Amended in Assembly August 22, 2014

Amended in Assembly August 12, 2014

Senate BillNo. 873


Introduced by Committee on Budget and Fiscal Review

January 9, 2014


An act tobegin insert add Chapter 7 (commencing with Section 155) to Title 1 of Part 1 of the Code of Civil Procedure, to add Section 757 to the Evidence Code, toend insert amend Sections 1546.1, 1546.2, 1569.481, 1569.482, and 1569.682 of the Health and Safety Code, to amend Sections 11461.3, 11462.04, 11477, and 12300.4 ofbegin insert, and to add Chapter 5.6 (commencing with Section 13300) to Part 3 of Division 9 of,end insert the Welfare and Institutions Code, and to amend Section 88 of Chapter 29 of the Statutes of 2014, relating to human services, and making an appropriation therefor, to take effect immediately, bill related to the budget.

LEGISLATIVE COUNSEL’S DIGEST

SB 873, as amended, Committee on Budget and Fiscal Review. Human services.

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(1) Existing federal law, the Immigration and Nationality Act, establishes a procedure for classification of certain aliens as special immigrants who have been declared dependent on a juvenile court, and authorizes those aliens who have been granted special immigrant juvenile status to apply for an adjustment of status to that of a lawful permanent resident within the United States. Under federal regulations, state juvenile courts are charged with making a preliminary determination of the child’s dependency, as specified. Existing federal regulations define juvenile court to mean a court located in the United States having jurisdiction under state law to make judicial determinations about the custody and care of juveniles.

end insert
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Existing law establishes the jurisdiction of the juvenile court, which may adjudge a minor to be a dependent or ward of the court. Existing law also establishes the jurisdiction of the probate court. Existing law regulates the establishment and termination of guardianships in probate court, and specifies that a guardian has the care, custody, and control of a ward. Existing law establishes the jurisdiction of the family court, which may make determinations about the custody of children.

end insert
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This bill would provide that the superior court, including the juvenile, probate, or family court division of the superior court, has jurisdiction to make judicial determinations regarding the custody and care of juveniles within the meaning of the federal Immigration and Nationality Act. The bill would require the superior court to make an order containing the necessary findings regarding special immigrant juvenile status pursuant to federal law, if there is evidence to support those findings. The bill would require records of these proceedings that are not otherwise protected by state confidentiality laws to remain confidential, and would also authorize the sealing of these records. The bill would require the Judicial Council to adopt any rules and forms needed to implement these provisions.

end insert
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(2) Existing federal law, Title VI of the federal Civil Rights Act of 1964 and the Safe Streets Act of 1968, prohibit national origin discrimination by recipients of federal assistance.

end insert

begin insertThe California Constitution provides that a person unable to understand English who is charged with a crime has the right to an interpreter throughout the proceedings. Existing law requires that court interpreters’ fees or other compensation be paid by the court in criminal cases, and by the litigants in civil cases, as specified. Existing law requires, in any action or proceeding under specified provisions of the Family Code relating to domestic violence, an interpreter to be provided by the court for a party who does not proficiently speak or understand the English language to interpret the proceedings in a language that the party understands and to assist communication between the party and his or her attorney.end insert

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This bill would state that existing law and authority to provide interpreters in civil court includes providing an interpreter for a child in a proceeding in which a petitioner requests an order from the superior court to make the findings regarding special immigrant juvenile status.

end insert
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(1)

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begin insert(3)end insert Under existing law, the State Department of Social Services regulates the licensure and operation of various types of facilities, including community care facilities and residential care facilities for the elderly.

Existing law authorizes the department to appoint a temporary manager to assume the operation of a community care facility or residential care facility for the elderly for 60 days, subject to extension by the department, when specified circumstances exist. To the extent department funds are used for the costs of the temporary manager or related expenses, existing law requires the department to be reimbursed from the revenues accruing to the facility or to the licensee, and to the extent those revenues are insufficient, requires that the unreimbursed amount constitute a lien upon the asset of the facility or the proceeds from the sale of the facility.

Existing law also authorizes the department to apply for a court order appointing a receiver to temporarily operate a community care facility or a residential care facility for the elderly for no more than 3 months, subject to extension by the department, when certain circumstances exist. To the extent that state funds are used to pay for the salary of the receiver or other related expenses, existing law requires the state be reimbursed from the revenues accruing to the facility or to the licensee or the entity related to the license, and to the extent that those revenues are insufficient, requires the unreimbursed amount constitute a lien on the assets of the facility or the proceeds from the sale of the facility.

This bill would instead provide that if the revenues are insufficient to reimburse the department for the costs of the temporary manager, the salary of the receiver, or related expenses, the unreimbursed amount shall constitute grounds for a monetary judgment in civil court and subsequent lien upon the assets of the facility or the proceeds from the sale thereof. The bill would make other related changes to these provisions. The bill would provide that liens placed against the personal and real property of a licensee for reimbursement of funds relating to the receivership be given judgment creditor priority.

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(2)

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begin insert(end insertbegin insert4end insertbegin insert)end insert Existing law requires each county to provide cash assistance and other social services to needy families through the California Work Opportunity and Responsibility to Kids (CalWORKs) program using federal Temporary Assistance to Needy Families (TANF) block grant program, state, and county funds. Existing law specifies the amounts of cash aid to be paid each month to CalWORKs recipients. Existing law continuously appropriates moneys from the General Fund to defray a portion of county costs under the CalWORKs program.

Existing law establishes the Aid to Families with Dependent Children-Foster Care (AFDC-FC) program, under which counties provide payments to foster care providers on behalf of qualified children in foster care. Under existing law, a child is eligible for AFDC-FC if he or she is placed in the approved home of a relative and is otherwise eligible for federal financial participation in the AFDC-FC payment, as specified. Existing law, beginning January 1, 2015, establishes the Approved Relative Caregiver Funding Option Program in counties choosing to participate, for the purpose of making the amount paid to relative caregivers for the in-home care of children placed with them who are ineligible for AFDC-FC payments equal to the amount paid on behalf of children who are eligible for AFDC-FC payments.

Existing law requires that the related child placed in the home meet certain requirements in order to be eligible under the Approved Relative Caregiver Funding Option Program and requires that specified funding be used for the program.

This bill would require, for purposes of this program, that the care and placement of the child be the responsibility of the county welfare department or the county probation department. The bill would also, for purposes of funding the program, delete the requirement that the funding of the applicable per-child CalWORKs grant be limited to the federal funds received.

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(3)

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begin insert(5end insertbegin insert)end insert Under existing law, foster care providers licensed as group homes have rates established by classifying each group home program and applying a standardized schedule of rates. Existing law prohibits the establishment of a new group home rate or change to an existing rate under the AFDC-FC program, except for exemptions granted by the department on a case-by-case basis. Existing law also limits, for the 2012-13 and 2013-14 fiscal years, exceptions for any program with a rate classification level below 10 to exceptions associated with a program change.

This bill would extend that limitation to the 2014-15 fiscal year.

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(4)

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begin insert(6end insertbegin insert)end insert Existing law requires each applicant or recipient to assign to the county, as a condition of eligibility for aid paid under CalWORKs, any rights to support from any other person the applicant or recipient may have on his or her own behalf, or on behalf of any other family member for whom the applicant or recipient is applying for or receiving aid, and to cooperate with the county welfare department and local child support agency in establishing the paternity of a child of the applicant or recipient born out of wedlock with respect to whom aid is claimed, and in establishing, modifying, or enforcing a support order with respect to a child of the individual for whom aid is requested or obtained. Existing law exempts from these provisions an assistance unit that excludes any adults pursuant to specified provisions of law, including a provision that makes an individual ineligible for CalWORKs aid if the individual has been convicted in state or federal court for a felony drug conviction, as specified, after December 31, 1997.

This bill would provide that if the income for an assistance unit that excludes any adults as described above includes reasonably anticipated income derived from child support, thebegin delete first $50end deletebegin insert amount established in specified provisions of lawend insert of any amount of child support received each month shall not be considered income or resources and shall not be deducted from the amount of aid to which the assistance unit otherwise would be eligible.

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(5)

end delete

begin insert(7end insertbegin insert)end insert Existing law establishes the In-Home Supportive Services (IHSS) program, administered by the State Department of Social Services and counties, under which qualified aged, blind, and disabled persons are provided with services in order to permit them to remain in their own homes and avoid institutionalization. Existing law establishes the Medi-Cal program, administered by the State Department of Health Care Services, under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid Program provisions. Existing law authorizes certain Medi-Cal recipients to receive waiver personal care services, as defined, in order to allow the recipients to remain in their own homes.

Existing law requires that in-home supportive services and waiver personal care services be performed by providers within a workweek that does not exceed 66 hours per week, as reduced by a specified net percentage.

This bill would, if certain conditions are met, deem a provider authorized to work a recipient’s county-approved adjusted hours for the week when a recipient’s weekly authorized hours are adjusted and at the time of adjustment the recipient currently receives all authorized hours of services from one provider.

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Existing law also requires the State Department of Health Care Services, if the provider of authorized waiver personal care services cannot provide authorized in-home supportive services to a recipient as a result of the above-described workweek limitation, to work with the recipient to engage additional providers, as necessary.

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This bill would delete that provision and instead require the State Department of Health Care Services to take all necessary and timely steps, and to timely inform the recipient of the steps that will be taken, to ensure that recipients receiving services pursuant to the Nursing Facility/Acute Hospital Waiver or the In-Home Operations Waiver who are at or near the individual cost cap do not lose services and are not forced to alter existing provider relationships because of increased overtime pay for providers, including allowing the recipient to exceed the individual cost cap.

end insert
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(8) Existing federal law, the Homeland Security Act of 2002, empowers the Director of the Office of Refugee Resettlement of the federal Department of Health and Human Services with functions under the immigration laws of the United States with respect to the care of unaccompanied alien children, as defined, including, but not limited to, coordinating and implementing the care and placement of unaccompanied alien children who are in federal custody by reason of their immigration status, including developing a plan to be submitted to Congress on how to ensure that qualified and independent legal counsel is timely appointed to represent the interests of each child, as provided. Existing law designates the State Department of Social Services as the single agency with full power to supervise every phase of the administration of public social services, except health care services and medical assistance.

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This bill would require the State Department of Social Services, subject to the availability of funding, to contract with qualified nonprofit legal services organizations to provide legal services to unaccompanied undocumented minors, as defined, who are transferred to the care and custody of the federal Office of Refugee Resettlement and who are present in this state. The bill would require that the contracts awarded meet certain conditions.

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(6)

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begin insert(9end insertbegin insert)end insert Existing law authorizes the State Department of Social Services to implement specified provisions ofbegin delete theend delete Chapter 29 of the Statutes of 2014 through all-county letters or similar instructions and requires the department to adopt emergency regulations implementing these provisions no later than January 1, 2016.

This bill would extend that authorization for all-county letters and similar instructions to additional provisions of Chapter 29 of the Statutes of 2014 that relate to the CalFresh program.

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(10) This bill would provide that its provisions are severable.

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(11) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

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This bill would make legislative findings to that effect.

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(12) This bill would incorporate additional changes to Section 1569.682 of the Health and Safety Code made by this bill and AB 1899, to take effect if both bills are chaptered and this bill is chaptered last.

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(7)

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begin insert(13end insertbegin insert)end insert Item 5180-151-0001 of Section 2.00 of the Budget Act of 2014 appropriated $1,435,400,000 to the State Department of Social Services for local assistance for children and adult services, which includes, among other things, increased costs associated with cases of child abuse and neglect and revised federal requirements for child welfare case reviews, and funds for the Commercially Sexually Exploited Children Program. Item 5180-153-0001 of Section 2.00 of the Budget Act of 2014 also appropriated $1,901,000 to the State Department of Social Services for local assistance for increased costs associated with revised county collection and reporting activities for cases of child abuse and neglect and revised federal requirements for child welfare case reviews.

This bill would revise these items by increasing the appropriation in Item 5180-151-0001 by $1,686,000 for the Commercially Sexually Exploited Children Program, and by reducing the appropriation in Item 5180-153-0001 by $1,686,000.

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(8)

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begin insert(14end insertbegin insert)end insert This bill would provide that the continuous appropriation applicable to CalWORKs is not made for purposes of implementing the bill.

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(9)

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begin insert(15end insertbegin insert)end insert This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

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

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

P8    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertChapter 7 (commencing with Section 155) is
2added to Title 1 of Part 1 of the end insert
begin insertCode of Civil Procedureend insertbegin insert, to read:end insert

begin insert

3 

4Chapter  begin insert7.end insert Special Immigrant Juvenile Findings
5

 

6

begin insert155.end insert  

(a) A superior court has jurisdiction under California
7law to make judicial determinations regarding the custody and
8care of children within the meaning of the federal Immigration
9and Nationality Act (8 U.S.C. Sec. 1101(a)(27)(J) and 8 C.F.R.
10Sec. 204.11), which includes, but is not limited to, the juvenile,
11probate, and family court divisions of the superior court. These
12courts may make the findings necessary to enable a child to petition
13the United States Citizenship and Immigration Service for
14classification as a special immigrant juvenile pursuant to Section
151101 (a)(27)(J) of Title 8 of the United States Code.

16(b) (1) If an order is requested from the superior court making
17the necessary findings regarding special immigrant juvenile status
18pursuant to Section 1101(a)(27)(J) of Title 8 of the United States
19Code, and there is evidence to support those findings, which may
20consist of, but is not limited to, a declaration by the child who is
21the subject of the petition, the court shall issue the order, which
22shall include all of the following findings:

23(A) The child was either of the following:

24(i) Declared a dependent of the court.

25(ii) Legally committed to, or placed under the custody of, a state
26agency or department, or an individual or entity appointed by the
27court. The court shall indicate the date on which the dependency,
28commitment, or custody was ordered.

29(B) That reunification of the child with one or both of the child’s
30parents was determined not to be viable because of abuse, neglect,
31abandonment, or a similar basis pursuant to California law. The
32court shall indicate the date on which reunification was determined
33not to be viable.

34(C) That it is not in the best interest of the child to be returned
35to the child’s, or his or her parent’s, previous country of nationality
36or country of last habitual residence.

37(2) If requested by a party, the court may make additional
38findings that are supported by evidence.

P9    1(c) In any judicial proceedings in response to a request that the
2superior court make the findings necessary to support a petition
3for classification as a special immigrant juvenile, information
4regarding the child’s immigration status that is not otherwise
5protected by state confidentiality laws shall remain confidential
6and shall be available for inspection only by the court, the child
7who is the subject of the proceeding, the parties, the attorneys for
8the parties, the child’s counsel, and the child’s guardian.

9(d) In any judicial proceedings in response to a request that the
10superior court make the findings necessary to support a petition
11for classification as a special immigrant juvenile, records of the
12proceedings that are not otherwise protected by state
13confidentiality laws may be sealed using the procedure set forth
14in California Rules of Court 2.550 and 2.551.

15(e) The Judicial Council shall adopt any rules and forms needed
16to implement this section.

end insert
17begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 757 is added to the end insertbegin insertEvidence Codeend insertbegin insert, to read:end insert

begin insert
18

begin insert757.end insert  

Pursuant to this chapter, other applicable law, and
19existing Judicial Council policy, including the policy adopted on
20January 23, 2014, existing authority to provide interpreters in civil
21court includes the authority to provide an interpreter in a
22proceeding in which a petitioner requests an order from the
23superior court to make the findings regarding special immigrant
24juvenile status pursuant to Section 1101(a)(27)(J) of Title 8 of the
25United States Code.

end insert
26

begin deleteSECTION 1.end delete
27begin insertSEC. 3.end insert  

Section 1546.1 of the Health and Safety Code, as added
28by Section 11 of Chapter 29 of the Statutes of 2014, is amended
29to read:

30

1546.1.  

(a) (1) It is the intent of the Legislature in enacting
31this section to authorize the department to take quick, effective
32action to protect the health and safety of clients of community care
33facilities and to minimize the effects of transfer trauma that
34accompany the abrupt transfer of clients by appointing a temporary
35manager to assume the operation of a facility that is found to be
36in a condition in which continued operation by the licensee or his
37or her representative presents a substantial probability of imminent
38danger of serious physical harm or death to the clients.

39(2) A temporary manager appointed pursuant to this section
40shall assume the operation of the facility in order to bring it into
P10   1compliance with the law, facilitate a transfer of ownership to a
2new licensee, or ensure the orderly transfer of clients should the
3facility be required to close. Upon a final decision and order of
4revocation of the license or a forfeiture by operation of law, the
5department shall immediately issue a provisional license to the
6appointed temporary manager. Notwithstanding the applicable
7sections of this code governing the revocation of a provisional
8license, the provisional license issued to a temporary manager shall
9automatically expire upon the termination of the temporary
10manager. The temporary manager shall possess the provisional
11license solely for purposes of carrying out the responsibilities
12authorized by this section and the duties set forth in the written
13agreement between the department and the temporary manager.
14The temporary manager shall have no right to appeal the expiration
15of the provisional license.

