BILL ANALYSIS �
SENATE HUMAN
SERVICES COMMITTEE
Senator Carol Liu, Chair
BILL NO: AB 2066
A
AUTHOR: Monning
B
VERSION: June 14, 2012
HEARING DATE: June 26, 2012
2
FISCAL: Yes
0
6
CONSULTANT: Sara Rogers
6
SUBJECT
Residential care facilities for the elderly: revocation of
license
SUMMARY
Revises procedures used by the Department of Social
Services when revoking a license for a Residential Care
Facility for the Elderly (RCFE). Specifies notice that
must be provided to residents prior to eviction due to a
revocation of license. Permits a licensee who is subject
to a license revocation to arrange for a third part
facility manager in order to avoid closure of the facility.
Establishes a refund schedule for preadmission fees paid
by residents of an RCFE that is subject to closure due to a
revocation of license.
ABSTRACT
Current law
1.Provides for the inspection and licensure of residential
care facilities for the elderly (RCFE) by the Department
of Social Services (DSS) pursuant to the California
Continued---
STAFF ANALYSIS OF ASSEMBLY BILL 2066 (Monning) Page
2
Residential Facilities for the Elderly Act and provides
for the certification of administrators of RCFEs by DSS.
2.Permits DSS to enforce the Act by levying specified civil
penalties, excluding certain individuals from employment
in the facility, temporarily suspending a license or
revoking a license, as specified.
3.Requires proceedings for the suspension, revocation, or
denial of a license to be conducted (GC 11500).
4.Requires a licensed residential care facility for the
elderly to provide written notice to a resident, a
resident's responsible party, and the local long term
care ombudsman within 10 days if DSS commences
proceedings to suspend or revoke the license of the
facility or a criminal action related to the health and
safety of residents is brought forward against a facility
(HSC 1569.38).
5.Requires the licensee, in the event of forfeiture or
revocation of license, to take all reasonable steps to
transfer affected residents safely and to minimize
possible transfer trauma including providing a written
eviction notice at least 60 days in advance of the
eviction date and preparing a relocation evaluation that
includes specified information.
6.Requires DSS, when temporarily suspending a license, to
make every effort to minimize trauma for residents, to
contact any local agency that may have placement or
advocacy responsibility for residents, and to use medical
personnel deemed appropriate to provide onsite
evaluations of the residents and to assist in the
transfer.
This bill
1.Requires DSS, when revoking a license, to follow the
STAFF ANALYSIS OF ASSEMBLY BILL 2066 (Monning) Page
3
procedures that are followed when temporarily suspending
a license.
2.Requires the licensee, upon an order to revoke a license,
to provide a 60 day written notice to the resident and
the resident's responsible person within 24 hours of
receipt of the revocation order from DSS.
3.Requires DSS to permit the licensee to secure the
services of a person who is not an immediate family
member or of an entity that is not owned by the licensee
to manage the day to day operations of the RCFE for at
least 60 days, if a proposal is submitted to DSS within
72 hours of the licensee's receipt of a revocation order.
4.Provides that the person or entity assuming
responsibility must be currently licensed and in
substantial compliance to operate an RCFE that is of
comparable size and has comparable programming capacity,
as defined, and that the proposal includes all of the
following;
A completed application for a facility license,
as specified.
A copy of the executed agreement between the
licensee and the person or entity assuming
responsibility that delineates the roles and
responsibly of each party and specifies that the
person or entity assuming responsibility shall have
the full authority necessary to operate the facility
without interference from the licensee.
1.Provides that the person or entity assuming
responsibility is not subject to the application fee and
that if DSS denies the application, the denial shall not
be deemed a denial of licensure application subject to an
administrative law hearing or other procedural rights.
2.Provides that, within 15 days of issuing the notice of
STAFF ANALYSIS OF ASSEMBLY BILL 2066 (Monning) Page
4
closure, residents who transfer during the 60 day period
are entitled to a refund or partial refund of
preadmission fees in excess of $500, as in accordance
with the following schedule:
A 100% refund if fees were paid within six
months of the notice of closure.
A 75% refund if fees were paid within 6-12
months of the notice of closure.
A 50% refund if fees were paid within 12-18
months of the notice of closure.
A 25% refund if fees were paid within 18-25
months of the notice of closure.
No refund if fees were paid 25 months or more
prior to the notice of closure.
1.Requires the licensee to refund a proportional per diem
amount of any prepaid monthly fees to residents who
transfer during the 60 day period.
