BILL NUMBER: AB 601	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 24, 2015
	AMENDED IN ASSEMBLY  APRIL 23, 2015

INTRODUCED BY   Assembly Member Eggman
   (Principal coauthor: Assembly Member Brown)
   (Coauthors: Assembly Members Calderon and Mark Stone)
   (Coauthor: Senator Block)

                        FEBRUARY 24, 2015

   An act to amend Sections  1569.2,  1569.15  ,
1569.16, 1569.50, 1569.58,  and 1569.618 of, and to add 
Sections   Section  1569.356  and 1569.501
 to, the Health and Safety Code, relating to health
facilities.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 601, as amended, Eggman. Residential care facilities for the
elderly: licensing and regulation.
   Existing law, the California Residential Care Facilities for the
Elderly Act, provides for the licensure of residential care
facilities for the elderly by the State Department of Social
Services. Existing law requires any person seeking a license for a
residential care facility for the elderly to file an application with
the department, as specified. Among other required application
information, if the applicant is a firm, association, organization,
partnership, business trust, corporation, or company, evidence of
reputable and responsible character is required to be submitted as to
the members or shareholders thereof, and the person in charge of the
residential care facility for the elderly for which the application
for issuance of license or special permit is made.
   This bill would, among other things, additionally require the
applicant to disclose specified information, including whether it is
a for-profit or not-for-profit provider, the  names and
license numbers   name, address, and license number
 of other community care or health care facilities owned,
managed, or operated by the same  applicant or by any parent
organization of the  applicant, and the  names and
business addresses   name and address  of any
person, organization, or entity  listed as owner of record in
the real estate of the facilities.   that owns the real
property in which specified facilities are located.  The bill
would require an applicant to provide additional information,
including evidence of the right of possession of the facility
 at   prior to  the time the license is
granted. The bill would also require the department to cross-check
specified applicant information , if electronically available,
 with the State Department of Public Health to determine if the
applicant has a prior history of operating, holding a position in, or
having ownership in, specified licensed facilities.  The bill
would require the information specified in these provisions to be
provided to the department upon initial application for licensure,
and any change in the information to be provided within 30 calendar
days of the change, except as specified. The bill would also require
the department to assess an immediate civil penalty of $1,000 for a
violation of these provisions subsequent to licensure. 
   Existing law requires the Director of Social Services to establish
an automated license information system on licensees and former
licensees of licensed residential care facilities for the elderly.
The system is required to maintain a record of any information that
may be pertinent for licensure.
   This bill would require, to the extent that the department's
computer system can  electronically  accommodate additional
information, the department to post on its Internet Web site
specified information, including the current name, business address,
and telephone number of the licensee.
   Existing law authorizes the department to deny any application for
a license to operate a residential care facility for the elderly or
to suspend or revoke a license on certain grounds, including, but not
limited to, a violation by the licensee of applicable provisions or
of the rules and regulations adopted under those provisions, conduct
that is inimical to the health, morals, welfare, or safety of either
an individual in or receiving services from the facility or the
people of the state, or engaging in acts of financial malfeasance
concerning the operation of a facility.
   This bill would  require   authorize those
remedies to be applied if the department finds that specified persons
or entities, including any employee, administrator, partner,
officer, director, member, or manager of the applicant or licensee
  , has engaged in any of those conducts relating to
specified licensed facilities in California or any other state. The
bill would also authorize  the department to deny an application
for licensure or  authorize it  to subsequently
revoke a license if the applicant knowingly  withheld material
information,  made a false statement of  material  fact
with regard to information that was required by the application for
licensure,  and would authorize the department to deny an
application for licensure or subsequently revoke a license if the
applicant   or  did not disclose 
enforcement   administrative disciplinary  actions
on the application as required.  The bill would also
authorize the department to deny an application for licensure if the
applicant has a history of noncompliance with the requirements
imposed under specified facility licenses or a similarly licensed
facility in another state, applicable state and federal laws and
regulations, and the requirements governing the operators of those
facilities. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 1569.2 of the   Health
and Safety Code   is amended to read: 
   1569.2.  As used in this chapter:
   (a)  "Administrator" means the individual designated by the
licensee to act on behalf of the licensee in the overall management
of the facility. The licensee, if an individual, and the
administrator may be one and the same person. 
