BILL NUMBER: AB 261 CHAPTERED
BILL TEXT
CHAPTER 290
FILED WITH SECRETARY OF STATE SEPTEMBER 9, 2013
APPROVED BY GOVERNOR SEPTEMBER 9, 2013
PASSED THE SENATE AUGUST 15, 2013
PASSED THE ASSEMBLY AUGUST 19, 2013
AMENDED IN SENATE JUNE 18, 2013
AMENDED IN ASSEMBLY APRIL 1, 2013
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, 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 the accrual of
any fees 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 property, 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 personal property has been removed, within 15
days of that property 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 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.
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. No fees shall accrue 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 property 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 attachment, or by a court-appointed executor
or administrator of the decedent's estate, if applicable.
(c) A refund of any fees paid in advance covering the time after
the resident's personal property has 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 the
personal property is removed.
(d) If fees are assessed while a resident's personal property
remains 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, or other individual or
individuals as identified in the admission agreement or attachment,
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 (e) of
Section 1771 or 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.