Amended in Assembly April 23, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 601

Introduced by Assembly Member Eggman

(Principal coauthor: Assembly Member Brown)

(Coauthors: Assembly Members Calderon and Mark Stone)

begin insert

(Coauthor: Senator Block)

end insert

February 24, 2015

An act to amend Sections 1569.15 and 1569.618 of, and to add Sections 1569.356 and 1569.501 to, the Health and Safety Code, relating to health facilities.

LEGISLATIVE COUNSEL’S DIGEST

AB 601, as amended, Eggman. Residential care facilities for the elderly: licensing and regulation.

Existing law, the California Residential Care Facilities for the Elderly Act, provides for the licensure of residential care facilities for the elderly by the State Department of Social Services. Existing law requires any person seeking a license for a residential care facility for the elderly to file an application with the department, as specified. Among other required application information, if the applicant is a firm, association, organization, partnership, business trust, corporation, or company, evidence of reputable and responsible character is required to be submitted as to the members or shareholders thereof, and the person in charge of the residential care facility for the elderly for which the application for issuance of license or special permit is made.

This bill would, among other things, additionally require the applicant to disclose begin insert specified information, including end insert whether it is a for-profit or not-for-profit provider, the names and license numbers of other community care or health care facilities owned, managed, or operated by the same applicant, and the names and begin insert business end insert addresses of any begin delete persons or organizations end delete begin insert person, organization, or entity end insert listed as owner of record in the real estate of the facilities. The bill would require an applicant to provide additional information, including evidence of the right of possession of the facility at the time the license is granted. The bill would also require begin delete that end delete begin insert the department to cross-check end insert specified applicant information begin delete be cross checked end delete with the State Department of Public Health to determine if the applicant has a prior history of operating, holding a position in, or having ownership in, specified licensed facilities.

Existing law requires the Director of Social Services to establish an automated license information system on licensees and former licensees of licensed residential care facilities for the elderly. The system is required to maintain a record of any information that may be pertinent for licensure.

This bill would require, to the extent that the department’s computer system can accommodate additional information, the department to post on its Internet Web site specified information, including the begin insert current end insert name, begin insert business end insert address, and telephone number of the begin delete licensed providers and the number of licensed beds in a residential care facility for the elderly. end delete begin insert licensee. end insert

Existing law authorizes the department to deny any application for a license to operate a residential care facility for the elderly or to suspend or revoke a license on certain grounds, including, but not limited to, a violation by the licensee of applicable provisions or of the rules and regulations adopted under those provisions, conduct that is inimical to the health, morals, welfare, or safety of either an individual in or receiving services from the facility or the people of the state, or engaging in acts of financial malfeasance concerning the operation of a facility.

This bill would require the department to deny an application for licensure or authorize it to subsequently revoke a license begin delete on the grounds that end delete begin insert if end insert the applicant knowingly made a false statement of fact with regard to information that was required by the application for licensure, and would authorize the department to deny an application for licensure or subsequently revoke a license begin delete on the grounds that end delete begin insert if end insert the applicant did not disclose enforcement actions on the application as required. The bill would also authorize the department to deny an application for licensure begin delete on the grounds that end delete begin insert if end insert the applicant has a history of noncompliance with the requirements imposed under specified facility licenses or a similarly licensed facility in another state, applicable state and federal laws and regulations, and the requirements governing the operators of those facilities.

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

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

SECTION 1.  

Section 1569.15 of the Health and Safety Code
is amended to read:

1569.15.  

(a) Any person seeking a license for a residential
care facility for the elderly under this chapter shall file with the
department, pursuant to regulations, an application on forms
furnished by the department, that shall include, but not be limited
to, all of the following:

(1) Evidence satisfactory to the department of the ability of the
applicant to comply with this chapter and of rules and regulations
adopted under this chapter by the department.

(2) Evidence satisfactory to the department that the applicant
is of reputable and responsible character. The evidence shall
include, but not be limited to, a criminal record clearance pursuant
to Section 1569.17, employment history, and character references.
If the applicant is a firm, association, organization, partnership,
business trust, corporation, or company, like evidence shall be
submitted as to the members or shareholders begin delete thereof, end delete begin insert thereof
holding a beneficial ownership interest of 10 percent or more, end insert and
the person begin delete in charge end delete begin insert who has operational control end insert of the residential
care facility for the elderly for which the application for issuance
of license or special permit is made.

