Amended in Senate August 22, 2014

Amended in Senate June 26, 2014

Amended in Assembly May 23, 2014

Amended in Assembly April 22, 2014

Amended in Assembly March 24, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1899

Introduced by Assembly Member Brown

February 19, 2014

An act to amend Sections 1569.19, 1569.50, and 1569.682 of the Health and Safety Code, relating to residential care facilities.

LEGISLATIVE COUNSEL’S DIGEST

AB 1899, as amended, Brown. Residential care facilities for the elderly.

Existing law, the California Residential Care Facilities for the Elderly Act, provides for the licensure and regulation of residential care facilities for the elderly by the State Department of Social Services.

Existing law sets forth the qualifications of a licensee and requires a license to be forfeited by operation of law when the licensee abandons the facility. Existing law also authorizes the department to deny an application for, or to suspend or revoke a license upon specified grounds, including conduct inimical to the health, morals, welfare, or safety of an individual in or receiving services from a facility. Existing law authorizes a person whose license has been revoked to petition the department for reinstatement of the license after one year has elapsed since the revocation. Under existing law, if an application for a license indicates that the applicant was previously issued a license to operate a residential care facility for the elderly or specified other licenses, and that license was revoked within the last 2 years, the department is required to cease reviewing the application until 2 years has elapsed since the revocation.

This bill would additionally exclude a licensee, who abandons the residential care facility for the elderly and the residents in care resulting in an immediate and substantial threat to the health and safety of the abandoned residents, from licensure in facilities licensed by the department without the right to petition for reinstatement.

Existing law requires a licensee of a licensed residential care facility for the elderly, prior to transferring a resident of the facility to another facility or to an independent living arrangement as a result of a license forfeiture due to abandonment of the facility, among other things, or begin insert due to end insert a change of use of the facility pursuant to the department’s regulations, to take all reasonable steps to transfer affected residents safely, to minimize possible transfer trauma, and to take specified actions. A licensee who fails to comply with these requirements is subject to certain penalties, including, but not limited to, civil penalties in the amount of $100 per violation per day for each day that the licensee is in violation, until the violation has been corrected.

This bill, on and after January 1, 2015, would additionally exclude a licensee, who fails to comply with the above provisions and abandons the residential care facility for the elderly and the residents in care resulting in an immediate and substantial threat to the health and safety of the abandoned residents, from licensure in facilities licensed by the department without the right to petition for reinstatement.

begin insert

This bill would incorporate changes to Section 1569.682 of the Health and Safety Code as proposed by either AB 1477 or SB 873 of the 2013-14 Regular Session that would only become operative if either AB 1477 or SB 873 is enacted and becomes effective immediately, either bill amends Section 1569.682 of the Health and Safety Code, and this bill is enacted after either bill.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 1569.19 of the Health and Safety Code
is amended to read:

1569.19.  

A license shall be forfeited by operation of law prior
to its expiration date when one of the following occurs:

(a) The licensee sells or otherwise transfers the facility or facility
property, except when change of ownership applies to transferring
of stock when the facility is owned by a corporation and when the
transfer of stock does not constitute a majority change in
ownership. The sale of a facility shall be subject to the requirements
of this chapter.

(b) The licensee surrenders the license to the department.

(c) The licensee moves a facility from one location to another.
The department shall develop regulations to ensure that the
facilities are not charged a full licensing fee and do not have to
complete the entire application process when applying for a license
for the new location.

(d) The licensee is convicted of an offense specified in Section
220, 243.4, or 264.1, or paragraph (1) of Section 273a, Section
273d, 288, or 289 of the Penal Code, or is convicted of another
crime specified in subdivision (c) of Section 667.5 of the Penal
Code.

(e) The licensee dies. When a licensee dies, the continued
operation shall be subject to the requirements of Section 1569.193.

