Amended in Senate August 22, 2014

Amended in Senate August 11, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 1477


Introduced by Committee on Budget (Skinner (Chair), Bloom, Campos, Chesbro, Dababneh, Daly, Dickinson, Gordon, Jones-Sawyer, Mullin, Muratsuchi, Nazarian, Rodriguez, Stone, Ting, and Weber)

January 9, 2014


An act tobegin insert add Chapter 7 (commencing with Section 155) to Title 1 of Part 1 of the Code of Civil Procedure, to add Section 757 to the Evidence Code, toend insert amend Sections 1546.1, 1546.2, 1569.481, 1569.482, and 1569.682 of the Health and Safety Code, to amend Sections 11461.3, 11462.04, 11477, and 12300.4 ofbegin insert, and to add Chapter 5.6 (commencing with Section 13300) to Part 3 of Division 9 of,end insert the Welfare and Institutions Code, and to amend Section 88 of Chapter 29 of the Statutes of 2014, relating to human services, and making an appropriation therefor, to take effect immediately, bill related to the budget.

LEGISLATIVE COUNSEL’S DIGEST

AB 1477, as amended, Committee on Budget. Human services.

begin insert

(1) Existing federal law, the Immigration and Nationality Act, establishes a procedure for classification of certain aliens as special immigrants who have been declared dependent on a juvenile court, and authorizes those aliens who have been granted special immigrant juvenile status to apply for an adjustment of status to that of a lawful permanent resident within the United States. Under federal regulations, state juvenile courts are charged with making a preliminary determination of the child’s dependency, as specified. Existing federal regulations define juvenile court to mean a court located in the United States having jurisdiction under state law to make judicial determinations about the custody and care of juveniles.

end insert
begin insert

Existing law establishes the jurisdiction of the juvenile court, which may adjudge a minor to be a dependent or ward of the court. Existing law also establishes the jurisdiction of the probate court. Existing law regulates the establishment and termination of guardianships in probate court, and specifies that a guardian has the care, custody, and control of a ward. Existing law establishes the jurisdiction of the family court, which may make determinations about the custody of children.

end insert
begin insert

This bill would provide that the superior court, including the juvenile, probate, or family court division of the superior court, has jurisdiction to make judicial determinations regarding the custody and care of juveniles within the meaning of the federal Immigration and Nationality Act. The bill would require the superior court to make an order containing the necessary findings regarding special immigrant juvenile status pursuant to federal law, if there is evidence to support those findings. The bill would require records of these proceedings that are not otherwise protected by state confidentiality laws to remain confidential, and would also authorize the sealing of these records. The bill would require the Judicial Council to adopt any rules and forms needed to implement these provisions.

end insert
begin insert

(2) Existing federal law, Title VI of the federal Civil Rights Act of 1964 and the Safe Streets Act of 1968, prohibit national origin discrimination by recipients of federal assistance.

end insert
begin insert

The California Constitution provides that a person unable to understand English who is charged with a crime has the right to an interpreter throughout the proceedings. Existing law requires that court interpreters’ fees or other compensation be paid by the court in criminal cases, and by the litigants in civil cases, as specified. Existing law requires, in any action or proceeding under specified provisions of the Family Code relating to domestic violence, an interpreter to be provided by the court for a party who does not proficiently speak or understand the English language to interpret the proceedings in a language that the party understands and to assist communication between the party and his or her attorney.

end insert
begin insert

This bill would state that existing law and authority to provide interpreters in civil court includes providing an interpreter for a child in a proceeding in which a petitioner requests an order from the superior court to make the findings regarding special immigrant juvenile status.

end insert
begin delete

(1)

end delete

begin insert(3)end insert Under existing law, the State Department of Social Services regulates the licensure and operation of various types of facilities, including community care facilities and residential care facilities for the elderly.

Existing law authorizes the department to appoint a temporary manager to assume the operation of a community care facility or residential care facility for the elderly for 60 days, subject to extension by the department, when specified circumstances exist. To the extent department funds are used for the costs of the temporary manager or related expenses, existing law requires the department to be reimbursed from the revenues accruing to the facility or to the licensee, and to the extent those revenues are insufficient, requires that the unreimbursed amount constitute a lien upon the asset of the facility or the proceeds from the sale of the facility.

Existing law also authorizes the department to apply for a court order appointing a receiver to temporarily operate a community care facility or a residential care facility for the elderly for no more than 3 months, subject to extension by the department, when certain circumstances exist. To the extent that state funds are used to pay for the salary of the receiver or other related expenses, existing law requires the state be reimbursed from the revenues accruing to the facility or to the licensee or the entity related to the license, and to the extent that those revenues are insufficient, requires the unreimbursed amount constitute a lien on the assets of the facility or the proceeds from the sale of the facility.

This bill would instead provide that if the revenues are insufficient to reimburse the department for the costs of the temporary manager, the salary of the receiver, or related expenses, the unreimbursed amount shall constitute grounds for a monetary judgment in civil court and subsequent lien upon the assets of the facility or the proceeds from the sale thereof. The bill would make other related changes to these provisions. The bill would provide that liens placed against the personal and real property of a licensee for reimbursement of funds relating to the receivership be given judgment creditor priority.

begin delete

(2)

end delete

begin insert(4)end insert Existing law requires each county to provide cash assistance and other social services to needy families through the California Work Opportunity and Responsibility to Kids (CalWORKs) program using federal Temporary Assistance to Needy Families (TANF) block grant program, state, and county funds. Existing law specifies the amounts of cash aid to be paid each month to CalWORKs recipients. Existing law continuously appropriates moneys from the General Fund to defray a portion of county costs under the CalWORKs program.

Existing law establishes the Aid to Families with Dependent Children-Foster Care (AFDC-FC) program, under which counties provide payments to foster care providers on behalf of qualified children in foster care. Under existing law, a child is eligible for AFDC-FC if he or she is placed in the approved home of a relative and is otherwise eligible for federal financial participation in the AFDC-FC payment, as specified. Existing law, beginning January 1, 2015, establishes the Approved Relative Caregiver Funding Option Program in counties choosing to participate, for the purpose of making the amount paid to relative caregivers for the in-home care of children placed with them who are ineligible for AFDC-FC payments equal to the amount paid on behalf of children who are eligible for AFDC-FC payments.

Existing law requires that the related child placed in the home meet certain requirements in order to be eligible under the Approved Relative Caregiver Funding Option Program and requires that specified funding be used for the program.

This bill would require, for purposes of this program, that the care and placement of the child be the responsibility of the county welfare department or the county probation department. The bill would also, for purposes of funding the program, delete the requirement that the funding of the applicable per-child CalWORKs grant be limited to the federal funds received.

begin delete

(3)

end delete

begin insert(5)end insert Under existing law, foster care providers licensed as group homes have rates established by classifying each group home program and applying a standardized schedule of rates. Existing law prohibits the establishment of a new group home rate or change to an existing rate under the AFDC-FC program, except for exemptions granted by the department on a case-by-case basis. Existing law also limits, for the 2012-13 and 2013-14 fiscal years, exceptions for any program with a rate classification level below 10 to exceptions associated with a program change.

This bill would extend that limitation to the 2014-15 fiscal year.

begin delete

(4)

end delete

begin insert(6)end insert Existing law requires each applicant or recipient to assign to the county, as a condition of eligibility for aid paid under CalWORKs, any rights to support from any other person the applicant or recipient may have on his or her own behalf, or on behalf of any other family member for whom the applicant or recipient is applying for or receiving aid, and to cooperate with the county welfare department and local child support agency in establishing the paternity of a child of the applicant or recipient born out of wedlock with respect to whom aid is claimed, and in establishing, modifying, or enforcing a support order with respect to a child of the individual for whom aid is requested or obtained. Existing law exempts from these provisions an assistance unit that excludes any adults pursuant to specified provisions of law, including a provision that makes an individual ineligible for CalWORKs aid if the individual has been convicted in state or federal court for a felony drug conviction, as specified, after December 31, 1997.

This bill would provide that if the income for an assistance unit that excludes any adults as described above includes reasonably anticipated income derived from child support, thebegin delete first $50end deletebegin insert amount established in specified provisions of lawend insert of any amount of child support received each month shall not be considered income or resources and shall not be deducted from the amount of aid to which the assistance unit otherwise would be eligible.

begin delete

(5)

end delete

begin insert(7)end insert Existing law establishes the In-Home Supportive Services (IHSS) program, administered by the State Department of Social Services and counties, under which qualified aged, blind, and disabled persons are provided with services in order to permit them to remain in their own homes and avoid institutionalization. Existing law establishes the Medi-Cal program, administered by the State Department of Health Care Services, under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid Program provisions. Existing law authorizes certain Medi-Cal recipients to receive waiver personal care services, as defined, in order to allow the recipients to remain in their own homes.

Existing law requires that in-home supportive services and waiver personal care services be performed by providers within a workweek that does not exceed 66 hours per week, as reduced by a specified net percentage.

This bill would, if certain conditions are met, deem a provider authorized to work a recipient’s county-approved adjusted hours for the week when a recipient’s weekly authorized hours are adjusted and at the time of adjustment the recipient currently receives all authorized hours of services from one provider.

begin insert

(8) Existing federal law, the Homeland Security Act of 2002, empowers the Director of the Office of Refugee Resettlement of the federal Department of Health and Human Services with functions under the immigration laws of the United States with respect to the care of unaccompanied alien children, as defined, including, but not limited to, coordinating and implementing the care and placement of unaccompanied alien children who are in federal custody by reason of their immigration status, including developing a plan to be submitted to Congress on how to ensure that qualified and independent legal counsel is timely appointed to represent the interests of each child, as provided. Existing law designates the State Department of Social Services as the single agency with full power to supervise every phase of the administration of public social services, except health care services and medical assistance.

end insert
begin insert

This bill would require the State Department of Social Services, subject to the availability of funding, to contract with qualified nonprofit legal services organizations to provide legal services to unaccompanied undocumented minors, as defined, who are transferred to the care and custody of the federal Office of Refugee Resettlement and who are present in this state. The bill would require that the contracts awarded meet certain conditions.

end insert
begin delete

(6)

end delete

begin insert(9)end insert Existing law authorizes the State Department of Social Services to implement specified provisions ofbegin delete theend delete Chapter 29 of the Statutes of 2014 through all-county letters or similar instructions and requires the department to adopt emergency regulations implementing these provisions no later than January 1, 2016.

This bill would extend that authorization for all-county letters and similar instructions to additional provisions of Chapter 29 of the Statutes of 2014 that relate to the CalFresh program.

begin insert

(10) This bill would provide that its provisions are severable.

end insert
begin insert

(11) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

end insert
begin insert

This bill would make legislative findings to that effect.

end insert
begin insert

(12) This bill would incorporate additional changes to Section 1569.682 of the Health and Safety Code made by this bill and AB 1899, to take effect if both bills are chaptered and this bill is chaptered last.

end insert
begin delete

(7)

end delete

begin insert(13)end insert Item 5180-151-0001 of Section 2.00 of the Budget Act of 2014 appropriated $1,435,400,000 to the State Department of Social Services for local assistance for children and adult services, which includes, among other things, increased costs associated with cases of child abuse and neglect and revised federal requirements for child welfare case reviews, and funds for the Commercially Sexually Exploited Children Program. Item 5180-153-0001 of Section 2.00 of the Budget Act of 2014 also appropriated $1,901,000 to the State Department of Social Services for local assistance for increased costs associated with revised county collection and reporting activities for cases of child abuse and neglect and revised federal requirements for chi ld welfare case reviews.

This bill would revise these items by increasing the appropriation in Item 5180-151-0001 by $1,686,000 for the Commercially Sexually Exploited Children Program, and by reducing the appropriation in Item 5180-153-0001 by $1,686,000.

begin delete

(8)

end delete

begin insert(14)end insert This bill would provide that the continuous appropriation applicable to CalWORKs is not made for purposes of implementing the bill.

begin delete

(9)

end delete

begin insert(15)end insert This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P7    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertChapter 7 (commencing with Section 155) is
2added to Title 1 of Part 1 of the end insert
begin insertCode of Civil Procedureend insertbegin insert, to read:end insert

begin insert

3 

4Chapter  begin insert7.end insert Special Immigrant Juvenile Findings
5

 

6

begin insert155.end insert  

(a) A superior court has jurisdiction under California
7law to make judicial determinations regarding the custody and
8care of children within the meaning of the federal Immigration
9and Nationality Act (8 U.S.C. Sec. 1101(a)(27)(J) and 8 C.F.R.
P8    1Sec. 204.11), which includes, but is not limited to, the juvenile,
2probate, and family court divisions of the superior court. These
3courts may make the findings necessary to enable a child to petition
4the United States Citizenship and Immigration Service for
5classification as a special immigrant juvenile pursuant to Section
61101 (a)(27)(J) of Title 8 of the United States Code.

7(b) (1) If an order is requested from the superior court making
8the necessary findings regarding special immigrant juvenile status
9pursuant to Section 1101(a)(27)(J) of Title 8 of the United States
10Code, and there is evidence to support those findings, which may
11consist of, but is not limited to, a declaration by the child who is
12the subject of the petition, the court shall issue the order, which
13shall include all of the following findings:

14(A) The child was either of the following:

15(i) Declared a dependent of the court.

16(ii) Legally committed to, or placed under the custody of, a state
17agency or department, or an individual or entity appointed by the
18court. The court shall indicate the date on which the dependency,
19commitment, or custody was ordered.

20(B) That reunification of the child with one or both of the child’s
21parents was determined not to be viable because of abuse, neglect,
22abandonment, or a similar basis pursuant to California law. The
23court shall indicate the date on which reunification was determined
24not to be viable.

25(C) That it is not in the best interest of the child to be returned
26to the child’s, or his or her parent’s, previous country of nationality
27or country of last habitual residence.

28(2) If requested by a party, the court may make additional
29findings that are supported by evidence.

30(c) In any judicial proceedings in response to a request that the
31superior court make the findings necessary to support a petition
32for classification as a special immigrant juvenile, information
33regarding the child’s immigration status that is not otherwise
34protected by state confidentiality laws shall remain confidential
35and shall be available for inspection only by the court, the child
36who is the subject of the proceeding, the parties, the attorneys for
37the parties, the child’s counsel, and the child’s guardian.

38(d) In any judicial proceedings in response to a request that the
39superior court make the findings necessary to support a petition
40for classification as a special immigrant juvenile, records of the
P9    1proceedings that are not otherwise protected by state
2confidentiality laws may be sealed using the procedure set forth
3in California Rules of Court 2.550 and 2.551.

4(e) The Judicial Council shall adopt any rules and forms needed
5to implement this section.

end insert
6begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 757 is added to the end insertbegin insertEvidence Codeend insertbegin insert, to read:end insert

begin insert
7

begin insert757.end insert  

Pursuant to this chapter, other applicable law, and
8existing Judicial Council policy, including the policy adopted on
9January 23, 2014, existing authority to provide interpreters in civil
10court includes the authority to provide an interpreter in a
11proceeding in which a petitioner requests an order from the
12superior court to make the findings regarding special immigrant
13juvenile status pursuant to Section 1101(a)(27)(J) of Title 8 of the
14United States Code.

end insert
15

begin deleteSECTION 1.end delete
16begin insertSEC. 3.end insert  

Section 1546.1 of the Health and Safety Code, as added
17by Section 11 of Chapter 29 of the Statutes of 2014, is amended
18to read:

19

1546.1.  

(a) (1) It is the intent of the Legislature in enacting
20this section to authorize the department to take quick, effective
21action to protect the health and safety of clients of community care
22facilities and to minimize the effects of transfer trauma that
23accompany the abrupt transfer of clients by appointing a temporary
24manager to assume the operation of a facility that is found to be
25in a condition in which continued operation by the licensee or his
26or her representative presents a substantial probability of imminent
27danger of serious physical harm or death to the clients.

28(2) A temporary manager appointed pursuant to this section
29shall assume the operation of the facility in order to bring it into
30compliance with the law, facilitate a transfer of ownership to a
31new licensee, or ensure the orderly transfer of clients should the
32facility be required to close. Upon a final decision and order of
33revocation of the license or a forfeiture by operation of law, the
34department shall immediately issue a provisional license to the
35appointed temporary manager. Notwithstanding the applicable
36sections of this code governing the revocation of a provisional
37license, the provisional license issued to a temporary manager shall
38automatically expire upon the termination of the temporary
39manager. The temporary manager shall possess the provisional
40license solely for purposes of carrying out the responsibilities
P10   1authorized by this section and the duties set forth in the written
2agreement between the department and the temporary manager.
3The temporary manager shall have no right to appeal the expiration
4of the provisional license.

5(b) For purposes of this section, “temporary manager” means
6the person, corporation, or other entity appointed temporarily by
7the department as a substitute facility licensee or administrator
8with authority to hire, terminate, reassign staff, obligate facility
9funds, alter facility procedures, and manage the facility to correct
10deficiencies identified in the facility’s operation. The temporary
11manager shall have the final authority to direct the care and
12supervision activities of any person associated with the facility,
13including superseding the authority of the licensee and the
14administrator.