   (b) "Beneficial ownership interest" means an ownership interest
through the possession of stock, equity in capital or any interest in
the profits of the applicant or licensee or through the possession
of such an interest in other entities that directly or indirectly
hold an interest in the applicant or licensee. The percentage of
beneficial ownership in the applicant or licensee that is held by any
other entity is determined by multiplying the other entities'
percentage of ownership interest at each level.  
   (b) 
    (c)  "Care and supervision" means the facility assumes
responsibility for, or provides or promises to provide in the future,
ongoing assistance with activities of daily living without which the
resident's physical health, mental health, safety, or welfare would
be endangered. Assistance includes assistance with taking
medications, money management, or personal care. 
   (d) "Chain" means a group of two or more licensees that are
controlled, as defined in this section, by the same person or
entities.  
   (e) "Control" means the ability to direct the operation or
management of the applicant or licensee and includes the ability to
exercise control through intermediary or subsidiary entities. 

   (c) 
   (f)  "Department" means the State Department of Social
Services. 
   (d) 
    (g)  "Director" means the Director of Social Services.

   (e) 
    (h)  "Health-related services" mean services that shall
be directly provided by an appropriate skilled professional,
including a registered nurse, licensed vocational nurse, physical
therapist, or occupational therapist. 
   (f) 
    (i)  "Instrumental activities of daily living" means any
of the following: housework, meals, laundry, taking of medication,
money management, appropriate transportation, correspondence,
telephoning, and related tasks. 
   (g) 
    (j)  "License" means a basic permit to operate a
residential care facility for the elderly. 
   (k) "Parent organization" means an organization in control of
another organization either directly or through one or more
intermediaries.  
   (h) 
    (l)  "Personal activities of daily living" means any of
the following: dressing, feeding, toileting, bathing, grooming, and
mobility and associated tasks. 
   (i) 
    (m)  "Personal care" means assistance with personal
activities of daily living, to help provide for and maintain physical
and psychosocial comfort. 
   (j) 
    (n)  "Protective supervision" means observing and
assisting confused residents, including persons with dementia, to
safeguard them against injury. 
   (k) 
    (o)   (1)    "Residential care
facility for the elderly" means a housing arrangement chosen
voluntarily by persons 60 years of age or over, or their authorized
representative, where varying levels and intensities of care and
supervision, protective supervision, or personal care are provided,
based upon their varying needs, as determined in order to be admitted
and to remain in the facility. Persons under 60 years of age with
compatible needs may be allowed to be admitted or retained in a
residential care facility for the elderly as specified in Section
1569.316. 
   This 
    (2)     This  subdivision shall be
operative only until the enactment of legislation implementing the
three levels of care in residential care facilities for the elderly
pursuant to Section 1569.70. 
   (  l  )
    (p)  "Residential care facility for the elderly" means a
housing arrangement chosen voluntarily by persons 60 years of age or
over, or their authorized representative, where varying levels and
intensities of care and supervision, protective supervision, personal
care, or health-related services are provided, based upon their
varying needs, as determined in order to be admitted and to remain in
the facility. Persons under 60 years of age with compatible needs
may be allowed to be admitted or retained in a residential care
facility for the elderly as specified in Section 1569.316.
   This subdivision shall become operative upon the enactment of
legislation implementing the three levels of care in residential care
facilities for the elderly pursuant to Section 1569.70. 
   (m) 
    (q)  "Sundowning" means a condition in which persons
with cognitive impairment experience recurring confusion,
disorientation, and increasing levels of agitation that coincide with
the onset of late afternoon and early evening. 