(f) The licensee abandons the facility. A licensee who abandons
the facility and the residents in care resulting in an immediate and
substantial threat to the health and safety of the abandoned
residents, in addition to forfeiture of the license pursuant to this
section, shall be excluded from licensure in facilities licensed by
the department without the right to petition for reinstatement.

SEC. 2.  

Section 1569.50 of the Health and Safety Code is
amended to read:

1569.50.  

(a) The department may deny an application for a
license or may suspend or revoke a license issued under this chapter
upon any of the following grounds and in the manner provided in
this chapter:

(1) Violation by the licensee of this chapter or of the rules and
regulations adopted under this chapter.

(2) Aiding, abetting, or permitting the violation of this chapter
or of the rules and regulations adopted under this chapter.

(3) Conduct that is inimical to the health, morals, welfare, or
safety of either an individual in or receiving services from the
facility or the people of the State of California.

(4) The conviction of a licensee, or other person mentioned in
Section 1569.17 at any time before or during licensure, of a crime
as defined in Section 1569.17.

(5) Engaging in acts of financial malfeasance concerning the
operation of a facility, including, but not limited to, improper use
or embezzlement of client moneys and property or fraudulent
appropriation for personal gain of facility moneys and property,
or willful or negligent failure to provide services for the care of
clients.

(b) The director may temporarily suspend a license, prior to a
hearing when, in the opinion of the director, the action is necessary
to protect residents or clients of the facility from physical or mental
abuse, abandonment, or any other substantial threat to health or
safety. The director shall notify the licensee of the temporary
suspension and the effective date of the temporary suspension and
at the same time shall serve the provider with an accusation. Upon
receipt of a notice of defense to the accusation by the licensee, the
director shall, within 15 days, set the matter for hearing, and the
hearing shall be held as soon as possible but not later than 30 days
after receipt of the notice. The temporary suspension shall remain
in effect until the time the hearing is completed and the director
has made a final determination on the merits. However, the
temporary suspension shall be deemed vacated if the director fails
to make a final determination on the merits within 30 days after
the original hearing has been completed.

(c) A licensee who abandons the facility and the residents in
care resulting in an immediate and substantial threat to the health
and safety of the abandoned residents, in addition to revocation of
the license pursuant to this section, shall be excluded from licensure
in facilities licensed by the department without the right to petition
for reinstatement.

SEC. 3.  

Section 1569.682 of the Health and Safety Code begin delete is end delete begin insert , as end insert
amended begin insert by Section 27 of Chapter 29 of the Statutes of 2014, is
amended end insert to read:

1569.682.  

(a) A licensee of a licensed residential care facility
for the elderly shall, prior to transferring a resident of the facility
to another facility or to an independent living arrangement as a
result of the forfeiture of a license, as described in subdivision (a),
(b), or (f) of Section 1569.19, or a change of use of the facility
pursuant to the department’s regulations, take all reasonable steps
to transfer affected residents safely and to minimize possible
transfer trauma, and shall, at a minimum, do all of the following:

(1) Prepare, for each resident, a relocation evaluation of the
needs of that resident, which shall include both of the following:

(A) Recommendations on the type of facility that would meet
the needs of the resident based on the current service plan.

(B) A list of facilities, within a 60-mile radius of the resident’s
current facility, that meet the resident’s present needs.

(2) Provide each resident or the resident’s responsible person
with a written notice no later than 60 days before the intended
eviction. The notice shall include all of the following:

(A) The reason for the eviction, with specific facts to permit a
determination of the date, place, witnesses, and circumstances
concerning the reasons.

(B) A copy of the resident’s current service plan.

(C) The relocation evaluation.

(D) A list of referral agencies.

(E) The right of the resident or resident’s legal representative
to contact the department to investigate the reasons given for the
eviction pursuant to Section 1569.35.

(F) The contact information for the local long-term care
ombudsman, including address and telephone number.

(3) Discuss the relocation evaluation with the resident and his
or her legal representative within 30 days of issuing the notice of
eviction.