15(c) The director may appoint a temporary manager when it is
16determined that it is necessary to temporarily suspend any license
17of a community care facility pursuant to Section 1550.5 and any
18of the following circumstances exist:

19(1) The immediate relocation of the clients is not feasible based
20on transfer trauma, lack of alternate placements, or other emergency
21considerations for the health and safety of the clients.

22(2) The licensee is unwilling or unable to comply with the
23requirements of Section 1556 for the safe and orderly relocation
24of clients when ordered to do so by the department.

25(d) (1) Upon appointment, the temporary manager shall
26complete its application for a license to operate a community care
27facility and take all necessary steps and make best efforts to
28eliminate any substantial threat to the health and safety to clients
29or complete the transfer of clients to alternative placements
30pursuant to Section 1556. For purposes of a provisional license
31issued to a temporary manager, the licensee’s existing fire safety
32clearance shall serve as the fire safety clearance for the temporary
33manager’s provisional license.

34(2) A person shall not impede the operation of a temporary
35manager. The temporary manager’s access to, or possession of,
36the property shall not be interfered with during the term of the
37temporary manager appointment. There shall be an automatic stay
38for a 60-day period subsequent to the appointment of a temporary
39manager of any action that would interfere with the functioning
40of the facility, including, but not limited to, termination of utility
P11   1services, attachments or set-offs of client trust funds, and
2repossession of equipment in the facility.

3(e) (1) The appointment of a temporary manager shall be
4immediately effective and shall continue for a period not to exceed
560 days unless otherwise extended in accordance with paragraph
6(2) of subdivision (h) at the discretion of the department or
7otherwise terminated earlier by any of the following events:

8(A) The temporary manager notifies the department, and the
9department verifies, that the facility meets state and, if applicable,
10federal standards for operation, and will be able to continue to
11maintain compliance with those standards after the termination of
12the appointment of the temporary manager.

13(B) The department approves a new temporary manager.

14(C) A new operator is licensed.

15(D) The department closes the facility.

16(E) A hearing or court order ends the temporary manager
17appointment, including the appointment of a receiver under Section
181546.2.

19(F) The appointment is terminated by the department or the
20temporary manager.

21(2) The appointment of a temporary manager shall authorize
22the temporary manager to act pursuant to this section. The
23appointment shall be made pursuant to a written agreement between
24the temporary manager and the department that outlines the
25circumstances under which the temporary manager may expend
26funds. The department shall provide the licensee and administrator
27with a copy of the accusation to appoint a temporary manager at
28the time of appointment. The accusation shall notify the licensee
29of the licensee’s right to petition the Office of Administrative
30Hearings for a hearing to contest the appointment of the temporary
31manager as described in subdivision (f) and shall provide the
32licensee with a form and appropriate information for the licensee’s
33use in requesting a hearing.

34(3) The director may rescind the appointment of a temporary
35manager and appoint a new temporary manager at any time that
36the director determines the temporary manager is not adhering to
37the conditions of the appointment.

38(f) (1) The licensee of a community care facility may contest
39the appointment of the temporary manager by filing a petition for
40an order to terminate the appointment of the temporary manager
P12   1with the Office of Administrative Hearings within 15 days from
2the date of mailing of the accusation to appoint a temporary
3manager under subdivision (e). On the same day as the petition is
4filed with the Office of Administrative Hearings, the licensee shall
5serve a copy of the petition to the office of the director.

6(2) Upon receipt of a petition under paragraph (1), the Office
7of Administrative Hearings shall set a hearing date and time within
810 business days of the receipt of the petition. The office shall
9promptly notify the licensee and the department of the date, time,
10and place of the hearing. The office shall assign the case to an
11administrative law judge. At the hearing, relevant evidence may
12be presented pursuant to Section 11513 of the Government Code.
13The administrative law judge shall issue a written decision on the
14petition within 10 business days of the conclusion of the hearing.
15The 10-day time period for holding the hearing and for rendering
16a decision may be extended by the written agreement of the parties.

17(3) The administrative law judge shall uphold the appointment
18of the temporary manager if the department proves, by a
19preponderance of the evidence, that the circumstances specified
20in subdivision (c) applied to the facility at the time of the
21appointment. The administrative law judge shall order the
22termination of the temporary manager if the burden of proof is not
23satisfied.

24(4) The decision of the administrative law judge is subject to
25judicial review as provided in Section 1094.5 of the Code of Civil
26Procedure by the superior court of the county where the facility is
27located. This review may be requested by the licensee of the facility
28or the department by filing a petition seeking relief from the order.
29The petition may also request the issuance of temporary injunctive
30relief pending the decision on the petition. The superior court shall
31hold a hearing within 10 business days of the filing of the petition
32and shall issue a decision on the petition within 10 days of the
33hearing. The department may be represented by legal counsel
34within the department for purposes of court proceedings authorized
35under this section.

36(g) If the licensee of the community care facility does not protest
37the appointment or does not prevail at either the administrative
38hearing under paragraph (2) of subdivision (f) or the superior court
39hearing under paragraph (4) of subdivision (f), the temporary
40manager shall continue in accordance with subdivision (e).

P13   1(h) (1) If the licensee of the community care facility petitions
2the Office of Administrative Hearings pursuant to subdivision (f),
3the appointment of the temporary manager by the director pursuant
4to this section shall continue until it is terminated by the
5administrative law judge or by the superior court, or it shall
6continue until the conditions of subdivision (e) are satisfied,
7whichever is earlier.

8(2) At any time during the appointment of the temporary
9manager, the director may request an extension of the appointment
10by filing a petition for hearing with the Office of Administrative
11Hearings and serving a copy of the petition on the licensee. The
12office shall proceed as specified in paragraph (2) of subdivision
13(f). The administrative law judge may extend the appointment of
14the temporary manager an additional 60 days upon a showing by
15the department that the conditions specified in subdivision (c)
16continue to exist.

17(3) The licensee or the department may request review of the
18administrative law judge’s decision on the extension as provided
19in paragraph (4) of subdivision (f).

20(i) The temporary manager appointed pursuant to this section
21shall meet the following qualifications:

22(1) Be qualified to oversee correction of deficiencies on the
23basis of experience and education.

24(2) Not be the subject of any pending actions by the department
25or any other state agency nor have ever been excluded from a
26department licensed facility or had a license or certification
27suspended or revoked by an administrative action by the
28department or any other state agency.

29(3) Have no financial ownership interest in the facility and have
30no member of his or her immediate family who has a financial
31ownership interest in the facility.

32(4) Not currently serve, or within the past two years have served,
33as a member of the staff of the facility.

34(j) Payment of the costs of the temporary manager shall comply
35with the following requirements:

36(1) Upon agreement with the licensee, the costs of the temporary
37manager and any other expenses in connection with the temporary
38management shall be paid directly by the facility while the
39temporary manager is assigned to that facility. Failure of the
40licensee to agree to the payment of those costs may result in the
P14   1payment of the costs by the department and subsequent required
2reimbursement of the department by the licensee pursuant to this
3section.

4(2) Direct costs of the temporary manager shall be equivalent
5to the sum of the following:

6(A) The prevailing fee paid by licensees for positions of the
7same type in the facility’s geographic area.

8(B) Additional costs that reasonably would have been incurred
9by the licensee if the licensee and the temporary manager had been
10in an employment relationship.

11(C) Any other reasonable costs incurred by the temporary
12manager in furnishing services pursuant to this section.

13(3) May exceed the amount specified in paragraph (2) if the
14department is otherwise unable to attract a qualified temporary
15manager.

16(k) (1) The responsibilities of the temporary manager may
17include, but are not limited to, the following:

18(A) Paying wages to staff. The temporary manager shall have
19the full power to hire, direct, manage, and discharge employees
20of the facility, subject to any contractual rights they may have.
21The temporary manager shall pay employees at the same rate of
22compensation, including benefits, that the employees would have
23received from the licensee or wages necessary to provide adequate
24staff for the protection of clients and compliance with the law.

25(B) Preserving client funds. The temporary manager shall be
26entitled to, and shall take possession of, all property or assets of
27clients that are in the possession of the licensee or administrator
28of the facility. The temporary manager shall preserve all property,
29assets, and records of clients of which the temporary manager takes
30possession.

31(C) Contracting for outside services as may be needed for the
32operation of the facility. Any contract for outside services in excess
33of five thousand dollars ($5,000) shall be approved by the director.

34(D) Paying commercial creditors of the facility to the extent
35required to operate the facility. The temporary manager shall honor
36all leases, mortgages, and secured transactions affecting the
37building in which the facility is located and all goods and fixtures
38in the building, but only to the extent of payments that, in the case
39of a rental agreement, are for the use of the property during the
40period of the temporary management, or that, in the case of a
P15   1purchase agreement, come due during the period of the temporary
2management.

3(E) Doing all things necessary and proper to maintain and
4operate the facility in accordance with sound fiscal policies. The
5temporary manager shall take action as is reasonably necessary to
6protect or conserve the assets or property of which the temporary
7manager takes possession and may use those assets or property
8only in the performance of the powers and duties set out in this
9section.

10(2) Expenditures by the temporary manager in excess of five
11thousand dollars ($5,000) shall be approved by the director. Total
12encumbrances and expenditures by the temporary manager for the
13duration of the temporary management shall not exceed the sum
14of forty-nine thousand nine hundred ninety-nine dollars ($49,999)
15unless approved by the director in writing.

16(3) The temporary manager shall make no capital improvements
17to the facility in excess of five thousand dollars ($5,000) without
18the approval of the director.

19(l) (1) To the extent department funds are advanced for the
20costs of the temporary manager or for other expenses in connection
21with the temporary management, the department shall be
22reimbursed from the revenues accruing to the facility or to the
23licensee or an entity related to the licensee. Any reimbursement
24received by the department shall be redeposited in the account
25from which the department funds were advanced. If the revenues
26are insufficient to reimburse the department, the unreimbursed
27amount shall constitute grounds for a monetary judgment in civil
28court and a subsequent lien upon the assets of the facility or the
29proceeds from the sale thereof. Pursuant to Chapter 2 (commencing
30with Section 697.510) of Division 2 of Title 9 of Part 2 of the Code
31of Civil Procedure, a lien against the personal assets of the facility
32or an entity related to the licensee based on the monetary judgment
33obtained shall be filed with the Secretary of State on the forms
34required for a notice of judgment lien. A lien against the real
35property of the facility or an entity related to the licensee based
36on the monetary judgment obtained shall be recorded with the
37county recorder of the county where the facility of the licensee is
38located or where the real property of the entity related to the
39licensee is located. The lien shall not attach to the interests of a
40lessor, unless the lessor is operating the facility. The authority to
P16   1place a lien against the personal and real property of the licensee
2for the reimbursement of any state funds expended pursuant to this
3section shall be given judgment creditor priority.

4(2) For purposes of this section, “entity related to the licensee”
5means an entity, other than a natural person, of which the licensee
6is a subsidiary or an entity in which a person who was obligated
7to disclose information under Section 1520 possesses an interest
8that would also require disclosure pursuant to Section 1520.

9(m) Appointment of a temporary manager under this section
10does not relieve the licensee of any responsibility for the care and
11supervision of clients under this chapter. The licensee, even if the
12license is deemed surrendered or the facility abandoned, shall be
13required to reimburse the department for all costs associated with
14operation of the facility during the period the temporary manager
15is in place that are not accounted for by using facility revenues or
16for the relocation of clients handled by the department if the
17licensee fails to comply with the relocation requirements of Section
181556 when required by the department to do so. If the licensee
19fails to reimburse the department under this section, then the
20department, along with using its own remedies available under
21this chapter, may request that the Attorney General’s office, the
22city attorney’s office, or the local district attorney’s office seek
23any available criminal, civil, or administrative remedy, including,
24but not limited to, injunctive relief, restitution, and damages in the
25same manner as provided for in Chapter 5 (commencing with
26Section 17200) of Part 2 of Division 7 of the Business and
27Professions Code.

28(n) The department may use funds from the emergency client
29contingency account pursuant to Section 1546 when needed to
30supplement the operation of the facility or the transfer of clients
31under the control of the temporary manager appointed under this
32section if facility revenues are unavailable or exhausted when
33needed. Pursuant to subdivision (l), the licensee shall be required
34to reimburse the department for any funds used from the emergency
35client contingency account during the period of control of the
36temporary manager and any incurred costs of collection.

37(o) This section does not apply to a residential facility that serves
38six or fewer persons and is also the principal residence of the
39licensee.

P17   1(p) Notwithstanding any other provision of law, the temporary
2manager shall be liable only for damages resulting from gross
3negligence in the operation of the facility or intentional tortious
4acts.

5(q) All governmental immunities otherwise applicable to the
6state shall also apply to the state in the use of a temporary manager
7in the operation of a facility pursuant to this section.

8(r) A licensee shall not be liable for any occurrences during the
9temporary management under this section except to the extent that
10the occurrences are the result of the licensee’s conduct.

11(s) The department may adopt regulations for the administration
12of this section.

13

begin deleteSEC. 2.end delete
14begin insertSEC. 4.end insert  

Section 1546.2 of the Health and Safety Code, as added
15by Section 12 of Chapter 29 of the Statutes of 2014, is amended
16to read:

17

1546.2.  

(a) It is the intent of the Legislature in enacting this
18section to authorize the department to take quick, effective action
19to protect the health and safety of residents of community care
20facilities and to minimize the effects of transfer trauma that
21accompany the abrupt transfer of clients through a system whereby
22the department may apply for a court order appointing a receiver
23to temporarily operate a community care facility. The receivership
24is not intended to punish a licensee or to replace attempts to secure
25cooperative action to protect the clients’ health and safety. The
26receivership is intended to protect the clients in the absence of
27other reasonably available alternatives. The receiver shall assume
28the operation of the facility in order to bring it into compliance
29with law, facilitate a transfer of ownership to a new licensee, or
30ensure the orderly transfer of clients should the facility be required
31to close.

32(b) (1) Whenever circumstances exist indicating that continued
33management of a community care facility by the current licensee
34would present a substantial probability or imminent danger of
35serious physical harm or death to the clients, or the facility is
36closing or intends to terminate operation as a community care
37facility and adequate arrangements for relocation of clients have
38not been made at least 30 days prior to the closing or termination,
39the director may petition the superior court for the county in which
40the community care facility is located for an order appointing a
P18   1receiver to temporarily operate the community care facility in
2 accordance with this section.

3(2) The petition shall allege the facts upon which the action is
4based and shall be supported by an affidavit of the director. A copy
5of the petition and affidavits, together with an order to appear and
6show cause why temporary authority to operate the community
7care facility should not be vested in a receiver pursuant to this
8section, shall be delivered to the licensee, administrator, or a
9responsible person at the facility to the attention of the licensee
10and administrator. The order shall specify a hearing date, which
11shall be not less than 10, nor more than 15, days following delivery
12of the petition and order upon the licensee, except that the court
13may shorten or lengthen the time upon a showing of just cause.

14(c) (1) If the director files a petition pursuant to subdivision (b)
15for appointment of a receiver to operate a community care facility,
16in accordance with Section 564 of the Code of Civil Procedure,
17the director may also petition the court, in accordance with Section
18527 of the Code of Civil Procedure, for an order appointing a
19temporary receiver. A temporary receiver appointed by the court
20pursuant to this subdivision shall serve until the court has made a
21final determination on the petition for appointment of a receiver
22filed pursuant to subdivision (b). A receiver appointed pursuant
23to this subdivision shall have the same powers and duties as a
24receiver would have if appointed pursuant to subdivision (b). Upon
25the director filing a petition for a receiver, the receiver shall
26complete its application for a provisional license to operate a
27community care facility. For purposes of a provisional license
28issued to a receiver, the licensee’s existing fire safety clearance
29shall serve as the fire safety clearance for the receiver’s provisional
30license.

31(2) At the time of the hearing, the department shall advise the
32licensee of the name of the proposed receiver. The receiver shall
33be a certified community care facility administrator or other
34 responsible person or entity, as determined by the court, from a
35list of qualified receivers established by the department, and, if
36need be, with input from providers of residential care and consumer
37representatives. Persons appearing on the list shall have experience
38in the delivery of care services to clients of community care
39facilities, and, if feasible, shall have experience with the operation
40of a community care facility, shall not be the subject of any pending
P19   1actions by the department or any other state agency, and shall not
2have ever been excluded from a department licensed facility nor
3have had a license or certification suspended or revoked by an
4administrative action by the department or any other state agency.
5The receivers shall have sufficient background and experience in
6management and finances to ensure compliance with orders issued
7by the court. The owner, licensee, or administrator shall not be
8appointed as the receiver unless authorized by the court.