   (n) 
    (r)  "Supportive services" means resources available to
the resident in the community that help to maintain their functional
ability and meet their needs as identified in the individual resident
assessment. Supportive services may include any of the following:
medical, dental, and other health care services; transportation;
recreational and leisure activities; social services; and counseling
services.
   SECTION 1.   SEC. 2.   Section 1569.15
of the Health and Safety Code is amended to read:
   1569.15.  (a) Any person seeking a license for a residential care
facility for the elderly under this chapter shall file with the
department, pursuant to regulations, an application on forms
furnished by the department, that shall include, but not be limited
to, all of the following:
   (1) Evidence satisfactory to the department of the ability of the
applicant to comply with this chapter and of rules and regulations
adopted under this chapter by the department.
   (2) Evidence satisfactory to the department that the applicant is
of reputable and responsible character. The evidence shall include,
but not be limited to, a criminal record clearance pursuant to
Section 1569.17, employment history, and character references. If the
applicant is a firm, association, organization, partnership,
business trust, corporation, or company, like evidence shall be
submitted as to the  members or shareholders thereof
  individuals or entities  holding a beneficial
ownership interest of 10 percent or more, and the person who has
operational control of the residential care facility for the elderly
for which the application for issuance of license or special permit
is made.    Notwithstanding   anything in this
section   , an applicant or licensee is not required to
disclose the names of investors in a publicly traded company or
investment fund  if those investors are silent investors who
do not have influence or control over the investments or operations
of the company or fund. 
   (3) The applicant shall disclose whether it is a for-profit or
not-for-profit provider, the names and license numbers of other
community care or health care facilities owned, managed, or operated
by the same applicant and by any parent organization of the
applicant, the names and business addresses of any person,
organization, or entity listed as the owner of record in the real
estate of the facilities, including the buildings and grounds
appurtenant to the buildings, and the email address of the applicant.
 
   (3) If applicable, the following information:  
   (A) Whether it is a for-profit or not-for-profit provider. 

   (B) The name, address, license number, and licensing agency name
of other community care or health care facilities owned, managed, or
operated by the same applicant or by any parent organization of the
applicant.  
   (C) The name and business address of any person or entity that
controls, as defined in Section 1569.2, the applicant.  
   (D) If part of a chain, as defined in Section 1569.2, a diagram
indicating the relationship between the applicant and the persons or
entities that are part of the chain, including those that are
controlled by the same parties, and in a separate list, the name,
address, and license number, if applicable, for each person or entity
in the diagram.  
   (E) The name and address of any persons, organizations, or
entities that own the real property on which the facility seeking
licensure and the licensed facilities described in subparagraph (B)
are located.  
   (F) The name and address of any management company serving the
facility and the same information required of applicants in
subparagraphs (C) and (D) for the management company. 
   (4) Evidence satisfactory to the department that the applicant has
sufficient financial resources to maintain the standards of service
required by regulations adopted pursuant to this chapter.
   (5)  Disclosure of the applicant's or the applicant's
chief executive officer, general partner, or like party's 
 The name of the person with operational control of the
applicant, such as the chief executive officer, general partner,
owner or like party, and state that person's  prior or present
service  in California or any other state  as an
administrator,  chief executive officer,  general partner,
 corporate officer or  director  like role 
of, or as a person who has held or holds a beneficial ownership 
interest  of 10 percent or more in, any residential care
facility for the elderly, in any facility licensed pursuant to
Chapter 1 (commencing with Section 1200), Chapter 2 (commencing with
Section 1250), or Chapter 3 (commencing with Section 1500), or a
similarly licensed facility  in California or any other state
 within the past 10 years. 
