Amended in Assembly June 26, 2014

Amended in Assembly June 19, 2014

Amended in Senate May 27, 2014

Amended in Senate May 7, 2014

Amended in Senate April 29, 2014

Amended in Senate April 9, 2014

Amended in Senate March 26, 2014

Amended in Senate February 14, 2014

Senate BillNo. 894


Introduced by Senator Corbett

(Coauthor: Senator Lara)

January 13, 2014


An act to amendbegin delete Sectionsend deletebegin insert Sectionend insert 1569.335begin delete and 1569.525end delete of the Health and Safety Code, relating to residential care facilities for the elderly.

LEGISLATIVE COUNSEL’S DIGEST

SB 894, as amended, Corbett. Residential care facilities for the elderly: revocation of license.

Existing law, the California Residential Care Facilities for the Elderly Act, provides for the licensure and regulation of residential care facilities for the elderly. These provisions are administered by the State Department of Social Services.begin delete Violation of these provisions is a misdemeanor.end delete

begin delete

Under existing law, if the Director of Social Services determines that it is necessary to temporarily suspend a license of a residential care facility for the elderly in order to protect the residents or clients of the facility from physical or mental abuse, abandonment, or any other substantial threat to health or safety, the department is required to make every effort to minimize trauma for the residents. Existing law authorizes and requires the department, in the event of a temporary license suspension or revocation, to comply with specified procedures relating to the transfer of residents, including requiring the department to contact and work with any local agency that may have placement or advocacy responsibility for the residents of a residential care facility for the elderly, as specified, to locate alternative placement sites and contact responsible relatives.

end delete
begin delete

Under this bill, if the Director of Social Services determines at any time during or following a temporary suspension or revocation of a license that there is a risk to the residents or clients of the facility from physical or mental abuse, abandonment, or any other substantial threat to health or safety, the department would be required to take any necessary action to minimize trauma for the residents, including, but not limited to, arranging for the preparation of the residents’ records and medications for transfer and checking in on the status of each transferred resident within 24 hours of transfer. The bill would additionally require the department to contact the Office of the State Long-Term Care Ombudsman prior to implementing a decision to temporarily suspend or revoke a license.

end delete
begin delete

Existing law requires, upon an order to revoke a license, a licensee to provide a 60-day written notice of license revocation that may lead to closure to the resident and the resident’s responsible person within 24 hours of receipt of the department’s order of revocation. Existing law requires a resident who transfers from the facility during that 60-day period to be entitled to a refund of preadmission fees in accordance with specified provisions. Existing law authorizes the licensee to secure the services of another licensee to manage the operations of the facility for a period of at least 60 days if a proposal is submitted that includes specified items.

end delete
begin delete

This bill would make similar provisions apply in the case of an order to temporarily suspend a license and would require the licensee to provide written notice of the temporary suspension to the resident and the resident’s responsible person as soon as practically possible but not later than within 24 hours of receipt of the temporary suspension order. The bill would prohibit the licensee, upon receipt of an order to temporarily suspend or revoke a license, from accepting new residents or entering into admission agreements for new residents, except as specified.

end delete
begin delete

This bill would generally make a licensee who fails to comply with these requirements liable for civil penalties in the amount of $500 per violation per day for each day that the licensee is in violation of these provisions until the violation has been corrected. The bill would authorize a current or former resident of a residential care facility for the elderly covered under these provisions to bring a civil action against any person that owns, operates, establishes, manages, conducts, or maintains a residential care facility for the elderly who violates the specified rights of the resident.

end delete

Existing law requires the department to notify affected placement agencies and the Office of the State Long-Term Care Ombudsman whenever the department substantiates that a violation has occurred which poses a serious threat to the health and safety of any resident when the violation results in the assessment of any penalty or causes an accusation to be filed for the revocation of a license.

This bill would additionally require the department to provide the Office of the State Long-Term Care Ombudsman with a precautionary notification if the department begins to prepare to issue a temporary suspension or revocation of any license.

begin delete

By expanding the definition of a crime, this bill would impose a state-mandated local program.

end delete
begin delete

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end delete
begin delete

This bill would provide that no reimbursement is required by this act for a specified reason.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: begin deleteyes end deletebegin insertnoend insert.

