Amended in Senate June 24, 2015

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)

(Coauthor: Senator Block)

February 24, 2015

An act to amend Sections begin insert 1569.2, end insert 1569.15 begin insert , 1569.16, 1569.50, 1569.58, end insert and 1569.618 of, and to add begin delete Sections end delete begin insert Section end insert 1569.356 begin delete and 1569.501 end delete 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 specified information, including whether it is a for-profit or not-for-profit provider, the begin delete names and license numbers end delete begin insert name, address, and license number end insert of other community care or health care facilities owned, managed, or operated by the same begin insert applicant or by any parent organization of the end insert applicant, and the begin delete names and business addresses end delete begin insert name and address end insert of any person, organization, or entity begin delete listed as owner of record in the real estate of the facilities. end delete begin insert that owns the real property in which specified facilities are located. end insert The bill would require an applicant to provide additional information, including evidence of the right of possession of the facility begin delete at end delete begin insert prior to end insert the time the license is granted. The bill would also require the department to cross-check specified applicant information begin insert , if electronically available, end insert 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. begin insert The bill would require the information specified in these provisions to be provided to the department upon initial application for licensure, and any change in the information to be provided within 30 calendar days of the change, except as specified. The bill would also require the department to assess an immediate civil penalty of $1,000 for a violation of these provisions subsequent to licensure. end insert

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 begin insert electronically end insert accommodate additional information, the department to post on its Internet Web site specified information, including the current name, business address, and telephone number of the licensee.

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 begin delete require end delete begin insert authorize those remedies to be applied if the department finds that specified persons or entities, including any employee, administrator, partner, officer, director, member, or manager of the applicant or licensee end insert begin insert , has engaged in any of those conducts relating to specified licensed facilities in California or any other state. The bill would also authorize end insert the department to deny an application for licensure or begin delete authorize it end delete to subsequently revoke a license if the applicant knowingly begin insert withheld material information, end insert made a false statement of begin insert material end insert fact with regard to information that was required by the application for licensure, begin delete and would authorize the department to deny an application for licensure or subsequently revoke a license if the applicant end delete begin insert or end insert did not disclose begin delete enforcement end delete begin insert administrative disciplinary end insert actions on the application as required. begin delete The bill would also authorize the department to deny an application for licensure if 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. end delete

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

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 1569.2 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

1569.2.  

As used in this chapter:

(a)  “Administrator” means the individual designated by the
licensee to act on behalf of the licensee in the overall management
of the facility. The licensee, if an individual, and the administrator
may be one and the same person.

begin insert

(b) “Beneficial ownership interest” means an ownership interest
through the possession of stock, equity in capital or any interest
in the profits of the applicant or licensee or through the possession
of such an interest in other entities that directly or indirectly hold
an interest in the applicant or licensee. The percentage of
beneficial ownership in the applicant or licensee that is held by
any other entity is determined by multiplying the other entities’
percentage of ownership interest at each level.

end insert begin delete

(b)

end delete

begin insert (c) end insert  “Care and supervision” means the facility assumes
responsibility for, or provides or promises to provide in the future,
ongoing assistance with activities of daily living without which
the resident’s physical health, mental health, safety, or welfare
would be endangered. Assistance includes assistance with taking
medications, money management, or personal care.

begin insert

(d) “Chain” means a group of two or more licensees that are
controlled, as defined in this section, by the same person or entities.

end insert begin insert

(e) “Control” means the ability to direct the operation or
management of the applicant or licensee and includes the ability
to exercise control through intermediary or subsidiary entities.

end insert begin delete

(c)

end delete

begin insert (f) end insert  “Department” means the State Department of Social Services.

begin delete

(d)

end delete

begin insert (g) end insert  “Director” means the Director of Social Services.

begin delete

(e)

end delete

begin insert (h) end insert  “Health-related services” mean services that shall be directly
provided by an appropriate skilled professional, including a
registered nurse, licensed vocational nurse, physical therapist, or
occupational therapist.

begin delete

(f)

end delete

begin insert (i) end insert  “Instrumental activities of daily living” means any of the
following: housework, meals, laundry, taking of medication, money
management, appropriate transportation, correspondence,
telephoning, and related tasks.

begin delete

(g)

end delete

begin insert (j) end insert  “License” means a basic permit to operate a residential care
facility for the elderly.

begin insert

(k) “Parent organization” means an organization in control of
another organization either directly or through one or more
intermediaries.

