Amended in Senate March 26, 2014

Amended in Senate February 14, 2014

Senate BillNo. 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 ofbegin delete allend deletebegin insert eachend insert transferredbegin delete residentsend deletebegin insert residentend insert within 24 hours of transfer. The bill would additionally require the department to contact the Office of the State Long-Term Care Ombudsman to locate alternative placement sites for residents. The bill would also require, upon an order tobegin insert temporarilyend insert suspend a licensebegin insert or a final order to suspend a licenseend insert, a licensee to provide abegin delete 60-dayend delete written notice of license suspensionbegin insert or revocationend insert to the resident or resident’s responsible personbegin delete within 24 hours of receipt of the department’s order of suspensionend deletebegin insert, as specified,end insert and would require a resident who transfers due to thebegin delete resident being issued a 60-dayend deletebegin insert receipt of aend insert noticebegin insert of a temporary suspension or revocation of a licenseend insert to be entitled to a refund of preadmission fees.

This bill would prohibit, upon receipt of an order tobegin insert temporarilyend insert 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 corporationbegin delete whoend deletebegin insert thatend insert owns, operates, establishes, manages, conducts, or maintains a residential care facility for the elderly who violates the specified rights ofbegin delete aend deletebegin insert theend insert 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:

P3    1

SECTION 1.  

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

begin delete
3

1569.525.  

(a) (1) If the director is reasonably contemplating
4a temporary suspension or revocation of any license, the department
5shall provide the Office of the State Long-Term Care Ombudsman
6with a precautionary notification so that the office may properly
7prepare to intervene if and when necessary.

8 8(2)

end delete
9begin insert

begin insert1569.525.end insert  

end insert

begin insert(a)end insert If the director determines that it is necessary to
10temporarily suspend or to revoke any license of a residential care
11facility for the elderly in order to protect the residents or clients
12of the facility from physical or mental abuse, abandonment, or any
13other substantial threat to health or safety pursuant to Section
141569.50, the department shall make every effort to minimize
15trauma for the residents.

16(b) begin insert(1)end insertbegin insertend insert The department shall contact the Office of the State
17Long-Term Care Ombudsman and any local agency that may have
18placement or advocacy responsibility for the residents of a
19residential care facility for the elderly after a decision is made to
20temporarily suspend or to revoke the license of the facility and
21prior to its implementation. The department shall work with these
22agencies, and the licensee if the director determines it to be
23appropriate, to locate alternative placement sites and to contact
24 relatives responsible for the care of these residents.

begin insert

25(2) If the director is reasonably contemplating a temporary
26suspension or revocation of any license, the department shall notify
27the Office of the State Long-Term Care Ombudsman pursuant to
28Section 1569.335.

end insert

P4    1(c) The department shall use physicians and surgeons and other
2medical personnel deemed appropriate by the department to provide
3onsite evaluation of the residents and assist in any transfers.

4(d) The department shall require the licensee to prepare and
5submit to the licensing agency a written plan for relocation and
6compliance with the terms and conditions of the approved plans,
7and to provide other information as necessary for the enforcement
8of this section.

9(e) Upon receipt of an order tobegin insert temporarilyend insert suspend or revoke
10a license, the licensee shall be prohibited from accepting new
11residents or entering into admission agreements for new residents.

12(f) Upon an order tobegin insert temporarilyend insert suspend a license,begin delete the licensee
13shall provide a 60-day written notice of the license suspension to
14the resident or resident’s responsible person within 24 hours of
15receipt of the department’s order of suspension.end delete
begin insert the following shall
16apply: end insert

begin insert

17(1) The licensee shall provide written notice of the temporary
18suspension to the resident and the resident’s responsible person,
19if applicable, as soon as practically possible, but no later than
20within 24 hours of receipt of the department’s temporary
21suspension order.

