Amended in Assembly May 23, 2014

Amended in Assembly April 22, 2014

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 Sections 1569.19 begin delete , 1569.35, end delete and 1569.50 of begin delete , and to add Section 1569.346 to, end delete the Health and Safety Code, relating to residential care facilities.

LEGISLATIVE COUNSEL’S DIGEST

AB 1899, as amended, Brown. Residential care facilities for the elderly.

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.

Existing law sets forth the qualifications of a licensee and requires a license to be forfeited by operation of law when the licensee abandons the facility. Existing law also authorizes the department to begin insert deny an application for, or to end insert 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 Existing law authorizes a person whose license has been revoked to petition the department for reinstatement of the license after one year has elapsed since the revocation. Under existing law, if an application for a license indicates that the applicant was previously issued a license to operate a residential care facility for the elderly or specified other licenses, and that license was revoked within the last 2 years, the department is required to cease reviewing the application until 2 years has elapsed since the revocation.

This bill would make a person whose license is revoked or forfeited for abandonment of the facility ineligible for reinstatement of the license.

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The bill would also 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 residential care facilities for the elderly. 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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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

SECTION 1.  

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

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. A license forfeited
pursuant to this subdivision shall not be eligible for reinstatement
on or after January 1, 2015.

begin delete

SEC. 2.  

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

1569.346.  

(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.

SEC. 3.  

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

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, including through the
telephone hotline and Internet Web site established under Section
1569.346.

(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.

end delete

begin delete SEC. 4. end delete
begin insert SEC. 2. end insert   

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

1569.50.  

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

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

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

(3) 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 of California.

(4) 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.

(5) 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.

(b) The director may temporarily suspend a license, prior to a
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.

(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.