Bill Text

Bill Information

Add To My Favorites | print page

AB-419 Care facilities.(2011-2012)

SHARE THIS:share this bill in Facebookshare this bill in Twitter
AB419:v97#DOCUMENT

Amended  IN  Assembly  April 28, 2011
Amended  IN  Assembly  April 14, 2011

CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Assembly Bill
No. 419


Introduced  by  Assembly Member Mitchell

February 14, 2011


An act to amend Sections 1523.1, 1526.75, 1534, 1568.05 1534, 1568.07, 1569.185, 1569.191, 1569.20, 1569.24, 1569.33, 1596.803, 1596.858, 1597.09, 1597.13, 1597.14, and 1597.55a of, and to repeal Section 1526.5 of, the Health and Safety Code, relating to care facilities.


LEGISLATIVE COUNSEL'S DIGEST


AB 419, as amended, Mitchell. Care facilities.
Under existing law, the State Department of Social Services licenses and regulates community care facilities, residential care facilities for persons with chronic life-threatening illness, residential care facilities for the elderly, and child day care facilities. Under existing law the department charges various fees for the initial and renewal licensure of various types of facilities, based on capacity of the facility. Existing law also requires the department to charge a plan of correction fee of $200 when a licensee does not implement a plan of correction on or prior to the date specified in the plan.

This bill would increase the initial application and renewal fees for these licenses, as prescribed. The bill would also replace the plan of correction fee with a reinspection fee of $100, to be assessed when an inspection of a facility is necessary to ensure that a violation has been corrected.

Existing law requires the department to conduct an annual unannounced visit to a care facility if any of various specified conditions are met. Existing law also requires the department to inspect community care facilities, residential care facilities for persons with chronic life-threatening illness, and residential care facilities for the elderly within 90 days after a facility accepts its first client for placement.
This bill would require the department to conduct an unannounced inspection of a care facility using prescribed inspection protocols at least once each year and as often as necessary to ensure the quality of care provided, except for family day care centers which the department would be required to inspect using prescribed inspection protocols, at minimum, once every 2 years and as often as necessary to ensure the quality of care provided. This bill would also require the department to convene a specified workgroup to review the implementation of the annual inspection protocols, as prescribed, and would require the department to include certain information about the annual inspection protocols in the department’s annual report to the relevant Senate and Assembly budget subcommittees.
This bill would also eliminate the requirement for community care facilities and residential care facilities for persons with chronic life-threatening illness that the department inspect the facility within 90 days after it accepts its first client for placement. This bill would, for residential care facilities for the elderly, require the department to make its first annual unannounced inspection within 90 days after the facility accepts its first resident for placement.

Existing law requires the department to conduct initial site visits before granting a license to a child day care facility or a residential care facility for the elderly.

This bill would exempt the department from that requirement in specified cases but would not preclude the department, when acting within its discretionary authority, from making an initial site visit in those cases.

Under existing law, to obtain a license for a residential care facility for the elderly or a day care center, a prelicensure survey or site visit and a finding that the facility is in compliance with licensing standards is required. Existing law requires that the department conduct an initial site visit within 30 days after the receipt of all appropriate licensing application materials.
This bill would authorize the department to exercise its discretion and elect not to conduct the site visit after the receipt of all appropriate licensing application materials when an operating residential care facility for the elderly or day care center licensee sells or transfers the property or business to a new license applicant and the department determines that there will be no material change in the management or operations of the facility.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.Section 1523.1 of the Health and Safety Code is amended to read:
1523.1.

