Health and Safety Code — Part 44 | HSC — United States — California law | Esheria

Health and Safety Code

Part 44 of 87 · provisions 8,601–8,800

This section says the act is to be known as the Health and Safety Code.

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The Legislature states findings supporting a unified, single-payer-style health care financing system for all Californians. The State Department of Health Services is renamed the State Department of Health Care Services, and its retained functions continue with the renamed department. The Director of Health Care Services is appointed by the Governor with Senate confirmation, the director receives a salary set by law, and the Governor may appoint up to two chief deputies on the director’s recommendation. The director has the powers of a department head under the cited Government Code chapter. The Department of Health Services has a Division of Rural Health, and that division must administer specified chapters and sections.

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Provisions of Health and Safety Code

Showing 200 of 17,333

  1. 17050.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 5. Enforcement [17050 - 17056] ( Chapter 5 added by Stats. 1979, Ch. 62. )

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    This section gives the Department of Housing and Community Development enforcement and rulemaking powers for employee housing, lets local governments take over enforcement with approval, and limits resident fees.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 5. Enforcement [17050 - 17056] ( Chapter 5 added by Stats. 1979, Ch. 62. ) ## 17050. (a) Except as provided in Section 18930, the Department of Housing and Community Development may promulgate rules and regulations to interpret and make specific this part. When adopted, those rules and regulations shall apply to all parts of the state. (b) Upon written notice to the Department of Housing and Community Development, any city, county, or city and county may assume the responsibility for the enforcement of this part, for the building standards published in the California Building Standards Code relating to employee housing, and for the other regulations adopted pursuant to this part following approval by the department for that assumption. (c) The Department of Housing and Community Development shall adopt regulations which shall set forth the conditions for assumption and may include required qualifications of local enforcement agencies. When assumption is approved, the department shall transfer the responsibility for enforcement to the city, county, or city and county, together with all records of active and inactive employee housing within its jurisdiction. (d) A city, county, or city and county may, by ordinance, establish a schedule of fees for the operation of employee housing not to exceed that which is established by the department. In no event may fees be charged to residents of employee housing. (e) (1) In the event of nonenforcement of this part, of the building standards published in the California Building Standards Code relating to employee housing, or of the other rules and regulations adopted pursuant to this part, the department shall enforce this part, the building standards published in the California Building Standards Code relating to employee housing, and the rules and regulations adopted pursuant to this part in any city, county, or city and county after the department has given written notice to the governing body of the city, county, or city and county, setting forth in what respects the city, county, or city and county has failed to discharge its responsibility, and has failed to initiate corrective measures to carry out its responsibility within 30 days of the date of the notice. (2) On or after January 1, 1987, in the event the local enforcement agency has failed to initiate adequate and reasonable corrective measures to carry out its responsibility, as determined by the department, within 30 days of the date of notice of one or more specific examples of nonenforcement, the department, at its option, may undertake investigation and enforcement of the alleged violations of this part within the local enforcement agency’s jurisdiction, and the local enforcement agency shall be liable to the department and the Attorney General for the actual costs of the investigation and enforcement by these state agencies. (f) (1) The department shall conduct an annual evaluation of the enforcement of this part, of the building standards published in the California Building Standards Code relating to employee housing, and of the other regulations adopted pursuant to this part by each city, county, or city and county which has assumed responsibility for enforcement. The department shall submit a written summary of the evaluation conducted pursuant to this subdivision with the report required by Section 50408. (2) The department, in consultation with interested persons, including housing advocates and farming organizations, shall conduct an evaluation of the definition of “rural” as used in paragraph (1) of subdivision (b) of Section 17008 and submit a written summary of the evaluation with the report required in calendar year 1996 by Section 17031.8. (g) Except as provided in Section 18945, the department shall be sole judge as to whether the local enforcement agency is properly enforcing the provisions. Except as provided in Section 18945, the local enforcement agency shall have the right to appeal the decision to the department. (h) (1) Any city, county, or city and county may cancel its assumption of responsibility for the enforcement of these provisions by providing written notice of cancellation to the department. The department shall assume the responsibility within 90 days after receipt of the notice. (2) A local enforcement agency that has been approved by the department to enforce the provisions of this chapter and cancels its assumption of responsibility and returns enforcement to the department under paragraph (1) shall remit to the department the fees established and collected under Section 17036 and subdivision (d) that have not been expended pursuant to this chapter and the regulations adopted thereunder. For the purpose of this paragraph, the local enforcement agency shall either identify the actual expenditures and pay to the department the balance of fees collected, or shall pay the department a sum equal to the percentage of the years remaining before outstanding permits to operate expire. (i) The enforcement agency may: (1) Enter public or private properties to determine whether there exists any employee housing to which this part applies. (2) Enter and inspect all employee housing wheresoever situated, and inspect all accommodations, equipment, or paraphernalia connected therewith. (3) Enter and inspect the land adjacent to the employee housing to determine whether the sanitary and other requirements of this part, the building standards published in the California Building Standards Code relating to employee housing, and the other rules and regulations adopted pursuant to this part have been or are being complied with. (Amended by Stats. 2008, Ch. 138, Sec. 1. Effective January 1, 2009.)
  2. 17051.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 5. Enforcement [17050 - 17056] ( Chapter 5 added by Stats. 1979, Ch. 62. )

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    Officers and agents of the enforcement agency may serve any process or notice anywhere within its jurisdiction to secure compliance with this part.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 5. Enforcement [17050 - 17056] ( Chapter 5 added by Stats. 1979, Ch. 62. ) ## 17051. For the purpose of securing compliance with this part, the officers and agents of the enforcement agency may serve any process or notice throughout its jurisdiction. (Added by Stats. 1979, Ch. 62.)
  3. 17052.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 5. Enforcement [17050 - 17056] ( Chapter 5 added by Stats. 1979, Ch. 62. )

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    The enforcement agency must inspect employee housing annually and reinspect as needed, with some exceptions.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 5. Enforcement [17050 - 17056] ( Chapter 5 added by Stats. 1979, Ch. 62. ) ## 17052. The enforcement agency shall annually enter and inspect, and reinspect as necessary, all employee housing accommodations for compliance with the provisions of this part and regulations adopted pursuant to this part, except: (a) Accommodations for employee housing consisting only of permanent single family housing that have been granted an exemption as provided in Section 17031. (b) Accommodations for employee housing that have been issued a multiyear permit to operate pursuant to Section 17030.5. (c) Accommodations for employee housing that are inactive. (d) Accommodations for employee housing inspected in the prior calendar year with no violations identified or complaints received by the enforcement agency, which shall be inspected at least biennially. The enforcement agency shall make every effort to complete the inspection prior to the occupancy of the employee housing. (Amended by Stats. 1995, Ch. 561, Sec. 3. Effective January 1, 1996.)
  4. 17053.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 5. Enforcement [17050 - 17056] ( Chapter 5 added by Stats. 1979, Ch. 62. )

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    The department must keep a file of complaints and other significant information about employee housing maintenance and operation, and make that material available to certain enforcement officials as public record.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 5. Enforcement [17050 - 17056] ( Chapter 5 added by Stats. 1979, Ch. 62. ) ## 17053. The department shall maintain a file of all reports of complaint or other significant information regarding employee housing maintenance and operation. Each file and information shall be available to local enforcement agencies, district attorneys, and the Attorney General. This material shall be a matter of public record. (Amended by Stats. 1992, Ch. 1298, Sec. 38. Effective January 1, 1993.)
  5. 17054.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 5. Enforcement [17050 - 17056] ( Chapter 5 added by Stats. 1979, Ch. 62. )

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    The Attorney General must investigate possible violations of this part and prosecute violations when requested by the Director of Housing and Community Development.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 5. Enforcement [17050 - 17056] ( Chapter 5 added by Stats. 1979, Ch. 62. ) ## 17054. The Attorney General, upon the request of the Director of Housing and Community Development, shall conduct such investigations as may be necessary to determine whether any violation of any provision of this part has occurred. For such purpose, the Attorney General shall have the powers specified in Section 17050. The Attorney General shall conduct such prosecutions of violations of this part as the director may request. (Added by Stats. 1979, Ch. 62.)
  6. 17055.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 5. Enforcement [17050 - 17056] ( Chapter 5 added by Stats. 1979, Ch. 62. )

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    Residents of covered employee housing may file an administrative complaint with the enforcement agency, and the agency must send a copy or summary to the owner or operator.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 5. Enforcement [17050 - 17056] ( Chapter 5 added by Stats. 1979, Ch. 62. ) ## 17055. (a) Any person residing in employee housing subject to this part may file an administrative complaint orally or in writing with the enforcement agency. The enforcement agency shall deliver a summary or copy of the complaint, by mail or in person, to the owner or operator, at the time of filing the complaint. (b) If a civil action under this part has not been filed by the enforcement agency within 21 days after receipt of the complaint, the complainant may bring a civil action for injunctive or declaratory relief and appropriate statutory damages, civil penalties, actual damages, penalties, and other remedies which arise from any violation of this part, building standards published in the State Building Standards Code relating to employee housing, regulations adopted pursuant to this part, or conditions of the permit. (c) In any civil action under this section, if the enforcement agency certifies that the employee housing is in compliance with this part, building standards published in the State Building Standards Code relating to employee housing, regulations adopted pursuant to this part, and conditions of the permit, no injunctive relief related to mandatory repairs shall be granted with respect to any alleged violation covered by the certificate. (d) In any civil action brought by a private person or entity under this section, the private person or entity may be granted reasonable attorney’s fees and costs, in addition to any other remedy granted, if the private person or entity prevails, and if the trier of fact finds that the violations involve retaliation or are so extensive and of such a nature that the immediate health and safety of residents or the public is endangered or has been endangered. (e) If a complainant alleges, and the court finds, that residents of the employee housing were in imminent peril as a result of serious violations of this part, the complainant may immediately proceed with the filing of a civil action without regard to the 21-day waiting period specified in subdivision (b). (Amended by Stats. 2000, Ch. 702, Sec. 2. Effective January 1, 2001.)
  7. 17056.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 5. Enforcement [17050 - 17056] ( Chapter 5 added by Stats. 1979, Ch. 62. )

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    The department must set up enforcement procedures and resources, coordinate with agencies, and use civil service employees to carry out this part of the law.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 5. Enforcement [17050 - 17056] ( Chapter 5 added by Stats. 1979, Ch. 62. ) ## 17056. (a) In every part of the state, notwithstanding assumption of responsibilities by local enforcement agencies pursuant to Section 17050, the department shall establish procedures and devote resources to locating and prosecuting the most serious violators of this part and those who refuse to apply for or obtain permits to operate pursuant to this part, as determined by the department. (b) The department shall maximize the efforts of personnel implementing this part by seeking to use new resources and nontraditional means, by coordinating with state, local, and federal agencies and by training and coordinating with local health and building departments. (c) All of the requirements of this part shall be performed by civil service employees of the department who, to the extent feasible, shall be bilingual in Spanish and English. (Amended by Stats. 1995, Ch. 561, Sec. 4. Effective January 1, 1996.)
  8. 17060.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 6. Violations [17060 - 17062.5] ( Chapter 6 added by Stats. 1979, Ch. 62. )

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    Nonconforming employee housing can be treated as a public nuisance and abated if it is not brought into compliance on time.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 6. Violations [17060 - 17062.5] ( Chapter 6 added by Stats. 1979, Ch. 62. ) ## 17060. (a) Any employee housing which does not conform to this part, building standards published in the State Building Standards Code relating to employee housing, the other regulations adopted pursuant to this part, or conditions of the permit, is a public nuisance and, if not made to conform within five days or within a longer period of time, not to exceed 30 days, which may be allowed by the enforcement agency after written notice, shall be abated by proper action brought in the superior court of the county in which the employee housing or greater portion thereof is situated. Where inspection verifies that the owner or operator of employee housing is proceeding with reasonable diligence, or where conditions beyond the control of the owner or operator prevent conformance, the enforcement agency may grant time extensions not to exceed 30 days in duration. No more than two of these extensions shall be allowed by the enforcement agency prior to initiation of action to abate the public nuisance. (b) Any violation of this part, building standards published in the State Building Standards Code relating to employee housing, the other regulations adopted pursuant to this part, or the provisions of the permit which constitute an immediate or material hazard to the health or safety of the occupants of employee housing, shall be remedied within five days after written notice by the enforcement agency, or shorter time in case of emergency. In the event of failure to comply with this section, the Attorney General, or the attorney for the enforcement agency, shall, by verified complaint setting forth the facts, apply to the superior court for an order granting the relief for which the action or proceeding is brought until the entry of a final judgment or order. (c) The superior court may make any order for which application is made pursuant to this section. (d) In any action or proceeding brought pursuant to this part, service of summons is sufficient if served in the manner provided in the Code of Civil Procedure. (e) (1) Any enforcement agency which institutes an action or proceeding pursuant to this section shall, at the time of filing the action or proceeding, record in the office of the recorder of the county or counties in which the property affected by the action or proceeding is situated, a notice of the pendency of the action or proceeding. (2) The enforcement agency may charge the property owner for any costs involved in recording the notice and shall reimburse the owner for any amount charged if the action or proceeding is dismissed or if judgment is rendered for the property owner. (f) The notice recorded pursuant to subdivision (e) shall be withdrawn by the enforcement agency by recording in the office of the county recorder, in the county or counties in which the notice was recorded, a notice of withdrawal within five days following satisfaction of a court order or other resolution of the action or proceeding. (g) In any action or proceeding brought pursuant to this part, it is not necessary for the complainant to provide or file any undertaking or bond for the issuance of any preliminary or permanent injunction. In addition, it is not necessary for a complainant to allege or prove actual damages or the threat thereof, or actual injury or the threat thereof, to the plaintiff, so long as a violation of this part is alleged and proven. (Amended by Stats. 1993, Ch. 589, Sec. 95. Effective January 1, 1994.)
  9. 17060.2.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 6. Violations [17060 - 17062.5] ( Chapter 6 added by Stats. 1979, Ch. 62. )

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    Employee housing operators must give residents bilingual copies of violation notices with an explanation of the expected response, and enforcement-related relocation and abatement actions are limited by several tenant-protection conditions.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 6. Violations [17060 - 17062.5] ( Chapter 6 added by Stats. 1979, Ch. 62. ) ## 17060.2. (a) Notwithstanding any other provision of law, the operator of employee housing shall provide a resident of every unit in the employee housing with a written copy in English and Spanish of every order or notice of violation issued by an enforcement agency accompanied by an explanation of the owner’s or operator’s anticipated response to the order or notice. Each notice shall also advise the occupants of the right to a hardship deferral and the procedure for obtaining this, as set forth in subdivision (c). These copies may be provided by first-class mail or by posting a copy of the notice in a prominent place on each residential unit. (b) (1) (A) The enforcement agency shall not require the vacating of all or any part of an accommodation unless it concurrently orders the operator to provide for the relocation of the tenants consistent with the requirements of Section 17062 prior to the date the vacating is required and requires expeditious demolition or repair to comply with this part, the building standards related to employee housing, or other rules and regulations adopted pursuant to this part. Any local government may, prior to January 1, 1994, enact a local relocation ordinance that imposes requirements more stringent than those contained in this section. The tenant or tenant association may enforce the relocation remedies of this section, and the enforcement agency, to the extent feasible, shall cooperate in these efforts. The enforcement agency may require vacation and demolition or itself vacate the building, repair or demolish the building, or institute any other appropriate action or proceeding, if either of the following occurs: (i) The repair work is not done as scheduled or cannot be completed within a reasonable period of time. (ii) There is a significant threat to the residents’ or public health and safety. (B) In any civil action brought by a private person or entity to obtain relocation assistance pursuant to subparagraph (A), following an enforcement agency’s order to vacate all or any part of an accommodation, and the failure to comply with the agency’s order to provide for the relocation of the tenants, the private person or entity, if he, she, or it is the prevailing party, may be granted reasonable attorney’s fees and costs, in addition to any other remedy granted. (2) Prior to vacating and demolishing the accommodation, the public agency shall exert every reasonable effort to obtain or cause repairs. In addition, to the extent feasible, if the public entity causes vacation of the accommodation, it shall cooperate in efforts to obtain compensation from the owner or operator to compensate the displaced residents for their relocation expenses, including rent differentials. (c) The enforcement agency or a court of competent jurisdiction may, in cases of extreme hardship to tenants of employee housing, provide for deferral of the effective date of orders of abatement. Any deferral of the effective date of any order of abatement shall include conditions, including, but not limited to, payment of rent to an appropriate receiver, which will ensure progress towards correcting defects, or assist in relocation of tenants prior to closure of the employee housing. (Amended by Stats. 1995, Ch. 91, Sec. 63. Effective January 1, 1996.)
  10. 17060.5.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 6. Violations [17060 - 17062.5] ( Chapter 6 added by Stats. 1979, Ch. 62. )

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    A property sale or transfer does not end an enforcement action, and later owners may still be bound by correction orders tied to a recorded notice.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 6. Violations [17060 - 17062.5] ( Chapter 6 added by Stats. 1979, Ch. 62. ) ## 17060.5. (a) The sale or other transfer of property to a third party shall not render moot an action or proceeding brought pursuant to this chapter and instituted by an enforcement agency against the owner of record on the date a citation for a violation of this part was issued. (b) Any person who obtains an ownership interest in any property after a notice of an action or proceeding has been recorded with respect to the property pursuant to Section 17060, and where there has been no withdrawal of the notice, shall be subject to any order to correct a violation, including any time limitations, specified in a citation issued pursuant to Section 17060. (Added by Stats. 1983, Ch. 1210, Sec. 3.)
  11. 17061.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 6. Violations [17060 - 17062.5] ( Chapter 6 added by Stats. 1979, Ch. 62. )

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    Violating this part can trigger criminal penalties and civil penalties, with higher penalties if the violation is willful or causes personal injury.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 6. Violations [17060 - 17062.5] ( Chapter 6 added by Stats. 1979, Ch. 62. ) ## 17061. (a) Any person who violates, or causes another person to violate, any provision of this part is guilty of a misdemeanor, punishable by a fine of not more than two thousand dollars ($2,000), or imprisonment for not more than 180 days, or both, for each violation of this part, provided that the violation does not cause personal injury to any person. (b) Any person who willfully violates, or causes another person to violate, any provision of this part, provided that the violation causes personal injury to any person, is punishable by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for two, three, or four years, or in a county jail not exceeding one year, or by a fine of not less than four thousand dollars ($4,000), but not exceeding ten thousand dollars ($10,000), or by both that fine and imprisonment for each violation, or each day of a continuing violation, causing personal injury. This subdivision shall not be construed to preclude, or in any way limit, the applicability of any other law in any criminal prosecution. (c) Any person who violates any provision of this part shall be liable for a civil penalty of not less than three hundred dollars ($300), nor more than one thousand dollars ($1,000), for each violation or for each day of a continuing violation. The amount of the civil penalty may be doubled, to a limit of not more than ten thousand dollars ($10,000), for each violation or for each day of a continuing violation if the court determines that the violation was willful, or if the court finds that the person received notice from an enforcement agency within the prior three years regarding any employee housing owned or operated by that person, and the violations are so extensive and of such a nature that the immediate health and safety of the residents or the public is endangered or has been endangered. The enforcement agency, or any person or entity affected by the violation, may institute or maintain an action in the appropriate court to collect any civil penalty arising under this subdivision and may be awarded reasonable costs and attorney’s fees incurred in proving the existence of each violation and the liability for the civil penalties. (Amended by Stats. 2011, Ch. 15, Sec. 185. (AB 109) Effective April 4, 2011. Operative October 1, 2011, by Sec. 636 of Ch. 15, as amended by Stats. 2011, Ch. 39, Sec. 68.)
  12. 17061.5.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 6. Violations [17060 - 17062.5] ( Chapter 6 added by Stats. 1979, Ch. 62. )

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    This section sets penalties for repeat violations, contempt of court orders, and serious ongoing housing violations.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 6. Violations [17060 - 17062.5] ( Chapter 6 added by Stats. 1979, Ch. 62. ) ## 17061.5. (a) Any person who is convicted pursuant to Section 17061 for a second or subsequent time within a five-year period or is convicted pursuant to subdivision (d) for a first or subsequent time within a five-year period after issuance of an injunction enforcing this chapter shall be punishable by a fine not to exceed six thousand dollars ($6,000) or by imprisonment not exceeding six months, or both the fine and imprisonment for each violation or day of a continuing violation. (b) Any person found in contempt of a court order or injunction pursuant to Section 17060 within a five-year period from its issuance may be subject to a judgment for reasonable enforcement costs, including investigative costs, court costs, and attorney’s fees, and civil penalties not to exceed six thousand dollars ($6,000) or by imprisonment not exceeding six months, or both the civil penalty and imprisonment, for each violation or day of a continuing violation. (c) (1) If an injunction enforcing this chapter is issued within a five-year period after a conviction pursuant to subdivision (a), a finding of contempt pursuant to subdivision (b), or a prior injunction enforcing this chapter, the injunction shall provide for a civil penalty not to exceed six thousand dollars ($6,000) for each violation or day of a continuing violation and all costs of enforcement, including, but not limited to, investigative costs, inspection costs, enforcement costs, attorney’s fees or costs, and all other costs of prosecution. (2) The court may also order the owner not to claim any deduction with respect to state taxes for interest, taxes, expenses, depreciation, or amortization paid or incurred, with respect to the cited structure or structures, and related real property, in the taxable year of the initial order or notice. Within 90 days after issuing the order, the court shall mail to the Franchise Tax Board a written notice of its order prohibiting the owner from claiming deductions with respect to the cited structure or structures, and related real property, in lieu of the processing of a violation by the enforcement agency in accordance with Sections 17274 and 24436.5 of the Revenue and Taxation Code. (3) The Franchise Tax Board shall examine the tax return of the owner of the cited structure or structures, and related real property, for the taxable year of the initial order or notice issued pursuant to paragraph (2). Notwithstanding Sections 19282 and 26451 of the Revenue and Taxation Code, the Franchise Tax Board shall notify the issuing court regarding the owner’s compliance with the court order prohibiting the claiming of deductions with respect to the cited structure or structures, and related real property. (d) Any person found in contempt of a court order or injunction pursuant to Section 17060, or who is convicted pursuant to Section 17061, for a second or subsequent time within a five-year period after a prior finding of contempt, a prior conviction, or the prior issuance of an injunction relating to the enforcement of this chapter, where there are violations that are determined by the trier of fact to be so extensive and of such a nature that the immediate health and safety of residents or the public is endangered and where the extent and nature of the violations are due to the defendant’s habitual neglect of customary maintenance and display a flagrant lack of concern for the health and safety of residents or the public, may be subject to a judgment for reasonable enforcement costs, including investigative costs, court costs, and attorney’s fees, and punishable by a fine not exceeding six thousand dollars ($6,000) and by imprisonment for not less than six months, but not exceeding one year, for each violation or day of a continuing violation, if the trier of fact finds at least three serious violations of the following categories of violations are involved: (1) Termination, extended interruption, or serious defects of gas, water, or electric utility systems, if the interruption or termination is not caused by the tenant’s failure to pay gas, water, or electric bills. (2) Serious defects or lack of adequate space and water heating. (3) Serious rodent, vermin, or insect infestation. (4) Severe deterioration, rendering significant portions of the structure unsafe or unsanitary. (5) Inadequate numbers of garbage receptacles or service. (6) Unsanitary conditions affecting a significant portion of the structure as a result of faulty plumbing or sewage disposal. (e) The remedies provided in subdivisions (a) to (d), inclusive, for second or subsequent violations shall apply without regard to whether the violations involved the same or different properties, or the same or different locations within a property, owned or operated by the person committing the violation. (Amended by Stats. 1992, Ch. 1298, Sec. 44. Effective January 1, 1993.)
  13. 17061.7.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 6. Violations [17060 - 17062.5] ( Chapter 6 added by Stats. 1979, Ch. 62. )

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    A court may order certain repeat contempt/conviction violators in employee-housing cases into house confinement, and may also require them to pay guard costs if they can afford it, subject to a $2,000 maximum.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 6. Violations [17060 - 17062.5] ( Chapter 6 added by Stats. 1979, Ch. 62. ) ## 17061.7. (a) Any person found in contempt of a court order or injunction pursuant to Section 17060, or who is convicted pursuant to Section 17061, for a second or subsequent time within a five-year period after a prior finding of contempt, after a prior conviction, or after the prior issuance of an injunction relating to the enforcement of this chapter, may, in lieu of any penalties ordered pursuant to Section 17061.5 or any other provision of law, be ordered by the court, on its own motion or pursuant to a trial by jury on that issue if that is requested by the defendant, to be placed in house confinement in the employee housing or any accommodation within the employee housing that is the subject of the court action. The house confinement ordered pursuant to this section shall be for a period not to exceed one year. (b) A defendant ordered to house confinement pursuant to this section may also be ordered by the court to pay the cost of having a police officer or guard stand guard outside the area in which the defendant has been confined under house confinement if it has been determined by the court that the defendant is able to pay these costs. No defendant shall be ordered, pursuant to this subdivision, to pay an amount exceeding two thousand dollars ($2,000) for any period of house confinement. (Amended by Stats. 1992, Ch. 1298, Sec. 45. Effective January 1, 1993.)
  14. 17061.9.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 6. Violations [17060 - 17062.5] ( Chapter 6 added by Stats. 1979, Ch. 62. )

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    The section lets certain housing enforcement officials issue citations and civil penalties for employee housing violations, sets penalty limits, and gives cited persons a petition-and-hearing process.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 6. Violations [17060 - 17062.5] ( Chapter 6 added by Stats. 1979, Ch. 62. ) ## 17061.9. (a) In addition to other remedies provided in this part, the Director of the Department of Housing and Community Development or his or her designee or an employee authorized by a local enforcement agency which has assumed jurisdiction pursuant to Section 17050, may issue a citation which assesses a civil penalty to any owner or operator, or both, of employee housing violating this part, or regulations promulgated hereunder, if the owner or operator, or both, has permitted the continuation of a violation for at least 30 days after issuance of an order to correct the violation or violations from the enforcement agency. Each citation and related civil penalty assessment shall be issued no later than seven months after issuance of the order to correct which is the basis of the citation. The civil penalties provided for in this section are not in addition to the penalties established in subdivision (b) of Section 17037. (b) The amount of any civil penalty assessed pursuant to subdivision (a) shall not exceed three hundred dollars ($300) for each violation. The civil penalties assessed pursuant to this section shall be payable to the enforcement agency, notwithstanding any other provision of law. Whether or not the violation or violations, if applicable, giving cause for the citation are corrected, payment of the civil penalty shall be remitted to the enforcement agency within 45 days of the issuance of the citation. (c) The amount of the civil penalty shall be increased to an amount not to exceed five hundred dollars ($500) for a violation if all the following circumstances exist: (1) The citation is for a second or subsequent violation of this part, or the regulations promulgated hereunder, for which an order to correct was issued within one year prior to issuance of the new citation; and (2) The original violation has continued to exist for at least six months from the date the order to correct the violation was issued or has recurred within six months from the date the order to correct the violation was issued. (d) Any person or entity served a citation pursuant to this section may petition the director or his or her designee or the officially authorized representative of the local enforcement agency, where applicable. The petition shall be a written request briefly stating the grounds of the request. Any petition to be considered, shall be received by the department or the local enforcement agency within 30 days of the date of issuance of the citation. (e) Upon receipt of a timely and complying petition, the enforcement agency shall suspend enforcement of the citation and set a time and place for the informal hearing and shall give the recipient of the citation written notice thereof. The hearing shall commence no later than 30 days following receipt of the petition or at another time scheduled by the enforcement agency pursuant to a request by the petitioner or the enforcement agency if the enforcement agency determines that good and sufficient cause exists. If the petitioner fails to appear at the time and place scheduled for the hearing, the enforcement agency may notify the petitioner in writing that the petition is dismissed and that compliance with the terms of the citation shall occur within 10 days after receipt of the notification. (f) The enforcement agency shall notify the petitioner in writing of its decision and the reasons therefor within 30 days following conclusion of the informal hearing held pursuant to this section. If the decision upholds the citation, in whole or in part, the petitioner shall comply with the citation in accordance with the decision within 30 days after the decision is mailed by the enforcement agency. (Amended by Stats. 1992, Ch. 1298, Sec. 46. Effective January 1, 1993.)
  15. 17062.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 6. Violations [17060 - 17062.5] ( Chapter 6 added by Stats. 1979, Ch. 62. )

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    This section lets the court use a receiver and other remedies to fix substandard employee housing, and it can order relocation, costs, fees, and reporting.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 6. Violations [17060 - 17062.5] ( Chapter 6 added by Stats. 1979, Ch. 62. ) ## 17062. (a) Any state or local agency which participated in the investigation and enforcement pursuant to this part shall be reimbursed for its investigative and legal costs prior to and subsequent to the judgment. (b) Notwithstanding any other provision of law, upon motion by the enforcement agency, the operator, or the tenants, the court may issue an order which would result in correction of defects, rather than closure of the employee housing. The order may provide, notwithstanding subdivision (a), that fines and penalties be paid for improvements, or that a lien be levied against the property to pay the costs of an independent receiver to complete repairs, or any other just and reasonable procedures. (c) (1) (A) If employee housing is maintained in a manner that violates any provision of this part, including any rule, standard, or regulation promulgated pursuant to this part, and the violation is so extensive and of such a nature that the health and safety of residents or the public is substantially endangered, and if the owner or operator does not, within a reasonable time after issuance of the notice or order by the enforcement agency, correct the condition that is the cause of the violation, the enforcement agency, tenant, or tenant association or organization may, in addition to any other remedies provided by law, seek the appointment of a receiver pursuant to this subdivision. (B) In its petition to the court, the enforcement agency, tenant, or tenant association or organization shall include proof that notice of the petition was served not less than five days prior to filing the petition, pursuant to Article 3 (commencing with Section 415.10) of Chapter 4 of Title 5 of Part 2 of the Code of Civil Procedure, to all persons with a recorded interest in the real property upon which the substandard employee housing exists. (C) In appointing a receiver, the court shall consider whether the owner has been afforded a reasonable opportunity to correct the conditions cited in the notice of violation. The court shall not appoint any person as a receiver unless the person has demonstrated to the court his or her capacity, willingness, and expertise to develop and supervise a viable financial and construction plan for the satisfactory rehabilitation of the employee housing. If a receiver is appointed, the owner and his or her agent of the substandard employee housing shall be enjoined from collecting rents from the tenants, interfering with the receiver in the operation of the substandard employee housing, and encumbering or transferring the substandard employee housing or real property upon which the employee housing is situated. (2) Any receiver appointed pursuant to this section shall have all of the following powers and duties in the order of priority listed in this paragraph, unless the court otherwise permits: (A) To take full and complete control of the substandard employee housing. (B) To manage the substandard employee housing and pay expenses of the operation of the substandard employee housing and real property upon which the employee housing is located, including taxes, insurance, utilities, general maintenance, and debt secured by an interest in the real property. However, the receiver shall not operate the employee housing for a longer period each year than the period it previously was operated as employee housing each year by the operator or owner. (C) To secure a cost estimate and construction plan from a licensed contractor for the repairs necessary to correct the conditions cited in the notice of violation. (D) To enter into contracts and employ a licensed contractor as necessary to correct the conditions cited in the notice of violation. (E) To collect all rents and income from the substandard employee housing. (F) To use all rents and income from the substandard employee housing to pay for the cost of rehabilitation and repairs determined by the court as necessary to correct the conditions cited in the notice of violation. (G) To borrow funds to pay for repairs necessary to correct the conditions cited in the notice of violation and to borrow funds to pay for any relocation benefits authorized by paragraph (4) and secure that debt, with court approval, with a lien on the real property upon which the substandard employee housing is located. The lien shall be recorded in the county recorder’s office in the county within which the employee housing is located. (H) To exercise the powers granted receivers under Section 568 of the Code of Civil Procedure. (3) The receiver shall be entitled to the same fees, commissions, and necessary expenses as receivers in actions to foreclose mortgages. (4) If the conditions of the employee housing or the repair or rehabilitation thereof significantly affect the safe and sanitary use of the substandard employee housing by any tenant, to the extent that the tenant cannot safely reside in his or her unit, then the receiver shall provide relocation benefits in accordance with paragraph (3) of subdivision (d). (5) The relocation compensation provided for in this section shall not preempt any local ordinance that provides for greater relocation assistance. (6) In addition to any reporting required by the court, the receiver shall prepare monthly reports to the state or local enforcement agency which shall contain information on at least the following items: (A) The total amount of rent payment received. (B) Nature and amount of contracts negotiated relative to the operation or repair of the property. (C) Payments made toward the repair of the premises. (D) Progress of necessary repairs. (E) Other payments made relative to the operation of the employee housing. (F) Amount of tenant relocation benefits paid. (7) The receiver shall be discharged when the conditions cited in the notice of violation have been remedied in accordance with the court order or judgment and a complete accounting of all costs and repairs has been delivered to the court. Upon removal of the condition, the owner, the mortgagee, or any lienor of record may apply for the discharge of all moneys not used by the receiver for removal of the condition and all other costs authorized by this section. (8) The prevailing party in an action pursuant to this section shall at the court’s equitable discretion be entitled to reasonable attorney’s fees and court costs as may be fixed by the court. (9) The county recorder may charge and collect fees for the recording of all notices and other documents required by this section pursuant to Article 5 (commencing with Section 27360) of Chapter 6 of Division 2 of Title 3 of the Government Code. (10) Nothing in this section shall be construed to limit those rights available to tenants and owners under any other provision of the law. (11) Nothing in this section shall be construed to deprive an owner of substandard employee housing of all procedural due process rights guaranteed by the California Constitution and the United States Constitution, including, but not limited to, receipt of notice of the violation claimed and an adequate and reasonable period of time to comply with any orders that are issued by the enforcement agency or the court. (d) If the court finds that the employee housing is in a condition that substantially endangers the health and safety of residents pursuant to subdivision (a) of Section 17980.6, upon the entry of any order or judgment, the court shall do all of the following: (1) Order the owner to pay all reasonable and actual costs of the enforcement agency including, but not limited to, inspection costs, investigation costs, enforcement costs, attorney’s fees or costs, and all costs of prosecution. (2) Order that the local enforcement agency shall provide the tenants with notice of the court order or judgment. (3) Order that, if the owner undertakes repairs or rehabilitation as a result of being cited for a notice under this chapter, and if the conditions of the premises or the repair or rehabilitation thereof significantly affect the safe and sanitary use of the premises by any lawful tenant, so that the tenant cannot safely reside in the premises, then the owner shall provide or pay relocation benefits to each lawful tenant as specified in subdivision (b) of Section 17060.2. These benefits shall consist of actual reasonable moving and storage costs and relocation compensation. The actual moving and storage costs shall consist of all the following: (A) Transportation of the tenant’s personal property to the new location. The new location shall be in close proximity to the substandard premises, except where relocation to a new location beyond a close proximity is determined by the court to be justified. (B) Packing, crating, unpacking, and uncrating the tenant’s personal property. (C) Insurance of the tenant’s property while in transit. (D) The reasonable replacement value of property lost, stolen, or damaged (not through the fault or negligence of the displaced person, his or her agent, or his or her employee) in the process of moving, where insurance covering the loss, theft, or damage is not reasonably available. (E) The cost of disconnecting, dismantling, removing, reassembling, reconnecting, and reinstalling machinery, equipment, or other personal property of the tenant, including connection charges imposed by utility companies for starting utility service. (e) (1) The relocation compensation shall be an amount equal to the differential between the contract rent and the fair market rental value determined by the United States Department of Housing and Urban Development for a unit of comparable size within the area for the period that the unit is being repaired, not to exceed 120 days or the duration that the camp is open, or the term of employment, whichever is less. (2) (A) If the court finds that a tenant has been substantially responsible for causing or substantially contributing to the substandard conditions, then the relocation benefits of this section shall not be paid to this tenant. Each other tenant on the premises who has been ordered to relocate due to the substandard conditions and who is not substantially responsible for causing or contributing to the conditions shall be paid these benefits and moving costs at the time that he or she actually relocates. (B) The court shall determine the date when the tenant is to relocate, and order the tenant to notify the enforcement agency and the owner of the address of the premises to which he or she has relocated, within five days after the relocation. (C) (i) The court shall order that the owner shall offer the first right to occupancy of the premises to each tenant who received benefits pursuant to paragraph (3) of subdivision (d), before letting the unit for rent to a third party. The owner’s offer on the first right to occupancy to the tenant shall be in writing, and sent by first-class certified mail to the address given by the tenant at the time of relocation. If the owner has not been provided the tenant’s address by the tenant as prescribed by this section, the owner shall not be required to provide notice under this section or offer the tenant the right to return to occupancy. (ii) The tenant shall notify the owner in writing that he or she will occupy the unit. The notice shall be sent by first-class certified mail no later than 10 days after the notice has been mailed by the owner. (D) The court shall order that failure to comply with any abatement order under this chapter shall be punishable by civil contempt penalties under Chapter 6 (commencing with Section 17995) of Part 1.5, and any other penalties and fines as are available. (f) The initiation of a proceeding or entry of a judgment pursuant to this section or Section 17980.6 shall be deemed to be a “proceeding” or “judgment” as provided by paragraph (4) or (5) of subdivision (a) of Section 1942.5 of the Civil Code. (g) The term “owner,” for the purposes of this section, shall include the owner, including any public entity that owns residential real property, at the time of the initial notice or order and any successor in interest who had actual or constructive knowledge of the notice, order, or prosecution. (h) The remedies authorized by this section shall be in addition to those provided by any other law. (i) Nothing in this section or in Section 17980.6 shall impair the rights of an owner exercising his or her rights established pursuant to Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 of the Government Code. (Amended by Stats. 1993, Ch. 952, Sec. 6. Effective January 1, 1994.)
  16. 17062.5.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 6. Violations [17060 - 17062.5] ( Chapter 6 added by Stats. 1979, Ch. 62. )

