HomeMy WebLinkAbout1984-04-03; City Council; 7697; Nursing Home Patients' Protection Act of 1984AB 2262 .-4-
l of the Senate, as follows:
2 (1) The Governor shall appoint three members as
3 follows:
4 (A) One registered nurse who is a specialist in
5 gerontological nursing and knowledgeable in acuity
6 systems development, and who ii;, at the time of the
1 appointment, practicing in a skilled nursing facility.'
8 (B) One licensed vocational nurse, who, at the time of '
9 appointn1ent, is board-cerh1ied and licensed in California
10 and working in a skilled nursing facility~ and who is
11 knowledgeable in workload requirements establishing
12 patient-to•nursing ratios in skilled nursing facilities.
13 (C) One representative from the Licensing and
14 Certificab'on Division of the State D1Jpartment of Health
15 Services, who is knowledgeable of the acuity systems of
1G skilled nursing fa.cilities.
17 · (2) The President pro Tempore of the Senate shaJJ
18 appoint three members as foJJows:
19 (A) One registered nurse who is a specialist in
20 gerontological 1mrsing a11d knowledgeable in acuity
21 systems development, and who is, at the time of the '---
22 appointment, practicing in a skilled nursing facility.
23 (B) One consumer adv9cate who at the time of
24 appointment rep.-esents consumers of skilled nursing
2.5 Facilities.
26 (C) One pers011 who is a director or representative of
27 a nonprofit s.killed nursing Facility at the time of
28 appointment, and who is knowledgeable with acuity
29 systems needs and development.
30 (3) The Speaker of the Assembly shall appoint three
31 members as follows:
32 (A) One registered nurse who is not practicing at the
33 time of appointment, but who has a background in
34 gerontological nursing and is knowledgeable i11 acuity ,
35 systems development.
36 (B) One consumer advocate who at the time of
37 appointment represents consumers of ski1led nursing .
38 faci1ities.
39 ( C) One person who is an owner of a proprietary
40 skilled nursing facility, and who is kno•~ledgeable of,.
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\, l acuity system needs and developme11t:
2 (b) Tl1e committee shall appoint its own chairperson
3 from its membership, and each member shall receive per
4 diem for work on the committee. The committee shall
5 repot't its recommendations to the Legislature on 01
6 before Janu~ry 1, 19$6.
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The people of the State of California do enact as follows:
1 SECTION l. Section 1422 of the Health and Safety
2 Code is amended to read:
3 1422. (a) The Legislature finds and declares that it is
4 the public policy of this slate to assure that long-term
5 health care facilities provide the highest level of care
o possible. The Legislature further finds that inspections
7 are the most effective means of furthering this policy. It
8 is not the intent of the Legislature by the amendment of
9 subdivision (b) enacted by Chapter 1597 of the Statutes
10 of 1982 to reduce in any way the resources available.to the
11 state department ,or inspections, but rather to provide
12 the state department with the greatest flexibility to
13 concentrate its resources where they can be most
14 effective.
15 (b) Without providing notice of these inspections, the
'16 state department shall, in addition to any inspections
· 17 conducted pursuant to complaints filed pursuant to
18 Section 1419, conduct inspections annually, except with
19 regard to those facilities which have no class A or class B
20 violations in the past two inspection years, and the state
21 department shall also conduct inspections as may be
22 necessary to .assure the health, safety, and security of
23 patients in long-term care health facilities. Every facility
24 shall be inspected at least once every two years.
25 (c) With respect to the annual inspections conducted
26 pursuant to subdivision (b), the state department shall
27 develop and implement, to the extent permitted by
28 federal law or after obtaining an appropriate federal
29 waiver, a program to divide the inspections into three or
30 more segments in order to provide for more frequent
31 visitation.
32 SEC. 2. Section 1422.5 is added to tl1e Health and
33 Safety Code, to read:
34 1422.5. (a} The state department shall develop lmd
35 establish a co11sumer information service system to
36 provide updated and accurate informa 1.ion to·the general
3j public and consumers regarding long-term care facilities
' 38 in their communities. The consumer information service
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l system shall include, but need not be limited to, all of the
2 following elements:
3 (1) An on-line inquiry system accessible through a
4 statewide toll-free "800" number.
5 (2) Long-term health care facility profiles, with data
6 on services provided, history of citations and complaints,
1 and a summary of care trends covering the most recent
8 four-year period.
9 (3) li'1formation regarding complaints against
10 facilities, including the action taken, the date of' action,
11 the response of the faci1ity, th~ current status of the
12 action, ,md the results of any appeals.
13 (4) A comparability rating system of facilities, which
14 shall be uniform statewide and include three to five
15 gradations (for example, superior, above average,
16 average, below average, and "do not refer';.
17 (5) A means of automatically distributing reports on
18 . facilities to designated groups.