(4) Submit a written report of any eviction to the licensing
agency within five days.

(5) Upon issuing the written notice of eviction, a licensee shall
not accept new residents or enter into new admission agreements.

(6) (A) For paid preadmission fees in excess of five hundred
dollars ($500), the resident is entitled to a refund in accordance
with all of the following:

(i) A 100-percent refund if preadmission fees were paid within
six months of notice of eviction.

(ii) A 75-percent refund if preadmission fees were paid more
than six months but not more than 12 months before notice of
eviction.

(iii) A 50-percent refund if preadmission fees were paid more
than 12 months but not more than 18 months before notice of
eviction.

(iv) A 25-percent refund if preadmission fees were paid more
than 18 months but less than 25 months before notice of eviction.

(B) No preadmission refund is required if preadmission fees
were paid 25 months or more before the notice of eviction.

(C) The preadmission refund required by this paragraph shall
be paid within 15 days of issuing the eviction notice. In lieu of the
refund, the resident may request that the licensee provide a credit
toward the resident’s monthly fee obligation in an amount equal
to the preadmission fee refund due.

(7) If the resident gives notice five days before leaving the
facility, the licensee shall refund to the resident or his or her legal
representative a proportional per diem amount of any prepaid
monthly fees at the time the resident leaves the facility and the
unit is vacated. Otherwise the licensee shall pay the refund within
seven days from the date that the resident leaves the facility and
the unit is vacated.

(8) Within 10 days of all residents having left the facility, the
licensee, based on information provided by the resident or
resident’s legal representative, shall submit a final list of names
and new locations of all residents to the department and the local
ombudsman program.

(b) If seven or more residents of a residential care facility for
the elderly will be transferred as a result of the forfeiture of a
license or change in the use of the facility pursuant to subdivision
(a), the licensee shall submit a proposed closure plan to the
department for approval. The department shall approve or
disapprove the closure plan, and monitor its implementation, in
accordance with the following requirements:

(1) Upon submission of the closure plan, the licensee shall be
prohibited from accepting new residents and entering into new
admission agreements for new residents.

(2) The closure plan shall meet the requirements described in
subdivision (a), and describe the staff available to assist in the
transfers. The department’s review shall include a determination
as to whether the licensee’s closure plan contains a relocation
evaluation for each resident.

(3) Within 15 working days of receipt, the department shall
approve or disapprove the closure plan prepared pursuant to this
subdivision, and, if the department approves the plan, it shall
become effective upon the date the department grants its written
approval of the plan.

(4) If the department disapproves a closure plan, the licensee
may resubmit an amended plan, which the department shall
promptly either approve or disapprove, within 10 working days
of receipt by the department of the amended plan. If the department
fails to approve a closure plan, it shall inform the licensee, in
writing, of the reasons for the disapproval of the plan.

(5) If the department fails to take action within 20 working days
of receipt of either the original or the amended closure plan, the
plan, or amended plan, as the case may be, shall be deemed
approved.

(6) Until such time that the department has approved a licensee’s
closure plan, the facility shall not issue a notice of transfer or
require any resident to transfer.

(7) Upon approval by the department, the licensee shall send a
copy of the closure plan to the local ombudsman program.

(c) (1) If a licensee fails to comply with the requirements of
this section, and if the director determines that it is necessary to
protect the residents of a facility from physical or mental abuse,
abandonment, or any other substantial threat to health or safety,
the department shall take any necessary action to minimize trauma
for the residents, including caring for the residents through the use
of a temporary manager as provided for in Section 1569.481 when
the director determines the immediate relocation of the residents
is not feasible based on transfer trauma or other considerations
such as the unavailability of alternative placements. The department
shall contact any local agency that may have assessment placement,
protective, or advocacy responsibility for the residents, and shall
work together with those agencies to locate alternative placement
sites, contact relatives or other persons responsible for the care of
these residents, provide onsite evaluation of the residents, and
assist in the transfer of residents.