9(3) If at the conclusion of the hearing, which may include oral
10testimony and cross-examination at the option of any party, the
11court determines that adequate grounds exist for the appointment
12of a receiver and that there is no other reasonably available remedy
13to protect the clients, the court may issue an order appointing a
14receiver to temporarily operate the community care facility and
15enjoining the licensee from interfering with the receiver in the
16conduct of his or her duties. In these proceedings, the court shall
17make written findings of fact and conclusions of law and shall
18require an appropriate bond to be filed by the receiver and paid
19for by the licensee. The bond shall be in an amount necessary to
20protect the licensee in the event of any failure on the part of the
21receiver to act in a reasonable manner. The bond requirement may
22be waived by the licensee.

23(4) The court may permit the licensee to participate in the
24continued operation of the facility during the pendency of any
25receivership ordered pursuant to this section and shall issue an
26order detailing the nature and scope of participation.

27(5) Failure of the licensee to appear at the hearing on the petition
28shall constitute an admission of all factual allegations contained
29in the petition for purposes of these proceedings only.

30(6) The licensee shall receive notice and a copy of the
31application each time the receiver applies to the court or the
32department for instructions regarding his or her duties under this
33section, when an accounting pursuant to subdivision (i) is
34submitted, and when any other report otherwise required under
35this section is submitted. The licensee shall have an opportunity
36to present objections or otherwise participate in those proceedings.

37(d) A person shall not impede the operation of a receivership
38created under this section. The receiver’s access to, or possession
39of, the property shall not be interfered with during the term of the
40receivership. There shall be an automatic stay for a 60-day period
P20   1subsequent to the appointment of a receiver of any action that
2would interfere with the functioning of the facility, including, but
3not limited to, cancellation of insurance policies executed by the
4licensees, termination of utility services, attachments or setoffs of
5client trust funds and working capital accounts, and repossession
6of equipment in the facility.

7(e) When a receiver is appointed, the licensee may, at the
8discretion of the court, be divested of possession and control of
9the facility in favor of the receiver. If the court divests the licensee
10of possession and control of the facility in favor of the receiver,
11 the department shall immediately issue a provisional license to the
12receiver. Notwithstanding the applicable sections of this code
13governing the revocation of a provisional license, the provisional
14license issued to a receiver shall automatically expire upon the
15termination of the receivership. The receiver shall possess the
16provisional license solely for purposes of carrying out the
17responsibilities authorized by this section and the duties ordered
18by the court. The receiver shall have no right to appeal the
19expiration of the provisional license.

20(f) A receiver appointed pursuant to this section:

21(1) May exercise those powers and shall perform those duties
22ordered by the court, in addition to other duties provided by statute.

23(2) Shall operate the facility in a manner that ensures the safety
24and adequate care for the clients.

25(3) Shall have the same rights to possession of the building in
26which the facility is located, and of all goods and fixtures in the
27building at the time the petition for receivership is filed, as the
28licensee and administrator would have had if the receiver had not
29been appointed.

30(4) May use the funds, building, fixtures, furnishings, and any
31accompanying consumable goods in the provision of care and
32services to clients and to any other persons receiving services from
33the facility at the time the petition for receivership was filed.

34(5) Shall take title to all revenue coming to the facility in the
35name of the receiver who shall use it for the following purposes
36in descending order of priority:

37(A) To pay wages to staff. The receiver shall have full power
38to hire, direct, manage, and discharge employees of the facility,
39subject to any contractual rights they may have. The receiver shall
40pay employees at the same rate of compensation, including
P21   1benefits, that the employees would have received from the licensee
2or wages necessary to provide adequate staff for the protection of
3the clients and compliance with the law.

4(B) To preserve client funds. The receiver shall be entitled to,
5and shall take, possession of all property or assets of clients that
6are in the possession of the licensee or operator of the facility. The
7receiver shall preserve all property, assets, and records of clients
8of which the receiver takes possession.

9(C) To contract for outside services as may be needed for the
10operation of the community care facility. Any contract for outside
11services in excess of five thousand dollars ($5,000) shall be
12 approved by the court.

13(D) To pay commercial creditors of the facility to the extent
14required to operate the facility. Except as provided in subdivision
15(h), the receiver shall honor all leases, mortgages, and secured
16transactions affecting the building in which the facility is located
17and all goods and fixtures in the building of which the receiver
18has taken possession, but only to the extent of payments which,
19in the case of a rental agreement, are for the use of the property
20during the period of receivership, or which, in the case of a
21purchase agreement, come due during the period of receivership.

22(E) To receive a salary, as approved by the court.

23(F) To do all things necessary and proper to maintain and operate
24the facility in accordance with sound fiscal policies. The receiver
25shall take action as is reasonably necessary to protect or conserve
26the assets or property of which the receiver takes possession and
27may use those assets or property only in the performance of the
28powers and duties set out in this section and by order of the court.

29(G) To ask the court for direction in the treatment of debts
30incurred prior to the appointment, if the licensee’s debts appear
31extraordinary, of questionable validity, or unrelated to the normal
32and expected maintenance and operation of the facility, or if
33payment of the debts will interfere with the purposes of
34receivership.

35(g) (1) A person who is served with notice of an order of the
36court appointing a receiver and of the receiver’s name and address
37shall be liable to pay the receiver, rather than the licensee, for any
38goods or services provided by the community care facility after
39the date of the order. The receiver shall give a receipt for each
40payment and shall keep a copy of each receipt on file. The receiver
P22   1shall deposit amounts received in a special account and shall use
2this account for all disbursements. Payment to the receiver pursuant
3to this subdivision shall discharge the obligation to the extent of
4the payment and shall not thereafter be the basis of a claim by the
5licensee or any other person. A client shall not be evicted nor may
6any contract or rights be forfeited or impaired, nor may any
7forfeiture be effected or liability increased, by reason of an
8omission to pay the licensee, operator, or other person a sum paid
9to the receiver pursuant to this subdivision.

10(2) This section shall not be construed to suspend, during the
11temporary management by the receiver, any obligation of the
12licensee for payment of local, state, or federal taxes. A licensee
13shall not be held liable for acts or omissions of the receiver during
14the term of the temporary management.

15(3) Upon petition of the receiver, the court may order immediate
16payment to the receiver for past services that have been rendered
17and billed, and the court may also order a sum not to exceed one
18month’s advance payment to the receiver of any sums that may
19become payable under the Medi-Cal program.

20(h) (1) A receiver shall not be required to honor a lease,
21mortgage, or secured transaction entered into by the licensee of
22the facility and another party if the court finds that the agreement
23between the parties was entered into for a collusive, fraudulent
24purpose or that the agreement is unrelated to the operation of the
25facility.

26(2) A lease, mortgage, or secured transaction or an agreement
27unrelated to the operation of the facility that the receiver is
28permitted to dishonor pursuant to this subdivision shall only be
29subject to nonpayment by the receiver for the duration of the
30receivership, and the dishonoring of the lease, mortgage, security
31interest, or other agreement, to this extent, by the receiver shall
32not relieve the owner or operator of the facility from any liability
33for the full amount due under the lease, mortgage, security interest,
34or other agreement.

35(3) If the receiver is in possession of real estate or goods subject
36to a lease, mortgage, or security interest that the receiver is
37permitted to avoid pursuant to paragraph (1), and if the real estate
38or goods are necessary for the continued operation of the facility,
39the receiver may apply to the court to set a reasonable rent, price,
40or rate of interest to be paid by the receiver during the duration of
P23   1the receivership. The court shall hold a hearing on this application
2within 15 days. The receiver shall send notice of the application
3to any known owner of the property involved at least 10 days prior
4to the hearing.

5(4) Payment by the receiver of the amount determined by the
6court to be reasonable is a defense to any action against the receiver
7for payment or possession of the goods or real estate, subject to
8the lease or mortgage, which is brought by any person who received
9the notice required by this subdivision. However, payment by the
10receiver of the amount determined by the court to be reasonable
11shall not relieve the owner or operator of the facility from any
12liability for the difference between the amount paid by the receiver
13and the amount due under the original lease, mortgage, or security
14interest.

15(i) A monthly accounting shall be made by the receiver to the
16department of all moneys received and expended by the receiver
17on or before the 15th day of the following month or as ordered by
18the court, and the remainder of income over expenses for that
19month shall be returned to the licensee. A copy of the accounting
20shall be provided to the licensee. The licensee or owner of the
21community care facility may petition the court for a determination
22as to the reasonableness of any expenditure made pursuant to
23paragraph (5) of subdivision (f).

24(j) (1) The receiver shall be appointed for an initial period of
25not more than three months. The initial three-month period may
26be extended for additional periods not exceeding three months, as
27determined by the court pursuant to this section. At the end of one
28month, the receiver shall report to the court on its assessment of
29the probability that the community care facility will meet state
30standards for operation by the end of the initial three-month period
31and will continue to maintain compliance with those standards
32after termination of the receiver’s management. If it appears that
33the facility cannot be brought into compliance with state standards
34within the initial three-month period, the court shall take
35appropriate action as follows:

36(A) Extend the receiver’s management for an additional three
37months if there is a substantial likelihood that the facility will meet
38state standards within that period and will maintain compliance
39with the standards after termination of the receiver’s management.
40The receiver shall report to the court in writing upon the facility’s
P24   1progress at the end of six weeks of any extension ordered pursuant
2to this paragraph.

3(B) Order the director to revoke or temporarily suspend, or both,
4the license pursuant to Article 5 (commencing with Section 1550)
5and extend the receiver’s management for the period necessary to
6transfer clients in accordance with the transfer plan, but for not
7more than three months from the date of initial appointment of a
8receiver, or 14 days, whichever is greater. An extension of an
9additional three months may be granted if deemed necessary by
10the court.

11(2) If it appears at the end of six weeks of an extension ordered
12pursuant to subparagraph (A) of paragraph (1) that the facility
13cannot be brought into compliance with state standards for
14operation or that it will not maintain compliance with those
15standards after the receiver’s management is terminated, the court
16shall take appropriate action as specified in subparagraph (B) of
17paragraph (1).

18(3) In evaluating the probability that a community care facility
19will maintain compliance with state standards of operation after
20the termination of receiver management ordered by the court, the
21court shall consider at least the following factors:

22(A) The duration, frequency, and severity of past violations in
23the facility.

24(B) History of compliance in other care facilities operated by
25the proposed licensee.

26(C) Efforts by the licensee to prevent and correct past violations.

27(D) The financial ability of the licensee to operate in compliance
28with state standards.

29(E) The recommendations and reports of the receiver.

30(4) Management of a community care facility operated by a
31receiver pursuant to this section shall not be returned to the
32licensee, to any person related to the licensee, or to any person
33who served as a member of the facility’s staff or who was
34employed by the licensee prior to the appointment of the receiver
35unless both of the following conditions are met:

36(A) The department believes that it would be in the best interests
37of the clients of the facility, requests that the court return the
38operation of the facility to the former licensee, and provides clear
39and convincing evidence to the court that it is in the best interests
40of the facility’s clients to take that action.

P25   1(B) The court finds that the licensee has fully cooperated with
2the department in the appointment and ongoing activities of a
3receiver appointed pursuant to this section, and, if applicable, any
4temporary manager appointed pursuant to Section 1546.1.

5(5) The owner of the facility may at any time sell, lease, or close
6the facility, subject to the following provisions:

7(A) If the owner closes the facility, or the sale or lease results
8in the closure of the facility, the court shall determine if a transfer
9plan is necessary. If the court so determines, the court shall adopt
10and implement a transfer plan consistent with the provisions of
11Section 1556.

12(B) If the licensee proposes to sell or lease the facility and the
13facility will continue to operate as a community care facility, the
14court and the department shall reevaluate any proposed transfer
15plan. If the court and the department determine that the sale or
16lease of the facility will result in compliance with licensing
17standards, the transfer plan and the receivership shall, subject to
18those conditions that the court may impose and enforce, be
19terminated upon the effective date of the sale or lease.

20(k) (1) The salary of the receiver shall be set by the court
21commensurate with community care facility industry standards,
22giving due consideration to the difficulty of the duties undertaken,
23and shall be paid from the revenue coming to the facility. If the
24revenue is insufficient to pay the salary in addition to other
25expenses of operating the facility, the receiver’s salary shall be
26paid from the emergency client contingency account as provided
27in Section 1546. State advances of funds in excess of five thousand
28dollars ($5,000) shall be approved by the director. Total advances
29for encumbrances and expenditures shall not exceed the sum of
30forty-nine thousand nine hundred ninety-nine dollars ($49,999)
31unless approved by the director in writing.

32(2) To the extent state funds are advanced for the salary of the
33receiver or for other expenses in connection with the receivership,
34as limited by subdivision (g), the state shall be reimbursed from
35the revenues accruing to the facility or to the licensee or an entity
36related to the licensee. Any reimbursement received by the state
37shall be redeposited in the account from which the state funds were
38advanced. If the revenues are insufficient to reimburse the state,
39the unreimbursed amount shall constitute grounds for a monetary
40judgment in civil court and a subsequent lien upon the assets of
P26   1the facility or the proceeds from the sale thereof. Pursuant to
2Chapter 2 (commencing with Section 697.510) of Division 2 of
3Title 9 of Part 2 of the Code of Civil Procedure, a lien against the
4personal assets of the facility or an entity related to the licensee
5 based on the monetary judgment obtained shall be filed with the
6Secretary of State on the forms required for a notice of judgment
7lien. A lien against the real property of the facility or an entity
8related to the licensee based on the monetary judgment obtained
9shall be recorded with the county recorder of the county where the
10facility of the licensee is located or where the real property of the
11entity related to the licensee is located. The lien shall not attach
12to the interests of a lessor, unless the lessor is operating the facility.
13The authority to place a lien against the personal and real property
14of the licensee for the reimbursement of any state funds expended
15pursuant to this section shall be given judgment creditor priority.

16(3) For purposes of this subdivision, “entity related to the
17licensee” means an entity, other than a natural person, of which
18the licensee is a subsidiary or an entity in which any person who
19was obligated to disclose information under Section 1520 possesses
20an interest that would also require disclosure pursuant to Section
211520.

22(l) (1) This section does not impair the right of the owner of a
23community care facility to dispose of his or her property interests
24in the facility, but any facility operated by a receiver pursuant to
25this section shall remain subject to that administration until
26terminated by the court. The termination shall be promptly
27effectuated, provided that the interests of the clients have been
28safeguarded as determined by the court.

29(2) This section does not limit the power of the court to appoint
30a receiver under any other applicable provision of law or to order
31any other remedy available under law.

32(m) (1) Notwithstanding any other provision of law, the receiver
33shall be liable only for damages resulting from gross negligence
34in the operation of the facility or intentional tortious acts.

35(2) All governmental immunities otherwise applicable to the
36State of California shall also apply in the use of a receiver in the
37operationbegin delete ifend deletebegin insert ofend insert a facility pursuant to this section.

38(3) The licensee shall not be liable for any occurrences during
39the receivership except to the extent that the occurrences are the
40result of the licensee’s conduct.

P27   1(n) The department may adopt regulations for the administration
2of this section. This section does not impair the authority of the
3department to temporarily suspend licenses under Section 1550.5
4or to reach a voluntary agreement with the licensee for alternate
5management of a community care facility including the use of a
6temporary manager under Section 1546.1. This section does not
7authorize the department to interfere in a labor dispute.

8(o) This section does not apply to a residential facility that serves
9six or fewer persons and is also the principal residence of the
10licensee.

11(p) This section does not apply to a licensee that has obtained
12a certificate of authority to offer continuing care contracts, as
13defined in paragraph (8) of subdivision (c) of Section 1771.

14

begin deleteSEC. 3.end delete
15begin insertSEC. 5.end insert  

Section 1569.481 of the Health and Safety Code, as
16added by Section 24 of Chapter 29 of the Statutes of 2014, is
17amended to read:

18

1569.481.  

(a) (1) It is the intent of the Legislature in enacting
19this section to authorize the department to take quick, effective
20action to protect the health and safety of residents of residential
21care facilities for the elderly and to minimize the effects of transfer
22trauma that accompany the abrupt transfer of residents by
23appointing a temporary manager to assume the operation of a
24facility that is found to be in a condition in which continued
25operation by the licensee or his or her representative presents a
26substantial probability of imminent danger of serious physical
27harm or death to the residents.

28(2) A temporary manager appointed pursuant to this section
29shall assume the operation of the facility in order to bring it into
30compliance with the law, facilitate a transfer of ownership to a
31new licensee, or ensure the orderly transfer of residents should the
32facility be required to close. Upon a final decision and order of
33revocation of the license, issuance of a temporary suspension, or
34a forfeiture by operation of law, the department shall immediately
35issue a provisional license to the appointed temporary manager.
36Notwithstanding the applicable sections of this code governing
37the revocation of a provisional license, the provisional license
38issued to a temporary manager shall automatically expire upon the
39termination of the temporary manager. The temporary manager
40shall possess the provisional license solely for purposes of carrying
P28   1out the responsibilities authorized by this section and the duties
2set forth in the written agreement between the department and the
3temporary manager. The temporary manager shall have no right
4to appeal the expiration of the provisional license.