19 (b) Where feasible, the state departri1ent shall
20 interface the consumer information service system with
21 its proposed Automated Certificah'on and Licensure
22 Information Management System.
23 (c) It is the intent of the Legislature that the state
24 department, in developing and establishing the system
25 pursuant to subdivision (a), maximize the use of available
26 federal funds.
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AB 2265 -10-
l facility's conformity with the rehabilitation plan. Failure t.
2 to follow the plan shall be grounds for license revocation
3 or suspension pursuant to Article 5 ( commencing with
4 Section 1294). · ·
5 (e) The owner of the facility may at any time sell,
6 lease, or close the facility, subject to the following
7 provisions:
8 ( 1) If the owner closes the facility, or the· sale or lease
9 results in the closure of the . facility, the court shall
10 determine if a transfer plan is necessary. If the court so
11 determines, the court shall adopt' and implement a
12 transfer plan uf not more than 30 days.
13 (2) If the licensee proposes to sell or lease the facility
14 and the facility will continue to operate as a long-term
15 health care facility, the court and the state depar~ent
16 shall reevaluate any proposed transfer plan. If the court
17 and the state department determine that the sale or lease
18 of the facility will result in compliance with licensing
19 standards, the transfer plan and the receivership shall,
20 subject to such conditions that the court may impose and
21 enforce, be terminated upon the effective date of the sale
22 or lease.
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1 law, in the health care record for a patient of a long-term
2 health care facility, it shall be presumed that the required
3 medication, treatment, or care has not been provided.
4 (b) When an entry in the health care record for a
5 patient of a long-term health care facility shows that
6 required medication, treatment, or care was given, and in
7 fact such medication, treatment, or care was not given as
8 recorded, it shall be presumed that the entry was made
9 with the knowledge it was false.
10 (c) The presumption established by this section may
11 be rebutted by a licensee only upon a showing of clear
12 and convincing evidence.
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compliance with orders issued by the t'OUrt, to temporarily r .
operate the facility for not more than 3 months, which may -·
be extended for additional periods, as specified, upon petition
by the Director of Socfal Services whenever circumstances
exist indicating th~t continued management of the facility by
the current licensee would present an imminent danger of
physical harm or death to the residents or clients. The excess r .
of the facility's income over its expenses would be paid -:
monthly to the licensee during the receivership.
This bill would provide that the receiver's salary be
included in the licenses, unless the facility's revenues are
insufficient to meet such licenses in addition to other
operating expenses of the. facil!ty, in such case the salary
would be payable from the General Fund. To the extent steite .
funds are advanced for the salary of the receiver or any other
expenses in connection with the receirfership, the bill would
·require that the state be reimbursed from the revenues
. accruing to the facility, or, if the revenues a.re insufficient to
reimburse the state, would make the unreimbursed amount
a lien on the assets of the fa~ility or the proceeds from the sale C
thereof. This bill would provide that the lien shall not attach .
to the interests of a lessor, unless the lessor is operating the
·facility. ' . I
The bill would authorize the court to order immediate ~
· payment to the receiver for services which have been '-.
rendered and not more than one month's advance payment 1
to the receiver of any sums that will become payable under ,
the Medi-Cal program and would~ equire the court to provide 1
for transfer of patients from the facility, where the licensee
refuses to agree to a prescribed rehabilitation plan or the
coll!'t finds that the facility either cannot be brought into
compliance with state standards during the receivership ar
will not maintain compliance after termination of the 0
receivership.
This bill would provide that a receiver operating a
community care facility would be liable only for damages
resulting from acts of gross negligence in the operation of the
. facility and intentional tortious acts. The bill would provide
that the state would be liable only for damages resulting from
negligence of the receiver in the operation of the facility. C
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\ (3) Existing law does not require each facility required to
. be licensed pursuant to the California Community Facilities
"'" Act to keep a daily record of clients in the facility.
This bill would impose such a requirement. This would
impose a state-mandated local program since any violation of
the laws or regulations under the California Community Care
Facilities Act constitutes a misdemeanor. It would also impose
a state-mandated local program upon local agencies wliich
maintain facilities wrJch would be subject to the
requirement.
(4) Article XIII B of the California Constitution and
Sections 2231 and 2234 of the Revenue and Taxation Code
require the state to reimburse local agencies and school
districts for certain costs . mandated by the state. Other
provisions require the Department of Finance to review
statutes disclaiming these costs and provide, in certain cases,
for making claims to t.he State Board of Control for
reimbursement.
However, this bill would provide that no appropriation is
made and no reimbursement is required by this act for a
specified reason.
(5) Article XIII B of the California Constitution and
Sections 2231 and 2234 of the Revenue and Taxation Code
require the state to reimburse local agencies and school
districts for certain costs mandated ~y the state. Other
provisions require the Department of Finance to review
statutes disclaiming these costs and provide, in certain cases,
for making claims to the State Board of Control for
reimbursement.