(a)An application fee adjusted by facility and capacity shall be charged by the department for the issuance of a license. After initial licensure, a fee shall be charged by the department annually on each anniversary of the effective date of the license. The fees are for the purpose of financing the activities specified in this chapter. Fees shall be assessed as follows:

Fee Schedule

Facility Type

Capacity

Initial
Application

Annual

Foster Family and
Adoption Agencies


$3,025


$1,513

Adult Day Programs

1–15

$182

$91

16–30

$303

$152

31–60

$605

$303

61–75

$758

$378

76–90

$908

$454

91–120

$1,210

$605

121+

$1,513

$757

Other Community
Care Facilities

1–3

$454

$454

4–6

$908

$454

7–15

$1,363

$681

16–30

$1,815

$908

31–49

$2,270

$1,135

50–74

$2,725

$1,363

75–100

$3,180

$1,590

101–150

$3,634

$1,817

151–200

$4,237

$2,119

201–250

$4,840

$2,420

251–300

$5,445

$2,723

301–350

$6,050

$3,025

351–400

$6,655

$3,328

401–500

$7,865

$3,933

501–600

$9,075

$4,538

601–700

$10,285

$5,143

701+

$12,100

$6,050

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

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

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

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

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

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

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

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

(H)A reinspection fee of one hundred dollars ($100) whenever an inspection of a facility is necessary to ensure a violation has been corrected.

(2)Foster family homes shall be exempt from the fees imposed pursuant to this subdivision.

(3)Foster family agencies shall be annually assessed ninety-seven dollars ($97) for each home certified by the agency.

(4)No local jurisdiction shall impose any business license, fee, or tax for the privilege of operating a facility licensed under this chapter which serves six or fewer persons.

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

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

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

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

SEC. 2.Section 1526.5 of the Health and Safety Code is repealed.
SEC. 3.Section 1526.75 of the Health and Safety Code is amended to read:
1526.75.

(a) It is the intent of the Legislature to maintain quality resources for children needing placement away from their families. If, during a periodic inspection, a facility is found to be out of compliance with one or more of the licensing standards of the department, the department shall, unless an ongoing investigation precludes it, advise the provider of the noncompliance as soon as possible. The provider shall be given the opportunity to correct the deficiency.

(b)The department shall implement a procedure whereby citations for noncompliance may be appealed and reviewed.

(c)Nothing in this section shall preclude the department from taking an action it may deem necessary to ensure the safety of children and adults placed in a facility.

SEC. 4.SECTION 1.

 Section 1534 of the Health and Safety Code is amended to read:

1534.
 (a) (1) (A) Every licensed community care facility shall be inspected at least once per year and as often as necessary to ensure the quality of care provided. Evaluation visits shall be unannounced, except as noted in Section 1533.
(B) The department shall inspect facilities using inspection protocols that are research based, field tested, reviewed by stakeholders, and evaluated annually to ensure that facilities are in compliance with licensing requirements. All inspections shall include a review of all zero tolerance violations for that facility type.
(C) The inspection required at least once per year pursuant to subparagraph (A) shall trigger a comprehensive inspection if either of the following occurs:
(i) One zero tolerance violation, including, but not limited to, a fire clearance violation, absence of supervision, accessible bodies of water, accessible firearms, ammunition, or both, refused entry to a facility or any part of a facility, or the presence of an excluded person on the premises.

(ii)Any two type A violation without regard to whether it is listed as part of the annual inspection protocols. A type A violation is a violation that poses an immediate risk.