(3) The applicant shall disclose whether it is a for-profit or
not-for-profit provider, the names and license numbers of other
community care or health care facilities owned, managed, or
operated by the same begin delete applicant, and end delete begin insert applicant and by any parent
organization of the applicant, end insert the names and begin insert business end insert addresses
of any begin delete persons or organizations end delete begin insert person, organization, or entity end insert
listed as the owner of record in the real estate of the facilities,
including the buildings and grounds appurtenant to the begin delete buildings. end delete
begin insert buildings, and the email address of the applicant. end insert

(4) Evidence satisfactory to the department that the applicant
has sufficient financial resources to maintain the standards of
service required by regulations adopted pursuant to this chapter.

(5) Disclosure of the begin insert applicant’s or the end insert applicant’s chief
executive officer, general partner, or like party’s prior or present
service in California or any other state as an administrator, general
partner, corporate officer or director of, or as a person who has
held or holds a beneficial ownership of 10 percent or more in, any
residential care facility for the elderly, in any facility licensed
pursuant to Chapter 1 (commencing with Section 1200), Chapter
2 (commencing with Section 1250), or Chapter 3 (commencing
with Section 1500), or a similarly licensed begin delete facility. end delete begin insert facility within
the past 10 years. end insert

(6) Disclosure of any revocation, suspension, begin insert probation, end insert or other
begin insert similar end insert disciplinary begin delete or enforcement end delete action taken in California or
any other state, or in the process of being taken, begin insert against a facility
identified in paragraph (5) or end insert against a license held or previously
held by the entities begin insert and persons end insert specified in paragraph begin delete (5). end delete begin insert (5)
within the past 10 years. end insert

(7) Any other information as may be required by the department
for the proper administration and enforcement of this chapter.

(8) Following the implementation of Article 7 (commencing
with Section 1569.70), evidence satisfactory to the department of
the applicant’s ability to meet regulatory requirements for the level
of care the facility intends to provide.

(9) Evidence satisfactory to the department of adequate
knowledge of supportive services and other community supports
that may be necessary to meet the needs of elderly residents.

(10) A signed statement that the person desiring issuance of a
license has read and understood the residential care facility for the
elderly statute and regulations.

(11) Designation by the applicant of the individual who shall
be the administrator of the facility, including, if the applicant is
an individual, whether or not the licensee shall also be the
administrator.

(12) Evidence of the right of possession of the facility at the
time the license is granted, which may be satisfied by the
submission of a copy of applicable portions of a lease agreement
or begin delete deed of trust. end delete begin insert deed. end insert

(13) Evidence of successfully completing a certified prelicensure
education program pursuant to Section 1569.23.

(14) For any facility that promotes or advertises or plans to
promote or advertise special care, special programming, or special
environments for persons with dementia, disclosure to the
department of the special features of the facility in its plan of
operation.

(b)  begin delete All end delete begin insert The department shall cross-check all end insert applicant
information disclosed pursuant to paragraph (5) of subdivision (a)
begin delete shall be cross checked end delete with the State Department of Public Health
to determine if the applicant has a prior history of operating,
holding a position in, or having ownership in, any entity specified
in paragraph (5) of subdivision (a).

(c) Failure of the applicant to cooperate with the licensing
agency in the completion of the application may result in the denial
of the application. Failure to cooperate means that the information
described in this section and in the regulations of the department
has not been provided, or has not been provided in the form
requested by the licensing agency, or both.

(d) The information required by this section shall be provided
to the department upon initial application for licensure, and any
change in the information shall be provided to the department
within 30 calendar days of that change.

(e) (1) The department shall deny an application for licensure
or may subsequently revoke a license under this chapter begin delete on the
grounds that end delete begin insert if end insert the applicant knowingly made a false statement of
fact with regard to information that was required by the application
for licensure.

(2) The department may deny an application for licensure or
may subsequently revoke a license under this chapter begin delete on the
grounds that end delete begin insert if end insert the applicant did not disclose enforcement actions
on the application as required by paragraph (6) of subdivision (a).

SEC. 2.  

Section 1569.356 is added to the Health and Safety
Code, to read:

1569.356.  

