BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 894|
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THIRD READING
Bill No: SB 894
Author: Corbett (D)
Amended: 5/27/14
Vote: 21
SENATE HUMAN SERVICES COMMITTEE : 3-2, 4/8/14
AYES: Liu, DeSaulnier, Hancock
NOES: Berryhill, Wyland
SENATE JUDICIARY COMMITTEE : 6-0, 4/22/14
AYES: Jackson, Anderson, Corbett, Lara, Leno, Vidak
NO VOTE RECORDED: Monning
SENATE APPROPRIATIONS COMMITTEE : 5-2, 5/23/14
AYES: De Le�n, Hill, Lara, Padilla, Steinberg
NOES: Walters, Gaines
SUBJECT : Residential care facilities for the elderly:
revocation of license
SOURCE : California Advocates for Nursing Home Reform
DIGEST : This bill expands numerous requirements for
Residential Care Facility for the Elderly (RCFE) licensees in
the event of a temporary license suspension or license
revocation. Additionally, this bill expands the
responsibilities of the Department of Social Services (DSS) in
overseeing a temporary suspension or revocation of an RCFE
license and in protecting the health and safety of affected
residents. This bill increases civil penalties to $500 per
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violation per day for licensees that fail to comply with these
provisions. Furthermore, this bill establishes a private right
of action for residents of RCFEs in such instances.
ANALYSIS :
Existing Law:
1. Establishes the RCFE Act which provides for the DSS to
license and regulate RCFEs as a separate category within the
existing residential care licensing structure of DSS.
2. Provides that DSS may deny an application for a license or
may suspend or revoke any license due to a licensee's
violation of the RCFE Act or related regulations.
3. Provides that procedures for the suspension, revocation or
denial of license to be conducted in accordance with the
administrative adjudication provisions of the Administrative
Procedure Act that grants a licensee the right to appeal a
license denial, revocation or suspension to the Office of
Administrative Hearings.
4. Permits the Director of DSS (Director) to temporarily
suspend any license, prior to any hearing when, in the
opinion of the Director, the action is necessary to protect
residents or clients of the facility from physical or mental
abuse, abandonment, or any other substantial threat to health
or safety. Requires DSS to verify within 30 days that the
facility is nonoperational.
5. Requires the Director, when it is necessary to suspend or
revoke an RCFE license, to make every effort to minimize
trauma for residents. Permits DSS to require the licensee to
prepare a written relocation plan for residents. Requires
the licensee to provide a 60-day written notice of license
revocation within 24 hours of receipt of a revocation order.
6. Requires DSS to notify the Office of the State Long-Term
Care Ombudsman (OSLTCO) whenever DSS substantiates serious
violations posing a threat to health and safety of any
resident or causes an accusation to be filed for license
revocation.
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7. Permits DSS to assess civil penalties not less than $25 and
not more than $50 per violation per day for each violation
except where the seriousness of the violation warrants a
higher penalty, in no case to exceed $150 per day per
violation.
This bill:
1. Requires DSS to provide the OSLTCO with a precautionary
notification if the Director is reasonably contemplating a
temporary suspension or revocation of any license.
2. Requires DSS to notify affected public placement agencies and
the OSLTCO, whenever a violation occurs, as specified.
3. Requires, if the violation is appealed by the facility within
10 days, DSS to only notify placement agencies when the
appeal has been exhausted.
4. Requires, if the appeal process has not been completed within
60 days, the placement agency to be notified that the case is
still under appeal.
5. Requires, after a decision is made to temporarily suspend or
to revoke the license of an RCFE and prior to implementing
that decision, DSS to contact both the OSLTCO and any local
agency that may have placement or advocacy responsibility for
the residents of an RCFE.
6. Requires DSS to work with the local 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.
7. Requires, if the Director is reasonably contemplating a
temporary suspension or revocation of any license, DSS to
notify the OSLTCO, as specified.
8. Requires, rather than permits, DSS to 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.
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9. Requires, upon receipt of an order to temporarily suspend or
revoke a license, the licensee to be prohibited from
accepting new residents or entering into admission agreements
for new residents.
10.Requires, upon an order to temporarily suspend a license, the
following to apply:
A. The licensee to 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 DSS's temporary suspension order.
B. DSS to 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, as specified, and
for at least 60 days thereafter, if a specified proposal
is submitted to DSS as soon as practically possible
following the licensee's receipt of DSS's temporary
suspension order.
11.Clarifies that DSS is required to 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
RCFE for a period of at least 60 days, if a proposal that
includes specified information is submitted to DSS within 72
hours of the licensee's receipt of DSS's final order of
revocation.
12.Specifies that within 24 hours after each resident who is
transferring has left the facility, the licensee that had
his/her license temporarily suspended or revoked is
required, 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 DSS and the
OSLTCO.
13.Requires DSS, if at any point during or following a temporary
suspension or revocation of a license the Director determines
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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, to take any necessary
action to minimize trauma for the residents, including, but
not limited to, all of the following:
A. Contact any local agency that may have placement or
advocacy responsibility for the residents, and work with
those agencies to locate alternative placement sites.