(ii) Any combination of other violations as determined by the department. However, for the first two years following the date of the act that amended this clause, the combination used by the department shall be two type A violations without regard to whether they are listed as part of the annual inspection protocols. A type A violation is a violation that poses an immediate risk. The combination of violations as determined by the department pursuant to this clause shall be reported to the Legislature in the department’s annual report.
(D) All inspections shall be subject to all laws and regulations regardless of the type of inspection. If during an annual inspection, the department observes a violation that is not listed as part of the annual protocols, the department shall address that violation.
(E) In order to facilitate direct contact with group home clients, the department may interview children who are clients of group homes at any public agency or private agency at which the client may be found, including, but not limited to, a juvenile hall, a recreation or vocational program, or a nonpublic school. The department shall respect the rights of the child while conducting the interview, including informing the child that he or she has the right not to be interviewed and the right to have another adult present during the interview.
(2) The department shall notify the community care facility in writing of all deficiencies in its compliance with the provisions of this chapter and the rules and regulations adopted pursuant to this chapter, and shall set a reasonable length of time for compliance by the facility.
(3) Reports on the results of each inspection, evaluation, or consultation shall be kept on file in the department, and all inspection reports, consultation reports, lists of deficiencies, and plans of correction shall be open to public inspection.
(b) (1) Nothing in this section shall limit the authority of the department to inspect or evaluate a licensed foster family agency, a certified family home, or any aspect of a program where a licensed community care facility is certifying compliance with licensing requirements.
(2) Upon a finding of noncompliance by the department, the department may require a foster family agency to deny or revoke the certificate of approval of a certified family home, or take other action the department may deem necessary for the protection of a child placed with the family home. The family home shall be afforded the due process provided pursuant to this chapter.
(3) If the department requires a foster family agency to deny or revoke the certificate of approval, the department shall serve an order of denial or revocation upon the certified or prospective foster parent and foster family agency that shall notify the certified or prospective foster parent of the basis of the department’s action and of the certified or prospective foster parent’s right to a hearing.
(4) Within 15 days after the department serves an order of denial or revocation, the certified or prospective foster parent may file a written appeal of the department’s decision with the department. The department’s action shall be final if the certified or prospective foster parent does not file a written appeal within 15 days after the department serves the denial or revocation order.
(5) The department’s order of the denial or revocation of the certificate of approval shall remain in effect until the hearing is completed and the director has made a final determination on the merits.
(6) A certified or prospective foster parent who files a written appeal of the department’s order with the department pursuant to this section shall, as part of the written request, provide his or her current mailing address. The certified or prospective foster parent shall subsequently notify the department in writing of any change in mailing address, until the hearing process has been completed or terminated.
(7) 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. In all proceedings conducted in accordance with this section the standard of proof shall be by a preponderance of the evidence.
(8) The department may institute or continue a disciplinary proceeding against a certified or prospective foster parent upon any ground provided by this section, enter an order denying or revoking the certificate of approval, or otherwise take disciplinary action against the certified or prospective foster parent, notwithstanding resignation, withdrawal of application, surrender of the certificate of approval, or denial or revocation of the certificate of approval by the foster family agency.
(9) A foster family agency’s failure to comply with the department’s order to deny or revoke the certificate of employment by placing or retaining children in care shall be grounds for disciplining the licensee pursuant to Section 1550.

SEC. 5.Section 1568.05 of the Health and Safety Code is amended to read:
1568.05.

(a)An application fee adjusted by facility and capacity, shall be charged by the department for a license to operate a residential care facility for persons with chronic life-threatening illness. After initial licensure, a fee shall be charged by the department annually, on each anniversary of the effective date of the license. The fees are for the purpose of financing the activities specified in this chapter. Fees shall be assessed as follows:

Fee Schedule

Capacity

Initial
Application

Annual

1–6

$605

$303 plus $10 per bed

7–15

$758

$378 plus $10 per bed

16–25

$908

$454 plus $10 per bed

26+

$1,060

$530 plus $10 per bed

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

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

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

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

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

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

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

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

(H)A reinspection fee of one hundred dollars ($100) whenever an inspection of a facility is necessary to ensure that a violation has been corrected.

(2)No local governmental entity shall impose a business license, fee, or tax for the privilege of operating a facility licensed under this chapter that serves six or fewer persons.

(c)All fees collected pursuant to subdivisions (a) and (b) shall be deposited in the Technical Assistance Fund.

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

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

(f)Fees established pursuant to this section shall not be effective unless licensing fees are established for all adult residential facilities licensed by the department.

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

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

SEC. 6.SEC. 2.

 Section 1568.07 of the Health and Safety Code is amended to read:

1568.07.
 (a) (1) (A) Every licensed residential care facility shall be periodically inspected and evaluated for quality of care by a representative or representatives designated by the director. Evaluations shall be conducted at least annually and as often as necessary to ensure the quality of care being provided.
(B) Facilities shall be inspected using inspection protocols that are research based, field tested, reviewed by stakeholders, and evaluated annually to ensure that facilities are in compliance with licensing requirements. All inspections shall include a review of all zero tolerance violations for that facility type.
(C) The inspection required at least annually pursuant to subparagraph (A) shall trigger a comprehensive inspection if either of the following occurs:
(i) One zero tolerance violation, including, but not limited to, a fire clearance violation, absence of supervision, accessible bodies of water, accessible firearms, ammunition, or both, refused entry to a facility or any part of a facility, or the presence of an excluded person on the premises.