This bill would provide that no appropriation is made by
this act for the purpose of making reimbursement pursuant to
the constitutional mandate or Section 2231 or 2234, but would
recogniie that local agencies and school districts may pursue
their other available remedies to seek reimbursement for
these costs.
(6) This bill would provide that, notwithstanding Section
2231.fS of the Revenue and Taxation Code, this act does not
c~ntuin a repealer. as.required by that section; ther.efore, the
provisions of the act would remain in effect unless and until
they are amended or repealed by a later enacted act.
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1 suspension shall be deemed vacated if the director fails to •, ·
2 make a final determination on the merits within 30 days
3 after the original hearing has been completed.
4 (b) The deparhnent shall contact any l~al agency
5 that mcy have placement or advocacy responsibility for
G residents or cUentf; of a facility after a decision is made to
7 temporarily suspend lhe license, registration, or permit
8 of the facility· and prior to its imple· Jntation. The
9 department shall work with these agencies to locate
10 alternative placement sites and to contact relatives
11 responsible for the care of these clients or residents.
12 ( c) In any case where the department alleges that
13 clients or residents are in need of, but not receiving
14 · proper medical attention, the department shall do the
15 following:
16 (1) Consult with physicians and surgeons about the
17 necessity of removing clients on an immediate basis.
18 (2) Where the department temporarily suspends the
19 license, registration, or permit of a fatJility, use physicians
20 and surgeons or oth~r medical personnel· deemed
21 appropriate by the department to provide onsUe client
22 evaluation.
23 (3) Remove only those clients or residents who are in
24 need of proper medical care if the department
25 determines that other clients or residents are not in
26 physical danger.
21 (d) The department .may impose a fine on a facility
28 which has had its license, registration, or permit
29 temporarily suspended. The amount of the fine shall not
30 exceed the .costs to the department in administering tho
31 requirements of this section. This fine shall be separate
32 from the civil penaities for facility deficiencies which
33 may be levied.
34 ~~
35 SEC. 5. Section 1557.5 is added to the.Health and
· 36 Safety Code, to read:
37 1557.5. The Auditor General shall report to the
38 Legislature by April l, 1987, on the implementation of the
39 procedures established in Section 1556.
40 SEG S:
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l would have had if the receiver had not been appointed.
2 ( 4) May use the funds, building, fixtures, furnishings,
3 and any accompanying consumable goods in the
4 provision of care and services to residents and to any
5 other persons receiving services fr".\m the facility at the
6 time the petition for receivership· was filed. · ·
7 (5} Shall take title to all revenue cor1.1ing to the facility
8 in the name of the receiver who shall use it for the
9 following purposes in descending order of priority:
10 (A) To pay wages to staff. The receiver shall have full ,
11 power to hire, direct, manage, and discharge employees ,
12 of the facility, subject to any contractual rights they may:
13 h~ve. The receiver shall pay employees at the same rate
14 of compensation, including benefits, that the employees•
15 would have received from the licensee.
16 (B) To preserve resident's funds. The receiver shall be
17 entitled to, and shall take, possession of all property or
18 assets of residents which are in the possession of the
19 licensee or operator of the facility. The receiver shall
20 preserve all property, as~ts, and records of residents of
21 which the receiver takes possession.
22 (C) To contract for such outside services as may be
23 needed for the operation of the community care facility.
24 Any contract for outside services in exce~s of three
25 thousand dollars ($3,000) shall be approved by the court.
26 (D) To pay commercial creditors of the community
ZT · care facility. The receiver shall honor all leases,
28 mortgages,. and· secured transactions affecting the
29 building in which the facility is located and all goods and
30 fixtures in the building of which the receiver has taken
31 po.ssession, but only to the extent of payments which, in
32 the case of a rental agreement, are for the use of the
33 property during the period of receivership, or which, in
34 the case of a purchase agreement; come due during the
35 period of receivership.
36 (E) To receive a salary, as approved by the court.
37 (F) To do all things necessary and proper to maintain
38 and operate the facility in accordance with sound fiscal
39 policies. The receiver shall take such action as is
40 reasonably neces:iary to protect or conserve the assets or
SB 1327 -12-
l remainder of income over expenses for 8tieh the montl
2 shall be returned to the licensee. A copy of thc-.
3 accounting shall be provided to the licensee. The license£
4 or owner of the community care facility may petition the
5 court for a determination as to the reasonableness of an}•
6 expenditure made pursuant to paragraph (5) o:--
7 subdivision (a) of Section 1559.
8 1559.3. (a) The receiver shall be appointed for aI\
9 -initial period of not more than three months. The initia 1
10 three-month period may be extended for additiona
11 periods not exceeding three months, as determined b}'
12 the court pursuant to this section. At the end of twc
13 months, the receiver sh~ report to the court on ib
14 assessment of the probability that the community carE
15 facility will meet state standards for operation by the enc..