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

P3    1

SECTION 1.  

Section 1569.335 of the Health and Safety Code
2 is amended to read:

3

1569.335.  

(a) The department shall provide the Office of the
4State Long-Term Care Ombudsman, as defined in subdivision (c)
5of Section 9701 of the Welfare and Institutions Code, with a
P4    1precautionary notification if the department begins to prepare to
2issue a temporary suspension or revocation of any license, so that
3the office may properly prepare to provide advocacy services if
4and when necessary.

5(b) The department shall notify affected public placement
6agencies and the Office of the State Long-Term Care Ombudsman,
7whenever the department substantiates that a violation has occurred
8which poses a serious threat to the health and safety of any resident
9when the violation results in the assessment of any penalty or
10causes an accusation to be filed for the revocation of a license.

11(c) (1) If the violation is appealed by the facility within 10 days,
12the department shall only notify placement agencies of the violation
13when the appeal has been exhausted.

14(2) If the appeal process has not been completed within 60 days,
15the placement agency shall be notified with a notation that indicates
16that the case is still under appeal.

17(3) The notice to each placement agency shall be updated
18monthly for the following 24-month period and shall include the
19name and location of the facility, the amount of the fine, the nature
20of the violation, the corrective action taken, the status of the
21revocation, and the resolution of the complaint.

begin delete
22

SEC. 2.  

Section 1569.525 of the Health and Safety Code is
23amended to read:

24

1569.525.  

(a) If the director determines that it is necessary to
25temporarily suspend or to revoke a license of a residential care
26facility for the elderly in order to protect the residents or clients
27of the facility from physical or mental abuse, abandonment, or any
28other substantial threat to health or safety pursuant to Section
291569.50, the department shall make every effort to minimize
30trauma for the residents.

31(b) After a decision is made to temporarily suspend or to revoke
32the license of a residential care facility for the elderly and prior to
33implementing that decision, the department shall contact both of
34the following:

35(1) The Office of the State Long-Term Care Ombudsman.

36(2) Any local agency that may have placement or advocacy
37responsibility for the residents of a residential care facility for the
38elderly. The department shall work with the local agencies, and
39the licensee if the director determines it to be appropriate, to locate
P5    1alternative placement sites and to contact relatives responsible for
2the care of these residents.

3(c) The department shall use physicians and surgeons and other
4medical personnel deemed appropriate by the department to provide
5onsite evaluation of the residents and assist in any transfers.

6(d) The department shall require the licensee to prepare and
7submit to the licensing agency a written plan for relocation and
8compliance with the terms and conditions of the approved plans,
9and to provide other information as necessary for the enforcement
10of this section.

11(e) Upon receipt of an order to temporarily suspend or revoke
12a license, the licensee shall be prohibited from accepting new
13residents or entering into admission agreements for new residents.
14This subdivision shall not apply if a temporary manager or receiver
15is appointed pursuant to Section 1569.481 or 1569.482 and the
16director determines that the temporary manager or receiver is
17capable of accepting new residents.

18(f) Upon an order to temporarily suspend a license, the following
19shall apply:

20(1) The licensee shall provide written notice of the temporary
21suspension to the resident and the resident’s responsible person,
22if applicable, as soon as practically possible, but no later than
23within 24 hours of receipt of the department’s temporary
24suspension order.

25(2) The department may secure, or permit the licensee to secure,
26the services of a person who is not an immediate family member
27of the licensee or an entity that is not owned by the licensee to
28manage the day-to-day operations of the facility until the matter
29is heard pursuant to Section 1569.50, and for at least 60 days
30thereafter, if a proposal that includes both of the following is
31 submitted to the department as soon as practically possible
32following the licensee’s receipt of the department’s temporary
33suspension order:

34(A) A completed “Application for a Community Care Facility
35or Residential Care Facility for the Elderly License” form (LIC
36200), or similar form as determined by the department, signed and
37dated by both the licensee and the person or entity described in
38this paragraph.