end insert
begin insert

22(2) The department may secure, or permit the licensee to secure,
23the services of a person who is not an immediate family member
24of the licensee or an entity that is not owned by the licensee to
25manage the day-to-day operations of the facility until the matter
26is heard pursuant to Section 1569.50, and for at least 60 days
27thereafter, if a proposal that includes both of the following is
28submitted to the department as soon as practically possible
29following the licensee’s receipt of the department’s temporary
30suspension order:

end insert
begin insert

31(A) A completed “Application for a Community Care Facility
32or Residential Care Facility for the Elderly License” form (LIC
33200), or similar form as determined by the department, signed and
34dated by both the licensee and the person or entity described in
35this paragraph.

end insert
begin insert

36(B) A copy of the executed agreement between the licensee and
37the person or entity described in this paragraph that delineates
38the roles and responsibilities of each party and specifies that the
39person or entity described in this paragraph shall have the full
40authority necessary to operate the facility, in compliance with all
P5    1applicable laws and regulations, and without interference from
2the licensee.

end insert

3(g) Uponbegin delete anend deletebegin insert a finalend insert order to revoke a licensebegin insert following any
4applicable hearings required under this article, except when
5following the temporary suspension of a license pursuant to Section
61569.50 that led to the transfer of all residentsend insert
, the following shall
7apply:

8(1) The licensee shall provide a 60-day written notice of license
9revocation that may lead to closure to the resident and the resident’s
10responsible person within 24 hours of receipt of the department’s
11begin insert final end insert order of revocation.

12(2) The department shall permit the licensee to secure the
13services of a person who is not an immediate family member of
14the licensee or an entity that is not owned by the licensee to manage
15the day-to-day operations of the residential care facility for the
16elderly for a period of at least 60 days,begin delete provided that all of the
17following conditions are met:end delete

18begin delete(A)end deletebegin deleteend deletebegin deleteA end deletebegin insertif a end insertproposalbegin insert that includes both of the followingend insertbegin insertend insert is
19submitted to the department within 72 hours of the licensee’s
20receipt of the department’sbegin insert finalend insert order ofbegin delete revocation that includes
21both of the following:end delete
begin insert revocation: end insert

begin delete

22 22(i)

end delete

23begin insert(A)end insert A completed “Application for a Community Care Facility
24or Residential Care Facility for the Elderly License” form (LIC
25200), or similar form as determined by the department, signed and
26dated by both the licensee and the person or entity described in
27begin delete paragraph (2).end deletebegin insert this paragraph. end insert

begin delete

27 28(ii)

end delete

29begin insert(B)end insert A copy of the executed agreement between the licensee and
30the person or entity described inbegin delete paragraph (2)end deletebegin insert this paragraphend insert that
31delineates the roles and responsibilities of each party and specifies
32that the person or entity described inbegin delete paragraph (2)end deletebegin insert this paragraphend insert
33 shall have the full authority necessary to operate the facility, in
34compliance with all applicable laws and regulations, and without
35interference from the licensee.

begin delete

33 36(B)

end delete

37begin insert(h)end insertbegin insert(1)end insertbegin insertend insert The person or entity described in paragraph (2)begin insert of
38subdivision (f) or paragraph (2) of subdivision (g)end insert
shall be currently
39licensed and in substantial compliance to operate a residential care
40facility for the elderly that is of comparable size or greater and has
P6    1comparable programming to the facility. For purposes of this
2subparagraph, the following definitions apply:

begin delete

38 3(i)

end delete

4begin insert(A)end insert “Comparable programming” includes, but is not limited to,
5dementia care, hospice care, and care for residents with exempted
6prohibited health care conditions.

begin delete

P5   1 7(ii)

end delete

8begin insert(B)end insert “Comparable size” means a facility capacity of 1 to 15
9residents, 16 to 49 residents, or 50 or more residents.

begin delete

3 10(C)

end delete

11begin insert(2)end insert The person or entity described in paragraph (2)begin insert of subdivision
12(f) or paragraph (2)end insert
begin insert of subdivision (g)end insert shall not be subject to the
13application fee specified in Section 1569.185.

begin delete

5 14(D)

end delete

15begin insert(3)end insert If the department denies a proposal to secure the services
16of a person or entity pursuant to paragraph (2)begin insert of subdivision (f)
17or paragraph (2)end insert
begin insert of subdivision (g)end insert, this denial shall not be deemed
18a denial of a license application subject to the right to a hearing
19under Section 1569.22 and other procedural rights under Section
201569.51.

