Amended in Assembly March 24, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1899

Introduced by Assembly Member Brown

February 19, 2014

An act to amend begin delete Section 1520 end delete begin insert Sections 1569.19, 1569.35, and 1569.50 end insert of, and to add Section begin delete 1538.4 end delete begin insert 1569.346 end insert to, the Health and Safety Code, relating to residential care facilities.

LEGISLATIVE COUNSEL’S DIGEST

AB 1899, as amended, Brown. Residential care facilities for the begin delete elderly: quality of care. end delete begin insert elderly. end insert

Existing law, the California Residential Care Facilities for the Elderly Act, provides for the licensure and regulation of residential care facilities for the elderly by the State Department of Social Services. begin delete A violation of these provisions is punishable as a misdemeanor. end delete

Existing law sets forth the qualifications of a licensee begin insert and requires a license to be forfeited by operation of law when the licensee abandons the facility. Existing law also authorizes the department to suspend or revoke a license upon specified grounds, including conduct inimical to the health, morals, welfare, or safety of an individual in or receiving services from a facility. Existing law authorizes a person whose license has been revoked to petition the department for reinstatement of the license after one year has elapsed since the revocation end insert .

This bill would make a person begin delete who has had his or her previous end delete begin insert whose end insert license begin insert is end insert revoked begin insert or forfeited end insert for abandonment of the facility ineligible for begin delete licensure end delete begin insert reinstatement of the license end insert for a period of 10 years following the revocation begin insert or forfeiture end insert . begin delete Because a violation of this provision could be a crime, the bill would impose a state-mandated local program. end delete

begin delete

This

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begin insert The end insert bill would begin insert also end insert require the Director of Social Services to establish and maintain a telephone hotline and an Internet Web site dedicated for the purpose of receiving complaints regarding begin delete community care facilities end delete begin insert residential care facilities for the elderly end insert . The bill would require the Internet Web site to include a listing, available to the public, of all final actions resulting in citation, suspension, or revocation taken against each licensee.

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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.

end delete begin delete

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

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete yes end delete begin insert no end insert .

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 1569.19 of the end insert begin insert Health and Safety Code end insert
begin insert is amended to read: end insert

1569.19.  

A license shall be forfeited by operation of law prior
to its expiration date when one of the following occurs:

(a) The licensee sells or otherwise transfers the facility or facility
property, except when change of ownership applies to transferring
of stock when the facility is owned by a corporation and when the
transfer of stock does not constitute a majority change in
ownership. The sale of a facility shall be subject to the requirements
of this chapter.

(b) The licensee surrenders the license to the department.

(c) The licensee moves a facility from one location to another.
The department shall develop regulations to ensure that the
facilities are not charged a full licensing fee and do not have to
complete the entire application process when applying for a license
for the new location.

(d) The licensee is convicted of an offense specified in Section
220, 243.4, or 264.1, or paragraph (1) of Section 273a, Section
273d, 288, or 289 of the Penal Code, or is convicted of another
crime specified in subdivision (c) of Section 667.5 of the Penal
Code.

(e) The licensee dies. When a licensee dies, the continued
operation shall be subject to the requirements of Section 1569.193.

(f) The licensee abandons the facility. begin insert A license forfeited
pursuant to this subdivision shall not be eligible for reinstatement
on or after January 1, 2015, until 10 years have elapsed since the
forfeiture. end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 1569.346 is added to the end insert begin insert Health and Safety
Code end insert begin insert , to read: end insert

begin insert

begin insert 1569.346. end insert   

(a) The director shall establish and maintain a
telephone hotline and an Internet Web site dedicated for the
purpose of receiving complaints from members of the public
regarding residential care facilities for the elderly.

(b) The Internet Web site established under subdivision (a) shall
also include a listing, available to the public, of all final actions
resulting in citation, suspension, or revocation taken against each
licensee, listed both by the licensee’s name and by the facility’s
name. The actions shall be listed in a manner that protects the
privacy of the residents and the confidentiality of resident
information.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 1569.35 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

1569.35.  

(a) Any person may request an inspection of any
residential care facility for the elderly in accordance with this
chapter by transmitting to the department notice of an alleged
violation of applicable requirements prescribed by statutes or
regulations of this state, including, but not limited to, a denial of
access of any person authorized to enter the facility pursuant to
Section 9722 of the Welfare and Institutions Code. A complaint
may be made either orally or in writing begin insert , including through the
telephone hotline and Internet Web site established under Section
1569.346 end insert .

(b) The substance of the complaint shall be provided to the
licensee no earlier than at the time of the inspection. Unless the
complainant specifically requests otherwise, neither the substance
of the complaint provided the licensee nor any copy of the
complaint or any record published, released, or otherwise made
available to the licensee shall disclose the name of any person
mentioned in the complaint except the name of any duly authorized
officer, employee, or agent of the department conducting the
investigation or inspection pursuant to this chapter.

