Amended in Assembly April 1, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 1523


Introduced by Assembly Members Atkins and Weber

(Principal coauthor: Assembly Member Maienschein)

(Coauthors: Assembly Members Ian Calderon, Skinner, and Waldron)

(Coauthors: Senators Block and Corbett)

January 17, 2014


An act to add Section 1569.605 to the Health and Safety Code, relating to residential care facilities for the elderly.

LEGISLATIVE COUNSEL’S DIGEST

AB 1523, as amended, Atkins. Residential care facilities for the elderly: liability insurance.

Existing law provides for the licensure and regulation of residential care facilities for the elderly by the State Department of Social Services, including requiring, as a condition of licensure, bonds issued by a surety company for a licensee that handles the moneys of a person in the facility. Violation of these provisions is a misdemeanor.

This billbegin insert, on and after July 1, 2015,end insert would require all residential care facilities for the elderly to maintain either liability insurance in an amount of at least $1,000,000 per occurrence and $3,000,000 in the annual aggregate or a bond in the aggregate amount of $3,000,000begin insert to cover injury to residents or guests caused by the negligent acts or omissions to act of, or neglect by, the licensee or its employeesend insert. 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:

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SECTION 1.  

Section 1569.605 is added to the Health and
2Safety Code
, to read:

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1569.605.  

begin deleteAll end deletebegin insertOn and after July 1, 2015, all end insertresidential care
4facilities for the elderly, except those facilities that are an integral
5part of a continuing care retirement community, shall maintain
6either liability insurance covering injury to residents and guests
7in the amount of at least one million dollars ($1,000,000) per
8occurrence and three million dollars ($3,000,000) in the total
9annual aggregate,begin delete sustained on account of the acts,end deletebegin insert caused by the
10negligent acts orend insert
omissions tobegin delete act, or negligence ofend deletebegin insert end insertbegin insertact of, or
11neglect by,end insert
the licensee or its employees, or a bond in the aggregate
12amount of three million dollars ($3,000,000).

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SEC. 2.  

No reimbursement is required by this act pursuant to
14Section 6 of Article XIII B of the California Constitution because
15the only costs that may be incurred by a local agency or school
16district will be incurred because this act creates a new crime or
17infraction, eliminates a crime or infraction, or changes the penalty
18for a crime or infraction, within the meaning of Section 17556 of
19the Government Code, or changes the definition of a crime within
20the meaning of Section 6 of Article XIII B of the California
21Constitution.



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