end insert begin delete

(h)

end delete

begin insert (l) end insert  “Personal activities of daily living” means any of the
following: dressing, feeding, toileting, bathing, grooming, and
mobility and associated tasks.

begin delete

(i)

end delete

begin insert (m) end insert  “Personal care” means assistance with personal activities
of daily living, to help provide for and maintain physical and
psychosocial comfort.

begin delete

(j)

end delete

begin insert (n) end insert  “Protective supervision” means observing and assisting
confused residents, including persons with dementia, to safeguard
them against injury.

begin delete

(k)

end delete

begin insert (o) end insert   begin insert (1) end insert begin insert   end insert “Residential care facility for the elderly” means a
housing arrangement chosen voluntarily by persons 60 years of
age or over, or their authorized representative, where varying levels
and intensities of care and supervision, protective supervision, or
personal care are provided, based upon their varying needs, as
determined in order to be admitted and to remain in the facility.
Persons under 60 years of age with compatible needs may be
allowed to be admitted or retained in a residential care facility for
the elderly as specified in Section 1569.316.

begin delete

This

end delete

begin insert (2) end insert begin insert   end insert begin insert This end insert subdivision shall be operative only until the enactment
of legislation implementing the three levels of care in residential
care facilities for the elderly pursuant to Section 1569.70.

begin delete

( l)

end delete

begin insert (p) end insert  “Residential care facility for the elderly” means a housing
arrangement chosen voluntarily by persons 60 years of age or over,
or their authorized representative, where varying levels and
intensities of care and supervision, protective supervision, personal
care, or health-related services are provided, based upon their
varying needs, as determined in order to be admitted and to remain
in the facility. Persons under 60 years of age with compatible needs
may be allowed to be admitted or retained in a residential care
facility for the elderly as specified in Section 1569.316.

This subdivision shall become operative upon the enactment of
legislation implementing the three levels of care in residential care
facilities for the elderly pursuant to Section 1569.70.

begin delete

(m)

end delete

begin insert (q) end insert  “Sundowning” means a condition in which persons with
cognitive impairment experience recurring confusion,
disorientation, and increasing levels of agitation that coincide with
the onset of late afternoon and early evening.

begin delete

(n)

end delete

begin insert (r) end insert  “Supportive services” means resources available to the
resident in the community that help to maintain their functional
ability and meet their needs as identified in the individual resident
assessment. Supportive services may include any of the following:
medical, dental, and other health care services; transportation;
recreational and leisure activities; social services; and counseling
services.

begin delete SECTION 1. end delete
begin insert SEC. 2. end insert   

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 begin delete members or shareholders thereof end delete begin insert individuals
or entities end insert holding a beneficial ownership interest of 10 percent
or more, and the person who has operational control of the
residential care facility for the elderly for which the application
for issuance of license or special permit is made. begin insert end insert begin insert Notwithstanding
anything in this section end insert begin insert , an applicant or licensee is not required
to disclose the names of investors in a publicly traded company
or investment fund end insert begin insert if those investors are silent investors who do
not have influence or control over the investments or operations
of the company or fund. end insert

begin delete

(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 applicant and by any parent organization of
the applicant, the names and business addresses of any person,
organization, or entity listed as the owner of record in the real
estate of the facilities, including the buildings and grounds
appurtenant to the buildings, and the email address of the applicant.

end delete begin insert

(3) If applicable, the following information:

end insert begin insert

(A) Whether it is a for-profit or not-for-profit provider.

end insert begin insert

(B) The name, address, license number, and licensing agency
name of other community care or health care facilities owned,
managed, or operated by the same applicant or by any parent
organization of the applicant.

end insert begin insert

(C) The name and business address of any person or entity that
controls, as defined in Section 1569.2, the applicant.

end insert begin insert

(D) If part of a chain, as defined in Section 1569.2, a diagram
indicating the relationship between the applicant and the persons
or entities that are part of the chain, including those that are
controlled by the same parties, and in a separate list, the name,
address, and license number, if applicable, for each person or
entity in the diagram.

end insert begin insert

(E) The name and address of any persons, organizations, or
entities that own the real property on which the facility seeking
licensure and the licensed facilities described in subparagraph
(B) are located.

end insert begin insert

(F) The name and address of any management company serving
the facility and the same information required of applicants in
subparagraphs (C) and (D) for the management company.