(ii)Any two type A violations without regard to whether it is listed as part of the annual inspection protocols. A type A violation is a violation that poses an immediate risk.

(ii) Any combination of other violations as determined by the department. However, for the first two years following the date of the act that amended this clause, the combination used by the department shall be two type A violations without regard to whether they are listed as part of the annual inspection protocols. A type A violation is a violation that poses an immediate risk. The combination of violations as determined by the department pursuant to this clause shall be reported to the Legislature in the department’s annual report.
(D) All inspections shall be subject to all laws and regulations regardless of the type of inspection. If during an annual inspection, a violation is observed that is not listed as part of the annual protocols, that violation shall be addressed.
(2) During each licensing inspection the department shall determine if the facility meets regulatory standards, including, but not limited to, providing residents with the appropriate level of care based on the facility’s license, providing adequate staffing and services, updated resident records and assessments, and compliance with basic health and safety standards.
(3) If the department determines that a resident requires a higher level of care than the facility is authorized to provide, the department may initiate a professional level of care assessment by an assessor approved by the department. An assessment shall be conducted in consultation with the resident, the resident’s physician and surgeon, and the resident’s case manager, and shall reflect the desires of the resident, the resident’s physician and surgeon, and the resident’s case manager. The assessment also shall recognize that certain illnesses are episodic in nature and that the resident’s need for a higher level of care may be temporary.
(4) The department shall notify the residential care facility in writing of all deficiencies in its compliance with this chapter and the rules and regulations adopted pursuant to this chapter, and shall set a reasonable length of time for compliance by the facility.
(5) Reports on the results of each inspection, evaluation, or consultation shall be kept on file in the department, and all inspection reports, consultation reports, lists of deficiencies, and plans of correction shall be open to public inspection.
(6) The department may take appropriate remedial action as provided for in this chapter.
(b) A duly authorized officer, employee, or agent of the department may, upon presentation of proper identification, enter and inspect any place providing personal care, supervision, and services, at any time, with or without advance notice, to secure compliance with, or to prevent a violation of, this chapter.
(c) No licensee shall discriminate or retaliate in any manner against a person receiving the services of the facility of the licensee, or against an employee of the facility, on the basis, or for the reason, that a person or employee or any other person has initiated or participated in an inspection pursuant to Section 1568.071.
(d) A person who, without lawful authorization from a duly authorized officer, employee, or agent of the department, informs an owner, operator, employee, agent, or resident of a residential care facility, of an impending or proposed inspection or evaluation of that facility by personnel of the department, is guilty of a misdemeanor and upon conviction thereof shall be punished by a fine not to exceed one thousand dollars ($1,000), by imprisonment in the county jail for a period not to exceed 180 days, or by both a fine and imprisonment.

SEC. 7.Section 1569.185 of the Health and Safety Code is amended to read:
1569.185.

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

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

Fee Schedule

Capacity

Initial
Application

Annual

1–3

$454

$454

4–6

$908

$454

7–15

$1,363

$681

16–30

$1,815

$908

31–49

$2,270

$1,135

50–74

$2,725

$1,363

75–100

$3,180

$1,590

101–150

$3,634

$1,817

151–200

$4,237

$2,119

201–250

$4,840

$2,420

251–300

$5,445

$2,723

301–350

$6,050

$3,025

351–400

$6,655

$3,328

401–500

$7,865

$3,933

501–600

$9,075

$4,538

601–700

$10,285

$5,143

701+

$12,100

$6,050

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

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

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

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

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

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

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

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

(H)A reinspection fee of one hundred dollars ($100) whenever an inspection of a facility is necessary to ensure that a violation has been corrected.

(2)No local jurisdiction shall impose a business license, fee, or tax for the privilege of operating a facility licensed under this chapter that serves six or fewer persons.

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

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

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

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

SEC. 3.

