BILL NUMBER: SB 661 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 13, 2009
INTRODUCED BY Senator Wolk
(Coauthor: Assembly Member Eng)
FEBRUARY 27, 2009
An act to amend Section 1569.884 Sections
1569.884 and 1569.885 of the Health and Safety Code, relating
to residential care facilities for the elderly.
LEGISLATIVE COUNSEL'S DIGEST
SB 661, as amended, 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. This bill would provide that these
requirements shall apply to any arbitration agreement that is
included in an agreement between an elder or dependent adult, or his
or her representative, and a residential care facility for the
elderly for the admission to, or continued care or residence at, the
facility that is entered into, altered, modified, renewed, or
extended on or after January 1, 2010.
This bill would prohibit an admission agreement from containing a
waiver of the residents' personal rights, except as otherwise
required or permitted by statute or regulation.
The bill would provide that its provisions are not intended to
affect existing law relating to the enforceability or
unenforceability of an arbitration agreement.
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.
(D) Provide the resident with the option of rescinding the
arbitration agreement within 10 days of signing the agreement by
delivering written notice of rescission to the person identified in
the arbitration agreement for receipt of that notice.
(2) The arbitration agreement requirements in paragraph (1) shall
apply to any arbitration agreement that is included in an agreement
between an elder or dependent adult, or his or her representative,
and a residential care facility for the elderly for the admission to,
or continued care or residence at, the facility that is entered
into, altered, modified, renewed, or extended on or after January 1,
2010
SEC. 2. Section 1569.885 of the Health
and Safety Code is amended to read:
1569.885. (a) When referring to a resident's obligation to
observe facility rules, the admission agreement shall indicate that
the rules must be reasonable, and that there is a facility procedure
for suggesting changes in the rules. A facility rule shall not
violate any right set forth in this article or in other applicable
laws and regulations.
(b) The admission agreement shall specify that a copy of the
facility grievance procedure for resolution of resident complaints
about facility practices shall be made available to the resident or
his or her representative.
(c) The admission agreement shall inform a resident of the right
to contact the State Department of Social Services, the long-term
care ombudsman, or both, regarding grievances against the facility.
(d) A copy of any applicable resident's rights specified by law or
regulation shall be an attachment to all admission agreements.
(e) The statement of resident's rights attached to admissions
agreements by a residential care facility for the elderly shall
include information on the reporting of suspected or known elder and
dependent adult abuse, as set forth in Section 1569.889.
(f) The admission agreement shall not contain a waiver of the
residents' personal rights, except as otherwise required or permitted
by statute or regulation.
SEC. 3. Nothing in this act is intended to affect
existing law relating to the enforceability or unenforceability of an
arbitration agreement.
SEC. 2. SEC. 4. 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.
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