Amended in Assembly August 22, 2014

Amended in Assembly June 24, 2014

Amended in Senate March 25, 2014

Senate BillNo. 1382


Introduced by Senator Block

February 21, 2014


An act to amend Section 1569.185 of the Health and Safety Code, relating to care facilities.

LEGISLATIVE COUNSEL’S DIGEST

SB 1382, as amended, Block. Residential care facilities for the elderly.

Existing law provides for the licensure and regulation of residential care facilities for the elderly by the State Department of Social Services. A violation of these provisions is a misdemeanor. Existing law sets forth the annual licensure fees to operate a residential care facility for the elderly and various other fees charged by the department. Existing law requires the department to deposit the fees collected into the Technical Assistance Fund to be used by the department, upon appropriation by the Legislature, to ensure the health and safety of individuals provided care and supervision by licensees and to support activities of the licensing program.

This bill would increase the annual licensure feesbegin delete by 20%end delete and would make related findings and declarations.

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

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

P2    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) The quality of services provided to residents of a residential
4care facility for the elderly is dependent on the State Department
5of Social Services’ ability to continue and enhance its licensing,
6regulatory, and disciplinary functions.

7(b) After years of budgetary cutbacks, it is now imperative that
8the department be revitalized and given adequate resources to
9support its mandate to provide consumer protection.

10(c) Failure to increase the fee amount begin delete by 20 percentend delete will result
11in continued lack of supervision and regulatory discipline, which
12will undermine the care and services for residents.

begin delete
13

SEC. 2.  

Section 1569.185 of the Health and Safety Code is
14amended to read:

15

1569.185.  

(a) An application fee adjusted by facility and
16capacity shall be charged by the department for the issuance of a
17license to operate a residential care facility for the elderly. After
18initial licensure, a fee shall be charged by the department annually
19on each anniversary of the effective date of the license.

20The fees are for the purpose of financing activities specified in
21this chapter. Fees shall be assessed as follows:


22

 

Fee Schedule

 Capacity

Initial
Application

Annual

  1-3

   $495.60   

   $495.60   

   

  4-6

   $990.00   

   $495.60   

   

  7-15

   $1,486.80   

   $742.80   

   

 16-30

   $1,980.00   

   $990.00   

   

 31-49

   $2,476.80   

   $1,238.40   

   

 50-74

   $2,972.40   

   $1,448.00   

   

 75-100

   $3,469.20   

   $1,734.00   

   

101-150

   $3,964.80   

   $1,982.40   

   

151-200

   $4,622.40   

   $2,311.20   

   

201-250

   $5,280.00   

   $2,640.00   

   

251-300

   $5,940.00   

   $2,970.00   

   

301-350

   $6,600.00   

   $3,300.00   

   

351-400

   $7,260.00   

   $3,630.00   

   

401-500

   $8,580.00   

   $4,290.00   

   

501-600

   $9,900.00   

   $4,950.00   

   

601-700

   $11,220.00   

   $5,610.00   

   

701+

   $13,200.00   

   $6,600.00   

P3   21

 

22(b) (1) In addition to fees set forth in subdivision (a), the
23department shall charge all of the following fees:

24(A) A fee that represents 50 percent of an established application
25fee when an existing licensee moves the facility to a new physical
26address.

27(B) A fee that represents 50 percent of the established
28application fee when a corporate licensee changes who has the
29authority to select a majority of the board of directors.

30(C) A fee of twenty-five dollars ($25) when an existing licensee
31seeks to either increase or decrease the licensed capacity of the
32facility.

33(D) An orientation fee of fifty dollars ($50) for attendance by
34an individual at a department-sponsored orientation session.

35(E) A probation monitoring fee equal to the annual fee, in
36addition to the annual fee for that category and capacity for each
37year a license has been placed on probation as a result of a
38stipulation or decision and order pursuant to the administrative
39adjudication procedures of the Administrative Procedure Act
40(Chapter 4.5 (commencing with Section 11400) and Chapter 5
P4    1(commencing with Section 11500) of Part 1 of Division 3 of Title
22 of the Government Code).

3(F) A late fee that represents an additional 50 percent of the
4established annual fee when a licensee fails to pay the annual
5licensing fee on or before the due date as indicated by postmark
6on the payment.

7(G) A fee to cover any costs incurred by the department for
8processing payments including, but not limited to, bounced check
9charges, charges for credit and debit transactions, and postage due
10charges.

11(H) A plan of correction fee of two hundred dollars ($200) when
12a licensee does not implement a plan of correction on or prior to
13the date specified in the plan.

14(2) A local jurisdiction shall not impose a business license, fee,
15or tax for the privilege of operating a facility licensed under this
16chapter that serves six or fewer persons.