16 of the initial three-month period and will continue tc
17 maintain compliance with these standards aftei
18 termination of the receiver's management. If it appear~
19 that the facility cannot be brought into compliance wit}
00 state standards within the initial three-month period, the
21 court shall take appropriate action as follows:
2'i (1) Extend the receiver's management for ar
23 additional three months if there is a substantial likelihooc
24 that the facility will meet state standards within thai
2.5 period and will. maintain compliance with thos« ·
26 standards after termination of the receiver•:
Z1 management. The receiver ·shall report to the court ir
28 writing upon the facility's progress at the end of six wee~
29 of an extension ordered pursuant to this paragraph. ·
30 (2) Order the director to revoke or temporaril}
31 suspend the license pursuant to Article 5 ( commencin~
32 with Section 1550) and extend the receiver•:
33 management for the period necessary to transfer patient:
34 in accordance with the tran,sfer plan, but in no event f01
35 more than six months from the date of the initia'
36' appointment of a receiver or 14 days, whichever i:
37 greater.
38 (b) If it appears at the end of six weeks of an extensio1.
39 ordered pursuant to paragraph ( 1) of subdivision (a) thal
40 the facility cannot be brought into compliance with statE
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determine if a transfer plan is necessary. If the comt so ..
determines, the court shall adopt mid implement a
transfer plan of not more than 30 days.
(2) If the licensee proposes to sell or lease the facility
~d the facility will continue to operate as a community
care facility, the coUI:t and the department shall
reevaluate any proposed transfer pllill. If the court and
th~ department determine that the sale or lease of the
facility will result in compliance with licensing standards,
the transfer plan and the receivership shall, subject to
such conditions that the court may impose and eI_Uorce,
be terminated upon the effective date of the sale or lease.
1559.5. (a) ihe salary, of the receiver shall be set by\
the court commensurate with community care facility
industry standards, giving due consideration to the
difficulty of the duties undertaken and the qualifications
of the appointed receiver, and shall be paid from the
revenue coming to the facility. If the revenue is
insufficient to pay the salary in addition to other expenses
of the operating facility, the receiver's salary shall be paid ,
from the General Fund.
(b) To the extent state funds are advanced for the
salary of the receiver or for other expenses in connection
with the receivership, as limited by subdivision (d) of
Section 1559, the state shall be reimbursed from the
revenues accruing to the fa_cility. If the revenues are
insufficient to reimburse the state,· the unreimbursed
amount shall constitute a lien upon the assets of the
facility or the proceeds from the sale thereof. The lien
shall not attach·to the interests of a lessor, unless the lessor
is operating the facility.
1559.7. (a) Nothing in this article shall impair the
right of the owner of a community care facility to dispose ,
of his or her property interests in the facility, but any,
facility operated by a receiver pursuant to this article
shall remain subject to administration by the receiver
until terminated by the court. The termination shall be
promptly effectuated, provided that the interests of the
~9 patients have been safeguarded as determined by the
40 court. f
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1 other persons receiving services from the facility at t}l.e
·2 time the petition for receivership was filed.
3 (5) Shall take title to all revenue coming to the facility
·4 in the name of the receiver who .shall use it for the
5 .follpwing purposes in descending order of priority:
6 (A) To pay wages to staff. Tl)e receiver shall have full
7 power to hire, direct, manage, and discharge employees
8 of the facility, subject to any contractual rights they may
9 have. The receiver shall pay employees at the same rate
10 of compensation, including benefits, that the employees
11 would have received from the licensee. · ,
12 (B) To preserve patient funds. The receiver shall be
13 entitled to, and shall take, possession of all property 01·
14 assets of residents which are in the possession of the
15 licensee or operator of the facility. The receiver shall
16 preserve all property, assets, and records of residents of
( 17 which the rec~iver talces possession.
18 ( C) To contract for such outside services as may be
19 ne_eded for the operation of the long•term health care
20 facility. Any contract for outside services in excess of
21 three thousand dollars ($3,000) shall be approved py the
22 court.
23 (D) To pay commercial creditors of the long-term
24 health care facility. Except as provided in Section 1329.5,
2,5 the receiver shall honor all leases, mortgages, and
26 secured transactions affecting the building in which the
27 facility is located and all goods and fixtures in the building
28 of which the receiver has talcen possession, but only to the
29 extent of payments which, in the case of a rental
30 agreement, are.for the use of the property during the
31 period of receivership, or which, in the case of a purchase
32 agreement, come due during the period of receivership.
33 (E) To receive a salary, as approved by the court.