39(B) A copy of the executed agreement between the licensee and
40the person or entity described in this paragraph that delineates the
P6    1roles and responsibilities of each party and specifies that the person
2or entity described in this paragraph shall have the full authority
3necessary to operate the facility, in compliance with all applicable
4laws and regulations, and without interference from the licensee.

5(g) Upon a final order to revoke a license following any
6applicable hearings required under this article, except when
7 following the temporary suspension of a license pursuant to Section
81569.50 that led to the transfer of all residents, the following shall
9apply:

10(1) The licensee shall provide a 60-day written notice of license
11revocation that may lead to closure to the resident and the resident’s
12responsible person within 24 hours of receipt of the department’s
13final order of revocation.

14(2) The department shall permit the licensee to secure the
15services of a person who is not an immediate family member of
16the licensee or an entity that is not owned by the licensee to manage
17the day-to-day operations of the residential care facility for the
18elderly for a period of at least 60 days, if a proposal that includes
19both of the following is submitted to the department within 72
20hours of the licensee’s receipt of the department’s final order of
21revocation:

22(A) A completed “Application for a Community Care Facility
23or Residential Care Facility for the Elderly License” form (LIC
24200), or similar form as determined by the department, signed and
25dated by both the licensee and the person or entity described in
26this paragraph.

27(B) A copy of the executed agreement between the licensee and
28the person or entity described in this paragraph that delineates the
29roles and responsibilities of each party and specifies that the person
30or entity described in this paragraph shall have the full authority
31necessary to operate the facility, in compliance with all applicable
32laws and regulations, and without interference from the licensee.

33(h) (1) The person or entity described in paragraph (2) of
34subdivision (f) or paragraph (2) of subdivision (g) shall be currently
35licensed and in substantial compliance to operate a residential care
36facility for the elderly that is of comparable size or greater and has
37comparable programming to the facility. For purposes of this
38subparagraph, the following definitions apply:

P7    1(A) “Comparable programming” includes, but is not limited to,
2dementia care, hospice care, and care for residents with exempted
3prohibited health care conditions.

4(B) “Comparable size” means a facility capacity of 1 to 15
5residents, 16 to 49 residents, or 50 or more residents.

6(2) The person or entity described in paragraph (2) of
7subdivision (f) or paragraph (2) of subdivision (g) shall not be
8subject to the application fee specified in Section 1569.185.

9(3) If the department denies a proposal to secure the services
10of a person or entity pursuant to paragraph (2) of subdivision (f)
11or paragraph (2) of subdivision (g), this denial shall not be deemed
12a denial of a license application subject to the right to a hearing
13under Section 1569.22 and other procedural rights under Section
141569.51.

15(i) (1) Notwithstanding Section 1569.651 or any other law, for
16paid preadmission fees, a resident who transfers from the facility
17due to the notice of a temporary suspension or revocation of a
18license pursuant to this section is entitled to a refund in accordance
19with all of the following:

20(A) A 100-percent refund if preadmission fees were paid within
21six months of either notice required by this section.

22(B) A 75-percent refund if preadmission fees were paid more
23than 6 months, but not more than 12 months, before either notice
24required by this section.

25(C) A 50-percent refund if preadmission fees were paid more
26than 12 months, but not more than 18 months, before either notice
27required by this section.

28(D) A 25-percent refund if preadmission fees were paid more
29than 18 months, but not more than 25 months, before either notice
30required by this section.

31(2) A preadmission fee refund is not required if preadmission
32 fees were paid 25 months or more before either notice required by
33this section.

34(3) The preadmission fee refund required by this paragraph shall
35be paid within 15 days of issuing either notice required by this
36section. In lieu of the refund, the resident may request that the
37licensee provide a credit toward the resident’s monthly fee
38obligation in an amount equal to the preadmission fee refund due.