17(c) (1) The revenues collected from licensing fees pursuant to
18this section shall be utilized by the department for the purpose of
19ensuring the health and safety of all individuals provided care or
20supervision by licensees and to support the activities of the
21licensing programs, including, but not limited to, the regular
22inspection of facilities for compliance with licensing laws and
23regulations pursuant to Section 1569.33, and other administrative
24activities in support of the licensing program, when appropriated
25for these purposes. The revenues collected shall be used in addition
26to any other funds appropriated in the annual Budget Act in support
27of the licensing program.

28(2) The department shall not utilize any portion of these revenues
29sooner than 30 days after notification in writing of the purpose
30and use, as approved by the Department of Finance, to the
31Chairperson of the Joint Legislative Budget Committee, and the
32chairpersons of the committee in each house that considers
33appropriations for each fiscal year. The department shall submit
34a budget change proposal to justify any positions or any other
35related support costs on an ongoing basis.

36(d) A residential care facility for the elderly may use a bona
37fide business check to pay the license fee required under this
38section.

P5    1(e) The failure of an applicant for licensure or a licensee to pay
2all applicable and accrued fees and civil penalties shall constitute
3grounds for denial or forfeiture of a license.

end delete
4begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 1569.185 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
5amended to read:end insert

6

1569.185.  

(a) (1) An application fee adjusted by facility and
7capacity shall be charged by the department for the issuance of a
8license to operate a residential care facility for the elderly. After
9initial licensure, a fee shall be charged by the department annually
10on each anniversary of the effective date of the license.

11The fees are for the purpose of financing activities specified in
12this chapter. Fees shall be assessed as follows, subject to paragraph
13(2):

begin delete14

 

Fee Schedule

 Capacity

Initial
Application

Annual

  1-3

   

          $454

   

          $454

  4-6

   

          $908

   

          $454

  7-15

   

         $1,363

   

          $681

 16-30

   

         $1,815

   

          $908

 31-49

   

         $2,270

   

         $1,135

 50-74

   

         $2,725

   

         $1,363

 75-100

   

         $3,180

   

         $1,590

101-150

   

         $3,634

   

         $1,817

151-200

   

         $4,237

   

         $2,119

201-250

   

         $4,840

   

         $2,420

251-300

   

         $5,445

   

         $2,723

301-350

   

          $6,050

   

          $3,025

351-400

   

         $6,655

   

         $3,328

401-500

   

         $7,865

   

         $3,933

501-600

   

         $9,075

   

         $4,538

601-700

   

        $10,285

   

         $5,143

701+

   

        $12,100

   

         $6,050

P6   12

 

end delete

P7    9

 

begin insert
begin insert

Fee Schedule

end insert
begin insert

 Capacity

end insert
begin insert

Initial
Application

end insert
begin insert

Annual

end insert
begin insert

  1-3

end insert
begin insert

   $495.60   

end insert
begin insert

   $495.60   

end insert
begin insert end insertbegin insert end insertbegin insert end insert
begin insert

  4-6

end insert
begin insert

   $990.00   

end insert
begin insert

   $495.60   

end insert
begin insert end insertbegin insert end insertbegin insert end insert
begin insert

  7-15

end insert
begin insert

   $1,486.80   

end insert
begin insert

   $742.80   

end insert
begin insert end insertbegin insert end insertbegin insert end insert
begin insert

 16-30

end insert
begin insert

   $1,980.00   

end insert
begin insert

   $990.00   

end insert
begin insert end insertbegin insert end insertbegin insert end insert
begin insert

 31-49

end insert
begin insert

   $2,476.80   

end insert
begin insert

   $1,238.40   

end insert
begin insert end insertbegin insert end insertbegin insert end insert
begin insert

 50-74

end insert
begin insert

   $2,972.40   

end insert
begin insert

   $1,448.00   

end insert
begin insert end insertbegin insert end insertbegin insert end insert
begin insert

 75-100

end insert
begin insert

   $3,469.20   

end insert
begin insert

   $1,734.00   

end insert
begin insert end insertbegin insert end insertbegin insert end insert
begin insert

101-150

end insert
begin insert

   $3,964.80   

end insert
begin insert

   $1,982.40   

end insert
begin insert end insertbegin insert end insertbegin insert end insert
begin insert

151-200

end insert
begin insert

   $4,622.40   

end insert
begin insert

   $2,311.20   

end insert
begin insert end insertbegin insert end insertbegin insert end insert
begin insert

201-250

end insert
begin insert

   $5,280.00   

end insert
begin insert

   $2,640.00   

end insert
begin insert end insertbegin insert end insertbegin insert end insert
begin insert

251-300

end insert
begin insert

   $5,940.00   

end insert
begin insert

   $2,970.00   

end insert
begin insert end insertbegin insert end insertbegin insert end insert
begin insert