5(b) For purposes of this section, “temporary manager” means
6the person, corporation, or other entity appointed temporarily by
7the department as a substitute facility licensee or administrator
8with authority to hire, terminate, reassign staff, obligate facility
9funds, alter facility procedures, and manage the facility to correct
10deficiencies identified in the facility’s operation. The temporary
11manager shall have the final authority to direct the care and
12supervision activities of any person associated with the facility,
13including superseding the authority of the licensee and the
14administrator.

15(c) The director, in order to protect the residents of the facility
16from physical or mental abuse, abandonment, or any other
17substantial threat to health or safety, may appoint a temporary
18manager when any of the following circumstances exist:

19(1) The director determines that it is necessary to temporarily
20suspend the license of a residential care facility for the elderly
21pursuant to Section 1569.50 and the immediate relocation of the
22residents is not feasible based on transfer trauma, lack of available
23alternative placements, or other emergency considerations for the
24health and safety of the residents.

25(2) The licensee is unwilling or unable to comply with the
26requirements of Section 1569.525 or the requirements of Section
271569.682 regarding the safe and orderly relocation of residents
28when ordered to do so by the department or when otherwise
29required by law.

30(3) The licensee has opted to secure a temporary manager
31pursuant to Section 1569.525.

32(d) (1) Upon appointment, the temporary manager shall
33complete its application for a license to operate a residential care
34 facility for the elderly and take all necessary steps and make best
35efforts to eliminate any substantial threat to the health and safety
36to residents or complete the transfer of residents to alternative
37placements pursuant to Section 1569.525 or 1569.682. For purposes
38of a provisional license issued to a temporary manager, the
39licensee’s existing fire safety clearance shall serve as the fire safety
40clearance for the temporary manager’s provisional license.

P29   1(2) A person shall not impede the operation of a temporary
2manager. The temporary manager’s access to, or possession of,
3the property shall not be interfered with during the term of the
4temporary manager appointment. There shall be an automatic stay
5for a 60-day period subsequent to the appointment of a temporary
6manager of any action that would interfere with the functioning
7of the facility, including, but not limited to, termination of utility
8services, attachments, or setoffs of resident trust funds, and
9repossession of equipment in the facility.

10(e) (1) The appointment of a temporary manager shall be
11immediately effective and shall continue for a period not to exceed
1260 days unless otherwise extended in accordance with paragraph
13(2) of subdivision (h) at the discretion of the department or as
14permitted by paragraph (2) of subdivision (d) of Section 1569.525,
15or unless otherwise terminated earlier by any of the following
16events:

17(A) The temporary manager notifies the department, and the
18department verifies, that the facility meets state and, if applicable,
19federal standards for operation, and will be able to continue to
20maintain compliance with those standards after the termination of
21the appointment of the temporary manager.

22(B) The department approves a new temporary manager.

23(C) A new operator is licensed.

24(D) The department closes the facility.

25(E) A hearing or court order ends the temporary manager
26appointment, including the appointment of a receiver under Section
271569.482.

28(F) The appointment is terminated by the department or the
29temporary manager.

30(2) The appointment of a temporary manager shall authorize
31the temporary manager to act pursuant to this section. The
32appointment shall be made pursuant to a written agreement between
33the temporary manager and the department that outlines the
34circumstances under which the temporary manager may expend
35funds. The department shall provide the licensee and administrator
36with a copy of the accusation to appoint a temporary manager at
37the time of appointment. The accusation shall notify the licensee
38of the licensee’s right to petition the Office of Administrative
39Hearings for a hearing to contest the appointment of the temporary
40manager as described in subdivision (f) and shall provide the
P30   1licensee with a form and appropriate information for the licensee’s
2use in requesting a hearing.

3(3) The director may rescind the appointment of a temporary
4manager and appoint a new temporary manager at any time that
5the director determines the temporary manager is not adhering to
6the conditions of the appointment.

7(f) (1) The licensee of a residential care facility for the elderly
8may contest the appointment of the temporary manager by filing
9a petition for an order to terminate the appointment of the
10temporary manager with the Office of Administrative Hearings
11within 15 days from the date of mailing of the accusation to appoint
12a temporary manager under subdivision (e). On the same day as
13the petition is filed with the Office of Administrative Hearings,
14the licensee shall serve a copy of the petition to the office of the
15director.

16(2) Upon receipt of a petition under paragraph (1), the Office
17of Administrative Hearings shall set a hearing date and time within
1810 business days of the receipt of the petition. The office shall
19promptly notify the licensee and the department of the date, time,
20and place of the hearing. The office shall assign the case to an
21administrative law judge. At the hearing, relevant evidence may
22be presented pursuant to Section 11513 of the Government Code.
23The administrative law judge shall issue a written decision on the
24petition within 10 business days of the conclusion of the hearing.
25The 10-day time period for holding the hearing and for rendering
26a decision may be extended by the written agreement of the parties.

27(3) The administrative law judge shall uphold the appointment
28of the temporary manager if the department proves, by a
29preponderance of the evidence, that the circumstances specified
30in subdivision (c) applied to the facility at the time of the
31appointment. The administrative law judge shall order the
32 termination of the temporary manager if the burden of proof is not
33satisfied.

34(4) The decision of the administrative law judge is subject to
35judicial review as provided in Section 1094.5 of the Code of Civil
36Procedure by the superior court of the county where the facility is
37located. This review may be requested by the licensee of the facility
38or the department by filing a petition seeking relief from the order.
39The petition may also request the issuance of temporary injunctive
40relief pending the decision on the petition. The superior court shall
P31   1hold a hearing within 10 business days of the filing of the petition
2and shall issue a decision on the petition within 10 days of the
3hearing. The department may be represented by legal counsel
4within the department for purposes of court proceedings authorized
5under this section.

6(g) If the licensee does not protest the appointment or does not
7prevail at either the administrative hearing under paragraph (2) of
8subdivision (f) or the superior court hearing under paragraph (4)
9of subdivision (f), the temporary manager shall continue in
10accordance with subdivision (e).

11(h) (1) If the licensee petitions the Office of Administrative
12Hearings pursuant to subdivision (f), the appointment of the
13temporary manager by the director pursuant to this section shall
14continue until it is terminated by the administrative law judge or
15by the superior court, or it shall continue until the conditions of
16subdivision (e) are satisfied, whichever is earlier.

17(2) At any time during the appointment of the temporary
18manager, the director may request an extension of the appointment
19by filing a petition for hearing with the Office of Administrative
20Hearings and serving a copy of the petition on the licensee. The
21office shall proceed as specified in paragraph (2) of subdivision
22(f). The administrative law judge may extend the appointment of
23the temporary manager an additional 60 days upon a showing by
24the department that the conditions specified in subdivision (c)
25continue to exist.

26(3) The licensee or the department may request review of the
27administrative law judge’s decision on the extension as provided
28in paragraph (4) of subdivision (f).

29(i) The temporary manager appointed pursuant to this section
30shall meet the following qualifications:

31(1) Be qualified to oversee correction of deficiencies in a
32residential care facility for the elderly on the basis of experience
33and education.

34(2) Not be the subject of any pending actions by the department
35or any other state agency nor have ever been excluded from a
36department-licensed facility or had a license or certification
37suspended or revoked by an administrative action by the
38department or any other state agency.

P32   1(3) Have no financial ownership interest in the facility and have
2no member of his or her immediate family who has a financial
3ownership interest in the facility.

4(4) Not currently serve, or within the past two years have served,
5as a member of the staff of the facility.

6(j) Payment of the costs of the temporary manager shall comply
7with the following requirements:

8(1) Upon agreement with the licensee, the costs of the temporary
9manager and any other expenses in connection with the temporary
10management shall be paid directly by the facility while the
11temporary manager is assigned to that facility. Failure of the
12licensee to agree to the payment of those costs may result in the
13payment of the costs by the department and subsequent required
14reimbursement of the department by the licensee pursuant to this
15section.

16(2) Direct costs of the temporary manager shall be equivalent
17to the sum of the following:

18(A) The prevailing fee paid by licensees for positions of the
19same type in the facility’s geographic area.

20(B) Additional costs that reasonably would have been incurred
21by the licensee if the licensee and the temporary manager had been
22in an employment relationship.

23(C) Any other reasonable costs incurred by the temporary
24manager in furnishing services pursuant to this section.

25(3) Direct costs may exceed the amount specified in paragraph
26(2) if the department is otherwise unable to find a qualified
27temporary manager.

28(k) (1) The responsibilities of the temporary manager may
29include, but are not limited to, the following:

30(A) Paying wages to staff. The temporary manager shall have
31the full power to hire, direct, manage, and discharge employees
32of the facility, subject to any contractual rights they may have.
33The temporary manager shall pay employees at the same rate of
34compensation, including benefits, that the employees would have
35received from the licensee or wages necessary to provide adequate
36staff for the protection of clients and compliance with the law.

37(B) Preserving resident funds. The temporary manager shall be
38entitled to, and shall take possession of, all property or assets of
39residents that are in the possession of the licensee or administrator
40of the facility. The temporary manager shall preserve all property,
P33   1assets, and records of residents of which the temporary manager
2takes possession.

3(C) Contracting for outside services as may be needed for the
4operation of the facility. Any contract for outside services in excess
5of five thousand dollars ($5,000) shall be approved by the director.

6(D) Paying commercial creditors of the facility to the extent
7required to operate the facility. The temporary manager shall honor
8all leases, mortgages, and secured transactions affecting the
9building in which the facility is located and all goods and fixtures
10in the building, but only to the extent of payments that, in the case
11of a rental agreement, are for the use of the property during the
12period of the temporary management, or that, in the case of a
13purchase agreement, come due during the period of the temporary
14management.

15(E) Performing all acts that are necessary and proper to maintain
16and operate the facility in accordance with sound fiscal policies.
17The temporary manager shall take action as is reasonably necessary
18to protect or conserve the assets or property of which the temporary
19manager takes possession and may use those assets or property
20only in the performance of the powers and duties set forth in this
21section.

22(2) Expenditures by the temporary manager in excess of five
23thousand dollars ($5,000) shall be approved by the director. Total
24encumbrances and expenditures by the temporary manager for the
25duration of the temporary management shall not exceed the sum
26of forty-nine thousand nine hundred ninety-nine dollars ($49,999)
27unless approved by the director in writing.

28(3) The temporary manager shall not make capital improvements
29to the facility in excess of five thousand dollars ($5,000) without
30the approval of the director.

31(l) (1) To the extent department funds are advanced for the
32costs of the temporary manager or for other expenses in connection
33with the temporary management, the department shall be
34reimbursed from the revenues accruing to the facility or to the
35licensee or an entity related to the licensee. Any reimbursement
36received by the department shall be redeposited in the account
37from which the department funds were advanced. If the revenues
38are insufficient to reimburse the department, the unreimbursed
39amount shall constitute grounds for a monetary judgment in civil
40court and a subsequent lien upon the assets of the facility or the
P34   1proceeds from the sale thereof. Pursuant to Chapter 2 (commencing
2with Section 697.510) of Division 2 of Title 9 of Part 2 of the Code
3of Civil Procedure, a lien against the personal assets of the facility
4or an entity related to the licensee based on the monetary judgment
5obtained shall be filed with the Secretary of State on the forms
6required for a notice of judgment lien. A lien against the real
7property of the facility or an entity related to the licensee based
8on the monetary judgment obtained shall be recorded with the
9county recorder of the county where the facility of the licensee is
10located or where the real property of the entity related to the
11licensee is located. The lien shall not attach to the interests of a
12lessor, unless the lessor is operating the facility. The authority to
13place a lien against the personal and real property of the licensee
14for the reimbursement of any state funds expended pursuant to this
15section shall be given judgment creditor priority.

16(2) For purposes of this section, “entity related to the licensee”
17means an entity, other than a natural person, of which the licensee
18is a subsidiary or an entity in which a person who was obligated
19to disclose information under Section 1569.15 possesses an interest
20that would also require disclosure pursuant to Section 1569.15.

21(m) Appointment of a temporary manager under this section
22does not relieve the licensee of any responsibility for the care and
23supervision of residents under this chapter. The licensee, even if
24the license is deemed surrendered or the facility abandoned, shall
25be required to reimburse the department for all costs associated
26with operation of the facility during the period the temporary
27manager is in place that are not accounted for by using facility
28revenues or for the relocation of residents handled by the
29 department if the licensee fails to comply with the relocation
30requirements of Section 1569.525 or 1569.682 when required by
31the department to do so. If the licensee fails to reimburse the
32department under this section, then the department, along with
33using its own remedies available under this chapter, may request
34that the Attorney General’s office, the city attorney’s office, or the
35local district attorney’s office seek any available criminal, civil,
36or administrative remedy, including, but not limited to, injunctive
37relief, restitution, and damages in the same manner as provided
38for in Chapter 5 (commencing with Section 17200) of Part 2 of
39Division 7 of the Business and Professions Code.

P35   1(n) The department may use funds from the emergency resident
2contingency account pursuant to Section 1569.48 when needed to
3supplement the operation of the facility or the transfer of residents
4under the control of the temporary manager appointed under this
5 section if facility revenues are unavailable or exhausted when
6needed. Pursuant to subdivision (l), the licensee shall be required
7to reimburse the department for any funds used from the emergency
8resident contingency account during the period of control of the
9temporary manager and any incurred costs of collection.

10(o) This section does not apply to a residential care facility for
11the elderly that serves six or fewer persons and is also the principal
12residence of the licensee.

13(p) Notwithstanding any other provision of law, the temporary
14manager shall be liable only for damages resulting from gross
15negligence in the operation of the facility or intentional tortious
16acts.

17(q) All governmental immunities otherwise applicable to the
18state shall also apply to the state in the use of a temporary manager
19in the operation of a facility pursuant to this section.

20(r) A licensee shall not be liable for any occurrences during the
21temporary management under this section except to the extent that
22the occurrences are the result of the licensee’s conduct.

23(s) The department may adopt regulations for the administration
24of this section.

25

begin deleteSEC. 4.end delete
26begin insertSEC. 6.end insert  

Section 1569.482 of the Health and Safety Code, as
27added by Section 25 of Chapter 29 of the Statutes of 2014, is
28amended to read:

29

1569.482.  

(a) It is the intent of the Legislature in enacting this
30section to authorize the department to take quick, effective action
31to protect the health and safety of residents of residential care
32facilities for the elderly and to minimize the effects of transfer
33trauma that accompany the abrupt transfer of residents through a
34system whereby the department may apply for a court order
35appointing a receiver to temporarily operate a residential care
36facility for the elderly. The receivership is not intended to punish
37a licensee or to replace attempts to secure cooperative action to
38protect the residents’ health and safety. The receivership is intended
39to protect the residents in the absence of other reasonably available
40alternatives. The receiver shall assume the operation of the facility
P36   1in order to bring it into compliance with law, facilitate a transfer
2of ownership to a new licensee, or ensure the orderly transfer of
3residents should the facility be required to close.

4(b) (1) Whenever circumstances exist indicating that continued
5management of a residential care facility by the current licensee
6would present a substantial probability or imminent danger of
7serious physical harm or death to the residents, or the facility is
8closing or intends to terminate operation as a residential care
9facility for the elderly and adequate arrangements for relocation
10of residents have not been made at least 30 days prior to the closing
11or termination, the director may petition the superior court for the
12county in which the facility is located for an order appointing a
13receiver to temporarily operate the facility in accordance with this
14section.

15(2) The petition shall allege the facts upon which the action is
16based and shall be supported by an affidavit of the director. A copy
17of the petition and affidavits, together with an order to appear and
18show cause why temporary authority to operate the residential care
19facility for the elderly should not be vested in a receiver pursuant
20to this section, shall be delivered to the licensee, administrator, or
21a responsible person at the facility to the attention of the licensee
22and administrator. The order shall specify a hearing date, which
23shall be not less than 10, nor more than 15, days following delivery
24of the petition and order upon the licensee, except that the court
25may shorten or lengthen the time upon a showing of just cause.

26(c) (1) If the director files a petition pursuant to subdivision (b)
27for appointment of a receiver to operate a residential care facility
28for the elderly, in accordance with Section 564 of the Code of Civil
29Procedure, the director may also petition the court, in accordance
30with Section 527 of the Code of Civil Procedure, for an order
31appointing a temporary receiver. A temporary receiver appointed
32by the court pursuant to this subdivision shall serve until the court
33has made a final determination on the petition for appointment of
34a receiver filed pursuant to subdivision (b). A receiver appointed
35pursuant to this subdivision shall have the same powers and duties
36as a receiver would have if appointed pursuant to subdivision (b).
37Upon the director filing a petition for a receiver, the receiver shall
38complete its application for a provisional license to operate a
39residential care facility for the elderly. For purposes of a
40provisional license issued to a receiver, the licensee’s existing fire
P37   1safety clearance shall serve as the fire safety clearance for the
2receiver’s provisional license.

