Amended in Assembly April 22, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1571

Introduced by Assembly Member Eggman

(Coauthor: Assembly Member Skinner)

(Coauthor: Senator Block)

January 30, 2014

An act to amend Sections 1569.15 begin delete , 1569.355, end delete and 1569.618 of begin insert , and to add Sections 1569.356 and 1569.501 to, end insert the Health and Safety Code, relating to health facilities.

LEGISLATIVE COUNSEL’S DIGEST

AB 1571, as amended, Eggman. Residential care facilities for the elderly: licensing and regulation.

Existing law, the California Residential Care Facilities for the Elderly Act, provides for the licensure of residential care facilities for the elderly by the State Department of Social Services. Existing law requires any person seeking a license for a residential care facility for the elderly to file an application with the department, as specified. begin insert Among other required application information, if the applicant is a firm, association, organization, partnership, business trust, corporation, or company, evidence of reputable and responsible character is required to be submitted as to the members or shareholders thereof, and the person in charge of the residential care facility for the elderly for which the application for issuance of license or special permit is made. end insert

This bill would, among other things, begin insert delete the above requirement to submit evidence of reputable and responsible character as to members or shareholders of a firm, association, organization, partnership, business trust, corporation, or company and the person in charge of the facility, and instead would require the applicant to disclose whether the licensee is a for-profit or not-for-profit provider, the names and license numbers of other facilities owned, managed, or operated by the same licensee, and the names and addresses of any persons or organizations listed as owner of record in the real estate, including the buildings and grounds appurtenant to the buildings. The bill would end insert require an applicant to provide additional information, including, but not limited to, the applicant’s history of begin delete substantial end delete compliance with the requirements imposed under specified facility licenses begin insert or a similarly licensed facility end insert , applicable state and federal laws and regulations, and requirements governing the operators of those begin delete facilities, and the applicant’s prior history of operating a specified facility in another state end delete begin insert facilities end insert . The bill would also require that begin delete all end delete begin insert specified end insert applicant information be cross checked with the State Department of Public Health to determine if the applicant has a prior history of operating begin insert , holding a position in, or having ownership in, end insert specified licensed facilities.

Existing law requires the Director of Social Services to establish an automated license information system on licensees and former licensees of licensed residential care facilities for the elderly. The system is required to maintain a record of any information that may be pertinent for licensure. A violation of the provisions of the act is a crime.

This bill would require the department, among other things, begin delete to develop and establish as consumer information service system to provide updated and accurate information to the general public and consumers regarding residential care facilities for the elderly, as specified. end delete begin insert by July 1 2015, to post on its Internet Web site residential care facility for the elderly profiles, with specified data. end insert The bill would require by July 1, 2019, each licensee of a residential care facility for the elderly to submit a profile of resident characteristics to the department on an annual basis, including, but not limited to, the number of residents in the facility who are bedridden, nonambulatory, receiving hospice care, have one or more allowable health conditions, have one or more restricted begin insert or prohibitive end insert health conditions, or who have dementia. begin insert The bill would also require the department to develop and implement a ratings system by July 1, 2019, as provided. end insert Because the bill would create a new crime, it would impose a state-mandated local program.

begin insert

Existing law authorizes the department to deny any application for a residential care facility for the elderly license or to suspend or revoke those licenses on certain grounds, including, but not limited to, a violation by the licensee of applicable provisions or of the rules and regulations adopted under those provisions, conduct that is inimical to the health, morals, welfare, or safety of either an individual in or receiving services from the facility or the people of the state, or engaging in acts of financial malfeasance concerning the operation of a facility.

end insert begin insert

This bill would require the department to deny an application for licensure or authorize it to subsequently revoke a license on the grounds that the applicant knowingly made a false statement of fact with regard to information that was required by the application for licensure, and would authorize the department to deny an application for licensure or subsequently revoke a license on the grounds that the applicant did not disclose enforcement actions on the application as required. The bill would also authorize the department to deny an application for licensure on the grounds that the applicant has a history of noncompliance with the requirements imposed under specified facility licenses or a similarly licensed facility in another state, applicable state and federal laws and regulations, and the requirements governing the operators of those facilities.

end insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

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

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

SECTION 1.  

Section 1569.15 of the Health and Safety Code
is amended to read:

1569.15.  

(a) Any person seeking a license for a residential
care facility for the elderly under this chapter shall file with the
department, pursuant to regulations, an application on forms
furnished by the department, that shall include, but not be limited
to, all of the following:

(1) Evidence satisfactory to the department of the ability of the
applicant to comply with this chapter and of rules and regulations
adopted under this chapter by the department.