301-350

end insert
begin insert

   $6,600.00   

end insert
begin insert

   $3,300.00   

end insert
begin insert end insertbegin insert end insertbegin insert end insert
begin insert

351-400

end insert
begin insert

   $7,260.00   

end insert
begin insert

   $3,630.00   

end insert
begin insert end insertbegin insert end insertbegin insert end insert
begin insert

401-500

end insert
begin insert

   $8,580.00   

end insert
begin insert

   $4,290.00   

end insert
begin insert end insertbegin insert end insertbegin insert end insert
begin insert

501-600

end insert
begin insert

   $9,900.00   

end insert
begin insert

   $4,950.00   

end insert
begin insert end insertbegin insert end insertbegin insert end insert
begin insert

601-700

end insert
begin insert

   $11,220.00   

end insert
begin insert

   $5,610.00   

end insert
begin insert end insertbegin insert end insertbegin insert end insert
begin insert

701+

end insert
begin insert

   $13,200.00   

end insert
begin insert

   $6,600.00   

end insert
end insert

 

10(2) (A) The Legislature finds that all revenues generated by
11fees for licenses computed under this section and used for the
12purposes for which they were imposed are not subject to Article
13XIII B of the California Constitution.

14(B) The department, at least every five years, shall analyze
15initial application fees and annual fees issued by it to ensure the
16appropriate fee amounts are charged. The department shall
17recommend to the Legislature that fees established by the
18Legislature be adjusted as necessary to ensure that the amounts
19are appropriate.

20(b) (1) In addition to fees set forth in subdivision (a), the
21department shall chargebegin insert all ofend insert the following fees:

22(A) A fee that represents 50 percent of an established application
23fee when an existing licensee moves the facility to a new physical
24address.

25(B) A fee that represents 50 percent of the established
26application fee when a corporate licensee changes who has the
27authority to select a majority of the board of directors.

28(C) A fee of twenty-five dollars ($25) when an existing licensee
29seeks to either increase or decrease the licensed capacity of the
30facility.

31(D) An orientation fee of fifty dollars ($50) for attendance by
32begin delete anyend deletebegin insert anend insert individual at a department-sponsored orientation session.

33(E) A probation monitoring fee equal to the current annual fee,
34in addition to the current annual fee for that category and capacity
35for each year a license has been placed on probation as a result of
36a stipulation or decision and order pursuant to the administrative
37adjudication procedures of the Administrative Procedure Act
38(Chapter 4.5 (commencing with Section 11400) and Chapter 5
39(commencing with Section 11500) of Part 1 of Division 3 of Title
402 of the Government Code).

P8    1(F) A late fee that represents an additional 50 percent of the
2established current annual fee whenbegin delete anyend deletebegin insert aend insert licensee fails to pay the
3current annual licensing fee on or before the due date as indicated
4by postmark on the payment.

5(G) A fee to cover any costs incurred by the department for
6processing payments including, but not limited to, bounced check
7charges, charges for credit and debit transactions, and postage due
8charges.

9(H) A plan of correction fee of two hundred dollars ($200) when
10begin delete anyend deletebegin insert aend insert licensee does not implement a plan of correction on or prior
11to the date specified in the plan.

12(2) begin deleteNo end deletebegin insertA end insertlocal jurisdiction shallbegin insert notend insert imposebegin delete anyend deletebegin insert aend insert business
13license, fee, or tax for the privilege of operating a facility licensed
14under this chapterbegin delete whichend deletebegin insert thatend insert serves six or fewer persons.

15(c) (1) The revenues collected from licensing fees pursuant to
16this section shall be utilized by the department for the purpose of
17ensuring the health and safety of all individuals provided care or
18supervision by licensees and to support the activities of the
19licensing programs, including, but not limited to, monitoring
20facilities for compliance with licensing laws and regulations
21pursuant to this chapter, and other administrative activities in
22support of the licensing program, when appropriated for these
23purposes. The revenues collected shall be used in addition to any
24other funds appropriated in the annual Budget Act in support of
25the licensing program. The department shall adjust the fees
26collected pursuant to this section to ensure that they do not exceed
27the costs described in this paragraph.

28(2) The department shall not utilize any portion of these revenues
29sooner than 30 days after notification in writing of the purpose
30and use, as approved by the Department of Finance, to the
31Chairperson of the Joint Legislative Budget Committee, and the
32chairpersons of the committee in each house that considers
33appropriations for each fiscal year. The department shall submit
34a budget change proposal to justify any positions or any other
35related support costs on an ongoing basis.

36(d) A residential care facility for the elderly may use a bona
37fide business check to pay the license fee required under this
38section.

P9    1(e) The failure of an applicant for licensure or a licensee to pay
2all applicable and accrued fees and civil penalties shall constitute
3grounds for denial or forfeiture of a license.



O

    96