   (6) The following information regarding the applicant and each
individual or entity identified pursuant to paragraph (5): 

   (6) Disclosure of any 
    (A)     Any  revocation, suspension,
probation,  exclusion order,  or other similar 
administrative  disciplinary action  taken 
 that was filed and sustained  in California or any other
state, or in the process of being  taken,  
adjudicated,  against a facility  associated with a person
 identified  in   pursuant to 
paragraph (5) or  against a license held or previously held
by the entities and persons specified in paragraph (5)  
by any authority responsible for the licensing of health,
residential, or community care facilities  within the past 10
years. 
   (B) Copies of final findings, orders, or both, issued by any
health, residential, or community care licensing agency or any court
relevant to the actions described in subparagraph (A).  
   (C) Any petition for bankruptcy relief filed within five years of
the date of application involving operation or closure of a community
care facility licensed in California or any other state, the court,
date, and case number of the filing, and whether a discharge was
granted. If a discharge was not granted, the applicant shall provide
copies of any court findings supporting denial of discharge. 
   (7) Any other information as may be required by the department for
the proper administration and enforcement of this chapter.
   (8) Following the implementation of Article 7 (commencing with
Section 1569.70), evidence satisfactory to the department of the
applicant's ability to meet regulatory requirements for the level of
care the facility intends to provide.
   (9) Evidence satisfactory to the department of adequate knowledge
of supportive services and other community supports that may be
necessary to meet the needs of elderly residents.
   (10) A signed statement that the person desiring issuance of a
license has read and understood the residential care facility for the
elderly statute and regulations.
   (11) Designation by the applicant of the individual who shall be
the administrator of the facility, including, if the applicant is an
individual, whether or not the  licensee  
applicant  shall also be the administrator.
   (12) Evidence of the right of possession of the facility 
at   prior to  the time the license is granted,
which may be satisfied by the submission of a copy of 
applicable portions of a   the entire  lease
agreement or deed.
   (13) Evidence of successfully completing a certified prelicensure
education program pursuant to Section 1569.23.
   (14) For any facility that promotes or advertises or plans to
promote or advertise special care, special programming, or special
environments for persons with dementia, disclosure to the department
of the special features of the facility in its plan of operation.
   (b) The department shall cross-check all applicant information
disclosed pursuant to paragraph (5) of subdivision (a)  , if
electronically available,  with the State Department of Public
Health to determine if the applicant has a prior history of
operating, holding a position in, or having ownership in, any entity
specified in paragraph (5) of subdivision (a).
   (c) Failure of the applicant to cooperate with the licensing
agency in the completion of the application may result in the denial
of the application. Failure to cooperate means that the information
described in this section and in the regulations of the department
has not been provided, or has not been provided in the form requested
by the licensing agency, or both.
   (d) The information required by this section shall be provided to
the department upon initial application for licensure, and any change
in the information shall be provided to the department within 30
calendar days of that  change.   change unless a
shorter timeframe is required by the department. A licensee of
multiple facilities may provide a single notice of changes to the
department on behalf of all licensed facilities within the chain.
Information pertaining to facilities operated in other states may be
updated on an annual basis, except the following information shall be
provided within 30 calendar days of the change:  
   (1) Information specified in paragraph (6) of subdivision (a).
 
   (2) Information regarding newly acquired community care or health
care facilities owned, managed, or operated by the licensee or by any
parent organization of the licensee.  
   (e) An applicant or licensee shall maintain an email address of
record with the department. The applicant or licensee shall provide
written notification to the department of the email address and of
any change to the email address within 10 business days of the
change.  
   (e)
    (f)  (1) The department  shall  
may  deny an application for licensure or may subsequently
revoke a license under this chapter if the applicant knowingly 
withheld material information or  made a false statement of 
material  fact with regard to information that was required by
the application for licensure.
   (2) The department may deny an application for licensure or may
subsequently revoke a license under this chapter if the applicant did
not disclose  enforcement   administrative
disciplinary  actions on the application as required by
paragraph (6) of subdivision (a). 
   (3) In addition to the remedies provided under this chapter, the
department shall, subsequent to licensure, assess a civil penalty of
one thousand dollars ($1,000) for a material violation of this
section. 