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)  begin delete Disclosure of the applicant’s or the applicant’s chief
executive officer, general partner, or like party’s end delete begin insert The name of the
person with operational control of the applicant, such as the chief
executive officer, general partner, owner or like party, and state
that person’s end insert prior or present service begin delete in California or any other
state end delete as an administrator, begin insert chief executive officer, end insert general partner,
begin delete corporate officer or end delete director begin insert like role end insert of, or as a person who has
held or holds a beneficial ownership begin insert interest end insert 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
begin insert in California or any other state end insert within the past 10 years.

begin insert

(6) The following information regarding the applicant and each
individual or entity identified pursuant to paragraph (5):

end insert begin delete

(6) Disclosure of any

end delete

begin insert (A) end insert begin insert   end insert begin insert Any end insert revocation, suspension, probation, begin insert exclusion order, end insert or
other similar begin insert administrative end insert disciplinary action begin delete taken end delete begin insert that was filed
and sustained end insert in California or any other state, or in the process of
being begin delete taken, end delete begin insert adjudicated, end insert against a facility begin insert associated with a person end insert
identified begin delete in end delete begin insert pursuant to end insert paragraph (5) or begin delete against a license held or
previously held by the entities and persons specified in paragraph
(5) end delete begin insert by any authority responsible for the licensing of health,
residential, or community care facilities end insert within the past 10 years.

begin insert

(B) Copies of final findings, orders, or both, issued by any
health, residential, or community care licensing agency or any
court relevant to the actions described in subparagraph (A).

end insert begin insert

(C) Any petition for bankruptcy relief filed within five years of
the date of application involving operation or closure of a
community care facility licensed in California or any other state,
the court, date, and case number of the filing, and whether a
discharge was granted. If a discharge was not granted, the
applicant shall provide copies of any court findings supporting
denial of discharge.

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 begin delete licensee end delete begin insert applicant end insert shall also be
the administrator.

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

(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) The department shall cross-check all applicant information
disclosed pursuant to paragraph (5) of subdivision (a) begin insert , if
electronically available, end insert 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 begin delete change. end delete begin insert change unless a shorter
timeframe is required by the department. A licensee of multiple
facilities may provide a single notice of changes to the department
on behalf of all licensed facilities within the chain. Information
pertaining to facilities operated in other states may be updated on
an annual basis, except the following information shall be provided
within 30 calendar days of the change: end insert

begin insert

(1) Information specified in paragraph (6) of subdivision (a).

end insert begin insert

(2) Information regarding newly acquired community care or
health care facilities owned, managed, or operated by the licensee
or by any parent organization of the licensee.

end insert begin insert

(e) An applicant or licensee shall maintain an email address of
record with the department. The applicant or licensee shall provide
written notification to the department of the email address and of
any change to the email address within 10 business days of the
change.

end insert begin delete

(e)

end delete

begin insert (f) end insert  (1) The department begin delete shall end delete begin insert may end insert deny an application for
licensure or may subsequently revoke a license under this chapter
if the applicant knowingly begin insert withheld material information or end insert made
a false statement of begin insert material end insert 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 if the
applicant did not disclose begin delete enforcement end delete begin insert administrative disciplinary end insert
actions on the application as required by paragraph (6) of
subdivision (a).

begin insert

(3) In addition to the remedies provided under this chapter, the
department shall, subsequent to licensure, assess a civil penalty
of one thousand dollars ($1,000) for a material violation of this
section.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 1569.16 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

1569.16.  

(a)  (1)  If an application for a license indicates, or
the department determines during the application review process,
that the applicant previously was issued a license under this chapter
or under Chapter 1 (commencing with Section 1200), Chapter 2
(commencing with Section 1250), Chapter 3 (commencing with
Section 1500), Chapter 3.01 (commencing with Section 1568.01),
Chapter 3.4 (commencing with Section 1596.70), Chapter 3.5
(commencing with Section 1596.90), or Chapter 3.6 (commencing
with Section 1597.30) and the prior license was revoked within
the preceding two years, the department shall cease any further
review of the application until two years have elapsed from the
date of the revocation. All residential care facilities for the elderly
are exempt from the health planning requirements contained in
Part 2 (commencing with Section 127125) of Division 107.

(2)  If an application for a license or special permit indicates,
or the department determines during the application review process,
that the applicant previously was issued a certificate of approval
by a foster family agency that was revoked by the department
pursuant to subdivision (b) of Section 1534 within the preceding
two years, the department shall cease any further review of the
application until two years shall have elapsed from the date of the
revocation.