 Section 1569.191 of the Health and Safety Code is amended to read:

1569.191.
 (a) Notwithstanding Section 1569.19, in the event of a sale of a licensed facility where the sale will result in a new license being issued, the sale and transfer of property and business shall be subject to both of the following:
(1) The licensee shall provide written notice to the department and to each resident or his or her legal representative of the licensee’s intent to sell the facility at least 30 days prior to the transfer of the property or business, or at the time that a bona fide offer is made, whichever period is longer.
(2) The licensee shall, prior to entering into an admission agreement, inform all residents, or their legal representatives, admitted to the facility after notification to the department, of the licensee’s intent to sell the property or business.
(b) Except as provided in subdivision (e), the property and business shall not be transferred until the buyer qualifies for a license or provisional license within the appropriate provisions of this chapter.
(1) The seller shall notify, in writing, a prospective buyer of the necessity to obtain a license, as required by this chapter, if the buyer’s intent is to continue operating the facility as a residential care facility for the elderly. The seller shall send a copy of this written notice to the licensing agency.
(2) The prospective buyer shall submit an application for a license, as specified in Section 1569.15, within five days of the acceptance of the offer by the seller.
(c) No sale of the facility shall be permitted until 30 days have elapsed from the date upon which notice has been provided pursuant to paragraphs (1) and (2) of subdivision (a).
(d) The department shall give priority to applications for licensure that are submitted pursuant to this section in order to ensure timely transfer of the property and business. Notwithstanding Section 1569.20, upon receipt of the application materials pursuant to regulations, the department may elect not to conduct a prelicensing site visit if the department determines that there will be no material change to the management or operations of the facility. The department shall make a decision within 60 days after a complete application is submitted on whether to issue a license pursuant to Section 1569.15.
(e) If the parties involved in the transfer of the property and business fully comply with this section, then the transfer may be completed and the buyer shall not be considered to be operating an unlicensed facility while the department makes a final determination on the application for licensure.
(f) Facilities that are subject to Chapter 10 (commencing with Section 1770) of Division 2, including Section 1789.4, shall not be subject to paragraph (1) of subdivision (a), and subdivisions (c) and (d).

SEC. 8.SEC. 4.

 Section 1569.20 of the Health and Safety Code is amended to read:

1569.20.
 Upon the filing of the application for issuance of an initial license, the department shall, within five working days of the filing, make a determination regarding the completeness of the application. If the application is complete, the department shall immediately request a fire clearance and notify the applicant to arrange a time for the department to conduct a prelicensure survey. Applicants for licensure of a currently or previously licensed facility are exempt from the initial site visit. This does not preclude prelicensing visit. The department may elect not to conduct a prelicensing visit of the facility prior to approval of the application if the applicant meets an exception pursuant to Section 1569.191. This does not preclude the department, when acting within its discretionary authority, from making an initial site visit. If the application is incomplete, the department shall notify the applicant and request the necessary information. Within 60 days of making a determination that the file is complete, the department shall make a determination whether the application is in compliance with this chapter and the rules and regulations of the department and shall either immediately issue the license or notify the applicant of the deficiencies. The notice shall specify whether the deficiencies constitute denial of the application or whether further corrections for compliance will likely result in approval of the application.

SEC. 9.SEC. 5.

 Section 1569.24 of the Health and Safety Code is amended to read:

1569.24.
 (a) Within 90 days after a facility accepts its first resident for placement following its initial licensure, the department shall conduct its first annual unannounced visit to the facility in accordance with Section 1569.33. The licensee shall notify the department, within five business days after accepting its first resident for placement, that the facility has commenced operating.
(b) The department may take appropriate remedial action as provided for in this chapter.

SEC. 10.SEC. 6.

 Section 1569.33 of the Health and Safety Code is amended to read:

1569.33.
 (a) (1) Every licensed residential care facility for the elderly shall be subject to unannounced visits by the department. The department shall visit these facilities at least once per year and as often as necessary to ensure the quality of care provided.
(2) The department shall inspect facilities using inspection protocols that are research based, field tested, reviewed by stakeholders, and evaluated annually to ensure that facilities are in compliance with licensing requirements. All inspections shall include a review of all zero tolerance violations for that facility type. Addenda to the regular review shall be conducted for facilities caring for individuals with dementia or individuals who are bedridden and facilities providing hospice services.
(3) The inspection required at least once per year pursuant to paragraph (1) shall trigger a comprehensive inspection subject to all laws and regulations governing this facility type if either of the following occurs:
(A) One zero tolerance violation, including, but not limited to, a fire clearance violation, absence of supervision, accessible bodies of water, accessible firearms, ammunition, or both, refused entry to a facility or any part of a facility, or the presence of an excluded person on the premises.