16(b) For purposes of this section, “temporary manager” means
17the person, corporation, or other entity appointed temporarily by
18the department as a substitute facility licensee or administrator
19with authority to hire, terminate, reassign staff, obligate facility
20funds, alter facility procedures, and manage the facility to correct
21deficiencies identified in the facility’s operation. The temporary
22manager shall have the final authority to direct the care and
23supervision activities of any person associated with the facility,
24including superseding the authority of the licensee and the
25administrator.

26(c) The director may appoint a temporary manager when it is
27determined that it is necessary to temporarily suspend any license
28of a community care facility pursuant to Section 1550.5 and any
29of the following circumstances exist:

30(1) The immediate relocation of the clients is not feasible based
31on transfer trauma, lack of alternate placements, or other emergency
32considerations for the health and safety of the clients.

33(2) The licensee is unwilling or unable to comply with the
34requirements of Section 1556 for the safe and orderly relocation
35of clients when ordered to do so by the department.

36(d) (1) Upon appointment, the temporary manager shall
37complete its application for a license to operate a community care
38facility and take all necessary steps and make best efforts to
39eliminate any substantial threat to the health and safety to clients
40or complete the transfer of clients to alternative placements
P11   1pursuant to Section 1556. For purposes of a provisional license
2issued to a temporary manager, the licensee’s existing fire safety
3clearance shall serve as the fire safety clearance for the temporary
4manager’s provisional license.

5(2) A person shall not impede the operation of a temporary
6manager. The temporary manager’s access to, or possession of,
7the property shall not be interfered with during the term of the
8temporary manager appointment. There shall be an automatic stay
9for a 60-day period subsequent to the appointment of a temporary
10manager of any action that would interfere with the functioning
11of the facility, including, but not limited to, termination of utility
12services, attachments or set-offs of client trust funds, and
13repossession of equipment in the facility.

14(e) (1) The appointment of a temporary manager shall be
15immediately effective and shall continue for a period not to exceed
1660 days unless otherwise extended in accordance with paragraph
17(2) of subdivision (h) at the discretion of the department or
18otherwise terminated earlier by any of the following events:

19(A) The temporary manager notifies the department, and the
20department verifies, that the facility meets state and, if applicable,
21federal standards for operation, and will be able to continue to
22maintain compliance with those standards after the termination of
23the appointment of the temporary manager.

24(B) The department approves a new temporary manager.

25(C) A new operator is licensed.

26(D) The department closes the facility.

27(E) A hearing or court order ends the temporary manager
28appointment, including the appointment of a receiver under Section
291546.2.

30(F) The appointment is terminated by the department or the
31temporary manager.

32(2) The appointment of a temporary manager shall authorize
33the temporary manager to act pursuant to this section. The
34appointment shall be made pursuant to a written agreement between
35the temporary manager and the department that outlines the
36circumstances under which the temporary manager may expend
37funds. The department shall provide the licensee and administrator
38with a copy of the accusation to appoint a temporary manager at
39the time of appointment. The accusation shall notify the licensee
40of the licensee’s right to petition the Office of Administrative
P12   1Hearings for a hearing to contest the appointment of the temporary
2manager as described in subdivision (f) and shall provide the
3licensee with a form and appropriate information for the licensee’s
4use in requesting a hearing.

5(3) The director may rescind the appointment of a temporary
6manager and appoint a new temporary manager at any time that
7the director determines the temporary manager is not adhering to
8the conditions of the appointment.

9(f) (1) The licensee of a community care facility may contest
10the appointment of the temporary manager by filing a petition for
11an order to terminate the appointment of the temporary manager
12with the Office of Administrative Hearings within 15 days from
13the date of mailing of the accusation to appoint a temporary
14manager under subdivision (e). On the same day as the petition is
15filed with the Office of Administrative Hearings, the licensee shall
16serve a copy of the petition to the office of the director.

17(2) Upon receipt of a petition under paragraph (1), the Office
18of Administrative Hearings shall set a hearing date and time within
1910 business days of the receipt of the petition. The office shall
20promptly notify the licensee and the department of the date, time,
21and place of the hearing. The office shall assign the case to an
22administrative law judge. At the hearing, relevant evidence may
23be presented pursuant to Section 11513 of the Government Code.
24The administrative law judge shall issue a written decision on the
25petition within 10 business days of the conclusion of the hearing.
26The 10-day time period for holding the hearing and for rendering
27a decision may be extended by the written agreement of the parties.

28(3) The administrative law judge shall uphold the appointment
29of the temporary manager if the department proves, by a
30preponderance of the evidence, that the circumstances specified
31in subdivision (c) applied to the facility at the time of the
32appointment. The administrative law judge shall order the
33termination of the temporary manager if the burden of proof is not
34satisfied.

35(4) The decision of the administrative law judge is subject to
36judicial review as provided in Section 1094.5 of the Code of Civil
37Procedure by the superior court of the county where the facility is
38located. This review may be requested by the licensee of the facility
39or the department by filing a petition seeking relief from the order.
40The petition may also request the issuance of temporary injunctive
P13   1relief pending the decision on the petition. The superior court shall
2hold a hearing within 10 business days of the filing of the petition
3and shall issue a decision on the petition within 10 days of the
4hearing. The department may be represented by legal counsel
5within the department for purposes of court proceedings authorized
6under this section.

7(g) If the licensee of the community care facility does not protest
8the appointment or does not prevail at either the administrative
9hearing under paragraph (2) of subdivision (f) or the superior court
10hearing under paragraph (4) of subdivision (f), the temporary
11manager shall continue in accordance with subdivision (e).

12(h) (1) If the licensee of the community care facility petitions
13the Office of Administrative Hearings pursuant to subdivision (f),
14the appointment of the temporary manager by the director pursuant
15to this section shall continue until it is terminated by the
16administrative law judge or by the superior court, or it shall
17continue until the conditions of subdivision (e) are satisfied,
18whichever is earlier.

19(2) At any time during the appointment of the temporary
20manager, the director may request an extension of the appointment
21by filing a petition for hearing with the Office of Administrative
22Hearings and serving a copy of the petition on the licensee. The
23office shall proceed as specified in paragraph (2) of subdivision
24(f). The administrative law judge may extend the appointment of
25the temporary manager an additional 60 days upon a showing by
26the department that the conditions specified in subdivision (c)
27continue to exist.

28(3) The licensee or the department may request review of the
29administrative law judge’s decision on the extension as provided
30in paragraph (4) of subdivision (f).

31(i) The temporary manager appointed pursuant to this section
32shall meet the following qualifications:

33(1) Be qualified to oversee correction of deficiencies on the
34basis of experience and education.

35(2) Not be the subject of any pending actions by the department
36or any other state agency nor have ever been excluded from a
37department licensed facility or had a license or certification
38suspended or revoked by an administrative action by the
39department or any other state agency.

P14   1(3) Have no financial ownership interest in the facility and have
2no member of his or her immediate family who has a financial
3ownership interest in the facility.

4(4) Not currently serve, or within the past two years have served,
5as a member of the staff of the facility.

6(j) Payment of the costs of the temporary manager shall comply
7with the following requirements:

8(1) Upon agreement with the licensee, the costs of the temporary
9manager and any other expenses in connection with the temporary
10management shall be paid directly by the facility while the
11temporary manager is assigned to that facility. Failure of the
12licensee to agree to the payment of those costs may result in the
13payment of the costs by the department and subsequent required
14reimbursement of the department by the licensee pursuant to this
15section.

16(2) Direct costs of the temporary manager shall be equivalent
17to the sum of the following:

18(A) The prevailing fee paid by licensees for positions of the
19same type in the facility’s geographic area.

20(B) Additional costs that reasonably would have been incurred
21by the licensee if the licensee and the temporary manager had been
22in an employment relationship.

23(C) Any other reasonable costs incurred by the temporary
24manager in furnishing services pursuant to this section.

25(3) May exceed the amount specified in paragraph (2) if the
26department is otherwise unable to attract a qualified temporary
27manager.

28(k) (1) The responsibilities of the temporary manager may
29include, but are not limited to, the following:

30(A) Paying wages to staff. The temporary manager shall have
31the full power to hire, direct, manage, and discharge employees
32of the facility, subject to any contractual rights they may have.
33The temporary manager shall pay employees at the same rate of
34compensation, including benefits, that the employees would have
35received from the licensee or wages necessary to provide adequate
36staff for the protection of clients and compliance with the law.

37(B) Preserving client funds. The temporary manager shall be
38entitled to, and shall take possession of, all property or assets of
39clients that are in the possession of the licensee or administrator
40of the facility. The temporary manager shall preserve all property,
P15   1assets, and records of clients of which the temporary manager takes
2possession.

3(C) Contracting for outside services as may be needed for the
4operation of the facility. Any contract for outside services in excess
5of five thousand dollars ($5,000) shall be approved by the director.

6(D) Paying commercial creditors of the facility to the extent
7required to operate the facility. The temporary manager shall honor
8all leases, mortgages, and secured transactions affecting the
9building in which the facility is located and all goods and fixtures
10in the building, but only to the extent of payments that, in the case
11of a rental agreement, are for the use of the property during the
12period of the temporary management, or that, in the case of a
13purchase agreement, come due during the period of the temporary
14management.

15(E) Doing all things necessary and proper to maintain and
16operate the facility in accordance with sound fiscal policies. The
17temporary manager shall take action as is reasonably necessary to
18protect or conserve the assets or property of which the temporary
19manager takes possession and may use those assets or property
20only in the performance of the powers and duties set out in this
21section.

22(2) Expenditures by the temporary manager in excess of five
23thousand dollars ($5,000) shall be approved by the director. Total
24encumbrances and expenditures by the temporary manager for the
25duration of the temporary management shall not exceed the sum
26of forty-nine thousand nine hundred ninety-nine dollars ($49,999)
27unless approved by the director in writing.

28(3) The temporary manager shall make no capital improvements
29to the facility in excess of five thousand dollars ($5,000) without
30the approval of the director.

31(l) (1) To the extent department funds are advanced for the
32costs of the temporary manager or for other expenses in connection
33with the temporary management, the department shall be
34reimbursed from the revenues accruing to the facility or to the
35licensee or an entity related to the licensee. Any reimbursement
36received by the department shall be redeposited in the account
37from which the department funds were advanced. If the revenues
38are insufficient to reimburse the department, the unreimbursed
39amount shall constitute grounds for a monetary judgment in civil
40court and a subsequent lien upon the assets of the facility or the
P16   1proceeds from the sale thereof. Pursuant to Chapter 2 (commencing
2with Section 697.510) of Division 2 of Title 9 of Part 2 of the Code
3of Civil Procedure, a lien against the personal assets of the facility
4or an entity related to the licensee based on the monetary judgment
5obtained shall be filed with the Secretary of State on the forms
6required for a notice of judgment lien. A lien against the real
7property of the facility or an entity related to the licensee based
8on the monetary judgment obtained shall be recorded with the
9county recorder of the county where the facility of the licensee is
10located or where the real property of the entity related to the
11licensee is located. The lien shall not attach to the interests of a
12lessor, unless the lessor is operating the facility. The authority to
13place a lien against the personal and real property of the licensee
14for the reimbursement of any state funds expended pursuant to this
15section shall be given judgment creditor priority.

16(2) For purposes of this section, “entity related to the licensee”
17means an entity, other than a natural person, of which the licensee
18is a subsidiary or an entity in which a person who was obligated
19to disclose information under Section 1520 possesses an interest
20that would also require disclosure pursuant to Section 1520.

21(m) Appointment of a temporary manager under this section
22does not relieve the licensee of any responsibility for the care and
23supervision of clients under this chapter. The licensee, even if the
24license is deemed surrendered or the facility abandoned, shall be
25required to reimburse the department for all costs associated with
26operation of the facility during the period the temporary manager
27is in place that are not accounted for by using facility revenues or
28for the relocation of clients handled by the department if the
29licensee fails to comply with the relocation requirements of Section
301556 when required by the department to do so. If the licensee
31fails to reimburse the department under this section, then the
32department, along with using its own remedies available under
33this chapter, may request that the Attorney General’s office, the
34city attorney’s office, or the local district attorney’s office seek
35any available criminal, civil, or administrative remedy, including,
36but not limited to, injunctive relief, restitution, and damages in the
37same manner as provided for in Chapter 5 (commencing with
38Section 17200) of Part 2 of Division 7 of the Business and
39Professions Code.

P17   1(n) The department may use funds from the emergency client
2contingency account pursuant to Section 1546 when needed to
3supplement the operation of the facility or the transfer of clients
4under the control of the temporary manager appointed under this
5section if facility revenues are unavailable or exhausted when
6needed. Pursuant to subdivision (l), the licensee shall be required
7to reimburse the department for any funds used from the emergency
8client contingency account during the period of control of the
9temporary manager and any incurred costs of collection.

10(o) This section does not apply to a residential facility that serves
11six or fewer persons and is also the principal residence of the
12licensee.

13(p) Notwithstanding any other provision of law, the temporary
14manager shall be liable only for damages resulting from gross
15negligence in the operation of the facility or intentional tortious
16acts.

17(q) All governmental immunities otherwise applicable to the
18state shall also apply to the state in the use of a temporary manager
19in the operation of a facility pursuant to this section.

20(r) A licensee shall not be liable for any occurrences during the
21temporary management under this section except to the extent that
22the occurrences are the result of the licensee’s conduct.

23(s) The department may adopt regulations for the administration
24of this section.

25

begin deleteSEC. 2.end delete
26begin insertSEC. 4.end insert  

Section 1546.2 of the Health and Safety Code, as added
27by Section 12 of Chapter 29 of the Statutes of 2014, is amended
28to read:

29

1546.2.  

(a) It is the intent of the Legislature in enacting this
30section to authorize the department to take quick, effective action
31to protect the health and safety of residents of community care
32facilities and to minimize the effects of transfer trauma that
33accompany the abrupt transfer of clients through a system whereby
34the department may apply for a court order appointing a receiver
35to temporarily operate a community care facility. The receivership
36is not intended to punish a licensee or to replace attempts to secure
37cooperative action to protect the clients’ health and safety. The
38receivership is intended to protect the clients in the absence of
39other reasonably available alternatives. The receiver shall assume
40the operation of the facility in order to bring it into compliance
P18   1with law, facilitate a transfer of ownership to a new licensee, or
2ensure the orderly transfer of clients should the facility be required
3to close.

4(b) (1) Whenever circumstances exist indicating that continued
5management of a community care facility by the current licensee
6would present a substantial probability or imminent danger of
7serious physical harm or death to the clients, or the facility is
8closing or intends to terminate operation as a community care
9facility and adequate arrangements for relocation of clients have
10not been made at least 30 days prior to the closing or termination,
11the director may petition the superior court for the county in which
12the community care facility is located for an order appointing a
13receiver to temporarily operate the community care facility in
14accordance with this section.

15(2) The petition shall allege the facts upon which the action is
16based and shall be supported by an affidavit of the director. A copy
17of the petition and affidavits, together with an order to appear and
18show cause why temporary authority to operate the community
19care facility should not be vested in a receiver pursuant to this
20section, shall be delivered to the licensee, administrator, or a
21responsible person at the facility to the attention of the licensee
22and administrator. The order shall specify a hearing date, which
23shall be not less than 10, nor more than 15, days following delivery
24of the petition and order upon the licensee, except that the court
25may shorten or lengthen the time upon a showing of just cause.

26(c) (1) If the director files a petition pursuant to subdivision (b)
27for appointment of a receiver to operate a community care facility,
28in accordance with Section 564 of the Code of Civil Procedure,
29the director may also petition the court, in accordance with Section
30527 of the Code of Civil Procedure, for an order appointing a
31temporary receiver. A temporary receiver appointed by the court
32pursuant to this subdivision shall serve until the court has made a
33final determination on the petition for appointment of a receiver
34filed pursuant to subdivision (b). A receiver appointed pursuant
35to this subdivision shall have the same powers and duties as a
36receiver would have if appointed pursuant to subdivision (b). Upon
37the director filing a petition for a receiver, the receiver shall
38complete its application for a provisional license to operate a
39community care facility. For purposes of a provisional license
40issued to a receiver, the licensee’s existing fire safety clearance
P19   1shall serve as the fire safety clearance for the receiver’s provisional
2license.

3(2) At the time of the hearing, the department shall advise the
4licensee of the name of the proposed receiver. The receiver shall
5be a certified community care facility administrator or other
6 responsible person or entity, as determined by the court, from a
7list of qualified receivers established by the department, and, if
8need be, with input from providers of residential care and consumer
9representatives. Persons appearing on the list shall have experience
10in the delivery of care services to clients of community care
11facilities, and, if feasible, shall have experience with the operation
12of a community care facility, shall not be the subject of any pending
13actions by the department or any other state agency, and shall not
14have ever been excluded from a department licensed facility nor
15have had a license or certification suspended or revoked by an
16administrative action by the department or any other state agency.
17The receivers shall have sufficient background and experience in
18management and finances to ensure compliance with orders issued
19by the court. The owner, licensee, or administrator shall not be
20appointed as the receiver unless authorized by the court.

