BILL ANALYSIS
SB 1329
Page 1
SENATE THIRD READING
SB 1329 (Leno)
As Amended August 2, 2010
Majority vote
SENATE VOTE :30-0
HUMAN SERVICES 4-0 JUDICIARY 7-0
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|Ayes:|Beall, Ammiano, Chesbro, |Ayes:|Feuer, Tran , Brownley, |
| |Portantino | |Evans, Huffman, Jones, |
| | | |Monning |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Hagman, Knight, Saldana |
| | | | |
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APPROPRIATIONS 13-4
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|Ayes:|Fuentes, Conway, | | |
| |Bradford, | | |
| |Charles Calderon, Coto, | | |
| |Davis, | | |
| |De Leon, Gatto, Hall, | | |
| |Skinner, Solorio, | | |
| |Torlakson, Torrico | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Harkey, Miller, Nielsen, | | |
| |Norby | | |
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SUMMARY : Requires licensees of residential care facilities for
the elderly (RCFEs), with certain exceptions, to notify the
Department of Social Services (DSS) and, in some instances,
residents and applicants for potential residence, of specified
events, and requires DSS to initiate compliance plans,
noncompliance conferences, or other administrative actions upon
receipt of the notification. Specifically, this bill :
1)Requires that an RCFE licensee notify DSS in writing within
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two business days of any of the following events, or obtaining
knowledge of the event:
a) Failure to make one or more mortgage, lease, or rental
payments on the property within 30 days of the due date;
b) A utility company, defined as a provider of electricity,
gas, or water services, has sent notice of intent to
terminate a utility on the property;
c) A financial institution refuses to honor a check or
other instrument issued by the licensee to its employees
for a regular payroll due to insufficient funds; or,
d) The financial resources of the licensee fall below the
amount needed to operate the facility for at least the next
45 days.
2)Requires that an RCFE licensee notify DSS, all residents, and,
if applicable, their legal representatives in writing two
business days, and, prior to admission, all applicants for
potential residence, and, if applicable, their legal
representatives of any of the following events, or knowledge
of the event:
a) A notice of default, notice of trustee's sale, or any
other indication of foreclosure is issued on the property;
b) An unlawful detainer is initiated against the licensee;
or,
c) The licensee files for bankruptcy.
3)Requires that DSS initiate a compliance plan, noncompliance
conference, or other administrative action upon receipt of a
notice specifying an event listed in 2) above.
4)Provides for civil penalties of $100 per day, up to a maximum
of $2,500, for a licensee's failure to provide required notice
as described above.
5)Authorizes DSS to suspend or revoke the licensee's license or
permanently revoke the licensee's ability to operate or act as
an administrator of a facility anywhere in the state if a
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resident is relocated without the required notification, or if
the resident's health and safety has been compromised as a
result of a relocation that occurs without the required
notification.
6)Exempts from the requirements of this bill RCFE licensees who
have been authorized by DSS to enter into continuing care
contracts at a continuing care retirement community.
FISCAL EFFECT : According to the Assembly Appropriations
Committee: On-going workload costs potentially in excess of
$100,000 ($60,000 GF) per year for the DSS Community Care
Licensing Division to review incident reports and initiate
administrative actions against licensees.
COMMENTS : RCFEs are assisted living facilities for seniors
where varying levels of care and supervision, protective
supervision, or personal care are provided, based upon
residents' needs. As of March 2010, there were 7,825 licensed
facilities in the state with a total capacity of 170,290
residents.
According to the author:
Reports of RCFE properties in foreclosure or
bankruptcy have surged. The State Long-term Care
Ombudsman Program, which tracks its complaints,
reported a six-fold increase in the number of RCFEs in
financial distress from 2006 to 2008. ? The impact of
a foreclosure on RCFE residents can be particularly
devastating because they often rely on the facility to
provide assistance with most of their activities of
daily living. A foreclosure or bankruptcy not only
requires they find a new home but also must find new
care providers, disrupting the patterns of care to
which they had become accustomed.
This bill requires RCFE operators to give notice to the
Community Care Licensing Division of DSS of foreclosures and
other specified events indicating financial distress that would
threaten the housing security of the residents, including a
missed mortgage payment or a threatened utility shut-off. The
notice would trigger a discretionary response by DSS, which will
enable staff to assist the operator and ensure the residents are
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protected. With the most severe signs of financial distress,
the residents must also be notified and DSS must take action.
California Advocates for Nursing Home Reform, co-sponsor of this
bill, says that this bill "ensures vulnerable RCFE residents and
their loved ones are notified and protected when their home is
being threatened due to financial hardship. With such
notification, they will be better able to carefully plan for a
possible move and avoid dangerous last-minute evictions."
Analysis Prepared by : Eric Gelber / HUM. S. / (916) 319-2089
FN: 0005715