Amended in Assembly August 12, 2014

Senate Bill No. 873

Introduced by Committee on Budget and Fiscal Review

January 9, 2014

begin delete An act relating to the Budget Act of 2014. end delete begin insert An act to 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 of 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. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 873, as amended, Committee on Budget and Fiscal Review. begin delete Budget Act of 2014. end delete begin insert Human services. end insert

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(1) 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.

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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.

end insert begin insert

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.

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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.

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(2) 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.

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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.

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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.

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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.

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(3) 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.

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

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(4) 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.

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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, the first $50 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.

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(5) 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.

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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.

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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.

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(6) Existing law authorizes the State Department of Social Services to implement specified provisions of the 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.

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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.

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(7) 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 child welfare case reviews.

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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.

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

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

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This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2014.

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

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

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begin insert SECTION 1. end insert   

end insert

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

1546.1.  

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

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

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

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

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

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

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

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

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

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

(B) The department approves a new temporary manager.

(C) A new operator is licensed.

(D) The department closes the facility.

(E) A hearing or court order ends the temporary manager
appointment, including the appointment of a receiver under Section
1546.2.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(m) Appointment of a temporary manager under this section
does not relieve the licensee of any responsibility for the care and
supervision of clients under this chapter. The licensee, even if the
license is deemed surrendered or the facility abandoned, shall be
required to reimburse the department for all costs associated with
operation of the facility during the period the temporary manager
is in place that are not accounted for by using facility revenues or
for the relocation of clients handled by the department if the
licensee fails to comply with the relocation requirements of Section
1556 when required by the department to do so. If the licensee
fails to reimburse the department under this section, then the
department, along with using its own remedies available under
this chapter, may request that the Attorney General’s office, the
city attorney’s office, or the local district attorney’s office seek
any available criminal, civil, or administrative remedy, including,
but not limited to, injunctive relief, restitution, and damages in the
same manner as provided for in Chapter 5 (commencing with
Section 17200) of Part 2 of Division 7 of the Business and
Professions Code.

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

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

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

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

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

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

begin insert

begin insert SEC. 2. end insert   

end insert

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

1546.2.  

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

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

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

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

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

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

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

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

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

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

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

(f) A receiver appointed pursuant to this section:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(E) The recommendations and reports of the receiver.

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

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

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

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

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

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

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

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

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

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

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

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

(2) All governmental immunities otherwise applicable to the
State of California shall also apply in the use of a receiver in the
operation if a facility pursuant to this section.

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

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

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

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

begin insert

begin insert SEC. 3. end insert   

end insert

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

1569.481.  

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

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

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

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

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

(2) The licensee is unwilling or unable to comply with the
requirements of Section 1569.525 or the requirements of Section
1569.682 regarding the safe and orderly relocation of residents
when ordered to do so by the department or when otherwise
required by law.

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

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

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

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

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

(B) The department approves a new temporary manager.

(C) A new operator is licensed.

(D) The department closes the facility.

(E) A hearing or court order ends the temporary manager
appointment, including the appointment of a receiver under Section
1569.482.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

begin insert

begin insert SEC. 4. end insert   

end insert

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

1569.482.  

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

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

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

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

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

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

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

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

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

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

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

(f) A receiver appointed pursuant to this section:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(E) The recommendations and reports of the receiver.

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

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

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

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

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

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

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

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

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

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

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

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

(2) All governmental immunities otherwise applicable to the
State of California shall also apply in the use of a receiver in the
operation if a facility pursuant to this section.

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

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

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

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

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 1569.682 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

1569.682.  

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

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

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

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

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

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

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

(C) The relocation evaluation.

(D) A list of referral agencies.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(e) A resident of a residential care facility for the elderly covered
under this section, may bring a civil action against any person,
firm, partnership, or corporation who owns, operates, establishes,
manages, conducts, or maintains a residential care facility for the
elderly who violates the rights of a resident, as set forth in this
section. Any person, firm, partnership, or corporation who owns,
operates, establishes, manages, conducts, or maintains a residential
care facility for the elderly who violates this section shall be
responsible for the acts of the facility’s employees and shall be
liable for costs and attorney’s fees. Any such residential care
facility for the elderly may also be enjoined from permitting the
violation to continue. The remedies specified in this section shall
be in addition to any other remedy provided by law.