3(2) At the time of the hearing, the department shall advise the
4licensee of the name of the proposed receiver. The receiver shall
5be a certified residential care facility for the elderly administrator
6or other responsible person or entity, as determined by the court,
7from a list of qualified receivers established by the department,
8and, if need be, with input from providers of residential care and
9consumer representatives. Persons appearing on the list shall have
10experience in the delivery of care services to clients of community
11care facilities, and, if feasible, shall have experience with the
12operation of a residential care facility for the elderly, shall not be
13the subject of any pending actions by the department or any other
14state agency, and shall not have ever been excluded from a
15department licensed facility nor have had a license or certification
16suspended or revoked by an administrative action by the
17department or any other state agency. The receivers shall have
18sufficient background and experience in management and finances
19to ensure compliance with orders issued by the court. The owner,
20 licensee, or administrator shall not be appointed as the receiver
21unless authorized by the court.

22(3) If at the conclusion of the hearing, which may include oral
23testimony and cross-examination at the option of any party, the
24court determines that adequate grounds exist for the appointment
25of a receiver and that there is no other reasonably available remedy
26to protect the residents, the court may issue an order appointing a
27receiver to temporarily operate the residential care facility for the
28elderly and enjoining the licensee from interfering with the receiver
29in the conduct of his or her duties. In these proceedings, the court
30shall make written findings of fact and conclusions of law and
31shall require an appropriate bond to be filed by the receiver and
32paid for by the licensee. The bond shall be in an amount necessary
33to protect the licensee in the event of any failure on the part of the
34receiver to act in a reasonable manner. The bond requirement may
35be waived by the licensee.

36(4) The court may permit the licensee to participate in the
37continued operation of the facility during the pendency of any
38receivership ordered pursuant to this section and shall issue an
39order detailing the nature and scope of participation.

P38   1(5) Failure of the licensee to appear at the hearing on the petition
2shall constitute an admission of all factual allegations contained
3in the petition for purposes of these proceedings only.

4(6) The licensee shall receive notice and a copy of the
5application each time the receiver applies to the court or the
6department for instructions regarding his or her duties under this
7section, when an accounting pursuant to subdivision (i) is
8submitted, and when any other report otherwise required under
9this section is submitted. The licensee shall have an opportunity
10to present objections or otherwise participate in those proceedings.

11(d) A person shall not impede the operation of a receivership
12created under this section. The receiver’s access to, or possession
13of, the property shall not be interfered with during the term of the
14receivership. There shall be an automatic stay for a 60-day period
15subsequent to the appointment of a receiver of any action that
16would interfere with the functioning of the facility, including, but
17not limited to, cancellation of insurance policies executed by the
18licensees, termination of utility services, attachments, or setoffs
19of resident trust funds and working capital accounts and
20repossession of equipment in the facility.

21(e) When a receiver is appointed, the licensee may, at the
22discretion of the court, be divested of possession and control of
23the facility in favor of the receiver. If the court divests the licensee
24of possession and control of the facility in favor of the receiver,
25the department shall immediately issue a provisional license to the
26receiver. Notwithstanding the applicable sections of this code
27governing the revocation of a provisional license, the provisional
28license issued to a receiver shall automatically expire upon the
29termination of the receivership. The receiver shall possess the
30provisional license solely for purposes of carrying out the
31responsibilities authorized by this section and the duties ordered
32by the court. The receiver shall have no right to appeal the
33expiration of the provisional license.

34(f) A receiver appointed pursuant to this section:

35(1) May exercise those powers and shall perform those duties
36ordered by the court, in addition to other duties provided by statute.

37(2) Shall operate the facility in a manner that ensures the safety
38and adequate care for the residents.

39(3) Shall have the same rights to possession of the building in
40which the facility is located, and of all goods and fixtures in the
P39   1building at the time the petition for receivership is filed, as the
2licensee and administrator would have had if the receiver had not
3been appointed.

4(4) May use the funds, building, fixtures, furnishings, and any
5accompanying consumable goods in the provision of care and
6services to residents and to any other persons receiving services
7from the facility at the time the petition for receivership was filed.

8(5) Shall take title to all revenue coming to the facility in the
9name of the receiver who shall use it for the following purposes
10in descending order of priority:

11(A) To pay wages to staff. The receiver shall have full power
12to hire, direct, manage, and discharge employees of the facility,
13subject to any contractual rights they may have. The receiver shall
14pay employees at the same rate of compensation, including
15benefits, that the employees would have received from the licensee
16or wages necessary to provide adequate staff for the protection of
17the clients and compliance with the law.

18(B) To preserve resident funds. The receiver shall be entitled
19to, and shall take, possession of all property or assets of residents
20that are in the possession of the licensee or operator of the facility.
21The receiver shall preserve all property, assets, and records of
22residents of which the receiver takes possession.

23(C) To contract for outside services as may be needed for the
24operation of the residential care facility for the elderly. Any
25contract for outside services in excess of five thousand dollars
26($5,000) shall be approved by the court.

27(D) To pay commercial creditors of the facility to the extent
28required to operate the facility. Except as provided in subdivision
29(h), the receiver shall honor all leases, mortgages, and secured
30transactions affecting the building in which the facility is located
31and all goods and fixtures in the building of which the receiver
32has taken possession, but only to the extent of payments which,
33in the case of a rental agreement, are for the use of the property
34during the period of receivership, or which, in the case of a
35purchase agreement, come due during the period of receivership.

36(E) To receive a salary, as approved by the court.

37(F) To do all things necessary and proper to maintain and operate
38the facility in accordance with sound fiscal policies. The receiver
39shall take action as is reasonably necessary to protect or conserve
40the assets or property of which the receiver takes possession and
P40   1may use those assets or property only in the performance of the
2powers and duties set out in this section and by order of the court.

3(G) To ask the court for direction in the treatment of debts
4incurred prior to the appointment, if the licensee’s debts appear
5extraordinary, of questionable validity, or unrelated to the normal
6and expected maintenance and operation of the facility, or if
7payment of the debts will interfere with the purposes of
8receivership.

9(g) (1) A person who is served with notice of an order of the
10court appointing a receiver and of the receiver’s name and address
11shall be liable to pay the receiver, rather than the licensee, for any
12goods or services provided by the residential care facility for the
13elderly after the date of the order. The receiver shall give a receipt
14for each payment and shall keep a copy of each receipt on file.
15The receiver shall deposit amounts received in a special account
16and shall use this account for all disbursements. Payment to the
17receiver pursuant to this subdivision shall discharge the obligation
18to the extent of the payment and shall not thereafter be the basis
19of a claim by the licensee or any other person. A resident shall not
20be evicted nor may any contract or rights be forfeited or impaired,
21nor may any forfeiture be effected or liability increased, by reason
22of an omission to pay the licensee, operator, or other person a sum
23paid to the receiver pursuant to this subdivision.

24(2) This section shall not be construed to suspend, during the
25temporary management by the receiver, any obligation of the
26licensee for payment of local, state, or federal taxes. A licensee
27shall not be held liable for acts or omissions of the receiver during
28the term of the temporary management.

29(3) Upon petition of the receiver, the court may order immediate
30payment to the receiver for past services that have been rendered
31and billed, and the court may also order a sum not to exceed one
32month’s advance payment to the receiver of any sums that may
33become payable under the Medi-Cal program.

34(h) (1) A receiver shall not be required to honor a lease,
35mortgage, or secured transaction entered into by the licensee of
36the facility and another party if the court finds that the agreement
37between the parties was entered into for a collusive, fraudulent
38purpose or that the agreement is unrelated to the operation of the
39 facility.

P41   1(2) A lease, mortgage, or secured transaction or an agreement
2unrelated to the operation of the facility that the receiver is
3permitted to dishonor pursuant to this subdivision shall only be
4subject to nonpayment by the receiver for the duration of the
5receivership, and the dishonoring of the lease, mortgage, security
6interest, or other agreement, to this extent, by the receiver shall
7not relieve the owner or operator of the facility from any liability
8for the full amount due under the lease, mortgage, security interest,
9or other agreement.

10(3) If the receiver is in possession of real estate or goods subject
11to a lease, mortgage, or security interest that the receiver is
12permitted to avoid pursuant to paragraph (1), and if the real estate
13or goods are necessary for the continued operation of the facility,
14the receiver may apply to the court to set a reasonable rent, price,
15or rate of interest to be paid by the receiver during the duration of
16the receivership. The court shall hold a hearing on this application
17within 15 days. The receiver shall send notice of the application
18to any known owner of the property involved at least 10 days prior
19to the hearing.

20(4) Payment by the receiver of the amount determined by the
21court to be reasonable is a defense to any action against the receiver
22for payment or possession of the goods or real estate, subject to
23the lease or mortgage, which is brought by any person who received
24the notice required by this subdivision. However, payment by the
25receiver of the amount determined by the court to be reasonable
26shall not relieve the owner or operator of the facility from any
27liability for the difference between the amount paid by the receiver
28and the amount due under the original lease, mortgage, or security
29interest.

30(i) A monthly accounting shall be made by the receiver to the
31department of all moneys received and expended by the receiver
32on or before the 15th day of the following month or as ordered by
33the court, and the remainder of income over expenses for that
34month shall be returned to the licensee. A copy of the accounting
35shall be provided to the licensee. The licensee or owner of the
36residential care facility for the elderly may petition the court for
37a determination as to the reasonableness of any expenditure made
38pursuant to paragraph (5) of subdivision (f).

39(j) (1) The receiver shall be appointed for an initial period of
40not more than three months. The initial three-month period may
P42   1be extended for additional periods not exceeding three months, as
2determined by the court pursuant to this section. At the end of one
3month, the receiver shall report to the court on its assessment of
4the probability that the residential care facility for the elderly will
5meet state standards for operation by the end of the initial
6three-month period and will continue to maintain compliance with
7those standards after termination of the receiver’s management.
8If it appears that the facility cannot be brought into compliance
9with state standards within the initial three-month period, the court
10shall take appropriate action as follows:

11(A) Extend the receiver’s management for an additional three
12months if there is a substantial likelihood that the facility will meet
13state standards within that period and will maintain compliance
14with the standards after termination of the receiver’s management.
15The receiver shall report to the court in writing upon the facility’s
16progress at the end of six weeks of any extension ordered pursuant
17to this paragraph.

18(B) Order the director to revoke or temporarily suspend, or both,
19the license pursuant to Section 1569.50 and extend the receiver’s
20management for the period necessary to transfer clients in
21accordance with the transfer plan, but for not more than three
22months from the date of initial appointment of a receiver, or 14
23days, whichever is greater. An extension of an additional three
24months may be granted if deemed necessary by the court.

25(2) If it appears at the end of six weeks of an extension ordered
26pursuant to subparagraph (A) of paragraph (1) that the facility
27cannot be brought into compliance with state standards for
28operation or that it will not maintain compliance with those
29standards after the receiver’s management is terminated, the court
30shall take appropriate action as specified in subparagraph (B) of
31paragraph (1).

32(3) In evaluating the probability that a residential care facility
33for the elderly will maintain compliance with state standards of
34operation after the termination of receiver management ordered
35by the court, the court shall consider at least the following factors:

36(A) The duration, frequency, and severity of past violations in
37the facility.

38(B) History of compliance in other care facilities operated by
39the proposed licensee.

40(C) Efforts by the licensee to prevent and correct past violations.

P43   1(D) The financial ability of the licensee to operate in compliance
2with state standards.

3(E) The recommendations and reports of the receiver.

4(4) Management of a residential care facility for the elderly
5operated by a receiver pursuant to this section shall not be returned
6to the licensee, to any person related to the licensee, or to any
7person who served as a member of the facility’s staff or who was
8employed by the licensee prior to the appointment of the receiver
9unless both of the following conditions are met:

10(A) The department believes that it would be in the best interests
11of the residents of the facility, requests that the court return the
12operation of the facility to the former licensee, and provides clear
13and convincing evidence to the court that it is in the best interests
14of the facility’s residents to take that action.

15(B) The court finds that the licensee has fully cooperated with
16the department in the appointment and ongoing activities of a
17receiver appointed pursuant to this section, and, if applicable, any
18temporary manager appointed pursuant to Section 1569.481.

19(5) The owner of the facility may at any time sell, lease, or close
20 the facility, subject to the following provisions:

21(A) If the owner closes the facility, or the sale or lease results
22in the closure of the facility, the court shall determine if a transfer
23plan is necessary. If the court so determines, the court shall adopt
24and implement a transfer plan consistent with the provisions of
25Section 1569.682.

26(B) If the licensee proposes to sell or lease the facility and the
27facility will continue to operate as a residential care facility for
28the elderly, the court and the department shall reevaluate any
29proposed transfer plan. If the court and the department determine
30that the sale or lease of the facility will result in compliance with
31licensing standards, the transfer plan and the receivership shall,
32subject to those conditions that the court may impose and enforce,
33be terminated upon the effective date of the sale or lease.

34(k) (1) The salary of the receiver shall be set by the court
35commensurate with community care facility industry standards,
36giving due consideration to the difficulty of the duties undertaken,
37and shall be paid from the revenue coming to the facility. If the
38revenue is insufficient to pay the salary in addition to other
39expenses of operating the facility, the receiver’s salary shall be
40paid from the emergency resident contingency account as provided
P44   1in Section 1569.48. State advances of funds in excess of five
2thousand dollars ($5,000) shall be approved by the director. Total
3advances for encumbrances and expenditures shall not exceed the
4sum of forty-nine thousand nine hundred ninety-nine dollars
5($49,999) unless approved by the director in writing.

6(2) To the extent state funds are advanced for the salary of the
7receiver or for other expenses in connection with the receivership,
8as limited by subdivision (g), the state shall be reimbursed from
9the revenues accruing to the facility or to the licensee or an entity
10related to the licensee. Any reimbursement received by the state
11shall be redeposited in the account from which the state funds were
12advanced. If the revenues are insufficient to reimburse the state,
13the unreimbursed amount shall constitute grounds for a monetary
14judgment in civil court and a subsequent lien upon the assets of
15the facility or the proceeds from the sale thereof. Pursuant to
16Chapter 2 (commencing with Section 697.510) of Division 2 of
17Title 9 of Part 2 of the Code of Civil Procedure, a lien against the
18personal assets of the facility or an entity related to the licensee
19based on the monetary judgment obtained shall be filed with the
20Secretary of State on the forms required for a notice of judgment
21lien. A lien against the real property of the facility or an entity
22related to the licensee based on the monetary judgment obtained
23shall be recorded with the county recorder of the county where the
24facility of the licensee is located or where the real property of the
25entity related to the licensee is located. The lien shall not attach
26to the interests of a lessor, unless the lessor is operating the facility.
27 The authority to place a lien against the personal and real property
28of the licensee for the reimbursement of any state funds expended
29pursuant to this section shall be given judgment creditor priority.

30(3) For purposes of this subdivision, “entity related to the
31licensee” means an entity, other than a natural person, of which
32the licensee is a subsidiary or an entity in which any person who
33was obligated to disclose information under Section 1569.15
34possesses an interest that would also require disclosure pursuant
35to Section 1569.15.

36(l) (1) This section does not impair the right of the owner of a
37residential care facility for the elderly to dispose of his or her
38property interests in the facility, but any facility operated by a
39receiver pursuant to this section shall remain subject to that
40administration until terminated by the court. The termination shall
P45   1be promptly effectuated, provided that the interests of the residents
2have been safeguarded as determined by the court.

3(2) This section does not limit the power of the court to appoint
4a receiver under any other applicable provision of law or to order
5any other remedy available under law.

6(m) (1) Notwithstanding any other provision of law, the receiver
7shall be liable only for damages resulting from gross negligence
8in the operation of the facility or intentional tortious acts.

9(2) All governmental immunities otherwise applicable to the
10State of California shall also apply in the use of a receiver in the
11operationbegin delete ifend deletebegin insert ofend insert a facility pursuant to this section.

12(3) The licensee shall not be liable for any occurrences during
13the receivership except to the extent that the occurrences are the
14result of the licensee’s conduct.

15(n) The department may adopt regulations for the administration
16of this section. This section does not impair the authority of the
17department to temporarily suspend licenses under Section 1569.50
18or to reach a voluntary agreement with the licensee for alternate
19management of a community care facility including the use of a
20temporary manager under Section 1569.481. This section does not
21authorize the department to interfere in a labor dispute.

22(o) This section does not apply to a residential care facility for
23the elderly that serves six or fewer persons and is also the principal
24residence of the licensee.

25(p) This section does not apply to a licensee that has obtained
26a certificate of authority to offer continuing care contracts, as
27defined in paragraph (8) of subdivision (c) of Section 1771.

28

begin deleteSEC. 5.end delete
29begin insertSEC. 7.end insert  

Section 1569.682 of the Health and Safety Code is
30amended to read:

31

1569.682.  