begin delete

10 21(3) (A) 

end delete

22begin insert(i)end insertbegin insertend insertbegin insert(1)end insertbegin insertend insertNotwithstanding Section 1569.651 or any other law, for
23paid preadmission fees, a resident who transfers from the facility
24due to thebegin delete resident being issued a 60-day notice pursuant to
25subdivision (f) or paragraph (1),end delete
begin insert notice of a temporary suspension
26or revocation of a license pursuant to this sectionend insert
is entitled to a
27refund in accordance with all of the following:

begin delete

16 28(i)

end delete

29begin insert(A)end insert A 100-percent refund if preadmission fees were paid within
30six months ofbegin delete theend deletebegin insert eitherend insert noticebegin delete of closureend delete required bybegin delete paragraph
31(1) or subdivision (f)end delete
begin insert this sectionend insert.

begin delete

19 32(ii)

end delete

33begin insert(B)end insert A 75-percent refund if preadmission fees were paid more
34than 6 months, but not more than 12 months, beforebegin delete theend deletebegin insert eitherend insert
35 noticebegin delete of closureend delete required bybegin delete paragraph (1) or subdivision (f)end deletebegin insert this
36sectionend insert
.

begin delete

22 37(iii)

end delete

38begin insert(C)end insert A 50-percent refund if preadmission fees were paid more
39than 12 months, but not more than 18 months, beforebegin delete theend deletebegin insert eitheend insertbegin insertrend insert
P7    1 noticebegin delete of closureend delete required bybegin delete paragraph (1) or subdivision (f)end deletebegin insert this
2sectionend insert
.

begin delete

25 3(iv)

end delete

4begin insert(D)end insert A 25-percent refund if preadmission fees were paid more
5than 18 months, but not more than 25 months, beforebegin delete theend deletebegin insert eitherend insert
6 notice begin delete of closureend delete required bybegin delete paragraph (1) or subdivision (f)end deletebegin insert this
7sectionend insert
.

begin delete

28 8(B)

end delete

9begin insert(2)end insert No preadmission fee refund is required if preadmission fees
10were paid 25 months or more beforebegin delete theend deletebegin insert eitherend insert noticebegin delete of closureend delete
11 required bybegin delete paragraph (1) or subdivision (f)end deletebegin insert this sectionend insert.

begin delete

31 12(C)

end delete

13begin insert(3)end insert The preadmission fee refund required by this paragraph shall
14be paid within 15 days of issuingbegin delete theend deletebegin insert eitherend insert noticebegin delete of closureend delete
15 required bybegin delete paragraph (1) or subdivision (f)end deletebegin insert this sectionend insert. In lieu of
16the refund, the resident may request that the licensee provide a
17credit toward the resident’s monthly fee obligation in an amount
18equal to the preadmission fee refund due.

19(4) If a resident transfers from the facilitybegin delete during the 60-day
20period after the issuance of an order to suspend or revoke the
21licenseend delete
begin insert due to the revocation of a licenseend insert, and the resident gives
22notice at least five days before leaving the facility,begin insert or if the transfer
23is due to a temporary suspension of the license order,end insert
the licensee
24shall refund to the resident or his or her legal representative a
25proportional per diem amount of any prepaid monthly fees at the
26time the resident leaves the facility and the unit is vacated.
27Otherwise the licensee shall pay the refund within seven days from
28the date that the resident leaves the facility and the unit is vacated.

begin delete

6 29(5)

end delete

30begin insert(j)end insert Within 24 hours afterbegin delete all residents who areend deletebegin insert each resident
31who isend insert
transferring pursuant to these provisionsbegin delete haveend deletebegin insert hasend insert left the
32facility, the licensee that had his or her licensebegin insert temporarily
33suspended orend insert
revoked shall, based on information provided by the
34resident or the resident’sbegin delete legal representativeend deletebegin insert responsible personend insert,
35submit a final list of names and new locations of all residents to
36the department and the local ombudsman program.