(2) The participation of the department and local agencies in
the relocation of residents from a residential care facility for the
elderly shall not relieve the licensee of any responsibility under
this section. A licensee that fails to comply with the requirements
of this section shall be required to reimburse the department and
local agencies for the cost of providing the relocation services or
the costs incurred in caring for the residents through the use of a
temporary manager as provided for in Section 1569.481. If the
licensee fails to provide the relocation services required in this
section, then the department may request that the Attorney
General’s office, the city attorney’s office, or the local district
attorney’s office seek injunctive relief and damages in the same
manner as provided for in Chapter 5 (commencing with Section
17200) of Part 2 of Division 7 of the Business and Professions
Code, including restitution to the department of any costs incurred
in caring for the residents through the use of a temporary manager
as provided for in Section 1569.481.

(d) A licensee who fails to comply with requirements of this
section shall be liable for the imposition of civil penalties in the
amount of one hundred dollars ($100) per violation per day for
each day that the licensee is in violation of this section, until such
time that the violation has been corrected. The civil penalties shall
be issued immediately following the written notice of violation.
However, if the violation does not present an immediate or
substantial threat to the health or safety of residents and the licensee
corrects the violation within three days after receiving the notice
of violation, the licensee shall not be liable for payment of any
civil penalties pursuant to this subdivision related to the corrected
violation.

(e) A licensee, on and after January 1, 2015, who fails to comply
with this section and abandons the facility and the residents in care
resulting in an immediate and substantial threat to the health and
safety of the abandoned residents, in addition to forfeiture of the
license pursuant to Section 1569.19, shall be excluded from
licensure in facilities licensed by the department without the right
to petition for reinstatement.

(f) A resident of a residential care facility for the elderly covered
under this begin delete section, end delete begin insert section end insert may bring a civil action against any
person, firm, partnership, or corporation who owns, operates,
establishes, manages, conducts, or maintains a residential care
facility for the elderly who violates the rights of a resident, as set
forth in this section. Any person, firm, partnership, or corporation
who owns, operates, establishes, manages, conducts, or maintains
a residential care facility for the elderly who violates this section
shall be responsible for the acts of the facility’s employees and
shall be liable for costs and attorney’s fees. Any such residential
care facility for the elderly may also be enjoined from permitting
the violation to continue. The remedies specified in this section
shall be in addition to any other remedy provided by law.

(g) This section shall not apply to a licensee that has obtained
a certificate of authority to offer continuing care contracts, as
defined in paragraph (8) of subdivision (c) of Section 1771.

begin insert

begin insert SEC. 3.5. end insert   

end insert

begin insert Section 1569.682 of the end insert begin insert Health and Safety Code end insert begin insert , as
proposed to be amended by AB 1477 or SB 873 of the 2013-14
Regular Session, is amended to read: end insert

1569.682.  

(a) A licensee of a licensed residential care facility
for the elderly shall, prior to transferring a resident of the facility
to another facility or to an independent living arrangement as a
result of the forfeiture of a license, as described in subdivision (a),
(b), or (f) of Section 1569.19, or a change of use of the facility
pursuant to the department’s regulations, take all reasonable steps
to transfer affected residents safely and to minimize possible
transfer trauma, and shall, at a minimum, do all of the following:

(1) Prepare, for each resident, a relocation evaluation of the
needs of that resident, which shall include both of the following:

(A) Recommendations on the type of facility that would meet
the needs of the resident based on the current service plan.

(B) A list of facilities, within a 60-mile radius of the resident’s
current facility, that meet the resident’s present needs.

(2) Provide each resident or the resident’s responsible person
with a written notice no later than 60 days before the intended
eviction. The notice shall include all of the following:

(A) The reason for the eviction, with specific facts to permit a
determination of the date, place, witnesses, and circumstances
concerning the reasons.

(B) A copy of the resident’s current service plan.

(C) The relocation evaluation.

(D) A list of referral agencies.