34 (F) To do all things necessary and proper to maintain
35 and operate the facility in accord~ce with sound fiscal
36 policies. The receiver shall take such actior1 as is
37 reasonably necessary to protect or conserve the assets or
38 property of which the receiver takes possession and may
39 use such assets or property only in the performance of the
40 powers and duties set out in this section and by order of
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1 the court.
2 (G) To maintain a reasonable return on the licensee's ··
3 investment.
4 (b) A person who is served with notice of an order of
5 the court appointing a receiver and of the receiver's
6 name and address sha\} be liable to pay the r~ceiver,
7 rather than the licensee, for ,any goods or services
8 provided by the long-term health care facility after the
9 date of the order. The receiver shall give a receipt for
10 each such payment and shall keep a copy of each receipt
11 on file. The receiver shall deposit amounts received in a -
12 special account and shall use this account for all
13 disbursements. Payment to the receiver pursuant to this
14 subdivision shall discharge the obligation to the extent of
15 the payment and shall not thereafter be the basis of a .
16 claim by lhe licensee or any other person. A resident may
17 not be discharged nor may any contract or rights be
18 forfeited or impaired, nor may any forfeiture be effected
19 or liability increased, by reason of an omission to pay the
20 licensee, operator, or other person a sum paid to the
21 receiver pursuant to this subdivision.
22 (c) Nothing contained in this section shall be
23 construed to sllSpend, during the temporary
24 management by the receiver, ai'ly obligation of the
25 licensee for payment of local, state, or federal truces. No
26 licensee may be held liable for acts or omissions of the
'l1 receiver during the term of the temporary management.
28 ( d) Upon petition of the receiver, the court may order
29 immediate payment to the receiver for past services
30 which have been rendered and billed, and the court may
31 aiso order a sum not to exceed one month's advance
32 payment to the receiver of any sums that will become
33 payable under the Medi-Cal program. ·
34 SEC. 3. Section 1329.5 is added to the Health and
35 Safety Code, to read:
36 1329.5. (a) A receiver may not be required to honor
37 any lease, mortgage, secured transaction or other wholly
38 or partially executory contract entered into by the
39 owners or operators of the facility if both of the following
40 criteria are met:
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(2) Pa.,t and current violations in oth~r. long-term
health care facilities operated by the licensee.
(3) Efforts by the licensee to preverat an.d correct past
violations.
( 4) The financial ability of the licensee to operate in
compliance with state standards.
(5) The licensee's willingness and ability to comply
with the rehabilita.tioti plan established pw.-suant to
subdivision (d).
( 6) The recommendations and reports of the receiver.
(d) Management of a long-term health care facility
operated by a receiver pursuant to this .µ-tic:\e shall not be
returned to the licensee or to any agent or employee of
the licensee unless a written rehabilitation plan is
approved by the coutt and which specifies actions to be
taken by the licensee to improve the management of, and
the patient care provided by, the facility and to secure
and maintain compliance with state standards for
operation. The 'state department shaJ! monitor the
facility's conformity with the rehabilitation plan. Failure
to follow the plan shall be grounds for license revocation
or suspension pursuant to Article 5 ( commencing with
Section 1294).
(e) The owner of the facility may at any time sell,
lease, or close the facility, subject to the following ·
provisions:
(1) If the owner clo~s the fP.cility, or the sale or lease
results in the closure of the facility, the court shall
determine if a trnnsfer plan is necessary. If the court so
determines, the ca~t ~hall adopt and implement a
transfer plan of not more than 30 days.
(2) If the licensee proposes to sell or lease the facility
and the facility will continue to O(X!rate as a long-term
health care facility, the court and the state department
shall reevaluate any proposed transfer plan. If the court
and the state department determine that the sale or lease
of the facility will result in compliance with licensing
standards, the transfer plan and the receivership shall,
subject to such conditions that the court may impose and
enforce, be terminated upon the effective date of the sale
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"1<
1 because the only costs which may be incurred by a local { ..
2 agency or school district will be incurred because this act ,
3 creates a new crime or infraction, changes the definition
4 of a crime or infraction, changes the penalty for a crime
·5 or infraction, or eliminates a crime or infraction.
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in skilled nursing facilities , and to evaluat~ and recqmmend J....
whether outcome-oriented standards shall be developed for
nursing care. It would prescribe that the committee appoint
its own chairperson from its membership and that each
member receive per die,n for work on the committee. It
would require the committee to report its recommendations
to the Legislature on or before January 1, 1986. (
This bill WOl!ld provide that the department regulations
setting forth the minimum number of equivalent nursing
hours per patient required in a skilled nursing facility be
utilized until a system of staffing, det~rmined by patient nee4,
is developed, as specified. It would revise the definition of
"nursing hours" to the calculation of 2 times the number of
hours worked per patient day by registered nurses and
licensed vocational nurses, making the hour calculation for
these positions the same as for aides, nursing assistants, and
orderlies.