21(3) If at the conclusion of the hearing, which may include oral
22testimony and cross-examination at the option of any party, the
23court determines that adequate grounds exist for the appointment
24of a receiver and that there is no other reasonably available remedy
25to protect the clients, the court may issue an order appointing a
26receiver to temporarily operate the community care facility and
27enjoining the licensee from interfering with the receiver in the
28conduct of his or her duties. In these proceedings, the court shall
29make written findings of fact and conclusions of law and shall
30require an appropriate bond to be filed by the receiver and paid
31for by the licensee. The bond shall be in an amount necessary to
32protect the licensee in the event of any failure on the part of the
33receiver to act in a reasonable manner. The bond requirement may
34be waived by the licensee.

35(4) The court may permit the licensee to participate in the
36continued operation of the facility during the pendency of any
37receivership ordered pursuant to this section and shall issue an
38order detailing the nature and scope of participation.

P20   1(5) Failure of the licensee to appear at the hearing on the petition
2shall constitute an admission of all factual allegations contained
3in the petition for purposes of these proceedings only.

4(6) The licensee shall receive notice and a copy of the
5application each time the receiver applies to the court or the
6department for instructions regarding his or her duties under this
7section, when an accounting pursuant to subdivision (i) is
8submitted, and when any other report otherwise required under
9this section is submitted. The licensee shall have an opportunity
10to present objections or otherwise participate in those proceedings.

11(d) A person shall not impede the operation of a receivership
12created under this section. The receiver’s access to, or possession
13of, the property shall not be interfered with during the term of the
14receivership. There shall be an automatic stay for a 60-day period
15subsequent to the appointment of a receiver of any action that
16would interfere with the functioning of the facility, including, but
17not limited to, cancellation of insurance policies executed by the
18licensees, termination of utility services, attachments or setoffs of
19client trust funds and working capital accounts, and repossession
20of equipment in the facility.

21(e) When a receiver is appointed, the licensee may, at the
22discretion of the court, be divested of possession and control of
23the facility in favor of the receiver. If the court divests the licensee
24of possession and control of the facility in favor of the receiver,
25 the department shall immediately issue a provisional license to the
26receiver. Notwithstanding the applicable sections of this code
27governing the revocation of a provisional license, the provisional
28license issued to a receiver shall automatically expire upon the
29termination of the receivership. The receiver shall possess the
30provisional license solely for purposes of carrying out the
31responsibilities authorized by this section and the duties ordered
32by the court. The receiver shall have no right to appeal the
33expiration of the provisional license.

34(f) A receiver appointed pursuant to this section:

35(1) May exercise those powers and shall perform those duties
36ordered by the court, in addition to other duties provided by statute.

37(2) Shall operate the facility in a manner that ensures the safety
38and adequate care for the clients.

39(3) Shall have the same rights to possession of the building in
40which the facility is located, and of all goods and fixtures in the
P21   1building at the time the petition for receivership is filed, as the
2licensee and administrator would have had if the receiver had not
3been appointed.

4(4) May use the funds, building, fixtures, furnishings, and any
5accompanying consumable goods in the provision of care and
6services to clients and to any other persons receiving services from
7the facility at the time the petition for receivership was filed.

8(5) Shall take title to all revenue coming to the facility in the
9name of the receiver who shall use it for the following purposes
10in descending order of priority:

11(A) To pay wages to staff. The receiver shall have full power
12to hire, direct, manage, and discharge employees of the facility,
13subject to any contractual rights they may have. The receiver shall
14pay employees at the same rate of compensation, including
15benefits, that the employees would have received from the licensee
16or wages necessary to provide adequate staff for the protection of
17the clients and compliance with the law.

18(B) To preserve client funds. The receiver shall be entitled to,
19and shall take, possession of all property or assets of clients that
20are in the possession of the licensee or operator of the facility. The
21receiver shall preserve all property, assets, and records of clients
22of which the receiver takes possession.

23(C) To contract for outside services as may be needed for the
24operation of the community care facility. Any contract for outside
25services in excess of five thousand dollars ($5,000) shall be
26 approved by the court.

27(D) To pay commercial creditors of the facility to the extent
28required to operate the facility. Except as provided in subdivision
29(h), the receiver shall honor all leases, mortgages, and secured
30transactions affecting the building in which the facility is located
31and all goods and fixtures in the building of which the receiver
32has taken possession, but only to the extent of payments which,
33in the case of a rental agreement, are for the use of the property
34during the period of receivership, or which, in the case of a
35purchase agreement, come due during the period of receivership.

36(E) To receive a salary, as approved by the court.

37(F) To do all things necessary and proper to maintain and operate
38the facility in accordance with sound fiscal policies. The receiver
39shall take action as is reasonably necessary to protect or conserve
40the assets or property of which the receiver takes possession and
P22   1may use those assets or property only in the performance of the
2powers and duties set out in this section and by order of the court.

3(G) To ask the court for direction in the treatment of debts
4incurred prior to the appointment, if the licensee’s debts appear
5extraordinary, of questionable validity, or unrelated to the normal
6and expected maintenance and operation of the facility, or if
7payment of the debts will interfere with the purposes of
8receivership.

9(g) (1) A person who is served with notice of an order of the
10court appointing a receiver and of the receiver’s name and address
11shall be liable to pay the receiver, rather than the licensee, for any
12goods or services provided by the community care facility after
13the date of the order. The receiver shall give a receipt for each
14payment and shall keep a copy of each receipt on file. The receiver
15shall deposit amounts received in a special account and shall use
16this account for all disbursements. Payment to the receiver pursuant
17to this subdivision shall discharge the obligation to the extent of
18the payment and shall not thereafter be the basis of a claim by the
19licensee or any other person. A client shall not be evicted nor may
20any contract or rights be forfeited or impaired, nor may any
21forfeiture be effected or liability increased, by reason of an
22omission to pay the licensee, operator, or other person a sum paid
23to the receiver pursuant to this subdivision.

24(2) This section shall not be construed to suspend, during the
25temporary management by the receiver, any obligation of the
26licensee for payment of local, state, or federal taxes. A licensee
27shall not be held liable for acts or omissions of the receiver during
28the term of the temporary management.

29(3) Upon petition of the receiver, the court may order immediate
30payment to the receiver for past services that have been rendered
31and billed, and the court may also order a sum not to exceed one
32month’s advance payment to the receiver of any sums that may
33become payable under the Medi-Cal program.

34(h) (1) A receiver shall not be required to honor a lease,
35mortgage, or secured transaction entered into by the licensee of
36the facility and another party if the court finds that the agreement
37between the parties was entered into for a collusive, fraudulent
38purpose or that the agreement is unrelated to the operation of the
39facility.

P23   1(2) A lease, mortgage, or secured transaction or an agreement
2unrelated to the operation of the facility that the receiver is
3permitted to dishonor pursuant to this subdivision shall only be
4subject to nonpayment by the receiver for the duration of the
5receivership, and the dishonoring of the lease, mortgage, security
6interest, or other agreement, to this extent, by the receiver shall
7not relieve the owner or operator of the facility from any liability
8for the full amount due under the lease, mortgage, security interest,
9or other agreement.

10(3) If the receiver is in possession of real estate or goods subject
11to a lease, mortgage, or security interest that the receiver is
12permitted to avoid pursuant to paragraph (1), and if the real estate
13or goods are necessary for the continued operation of the facility,
14the receiver may apply to the court to set a reasonable rent, price,
15or rate of interest to be paid by the receiver during the duration of
16the receivership. The court shall hold a hearing on this application
17within 15 days. The receiver shall send notice of the application
18to any known owner of the property involved at least 10 days prior
19to the hearing.

20(4) Payment by the receiver of the amount determined by the
21court to be reasonable is a defense to any action against the receiver
22for payment or possession of the goods or real estate, subject to
23the lease or mortgage, which is brought by any person who received
24the notice required by this subdivision. However, payment by the
25receiver of the amount determined by the court to be reasonable
26shall not relieve the owner or operator of the facility from any
27liability for the difference between the amount paid by the receiver
28and the amount due under the original lease, mortgage, or security
29interest.

30(i) A monthly accounting shall be made by the receiver to the
31department of all moneys received and expended by the receiver
32on or before the 15th day of the following month or as ordered by
33the court, and the remainder of income over expenses for that
34month shall be returned to the licensee. A copy of the accounting
35shall be provided to the licensee. The licensee or owner of the
36community care facility may petition the court for a determination
37as to the reasonableness of any expenditure made pursuant to
38paragraph (5) of subdivision (f).

39(j) (1) The receiver shall be appointed for an initial period of
40not more than three months. The initial three-month period may
P24   1be extended for additional periods not exceeding three months, as
2determined by the court pursuant to this section. At the end of one
3month, the receiver shall report to the court on its assessment of
4the probability that the community care facility will meet state
5standards for operation by the end of the initial three-month period
6and will continue to maintain compliance with those standards
7after termination of the receiver’s management. If it appears that
8the facility cannot be brought into compliance with state standards
9within the initial three-month period, the court shall take
10appropriate action as follows:

11(A) Extend the receiver’s management for an additional three
12months if there is a substantial likelihood that the facility will meet
13state standards within that period and will maintain compliance
14with the standards after termination of the receiver’s management.
15The receiver shall report to the court in writing upon the facility’s
16progress at the end of six weeks of any extension ordered pursuant
17to this paragraph.

18(B) Order the director to revoke or temporarily suspend, or both,
19the license pursuant to Article 5 (commencing with Section 1550)
20and extend the receiver’s management for the period necessary to
21transfer clients in accordance with the transfer plan, but for not
22more than three months from the date of initial appointment of a
23receiver, or 14 days, whichever is greater. An extension of an
24additional three months may be granted if deemed necessary by
25the court.

26(2) If it appears at the end of six weeks of an extension ordered
27pursuant to subparagraph (A) of paragraph (1) that the facility
28cannot be brought into compliance with state standards for
29operation or that it will not maintain compliance with those
30standards after the receiver’s management is terminated, the court
31shall take appropriate action as specified in subparagraph (B) of
32paragraph (1).

33(3) In evaluating the probability that a community care facility
34will maintain compliance with state standards of operation after
35the termination of receiver management ordered by the court, the
36court shall consider at least the following factors:

37(A) The duration, frequency, and severity of past violations in
38the facility.

39(B) History of compliance in other care facilities operated by
40the proposed licensee.

P25   1(C) Efforts by the licensee to prevent and correct past violations.

2(D) The financial ability of the licensee to operate in compliance
3with state standards.

4(E) The recommendations and reports of the receiver.

5(4) Management of a community care facility operated by a
6receiver pursuant to this section shall not be returned to the
7licensee, to any person related to the licensee, or to any person
8who served as a member of the facility’s staff or who was
9employed by the licensee prior to the appointment of the receiver
10unless both of the following conditions are met:

11(A) The department believes that it would be in the best interests
12of the clients of the facility, requests that the court return the
13operation of the facility to the former licensee, and provides clear
14and convincing evidence to the court that it is in the best interests
15of the facility’s clients to take that action.

16(B) The court finds that the licensee has fully cooperated with
17the department in the appointment and ongoing activities of a
18receiver appointed pursuant to this section, and, if applicable, any
19temporary manager appointed pursuant to Section 1546.1.

20(5) The owner of the facility may at any time sell, lease, or close
21the facility, subject to the following provisions:

22(A) If the owner closes the facility, or the sale or lease results
23in the closure of the facility, the court shall determine if a transfer
24plan is necessary. If the court so determines, the court shall adopt
25and implement a transfer plan consistent with the provisions of
26Section 1556.

27(B) If the licensee proposes to sell or lease the facility and the
28facility will continue to operate as a community care facility, the
29court and the department shall reevaluate any proposed transfer
30plan. If the court and the department determine that the sale or
31lease of the facility will result in compliance with licensing
32standards, the transfer plan and the receivership shall, subject to
33those conditions that the court may impose and enforce, be
34terminated upon the effective date of the sale or lease.

35(k) (1) The salary of the receiver shall be set by the court
36commensurate with community care facility industry standards,
37giving due consideration to the difficulty of the duties undertaken,
38and shall be paid from the revenue coming to the facility. If the
39revenue is insufficient to pay the salary in addition to other
40expenses of operating the facility, the receiver’s salary shall be
P26   1paid from the emergency client contingency account as provided
2in Section 1546. State advances of funds in excess of five thousand
3dollars ($5,000) shall be approved by the director. Total advances
4for encumbrances and expenditures shall not exceed the sum of
5forty-nine thousand nine hundred ninety-nine dollars ($49,999)
6unless approved by the director in writing.

7(2) To the extent state funds are advanced for the salary of the
8receiver or for other expenses in connection with the receivership,
9as limited by subdivision (g), the state shall be reimbursed from
10the revenues accruing to the facility or to the licensee or an entity
11related to the licensee. Any reimbursement received by the state
12shall be redeposited in the account from which the state funds were
13advanced. If the revenues are insufficient to reimburse the state,
14the unreimbursed amount shall constitute grounds for a monetary
15judgment in civil court and a subsequent lien upon the assets of
16the facility or the proceeds from the sale thereof. Pursuant to
17Chapter 2 (commencing with Section 697.510) of Division 2 of
18Title 9 of Part 2 of the Code of Civil Procedure, a lien against the
19personal assets of the facility or an entity related to the licensee
20 based on the monetary judgment obtained shall be filed with the
21Secretary of State on the forms required for a notice of judgment
22lien. A lien against the real property of the facility or an entity
23related to the licensee based on the monetary judgment obtained
24shall be recorded with the county recorder of the county where the
25facility of the licensee is located or where the real property of the
26entity related to the licensee is located. The lien shall not attach
27to the interests of a lessor, unless the lessor is operating the facility.
28The authority to place a lien against the personal and real property
29of the licensee for the reimbursement of any state funds expended
30pursuant to this section shall be given judgment creditor priority.

31(3) For purposes of this subdivision, “entity related to the
32licensee” means an entity, other than a natural person, of which
33the licensee is a subsidiary or an entity in which any person who
34was obligated to disclose information under Section 1520 possesses
35an interest that would also require disclosure pursuant to Section
361520.

37(l) (1) This section does not impair the right of the owner of a
38community care facility to dispose of his or her property interests
39in the facility, but any facility operated by a receiver pursuant to
40this section shall remain subject to that administration until
P27   1terminated by the court. The termination shall be promptly
2effectuated, provided that the interests of the clients have been
3safeguarded as determined by the court.

4(2) This section does not limit the power of the court to appoint
5a receiver under any other applicable provision of law or to order
6any other remedy available under law.

7(m) (1) Notwithstanding any other provision of law, the receiver
8shall be liable only for damages resulting from gross negligence
9in the operation of the facility or intentional tortious acts.

10(2) All governmental immunities otherwise applicable to the
11State of California shall also apply in the use of a receiver in the
12operationbegin delete ifend deletebegin insert ofend insert a facility pursuant to this section.

13(3) The licensee shall not be liable for any occurrences during
14the receivership except to the extent that the occurrences are the
15result of the licensee’s conduct.

16(n) The department may adopt regulations for the administration
17of this section. This section does not impair the authority of the
18department to temporarily suspend licenses under Section 1550.5
19or to reach a voluntary agreement with the licensee for alternate
20management of a community care facility including the use of a
21temporary manager under Section 1546.1. This section does not
22authorize the department to interfere in a labor dispute.

23(o) This section does not apply to a residential facility that serves
24six or fewer persons and is also the principal residence of the
25licensee.

26(p) This section does not apply to a licensee that has obtained
27a certificate of authority to offer continuing care contracts, as
28defined in paragraph (8) of subdivision (c) of Section 1771.

29

begin deleteSEC. 3.end delete
30begin insertSEC. 5.end insert  

Section 1569.481 of the Health and Safety Code, as
31added by Section 24 of Chapter 29 of the Statutes of 2014, is
32amended to read:

33

1569.481.  

(a) (1) It is the intent of the Legislature in enacting
34this section to authorize the department to take quick, effective
35action to protect the health and safety of residents of residential
36care facilities for the elderly and to minimize the effects of transfer
37trauma that accompany the abrupt transfer of residents by
38appointing a temporary manager to assume the operation of a
39facility that is found to be in a condition in which continued
40operation by the licensee or his or her representative presents a
P28   1substantial probability of imminent danger of serious physical
2harm or death to the residents.

3(2) A temporary manager appointed pursuant to this section
4shall assume the operation of the facility in order to bring it into
5compliance with the law, facilitate a transfer of ownership to a
6new licensee, or ensure the orderly transfer of residents should the
7facility be required to close. Upon a final decision and order of
8revocation of the license, issuance of a temporary suspension, or
9a forfeiture by operation of law, the department shall immediately
10issue a provisional license to the appointed temporary manager.
11Notwithstanding the applicable sections of this code governing
12the revocation of a provisional license, the provisional license
13issued to a temporary manager shall automatically expire upon the
14termination of the temporary manager. The temporary manager
15shall possess the provisional license solely for purposes of carrying
16out the responsibilities authorized by this section and the duties
17set forth in the written agreement between the department and the
18temporary manager. The temporary manager shall have no right
19to appeal the expiration of the provisional license.