   SEC. 3.    Section 1569.16 of the   Health
and Safety Code   is amended to read: 
   1569.16.  (a)  (1)  If an application for a license indicates, or
the department determines during the application review process, that
the applicant previously was issued a license under this chapter or
under Chapter 1 (commencing with Section 1200), Chapter 2 (commencing
with Section 1250), Chapter 3 (commencing with Section 1500),
Chapter 3.01 (commencing with Section 1568.01), Chapter 3.4
(commencing with Section 1596.70), Chapter 3.5 (commencing with
Section 1596.90), or Chapter 3.6 (commencing with Section 1597.30)
and the prior license was revoked within the preceding two years, the
department shall cease any further review of the application until
two years have elapsed from the date of the revocation. All
residential care facilities for the elderly are exempt from the
health planning requirements contained in Part 2 (commencing with
Section 127125) of Division 107.
   (2)  If an application for a license or special permit indicates,
or the department determines during the application review process,
that the applicant previously was issued a certificate of approval by
a foster family agency that was revoked by the department pursuant
to subdivision (b) of Section 1534 within the preceding two years,
the department shall cease any further review of the application
until two years shall have elapsed from the date of the revocation.
   (3)  If an application for a license or special permit indicates,
or the department determines during the application review process,
that the applicant was excluded from a facility licensed by the
department pursuant to Section 1558, 1568.092, 1569.58, or 1596.8897,
the department shall cease any further review of the application
unless the excluded individual has been reinstated pursuant to
Section 11522 of the Government Code by the department.
   (b)  If an application for a license or special permit indicates,
or the department determines during the application review process,
that the applicant had previously applied for a license under any of
the chapters listed in paragraph (1) of subdivision (a) and the
application was denied within the last year, the department shall,
except as provided in Section 1569.22, cease further review of the
application until one year has elapsed from the date of the denial
letter. In those circumstances where denials are appealed and upheld
at an administrative hearing, review of the application shall cease
for one year from the date of the decision and order being rendered
by the department. The cessation of review shall not constitute a
denial of the application.  If there are coapplicants and the
department denies a license due to concerns pertaining solely to one
of the coapplicants, any other coapplicant may withdraw its
application, and with the department's written consent pursuant to
Section 1569.52, shall not be deemed to have a license application
denied   . 
   (c)  If an application for a license or special permit indicates,
or the department determines during the application review process,
that the applicant had previously applied for a certificate of
approval with a foster family agency and the department ordered the
foster family agency to deny the application pursuant to subdivision
(b) of Section 1534, the department shall cease further review of the
application as follows:
   (1)  In cases where the applicant petitioned for a hearing, the
department shall cease further review of the application until one
year has elapsed from the effective date of the decision and order of
the department upholding a denial.
   (2)  In cases where the department informed the applicant of his
or her right to petition for a hearing and the applicant did not
petition for a hearing, the department shall cease further review of
the application until one year has elapsed from the date of the
notification of the denial and the right to petition for a hearing.
   (3)  The department may continue to review the application if it
has determined that the reasons for the denial of the application
were due to circumstances and conditions that either have been
corrected or are no longer in existence.
   (d)  The cessation of review shall not constitute a denial of the
application for purposes of Section 1526 or any other law.
   SEC. 2.   SEC. 4.   Section 1569.356 is
added to the Health and Safety Code, to read:
   1569.356.  To the extent that the department's computer system can
 electronically  accommodate additional residential care
facility for the elderly profile information, the department shall
post on its Internet Web site the current name, business address, and
telephone number of the licensee, the name of the owner of the
residential care facility for the elderly, if not the same as the
licensee, the name of any parent  corporation,  
organization,  the licensed capacity of the facility, including
the capacity for nonambulatory residents, whether the facility is
permitted to accept and retain residents receiving hospice care
services, whether the facility has a special care unit or program for
people with Alzheimer's disease and other dementias and has a
delayed egress or secured perimeter system in place,  or both,
 and information required pursuant to  subparagraph (B) of
paragraph (3) of subdivision (a) of  Section 1569.15. 
