Amended in Assembly June 24, 2014

Amended in Senate March 25, 2014

Senate Bill No. 1382

Introduced by Senator Block

February 21, 2014

An act to amend Section 1569.185 of the Health and Safety Code, relating to care facilities.

LEGISLATIVE COUNSEL’S DIGEST

SB 1382, as amended, Block. Residential care facilities for the elderly.

Existing law provides for the licensure and regulation of residential care facilities for the elderly by the State Department of Social Services. A violation of these provisions is a misdemeanor. Existing law sets forth the annual licensure fees to operate a residential care facility for the elderly and various other fees charged by the department. Existing law requires the department to deposit the fees collected into the Technical Assistance Fund to be used by the department, upon appropriation by the Legislature, to ensure the health and safety of individuals provided care and supervision by licensees and to support activities of the licensing program.

This bill would increase the annual licensure fees by begin delete 30% end delete begin insert 20% end insert and would make related findings and declarations.

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

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

SECTION 1.  

The Legislature finds and declares all of the
following:

(a) The quality of services provided to residents of a residential
care facility for the elderly is dependent on the State Department
of Social Services’ ability to continue and enhance its licensing,
regulatory, and disciplinary functions.

(b) After years of budgetary cutbacks, it is now imperative that
the department be revitalized and given adequate resources to
support its mandate to provide consumer protection.

(c) Failure to increase the fee amount by begin delete 30 end delete begin insert 20 end insert percent will
result in continued lack of supervision and regulatory begin delete discipline end delete
begin insert discipline, end insert which will undermine the care and services for residents.

SEC. 2.  

Section 1569.185 of the Health and Safety Code is
amended to read:

1569.185.  

(a) An application fee adjusted by facility and
capacity shall be charged by the department for the issuance of a
license to operate a residential care facility for the elderly. After
initial licensure, a fee shall be charged by the department annually
on each anniversary of the effective date of the license.

The fees are for the purpose of financing activities specified in
this chapter. Fees shall be assessed as follows:

 

begin delete

Fee Schedule
Capacity	Initial Application	Annual
1-3	$536.90	$536.90
4-6	$1,072.50	$536.90
7-15	$1,610.70	$804.70
16-30	$2,145.00	$1,072.50
31-49	$2,683.20	$1,341.60
50-74	$3,220.10	$1,610.70
75-100	$3,758.30	$1,878.50
101-150	$4,295.20	$2,147.60
151-200	$5,007.60	$2,503.80
201-250	$5,720.00	$2,860.00
251-300	$6,435.00	$3,217.50
301-350	$7,150.00	$3,575.00
351-400	$7,865.00	$3,932.50
401-500	$9,295.00	$4,647.50
501-600	$10,725.00	$5,362.50
601-700	$12,155.00	$6,077.50
701+	$14,300.00	$7,150.00

end delete

 

 

