Amended in Senate February 14, 2014

Senate Bill No. 894

Introduced by Senator Corbett

January 13, 2014

An act to amend Section 1569.525 of the Health and Safety Code, relating to residential care facilities for the elderly.

LEGISLATIVE COUNSEL’S DIGEST

SB 894, as amended, Corbett. Residential care facilities for the elderly: revocation of license.

Existing law, the California Residential Care Facilities for the Elderly Act, provides for the licensure and regulation of residential care facilities for the elderly. These provisions are administered by the State Department of Social Services. Violation of these provisions is a misdemeanor.

Existing law requires, if the Director of Social Services determines that it is necessary to temporarily suspend a license of a residential care facility for the elderly in order to protect the residents or clients of the facility from physical or mental abuse, abandonment, or any other substantial threat to health or safety, the department to make every effort to minimize trauma for the residents. Existing law authorizes and requires the department, in the event of a temporary license suspension or revocation, to comply with specified procedures relating to the transfer of residents, including requiring the department to contact and work with any local agency that may have placement or advocacy responsibility for the residents of a residential care facility for the elderly, as specified, to locate alternative placement sites and contact responsible relatives. Existing law requires, upon an order to revoke a license, a licensee to provide a 60-day written notice of license revocation that may lead to closure to the resident and the resident’s responsible person within 24 hours of receipt of the department’s order of revocation. Existing law requires a resident who transfers from the facility during that 60-day period to be entitled to a refund of preadmission fees in accordance with specified provisions.

This bill would require, if the Director of Social Services determines at any time during relocation of residents that it is necessary to protect the residents or clients of the facility from physical or mental abuse, abandonment, or any other substantial threat to health or safety, the department to take any necessary action to minimize trauma for the residents, including, but not limited to, preparing the residents’ records and medications for transfer and checking in on the status of all transferred residents within 24 hours of transfer. The bill would additionally require the department to contact the Office of the State begin delete Long-term end delete begin insert Long-Term end insert Care Ombudsman to locate alternative placement sites for residents. The bill would also require, upon an order to suspend a license, a licensee to provide a 60-day written notice of license suspension to the resident or resident’s responsible person within 24 hours of receipt of the begin delete departments end delete begin insert department’s end insert order of suspension and would require begin delete the residents who transfer during the 60-day period end delete begin insert a resident who transfers due to the resident being issued a 60-day notice end insert to be entitled to a refund of preadmission fees.

This bill would prohibit, upon receipt of an order to suspend or revoke a license, a licensee from accepting new residents or entering into admission agreements for new residents. The bill would generally make a licensee who fails to comply with the requirements of these provisions liable for civil penalties in the amount of $500 per violation per day for each day that the licensee is in violation of these provisions until the violation has been corrected. The bill would authorize a current or former resident of a residential care facility for the elderly covered under these provisions to 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 specified rights of a resident.

By expanding the definition of a crime, this bill would impose a state-mandated local program.

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

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

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

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

SECTION 1.  

Section 1569.525 of the Health and Safety Code
is amended to read:

1569.525.  

(a)  begin delete If end delete begin insert (1) end insert begin insert   end insert begin insert If the director is reasonably contemplating
a temporary suspension or revocation of any license, the
department shall provide the Office of the State Long-Term Care
Ombudsman with a precautionary notification so that the office
may properly prepare to intervene if and when necessary. end insert

begin insert (2) end insert begin insert   end insert begin insert If end insert the director determines that it is necessary to temporarily
suspend or to revoke any license of a residential care facility for
the elderly in order to protect the residents or clients of the facility
from physical or mental abuse, abandonment, or any other
substantial threat to health or safety pursuant to Section 1569.50,
the department shall make every effort to minimize trauma for the
residents.

(b) The department shall contact the Office of the State
Long-Term Care Ombudsman and any local agency that may have
placement or advocacy responsibility for the residents of a
residential care facility for the elderly after a decision is made to
temporarily suspend or to revoke the license of the facility and
prior to its implementation. The department shall work with these
agencies, and the licensee if the director determines it to be
appropriate, to locate alternative placement sites and to contact
relatives responsible for the care of these residents.

(c) The department shall use physicians and surgeons and other
medical personnel deemed appropriate by the department to provide
onsite evaluation of the residents and assist in any transfers.

(d) The department shall require the licensee to prepare and
submit to the licensing agency a written plan for relocation and
compliance with the terms and conditions of the approved plans,
and to provide other information as necessary for the enforcement
of this section.

(e) Upon receipt of an order to suspend or revoke a license, the
licensee shall be prohibited from accepting new residents or
entering into admission agreements for new residents.

(f) Upon an order to suspend a license, the licensee shall provide
a 60-day written notice of the license suspension to the resident
or resident’s responsible person within 24 hours of receipt of the
department’s order of suspension.

(g) Upon an order to revoke a license, the following shall apply:

(1) The licensee shall provide a 60-day written notice of license
revocation that may lead to closure to the resident and the resident’s
responsible person within 24 hours of receipt of the department’s
order of revocation.