20(b) For purposes of this section, “temporary manager” means
21the person, corporation, or other entity appointed temporarily by
22the department as a substitute facility licensee or administrator
23with authority to hire, terminate, reassign staff, obligate facility
24funds, alter facility procedures, and manage the facility to correct
25deficiencies identified in the facility’s operation. The temporary
26manager shall have the final authority to direct the care and
27supervision activities of any person associated with the facility,
28including superseding the authority of the licensee and the
29administrator.

30(c) The director, in order to protect the residents of the facility
31from physical or mental abuse, abandonment, or any other
32substantial threat to health or safety, may appoint a temporary
33manager when any of the following circumstances exist:

34(1) The director determines that it is necessary to temporarily
35suspend the license of a residential care facility for the elderly
36pursuant to Section 1569.50 and the immediate relocation of the
37residents is not feasible based on transfer trauma, lack of available
38alternative placements, or other emergency considerations for the
39health and safety of the residents.

P29   1(2) The licensee is unwilling or unable to comply with the
2requirements of Section 1569.525 or the requirements of Section
31569.682 regarding the safe and orderly relocation of residents
4when ordered to do so by the department or when otherwise
5required by law.

6(3) The licensee has opted to secure a temporary manager
7pursuant to Section 1569.525.

8(d) (1) Upon appointment, the temporary manager shall
9complete its application for a license to operate a residential care
10 facility for the elderly and take all necessary steps and make best
11efforts to eliminate any substantial threat to the health and safety
12to residents or complete the transfer of residents to alternative
13placements pursuant to Section 1569.525 or 1569.682. For purposes
14of a provisional license issued to a temporary manager, the
15licensee’s existing fire safety clearance shall serve as the fire safety
16clearance for the temporary manager’s provisional license.

17(2) A person shall not impede the operation of a temporary
18manager. The temporary manager’s access to, or possession of,
19the property shall not be interfered with during the term of the
20temporary manager appointment. There shall be an automatic stay
21for a 60-day period subsequent to the appointment of a temporary
22manager of any action that would interfere with the functioning
23of the facility, including, but not limited to, termination of utility
24services, attachments, or setoffs of resident trust funds, and
25repossession of equipment in the facility.

26(e) (1) The appointment of a temporary manager shall be
27immediately effective and shall continue for a period not to exceed
2860 days unless otherwise extended in accordance with paragraph
29(2) of subdivision (h) at the discretion of the department or as
30permitted by paragraph (2) of subdivision (d) of Section 1569.525,
31or unless otherwise terminated earlier by any of the following
32events:

33(A) The temporary manager notifies the department, and the
34department verifies, that the facility meets state and, if applicable,
35federal standards for operation, and will be able to continue to
36maintain compliance with those standards after the termination of
37the appointment of the temporary manager.

38(B) The department approves a new temporary manager.

39(C) A new operator is licensed.

40(D) The department closes the facility.

P30   1(E) A hearing or court order ends the temporary manager
2appointment, including the appointment of a receiver under Section
31569.482.

4(F) The appointment is terminated by the department or the
5temporary manager.

6(2) The appointment of a temporary manager shall authorize
7the temporary manager to act pursuant to this section. The
8appointment shall be made pursuant to a written agreement between
9the temporary manager and the department that outlines the
10circumstances under which the temporary manager may expend
11funds. The department shall provide the licensee and administrator
12with a copy of the accusation to appoint a temporary manager at
13the time of appointment. The accusation shall notify the licensee
14of the licensee’s right to petition the Office of Administrative
15Hearings for a hearing to contest the appointment of the temporary
16manager as described in subdivision (f) and shall provide the
17licensee with a form and appropriate information for the licensee’s
18use in requesting a hearing.

19(3) The director may rescind the appointment of a temporary
20manager and appoint a new temporary manager at any time that
21the director determines the temporary manager is not adhering to
22the conditions of the appointment.

23(f) (1) The licensee of a residential care facility for the elderly
24may contest the appointment of the temporary manager by filing
25a petition for an order to terminate the appointment of the
26temporary manager with the Office of Administrative Hearings
27within 15 days from the date of mailing of the accusation to appoint
28a temporary manager under subdivision (e). On the same day as
29the petition is filed with the Office of Administrative Hearings,
30the licensee shall serve a copy of the petition to the office of the
31director.

32(2) Upon receipt of a petition under paragraph (1), the Office
33of Administrative Hearings shall set a hearing date and time within
3410 business days of the receipt of the petition. The office shall
35promptly notify the licensee and the department of the date, time,
36and place of the hearing. The office shall assign the case to an
37administrative law judge. At the hearing, relevant evidence may
38be presented pursuant to Section 11513 of the Government Code.
39The administrative law judge shall issue a written decision on the
40petition within 10 business days of the conclusion of the hearing.
P31   1The 10-day time period for holding the hearing and for rendering
2a decision may be extended by the written agreement of the parties.

3(3) The administrative law judge shall uphold the appointment
4of the temporary manager if the department proves, by a
5preponderance of the evidence, that the circumstances specified
6in subdivision (c) applied to the facility at the time of the
7appointment. The administrative law judge shall order the
8termination of the temporary manager if the burden of proof is not
9satisfied.

10(4) The decision of the administrative law judge is subject to
11judicial review as provided in Section 1094.5 of the Code of Civil
12Procedure by the superior court of the county where the facility is
13located. This review may be requested by the licensee of the facility
14or the department by filing a petition seeking relief from the order.
15The petition may also request the issuance of temporary injunctive
16relief pending the decision on the petition. The superior court shall
17hold a hearing within 10 business days of the filing of the petition
18and shall issue a decision on the petition within 10 days of the
19hearing. The department may be represented by legal counsel
20within the department for purposes of court proceedings authorized
21under this section.

22(g) If the licensee does not protest the appointment or does not
23prevail at either the administrative hearing under paragraph (2) of
24subdivision (f) or the superior court hearing under paragraph (4)
25of subdivision (f), the temporary manager shall continue in
26accordance with subdivision (e).

27(h) (1) If the licensee petitions the Office of Administrative
28Hearings pursuant to subdivision (f), the appointment of the
29temporary manager by the director pursuant to this section shall
30continue until it is terminated by the administrative law judge or
31by the superior court, or it shall continue until the conditions of
32subdivision (e) are satisfied, whichever is earlier.

33(2) At any time during the appointment of the temporary
34manager, the director may request an extension of the appointment
35by filing a petition for hearing with the Office of Administrative
36Hearings and serving a copy of the petition on the licensee. The
37office shall proceed as specified in paragraph (2) of subdivision
38(f). The administrative law judge may extend the appointment of
39the temporary manager an additional 60 days upon a showing by
P32   1the department that the conditions specified in subdivision (c)
2continue to exist.

3(3) The licensee or the department may request review of the
4administrative law judge’s decision on the extension as provided
5in paragraph (4) of subdivision (f).

6(i) The temporary manager appointed pursuant to this section
7shall meet the following qualifications:

8(1) Be qualified to oversee correction of deficiencies in a
9residential care facility for the elderly on the basis of experience
10and education.

11(2) Not be the subject of any pending actions by the department
12or any other state agency nor have ever been excluded from a
13department-licensed facility or had a license or certification
14suspended or revoked by an administrative action by the
15department or any other state agency.

16(3) Have no financial ownership interest in the facility and have
17no member of his or her immediate family who has a financial
18ownership interest in the facility.

19(4) Not currently serve, or within the past two years have served,
20as a member of the staff of the facility.

21(j) Payment of the costs of the temporary manager shall comply
22with the following requirements:

23(1) Upon agreement with the licensee, the costs of the temporary
24manager and any other expenses in connection with the temporary
25management shall be paid directly by the facility while the
26temporary manager is assigned to that facility. Failure of the
27licensee to agree to the payment of those costs may result in the
28payment of the costs by the department and subsequent required
29reimbursement of the department by the licensee pursuant to this
30section.

31(2) Direct costs of the temporary manager shall be equivalent
32to the sum of the following:

33(A) The prevailing fee paid by licensees for positions of the
34same type in the facility’s geographic area.

35(B) Additional costs that reasonably would have been incurred
36by the licensee if the licensee and the temporary manager had been
37in an employment relationship.

38(C) Any other reasonable costs incurred by the temporary
39manager in furnishing services pursuant to this section.

P33   1(3) Direct costs may exceed the amount specified in paragraph
2(2) if the department is otherwise unable to find a qualified
3temporary manager.

4(k) (1) The responsibilities of the temporary manager may
5include, but are not limited to, the following:

6(A) Paying wages to staff. The temporary manager shall have
7the full power to hire, direct, manage, and discharge employees
8of the facility, subject to any contractual rights they may have.
9The temporary manager shall pay employees at the same rate of
10compensation, including benefits, that the employees would have
11received from the licensee or wages necessary to provide adequate
12staff for the protection of clients and compliance with the law.

13(B) Preserving resident funds. The temporary manager shall be
14entitled to, and shall take possession of, all property or assets of
15residents that are in the possession of the licensee or administrator
16of the facility. The temporary manager shall preserve all property,
17assets, and records of residents of which the temporary manager
18takes possession.

19(C) Contracting for outside services as may be needed for the
20operation of the facility. Any contract for outside services in excess
21of five thousand dollars ($5,000) shall be approved by the director.

22(D) Paying commercial creditors of the facility to the extent
23required to operate the facility. The temporary manager shall honor
24all leases, mortgages, and secured transactions affecting the
25building in which the facility is located and all goods and fixtures
26in the building, but only to the extent of payments that, in the case
27of a rental agreement, are for the use of the property during the
28period of the temporary management, or that, in the case of a
29purchase agreement, come due during the period of the temporary
30management.

31(E) Performing all acts that are necessary and proper to maintain
32and operate the facility in accordance with sound fiscal policies.
33The temporary manager shall take action as is reasonably necessary
34to protect or conserve the assets or property of which the temporary
35manager takes possession and may use those assets or property
36only in the performance of the powers and duties set forth in this
37section.

38(2) Expenditures by the temporary manager in excess of five
39thousand dollars ($5,000) shall be approved by the director. Total
40encumbrances and expenditures by the temporary manager for the
P34   1duration of the temporary management shall not exceed the sum
2of forty-nine thousand nine hundred ninety-nine dollars ($49,999)
3unless approved by the director in writing.

4(3) The temporary manager shall not make capital improvements
5to the facility in excess of five thousand dollars ($5,000) without
6the approval of the director.

7(l) (1) To the extent department funds are advanced for the
8costs of the temporary manager or for other expenses in connection
9with the temporary management, the department shall be
10reimbursed from the revenues accruing to the facility or to the
11licensee or an entity related to the licensee. Any reimbursement
12received by the department shall be redeposited in the account
13from which the department funds were advanced. If the revenues
14are insufficient to reimburse the department, the unreimbursed
15amount shall constitute grounds for a monetary judgment in civil
16court and a subsequent lien upon the assets of the facility or the
17proceeds from the sale thereof. Pursuant to Chapter 2 (commencing
18with Section 697.510) of Division 2 of Title 9 of Part 2 of the Code
19of Civil Procedure, a lien against the personal assets of the facility
20or an entity related to the licensee based on the monetary judgment
21obtained shall be filed with the Secretary of State on the forms
22required for a notice of judgment lien. A lien against the real
23property of the facility or an entity related to the licensee based
24on the monetary judgment obtained shall be recorded with the
25county recorder of the county where the facility of the licensee is
26located or where the real property of the entity related to the
27licensee is located. The lien shall not attach to the interests of a
28lessor, unless the lessor is operating the facility. The authority to
29place a lien against the personal and real property of the licensee
30for the reimbursement of any state funds expended pursuant to this
31section shall be given judgment creditor priority.

32(2) For purposes of this section, “entity related to the licensee”
33means an entity, other than a natural person, of which the licensee
34is a subsidiary or an entity in which a person who was obligated
35to disclose information under Section 1569.15 possesses an interest
36that would also require disclosure pursuant to Section 1569.15.

37(m) Appointment of a temporary manager under this section
38does not relieve the licensee of any responsibility for the care and
39supervision of residents under this chapter. The licensee, even if
40the license is deemed surrendered or the facility abandoned, shall
P35   1be required to reimburse the department for all costs associated
2with operation of the facility during the period the temporary
3manager is in place that are not accounted for by using facility
4revenues or for the relocation of residents handled by the
5 department if the licensee fails to comply with the relocation
6requirements of Section 1569.525 or 1569.682 when required by
7the department to do so. If the licensee fails to reimburse the
8department under this section, then the department, along with
9using its own remedies available under this chapter, may request
10that the Attorney General’s office, the city attorney’s office, or the
11local district attorney’s office seek any available criminal, civil,
12or administrative remedy, including, but not limited to, injunctive
13relief, restitution, and damages in the same manner as provided
14for in Chapter 5 (commencing with Section 17200) of Part 2 of
15Division 7 of the Business and Professions Code.

16(n) The department may use funds from the emergency resident
17contingency account pursuant to Section 1569.48 when needed to
18supplement the operation of the facility or the transfer of residents
19under the control of the temporary manager appointed under this
20 section if facility revenues are unavailable or exhausted when
21needed. Pursuant to subdivision (l), the licensee shall be required
22to reimburse the department for any funds used from the emergency
23resident contingency account during the period of control of the
24temporary manager and any incurred costs of collection.

25(o) This section does not apply to a residential care facility for
26the elderly that serves six or fewer persons and is also the principal
27residence of the licensee.

28(p) Notwithstanding any other provision of law, the temporary
29manager shall be liable only for damages resulting from gross
30negligence in the operation of the facility or intentional tortious
31acts.

32(q) All governmental immunities otherwise applicable to the
33state shall also apply to the state in the use of a temporary manager
34in the operation of a facility pursuant to this section.

35(r) A licensee shall not be liable for any occurrences during the
36temporary management under this section except to the extent that
37the occurrences are the result of the licensee’s conduct.

38(s) The department may adopt regulations for the administration
39of this section.

P36   1

begin deleteSEC. 4.end delete
2begin insertSEC. 6.end insert  

Section 1569.482 of the Health and Safety Code, as
3added by Section 25 of Chapter 29 of the Statutes of 2014, is
4amended to read:

5

1569.482.  

(a) It is the intent of the Legislature in enacting this
6section to authorize the department to take quick, effective action
7to protect the health and safety of residents of residential care
8facilities for the elderly and to minimize the effects of transfer
9trauma that accompany the abrupt transfer of residents through a
10system whereby the department may apply for a court order
11appointing a receiver to temporarily operate a residential care
12facility for the elderly. The receivership is not intended to punish
13a licensee or to replace attempts to secure cooperative action to
14protect the residents’ health and safety. The receivership is intended
15to protect the residents in the absence of other reasonably available
16alternatives. The receiver shall assume the operation of the facility
17in order to bring it into compliance with law, facilitate a transfer
18of ownership to a new licensee, or ensure the orderly transfer of
19residents should the facility be required to close.

20(b) (1) Whenever circumstances exist indicating that continued
21management of a residential care facility by the current licensee
22would present a substantial probability or imminent danger of
23serious physical harm or death to the residents, or the facility is
24closing or intends to terminate operation as a residential care
25facility for the elderly and adequate arrangements for relocation
26of residents have not been made at least 30 days prior to the closing
27or termination, the director may petition the superior court for the
28county in which the facility is located for an order appointing a
29receiver to temporarily operate the facility in accordance with this
30section.

31(2) The petition shall allege the facts upon which the action is
32based and shall be supported by an affidavit of the director. A copy
33of the petition and affidavits, together with an order to appear and
34show cause why temporary authority to operate the residential care
35facility for the elderly should not be vested in a receiver pursuant
36to this section, shall be delivered to the licensee, administrator, or
37a responsible person at the facility to the attention of the licensee
38and administrator. The order shall specify a hearing date, which
39shall be not less than 10, nor more than 15, days following delivery
P37   1of the petition and order upon the licensee, except that the court
2may shorten or lengthen the time upon a showing of just cause.

3(c) (1) If the director files a petition pursuant to subdivision (b)
4for appointment of a receiver to operate a residential care facility
5for the elderly, in accordance with Section 564 of the Code of Civil
6Procedure, the director may also petition the court, in accordance
7with Section 527 of the Code of Civil Procedure, for an order
8appointing a temporary receiver. A temporary receiver appointed
9by the court pursuant to this subdivision shall serve until the court
10has made a final determination on the petition for appointment of
11a receiver filed pursuant to subdivision (b). A receiver appointed
12pursuant to this subdivision shall have the same powers and duties
13as a receiver would have if appointed pursuant to subdivision (b).
14Upon the director filing a petition for a receiver, the receiver shall
15complete its application for a provisional license to operate a
16residential care facility for the elderly. For purposes of a
17provisional license issued to a receiver, the licensee’s existing fire
18safety clearance shall serve as the fire safety clearance for the
19receiver’s provisional license.