This bill also deletes the requirement of utilization of a
registered nurse at all times if the department determines
that the services of a skilled nursing and intermediate care
facility require the utilization of a registered nurse.
Vote: majority. Appropriation: no. Fiscal co~mittee: yes.
State-mandated local program: no.
The people of the State of Calihrnia do enact as foDows:
1 SECTION 1. Section 1276.5 of the Health and Safety
2 Code is amended to read:
3 1276.5. The state department shall adopt regulations
4 setting forth the minimum number of equivalent and
5 actual nursing hours per patient required in skill~d
6 nursing and intermediate care facilities. The regulations
7 shall be utilized for skilled nursing facilities until such
8 time as a system of staffmg, determined by patient need, 1
9 is developed by the state department pursuant to Section
10 1276.6 ..
11 For the purposes of this section "nursing hours" means
12 the number of hours of work performed per patient day
13 by aides, n1:1rsing assistants, orderlies, registered nurses
14 and lice~~sed vocational nurses (except directors of
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contract where the relief is sought in an action upon the
contract if the court otherwise has jurisdiction of the
action.
(4) In all proceedings in forcible entry or forcible or
unlawful detainer:
(A) In actions to recover possession of real property
where rent is charged, and the amount of the last rental
charged is one thousand dollars ($1,000) per month or
less, .and the whol~ amount of damages claimed is fifteen
thousand dollars ($15,000) or less.
(B) In all. other actions to recover possession of real
property where the rental value is one thousaJ}d dollars
($1,000) per month or less, and the whole amount
claimed is fifteen thousand dollars ($15,000) or less.
(5) In all actions to e1;1force and foreplose liens on
personal property where the amount of the liens is fifteen
thousand dollars ($15,000) or less.
( 6) In all actions to enforce and foreclose liens of
mechanics, materialmen, artisans, laborers, and of all
other persons to whom liens are given under the
provisions of Chapter 2 ( commencing with Section 3109)
of Title 15 of Part 4 of Division 3 of the Civil Code where
the amow1t of the liens is fifteen thousand dollars
,($15,000) or less. However, where an action to enforce
the lien is pending in a municipal or justice court, and
affects property which is also affected by a similar action
pending in a superior court, or where the total amount of
the liens sought to be foreclosed against the same
property by action or actions in a municipal or justice
court aggregates an amount in excess of fifteen thousand
dollars ($15,000) the municipal or justice court in which
any such action, or actions, is, or are, pending, upon
motion of any interested party, shall order the action or
actiqns pending therein trlµlsferred to the proper
superior court. Upon the making of the order, the same
proc.:eedings shall be taken as are providea QY Section 399
with respect to the change of place of trial.
(7) In actions for declaratory relief when brought by
way of cross-complaint as to a right of indemnity with
respect to the relief demanded in the complaint or a
SB 1344 -4-
I
l cross-complaint in an action or proceeding otherwise · {
2 within the jurisdiction of the municipal or justice court.
3 (8) To issue temporary restraining orders and
4 preliminary injunctions, to take accounts, and to appoint
5 receivers where necessary to preserve the property or
6 rights of any party to an action of which the court has
7 jurisdiction; to appoint a receiver and to make any order
8 or perform any act, pursuant to Title 9 ( commencing '
9 with Section 680.010) of Part 2 (enforcement of
10 judgments) ; to determine title to personal property
11 seized in an action pending in such court.
12 (9) In all actions under Article 3 (commencing with
13 Section 708.210) of Chapter 6 of Division 2 of Title 9 of
14 Part 2 for the recovery of an interest in persol)al property
15 or to enforce the liability of the debtor of a judgment
16 debtor where the interest claimed adversely is of a value
17 not exceeding fifteen thousand dollar~ ($15 1000) or the
18 debt denied does not exceed fifteen thousand dollars
19 ($15,000).
20 (b) Each municipal and justice court has jurisdiction
21 of cases in equity as follows: \ ·
22 (1) In all cases to try title to personal property when
23 the amount involved is not more than fifteen thousand
24 doJlars ($15,000).
25 (2) In all cases when equity is pleaded as a defensive (
26 matter in any case otherwise properly pending in a
Z7 municipal or.,justice court.
28 (3) To vacate a judgment or order of such municipal
29 or justice court obtained through extrinsic fraud, mistake,
30 inadvertence, or excusable neglect.
31 (c) In any -action that is otherwise within its
32 jurisdiction, the court may impose liability whether the
33 theory upon which liability is sought t.> be Lnposed ,
34 involves legal or ~quitable principles. t
35 (d) Changes in the jurisdictional ceilings made by
36 amendments to this section at the 1977-78 Regular
37 Session of the Lef ~slature shall not constitute a basis for
38 the transfer to r.,1other court of any case pending at the
39 time such changes become operative.
