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AB-1523 Residential care facilities for the elderly: liability insurance.(2013-2014)

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Assembly Bill No. 1523

An act to add Section 1569.605 to the Health and Safety Code, relating to residential care facilities for the elderly.

[ Approved by Governor  August 15, 2014. Filed with Secretary of State  August 15, 2014. ]


AB 1523, Atkins. Residential care facilities for the elderly: liability insurance.
Existing law provides for the licensure and regulation of residential care facilities for the elderly by the State Department of Social Services, including requiring, as a condition of licensure, bonds issued by a surety company for a licensee that handles the moneys of a person in the facility. Violation of these provisions is a misdemeanor.
This bill, on and after July 1, 2015, would require all residential care facilities for the elderly to maintain liability insurance in an amount of at least $1,000,000 per occurrence and $3,000,000 in the annual aggregate to cover injury to residents or guests caused by the negligent acts or omissions to act of, or neglect by, the licensee or its employees. By creating a new crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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