20(2) At the time of the hearing, the department shall advise the
21licensee of the name of the proposed receiver. The receiver shall
22be a certified residential care facility for the elderly administrator
23or other responsible person or entity, as determined by the court,
24from a list of qualified receivers established by the department,
25and, if need be, with input from providers of residential care and
26consumer representatives. Persons appearing on the list shall have
27experience in the delivery of care services to clients of community
28care facilities, and, if feasible, shall have experience with the
29operation of a residential care facility for the elderly, shall not be
30the subject of any pending actions by the department or any other
31state agency, and shall not have ever been excluded from a
32department licensed facility nor have had a license or certification
33suspended or revoked by an administrative action by the
34department or any other state agency. The receivers shall have
35sufficient background and experience in management and finances
36to ensure compliance with orders issued by the court. The owner,
37 licensee, or administrator shall not be appointed as the receiver
38unless authorized by the court.

39(3) If at the conclusion of the hearing, which may include oral
40testimony and cross-examination at the option of any party, the
P38   1court determines that adequate grounds exist for the appointment
2of a receiver and that there is no other reasonably available remedy
3to protect the residents, the court may issue an order appointing a
4receiver to temporarily operate the residential care facility for the
5elderly and enjoining the licensee from interfering with the receiver
6in the conduct of his or her duties. In these proceedings, the court
7shall make written findings of fact and conclusions of law and
8shall require an appropriate bond to be filed by the receiver and
9paid for by the licensee. The bond shall be in an amount necessary
10to protect the licensee in the event of any failure on the part of the
11receiver to act in a reasonable manner. The bond requirement may
12be waived by the licensee.

13(4) The court may permit the licensee to participate in the
14continued operation of the facility during the pendency of any
15receivership ordered pursuant to this section and shall issue an
16order detailing the nature and scope of participation.

17(5) Failure of the licensee to appear at the hearing on the petition
18shall constitute an admission of all factual allegations contained
19in the petition for purposes of these proceedings only.

20(6) The licensee shall receive notice and a copy of the
21application each time the receiver applies to the court or the
22department for instructions regarding his or her duties under this
23section, when an accounting pursuant to subdivision (i) is
24submitted, and when any other report otherwise required under
25this section is submitted. The licensee shall have an opportunity
26to present objections or otherwise participate in those proceedings.

27(d) A person shall not impede the operation of a receivership
28created under this section. The receiver’s access to, or possession
29of, the property shall not be interfered with during the term of the
30receivership. There shall be an automatic stay for a 60-day period
31subsequent to the appointment of a receiver of any action that
32would interfere with the functioning of the facility, including, but
33not limited to, cancellation of insurance policies executed by the
34licensees, termination of utility services, attachments, or setoffs
35of resident trust funds and working capital accounts and
36repossession of equipment in the facility.

37(e) When a receiver is appointed, the licensee may, at the
38discretion of the court, be divested of possession and control of
39the facility in favor of the receiver. If the court divests the licensee
40of possession and control of the facility in favor of the receiver,
P39   1the department shall immediately issue a provisional license to the
2receiver. Notwithstanding the applicable sections of this code
3governing the revocation of a provisional license, the provisional
4license issued to a receiver shall automatically expire upon the
5termination of the receivership. The receiver shall possess the
6provisional license solely for purposes of carrying out the
7responsibilities authorized by this section and the duties ordered
8by the court. The receiver shall have no right to appeal the
9expiration of the provisional license.

10(f) A receiver appointed pursuant to this section:

11(1) May exercise those powers and shall perform those duties
12ordered by the court, in addition to other duties provided by statute.

13(2) Shall operate the facility in a manner that ensures the safety
14and adequate care for the residents.

15(3) Shall have the same rights to possession of the building in
16which the facility is located, and of all goods and fixtures in the
17building at the time the petition for receivership is filed, as the
18licensee and administrator would have had if the receiver had not
19been appointed.

20(4) May use the funds, building, fixtures, furnishings, and any
21accompanying consumable goods in the provision of care and
22services to residents and to any other persons receiving services
23from the facility at the time the petition for receivership was filed.

24(5) Shall take title to all revenue coming to the facility in the
25name of the receiver who shall use it for the following purposes
26in descending order of priority:

27(A) To pay wages to staff. The receiver shall have full power
28to hire, direct, manage, and discharge employees of the facility,
29subject to any contractual rights they may have. The receiver shall
30pay employees at the same rate of compensation, including
31benefits, that the employees would have received from the licensee
32or wages necessary to provide adequate staff for the protection of
33the clients and compliance with the law.

34(B) To preserve resident funds. The receiver shall be entitled
35to, and shall take, possession of all property or assets of residents
36that are in the possession of the licensee or operator of the facility.
37The receiver shall preserve all property, assets, and records of
38residents of which the receiver takes possession.

39(C) To contract for outside services as may be needed for the
40operation of the residential care facility for the elderly. Any
P40   1contract for outside services in excess of five thousand dollars
2($5,000) shall be approved by the court.

3(D) To pay commercial creditors of the facility to the extent
4required to operate the facility. Except as provided in subdivision
5(h), the receiver shall honor all leases, mortgages, and secured
6transactions affecting the building in which the facility is located
7and all goods and fixtures in the building of which the receiver
8has taken possession, but only to the extent of payments which,
9in the case of a rental agreement, are for the use of the property
10during the period of receivership, or which, in the case of a
11purchase agreement, come due during the period of receivership.

12(E) To receive a salary, as approved by the court.

13(F) To do all things necessary and proper to maintain and operate
14the facility in accordance with sound fiscal policies. The receiver
15shall take action as is reasonably necessary to protect or conserve
16the assets or property of which the receiver takes possession and
17may use those assets or property only in the performance of the
18powers and duties set out in this section and by order of the court.

19(G) To ask the court for direction in the treatment of debts
20incurred prior to the appointment, if the licensee’s debts appear
21extraordinary, of questionable validity, or unrelated to the normal
22and expected maintenance and operation of the facility, or if
23payment of the debts will interfere with the purposes of
24receivership.

25(g) (1) A person who is served with notice of an order of the
26court appointing a receiver and of the receiver’s name and address
27shall be liable to pay the receiver, rather than the licensee, for any
28goods or services provided by the residential care facility for the
29elderly after the date of the order. The receiver shall give a receipt
30for each payment and shall keep a copy of each receipt on file.
31The receiver shall deposit amounts received in a special account
32and shall use this account for all disbursements. Payment to the
33receiver pursuant to this subdivision shall discharge the obligation
34to the extent of the payment and shall not thereafter be the basis
35of a claim by the licensee or any other person. A resident shall not
36be evicted nor may any contract or rights be forfeited or impaired,
37nor may any forfeiture be effected or liability increased, by reason
38of an omission to pay the licensee, operator, or other person a sum
39paid to the receiver pursuant to this subdivision.

P41   1(2) This section shall not be construed to suspend, during the
2temporary management by the receiver, any obligation of the
3licensee for payment of local, state, or federal taxes. A licensee
4shall not be held liable for acts or omissions of the receiver during
5the term of the temporary management.

6(3) Upon petition of the receiver, the court may order immediate
7payment to the receiver for past services that have been rendered
8and billed, and the court may also order a sum not to exceed one
9month’s advance payment to the receiver of any sums that may
10become payable under the Medi-Cal program.

11(h) (1) A receiver shall not be required to honor a lease,
12mortgage, or secured transaction entered into by the licensee of
13the facility and another party if the court finds that the agreement
14between the parties was entered into for a collusive, fraudulent
15purpose or that the agreement is unrelated to the operation of the
16facility.

17(2) A lease, mortgage, or secured transaction or an agreement
18unrelated to the operation of the facility that the receiver is
19permitted to dishonor pursuant to this subdivision shall only be
20subject to nonpayment by the receiver for the duration of the
21receivership, and the dishonoring of the lease, mortgage, security
22interest, or other agreement, to this extent, by the receiver shall
23not relieve the owner or operator of the facility from any liability
24for the full amount due under the lease, mortgage, security interest,
25or other agreement.

26(3) If the receiver is in possession of real estate or goods subject
27to a lease, mortgage, or security interest that the receiver is
28permitted to avoid pursuant to paragraph (1), and if the real estate
29or goods are necessary for the continued operation of the facility,
30the receiver may apply to the court to set a reasonable rent, price,
31or rate of interest to be paid by the receiver during the duration of
32the receivership. The court shall hold a hearing on this application
33within 15 days. The receiver shall send notice of the application
34to any known owner of the property involved at least 10 days prior
35to the hearing.

36(4) Payment by the receiver of the amount determined by the
37court to be reasonable is a defense to any action against the receiver
38for payment or possession of the goods or real estate, subject to
39the lease or mortgage, which is brought by any person who received
40the notice required by this subdivision. However, payment by the
P42   1receiver of the amount determined by the court to be reasonable
2shall not relieve the owner or operator of the facility from any
3liability for the difference between the amount paid by the receiver
4and the amount due under the original lease, mortgage, or security
5interest.

6(i) A monthly accounting shall be made by the receiver to the
7department of all moneys received and expended by the receiver
8on or before the 15th day of the following month or as ordered by
9the court, and the remainder of income over expenses for that
10month shall be returned to the licensee. A copy of the accounting
11shall be provided to the licensee. The licensee or owner of the
12residential care facility for the elderly may petition the court for
13a determination as to the reasonableness of any expenditure made
14pursuant to paragraph (5) of subdivision (f).

15(j) (1) The receiver shall be appointed for an initial period of
16not more than three months. The initial three-month period may
17be extended for additional periods not exceeding three months, as
18determined by the court pursuant to this section. At the end of one
19month, the receiver shall report to the court on its assessment of
20the probability that the residential care facility for the elderly will
21meet state standards for operation by the end of the initial
22three-month period and will continue to maintain compliance with
23those standards after termination of the receiver’s management.
24If it appears that the facility cannot be brought into compliance
25with state standards within the initial three-month period, the court
26shall take appropriate action as follows:

27(A) Extend the receiver’s management for an additional three
28months if there is a substantial likelihood that the facility will meet
29state standards within that period and will maintain compliance
30with the standards after termination of the receiver’s management.
31The receiver shall report to the court in writing upon the facility’s
32progress at the end of six weeks of any extension ordered pursuant
33to this paragraph.

34(B) Order the director to revoke or temporarily suspend, or both,
35the license pursuant to Section 1569.50 and extend the receiver’s
36management for the period necessary to transfer clients in
37accordance with the transfer plan, but for not more than three
38months from the date of initial appointment of a receiver, or 14
39days, whichever is greater. An extension of an additional three
40months may be granted if deemed necessary by the court.

P43   1(2) If it appears at the end of six weeks of an extension ordered
2pursuant to subparagraph (A) of paragraph (1) that the facility
3cannot be brought into compliance with state standards for
4operation or that it will not maintain compliance with those
5standards after the receiver’s management is terminated, the court
6shall take appropriate action as specified in subparagraph (B) of
7paragraph (1).

8(3) In evaluating the probability that a residential care facility
9for the elderly will maintain compliance with state standards of
10operation after the termination of receiver management ordered
11by the court, the court shall consider at least the following factors:

12(A) The duration, frequency, and severity of past violations in
13the facility.

14(B) History of compliance in other care facilities operated by
15the proposed licensee.

16(C) Efforts by the licensee to prevent and correct past violations.

17(D) The financial ability of the licensee to operate in compliance
18with state standards.

19(E) The recommendations and reports of the receiver.

20(4) Management of a residential care facility for the elderly
21operated by a receiver pursuant to this section shall not be returned
22to the licensee, to any person related to the licensee, or to any
23person who served as a member of the facility’s staff or who was
24employed by the licensee prior to the appointment of the receiver
25unless both of the following conditions are met:

26(A) The department believes that it would be in the best interests
27of the residents of the facility, requests that the court return the
28operation of the facility to the former licensee, and provides clear
29and convincing evidence to the court that it is in the best interests
30of the facility’s residents to take that action.

31(B) The court finds that the licensee has fully cooperated with
32the department in the appointment and ongoing activities of a
33receiver appointed pursuant to this section, and, if applicable, any
34temporary manager appointed pursuant to Section 1569.481.

35(5) The owner of the facility may at any time sell, lease, or close
36 the facility, subject to the following provisions:

37(A) If the owner closes the facility, or the sale or lease results
38in the closure of the facility, the court shall determine if a transfer
39plan is necessary. If the court so determines, the court shall adopt
P44   1and implement a transfer plan consistent with the provisions of
2Section 1569.682.

3(B) If the licensee proposes to sell or lease the facility and the
4facility will continue to operate as a residential care facility for
5the elderly, the court and the department shall reevaluate any
6proposed transfer plan. If the court and the department determine
7that the sale or lease of the facility will result in compliance with
8licensing standards, the transfer plan and the receivership shall,
9subject to those conditions that the court may impose and enforce,
10be terminated upon the effective date of the sale or lease.

11(k) (1) The salary of the receiver shall be set by the court
12commensurate with community care facility industry standards,
13giving due consideration to the difficulty of the duties undertaken,
14and shall be paid from the revenue coming to the facility. If the
15revenue is insufficient to pay the salary in addition to other
16expenses of operating the facility, the receiver’s salary shall be
17paid from the emergency resident contingency account as provided
18in Section 1569.48. State advances of funds in excess of five
19thousand dollars ($5,000) shall be approved by the director. Total
20advances for encumbrances and expenditures shall not exceed the
21sum of forty-nine thousand nine hundred ninety-nine dollars
22($49,999) unless approved by the director in writing.

23(2) To the extent state funds are advanced for the salary of the
24receiver or for other expenses in connection with the receivership,
25as limited by subdivision (g), the state shall be reimbursed from
26the revenues accruing to the facility or to the licensee or an entity
27related to the licensee. Any reimbursement received by the state
28shall be redeposited in the account from which the state funds were
29advanced. If the revenues are insufficient to reimburse the state,
30the unreimbursed amount shall constitute grounds for a monetary
31judgment in civil court and a subsequent lien upon the assets of
32the facility or the proceeds from the sale thereof. Pursuant to
33Chapter 2 (commencing with Section 697.510) of Division 2 of
34Title 9 of Part 2 of the Code of Civil Procedure, a lien against the
35personal assets of the facility or an entity related to the licensee
36based on the monetary judgment obtained shall be filed with the
37Secretary of State on the forms required for a notice of judgment
38lien. A lien against the real property of the facility or an entity
39related to the licensee based on the monetary judgment obtained
40shall be recorded with the county recorder of the county where the
P45   1facility of the licensee is located or where the real property of the
2entity related to the licensee is located. The lien shall not attach
3to the interests of a lessor, unless the lessor is operating the facility.
4 The authority to place a lien against the personal and real property
5of the licensee for the reimbursement of any state funds expended
6pursuant to this section shall be given judgment creditor priority.

7(3) For purposes of this subdivision, “entity related to the
8licensee” means an entity, other than a natural person, of which
9the licensee is a subsidiary or an entity in which any person who
10was obligated to disclose information under Section 1569.15
11possesses an interest that would also require disclosure pursuant
12to Section 1569.15.

13(l) (1) This section does not impair the right of the owner of a
14residential care facility for the elderly to dispose of his or her
15property interests in the facility, but any facility operated by a
16receiver pursuant to this section shall remain subject to that
17administration until terminated by the court. The termination shall
18be promptly effectuated, provided that the interests of the residents
19have been safeguarded as determined by the court.

20(2) This section does not limit the power of the court to appoint
21a receiver under any other applicable provision of law or to order
22any other remedy available under law.

23(m) (1) Notwithstanding any other provision of law, the receiver
24shall be liable only for damages resulting from gross negligence
25in the operation of the facility or intentional tortious acts.

26(2) All governmental immunities otherwise applicable to the
27State of California shall also apply in the use of a receiver in the
28operationbegin delete ifend deletebegin insert ofend insert a facility pursuant to this section.

29(3) The licensee shall not be liable for any occurrences during
30the receivership except to the extent that the occurrences are the
31result of the licensee’s conduct.

32(n) The department may adopt regulations for the administration
33of this section. This section does not impair the authority of the
34department to temporarily suspend licenses under Section 1569.50
35or to reach a voluntary agreement with the licensee for alternate
36management of a community care facility including the use of a
37temporary manager under Section 1569.481. This section does not
38authorize the department to interfere in a labor dispute.

P46   1(o) This section does not apply to a residential care facility for
2the elderly that serves six or fewer persons and is also the principal
3residence of the licensee.

4(p) This section does not apply to a licensee that has obtained
5a certificate of authority to offer continuing care contracts, as
6defined in paragraph (8) of subdivision (c) of Section 1771.

7

begin deleteSEC. 5.end delete
8begin insertSEC. 7.end insert  

Section 1569.682 of the Health and Safety Code is
9amended to read:

10

1569.682.  