begin delete

12 37(h)

end delete

38begin insert(k)end insert If at any point duringbegin delete the relocation processend deletebegin insert or following a
39temporary suspension or revocation of a licenseend insert
the director
40determines thatbegin delete it is necessary to protectend deletebegin insert there is a risk toend insert the
P8    1residents of a facility from physical or mental abuse, abandonment,
2or any other substantial threat to health or safety, the department
3shall take any necessary action to minimize trauma for the begin delete4 residents. The department is responsible for the health and safety
5of all residents until all residents have been appropriately placed.
6These responsibilities shall include,end delete
begin insert residents, including,end insert but not
7begin delete beend delete limited to, all of the following:

8(1) Contact any local agency that may have placement or
9advocacy responsibility for the residents, and work with those
10agencies to locate alternative placement sites.

11(2) Contact the residents’ relatives, legal representatives,
12authorized agents in a health care directive, or responsible parties.

13(3) Assist in the transfer of residents, and, if necessary, arrange
14or provide transportation.

15(4) Provide onsite evaluation of the residents and use any
16medical personnel deemed appropriate by the department to provide
17onsite evaluation of the residents and assist in any transfers.

18(5) Arrange for or provide care and supervision.

19(6) Distribute medications.

20(7) Arrange for the preparation and service of meals and snacks.

21(8) Prepare the residents’ records and medications for transfer
22of each resident.

23(9) Assist in any way necessary to facilitate a safe transfer of
24all residents.

25(10) Check on the status of each transferredbegin delete residentsend deletebegin insert residentend insert
26 within 24 hours of transfer.

begin delete

P7   1 27(i)

end delete

28begin insert(l)end insert The participation of the department and local agencies in the
29relocation of residents from a residential care facility for the elderly
30shall not relieve the licensee of any responsibility under this
31section. A licensee that fails to comply with the requirements of
32this section shall be required to reimburse the department and local
33agencies for the cost of providing these services. If the licensee
34fails to provide the services required in this section, the department
35shall request that the Attorney General’s office, the city attorney’s
36office, or the local district attorney’s office seek injunctive relief
37and damages.

begin delete

11 38(j)

end delete

39begin insert(m)end insert Notwithstanding Section 1569.49, a licensee who fails to
40comply with the requirements of this section shall be liable for
P9    1civil penalties in the amount of five hundred dollars ($500) per
2violation per day for each day that the licensee is in violation of
3this section, until the violation has been corrected. The civil
4penalties shall be issued immediately following the written notice
5of violation.

begin delete

23 6(k)

end delete

7begin insert(n)end insert A current or former resident of a residential care facility for
8the elderly covered under thisbegin delete section,end deletebegin insert sectionend insert may bring a civil
9action against any person, firm, partnership, or corporationbegin delete whoend delete
10begin insert thatend insert owns, operates, establishes, manages, conducts, or maintains
11a residential care facility for the elderlybegin delete whoend deletebegin insert thatend insert violates the rights
12ofbegin delete aend deletebegin insert theend insert resident, as set forth in this section. Any person, firm,
13partnership, or corporationbegin delete whoend deletebegin insert thatend insert owns, operates, establishes,
14manages, conducts, or maintains a residential care facility for the
15elderlybegin delete whoend deletebegin insert thatend insert violates this section shall be responsible for the
16acts of the facility employeesbegin insert in violating this sectionend insert and shall be
17liable for costs and attorney’s fees. The residential care facility for
18the elderly may also be enjoined from permitting the violation to
19continue. The remedies specified in this section shall be in addition
20to any other remedy provided by law.

begin delete

36 21(l)

end delete

22begin insert(o)end insert This section shall not preclude the department from
23amending the effective date in the order of the suspension or
24revocation of a license and closing the facility, or from pursuing
25any other available remedies if necessary to protect the health and
26safety of the residents in care.

27

SEC. 2.  

No reimbursement is required by this act pursuant to
28Section 6 of Article XIII B of the California Constitution because
29the only costs that may be incurred by a local agency or school
30district will be incurred because this act creates a new crime or
31infraction, eliminates a crime or infraction, or changes the penalty
32for a crime or infraction, within the meaning of Section 17556 of
33the Government Code, or changes the definition of a crime within
34the meaning of Section 6 of Article XIII B of the California
35Constitution.



O

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