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

begin insert

begin insert SEC. 6. end insert   

end insert

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

11461.3.  

(a) The Approved Relative Caregiver Funding Option
Program is hereby established for the purpose of making the
amount paid to approved 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. This is an optional program for
counties choosing to participate, and in so doing, participating
counties agree to the terms of this section as a condition of their
participation. It is the intent of the Legislature that the funding
described in paragraph (1) of subdivision (e) for the Approved
Relative Caregiver Funding Option Program be appropriated, and
available for use from January through December of each year,
unless otherwise specified.

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

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

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

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

(B) The child is described by subdivision (b), (c), or (e) of
Section 11401 begin delete and is not eligible for AFDC-FC pursuant to
subdivision (a) of Section 11404. end delete begin insert and the county welfare
department or the county probation department is responsible for
the placement and care of the child. end insert

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

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

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

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

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

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

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

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

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

(A) The applicable regional per-child CalWORKs begin delete grant from
federal funds received as part of the TANF block grant program. end delete
begin insert grant. end insert

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

(I) The sum of thirty million dollars ($30,000,000) from the
General Fund for the period January 1, 2015 through December
31, 2015.

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

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

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

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

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

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

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

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

(h) Prior to referral of any individual or recipient, or that
person’s case, to the local child support agency for child support
services pursuant to Section 17415 of the Family Code, the county
human services agency shall determine if an applicant or recipient
has good cause for noncooperation, as set forth in Section
11477.04. If the applicant or recipient claims good cause exception
at any subsequent time to the county human services agency or
the local child support agency, the local child support agency shall
suspend child support services until the county social services
agency determines the good cause claim, as set forth in Section
11477.04. If good cause is determined to exist, the local child
support agency shall suspend child support services until the
applicant or recipient requests their resumption, and shall take
other measures that are necessary to protect the applicant or
recipient and the children. If the applicant or recipient is the parent
of the child for whom aid is sought and the parent is found to have
not cooperated without good cause as provided in Section
11477.04, the applicant’s or recipient’s family grant shall be
reduced by 25 percent for the time the failure to cooperate lasts.

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

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

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

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 11462.04 of the end insert begin insert Welfare and Institutions Code end insert
begin insert is amended to read: end insert

11462.04.  

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

(1) A new program.

(2) A new provider.

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

(4) A program capacity increase.

(5) A program reinstatement.

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

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

begin insert

begin insert SEC. 8. end insert   

end insert

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

11477.  

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

(a) (1) Do either of the following:

(i) For applications received before October 1, 2009, assign to
the county 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, not exceeding the total amount of
cash assistance provided to the family under this chapter. Receipt
of public assistance under this chapter shall operate as an
assignment by operation of law. An assignment of support rights
to the county shall also constitute an assignment to the state. If
support rights are assigned pursuant to this subdivision, the
assignee may become an assignee of record by the local child
support agency or other public official filing with the court clerk
an affidavit showing that an assignment has been made or that
there has been an assignment by operation of law. This procedure
does not limit any other means by which the assignee may become
an assignee of record.

(ii) For applications received on or after October 1, 2009, assign
to the county 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. The assignment shall
apply only to support that accrues during the period of time that
the applicant is receiving assistance under this chapter, and shall
not exceed the total amount of cash assistance provided to the
family under this chapter. Receipt of public assistance under this
chapter shall operate as an assignment by operation of law. An
assignment of support rights to the county shall also constitute an
assignment to the state. If support rights are assigned pursuant to
this subdivision, the assignee may become an assignee of record
by the local child support agency or other public official filing
with the court clerk an affidavit showing that an assignment has
been made or that there has been an assignment by operation of
law. This procedure does not limit any other means by which the
assignee may become an assignee of record.