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    This section sets how fines, civil penalties, and damages awarded under the part must be paid and split.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1. EMPLOYEE HOUSING ACT [17000 - 17062.5] ( Part 1 added by Stats. 1979, Ch. 62. ) ## CHAPTER 6. Violations [17060 - 17062.5] ( Chapter 6 added by Stats. 1979, Ch. 62. ) ## 17062.5. All fines, civil penalties, and damages awarded pursuant to this part shall be paid as provided in this section. The court order shall direct payment of these moneys for the costs authorized by subdivision (a) of Section 17062 or subdivision (d) of Section 17055. Thereafter, 50 percent of the balance of the total award shall be paid to the agency, person, or entity to which subdivision (a) of Section 17062 or subdivision (d) of Section 17055 is applicable. The balance of the award, if at least one thousand dollars ($1,000) is paid to that agency, person, or entity, shall be deposited in the Farmworker Housing Grant Fund, created pursuant to Section 50517.5, for expenditure by the department without further appropriation in a manner consistent with the other requirements of Section 50517.5, for any of the following purposes: (a) Rental housing that serves lower and very low income households, as defined in Sections 50079.5 and 50105, respectively, who are agricultural employees. (b) Rental dormitories for unaccompanied men or women who are agricultural employees. (c) Rehabilitation or replacement of existing employee housing for seasonal use. (Added by Stats. 1993, Ch. 952, Sec. 7. Effective January 1, 1994.)
  17. 1725.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    Home health agencies must be licensed by the department, and the department must set quality standards and oversee unlicensed skilled-nursing activity in the home.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1725. (a) The purpose of this chapter is to require licensure of home health agencies in order to protect the health and safety of the people of California. (b) All organizations that provide skilled nursing services to patients in the home shall obtain a home health agency license issued by the department. (c) The department shall establish high standards of quality for home health agencies and ensure that unlicensed entities are not providing skilled nursing services in the home, except as set forth in Section 1726. (d) The department shall require that the appropriate field staff be informed of the proper protocols and procedures to document, report, and investigate reported incidents of unlicensed facilities providing skilled nursing services in the home in order to protect public health and to facilitate statewide consistency in documenting and investigating those entities. (Amended by Stats. 2005, Ch. 335, Sec. 1. Effective January 1, 2006.)
  18. 1726.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    Organizations may not provide or arrange skilled nursing services in the home in this state without first getting a home health agency license.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1726. (a) No private or public organization, including, but not limited to, any partnership, corporation, political subdivision of the state, or other governmental agency within the state, shall provide, or arrange for the provision of, skilled nursing services in the home in this state without first obtaining a home health agency license. (b) No private or public organization, including, but not limited to, any partnership, corporation, or political subdivision of the state, or other governmental agency within the state, shall do any of the following unless it is licensed under this chapter: (1) Represent itself to be a home health agency by its name or advertisement, soliciting, or any other presentments to the public, or in the context of services within the scope of this chapter imply that it is licensed to provide those services or to make any reference to employee bonding in relation to those services. (2) Use the words “home health agency,” “home health,” “home-health,” “homehealth,” or “in-home health,” or any combination of those terms, within its name. (3) Use the words “skilled” or “nursing,” or any combination of those terms within its name, to imply that it is licensed as a home health agency to provide those services. (c) In implementing the system of licensing for home health agencies, the department shall distinguish between the functions of a home health agency and the functions of an employment agency or a licensed nurses’ registry pursuant to Title 2.91 (commencing with Section 1812.500) of Part 4 of Division 3 of the Civil Code. An employment agency or a licensed nurses’ registry performing its functions as specified in Title 2.91 (commencing with Section 1812.500) of Part 4 of Division 3 of the Civil Code is not required to secure a home health agency license under subdivision (a), unless it is performing the functions of a home health agency, as defined in this chapter. However, subdivision (b) shall apply to an employment agency or a licensed nurses’ registry that is not licensed under this chapter. (d) A hospice is not required to secure a home health agency license under subdivision (a). However, subdivision (b) shall apply to a hospice that is not licensed under this chapter. (Amended by Stats. 2005, Ch. 335, Sec. 2. Effective January 1, 2006.)
  19. 1727.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    This section defines “home health agency,” “skilled nursing services,” “home health aide,” and “home health aide services,” and says home health aide services must be provided by a state-certified home health aide.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1727. (a) “Home health agency” means a private or public organization, including, but not limited to, any partnership, corporation, political subdivision of the state, or other government agency within the state, which provides, or arranges for the provision of, skilled nursing services, to persons in their temporary or permanent place of residence. (b) “Skilled nursing services” means services provided by a registered nurse or licensed vocational nurse. (c) “Home Health Aide” means an aide who has successfully completed a state-approved training program, is employed by a home health agency or hospice program, and provides personal care services in the patient’s home. (d) “Home health aide services” means personal care services provided under a plan of treatment prescribed by the patient’s physician and surgeon who is licensed to practice medicine in the state. Home health aide services shall be provided by a person certified by the state department as a home health aide pursuant to this chapter. Services which do not involve personal care services provided under a plan of treatment prescribed by a physician and surgeon may be provided by a person who is not a certified home health aide. Home health aide services shall not include services provided pursuant to Article 7 (commencing with Section 12300) of Chapter 3 of Part 3 of Division 9 of the Welfare and Institutions Code. (Amended by Stats. 1994, Ch. 1246, Sec. 9. Effective January 1, 1995.)
  20. 1727.1.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    A licensed home health agency may provide or arrange other therapeutic services for people at their temporary or permanent residence.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1727.1. A licensed home health agency may also provide, or arrange for the provision of, other therapeutic services to persons in their temporary or permanent place of residence. Therapeutic services include, but are not limited to, physical, speech, or occupational therapy, medical social services, and home health aide services. (Added by Stats. 1989, Ch. 856, Sec. 6.)
  21. 1727.5.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    Home health agencies providing home health agency services must maintain treatment plans, clinical records, supervision, care policies, required policies for legend devices, and comply with applicable requirements and state department standards.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1727.5. Each home health agency providing home health agency services shall do all of the following: (a) Provide for a plan of treatment for patients receiving skilled nursing services. (b) Maintain clinical records on all patients. (c) Provide for the supervision of licensed and unlicensed personnel by a registered nurse or physical, speech, or occupational therapist when within the therapist’s scope of practice. (d) Maintain policies regarding the delivery and supervision of patient care that are reviewed annually by a group of professional personnel including a physician and surgeon and a registered nurse and revised as needed. (e) Meet all applicable federal, state, and local requirements. (f) Maintain, and revise as needed, and implement policies regarding the purchase, storage, furnishing, and transportation of legend devices that are reviewed annually by a group of professional personnel, including a physician and surgeon, pharmacist, and a registered nurse. As used in this subdivision, “legend devices” means any device that bears the label “Caution: federal law restricts this device to sale by or on the order of a ____” or words of similar meaning. (g) Meet other standards, rules, and regulations adopted by the state department in order to implement this chapter. (Amended by Stats. 1992, Ch. 1104, Sec. 4. Effective September 29, 1992.)
  22. 1727.7.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    The director must adopt revised home health agency licensure regulations, and they must be adopted on an emergency basis.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1727.7. (a) The Legislature finds and declares the following: (1) Thousands of patients receive home health care each year, thus preventing, postponing, and limiting the need for unnecessary institutionalization. (2) The adoption of emergency home health agency licensing regulations is necessary in order to conform existing home health agency licensing regulations to state law and the current scope and practice of home health care. (3) The adoption of emergency home health agency regulations is necessary due to the increased provider and consumer demands for home care services and advances in health care technology. (4) The adoption of emergency home health agency regulations is necessary due to the emerging influences of health care reform and changing expectations of managed care programs and insurance providers. (b) The director shall adopt revised home health agency licensure regulations. These revised regulations shall be adopted on an emergency basis. Until January 1, 1996, the adoption of any emergency regulations pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code to implement this section shall be deemed to be an emergency by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, or general welfare. (c) It is the intent of the Legislature that the adoption of home health agency licensure regulations pursuant to this chapter shall in no way prohibit interested parties from participating in review of the revised regulations. It is also the intent of the Legislature that the adoption of the revised regulations shall in no way narrow the existing scope of practice of registered nurses or licensed vocational nurses or lessen the quality of nurse supervision or care in the home health care setting. (Added by Stats. 1994, Ch. 551, Sec. 1. Effective September 12, 1994.)
  23. 1728.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    Certain applicants must file a verified application with the state department on the required form.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1728. Any person, organization, political subdivision of the state or governmental agency desiring a license under the provisions of this chapter or a hospital as defined in Section 1401 of this division which desires to establish, conduct, or maintain a home health agency shall file with the state department a verified application on a form prescribed, prepared and furnished by the state department, containing information as may be required by the state department for the proper administration and enforcement of this chapter. (Added by Stats. 1966, 1st Ex. Sess., Ch. 79.)
  24. 1728.1.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    To get a home health agency license, applicants and certain related persons must meet character, compliance, fingerprinting, and reporting requirements; agencies also must maintain listed management roles and report changes on time.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1728.1. (a) To qualify for a home health agency license, the following requirements shall be met: (1) Every applicant shall satisfy the following conditions: (A) Be of good moral character. If the applicant is a firm, association, organization, partnership, business trust, corporation, or company, all principal managing members thereof, and the person in charge of the agency for which application for license is made, shall satisfy this requirement. If the applicant is a political subdivision of the state or other governmental agency, the person in charge of the agency for which application for license is made, shall satisfy this requirement. (B) Possess and demonstrate the ability to comply with this chapter and the rules and regulations adopted under this chapter by the department. (C) File their application pursuant to and in full compliance with this chapter. (2) (A) The following persons shall submit to the State Department of Public Health an application and shall submit electronic fingerprint images to the Department of Justice for the furnishing of the person’s criminal record to the State Department of Public Health, at the person’s expense as provided in subdivision (b), for the purpose of a criminal record review: (i) The owner or owners of a private agency if the owners are individuals. (ii) If the owner of a private agency is a corporation, partnership, or association, any person having a 5 percent or greater interest in that corporation, partnership, or association. (iii) The administrator of a home health agency. (B) When the conditions set forth in paragraph (3) of subdivision (a) of Section 1265.5, subparagraph (A) of paragraph (1) of subdivision (a) of Section 1338.5, and paragraph (1) of subdivision (a) of Section 1736.6 are met, the licensing and certification program shall issue an All Facilities Letter (AFL) informing facility licensees. After the AFL is issued, facilities must not allow newly hired administrators, program directors, and fiscal officers to have direct contact with clients or residents of the facility prior to completion of the criminal record clearance. A criminal record clearance shall be complete when the department has obtained the person’s criminal offender record information search response from the Department of Justice and has determined that the person is not disqualified from engaging in the activity for which clearance is required. (3) The information required pursuant to this section shall be provided to the Licensing and Certification Program upon initial application for licensure. Unless otherwise specified, any change in the information that requires the licensee to submit a report of change or written notification to the Licensing and Certification Program shall be provided within 10 business days of the change along with any applicable fee according to subdivision (b) of Section 1266. (b) The persons specified in paragraph (2) of subdivision (a) shall be responsible for any costs associated with transmitting the electronic fingerprint images. The fee to cover the processing costs of the Department of Justice, not including the costs associated with capturing or transmitting the fingerprint images and related information, shall not exceed thirty-two dollars ($32) per submission. (c) If the criminal record review conducted pursuant to paragraph (2) of subdivision (a) discloses a conviction for a felony or any crime that evidences an unfitness to provide home health services, the application for a license shall be denied or the person shall be prohibited from providing service in the home health agency applying for a license. This subdivision shall not apply to deny a license or prohibit the provision of service if the person presents evidence satisfactory to the department that the person has been rehabilitated and presently is of such good character as to justify the issuance of the license or the provision of service in the home health agency. (d) An applicant and any other person specified in this section, as part of the background clearance process, shall provide information as to whether or not the person has any prior criminal convictions, has had any arrests within the past 12-month period, or has any active arrests, and shall certify that, to the best of their knowledge, the information provided is true. This requirement is not intended to duplicate existing requirements for individuals who are required to submit fingerprint images as part of a criminal background clearance process. Every applicant shall provide information on any prior administrative action taken against them by any federal, state, or local government agency and shall certify that, to the best of their knowledge, the information provided is true. An applicant or other person required to provide information pursuant to this section that knowingly or willfully makes false statements, representations, or omissions may be subject to administrative action, including, but not limited to, denial of their application or exemption or revocation of any exemption previously granted. (e) (1) A home health agency shall have an administrator, administrator designee, director of patient care services, and director of patient care services designee, and shall submit to the department all of the following information for each individual on an initial application: (A) An HS 215A form or its successor form. (B) A résumé. (C) A list of all licensed facilities and home health agencies in which the individual is currently serving as an administrator, administrator designee, director of patient care services, or director of patient care services designee. (2) A home health agency shall notify the department of any change in the administrator, administrator designee, director of patient care services, or director of patient care services designee by submitting the information described in paragraph (1) within 10 business days of the change. (3) All home health agencies shall report to the department the name of the agency’s administrator, administrator designee, director of patient care services, and director of patient care services designee by submitting the information required in paragraph (1). Existing agencies shall provide this information no later than March 31, 2027. (4) This subdivision does not apply to a branch office of a parent home health agency. (f) (1) The department shall verify the status of professional licensure for home health agency management personnel. (2) The department may also verify either or both of the following: (A) Association of home health agency management personnel listed on the licensing application with the home health agency. (B) Work history of home health agency management personnel. (3) For purposes of this subdivision, verification may include contacting the home health agency personnel or previous employers by telephone. (g) (1) Except as provided in paragraph (2), an applicant for licensure of a home health agency or a branch office shall demonstrate an unmet need for home health services in the home health agency’s geographic service area. (2) An applicant for a home health agency change of ownership does not need to comply with paragraph (1) for the previously approved service area if the license has been continuously held by the previous licensee for five years and one of the following conditions is met: (A) The home health agency has previously qualified for licensure after demonstrating and providing evidence of unmet need of home health services in the home health agency’s geographic service area. (B) The home health agency can demonstrate it is meeting a need for home health services in the geographic service area. (3) If the home health agency’s approved geographic service area will change upon the change in ownership, the new applicant for licensure shall demonstrate an unmet need for home health services for any new service area. (4) The department may consider and request additional supporting evidence to determine whether there is an unmet need in the home health agency’s geographic service area. (Amended by Stats. 2026, Ch. 27, Sec. 16. (SB 164) Effective June 29, 2026.)
  25. 1728.2.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    A first-time home health agency or license applicant can get only a provisional license at first, and that provisional license ends after six months.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1728.2. (a) If a home health agency or an applicant for a license has not been previously licensed, the state department may only issue a provisional license to the agency as provided in this section. (b) A provisional license to operate a home health agency shall terminate six months from the date of issuance. (c) Within 30 days prior to the termination of a provisional license, the state department shall give the agency a full and complete inspection, and, if the agency meets all applicable requirements for licensure, a regular license shall be issued. If the home health agency does not meet the requirements for licensure but has made substantial progress towards meeting the requirements, as determined by the state department, the initial provisional license shall be renewed for six months. (d) If the state department determines that there has not been substantial progress towards meeting licensure requirements at the time of the first full inspection provided by this section, or, if the state department determines upon its inspection made within 30 days of the termination of a renewed provisional license that there is lack of full compliance with the requirements, no further license shall be issued. (e) If an applicant for a provisional license to operate a home health agency has been denied provisional licensing by the state department, the applicant may contest the denial by filing a request for a hearing pursuant to Section 100171. (f) The department shall not apply less stringent criteria when granting a provisional license pursuant to this section than it applies when granting a permanent license. (Amended by Stats. 1997, Ch. 220, Sec. 22. Effective August 4, 1997.)
  26. 1728.3.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    The department may issue a provisional license to a home health agency if specified conditions are met.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1728.3. (a) Notwithstanding Sections 1728.1 and 1732, the department may issue a provisional license to a home health agency if: (1) The home health agency demonstrates an unmet need for home health services in the home health agency’s geographic service area. The department may consider and request additional supporting evidence to determine whether there is an unmet need in the home health agency’s geographic service area. (2) The agency and the applicant for licensure substantially meet the standards specified by this chapter and regulations adopted pursuant to this chapter. (3) No violation of this chapter or regulations adopted under this chapter exists in the agency which jeopardizes the health or safety of patients. (4) The applicant has adopted a plan for correction of any existing violations which is satisfactory to the department. (b) A provisional license issued under this section shall expire not later than six months after the date of issuance, or at an earlier time as determined by the department at the time of issuance, and shall not be renewed. (c) The department shall not apply less stringent criteria when granting a provisional license pursuant to this section than it applies when granting a permanent license. (Amended by Stats. 2026, Ch. 27, Sec. 17. (SB 164) Effective June 29, 2026.)
  27. 1728.7.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    The department must issue a home health agency license if the applicant applies and meets the listed requirements; the department may also survey accredited agencies and request more evidence about unmet need.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1728.7. (a) Notwithstanding any other provision of this chapter, the department shall issue a license to a home health agency that applies to the department for a home health agency license and meets all of the following requirements: (1) Is accredited as a home health agency by an entity approved by the federal Centers for Medicare and Medicaid Services as a national accreditation organization, and the national accreditation organization forwards to the department copies of all initial and subsequent survey and other accreditation reports or findings. (2) Files an application with fees pursuant to this chapter. (3) Demonstrates an unmet need for home health services in the home health agency’s geographic service area. The department may consider and request additional supporting evidence to determine whether there is an unmet need in the home health agency’s geographic service area. (4) Meets any other additional licensure requirements of, or regulations adopted pursuant to, this chapter that the department identifies, after consulting with the national accreditation organizations, as more stringent than the accreditation requirements of the national accreditation organizations. (b) The department may conduct a survey of an accredited home health agency to ensure the accreditation requirements are met. These surveys shall be conducted using a selective sample basis. (c) The department may conduct a survey of an accredited home health agency to investigate complaints against an accredited home health agency for substantial noncompliance, as determined by the department, with these accreditation standards. (d) Notwithstanding subdivisions (a), (b), and (c), the department shall retain its full range of authority over accredited home health agencies to ensure the licensure and accreditation requirements are met. This authority shall include the entire scope of enforcement sanctions and options available for unaccredited home health agencies. (Amended by Stats. 2026, Ch. 27, Sec. 18. (SB 164) Effective June 29, 2026.)
  28. 1728.75.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    A home health agency license cannot be transferred, and the department generally may not approve a change of ownership within the first five years after the license was issued.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1728.75. (a) A license issued by the department pursuant to this chapter shall not be transferable. (b) The department shall not approve a change of ownership of a licensed home health agency within five years of the date a license was initially issued to the licensee. Only the person, political subdivision of the state, or other governmental agency issued a license for the purposes of operating a home health agency may use that license during that initial five-year period. (c) Notwithstanding subdivision (b), the department may make an exception for extenuating circumstances and approve a change of ownership within the initial five-year period if the home health agency demonstrates and provides evidence to the department of either of the following: (1) The need to ensure continuity of care for existing patients of the home health agency. (2) The home health agency is suffering financial hardship and if it were to close, there would be an unmet need for home health services in the home health agency’s geographic service area. (Added by Stats. 2026, Ch. 27, Sec. 19. (SB 164) Effective June 29, 2026.)
  29. 1728.8.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    The department must process home health agency applications and related certification steps within set timelines, and must notify applicants if it cannot meet those timelines.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1728.8. (a) It is the intent of the Legislature to ensure that the department licenses and certifies home health agencies in a reasonable and timely manner to ensure that Californians have access to critical home- and community-based services. Home health agencies have significant startup costs and regulatory requirements, which make home health agencies vulnerable to delays in licensing and certification surveys. Home health agencies help the state protect against the unnecessary institutionalization of individuals and are integral in ensuring the state’s compliance with the United States Supreme Court decision in Olmstead v. L.C. (1999) 527 U.S. 581, which requires public agencies to provide services in the most integrated setting appropriate to the needs of qualified individuals with disabilities. (b) No later than 90 calendar days after the department receives an initial and complete parent, branch, or change of ownership home health agency application, the department shall make every effort to complete the application paperwork and conduct a licensure survey, if necessary, to inspect the agency and evaluate the agency’s compliance with state requirements. The department shall forward its recommendation, if necessary, and all other information, to the federal Centers for Medicare and Medicaid Services within the same 90 calendar days. (c) (1) For those applicants seeking to receive reimbursement under the Medicare or Medi-Cal programs, the department shall make every effort to complete the initial application paperwork and conduct an unannounced certification survey, if necessary, no later than 90 calendar days after the department conducts the licensure survey required by subdivision (a), or no later than 90 days after the department’s receipt of a letter from the home health agency notifying the department of its readiness for the certification survey from a parent or branch agency. (2) No later than 30 calendar days after the certification survey, the department shall forward the results of its licensure and certification surveys and all other information necessary for certification to the federal Centers for Medicare and Medicaid Services. (d) This section shall apply to all licensing and certification entities, including a county that contracts with the state to provide licensing and certification services on behalf of the state. (e) If the department is unable to meet the 90-day timelines for licensing or certification required pursuant to this section, the department shall notify the applicant in writing of the delay and the anticipated date of the survey. (f) This section shall become operative on July 1, 2008. (Amended by Stats. 2008, Ch. 179, Sec. 144. Effective January 1, 2009.)
  30. 1728.9.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    The department must not issue new home health agency licenses or add branch offices, except as provided in Section 1728.95, during the stated temporary period.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1728.9. Notwithstanding any other law and except as provided in Section 1728.95, beginning on the effective date of the act that added this section and until no later than 90 days following the effective date of the revised regulations adopted pursuant to Section 1734, the department shall not issue a new license to operate a home health agency or add a branch office to an existing license pursuant to this chapter. (Added by Stats. 2026, Ch. 27, Sec. 20. (SB 164) Effective June 29, 2026.)
  31. 1728.95.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    The department may grant a moratorium exception for certain home health agency licensing requests if it makes a written finding of unmet need, and it may issue a new license during the moratorium only under such an exception.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1728.95. (a) The department may grant an exception to the moratorium imposed by Section 1728.9 upon making a written finding that an applicant for a new license to operate a home health agency or add a branch office to an existing license, or with a license application pending on the effective date of the act that added this section, has demonstrated an unmet need for home health services in the area where the applicant proposes to operate based on the concentration of all existing home health services in that area. (b) The department shall only issue a new license during the moratorium pursuant to an exception allowed under this section in accordance with this chapter. (Added by Stats. 2026, Ch. 27, Sec. 21. (SB 164) Effective June 29, 2026.)
  32. 1729.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    Most license applications under this chapter must include a Licensing and Certification Program fee, except applications by specified California government entities.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1729. Each application for a license under this chapter, except applications by the State of California or any state department, authority, bureau, commission, or officer, shall be accompanied by a Licensing and Certification Program fee for the headquarters or main office of the agency and for each additional branch office maintained and operated by the agency in the amount set in accordance with Section 1266. The department shall work with the home health agency industry association and providers to restructure home health agency licensing and certification program fees in a budget neutral capacity for the 2008–09 fiscal year. (Amended by Stats. 2007, Ch. 620, Sec. 2. Effective January 1, 2008.)
  33. 1730.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    Home health agency licenses expire after 12 months and must be renewed with the state department, with the fee, at least 30 days before expiration.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1730. (a) Each license issued under this chapter shall expire 12 months from the date of its issuance. Application for renewal of license accompanied by the necessary fee shall be filed with the state department annually, not less than 30 days prior to expiration date. Failure to make a timely renewal shall result in expiration of the license. (b) (1) At least 45 days prior to the expiration of a license issued pursuant to this chapter, the department shall mail an application for renewal to the licensee. (2) Any application for a license renewal shall be submitted with the necessary fee in accordance with subdivision (a). A license shall be deemed renewed upon payment of the necessary fee, commencing from the license’s expiration date. If the requirements of this section are met, the department shall issue a license to the agency and its branches by the expiration date of the license to ensure the provider remains in good standing. The agency’s license shall be mailed within 30 calendar days after the date the department receives the renewal fee. (Amended by Stats. 2007, Ch. 620, Sec. 3. Effective January 1, 2008.)
  34. 1731.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    After September 30, 1966, a home health agency may not be operated, conducted, or maintained without a license, unless it is a hospital approved by the state department.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1731. No person, public or private organization, political subdivision of the state, or other governmental agency within the state, shall continue to operate, conduct, or maintain an existing home health agency after September 30, 1966, without having applied for and obtained a license as provided in this chapter or in the case of a hospital as defined in Section 1401 of this division, having been approved by the state department to establish, conduct, or maintain a home health agency. (Added by Stats. 1966, 1st Ex. Sess., Ch. 79.)
  35. 1732.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    The state department must issue a license when an applicant files the application and fully complies with this chapter and the department’s rules. Hospitals already licensed under Chapter 2.3 are exempt from needing a license, but a hospital that wants to establish or run a home health agency must comply with this chapter and get department approval.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1732. Upon filing of the application for a license provided for in, and upon full compliance with, the provisions of this chapter and the rules and regulations promulgated under this chapter by the state department, the state department shall issue to the applicant the license applied for. However, any hospital, as defined in Section 1401 which is licensed under the provisions of Chapter 2.3 (commencing with Section 1400) is not required to obtain a license. In order for a hospital to establish, conduct, or maintain a home health agency, it shall comply with all the provisions of this chapter and be approved by the state department. The approval shall be deemed to be licensure and shall not extend past midnight on the 31st day of December of each calendar year. The fee set forth in Section 1729 shall be paid before approval is granted. Approval may be denied or withdrawn by the state department on the same grounds as provided for denial, suspension, or revocation of a home health agency license. The state department may take the same action against any approved hospital home health agency as it may against any licensed home health agency under this chapter. (Amended by Stats. 1981, Ch. 714.)
  36. 1733.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    Licensed home health agencies must be inspected at least yearly by the state department, unless they are certified for Medicare or Medicaid participation.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1733. Every home health agency for which a license has been issued, except a facility that is certified to participate either in the Medicare program under Title XVIII (42 U.S.C. Sec. 1395 et seq.) of the federal Social Security Act, or the medicaid program under Title XIX (42 U.S.C. Sec. 1396 et seq.) of the federal Social Security Act, or both, shall be periodically inspected by a duly authorized representative of the state department no less than once a year. Reports of each such inspection shall be prepared by the representative conducting it upon forms prepared and furnished by the state department and filed with the state department. Such inspection shall be for the purpose of ensuring that the provisions of this chapter and the rules and regulations of the department are being followed. The state department is directed to ensure by such inspection that the home health agency is providing high quality care to its patients in accordance with the orders of the patient’s physician. (Amended by Stats. 1992, Ch. 709, Sec. 14. Effective September 15, 1992.)
  37. 1734.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    The department must adopt and update home health agency rules, consult specified stakeholders when changing them, and set rules for legend devices, travel time, management involvement, and office space.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1734. (a) The department shall adopt, and may thereafter modify, amend, or rescind, reasonable rules and regulations to carry out the purposes of this chapter, including the prohibition of specific conduct, determined by the department to be inimical to the public health, morals, welfare, or safety of the people of the State of California in the maintenance and operation of the home health agency for which a license is issued. In adopting, modifying, amending, or rescinding the rules and regulations, the department shall consult with and receive recommendations from among other physicians and surgeons, pharmacists, public health nurses, and persons representing hospitals, nonprofit home health agencies, proprietary home health agencies and counties whose health department or hospital has a home health agency. The department shall also comply with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (b) The department shall adopt rules and regulations regarding the purchase, storage, furnishing, and transportation of legend devices for a patient of a home health agency. As used in this subdivision, “legend devices” means any device that bears the label “Caution: federal law restricts this device to sale by or on the order of a ____” or words of similar meaning. (c) The department shall update existing home health agency regulations as necessary and adopt regulations that include, but are not limited to, all of the following: (1) Clarify the maximum time and distance that home health agency staff may travel to reach patients, taking into consideration typical traffic conditions and whether the home health agency is serving patients in rural or urban areas. (2) Establish a limit for the number of home health agencies that home health agency management personnel can be involved with concurrently. (3) Establish specific requirements for home health agency office space. (Amended by Stats. 2026, Ch. 27, Sec. 22. (SB 164) Effective June 29, 2026.)
  38. 1734.5.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    The department may grant exemptions from this chapter to entities contracting with it under the PACE program, subject to Section 100315.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1734.5. (a) The department may grant to entities contracting with the department under the PACE program, as defined in Chapter 8.75 (commencing with Section 14591) of Part 3 of Division 9 of the Welfare and Institutions Code, exemptions from the provisions contained in this chapter in accordance with the requirements of Section 100315. (b) This section shall become inoperative if, and on the date that, subdivision (b) of Section 1738 becomes operative, and, as of January 1 immediately following that date, this section is repealed. (Amended by Stats. 2019, Ch. 821, Sec. 6. (AB 1128) Effective January 1, 2020.)
  39. 1735.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    The department may deny, suspend, or revoke a home health agency license or application for the listed grounds.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1735. The department may deny any application for, or suspend or revoke, any license issued under the provisions of this chapter upon any of the following grounds and in the manner hereinafter provided: (a) Violation by the licensee of any of the provisions of this chapter or of any other law of this state or of the rules and regulations promulgated under this chapter. (b) Aiding, abetting or permitting the commission of any illegal act. (c) Misrepresentation of a material fact in the application for a license. (d) Prior termination from the federal Medicare Program or the Medi-Cal program due to noncompliance, or licensure suspension or revocation, of a home health agency owned, operated, or managed by the applicant or licensee. (e) Demonstration of a pattern and practice of violations of state or federal standards during the last three years of a home health agency owned, operated, or managed by the applicant or licensee. (f) The applicant or licensee is on the List of Excluded Individuals/Entities of the United States Department of Health and Human Services Office of Inspector General. (g) Failure by home health agency management personnel to cooperate with the department for the purposes of conducting an inspection or complaint investigation. (h) Failure by a home health agency to report a change in owner, home health agency management personnel, service area, or location. (Amended by Stats. 2026, Ch. 27, Sec. 23. (SB 164) Effective June 29, 2026.)
  40. 1736.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    License denial, suspension, revocation, and approval withdrawal proceedings must follow Section 100171, and the state department keeps disciplinary authority even if a license is suspended, expired, forfeited, canceled, or surrendered.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1736. Proceedings for the denial, suspension or revocation of licenses or denial or withdrawal of approval under this chapter shall be conducted in accordance with Section 100171. The suspension, expiration, or forfeiture by operation of law of a license issued by the state department; its suspension, forfeiture, or cancellation by order of the state department or by order of a court of law; or its surrender without the written consent of the state department, shall not deprive the state department of its authority to institute or continue a disciplinary proceeding against the licensee upon any ground provided by law or to enter an order suspending or revoking the license or otherwise taking disciplinary action against the licensee on any such ground. (Amended by Stats. 1997, Ch. 220, Sec. 23. Effective August 4, 1997.)
  41. 1736.1.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    Applicants for certified home health aide certification must meet training and clearance requirements. The department must also require an identification number for applications and renewals, and it may restrict use or release of that information only as stated. The department may not require citizenship or immigration status or deny licensure on that basis.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1736.1. (a) An applicant for certification as a certified home health aide shall comply with each of the following requirements: (1) Have successfully completed a training program with a minimum of 75 hours or an equivalent competency evaluation program approved by the department pursuant to applicable federal and state regulations. (2) Obtain a criminal record clearance pursuant to Section 1736.6. (b) (1) No later than July 1, 2019, the department shall require the applicant to provide either the individual taxpayer identification number or social security number for purposes of applying for a certificate or the renewal of a certificate. (2) If the department utilizes a national examination to issue a certificate, and if a reciprocity agreement or comity exists between the State of California and the state requesting release of the individual taxpayer identification number or social security number, any deputy, agent, clerk, officer, or employee of the department may release an individual’s taxpayer identification number or social security number to an examination or certifying entity, only for the purpose of verification of certification or examination status. (3) The individual taxpayer identification or the social security number shall serve to establish the identification of persons affected by state tax laws and for purposes of establishing compliance with subsection (a) of Section 666 of Title 42 of the United States Code, Section 60.15 of Title 45 of the Code of Federal Regulations, Section 17520 of the Family Code, and Section 11105 of the Penal Code, and to that end, the information furnished pursuant to this section shall be used exclusively for those purposes. (4) The department shall not do either of the following: (A) Require an applicant to disclose citizenship status or immigration status for purposes of the application or renewal of a certificate. (B) Deny licensure to an otherwise qualified and eligible applicant based solely on his or her citizenship status or immigration status. (c) Any person who violates this article is guilty of a misdemeanor and, upon a conviction thereof, shall be punished by imprisonment in the county jail for not more than 180 days, or by a fine of not less than twenty dollars ($20) nor more than one thousand dollars ($1,000), or by both that fine and imprisonment. (Amended by Stats. 2018, Ch. 838, Sec. 9. (SB 695) Effective January 1, 2019.)
  42. 1736.15.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    People who provide required home health aide training must be either qualified registered nurses or licensed vocational nurses under RN supervision. They do not need a teaching credential for that instruction.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1736.15. (a) A person who provides classroom and supervised practical training for a home health aide, as mandated in Section 1736.1, shall be either of the following: (1) A registered nurse who possesses a minimum of two years nursing experience, at least one year of which is in home health care. (2) A licensed vocational nurse under the general supervision of a registered nurse who meets the requirements of paragraph (1). (b) Notwithstanding any other law, a person described in subdivision (a) shall not be required to hold a teaching credential to provide instruction as part of a home health aide certification program, as described in Section 1736.1. (Added by Stats. 2025, Ch. 400, Sec. 1. (AB 1495) Effective January 1, 2026.)
  43. 1736.16.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    Online or distance learning home health aide training programs must meet listed operational and reporting requirements, and the department may access the program to verify compliance.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1736.16. (a) An online or distance learning training program for home health aide certification or in-service training shall comply with all of the following requirements: (1) Provide online instruction in which the trainee and their approved instructor are online at the same or similar times and allows them to use real-time collaborative software that combines audio, video, file sharing, or any other forms of approved interaction and communication. (2) Require the use of a personal identification number or personal identification information that confirms the identity of a trainee or instructor, including, but not limited to, having a trainee sign an affidavit attesting under penalty of perjury as to their identity while completing the program. (3) Provide safeguards to protect personal information. (4) Include policies and procedures to ensure that instructors are accessible to trainees outside of the normal instruction times. (5) Include policies and procedures for equipment failures, student absences, and completing assignments past original deadlines. (6) Provide a clear explanation on its internet website of all technology requirements to participate in and complete the program. (7) Provide the department with statistics about the performance of trainees in the program, including, but not limited to, exam pass rate and the rate at which trainees repeat each module of the program, and any other information requested by the department regarding trainee participation in and completion of the program. (b) In addition to the requirements set forth in subdivision (a), an online or distance learning training program or in-service training for certified home health aides shall meet the same standards as a traditional, classroom-based program, and comply with any other standard established by the department for online or distance learning home health aide training programs. Notwithstanding any other law, the department may, without taking any regulatory actions pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, implement, interpret, or make specific this section by means of an All Facilities Letter (AFL) or similar instruction. (c) As a condition of approval by the department, an online or distance learning training program or in-service training for home health aide certification shall provide the department with access rights to the program for the purposes of verifying that the program complies with all requirements and allowing the department to monitor online or distance learning sessions. (Added by Stats. 2025, Ch. 400, Sec. 2. (AB 1495) Effective January 1, 2026.)
  44. 1736.2.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    Home health aide certificates must be renewed every two years, with clearance, training, notice, and filing requirements.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1736.2. (a) Certificates issued for certified home health aides shall be renewed every two years and renewal shall be conditioned on the certificate holder obtaining a criminal record clearance pursuant to Section 1736.6. (b) Certificates issued to certified home health aides shall expire on the certificate holder’s birthday. (c) To renew an unexpired certificate, the certificate holder shall, on or before the certificate expiration date, apply for renewal on a form provided by the state department and submit evidence of completing at least 12 hours of in-service training during each 12-month period of the certification. (d) The department shall give written notice to a certificate holder 90 days in advance of the renewal date and 90 days in advance of the expiration of the fourth year that an application has not been submitted, and shall give written notice informing the certificate holder in general terms of the provisions governing certificate renewal for certified home health aides. Nonreceipt of the renewal notice does not relieve the certificate holder of the obligation to make a timely renewal. Failure to make a timely renewal shall result in expiration of the certificate. (e) Except as otherwise provided in this article, an expired certificate may be renewed at any time within four years after its expiration on the filing of an application for renewal on a form prescribed by the department. Renewal under this article shall be effective on the date on which the application is filed. If renewed, the certificate shall continue in effect until the date provided for in this section, when it shall expire if it is not again renewed. (f) If a certified home health aide applies for renewal more than 30 days after expiration but within four years after the expiration, and demonstrates in writing to the department’s satisfaction why the renewal application was late, then the state department shall issue a renewal. A suspended certificate is subject to expiration and shall be renewed as provided in this article, but this renewal does not entitle the certificate holder, while the certificate remains suspended, and until it is reinstated, to engage in the certified activity, or in any other activity or conduct in violation of the order or judgment by which the certificate was suspended. (g) A revoked certificate is subject to expiration as provided in this section, but it cannot be renewed. (h) A certificate that is not renewed within four years after its expiration cannot be renewed, restored, reissued, or reinstated except upon completion of a certification training program unless deemed otherwise by the state department if both of the following conditions are met: (1) No fact, circumstance, or condition exists that, if the certificate were issued, would justify its revocation or suspension. (2) The person takes and passes any examination that may be required of an applicant for a new certificate at that time, that shall be given by an approved provider of a certification training program. (i) Certificate holders shall notify the department within 60 days of any change of address. Any notice sent by the department shall be effective if mailed to the current address filed with the department. (j) Certificate holders that have been certified as both nurse assistants pursuant to Article 9 (commencing with Section 1337) of Chapter 2 of Division 2 and home health aides pursuant to this chapter shall renew their certificates at the same time on one application. (Amended by Stats. 2025, Ch. 400, Sec. 3. (AB 1495) Effective January 1, 2026.)
  45. 1736.4.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    The state department must investigate complaints about certified home health aides, keep a registry of their certification and disciplinary status, and certain home health agencies and hospice providers must check that registry before hiring or placing those aides in direct contact with patients.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1736.4. (a) The state department shall investigate complaints concerning misconduct by certified home health aides and may take disciplinary action pursuant to Section 1736.5. (b) The department shall maintain a registry that includes the certification status of all certified home health aides, including the status of any proposed or completed disciplinary actions. (c) Home health agencies, as defined in subdivision (a) of Section 1727, and hospice providers, as defined in subdivision (b) of Section 1745, that hire certified home health aides after July 1, 1997, shall consult the state department’s registry prior to hiring these individuals or placing them in direct contact with patients. (Added by Stats. 1994, Ch. 1246, Sec. 13. Effective January 1, 1995.)
  46. 1736.5.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    The department must deny, suspend, or revoke a home health aide training application or certificate for certain convictions, unless a listed rehabilitation or disclosure exception applies.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1736.5. (a) The department shall deny a training application and deny, suspend, or revoke a certificate issued under this article if the applicant or certificate holder has been convicted of a violation or attempted violation of any of the following Penal Code provisions: Section 187, subdivision (a) of Section 192, Section 203, 205, 206, 207, 209, 210, 210.5, 211, 220, 222, 243.4, 245, 261, 262, or 264.1, Sections 265 to 267, inclusive, Section 273a, 273d, 273.5, or 285, subdivisions (c), (d), (f), and (g) of Section 286, Section 288, subdivisions (c), (d), (f), and (g) of Section 287 or former Section 288a, Section 288.5, 289, 289.5, 368, 451, 459, 470, 475, 484, or 484b, Sections 484d to 484j, inclusive, Section 487, subdivision (a) of Section 487a, or Section 488, 496, 503, 518, or 666, unless any of the following applies: (1) The person was convicted of a felony and has obtained a certificate of rehabilitation under Chapter 3.5 (commencing with Section 4852.01) of Title 6 of Part 3 of the Penal Code and the information or accusation against him or her has been dismissed pursuant to Section 1203.4 of the Penal Code. (2) The person was convicted of a misdemeanor and the information or accusation against him or her has been dismissed pursuant to Section 1203.4 or 1203.4a of the Penal Code. (3) The certificate holder was convicted of a felony or a misdemeanor, but has previously disclosed the fact of each conviction to the department, and the department has made a determination in accordance with law that the conviction does not disqualify the applicant from certification. (b) An application or certificate shall be denied, suspended, or revoked upon conviction in another state of an offense that, if committed or attempted in this state, would have been punishable as one or more of the offenses set forth in subdivision (a), unless evidence of rehabilitation comparable to the certificate of rehabilitation or dismissal of a misdemeanor set forth in paragraph (1) or (2) of subdivision (a) is provided. (c) (1) The department may deny an application or deny, suspend, or revoke a certificate issued under this article for any of the following: (A) Unprofessional conduct, including, but not limited to, incompetence, gross negligence, physical, mental, or verbal abuse of patients, or misappropriation of property of patients or others. (B) Conviction of a crime substantially related to the qualifications, functions, and duties of a home health aide, irrespective of a subsequent order under Section 1203.4, 1203.4a, or 4852.13 of the Penal Code, where the department determines that the applicant or certificate holder has not adequately demonstrated that he or she has been rehabilitated and will present a threat to the health, safety, or welfare of patients. (C) Conviction for, or use of, any controlled substance as defined in Division 10 (commencing with Section 11000) of this code, or any dangerous drug, as defined in Section 4022 of the Business and Professions Code, or alcoholic beverages, to an extent or in a manner dangerous or injurious to the home health aide, any other person, or the public, to the extent that this use would impair the ability to conduct, with safety to the public, the practice authorized by a certificate. (D) Procuring a home health aide certificate by fraud, misrepresentation, or mistake. (E) Making or giving any false statement or information in conjunction with the application for issuance of a home health aide certificate or training and examination application. (F) Impersonating any applicant, or acting as proxy for an applicant, in any examination required under this article for the issuance of a certificate. (G) Impersonating another home health aide, a licensed vocational nurse, or a registered nurse, or permitting or allowing another person to use a certificate for the purpose of providing nursing services. (H) Violating or attempting to violate, directly or indirectly, or assisting in or abetting the violation of, or conspiring to violate any provision or term of, this article. (2) In determining whether or not to deny an application or deny, suspend, or revoke a certificate issued under this article pursuant to this subdivision, the department shall take into consideration the following factors as evidence of good character and rehabilitation: (A) The nature and seriousness of the offense under consideration and its relationship to the person’s employment duties and responsibilities. (B) Activities since conviction, including employment or participation in therapy or education, that would indicate changed behavior. (C) The time that has elapsed since the commission of the conduct or offense referred to in subparagraph (A) or (B) and the number of offenses. (D) The extent to which the person has complied with any terms of parole, probation, restitution, or any other sanction lawfully imposed against the person. (E) Any rehabilitation evidence, including character references, submitted by the person. (F) Employment history and current employer recommendations. (G) Circumstances surrounding the commission of the offense that would demonstrate the unlikelihood of repetition. (H) Granting by the Governor of a full and unconditional pardon. (I) A certificate of rehabilitation from a superior court. (d) When the department determines that a certificate shall be suspended, the department shall specify the period of actual suspension. The department may determine that the suspension shall be stayed, placing the certificate holder on probation with specified conditions for a period not to exceed two years. When the department determines that probation is the appropriate action, the certificate holder shall be notified that in lieu of the department proceeding with a formal action to suspend the certification and in lieu of an appeal pursuant to subdivision (g), the certificate holder may request to enter into a diversion program agreement. A diversion program agreement shall specify terms and conditions related to matters including, but not limited to, work performance, rehabilitation, training, counseling, progress reports, and treatment programs. If a certificate holder successfully completes a diversion program, no action shall be taken upon the allegations that were the basis for the diversion agreement. Upon failure of the certificate holder to comply with the terms and conditions of an agreement, the department may proceed with a formal action to suspend or revoke the certification. (e) A plea or verdict of guilty, or a conviction following a plea of nolo contendere, shall be deemed a conviction within the meaning of this article. The department may deny an application or deny, suspend, or revoke a certification based on a conviction as provided in this article when the judgment of conviction is entered or when an order granting probation is made suspending the imposition of sentence. (f) Upon determination to deny an application or deny, revoke, or suspend a certificate, the department shall notify the applicant or certificate holder in writing by certified mail of both of the following: (1) The reasons for the determination. (2) The applicant’s or certificate holder’s right to appeal the determination if the determination was made under subdivision (c). (g) (1) Upon written notification that the department has determined that an application shall be denied or a certificate shall be denied, suspended, or revoked under subdivision (c), the applicant or certificate holder may request an administrative hearing by submitting a written request to the department within 20 business days of receipt of the written notification. Upon receipt of a written request, the department shall hold an administrative hearing pursuant to the procedures specified in Section 100171, except where those procedures are inconsistent with this section. (2) A hearing under this section shall be conducted by a hearing officer or administrative law judge designated by the director at a location, other than the work facility, that is convenient to the applicant or certificate holder. The hearing shall be audio or video recorded and a written decision shall be sent by certified mail to the applicant or certificate holder within 30 calendar days of the hearing. Except as specified in subdivision (h), the effective date of an action to revoke or suspend a certificate shall be specified in the written decision, or if no administrative hearing is timely requested, the effective date shall be 21 business days from written notification of the department’s determination to revoke or suspend. (h) The department may revoke or suspend a certificate prior to any hearing when immediate action is necessary in the judgment of the director to protect the public welfare. Notice of this action, including a statement of the necessity of immediate action to protect the public welfare, shall be sent in accordance with subdivision (f). If the certificate holder requests an administrative hearing pursuant to subdivision (g), the department shall hold the administrative hearing as soon as possible but not later than 30 calendar days from receipt of the request for a hearing. A written hearing decision upholding or setting aside the action shall be sent by certified mail to the certificate holder within 30 calendar days of the hearing. (i) Upon the expiration of the term of suspension, the certificate holder shall be reinstated by the department and shall be entitled to resume practice unless it is established to the satisfaction of the department that the person has practiced as a home health aide in California during the term of suspension. In this event, the department shall revoke the person’s certificate. (j) Upon a determination to deny an application or deny, revoke, or suspend a certificate, the department shall notify the employer of the applicant or certificate holder in writing of that determination, and whether the determination is final, or whether a hearing is pending relating to this determination. If a licensee or facility is required to deny employment or terminate employment of the employee based upon notice from the state that the employee is determined to be unsuitable for employment under this section, the licensee or facility shall not incur criminal, civil, unemployment insurance, workers’ compensation, or administrative liability as a result of that denial or termination. (Amended by Stats. 2018, Ch. 423, Sec. 34. (SB 1494) Effective January 1, 2019.)
  47. 1736.6.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    This section requires criminal record clearances and fingerprint-based background checks for home health aides and related applicants, limits access for certain newly hired staff until clearance is complete, and lets the department issue guidance letters when the process changes.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1736.6. (a) (1) A criminal record clearance shall be conducted by the department for all home health aides by electronically submitting fingerprint images and related information to the Department of Justice. The Licensing and Certification Program shall issue an All Facilities Letter (AFL) to facility licensees when it determines that both of the following criteria have been met for a period of 30 days: (A) The program receives, within three business days, 95 percent of its total responses indicating no evidence of recorded criminal information from the Department of Justice. (B) The program processes 95 percent of its total responses requiring disqualification with notices mailed to the individual in accordance with subdivision (a) of Section 1736.5, no later than 45 days after the date that the report is received from the Department of Justice. (2) After the AFL is issued, facilities must not allow newly hired administrators, program directors, and fiscal officers to have direct contact with clients or residents of the facility prior to completion of the criminal record clearance. A criminal record clearance shall be complete when the department has obtained the person’s criminal offender record information search response from the Department of Justice and has determined that the person is not disqualified from engaging in the activity for which clearance is required. Applicants shall be responsible for any costs associated with capturing or transmitting the fingerprint images and related information. The fee to cover the processing costs of the Department of Justice, not including the costs associated with capturing or transmitting the fingerprint images and related information, shall not exceed thirty-two dollars ($32) per submission. (3) An applicant or certificate holder who may be disqualified on the basis of a criminal conviction shall provide the department with a certified copy of the judgment of each conviction. In addition, the individual may, during a period of two years after the department receives the criminal record report, provide the department with evidence of good character and rehabilitation in accordance with subdivision (a) of Section 1736.5. Upon receipt of a new application for certification of the individual, the department may receive and consider the evidence during the two-year period without requiring additional fingerprint imaging to clear the individual. (4) The department’s Licensing and Certification Program shall explore and implement methods for maximizing its efficiency in processing criminal record clearances within the requirements of law, including a streamlined clearance process for persons that have been disqualified in the basis of criminal convictions that do not require automatic denial pursuant to subdivision (a) of Section 1736.5. (b) Upon enrollment in a training program for home health aide certification, and prior to direct contact with residents, a candidate for training shall submit a training and examination application to the department and submit electronic fingerprint images and related information to receive a criminal record review through the Department of Justice. This criminal record clearance shall be completed prior to direct contact with residents. Submission of the fingerprint images to the Federal Bureau of Investigation, through the Department of Justice, shall be at the discretion of the state department. (c) A criminal record clearance, consistent with this section shall be implemented for home health aide applicants beginning July 1, 1998, and phased in for all certified home health aides by June 30, 2000. (d) The department shall develop procedures to ensure that any licensee, direct care staff, or certificate holder for whom a criminal record has been obtained pursuant to this section or Section 1265.6 or 1338.5 shall not be required to obtain multiple criminal record clearances. (e) An applicant and any other person specified in this subdivision, as part of the background clearance process, shall provide information as to whether or not the person has any prior criminal convictions, has had any arrests within the past 12-month period, or has any active arrests, and shall certify that, to the best of his or her knowledge, the information provided is true. This requirement is not intended to duplicate existing requirements for individuals who are required to submit fingerprint images as part of a criminal background clearance process. Every applicant shall provide information on any prior administrative action taken against him or her by any federal, state, or local government agency and shall certify that, to the best of his or her knowledge, the information provided is true. An applicant or other person required to provide information pursuant to this section that knowingly or willfully makes false statements, representations, or omissions may be subject to administrative action, including, but not limited to, denial of his or her application or exemption or revocation of any exemption previously granted. (f) If, at any time, the department determines that it does not meet the standards specified in subparagraphs (A) and (B) of paragraph (1) of subdivision (a) for a period of 90 consecutive days, the requirements in subdivision (a) shall be inoperative until the department determines that that it has met those standards for a period of 90 consecutive days. (g) During any period of time in which the requirements of subdivision (a) are inoperative, home health agencies may allow newly hired home health aides to have direct contact with patients after those persons have submitted live-scan fingerprint images to the Department of Justice, and the department shall issue an AFL advising facilities of this change in the statutory requirement. (h) Notwithstanding any other provision of law, the department may provide an individual with a copy of his or her state or federal level criminal offender record information search response as provided to that department by the Department of Justice if the department has denied a criminal background clearance based on this information and the individual makes a written request to the department for a copy specifying an address to which it is to be sent. The state or federal level criminal offender record information search response shall not be modified or altered from its form or content as provided by the Department of Justice and shall be provided to the address specified by the individual in his or her written request. The department shall retain a copy of the individual’s written request and the response and date provided. (Amended by Stats. 2006, Ch. 902, Sec. 15. Effective January 1, 2007.)
  48. 1736.7.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    The state department may collect and keep employment information for home health aides, must notify the licensee and applicant of criminal convictions within five working days after receiving certain records, and must study and report on registry technology needs.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1736.7. (a) The state department may request and maintain employment information for home health aides. (b) Within five working days of receipt of a criminal record or information from the Department of Justice pursuant to Section 1736.6, the state department shall notify the licensee and applicant of any criminal convictions. (c) The state department shall conduct a feasibility study to assess the additional technology requirements necessary to include previous and current employment information on its registry and to make that information available to potential employers. The state department shall report to the Legislature by July 1, 2000, as to the results of the study. (Added by Stats. 1998, Ch. 716, Sec. 2. Effective January 1, 1999.)
  49. 1737.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    A license revoked under this chapter may be reinstated under Government Code Section 11522.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1737. Any license revoked pursuant to this chapter may be reinstated pursuant to the provisions of Section 11522 of the Government Code. (Added by Stats. 1966, 1st Ex. Sess., Ch. 79.)
  50. 1737.5.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    A licensee may surrender a license for suspension or cancellation if the state department approves, and the state department may reinstate a suspended or canceled license after receiving an application showing compliance with Section 1728.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1737.5. Any licensee may, with the approval of the state department, surrender his license for suspension or cancellation by the state department. Any license suspended or canceled pursuant to this section may be reinstated by the state department on receipt of an application showing compliance with the requirements of Section 1728. (Added by Stats. 1966, 1st Ex. Sess., Ch. 79.)
  51. 1738.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    This section exempts certain home health agencies from the chapter, limits when PACE-only agencies may serve applicants, and requires licensure if they serve other people.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1738. This chapter does not apply to either of the following: (a) A home health agency conducted by and for the adherents of any well-recognized church or religious denomination for the purpose of providing facilities for the care or treatment of the sick who depend upon prayer or spiritual means for healing in the practice of the religion of that church or denomination. (b) A home health agency that is part of a Program of All-Inclusive Care for the Elderly (PACE) organization, as defined in Section 460.6 of Title 42 of the Code of Federal Regulations and approved by the State Department of Health Care Services pursuant to Section 14592 of the Welfare and Institutions Code, that exclusively serves PACE participants, as defined in Section 460.6 of Title 42 of the Code of Federal Regulations. (1) A home health agency approved by the State Department of Health Care Services pursuant to Section 14592 of the Welfare and Institutions Code to operate exclusively as part of a PACE organization may provide services to individuals who are being assessed for eligibility to enroll in the PACE program for not more than 60 calendar days after an individual submits an application for enrollment. (2) If the State Department of Health Care Services determines that a home health agency approved to operate exclusively as part of a PACE organization has provided services to individuals other than those enrolled in the PACE program, or who are being assessed for eligibility pursuant to paragraph (1), the home health agency shall apply for licensure with the State Department of Public Health. A home health agency required to obtain licensure from the State Department of Public Health pursuant to this paragraph shall apply for the license not later than 60 calendar days following the determination by the State Department of Health Care Services described in this paragraph. The home health agency shall not accept any new participants in the PACE program until licensure is obtained. (3) This subdivision shall become operative only if the Director of Health Care Services determines, and communicates that determination in writing to the State Department of Public Health, that operating standards compliance programs consistent with subdivisions (d) and (e) of Section 14592 of the Welfare and Institutions Code have been established. A home health agency described in subdivision (c) of Section 14592 of the Welfare and Institutions Code shall remain under the oversight and regulatory authority of the State Department of Public Health until the Director of Health Care Services communicates their written determination to the State Department of Public Health. (Amended by Stats. 2019, Ch. 821, Sec. 7. (AB 1128) Effective January 1, 2020.)
  52. 1739.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    Any person who violates this chapter or its rules and regulations commits a misdemeanor and may be fined up to $1,000, jailed up to 180 days, or both.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1739. Any person who violates any of the provisions of this chapter or of the rules and regulations promulgated under this chapter is guilty of a misdemeanor and upon conviction thereof shall be punished by a fine not to exceed one thousand dollars ($1,000) or by imprisonment in the county jail for a period not to exceed 180 days or by both such fine and imprisonment. (Amended by Stats. 1983, Ch. 1092, Sec. 149. Effective September 27, 1983. Operative January 1, 1984, by Sec. 427 of Ch. 1092.)
  53. 1740.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    The director may sue in superior court to stop a violation or threatened violation of Section 1726.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1740. The director may bring an action to enjoin the violation or threatened violation of Section 1726 in the superior court in and for the county in which the violation occurred or is about to occur. Any proceeding under the provisions of this section shall conform to the requirements of Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that the director shall not be required to allege facts necessary to show or tending to show lack of adequate remedy at law or to show or tending to show irreparable damage or loss. (Added by Stats. 1966, 1st Ex. Sess., Ch. 79.)
  54. 1741.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    State department officers, employees, or agents may enter and inspect a licensee’s buildings, premises, records, or files at reasonable times to ensure compliance or prevent violations of the chapter.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1741. Any officer, employee, or agent of the state department may enter and inspect any building, premises, record or file of a licensee at any reasonable time to secure compliance with, or to prevent a violation of, any provision of this chapter. (Added by Stats. 1966, 1st Ex. Sess., Ch. 79.)
  55. 1742.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. )