  SEC. 3.    Section 1569.501 is added to the Health
and Safety Code, immediately following Section 1569.50, to read:
   1569.501.  (a) The department may deny an application for
licensure under this chapter if the applicant has a history of
noncompliance with any of the following:
   (1) Requirements imposed upon any residential care facility for
the elderly license, any facility licensed pursuant to Chapter 1
(commencing with Section 1200), Chapter 2 (commencing with Section
1250), or Chapter 3 (commencing with Section 1500), or a similarly
licensed facility in another state.
    (2) Applicable state and federal laws and regulations.
   (3) Requirements governing the operators of the facilities
specified in paragraph (1).
   (b) This section applies to an applicant that is or was an
administrator, general partner, chief executive officer or like
party, corporate officer or director of, or is a person who has held
or holds a beneficial ownership of 10 percent or more in, any
residential care facility for the elderly, in any facility licensed
pursuant to Chapter 1 (commencing with Section 1200), Chapter 2
(commencing with Section 1250), or Chapter 3 (commencing with Section
1500), or a similarly licensed facility in another state.
   (c) Noncompliance by the chief executive officer, general partner,
or like party with the requirements of this chapter and its
implementing regulations may be the basis for license decisions
against the owner. 
   SEC. 5.    Section 1569.50 of the   Health
and Safety Code  is amended to read: 
   1569.50.  (a) The department may deny an application for a license
or may suspend or revoke a license issued under this chapter upon
any of the following grounds and in the manner provided in this
chapter:
   (1) Violation by the licensee of this chapter or of the rules and
regulations adopted under this chapter.
   (2) Aiding, abetting, or permitting the violation of this chapter
or of the rules and regulations adopted under this chapter.
   (3) Conduct that is inimical to the health, morals, welfare, or
safety of either an individual in or receiving services from the
facility or the people of the State of California.
   (4) The conviction of a licensee, or other person mentioned in
Section 1569.17 at any time before or during licensure, of a crime as
defined in Section 1569.17.
   (5) Engaging in acts of financial malfeasance concerning the
operation of a facility, including, but not limited to, improper use
or embezzlement of client moneys and property or fraudulent
appropriation for personal gain of facility moneys and property, or
willful or negligent failure to provide services for the care of
clients. 
   (b) The remedies provided in this section may be applied if the
department finds that any employee, administrator, partner, officer,
director, member, or manager of the applicant or licensee, any person
who controls, as defined in Section 1569.2, the licensee, or any
person who holds a beneficial ownership interest of 10 percent or
more in the applicant or licensee has engaged in the conduct
described in subdivision (a) related to any facility licensed
pursuant to Chapter 1 (commencing with Section 1200), Chapter 2
(commencing with Section 1250), or Chapter 3 (commencing with Section
1500), or a similarly licensed facility in California or any other
state.  
   (b) 
    (c)  The director may temporarily suspend a license,
prior to a 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. The director shall notify the licensee of
the temporary suspension and the effective date of the temporary
suspension and at the same time shall serve the provider with an
accusation. Upon receipt of a notice of defense to the accusation by
the licensee, the director shall, within 15 days, set the matter for
hearing, and the hearing shall be held as soon as possible but not
later than 30 days after receipt of the notice. The temporary
suspension shall remain in effect until the time the hearing is
completed and the director has made a final determination on the
merits. However, the temporary suspension shall be deemed vacated if
the director fails to make a final determination on the merits within
30 days after the original hearing has been completed. 
   (c) 
    (d)  A licensee who abandons the facility and the
residents in care resulting in an immediate and substantial threat to
the health and safety of the abandoned residents, in addition to
revocation of the license pursuant to this section, shall be excluded
from licensure in facilities licensed by the department without the
right to petition for reinstatement.