(B)Any two type A violations without regard to whether it is listed as part of the annual inspection protocols. A type A violation is a violation that poses an immediate risk.

(B) Any combination of other violations as determined by the department. However, for the first two years following the date of the act that amended this subparagraph, the combination used by the department shall be two type A violations without regard to whether they are listed as part of the annual inspection protocols. A type A violation is a violation that poses an immediate risk to health, safety, or personal rights. The combination of violations as determined by the department pursuant to this subparagraph shall be reported to the Legislature in the department’s annual report.
(4) All inspections of facilities shall be subject to all laws and regulations regardless of the type of inspection. If during an annual inspection, the department observes a violation or becomes aware of a violation of a standard that is not listed as part of the annual protocols, the department shall address that violation.
(b) The department shall notify the residential care facility for the elderly in writing of all deficiencies in its compliance with the provisions of this chapter and the rules and regulations adopted pursuant to this chapter, and shall set a reasonable length of time for compliance by the facility.
(c) Reports on the results of each inspection, evaluation, or consultation shall be kept on file in the department, and all inspection reports, consultation reports, lists of deficiencies, and plans of correction shall be open to public inspection.
(d) As a part of the department’s evaluation process, the department shall review the plan of operation, training logs, and marketing materials of a residential care facility for the elderly that advertises or promotes special care, special programming, or a special environment for persons with dementia to monitor compliance with Sections 1569.626 and 1569.627.

SEC. 11.Section 1596.803 of the Health and Safety Code is amended to read:
1596.803.

(a)An application fee adjusted by facility and capacity shall be charged by the department for the issuance of a license to operate a child day care facility. After initial licensure, a fee shall be charged by the department annually, on each anniversary of the effective date of the license. The fees are for the purpose of financing activities specified in this chapter. Fees shall be assessed as follows:

Fee Schedule

Facility Type

Capacity

Original
Application

Annual
Fee

Family Day Care

1–8

$73

$73

 9–14

$140

$140

Day Care Centers

 1–30

$484

$242

31–60 

$968

$484

61–75

$1,210

$605

76–90

$1,452

$726

 91–120

$1,936

$968

121+

$2,420

$1,210

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

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

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

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

(D)An orientation fee of twenty-five dollars ($25) for attendance by an individual at a department-sponsored family child day care home orientation session, and a fifty dollar ($50) orientation fee for attendance by an individual at a department-sponsored child day care center orientation session.

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

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

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

(H)A reinspection fee of one hundred dollars ($100) whenever an inspection of a facility is necessary to ensure a violation has been corrected.

(2)No local jurisdiction shall impose a business license, fee, or tax for the privilege of operating a small family day care home licensed under this act.

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

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

(d)A child day care facility may use a bona fide business or personal check to pay the license fee required under this section.

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

SEC. 12.SEC. 7.

 Section 1596.858 of the Health and Safety Code is amended to read:

1596.858.
 A license shall be forfeited by operation of law prior to its expiration date when any of the following occurs:
(a) The licensee sells or otherwise transfers the facility or facility property, except when change of ownership applies to transferring of stock when the facility is owned by a corporation, and when the transfer of stock does not constitute a majority change in ownership.
(b) The licensee surrenders the license to the department.
(c) The licensee moves the facility from one location to another. The department shall develop regulations to ensure that the facilities are not charged a full licensing fee and do not have to complete the entire application process when applying for license for the new location.
(d) The licensee is convicted of an offense specified in Section 220, 243.4, or 264.1, or paragraph (1) of Section 273a, Section 273d, 288, or 289 of the Penal Code, or is convicted of another crime specified in subdivision (c) of Section 667.5 of the Penal Code.
(e) The licensee dies. If an adult relative notifies the department of his or her desire to continue operation of the facility and submits an application, the department shall expedite the application. Applicants for licensure pursuant to this subdivision are exempt from the initial site visit required by Section 1597.13. This does not preclude the department, when acting within its discretionary authority, from making an initial site visit. The department shall promulgate regulations for expediting applications submitted pursuant to this subdivision.
(f) The licensee abandons the facility.