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    A county district attorney must prosecute violations in the county when the state department or its authorized representative applies.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8. Home Health Agencies [1725 - 1742] ( Chapter 8 added by Stats. 1966, 1st Ex. Sess., Ch. 79. ) ## 1742. The district attorney of every county shall, upon application by the state department or its authorized representative, institute and conduct the prosecution of any action for violation within his county or any provisions of this chapter. (Added by Stats. 1966, 1st Ex. Sess., Ch. 79.)
  56. 1743.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. )

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    This section states the Legislature’s findings and intent for private duty nursing agencies and related home- and community-based skilled nursing services.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. ) ## 1743. (a) The Legislature finds and declares all of the following: (1) There is currently a crisis in accessing home health care. (2) Approximately 300 home health agencies have closed in the past two years. (3) The reduction in the number of home health agencies has made it difficult for many children and adults needing skilled nursing services provided on a shift basis under home- and community-based waivers to receive the services they need, and also jeopardizes the ability of people with disabilities and others from remaining in home- and community-based settings. (4) Home health agencies have historically been designed as a model of care for elderly Medicare beneficiaries, but this model is not well-suited for the kind of care required by adults and children with disabilities. (b) It is the intent of the Legislature in enacting this chapter to ensure adequate access to home- and community-based skilled nursing services provided on a shift basis for people who need these services, including people with disabilities. (c) It is the intent of the Legislature, in adopting a new licensure category for private duty nursing agencies, to provide appropriate nursing care while upholding the same strong consumer protections applicable to home health agencies under Title 22 of the California Code of Regulations. (Added by Stats. 2001, Ch. 242, Sec. 1. Effective January 1, 2002.)
  57. 1743.11.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. )

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    This section limits first-time provisional licensing for private duty nursing agencies, requires an inspection before the provisional license ends, and sets rules for renewal, regular licensing, denial, and appeal.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. ) ## 1743.11. (a) If a private duty nursing agency or an applicant for a license has not been previously licensed, the department may only issue a provisional license to the agency as provided in this section. (b) A provisional license to operate a private duty nursing agency shall terminate six months from the date of issuance. (c) Within 30 days prior to the termination of a provisional license, the department shall give the agency a full and complete inspection, and, if the agency meets all applicable requirements for licensure, a regular license shall be issued. If the private duty nursing agency does not meet the requirements for licensure, but has made substantial progress towards meeting the requirements, as determined by the department, the initial provisional license shall be renewed for six months. (d) If the department determines that there has not been substantial progress towards meeting licensure requirements at the time of the first full inspection provided by this section, or, if the department determines upon its inspection made within 30 days of the termination of a renewed provisional license that there is lack of full compliance with the requirements, no further license shall be issued. (e) If an applicant for a provisional license to operate a private duty nursing agency has been denied provisional licensing by the state department, the applicant may contest the denial by filing a request for a hearing pursuant to Section 100171. (f) The department shall not apply less stringent criteria when granting a provisional license pursuant to this section than it applies when granting a permanent license. (Added by Stats. 2001, Ch. 242, Sec. 1. Effective January 1, 2002.)
  58. 1743.13.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. )

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    The department may issue a provisional license to a previously licensed home health agency applicant or private duty nursing agency if stated conditions are met, but the license expires within six months and cannot be renewed.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. ) ## 1743.13. (a) Notwithstanding Sections 1743.9 and 1743.15, if a private duty nursing agency or an applicant for a license has been previously licensed as a home health agency, the department may issue a provisional license to the private duty nursing agency if all of the following conditions are satisfied: (1) The agency and the applicant for licensure substantially meet the standards specified by this chapter and regulations adopted pursuant to this chapter. (2) No violation of this chapter or regulations adopted under this chapter exists in the agency that jeopardizes the health or safety of patients. (3) The applicant has adopted a plan for correction of any existing violations that is satisfactory to the department. (b) A provisional license issued under this section shall expire not later than six months after the date of issuance, or at an earlier time as determined by the department at the time of issuance, and may not be renewed. (c) The department shall not apply less stringent criteria when granting a provisional license pursuant to this section than it applies when granting a permanent license. (Added by Stats. 2001, Ch. 242, Sec. 1. Effective January 1, 2002.)
  59. 1743.15.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. )

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    The department must issue a private duty nursing agency license when an application is filed and the applicant fully complies with the chapter and regulations, and it may also license certain qualified agencies or convert a home health agency license on request.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. ) ## 1743.15. (a) Upon filing an application for a private duty nursing agency license as provided for in, and upon the full compliance with, the provisions of this chapter and the rules and regulations promulgated under this chapter by the department, the department shall issue a private duty nursing agency license to the applicant. (b) Notwithstanding subdivision (a), any health facility, as defined in Section 1250 that is licensed under Chapter 2 (commencing with Section 1250) is not required to obtain a license. In order for a health facility to establish, conduct, or maintain a private duty nursing agency, it shall comply with all the provisions of this chapter and be approved by the department. The approval shall be deemed to be licensure and shall not extend past midnight on the 31st day of December of each calendar year. The fee set forth in Section 1743.17 shall be paid before approval is granted. Approval may be denied or withdrawn by the department on the same grounds as provided for denial, suspension, or revocation of a private duty nursing agency license. The department may take the same action against any approved health facility private duty nursing agency as it may against any licensed private duty nursing agency under this chapter. (c) As an alternative to subdivision (a), the department may issue a license to a private duty nursing agency that meets the requirements for a home health agency as provided in subdivision (a) of Section 1728.7, including accreditation, except the application and fees shall be submitted pursuant to this chapter. If the department issues a license pursuant to this subdivision, subdivisions (b), (c), and (d) of Section 1728.7 as they apply to home health agencies shall apply to private duty nursing agencies. (d) A currently licensed home health agency may apply for conversion of that license to a private duty nursing license by filing a written request with the department. If the home health agency holds a valid license and is in good standing, the department shall issue a private duty nursing agency license to that applicant within 30 days of receiving the application. (Added by Stats. 2001, Ch. 242, Sec. 1. Effective January 1, 2002.)
  60. 1743.17.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. )

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    Most private duty nursing agency license applications must include a Licensing and Certification Program fee, unless the applicant is this state or a state agency or officer.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. ) ## 1743.17. Each application for a private duty nursing agency license under this chapter, except applications by this state or any state department, authority, bureau, commission, or officer, shall be accompanied by a Licensing and Certification Program fee for the headquarters or main office of the agency and for each additional branch office maintained and operated by the agency in the amount set in accordance with Section 1266. (Amended by Stats. 2006, Ch. 74, Sec. 23. Effective July 12, 2006.)
  61. 1743.19.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. )

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    A private duty nursing agency license expires 12 months after it is issued, and renewal must be filed with the department annually at least 30 days before expiration.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. ) ## 1743.19. Each private duty nursing agency license issued under this chapter shall expire 12 months from the date of its issuance. Application for renewal of license accompanied by the necessary fee shall be filed with the department annually, not less than 30 days prior to expiration date. Failure to make a timely renewal shall result in expiration of the license. (Amended by Stats. 2006, Ch. 74, Sec. 24. Effective July 12, 2006.)
  62. 1743.2.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. )

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    This section defines “private duty nursing agency” and “private duty nursing services,” including who may provide those services and where they may be provided.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. ) ## 1743.2. (a) “Private duty nursing agency” means a private or public organization, including, but not limited to, any partnership, corporation, political subdivision of the state, or other government agency within the state, that provides, or arranges for the provision of, private duty nursing services, as described in Section 1743.3. (b) “Private duty nursing services” means skilled nursing services provided on a shift basis for patients who require individual and continuous nursing care, and that meets all of the following requirements: (1) Is provided by a registered nurse or a licensed vocational nurse, except that any person accepted for service whose care requires medical orders shall be under the care of a physician, dentist, podiatrist, or other licensed practitioner within his or her scope of practice. (2) Is provided to the patient in his or her temporary or permanent place of residence or other community-based setting and includes, one or both of the following locations: (A) The patient’s home. (B) Outside of the patient’s home, as necessitated by normal life activities. (Added by Stats. 2001, Ch. 242, Sec. 1. Effective January 1, 2002.)
  63. 1743.21.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. )

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    Licensed private duty nursing agencies are subject to periodic department inspections, and inspection reports must be prepared and filed with the department, with a limited exemption for certain Medicare/Medicaid-certified facilities.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. ) ## 1743.21. (a) Every private duty nursing agency for which a license has been issued, except a facility that is certified to participate either in the Medicare program under Title XVIII (42 U.S.C. Sec. 1395 et seq.) of the federal Social Security Act, or the medicaid program under Title XIX (42 U.S.C. Sec. 1396 et seq.) of the federal Social Security Act, or both, shall be periodically inspected by a duly authorized representative of the department. Reports of each inspection shall be prepared by the representative conducting it upon forms prepared and furnished by the department and filed with the department. These inspections shall be for the purpose of ensuring that the provisions of this chapter and the rules and regulations of the department are being followed. The department is directed to ensure by these inspections that the private duty nursing agency is providing high quality care to its patients in accordance with the orders of the patient’s physician. (b) Nothing in this chapter shall be deemed to require a private duty nursing agency to comply with federal Medicare conditions of participation, if the agency is not serving medicare beneficiaries. (Added by Stats. 2001, Ch. 242, Sec. 1. Effective January 1, 2002.)
  64. 1743.23.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. )

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    The department must apply home health agency regulations to home health and private duty nursing agencies, and may change those rules for this chapter.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. ) ## 1743.23. (a) The department shall apply its current regulations governing home health agencies to home health agencies and to private duty nursing agencies and may thereafter modify, amend, or rescind, reasonable rules and regulations to carry out the purposes of this chapter, including, the prohibition of specific conduct, determined by the department to be inimical to the public health, morals, welfare, or safety of the people of the State of California in the maintenance and operation of a private duty nursing services agency for which a license is issued. In adopting, modifying, amending, or rescinding the rules and regulations, the department shall consult with, and receive recommendations from, among others, physicians and surgeons, pharmacists, public health nurses, and persons representing hospitals, nonprofit home health and private duty nursing agencies, proprietary home health and private duty nursing agencies, and counties whose health department or hospital has a home health or private duty nursing agency. The department shall also comply with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (b) The department shall apply current rules and regulations governing home health agencies regarding the purchase, storage, furnishing, and transportation of legend devices for a patient of a private duty nursing agency. As used in this subdivision, “legend devices” means any device that bears the label “Caution: federal law restricts this device to sale by or on the order of a ____” or words of similar meaning. (c) It is the intent of the Legislature that the department apply current regulations governing home health agencies to private duty nursing facilities that are similar to those that govern home health agencies including, but not limited to, those regulations related to services and the scope and duration of benefits, except to the extent the regulations would be inconsistent with the authority provided under, and the restrictions prescribed by, this chapter. (Added by Stats. 2001, Ch. 242, Sec. 1. Effective January 1, 2002.)
  65. 1743.25.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. )

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    The department may deny, suspend, or revoke a private duty nursing license for specified grounds, and it can still pursue discipline even if the license later changes status.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. ) ## 1743.25. (a) The department may deny any application for, or suspend or revoke, any private duty nursing 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 any of the provisions of this chapter or of any other law of this state or of the rules and regulations promulgated under this chapter. (2) Aiding, abetting, or permitting the commission of any illegal act. (3) Misrepresentation of a material fact in the application for a license. (b) (1) Proceedings for the denial, suspension, or revocation of licenses or the denial or withdrawal of approval under this chapter shall be conducted in accordance with Section 100171. (2) The suspension, expiration, or forfeiture by operation of law of a license issued by the department; its suspension, forfeiture, or cancellation by order of the department or by order of a court of law; or its surrender without the written consent of the department, shall not deprive the department of its authority to institute or continue a disciplinary proceeding against the licensee upon any ground provided by law or to enter an order suspending or revoking the license or otherwise taking disciplinary action against the licensee on any ground provided by law. (Added by Stats. 2001, Ch. 242, Sec. 1. Effective January 1, 2002.)
  66. 1743.27.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. )

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    A licensee may surrender a license for suspension or cancellation if the department approves, and the department may reinstate suspended, canceled, or revoked licenses under the stated conditions.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. ) ## 1743.27. (a) Any license revoked pursuant to this chapter may be reinstated pursuant to Section 11522 of the Government Code. (b) Any licensee may, with the approval of the department, surrender his or her license for suspension or cancellation by the department. Any license suspended or canceled pursuant to this section may be reinstated by the department on receipt of an application showing compliance with the requirements of Section 1743.7. (Added by Stats. 2001, Ch. 242, Sec. 1. Effective January 1, 2002.)
  67. 1743.29.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. )

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    This chapter does not apply to adherents of certain well recognized churches or religious denominations that use prayer or spiritual means to heal the sick.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. ) ## 1743.29. The provisions of this chapter do not apply to the adherents of any well recognized church or religious denomination that provides for the care or treatment of the sick who depend upon prayer or spiritual means for healing in the practice of the religion of the church or denomination. (Added by Stats. 2001, Ch. 242, Sec. 1. Effective January 1, 2002.)
  68. 1743.3.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. )

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    Private duty nursing agencies providing services must follow listed care, recordkeeping, policy, and compliance requirements.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. ) ## 1743.3. Each private duty nursing agency providing services shall do all of the following: (a) Provide for a plan of treatment for patients receiving private duty nursing services. (b) Maintain clinical records on all patients. (c) Maintain policies regarding the delivery and supervision of patient care that are reviewed annually by a group of professional personnel including a physician and surgeon and a registered nurse and revised as needed. (d) Meet all applicable federal, state, and local requirements. (e) Maintain, and revise as needed, and implement policies regarding the purchase, storage, furnishing, and transportation of legend devices that are reviewed annually by a group of professional personnel, including a physician and surgeon, pharmacist, and a registered nurse. As used in this subdivision, “legend devices” means any device that bears the label “Caution: federal law restricts this device to sale by or on the order of a ____” or words of similar meaning. (f) Meet other standards, rules, and regulations adopted by the department in order to implement this chapter. (Added by Stats. 2001, Ch. 242, Sec. 1. Effective January 1, 2002.)
  69. 1743.31.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. )