(2) The department shall permit the licensee to secure the
services of a person who is not an immediate family member of
the licensee or an entity that is not owned by the licensee to manage
the day-to-day operations of the residential care facility for the
elderly for a period of at least 60 days, provided that all of the
following conditions are met:

(A) A proposal is submitted to the department within 72 hours
of the licensee’s receipt of the department’s order of revocation
that includes both of the following:

(i) A completed “Application for a Community Care Facility
or Residential Care Facility for the Elderly License” form (LIC
200), or similar form as determined by the department, signed and
dated by both the licensee and the person or entity described in
paragraph (2).

(ii) A copy of the executed agreement between the licensee and
the person or entity described in paragraph (2) that delineates the
roles and responsibilities of each party and specifies that the person
or entity described in paragraph (2) shall have the full authority
necessary to operate the facility, in compliance with all applicable
laws and regulations, and without interference from the licensee.

(B) The person or entity described in paragraph (2) shall be
currently licensed and in substantial compliance to operate a
residential care facility for the elderly that is of comparable size
or greater and has comparable programming to the facility. For
purposes of this subparagraph, the following definitions apply:

(i) “Comparable programming” includes, but is not limited to,
dementia care, hospice care, and care for residents with exempted
prohibited health care conditions.

(ii) “Comparable size” means a facility capacity of 1 to 15
residents, 16 to 49 residents, or 50 or more residents.

(C) The person or entity described in paragraph (2) shall not be
subject to the application fee specified in Section 1569.185.

(D) If the department denies a proposal to secure the services
of a person or entity pursuant to paragraph (2), this denial shall
not be deemed a denial of a license application subject to the right
to a hearing under Section 1569.22 and other procedural rights
under Section 1569.51.

(3) (A) Notwithstanding Section 1569.651 or any other law,
for paid preadmission fees, a resident who transfers from the
facility begin delete during the 60-day period after the issuance of an order to
suspend or revoke the license end delete begin insert due to the resident being issued a
60-day notice pursuant to subdivision (f) or paragraph (1), end insert 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 the notice of closure required by paragraph (1) or
subdivision (f).

(ii) A 75-percent refund if preadmission fees were paid more
than 6 months, but not more than 12 months, before the notice of
closure required by paragraph (1) or subdivision (f).

(iii) A 50-percent refund if preadmission fees were paid more
than 12 months, but not more than 18 months, before the notice
of closure required by paragraph (1) or subdivision (f).

(iv) A 25-percent refund if preadmission fees were paid more
than 18 months, but not more than 25 months, before the notice
of closure required by paragraph (1) or subdivision (f).

(B) No preadmission fee refund is required if preadmission fees
were paid 25 months or more before the notice of closure required
by paragraph (1) or subdivision (f).

(C) The preadmission fee refund required by this paragraph
shall be paid within 15 days of issuing the notice of closure
required by paragraph (1) or subdivision (f). 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.

(4) If a resident transfers from the facility during the 60-day
period after the issuance of an order to suspend or revoke the
license, and the resident gives notice at least 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.

(5) Within 24 hours after all residents who are transferring
pursuant to these provisions have left the facility, the licensee that
had his or her license revoked shall, based on information provided
by the resident or the resident’s legal representative, submit a final
list of names and new locations of all residents to the department
and the local ombudsman program.

(h) If at any point during the relocation process 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. The
department is responsible for the health and safety of all residents
until all residents have been appropriately placed. These
responsibilities shall include, but not be limited to, all of the
following:

(1) Contact any local agency that may have placement or
advocacy responsibility for the residents, and work with those
agencies to locate alternative placement sites.

(2) Contact the residents’ relatives, legal representatives,
authorized agents in a health care directive, or responsible parties.

(3) Assist in the transfer of residents, and, if necessary, arrange
or provide transportation.

(4) Provide onsite evaluation of the residents and use any
medical personnel deemed appropriate by the department to provide
onsite evaluation of the residents and assist in any transfers.

(5) Arrange for or provide care and supervision.

(6) Distribute medications.

(7) Arrange for the preparation and service of meals and snacks.

(8) Prepare the residents’ records and medications for transfer
of each resident.

(9) Assist in any way necessary to facilitate a safe transfer of
all residents.

(10) Check on the status of begin delete all end delete begin insert each end insert transferred residents within
24 hours of transfer.

(i) 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 these services. If the licensee
fails to provide the services required in this section, the department
shall request that the Attorney General’s office, the city attorney’s
office, or the local district attorney’s office seek injunctive relief
and damages.

(j) Notwithstanding Section 1569.49, a licensee who fails to
comply with begin insert the end insert requirements of this section shall be liable for
civil penalties in the amount of five hundred dollars ($500) per
violation per day for each day that the licensee is in violation of
this section, until the violation has been corrected. The civil
penalties shall be issued immediately following the written notice
of violation. begin delete However, if the violation does not present an
immediate or substantial threat to the health and safety of residents
and the licensee corrects the violation within three calendar days
after receiving the notice of the violation, the licensee shall not be
liable for payment of any civil penalties pursuant to this subdivision
related to the corrected violation. end delete

(k) A current or former 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 begin delete facilities end delete begin insert facility end insert
employees and shall be liable for costs and attorney’s fees. The
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.

(l) This section shall not preclude the department from amending
the effective date in the order of the suspension or revocation of
a license and closing the facility, or from pursuing any other
available remedies if necessary to protect the health and safety of
the residents in care.

SEC. 2.  

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