SEC. 13.SEC. 8.

 Section 1597.09 of the Health and Safety Code is amended to read:

1597.09.
 (a) Each licensed child day care center shall be subject to unannounced visits by the department. The department shall visit these facilities at least once per year and as often as necessary to ensure the quality of care provided.
(b) The department shall inspect facilities using inspection protocols that are research based, field tested, reviewed by stakeholders, and evaluated annually to ensure that facilities are in compliance with licensing requirements. All inspections shall include a review of all zero tolerance violations for that facility type.
(c) The inspection required at least once per year pursuant to subdivision (a) shall trigger a comprehensive inspection if either of the following occurs:
(1) One zero tolerance violation, including, but not limited to, a fire clearance violation, absence of supervision, accessible bodies of water, accessible firearms, ammunition, or both, refused entry to a facility or any part of a facility, or the presence of an excluded person on the premises.

(2)Any two type A violations without regard to whether it is listed as part of the annual inspection protocols. A type A violation is a violation that poses an immediate risk.

(2) Any combination of other violations as determined by the department. However, for the first two years following the date of the act that amended this paragraph, the combination used by the department shall be two type A violations without regard to whether they are listed as part of the annual inspection protocols. A type A violation is a violation that poses an immediate risk. The combination of violations as determined by the department pursuant to this paragraph shall be reported to the Legislature in the department’s annual report.
(d) All inspections shall be subject to all laws and regulations regardless of the type of inspection. If during an annual inspection, the department observes a violation that is not listed as part of the annual protocols, the department shall address that violation.

SEC. 14.SEC. 9.

 Section 1597.13 of the Health and Safety Code is amended to read:

1597.13.
 (a) The department and any local agency with which it contracts for the licensing of day care centers shall grant or deny an application for license within 30 days after receipt of all appropriate licensing application materials, as determined by the department, after a site visit has been completed and the facility has been found to be in compliance with licensing standards. The department shall conduct an initial site visit within 30 days after the receipt of all appropriate licensing application materials.
(b) The department may exercise its discretion and elect not to conduct the site visit required by subdivision (a) after the receipt of all appropriate licensing application materials when an operating day care center licensee sells or transfers the property or business to a new license applicant.

SEC. 15.SEC. 10.

 Section 1597.14 of the Health and Safety Code is amended to read:

1597.14.
 (a)  Notwithstanding Section 1596.858, in the event of a sale of a licensed child day care center where the sale will result in a new license being issued, the sale and transfer of property and business shall be subject to both of the following:
(1) The licensee shall provide written notice to the department and to the child’s parent or his or her legal guardian of the licensee’s intent to sell the child day care center at least 30 days prior to the transfer of the property or business, or at the time that a bona fide offer is made, whichever period is longer.
(2) The licensee shall, prior to entering into an admission agreement, inform the child’s parent or his or her legal guardian, admitted to the facility after notification to the department, of the licensee’s intent to sell the property or business.
(b) Except as provided in subdivision (e), the property and business shall not be transferred until the buyer qualifies for a license or provisional license pursuant to this chapter.
(1) The seller shall notify, in writing, a prospective buyer of the necessity to obtain a license, as required by this chapter, if the buyer’s intent is to continue operating the facility as a child day care center. The seller shall send a copy of this written notice to the licensing agency.
(2) The prospective buyer shall submit an application for a license, as specified in Section 1596.95, within five days of the acceptance of the offer by the seller.
(c) No transfer of the facility shall be permitted until 30 days have elapsed from the date when notice has been provided to the department pursuant to paragraph (1) of subdivision (a).
(d) The department shall give priority to applications for licensure that are submitted pursuant to this section in order to ensure timely transfer of the property and business. Applicants for licensure pursuant to this subdivision are exempt from the initial site visit required by Section 1597.13. This does not preclude the department, when acting within its discretionary authority, from making an initial site visit. The department shall make a decision Notwithstanding Section 1569.13, upon receipt of the application materials pursuant to regulations, the department may elect not to conduct a prelicensing site visit if the department determines that there will be no material change to the management or operations of the facility. The department shall make a decision within 60 days after a complete application is submitted on whether to issue a license pursuant to Section 1596.95.
(e) If the parties involved in the transfer of the property and business fully comply with this section, then the transfer may be completed and the buyer shall not be considered to be operating an unlicensed facility while the department makes a final determination on the application for licensure.