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    Anyone who violates this chapter or its regulations commits a misdemeanor and may be fined up to $1,000, jailed up to 180 days, or both.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. ) ## 1743.31. Any person who violates any of the provisions of this chapter, or of the rules and regulations promulgated under this chapter, 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 a county jail for a period not to exceed 180 days, or by both the fine and imprisonment. (Added by Stats. 2001, Ch. 242, Sec. 1. Effective January 1, 2002.)
  70. 1743.33.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. )

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    The director may seek an injunction in superior court to stop a violation or threatened violation of Section 1743.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. ) ## 1743.33. The director may bring an action to enjoin the violation or threatened violation of Section 1743 in the superior court in and for the county in which the violation occurred or is about to occur. Any proceeding under this section shall conform to the requirements of Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that the director shall not be required to allege facts necessary to show or tending to show lack of adequate remedy at law or to show or tending to show irreparable damage or loss. (Added by Stats. 2001, Ch. 242, Sec. 1. Effective January 1, 2002.)
  71. 1743.35.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. )

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    Department officers, employees, or agents may enter and inspect a private duty nursing agency licensee’s buildings, premises, records, or files at a reasonable time.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. ) ## 1743.35. Any officer, employee, or agent of the department may enter and inspect any building, premises, record, or file of a private duty nursing agency licensee at any reasonable time to secure compliance with, or to prevent a violation of, any provision of this chapter. (Added by Stats. 2001, Ch. 242, Sec. 1. Effective January 1, 2002.)
  72. 1743.37.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. )

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    When the department or its authorized representative applies, every county district attorney must prosecute violations in that county or under this chapter.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. ) ## 1743.37. The district attorney of every county shall, upon application by the department or its authorized representative, institute and conduct the prosecution of any action for violation within the district attorney’s county or any provisions of this chapter. (Added by Stats. 2001, Ch. 242, Sec. 1. Effective January 1, 2002.)
  73. 1743.7.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. )

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    People and organizations seeking a license for a private duty nursing agency must file a verified application with the department on the department’s prescribed form.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. ) ## 1743.7. Any person, organization, political subdivision of the state or governmental agency desiring a license under this chapter, or any health facility as defined in Section 1250 that desires to establish, conduct, or maintain a private duty nursing agency, shall file with the department a verified application on a form prescribed, prepared, and furnished by the department, containing information as may be required by the department for the proper administration and enforcement of this chapter. (Added by Stats. 2001, Ch. 242, Sec. 1. Effective January 1, 2002.)
  74. 1743.9.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. )

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    This section sets qualification rules for a private duty nursing agency license, including good character, background checks, fingerprint submission, and related disclosures.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.3. Private Duty Nursing Agencies [1743 - 1743.37] ( Chapter 8.3 added by Stats. 2001, Ch. 242, Sec. 1. ) ## 1743.9. (a) To qualify for a private duty nursing agency license, the following requirements shall be met: (1) Every applicant shall satisfy the following conditions: (A) Be of good moral character. If the applicant is a firm, association, organization, partnership, business trust, corporation, or company, all principal managing members thereof, and the person in charge of the agency for which application for a license is made, shall satisfy this requirement. If the applicant is a political subdivision of the state or other governmental agency, the person in charge of the agency for which application for a license is made shall satisfy this requirement. (B) Possess and demonstrate the ability to comply with this chapter and the rules and regulations adopted under this chapter by the department. (C) File his or her application pursuant to and in full compliance with this chapter. (2) (A) The following persons shall submit to the department an application, and shall submit fingerprint images and related information to the Department of Justice, for the furnishing of the person’s criminal record to the department, at the person’s expense as provided in subdivision (b), for the purpose of a criminal record review: (i) The owner or owners of a private agency if the owners are individuals. (ii) If the owner of a private agency is a corporation, partnership, or association, any person having a 10 percent or greater interest in that corporation, partnership, or association. (iii) The administrator of a private duty nursing agency. (3) When the conditions set forth in paragraph (3) of subdivision (a) of Section 1265.5, subparagraph (A) of paragraph (1) of subdivision (a) of Section 1338.5, and paragraph (1) of subdivision (a) of Section 1736.6 are met, the licensing and certification program shall issue an All Facilities Letter (AFL) informing facility licensees. After the AFL is issued, facilities shall not allow newly hired administrators, program directors, and fiscal officers to have direct contact with clients or residents of the facility prior to completion of the initial record clearance. A criminal record clearance shall be complete when the department has obtained the person’s criminal offender record information search response from the Department of Justice and has determined that the person is not disqualified from engaging in the activity for which the clearance is required. (b) Notwithstanding any other provision of law, the department may provide an individual with a copy of his or her state or federal level criminal offender record information search response as provided to that department by the Department of Justice if the department has denied a criminal background clearance based on this information and the individual makes a written request to the department for a copy specifying an address to which it is to be sent. The state or federal level criminal offender record information search response shall not be modified or altered from its form or content as provided by the Department of Justice and shall be provided to the address specified by the individual in his or her written request. The department shall retain a copy of the individual’s written request and the response and date provided. (4) An applicant and any other person specified in this subdivision, as part of the background clearance process, shall provide information as to whether or not the person has any prior criminal convictions, has had any arrests within the past 12-month period, or has any active arrests, and shall certify that, to the best of his or her knowledge, the information provided is true. This requirement is not intended to duplicate existing requirements for individuals who are required to submit fingerprint images as part of a criminal background clearance process. Every applicant shall provide information on any prior administrative action taken against him or her by any federal, state, or local government agency and shall certify that, to the best of his or her knowledge, the information provided is true. An applicant or other person required to provide information pursuant to this section that knowingly or willfully makes false statements, representations, or omissions may be subject to administrative action, including, but not limited to, denial of his or her application or exemption or revocation of any exemption previously granted. (c) The persons specified in paragraph (2) of subdivision (a) shall be responsible for any costs associated with capturing or transmitting the fingerprint images and related information. The fee to cover the processing costs of the Department of Justice, not including the costs associated with capturing or transmitting the electronic fingerprint images and related information, shall not exceed thirty-two dollars ($32) per submission. (d) If the criminal record review conducted pursuant to paragraph (2) of subdivision (a) discloses a conviction for a felony or any crime that evidences an unfitness to provide private duty nursing services, the application for a license shall be denied, or the person shall be prohibited from providing service in the private duty nursing agency applying for a license. This subdivision shall not apply to deny a license or prohibit the provision of service if the person presents evidence satisfactory to the department that the person has been rehabilitated and presently is of that good character that justifies the issuance of the license or the provision of service in the private duty nursing agency. (Amended by Stats. 2006, Ch. 902, Sec. 16. Effective January 1, 2007.)
  75. 1745.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 1. General [1745 - 1746] ( Article 1 added by Stats. 1990, Ch. 1343, Sec. 1. )

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    This section says the state department licenses hospices, sets quality-care standards, and should use discretion and flexibility for rural hospice licensing.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 1. General [1745 - 1746] ( Article 1 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## 1745. (a) The purposes of this chapter are to provide for the licensure of hospices by the state department in order to ensure the health and safety of patients, who by definition, are experiencing the last phases of life due to the existence of a terminal disease, and to permit qualified persons, political subdivisions of the state, and governmental agencies to comply with requirements of federal law regarding the provision of hospice care. (b) In enacting this chapter, it is the intent of the Legislature to allow all qualified persons, political subdivisions of the state, and governmental agencies to provide hospice services to the people of California. It is also the intent of the Legislature to distinguish between the functions of a volunteer hospice and a hospice requiring licensure. It is further the intent of the Legislature to require the state department to establish standards of quality care for licensed hospices. (c) It is the intent of the Legislature that regulations adopted by the state department pursuant to this chapter not be so burdensome or costly, or both, in terms of implementation, that hospices located in rural areas are forced to stop providing care. Therefore, the state department shall exercise discretion and program flexibility in regard to licensing hospices which are located in rural areas of the state. (Added by Stats. 1990, Ch. 1343, Sec. 1.)
  76. 1746.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 1. General [1745 - 1746] ( Article 1 added by Stats. 1990, Ch. 1343, Sec. 1. )

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    This section defines hospice-related terms used in the chapter and includes a few operational requirements for hospice care teams and skilled nursing services.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 1. General [1745 - 1746] ( Article 1 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## 1746. For the purposes of this chapter, the following definitions apply: (a) “Bereavement services” means those services available to the surviving family members for a period of at least one year after the death of the patient, including an assessment of the needs of the bereaved family and the development of a care plan that meets these needs, both prior to and following the death of the patient. (b) “Home health aide” has the same meaning as that term is defined in subdivision (c) of Section 1727. (c) “Home health aide services” means those services described in subdivision (d) of Section 1727 that provide for the personal care of the terminally ill patient and the performance of related tasks in the patient’s home in accordance with the plan of care in order to increase the level of comfort and to maintain personal hygiene and a safe, healthy environment for the patient. (d) “Hospice” means a specialized form of interdisciplinary health care that is designed to provide palliative care, alleviate the physical, emotional, social, and spiritual discomforts of an individual who is experiencing the last phases of life due to the existence of a terminal disease, and provide supportive care to the primary caregiver and the family of the hospice patient, and that meets all of the following criteria: (1) Considers the patient and the patient’s family, in addition to the patient, as the unit of care. (2) Utilizes an interdisciplinary team to assess the physical, medical, psychological, social, and spiritual needs of the patient and the patient’s family. (3) Requires the interdisciplinary team to develop an overall plan of care and to provide coordinated care that emphasizes supportive services, including, but not limited to, home care, pain control, and limited inpatient services. Limited inpatient services are intended to ensure both continuity of care and appropriateness of services for those patients who cannot be managed at home because of acute complications or the temporary absence of a capable primary caregiver. (4) Provides for the palliative medical treatment of pain and other symptoms associated with a terminal disease, but does not provide for efforts to cure the disease. (5) Provides for bereavement services following death to assist the family in coping with social and emotional needs associated with the death of the patient. (6) Actively utilizes volunteers in the delivery of hospice services. (7) To the extent appropriate, based on the medical needs of the patient, provides services in the patient’s home or primary place of residence. (e) “Hospice facility” means a health facility as defined in subdivision (n) of Section 1250. (f) “Inpatient care arrangements” means arranging for those short inpatient stays that may become necessary to manage acute symptoms or because of the temporary absence, or need for respite, of a capable primary caregiver. The hospice shall arrange for these stays, ensuring both continuity of care and the appropriateness of services. (g) “An interdisciplinary team” means the hospice care team that includes, but is not limited to, the patient and patient’s family, a physician and surgeon, a registered nurse, a social worker, a volunteer, and a spiritual caregiver. The team shall be coordinated by a registered nurse and shall be under medical direction. The team shall meet regularly to develop and maintain an appropriate plan of care. (h) “Medical direction” means those services provided by a licensed physician and surgeon who is charged with the responsibility of acting as a consultant to the interdisciplinary team, a consultant to the patient’s attending physician and surgeon, as requested, with regard to pain and symptom management, and a liaison with physician and surgeons in the community. (i) “Multiple location” means a location or site from which a hospice makes available basic hospice services within the service area of the parent agency. A multiple location shares administration, supervision, policies and procedures, and services with the parent agency in a manner that renders it unnecessary for the site to independently meet the licensing requirements. (j) “Palliative care” means patient and family-centered care that optimizes quality of life of a patient with a terminal illness by anticipating, preventing, and treating suffering. Palliative care throughout the continuum of illness involves addressing physical, intellectual, emotional, social, and spiritual needs and to facilitate patient autonomy, access to information, and choice. (k) “Parent agency” means the part of the hospice that is licensed pursuant to this chapter and that develops and maintains administrative control of multiple locations. All services provided from each multiple location and parent agency are the responsibility of the parent agency. (l) “Plan of care” means a written plan developed by the attending physician and surgeon, the medical director or physician and surgeon designee, and the interdisciplinary team that addresses the needs of a patient and family admitted to the hospice organization. The hospice shall retain overall responsibility for the development and maintenance of the plan of care and quality of services delivered. (m) “Preliminary services” means those services authorized pursuant to subdivision (d) of Section 1749. (n) “Skilled nursing services” means nursing services provided by or under the supervision of a registered nurse under a plan of care developed by the interdisciplinary team and the patient’s physician and surgeon to a patient and his or her family that pertain to the palliative, supportive services required by patients with a terminal illness. Skilled nursing services include, but are not limited to, patient assessment, evaluation and case management of the medical nursing needs of the patient, the performance of prescribed medical treatment for pain and symptom control, the provision of emotional support to both the patient and his or her family, and the instruction of caregivers in providing personal care to the patient. Skilled nursing services shall provide for the continuity of services for the patient and his or her family. Skilled nursing services shall be available on a 24-hour on-call basis. (o) “Social services/counseling services” means those counseling and spiritual care services that assist the patient and his or her family to minimize stresses and problems that arise from social, economic, psychological, or spiritual needs by utilizing appropriate community resources, and maximize positive aspects and opportunities for growth. (p) “Terminal disease” or “terminal illness” means a medical condition resulting in a prognosis of life of one year or less, if the disease follows its natural course. (q) “Volunteer services” means those services provided by trained hospice volunteers who have agreed to provide service under the direction of a hospice staff member who has been designated by the hospice to provide direction to hospice volunteers. Hospice volunteers may be used to provide support and companionship to the patient and his or her family during the remaining days of the patient’s life and to the surviving family following the patient’s death. (Amended by Stats. 2012, Ch. 673, Sec. 9. (SB 135) Effective January 1, 2013.)
  77. 1746.50.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 1.5. Hospice Patient Referral [1746.50 - 1746.52] ( Article 1.5 added by Stats. 2021, Ch. 478, Sec. 1. )

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    Hospice providers and related staff may not pay referral sources for patient referrals, and compensated hospice sales staff may not give consultation on hospice services, hospice election, or informed consent. Only certain hospice-employed clinical or counseling staff may complete hospice election, informed consent, signatures, and related counsel.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 1.5. Hospice Patient Referral [1746.50 - 1746.52] ( Article 1.5 added by Stats. 2021, Ch. 478, Sec. 1. ) ## 1746.50. (a) A hospice provider, employed hospice staff, or an agent for the hospice shall not give payment to referral sources for the referral of patients to the hospice. (b) A hospice salesperson, recruiter, agent, or employee who receives any form of compensation or remuneration for hospice referrals or admissions shall not provide consultation on hospice services, hospice election, or informed consent to a patient, patient’s family, or patient’s representative. (c) The election of hospice, informed consent, completed signatures, and counsel on the election of hospice to a patient, patient’s family, or patient’s representative shall only be completed by a registered nurse, licensed vocational nurse, medical social worker, chaplain, or counselor employed by the hospice. (Added by Stats. 2021, Ch. 478, Sec. 1. (AB 1280) Effective January 1, 2022.)
  78. 1746.52.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 1.5. Hospice Patient Referral [1746.50 - 1746.52] ( Article 1.5 added by Stats. 2021, Ch. 478, Sec. 1. )

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    This section defines “patient’s representative,” “payment,” and “referral source” for this article.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 1.5. Hospice Patient Referral [1746.50 - 1746.52] ( Article 1.5 added by Stats. 2021, Ch. 478, Sec. 1. ) ## 1746.52. For purposes of this article: (a) “Patient’s representative” means either a person designated by the patient as their representative or a person acting on the patient’s behalf under the authority of the Long-Term Care Patient Representative Program pursuant to Chapter 3.6 (commencing with Section 9260) of Division 8.5 of the Welfare and Institutions Code. (b) “Payment” means anything of value, including cash, gift cards, prepaid cards, or remuneration of any kind. (c) “Referral source” means a medical or nonmedical entity or medical or nonmedical provider that refers a patient, patient’s family, or patient’s representative to a hospice provider for a consultation or any other reason. (Added by Stats. 2021, Ch. 478, Sec. 1. (AB 1280) Effective January 1, 2022.)
  79. 1747.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2. Licensure [1747 - 1751.5] ( Article 2 added by Stats. 1990, Ch. 1343, Sec. 1. )

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    Most new hospices may not operate without a license. Existing hospices as of January 1, 1991 may keep operating if they apply for a license on time and follow the listed conditions. Small and rural hospices are exempt and may use the title “volunteer hospice.”

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2. Licensure [1747 - 1751.5] ( Article 2 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## 1747. (a) No person, political subdivision of the state, or other governmental agency, that is not operating a hospice as of January 1, 1991, shall establish or operate a hospice without first obtaining a license under this chapter. (b) Any person, political subdivision of the state, or other governmental agency, that is operating a hospice as of January 1, 1991, may continue to operate the hospice only under the following conditions: (1) The person, political subdivision of the state, or other governmental agency shall apply to the state department for a license under this chapter within 60 days after forms for the application of licensure under this chapter are available from the state department. (2) The person, political subdivision of the state, or other governmental agency shall cease calling or referring to itself as a hospice upon the final decision of the director upholding the state department’s denial of an application for licensure under this chapter. (c) Nothing in this chapter shall preclude the ongoing use of the title “volunteer hospice” by those organizations that satisfy all of the following: (1) They do not provide skilled nursing services. (2) They do not charge patients or families for hospice services, and they do not receive third-party insurance payments for services rendered. (3) They satisfy the disclosure requirements specified in subdivision (c) of Section 1748. (d) A small and rural hospice is exempt from the licensing provisions of this chapter and the disclosure requirements of subdivision (c) of Section 1748. A small and rural hospice may provide skilled nursing services and may use the title “volunteer hospice.” For purposes of this chapter, a “small and rural hospice” means a hospice that provides services to less than 50 patients per year, does not charge for services, does not receive third-party payment for services rendered, and is not located in a standard metropolitan statistical area. (Amended by Stats. 1997, Ch. 492, Sec. 2. Effective January 1, 1998.)
  80. 1747.1.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2. Licensure [1747 - 1751.5] ( Article 2 added by Stats. 1990, Ch. 1343, Sec. 1. )

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    A hospice program certified under federal Medicare hospice participation rules is exempt from Section 1747(a) and is subject to Section 1726 unless it applies for hospice licensure.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2. Licensure [1747 - 1751.5] ( Article 2 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## 1747.1. A hospice program certified in accordance with federal Medicare hospice conditions of participation shall be exempt from subdivision (a) of Section 1747, but shall be subject to Section 1726 unless it elects to apply for hospice licensure. A hospice program that elects to apply for hospice licensure shall thereafter be subject to all the hospice licensure requirements set forth in this chapter. (Added by Stats. 1994, Ch. 985, Sec. 1.5. Effective January 1, 1995.)
  81. 1747.3.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2. Licensure [1747 - 1751.5] ( Article 2 added by Stats. 1990, Ch. 1343, Sec. 1. )

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    A hospice licensee may provide palliative care, but must give advance notice and specified forms to the department, report annually through 2025, and submit certain information when palliative care ends. The department also has reporting and meeting-related duties and powers.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2. Licensure [1747 - 1751.5] ( Article 2 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## 1747.3. (a) Notwithstanding any other law, beginning January 1, 2018, a licensee pursuant to this chapter may provide any interdisciplinary hospice services described in this chapter, including, but not limited to, palliative care, to a patient with a serious illness as determined by the physician and surgeon in charge of the care of the patient, including, among other kinds of patients, a patient who continues to receive curative treatment from other licensed health care professionals. (b) A licensee that elects to provide palliative care pursuant to this section shall provide the department with the date the licensee intends to begin providing the palliative care no less than 45 days before that date and all of the following: (1) The completed relevant portions of a form HS 200, or a successor form, as determined by the department. (2) A complete federal form CMS 417, or a successor form, as determined by the department. (c) (1) The department shall not require the documents submitted pursuant to subdivision (b) to be approved prior to the licensee providing palliative care pursuant to this section. (2) The department shall not charge an application fee to provide any care or services pursuant to this section. (d) (1) On or before April 30, 2022, and each April thereafter until April 30, 2025, a licensee shall provide the department with information for the period of time in the prior calendar year during which the licensee provided palliative care pursuant to this section through the department’s online reporting portal, including, but not limited to, all of the following: (A) The number of nonhospice patients who received palliative care pursuant to this section. (B) The number of patients enrolled in hospice. (C) The primary diagnoses of the patients for which the licensee provided palliative care pursuant to this section. (D) The numbers and types of providers hired during the previous 12 months. (E) The numbers and types of providers who left employment during the previous 12 months. (F) Complaints received by the licensee during the previous 12 months that related to all the following: (i) Events that caused or were likely to cause serious injury, harm, impairment, or death. (ii) Events or incidents that negatively impacted a patient’s mental, physical, or psychosocial status and were of such consequence to the patient’s well-being that a rapid response was required. (iii) Delays in patient care for hospice and nonhospice patients who received palliative care pursuant to this section. (iv) Qualifications of staff. (2) A licensee that has been approved by the department to provide palliative care pursuant to this section that has either provided the department with the date the licensee intends to begin providing palliative care pursuant to this section, or has notified the department of its cessation of palliative care provision pursuant to subdivision (g), shall report to the department pursuant to paragraph (1) regardless of whether the licensee provided palliative care pursuant to this section during the prior calendar year. (e) During the period of time a licensee provides palliative care pursuant to this section, the licensee shall simultaneously submit to the department all information the licensee provides to the Office of Statewide Health Planning and Development. (f) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement, interpret, or make specific the provisions of this section by means of all-facility letters, or similar instructions, without taking regulatory action. (g) If the licensee ceases to provide palliative care services pursuant to this section on or before January 1, 2027, the licensee shall submit to the department the same documents as required in subdivision (b). (h) The provisions of this section shall not be applicable to a hospice facility established pursuant to subdivision (n) of Section 1250, or Section 1339.30 or 1339.40. (i) This section shall not be deemed to modify the provision of hospice care required pursuant to Section 1368.2. (j) On or before January 15, 2026, the department shall convene a stakeholder meeting to discuss the results of the information collected pursuant to this section. The department may, at its discretion, use electronic means, such as a webinar, to convene the stakeholder meeting. (k) For purposes of this section, “serious illness” shall mean a condition that may result in death, regardless of the estimated length of the patient’s remaining period of life. (l) This section shall remain in effect only until January 1, 2027, and as of that date is repealed. (Amended by Stats. 2021, Ch. 488, Sec. 1. (SB 353) Effective January 1, 2022. Repealed as of January 1, 2027, by its own provisions.)
  82. 1747.5.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2. Licensure [1747 - 1751.5] ( Article 2 added by Stats. 1990, Ch. 1343, Sec. 1. )

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    Hospices licensed under this chapter must maintain, revise as needed, and implement policies for purchasing, storing, furnishing, and transporting legend devices.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2. Licensure [1747 - 1751.5] ( Article 2 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## 1747.5. Each hospice licensed pursuant to this chapter shall maintain, and revise as needed, and implement policies regarding the purchase, storage, furnishing, and transportation of legend devices that are reviewed annually by a group of professional personnel, including a physician and surgeon, a pharmacist, and a registered nurse, and are revised as needed. As used in this section, legend devices means any device that bears the label “Caution: federal law restricts this device to sale by or on the order of a ____,” or words of similar meaning. (Added by Stats. 1992, Ch. 1104, Sec. 6. Effective September 29, 1992.)
  83. 1748.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2. Licensure [1747 - 1751.5] ( Article 2 added by Stats. 1990, Ch. 1343, Sec. 1. )

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    Hospice agencies generally need a license before operating, and unlicensed agencies must make specified disclosures to the public.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2. Licensure [1747 - 1751.5] ( Article 2 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## 1748. (a) Except as otherwise provided in subdivision (b) or (d) of Section 1747, no person, political subdivision of the state, or other governmental agency shall establish, conduct, maintain, or represent itself as a hospice agency unless a license has been issued under this chapter. Multiple locations need not obtain a separate license. Multiple locations shall be listed on the license of the parent agency and each shall pay a licensing fee in the amount prescribed by subdivision (a) of Section 1750. (b) Any person, political subdivision of the state, or other governmental agency desiring a license to establish a hospice agency shall file with the department a verified application on forms prescribed and furnished by the department that contain any information as may be required by the department for the proper administration and enforcement of this chapter. (c) Any hospice agency that is not required to obtain a license under this chapter shall disclose in all advertisements and information provided to the public all of the following information: (1) It is not required to be licensed and is not regulated by the department. (2) Any complaint against the hospice agency should be directed to the local district attorney and the department. (3) Any complaint against personnel licensed by a board or committee within the Department of Consumer Affairs and employed by the hospice agency should be directed to the respective board or committee. Any complaint against a certified home health aide or certified nurse assistant shall be directed to the department. The address and telephone number of any state agency, board, or committee which is responsible for addressing complaints shall be provided by the hospice agency, upon request, to any patient of the hospice agency. (d) A license shall not be transferable. (e) The department shall not approve a change of ownership of a licensed hospice agency within five years of the date a license was initially issued to the licensee. Only the person, political subdivision of the state, or other governmental agency issued a license for the purposes of operating a hospice agency may use that license during the five-year period. (f) Notwithstanding subdivision (e), the department may make an exception for extenuating circumstances and approve a change of ownership within the five-year period if the hospice agency demonstrates and provides evidence to the department of either of the following: (1) The need to ensure continuity of care for existing patients of the hospice agency. (2) Both a financial hardship and an unmet need of hospice services in the geographic area the hospice agency would serve. (Amended by Stats. 2023, Ch. 131, Sec. 107. (AB 1754) Effective January 1, 2024.)
  84. 1749.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2. Licensure [1747 - 1751.5] ( Article 2 added by Stats. 1990, Ch. 1343, Sec. 1. )

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    A hospice license applicant must meet character, compliance, application, and reporting requirements, and hospice agencies must maintain and report key management information.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2. Licensure [1747 - 1751.5] ( Article 2 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## 1749. (a) To qualify for a license under this chapter, an applicant shall satisfy all of the following: (1) Be of good moral character. If the applicant is a franchise, franchisee, firm, association, organization, partnership, business trust, corporation, company, political subdivision of the state, or governmental agency, the person in charge of the hospice for which the application for a license is made shall be of good moral character. (2) Demonstrate the ability of the applicant to comply with this chapter and any rules and regulations promulgated under this chapter by the department. (3) File a completed application with the department that was prescribed and furnished pursuant to Section 1748. (4) The information required pursuant to this section shall be provided to the Licensing and Certification Program upon initial application for licensure. Unless otherwise specified, any change in the information that requires the licensee to submit a report of change or written notification to the Licensing and Certification Program shall be provided within 10 business days of the change along with any applicable fee according to subdivision (b) of Section 1266. (b) (1) A hospice agency shall have an administrator, administrator designee, director of patient care services, director of patient care services designee, and medical director or contracted medical director, and shall submit to the department all of the following information for each individual on an initial application: (A) An HS 215A form or its successor form. (B) A résumé. (C) A list of all hospice agencies the individual is currently serving as an administrator, administrator designee, director of patient care services, director of patient care services designee, or medical director or contracted medical director. (2) In addition to the information required pursuant to paragraph (1), a hospice agency shall submit to the department information on whether its medical director, or contracted medical director, is certified as a hospice medical director according to the requirements established by the Hospice Medical Director Certification Board, or certified in hospice and palliative medicine according to the requirements established by a member board of the American Board of Medical Specialties, or by the American Osteopathic Association, or an equivalent organization as determined by the department. (3) A hospice agency shall notify the department of any change in the administrator, administrator designee, director of patient care services, director of patient care services designee, or medical director or contracted medical director by submitting the information described in paragraphs (1) and (2) within 10 business days of the change. (4) All hospice agencies shall report to the department the name of the agency’s administrator, administrator designee, director of patient care services, director of patient care services designee, and medical director or contracted medical director by submitting the information required by paragraphs (1) and (2), no later than March 31, 2023. (c) (1) The department shall verify the status of professional licensure for hospice agency management personnel. (2) The department may also verify the following: (A) Association of hospice agency management personnel listed on the licensing application with the hospice agency. (B) Work history of hospice agency management personnel. (3) For purposes of this subdivision, verification may include contacting the hospice agency personnel or previous employers by telephone. (d) In order for a person, political subdivision of the state, or other governmental agency to be licensed as a hospice agency, it shall satisfy the definition of a hospice contained in Section 1746, and also provide, or make provision for, the following basic services: (1) Skilled nursing services. (2) Social services/counseling services. (3) Medical direction. (4) Bereavement services. (5) Volunteer services. (6) Inpatient care arrangements. (7) Home health aide services. (e) The services required to be provided pursuant to subdivision (d) shall be provided in compliance with the “Standards for Quality Hospice Care, 2003,” as available from the California Hospice and Palliative Care Association, until the department adopts regulations establishing alternative standards pursuant to subdivision (h). (f) (1) Except as provided in paragraph (2), the applicant shall demonstrate and provide evidence of an unmet need of hospice services in the geographic area that a hospice agency would serve. (2) An applicant for a hospice agency change of ownership need not comply with paragraph (1) for the previously approved service area if the license has been continually held by the previous licensee for five years and one of the following conditions are met: (A) The hospice agency has previously qualified for licensure after demonstrating and providing evidence of unmet need of hospice services in the hospice agency’s geographic area. (B) The hospice agency can demonstrate it is meeting a need for hospice services. (3) If the hospice agency’s approved geographic service area will change upon the change in ownership, the new applicant for licensure shall demonstrate unmet need for hospice services for any new service area. (g) (1) Notwithstanding any law to the contrary, to meet the unique needs of the community, licensed hospice agencies may provide, in addition to hospice services authorized in this chapter, any of the following preliminary services for any person in need of those services, as determined by the physician and surgeon, if any, in charge of the care of a patient, or at the request of the patient or family: (A) Preliminary palliative care consultations. (B) Preliminary counseling and care planning. (C) Preliminary grief and bereavement services. (2) Preliminary services authorized pursuant to this subdivision may be provided concurrently with curative treatment to a person who does not have a terminal prognosis or who has not elected to receive hospice services only by licensed and certified hospices. These services shall be subject to the schedule of benefits under the Medi-Cal program, pursuant to subdivision (w) of Section 14132 of the Welfare and Institutions Code. (h) The department may adopt regulations establishing standards for any or all of the services required to be provided under subdivision (d). The regulations of the department adopted pursuant to this subdivision shall supersede the standards referenced in subdivision (e) to the extent the regulations duplicate or replace those standards. (Amended by Stats. 2024, Ch. 40, Sec. 14. (SB 159) Effective June 29, 2024.)
  85. 1749.5.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2. Licensure [1747 - 1751.5] ( Article 2 added by Stats. 1990, Ch. 1343, Sec. 1. )

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    If a hospice is found to be in substantial compliance during a combined licensing and certification survey, the department must not duplicate the review of similar licensing or certification requirements.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2. Licensure [1747 - 1751.5] ( Article 2 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## 1749.5. The Legislature recognizes that hospices can apply for certification for their hospice programs from the federal Medicare program. If the department has determined during any combined licensing and certification survey that a hospice is in substantial compliance with a requirement, the department shall not be redundant by also reviewing the similar licensing or certification requirements. (Added by Stats. 1990, Ch. 1343, Sec. 1.)
  86. 1750.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2. Licensure [1747 - 1751.5] ( Article 2 added by Stats. 1990, Ch. 1343, Sec. 1. )

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    Hospices must keep licensing compliance, submit annual reports by March 15, and seek state department approval before using program flexibility.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2. Licensure [1747 - 1751.5] ( Article 2 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## 1750. (a) Each new and renewal application for a license under this chapter shall be accompanied by an annual Licensing and Certification Program fee set in accordance with Section 1266. (b) All hospices shall maintain compliance with the licensing requirements. These requirements shall not, however, prohibit the use of alternate concepts, methods, procedures, techniques, space, equipment, personnel qualifications, or the conducting of pilot projects, necessary for program flexibility. Program flexibility shall be carried out with provision for safe and adequate patient care and with prior written approval of the state department. A written request for program flexibility and substantiating evidence supporting the request shall be submitted by the applicant or licensee to the state department. The state department shall approve or deny the request within 60 days of submission. Approval shall be in writing and shall provide for the terms and conditions under which program flexibility is approved. A denial shall be in writing and shall specify the basis therefor. If after investigation the state department determines that a hospice using program flexibility pursuant to this section is operating in a manner contrary to the terms or conditions of the approval for program flexibility, the director shall immediately revoke that approval. (c) Each hospice shall, on or before March 15 of each year, file with the Office of Statewide Health Planning and Development (OSHPD), upon forms furnished by OSHPD, a verified report for the preceding calendar year upon all matters requested by OSHPD. This report may include, but not be limited to, data pertaining to age of patients, diagnostic categories of patients, and number of visits by service provided. (Amended by Stats. 2006, Ch. 74, Sec. 25. Effective July 12, 2006.)
  87. 1751.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2. Licensure [1747 - 1751.5] ( Article 2 added by Stats. 1990, Ch. 1343, Sec. 1. )

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    The state department must issue a hospice license when an applicant applies, complies with the chapter and rules, and pays required fees; it may deny licensure under Section 1755.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2. Licensure [1747 - 1751.5] ( Article 2 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## 1751. (a) Upon an applicant’s filing an application for licensure under this chapter and compliance with this chapter and the rules and regulations adopted by the state department under this chapter, the state department shall issue to the applicant a license to operate as a hospice. Any fees required pursuant to Section 1750 shall be paid before a license is issued. Licensure also may be denied by the state department as specified in Section 1755. (b) Each license issued under this chapter shall expire 24 months from the date of its issuance. (c) A biennial application for the renewal of a license, accompanied by any fee required pursuant to subdivision (b) of Section 1750, shall be filed with the state department no less than 30 days prior to the expiration date of the license. The failure to file an application for renewal within the time required by this subdivision shall result in the expiration of the license. (Added by Stats. 1990, Ch. 1343, Sec. 1.)
  88. 1751.100.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2.5. Hospice Patient Care [1751.100- 1751.100.] ( Article 2.5 added by Stats. 2021, Ch. 478, Sec. 2. )

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    A hospice must give the patient or the patient’s representative verbal and written notice of the patient’s rights and responsibilities during the initial visit, before care is provided, in a way the person understands.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2.5. Hospice Patient Care [1751.100- 1751.100.] ( Article 2.5 added by Stats. 2021, Ch. 478, Sec. 2. ) ## 1751.100. (a) During the initial visit, in advance of furnishing care, a hospice shall provide a patient or the patient’s representative with verbal and written notice of the patient’s rights and responsibilities in a language and manner that the person understands. (b) For purposes of this section, the following definitions apply: (1) “Patient’s representative” means either a person designated by the patient as their representative or a person acting on the patient’s behalf under the authority of the Long-Term Care Patient Representative Program pursuant to Chapter 3.6 (commencing with Section 9260) of Division 8.5 of the Welfare and Institutions Code. (2) “Verbal” means spoken or signed language. (Added by Stats. 2021, Ch. 478, Sec. 2. (AB 1280) Effective January 1, 2022.)
  89. 1751.5.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2. Licensure [1747 - 1751.5] ( Article 2 added by Stats. 1990, Ch. 1343, Sec. 1. )