begin insert

begin insert Fee Schedule end insert
begin insert  Capacity end insert	begin insert Initial Application end insert	begin insert Annual end insert
begin insert   1-3 end insert	begin insert    $495.60    end insert	begin insert    $495.60    end insert
begin insert   end insert	begin insert   end insert	begin insert   end insert
begin insert   4-6 end insert	begin insert    $990.00    end insert	begin insert    $495.60    end insert
begin insert   end insert	begin insert   end insert	begin insert   end insert
begin insert   7-15 end insert	begin insert    $1,486.80    end insert	begin insert    $742.80    end insert
begin insert   end insert	begin insert   end insert	begin insert   end insert
begin insert  16-30 end insert	begin insert    $1,980.00    end insert	begin insert    $990.00    end insert
begin insert   end insert	begin insert   end insert	begin insert   end insert
begin insert  31-49 end insert	begin insert    $2,476.80    end insert	begin insert    $1,238.40    end insert
begin insert   end insert	begin insert   end insert	begin insert   end insert
begin insert  50-74 end insert	begin insert    $2,972.40    end insert	begin insert    $1,448.00    end insert
begin insert   end insert	begin insert   end insert	begin insert   end insert
begin insert  75-100 end insert	begin insert    $3,469.20    end insert	begin insert    $1,734.00    end insert
begin insert   end insert	begin insert   end insert	begin insert   end insert
begin insert 101-150 end insert	begin insert    $3,964.80    end insert	begin insert    $1,982.40    end insert
begin insert   end insert	begin insert   end insert	begin insert   end insert
begin insert 151-200 end insert	begin insert    $4,622.40    end insert	begin insert    $2,311.20    end insert
begin insert   end insert	begin insert   end insert	begin insert   end insert
begin insert 201-250 end insert	begin insert    $5,280.00    end insert	begin insert    $2,640.00    end insert
begin insert   end insert	begin insert   end insert	begin insert   end insert
begin insert 251-300 end insert	begin insert    $5,940.00    end insert	begin insert    $2,970.00    end insert
begin insert   end insert	begin insert   end insert	begin insert   end insert
begin insert 301-350 end insert	begin insert    $6,600.00    end insert	begin insert    $3,300.00    end insert
begin insert   end insert	begin insert   end insert	begin insert   end insert
begin insert 351-400 end insert	begin insert    $7,260.00    end insert	begin insert    $3,630.00    end insert
begin insert   end insert	begin insert   end insert	begin insert   end insert
begin insert 401-500 end insert	begin insert    $8,580.00    end insert	begin insert    $4,290.00    end insert
begin insert   end insert	begin insert   end insert	begin insert   end insert
begin insert 501-600 end insert	begin insert    $9,900.00    end insert	begin insert    $4,950.00    end insert
begin insert   end insert	begin insert   end insert	begin insert   end insert
begin insert 601-700 end insert	begin insert    $11,220.00    end insert	begin insert    $5,610.00    end insert
begin insert   end insert	begin insert   end insert	begin insert   end insert
begin insert 701+ end insert	begin insert    $13,200.00    end insert	begin insert    $6,600.00    end insert

end insert

 

(b) (1) In addition to fees set forth in subdivision (a), the
department shall charge all of the following fees:

(A) A fee that represents 50 percent of an established application
fee when an existing licensee moves the facility to a new physical
address.

(B) A fee that represents 50 percent of the established
application fee when a corporate licensee changes who has the
authority to select a majority of the board of directors.

(C) A fee of twenty-five dollars ($25) when an existing licensee
seeks to either increase or decrease the licensed capacity of the
facility.

(D) An orientation fee of fifty dollars ($50) for attendance by
an individual at a department-sponsored orientation session.

(E) A probation monitoring fee equal to the annual fee, in
addition to the annual fee for that category and capacity for each
year a license has been placed on probation as a result of a
stipulation or decision and order pursuant to the administrative
adjudication procedures of the Administrative Procedure Act
(Chapter 4.5 (commencing with Section 11400) and Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title
2 of the Government Code).

(F) A late fee that represents an additional 50 percent of the
established annual fee when a licensee fails to pay the annual
licensing fee on or before the due date as indicated by postmark
on the payment.

(G) A fee to cover any costs incurred by the department for
processing payments including, but not limited to, bounced check
charges, charges for credit and debit transactions, and postage due
charges.

(H) A plan of correction fee of two hundred dollars ($200) when
a licensee does not implement a plan of correction on or prior to
the date specified in the plan.

(2) A local jurisdiction shall not impose a business license, fee,
or tax for the privilege of operating a facility licensed under this
chapter that serves six or fewer persons.

(c) (1) The revenues collected from licensing fees pursuant to
this section shall be utilized by the department for the purpose of
ensuring the health and safety of all individuals provided care or
supervision by licensees and to support the activities of the
licensing programs, including, but not limited to, begin delete monitoring end delete begin insert the
regular inspection of end insert facilities for compliance with licensing laws
and regulations pursuant to begin delete this chapter, end delete begin insert Section 1569.33, end insert and other
administrative activities in support of the licensing program, when
appropriated for these purposes. The revenues collected shall be
used in addition to any other funds appropriated in the annual
Budget Act in support of the licensing program.

(2) The department shall not utilize any portion of these revenues
sooner than 30 days after notification in writing of the purpose
and use, as approved by the Department of Finance, to the
Chairperson of the Joint Legislative Budget Committee, and the
chairpersons of the committee in each house that considers
appropriations for each fiscal year. The department shall submit
a budget change proposal to justify any positions or any other
related support costs on an ongoing basis.

(d) A residential care facility for the elderly may use a bona
fide business check to pay the license fee required under this
section.

(e) The failure of an applicant for licensure or a licensee to pay
all applicable and accrued fees and civil penalties shall constitute
grounds for denial or forfeiture of a license.