Amended in Senate April 29, 2014

Amended in Senate April 9, 2014

Amended in Senate March 26, 2014

Amended in Senate February 14, 2014

Senate Bill No. 894

Introduced by Senator Corbett

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(Coauthor: Senator Lara)

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January 13, 2014

An act to amend Sections 1569.335 and 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 or following a temporary suspension or revocation of a license that there is a risk to 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, arranging for the preparation of the residents’ records and medications for transfer and checking in on the status of each transferred resident 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 to temporarily suspend a license or a final order to suspend a license, a licensee to provide a written notice of license suspension or revocation to the resident or resident’s responsible person, as specified, and would require a resident who transfers due to the receipt of a notice of a temporary suspension or revocation of a license to be entitled to a refund of preadmission fees.

This bill would prohibit, upon receipt of an order to temporarily 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 that owns, operates, establishes, manages, conducts, or maintains a residential care facility for the elderly who violates the specified rights of the resident.

Existing law requires the department to notify affected placement agencies and the Office of the State Long-Term Care Ombudsman whenever the department substantiates that a violation has occurred which poses a serious threat to the health and safety of any resident when the violation results in the assessment of any penalty or causes an accusation to be filed for the revocation of a license.

This bill would additionally require the department to provide the Office of the State Long-Term Care Ombudsman with a precautionary notification if the director is reasonably contemplating a temporary suspension or revocation of any license.

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 1569.335 of the Health and Safety Code
is amended to read:

1569.335.  

(a) The department shall provide the Office of the
State Long-Term Care Ombudsman, as defined in subdivision (c)
of Section 9701 of the Welfare and Institutions Code, with a
precautionary notification if the director is reasonably
contemplating a temporary suspension or revocation of any license,
so that the office may properly prepare to provide advocacy
services if and when necessary.

(b) The department shall notify affected public placement
begin delete agencies, including end delete begin insert agencies and end insert the Office of the State Long-Term
Care Ombudsman, whenever the department substantiates that a
violation has occurred which poses a serious threat to the health
and safety of any resident when the violation results in the
assessment of any penalty or causes an accusation to be filed for
the revocation of a license.

(c) (1) If the violation is appealed by the facility within 10 days,
the department shall only notify placement agencies of the violation
when the appeal has been exhausted.

(2) If the appeal process has not been completed within 60 days,
the placement agency shall be notified with a notation that indicates
that the case is still under appeal.

(3) The notice to each placement agency shall be updated
monthly for the following 24-month period and shall include the
name and location of the facility, the amount of the fine, the nature
of the violation, the corrective action taken, the status of the
revocation, and the resolution of the complaint.

SEC. 2.  

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

1569.525.  

(a) If 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) (1) 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.

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

(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 temporarily 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 temporarily suspend a license, the following
shall apply:

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

(2) The department may secure, or 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 facility until the matter
is heard pursuant to Section 1569.50, and for at least 60 days
thereafter, if a proposal that includes both of the following is
submitted to the department as soon as practically possible
following the licensee’s receipt of the department’s temporary
suspension order:

(A) 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
this paragraph.

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

(g) Upon a final order to revoke a license following any
applicable hearings required under this article, except when
following the temporary suspension of a license pursuant to Section
1569.50 that led to the transfer of all residents, 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
final 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, if a proposal that includes
both of the following is submitted to the department within 72
hours of the licensee’s receipt of the department’s final order of
revocation:

(A) 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
this paragraph.

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

(h) (1) The person or entity described in paragraph (2) of
subdivision (f) or paragraph (2) of subdivision (g) 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:

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

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

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

(3) If the department denies a proposal to secure the services
of a person or entity pursuant to paragraph (2) of subdivision (f)
or paragraph (2) of subdivision (g), 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.

(i) (1) Notwithstanding Section 1569.651 or any other law, for
paid preadmission fees, a resident who transfers from the facility
due to the notice of a temporary suspension or revocation of a
license pursuant to this section is entitled to a refund in accordance
with all of the following:

(A) A 100-percent refund if preadmission fees were paid within
six months of either notice required by this section.

(B) A 75-percent refund if preadmission fees were paid more
than 6 months, but not more than 12 months, before either notice
required by this section.

(C) A 50-percent refund if preadmission fees were paid more
than 12 months, but not more than 18 months, before either notice
required by this section.

(D) A 25-percent refund if preadmission fees were paid more
than 18 months, but not more than 25 months, before either notice
required by this section.

(2) No preadmission fee refund is required if preadmission fees
were paid 25 months or more before either notice required by this
section.

(3) The preadmission fee refund required by this paragraph shall
be paid within 15 days of issuing either notice required by this
section. 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 due to the revocation
of a license, and the resident gives notice at least five days before
leaving the facility, or if the transfer is due to a temporary
suspension of the license order, 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.

(j) Within 24 hours after each resident who is transferring
pursuant to these provisions has left the facility, the licensee that
had his or her license temporarily suspended or revoked shall,
based on information provided by the resident or the resident’s
responsible person, submit a final list of names and new locations
of all residents to the department and the local ombudsman
program.

(k) If at any point during or following a temporary suspension
or revocation of a license the director determines that there is a
risk to 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, but not 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 coordinate 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 coordinate care and supervision.

(6) Arrange for the distribution of medications.

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

(8) Arrange for the preparation of 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 each transferred resident within 24
hours of transfer.

(l) 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.

(m) Notwithstanding Section 1569.49, a licensee who fails to
comply with the 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.

(n) 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 that owns,
operates, establishes, manages, conducts, or maintains a residential
care facility for the elderly that violates the rights of the resident,
as set forth in this section. Any person, firm, partnership, or
corporation that owns, operates, establishes, manages, conducts,
or maintains a residential care facility for the elderly that violates
this section shall be responsible for the acts of the facility
employees in violating this section 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.

(o) 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. 3.  

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