BILL NUMBER: AB 261	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 1, 2013

INTRODUCED BY   Assembly Member Chesbro

                        FEBRUARY 7, 2013

   An act to  amend Section 1569.884 of, and to  add Section
1569.652 to the Health and Safety Code, relating to residential care
facilities for the elderly.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 261, as amended, Chesbro. Residential care facilities for the
elderly: fees and charges.
   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 fees and charges. Existing law requires the admission
agreement for a residential care facility for the elderly to contain
specified elements. Under existing law, a violation of any of these
provisions is punishable as a misdemeanor.
   This bill would prohibit a residential care facility for the
elderly from requiring advance notice for terminating an admission
agreement upon the death of a resident,  and  would
prohibit the facility from assessing any fees once all personal
property of the deceased is  removed.   removed
from the facility, and would prohibit the facility from impeding the
removal of a deceased resident's personal belongings, as specified.
The bill would require a residential care facility for the elderly to
issue a refund of any fees paid in advance, covering the time after
a deceased resident's belongings have been removed, within 15 days of
those belongings being removed. The bill would also require a
residential care facility for the elderly to, within 3 days of
becoming aware of a resident's death, provide written notice to
specified persons of the facility's policies regarding contract
termination at death and refunds, and to include in the admission
agreement the conditions under which those refunds will be issued.
The bill would exempt from these provisions fees charged by a
continuing care equity project or to amounts deducted from entrance
fee refunds or repayment, as defined. 
   By creating a new crime, this bill would impose 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 1569.652 is added to the Health and Safety
Code, to read:
   1569.652.   (a)    A residential care facility
for the elderly shall not require advance notice for terminating an
admission agreement upon the death of a resident. A residential care
facility for the elderly shall not assess any fees once all personal
property belonging to the deceased resident is removed from the
living unit. 
   (b) Upon the death of a resident, a licensee shall not impede the
removal of the resident's personal belongings from the facility
during reasonable hours by an individual or individuals authorized by
the resident or the resident's responsible person, as identified in
the admission agreement or addendum, or by a representative of the
resident's estate.  
   (c) A refund of any fees paid in advance covering the time after
the belongings have been removed from the facility shall be issued to
the individual, individuals, or entity contractually responsible for
the fees or, if the deceased resident paid the fees, to the resident'
s estate, within 15 days after those belongings are removed. 

   (d) If fees are assessed while a resident's belongings remain in a
unit after the resident is deceased, a licensee shall, within three
days of becoming aware of the resident's death, provide to the
resident's responsible person written notice of the facility's
policies regarding contract termination upon death and refunds. 

   (e) This section shall not apply to fees charged by a continuing
care equity project as defined in paragraph (6) of subdivision (c) of
Section 1771 or to amounts deducted from entrance fee refunds or
repayments described in paragraph (2) of subdivision (r) of Section
1771. 
   SEC. 2.    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  , including the
conditions under which a refund for advanced monthly fees will be
returned in the event of a resident's death, pursuant to Section
1569.652  .
   (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.
   SEC. 2.   SEC. 3.   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.