(a) A licensee of a licensed residential care facility
11for the elderly shall, prior to transferring a resident of the facility
12to another facility or to an independent living arrangement as a
13result of the forfeiture of a license, as described in subdivision (a),
14(b), or (f) of Section 1569.19, or a change of use of the facility
15pursuant to the department’s regulations, take all reasonable steps
16to transfer affected residents safely and to minimize possible
17transfer trauma, and shall, at a minimum, do all of the following:

18(1) Prepare, for each resident, a relocation evaluation of the
19needs of that resident, which shall include both of the following:

20(A) Recommendations on the type of facility that would meet
21the needs of the resident based on the current service plan.

22(B) A list of facilities, within a 60-mile radius of the resident’s
23current facility, that meet the resident’s present needs.

24(2) Provide each resident or the resident’s responsible person
25with a written notice no later than 60 days before the intended
26eviction. The notice shall include all of the following:

27(A) The reason for the eviction, with specific facts to permit a
28determination of the date, place, witnesses, and circumstances
29concerning the reasons.

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

31(C) The relocation evaluation.

32(D) A list of referral agencies.

33(E) The right of the resident or resident’s legal representative
34to contact the department to investigate the reasons given for the
35eviction pursuant to Section 1569.35.

36(F) The contact information for the local long-term care
37ombudsman, including address and telephone number.

38(3) Discuss the relocation evaluation with the resident and his
39or her legal representative within 30 days of issuing the notice of
40eviction.

P47   1(4) Submit a written report of any eviction to the licensing
2agency within five days.

3(5) Upon issuing the written notice of eviction, a licensee shall
4not accept new residents or enter into new admission agreements.

5(6) (A) For paid preadmission fees in excess of five hundred
6dollars ($500), the resident is entitled to a refund in accordance
7with all of the following:

8(i) A 100-percent refund if preadmission fees were paid within
9six months of notice of eviction.

10(ii) A 75-percent refund if preadmission fees were paid more
11than six months but not more than 12 months before notice of
12eviction.

13(iii) A 50-percent refund if preadmission fees were paid more
14than 12 months but not more than 18 months before notice of
15eviction.

16(iv) A 25-percent refund if preadmission fees were paid more
17than 18 months but less than 25 months before notice of eviction.

18(B) No preadmission refund is required if preadmission fees
19were paid 25 months or more before the notice of eviction.

20(C) The preadmission refund required by this paragraph shall
21be paid within 15 days of issuing the eviction notice. In lieu of the
22refund, the resident may request that the licensee provide a credit
23toward the resident’s monthly fee obligation in an amount equal
24to the preadmission fee refund due.

25(7) If the resident gives notice five days before leaving the
26facility, the licensee shall refund to the resident or his or her legal
27representative a proportional per diem amount of any prepaid
28monthly fees at the time the resident leaves the facility and the
29unit is vacated. Otherwise the licensee shall pay the refund within
30seven days from the date that the resident leaves the facility and
31the unit is vacated.

32(8) Within 10 days of all residents having left the facility, the
33licensee, based on information provided by the resident or
34resident’s legal representative, shall submit a final list of names
35and new locations of all residents to the department and the local
36ombudsman program.

37(b) If seven or more residents of a residential care facility for
38the elderly will be transferred as a result of the forfeiture of a
39license or change in the use of the facility pursuant to subdivision
40(a), the licensee shall submit a proposed closure plan to the
P48   1department for approval. The department shall approve or
2disapprove the closure plan, and monitor its implementation, in
3accordance with the following requirements:

4(1) Upon submission of the closure plan, the licensee shall be
5prohibited from accepting new residents and entering into new
6admission agreements for new residents.

7(2) The closure plan shall meet the requirements described in
8subdivision (a), and describe the staff available to assist in the
9transfers. The department’s review shall include a determination
10as to whether the licensee’s closure plan contains a relocation
11evaluation for each resident.

12(3) Within 15 working days of receipt, the department shall
13approve or disapprove the closure plan prepared pursuant to this
14subdivision, and, if the department approves the plan, it shall
15become effective upon the date the department grants its written
16approval of the plan.

17(4) If the department disapproves a closure plan, the licensee
18may resubmit an amended plan, which the department shall
19promptly either approve or disapprove, within 10 working days
20of receipt by the department of the amended plan. If the department
21fails to approve a closure plan, it shall inform the licensee, in
22writing, of the reasons for the disapproval of the plan.

23(5) If the department fails to take action within 20 working days
24of receipt of either the original or the amended closure plan, the
25 plan, or amended plan, as the case may be, shall be deemed
26approved.

27(6) Until such time that the department has approved a licensee’s
28closure plan, the facility shall not issue a notice of transfer or
29require any resident to transfer.

30(7) Upon approval by the department, the licensee shall send a
31copy of the closure plan to the local ombudsman program.

32(c) (1) If a licensee fails to comply with the requirements of
33this section, or if the director determines that it is necessary to
34protect the residents of a facility from physical or mental abuse,
35abandonment, or any other substantial threat to health or safety,
36the department shall take any necessary action to minimize trauma
37for the residents, including caring for the residents through the use
38of a temporary manager or receiver as provided for in Sections
391569.481 and 1569.482 when the director determines the immediate
40relocation of the residents is not feasible based on transfer trauma
P49   1or other considerations such as the unavailability of alternative
2placements. The department shall contact any local agency that
3may have assessment placement, protective, or advocacy
4responsibility for the residents, and shall work together with those
5agencies to locate alternative placement sites, contact relatives or
6other persons responsible for the care of these residents, provide
7onsite evaluation of the residents, and assist in the transfer of
8residents.

9(2) The participation of the department and local agencies in
10the relocation of residents from a residential care facility for the
11elderly shall not relieve the licensee of any responsibility under
12this section. A licensee that fails to comply with the requirements
13of this section shall be required to reimburse the department and
14local agencies for the cost of providing the relocation services or
15the costs incurred in caring for the residents through the use of a
16temporary manager or receiver as provided for in Sections
171569.481 and 1569.482. If the licensee fails to provide the
18relocation services required in this section, then the department
19may request that the Attorney General’s office, the city attorney’s
20office, or the local district attorney’s office seek injunctive relief
21and damages in the same manner as provided for in Chapter 5
22(commencing with Section 17200) of Part 2 of Division 7 of the
23Business and Professions Code, including restitution to the
24department of any costs incurred in caring for the residents through
25the use of a temporary manager or receiver as provided for in
26Sections 1569.481 and 1569.482.

27(d) A licensee who fails to comply with requirements of this
28section shall be liable for the imposition of civil penalties in the
29amount of one hundred dollars ($100) per violation per day for
30each day that the licensee is in violation of this section, until such
31time that the violation has been corrected. The civil penalties shall
32be issued immediately following the written notice of violation.
33However, if the violation does not present an immediate or
34substantial threat to the health or safety of residents and the licensee
35corrects the violation within three days after receiving the notice
36of violation, the licensee shall not be liable for payment of any
37civil penalties pursuant to this subdivision related to the corrected
38violation.

39(e) A resident of a residential care facility for the elderly covered
40 under thisbegin delete section,end deletebegin insert sectionend insert may bring a civil action against any
P50   1person, firm, partnership, or corporation who owns, operates,
2establishes, manages, conducts, or maintains a residential care
3facility for the elderly who violates the rights of a resident, as set
4forth in this section. Any person, firm, partnership, or corporation
5who owns, operates, establishes, manages, conducts, or maintains
6a residential care facility for the elderly who violates this section
7shall be responsible for the acts of the facility’s employees and
8shall be liable for costs and attorney’s fees. Any such residential
9care facility for the elderly may also be enjoined from permitting
10the violation to continue. The remedies specified in this section
11 shall be in addition to any other remedy provided by law.

12(f) This section shall not apply to a licensee that has obtained
13a certificate of authority to offer continuing care contracts, as
14defined in paragraph (8) of subdivision (c) of Section 1771.

15begin insert

begin insertSEC. 7.5.end insert  

end insert

begin insertSection 1569.682 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
16amended to read:end insert

17

1569.682.  

(a) A licensee of a licensed residential care facility
18for the elderly shall, prior to transferring a resident of the facility
19to another facility or to an independent living arrangement as a
20result of the forfeiture of a license, as described in subdivision (a),
21(b), or (f) of Section 1569.19, or a change of use of the facility
22pursuant to the department’s regulations, take all reasonable steps
23to transfer affected residents safely and to minimize possible
24transfer trauma, and shall, at a minimum, do all of the following:

25(1) Prepare, for each resident, a relocation evaluation of the
26needs of that resident, which shall include both of the following:

27(A) Recommendations on the type of facility that would meet
28the needs of the resident based on the current service plan.

29(B) A list of facilities, within a 60-mile radius of the resident’s
30current facility, that meet the resident’s present needs.

31(2) Provide each resident or the resident’s responsible person
32with a written notice no later than 60 days before the intended
33eviction. The notice shall include all of the following:

34(A) The reason for the eviction, with specific facts to permit a
35determination of the date, place, witnesses, and circumstances
36concerning the reasons.

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

38(C) The relocation evaluation.

39(D) A list of referral agencies.

P51   1(E) The right of the resident or resident’s legal representative
2to contact the department to investigate the reasons given for the
3eviction pursuant to Section 1569.35.

4(F) The contact information for the local long-term care
5ombudsman, including address and telephone number.

6(3) Discuss the relocation evaluation with the resident and his
7or her legal representative within 30 days of issuing the notice of
8eviction.

9(4) Submit a written report of any eviction to the licensing
10agency within five days.

11(5) Upon issuing the written notice of eviction, a licensee shall
12not accept new residents or enter into new admission agreements.

13(6) (A) For paid preadmission fees in excess of five hundred
14dollars ($500), the resident is entitled to a refund in accordance
15with all of the following:

16(i) A 100-percent refund if preadmission fees were paid within
17six months of notice of eviction.

18(ii) A 75-percent refund if preadmission fees were paid more
19than six months but not more than 12 months before notice of
20eviction.

21(iii) A 50-percent refund if preadmission fees were paid more
22than 12 months but not more than 18 months before notice of
23eviction.

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

26(B) No preadmission refund is required if preadmission fees
27were paid 25 months or more before the notice of eviction.

28(C) The preadmission refund required by this paragraph shall
29be paid within 15 days of issuing the eviction notice. In lieu of the
30refund, the resident may request that the licensee provide a credit
31toward the resident’s monthly fee obligation in an amount equal
32to the preadmission fee refund due.

33(7) If the resident gives notice five days before leaving the
34facility, the licensee shall refund to the resident or his or her legal
35representative a proportional per diem amount of any prepaid
36monthly fees at the time the resident leaves the facility and the
37unit is vacated. Otherwise the licensee shall pay the refund within
38seven days from the date that the resident leaves the facility and
39the unit is vacated.

P52   1(8) Within 10 days of all residents having left the facility, the
2licensee, based on information provided by the resident or
3resident’s legal representative, shall submit a final list of names
4and new locations of all residents to the department and the local
5ombudsman program.

6(b) If seven or more residents of a residential care facility for
7the elderly will be transferred as a result of the forfeiture of a
8license or change in the use of the facility pursuant to subdivision
9(a), the licensee shall submit a proposed closure plan to the
10department for approval. The department shall approve or
11disapprove the closure plan, and monitor its implementation, in
12accordance with the following requirements:

13(1) Upon submission of the closure plan, the licensee shall be
14prohibited from accepting new residents and entering into new
15admission agreements for new residents.

16(2) The closure plan shall meet the requirements described in
17subdivision (a), and describe the staff available to assist in the
18transfers. The department’s review shall include a determination
19as to whether the licensee’s closure plan contains a relocation
20evaluation for each resident.

21(3) Within 15 working days of receipt, the department shall
22approve or disapprove the closure plan prepared pursuant to this
23subdivision, and, if the department approves the plan, it shall
24become effective upon the date the department grants its written
25approval of the plan.

26(4) If the department disapproves a closure plan, the licensee
27may resubmit an amended plan, which the department shall
28promptly either approve or disapprove, within 10 working days
29of receipt by the department of the amended plan. If the department
30fails to approve a closure plan, it shall inform the licensee, in
31writing, of the reasons for the disapproval of the plan.

32(5) If the department fails to take action within 20 working days
33of receipt of either the original or the amended closure plan, the
34plan, or amended plan, as the case may be, shall be deemed
35approved.

36(6) Until such time that the department has approved a licensee’s
37closure plan, the facility shall not issue a notice of transfer or
38require any resident to transfer.

39(7) Upon approval by the department, the licensee shall send a
40copy of the closure plan to the local ombudsman program.

P53   1(c) (1) If a licensee fails to comply with the requirements of
2this section,begin delete andend deletebegin insert orend insert if the director determines that it is necessary
3to protect the residents of a facility from physical or mental abuse,
4abandonment, or any other substantial threat to health or safety,
5the department shall take any necessary action to minimize trauma
6for the residents, including caring for the residents through the use
7of a temporary managerbegin insert or receiverend insert as provided for inbegin delete Section
81569.481end delete
begin insert Sections 1569.481 and 1569.482end insert when the director
9determines the immediate relocation of the residents is not feasible
10based on transfer trauma or other considerations such as the
11unavailability of alternative placements. The department shall
12contact any local agency that may have assessment placement,
13protective, or advocacy responsibility for the residents, and shall
14work together with those agencies to locate alternative placement
15sites, contact relatives or other persons responsible for the care of
16these residents, provide onsite evaluation of the residents, and
17assist in the transfer of residents.

18(2) The participation of the department and local agencies in
19the relocation of residents from a residential care facility for the
20elderly shall not relieve the licensee of any responsibility under
21this section. A licensee that fails to comply with the requirements
22of this section shall be required to reimburse the department and
23local agencies for the cost of providing the relocation services or
24the costs incurred in caring for the residents through the use of a
25temporary managerbegin insert or receiverend insert as provided for inbegin delete Section
261569.481.end delete
begin insert Sections 1569.481 and 1569.482.end insert If the licensee fails
27to provide the relocation services required in this section, then the
28department may request that the Attorney General’s office, the
29city attorney’s office, or the local district attorney’s office seek
30injunctive relief and damages in the same manner as provided for
31in Chapter 5 (commencing with Section 17200) of Part 2 of
32Division 7 of the Business and Professions Code, including
33restitution to the department of any costs incurred in caring for the
34residents through the use of a temporary managerbegin insert or receiverend insert as
35provided for inbegin delete Section 1569.481.end deletebegin insert Sections 1569.481 and 1569.482.end insert

36(d) A licensee who fails to comply with requirements of this
37section shall be liable for the imposition of civil penalties in the
38amount of one hundred dollars ($100) per violation per day for
39each day that the licensee is in violation of this section, until such
40time that the violation has been corrected. The civil penalties shall
P54   1be issued immediately following the written notice of violation.
2However, if the violation does not present an immediate or
3substantial threat to the health or safety of residents and the licensee
4corrects the violation within three days after receiving the notice
5of violation, the licensee shall not be liable for payment of any
6civil penalties pursuant to this subdivision related to the corrected
7violation.

begin insert

8(e) A licensee, on and after January 1, 2015, who fails to comply
9with this section and abandons the facility and the residents in
10care resulting in an immediate and substantial threat to the health
11and safety of the abandoned residents, in addition to forfeiture of
12the license pursuant to Section 1569.19, shall be excluded from
13licensure in facilities licensed by the department without the right
14to petition for reinstatement.

end insert
begin delete

15(e)

end delete

16begin insert(f)end insert A resident of a residential care facility for the elderly covered
17under thisbegin delete section,end deletebegin insert sectionend insert may bring a civil action against any
18person, firm, partnership, or corporation who owns, operates,
19establishes, manages, conducts, or maintains a residential care
20facility for the elderly who violates the rights of a resident, as set
21forth in this section. Any person, firm, partnership, or corporation
22who owns, operates, establishes, manages, conducts, or maintains
23a residential care facility for the elderly who violates this section
24shall be responsible for the acts of the facility’s employees and
25shall be liable for costs and attorney’s fees. Any such residential
26care facility for the elderly may also be enjoined from permitting
27the violation to continue. The remedies specified in this section
28shall be in addition to any other remedy provided by law.

begin delete

29(f)

end delete

30begin insert(g)end insert This section shall not apply to a licensee that has obtained
31a certificate of authority to offer continuing care contracts, as
32defined in paragraph (8) of subdivision (c) of Section 1771.

33

begin deleteSEC. 6.end delete
34begin insertSEC. 8.end insert  

Section 11461.3 of the Welfare and Institutions Code,
35as added by Section 74 of Chapter 29 of the Statutes of 2014, is
36amended to read:

37

11461.3.  

(a) The Approved Relative Caregiver Funding Option
38Program is hereby established for the purpose of making the
39amount paid to approved relative caregivers for the in-home care
40of children placed with them who are ineligible for AFDC-FC
P55   1payments equal to the amount paid on behalf of children who are
2eligible for AFDC-FC payments. This is an optional program for
3counties choosing to participate, and in so doing, participating
4counties agree to the terms of this section as a condition of their
5participation. It is the intent of the Legislature that the funding
6described in paragraph (1) of subdivision (e) for the Approved
7Relative Caregiver Funding Option Program be appropriated, and
8available for use from January through December of each year,
9unless otherwise specified.