(2) Evidence satisfactory to the department that the applicant
is of reputable and responsible character. The evidence shall
include, but not be limited to, a criminal record clearance pursuant
to Section 1569.17, employment history, and character references.
begin delete If the applicant is a firm, association, organization, partnership,
business trust, corporation, or company, like evidence shall be
submitted as to the members or shareholders thereof, and the person
in charge of the residential care facility for the elderly for which
the application for issuance of license or special permit is made. end delete
begin insert The applicant shall disclose whether the licensee is a for-profit or
not-for-profit provider, the names and license numbers of other
facilities owned, managed, or operated by the same licensee, and
the names and addresses of any persons or organizations listed
as owner of record in the real estate, including the buildings and
grounds appurtenant to the buildings. end insert

(3) Evidence satisfactory to the department that the applicant
has sufficient financial resources to maintain the standards of
service required by regulations adopted pursuant to this chapter.

(4) Disclosure of the applicant’s prior or present service begin insert in
California or any other state end insert as an administrator, general partner,
corporate officer or director of, or as a person who has held or
holds a beneficial ownership of 10 percent or more in, any
residential care facility for the begin delete elderly or end delete begin insert elderly, end insert in any facility
licensed pursuant to Chapter 1 (commencing with Section 1200),
Chapter 2 (commencing with Section 1250), or Chapter 3
(commencing with Section 1500) begin insert , or a similarly licensed facility end insert ,
and the applicant’s history of begin delete substantial end delete compliance with the
requirements imposed under that license, applicable state and
federal laws and regulations, and requirements governing the
operators of those facilities.

begin delete

(5) Prior history of operating any entity specified in paragraph
(4) in any other state, and the applicant’s history of substantial
compliance with that state’s requirements, and applicable federal
laws, regulations, and requirements.

end delete begin delete

(6)

end delete

begin insert (5) end insert  Disclosure of any revocation or other disciplinary action
taken, or in the process of being taken, against a license held or
previously held by the entities specified in paragraph (4).

begin delete

(7)

end delete

begin insert (6) end insert  Any other information as may be required by the department
for the proper administration and enforcement of this chapter.

begin delete

(8)

end delete

begin insert (7) end insert  Following the implementation of Article 7 (commencing
with Section 1569.70), evidence satisfactory to the department of
the applicant’s ability to meet regulatory requirements for the level
of care the facility intends to provide.

begin delete

(9)

end delete

begin insert (8) end insert  Evidence satisfactory to the department of adequate
knowledge of supportive services and other community supports
that may be necessary to meet the needs of elderly residents.

begin delete

(10)

end delete

begin insert (9) end insert  A signed statement that the person desiring issuance of a
license has read and understood the residential care facility for the
elderly statute and regulations.

begin delete

(11)

end delete

begin insert (10) end insert  Designation by the applicant of the individual who shall
be the administrator of the facility, including, if the applicant is
an individual, whether or not the licensee shall also be the
administrator.

begin delete

(12)

end delete

begin insert (11) end insert  Each applicant shall disclose to the department evidence
of the right of possession of the facility at the time the application
is granted, which may be satisfied by the submission of a copy of
applicable portions of a lease agreement or deed of trust. The names
and addresses of any persons or organizations listed as owners of
record in the real estate, including the buildings and the grounds
appurtenant to the buildings, shall be disclosed to the department.

begin delete

(13)

end delete

begin insert (12) end insert   Evidence of successfully completing a certified
prelicensure education program pursuant to Section 1569.23.

begin delete

(14)

end delete

begin insert (13) end insert  For any facility that promotes or advertises or plans to
promote or advertise special care, special programming, or special
environments for persons with dementia, disclosure to the
department of the special features of the facility in its plan of
operation.

(b) All applicant information begin insert disclosed pursuant to paragraph
(4) of subdivision (a) end insert shall be cross checked with the State
Department of Public Health to determine if the applicant has a
prior history of operating begin insert , holding a position in, or having
ownership in, end insert any entity specified in paragraph (4) begin insert of subdivision
(a) end insert .

(c) Failure of the applicant to cooperate with the licensing
agency in the completion of the application shall result in the denial
of the application. Failure to cooperate means that the information
described in this section and in the regulations of the department
has not been provided, or has not been provided in the form
requested by the licensing agency, or both.

begin delete

(d) The information required pursuant to this section, other than
individuals’ social security numbers, shall be made available to
the public upon request, and shall be included in the department’s
public file regarding the facility and in an online inquiry system
accessible through the department’s Internet Web site.

end delete begin insert

(d) The information required by this section shall be provided
to the department upon initial application for licensure, and any
change in the information shall be provided to the department
within 30 calendar days of that change.

end insert

(e)  begin insert (1) end insert begin insert   end insert The department begin delete may end delete begin insert shall end insert deny an application for
licensure begin insert or may subsequently revoke a license end insert under this chapter
on the grounds that the applicant knowingly made a false statement
of fact with regard to information that was required by the
application for licensure.

begin insert

(2) The department may deny an application for licensure or
may subsequently revoke a license under this chapter on the
grounds that the applicant did not disclose enforcement actions
on the application as required by paragraph (5) of subdivision
(a).

end insert

begin delete

SEC. 2.  