   SEC. 6.    Section 1569.58 of the   Health
and Safety Code   is amended to read: 
   1569.58.  (a) The department may prohibit any person from being a
 member of the board of directors, an executive director, a
board member, or an
officer of a licensee, or a  licensee  , owning a
beneficial ownership interest of 10 percent or more in a licensed
facility, or being an a   dministrator, officer, director,
member, or manager of a licensee or entity controlling a licensee,
and may further prohibit any licensee  from employing, or
continuing the employment of, or allowing in a licensed facility, or
allowing contact with clients of a licensed facility by, any
employee, prospective employee, or person who is not a client 
and  who  has:   has done any of the
following: 
   (1) Violated, or aided or permitted the violation by any other
person of, any provisions of this chapter or of any rules or
regulations promulgated under this chapter.
   (2) Engaged in conduct that is inimical to the health, morals,
welfare, or safety of either an individual in or receiving services
from the facility, or the people of the State of California.
   (3) Been denied an exemption to work or to be present in a
facility, when that person has been convicted of a crime as defined
in Section 1569.17.
   (4) Engaged in any other conduct that would constitute a basis for
disciplining a licensee.
   (5) Engaged in acts of financial malfeasance concerning the
operation of a facility, including, but not limited to, improper use
or embezzlement of client moneys and property or fraudulent
appropriation for personal gain of facility moneys and property, or
willful or negligent failure to provide services for the care of
clients.
   (b) The excluded person, the facility, and the licensee shall be
given written notice of the basis of the department's action and of
the excluded person's right to an appeal. The notice shall be served
either by personal service or by registered mail. Within 15 days
after the department serves the notice, the excluded person may file
with the department a written appeal of the exclusion order. If the
excluded person fails to file a written appeal within the prescribed
time, the department's action shall be final.
   (c) (1) The department may require the immediate removal of a
member of the board of directors, an executive director, or an
officer of a licensee or exclusion of an employee, prospective
employee, or person who is not a client from a facility pending a
final decision of the matter, when, in the opinion of the director,
the action is necessary to protect residents or clients from physical
or mental abuse, abandonment, or any other substantial threat to
their health or safety.
   (2) If the department requires the immediate removal of a member
of the board of directors, an executive director, or an officer of a
licensee or exclusion of an employee, prospective employee, or person
who is not a client from a facility the department shall serve an
order of immediate exclusion upon the excluded person that shall
notify the excluded person of the basis of the department's action
and of the excluded person's right to a hearing.
   (3) Within 15 days after the department serves an order of
immediate exclusion, the excluded person may file a written appeal of
the exclusion with the department. The department's action shall be
final if the excluded person does not appeal the exclusion within the
prescribed time. The department shall do the following upon receipt
of a written appeal:
   (A) Within 30 days of receipt of the appeal, serve an accusation
upon the excluded person.
   (B) Within 60 days of receipt of a notice of defense by the
excluded person pursuant to Section 11506 of the Government Code,
conduct a hearing on the accusation.
   (4) An order of immediate exclusion of the excluded person from
the facility shall remain in effect until the hearing is completed
and the director has made a final determination on the merits.
However, the order of immediate exclusion shall be deemed vacated if
the director fails to make a final determination on the merits within
60 days after the original hearing has been completed.
   (d) An excluded person who files a written appeal of the exclusion
order with the department pursuant to this section shall, as part of
the written request, provide his or her current mailing address. The
excluded person shall subsequently notify the department in writing
of any change in mailing address, until the hearing process has been
completed or terminated.
   (e) Hearings held pursuant to this section shall be conducted in
accordance with Chapter 5 (commencing with Section 11500) of Division
3 of Title 2 of the Government Code. The standard of proof shall be
the preponderance of the evidence and the burden of proof shall be on
the department.