(E) The right of the resident or resident’s legal representative
to contact the department to investigate the reasons given for the
eviction pursuant to Section 1569.35.

(F) The contact information for the local long-term care
ombudsman, including address and telephone number.

(3) Discuss the relocation evaluation with the resident and his
or her legal representative within 30 days of issuing the notice of
eviction.

(4) Submit a written report of any eviction to the licensing
agency within five days.

(5) Upon issuing the written notice of eviction, a licensee shall
not accept new residents or enter into new admission agreements.

(6) (A) For paid preadmission fees in excess of five hundred
dollars ($500), the resident is entitled to a refund in accordance
with all of the following:

(i) A 100-percent refund if preadmission fees were paid within
six months of notice of eviction.

(ii) A 75-percent refund if preadmission fees were paid more
than six months but not more than 12 months before notice of
eviction.

(iii) A 50-percent refund if preadmission fees were paid more
than 12 months but not more than 18 months before notice of
eviction.

(iv) A 25-percent refund if preadmission fees were paid more
than 18 months but less than 25 months before notice of eviction.

(B) No preadmission refund is required if preadmission fees
were paid 25 months or more before the notice of eviction.

(C) The preadmission refund required by this paragraph shall
be paid within 15 days of issuing the eviction notice. In lieu of the
refund, the resident may request that the licensee provide a credit
toward the resident’s monthly fee obligation in an amount equal
to the preadmission fee refund due.

(7) If the resident gives notice five days before leaving the
facility, the licensee shall refund to the resident or his or her legal
representative a proportional per diem amount of any prepaid
monthly fees at the time the resident leaves the facility and the
unit is vacated. Otherwise the licensee shall pay the refund within
seven days from the date that the resident leaves the facility and
the unit is vacated.

(8) Within 10 days of all residents having left the facility, the
licensee, based on information provided by the resident or
resident’s legal representative, shall submit a final list of names
and new locations of all residents to the department and the local
ombudsman program.

(b) If seven or more residents of a residential care facility for
the elderly will be transferred as a result of the forfeiture of a
license or change in the use of the facility pursuant to subdivision
(a), the licensee shall submit a proposed closure plan to the
department for approval. The department shall approve or
disapprove the closure plan, and monitor its implementation, in
accordance with the following requirements:

(1) Upon submission of the closure plan, the licensee shall be
prohibited from accepting new residents and entering into new
admission agreements for new residents.

(2) The closure plan shall meet the requirements described in
subdivision (a), and describe the staff available to assist in the
transfers. The department’s review shall include a determination
as to whether the licensee’s closure plan contains a relocation
evaluation for each resident.

(3) Within 15 working days of receipt, the department shall
approve or disapprove the closure plan prepared pursuant to this
subdivision, and, if the department approves the plan, it shall
become effective upon the date the department grants its written
approval of the plan.

(4) If the department disapproves a closure plan, the licensee
may resubmit an amended plan, which the department shall
promptly either approve or disapprove, within 10 working days
of receipt by the department of the amended plan. If the department
fails to approve a closure plan, it shall inform the licensee, in
writing, of the reasons for the disapproval of the plan.

(5) If the department fails to take action within 20 working days
of receipt of either the original or the amended closure plan, the
plan, or amended plan, as the case may be, shall be deemed
approved.

(6) Until such time that the department has approved a licensee’s
closure plan, the facility shall not issue a notice of transfer or
require any resident to transfer.

(7) Upon approval by the department, the licensee shall send a
copy of the closure plan to the local ombudsman program.

(c) (1) If a licensee fails to comply with the requirements of
this section, or if the director determines that it is necessary to
protect the residents of a facility from physical or mental abuse,
abandonment, or any other substantial threat to health or safety,
the department shall take any necessary action to minimize trauma
for the residents, including caring for the residents through the use
of a temporary manager or receiver as provided for in Sections
1569.481 and 1569.482 when the director determines the immediate
relocation of the residents is not feasible based on transfer trauma
or other considerations such as the unavailability of alternative
placements. The department shall contact any local agency that
may have assessment placement, protective, or advocacy
responsibility for the residents, and shall work together with those
agencies to locate alternative placement sites, contact relatives or
other persons responsible for the care of these residents, provide
onsite evaluation of the residents, and assist in the transfer of
residents.

