BILL NUMBER: SB 897 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Leno
FEBRUARY 18, 2011
An act to add Section 1569.686 to the Health and Safety Code,
relating to residential care facilities for the elderly.
LEGISLATIVE COUNSEL'S DIGEST
SB 897, as introduced, Leno. Residential care facilities for the
elderly.
Existing law, the California Residential Care Facilities for the
Elderly Act, provides for the licensure and regulation of residential
care facilities for the elderly by the State Department of Social
Services. Existing law authorizes the director to take enforcement
action, including, but not limited to, actions to suspend or revoke a
license and to impose civil penalties for violations. Under existing
law, a violation of these provisions is a crime.
This bill would enact the RCFE Residents Foreclosure Protection
Act of 2011 which would, with certain exceptions, require the
licensee of a facility to notify the department and the State
Long-Term Care Ombudsman in writing within 2 business days of
specified events or obtaining knowledge of events, and would
authorize the department to initiate a compliance plan, noncompliance
conference, or other appropriate action upon receipt of the
notification.
This bill would require the licensee of a facility, with certain
exceptions, to notify the department, the State Long-Term Care
Ombudsman, and all residents, applicants, and, if applicable, their
legal representatives, of other specified events, and would require
the department to initiate a compliance plan, noncompliance
conference, or other appropriate action upon receipt of this notice.
By expanding the definition of an existing 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. This act shall be known, and may be cited, as the RCFE
Residents Foreclosure Protection Act of 2011.
SEC. 2. The Legislature finds and declares all of the following:
(a) There are currently approximately 8,000 residential care
facilities for the elderly (RCFEs) in California.
(b) The vast majority of RCFEs are located in single-family
dwellings, with a mortgage on the property.
(c) The best interests of the residents of RCFEs requires
procedures to ensure that they are notified and protected whenever
their home is subject to a foreclosure or other event indicating
significant financial distress.
(d) Therefore, it is the intent of the Legislature in enacting
this act to establish procedures to protect RCFE residents by
providing them and the state with information when an RCFE is
suffering foreclosure proceedings or experiencing financial distress.
SEC. 3. Section 1569.686 is added to the Health and Safety Code,
to read:
1569.686. (a) Within two business days of any event, or obtaining
knowledge of any event, described in subdivision (b), the licensee
of a residential care facility for the elderly shall notify the
department and the State Long-Term Care Ombudsman in writing of the
event. This notification may be provided by telephone facsimile,
overnight mail, or by telephone with a written confirmation within
five calendar days after the telephone call. Upon receipt of the
notification, the department may initiate a compliance plan,
noncompliance conference, or other appropriate action.
(b) Any of the following events requires notification pursuant to
subdivision (a):
(1) Failure to make one or more mortgage, lease, or rental
payments on the property within 30 days of the due date.
(2) A utility company has sent notice of intent to terminate a
utility on the property. For the purposes of this paragraph, "utility
company" means a provider of electricity, gas, or water services.
(3) A financial institution refuses to honor a check or other
instrument issued by the licensee to its employees for a regular
payroll due to insufficient funds.
(c) A licensee shall notify the department, the State Long-Term
Care Ombudsman, all residents, and, if applicable, their legal
representatives, in writing, within two business days, and shall
notify all applicants for potential residence, and, if applicable,
their legal representatives, prior to admission, of any of the
following events, or knowledge of the event:
(1) A notice of default, notice of trustee's sale, or any other
indication of foreclosure is issued on the property.
(2) An unlawful detainer action is initiated against the licensee.
(3) The licensee files for bankruptcy.
(d) Upon receipt of the notice required pursuant to subdivision
(c), the department shall initiate a compliance plan, noncompliance
conference, or other appropriate action.
(e) A licensee who fails to comply with this section shall be
liable for immediate civil penalties in the amount of one hundred
dollars ($100) for each day of the failure to provide notification
required in this section. The total civil penalty shall not exceed
two thousand dollars ($2,000). If a resident is relocated without the
notification required by this section, and suffers transfer trauma
or other harm to his or her health or safety, the department may also
suspend or revoke the licensee's license and issue a permanent
revocation of the licensee's ability to operate or act as an
administrator of a facility anywhere in the state. Suspension or
revocation proceedings pursuant to this subdivision shall be
conducted in compliance with Section 1569.51.
(f) For purposes of this section, "property" means the land or
building in which a residential care facility for the elderly is
located.
(g) This section shall not apply to licensees of residential care
facilities for the elderly that have obtained a certificate of
authority, as defined in paragraph (5) of subdivision (c) of Section
1771, to offer continuing care contracts, as defined in paragraph (8)
of subdivision (c) of Section 1771.
SEC. 4. 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.