   (f) The department may institute or continue a disciplinary
proceeding against a member of the board of directors, an executive
director, or an officer of a licensee or an employee, prospective
employee, or person who is not a client upon any ground provided by
this section. The department may enter an order prohibiting any
person from being a member of the board of directors, an executive
director, or an officer of a licensee, or prohibiting the excluded
person's employment or presence in the facility, or otherwise take
disciplinary action against the excluded person, notwithstanding any
resignation, withdrawal of employment application, or change of
duties by the excluded person, or any discharge, failure to hire, or
reassignment of the excluded person by the licensee or that the
excluded person no longer has contact with clients at the facility.
   (g) A licensee's failure to comply with the department's exclusion
order after being notified of the order shall be grounds for
disciplining the licensee pursuant to Section 1569.50.
   (h) (1) (A) In cases where the excluded person appealed the
exclusion order and there is a decision and order of the department
upholding the exclusion order, the person shall be prohibited from
working in any facility or being licensed to operate any facility
licensed by the department or from being a certified foster parent
for the remainder of the excluded person's life, unless otherwise
ordered by the department.
   (B) The excluded individual may petition for reinstatement one
year after the effective date of the decision and order of the
department upholding the exclusion order pursuant to Section 11522 of
the Government Code. The department shall provide the excluded
person with a copy of Section 11522 of the Government Code with the
decision and order.
   (2) (A) In cases where the department informed the excluded person
of his or her right to appeal the exclusion order and the excluded
person did not appeal the exclusion order, the person shall be
prohibited from working in any facility or being licensed to operate
any facility licensed by the department or a certified foster parent
for the remainder of the excluded person's life, unless otherwise
ordered by the department.
   (B) The excluded individual may petition for reinstatement after
one year has elapsed from the date of the notification of the
exclusion order pursuant to Section 11522 of the Government Code. The
department shall provide the excluded person with a copy of Section
11522 of the Government Code with the exclusion order.
   SEC. 4.  SEC. 7.   Section 1569.618 of
the Health and Safety Code is amended to read:
   1569.618.  (a) The administrator designated by the licensee
pursuant to paragraph (11) of subdivision (a) of Section 1569.15
shall be present at the facility during normal working hours. A
facility manager designated by the licensee with notice to the
department, shall be responsible for the operation of the facility
when the administrator is temporarily absent from the facility.
   (b) At least one administrator, facility manager, or designated
substitute who is at least 21 years of age and has qualifications
adequate to be responsible and accountable for the management and
administration of the facility pursuant to Title 22 of the California
Code of Regulations shall be on the premises 24 hours per day. The
designated substitute may be a direct care staff member who shall not
be required to meet the educational, certification, or training
requirements of an administrator. The designated substitute shall
meet qualifications that include, but are not limited to, all of the
following:
   (1) Knowledge of the requirements for providing care and
supervision appropriate to each resident of the facility.
   (2) Familiarity with the facility's planned emergency procedures.
   (3) Training to effectively interact with emergency personnel in
the event of an emergency call, including an ability to provide a
resident's medical records to emergency responders.
   (c) The facility shall employ, and the administrator shall
schedule, a sufficient number of staff members to do all of the
following:
   (1) Provide the care required in each resident's written record of
care as described in Section 1569.80.
   (2) Ensure the health, safety, comfort, and supervision of the
residents.
   (3) Ensure that at least one staff member who has cardiopulmonary
resuscitation (CPR) training and first aid training is on duty and on
the premises at all times. This paragraph shall not be construed to
require staff to provide CPR.
   (4) Ensure that the facility is clean, safe, sanitary, and in good
repair at all times.
   (d) "Facility manager" means a person on the premises with the
authority and responsibility necessary to manage and control the
day-to-day operation of a residential care facility for the elderly
and supervise the clients. The facility manager, licensee, and
administrator, or any combination thereof, may be the same person
provided he or she meets all applicable requirements. If the
administrator is also the facility manager for the same facility, he
or she shall be limited to the administration and management of only
one facility.