SEC. 16.SEC. 11.

 Section 1597.55a of the Health and Safety Code is amended to read:

1597.55a.
 (a) (1) Every family day care home shall be subject to unannounced visits by the department as provided in this section. The department shall visit these facilities at least once every two years and as often as necessary to ensure the quality of care provided.
(2) The department shall inspect facilities using inspection protocols that are research based, field tested, reviewed by stakeholders, and evaluated annually to ensure that facilities are in compliance with licensing requirements. All inspections shall include a review of all zero tolerance violations for that facility type.
(3) The inspection required at least once per year pursuant to paragraph (1) shall trigger a comprehensive inspection if either of the following occurs:
(A) One zero tolerance violation, including, but not limited to, a fire clearance violation, absence of supervision, accessible bodies of water, accessible firearms, ammunition, or both, refused entry to a facility or any part of a facility, or the presence of an excluded person on the premises.

(B)Any two type A violations without regard to whether it is listed as part of the annual inspection protocols. A type A violation is a violation that poses an immediate risk.

(B) Any combination of other violations as determined by the department. However, for the first two years following the date of the act that amended this subparagraph, the combination used by the department shall be two type A violations without regard to whether they are listed as part of the annual inspection protocols. A type A violation is a violation that poses an immediate risk. The combination of violations as determined by the department pursuant to this subparagraph shall be reported to the Legislature in the department’s annual report.
(4) All inspections shall be subject to all laws and regulations regardless of the type of inspection. If during an annual inspection, the department observes a violation that is not listed as part of the annual protocols, the department shall address that violation.
(b) The department shall conduct an announced site visit prior to the initial licensing of the applicant.
(c) The department shall conduct an annual unannounced visit to a facility under any of the following circumstances:
(1) When a license is on probation.
(2) When the terms of agreement in a facility compliance plan require an annual evaluation.
(3) When an accusation against a licensee is pending.
(4) In order to verify that a person who has been ordered out of a family day care home by the department is no longer at the facility.
(d) A public agency under contract with the department may make spot checks if it does not result in a cost to the state. However, spot checks shall not be required by the department.
(e) The department or licensing agency shall make an unannounced site visit on the basis of a complaint and a followup visit as provided in Section 1596.853.
(f) An unannounced site visit shall adhere to both of the following conditions:

(1)The visit shall take place only during the facility’s normal business hours or at any time family day care services are being provided.

(1) The visit shall take place only during the period beginning one hour before, and ending one hour after, the facility’s normal business hours or at any time child care services are being provided.
(2) The inspection of the facility shall be limited to those parts of the facility in which family day care services are provided or to which the children have access.
(g) The department shall implement this section during periods that Section 1597.55b is not being implemented in accordance with Section 18285.5 of the Welfare and Institutions Code.

SEC. 17.SEC. 12.

 By January 31, 2012, and by January 31, 2013, the State Department of Social Services shall convene a workgroup that shall meet at least one time on or before each of these dates to review the implementation of the annual inspection protocols. The workgroup shall make recommendations concerning improving the inspection protocols. The workgroup shall be composed of representatives from the various departments within the California Health and Human Services Agency, legislative staff, stakeholders representing providers of all facility types, and stakeholders representing consumers of all facility types. The department shall include the discussion and conclusions of the workgroup as well as a thorough description, data, and evaluation of the annual inspection protocols in its annual report to both the Senate and Assembly budget subcommittees that oversee the licensing of care facilities by the department.