(a) A licensee of a licensed residential care facility
32for the elderly shall, prior to transferring a resident of the facility
33to another facility or to an independent living arrangement as a
34result of the forfeiture of a license, as described in subdivision (a),
35(b), or (f) of Section 1569.19, or a change of use of the facility
36pursuant to the department’s regulations, take all reasonable steps
37to transfer affected residents safely and to minimize possible
38transfer trauma, and shall, at a minimum, do all of the following:

39(1) Prepare, for each resident, a relocation evaluation of the
40needs of that resident, which shall include both of the following:

P46   1(A) Recommendations on the type of facility that would meet
2the needs of the resident based on the current service plan.

3(B) A list of facilities, within a 60-mile radius of the resident’s
4current facility, that meet the resident’s present needs.

5(2) Provide each resident or the resident’s responsible person
6with a written notice no later than 60 days before the intended
7eviction. The notice shall include all of the following:

8(A) The reason for the eviction, with specific facts to permit a
9determination of the date, place, witnesses, and circumstances
10concerning the reasons.

11(B) A copy of the resident’s current service plan.

12(C) The relocation evaluation.

13(D) A list of referral agencies.

14(E) The right of the resident or resident’s legal representative
15to contact the department to investigate the reasons given for the
16eviction pursuant to Section 1569.35.

17(F) The contact information for the local long-term care
18ombudsman, including address and telephone number.

19(3) Discuss the relocation evaluation with the resident and his
20or her legal representative within 30 days of issuing the notice of
21eviction.

22(4) Submit a written report of any eviction to the licensing
23agency within five days.

24(5) Upon issuing the written notice of eviction, a licensee shall
25not accept new residents or enter into new admission agreements.

26(6) (A) For paid preadmission fees in excess of five hundred
27dollars ($500), the resident is entitled to a refund in accordance
28with all of the following:

29(i) A 100-percent refund if preadmission fees were paid within
30six months of notice of eviction.

31(ii) A 75-percent refund if preadmission fees were paid more
32than six months but not more than 12 months before notice of
33eviction.

34(iii) A 50-percent refund if preadmission fees were paid more
35than 12 months but not more than 18 months before notice of
36eviction.

37(iv) A 25-percent refund if preadmission fees were paid more
38than 18 months but less than 25 months before notice of eviction.

39(B) No preadmission refund is required if preadmission fees
40were paid 25 months or more before the notice of eviction.

P47   1(C) The preadmission refund required by this paragraph shall
2be paid within 15 days of issuing the eviction notice. In lieu of the
3refund, the resident may request that the licensee provide a credit
4toward the resident’s monthly fee obligation in an amount equal
5to the preadmission fee refund due.

6(7) If the resident gives notice five days before leaving the
7facility, the licensee shall refund to the resident or his or her legal
8representative a proportional per diem amount of any prepaid
9monthly fees at the time the resident leaves the facility and the
10unit is vacated. Otherwise the licensee shall pay the refund within
11seven days from the date that the resident leaves the facility and
12the unit is vacated.

13(8) Within 10 days of all residents having left the facility, the
14licensee, based on information provided by the resident or
15resident’s legal representative, shall submit a final list of names
16and new locations of all residents to the department and the local
17ombudsman program.

18(b) If seven or more residents of a residential care facility for
19the elderly will be transferred as a result of the forfeiture of a
20license or change in the use of the facility pursuant to subdivision
21(a), the licensee shall submit a proposed closure plan to the
22department for approval. The department shall approve or
23disapprove the closure plan, and monitor its implementation, in
24accordance with the following requirements:

25(1) Upon submission of the closure plan, the licensee shall be
26prohibited from accepting new residents and entering into new
27admission agreements for new residents.

28(2) The closure plan shall meet the requirements described in
29subdivision (a), and describe the staff available to assist in the
30transfers. The department’s review shall include a determination
31as to whether the licensee’s closure plan contains a relocation
32evaluation for each resident.

33(3) Within 15 working days of receipt, the department shall
34approve or disapprove the closure plan prepared pursuant to this
35subdivision, and, if the department approves the plan, it shall
36become effective upon the date the department grants its written
37approval of the plan.

38(4) If the department disapproves a closure plan, the licensee
39may resubmit an amended plan, which the department shall
40promptly either approve or disapprove, within 10 working days
P48   1of receipt by the department of the amended plan. If the department
2fails to approve a closure plan, it shall inform the licensee, in
3writing, of the reasons for the disapproval of the plan.

4(5) If the department fails to take action within 20 working days
5of receipt of either the original or the amended closure plan, the
6plan, or amended plan, as the case may be, shall be deemed
7approved.

8(6) Until such time that the department has approved a licensee’s
9closure plan, the facility shall not issue a notice of transfer or
10require any resident to transfer.

11(7) Upon approval by the department, the licensee shall send a
12copy of the closure plan to the local ombudsman program.

13(c) (1) If a licensee fails to comply with the requirements of
14this section, or if the director determines that it is necessary to
15protect the residents of a facility from physical or mental abuse,
16abandonment, or any other substantial threat to health or safety,
17the department shall take any necessary action to minimize trauma
18for the residents, including caring for the residents through the use
19of a temporary manager or receiver as provided for in Sections
201569.481 and 1569.482 when the director determines the immediate
21relocation of the residents is not feasible based on transfer trauma
22or other considerations such as the unavailability of alternative
23placements. The department shall contact any local agency that
24may have assessment placement, protective, or advocacy
25responsibility for the residents, and shall work together with those
26agencies to locate alternative placement sites, contact relatives or
27other persons responsible for the care of these residents, provide
28onsite evaluation of the residents, and assist in the transfer of
29residents.

30(2) The participation of the department and local agencies in
31the relocation of residents from a residential care facility for the
32elderly shall not relieve the licensee of any responsibility under
33this section. A licensee that fails to comply with the requirements
34of this section shall be required to reimburse the department and
35local agencies for the cost of providing the relocation services or
36the costs incurred in caring for the residents through the use of a
37temporary manager or receiver as provided for in Sections
381569.481 and 1569.482. If the licensee fails to provide the
39relocation services required in this section, then the department
40may request that the Attorney General’s office, the city attorney’s
P49   1office, or the local district attorney’s office seek injunctive relief
2and damages in the same manner as provided for in Chapter 5
3(commencing with Section 17200) of Part 2 of Division 7 of the
4Business and Professions Code, including restitution to the
5department of any costs incurred in caring for the residents through
6the use of a temporary manager or receiver as provided for in
7Sections 1569.481 and 1569.482.

8(d) A licensee who fails to comply with requirements of this
9section shall be liable for the imposition of civil penalties in the
10amount of one hundred dollars ($100) per violation per day for
11each day that the licensee is in violation of this section, until such
12time that the violation has been corrected. The civil penalties shall
13be issued immediately following the written notice of violation.
14However, if the violation does not present an immediate or
15substantial threat to the health or safety of residents and the licensee
16corrects the violation within three days after receiving the notice
17of violation, the licensee shall not be liable for payment of any
18civil penalties pursuant to this subdivision related to the corrected
19violation.

20(e) A resident of a residential care facility for the elderly covered
21 under thisbegin delete section,end deletebegin insert sectionend insert may bring a civil action against any
22person, firm, partnership, or corporation who owns, operates,
23establishes, manages, conducts, or maintains a residential care
24facility for the elderly who violates the rights of a resident, as set
25forth in this section. Any person, firm, partnership, or corporation
26who owns, operates, establishes, manages, conducts, or maintains
27a residential care facility for the elderly who violates this section
28shall be responsible for the acts of the facility’s employees and
29shall be liable for costs and attorney’s fees. Any such residential
30care facility for the elderly may also be enjoined from permitting
31the violation to continue. The remedies specified in this section
32 shall be in addition to any other remedy provided by law.

33(f) This section shall not apply to a licensee that has obtained
34a certificate of authority to offer continuing care contracts, as
35defined in paragraph (8) of subdivision (c) of Section 1771.

36begin insert

begin insertSEC. 7.5.end insert  

end insert

begin insertSection 1569.682 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
37amended to read:end insert

38

1569.682.  

(a) A licensee of a licensed residential care facility
39for the elderly shall, prior to transferring a resident of the facility
40to another facility or to an independent living arrangement as a
P50   1result of the forfeiture of a license, as described in subdivision (a),
2(b), or (f) of Section 1569.19, or a change of use of the facility
3pursuant to the department’s regulations, take all reasonable steps
4to transfer affected residents safely and to minimize possible
5transfer trauma, and shall, at a minimum, do all of the following:

6(1) Prepare, for each resident, a relocation evaluation of the
7needs of that resident, which shall include both of the following:

8(A) Recommendations on the type of facility that would meet
9the needs of the resident based on the current service plan.

10(B) A list of facilities, within a 60-mile radius of the resident’s
11current facility, that meet the resident’s present needs.

12(2) Provide each resident or the resident’s responsible person
13with a written notice no later than 60 days before the intended
14eviction. The notice shall include all of the following:

15(A) The reason for the eviction, with specific facts to permit a
16determination of the date, place, witnesses, and circumstances
17concerning the reasons.

18(B) A copy of the resident’s current service plan.

19(C) The relocation evaluation.

20(D) A list of referral agencies.

21(E) The right of the resident or resident’s legal representative
22to contact the department to investigate the reasons given for the
23eviction pursuant to Section 1569.35.

24(F) The contact information for the local long-term care
25ombudsman, including address and telephone number.

26(3) Discuss the relocation evaluation with the resident and his
27or her legal representative within 30 days of issuing the notice of
28eviction.

29(4) Submit a written report of any eviction to the licensing
30agency within five days.

31(5) Upon issuing the written notice of eviction, a licensee shall
32not accept new residents or enter into new admission agreements.

33(6) (A) For paid preadmission fees in excess of five hundred
34dollars ($500), the resident is entitled to a refund in accordance
35with all of the following:

36(i) A 100-percent refund if preadmission fees were paid within
37six months of notice of eviction.

38(ii) A 75-percent refund if preadmission fees were paid more
39than six months but not more than 12 months before notice of
40eviction.

P51   1(iii) A 50-percent refund if preadmission fees were paid more
2than 12 months but not more than 18 months before notice of
3eviction.

4(iv) A 25-percent refund if preadmission fees were paid more
5than 18 months but less than 25 months before notice of eviction.

6(B) No preadmission refund is required if preadmission fees
7were paid 25 months or more before the notice of eviction.

8(C) The preadmission refund required by this paragraph shall
9be paid within 15 days of issuing the eviction notice. In lieu of the
10refund, the resident may request that the licensee provide a credit
11toward the resident’s monthly fee obligation in an amount equal
12to the preadmission fee refund due.

13(7) If the resident gives notice five days before leaving the
14facility, the licensee shall refund to the resident or his or her legal
15representative a proportional per diem amount of any prepaid
16monthly fees at the time the resident leaves the facility and the
17unit is vacated. Otherwise the licensee shall pay the refund within
18seven days from the date that the resident leaves the facility and
19the unit is vacated.

20(8) Within 10 days of all residents having left the facility, the
21licensee, based on information provided by the resident or
22resident’s legal representative, shall submit a final list of names
23and new locations of all residents to the department and the local
24ombudsman program.

25(b) If seven or more residents of a residential care facility for
26the elderly will be transferred as a result of the forfeiture of a
27license or change in the use of the facility pursuant to subdivision
28(a), the licensee shall submit a proposed closure plan to the
29department for approval. The department shall approve or
30disapprove the closure plan, and monitor its implementation, in
31accordance with the following requirements:

32(1) Upon submission of the closure plan, the licensee shall be
33prohibited from accepting new residents and entering into new
34admission agreements for new residents.

35(2) The closure plan shall meet the requirements described in
36subdivision (a), and describe the staff available to assist in the
37transfers. The department’s review shall include a determination
38as to whether the licensee’s closure plan contains a relocation
39evaluation for each resident.

P52   1(3) Within 15 working days of receipt, the department shall
2approve or disapprove the closure plan prepared pursuant to this
3subdivision, and, if the department approves the plan, it shall
4become effective upon the date the department grants its written
5approval of the plan.

6(4) If the department disapproves a closure plan, the licensee
7may resubmit an amended plan, which the department shall
8promptly either approve or disapprove, within 10 working days
9of receipt by the department of the amended plan. If the department
10fails to approve a closure plan, it shall inform the licensee, in
11writing, of the reasons for the disapproval of the plan.

12(5) If the department fails to take action within 20 working days
13of receipt of either the original or the amended closure plan, the
14plan, or amended plan, as the case may be, shall be deemed
15approved.

16(6) Until such time that the department has approved a licensee’s
17closure plan, the facility shall not issue a notice of transfer or
18require any resident to transfer.

19(7) Upon approval by the department, the licensee shall send a
20copy of the closure plan to the local ombudsman program.

21(c) (1) If a licensee fails to comply with the requirements of
22this section,begin delete andend deletebegin insert orend insert if the director determines that it is necessary
23to protect the residents of a facility from physical or mental abuse,
24abandonment, or any other substantial threat to health or safety,
25the department shall take any necessary action to minimize trauma
26for the residents, including caring for the residents through the use
27of a temporary managerbegin insert or receiverend insert as provided for inbegin delete Section
281569.481end delete
begin insert Sections 1569.481 and 1569.482end insert when the director
29determines the immediate relocation of the residents is not feasible
30based on transfer trauma or other considerations such as the
31unavailability of alternative placements. The department shall
32contact any local agency that may have assessment placement,
33protective, or advocacy responsibility for the residents, and shall
34work together with those agencies to locate alternative placement
35sites, contact relatives or other persons responsible for the care of
36these residents, provide onsite evaluation of the residents, and
37assist in the transfer of residents.

38(2) The participation of the department and local agencies in
39the relocation of residents from a residential care facility for the
40elderly shall not relieve the licensee of any responsibility under
P53   1this section. A licensee that fails to comply with the requirements
2of this section shall be required to reimburse the department and
3local agencies for the cost of providing the relocation services or
4the costs incurred in caring for the residents through the use of a
5temporary managerbegin insert or receiverend insert as provided for inbegin delete Section
61569.481.end delete
begin insert Sections 1569.481 and 1569.482.end insert If the licensee fails
7to provide the relocation services required in this section, then the
8department may request that the Attorney General’s office, the
9city attorney’s office, or the local district attorney’s office seek
10injunctive relief and damages in the same manner as provided for
11in Chapter 5 (commencing with Section 17200) of Part 2 of
12Division 7 of the Business and Professions Code, including
13restitution to the department of any costs incurred in caring for the
14residents through the use of a temporary managerbegin insert or receiverend insert as
15provided for inbegin delete Section 1569.481.end deletebegin insert Sections 1569.481 and 1569.482.end insert

16(d) A licensee who fails to comply with requirements of this
17section shall be liable for the imposition of civil penalties in the
18amount of one hundred dollars ($100) per violation per day for
19each day that the licensee is in violation of this section, until such
20time that the violation has been corrected. The civil penalties shall
21be issued immediately following the written notice of violation.
22However, if the violation does not present an immediate or
23substantial threat to the health or safety of residents and the licensee
24corrects the violation within three days after receiving the notice
25of violation, the licensee shall not be liable for payment of any
26civil penalties pursuant to this subdivision related to the corrected
27violation.

begin insert

28(e) A licensee, on and after January 1, 2015, who fails to comply
29with this section and abandons the facility and the residents in
30care resulting in an immediate and substantial threat to the health
31and safety of the abandoned residents, in addition to forfeiture of
32the license pursuant to Section 1569.19, shall be excluded from
33 licensure in facilities licensed by the department without the right
34to petition for reinstatement.

end insert
begin delete

35(e)

end delete

36begin insert(f)end insert A resident of a residential care facility for the elderly covered
37under thisbegin delete section,end deletebegin insert sectionend insert may bring a civil action against any
38person, firm, partnership, or corporation who owns, operates,
39establishes, manages, conducts, or maintains a residential care
40facility for the elderly who violates the rights of a resident, as set
P54   1forth in this section. Any person, firm, partnership, or corporation
2who owns, operates, establishes, manages, conducts, or maintains
3a residential care facility for the elderly who violates this section
4shall be responsible for the acts of the facility’s employees and
5shall be liable for costs and attorney’s fees. Any such residential
6care facility for the elderly may also be enjoined from permitting
7the violation to continue. The remedies specified in this section
8shall be in addition to any other remedy provided by law.

begin delete

9(f)

end delete

10begin insert(g)end insert This section shall not apply to a licensee that has obtained
11a certificate of authority to offer continuing care contracts, as
12defined in paragraph (8) of subdivision (c) of Section 1771.

13

begin deleteSEC. 6.end delete
14begin insertSEC. 8.end insert  

Section 11461.3 of the Welfare and Institutions Code,
15as added by Section 74 of Chapter 29 of the Statutes of 2014, is
16amended to read:

17

11461.3.  