    Verify source ↗

    The department must issue a hospice agency license if the applicant applies and meets the listed requirements, and it may inspect accredited hospice agencies in specified situations.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2. Licensure [1747 - 1751.5] ( Article 2 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## 1751.5. (a) Notwithstanding any other provision of this chapter, the department shall issue a license to a hospice agency that applies to the department for a hospice agency license and meets all of the following requirements: (1) Is accredited as a hospice by an entity approved by the federal Centers for Medicare and Medicaid Services as a national accreditation organization, and the national accreditation organization forwards to the department copies of all initial and subsequent survey and other accreditation reports or findings. (2) Files an application with fees pursuant to this chapter. (3) Demonstrates and provides evidence to the department of an unmet need of hospice services in the geographic area the hospice agency would serve. (4) Meets any other additional licensure requirements of, or regulations adopted if necessary pursuant to, this chapter that the department identifies, after consulting with the national accreditation organization, as more stringent than the accreditation requirements of the national accreditation organization. (b) The department shall conduct surveys of 5 percent of initial hospice agency licenses approved by accrediting organizations during the previous calendar year to ensure the accreditation requirements are met and to determine compliance with licensing requirements that the department identifies as more stringent than the accreditation requirements. These surveys shall be conducted using a selective sample basis. (c) The department may conduct a survey of an accredited hospice agency not surveyed under subdivision (b) to ensure the accreditation and licensing requirements are met. (d) The department may conduct a survey of an accredited hospice agency to investigate complaints against an accredited hospice agency for substantial noncompliance, as determined by the department, with these accreditation standards or with any applicable licensing requirements. (e) Notwithstanding subdivisions (a), (b), (c), and (d), the department shall retain its full range of authority over accredited hospice agencies to ensure the licensure and accreditation requirements are met. This authority shall include the entire scope of enforcement sanctions and options available for unaccredited hospice agencies. (Amended by Stats. 2022, Ch. 797, Sec. 3. (AB 2673) Effective January 1, 2023.)
  90. 1751.70.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2.3. New License Moratorium [1751.70 - 1751.85] ( Article 2.3 added by Stats. 2021, Ch. 494, Sec. 1. )

    Verify source ↗

    The department may not issue new hospice agency licenses during the moratorium period, except as provided in Section 1751.75 and for certain licensed hospice facilities exempted by subdivision (n) of Section 1250.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2.3. New License Moratorium [1751.70 - 1751.85] ( Article 2.3 added by Stats. 2021, Ch. 494, Sec. 1. ) ## 1751.70. (a) Notwithstanding any other law and except as provided in Section 1751.75, on and after January 1, 2022, and until January 1, 2027, or one year after the date emergency regulations are adopted pursuant to Section 1753.1, the department shall not issue a new license to operate a hospice agency pursuant to this chapter. (b) Hospice facilities licensed under subdivision (n) of Section 1250 are exempt from the moratorium established under subdivision (a). (Amended by Stats. 2024, Ch. 999, Sec. 1. (AB 177) Effective September 30, 2024. Repealed as of January 1, 2027, pursuant to Section 1751.85.)
  91. 1751.75.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2.3. New License Moratorium [1751.70 - 1751.85] ( Article 2.3 added by Stats. 2021, Ch. 494, Sec. 1. )

    Verify source ↗

    The department may grant an exception to the hospice license moratorium if it makes a written finding of demonstrable need, and it must issue a new license when an exception is granted.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2.3. New License Moratorium [1751.70 - 1751.85] ( Article 2.3 added by Stats. 2021, Ch. 494, Sec. 1. ) ## 1751.75. (a) The department may grant an exception to the moratorium imposed by this article upon making a written finding that an applicant for a new license, or with a license application pending on January 1, 2022, has shown a demonstrable need for hospice services in the area where the applicant proposes to operate based on the concentration of all existing hospice services in that area. (b) The department shall issue a new license during the moratorium pursuant to an exception granted under this section in accordance with this chapter, including Article 2 (commencing with Section 1747). (Added by Stats. 2021, Ch. 494, Sec. 1. (SB 664) Effective January 1, 2022. Repealed as of January 1, 2027, pursuant to Section 1751.85.)
  92. 1751.80.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2.3. New License Moratorium [1751.70 - 1751.85] ( Article 2.3 added by Stats. 2021, Ch. 494, Sec. 1. )

    Verify source ↗

    This section says the article does not change the department’s authority to renew a license under the chapter.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2.3. New License Moratorium [1751.70 - 1751.85] ( Article 2.3 added by Stats. 2021, Ch. 494, Sec. 1. ) ## 1751.80. This article shall not be deemed to modify the authority of the department to renew a license pursuant to this chapter. (Added by Stats. 2021, Ch. 494, Sec. 1. (SB 664) Effective January 1, 2022. Repealed as of January 1, 2027, pursuant to Section 1751.85.)
  93. 1751.85.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2.3. New License Moratorium [1751.70 - 1751.85] ( Article 2.3 added by Stats. 2021, Ch. 494, Sec. 1. )

    Verify source ↗

    This article stays in effect until January 1, 2027, and is repealed on that date.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 2.3. New License Moratorium [1751.70 - 1751.85] ( Article 2.3 added by Stats. 2021, Ch. 494, Sec. 1. ) ## 1751.85. This article shall remain in effect only until January 1, 2027, and as of that date is repealed. (Added by Stats. 2021, Ch. 494, Sec. 1. (SB 664) Effective January 1, 2022. Repealed as of January 1, 2027, by its own provisions. Note: Repeal affects Article 2.3, commencing with Section 1751.70.)
  94. 1752.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 3. Enforcement [1752 - 1759] ( Article 3 added by Stats. 1990, Ch. 1343, Sec. 1. )

    Verify source ↗

    A licensed hospice may be inspected by the state department, and department personnel assigned to enforcement may enter and inspect hospice premises and records at reasonable times.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 3. Enforcement [1752 - 1759] ( Article 3 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## 1752. (a) A licensed hospice, at the state department’s option, may periodically be inspected by a duly authorized representative of the state department. Reports of each inspection shall be prepared by the representative who conducted the inspection, upon forms prepared and furnished by the state department, and filed with the state department. The inspection shall be for the purpose of ensuring that this chapter and the rules and regulations adopted under this chapter are being followed. (b) Any officer, employee, or agent of the state department, who has been assigned the responsibility of enforcing this chapter, may enter and inspect any building or premises where hospice care is being provided, as well as any form, record, or file of a licensee at any reasonable time to assure compliance with, or to prevent the violation of, any provision of this chapter. (Added by Stats. 1990, Ch. 1343, Sec. 1.)
  95. 1752.1.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 3. Enforcement [1752 - 1759] ( Article 3 added by Stats. 1990, Ch. 1343, Sec. 1. )

    Verify source ↗

    A person may ask the department to investigate a hospice agency by filing a complaint, and the department must review and investigate complaints subject to stated exceptions and deadlines.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 3. Enforcement [1752 - 1759] ( Article 3 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## 1752.1. (a) Any person may request an investigation of a hospice agency in accordance with this chapter by making a complaint to the department alleging a violation of applicable requirements prescribed by statutes or regulations of this state. A complaint may be made orally or in writing. (b) The substance of the complaint shall be provided to the licensee no earlier than at the time of the investigation. Unless the complainant specifically requests otherwise, neither the substance of the complaint provided to the licensee nor any copy of the complaint or any record published, released, or otherwise made available to the licensee shall disclose the name of any person mentioned in the complaint except the name of any duly authorized officer, employee, or agent of the department conducting the investigation or inspection pursuant to this chapter. (c) (1) Upon receipt of a complaint, the department shall make a preliminary review and, unless the department determines that the complaint is willfully intended to harass a licensee or is without any reasonable basis, it shall make an onsite investigation within 10 business days after receiving the complaint except when the visit would adversely affect the licensing investigation or the investigation of other agencies, including, but not limited to, law enforcement agencies. In either event, the complainant shall be promptly informed of the department’s proposed course of action. (2) Prior to conducting an onsite investigation pursuant to this section, the department shall make a good faith effort, documented in writing, to contact and interview the complainant and inform the complainant of the department’s proposed course of action and the relevant deadline for the department to complete its investigation. To the extent practicable, the officer, employee, or agent of the department who will conduct the investigation shall be the representative who interviews and makes contact with the complainant. (d) Within 10 business days of completing the investigation of a complaint and licensee under this section, the department shall notify the complainant in writing of the department’s determination as a result of the investigation. (Added by Stats. 2022, Ch. 797, Sec. 5. (AB 2673) Effective January 1, 2023.)
  96. 1753.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 3. Enforcement [1752 - 1759] ( Article 3 added by Stats. 1990, Ch. 1343, Sec. 1. )

    Verify source ↗

    The department must make reasonable regulations for this chapter, consult hospice providers when developing them, and set rules for handling legend devices for hospice patients.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 3. Enforcement [1752 - 1759] ( Article 3 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## 1753. (a) The department shall adopt, amend, or repeal, in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, reasonable rules and regulations as may be necessary or proper to carry out the purposes and intent of this chapter and to enable the department to exercise the powers and perform the duties conferred upon it by this chapter. The department shall consult with licensed hospices, small and rural hospices, and volunteer hospice providers in developing regulations pursuant to this chapter. (b) The department shall adopt rules and regulations regarding the purchase, storage, furnishing, and transportation of legend devices for a patient of a hospice. As used in this subdivision, “legend devices” means any device that bears the label “Caution: federal law restricts this device to sale by or on the order of a ____” or words of similar meaning. (Amended by Stats. 2022, Ch. 797, Sec. 6. (AB 2673) Effective January 1, 2023.)
  97. 1753.1.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 3. Enforcement [1752 - 1759] ( Article 3 added by Stats. 1990, Ch. 1343, Sec. 1. )

    Verify source ↗

    The department must adopt emergency regulations by January 1, 2026, and keep the current moratorium on new hospice agency licenses in place until those regulations are adopted.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 3. Enforcement [1752 - 1759] ( Article 3 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## 1753.1. On or before January 1, 2026, the department shall adopt emergency regulations to implement the recommendations in California State Auditor Report 2021-123 on the California Hospice Licensure and Oversight (March 29, 2022). The department shall maintain the general moratorium on new hospice agency licenses until the department adopts the regulations. The emergency regulations shall do all of the following: (a) Establish time and distance standards that define the maximum time and distance hospice agency staff may travel to reach patients, taking into consideration typical traffic conditions and whether the hospice agency is serving patients in rural or urban areas. (b) Establish standards for a hospice agency’s ratio of nurses to patients. (c) Establish a limit for the number of hospice agencies that hospice agency management personnel can be involved with concurrently. (d) Require hospice agency management personnel to meet minimum standards of training and experience, including, but not limited to, hospice-specific training or experience. (e) Establish specific requirements for hospice agency office space. (f) Establish timelines for reporting changes to application information, including, but not limited to, change of mailing address, change of location, and change of name. (Amended by Stats. 2024, Ch. 999, Sec. 2. (AB 177) Effective September 30, 2024.)
  98. 1754.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 3. Enforcement [1752 - 1759] ( Article 3 added by Stats. 1990, Ch. 1343, Sec. 1. )

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    A licensee may, with state department approval, surrender a license for suspension or cancellation, and the state department may reinstate a suspended or canceled license if there is an application showing compliance with the chapter.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 3. Enforcement [1752 - 1759] ( Article 3 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## 1754. (a) Any licensee may, with the approval of the state department, surrender his or her license for suspension or cancellation by the state department. (b) Any license suspended or canceled pursuant to this section may be reinstated by the state department upon receipt of an application showing compliance with this chapter. (Added by Stats. 1990, Ch. 1343, Sec. 1.)
  99. 1755.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 3. Enforcement [1752 - 1759] ( Article 3 added by Stats. 1990, Ch. 1343, Sec. 1. )

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    The department may deny licensure applications or suspend or revoke licenses under this chapter for listed grounds, and related proceedings must follow Government Code Chapter 5 unless there is a conflict.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 3. Enforcement [1752 - 1759] ( Article 3 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## 1755. (a) The department may deny any application for licensure, or suspend or revoke any license issued, under this chapter upon any of the following grounds: (1) Violation by the applicant or licensee of this chapter or any rules and regulations promulgated by the department under this chapter, including improperly certifying a patient as eligible for hospice care. (2) Prior termination from the federal Medicare program or the Medi-Cal program due to noncompliance, or licensure suspension or revocation, of a hospice agency owned, operated, or managed by the applicant or licensee. (3) Demonstration of a pattern and practice of violations of state or federal standards during the last three years of a hospice agency owned, operated, or managed by the applicant or licensee. (4) Presence on the List of Excluded Individuals/Entities of the United States Department of Health and Human Services Office of Inspector General of the applicant or licensee. (5) Any felony conviction of the applicant or licensee for the violation of any law of this state. (6) Any conviction of the applicant or licensee for aiding, abetting, or permitting the commission of any act that is a felony in this state. (7) The applicant’s or licensee’s misrepresentation of a material fact in the application for a license under this chapter. (8) Failure by hospice agency management personnel to cooperate with the department for the purposes of conducting an inspection or complaint investigation. (9) Failure by a hospice agency to report a change in owner, hospice agency management personnel, service area, or location. (b) Proceedings for the denial, suspension, or revocation of licenses under this chapter shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. In the case of a conflict between this chapter and Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, Chapter 5 (commencing with Section 11500) shall control. (Amended by Stats. 2022, Ch. 797, Sec. 8. (AB 2673) Effective January 1, 2023.)
  100. 1756.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 3. Enforcement [1752 - 1759] ( Article 3 added by Stats. 1990, Ch. 1343, Sec. 1. )

    Verify source ↗

    Losing or surrendering a hospice license does not stop the state department from starting or continuing disciplinary action. A revoked license may be reinstated under the cited Government Code section.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 3. Enforcement [1752 - 1759] ( Article 3 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## 1756. (a) The suspension, expiration, or forfeiture by operation of law of a license issued by the state department under this chapter, the suspension or cancellation of a license by order of the state department or by order of a court of law, or the surrender of a license without the written consent of the state department shall not deprive the state department of its authority to institute or continue any disciplinary proceeding against the licensee pursuant to this chapter. (b) Any license revoked pursuant to this chapter may be reinstated pursuant to Section 11522 of the Government Code. (Added by Stats. 1990, Ch. 1343, Sec. 1.)
  101. 1757.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 3. Enforcement [1752 - 1759] ( Article 3 added by Stats. 1990, Ch. 1343, Sec. 1. )

    Verify source ↗

    A person who violates this chapter or its rules and regulations commits a misdemeanor and may be fined up to $500, jailed up to 180 days, or both.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 3. Enforcement [1752 - 1759] ( Article 3 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## 1757. Any person who violates any provision of this chapter or any rule or regulation promulgated under this chapter is guilty of a misdemeanor, and upon conviction thereof, shall be punished by a fine not to exceed five hundred dollars ($500), by imprisonment in the county jail for a period not to exceed 180 days, or by both the fine and imprisonment. (Added by Stats. 1990, Ch. 1343, Sec. 1.)
  102. 1758.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 3. Enforcement [1752 - 1759] ( Article 3 added by Stats. 1990, Ch. 1343, Sec. 1. )

    Verify source ↗

    The director may seek an injunction in superior court to stop a violation or threatened violation of Section 1748.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 3. Enforcement [1752 - 1759] ( Article 3 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## 1758. The director may bring an action to enjoin the violation or threatened violation of Section 1748 in the superior court in and for the county in which the violation occurred or is about to occur. Any proceeding under this section shall conform to the requirements of Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that the director shall not be required to allege facts necessary to show or tending to show the lack of an adequate remedy at law or to allege facts necessary to show or tending to show irreparable damage or loss. (Added by Stats. 1990, Ch. 1343, Sec. 1.)
  103. 1759.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 3. Enforcement [1752 - 1759] ( Article 3 added by Stats. 1990, Ch. 1343, Sec. 1. )

    Verify source ↗

    The district attorney of each county must prosecute violations of this chapter in that county when the state department or its authorized representative applies.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.5. California Hospice Licensure Act of 1990 [1745 - 1759] ( Chapter 8.5 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## ARTICLE 3. Enforcement [1752 - 1759] ( Article 3 added by Stats. 1990, Ch. 1343, Sec. 1. ) ## 1759. The district attorney of every county shall, upon application by the state department or its authorized representative, institute and conduct the prosecution within his or her county of any action for violation of this chapter. (Added by Stats. 1990, Ch. 1343, Sec. 1.)
  104. 1760.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. )

    Verify source ↗

    The Legislature intended to create a state-department licensing program for pediatric day health and respite care facilities.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. ) ## 1760. In enacting this chapter, it is the intent of the Legislature to create, within the state department, a program for licensing pediatric day health and respite care facilities to serve the needs of medically fragile and terminally ill children and their families. (Added by Stats. 1990, Ch. 1227, Sec. 8. Effective September 24, 1990.)
  105. 1760.2.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. )

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    This section defines key terms for pediatric day health and respite care facilities and limits 24-hour inpatient respite care to 30 days per patient per calendar year.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. ) ## 1760.2. As used in this chapter, the following definitions shall apply: (a) (1) “Pediatric day health and respite care facility” means a facility that provides an organized program of therapeutic social and day health activities and services and limited 24-hour inpatient respite care to medically fragile children 21 years of age or younger, including terminally ill and technology-dependent patients, except as provided in paragraph (2) and Section 1763.4. (2) An individual who is 22 years of age or older may continue to receive care in a pediatric day health and respite care facility if the facility receives approval from the state department for a Transitional Health Care Needs Optional Service Unit pursuant to Section 1763.4. A patient who previously received services from a pediatric day health and respite care facility, who is 22 years of age or older, and who satisfies the requirements of Section 1763.4, may also receive services in an optional service unit. (b) “Medically fragile” means having an acute or chronic health problem that requires therapeutic intervention and skilled nursing care during all or part of the day. Medically fragile problems include, but are not limited to, HIV disease, severe lung disease requiring oxygen, severe lung disease requiring ventilator or tracheostomy care, complicated spina bifida, heart disease, malignancy, asthmatic exacerbations, cystic fibrosis exacerbations, neuromuscular disease, encephalopathies, and seizure disorders. (c) “Technology-dependent patient” means a person who, from birth, has a chronic disability, requires the routine use of a specific medical device to compensate for the loss of use of a life-sustaining body function, and requires daily, ongoing care or monitoring by trained personnel. (d) “Respite care” means day and 24-hour relief for the parent or guardian and care for the patient. 24-hour inpatient respite care includes, but is not limited to, 24-hour nursing care, meals, socialization, and developmentally appropriate activities. As used in this chapter, “24-hour inpatient respite care” is limited to no more than 30 intermittent or continuous whole calendar days per patient per calendar year. (e) “Comprehensive case management” means locating, coordinating, and monitoring services for the eligible patient population and includes all of the following: (1) Screening of patient referrals to identify those persons who can benefit from the available services. (2) Comprehensive patient assessment to determine the services needed. (3) Coordinating the development of an interdisciplinary comprehensive care plan. (4) Determining individual case cost effectiveness and available sources of funding. (5) Identifying and maximizing informal sources of care. (6) Ongoing monitoring of service delivery to determine the optimum type, amount, and duration of services provided. (f) “License” means a basic permit to operate a pediatric day health and respite care facility. With respect to a health facility licensed pursuant to Chapter 2 (commencing with Section 1250), “license” means a special permit authorizing the health facility to provide pediatric day health and respite care services as a separate program in a distinct part of the facility. (g) “State department” means the State Department of Public Health. (Amended by Stats. 2016, Ch. 86, Sec. 181. (SB 1171) Effective January 1, 2017.)
  106. 1760.4.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. )

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    This section requires the state department to make licensing regulations and license pediatric day health and respite care facilities, and it sets committee and compliance rules for those facilities.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. ) ## 1760.4. (a) The state department shall develop and adopt regulations for the licensure of, and shall license, pediatric day health and respite care facilities. The regulations shall include minimum standards for the following: (1) Adequacy, safety, and sanitation of the physical plant and equipment. (2) Staffing with duly qualified personnel. (3) Training of the staff. (4) Providing the services offered. These regulations shall be filed with the Secretary of State no later than July 1, 1993. (b) The state department shall establish within the state department an advisory committee of experts to assist in the development of the regulations required pursuant to this section. A representative of the state department shall act as chairperson of the committee. The members of the committee shall serve without compensation, but shall be reimbursed by the state department for all necessary expenses incurred in the actual performance of their duties. To the extent sufficient funds have been appropriated in the Budget Act, the state department may provide staff support to the committee as the state department deems is necessary for the conduct of the committee’s business. The committee shall meet at the state director’s pleasure until the time that the proposed regulations are presented for adoption at the public hearing. (c) Pending adoption of the regulations pursuant to subdivision (b), an entity may be licensed as a pediatric day health and respite care facility if it meets interim regulations administered by the state department for congregate living health facilities pursuant to Section 1267.13. (d) (1) In addition to the exceptions from regulations described in subdivision (n) of Section 1267.13, a pediatric day health and respite care facility shall not be required to conform to the following regulations contained in Chapter 3 of Division 5 of Title 22 of the California Code of Regulations: 72329.1, 72353, 72359, 72363, 72365, 72371, subdivisions (b) and (c) of Section 72375, subdivision (b) of Section 72377, 72516, 72525, and 72531. (2) A pediatric day health and respite care facility shall not be required to meet the requirements of Section 72367 of Article 3 of Chapter 3 of Division 5 of Title 22 of the California Code of Regulations, except that medications brought by or with the patient on admission to the facility shall not be used unless, after admission by the facility, the contents of the containers have been examined and positively identified by a licensed nurse, in accordance with his or her scope of practice. (e) A pediatric day health and respite care facility shall have a patient care committee to address quality of care provided in the facility, including, but not limited to, patient care policies, pharmacy services, and infection control. (1) The pediatric day health and respite care facility shall maintain minutes of every committee meeting and indicate the names of members present, the date, the length of the meeting, the subject matter discussed, and any action taken. (2) The patient care committee shall include the medical director, dietician, pharmacist, nursing staff, nurse supervisor, center administrator or director, and other staff as may be required by facility policies and procedures. (3) The patient care committee shall meet at least twice per year or more often if a need or problem is identified by the committee. (4) The patient care committee shall be responsible for all of the following: (A) Reviewing and approving all policies relating to patient care. Based on reports received from the pediatric day health and respite care facility’s administrator, the committee shall review the effectiveness of policy implementation and shall make recommendations to the administrator of the facility for the improvement of patient care. The committee shall review patient care policies annually and revise the policies as necessary. The committee’s minutes shall list the policies the committee reviewed. (B) Infection control in the facility, which shall include, but not be limited to, establishing, reviewing, monitoring, and approving policies and procedures for investigating, controlling, and preventing infections in the facility, and maintaining, reviewing, and reporting statistics of the number, types, sources, and locations of infections within the pediatric day health and respite care facility. (C) Establishing, reviewing, and monitoring the storage and administration of drugs and biologicals, reviewing and taking appropriate action based on any findings from a pharmacist hired to consult with the committee and internal quality assurance reviews, and recommending improvements of services to the administrator of the facility. (f) (1) A pediatric day health and respite care facility shall comply with licensing requirements. The state department may, upon written request of an applicant or licensee, approve the use of alternate concepts, methods, procedures, techniques, equipment, personnel qualifications, or conducting pilot projects, provided those alternatives are carried out with safe and adequate care for the patients and with the prior written approval of the state department. The state department’s approval shall provide for the terms and conditions under which the alternatives are granted. An applicant’s or licensee’s written request shall be accompanied by substantiating evidence supporting the request pursuant to this paragraph. (2) The state department’s review of written requests submitted under this subdivision shall consider the unique nature of services provided to individuals served by the pediatric day health and respite care facility when compared to the requirements for congregate living health facilities for individuals requiring inpatient care. (3) If the state department grants an approval under this subdivision, a pediatric day health and respite care facility shall immediately post that approval, or a true copy of that approval, adjacent to the facility’s license. (Amended by Stats. 2015, Ch. 206, Sec. 2. (AB 1147) Effective August 13, 2015.)
  107. 1760.5.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. )

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    The annual Licensing and Certification Program fee for a pediatric day health and respite care facility must be set according to Section 1266.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. ) ## 1760.5. The annual Licensing and Certification Program fee for a pediatric day health and respite care facility, as defined in Section 1760.2, shall be set in accordance with Section 1266. (Added by Stats. 2006, Ch. 74, Sec. 26. Effective July 12, 2006.)
  108. 1760.6.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. )

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    A pediatric day health and respite care facility must provide certain core services, and it may also provide additional listed services.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. ) ## 1760.6. (a) A pediatric day health and respite care facility shall provide all of the following services: (1) Medical. (2) Nursing. (3) Pharmacy. (4) Nutrition. (5) Socialization. (6) Developmentally appropriate activities. (b) Services which may be provided by a pediatric day health and respite care facility include, but are not limited to, any of the following: (1) Physical therapy. (2) Developmental services. (3) Occupational and speech therapy. (4) Educational and psychological services. (5) Respite care. (6) Instruction for parents or guardians. (7) Comprehensive case management, if not otherwise available for the client. (Added by Stats. 1990, Ch. 1227, Sec. 8. Effective September 24, 1990.)
  109. 1760.7.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. )

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    Pediatric day health and respite care facilities must follow detailed rules for supplying, ordering, administering, recording, and handling medications, and for keeping medication records.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. ) ## 1760.7. A pediatric day health and respite care facility shall provide pharmacy services that satisfy all of the following: (a) (1) Medications shall be supplied to the licensed nursing personnel of the pediatric day health and respite care facility by the patient’s parent, foster parent, or legal guardian in the original dispensing container that specifies administration instructions. (2) Medications shall be administered only upon written and signed orders of the patient’s attending physician. (3) The pediatric day health and respite care facility shall not order medications from a pharmacy or take delivery of medications from a pharmacy. (4) The pediatric day health and respite care facility shall not accept a patient into the facility if the patient’s medications have expired or are scheduled to expire during the patient’s stay at the facility. (b) (1) Physician orders shall be current and maintained in the patient’s medical record at the pediatric day health and respite care facility. Verbal orders from the attending physician for services to be rendered at the facility may be received and recorded by licensed nursing personnel in the patient’s medical record at the facility and shall be signed by the attending physician within 30 working days. (2) Medications shall not be administered to a patient unless the facility first verifies that the medication was ordered by a physician. Verification may be obtained by contacting the physician’s office or by being provided with a copy of the physician’s order for the medication. (c) The pediatric day health and respite care facility shall maintain records of medication administered for at least one year, unless a longer period is required by state or federal law. The records of medication administered shall be a part of the patient’s plan of care. (d) The pediatric day health and respite care facility may treat changes in the patient’s condition, such as new onset pain, nausea, diarrhea, infections, or other similar changes, in accordance with the patient’s plan of care if the patient has been prescribed medications to treat these anticipated symptoms, and the treatment does not present a risk to the health and safety of themselves, other patients, staff, or other individuals with whom the patient may come into contact. A patient who presents with symptoms that are not anticipated or planned for in the plan of care shall not remain in the facility. (e) Other requirements as specified in subdivision (a) of Section 72375, and subdivision (a) of Section 72377, of Article 3 of Chapter 3 of Division 5 of Title 22 of the California Code of Regulations. (f) Only licensed nursing personnel, acting in accordance with their scope of practice, may accept, inspect the condition of medical containers, and record the receipt and the return of all medications in a pediatric day health and respite care facility. The facility shall comply with Section 72313 of Title 22 of the California Code of Regulations with regard to the administration of medication. (g) A pediatric day health and respite care facility shall comply with all applicable state and federal laws regarding the labeling condition of medication containers. (Added by Stats. 2015, Ch. 206, Sec. 3. (AB 1147) Effective August 13, 2015.)
  110. 1760.8.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. )

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    A pediatric day health and respite care facility may set admission criteria, but the state department must approve those criteria. A child accepted for care must meet the listed admission criteria.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. ) ## 1760.8. (a) A pediatric day health and respite care facility may establish admission criteria based upon the compatibility of the developmental needs of the persons served and the facility’s ability to meet those needs. All admission criteria established by the facility shall be approved by the state department. (b) A child accepted for care in a pediatric day health and respite care facility shall satisfy all of the following criteria: (1) Be medically stable, as determined by the child’s attending physician and surgeon. (2) Be under the care of a physician and surgeon who approves the plan of care. (3) Have current immunization records unless medically contraindicated as stated by the child’s attending physician and surgeon at the time of admission and pose no significant risk of infection to others in the facility. (4) Have the consent of the parent or legal guardian for the admission. (Added by Stats. 1990, Ch. 1227, Sec. 8. Effective September 24, 1990.)
  111. 1760.9.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. )

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    A pediatric day health and respite care facility may adopt policies and procedures banning smoking by patients, parents, staff, visitors, or consultants inside the facility or on the premises, if the ban is stated in the admission agreement and posted notices are provided.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. ) ## 1760.9. A pediatric day health and respite care facility may implement policies and procedures that prohibit smoking by patients, parents, staff, visitors, or consultants within the facility or on the premises, if the prohibition is clearly stated in the admission agreement, and notices are posted at the facility. (Added by Stats. 2015, Ch. 206, Sec. 4. (AB 1147) Effective August 13, 2015.)
  112. 1761.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. )

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    Pediatric day health and respite care facilities must be separately licensed.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. ) ## 1761. Pediatric day health and respite care facilities shall be separately licensed. (Added by Stats. 1990, Ch. 1227, Sec. 8. Effective September 24, 1990.)
  113. 1761.2.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. )

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    Pediatric day health and respite care facilities must follow the same fire and seismic safety standards that apply to comparable community care facilities, and no extra state or local fire or seismic requirements apply.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. ) ## 1761.2. (a) Pediatric day health and respite care facilities shall meet the same fire safety standards adopted by the State Fire Marshal that apply to community care facilities, as defined in Section 1502, of similar size and with clients of similar age and ambulatory status. No other state or local requirements relating to fire safety shall apply to these facilities and the requirements in this section shall be uniformly enforced by state and local fire authorities. (b) Pediatric day health and respite care facilities shall meet the same seismic safety standards that apply to community care facilities, as defined in Section 1502, of similar size and with clients of similar age and ambulatory status. No additional state or local requirements relating to seismic safety shall apply to these facilities. (Added by Stats. 1990, Ch. 1227, Sec. 8. Effective September 24, 1990.)
  114. 1761.4.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. )

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    A small pediatric day health and respite care facility (six beds or fewer) is treated as a residential use for zoning purposes.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. ) ## 1761.4. A pediatric day health and respite care facility of six beds or less shall be considered a residential use of property for purposes of any zoning ordinance or law related to the residential use of property. This section does not prohibit any city, county, or other local public entity from placing restrictions on building heights, setback, lot dimensions, or placement of signs of a pediatric day health and respite care facility as long as those restrictions are identical to those applied to single-family residences. (Added by Stats. 1990, Ch. 1227, Sec. 8. Effective September 24, 1990.)
  115. 1761.6.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. )

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    A pediatric day health and respite care facility must visibly post its license, or a true copy, where the public can see it.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. ) ## 1761.6. A pediatric day health and respite care facility shall conspicuously post the license, or a true copy thereof, in a location accessible to public view. (Added by Stats. 1990, Ch. 1227, Sec. 8. Effective September 24, 1990.)
  116. 1761.8.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. )

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    Pediatric day health and respite care facilities are not subject to architectural plan review or field inspection by the Office of Statewide Health Planning and Development, but applicants must submit proof of local building code compliance when applying for licensure.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. ) ## 1761.8. A pediatric day health and respite care facility shall not be subject to architectural plan review or field inspection by the Office of Statewide Health Planning and Development. However, as part of the application for licensure, an applicant shall submit evidence of compliance with local building code requirements. In addition, the physical environment shall be adequate to provide the level of care and service required by the clients of the facility as determined by the state department. (Added by Stats. 1990, Ch. 1227, Sec. 8. Effective September 24, 1990.)
  117. 1761.85.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. )

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    These sections do not prohibit certain alternate design, equipment, and space-use approaches if the local building authority gives written approval.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. ) ## 1761.85. Sections 1761.2, 1761.4, and 1761.8 do not prohibit the use of alternate space utilization, new concepts of design, treatment techniques, equipment and alternate finish materials, or other flexibility, if written approval is granted by the local building authority. (Added by Stats. 2015, Ch. 206, Sec. 5. (AB 1147) Effective August 13, 2015.)
  118. 1762.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. )

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    To get a license for a pediatric day health and respite care facility, the applicant must file a verified application with the state department. The state department must start an initial licensing inspection of a Transitional Health Care Needs Optional Service Unit within 60 days after receiving a completed application.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. ) ## 1762. (a) In order to obtain a license under the provisions of this chapter to establish, conduct, or maintain a pediatric day health and respite care facility, a person, entity, political subdivision of the state, or governmental agency shall file with the state department a verified application on a form prescribed, prepared, and furnished by the state department, containing information as may be required by the state department for the proper administration and enforcement of this chapter. (b) The state department shall initiate an initial licensing inspection of a Transitional Health Care Needs Optional Service Unit within 60 days of receipt of a completed application. (Added by Stats. 2015, Ch. 206, Sec. 6. (AB 1147) Effective August 13, 2015.)
  119. 1762.2.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. )

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    This section lets the state department issue a provisional license for a pediatric day health and respite care facility only under stated conditions, requires inspections and possible renewal, and lets a denied applicant request a hearing.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. ) ## 1762.2. (a) If a pediatric day health and respite care facility or an applicant for a license has not been previously licensed, the state department shall issue a provisional license to the facility only as provided in this section. (b) The state department shall not issue a provisional license unless, after an onsite survey by the state department, the state department finds that the pediatric day health and respite care facility is in substantial compliance with the requirements of this chapter. (c) A provisional license to operate a pediatric day health and respite care facility shall terminate six months from the date of issuance, or the date that the state department is able to conduct a full and complete inspection, whichever is later. (d) Within 30 days prior to the termination of a provisional license, the state department shall give the facility a full and complete inspection, and, if the facility meets all applicable requirements for licensure, a regular license shall be issued. If the facility does not meet the requirements for licensure but has made substantial progress towards meeting the requirements, as determined by the state department, the initial provisional license shall be renewed for six months. (e) If the state department determines that there has not been substantial progress towards meeting licensure requirements at the time of the first full inspection provided by this section, or, if the state department determines upon its inspection made within 30 days of the termination of a renewed provisional license that there is lack of full compliance with the requirements, the state department shall not issue a further license. (f) If an applicant for a provisional license to operate a pediatric day health and respite care facility has been denied provisional licensing by the state department, the applicant may contest the denial by filing a request for a hearing pursuant to Section 131071. (g) The state department shall not apply less stringent criteria when granting a provisional license pursuant to this section than it applies when granting a permanent license. (Added by Stats. 2015, Ch. 206, Sec. 7. (AB 1147) Effective August 13, 2015.)
  120. 1762.4.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. )

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    Licenses under this chapter expire after 12 months, and renewal requires payment of the fee on time and submission of the renewal with the necessary fee.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. ) ## 1762.4. (a) A license issued under this chapter shall expire 12 months from the date of its issuance. The licensee shall pay a fee, not to exceed the reasonable regulatory cost to the state department, to the state department annually, not less than 30 days prior to expiration date, subject to the state department mailing the notice of renewal in accordance with subdivision (b). (b) (1) At least 45 days prior to the expiration of a license issued pursuant to this chapter, the state department shall mail a notice for renewal to the licensee. (2) A license renewal shall be submitted with the necessary fee in accordance with subdivision (a). A license shall be deemed renewed upon payment of the necessary fee, commencing from the license’s expiration date. If the requirements of this section are satisfied, the state department shall issue a license to the facility by the expiration date of the license to ensure the provider remains in good standing. The facility’s license shall be mailed within 15 calendar days after the date the state department receives the renewal fee. (Added by Stats. 2015, Ch. 206, Sec. 8. (AB 1147) Effective August 13, 2015.)
  121. 1762.6.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. )

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    Licensed pediatric day health and respite care facilities must be periodically inspected by a state department representative, and the inspection reports must be prepared and filed with the state department.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. ) ## 1762.6. Every pediatric day health and respite care facility for which a license has been issued shall be periodically inspected by a duly authorized representative of the state department. Reports of each inspection shall be prepared by the representative upon forms prepared and furnished by the state department and filed with the state department. The inspection shall be for the purpose of ensuring that the pediatric day health and respite care facility is complying with the provisions of this chapter and the rules and regulations of the state department. (Added by Stats. 2015, Ch. 206, Sec. 9. (AB 1147) Effective August 13, 2015.)
  122. 1762.8.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. )

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    The state department may deny, suspend, or revoke a license under this chapter if one of the listed grounds exists.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. ) ## 1762.8. The state department may deny an application for, or suspend or revoke a license issued under the provisions of this chapter in the manner provided in Section 1763 upon, any of the following grounds: (a) A serious violation by the licensee of any of the provisions of this chapter, of any other law, or of the rules and regulations promulgated under this chapter that jeopardizes the health and safety of patients. (b) Aiding, abetting, or permitting the commission of any illegal act. (c) Willful omission or falsification of a material fact in the application for a license. (Added by Stats. 2015, Ch. 206, Sec. 10. (AB 1147) Effective August 13, 2015.)
  123. 1763.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. )

