BILL NUMBER: SB 661	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Wolk
   (Coauthor: Assembly Member Eng)

                        FEBRUARY 27, 2009

   An act to amend Section 1569.884 of the Health and Safety Code,
relating to residential care facilities for the elderly.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 661, as introduced, Wolk. Residential care facilities for the
elderly: admission agreements.
   Existing law provides for the licensure and regulation of
residential care facilities for the elderly, as defined, by the State
Department of Social Services, including, among other things,
regulation of admissions procedures and agreements. Under existing
law, a violation of these provisions is punishable as a misdemeanor.
   This bill would require that if an admission agreement includes an
arbitration agreement, that arbitration agreement comply with
prescribed requirements. The bill would provide that the arbitration
agreement requirements shall not invalidate an arbitration agreement
that does not meet the requirements if the arbitration agreement
existed prior to the effective date of this bill.
   By expanding the definition of a crime, this bill would result in
a state-mandated local program.
   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.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1569.884 of the Health and Safety Code is
amended to read:
   1569.884.  The admission agreement shall include all of the
following:
   (a) A comprehensive description of any items and services provided
under a single fee, such as a monthly fee for room, board, and other
items and services.
   (b) A comprehensive description of, and the fee schedule for, all
items and services not included in a single fee. In addition, the
agreement shall indicate that the resident shall receive a monthly
statement itemizing all separate charges incurred by the resident.
   (c) A facility may assess a separate charge for an item or service
only if that separate charge is authorized by the admission
agreement. If additional services are available through the facility
to be purchased by the resident that were not available at the time
the admission agreement was signed, a list of these services and
charges shall be provided to the resident or the resident's
representative. A statement acknowledging the acceptance or refusal
to purchase the additional services shall be signed and dated by the
resident or the resident's representative and attached to the
admission agreement.
   (d) An explanation of the use of third-party services within the
facility that are related to the resident's service plan, including,
but not limited to, ancillary, health, and medical services, how they
may be arranged, accessed, and monitored, any restrictions on
third-party services, and who is financially responsible for the
third-party services.
   (e) A comprehensive description of billing and payment policies
and procedures.
   (f) The conditions under which rates may be increased pursuant to
Section 1569.655.
   (g) The facility's policy concerning family visits and other
communication with residents, pursuant to Section 1569.313.
   (h) The facility's policy concerning refunds.
   (i) Conditions under which the agreement may be terminated.
   (j) An explanation of the facility's responsibility to prepare a
relocation evaluation, for each resident and a closure plan and to
provide notice in the case of an eviction pursuant to Section
1569.682. 
   (k) (1) If the admission agreement includes an arbitration
agreement, the arbitration agreement shall comply with all of the
following:  
   (A) Clearly indicate that the agreement to arbitrate is voluntary
and not a precondition for admission.  
   (B) Be written on a form that is separate from the rest of the
admission agreement.  
   (C) Clearly indicate to the parties that, by signing the
arbitration agreement, both parties are voluntarily and knowingly
waiving their right to a trial by jury or court trial and, instead,
accepting the use of arbitration.  
   (2) The arbitration agreement requirements in paragraph (1) shall
not invalidate an arbitration agreement that does not meet the
requirements if the arbitration agreement existed prior to the
effective date of this subdivision. 
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.