(a) The Approved Relative Caregiver Funding Option
18Program is hereby established for the purpose of making the
19amount paid to approved relative caregivers for the in-home care
20of children placed with them who are ineligible for AFDC-FC
21payments equal to the amount paid on behalf of children who are
22eligible for AFDC-FC payments. This is an optional program for
23counties choosing to participate, and in so doing, participating
24counties agree to the terms of this section as a condition of their
25participation. It is the intent of the Legislature that the funding
26described in paragraph (1) of subdivision (e) for the Approved
27Relative Caregiver Funding Option Program be appropriated, and
28available for use from January through December of each year,
29unless otherwise specified.

30(b) Subject to subdivision (c), effective January 1, 2015, counties
31shall pay an approved relative caregiver a per child per month rate
32in return for the care and supervision, as defined in subdivision
33(b) of Section 11460, of a child that is placed with the relative
34caregiver that is equal to the basic rate paid to foster care providers
35pursuant to subdivision (g) of Section 11461, if both of the
36following conditions are met:

37(1) The county with payment responsibility has notified the
38department in writing by October 1 of the year before participation
39begins of its decision to participate in the Approved Relative
40Caregiver Funding Option Program.

P55   1(2) The related child placed in the home meets all of the
2following requirements:

3(A) The child resides in the State of California.

4(B) The child is described by subdivision (b), (c), or (e) of
5Section 11401 and the county welfare department or the county
6probation department is responsible for the placement and care of
7the child.

8(C) The child is not eligible for AFDC-FC while placed with
9the approved relative caregiver because the child is not eligible
10for federal financial participation in the AFDC-FC payment.

11(c) A county’s election to participate in the Approved Relative
12Caregiver Funding Option Program shall affirmatively indicate
13that the county understands and agrees to all of the following
14conditions:

15(1) Commencing October 1, 2014, the county shall notify the
16department in writing of its decision to participate in the Approved
17Relative Caregiver Funding Option Program. Failure to make
18timely notification, without good cause as determined by the
19department, shall preclude the county from participating in the
20program for the upcoming year. Annually thereafter, any county
21not presently participating who elects to do so shall notify the
22department in writing no later than October 1 of its decision to
23participate for the upcoming calendar year.

24(2) The county shall confirm that it will make per child per
25month payments to all approved relative caregivers on behalf of
26eligible children in the amount specified in subdivision (b) for the
27duration of the participation of the county in this program.

28(3) The county shall confirm that it will be solely responsible
29to pay any additional costs needed to make all payments pursuant
30to subdivision (b) if the state and federal funds allocated to the
31Approved Relative Caregiver Funding Option Program pursuant
32to paragraph (1) of subdivision (e) are insufficient to make all
33eligible payments.

34(d) (1) A county deciding to opt out of the Approved Relative
35Caregiver Funding Option Program shall provide at least 120 days’
36prior written notice of that decision to the department. Additionally,
37the county shall provide at least 90 days’ prior written notice to
38the approved relative caregiver or caregivers informing them that
39his or her per child per month payment will be reduced and the
40date that the reduction will occur.

P56   1(2) The department shall presume all counties have opted out
2of the Approved Relative Caregiver Funding Option Program if
3the funding appropriated in subclause (II) of clause (i) of
4subparagraph (B) of paragraph (1) of subdivision (e), including
5any additional funds appropriated pursuant to clause (ii) of
6subparagraph (B) of paragraph (1) of subdivision (e), is reduced,
7unless a county notifies the department in writing of its intent to
8opt in within 60 days of enactment of the state budget. The counties
9shall provide at least 90 days’ prior written notice to the approved
10relative caregiver or caregivers informing them that his or her per
11child per month payment will be reduced, and the date that the
12reduction will occur.

13(3) Any reduction in payments received by an approved relative
14caregiver on behalf of a child under this section that results from
15a decision by a county, including the presumed opt-out pursuant
16to paragraph (2), to not participate in the Approved Relative
17Caregiver Funding Option Program shall be exempt from state
18hearing jurisdiction under Section 10950.

19(e) (1) The following funding shall be used for the Approved
20Relative Caregiver Funding Option Program:

21(A) The applicable regional per-child CalWORKs grant.

22(B) (i) General Fund resources that do not count toward the
23state’s maintenance of effort requirements under Section
24609(a)(7)(B)(i) of Title 42 of the United States Code. For this
25purpose, the following money is hereby appropriated:

26(I) The sum of thirty million dollars ($30,000,000) from the
27General Fund for the period January 1, 2015 through December
2831, 2015.

29(II) The sum of thirty million dollars ($30,000,000) from the
30General Fund in each calendar year thereafter, as cumulatively
31adjusted annually by the California Necessities Index used for each
32May Revision of the Governor’s Budget, to be used in each
33respective calendar year.

34(ii) To the extent that the appropriation made in subclause (I)
35is insufficient to fully fund the base caseload of approved relative
36caregivers as of July 1, 2014, for the period of time described in
37subclause (I), as jointly determined by the department and the
38County Welfare Directors’ Association and approved by the
39Department of Finance on or before October 1, 2015, the amounts
40specified in subclauses (I) and (II) shall be increased in the
P57   1respective amounts necessary to fully fund that base caseload.
2Thereafter, the adjusted amount of subclause (II), and the other
3terms of that provision, including an annual California Necessities
4Index adjustment to its amount, shall apply.

5(C) County funds only to the extent required under paragraph
6(3) of subdivision (c).

7(D) This section is intended to appropriate the funding necessary
8to fully fund the base caseload of approved relative caregivers,
9defined as the number of approved relative caregivers caring for
10a child who is not eligible to receive AFDC-FC payments, as of
11July 1, 2014.

12(2) Funds available pursuant to subparagraphs (A) and (B) of
13paragraph (1) shall be allocated to participating counties
14proportionate to the number of their approved relative caregiver
15placements, using a methodology and timing developed by the
16department, following consultation with county human services
17agencies and their representatives.

18(3) Notwithstanding subdivision (c), if in any calendar year the
19entire amount of funding appropriated by the state for the Approved
20Relative Caregiver Funding Option Program has not been fully
21allocated to or utilized by counties, a county that has paid any
22funds pursuant to subparagraph (C) of paragraph (1) of subdivision
23(e) may request reimbursement for those funds from the
24department. The authority of the department to approve the requests
25shall be limited by the amount of available unallocated funds.

26(f) An approved relative caregiver receiving payments on behalf
27of a child pursuant to this section shall not be eligible to receive
28additional CalWORKs payments on behalf of the same child under
29Section 11450.

30(g) To the extent permitted by federal law, payments received
31by the approved relative caregiver from the Approved Relative
32Caregiver Funding Option Program shall not be considered income
33for the purpose of determining other public benefits.

34(h) Prior to referral of any individual or recipient, or that
35person’s case, to the local child support agency for child support
36services pursuant to Section 17415 of the Family Code, the county
37human services agency shall determine if an applicant or recipient
38has good cause for noncooperation, as set forth in Section
3911477.04. If the applicant or recipient claims good cause exception
40at any subsequent time to the county human services agency or
P58   1the local child support agency, the local child support agency shall
2suspend child support services until the county social services
3agency determines the good cause claim, as set forth in Section
411477.04. If good cause is determined to exist, the local child
5support agency shall suspend child support services until the
6applicant or recipient requests their resumption, and shall take
7other measures that are necessary to protect the applicant or
8recipient and the children. If the applicant or recipient is the parent
9of the child for whom aid is sought and the parent is found to have
10not cooperated without good cause as provided in Section
1111477.04, the applicant’s or recipient’s family grant shall be
12reduced by 25 percent for the time the failure to cooperate lasts.

13(i) Consistent with Section 17552 of the Family Code, if aid is
14paid under this chapter on behalf of a child who is under the
15jurisdiction of the juvenile court and whose parent or guardian is
16receiving reunification services, the county human services agency
17shall determine, prior to referral of the case to the local child
18support agency for child support services, whether the referral is
19in the best interest of the child, taking into account both of the
20following:

21(1) Whether the payment of support by the parent will pose a
22barrier to the proposed reunification in that the payment of support
23will compromise the parent’s ability to meet the requirements of
24the parent’s reunification plan.

25(2) Whether the payment of support by the parent will pose a
26barrier to the proposed reunification in that the payment of support
27will compromise the parent’s current or future ability to meet the
28financial needs of the child.

29

begin deleteSEC. 7.end delete
30begin insertSEC. 9.end insert  

Section 11462.04 of the Welfare and Institutions Code
31 is amended to read:

32

11462.04.  

(a) Notwithstanding any other law, no new group
33home rate or change to an existing rate shall be established pursuant
34to Section 11462. An application shall not be accepted or processed
35for any of the following:

36(1) A new program.

37(2) A new provider.

38(3) A program change, such as a rate classification level (RCL)
39increase.

40(4) A program capacity increase.

P59   1(5) A program reinstatement.

2(b) Notwithstanding subdivision (a), the department may grant
3exceptions as appropriate on a case-by-case basis, based upon a
4written request and supporting documentation provided by county
5placing agencies, including county welfare or probation directors.

6(c) For the 2012-13, 2013-14, and 2014-15 fiscal years,
7notwithstanding subdivision (b), for any program below RCL 10,
8the only exception that may be sought and granted pursuant to this
9section is for an application requesting a program change, such as
10an RCL increase. The authority to grant other exceptions does not
11apply to programs below RCL 10 during these fiscal years.

12

begin deleteSEC. 8.end delete
13begin insertSEC. 10.end insert  

Section 11477 of the Welfare and Institutions Code,
14as amended by Section 75 of Chapter 29 of the Statutes of 2014,
15 is amended to read:

16

11477.  

As a condition of eligibility for aid paid under this
17chapter, each applicant or recipient shall do all of the following:

18(a) (1) Do either of the following:

19(i) For applications received before October 1, 2009, assign to
20the county any rights to support from any other person the applicant
21or recipient may have on his or her own behalf or on behalf of any
22other family member for whom the applicant or recipient is
23applying for or receiving aid, not exceeding the total amount of
24cash assistance provided to the family under this chapter. Receipt
25of public assistance under this chapter shall operate as an
26assignment by operation of law. An assignment of support rights
27to the county shall also constitute an assignment to the state. If
28support rights are assigned pursuant to this subdivision, the
29assignee may become an assignee of record by the local child
30support agency or other public official filing with the court clerk
31an affidavit showing that an assignment has been made or that
32there has been an assignment by operation of law. This procedure
33does not limit any other means by which the assignee may become
34an assignee of record.

35(ii) For applications received on or after October 1, 2009, assign
36to the county any rights to support from any other person the
37applicant or recipient may have on his or her own behalf, or on
38behalf of any other family member for whom the applicant or
39recipient is applying for or receiving aid. The assignment shall
40apply only to support that accrues during the period of time that
P60   1the applicant is receiving assistance under this chapter, and shall
2not exceed the total amount of cash assistance provided to the
3family under this chapter. Receipt of public assistance under this
4chapter shall operate as an assignment by operation of law. An
5assignment of support rights to the county shall also constitute an
6assignment to the state. If support rights are assigned pursuant to
7this subdivision, the assignee may become an assignee of record
8by the local child support agency or other public official filing
9with the court clerk an affidavit showing that an assignment has
10been made or that there has been an assignment by operation of
11law. This procedure does not limit any other means by which the
12assignee may become an assignee of record.

13(2) Support that has been assigned pursuant to paragraph (1)
14and that accrues while the family is receiving aid under this chapter
15shall be permanently assigned until the entire amount of aid paid
16has been reimbursed.

17(3) If the federal government does not permit states to adopt the
18same order of distribution for preassistance and postassistance
19child support arrears that are assigned on or after October 1, 1998,
20support arrears that accrue before the family receives aid under
21this chapter that are assigned pursuant to this subdivision shall be
22assigned as follows:

23(A) Child support assigned prior to January 1, 1998, shall be
24permanently assigned until aid is no longer received and the entire
25amount of aid has been reimbursed.

26(B) Child support assigned on or after January 1, 1998, but prior
27to October 1, 2000, shall be temporarily assigned until aid under
28this chapter is no longer received and the entire amount of aid paid
29has been reimbursed or until October 1, 2000, whichever comes
30first.

31(C) On or after October 1, 2000, support assigned pursuant to
32this subdivision that was not otherwise permanently assigned shall
33be temporarily assigned to the county until aid is no longer
34received.

35(D) On or after October 1, 2000, support that was temporarily
36assigned pursuant to this subdivision shall, when a payment is
37received from the federal tax intercept program, be temporarily
38assigned until the entire amount of aid paid has been reimbursed.

P61   1(4) If the federal government permits states to adopt the same
2order of distribution for preassistance and postassistance child
3support arrears, child support arrears shall be assigned, as follows:

4(A) Child support assigned pursuant to this subdivision prior
5to October 1, 1998, shall be assigned until aid under this chapter
6is no longer received and the entire amount has been reimbursed.

7(B) On or after October 1, 1998, child support assigned pursuant
8to this subdivision that accrued before the family receives aid under
9this chapter and that was not otherwise permanently assigned, shall
10be temporarily assigned until aid under this chapter is no longer
11received.

12(C) On or after October 1, 1998, support that was temporarily
13assigned pursuant to this subdivision shall, when a payment is
14received from the federal tax intercept program, be temporarily
15assigned until the entire amount of aid paid has been reimbursed.

16(b) (1) Cooperate with the county welfare department and local
17child support agency in establishing the paternity of a child of the
18applicant or recipient born out of wedlock with respect to whom
19aid is claimed, and in establishing, modifying, or enforcing a
20support order with respect to a child of the individual for whom
21 aid is requested or obtained, unless the applicant or recipient
22qualifies for a good cause exception pursuant to Section 11477.04.
23The granting of aid shall not be delayed or denied if the applicant
24is otherwise eligible, if the applicant completes the necessary forms
25and agrees to cooperate with the local child support agency in
26securing support and determining paternity, if applicable. The local
27child support agency shall have staff available, in person or by
28telephone, at all county welfare offices and shall conduct an
29interview with each applicant to obtain information necessary to
30establish paternity and establish, modify, or enforce a support order
31at the time of the initial interview with the welfare office. The local
32child support agency shall make the determination of cooperation.
33If the applicant or recipient attests under penalty of perjury that
34he or she cannot provide the information required by this
35subdivision, the local child support agency shall make a finding
36regarding whether the individual could reasonably be expected to
37provide the information before the local child support agency
38determines whether the individual is cooperating. In making the
39finding, the local child support agency shall consider all of the
40following:

P62   1(A) The age of the child for whom support is sought.

2(B) The circumstances surrounding the conception of the child.

3(C) The age or mental capacity of the parent or caretaker of the
4child for whom aid is being sought.

5(D) The time that has elapsed since the parent or caretaker last
6had contact with the alleged father or obligor.

7(2) Cooperation includes all of the following:

8(A) Providing the name of the alleged parent or obligor and
9other information about that person if known to the applicant or
10recipient, such as address, social security number, telephone
11number, place of employment or school, and the names and
12addresses of relatives or associates.

13(B) Appearing at interviews, hearings, and legal proceedings
14provided the applicant or recipient is provided with reasonable
15advance notice of the interview, hearing, or legal proceeding and
16does not have good cause not to appear.

17(C) If paternity is at issue, submitting to genetic tests, including
18genetic testing of the child, if necessary.

19(D) Providing any additional information known to or reasonably
20obtainable by the applicant or recipient necessary to establish
21paternity or to establish, modify, or enforce a child support order.

22(3) A recipient or applicant shall not be required to sign a
23voluntary declaration of paternity, as set forth in Chapter 3
24(commencing with Section 7570) of Part 2 of Division 12 of the
25Family Code, as a condition of cooperation.

26(c) (1) This section shall not apply if all of the adults are
27excluded from the assistance unit pursuant to Section 11251.3,
2811454, or 11486.5.

29(2) It is the intent of the Legislature that the regular receipt of
30child support in the preceding reporting period be considered in
31determining reasonably anticipated income for the following
32reporting period.

33(3) In accordance with Sections 11265.2 and 11265.46, if the
34income of an assistance unit described in paragraph (1) includes
35reasonably anticipated income derived from child support, thebegin delete first
36fifty dollars ($50)end delete
begin insert amount established in Section 17504 of the
37Family Code and Section 11475.3 of this codeend insert
of any amount of
38child support received each month shall not be considered income
39or resources and shall not be deducted from the amount of aid to
40which the assistance unit otherwise would be eligible.

P63   1

begin deleteSEC. 9.end delete
2begin insertSEC. 11.end insert  

Section 12300.4 of the Welfare and Institutions Code,
3as added by Section 76 of Chapter 29 of the Statutes of 2014, is
4amended to read:

5

12300.4.  