(3)  If an application for a license or special permit indicates,
or the department determines during the application review process,
that the applicant was excluded from a facility licensed by the
department pursuant to Section 1558, 1568.092, 1569.58, or
1596.8897, the department shall cease any further review of the
application unless the excluded individual has been reinstated
pursuant to Section 11522 of the Government Code by the
department.

(b)  If an application for a license or special permit indicates,
or the department determines during the application review process,
that the applicant had previously applied for a license under any
of the chapters listed in paragraph (1) of subdivision (a) and the
application was denied within the last year, the department shall,
except as provided in Section 1569.22, cease further review of the
application until one year has elapsed from the date of the denial
letter. In those circumstances where denials are appealed and
upheld at an administrative hearing, review of the application shall
cease for one year from the date of the decision and order being
rendered by the department. The cessation of review shall not
constitute a denial of the application. begin insert If there are coapplicants and
the department denies a license due to concerns pertaining solely
to one of the coapplicants, any other coapplicant may withdraw
its application, and with the department’s written consent pursuant
to Section 1569.52, shall not be deemed to have a license
application denied end insert begin insert . end insert

(c)  If an application for a license or special permit indicates,
or the department determines during the application review process,
that the applicant had previously applied for a certificate of
approval with a foster family agency and the department ordered
the foster family agency to deny the application pursuant to
subdivision (b) of Section 1534, the department shall cease further
review of the application as follows:

(1)  In cases where the applicant petitioned for a hearing, the
department shall cease further review of the application until one
year has elapsed from the effective date of the decision and order
of the department upholding a denial.

(2)  In cases where the department informed the applicant of
his or her right to petition for a hearing and the applicant did not
petition for a hearing, the department shall cease further review
of the application until one year has elapsed from the date of the
notification of the denial and the right to petition for a hearing.

(3)  The department may continue to review the application if
it has determined that the reasons for the denial of the application
were due to circumstances and conditions that either have been
corrected or are no longer in existence.

(d)  The cessation of review shall not constitute a denial of the
application for purposes of Section 1526 or any other law.

begin delete SEC. 2. end delete
begin insert SEC. 4. end insert   

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 begin insert electronically end insert accommodate additional residential care facility
for the elderly profile information, the department shall post on
its Internet Web site the current name, business address, and
telephone number of the 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 begin delete corporation, end delete begin insert organization, end insert the
licensed capacity of the facility, including the capacity for
nonambulatory residents, whether the facility is permitted to accept
and retain residents receiving 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, begin insert or both, end insert and information
required pursuant to begin insert subparagraph (B) of paragraph (3) of
subdivision (a) of end insert Section 1569.15.

begin delete

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 if the applicant has a history of
noncompliance with any of the following:

(1) Requirements 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 state.

(2) Applicable state and federal laws and regulations.

(3) Requirements governing the operators of the facilities
specified in paragraph (1).

(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.

end delete

begin insert

begin insert SEC. 5. end insert   

end insert

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

1569.50.  

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

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

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

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

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

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

begin insert

(b) The remedies provided in this section may be applied if the
department finds that any employee, administrator, partner, officer,
director, member, or manager of the applicant or licensee, any
person who controls, as defined in Section 1569.2, the licensee,
or any person who holds a beneficial ownership interest of 10
percent or more in the applicant or licensee has engaged in the
conduct described in subdivision (a) related to 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 California
or any other state.

end insert begin delete

(b)

end delete

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

begin delete

(c)

end delete

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

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 1569.58 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

1569.58.  

(a) The department may prohibit any person from
being a begin delete member of the board of directors, an executive director, a
board member, or an officer of a licensee, or a end delete licensee begin insert , owning a
beneficial ownership interest of 10 percent or more in a licensed
facility, or being an administrator, officer, director, member, or
manager of a licensee or entity controlling a licensee, and may
further prohibit any licensee end insert from employing, or continuing the
employment of, or allowing in a licensed facility, or allowing
contact with clients of a licensed facility by, any employee,
prospective employee, or person who is not a client begin insert and end insert who begin delete has: end delete
begin insert has done any of the following: end insert

(1) Violated, or aided or permitted the violation by any other
person of, any provisions of this chapter or of any rules or
regulations promulgated under this chapter.

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

(3) Been denied an exemption to work or to be present in a
facility, when that person has been convicted of a crime as defined
in Section 1569.17.