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    Certain license-denial, suspension, revocation, and approval-withdrawal proceedings must follow Section 131071. License loss does not stop the state department from starting or continuing discipline against the licensee.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. ) ## 1763. Proceedings for the denial, suspension, or revocation of licenses, or denial or withdrawal of approval under this chapter shall be conducted in accordance with Section 131071. The suspension, expiration, or forfeiture by operation of law of a license issued by the state department, its suspension, forfeiture, or cancellation by order of the state department or by order of a court, or its surrender without the written consent of the state department, shall not deprive the state department of its authority to institute or continue a disciplinary proceeding against the licensee upon any ground provided by law or to enter an order suspending or revoking the license or otherwise taking disciplinary action against the licensee on any of those grounds. (Added by Stats. 2015, Ch. 206, Sec. 11. (AB 1147) Effective August 13, 2015.)
  124. 1763.2.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. )

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    The state department may grant reasonable exceptions to chapter standards if patient care, health, and safety are not compromised, and the exception must be approved in writing with terms and conditions. An applicant must request the exception in writing and include detailed supporting documentation.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. ) ## 1763.2. The state department has authority to make reasonable accommodation for exceptions to the standards in this chapter if the health, safety, and quality of patient care is not compromised. Prior written approval communicating the terms and conditions under which the exception is granted shall be required. An applicant shall request an exception in writing accompanied by detailed supporting documentation. (Added by Stats. 2015, Ch. 206, Sec. 12. (AB 1147) Effective August 13, 2015.)
  125. 1763.4.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. )

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    This section defines terms and sets rules for optional service units in pediatric day health and respite care facilities.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 8.6. Pediatric Day Health and Respite Care Facilities [1760 - 1763.4] ( Chapter 8.6 added by Stats. 1990, Ch. 1227, Sec. 8. ) ## 1763.4. (a) For purposes of this chapter, the following definitions shall apply: (1) “Distinct part” means an identifiable unit accommodating beds or patient space, including, but not limited to, contiguous beds or patient space, a wing, floor, or building approved by the state department for a specific purpose. (2) “Older children” means patients who are 18 to 21 years of age, inclusive. (3) “Transitional Health Care Needs Optional Service Unit” or “optional service unit” means a functional unit of a pediatric day health and respite care facility that is organized, staffed, and equipped to provide care to individuals who are 22 years of age or older. (A) Patients receiving care in the optional service unit shall be in age-appropriate groupings as provided for in the pediatric day health and respite care facility’s policies and procedures. Older children are not precluded from being cared for in the same optional service unit as the patients who are 22 years of age or older. If a pediatric day health and respite care facility proposes to provide care to older children in the optional service unit, the facility shall have policies, procedures, equipment, and supplies to meet the needs of those patients. Patients who are 15 to 17 years of age, inclusive, may also be considered for care in the optional service unit if the pediatric day health and respite care facility obtains an individual age waiver from the regional center, with the concurrence of the department. A pediatric day health and respite care facility is not required to operate an optional service unit. (B) In order to continue receiving care in the pediatric day health and respite care facility, patients who are 22 years of age or older shall have a developmental age of 18 years of age or younger, as evidenced by the patient’s Individual Education Plan (IEP), Regional Center Assessment, physician’s assessment, or other assessment using a standardized assessment tool that is nationally recognized in the field. A patient who previously received services from a pediatric day health and respite care facility, who is 22 years of age or older, and who satisfies the requirements of this subparagraph may also receive services in an optional service unit. (b) An optional service unit shall be subject to the approval of the state department. A pediatric day health and respite care facility desiring approval for an optional service unit shall file an application on forms furnished by the state department. The state department shall list on the facility license each optional service for which approval is granted. (c) Except as provided in subparagraph (A) of paragraph (3) of subdivision (a), care for patients who are 22 years of age or older shall be provided in a distinct part of the pediatric day health and respite care facility or optional service unit, separate from the area where care is provided to patients who are 21 years of age or younger. The facility shall establish and implement policies and procedures for determining the age ranges of patients who are cared for in the optional service unit. These policies and procedures shall include, but not be limited to, consideration of the patient’s chronological age, developmental age, and size, and shall reflect the needs of individual patients through a comprehensive assessment. (d) The pediatric day health and respite care facility shall ensure that its staffing and equipment are sufficient to provide services to patients who are 22 years of age or older. (e) A Transitional Health Care Needs Optional Service Unit shall have written policies and procedures for the management of the service. The policies and procedures shall be established and implemented by the patient care policy committee described in Section 1760.4 (f) (1) The state department may review and approve the policies and procedures for an optional service unit. (2) The State Department of Developmental Services and the regional centers may review the policies and procedures for an optional service unit. (Added by Stats. 2015, Ch. 206, Sec. 13. (AB 1147) Effective August 13, 2015.)
  126. 1765.101.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. )

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    This chapter is known as the Mobile Health Care Services Act and may be cited by that name.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. ) ## 1765.101. This chapter shall be known, and may be cited as, the Mobile Health Care Services Act. (Added by Stats. 1993, Ch. 1020, Sec. 2. Effective January 1, 1994.)
  127. 1765.105.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. )

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    This section defines “parent facility” and “mobile service unit/mobile unit,” and limits one department action regarding new licensure categories.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. ) ## 1765.105. As used in this chapter, the following definitions shall apply: (a) “Parent facility” means a health facility licensed pursuant to Chapter 2 (commencing with Section 1250) of Division 2, or a clinic licensed pursuant to Chapter 1 (commencing with Section 1200) of Division 2. (b) (1) “Mobile service unit” or “mobile unit” means a special purpose commercial coach as defined in Section 18012.5, or a commercial coach as defined in Section 18001.8, that provides services as set forth in Section 1765.110, and meets any of the following criteria: (A) Is approved pursuant to this chapter by the state department as a service of a licensed health facility, as defined in Section 1250. (B) Is approved by the state department pursuant to this chapter as a service of a licensed clinic, as defined in Section 1200. (C) Is licensed pursuant to this chapter by the state department as a clinic, as defined in Section 1200. (D) Is licensed pursuant to this chapter as an “other” type of approved mobile unit by the state department. “Other” types of approved mobile units shall be limited to mobile units performing services within new health facility or clinic licensure categories created after the effective date of this chapter. The State Department of Health Services shall not create a new health facility or clinic licensure category under this subparagraph absent a legislative mandate. (2) “Mobile service unit” or “mobile unit” does not mean a modular, relocatable, or transportable unit that is designed to be placed on a foundation when it reaches its destination, nor does it mean any entity that is exempt from licensure pursuant to Section 1206. (Added by Stats. 1993, Ch. 1020, Sec. 2. Effective January 1, 1994.)
  128. 1765.110.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. )

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    This section states the purpose of the chapter: to allow mobile units to provide medical, diagnostic, and treatment services.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. ) ## 1765.110. The purpose of this chapter is to provide for the use of mobile units to provide medical, diagnostic, and treatment services, in order to help ensure the availability of quality health care services for patients who receive care in remote or underserved areas and for patients who need specialized types of medical care provided in a cost-effective way. (Added by Stats. 1993, Ch. 1020, Sec. 2. Effective January 1, 1994.)
  129. 1765.115.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. )

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    A mobile unit may operate in one of three approved ways.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. ) ## 1765.115. A mobile unit may operate as one of the following: (a) As an adjunct to a licensed health facility or to a licensed clinic. (b) As an independent-freestanding clinic pursuant to Chapter 1 (commencing with Section 1200). (c) As an “other” type of approved mobile unit. (Added by Stats. 1993, Ch. 1020, Sec. 2. Effective January 1, 1994.)
  130. 1765.117.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. )

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    The state department must charge applicants a licensure fee, and it may not add a fee just because the service is provided in a mobile unit.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. ) ## 1765.117. The state department shall charge applicants a licensure fee as follows: (a) Pursuant to Chapter 1 (commencing with Section 1200), or Chapter 2 (commencing with Section 1250). (b) Pursuant to the applicable section of the Health and Safety Code that creates a new health facility or clinic licensure category. (c) No additional licensure fee will be imposed solely because a service is to be provided in a mobile unit. (Added by Stats. 1993, Ch. 1020, Sec. 2. Effective January 1, 1994.)
  131. 1765.120.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. )

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    Before licensure, a mobile health care unit must meet the listed criteria.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. ) ## 1765.120. Compliance with all of the following criteria shall be required prior to licensure: (a) The mobile unit shall comply with the applicable requirements of the Vehicle Code, and shall have a vehicle identification number. (b) The mobile unit shall bear an insignia issued by the Department of Housing and Community Development pursuant to Section 18026. (Added by Stats. 1993, Ch. 1020, Sec. 2. Effective January 1, 1994.)
  132. 1765.125.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. )

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    A mobile service unit generally cannot be operated without a license, unless an exemption applies. Operators who were already running mobile units on January 1, 1994 had to apply by March 1, 1994 and stop operating if the application was denied. After initial licensure, the department generally may not require every operating site to be separately licensed or approved, except in the stated area-variation case.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. ) ## 1765.125. (a) Except as provided in subdivision (b), no person, political subdivision of the state, or governmental agency shall operate a mobile service unit without first obtaining a license or an addition to existing licensure under this chapter unless exempt from licensure under Section 1206. (b) Any person, political subdivision of the state, or governmental agency, that was operating a mobile unit as of January 1, 1994, may continue to operate the mobile unit only under the following conditions: (1) The person, political subdivision of the state, or governmental agency shall apply to the state department for a mobile unit license, or an addition to existing licensure, via a request for licensure under this chapter by March 1, 1994. (2) The person, political subdivision of the state, or governmental agency shall cease operating the mobile unit upon a final decision of the state department denying the application for licensure or addition to licensure under this chapter. (c) Notwithstanding any other provision of this chapter, after the initial licensure, or the initial approval of the addition to existing licensure of a parent facility, to operate a mobile service unit, the department shall not require that each site where the mobile unit operates be licensed or approved by the department unless the mobile unit will be operating outside of the proposed area or areas specified in the application pursuant to paragraph (4) of subdivision (b) of Section 1765.130. (Amended by Stats. 2002, Ch. 111, Sec. 2. Effective January 1, 2003.)
  133. 1765.130.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. )

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    Applicants must file the required application with the state department, and certain mobile-unit licensing applicants must provide detailed information; the state department must inspect before approval and post or list licenses and services as specified.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. ) ## 1765.130. (a) Any applicant under this chapter shall file with the state department an application. The application shall be on forms prescribed and furnished by the state department that shall contain any information as may be required by the state department for the proper administration and enforcement of this chapter. (b) An applicant health facility or clinic pursuant to this chapter shall submit an application to the licensing and certification district office of the state department stating with specificity all of the following: (1) The proposed service to be provided. (2) The expected hours and days of operation. (3) The type and the manufacturer of the mobile unit contemplated. (4) The proposed area or areas where the mobile unit will be providing services. (c) An applicant for licensure as an independently licensed clinic under this chapter shall submit a verified application to the state department on the appropriate forms for the type of clinic for which it wishes to obtain licensure. (d) Prior to granting approval to an applicant parent facility for operation of a mobile unit under the parent facility’s existing licensure pursuant to this chapter, or prior to granting license for an independent mobile unit, the state department shall conduct an onsite inspection, including, but not limited to, a review of policies and procedures. (e) Supplemental services offered via mobile units shall be listed by the state department as an approved or supplemental service on the license of the parent facility. (f) Licenses issued by the state department authorizing operation of a mobile unit as an addition to existing parent facility licensure shall be posted at the parent facility. Licenses authorizing operation of a clinic as a mobile unit shall be posted at the administrative headquarters of the licensee. A true copy of the license shall be posted within the mobile unit. (Added by Stats. 1993, Ch. 1020, Sec. 2. Effective January 1, 1994.)
  134. 1765.135.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. )

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    An applicant for a license under this chapter must meet the chapter’s requirements and file a completed application with the state department.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. ) ## 1765.135. (a) To qualify for a license under this chapter, an applicant shall satisfy all the requirements of this chapter, the applicable requirements of Chapter 1 (commencing with Section 1200) or of Chapter 2 (commencing with Section 1250) of Division 2, and all applicable regulations. (b) The applicant shall file a completed application with the state department. (Added by Stats. 1993, Ch. 1020, Sec. 2. Effective January 1, 1994.)
  135. 1765.140.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. )

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    Mobile health care units must follow the same requirements and regulations as the parent facility or clinic, but they use the mobile unit requirements instead of the usual physical plant requirements.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. ) ## 1765.140. (a) Mobile units that provide services as an addition to the existing license of a parent facility shall be subject to the same requirements and regulations as the parent facility, except that, instead of complying with the physical plant requirements applicable to the parent facility, they shall comply with the mobile unit requirements contained in this chapter. (b) Clinics licensed as mobile units shall be subject to the same requirements and regulations as any other clinic, except that, instead of complying with the physical plant requirements applicable to the clinic, the mobile unit shall comply with the mobile unit requirements contained in this chapter. (Added by Stats. 1993, Ch. 1020, Sec. 2. Effective January 1, 1994.)
  136. 1765.145.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. )

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    Mobile health care units are subject to department inspections and periodic compliance reviews, and department staff may inspect related premises and records at reasonable times.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. ) ## 1765.145. (a) A licensee using mobile services pursuant to this chapter shall, at the department’s option, be periodically inspected, in addition to any inspections required pursuant to the parent facility licensure requirements, by a duly authorized representative of the department. Reports of each inspection shall be prepared by the representative conducting it upon forms prepared and furnished by the department and filed with the department. The inspection shall be for the purpose of ensuring that this chapter and the rules and regulations of the department adopted under this chapter are being followed. (b) Any officer, employee, or agent of the department may enter and inspect any building, premises, or vehicle and may have access to and inspect any document, file, or other record, of a mobile unit or of a parent facility operating a mobile unit, at any reasonable time to assure compliance with, or to prevent violation of, this chapter. (c) After the initial licensure, or the initial approval of the addition to existing licensure of a parent facility, the mobile unit shall be periodically reviewed for compliance. When approved as additions to the existing licensure of a parent facility, reviews shall be conducted as a part of the parent facility’s regular inspection. When the mobile unit is an independently licensed clinic, it shall be reviewed in accordance with the licensing inspection schedule for clinics. (d) Demonstration of a mock emergency drill shall be observed by department staff in the mobile unit on a site where patient mobility is limited. (Amended by Stats. 2006, Ch. 538, Sec. 366. Effective January 1, 2007.)
  137. 1765.150.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. )

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    Mobile health care units must meet size, equipment, and sanitation standards, and the licensee must give the department at least 24 hours’ notice before first-time operation at a site.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. ) ## 1765.150. (a) The mobile unit shall be of sufficient size and shall be arranged in a manner that is appropriate for the provision of those health care services that it is licensed to provide. (b) The mobile unit shall be equipped with appropriate utilities for the comfort and safety of patients. The Office of Statewide Health Planning and Development shall review and approve hospital-provided utility connections for mobile units that require utility hookups with general acute care hospitals. (c) The mobile unit shall be maintained in good repair and in a clean and sanitary manner. (d) All proposed modifications to previously approved services and procedures shall be reviewed and approved by the state department before they are implemented. Modifications to the mobile service unit shall be approved by the Department of Housing and Community Development pursuant to Section 18029. (e) The licensee shall report to the department the location of the site at least 24 hours prior to the operation of a mobile unit at any site for the first time. (f) Notification required by subdivision (e) shall be waived when the mobile unit operates at any site for the first time at the request of federal, state, or local authorities for the purposes of responding to state or locally declared emergencies as defined in subdivisions (a), (b), and (c) of Section 8558 of the Government Code, federally declared emergencies, and declared public health emergencies as defined in Section 101080 for the duration of the emergency. (Amended by Stats. 2008, Ch. 360, Sec. 1. Effective January 1, 2009.)
  138. 1765.155.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. )

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    The parent facility or clinic must get required site approvals and provide parking enforcement and lighting for the mobile unit; the mobile unit must also be safely placed and follow local parking laws.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. ) ## 1765.155. (a) The licensed parent facility or clinic shall be responsible for obtaining approvals for the site or sites of the mobile unit as required by the local planning, zoning, and fire authorities. (b) The mobile unit shall be situated for safe and comfortable patient access. The mobile unit shall comply with all local parking laws. Any parking restrictions developed by a parent facility or clinic for mobile units shall be strictly enforced by the parent facility or clinic. (c) The parent facility or clinic shall ensure that there is sufficient lighting around the perimeter of the site from which the mobile unit provides any services. (Amended by Stats. 2008, Ch. 360, Sec. 2. Effective January 1, 2009.)
  139. 1765.160.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. )

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    Mobile health care unit licensees must maintain written policies, emergency procedures, transfer agreements, patient records, and a services log.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. ) ## 1765.160. Any licensee using mobile services pursuant to this chapter shall do all of the following: (a) Have written policies established by the governing body of the licensee, to govern the services that the mobile unit provides. The policies shall include, but shall not be limited to, policies related to patient care, personnel training and orientation, personnel supervision, and evaluation of services provided by the mobile unit. (b) Have written policies regarding patient selection criteria. (c) Develop and implement the written policies and procedures for the mobile unit in consultation with other appropriate health care professionals. (d) Ensure that the written policies and procedures are consistent with the policies and procedures of the parent facility, if any. (e) Ensure that the policies and written procedures shall be approved by the governing body, administration, and medical staff of the licensee, where appropriate. (f) Ensure that the written policies and procedures include, but are not limited to, all of the following: (1) Scope of services. (2) Procedures for the performance of the services provided. (3) Quality assurance. (4) Infection control. (5) Medical record documentation of services provided, as appropriate. (6) Transport of patients, including, but not limited to, method, special equipment, necessary personnel, and protection from inclement weather. (7) Emergency services and evacuation plan for the mobile unit. (A) A licensee using mobile services pursuant to this chapter shall specify in writing policies and procedures for emergencies including fire, natural disaster, and medical emergencies. In its policies and procedures, the mobile unit shall address the emergency plan required of the parent facility and state how the plans shall be coordinated. (B) A licensee using mobile services pursuant to this chapter shall familiarize its employees and each patient with the policies and procedures adopted pursuant to subparagraph (A). (C) A licensee using mobile services pursuant to this chapter shall maintain written transfer agreements that shall include, but shall not be limited to, provisions for communication with, and transportation to, one or more nearby hospitals and other health facilities as needed to meet medical emergencies. The mobile unit shall develop procedures that include personnel needed to assist in the transfer, as well as provisions for meeting medical needs to accommodate the emergency transfer. (8) Location. (9) Schedule of mobile unit services. (g) Maintain clinical records on each patient, in accordance with regulations. (h) Maintain a mobile unit services log that shall include, but shall not be limited to, all of the following: (1) Patient chart or identification number. (2) Name, age, and sex of patient. (3) Site, date, time, and as appropriate, duration of procedure. (Added by Stats. 1993, Ch. 1020, Sec. 2. Effective January 1, 1994.)
  140. 1765.165.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. )

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    General acute care hospitals may not use mobile unit services as the primary source of a basic hospital service except in a natural disaster or other emergency. If a parent facility operates a mobile unit, the parent facility must hold the license and keep responsibility for staffing, administration, compliance, and inspection coordination.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. ) ## 1765.165. (a) For general acute care hospitals, mobile unit services shall not be utilized as a primary source for a basic hospital service, as defined in subdivision (a) of Section 1250, unless in response to a natural disaster or other emergency situation. (b) The mobile services provided in a mobile unit operated by a parent facility shall be licensed to the parent facility, even though it may be operated pursuant to a contract. When a contract of this type exists with a licensed parent facility for the provision of mobile unit services, all of the following shall apply: (1) Mobile units shall be treated as part of the parent facility for licensure purposes. (2) Each parent facility shall document the designated service and staff that have administrative responsibility for the mobile unit. (3) The parent facility shall maintain the administrative and professional responsibility for the mobile unit. All liabilities for noncompliance regarding the provisions of services in the mobile unit shall be that of the parent facility. (4) Procedures and services to be provided in the mobile unit shall be in accordance with recognized acceptable standards of practice. (5) Coordination with the owner of the mobile unit vehicle for availability of the vehicle at the site for required inspections shall be the responsibility of the parent facility. (Added by Stats. 1993, Ch. 1020, Sec. 2. Effective January 1, 1994.)
  141. 1765.170.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. )

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    Mobile health care units must carry required supplies, equipment, fire safety equipment, and a telecommunications device, and must follow specified compliance and manufacturer rules for X-ray and other equipment.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. ) ## 1765.170. The mobile unit shall comply with all of the following: (a) It shall have supplies and equipment to meet the needs of the patients served. (b) Any mobile unit X-ray equipment shall be in compliance with the requirements in the California Radiation Control Regulations, Title 17, California Code of Regulations. (c) The mobile unit shall have fire safety equipment as specified by the fire authority having jurisdiction, including but not limited to, at least two fire extinguishers of 2A:20 BC rating. (d) Documented evidence of preventative maintenance and calibration procedures of mobile unit equipment shall conform to the manufacturer’s specifications. (e) Use of the equipment in mobile units shall conform to the manufacturer’s specifications. (f) The mobile unit shall have a telecommunications device. (Added by Stats. 1993, Ch. 1020, Sec. 2. Effective January 1, 1994.)
  142. 1765.175.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. )

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    The state department must adopt, amend, or repeal regulations as needed for this chapter, and mobile units in certain categories must follow federal certification standards until the department adopts related regulations.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 9. Mobile Health Care Units [1765.101 - 1765.175] ( Chapter 9 added by Stats. 1993, Ch. 1020, Sec. 2. ) ## 1765.175. The state department shall adopt, amend, or repeal, in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, rules and regulations as it determines may be necessary to carry out the purposes and intent of this chapter and to enable the state department to exercise the powers and perform the duties conferred upon it by this chapter. Until the state department adopts regulations relating to provision of services by a chronic hemodialysis clinic, a surgery clinic, or a rehabilitation clinic, mobile units licensed or seeking licensure, in these categories shall comply with federal certification standards for end stage renal disease clinics, ambulatory surgery clinics, or comprehensive outpatient rehabilitation facilities, as applicable. (Added by Stats. 1993, Ch. 1020, Sec. 2. Effective January 1, 1994.)
  143. 1770.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. )

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    This section says continuing care retirement communities are meant to serve elderly residents, and that providers should obtain authority and be monitored by the State Department of Social Services.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1770. The Legislature finds, declares, and intends all of the following: (a) Continuing care retirement communities are an alternative for the long-term residential, social, and health care needs of California’s elderly residents and seek to provide a continuum of care, minimize transfer trauma, and allow services to be provided in an appropriately licensed setting. (b) Because elderly residents often both expend a significant portion of their savings in order to purchase care in a continuing care retirement community and expect to receive care at their continuing care retirement community for the rest of their lives, tragic consequences can result if a continuing care provider becomes insolvent or unable to provide responsible care. (c) There is a need for disclosure concerning the terms of agreements made between prospective residents and the continuing care provider, and concerning the operations of the continuing care retirement community. (d) Providers of continuing care should be required to obtain a certificate of authority to enter into continuing care contracts and should be monitored and regulated by the State Department of Social Services. (e) This chapter applies equally to for-profit and nonprofit provider entities. (f) This chapter states the minimum requirements to be imposed upon any entity offering or providing continuing care. (g) Because the authority to enter into continuing care contracts granted by the State Department of Social Services is neither a guarantee of performance by the providers nor an endorsement of any continuing care contract provisions, prospective residents must carefully consider the risks, benefits, and costs before signing a continuing care contract and should be encouraged to seek financial and legal advice before doing so. (Amended by Stats. 2000, Ch. 820, Sec. 1. Effective January 1, 2001.)
  144. 1771.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. )

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    This section defines key terms used in the continuing care contracts chapter.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1771. Unless the context otherwise requires, the definitions in this section govern the interpretation of this chapter. (a) (1) “Affiliate” means any person, corporation, limited liability company, business trust, trust, partnership, unincorporated association, or other legal entity that directly or indirectly controls, is controlled by, or is under common control with, a provider or applicant. (2) “Affinity group” means a grouping of entities sharing a common interest, philosophy, or connection (e.g., military officers, religion). (3) “Annual report” means the report each provider is required to file annually with the department, as described in Section 1790. (4) “Applicant” means any entity, or combination of entities, that submits and has pending an application to the department for a permit to accept deposits and a certificate of authority. (5) “Assisted living services” includes, but is not limited to, assistance with personal activities of daily living, including dressing, feeding, toileting, bathing, grooming, mobility, and associated tasks, to help provide for and maintain physical and psychosocial comfort. (6) “Assisted living unit” means the living area or unit within a continuing care retirement community that is specifically designed to provide ongoing assisted living services. (7) “Audited financial statement” means financial statements prepared in accordance with generally accepted accounting principles, including the opinion of an independent certified public accountant, and notes to the financial statements considered customary or necessary to provide full disclosure and complete information regarding the provider’s financial statements, financial condition, and operation. (b) (reserved) (c) (1) “Cancel” means to destroy the force and effect of an agreement or continuing care contract. (2) “Cancellation period” means the 90-day period, beginning when the resident physically moves into the continuing care retirement community, during which the resident may cancel the continuing care contract, as provided in Section 1788.2. (3) “Care” means nursing, medical, or other health-related services, protection or supervision, assistance with the personal activities of daily living, or any combination of those services. (4) “Cash equivalent” means certificates of deposit and United States treasury securities with a maturity of five years or less. (5) “Certificate” or “certificate of authority” means the certificate issued by the department, properly executed and bearing the State Seal, authorizing a specified provider to enter into one or more continuing care contracts at a single specified continuing care retirement community. (6) “Condition” means a restriction, specific action, or other requirement imposed by the department for the initial or continuing validity of a permit to accept deposits, a provisional certificate of authority, or a certificate of authority. A condition may limit the circumstances under which the provider may enter into any new deposit agreement or contract, or may be imposed as a condition precedent to the issuance of a permit to accept deposits, a provisional certificate of authority, or a certificate of authority. (7) “Consideration” means some right, interest, profit, or benefit paid, transferred, promised, or provided by one party to another as an inducement to contract. Consideration includes some forbearance, detriment, loss, or responsibility, that is given, suffered, or undertaken by a party as an inducement to another party to contract. (8) “Continuing care contract” means a contract that includes a continuing care promise made, in exchange for an entrance fee, the payment of periodic charges, or both types of payments. A continuing care contract may consist of one agreement or a series of agreements and other writings incorporated by reference. (9) “Continuing care promise” means a promise, expressed or implied, by a provider to provide one or more elements of care to an elderly resident for the duration of his or her life or for a term in excess of one year. Any such promise or representation, whether part of a continuing care contract, other agreement, or series of agreements, or contained in any advertisement, brochure, or other material, either written or oral, is a continuing care promise. (10) “Continuing care retirement community” means a facility located within the State of California where services promised in a continuing care contract are provided. A distinct phase of development approved by the department may be considered to be the continuing care retirement community when a project is being developed in successive distinct phases over a period of time. When the services are provided in residents’ own homes, the homes into which the provider takes those services are considered part of the continuing care retirement community. (11) “Control” means directing or causing the direction of the financial management or the policies of another entity, including an operator of a continuing care retirement community, whether by means of the controlling entity’s ownership interest, contract, or any other involvement. A parent entity or sole member of an entity controls a subsidiary entity provider for a continuing care retirement community if its officers, directors, or agents directly participate in the management of the subsidiary entity or in the initiation or approval of policies that affect the continuing care retirement community’s operations, including, but not limited to, approving budgets or the administrator for a continuing care retirement community. (d) (1) “Department” means the State Department of Social Services. (2) “Deposit” means any transfer of consideration, including a promise to transfer money or property, made by a depositor to any entity that promises or proposes to promise to provide continuing care, but is not authorized to enter into a continuing care contract with the potential depositor. (3) “Deposit agreement” means any agreement made between any entity accepting a deposit and a depositor. Deposit agreements for deposits received by an applicant prior to the department’s release of funds from the deposit escrow account shall be subject to the requirements described in Section 1780.4. (4) “Depository” means a bank or institution that is a member of the Federal Deposit Insurance Corporation or a comparable deposit insurance program. (5) “Depositor” means any prospective resident who pays a deposit. Where any portion of the consideration transferred to an applicant as a deposit or to a provider as consideration for a continuing care contract is transferred by a person other than the prospective resident or a resident, that third-party transferor shall have the same cancellation or refund rights as the prospective resident or resident for whose benefit the consideration was transferred. (6) “Director” means the Director of Social Services. (e) (1) “Elderly” means an individual who is 60 years of age or older. (2) “Entity” means an individual, partnership, corporation, limited liability company, and any other form for doing business. Entity includes a person, sole proprietorship, estate, trust, association, and joint venture. (3) “Entrance fee” means the sum of any initial, amortized, or deferred transfer of consideration made or promised to be made by, or on behalf of, a person entering into a continuing care contract for the purpose of ensuring care or related services pursuant to that continuing care contract or as full or partial payment for the promise to provide care for the term of the continuing care contract. Entrance fee includes the purchase price of a condominium, cooperative, or other interest sold in connection with a promise of continuing care. An initial, amortized, or deferred transfer of consideration that is greater in value than 12 times the monthly care fee shall be presumed to be an entrance fee. (4) “Equity” means the value of real property in excess of the aggregate amount of all liabilities secured by the property. (5) “Equity interest” means an interest held by a resident in a continuing care retirement community that consists of either an ownership interest in any part of the continuing care retirement community property or a transferable membership that entitles the holder to reside at the continuing care retirement community. (6) “Equity project” means a continuing care retirement community where residents receive an equity interest in the continuing care retirement community property. (7) “Equity securities” shall refer generally to large and midcapitalization corporate stocks that are publicly traded and readily liquidated for cash, and shall include shares in mutual funds that hold portfolios consisting predominantly of these stocks and other qualifying assets, as defined by Section 1792.2. Equity securities shall also include other similar securities that are specifically approved by the department. (8) “Escrow agent” means a bank or institution, including, but not limited to, a title insurance company, approved by the department to hold and render accountings for deposits of cash or cash equivalents. (f) “Facility” means any place or accommodation where a provider provides or will provide a resident with care or related services, whether or not the place or accommodation is constructed, owned, leased, rented, or otherwise contracted for by the provider. (g) (reserved) (h) (reserved) (i) (1) “Inactive certificate of authority” means a certificate that has been terminated under Section 1793.8. (2) “Investment securities” means any of the following: (A) Direct obligations of the United States, including obligations issued or held in book-entry form on the books of the United States Department of the Treasury or obligations the timely payment of the principal of, and the interest on, which are fully guaranteed by the United States. (B) Obligations, debentures, notes, or other evidences of indebtedness issued or guaranteed by any of the following: (i) The Federal Home Loan Bank System. (ii) The Export-Import Bank of the United States. (iii) The Federal Financing Bank. (iv) The Government National Mortgage Association. (v) The Farmers Home Administration. (vi) The Federal Home Loan Mortgage Corporation of the Federal Housing Administration. (vii) Any agency, department, or other instrumentality of the United States if the obligations are rated in one of the two highest rating categories of each rating agency rating those obligations. (C) Bonds of the State of California or of any county, city and county, or city in this state, if rated in one of the two highest rating categories of each rating agency rating those bonds. (D) Commercial paper of finance companies and banking institutions rated in one of the two highest categories of each rating agency rating those instruments. (E) Repurchase agreements fully secured by collateral security described in subparagraph (A) or (B), as evidenced by an opinion of counsel, if the collateral is held by the provider or a third party during the term of the repurchase agreement, pursuant to the terms of the agreement, subject to liens or claims of third parties, and has a market value, which is determined at least every 14 days, at least equal to the amount so invested. (F) Long-term investment agreements, which have maturity dates in excess of one year, with financial institutions, including, but not limited to, banks and insurance companies or their affiliates, if the financial institution’s paying ability for debt obligations or long-term claims or the paying ability of a related guarantor of the financial institution for these obligations or claims, is rated in one of the two highest rating categories of each rating agency rating those instruments, or if the short-term investment agreements are with the financial institution or the related guarantor of the financial institution, the long-term or short-term debt obligations, whichever is applicable, of which are rated in one of the two highest long-term or short-term rating categories, of each rating agency rating the bonds of the financial institution or the related guarantor, provided that if the rating falls below the two highest rating categories, the investment agreement shall allow the provider the option to replace the financial institution or the related guarantor of the financial institution or shall provide for the investment securities to be fully collateralized by investments described in subparagraph (A), and, provided further, if so collateralized, that the provider has a perfected first security lien on the collateral, as evidenced by an opinion of counsel and the collateral is held by the provider. (G) Banker’s acceptances or certificates of deposit of, or time deposits in, any savings and loan association that meets any of the following criteria: (i) The debt obligations of the savings and loan association, or in the case of a principal bank, of the bank holding company, are rated in one of the two highest rating categories of each rating agency rating those instruments. (ii) The certificates of deposit or time deposits are fully insured by the Federal Deposit Insurance Corporation. (iii) The certificates of deposit or time deposits are secured at all times, in the manner and to the extent provided by law, by collateral security described in subparagraph (A) or (B) with a market value, valued at least quarterly, of no less than the original amount of moneys so invested. (H) Taxable money market government portfolios restricted to obligations issued or guaranteed as to payment of principal and interest by the full faith and credit of the United States. (I) Obligations the interest on which is excluded from gross income for federal income tax purposes and money market mutual funds whose portfolios are restricted to these obligations, if the obligations or mutual funds are rated in one of the two highest rating categories by each rating agency rating those obligations. (J) Bonds that are not issued by the United States or any federal agency, but that are listed on a national exchange and that are rated at least “A” by Moody’s Investors Service, or the equivalent rating by Standard and Poor’s Corporation or Fitch Investors Service. (K) Bonds not listed on a national exchange that are traded on an over-the-counter basis, and that are rated at least “Aa” by Moody’s Investors Service or “AA” by Standard and Poor’s Corporation or Fitch Investors Service. (j) (reserved) (k) (reserved) (l) “Life care contract” means a continuing care contract that includes a promise, expressed or implied, by a provider to provide or pay for routine services at all levels of care, including acute care and the services of physicians and surgeons, to the extent not covered by other public or private insurance benefits, to a resident for the duration of his or her life. Care shall be provided under a life care contract in a continuing care retirement community having a comprehensive continuum of care, including a skilled nursing facility, under the ownership and supervision of the provider on or adjacent to the premises. A change shall not be made in the monthly fee based on level of care. A life care contract shall also include provisions to subsidize residents who become financially unable to pay their monthly care fees. (m) (1) “Monthly care fee” means the fee charged to a resident in a continuing care contract on a monthly or other periodic basis for current accommodations and services, including care, board, or lodging. Periodic entrance fee payments or other prepayments shall not be monthly care fees. (2) “Monthly fee contract” means a continuing care contract that requires residents to pay monthly care fees. (n) “Nonambulatory person” means a person who is unable to leave a building unassisted under emergency conditions in the manner described by Section 13131. (o) (reserved) (p) (1) “Per capita cost” means a continuing care retirement community’s operating expenses, excluding depreciation, divided by the average number of residents. (2) “Periodic charges” means fees paid by a resident on a periodic basis. (3) “Permanent closure” means the voluntary or involuntary termination or forfeiture, as specified in subdivisions (a), (b), (g), (h), and (i) of Section 1793.7, of a provider’s certificate of authority or license, or another action that results in the permanent relocation of residents. Permanent closure does not apply in the case of a natural disaster or other event out of the provider’s control. (4) “Permit to accept deposits” means a written authorization by the department permitting an applicant to enter into deposit agreements regarding a single specified continuing care retirement community. (5) “Prepaid contract” means a continuing care contract in which the monthly care fee, if any, may not be adjusted to cover the actual cost of care and services. (6) “Preferred access” means that residents who have previously occupied a residential living unit have a right over other persons to any assisted living or skilled nursing beds that are available at the community. (7) “Processing fee” means a payment to cover administrative costs of processing the application of a depositor or prospective resident. (8) “Promise to provide one or more elements of care” means any expressed or implied representation that one or more elements of care will be provided or will be available, such as by preferred access. (9) “Proposes” means a representation that an applicant or provider will or intends to make a future promise to provide care, including a promise that is subject to a condition, such as the construction of a continuing care retirement community or the acquisition of a certificate of authority. (10) “Provider” means an entity that provides continuing care, makes a continuing care promise, or proposes to promise to provide continuing care. “Provider” also includes any entity that controls an entity that provides continuing care, makes a continuing care promise, or proposes to promise to provide continuing care. The department shall determine whether an entity controls another entity for purposes of this article. No homeowner’s association, cooperative, or condominium association may be a provider. (11) “Provisional certificate of authority” means the certificate issued by the department, properly executed and bearing the State Seal, under Section 1786. A provisional certificate of authority shall be limited to the specific continuing care retirement community and number of units identified in the applicant’s application. (q) (reserved) (r) (1) “Refund reserve” means the reserve a provider is required to maintain, as provided in Section 1792.6. (2) “Refundable contract” means a continuing care contract that includes a promise, expressed or implied, by the provider to pay an entrance fee refund or to repurchase the transferor’s unit, membership, stock, or other interest in the continuing care retirement community when the promise to refund some or all of the initial entrance fee extends beyond the resident’s sixth year of residency. Providers that enter into refundable contracts shall be subject to the refund reserve requirements of Section 1792.6. (3) “Repayable contract” means a continuing care contract that includes a promise to repay all or a portion of an entrance fee that is conditioned upon reoccupancy or resale of the unit previously occupied by the resident. A repayable contract shall not be considered a refundable contract for purposes of the refund reserve requirements of Section 1792.6, provided that this conditional promise of repayment is not referred to by the applicant or provider as a “refund.” A provider may repay all or a portion of an entrance fee that is conditioned upon resale of the unit before the resale of the unit. The repayment of an entrance fee before the resale of the unit shall not cause any other entrance fee to be subject to the refund reserve requirements of Section 1792.6, provided that the provider does not promise, at the time of contracting or thereafter, to make this type of early repayment, represent that the provider intends to make this type of early repayment, or indicate that the provider has a practice of making this type of early repayment. (4) “Resale fee” means a levy by the provider against the proceeds from the sale of a transferor’s equity interest. (5) “Reservation fee” refers to consideration collected by an entity that has made a continuing care promise or is proposing to make this promise and has complied with Section 1771.4. (6) “Resident” means a person who enters into a continuing care contract with a provider, or who is designated in a continuing care contract to be a person being provided or to be provided services, including care, board, or lodging. (7) “Residential care facility for the elderly” means a housing arrangement as defined by Section 1569.2. (8) “Residential living unit” means a living unit in a continuing care retirement community that is not used exclusively for assisted living services or nursing services. (9) “Residential temporary relocation” means the relocation of one or more residents, except in the case of a natural disaster that is out of the provider’s control, from one or more residential living units, assisted living units, skilled nursing units, or a wing, floor, or entire continuing care retirement community building, due to a change of use or major repairs or renovations. A residential temporary relocation shall mean a relocation pursuant to this subdivision that lasts for a period of at least 9 months but that does not exceed 18 months without the written agreement of the resident. (s) (reserved) (t) (1) “Termination” means the ending of a continuing care contract as provided for in the terms of the continuing care contract. (2) “Transfer trauma” means death, depression, or regressive behavior, that is caused by the abrupt and involuntary transfer of an elderly resident from one home to another and results from a loss of familiar physical environment, loss of well-known neighbors, attendants, nurses and medical personnel, the stress of an abrupt break in the small routines of daily life, or the loss of visits from friends and relatives who may be unable to reach the new facility. (3) “Transferor” means a person who transfers, or promises to transfer, consideration in exchange for care and related services under a continuing care contract or proposed continuing care contract, for the benefit of another. A transferor shall have the same rights to cancel and obtain a refund as the depositor under the deposit agreement or the resident under a continuing care contract. (Amended by Stats. 2016, Ch. 112, Sec. 1. (SB 939) Effective January 1, 2017.)
  145. 1771.10.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. )