(a) Notwithstanding any other law, including, but
6not limited to, Chapter 10 (commencing with Section 3500) of
7Division 4 of Title 1 of the Government Code and Title 23
8(commencing with Section 110000) of the Government Code, a
9recipient who is authorized to receive in-home supportive services
10pursuant to this article, or Section 14132.95, 14132.952, or
1114132.956, administered by the State Department of Social
12Services, or waiver personal care services pursuant to Section
1314132.97, administered by the State Department of Health Care
14Services, or any combination of these services, shall direct these
15authorized services, and the authorized services shall be performed
16by a provider or providers within a workweek and in a manner
17that complies with the requirements of this section.

18(b) (1) A workweek is defined as beginning at 12:00 a.m. on
19Sunday and includes the next consecutive 168 hours, terminating
20at 11:59 p.m. the following Saturday.

21(2) A provider of services specified in subdivision (a) shall not
22work a total number of hours within a workweek that exceeds 66,
23as reduced by the net percentage defined by Sections 12301.02
24and 12301.03, as applicable, and in accordance with subdivision
25(d). The total number of hours worked within a workweek by a
26provider is defined as the sum of the following:

27(A) All hours worked providing authorized services specified
28in subdivision (a).

29(B) Travel time as defined in subdivision (f), only if federal
30financial participation is not available to compensate for that travel
31 time. If federal financial participation is available for travel time
32as defined in subdivision (f), the travel time shall not be included
33in the calculation of the total weekly hours worked within a
34workweek.

35(3) (A) If the authorized in-home supportive services of a
36recipient cannot be provided by a single provider as a result of the
37limitation specified in paragraph (2), it is the responsibility of the
38recipient to employ an additional provider or providers, as needed,
39to ensure his or her authorized services are provided within his or
P64   1her total weekly authorized hours of services established pursuant
2to subdivision (b) of Section 12301.1.

3(B) If the provider of authorized waiver personal care services
4cannot provide those services to a recipient as a result of the
5limitation specified in paragraph (2), the State Department of
6Health Care Services shall work with the recipient to engage
7additional providers, as necessary. It is the intent of the Legislature
8that this section shall not result in reduced services authorized to
9recipients of waiver personal care services defined in subdivision
10(a).

11(4) (A) A provider shall inform each of his or her recipients of
12the number of hours that the provider is available to work for that
13recipient, in accordance with this section.

14(B) A recipient, his or her authorized representative, or any
15other entity, including any person or entity providing services
16pursuant to Section 14186.35, shall not authorize any provider to
17work hours that exceed the applicable limitation or limitations of
18this section.

19(C) A recipient may authorize a provider to work hours in excess
20of the recipient’s weekly authorized hours established pursuant to
21Section 12301.1 without notification of the county welfare
22department, in accordance with both of the following:

23(i) The authorization does not result in more than 40 hours of
24authorized services per week being provided.

25(ii) The authorization does not exceed the recipient’s authorized
26hours of monthly services pursuant to paragraph (1) of subdivision
27(b) of Section 12301.1.

28(5) For providers of in-home supportive services, the State
29Department of Social Services or a county may terminate the
30provider from providing services under the IHSS program if a
31provider continues to violate the limitations of this section on
32multiple occasions.

33(c) Notwithstanding any other law, only federal law and
34regulations regarding overtime compensation apply to providers
35of services defined in subdivision (a).

36(d) A provider of services defined in subdivision (a) is subject
37to all of the following, as applicable to his or her situation:

38(1) (A) A provider who works for one individual recipient of
39those services shall not work a total number of hours within a
40workweek that exceeds 66 hours, as reduced by the net percentage
P65   1defined by Sections 12301.02 and 12301.03, as applicable. In no
2circumstance shall the provision of these services by that provider
3to the individual recipient exceed the total weekly hours of the
4services authorized to that recipient, except as additionally
5authorized pursuant to subparagraph (C) of paragraph (4) of
6subdivision (b). If multiple providers serve the same recipient, it
7shall continue to be the responsibility of that recipient or his or
8her authorized representative to schedule the work of his or her
9providers to ensure the authorized services of the recipient are
10provided in accordance with this section.

11(B) When a recipient’s weekly authorized hours are adjusted
12pursuant to subparagraph (C) of paragraph (1) of subdivision (b)
13of Section 12301.1 and exceed 66 hours, as reduced by the net
14percentage defined by Sections 12301.02 and 12301.03, as
15applicable, and at the time of adjustment the recipient currently
16receives all authorized hours of service from one provider, that
17provider shall be deemed authorized to work the recipient’s
18county-approved adjusted hours for that week, but only if the
19additional hours of work, based on the adjustment, do not exceed
20the total number of hours worked that are compensable at an
21overtime pay rate that the provider would have been authorized to
22work in that month if the weekly hours had not been adjusted.

23(2) A provider of in-home supportive services described in
24subdivision (a) who serves multiple recipients is not authorized
25to, and shall not, work more than 66 total hours in a workweek,
26as reduced by the net percentage defined by Sections 12301.02
27and 12301.03, as applicable, regardless of the number of recipients
28for whom the provider provides services authorized by subdivision
29(a). Providers are subject to the limits of each recipient’s total
30authorized weekly hours of in-home supportive services described
31in subdivision (a), except as additionally authorized pursuant to
32subparagraph (C) of paragraph (4) of subdivision (b).

33(e) Recipients and providers shall be informed of the limitations
34and requirements contained in this section, through notices at
35intervals and on forms as determined by the State Department of
36Social Services or the State Department of Health Care Services,
37as applicable, following consultation with stakeholders.

38(f) (1) A provider of services described in subdivision (a) shall
39not engage in travel time in excess of seven hours per week. For
40the purposes of this subdivision, “travel time” means time spent
P66   1traveling directly from a location where authorized services
2specified in subdivision (a) are provided to one recipient, to another
3location where authorized services are to be provided to another
4recipient. A provider shall coordinate hours of work with his or
5her recipients to comply with this section.

6(2) The hourly wage to compensate a provider for travel time
7described in this subdivision when the travel is between two
8counties shall be the hourly wage of the destination county.

9(3) Travel time, and compensation for that travel time, between
10a recipient of authorized in-home supportive services specified in
11subdivision (a) and a recipient of authorized waiver personal care
12services specified in subdivision (a), shall be attributed to the
13program authorizing services for the recipient to whom the provider
14is traveling.

15(4) Hours spent by a provider while engaged in travel time shall
16not be deducted from the authorized hours of service of any
17recipient of services specified in subdivision (a).

18(5) The State Department of Social Services and the State
19Department of Health Care Services shall issue guidance and
20processes for travel time between recipients that will assist the
21provider and recipient to comply with this subdivision. Each county
22shall provide technical assistance to providers and recipients, as
23necessary, to implement this subdivision.

24(g) A provider of authorized in-home supportive services
25specified in subdivision (a) shall timely submit, deliver, or mail,
26verified by postmark or request for delivery, a signed payroll
27timesheet within two weeks after the end of each bimonthly payroll
28period. Notwithstanding any other law, a provider who submits
29an untimely payroll timesheet for providing authorized in-home
30supportive services specified in subdivision (a) shall be paid by
31the state within 30 days of the receipt of the signed payroll
32timesheet.

33(h) This section does not apply to a contract entered into
34pursuant to Section 12302 or 12302.6 for authorized in-home
35supportive services. Contract rates negotiated pursuant to Section
3612302 or 12302.6 shall be based on costs consistent with a 40-hour
37workweek.

38(i) The state and counties are immune from any liability resulting
39from implementation of this section.

P67   1(j) Any action authorized under this section that is implemented
2in a program authorized pursuant to Section 14132.95, 14132.97,
314132.952, or 14132.956 shall be compliant with federal Medicaid
4requirements, as determined by the State Department of Health
5Care Services.

6(k) Notwithstanding the rulemaking provisions of the
7Administrative Procedure Act (Chapter 3.5 (commencing with
8Section 11340) of Part 1 of Division 3 of Title 2 of the Government
9Code), the State Department of Social Services and the State
10Department of Health Care Services may implement, interpret, or
11make specific this section by means of all-county letters or similar
12instructions, without taking any regulatory action.

13(l) (1) This section shall become operative only when the
14regulatory amendments made by RIN 1235-AA05 to Part 552 of
15Title 29 of the Code of Federal Regulations are deemed effective,
16either on the date specified in RIN 1235-AA05 or at a later date
17specified by the Federal Department of Labor, whichever is later.

18(2) If the regulatory amendments described in paragraph (1)
19become only partially effective by the date specified in paragraph
20(1), this section shall become operative only for those persons for
21whom federal financial participation is available as of that date.

22begin insert

begin insertSEC. 12.end insert  

end insert
begin insert

The Legislature finds and declares that the number
23of unaccompanied, undocumented minors in California has surged
24in recent months, often overwhelming the agencies and
25organizations that care for these minors and help to determine
26their immigration status. Legal representation for unaccompanied
27undocumented minors in California is important to assist these
28minors in navigating through federal immigration proceedings as
29well as related state court actions.

end insert
30begin insert

begin insertSEC. 13.end insert  

end insert

begin insertChapter 5.6 (commencing with Section 13300) is
31added to Part 3 of Division 9 of the end insert
begin insertWelfare and Institutions Codeend insertbegin insert,
32to read:end insert

begin insert

33 

34Chapter  begin insert5.6.end insert Legal Counsel for Unaccompanied
35Undocumented Minors
36

 

37

begin insert13300.end insert  

(a) Subject to the availability of funding in the act that
38added this chapter or the annual Budget Act, the department shall
39contract, as described in Section 13301, with qualified nonprofit
40legal services organizations to provide legal services to
P68   1unaccompanied undocumented minors who are transferred to the
2care and custody of the federal Office of Refugee Resettlement and
3who are present in this state.

4(b) Legal services provided in accordance with subdivision (a)
5shall be for the sole purpose of providing legal representation to
6unaccompanied undocumented minors who are in the physical
7custody of the federal Office of Refugee Resettlement or who are
8residing with a family member or other sponsor.

9(c) For purposes of this chapter, the term “unaccompanied
10undocumented minors” means unaccompanied alien children as
11defined in Section 279(g)(2) of Title 6 of the United States Code.

12(d) For purposes of this chapter, the term “legal services”
13includes culturally and linguistically appropriate services provided
14by attorneys, paralegals, interpreters and other support staff for
15state court proceedings, federal immigration proceedings, and
16any appeals arising from those proceedings.

17

begin insert13301.end insert  

Contracts awarded pursuant to Section 13300 shall
18fulfill all of the following:

19(a) Be executed only with nonprofit legal services organizations
20that meet all of the following requirements:

21(1) Have at least three years of experience handling asylum,
22T-Visa, U-Visa, or special immigrant juvenile status cases and
23have represented at least 25 individuals in these matters.

24(2) Have experience in representing individuals in removal
25proceedings and asylum applications.

26(3) Have conducted trainings on these issues for practitioners
27beyond their staff.

28(4) Have experience guiding and supervising the work of
29attorneys whom themselves do not regularly participate in this
30area of the law but nevertheless work pro bono on the types of
31cases described in paragraph (1).

32(5) Are accredited by the Board of Immigration Appeals under
33the United States Department of Justice’s Executive Office for
34Immigration Review or meet the requirements to receive funding
35from the Trust Fund Program administered by the State Bar of
36California.

37(b) Provide for legal services to unaccompanied undocumented
38minors on a fee-per-case basis, as determined by the department,
39which shall include all administrative and supervisory costs and
40court fees.

P69   1(c) Require reporting, monitoring, or audits of services provided,
2as determined by the department.

3(d) Require contractors to coordinate efforts with the federal
4Office of Refugee Resettlement Legal Access Project in order to
5respond to and assist or represent unaccompanied undocumented
6minors who could benefit from the services provided under this
7chapter.

8(e) Require contractors to maintain adequate legal malpractice
9insurance and to indemnify and hold the state harmless from any
10claims that arise from the legal services provided pursuant to this
11chapter.

12

begin insert13302.end insert  

Notwithstanding any other law:

13(a) Contracts awarded pursuant to this chapter shall be exempt
14from the personal services contracting requirements of Article 4
15(commencing with Section 19130) of Chapter 5 of Part 2 of
16 Division 5 of Title 2 of the Government Code.

17(b) Contracts awarded pursuant to this chapter shall be exempt
18from the Public Contract Code and the State Contracting Manual,
19and shall not be subject to the approval of the Department of
20General Services.

21(c) The client information and records of legal services provided
22pursuant to this chapter shall be subject to the requirements of
23Section 10850 and shall be exempt from inspection under the
24California Public Records Act (Chapter 3.5 (commencing with
25Section 6250) of Division 7 of Part 1 of the Government Code).

26(d) The state shall be immune from any liability resulting from
27the implementation of this chapter.

end insert
28

begin deleteSEC. 10.end delete
29begin insertSEC. 14.end insert  

Section 88 of Chapter 29 of the Statutes of 2014 is
30amended to read:

31

SEC. 88.  

(a) Notwithstanding the rulemaking provisions of
32the Administrative Procedure Act (Chapter 3.5 (commencing with
33Section 11340) of Part 1 of Division 3 of Title 2 of the Government
34Code), the department may implement and administer the changes
35made by Sections 1, 64, 67, 68, 69, 70, 72, 73, 74, 75, 77, 79, 80,
3681, 82, and 83 of Chapter 29 of the Statutes of 2014 through
37 all-county letters or similar instructions until regulations are
38adopted.

39(b) The department shall adopt emergency regulations
40implementing these provisions no later than January 1, 2016. The
P70   1 department may readopt any emergency regulation authorized by
2this section that is the same as, or substantially equivalent to, any
3emergency regulation previously adopted pursuant to this section.
4The initial adoption of regulations pursuant to this section and one
5readoption of emergency regulations shall be deemed to be an
6emergency and necessary for the immediate preservation of the
7public peace, health, safety, or general welfare. Initial emergency
8regulations and the one readoption of emergency regulations
9authorized by this section shall be exempt from review by the
10Office of Administrative Law. The initial emergency regulations
11and the one readoption of emergency regulations authorized by
12this section shall be submitted to the Office of Administrative Law
13for filing with the Secretary of State and each shall remain in effect
14for no more than 180 days, by which time final regulations shall
15be adopted.

16begin insert

begin insertSEC. 15.end insert  

end insert
begin insert

The provisions of this act are severable. If any
17provision of this act or its application is held invalid, that invalidity
18shall not affect other provisions or applications that can be given
19effect without the invalid provision or application.

end insert
20begin insert

begin insertSEC. 16.end insert  

end insert
begin insert

The Legislature finds and declares that Section 1 of
21this act, which adds Chapter 7 (commencing with Section 155) to
22Part 1 of Title 1 to the Code of Civil Procedure, imposes a
23limitation on the public’s right of access to the meetings of public
24bodies or the writings of public officials and agencies within the
25meaning of Section 3 of Article I of the California Constitution.
26Pursuant to that constitutional provision, the Legislature makes
27the following findings to demonstrate the interest protected by this
28limitation and the need for protecting that interest:

end insert
begin insert

29In order to protect the privacy interests of those minors who are
30seeking special immigrant juvenile status, it is essential to maintain
31the confidentiality of the records described in Section 1 of this act.

end insert
32begin insert

begin insertSEC. 17.end insert  

end insert
begin insert

Section 7.5 of this bill incorporates amendments to
33Section 1569.682 of the Health and Safety Code proposed by both
34this bill and Assembly Bill 1899. It shall only become operative if
35(1) both bills are enacted and become effective on or before
36January 1, 2015, but this bill becomes operative first, (2) each bill
37amends Section 1569.682 of the Health and Safety Code, and (3)
38this bill is enacted after Assembly Bill 1899, in which case Section
391569.682 of the Health and Safety Code, as amended by Section
407 of this bill, shall remain operative only until the operative date
P71   1of Assembly Bill 1899, at which time Section 7.5 of this bill shall
2become operative.

end insert
3

begin deleteSEC. 11.end delete
4begin insertSEC. 18.end insert  

The amount of one million six hundred eighty-six
5thousand dollars ($1,686,000) is hereby appropriated to the State
6Department of Social Services in augmentation of Item
75180-151-0001 of Section 2.00 of the Budget Act of 2014, for
8Program 25.30 for the Commercially Sexually Exploited Children
9Program, andbegin insert theend insert totalbegin delete theend delete amount appropriated in Item
105180-153-0001 of Section 2.00 of the Budget Act of 2014 is hereby
11reduced by the amount of one million six hundred eighty-six
12thousand dollars ($1,686,000) to offset that appropriation.

13

begin deleteSEC. 12.end delete
14begin insertSEC. 19.end insert  

No appropriation pursuant to Section 15200 of the
15Welfare and Institutions Code is made for purposes of this act.

16

begin deleteSEC. 13.end delete
17begin insertSEC. 20.end insert  

This act is a bill providing for appropriations related
18to the Budget Bill within the meaning of subdivision (e) of Section
1912 of Article IV of the California Constitution, has been identified
20as related to the budget in the Budget Bill, and shall take effect
21immediately.



O

    97