To the extent that the department’s computer system
can accommodate additional residential care facility for the elderly
profile information, the department shall post on its Internet Web
site the begin insert current end insert name, begin insert business end insert address, and telephone number of
the begin delete licensed providers, including the owner and the licensee, the
number of licensed beds in the facility, including the number of
nonambulatory beds, end delete begin insert licensee, the name of the owner of the
residential care facility for the elderly, if not the same as the
licensee, the name of any parent corporation, the licensed capacity
of the facility, including the capacity for nonambulatory residents, end insert
whether the facility is permitted to begin delete provide end delete begin insert accept and retain
residents receiving end insert hospice care services, whether the facility has
a special care unit or program for people with Alzheimer’s disease
and other dementias and has a delayed egress or secured perimeter
system in place, and information required pursuant to Section
1569.15.

SEC. 3.  

Section 1569.501 is added to the Health and Safety
Code, immediately following Section 1569.50, to read:

1569.501.  

(a) The department may deny an application for
licensure under this chapter begin delete on the grounds that end delete begin insert if end insert the applicant
has a history of noncompliance with begin insert any of end insert the begin delete requirements end delete
begin insert following: end insert

begin insert (1) end insert begin insert   end insert begin insert Requirements end insert imposed upon any residential care facility for
the elderly license, any facility licensed pursuant to Chapter 1
(commencing with Section 1200), Chapter 2 (commencing with
Section 1250), or Chapter 3 (commencing with Section 1500), or
a similarly licensed facility in another begin delete state, applicable end delete begin insert state. end insert

begin insert (2) end insert begin insert   end insert begin insert Applicable end insert state and federal laws and begin delete regulations, and the
requirements end delete begin insert regulations. end insert

begin insert (3) end insert begin insert   end insert begin insert Requirements end insert governing the operators of begin delete those facilities. end delete begin insert the
facilities specified in paragraph (1). end insert

(b) This section applies to an applicant that is or was an
administrator, general partner, chief executive officer or like party,
corporate officer or director of, or is a person who has held or
holds a beneficial ownership of 10 percent or more in, any
residential care facility for the elderly, in any facility licensed
pursuant to Chapter 1 (commencing with Section 1200), Chapter
2 (commencing with Section 1250), or Chapter 3 (commencing
with Section 1500), or a similarly licensed facility in another state.

(c) Noncompliance by the chief executive officer, general
partner, or like party with the requirements of this chapter and its
implementing regulations may be the basis for license decisions
against the owner.

SEC. 4.  

Section 1569.618 of the Health and Safety Code is
amended to read:

1569.618.  

(a) The administrator designated by the licensee
pursuant to paragraph (11) of subdivision (a) of Section 1569.15
shall be present at the facility during normal working hours. A
facility manager designated by the licensee with notice to the
department, shall be responsible for the operation of the facility
when the administrator is temporarily absent from the facility.

(b) At least one administrator, facility manager, or designated
substitute who is at least 21 years of age and has qualifications
adequate to be responsible and accountable for the management
and administration of the facility pursuant to Title 22 of the
California Code of Regulations shall be on the premises 24 hours
per day. The designated substitute may be a direct care staff
member who shall not be required to meet the educational,
certification, or training requirements of an administrator. The
designated substitute shall meet qualifications that include, but are
not limited to, all of the following:

(1) Knowledge of the requirements for providing care and
supervision appropriate to each resident of the facility.

(2) Familiarity with the facility’s planned emergency procedures.

(3) Training to effectively interact with emergency personnel
in the event of an emergency call, including an ability to provide
a resident’s medical records to emergency responders.

(c) The facility shall employ, and the administrator shall
schedule, a sufficient number of staff members to do all of the
following:

(1) Provide the care required in each resident’s written record
of care as described in Section 1569.80.

(2) Ensure the health, safety, comfort, and supervision of the
residents.

(3) Ensure that at least one staff member who has
cardiopulmonary resuscitation (CPR) training and first aid training
is on duty and on the premises at all times. This paragraph shall
not be construed to require staff to provide CPR.

(4) Ensure that the facility is clean, safe, sanitary, and in good
repair at all times.

(d) “Facility manager” means a person on the premises with the
authority and responsibility necessary to manage and control the
day-to-day operation of a residential care facility for the elderly
and supervise the clients. The facility manager, licensee, and
administrator, or any combination thereof, may be the same person
provided he or she meets all applicable requirements. If the
administrator is also the facility manager for the same facility, he
or she shall be limited to the administration and management of
only one facility.