2.Requires the licensee that had his or her license
revoked, within 10 days after all residents who are
transferring have left the facility, to submit a final
list of names and new locations of all residents to DSS
and the local ombudsman program.
3.Allows DSS to amend the effective date of the order of
revocation and close the facility prior to the 60 day
notice period, or to pursue any other available remedies,
if necessary to protect the health and safety of the
residents in care.
4.Removes "revocation of a license" from statutory notice
requirements that currently apply to forfeiture or
revocation of a license, such that those notice
requirements will only apply to forfeiture of license and
the above provisions will apply to revocation of a
license.
FISCAL IMPACT
STAFF ANALYSIS OF ASSEMBLY BILL 2066 (Monning) Page
5
The Assembly Appropriations Committee finds that costs
associated with this legislation would be minor and
absorbable within existing resources.
BACKGROUND AND DISCUSSION
Residential Care Facilities for the Elderly (RCFEs) are
licensed housing facilities serving residents aged 60 and
older, which provide a non-medical, homelike environment
for residents who have a broad variety of care needs.
RCFEs with six or fewer beds are frequently referred to as
"board and care homes" or "senior care homes," while RCFEs
with more than six beds and in some instances several
hundred beds are generally referred to as "assisted living
facilities". Regardless of capacity size, all RCFEs are
licensed by DSS in accordance with the California
Residential Facilities for the Elderly Act. DSS reports
that, as of June 2012, there were 7,667 licensed RCFEs in
the state with a total capacity of 171,939 residents,
approximately 80% of which are licensed for six or fewer
residents.
According to the author, AB 2066 addresses an unintended
consequence of AB 313 (Monning, Chapter 365, Statutes of
2011), which added "revocation of a license" to statute
that required licensees to provide a 60-day notice prior to
evicting a resident due to voluntary forfeiture of a
license. The author states that, subsequent to passage of
AB 313, DSS raised concerns that the law precluded the
department from closing a facility prior to the end of the
60-day notice period even when necessary to protect the
health and safety of the residents in care. This bill
deletes the provision that was added under AB 313 and
inserts a new notice requirement requiring a licensee to
provide a 60-day eviction notice no more than 24 hours
after receipt of a revocation order from DSS, but permits
DSS to close the facility before the 60-days has elapsed,
when necessary to protect the health and safety of the
residents in care.
Additionally, the author states that a licensee may no
STAFF ANALYSIS OF ASSEMBLY BILL 2066 (Monning) Page
6
longer be willing or able to meet the needs of the
residents for the next 60 days and cites an increased risk
that care staff will begin leaving the RCFE for other
employment once license revocation is announced. This bill
permits a licensee who is subject to a revocation order to
locate a qualified third- party manager to administer the
day-to-day operations of the facility during the closure
period.
AB 313 was introduced in 2011 following the license
revocation of Chanticleer Residential Care Facility in the
County of Santa Cruz, a 48-bed RCFE, which provided only
two weeks' notice to residents prior to closure of the
facility even though DSS had begun legal action against the
facility several weeks prior to the final revocation order.
Related Legislation
AB 313 (Monning, Chapter 365, Statutes of 2011) Requires
each RCFE to provide residents, their responsible party,
and the local long-term care ombudsman with a written
notice when the DSS commences proceedings to suspend or
revoke its license, or a criminal action relating to health
or safety of the residents is brought against the facility,
and makes other changes related to these actions.
AB 419 (Mitchell, 2011) Requires every community care
facility licensed by DSS to be inspected unannounced at
least once per year using research based, field tested
inspection protocols, as specified. This bill died in the
Assembly Appropriations Committee.
SB 897 (Leno, Chapter 376, Statutes of 2011) Requires
licensed residential care facilities for the elderly
(RCFEs) to notify the California Department of Social
Services (DSS), the state's Long-Term Care Ombudsman and
the facility's residents when the property is subject to
foreclosure or certain other events occur due to financial
distress.
PRIOR VOTES
STAFF ANALYSIS OF ASSEMBLY BILL 2066 (Monning) Page
7
Assembly Floor: 70 - 0
Assembly Appropriations: 17 - 0
Assembly Aging and LTC: 6 - 0
Assembly Human Services: 6 - 0
POSITIONS
Support: Aging Services of California
Association of Regional Center Agencies
California Assisted Living Association
California Commission of Aging
Joseph Rodrigues, State Long Term Care
Ombudsman
Oppose: None received
-- END --