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    Each provider must adopt a comprehensive disaster preparedness plan.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1771.10. Each provider shall adopt a comprehensive disaster preparedness plan specifying policies for evacuation, relocation, continued services, reconstruction, organizational structure, insurance coverage, resident education, and plant replacement. (Added by renumbering Section 1771.11 by Stats. 2000, Ch. 820, Sec. 15. Effective January 1, 2001.)
  146. 1771.2.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. )

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    Before entering certain deposit or continuing care arrangements, the relevant entity or provider must have the required permit or certificate, with limited conditions allowing some subcontracting and related contracting.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1771.2. (a) An entity shall apply for and hold a currently valid permit to accept deposits before it may enter into a deposit agreement or accept a deposit. (b) A provider shall hold a currently valid provisional certificate of authority or certificate of authority before it may enter into a continuing care contract. (c) Before a provider subcontracts or assigns to another entity the responsibility to provide continuing care, that other entity shall have a current and valid certificate of authority. A provider holding a certificate of authority may contract for the provision of a particular aspect of continuing care, such as medical care, with another entity that does not possess a certificate of authority, if that other entity is appropriately licensed under laws of this state to provide that care, and the provider has not paid in advance for more than one year for that care. (d) If an entity enters into an agreement to provide care for life or for more than one year to a person under 60 years of age in return for consideration, and the agreement includes the provision of services to that person after age 60, when the person turns 60 years of age, the promising entity shall comply with all the requirements imposed by this chapter. (Amended by Stats. 2000, Ch. 820, Sec. 3. Effective January 1, 2001.)
  147. 1771.3.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. )

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    This section says the chapter does not apply to certain family or friend care arrangements, and it creates a process for an entity to get a Letter of Exemption if specific conditions are met.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1771.3. (a) This chapter shall not apply to either of the following: (1) An arrangement for the care of a person by a relative. (2) An arrangement for the care of a person or persons from only one family by a friend. (b) This chapter shall not apply to any admission or residence agreements offered by residential communities for the elderly or residential care facilities for the elderly that promise residents preferred access to assisted living services or nursing care, when each of the following conditions is satisfied: (1) Residents pay on a fee-for-service basis for available assisted living services and nursing care. (2) The fees paid for available assisted living services and nursing care are the same for residents who have previously occupied a residential living unit as for residents who have not previously occupied a residential living unit. (3) No entrance fee or prepayment for future care or access, other than monthly care fees, is paid by, or charged to, any resident at the community or facility. For purposes of this paragraph, the term entrance fee shall not include initial, deferred, or amortized payments that cumulatively do not exceed seven thousand five hundred dollars ($7,500). (4) The provider has not made a continuing care promise of preferred access, other than a promise as described in paragraph (5). (5) The admission or residence agreement states: (A) “This agreement does not guarantee that an assisted living or nursing bed will be available for residents, but, instead, promises preferred access to any assisted living or nursing beds that are available at the community or facility. The promise of preferred access gives residents who have previously occupied a residential living unit a right over other persons to such beds.” (B) “A continuing care contract promises that care will be provided to residents for life or for a term in excess of a year. (Name of community or facility) is not a continuing care retirement community and (name of provider) does not hold a certificate of authority to enter into continuing care contracts and is not required to have the same fiscal reserves as a continuing care provider. This agreement is not a continuing care contract and is exempted from the continuing care statutes under subdivision (b) of Section 1771.3 of the Health and Safety Code so long as the conditions set forth in that section are met.” (6) The admission or residence agreement also states the policies and procedures regarding transfers to higher levels of care within the community or facility. (c) Any entity may apply to the department for a Letter of Exemption stating that the requesting entity satisfies the requirements for an exemption under this section. (d) The department shall issue a Letter of Exemption to a requesting entity if the department determines either of the following: (1) The requesting entity satisfies each of the requirements for an exemption under subdivision (b). (2) The requesting entity satisfies each of the requirements for an exemption under subdivision (b) other than the requirements of paragraph (2) of subdivision (b), and there is no substantial difference between the following: (A) The fees for available assisted living services and skilled nursing care paid by residents who have previously occupied a residential living unit. (B) The fees for available assisted living services and skilled nursing care paid by residents who have not previously occupied a residential living unit. (e) An application to the department for a Letter of Exemption shall include all of the following: (1) A nonrefundable one thousand dollar ($1,000) application fee. (2) The name and business address of the applicant. (3) A description of the services and care available or provided to residents of the community or facility. (4) Documentation establishing that the requesting entity satisfies the requirements for an exemption under this section, including all of the following: (A) A schedule showing all fees for assisted living services and skilled nursing care charged to residents at the facility or community who have previously occupied a residential living unit. (B) A schedule showing all fees for assisted living services and skilled nursing care charged to residents at the facility or community who have not previously occupied a residential living unit. (C) A description of the differences between the fees for assisted living services and skilled nursing care charged to residents who have not previously occupied a residential unit and the fees for assisted living services and skilled nursing care charged to residents who have previously occupied a residential unit. (D) A schedule showing any other fees charged to residents of the community or facility. (E) Copies of all admission and residence agreement forms that have been entered into, or will be entered into, with residents at the community or facility. (5) Any other information reasonably requested by the department. (f) If at any time any of the conditions stated in this section are not satisfied, then the requirements of this chapter apply, and the department may impose appropriate remedies and penalties set forth in Article 7 (commencing with Section 1793.5). (Added by Stats. 2000, Ch. 820, Sec. 4. Effective January 1, 2001.)
  148. 1771.4.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. )

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    An entity may run a market test for a proposed continuing care retirement community and collect reservation fees only if specified filing, approval, escrow, refund, conversion, and fee-limit conditions are met.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1771.4. An entity may conduct a market test for a proposed continuing care retirement community and collect reservation fees from persons interested in residing at the proposed continuing care retirement community without violating this chapter if all of the following conditions are met: (a) The entity has filed with the department an application for a permit to accept deposits and a certificate of authority for the project. (b) The entity’s application includes the proposed reservation agreement form and a proposed escrow agreement that provide all of the following: (1) All fees shall be deposited in escrow. (2) Refunds shall be made within 10 calendar days after the payer’s or proposed resident’s request or 10 days after denial of the application for a permit to accept deposits. (3) All reservation fees shall be converted to deposits within 15 days after a permit to accept deposits is issued. (c) The department has acknowledged in writing its receipt of the entity’s application and its approval of the entity’s proposed reservation agreement between the payer and the entity and the escrow agreement between the escrow holder and the entity. (d) The amount of any reservation fee collected by the entity does not exceed one thousand dollars ($1,000) or 1 percent of the average entrance fee amount as determined from the entity’s application, whichever is greater. (e) The entity places all reservation fees collected by the entity into an escrow under the terms of the approved reservation agreement and escrow agreement. (Repealed and added by Stats. 2000, Ch. 820, Sec. 6. Effective January 1, 2001.)
  149. 1771.5.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. )

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    The department may not issue a provisional certificate of authority or a certificate of authority until the applicant has obtained the required licenses for the continuing care retirement community.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1771.5. The department shall not issue a provisional certificate of authority or a certificate of authority to an applicant until the applicant has obtained licenses for the entire continuing care retirement community, including a license to operate the residential living and assisted living units, pursuant to Chapter 3.2 (commencing with Section 1569) and if a skilled nursing facility is on the premises, a license for the facility pursuant to Chapter 2 (commencing with Section 1250). (Repealed and added by Stats. 2000, Ch. 820, Sec. 8. Effective January 1, 2001.)
  150. 1771.6.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. )

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    An entity may ask the department for a Letter of Nonapplicability, but the application must be in writing, include a $1,000 nonrefundable fee and specified materials, and the department must respond within set deadlines.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1771.6. (a) Any entity may apply to the department for a Letter of Nonapplicability for reasons other than those specified in Section 1771.3, which states that the provisions of this chapter do not apply to its community, project, or proposed project. (b) Applications for Letters of Nonapplicability shall be made to the department in writing and include the following: (1) A nonrefundable one thousand dollar ($1,000) application fee. (2) A list of the reasons why the existing or proposed project may not be subject to this chapter. (3) A copy of the existing or proposed contract between the entity and residents. (4) Copies of all advertising material. (5) Any other information reasonably requested by the department. (c) The department shall do both of the following: (1) Within seven calendar days, acknowledge receipt of the request for a Letter of Nonapplicability. (2) Within 30 calendar days after all materials are received, either issue the Letter of Nonapplicability or notify the entity of the department’s reasons for denial of the request. (d) (1) If the department determines that the entity does not qualify for a Letter of Nonapplicability, the entity shall refrain from, or immediately cease, entering into continuing care contracts. (2) If an entity to which this subdivision applies intends to provide continuing care, an application for a certificate of authority shall be required to be filed with the department pursuant to this chapter. (3) If an entity to which this subdivision applies does not intend to provide continuing care, it shall alter its plan of operation so that the project is not subject to this chapter. To obtain a Letter of Nonapplicability for the revised project, the entity shall submit a new application and fee. (Repealed and added by Stats. 2000, Ch. 820, Sec. 10. Effective January 1, 2001.)
  151. 1771.7.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. )

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    This section protects residents and prospective residents of continuing care retirement communities, gives them specific access and participation rights, and requires providers to post notices and respond to resident association requests.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1771.7. (a) A resident of a continuing care retirement community shall not be deprived of any civil or legal right, benefit, or privilege guaranteed by law, by the California Constitution, or by the United States Constitution, solely by reason of status as a resident of a community. In addition, because of the discretely different character of residential living unit programs that are a part of continuing care retirement communities, this section shall augment Chapter 3.9 (commencing with Section 1599), Sections 72527 and 87468 of Title 22 of the California Code of Regulations, and other applicable state and federal law and regulations. (b) A prospective resident shall have the right to visit each of the different care levels and to inspect assisted living and skilled nursing home licensing reports including, but not limited to, the most recent inspection reports and findings of complaint investigations covering a period of no less than two years, before signing a continuing care contract. (c) All residents in residential living units shall have all of the following rights: (1) To live in an attractive, safe, and well maintained physical environment. (2) To live in an environment that enhances personal dignity, maintains independence, and encourages self-determination. (3) To participate in activities that meet individual physical, intellectual, social, and spiritual needs. (4) To expect effective channels of communication between residents and staff, and between residents and the administration or provider’s governing body. (5) To receive a clear and complete written contract that establishes the mutual rights and obligations of the resident and the continuing care retirement community. (6) To manage their financial affairs. (7) To be assured that all donations, contributions, gifts, or purchases of provider-sponsored financial products shall be voluntary, and may not be a condition of acceptance or of ongoing eligibility for services. (8) To maintain and establish ties to the local community. (9) To organize and participate freely in the operation of independent resident organizations and associations. (d) A continuing care retirement community shall maintain an environment that enhances the residents’ self-determination and independence. The provider shall do both of the following: (1) Encourage the formation of a resident association by interested residents who may elect a governing body. The provider shall provide space and post notices for meetings, and provide assistance in attending meetings for those residents who request it. In order to promote a free exchange of ideas, at least part of each meeting shall be conducted without the presence of any continuing care retirement community personnel. The association may, among other things, make recommendations to management regarding resident issues that impact the residents’ quality of life, quality of care, exercise of rights, safety and quality of the physical environment, concerns about the contract, fiscal matters, or other issues of concern to residents. The management shall respond, in writing, to a written request or concern of the resident association within 20 working days of receiving the written request or concern. Meetings shall be open to all residents to attend as well as to present issues. Executive sessions of the governing body shall be attended only by the governing body. (2) Establish policies and procedures that promote the sharing of information, dialogue between residents and management, and access to the provider’s governing body. The provider shall biennially conduct a resident satisfaction survey that shall be made available to the resident association or its governing body, or, if neither exists, to a committee of residents at least 14 days before the next semiannual meeting of residents and the governing board of the provider required by subdivision (c) of Section 1771.8. A copy of the survey shall be posted in a conspicuous location at each facility. (e) At the time or before the resident signs a continuing care contract, and at any time when the resident is proposed to be moved to a different level of care, the provider shall provide the resident a copy of the applicable bill of rights: (1) The bill of rights prescribed by this section. (2) The rights for residential care facilities for the elderly, as prescribed by Section 1569.269, and Sections 87468.1 and 87468.2 of Title 22 of the California Code of Regulations. (3) The rights for skilled nursing facility patients, as prescribed in subdivision (d) of Section 1599.61, if the resident is moving into the continuing care retirement community’s skilled nursing unit. (f) Each continuing care retirement community shall prominently post in areas accessible to the residents and visitors a notice that a copy of rights applicable to residents pursuant to this section and any governing regulation issued by the Continuing Care Contracts Branch of the State Department of Social Services is available upon request from the provider. The notice shall also state that the residents have a right to file a complaint with the Continuing Care Contracts Branch for any violation of those rights and shall contain information explaining how a complaint may be filed, including the telephone number and address of the Continuing Care Contracts Branch. (g) The resident has the right to freely exercise all rights pursuant to this section, in addition to political rights, without retaliation by the provider. (h) The department may, upon receiving a complaint of a violation of this section, request a copy of the policies and procedures along with documentation on the conduct and findings of any self-evaluations. (i) Failure to comply with this section shall be grounds for the imposition of conditions on, suspension of, or revocation of the provisional certificate of authority or certificate of authority pursuant to Section 1793.21. (j) Failure to comply with this section constitutes a violation of residents’ rights. Pursuant to Section 1569.49 of the Health and Safety Code, the department shall impose and collect a civil penalty of not more than one hundred fifty dollars ($150) per violation upon a continuing care retirement community that violates a right guaranteed by this section. (Amended by Stats. 2024, Ch. 338, Sec. 1. (SB 1352) Effective January 1, 2025.)
  152. 1771.8.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. )

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    This section requires continuing care retirement community providers to meet with residents, share key financial and meeting information, and allow resident participation in governance.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1771.8. (a) The Legislature finds and declares all of the following: (1) The residents of continuing care retirement communities have a unique and valuable perspective on the operations of, and services provided in, the community in which they live. (2) Resident input into decisions made by the provider is an important factor in creating an environment of cooperation, reducing conflict, and ensuring timely response and resolution to issues that may arise. (3) Continuing care retirement communities are strengthened when residents know that their views are heard and respected. (b) The Legislature encourages continuing care retirement communities to exceed the minimum resident participation requirements established by this section by, among other things, the following: (1) Encouraging residents to form a resident association, and assisting the residents, the resident association, and its governing body to keep informed about the operation of the continuing care retirement community. (2) Encouraging residents of a continuing care retirement community or their elected representatives to select residents to participate as members of the governing body of the provider. (3) Quickly and fairly resolving any dispute, claim, or grievance arising between a resident and the continuing care retirement community. (c) The governing body of a provider, or the designated representative of the provider, shall hold, at a minimum, semiannual meetings with the residents of the continuing care retirement community, or the resident association or its governing body, for the purpose of the free discussion of subjects including, but not limited to, income, expenditures, and financial trends and issues as they apply to the continuing care retirement community and proposed changes in policies, programs, and services. This section does not preclude a provider from taking action or making a decision at any time, without regard to the meetings required under this subdivision. (d) At least 30 days prior to the implementation of an increase in the monthly care fee, the designated representative of the provider shall convene a meeting, to which all residents shall be invited, for the purpose of discussing the reasons for the increase, the basis for determining the amount of the increase, and the data used for calculating the increase. This meeting may coincide with the semiannual meetings required in subdivision (c). At least 14 days prior to the meeting to discuss an increase in the monthly care fee, the provider shall make available to each resident or resident household comparative data showing the budget for the upcoming year, the current year’s budget, and actual and projected expenses for the current year, and a copy shall be posted in a conspicuous location at each facility. (e) The governing body of a provider or the designated representative of the provider shall provide residents with at least 14 days’ advance notice of each meeting provided for in subdivisions (c) and (d), and shall permit residents attending the meeting to present issues orally and in writing. The governing body of a provider or the designated representative of the provider shall post the notice of, and the agenda for, the meeting in a conspicuous place in the continuing care retirement community at least 14 days prior to the meeting. The governing body of a provider or the designated representative of the provider shall make available to residents of the continuing care retirement community upon request the agenda and accompanying materials at least seven days prior to the meeting. (f) A provider shall make available to the resident association or its governing body, or if neither exists, to a committee of residents, a financial statement of activities for that facility comparing actual costs to budgeted costs broken down by expense category, not less than quarterly, with a written explanation of all significant budget variances, and shall consult with the resident association or its governing body, or, if neither exists, with a committee of residents, during the annual budget planning process. The effectiveness of consultations during the annual budget planning process shall be evaluated at a minimum every two years by the continuing care retirement community administration. The evaluation, including any policies adopted relating to cooperation with residents, shall be made available to the resident association or its governing body, or, if neither exists, to a committee of residents at least 14 days prior to the next semiannual meeting of residents and the provider’s governing body provided for in subdivision (c), and a copy of the evaluation shall be posted in a conspicuous location at each facility. (g) A provider shall, within 10 days after the annual report required pursuant to Section 1790 is submitted to the department, provide, at a central and conspicuous location in the community and in a conspicuous location on the provider’s Internet Web site, a copy of the annual report, including the multifacility statement of activities and a copy of the annual audited financial statement, but excluding personal confidential information. (h) A provider shall maintain, as public information, available upon request to residents, prospective residents, and the public, minutes of the meetings held by the provider’s governing body and shall retain these records for at least three years from the date the records were filed or issued. (i) Except as provided in subdivision (s), the governing body of a provider that is not part of a multifacility organization with more than one continuing care retirement community in the state shall accept both of the following: (1) At least one resident of the continuing care retirement community it operates to participate as a nonvoting resident representative to the provider’s governing body. (2) At least one resident, or two residents for a governing body with 21 or more members, of the continuing care retirement community it operates to participate as a voting member of the provider’s governing body. A provider’s governing body shall not be required to meet the requirements of this paragraph until there is a vacancy on the provider’s governing body or upon the next regularly scheduled selection of the provider’s governing body occurring on or after January 1, 2015. A resident member shall perform his or her duties in a manner that complies with the standards of conduct and fiduciary duties of all other members of the governing board. (j) Except as provided in subdivision (s), in a multifacility organization having more than one continuing care retirement community in the state, the governing body of the multifacility organization shall do both of the following: (1) Elect either to have at least one nonvoting resident representative to the provider’s governing body for each California-based continuing care retirement community the provider operates or to have a resident-elected committee composed of representatives of the residents of each California-based continuing care retirement community that the provider operates select or nominate at least one nonvoting resident representative to the provider’s governing body for every three California-based continuing care retirement communities, or fraction thereof, that the provider operates. If a multifacility organization elects to have one representative for every three communities that the provider operates, the provider shall provide to the president of the residents association of each of the communities that do not have a resident representative the same notice of meetings, packets, minutes, and other materials as the resident representative. At the reasonable discretion of the provider, information related to litigation, personnel, competitive advantage, or confidential information that is not appropriate to disclose, may be withheld. (2) (A) Elect to have at least one resident, or two residents for a governing body with 21 or more members, from any of the continuing care retirement communities it operates to participate as voting members of the provider’s governing body. A provider’s governing body shall not be required to meet the requirements of this subparagraph until there is a vacancy on the provider’s governing body or upon the next regularly scheduled selection of the provider’s governing body occurring on or after January 1, 2015. A resident member shall perform his or her duties in a manner that complies with the standards of conduct and fiduciary duties of all other members of the governing board. (B) If there are communities that do not have a resident from the community as a voting member of the provider’s governing body, the provider shall provide to the president of the resident association of each of those communities the same notice of meetings, packets, minutes, and other materials as the resident voting members. At the reasonable discretion of the provider, information related to litigation, personnel, competitive advantage, or confidential information that is not appropriate to disclose may be withheld. (k) In order to encourage innovative and alternative models of resident involvement, residents selected pursuant to paragraph (1) of subdivision (i) or paragraph (1) of subdivision (j) to participate as a resident representative to the provider’s governing body may, at the option of the resident association, be selected in any one of the following ways: (1) By a majority vote of the resident association of a provider or by a majority vote of a resident-elected committee of residents of a multifacility organization. (2) If no resident association exists, any resident may organize a meeting of the majority of the residents of the continuing care retirement community to select or nominate residents to represent them on the governing body. (3) Any other method designated by the resident association. (l) A resident member of the provider’s governing body selected pursuant to paragraph (2) of subdivision (i) or paragraph (2) of subdivision (j) shall be nominated to participate on the provider’s governing body by the resident association or, if a resident association does not exist, a committee of residents. The resident association or committee of residents may nominate multiple nominees from which the provider’s governing body may approve a resident member. If the governing body disapproves of the resident association’s nominations, the resident association or the committee of residents shall nominate additional resident members for the governing body’s approval or disapproval until the vacancy is filled. (m) The resident association, organizing resident, or, in the case of a multifacility organization, the resident-elected committee of residents, shall give residents of the continuing care retirement community at least 30 days’ advance notice of the meeting to select a resident representative and resident members of the governing body and shall post the notice in a conspicuous place at the continuing care retirement community. (n) (1) Except as provided in subdivision (o), resident representatives shall receive the same notice of meetings, packets, minutes, and other materials as members of the provider’s governing body and shall be permitted to attend, speak, and participate in all meetings of the governing body. (2) Resident representatives may share information from meetings with other residents, unless the information is confidential or doing so would violate fiduciary duties to the provider. A resident representative shall be permitted to attend meetings of the governing body committee or committees that review the annual budget of the facility or facilities and recommend increases in monthly care fees. The resident representative shall receive the same notice of meetings, information, packets, minutes, and other materials as committee members, and shall be permitted to attend, speak, and participate in the committee meetings. Resident representatives shall perform their duties in good faith and with such care, including reasonable inquiry, as an ordinarily prudent person in a like position would use under similar circumstances. (o) Notwithstanding subdivision (n), the provider’s governing body may exclude resident representatives from its executive sessions and from receiving meeting materials to be discussed during executive session. However, resident representatives shall be included in executive sessions and shall receive all meeting materials to be discussed during executive sessions related to discussions of the annual budgets, increases in monthly care fees, indebtedness, and expansion of new and existing continuing care retirement communities. (p) The provider shall pay all reasonable travel costs for resident representatives and resident members of the governing body. (q) The provider shall disclose in writing the extent of resident involvement with the governing body to prospective residents. (r) A provider is not prohibited from exceeding the minimum resident participation requirements of this section by, for example, having more resident meetings, more resident representatives or resident members of the governing body to the provider’s governing body than required, or by having one or more residents on the provider’s governing body who are selected with the active involvement of residents. (s) (1) If a provider having at least one continuing care retirement community in the state does not have a governing body within the state, the provider shall, in lieu of appointing a voting member pursuant to subdivision (i) or (j), appoint a select committee of its governing body members to meet pursuant to paragraph (6) of subdivision (a) of Section 307 of the Corporations Code, or in a location that has been designated in the notice of the meeting, with the resident association or a resident-elected committee of residents no less frequently than a reasonable period prior to any regularly scheduled meeting of the governing body at each of its facilities in the state to address concerns of the residents and to ensure that the opinions of the residents are relayed to all governing body members of the provider. (2) (A) For a provider that is a sole proprietorship, general partnership, limited partnership, limited liability company, or a closely held corporation, the provider may, in lieu of appointing a voting member pursuant to paragraph (2) of subdivision (i) or paragraph (2) of subdivision (j), appoint a select committee of its members to, or, if it is a sole proprietorship, the sole proprietor shall, meet in a location that has been designated in the notice of the meeting with the resident association or a resident-elected committee of residents at each of its facilities semiannually and at least 60 days prior to any financial or administrative changes, including, but not limited to, any proposed increase in monthly fees, indebtedness of the provider, expansion or contraction of the community facility, or other changes that would result in a budget variance, or any policies, programs, or services that would materially change the operation or environment of the community, to address concerns of the residents and to ensure that the opinions of the residents are relayed to all members of the provider. (B) If any member of a limited liability company is a corporation, a nonvoting resident representative elected pursuant to paragraph (1) of subdivision (i) or paragraph (1) of subdivision (j) shall be invited to the meetings of the governing body of that corporation that address any of the proposed changes specified in subparagraph (A) and shall be permitted to address those proposed changes. The governing body of the corporation shall provide the nonvoting resident representative with at least 30 days’ advance notice of the meeting. If more than one member of the limited liability company is a corporation, only the corporation with the largest interest in the limited liability company shall comply with this subparagraph. (Amended by Stats. 2014, Ch. 699, Sec. 1. (AB 1751) Effective January 1, 2015.)
  153. 1772.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. )

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    An entity generally cannot present or publish material implying it sponsors or guarantees a continuing care contract unless required conditions are met, including filing a written declaration accepting full financial responsibility. The department may grant an affinity group exemption, and providers must disclose when a named entity is not actually affiliated with the retirement community.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1772. (a) No report, circular, public announcement, certificate, financial statement, or any other printed matter or advertising material, or oral representation, that states or implies that an entity sponsors, guarantees, or assures the performance of any continuing care contract, shall be published or presented to any prospective resident unless both of the following have been met: (1) Paragraph (5) of subdivision (a) of Section 1788 applies and the requirements of that paragraph have been satisfied. (2) The entity files with the department a duly authorized and executed written declaration that it accepts full financial responsibility for each continuing care contract. The filing entity shall be subject to the application requirements set forth in Article 2 (commencing with Section 1779), shall be a coobligor for the subject contracts, and shall be a coprovider on the applicable provisional certificate of authority and certificate of authority. (b) Implied sponsorship includes the use of the entity’s name for the purpose of implying that the entity’s reputation may be relied upon to ensure the performance of the continuing care contract. (c) Any implication that the entity may be financially responsible for these contracts may be rebutted by a conspicuous statement, in all continuing care contracts and marketing materials, that clearly discloses to prospective residents and all transferors that the entity is not financially responsible. (d) On written appeal to the department, and for good cause shown, the department may, in its discretion, allow an affinity group exemption from this section. If an exemption is granted, every continuing care contract shall include a conspicuous statement which clearly discloses to prospective residents and all transferors that the affinity group entity is not financially responsible. (e) If the name of an entity, including, but not limited to, a religion, is used in connection with the development, marketing, or continued operation of a continuing care retirement community, but that entity does not actually own, control, manage, or otherwise operate the continuing care retirement community, the provider shall clearly disclose the absence of that affiliation, involvement, or association with the continuing care retirement community in the continuing care contract. (Amended by Stats. 2000, Ch. 820, Sec. 16. Effective January 1, 2001.)
  154. 1772.2.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. )

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    Advertising for continuing care must show the provider’s authority number, and if there is no certificate of authority yet, it must also state whether an application was filed and, if applicable, that a permit or provisional certificate has been issued.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1772.2. (a) All printed advertising materials, including brochures, circulars, public announcements, and similar publications pertaining to continuing care or a continuing care retirement community shall specify the number on the provider’s provisional certificate of authority or certificate of authority. (b) If the provider has not been issued a certificate of authority, all advertising materials shall specify both of the following: (1) Whether an application has been filed. (2) If applicable, that a permit to accept deposits or a provisional certificate of authority has been issued. (Added by Stats. 2000, Ch. 820, Sec. 17. Effective January 1, 2001.)
  155. 1773.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. )

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    A provider may not sell or transfer ownership of a continuing care retirement community, or enter a third-party management contract for it, without department approval.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1773. (a) A provisional certificate of authority or certificate of authority may not be sold, transferred, or exchanged in any manner. A provider may not sell or transfer ownership of the continuing care retirement community without the approval of the department. Any violation of this section shall cause the applicable provisional certificate of authority or certificate of authority to be forfeited by operation of law pursuant to subdivision (c) of Section 1793.7. (b) A provider may not enter into a contract with a third party for overall management of the continuing care retirement community without the approval of the department. The department shall review the transaction for consistency with this chapter. (c) Any violation of this section shall be grounds for revocation for the provider’s provisional certificate of authority or certificate of authority under Section 1793.21. (Amended by Stats. 2000, Ch. 820, Sec. 18. Effective January 1, 2001.)
  156. 1774.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. )

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    An arrangement allowed by certain permits or certificates may not be treated as a security for any purpose.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1774. No arrangement allowed by a permit to accept deposits, a provisional certificate or authority, or a certificate of authority issued by the department under this chapter may be deemed a security for any purpose. (Amended by Stats. 2000, Ch. 820, Sec. 19. Effective January 1, 2001.)
  157. 1775.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. )

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    A continuing care provider may restrict a resident’s transfer of a unit interest and may require provider approval; the provider must record any real-property restrictions.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1775. (a) To the extent that this chapter, as interpreted by the department, conflicts with the statutes, regulations, or interpretations governing the sale or hire of real property, this chapter shall prevail. (b) Notwithstanding any law or regulation to the contrary, a provider for a continuing care retirement community may restrict or abridge the right of any resident, whether or not the resident owns an equity interest, to sell, lease, encumber, or otherwise convey any interest in the resident’s unit, and may require that the resident only sell, lease, or otherwise convey the interest to persons approved by the provider. Provider approval may be based on factors which include, but are not limited to, age, health status, insurance risk, financial status, or burden on the provider’s personnel, resources, or physical facility. The provider shall record any restrictions on a real property interest. (c) To the extent that this chapter conflicts with Sections 51.2 and 51.3 of the Civil Code, this chapter shall have precedence. A continuing care provider, at its discretion, may limit entrance based on age. (d) This chapter imposes minimum requirements upon any entity promising to provide, proposing to promise to provide, or providing continuing care. (e) This chapter shall be liberally construed for the protection of persons attempting to obtain or receiving continuing care. (f) A resident’s entry into a continuing care contract described in this chapter shall be presumptive evidence of the resident’s intent not to return to his or her prior residence to live for purposes of qualifying for Medi-Cal coverage under Sections 14000 et seq. of the Welfare and Institutions Code and Section 50425 of Title 22 of the California Code of Regulations. (Amended by Stats. 2000, Ch. 820, Sec. 20. Effective January 1, 2001.)
  158. 1776.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. )

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    The department must adopt, amend, or repeal reasonable regulations to carry out this chapter and protect the rights of the elderly.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1776. The department shall adopt, amend, or repeal, in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, reasonable regulations as may be necessary or proper to carry out the purposes and intent of this chapter and to protect the rights of the elderly. (Repealed and added by Stats. 1990, Ch. 875, Sec. 2.)
  159. 1776.2.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. )

    Verify source ↗

    The department may inspect and examine continuing care retirement communities, including their books and records and required services, through a duly authorized representative.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1776.2. The department may, by any duly authorized representative, inspect and examine any continuing care retirement community, including the books and records thereof, or the performance of any service required by the continuing care contracts. (Amended by Stats. 1995, Ch. 920, Sec. 10. Effective January 1, 1996.)
  160. 1776.3.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. )

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    The department’s branch must inspect and review each continuing care retirement community at least every three years, issue guidelines for disaster preparedness plans, respond to resident complaints within 15 business days, provide certain filed documents on request within 15 business days, and require providers to disclose and post citations.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1776.3. (a) The Continuing Care Contracts Branch of the department shall enter and review each continuing care retirement community in the state at least once every three years to augment the branch’s assessment of the provider’s financial soundness. (b) During its facility visits, the branch shall consider the condition of the facility, whether the facility is operating in compliance with applicable state law, and whether the provider is performing the services it has specified in its continuing care contracts. (c) The branch shall issue guidelines that require each provider to adopt a comprehensive disaster preparedness plan, update that plan at least every three years, submit a copy to the department, and make copies available to residents in a prominent location in each continuing care retirement community facility. (d) (1) The branch shall respond within 15 business days to residents’ rights, service-related, and financially related complaints by residents, and shall furnish to residents upon request and within 15 business days any document or report filed with the department by a continuing care provider, except documents protected by privacy laws. (2) The provider shall disclose any citation issued by the department pursuant to Section 1793.6 in its disclosure statement to residents as updated annually, and shall post a notice of the citation in a conspicuous location in the facility. The notice shall include a statement indicating that residents may obtain additional information regarding the citation from the provider and the department. (Amended by Stats. 2011, Ch. 32, Sec. 7. (AB 106) Effective June 29, 2011. Operative January 1, 2012, by Sec. 73 of Stats. 2011, Ch. 32.)
  161. 1776.4.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. )

