begin insert property, end insert as specified. The bill would require a residential care facility for the elderly to issue a refund of any fees paid in advance, covering the time after a deceased resident’s begin delete belongings have end delete begin insert personal property has end insert been removed, within 15 days of begin delete those belongings end delete begin insert that property end insert being removed. The bill would also require a residential care facility for the elderly to, within 3 days of becoming aware of a resident’s death, provide written notice to specified persons of the facility’s policies regarding contract termination at death and refunds, and to include in the admission agreement the conditions under which those refunds will be issued. The bill would exempt from these provisions fees charged by a continuing care equity project or begin delete to end delete amounts deducted from entrance fee refunds or repayment, as defined.

By creating a new 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.  

Section 1569.652 is added to the Health and
Safety Code, to read:

1569.652.  

(a) A residential care facility for the elderly shall
not require advance notice for terminating an admission agreement
upon the death of a resident. begin delete A residential care facility for the
elderly shall not assess any fees end delete begin insert No fees shall accrue end insert once all
personal property belonging to the deceased resident is removed
from the living unit.

(b) Upon the death of a resident, a licensee shall not impede the
removal of the resident’s personal begin delete belongings end delete begin insert property end insert from the
facility during reasonable hours by an individual or individuals
authorized by the resident or the resident’s responsible person, as
identified in the admission agreement or begin delete addendum, end delete begin insert attachment, end insert
or by a begin delete representative of the resident’s estate. end delete begin insert court-appointed
executor or administrator of the decedent’s estate, if applicable. end insert

(c) A refund of any fees paid in advance covering the time after
the begin delete belongings have end delete begin insert resident’s personal property has end insert been removed
from the facility shall be issued to the individual, individuals, or
entity contractually responsible for the fees or, if the deceased
resident paid the fees, to the resident’s estate, within 15 days after
begin delete those belongings are end delete begin insert the personal property is end insert removed.

(d) If fees are assessed while a resident’s begin delete belongings remain end delete
begin insert personal property remains end insert in a unit after the resident is deceased,
a licensee shall, within three days of becoming aware of the
resident’s death, provide to the resident’s responsible person begin insert , or
other individual or individuals as identified in the admission
agreement or attachment, end insert written notice of the facility’s policies
regarding contract termination upon death and refunds.

(e) This section shall not apply to fees charged by a continuing
care equity project as defined in paragraph (6) of subdivision begin delete (c) end delete
begin insert (e) end insert of Section 1771 or begin delete to end delete amounts deducted from entrance fee
refunds or repayments described in paragraph (2) of subdivision
(r) of Section 1771.

SEC. 2.  

Section 1569.884 of the Health and Safety Code is
amended to read:

1569.884.  

The admission agreement shall include all of the
following:

(a) A comprehensive description of any items and services
provided under a single fee, such as a monthly fee for room, board,
and other items and services.

(b) A comprehensive description of, and the fee schedule for,
all items and services not included in a single fee. In addition, the
agreement shall indicate that the resident shall receive a monthly
statement itemizing all separate charges incurred by the resident.

(c) A facility may assess a separate charge for an item or service
only if that separate charge is authorized by the admission
agreement. If additional services are available through the facility
to be purchased by the resident that were not available at the time
the admission agreement was signed, a list of these services and
charges shall be provided to the resident or the resident’s
representative. A statement acknowledging the acceptance or
refusal to purchase the additional services shall be signed and dated
by the resident or the resident’s representative and attached to the
admission agreement.

(d) An explanation of the use of third-party services within the
facility that are related to the resident’s service plan, including,
but not limited to, ancillary, health, and medical services, how
they may be arranged, accessed, and monitored, any restrictions
on third-party services, and who is financially responsible for the
third-party services.

(e) A comprehensive description of billing and payment policies
and procedures.

(f) The conditions under which rates may be increased pursuant
to Section 1569.655.

(g) The facility’s policy concerning family visits and other
communication with residents, pursuant to Section 1569.313.

(h) The facility’s policy concerning refunds, including the
conditions under which a refund for advanced monthly fees will
be returned in the event of a resident’s death, pursuant to Section
1569.652.

(i) Conditions under which the agreement may be terminated.

(j) An explanation of the facility’s responsibility to prepare a
relocation evaluation, for each resident and a closure plan and to
provide notice in the case of an eviction pursuant to Section
1569.682.

SEC. 3.  

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.