(4) Engaged in any other conduct that would constitute a basis
for disciplining a licensee.

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

(b) The excluded person, the facility, and the licensee shall be
given written notice of the basis of the department’s action and of
the excluded person’s right to an appeal. The notice shall be served
either by personal service or by registered mail. Within 15 days
after the department serves the notice, the excluded person may
file with the department a written appeal of the exclusion order.
If the excluded person fails to file a written appeal within the
prescribed time, the department’s action shall be final.

(c) (1) The department may require the immediate removal of
a member of the board of directors, an executive director, or an
officer of a licensee or exclusion of an employee, prospective
employee, or person who is not a client from a facility pending a
final decision of the matter, when, in the opinion of the director,
the action is necessary to protect residents or clients from physical
or mental abuse, abandonment, or any other substantial threat to
their health or safety.

(2) If the department requires the immediate removal of a
member of the board of directors, an executive director, or an
officer of a licensee or exclusion of an employee, prospective
employee, or person who is not a client from a facility the
department shall serve an order of immediate exclusion upon the
excluded person that shall notify the excluded person of the basis
of the department’s action and of the excluded person’s right to a
hearing.

(3) Within 15 days after the department serves an order of
immediate exclusion, the excluded person may file a written appeal
of the exclusion with the department. The department’s action
shall be final if the excluded person does not appeal the exclusion
within the prescribed time. The department shall do the following
upon receipt of a written appeal:

(A) Within 30 days of receipt of the appeal, serve an accusation
upon the excluded person.

(B) Within 60 days of receipt of a notice of defense by the
excluded person pursuant to Section 11506 of the Government
Code, conduct a hearing on the accusation.

(4) An order of immediate exclusion of the excluded person
from the facility shall remain in effect until the hearing is
completed and the director has made a final determination on the
merits. However, the order of immediate exclusion shall be deemed
vacated if the director fails to make a final determination on the
merits within 60 days after the original hearing has been completed.

(d) An excluded person who files a written appeal of the
exclusion order with the department pursuant to this section shall,
as part of the written request, provide his or her current mailing
address. The excluded person shall subsequently notify the
department in writing of any change in mailing address, until the
hearing process has been completed or terminated.

(e) Hearings held pursuant to this section shall be conducted in
accordance with Chapter 5 (commencing with Section 11500) of
Division 3 of Title 2 of the Government Code. The standard of
proof shall be the preponderance of the evidence and the burden
of proof shall be on the department.

(f) The department may institute or continue a disciplinary
proceeding against a member of the board of directors, an executive
director, or an officer of a licensee or an employee, prospective
employee, or person who is not a client upon any ground provided
by this section. The department may enter an order prohibiting
any person from being a member of the board of directors, an
executive director, or an officer of a licensee, or prohibiting the
excluded person’s employment or presence in the facility, or
otherwise take disciplinary action against the excluded person,
notwithstanding any resignation, withdrawal of employment
application, or change of duties by the excluded person, or any
discharge, failure to hire, or reassignment of the excluded person
by the licensee or that the excluded person no longer has contact
with clients at the facility.

(g) A licensee’s failure to comply with the department’s
exclusion order after being notified of the order shall be grounds
for disciplining the licensee pursuant to Section 1569.50.

(h) (1) (A) In cases where the excluded person appealed the
exclusion order and there is a decision and order of the department
upholding the exclusion order, the person shall be prohibited from
working in any facility or being licensed to operate any facility
licensed by the department or from being a certified foster parent
for the remainder of the excluded person’s life, unless otherwise
ordered by the department.

(B) The excluded individual may petition for reinstatement one
year after the effective date of the decision and order of the
department upholding the exclusion order pursuant to Section
11522 of the Government Code. The department shall provide the
excluded person with a copy of Section 11522 of the Government
Code with the decision and order.

(2) (A) In cases where the department informed the excluded
person of his or her right to appeal the exclusion order and the
excluded person did not appeal the exclusion order, the person
shall be prohibited from working in any facility or being licensed
to operate any facility licensed by the department or a certified
foster parent for the remainder of the excluded person’s life, unless
otherwise ordered by the department.

(B) The excluded individual may petition for reinstatement after
one year has elapsed from the date of the notification of the
exclusion order pursuant to Section 11522 of the Government
Code. The department shall provide the excluded person with a
copy of Section 11522 of the Government Code with the exclusion
order.

begin delete SEC. 4. end delete
begin insert SEC. 7. end insert   

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.