Section 1569.355 of the Health and Safety Code is
amended to read:

1569.355.  

(a) The director shall establish and maintain an
automated license information system on licensees and former
licensees of licensed residential care facilities for the elderly. The
system shall maintain a record of any information that may be
pertinent for licensure under this chapter. This information shall
include, but is not limited to, the licensees’ addresses, telephone
numbers, violations of any laws related to the care of clients in a
residential care facility for the elderly, licenses, and revocation of
any licenses, including any prior health facility licenses and prior
licenses for residential care facilities for the elderly.

(b) The department shall develop and establish a consumer
information service system to provide updated and accurate
information to the general public and consumers regarding
residential care facilities for the elderly in their communities. The
department shall make public information from the consumer
information system available in electronic format to individuals
or organizations.

(c) By July 1, 2015, the department shall establish an online
inquiry system accessible through an Internet Web site and post
residential care facility for the elderly profiles, with data, including,
but not limited to, all of the following:

(1) The name, address, and telephone number of the licensed
providers, including the owner and the licensee.

(2) The number of licensed beds in the facility, including the
number of nonambulatory beds.

(3) Whether the facility is permitted to provide hospice care
services.

(4) Whether the facility has a special care unit or program for
people with Alzheimer’s disease and other dementias or has a
delayed egress or secured perimeter system in place.

(5) Aggregate information on each facility, including, for each
of the previous five years, the number of complaints filed against
the facility, the number of deficiencies, enforcement actions
resulting in fines against the facility, and the amount of the fines
assessed and the amount collected.

(d) By July 1, 2016, the profile for each facility shall include
all of the following:

(1) Department actions, including license suspensions,
revocations, probations, settlements, stipulations, accusations,
audits, compliance conferences and compliance plans or other
administrative or legal actions, and when the administrative or
legal action was taken and will be terminated.

(2) Any enforcement action resulting in a fine, stating the nature
of the regulatory violation, the amount of the fine, and the amount
collected.

(3) A history of inspections and department actions for the last
five years.

(e) By July 1, 2017, the profile of each facility shall include all
of the following:

(1) Information regarding complaints, including the nature of
the complaint, results of the complaint investigation, actions taken,
and the dates that the complaint was received, investigated, and
closed.

(2) Information regarding violations assessed, including the
type of deficiency, status of the violation, the facility’s plan of
correction, when the corrections were completed, information as
to whether an appeal has been filed, and whether fines were
assessed and the amount collected.

(3) Posting of the facility inspection reports and plans of
correction, including findings of the most recent inspection report
and the date that the inspection was conducted.

(f) Any resolution of an appeal pertaining to a violation or
complaint shall be updated in a timely manner.

(g) By July 1, 2018, the profile shall include all of the following:

(1) Facility reports of any alleged elder abuse and suspicious
death, the date of the report, and whether these reports resulted in
an investigation, including the date and results of the investigation.

(2) Whether the facility or licensee has ever reported any of the
events listed in subdivision (a) of Section 1569.686 to the
department.

(3) Ownership information, including, but not limited to,
whether the licensee is a for-profit or not-for-profit provider, the
names and license numbers of other facilities owned, managed, or
operated by the same licensee, and the names and addresses of any
persons or organizations listed as owners of record of the real
estate, including the buildings and the grounds appurtenant to the
buildings. The information required by this paragraph shall be
provided to the department upon initial application for licensure,
and any change in the information shall be provided to the
department within 30 calendar days of that change.

(4) Information in this subdivision shall be updated on a regular
basis but no less frequently than quarterly.

(h) By July 1, 2019, each licensee of a residential care facility
for the elderly shall submit a profile of resident characteristics to
the department on an annual basis, including, but not limited to,
the number of residents in the facility who are bedridden,
nonambulatory, receiving hospice care, have one or more allowable
health conditions, have one or more restricted health conditions,
or who have dementia. The department shall include this
information on the facility profile annually.

(i) By July 1, 2019, the department shall develop and implement
a rating system.

(j) It is the intent of the Legislature that the department, in
developing and establishing the system pursuant this section, shall
work with stakeholder groups, including consumer organizations.

(k) The department shall interface the consumer information
service system with its automated license information system on
licensees and former licensees of licensed residential care facilities
for the elderly.