(2) The participation of the department and local agencies in
the relocation of residents from a residential care facility for the
elderly shall not relieve the licensee of any responsibility under
this section. A licensee that fails to comply with the requirements
of this section shall be required to reimburse the department and
local agencies for the cost of providing the relocation services or
the costs incurred in caring for the residents through the use of a
temporary manager or receiver as provided for in Sections
1569.481 and 1569.482. If the licensee fails to provide the
relocation services required in this section, then the department
may request that the Attorney General’s office, the city attorney’s
office, or the local district attorney’s office seek injunctive relief
and damages in the same manner as provided for in Chapter 5
(commencing with Section 17200) of Part 2 of Division 7 of the
Business and Professions Code, including restitution to the
department of any costs incurred in caring for the residents through
the use of a temporary manager or receiver as provided for in
Sections 1569.481 and 1569.482.

(d) A licensee who fails to comply with requirements of this
section shall be liable for the imposition of civil penalties in the
amount of one hundred dollars ($100) per violation per day for
each day that the licensee is in violation of this section, until such
time that the violation has been corrected. The civil penalties shall
be issued immediately following the written notice of violation.
However, if the violation does not present an immediate or
substantial threat to the health or safety of residents and the licensee
corrects the violation within three days after receiving the notice
of violation, the licensee shall not be liable for payment of any
civil penalties pursuant to this subdivision related to the corrected
violation.

begin insert

(e) A licensee, on and after January 1, 2015, who fails to comply
with this section and abandons the facility and the residents in
care resulting in an immediate and substantial threat to the health
and safety of the abandoned residents, in addition to forfeiture of
the license pursuant to Section 1569.19, shall be excluded from
licensure in facilities licensed by the department without the right
to petition for reinstatement.

end insert begin delete

(e)

end delete

begin insert (f) end insert  A resident of a residential care facility for the elderly covered
under this begin delete section, end delete begin insert section end insert may bring a civil action against any
person, firm, partnership, or corporation who owns, operates,
establishes, manages, conducts, or maintains a residential care
facility for the elderly who violates the rights of a resident, as set
forth in this section. Any person, firm, partnership, or corporation
who owns, operates, establishes, manages, conducts, or maintains
a residential care facility for the elderly who violates this section
shall be responsible for the acts of the facility’s employees and
shall be liable for costs and attorney’s fees. Any such residential
care facility for the elderly may also be enjoined from permitting
the violation to continue. The remedies specified in this section
shall be in addition to any other remedy provided by law.

begin delete

(f)

end delete

begin insert (g) end insert  This section shall not apply to a licensee that has obtained
a certificate of authority to offer continuing care contracts, as
defined in paragraph (8) of subdivision (c) of Section 1771.

begin insert

begin insert SEC. 4. end insert   

end insert begin insert

Section 3.5 of this bill incorporates amendments to
Section 1569.682 of the Health and Safety Code proposed by this
bill and either Assembly Bill 1477 or Senate Bill 873. It shall only
become operative if (1) this bill and either Assembly Bill 1477 or
Senate Bill 873 are enacted and become effective on or before
January 1, 2015, (2) each bill amends Section 1569.682 of the
Health and Safety Code, and (3) this bill is enacted after either
Assembly Bill 1477 or Senate Bill 873, in which case Section
1569.682 of the Health and Safety Code, as amended by either
Assembly Bill 1477 or Senate Bill 873, shall remain operative only
until the operative date of this bill, at which time Section 3.5 of
this bill shall become operative, and Section 3 of this bill shall not
become operative.

end insert