39(4) If a resident transfers from the facility due to the revocation
40of a license, and the resident gives notice at least five days before
P8    1leaving the facility, or if the transfer is due to a temporary
2suspension of the license order, the licensee shall refund to the
3resident or his or her legal representative a proportional per diem
4amount of any prepaid monthly fees at the time the resident leaves
5the facility and the unit is vacated. Otherwise the licensee shall
6pay the refund within seven days from the date that the resident
7leaves the facility and the unit is vacated.

8(j) Within 24 hours after each resident who is transferring
9pursuant to these provisions has left the facility, the licensee that
10had his or her license temporarily suspended or revoked shall,
11based on information provided by the resident or the resident’s
12responsible person, submit a final list of names and new locations
13of all residents to the department and the local ombudsman
14program.

15(k) If at any point during or following a temporary suspension
16or revocation of a license the director determines that there is a
17risk to the residents of a facility from physical or mental abuse,
18abandonment, or any other substantial threat to health or safety,
19the department shall take any necessary action to minimize trauma
20for the residents, including, but not limited to, all of the following:

21(1) Contact any local agency that may have placement or
22advocacy responsibility for the residents, and work with those
23agencies to locate alternative placement sites.

24(2) Contact the residents’ relatives, legal representatives,
25authorized agents in a health care directive, or responsible parties.

26(3) Assist in the transfer of residents, and, if necessary, arrange
27or coordinate transportation.

28(4) Provide onsite evaluation of the residents and use any
29medical personnel deemed appropriate by the department to provide
30onsite evaluation of the residents and assist in any transfers.

31(5) Arrange for or coordinate care and supervision.

32(6) Arrange for the distribution of medications.

33(7) Arrange for the preparation and service of meals and snacks.

34(8) Arrange for the preparation of the residents’ records and
35medications for transfer of each resident.

36(9) Assist in any way necessary to facilitate a safe transfer of
37all residents.

38(10) Check on the status of each transferred resident within 24
39hours of transfer.

P9    1(l) The participation of the department and local agencies in the
2relocation of residents from a residential care facility for the elderly
3shall not relieve the licensee of any responsibility under this
4section. A licensee that fails to comply with the requirements of
5this section shall be required to reimburse the department and local
6agencies for the cost of providing these services. If the licensee
7fails to provide the services required in this section, the department
8shall request that the Attorney General’s office, the city attorney’s
9office, or the local district attorney’s office seek injunctive relief
10and damages.

11(m) Notwithstanding Section 1569.49, a licensee who fails to
12comply with the requirements of this section shall be liable for
13civil penalties in the amount of five hundred dollars ($500) per
14violation per day for each day that the licensee is in violation of
15this section, until the violation has been corrected. The civil
16penalties shall be issued immediately following the written notice
17of violation.

18(n) A current or former resident of a residential care facility for
19the elderly covered under this section may bring a civil action
20against any person that owns, operates, establishes, manages,
21conducts, or maintains a residential care facility for the elderly
22that violates the rights of the resident, as set forth in this section.
23Any person that owns, operates, establishes, manages, conducts,
24or maintains a residential care facility for the elderly that violates
25this section shall be responsible for the acts of the facility
26employees in violating this section and shall be liable for costs
27and attorney’s fees. The residential care facility for the elderly
28may also be enjoined from permitting the violation to continue.
29The remedies specified in this section shall be in addition to any
30other remedy provided by law. For purposes of this subdivision,
31“person” includes, but is not limited to, a natural person, firm,
32partnership, or corporation, but shall not be construed to include
33the department or its employees.

34(o) This section shall not preclude the department from
35amending the effective date in the order of the suspension or
36revocation of a license and closing the facility, or from pursuing
37any other available remedies if necessary to protect the health and
38safety of the residents in care.

P10   1

SEC. 3.  

No reimbursement is required by this act pursuant to
2Section 6 of Article XIII B of the California Constitution because
3the only costs that may be incurred by a local agency or school
4district will be incurred because this act creates a new crime or
5infraction, eliminates a crime or infraction, or changes the penalty
6for a crime or infraction, within the meaning of Section 17556 of
7the Government Code, or changes the definition of a crime within
8the meaning of Section 6 of Article XIII B of the California
9Constitution.

end delete


O

    91