(c) Upon receipt of a complaint, other than a complaint alleging
denial of a statutory right of access to a residential care facility for
the elderly, the department shall make a preliminary review and,
unless the department determines that the complaint is willfully
intended to harass a licensee or is without any reasonable basis, it
shall make an onsite inspection within 10 days after receiving the
complaint except where the visit would adversely affect the
licensing investigation or the investigation of other agencies,
including, but not limited to, law enforcement agencies. In either
event, the complainant shall be promptly informed of the
department’s proposed course of action.

(d) Upon receipt of a complaint alleging denial of a statutory
right of access to a residential facility for the elderly, the
department shall review the complaint. The complainant shall be
notified promptly of the department’s proposed course of action.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 1569.50 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

1569.50.  

begin insert (a) end insert begin insert   end insert The department may deny an application for a
license or may suspend or revoke begin delete any end delete begin insert a end insert license issued under this
chapter upon any of the following grounds and in the manner
provided in this chapter:

begin delete

(a)

end delete

begin insert (1) end insert  Violation by the licensee of this chapter or of the rules and
regulations adopted under this chapter.

begin delete

(b)

end delete

begin insert (2) end insert  Aiding, abetting, or permitting the violation of this chapter
or of the rules and regulations adopted under this chapter.

begin delete

(c)

end delete

begin insert (3) end insert  Conduct begin delete which end delete begin insert that end insert 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 of California.

begin delete

(d)

end delete

begin insert (4) end insert  The conviction of a licensee, or other person mentioned in
Section 1569.17 at any time before or during licensure, of a crime
as defined in Section 1569.17.

begin delete

(e)

end delete

begin insert (5) end insert  Engaging in acts of financial malfeasance concerning the
operation of a facility, including, but not limited to, improper use
or embezzlement of client moneys and property or fraudulent
appropriation for personal gain of facility moneys and property,
or willful or negligent failure to provide services for the care of
clients.

begin delete

The

end delete

begin insert (b) end insert begin insert   end insert begin insert The end insert director may temporarily suspend begin delete any end delete begin insert a end insert license, prior
to begin delete any end delete begin insert a end insert hearing when, in the opinion of the director, the action is
necessary to protect residents or clients of the facility from physical
or mental abuse, abandonment, or any other substantial threat to
health or safety. The director shall notify the licensee of the
temporary suspension and the effective date of the temporary
suspension and at the same time shall serve the provider with an
accusation. Upon receipt of a notice of defense to the accusation
by the licensee, the director shall, within 15 days, set the matter
for hearing, and the hearing shall be held as soon as possible but
not later than 30 days after receipt of the notice. The temporary
suspension shall remain in effect until the time the hearing is
completed and the director has made a final determination on the
merits. However, the temporary suspension shall be deemed
vacated if the director fails to make a final determination on the
merits within 30 days after the original hearing has been completed.

begin insert

(c) A license that is revoked pursuant to this section due to the
licensee’s abandonment of the facility shall not be eligible for
reinstatement on or after January 1, 2015, until 10 years have
elapsed since the revocation.

end insert

begin delete

SECTION 1.  

Section 1520 of the Health and Safety Code is
amended to read:

1520.  

Any person desiring issuance of a license for a
community care facility or a special permit for specialized services
under this chapter shall file with the department, pursuant to
regulations, an application on forms furnished by the department,
which shall include, but not be limited to:

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

(b)  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 1522, 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 community care facility for which application for
issuance of license or special permit is made.

(c)  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.

(d)  Disclosure of the applicant’s prior or present service 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 community care facility or in any facility
licensed pursuant to Chapter 1 (commencing with Section 1200)
or Chapter 2 (commencing with Section 1250).

(e)  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 subdivision (d). A
person who has had his or her previous license revoked for
abandonment of the facility shall be ineligible for licensure for a
period of 10 years following the revocation.

(f)  A signed statement that the person desiring issuance of a
license or special permit has read and understood the community
care facility licensure statute and regulations that pertain to the
applicant’s category of licensure.

(g)  Any other information that may be required by the
department for the proper administration and enforcement of this
chapter.

(h)  In implementing this section, the department shall give due
consideration to the functions of each separate licensing category.

(i)  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 regulations of the department has
not been provided, or not provided in the form requested by the
licensing agency, or both.

SEC. 2.  

Section 1538.4 is added to the Health and Safety Code,
to read:

1538.4.  

(a) The director shall establish and maintain a
telephone hotline and an Internet Web site dedicated for the
purpose of receiving complaints from members of the public
regarding community care facilities.

(b) The Internet Web site shall also include a listing, available
to the public, of all final actions resulting in citation, suspension,
or revocation taken against each licensee, aggregated both by the
licensee’s name and by the facility’s name. The actions shall be
listed in a manner that protects the privacy of the residents and the
confidentiality of resident information.

SEC. 3.  

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

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