10(b) Subject to subdivision (c), effective January 1, 2015, counties
11shall pay an approved relative caregiver a per child per month rate
12in return for the care and supervision, as defined in subdivision
13(b) of Section 11460, of a child that is placed with the relative
14caregiver that is equal to the basic rate paid to foster care providers
15pursuant to subdivision (g) of Section 11461, if both of the
16following conditions are met:

17(1) The county with payment responsibility has notified the
18department in writing by October 1 of the year before participation
19begins of its decision to participate in the Approved Relative
20Caregiver Funding Option Program.

21(2) The related child placed in the home meets all of the
22following requirements:

23(A) The child resides in the State of California.

24(B) The child is described by subdivision (b), (c), or (e) of
25Section 11401 and the county welfare department or the county
26probation department is responsible for the placement and care of
27the child.

28(C) The child is not eligible for AFDC-FC while placed with
29the approved relative caregiver because the child is not eligible
30for federal financial participation in the AFDC-FC payment.

31(c) A county’s election to participate in the Approved Relative
32Caregiver Funding Option Program shall affirmatively indicate
33that the county understands and agrees to all of the following
34conditions:

35(1) Commencing October 1, 2014, the county shall notify the
36department in writing of its decision to participate in the Approved
37Relative Caregiver Funding Option Program. Failure to make
38timely notification, without good cause as determined by the
39department, shall preclude the county from participating in the
40program for the upcoming year. Annually thereafter, any county
P56   1not presently participating who elects to do so shall notify the
2department in writing no later than October 1 of its decision to
3participate for the upcoming calendar year.

4(2) The county shall confirm that it will make per child per
5month payments to all approved relative caregivers on behalf of
6eligible children in the amount specified in subdivision (b) for the
7duration of the participation of the county in this program.

8(3) The county shall confirm that it will be solely responsible
9to pay any additional costs needed to make all payments pursuant
10to subdivision (b) if the state and federal funds allocated to the
11Approved Relative Caregiver Funding Option Program pursuant
12to paragraph (1) of subdivision (e) are insufficient to make all
13eligible payments.

14(d) (1) A county deciding to opt out of the Approved Relative
15Caregiver Funding Option Program shall provide at least 120 days’
16prior written notice of that decision to the department. Additionally,
17the county shall provide at least 90 days’ prior written notice to
18the approved relative caregiver or caregivers informing them that
19his or her per child per month payment will be reduced and the
20date that the reduction will occur.

21(2) The department shall presume all counties have opted out
22of the Approved Relative Caregiver Funding Option Program if
23the funding appropriated in subclause (II) of clause (i) of
24subparagraph (B) of paragraph (1) of subdivision (e), including
25any additional funds appropriated pursuant to clause (ii) of
26subparagraph (B) of paragraph (1) of subdivision (e), is reduced,
27unless a county notifies the department in writing of its intent to
28opt in within 60 days of enactment of the state budget. The counties
29shall provide at least 90 days’ prior written notice to the approved
30relative caregiver or caregivers informing them that his or her per
31child per month payment will be reduced, and the date that the
32reduction will occur.

33(3) Any reduction in payments received by an approved relative
34caregiver on behalf of a child under this section that results from
35a decision by a county, including the presumed opt-out pursuant
36to paragraph (2), to not participate in the Approved Relative
37Caregiver Funding Option Program shall be exempt from state
38hearing jurisdiction under Section 10950.

39(e) (1) The following funding shall be used for the Approved
40Relative Caregiver Funding Option Program:

P57   1(A) The applicable regional per-child CalWORKs grant.

2(B) (i) General Fund resources that do not count toward the
3state’s maintenance of effort requirements under Section
4609(a)(7)(B)(i) of Title 42 of the United States Code. For this
5purpose, the following money is hereby appropriated:

6(I) The sum of thirty million dollars ($30,000,000) from the
7General Fund for the period January 1, 2015 through December
831, 2015.

9(II) The sum of thirty million dollars ($30,000,000) from the
10General Fund in each calendar year thereafter, as cumulatively
11adjusted annually by the California Necessities Index used for each
12May Revision of the Governor’s Budget, to be used in each
13respective calendar year.

14(ii) To the extent that the appropriation made in subclause (I)
15is insufficient to fully fund the base caseload of approved relative
16caregivers as of July 1, 2014, for the period of time described in
17subclause (I), as jointly determined by the department and the
18County Welfare Directors’ Association and approved by the
19Department of Finance on or before October 1, 2015, the amounts
20specified in subclauses (I) and (II) shall be increased in the
21respective amounts necessary to fully fund that base caseload.
22Thereafter, the adjusted amount of subclause (II), and the other
23terms of that provision, including an annual California Necessities
24Index adjustment to its amount, shall apply.

25(C) County funds only to the extent required under paragraph
26(3) of subdivision (c).

27(D) This section is intended to appropriate the funding necessary
28to fully fund the base caseload of approved relative caregivers,
29defined as the number of approved relative caregivers caring for
30a child who is not eligible to receive AFDC-FC payments, as of
31July 1, 2014.

32(2) Funds available pursuant to subparagraphs (A) and (B) of
33paragraph (1) shall be allocated to participating counties
34proportionate to the number of their approved relative caregiver
35placements, using a methodology and timing developed by the
36department, following consultation with county human services
37agencies and their representatives.

38(3) Notwithstanding subdivision (c), if in any calendar year the
39entire amount of funding appropriated by the state for the Approved
40Relative Caregiver Funding Option Program has not been fully
P58   1allocated to or utilized by counties, a county that has paid any
2funds pursuant to subparagraph (C) of paragraph (1) of subdivision
3(e) may request reimbursement for those funds from the
4department. The authority of the department to approve the requests
5shall be limited by the amount of available unallocated funds.

6(f) An approved relative caregiver receiving payments on behalf
7of a child pursuant to this section shall not be eligible to receive
8additional CalWORKs payments on behalf of the same child under
9Section 11450.

10(g) To the extent permitted by federal law, payments received
11by the approved relative caregiver from the Approved Relative
12Caregiver Funding Option Program shall not be considered income
13for the purpose of determining other public benefits.

14(h) Prior to referral of any individual or recipient, or that
15person’s case, to the local child support agency for child support
16services pursuant to Section 17415 of the Family Code, the county
17human services agency shall determine if an applicant or recipient
18has good cause for noncooperation, as set forth in Section
1911477.04. If the applicant or recipient claims good cause exception
20at any subsequent time to the county human services agency or
21the local child support agency, the local child support agency shall
22suspend child support services until the county social services
23agency determines the good cause claim, as set forth in Section
2411477.04. If good cause is determined to exist, the local child
25support agency shall suspend child support services until the
26applicant or recipient requests their resumption, and shall take
27other measures that are necessary to protect the applicant or
28recipient and the children. If the applicant or recipient is the parent
29of the child for whom aid is sought and the parent is found to have
30not cooperated without good cause as provided in Section
3111477.04, the applicant’s or recipient’s family grant shall be
32reduced by 25 percent for the time the failure to cooperate lasts.

33(i) Consistent with Section 17552 of the Family Code, if aid is
34paid under this chapter on behalf of a child who is under the
35jurisdiction of the juvenile court and whose parent or guardian is
36receiving reunification services, the county human services agency
37shall determine, prior to referral of the case to the local child
38support agency for child support services, whether the referral is
39in the best interest of the child, taking into account both of the
40following:

P59   1(1) Whether the payment of support by the parent will pose a
2barrier to the proposed reunification in that the payment of support
3will compromise the parent’s ability to meet the requirements of
4the parent’s reunification plan.

5(2) Whether the payment of support by the parent will pose a
6barrier to the proposed reunification in that the payment of support
7will compromise the parent’s current or future ability to meet the
8financial needs of the child.

9

begin deleteSEC. 7.end delete
10begin insertSEC. 9.end insert  

Section 11462.04 of the Welfare and Institutions Code
11 is amended to read:

12

11462.04.  

(a) Notwithstanding any other law, no new group
13home rate or change to an existing rate shall be established pursuant
14to Section 11462. An application shall not be accepted or processed
15for any of the following:

16(1) A new program.

17(2) A new provider.

18(3) A program change, such as a rate classification level (RCL)
19increase.

20(4) A program capacity increase.

21(5) A program reinstatement.

22(b) Notwithstanding subdivision (a), the department may grant
23exceptions as appropriate on a case-by-case basis, based upon a
24written request and supporting documentation provided by county
25placing agencies, including county welfare or probation directors.

26(c) For the 2012-13, 2013-14, and 2014-15 fiscal years,
27notwithstanding subdivision (b), for any program below RCL 10,
28the only exception that may be sought and granted pursuant to this
29section is for an application requesting a program change, such as
30an RCL increase. The authority to grant other exceptions does not
31apply to programs below RCL 10 during these fiscal years.

32

begin deleteSEC. 8.end delete
33begin insertSEC. 10.end insert  

Section 11477 of the Welfare and Institutions Code,
34as amended by Section 75 of Chapter 29 of the Statutes of 2014,
35 is amended to read:

36

11477.  

As a condition of eligibility for aid paid under this
37chapter, each applicant or recipient shall do all of the following:

38(a) (1) Do either of the following:

39(i) For applications received before October 1, 2009, assign to
40the county any rights to support from any other person the applicant
P60   1or recipient may have on his or her own behalf or on behalf of any
2other family member for whom the applicant or recipient is
3applying for or receiving aid, not exceeding the total amount of
4cash assistance provided to the family under this chapter. Receipt
5of public assistance under this chapter shall operate as an
6assignment by operation of law. An assignment of support rights
7to the county shall also constitute an assignment to the state. If
8support rights are assigned pursuant to this subdivision, the
9assignee may become an assignee of record by the local child
10support agency or other public official filing with the court clerk
11an affidavit showing that an assignment has been made or that
12there has been an assignment by operation of law. This procedure
13does not limit any other means by which the assignee may become
14an assignee of record.

15(ii) For applications received on or after October 1, 2009, assign
16to the county any rights to support from any other person the
17applicant or recipient may have on his or her own behalf, or on
18behalf of any other family member for whom the applicant or
19recipient is applying for or receiving aid. The assignment shall
20apply only to support that accrues during the period of time that
21the applicant is receiving assistance under this chapter, and shall
22not exceed the total amount of cash assistance provided to the
23family under this chapter. Receipt of public assistance under this
24chapter shall operate as an assignment by operation of law. An
25assignment of support rights to the county shall also constitute an
26assignment to the state. If support rights are assigned pursuant to
27this subdivision, the assignee may become an assignee of record
28by the local child support agency or other public official filing
29with the court clerk an affidavit showing that an assignment has
30been made or that there has been an assignment by operation of
31law. This procedure does not limit any other means by which the
32assignee may become an assignee of record.

33(2) Support that has been assigned pursuant to paragraph (1)
34and that accrues while the family is receiving aid under this chapter
35shall be permanently assigned until the entire amount of aid paid
36has been reimbursed.

37(3) If the federal government does not permit states to adopt the
38same order of distribution for preassistance and postassistance
39child support arrears that are assigned on or after October 1, 1998,
40support arrears that accrue before the family receives aid under
P61   1this chapter that are assigned pursuant to this subdivision shall be
2assigned as follows:

3(A) Child support assigned prior to January 1, 1998, shall be
4permanently assigned until aid is no longer received and the entire
5amount of aid has been reimbursed.

6(B) Child support assigned on or after January 1, 1998, but prior
7to October 1, 2000, shall be temporarily assigned until aid under
8this chapter is no longer received and the entire amount of aid paid
9has been reimbursed or until October 1, 2000, whichever comes
10first.

11(C) On or after October 1, 2000, support assigned pursuant to
12this subdivision that was not otherwise permanently assigned shall
13be temporarily assigned to the county until aid is no longer
14received.

15(D) On or after October 1, 2000, support that was temporarily
16assigned pursuant to this subdivision shall, when a payment is
17received from the federal tax intercept program, be temporarily
18assigned until the entire amount of aid paid has been reimbursed.

19(4) If the federal government permits states to adopt the same
20order of distribution for preassistance and postassistance child
21support arrears, child support arrears shall be assigned, as follows:

22(A) Child support assigned pursuant to this subdivision prior
23to October 1, 1998, shall be assigned until aid under this chapter
24is no longer received and the entire amount has been reimbursed.

25(B) On or after October 1, 1998, child support assigned pursuant
26to this subdivision that accrued before the family receives aid under
27this chapter and that was not otherwise permanently assigned, shall
28be temporarily assigned until aid under this chapter is no longer
29received.

30(C) On or after October 1, 1998, support that was temporarily
31assigned pursuant to this subdivision shall, when a payment is
32received from the federal tax intercept program, be temporarily
33assigned until the entire amount of aid paid has been reimbursed.

34(b) (1) Cooperate with the county welfare department and local
35child support agency in establishing the paternity of a child of the
36applicant or recipient born out of wedlock with respect to whom
37aid is claimed, and in establishing, modifying, or enforcing a
38support order with respect to a child of the individual for whom
39 aid is requested or obtained, unless the applicant or recipient
40qualifies for a good cause exception pursuant to Section 11477.04.
P62   1The granting of aid shall not be delayed or denied if the applicant
2is otherwise eligible, if the applicant completes the necessary forms
3and agrees to cooperate with the local child support agency in
4securing support and determining paternity, if applicable. The local
5 child support agency shall have staff available, in person or by
6telephone, at all county welfare offices and shall conduct an
7interview with each applicant to obtain information necessary to
8establish paternity and establish, modify, or enforce a support order
9at the time of the initial interview with the welfare office. The local
10child support agency shall make the determination of cooperation.
11If the applicant or recipient attests under penalty of perjury that
12he or she cannot provide the information required by this
13subdivision, the local child support agency shall make a finding
14regarding whether the individual could reasonably be expected to
15provide the information before the local child support agency
16determines whether the individual is cooperating. In making the
17finding, the local child support agency shall consider all of the
18following:

19(A) The age of the child for whom support is sought.

20(B) The circumstances surrounding the conception of the child.

21(C) The age or mental capacity of the parent or caretaker of the
22child for whom aid is being sought.

23(D) The time that has elapsed since the parent or caretaker last
24had contact with the alleged father or obligor.

25(2) Cooperation includes all of the following:

26(A) Providing the name of the alleged parent or obligor and
27other information about that person if known to the applicant or
28recipient, such as address, social security number, telephone
29number, place of employment or school, and the names and
30addresses of relatives or associates.

31(B) Appearing at interviews, hearings, and legal proceedings
32provided the applicant or recipient is provided with reasonable
33advance notice of the interview, hearing, or legal proceeding and
34does not have good cause not to appear.

35(C) If paternity is at issue, submitting to genetic tests, including
36genetic testing of the child, if necessary.

37(D) Providing any additional information known to or reasonably
38obtainable by the applicant or recipient necessary to establish
39paternity or to establish, modify, or enforce a child support order.

P63   1(3) A recipient or applicant shall not be required to sign a
2voluntary declaration of paternity, as set forth in Chapter 3
3(commencing with Section 7570) of Part 2 of Division 12 of the
4Family Code, as a condition of cooperation.

5(c) (1) This section shall not apply if all of the adults are
6excluded from the assistance unit pursuant to Section 11251.3,
711454, or 11486.5.

8(2) It is the intent of the Legislature that the regular receipt of
9child support in the preceding reporting period be considered in
10determining reasonably anticipated income for the following
11reporting period.

12(3) In accordance with Sections 11265.2 and 11265.46, if the
13income of an assistance unit described in paragraph (1) includes
14reasonably anticipated income derived from child support, thebegin delete first
15fifty dollars ($50)end delete
begin insert amount established in Section 17504 of the
16Family Code and Section 11475.3 of the Welfare and Institutions
17Codeend insert
of any amount of child support received each month shall
18not be considered income or resources and shall not be deducted
19from the amount of aid to which the assistance unit otherwise
20would be eligible.

21

begin deleteSEC. 9.end delete
22begin insertSEC. 11.end insert  

Section 12300.4 of the Welfare and Institutions Code,
23as added by Section 76 of Chapter 29 of the Statutes of 2014, is
24amended to read:

25

12300.4.  

(a) Notwithstanding any other law, including, but
26not limited to, Chapter 10 (commencing with Section 3500) of
27Division 4 of Title 1 of the Government Code and Title 23
28(commencing with Section 110000) of the Government Code, a
29recipient who is authorized to receive in-home supportive services
30pursuant to this article, or Section 14132.95, 14132.952, or
3114132.956, administered by the State Department of Social
32Services, or waiver personal care services pursuant to Section
3314132.97, administered by the State Department of Health Care
34Services, or any combination of these services, shall direct these
35authorized services, and the authorized services shall be performed
36by a provider or providers within a workweek and in a manner
37that complies with the requirements of this section.