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

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

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

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

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

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

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

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

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

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

(b) (1) 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, unless the applicant or recipient
qualifies for a good cause exception pursuant to Section 11477.04.
The granting of aid shall not be delayed or denied if the applicant
is otherwise eligible, if the applicant completes the necessary forms
and agrees to cooperate with the local child support agency in
securing support and determining paternity, if applicable. The local
child support agency shall have staff available, in person or by
telephone, at all county welfare offices and shall conduct an
interview with each applicant to obtain information necessary to
establish paternity and establish, modify, or enforce a support order
at the time of the initial interview with the welfare office. The local
child support agency shall make the determination of cooperation.
If the applicant or recipient attests under penalty of perjury that
he or she cannot provide the information required by this
subdivision, the local child support agency shall make a finding
regarding whether the individual could reasonably be expected to
provide the information before the local child support agency
determines whether the individual is cooperating. In making the
finding, the local child support agency shall consider all of the
following:

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

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

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

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

(2) Cooperation includes all of the following:

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

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

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

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

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

(c)  begin insert (1) end insert begin insert   end insert This section shall not apply if all of the adults are
excluded from the assistance unit pursuant to Section 11251.3,
11454, or 11486.5.

begin delete

(d)

end delete

begin insert (2) end insert  It is the intent of the Legislature that the regular receipt of
child support in the preceding reporting period be considered in
determining reasonably anticipated income for the following
reporting period.

begin insert

(3) In accordance with Sections 11265.2 and 11265.46, if the
income of an assistance unit described in paragraph (1) includes
reasonably anticipated income derived from child support, the
first fifty dollars ($50) 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.

end insert

begin insert

begin insert SEC. 9. end insert   

end insert

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

12300.4.  

(a) Notwithstanding any other law, including, but
not limited to, Chapter 10 (commencing with Section 3500) of
Division 4 of Title 1 of the Government Code and Title 23
(commencing with Section 110000) of the Government Code, a
recipient who is authorized to receive in-home supportive services
pursuant to this article, or Section 14132.95, 14132.952, or
14132.956, administered by the State Department of Social
Services, or waiver personal care services pursuant to Section
14132.97, administered by the State Department of Health Care
Services, or any combination of these services, shall direct these
authorized services, and the authorized services shall be performed
by a provider or providers within a workweek and in a manner
that complies with the requirements of this section.

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

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

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

(B) Travel time as defined in subdivision (f), only if federal
financial participation is not available to compensate for that travel
time. If federal financial participation is available for travel time
as defined in subdivision (f), the travel time shall not be included
in the calculation of the total weekly begin delete authorized hours of services. end delete
begin insert hours worked within a workweek. end insert

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

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

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

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

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

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

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

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

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

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

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

begin insert

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

end insert

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

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

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

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

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

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

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

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

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

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

(j) Any action authorized under this section that is implemented
in a program authorized pursuant to Section 14132.95, 14132.97,
14132.952, or 14132.956 shall be compliant with federal Medicaid
requirements, as determined by the State Department of Health
Care Services.

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

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

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

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 88 of Chapter 29 of the Statutes of 2014 is
amended to read: end insert

SEC. 88.  

(a) Notwithstanding the rulemaking provisions of
the Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code), the department may implement and administer the changes
made by Sections 1, 64, 67, 68, 69, 70, 72, 73, 74, 75, 77, 79, 80,
begin delete and 81 of this act end delete begin insert 81, 82, and 83 of Chapter 29 of the Statutes of
2014 end insert through all-county letters or similar instructions until
regulations are adopted.

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

begin insert

begin insert SEC. 11. end insert   

end insert begin insert

The amount of one million six hundred eighty-six
thousand dollars ($1,686,000) is hereby appropriated to the State
Department of Social Services in augmentation of Item
5180-151-0001 of Section 2.00 of the Budget Act of 2014, for
Program 25.30 for the Commercially Sexually Exploited Children
Program, and the total amount appropriated in Item
5180-153-0001 of Section 2.00 of the Budget Act of 2014 is hereby
reduced by the amount of one million six hundred eighty-six
thousand dollars ($1,686,000) to offset that appropriation.

end insert

begin insert

begin insert SEC. 12. end insert   

end insert

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

begin insert

begin insert SEC. 13. end insert   

end insert begin insert

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

end insert

begin delete

SECTION 1.  

It is the intent of the Legislature to enact statutory
changes relating to the Budget Act of 2014.

end delete