BILL NUMBER: AB 1571 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 22, 2014
INTRODUCED BY Assembly Member Eggman
(Coauthor: Assembly Member Skinner)
(Coauthor: Senator Block)
JANUARY 30, 2014
An act to amend Sections 1569.15 , 1569.355,
and 1569.618 of , and to add Sections 1569.356 and 1569.501 to,
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. 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.
This bill would, among other things, 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 require an
applicant to provide additional information, including, but not
limited to, the applicant's history of substantial
compliance with the requirements imposed under specified facility
licenses or a similarly licensed facility , applicable
state and federal laws and regulations, and requirements governing
the operators of those facilities, and the applicant's prior
history of operating a specified facility in another state
facilities . The bill would also require that
all specified applicant information be cross
checked with the State Department of Public Health to determine if
the applicant has a prior history of operating ,
holding a position in, or having ownership in, 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,
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. by July 1 2015, to post on its
Internet Web site residential care facility for the elderly profiles,
with specified data. 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 or prohibitive
health conditions, or who have dementia. The bill would also
require the department to develop and implement a ratings system by
July 1, 2019, as provided. Because the bill would create a new
crime, it would impose a state-mandated local program.
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.
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.
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.
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. 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.
(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 in
California or any other state 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 elderly or
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 , and the applicant's history of
substantial compliance with the requirements
imposed under that license, applicable state and federal laws and
regulations, and requirements governing the operators of those
facilities.
(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.
(6)
(5) 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).
(7)
(6) Any other information as may be required by the
department for the proper administration and enforcement of this
chapter.
(8)
(7) 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.
(9)
(8) 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.
(10)
(9) 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.
(11)
(10) 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.
(12)
(11) 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.
(13)
(12) Evidence of successfully completing a certified
prelicensure education program pursuant to Section 1569.23.
(14)
(13) 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 disclosed pursuant to paragraph
(4) of subdivision (a) shall be cross checked with the State
Department of Public Health to determine if the applicant has a prior
history of operating , holding a position in, or having
ownership in, any entity specified in paragraph (4) of
subdivision (a) .
(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.
(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.
(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.
(e) (1) The department may
shall deny an application for licensure or
may subsequently revoke a license 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.
(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).
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.
SEC. 2. Section 1569.356 is added to the
Health and Safety Code , to read:
1569.356. (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.
SEC. 3. Section 1569.501 is added to the
Health and Safety Code , immediately following
Section 1569.50 , to read:
1569.501. (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.
SEC. 3. SEC. 4. 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.
SEC. 4. SEC. 5. 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.