38(b) (1) A workweek is defined as beginning at 12:00 a.m. on
39Sunday and includes the next consecutive 168 hours, terminating
40at 11:59 p.m. the following Saturday.

P64   1(2) A provider of services specified in subdivision (a) shall not
2work a total number of hours within a workweek that exceeds 66,
3as reduced by the net percentage defined by Sections 12301.02
4and 12301.03, as applicable, and in accordance with subdivision
5(d). The total number of hours worked within a workweek by a
6provider is defined as the sum of the following:

7(A) All hours worked providing authorized services specified
8in subdivision (a).

9(B) Travel time as defined in subdivision (f), only if federal
10financial participation is not available to compensate for that travel
11 time. If federal financial participation is available for travel time
12as defined in subdivision (f), the travel time shall not be included
13in the calculation of the total weekly hours worked within a
14workweek.

15(3) (A) If the authorized in-home supportive services of a
16recipient cannot be provided by a single provider as a result of the
17limitation specified in paragraph (2), it is the responsibility of the
18recipient to employ an additional provider or providers, as needed,
19to ensure his or her authorized services are provided within his or
20her total weekly authorized hours of services established pursuant
21to subdivision (b) of Section 12301.1.

begin delete

22(B) If the provider of authorized waiver personal care services
23cannot provide those services to a recipient as a result of the
24limitation specified in paragraph (2), the State Department of
25Health Care Services shall work with the recipient to engage
26additional providers, as necessary. It is the intent of the Legislature
27that this section shall not result in reduced services authorized to
28recipients of waiver personal care services defined in subdivision
29(a).

end delete
begin insert

30(B) The State Department of Health Care Services shall take
31all necessary and timely steps to ensure that recipients receiving
32services pursuant to the Nursing Facility/Acute Hospital Waiver
33or the In-Home Operations Waiver who are at or near the
34individual cost cap, as that term is used in the applicable waiver,
35do not lose services and are not forced to alter existing provider
36relationships because of increased overtime pay for providers,
37including allowing the recipient to exceed the individual cost cap.
38The department shall provide timely information to waiver
39recipients as to the steps that will be taken.

end insert

P65   1(4) (A) A provider shall inform each of his or her recipients of
2the number of hours that the provider is available to work for that
3recipient, in accordance with this section.

4(B) A recipient, his or her authorized representative, or any
5other entity, including any person or entity providing services
6pursuant to Section 14186.35, shall not authorize any provider to
7work hours that exceed the applicable limitation or limitations of
8this section.

9(C) A recipient may authorize a provider to work hours in excess
10of the recipient’s weekly authorized hours established pursuant to
11Section 12301.1 without notification of the county welfare
12department, in accordance with both of the following:

13(i) The authorization does not result in more than 40 hours of
14authorized services per week being provided.

15(ii) The authorization does not exceed the recipient’s authorized
16hours of monthly services pursuant to paragraph (1) of subdivision
17(b) of Section 12301.1.

18(5) For providers of in-home supportive services, the State
19Department of Social Services or a county may terminate the
20provider from providing services under the IHSS program if a
21provider continues to violate the limitations of this section on
22multiple occasions.

23(c) Notwithstanding any other law, only federal law and
24regulations regarding overtime compensation apply to providers
25of services defined in subdivision (a).

26(d) A provider of services defined in subdivision (a) is subject
27to all of the following, as applicable to his or her situation:

28(1) (A) A provider who works for one individual recipient of
29those services shall not work a total number of hours within a
30workweek that exceeds 66 hours, as reduced by the net percentage
31defined by Sections 12301.02 and 12301.03, as applicable. In no
32circumstance shall the provision of these services by that provider
33to the individual recipient exceed the total weekly hours of the
34services authorized to that recipient, except as additionally
35authorized pursuant to subparagraph (C) of paragraph (4) of
36subdivision (b). If multiple providers serve the same recipient, it
37shall continue to be the responsibility of that recipient or his or
38her authorized representative to schedule the work of his or her
39providers to ensure the authorized services of the recipient are
40provided in accordance with this section.

P66   1(B) When a recipient’s weekly authorized hours are adjusted
2pursuant to subparagraph (C) of paragraph (1) of subdivision (b)
3of Section 12301.1 and exceed 66 hours, as reduced by the net
4percentage defined by Sections 12301.02 and 12301.03, as
5applicable, and at the time of adjustment the recipient currently
6receives all authorized hours of service from one provider, that
7provider shall be deemed authorized to work the recipient’s
8county-approved adjusted hours for that week, but only if the
9additional hours of work, based on the adjustment, do not exceed
10the total number of hours worked that are compensable at an
11overtime pay rate that the provider would have been authorized to
12work in that month if the weekly hours had not been adjusted.

13(2) A provider of in-home supportive services described in
14subdivision (a) who serves multiple recipients is not authorized
15to, and shall not, work more than 66 total hours in a workweek,
16as reduced by the net percentage defined by Sections 12301.02
17and 12301.03, as applicable, regardless of the number of recipients
18for whom the provider provides services authorized by subdivision
19(a). Providers are subject to the limits of each recipient’s total
20authorized weekly hours of in-home supportive services described
21in subdivision (a), except as additionally authorized pursuant to
22subparagraph (C) of paragraph (4) of subdivision (b).

23(e) Recipients and providers shall be informed of the limitations
24and requirements contained in this section, through notices at
25intervals and on forms as determined by the State Department of
26Social Services or the State Department of Health Care Services,
27as applicable, following consultation with stakeholders.

28(f) (1) A provider of services described in subdivision (a) shall
29not engage in travel time in excess of seven hours per week. For
30the purposes of this subdivision, “travel time” means time spent
31traveling directly from a location where authorized services
32specified in subdivision (a) are provided to one recipient, to another
33location where authorized services are to be provided to another
34recipient. A provider shall coordinate hours of work with his or
35her recipients to comply with this section.

36(2) The hourly wage to compensate a provider for travel time
37described in this subdivision when the travel is between two
38counties shall be the hourly wage of the destination county.

39(3) Travel time, and compensation for that travel time, between
40a recipient of authorized in-home supportive services specified in
P67   1subdivision (a) and a recipient of authorized waiver personal care
2services specified in subdivision (a), shall be attributed to the
3program authorizing services for the recipient to whom the provider
4is traveling.

5(4) Hours spent by a provider while engaged in travel time shall
6not be deducted from the authorized hours of service of any
7recipient of services specified in subdivision (a).

8(5) The State Department of Social Services and the State
9Department of Health Care Services shall issue guidance and
10processes for travel time between recipients that will assist the
11provider and recipient to comply with this subdivision. Each county
12shall provide technical assistance to providers and recipients, as
13necessary, to implement this subdivision.

14(g) A provider of authorized in-home supportive services
15specified in subdivision (a) shall timely submit, deliver, or mail,
16verified by postmark or request for delivery, a signed payroll
17timesheet within two weeks after the end of each bimonthly payroll
18period. Notwithstanding any other law, a provider who submits
19an untimely payroll timesheet for providing authorized in-home
20supportive services specified in subdivision (a) shall be paid by
21the state within 30 days of the receipt of the signed payroll
22timesheet.

23(h) This section does not apply to a contract entered into
24pursuant to Section 12302 or 12302.6 for authorized in-home
25supportive services. Contract rates negotiated pursuant to Section
2612302 or 12302.6 shall be based on costs consistent with a 40-hour
27workweek.

28(i) The state and counties are immune from any liability resulting
29from implementation of this section.

30(j) Any action authorized under this section that is implemented
31in a program authorized pursuant to Section 14132.95, 14132.97,
3214132.952, or 14132.956 shall be compliant with federal Medicaid
33requirements, as determined by the State Department of Health
34Care Services.

35(k) Notwithstanding the rulemaking provisions of the
36Administrative Procedure Act (Chapter 3.5 (commencing with
37Section 11340) of Part 1 of Division 3 of Title 2 of the Government
38Code), the State Department of Social Services and the State
39Department of Health Care Services may implement, interpret, or
P68   1make specific this section by means of all-county letters or similar
2instructions, without taking any regulatory action.

3(l) (1) This section shall become operative only when the
4regulatory amendments made by RIN 1235-AA05 to Part 552 of
5Title 29 of the Code of Federal Regulations are deemed effective,
6either on the date specified in RIN 1235-AA05 or at a later date
7specified by the Federal Department of Labor, whichever is later.

8(2) If the regulatory amendments described in paragraph (1)
9become only partially effective by the date specified in paragraph
10(1), this section shall become operative only for those persons for
11whom federal financial participation is available as of that date.

12begin insert

begin insertSEC. 1end insertbegin insert2.end insert  

end insert

begin insertThe Legislature finds and declares that the number
13of unaccompanied, undocumented minors in California has surged
14in recent months, often overwhelming the agencies and
15organizations that care for these minors and help to determine
16their immigration status. Legal representation for unaccompanied
17undocumented minors in California is important to assist these
18minors in navigating through federal immigration proceedings as
19well as related state court actions. end insert

20begin insert

begin insertSEC. 1end insertbegin insert3.end insert  

end insert

begin insertChapter 5.6 (commencing with Section 13300) is
21added to Part 3 of Division 9 of the end insert
begin insertWelfare and Institutions Codeend insertbegin insert,
22to read:end insert

begin insert

23 

24Chapter  begin insert5.6.end insert Legal Counsel for Unaccompanied
25Undocumented Minors
26

 

27

begin insert13300.end insert  

(a) Subject to the availability of funding in the act that
28added this chapter or the annual Budget Act, the department shall
29contract, as described in Section 13301, with qualified nonprofit
30legal services organizations to provide legal services to
31unaccompanied undocumented minors who are transferred to the
32care and custody of the federal Office of Refugee Resettlement and
33who are present in this state.

34(b) Legal services provided in accordance with subdivision (a)
35shall be for the sole purpose of providing legal representation to
36unaccompanied undocumented minors who are in the physical
37custody of the federal Office of Refugee Resettlement or who are
38residing with a family member or other sponsor.

P69   1(c) For purposes of this chapter, the term “unaccompanied
2undocumented minors” means unaccompanied alien children as
3defined in Section 279(g)(2) of Title 6 of the United States Code.

4(d) For purposes of this chapter, the term “legal services”
5includes culturally and linguistically appropriate services provided
6by attorneys, paralegals, interpreters and other support staff for
7state court proceedings, federal immigration proceedings, and
8any appeals arising from those proceedings.

9

begin insert13301.end insert  

Contracts awarded pursuant to Section 13300 shall
10fulfill all of the following:

11(a) Be executed only with nonprofit legal services organizations
12that meet all of the following requirements:

13(1) Have at least three years of experience handling asylum,
14T-Visa, U-Visa, or special immigrant juvenile status cases and
15have represented at least 25 individuals in these matters.

16(2) Have experience in representing individuals in removal
17proceedings and asylum applications.

18(3) Have conducted trainings on these issues for practitioners
19beyond their staff.

20(4) Have experience guiding and supervising the work of
21attorneys whom themselves do not regularly participate in this
22area of the law but nevertheless work pro bono on the types of
23cases described in paragraph (1).

24(5) Are accredited by the Board of Immigration Appeals under
25the United States Department of Justice’s Executive Office for
26Immigration Review or meet the requirements to receive funding
27from the Trust Fund Program administered by the State Bar of
28California.

29(b) Provide for legal services to unaccompanied undocumented
30minors on a fee-per-case basis, as determined by the department,
31which shall include all administrative and supervisory costs and
32court fees.

33(c) Require reporting, monitoring, or audits of services provided,
34as determined by the department.

35(d) Require contractors to coordinate efforts with the federal
36Office of Refugee Resettlement Legal Access Project in order to
37respond to and assist or represent unaccompanied undocumented
38minors who could benefit from the services provided under this
39chapter.

P70   1(e) Require contractors to maintain adequate legal malpractice
2insurance and to indemnify and hold the state harmless from any
3claims that arise from the legal services provided pursuant to this
4chapter.

5

begin insert13302.end insert  

Notwithstanding any other law:

6(a) Contracts awarded pursuant to this chapter shall be exempt
7from the personal services contracting requirements of Article 4
8(commencing with Section 19130) of Chapter 5 of Part 2 of
9Division 5 of Title 2 of the Government Code.

10(b) Contracts awarded pursuant to this chapter shall be exempt
11from the Public Contract Code and the State Contracting Manual,
12and shall not be subject to the approval of the Department of
13General Services.

14(c) The client information and records of legal services provided
15pursuant to this chapter shall be subject to the requirements of
16Section 10850 and shall be exempt from inspection under the
17California Public Records Act (Chapter 3.5 (commencing with
18Section 6250) of Division 7 of Part 1 of the Government Code).

19(d) The state shall be immune from any liability resulting from
20the implementation of this chapter.

end insert
21

begin deleteSEC. 10.end delete
22begin insertSEC. 14.end insert  

Section 88 of Chapter 29 of the Statutes of 2014 is
23amended to read:

24

SEC. 88.  

(a) Notwithstanding the rulemaking provisions of
25the Administrative Procedure Act (Chapter 3.5 (commencing with
26Section 11340) of Part 1 of Division 3 of Title 2 of the Government
27Code), the department may implement and administer the changes
28made by Sections 1, 64, 67, 68, 69, 70, 72, 73, 74, 75, 77, 79, 80,
2981, 82, and 83 of Chapter 29 of the Statutes of 2014 through
30all-county letters or similar instructions until regulations are
31adopted.

32(b) The department shall adopt emergency regulations
33implementing these provisions no later than January 1, 2016. The
34 department may readopt any emergency regulation authorized by
35this section that is the same as, or substantially equivalent to, any
36emergency regulation previously adopted pursuant to this section.
37The initial adoption of regulations pursuant to this section and one
38readoption of emergency regulations shall be deemed to be an
39emergency and necessary for the immediate preservation of the
40public peace, health, safety, or general welfare. Initial emergency
P71   1regulations and the one readoption of emergency regulations
2authorized by this section shall be exempt from review by the
3Office of Administrative Law. The initial emergency regulations
4and the one readoption of emergency regulations authorized by
5this section shall be submitted to the Office of Administrative Law
6for filing with the Secretary of State and each shall remain in effect
7for no more than 180 days, by which time final regulations shall
8be adopted.

9begin insert

begin insertSEC. 1end insertbegin insert5.end insert  

end insert
begin insert

The provisions of this act are severable. If any
10provision of this act or its application is held invalid, that invalidity
11shall not affect other provisions or applications that can be given
12effect without the invalid provision or application.

end insert
13begin insert

begin insertSEC. 1end insertbegin insert6.end insert  

end insert
begin insert

The Legislature finds and declares that Section 1 of
14this act, which adds Chapter 7 (commencing with Section 155) to
15Part 1 of Title 1 to the Code of Civil Procedure, imposes a
16limitation on the public’s right of access to the meetings of public
17bodies or the writings of public officials and agencies within the
18meaning of Section 3 of Article I of the California Constitution.
19Pursuant to that constitutional provision, the Legislature makes
20the following findings to demonstrate the interest protected by this
21limitation and the need for protecting that interest:

end insert
begin insert

22In order to protect the privacy interests of those minors who are
23seeking special immigrant juvenile status, it is essential to maintain
24the confidentiality of the records described in Section 1 of this act.

end insert
25begin insert

begin insertSEC. 1end insertbegin insert7.end insert  

end insert
begin insert

Section 7.5 of this bill incorporates amendments to
26Section 1569.682 of the Health and Safety Code proposed by both
27this bill and Assembly Bill 1899. It shall only become operative if
28(1) both bills are enacted and become effective on or before
29January 1, 2015, but this bill becomes operative first, (2) each bill
30amends Section 1569.682 of the Health and Safety Code, and (3)
31this bill is enacted after Assembly Bill 1899, in which case Section
321569.682 of the Health and Safety Code, as amended by Section
337 of this bill, shall remain operative only until the operative date
34of Assembly Bill 1899, at which time Section 7.5 of this bill shall
35become operative.

end insert
36

begin deleteSEC. 11.end delete
37begin insertSEC. 18.end insert  

The amount of one million six hundred eighty-six
38thousand dollars ($1,686,000) is hereby appropriated to the State
39Department of Social Services in augmentation of Item
405180-151-0001 of Section 2.00 of the Budget Act of 2014, for
P72   1Program 25.30 for the Commercially Sexually Exploited Children
2Program, and the total amount appropriated in Item 5180-153-0001
3of Section 2.00 of the Budget Act of 2014 is hereby reduced by
4the amount of one million six hundred eighty-six thousand dollars
5($1,686,000) to offset that appropriation.

6

begin deleteSEC. 12.end delete
7begin insertSEC. 19.end insert  

No appropriation pursuant to Section 15200 of the
8Welfare and Institutions Code is made for purposes of this act.

9

begin deleteSEC. 13.end delete
10begin insertSEC. 20.end insert  

This act is a bill providing for appropriations related
11to the Budget Bill within the meaning of subdivision (e) of Section
1212 of Article IV of the California Constitution, has been identified
13as related to the budget in the Budget Bill, and shall take effect
14immediately.



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