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SB-661 Residential care facilities for the elderly: admission agreements.(2009-2010)

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SB661:v98#DOCUMENT

Amended  IN  Senate  April 13, 2009

CALIFORNIA LEGISLATURE— 2009–2010 REGULAR SESSION

Senate Bill
No. 661


Introduced  by  Senator Wolk
(Coauthor(s): Assembly Member Eng)

February 27, 2009


An act to amend Section 1569.884 Sections 1569.884 and 1569.885 of the Health and Safety Code, relating to residential care facilities for the elderly.


LEGISLATIVE COUNSEL'S DIGEST


SB 661, as amended, Wolk. Residential care facilities for the elderly: admission agreements.
Existing law provides for the licensure and regulation of residential care facilities for the elderly, as defined, by the State Department of Social Services, including, among other things, regulation of admissions procedures and agreements. Under existing law, a violation of these provisions is punishable as a misdemeanor.
This bill would require that if an admission agreement includes an arbitration agreement, that arbitration agreement comply with prescribed requirements. The bill would provide that the arbitration agreement requirements shall not invalidate an arbitration agreement that does not meet the requirements if the arbitration agreement existed prior to the effective date of this bill. This bill would provide that these requirements shall apply to any arbitration agreement that is included in an agreement between an elder or dependent adult, or his or her representative, and a residential care facility for the elderly for the admission to, or continued care or residence at, the facility that is entered into, altered, modified, renewed, or extended on or after January 1, 2010.
This bill would prohibit an admission agreement from containing a waiver of the residents’ personal rights, except as otherwise required or permitted by statute or regulation.
The bill would provide that its provisions are not intended to affect existing law relating to the enforceability or unenforceability of an arbitration agreement.
By expanding the definition of a crime, this bill would result in 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   Local Program: YES  

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


SECTION 1.

 Section 1569.884 of the Health and Safety Code is amended to read:

1569.884.
 The admission agreement shall include all of the following:
(a) A comprehensive description of any items and services provided under a single fee, such as a monthly fee for room, board, and other items and services.
(b) A comprehensive description of, and the fee schedule for, all items and services not included in a single fee. In addition, the agreement shall indicate that the resident shall receive a monthly statement itemizing all separate charges incurred by the resident.
(c) A facility may assess a separate charge for an item or service only if that separate charge is authorized by the admission agreement. If additional services are available through the facility to be purchased by the resident that were not available at the time the admission agreement was signed, a list of these services and charges shall be provided to the resident or the resident’s representative. A statement acknowledging the acceptance or refusal to purchase the additional services shall be signed and dated by the resident or the resident’s representative and attached to the admission agreement.
(d) An explanation of the use of third-party services within the facility that are related to the resident’s service plan, including, but not limited to, ancillary, health, and medical services, how they may be arranged, accessed, and monitored, any restrictions on third-party services, and who is financially responsible for the third-party services.
(e) A comprehensive description of billing and payment policies and procedures.
(f) The conditions under which rates may be increased pursuant to Section 1569.655.
(g) The facility’s policy concerning family visits and other communication with residents, pursuant to Section 1569.313.
(h) The facility’s policy concerning refunds.
(i) Conditions under which the agreement may be terminated.
(j) An explanation of the facility’s responsibility to prepare a relocation evaluation, for each resident and a closure plan and to provide notice in the case of an eviction pursuant to Section 1569.682.
(k) (1) If the admission agreement includes an arbitration agreement, the arbitration agreement shall comply with all of the following:
(A) Clearly indicate that the agreement to arbitrate is voluntary and not a precondition for admission.
(B) Be written on a form that is separate from the rest of the admission agreement.
(C) Clearly indicate to the parties that, by signing the arbitration agreement, both parties are voluntarily and knowingly waiving their right to a trial by jury or court trial and, instead, accepting the use of arbitration.

(2)The arbitration agreement requirements in paragraph (1) shall not invalidate an arbitration agreement that does not meet the requirements if the arbitration agreement existed prior to the effective date of this subdivision.

(D) Provide the resident with the option of rescinding the arbitration agreement within 10 days of signing the agreement by delivering written notice of rescission to the person identified in the arbitration agreement for receipt of that notice.
(2) The arbitration agreement requirements in paragraph (1) shall apply to any arbitration agreement that is included in an agreement between an elder or dependent adult, or his or her representative, and a residential care facility for the elderly for the admission to, or continued care or residence at, the facility that is entered into, altered, modified, renewed, or extended on or after January 1, 2010

SEC. 2.

 Section 1569.885 of the Health and Safety Code is amended to read:

1569.885.
 (a) When referring to a resident’s obligation to observe facility rules, the admission agreement shall indicate that the rules must be reasonable, and that there is a facility procedure for suggesting changes in the rules. A facility rule shall not violate any right set forth in this article or in other applicable laws and regulations.
(b) The admission agreement shall specify that a copy of the facility grievance procedure for resolution of resident complaints about facility practices shall be made available to the resident or his or her representative.
(c) The admission agreement shall inform a resident of the right to contact the State Department of Social Services, the long-term care ombudsman, or both, regarding grievances against the facility.
(d) A copy of any applicable resident’s rights specified by law or regulation shall be an attachment to all admission agreements.
(e) The statement of resident’s rights attached to admissions agreements by a residential care facility for the elderly shall include information on the reporting of suspected or known elder and dependent adult abuse, as set forth in Section 1569.889.
(f) The admission agreement shall not contain a waiver of the residents’ personal rights, except as otherwise required or permitted by statute or regulation.

SEC. 3.

 Nothing in this act is intended to affect existing law relating to the enforceability or unenforceability of an arbitration agreement.

SEC. 2. 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.
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