(l) In implementing this section, the department shall ensure
the confidentiality of personal and identifying information of
residents and employees and shall not disclose this information
through the consumer information service system developed
pursuant to this section.

end delete

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 1569.356 is added to the end insert begin insert Health and Safety
Code end insert begin insert , to read: end insert

begin insert

begin insert 1569.356. end insert   

(a) By July 1, 2015, the department shall post on
its Internet Web site residential care facility for the elderly profiles,
with data, including, but not limited to, all of the following:

(1) The name, address, and telephone number of the licensed
providers, including the owner and the licensee, the number of
licensed beds in the facility, including the number of
nonambulatory beds, whether the facility is permitted to provide
hospice care services, whether the facility has a special care unit
or program for people with Alzheimer’s disease and other
dementias and has a delayed egress or secured perimeter system
in place, and information required pursuant to Section 1569.15.

(2) Aggregate information on each facility, including, for each
of the previous five years, the number of complaints filed against
the facility, the number of deficiencies, enforcement actions
resulting in fines against the facility, and the amount of the fines
assessed and the amount collected.

(3) Department actions, including license suspensions,
revocations, probations, settlements, stipulations, accusations,
audits, noncompliance conference summaries or other
administrative or legal actions, and when the administrative or
legal action was taken and will be terminated.

(b) By July 1, 2017, the profile of each facility shall include all
of the following:

(1) Information regarding complaints, including the nature of
the complaint, results of the complaint investigation, actions taken,
and the dates that the complaint was received, investigated, and
closed.

(2) Information regarding violations assessed, including the
type of deficiency, status of the violation, the facility’s plan of
correction, when the corrections were completed, information as
to whether an appeal has been filed, whether fines were assessed
and the amount, collected, and whether a deficiency was dismissed
on appeal.

(3) Posting of the facility inspection reports and plans of
correction, including findings of the most recent inspection report
and the date that the inspection was conducted.

(c) Any resolution of an appeal pertaining to a violation or
complaint shall be updated in a timely manner.

(d) By July 1, 2019, each licensee of a residential care facility
for the elderly shall submit a profile of resident characteristics to
the department on an annual basis, including, but not limited to,
the number of residents in the facility who are bedridden,
nonambulatory, receiving hospice care, have one or more
allowable health conditions, have one or more restricted or
prohibitive health conditions, or have dementia. The department
shall include this information on the facility profile and on the
online consumer information system annually.

(e) By July 1, 2019, the department shall develop and implement
a rating system designed to allow consumers to compare residential
care facilities for the elderly.

(1) At a minimum, the ratings system shall be updated to reflect
the most recent inspection report, as required by Section 1569.33.

(2) The ratings shall be based on a facility’s inspection, and
other factors as determined by the department in consultation with
stakeholders.

(f) It is the intent of the Legislature that the department, in
developing and establishing the system pursuant this section, shall
work with stakeholder groups, including consumer organizations.

(g) In implementing this section, the department shall ensure
the confidentiality of personal and identifying information of
residents and employees and shall not disclose this information
through the consumer information service system developed
pursuant to this section.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 1569.501 is added to the end insert begin insert Health and Safety
Code end insert begin insert , end insert immediately following Section 1569.50 begin insert , to read: end insert

begin insert

begin insert 1569.501. end insert   

(a) The department may deny an application for
licensure under this chapter on the grounds that the applicant has
a history of noncompliance with the requirements imposed upon
any residential care facility for the elderly license, any facility
licensed pursuant to Chapter 1 (commencing with Section 1200),
Chapter 2 (commencing with Section 1250), or Chapter 3
(commencing with Section 1500), or a similarly licensed facility
in another state, applicable state and federal laws and regulations,
and the requirements governing the operators of those facilities.

(b) This section applies to an applicant that is or was an
administrator, general partner, corporate officer or director of,
or is a person who has held or holds a beneficial ownership of 10
percent or more in, any residential care facility for the elderly, in
any facility licensed pursuant to Chapter 1 (commencing with
Section 1200), Chapter 2 (commencing with Section 1250), or
Chapter 3 (commencing with Section 1500), or a similarly licensed
facility in another state.

end insert

begin delete SEC. 3. end delete
begin insert SEC. 4. end insert   

Section 1569.618 of the Health and Safety Code is
amended to read:

1569.618.  

(a)  The administrator designated by the licensee
pursuant to paragraph (11) of subdivision (a) of Section 1569.15
shall be present at the facility during normal working hours. A
facility manager designated by the licensee with notice to the
department, shall be responsible for the operation of the facility
when the administrator is temporarily absent from the facility.

(b)  “Facility manager” means a person on the premises with
the authority and responsibility necessary to manage and control
the day-to-day operation of a residential care facility for the elderly
and supervise the clients. The facility manager, licensee, and
administrator, or any combination thereof, may be the same person
provided he or she meets all applicable requirements. If the
administrator is also the facility manager for the same facility, he
or she shall be limited to the administration and management of
only one facility.

begin delete SEC. 4. end delete
begin insert SEC. 5. end insert   

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.