40 (e) lnactionstoenforcetheLong-Term Care,Health, l
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-7--SB 1344
l securing a decision as to subject matters at the earliest
2 possible time.
3 (g) If the director's designee dismisses a citation as
4 provided in subdivision (a), or if a contested citation is
5 dismissed pursuant to court order;' the state department
6 shall take action immediately to ensure that the public
7 . record reflects in a prominent. manner that the citation
8 was dismissed.
9 (h} Upon a licensee notifying the director of its intent
10 to contest a citation or citations totaljng no more than
11 fifteen thousand dollars ($15,000), either the state or the
12 licensee may elect to submit the matter to bi,nding
13 arbitration. The parties shall agree upon an arbitrator
14 designated from the American Arbitration Association in
15 accordance with the association's established rules and
16 procedures. The arbitration hearing shall be set within 45
17 days of the petitioner's election,' but in no event less than
18 28 days from the date of selection of an arbitrator. The
19 arbitration hearing may be continued up to 15 additional
20 days if necessary at the arbitrator's discretion. The
21 decision of the arbitrator shall be based upon substantive
22 law and shall be binding on all parties, subject to judicial
23 review. This review shall be limited to whether there was
24 substantial evidence to support the decision of the
25 arbitrator. ,
26 The arbitrator shall determine which of the parties are
27 financially liable for arbitration costs based upon the
28 position each took at the commencement of the
29 arbitration proceedings compared to the decision of the
30 arbitrator.
31 The retention of, renewal of, or application for a license
32 to oper,'ite a skilled nursing facility or intermediate care
33 facility shall, for purposes of the administration of this
34 chapter, be deemed a written agreement to arbitrate
35 contested citations within the meaning of Title 9
36 (commencing with Section 1280} ofPart 3 of ihe Code of
37 Civil Procedure. Without extending the time for
38 commencement of these hearings, the provisions of
39 Section 1283.05 of the Code of Civil Procedure shall be
40 applicable to all proceedings to arbitrate citations issued
' .
'
SB 1344 -8-
1 pursuant lb this chapter, except that depositioru: may he("'
2 noticed and taken without prior approval of the
3 arbitrator. . 4 Penalties paid on violations under this chapter shall be
5 applied 2gainst the state department's accoth"lts to offset
6 any costs incurred by the state pursuant to this .
7 subdivision. Any costs or penalties assessed pursuant to ('.
8 the provisions of this chapter shall be paid within 30 days
9 of date decision becomes final. If a facility does not
10 comply with this provision, the state department shall
11 withhold any payment under the Medi-Cal program until
12 the debt is satisfied. No payment shall be withheld if the
13 state department determines that it would cause undue
14 hardship to the facility or to patients of the facility.
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SB 1346 -6-
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program, and the circumstances under which the law
permits a Medi-Cal recipient to be transferred
involuntarily.
SEC. 6. Section 14124.10 is added to the Welfare and
Institutions Code, to read:
14124.10. No licensed long-tenn health care facility
shall discriminate among its residents, or in the admission
of persons to the facility, on the basis of the source of
payment for the facility•s services. A facility may refuse
to admit a person, regardless of the source of payment for
the facility•s service, when the facility can demonstrate
that it cannot provide the care necessitated by the
condition of the person. This section shall apply to
licensed long-term health care facilities, to the extent uot
prohibited by federal law.
SEC. 7. Notwithstanding-Section 6 of Article XIII B of
the California Constitution and Section 2231 or 2234 of
the Revenue and Taxation Code, no appropriation is
made by this act for the purpose of making
reimbursement pursuant to these sections. It is
recognized, however, that a local agency or school
district may pursue any remedies to obtain
reimbursement available to it under Chapter 3
(commencing with Section 2201} of Part 4 of Division 1
of that code.
SEC. 8. Notwithstanding Section 2231.5 of the
Revenue and Taxation Code, this act does not contain a
repealer, as required by that section; therefore, the
provisions of this act shall remain in effect unless and
until they are amended or repealed by a later enacted
act.
0
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SB 1347 -2-
Safety, and Security Act of 1972 provides fo~ the issuance ·of.
citations by tl-ie State Department of Health Services for class~·
"A" and class "B" violations and the assessment of civil
penalties, as prescribed. Class "B" violations are defined
un4er existing law to be those the department determines to
have a direct or immediate relationship to the health, safety,
or security of long term health care facility patients, other -
than class "A" violations.
This bill would redefine class "B'' violations to include
violations having a direct or immediate relationship to health, ':
safety, security or welfare, as specified. It would make a '.
violation of patients' rights, as defined, which is determined
by the.department by regulation to cause, or to be likely to
cause, significimt emotional trauma to a patie11t, a class "~S'
violation except as specified. It would also require th1..,
department to issue citations upon receipt of credible
eyewitness evidence, as specified.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State .. mandated local program: no.
