BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1329|
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UNFINISHED BUSINESS
Bill No: SB 1329
Author: Leno (D), et al
Amended: 8/20/10
Vote: 21
SENATE HUMAN SERVICES COMMITTEE : 4-0, 3/23/10
AYES: Liu, Romero, Runner, Yee
NO VOTE RECORDED: Maldonado
SENATE APPROPRIATIONS COMMITTEE : 9-0, 5/3/10
AYES: Kehoe, Cox, Corbett, Leno, Price, Walters, Wolk,
Wyland, Yee
NO VOTE RECORDED: Alquist, Denham
SENATE FLOOR : 30-0, 5/10/10
AYES: Aanestad, Alquist, Ashburn, Calderon, Cedillo,
Cogdill, Correa, Cox, DeSaulnier, Ducheny, Florez,
Hancock, Hollingsworth, Huff, Kehoe, Leno, Lowenthal,
Negrete McLeod, Padilla, Pavley, Price, Romero, Runner,
Simitian, Steinberg, Walters, Wolk, Wright, Wyland, Yee
NO VOTE RECORDED: Corbett, Denham, Dutton, Harman, Liu,
Oropeza, Strickland, Wiggins, Vacancy, Vacancy
ASSEMBLY FLOOR : Not available
SUBJECT : Residential care facilities for the elderly
SOURCE : Bet Tzedek Legal Services
California Advocates for Nursing Home Reform
CONTINUED
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DIGEST : This bill requires licensees of residential care
facilities for the elderly to notify the Department of
Social Services (DSS) and, in some instances, residents and
applicants for potential residence, of specified events, in
specified instances, and requires DSS to initiate
compliance plans, noncompliance conferences, or other
appropriate actions upon receipt of the notification.
Assembly Amendments delete the requirement that a
residential care facility for the elderly (RCFE) notify DSS
when "the financial resources of the licensee fall below
the amount needed to operate the facility for a period of
at least the next 45 days based on the current occupancy of
the facility", provide that DSS's options upon receiving
notification from an RCFE of specified events include
"other appropriate action" rather than "other
administrative action", and clarify definitions.
ANALYSIS : Existing law, the California Residential Care
Facilities for the Elderly Act, provides for the licensure
and regulation of RCFEs by DSS. Existing law authorizes
the Director to take enforcement action, including, but not
limited to, actions to suspend or revoke a license and to
impose civil penalties for violations. Under existing law,
a violation of these provisions is a crime.
This bill:
1. Requires that an RCFE licensee notify DSS in writing
within 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.
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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.
C. The licensee files for bankruptcy.
3. Permits DSS to initiate a compliance plan, noncompliance
conference, or other appropriate action upon receipt of
a notice specifying an event listed in #1 above, and
requires DSS to initiate a compliance plan,
noncompliance conference, or other appropriate 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 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.
Background
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RCFEs are assisted living facilities for the aged where
varying levels and intensities of care and supervision,
protective supervision, or personal care are provided,
based upon residents' varying needs. As of March 2010,
there were 7,825 licensed facilities in the state with a
total capacity of 170,290 residents. According to DSS data
from 2007, approximately three-quarters of RCFEs are
licensed for six or fewer residents; the remaining RCFEs
have an average licensed capacity of approximately 60
residents.
Prior Legislation
SB 791 (Leno), Chapter 617, Statutes of 2009, requires a
residential care facility for the elderly to include
additional information when providing a notice of eviction
to a resident, including the reason for the eviction, the
effective date of the eviction, and additional information
informing the resident of his/her rights regarding
evictions.
AB 407 (Beall), Chapter 442, Statutes of 2009, imposes
requirements on continuing care retirement communities in
the event of their permanent closure, including requiring
the continuing care retirement community to provide written
notice to DSS and to the affected residents or designated
representatives 120 days prior to the intended date of
closure of a continuing care retirement community.
SB 1137 (Perata, Corbett, and Machado), Chapter 69,
Statutes of 2008, imposes requirements related to real
estate foreclosures, including requiring the holder of a
mortgage to mail a specified notice to the tenant(s) of a
property on which foreclosure proceedings have begun.
AB 494 (Krekorian), Chapter 686, Statutes of 2007,
established procedures to be followed by a residential care
facility for the elderly prior to transferring a resident
to another facility or living arrangement as a result of
forfeiture of license or change in the use of the facility,
and provides remedies for noncompliance.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
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Local: Yes
According to the Assembly Appropriations Committee,
on-going workload costs potentially in excess of $100,000
($60,000 General Fund) per year for the DSS Community Care
Licensing Division to review incident reports and initiate
administrative actions against licensees.
SUPPORT : (Verified 8/25/10)
Bet Tzedek Legal Services (co-source)
California Advocates for Nursing Home Reform (co-source)
AARP California
Alzheimer's Association
California Retired Teachers Association
Congress of California Seniors
Consumer Attorneys of California
ARGUMENTS IN SUPPORT : The California Advocates for
Nursing Home Reform, a co-sponsor of the bill, writes that
reports of RCFE properties in foreclosure or bankruptcy
have surged and that the bill will substantially reduce the
grave harm that threatens assisted living residents whose
homes are in foreclosure or suffering severe financial
distress.
Bet Tzedek Legal Services writes that the foreclosure
crisis is severely impacting housing for California's RCFE
residents, and that, increasingly, RCFE owners are losing
their homes and residents are being forced to move with
little or no notice. Bet Tzedek points out that such
residents are more vulnerable to emotional and physical
trauma and placement in facilities that cannot meet their
care. Bet Tzedek believes that, ideally, families would
have several months to search for the perfect care home.
Consumer Attorneys of California writes that the
information notices required by the bill will ensure that
all residents receive their legal rights and protections
and will allow for elderly residents and their loved ones
to arrange a safe, trauma-free move and avoid dangerous
last-minute evictions. AARP writes that the bill creates
new protections for RCFE residents.
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DLW:mw 8/25/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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