B. Contact the residents' relatives, legal
representatives, authorized agents in a health care
directive, or responsible parties.
C. Assist in the transfer of residents, and, if
necessary, arrange or coordinate transportation.
D. Provide onsite evaluation of the residents and use
any medical personnel deemed appropriate by DSS to
provide onsite evaluation of the residents and assist in
any transfers.
E. Arrange for or coordinate care and supervision.
F. Arrange for the distribution of medications.
G. Arrange for the preparation and service of meals and
snacks.
H. Arrange for the preparation of the residents' records
and medications for transfer of each resident.
I. Assist in any way necessary to facilitate a safe
transfer of all residents.
J. Check on the status of each transferred resident
within 24 hours of transfer.
14.Clarifies that DSS's and local agencies participation in the
relocation of residents from an RCFE does not relieve the
licensee of any responsibility. A licensee that fails to
comply with the requirements, as specified, is required to
reimburse the DSS and local agencies for the cost of
providing these services.
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15.Provides that if the licensee fails to provide the services
required, DSS is required to request that the Attorney
General's office, the city attorney's office, or the local
district attorney's office seek injunctive relief and
damages.
16.Holds a licensee who fails to comply with the requirements to
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, until the violation has been
corrected. Requires the civil penalties to be issued
immediately following the written notice of violation.
17.Permits a current or former resident of an RCFE to bring a
civil action against any person that owns, operates,
establishes, manages, conducts, or maintains an RCFE that
violates the rights of the resident, as specified.
18.Holds any person that owns, operates, establishes, manages,
conducts, or maintains an RCFE in violation to be responsible
for the acts of the facility employees and is liable for
costs and attorney's fees. Permits the RCFE to also be
enjoined from permitting the violation to continue.
Prior Legislation
AB 313 (Monning, Chapter 365, Statutes of 2011), requires each
RCFE to provide residents, their responsible parties, and the
local long-term care ombudsman with a 10-day written notice when
DSS commences proceedings to suspend or revoke its license, or a
criminal action relating to health or safety of the residents is
brought against the facility, and makes other changes related to
these actions.
AB 2066 (Monning, Chapter 643 Statutes of 2012), requires RCFEs
to provide a 60-day written notice to residents or the
responsible person within 24 following receipt of DSS's order of
revocation. Permits the licensee to secure an alternative
manager, as specified. Requires RCFEs to refund all or a
portion of pre-admission fees to residents transferring as the
result of a license revocation, as specified.
SB 897 (Leno, Chapter 376, Statutes of 2011), requires licensed
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RCFEs to notify DSS, the OSLTCO, and the facility's residents
when the property is subject to foreclosure or certain other
events occur due to financial distress.
AB 419 (Mitchell, 2011), would have required every community
care facility licensed by DSS to be inspected unannounced at
least once per year using research based, field tested
inspection protocols, as specified. This bill died in the
Assembly Appropriations Committee.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
Potentially significant initial and future costs in the high
hundreds of thousands of dollars (General Fund/Special Fund*).
One-time costs to establish the response plan and protocol
will likely be in the low hundreds of thousands of dollars.
Future costs will be dependent on the number of residents
requiring DSS to provide the expanded duties of care
enumerated in this bill in the event of a license suspension
or revocation.
Unknown, additional state costs, should the DSS seek
injunctive relief and damages through the Attorney General for
reimbursement of costs from the licensee.
Minor fiscal impact to the Department of Aging to receive
additional notifications from DSS of pending suspension and
revocation orders.
*Technical Assistance Fund
SUPPORT : (Verified 5/27/14)
California Advocates for Nursing Home Reform (source)
Advocacy Inc.
Alliance on Aging
California Association of Public Authorities
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California Continuing Care Residents Association
California Retired Teachers Association
Consumer Attorneys of California
Consumer Federation of California
County of San Diego
Elder Law & Advocacy
Jewish Family Services of Los Angeles
Johnson Moore Trial Lawyers
Ombudsman & HICAP Services of Northern California
Ombudsman Services of Contra Costa
ARGUMENTS IN SUPPORT : According to the author's office, this
bill is part of a broad package of legislation sponsored by
California Advocates for Nursing Home Reform in response to
instances of inadequate regulatory oversight of RCFEs. The
author's office states that existing law neither provides
adequately for the state's role in ensuring that RCFE licensees
find alternative placements for residents in their care, nor the
state's responsibility to protect the health and safety of
residents when it becomes clear that the licensee is failing to
do so.
The author's office states that this bill will provide for
greater notice requirements to residents following license
suspensions and revocations. Additionally, it will tighten the
timeframe of reporting requirements upon relocation of
residents, further define DSS's role in protecting the residents
of RCFEs, raise civil penalties for licensees who fail to comply
and provide harmed residents with a civil action against
licensees.
JL:d 5/27/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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