The people of the State of Cslifornia do enact as follow~:
1 SECTION 1. Section 1419 of the Health and Safety
2 Code is amended to read: .
3 1419. Any person may request an inspection of any
4 long-term health care facility in accordance with the
5 provisions of this chapter by giving notice to the state
6 department of an alleged violation of applicable
7 requirements of state law. Any such notice may be in
8 writing signed by the complaimmt and shall set forth with
9 reasonable particularity the matters qomplained of. The
10 complaint may also be made by telephone or personal
11 visit and an oral complaint shall be reduced to writing by
12 the state department. The substance of the complaint
13 shall be provided to the licensee no earlier than at the
14 commencement of the inspection. Neither the substance
15 of the complaint provided the licensee nor any copy of
16 the complaint or record published, released, or otherwise
17 made available to the licensee shall disclose the name of
18 any individual complainant or other person mentioned in 1
SB 1347 -4-
1 Saturday, Sunday, and holidays, after the · director
2 determines or has reasonable cause to determine that an
3 alleged violation has occurred, issue a notice to correct
4 the violation and of intent to issue a citation to the
5 licensee. The citation shall be served upon the licensee
6 within three days after completion of the inspection,
7 excluding Saturday, Sunday, and holidays, unless the
8 licensee agrees in writing to an extension of such time.
9 Service shall be effected either personally or by
10 registered or certified mail. A copy of the citation shall
11 also be-sent to each complainant. Each citation shall be
12 in writing and shall describe with particularity the nature
13 of the violation, including a reference to the statutory
14 provision, standard, rule or regulation alleged to have
15 been violated, the particular place or area of the facility
16 in which it occurred, as well as the amount of any
17 proposed assessment of a civil·penalty. The name of any
18 patient jeopardized by the alleged violation shall not be
19 specified in the citation in order to protect the privacy of
20 the patient. However, at the time the licensee is served
21 with the citation, the licensee shall also be served with a
22 written list of each of the names of the patients alleged
23 to have been jeopardized by the violation, which shall not
24 be subject to disclosure as a public re9ord. The citation
25 shall fix the earliest feasible time for the elimination of
26 the condition constituting , the alleged violation, ·when
27 appropriate.
28 (b) Where no harm to patients or guests has occurred,
29 a single incident, event, or occurrence shall result in no
30 more than one citation for each regulation violated.
31 (c} No citation shall be issued for a violation which has
32 been reported by the licensee tq the state department, or
33 its designee, as an "unusual occurrence," if all of the
34 following conditions are met:
35 (1) The violation has not caused harm to any patient
36 or guest, or significantly contributed thereto.
37 (2) The licensee has promptly taken reasonable
38 measures to correct the violation and to prevent a
39 recurrence.
40 (3} The unusual occurrence report was the first source
,::.----------------
SB 1347 -6-
, r
l long-term health care facility patients, other than clast.,.. 1
,
2 "A" violations. Unl~ss otherwise determined by the sta ... ·., ,
3 department to be a class "A" violation pursuant to this 1
4 chapter and the rules and regulations adopted pursuant
5 thereto, any violation of a patient's rights as set forth in
6 Sections 7252'1" and 73523 of Title 22 of the California
7 Admini~trative Code which is determined l:.y the state
B department by regulation to cause> or to be likely to
9 cause, significant anxiety. humiliation, anguish, indignity,
10 fear, or other emotional trauma to a patient, is a class "B"
11 violation. A class "B" violation is subject to a civil penalty
12 in an amount not les~ than fifty dollars ($50) and not
13 exceeding two hundred fifty dollars ($250) for each and
14 every violation. A citation for-a class "B" violation shall
15 specify the time within which the violation is required to
16 be corrected.
17 If a class "B" violation is corrected within the time
18 specified, no civil penai.ties shall be imposed, unless it is
19 a second or subsequent violation of the same regulation
20 occurring within the period since and including the
21 previous full annual licensing survey inspection or 12
22 months, whichever is greater. In no case, shall the period
23 extend beyond 13 months. At the informal conference,
24 the director's designee may waive or reduce the penalty
25 as specified in subdivision (a) of Section 1428, talcing into
26 consideration the seriousness of the previous and present
27 violations, the similarity between the two violations, the
28 extent to which there is a direct relationship to the health
29 and safety or security of patients and the good faith
30 exercised by the licensee in correcting the problem. The
31 decision to waive or not to waive these penalties shall not
32 be reviewable. .
33 SEC. 4. Section 1435.5 is added to the Health and
34 Safety Code, to read:
35 1435.5. (a) When an enforcement action is taken
36 against a long-term health care facility, the director shall
37 issue a press release to newspapers and other media in
38 the city, county, or city and county in which the facility
39 is located, explaining the action taken and the conditions
40 upon which the action is predicated, along with such