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    The department may contract with any entity to provide consultation services, and the entity must follow this chapter and the department’s rules, regulations, and standards. The department must reimburse the entity for services performed under this section.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1776.4. The department may contract with any entity to provide consultation services. In providing the services, the entity shall conform to the requirements of this chapter and to the rules, regulations, and standards of the department. The department shall reimburse an entity for services performed pursuant to this section. (Added by Stats. 1990, Ch. 875, Sec. 2.)
  162. 1776.6.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. )

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    The department must provide specified documents and information on request, and it must keep resident data used to calculate reserves confidential.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1776.6. (a) Pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code), the following documents are public information and shall be provided by the department upon request: audited financial statements, annual reports and accompanying documents, compliance or noncompliance with reserve requirements, whether an application for a permit to accept deposits and certificate of authority has been filed, whether a permit or certificate has been granted or denied, and the type of care offered by the provider. (b) The department shall regard resident data used in the calculation of reserves as confidential. (Amended by Stats. 2021, Ch. 615, Sec. 236. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615.)
  163. 1778.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. )

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    This section creates the CCRC Oversight Fund, lets the department use and manage the fund for program costs, caps overhead spending at 5 percent of collected fees, and requires the department to adjust fees and post the approved budget link.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 1. General Provisions [1770 - 1778] ( Article 1 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1778. (a) There is hereby created in the State Treasury a fund that shall be known as the CCRC Oversight Fund. The fund shall consist of fees received by the department pursuant to this chapter. Notwithstanding Section 13340 of the Government Code, the CCRC Oversight Fund is hereby continuously appropriated to the department, without regard to fiscal years. (b) Use of the funds appropriated pursuant to this section shall include funding of the following: (1) Program personnel salary costs, including, but not limited to, the following: (A) A Continuing Care Contracts Program Manager at a level consistent with other management classifications that direct a regulatory program with statewide impact. The position shall require skills and knowledge at the highest level with responsibility for work of the most critical or sensitive nature as it relates to the department’s mission, including protecting vulnerable elderly persons, supervising technical staff with oversight of highly complex operations, and responsibility for policy and program evaluation and recommendations. (B) A full-time legal counsel with a working knowledge of all laws relating to the regulation of continuing care retirement communities and residential care facilities for the elderly. (C) A financial analyst with working knowledge of generally accepted accounting principles and auditing standards. (D) Other appropriate analytical and technical support positions. (2) Contracts with technically qualified persons, including, but not limited to, financial, actuarial, and marketing consultants, as necessary to provide advice regarding the feasibility or viability of continuing care retirement communities and providers. (3) Other program costs or costs directly supporting program staff. (4) The department shall use no more than 5 percent of the fees collected pursuant to this section for overhead costs, including facilities operation and indirect department and division costs. (c) As needed, the department shall adjust the calculations for the application fees under Section 1779.2 and annual fees under Section 1791 to ensure that the balance in the CCRC Oversight Fund is adequate to fund the reasonable regulatory costs of the program, as specified in subdivision (b). If the balance in the CCRC Oversight Fund exceeds an amount adequate to fund the reasonable regulatory costs of the program, as specified in subdivision (b), the department shall adjust the calculations for the application fees under Section 1779.2 and annual fees under Section 1791 to reduce the amounts collected. A link to the approved budget for the Continuing Care Contracts Section shall be posted on the department’s internet website. (d) The intent of the Legislature is to empower the program administrator with the ability and authorization to obtain necessary resources or staffing to carry out the program objectives. (Amended by Stats. 2022, Ch. 538, Sec. 1. (SB 707) Effective January 1, 2023.)
  164. 1779.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 2. Application [1779 - 1779.10] ( Article 2 added by Stats. 1990, Ch. 875, Sec. 2. )

    Verify source ↗

    An entity must file for a permit and certificate of authority before taking certain continuing-care steps, and providers must give required notices and postings in some situations.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 2. Application [1779 - 1779.10] ( Article 2 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1779. (a) An entity shall file an application for a permit to accept deposits and for a certificate of authority with the department, as set forth in this chapter, before doing any of the following: (1) Accepting any deposit, reservation fee, or any other payment that is related to a promise or proposal to promise to provide continuing care. (2) Entering into any reservation agreement, deposit agreement, or continuing care contract. (3) Commencing construction of a prospective continuing care retirement community. If the project is to be constructed in phases, the application shall include all planned phases. (4) Expanding an existing continuing care retirement community whether by converting existing buildings or by new construction. (5) Converting an existing structure to a continuing care retirement community. (6) Recommencing marketing on a planned continuing care retirement community when the applicant has previously forfeited a permit to accept deposits pursuant to Section 1703.7. (7) Executing new continuing care contracts after a provisional certificate of authority or certificate of authority has been inactivated, revoked, surrendered, or forfeited. (8) Closing the sale or transfer of a continuing care retirement community or assuming responsibility for continuing care contracts. (b) For purposes of paragraph (4) of subdivision (a), an expansion of a continuing care retirement community shall be deemed to occur when there is an increase in the capacity stated on the residential care facility for the elderly license issued to the continuing care retirement community, an increase in the number of units at the continuing care retirement community, an increase in the number of skilled nursing beds, or additions to or replacement of existing continuing care retirement community structures that may affect obligations to current residents. (c) Any provider that alters, or proposes to alter, its organization, including by means of a change in the type of entity it is, separation from another entity, merger, affiliation, spinoff, or sale, shall file a new application and obtain a new certificate of authority before the new entity may enter into any new continuing care contracts. (d) A new application shall not be required for an entity name change if there is no change in the entity structure or management. If the provider undergoes a name change, the provider shall notify the department in writing of the name change and shall return the previously issued certificate of authority for reissuance under the new name. (e) Within 10 days of submitting an application for a certificate of authority pursuant to paragraph (3), (4), (7), or (8) of subdivision (a), the provider shall notify residents of the provider’s existing community or communities of its application. The provider shall notify its resident associations of any filing with the department to obtain new financing, additional financing for a continuing care retirement community, the sale or transfer of a continuing care retirement community, any change in structure, and of any applications to the department for any expansion of a continuing care retirement community. A summary of the plans and application shall be posted in a prominent location in the continuing care retirement community so as to be accessible to all residents and the general public, indicating in the summary where the full plans and application may be inspected in the continuing care retirement community. (f) When the department determines that it has sufficient information on the provider or determines that the provisions do not apply and the protections provided by this article are not compromised, the department may eliminate all or portions of the application contents required under Section 1779.4 for applications filed pursuant to paragraphs (4), (5), (6), (7), and (8) of subdivision (a) or pursuant to subdivision (c). (Amended by Stats. 2000, Ch. 820, Sec. 25. Effective January 1, 2001.)
  165. 1779.10.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 2. Application [1779 - 1779.10] ( Article 2 added by Stats. 1990, Ch. 875, Sec. 2. )

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    The department must deny the application if the applicant does not satisfy listed requirements, and it must notify the applicant in writing if the application is denied.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 2. Application [1779 - 1779.10] ( Article 2 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1779.10. (a) The department shall deny an application for a permit to accept deposits and a certificate of authority if the applicant fails to do any of the following: (1) Pay the application fee as required by Section 1779.2. (2) Submit all information required by this chapter. (3) Submit evidence to support a reasonable belief that any interested party of the proposed continuing care retirement community who has committed any offenses listed in subdivision (k) of Section 1779.4 is of such good character as to indicate rehabilitation. (4) Submit evidence to support a reasonable belief that the applicant is capable of administering the continuing care retirement community in compliance with applicable laws and regulations when an action specified in subdivision (j) or (k) of Section 1779.4 has been taken against the applicant. (5) Demonstrate the feasibility of the proposed continuing care retirement community. (6) Comply with residential care facility for the elderly licensing requirements. (b) If the application is denied, no portion of the paid application fee shall be refundable or refunded. (c) Immediately upon the denial of an application, the department shall notify the applicant in writing. (d) The Notice of Denial from the department shall contain all of the following: (1) A statement that the application is denied. (2) The grounds for the denial. (3) A statement informing the applicant that it has the right to appeal. (4) A statement that the applicant has 30 calendar days from the date that the Notice of Denial was mailed to appeal the denial, and where to send the appeal. (e) If the applicant appeals the denial, further proceedings shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. (Amended by Stats. 2000, Ch. 820, Sec. 30. Effective January 1, 2001.)
  166. 1779.2.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 2. Application [1779 - 1779.10] ( Article 2 added by Stats. 1990, Ch. 875, Sec. 2. )

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    Applicants for certain continuing care-related permits must pay an application fee, including an initial 80% payment on filing and the balance before approval or issuance.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 2. Application [1779 - 1779.10] ( Article 2 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1779.2. (a) Any entity filing an application for a permit to accept deposits and a certificate of authority shall pay an application fee. (b) The applicant shall pay 80 percent of the application fee for all planned phases at the time the applicant submits its application. The 80 percent payment shall be made by check payable to the Continuing Care Provider Fee Fund. The department shall not process the application until it has received this fee. (c) For new continuing care retirement communities or for the sale or transfer of existing continuing care retirement communities, the application fee shall be calculated as one-tenth of 1 percent of the purchase price of the continuing care retirement community, or the estimated construction cost, including the purchase price of the land or the present value of any long-term lease and all items listed in subparagraph (D) of paragraph (2) of subdivision (y) of Section 1779.4. (d) For existing continuing care retirement communities that are proposing new phases, remodeling or an expansion, the application fee shall be calculated as one-tenth of 1 percent of the cost of the addition, annexation, or renovation, including the value of the land and improvements and all items listed in subparagraph (D) of paragraph (2) of subdivision (y) of Section 1779.4. (e) For existing facilities converting to continuing care retirement communities, the application fee shall be calculated as one-tenth of 1 percent of the current appraised value of the facility, including the land, or present value of any long-term lease. (f) For organizational changes, the application fee shall be determined by the department based on the time and resources it considers reasonably necessary to process the application, including any consultant fees. The minimum application fee for those applications shall be two thousand dollars ($2,000). (g) The applicant shall pay the remainder of the application fee before the provisional certificate of authority is issued, or in the case of expansions or remodeling, before final approval of the project is granted. The applicant shall make this payment by check payable to the Continuing Care Provider Fee Fund. (Amended by Stats. 2000, Ch. 820, Sec. 26. Effective January 1, 2001.)
  167. 1779.4.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 2. Application [1779 - 1779.10] ( Article 2 added by Stats. 1990, Ch. 875, Sec. 2. )

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    Applicants for a continuing care retirement community application must include a long list of required documents and disclosures, and certain officers must sign in some cases.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 2. Application [1779 - 1779.10] ( Article 2 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1779.4. An application shall contain all of the following: (a) A statement signed by the applicant under penalty of perjury certifying that to the best of the applicant’s knowledge and belief, the items submitted in the application are correct. If the applicant is a corporation, the chief executive officer shall sign the statement. If there are multiple applicants, these requirements shall apply to each applicant. (b) The name and business address of the applicant. (c) An itemization of the total fee calculation, including sources of figures used, and a check in the amount of 80 percent of the total application fee. (d) The name, address, and a description of the real property of the continuing care retirement community. (e) An estimate of the number of continuing care residents at the continuing care retirement community. (f) A description of the proposed continuing care retirement community, including the services and care to be provided to residents or available for residents. (g) A statement indicating whether the application is for a certificate of authority to enter into continuing care or life care contracts. (h) A license to operate the proposed continuing care retirement community as a residential care facility for the elderly or documentation establishing that the applicant has received a preliminary approval for licensure from the department’s Community Care Licensing Division. (i) A license to operate the proposed skilled nursing facility or evidence that an application has been filed with the Licensing and Certification Division of the State Department of Health Services, if applicable. (j) A statement disclosing any revocation or other disciplinary action taken, or in the process of being taken, against a license, permit, or certificate held or previously held by the applicant. (k) A description of any matter in which any interested party involved with the proposed continuing care retirement community has been convicted of a felony or pleaded nolo contendere to a felony charge, or been held liable or enjoined in a civil action by final judgment, if the felony or civil action involved fraud, embezzlement, fraudulent conversion, or the misappropriation of property. For the purpose of this subdivision, “interested party” includes any representative of the developer of the proposed continuing care retirement community or the applicant, including all general partners, executive officers, or chief operating officers and board members of corporations; and managing members and managers of limited liability companies for each entity; who has significant decisionmaking authority with respect to the proposed continuing care retirement community. (l) If the applicant is an entity other than an individual, the following information shall also be submitted: (1) A statement identifying the type of legal entity and listing the interest and extent of the interest of each principal in the legal entity. For the purposes of this paragraph, “principal” means any person or entity having a financial interest in the legal entity of 10 percent or more. When the application is submitted in the name of a corporation, the parent, sole corporate shareholder, or sole corporate member who controls the operation of the continuing care retirement community shall be listed as an applicant. When multiple corporate applicants exist, they shall be listed jointly by corporate name on the application, and the certificate of authority shall be issued in the joint names of the corporations. When the application is submitted by a partnership, all general partners shall be named as coapplicants and the department shall name them as coproviders on any certificate of authority it issues. (2) The names of the members of the provider’s governing body. (3) A statement indicating whether the applicant was or is affiliated with a religious, charitable, nonprofit or for-profit organization, and the extent of any affiliation. The statement shall also include the extent, if any, to which the affiliate organization will be responsible for the financial and contract obligations of the applicant and shall be signed by a responsible officer of the affiliate organization. (4) A statement identifying any parent entity or other affiliate entity, the primary activities of each entity identified, the relationship of each entity to the applicant, and the interest in the applicant held by each entity. (5) Copies of all contracts, management agreements, or other documents setting forth the relationships with each of the other entities. (6) A statement indicating whether the applicant, a principal, a parent entity, affiliate entity, subsidiary entity, any responsible employee, manager, or board member, or anyone who profits from the continuing care retirement community has had applied against it any injunctive or restrictive order of a court of record, or any suspension or revocation of any state or federal license, permit, or certificate, arising out of or relating to business activity of health or nonmedical care, including, but not limited to, actions affecting a license to operate a health care institution, nursing home, intermediate care facility, hospital, home health agency, residential care facility for the elderly, community care facility, or child day care facility. (m) A description of the business experience of the applicants in the operation or management of similar facilities. (n) A copy of any advertising material regarding the proposed continuing care retirement community prepared for distribution or publication. (o) Evidence of the bonds required by Section 1789.8. (p) A copy of any proposed reservation agreement. (q) A copy of the proposed deposit agreements. (r) The name of the proposed escrow agent and depository. (s) Any copies of reservation and deposit escrow account agreements. (t) A copy of any proposed continuing care contracts. (u) A statement of any monthly care fees to be paid by residents, the components and services considered in determining the fees, and the manner by which the provider may adjust these fees in the future. If the continuing care retirement community is already in operation, or if the provider operates one or more similar continuing care retirement communities within this state, the statement shall include tables showing the frequency and each percentage increase in monthly care rates at each continuing care retirement community for the previous five years, or any shorter period for which each continuing care retirement community may have been operated by the provider or his or her predecessor in interest. (v) A statement of the actions that have been, or will be, taken by the applicant to fund reserves as required by Section 1792 or 1792.6 and to otherwise ensure that the applicant will have adequate finances to fully perform continuing care contract obligations. The statement shall describe actions such as establishing restricted accounts, sinking funds, trust accounts, or additional reserves. If the applicant is purchasing an existing continuing care retirement community from a selling provider, the applicant shall provide an actuarial report to determine the liabilities of existing continuing care contracts and demonstrate the applicant’s ability to fund those obligations. (w) A copy of audited financial statements for the three most recent fiscal years of the applicant or any shorter period of time the applicant has been in existence, prepared in accordance with generally accepted accounting principles and accompanied by an independent auditor’s report from a reputable firm of certified public accountants. The audited financial statements shall be accompanied by a statement signed and dated by both the chief financial officer and chief executive officer for the applicant or, if applicable, by each general partner, or each managing member and manager, stating that the financial statements are complete, true, and correct in all material matters to the best of their knowledge. (x) Unaudited interim financial statements shall be included if the applicant’s fiscal year ended more than 90 days prior to the date of filing. The statements shall be either quarterly or monthly, and prepared on the same basis as the annual audited financial statements or any other basis acceptable to the department. (y) A financial study and a marketing study that reasonably project the feasibility of the proposed continuing care retirement community and are prepared by a firm or firms acceptable to the department. These studies shall address and evaluate, at a minimum, all of the following items: (1) The applicant and its prior experience, qualifications, and management, including a detailed description of the applicant’s proposed continuing care retirement community, its service package, fee structure, and anticipated opening date. (2) The construction plans, construction financing, and permanent financing for the proposed continuing care retirement community, including a description of the anticipated source, cost, terms, and use of all funds to be used in the land acquisition, construction, and operation of the continuing care retirement community. This proposal shall include, at a minimum, all of the following: (A) A description of all debt to be incurred by the applicant for the continuing care retirement community, including the anticipated terms and costs of the financing. The applicant’s outstanding indebtedness related to the continuing care retirement community may not, at any time, exceed the appraised value of the continuing care retirement community. (B) A description of the source and amount of the equity to be contributed by the applicant. (C) A description of the source and amount of all other funds, including entrance fees, that will be necessary to complete and operate the continuing care retirement community. (D) A statement itemizing all estimated project costs, including the real property costs and the cost of acquiring or designing and constructing the continuing care retirement community, and all other similar costs that the provider expects to incur prior to the commencement of operation. This itemization shall identify all costs related to the continuing care retirement community or project, including financing expenses, legal expenses, occupancy development costs, marketing costs, and furniture and equipment. (E) A description of the interest expense, insurance premiums, and property taxes that will be incurred prior to opening. (F) An estimate of any proposed continuing care retirement community reserves required for items such as debt service, insurance premiums, and operations. (G) An estimate of the amount of funds, if any, that will be necessary to fund startup losses, fund statutory and refundable contract reserves, and to otherwise provide additional financial resources in an amount sufficient to ensure full performance by the provider of its continuing care contract obligations. (3) An analysis of the potential market for the applicant’s continuing care retirement community, addressing such items as: (A) A description of the service area, including its demographic, economic, and growth characteristics. (B) A forecast of the market penetration the continuing care retirement community will achieve based on the proposed fee structure. (C) Existing and planned competition in and about the primary service area. (4) A detailed description of the sales and marketing plan, including all of the following: (A) Marketing projections, anticipated sales, and cancellation rates. (B) Month-by-month forecast of unit sales through sellout. (C) A description of the marketing methods, staffing, and advertising media to be used by the applicant. (D) An estimate of the total entrance fees to be received from residents prior to opening the continuing care retirement community. (5) Projected move-in rates, deposit collections, and resident profiles, including couple mix by unit type, age distribution, care and nursing unit utilization, and unit turnover or resale rates. (6) A description or analysis of development-period costs and revenues throughout the development of the proposed continuing care retirement community. (z) Projected annual financial statements for the period commencing on the first day of the applicant’s current fiscal year through at least the fifth year of operation. (1) Projected annual financial statements shall be prepared on an accrual basis using the same accounting principles and procedures as the audited financial statements furnished pursuant to subdivision (x). (2) Separate projected annual cash-flow statements shall be provided. These statements shall show projected annual cash-flows for the duration of any debt associated with the continuing care retirement community. If the continuing care retirement community property is leased, the cash-flow statement shall demonstrate the feasibility of closing the continuing care retirement community at the end of the lease period. (A) The projected annual cash-flow statements shall be submitted using prevailing rates of interest, and assume no increase of revenues and expenses due to inflation. (B) The projected annual cash-flow statements shall include all of the following: (i) A detailed description and a full explanation of all assumptions used in preparing the projections, accompanied by supporting supplementary schedules and calculations, all to be consistent with the financial study and marketing study furnished pursuant to subdivision (y). The department may require such other supplementary schedules, calculations, or projections as it determines necessary for an adequate application. (ii) Cash-flow from monthly operations showing projected revenues for monthly fees received from continuing care contracts, medical unit fees if applicable, other periodic fees, gifts and bequests used in operations, and any other projected source of revenue from operations less operating expenses. (iii) Contractual cash-flow from activities showing projected revenues from presales, deposit receipts, entrance fees, and all other projected sources of revenue from activities, less contract acquisition, marketing, and advertising expenditures. (iv) Cash-flows from financing activities, including, but not limited to, bond or loan proceeds less bond issue or loan costs and fees, debt service including CAL Mortgage Insurance premiums, trustee fees, principal and interest payments, leases, contracts, rental agreements, or other long-term financing. (v) Cash-flows from investment activities, including, but not limited to, construction progress payments, architect and engineering services, furnishings, and equipment not included in the construction contract, project development, inspection and testing, marketable securities, investment earnings, and interfund transfers. (vi) The increase or decrease in cash during the projection period. (vii) The beginning cash balance, which means cash, marketable securities, reserves, and other funds on hand, available, and committed to the proposed continuing care retirement community. (viii) The cash balance at the end of the period. (ix) Details of the components of the ending cash balance shall be provided for each period presented, including, but not limited to, the ending cash balances for bond reserves, other reserve funds, deposit funds, and construction funds balance. (3) If the cash-flow statements required by paragraph (2) indicate that the provider will have cash balances exceeding two months’ projected operating expenses of the continuing care retirement community, a description of the manner in which the cash balances will be invested, and the persons who will be making the investment decisions, shall accompany the application. (4) The department may require the applicant to furnish additional data regarding its operating budgets, projections of cash required for major repairs and improvements, or any other matter related to its projections including additional information, schedules, and calculations regarding occupancy rate projections, unit types, couple mix, sex and age estimates for resident mix, turnover rates, refund obligations, and sales. (aa) (1) A declaration by the applicant acknowledging that it is required to execute and record a Notice of Statutory Limitation on Transfer relating to continuing care retirement community property. (2) The notice required in this subdivision shall be acknowledged and suitable for recordation, describe the property, declare the applicant’s intention to use all or part of the described property for the purposes of a continuing care retirement community pursuant to this chapter, and shall be in substantially the following form: ## “NOTICE OF STATUTORY LIMITATION ON TRANSFER Notice is hereby given that the property described below is licensed, or proposed to be licensed, for use as a continuing care retirement community and accordingly, the use and transfer of the property is subject to the conditions and limitations as to use and transfer set forth in Sections 1773 and 1789.4 of the Health and Safety Code. This notice is recorded pursuant to subdivision (aa) of Section 1779.4 of the Health and Safety Code. The real property, which is legally owned by (insert the name of the legal owner) and is the subject of the statutory limitation to which this notice refers, is more particularly described as follows: (Insert the legal description and the assessor’s parcel number of the real property to which this notice applies.)” (3) The Notice of Statutory Limitation on Transfer shall remain in effect until notice of release is given by the department. The department shall execute and record a release of the notice upon proof of complete performance of all obligations to residents. (4) Unless a Notice of Statutory Limitation on Transfer has been recorded with respect to the land on which the applicant or provider is operating, or intends to operate a continuing care retirement community, prior to the date of execution of any trust deed, mortgage, or any other lien or encumbrance securing or evidencing the payment of money and affecting land on which the applicant or provider intends to operate a continuing care retirement community, the applicant or provider shall give the department advance written notice of the proposed encumbrance. Upon the giving of notice to the department, the applicant or provider shall execute and record the Notice of Statutory Limitation on Transfer in the office of the county recorder in each county in which any portion of the continuing care retirement community is located prior to encumbering the continuing care retirement community property with the proposed encumbrance. (5) In the event that the applicant or provider and the owner of record are not the same entity on the date on which execution and recordation of the notice is required, the leasehold or other interest in the continuing care retirement community property held by the applicant or provider shall survive in its entirety and without change, any transfer of the continuing care retirement community property by the owner. In addition, the applicant or provider shall record a memorandum of leasehold or other interest in the continuing care retirement community property that includes a provision stating that its interest in the property survives any transfer of the property by the owner. The applicant or provider shall provide a copy of the notice and the memorandum of interest to the owner of record by certified mail and to the department. (6) The notice shall, and, if applicable, the memorandum of interest shall be indexed by the recorder in the grantor-grantee index to the name of the owner of record and the name of the applicant or provider. (ab) A statement that the applicant will keep the department informed of any material changes to the proposed continuing care retirement community or its application. (ac) Any other information that may be required by the department for the proper administration and enforcement of this chapter. (Amended by Stats. 2000, Ch. 820, Sec. 27. Effective January 1, 2001.)
  168. 1779.6.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 2. Application [1779 - 1779.10] ( Article 2 added by Stats. 1990, Ch. 875, Sec. 2. )

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    The department must promptly process permit applications: acknowledge receipt, check completeness, review adequacy, respond in writing, and issue the permit if the application is adequate.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 2. Application [1779 - 1779.10] ( Article 2 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1779.6. (a) Within seven calendar days of receipt of an initial application for a permit to accept deposits and a certificate of authority, the department shall acknowledge receipt of the application in writing. (b) Within 30 calendar days following its receipt of an application, the department shall determine if the application is complete and inform the applicant of its determination. If the department determines that the application is incomplete, its notice to the applicant shall identify the additional forms, documents, information, and other materials required to complete the application. The department shall allow the applicant adequate time to submit the requested information and materials. This review may not determine the adequacy of the materials included in the application. (c) Within 120 calendar days after the department determines that an application is complete, the department shall review the application for adequacy. An application shall be adequate if it complies with all the requirements imposed by this chapter, and both the financial study and marketing study reasonably project the feasibility of the proposed continuing care retirement community, as well as demonstrate the financial soundness of the applicant. The department shall either approve the application as adequate under this chapter or notify the applicant that its application is inadequate. If the application is inadequate, the department shall identify the deficiencies in the application, provide the appropriate code references, and give the applicant an opportunity to respond. (d) Within 60 calendar days after receiving any additional information or clarification required from the applicant, the department shall respond to the applicant’s submission in writing and state whether each specific deficiency has been addressed sufficiently to make the application adequate. If the department determines that the application is adequate and in compliance with this chapter, the department shall issue the permit to accept deposits. If the department determines that the response is inadequate, it may request additional information or clarification from the applicant pursuant to subdivision (c) or deny the application pursuant to Section 1779.10. (e) If the applicant does not provide the department with the additional information within 90 days after the department’s notice described in subdivision (c), the application may be denied for being inadequate. Any new application shall require an application fee. (Amended by Stats. 2000, Ch. 820, Sec. 28. Effective January 1, 2001.)
  169. 1779.7.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 2. Application [1779 - 1779.10] ( Article 2 added by Stats. 1990, Ch. 875, Sec. 2. )

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    A third-party transferor gets the same cancellation and refund rights as the resident or depositor when the transferred consideration is used as a deposit or as payment for a continuing care contract.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 2. Application [1779 - 1779.10] ( Article 2 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1779.7. (a) Where any portion of the consideration transferred to an applicant as a deposit or to a provider as consideration for a continuing care contract is transferred by a person other than the prospective resident or a resident, that third-party transferor shall have the same cancellation or refund rights as the prospective resident or resident for whose benefit this consideration was transferred. (b) A transferor shall have the same rights to cancel and obtain a refund as the depositor under the deposit agreement or the resident under a continuing care contract. (Added by Stats. 2000, Ch. 820, Sec. 28.5. Effective January 1, 2001.)
  170. 1779.8.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 2. Application [1779 - 1779.10] ( Article 2 added by Stats. 1990, Ch. 875, Sec. 2. )

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    An applicant must tell the department about material changes, give 60 days’ written notice before proposed changes, and the department must respond within 30 days; if required notice is not given, the department must suspend the application and, if applicable, the deposit permit until it finishes its review and protection steps.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 2. Application [1779 - 1779.10] ( Article 2 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1779.8. (a) The applicant shall notify the department of material changes in the application information submitted to the department, including the applicant’s financial and marketing projections. (b) An applicant shall provide to the department at least 60 days’ advance written notice of any proposal to make any changes in the applicant’s corporate name, structure, organization, operation, or financing. (c) Within 30 calendar days after receiving notice of a change affecting the applicant or the application, the department shall advise the applicant: (1) Whether additional information is required to process the pending application. (2) Whether an additional application fee is required. (3) Whether a new application and application fee must be submitted. The new application fee shall be twice the actual cost of additional review time caused by the change. This additional fee is payable to the department on demand. (d) The department shall suspend the applicant’s application and, if applicable, its permit to accept deposits if the applicant fails to give written notice of changes required by this section. The suspension shall remain in effect until the department has both assessed the potential impact of the changes on the interests of depositors and taken such action as necessary under this chapter to protect these interests. (Amended by Stats. 2000, Ch. 820, Sec. 29. Effective January 1, 2001.)
  171. 1780.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. )

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    The department must issue a permit to accept deposits once it has made the required findings and approvals.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1780. The department shall issue a permit to accept deposits when it has done all of the following: (a) Determined that the application is adequate. (b) Determined that the proposed continuing care retirement community financial and marketing studies are acceptable. (c) Reviewed and approved the deposit agreements. (d) Reviewed and approved the deposit escrow account agreement. (Amended by Stats. 2000, Ch. 820, Sec. 31. Effective January 1, 2001.)
  172. 1780.2.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. )

    Verify source ↗

    This section sets rules for taking deposits, adding processing fees, handling payment for upgrades or modifications, refunding those payments if authority is not received, and allowing the department to record a lien.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1780.2. (a) A deposit may be paid in one or several payments, at or after the time the parties enter into the deposit agreement. A deposit shall be paid by cash or cash equivalent, jointly payable to the applicant and the escrow agent or depository. Possession and control of any deposit agreement shall be transferred to the escrow agent at the time the deposit is paid. (b) A processing fee may be added to the deposit. (1) The processing fee shall not exceed 1 percent of the amount of the average entrance fee or five hundred dollars ($500), whichever is greater. (2) A nonrefundable processing fee may be paid directly to the applicant without being placed in the deposit escrow account. (c) Payments made by a depositor for upgrades or modifications to the living unit shall not be placed in escrow with deposits. The applicant shall provide written refund policies to the depositor before accepting any payments for modifications or upgrades. (d) The applicant shall furnish to the department within the first 10 days of each calendar month a list of all residents who have made payments for modifications or upgrades, the amounts each resident has paid, the date of each payment, and the unit to be modified or upgraded for each resident. (e) All payments for modifications or upgrades shall be refunded to the depositor with interest if the applicant does not receive a certificate of authority for the proposed continuing care retirement community or expansion. (f) The department may record a lien against the continuing care retirement community property, or any portion of the continuing care retirement community property, to secure the applicant’s obligations to refund the depositor’s payments made for modifications or upgrades. Any lien created under this section shall be to protect depositors and shall be governed by Section 1793.15. (Amended by Stats. 2000, Ch. 820, Sec. 32. Effective January 1, 2001.)
  173. 1780.4.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. )

    Verify source ↗

    Deposit agreements must be written, approved by the department before use, and include specified refund, escrow, fee, and disclosure terms.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1780.4. (a) All deposit agreements between the applicant and the depositor shall be in writing and shall contain all information required by this section. (b) All deposit agreement forms shall be approved by the department prior to their use. (c) The requirements of this chapter and Chapter 3.2 (commencing with Section 1569) shall be the bases for approval of the forms by the department. (d) All text in deposit agreement forms shall be printed in at least 10-point typeface. (e) The deposit agreement form shall provide all of the following: (1) An estimated date for commencement of construction of the proposed continuing care retirement community or, if applicable, each phase not to exceed 36 months from the date the permit to accept deposits is issued. (2) A statement to the effect that the applicant will notify depositors of any material change in the application. (3) The identity of the specific unit reserved and the total deposit for that unit. (4) Processing fee terms and conditions, including: (A) The amount. (B) A statement explaining the applicant’s policy regarding refund or retention of the processing fee in the event of death of the depositor or voluntary cancellation by the depositor. (C) Notice that the processing fee shall be refunded within 30 days if the applicant does not accept the depositor for residency, or the applicant fails to construct the continuing care retirement community before the estimated date of completion and the department determines that there is no satisfactory cause for the delay. (5) Requirements for payment of the deposit by the depositor. (6) A statement informing the depositor that their deposit payments will be converted to an entrance fee payment at the time the continuing care contract is executed. (7) A statement informing the depositor that deposits shall be refunded within 30 calendar days of the depositor’s nonacceptance for residency or notice to the applicant of the death of the depositor. (8) A statement informing the depositor that all deposits shall be refunded to the depositors if the continuing care retirement community is not constructed by the estimated date of completion and the department determines that there is no satisfactory cause for the delay. (9) A statement informing the depositor that a refund of the deposit within 10 calendar days of notice of cancellation by the depositor. The deposit agreement shall state that depositors who have deposited more than one thousand dollars ($1,000) or 5 percent of the entrance fee, whichever is greater, and who have been notified that construction of the proposed continuing care retirement community has commenced, will not be entitled to a refund of their deposit until the provisional certificate of authority is issued or after one of the following occurs: (A) Another depositor has reserved the canceling depositor’s specific residential unit and paid the necessary deposit. (B) The depositor no longer meets financial or health requirements for admission. (C) The applicant fails to meet the requirements of Section 1786 or 1786.2. (10) A statement to depositors that specifies when funds may be released from escrow to the applicant and explains that thereafter the depositor’s funds will not have escrow protection. (11) A statement advising the depositor whether interest will be paid to the depositor on deposits placed in the deposit escrow account. (f) If cash equivalents are to be accepted in lieu of cash, all of the following shall also be included in the deposit agreement: (1) A statement that cash equivalents that may be accepted as deposits shall be either certificates of deposit or United States securities with maturities of five years or less. (2) A statement that the instruments will be held by the escrow agent in the form in which they were delivered and assigned by the depositor until they are replaced by cash or converted to cash. (3) A statement that the depositor will be required to assign the instruments to a neutral third-party escrow agent. If the bank or entity that issued the instruments refuses to allow this assignment, the escrow agent shall not accept the instruments. These instruments shall be reassigned to the depositor if the depositor terminates the deposit agreement before the instruments mature. If the depositor terminates the deposit agreement after the instruments mature, the depositor shall receive a cash refund of the portion of the deposit represented by the matured instruments. (4) A statement that any amount by which the face value of the deposited instruments exceeds the required deposit shall be deemed part of the deposit and shall be applied against the depositor’s obligations under the deposit agreement. (5) A statement that the instruments shall be converted to, or replaced with, cash prior to the department’s authorization for the release of deposits to the applicant. The depositor shall be advised that if the depositor does not substitute cash in the amount equal to the deposit, the applicant may do either of the following: (A) Direct the escrow agent to sell, redeem, or otherwise convert the instruments to cash and to treat the proceeds in the same manner as it treats cash deposits under the deposit agreement. The costs of any such sale, redemption, or conversion, including, without limitation, transaction fees and any early withdrawal penalties, may be charged to the depositor and paid out of the cash or other instruments received from the depositor in escrow. If there is a shortfall, the depositor may be immediately obligated to pay the shortfall by check jointly payable to the applicant and the escrow agent. (B) Terminate the deposit agreement. In this event, the escrow agent shall reassign the property to the depositor and refund all cash in escrow within the time periods specified in the deposit agreement. (g) A statement that deposits will be invested in instruments guaranteed by the federal government or an agency of the federal government, or in investment funds secured by federally guaranteed instruments. (h) A statement that no funds deposited in a deposit escrow account shall be subject to any liens, judgments, garnishments, or creditor’s claims against the applicant, the proposed continuing care retirement community property, or the continuing care retirement community. The deposit agreement shall also provide that deposits may not be subject to any liens or charges by the escrow agent, except that cash equivalent deposits may be subject to transactions fees, commissions, prepayment penalties, and other fees incurred in connection with these deposits. (i) A schedule of projected monthly care fees estimated to be charged to residents for each of the first five years of the continuing care retirement community’s existence shall be attached to each deposit agreement. This schedule shall contain a conspicuous statement in at least 10-point boldface type that the projected fees are an estimate only and may be changed without notice. (Amended by Stats. 2000, Ch. 820, Sec. 33. Effective January 1, 2001.)
  174. 1781.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. )

    Verify source ↗

    Deposits for the escrow account must be held, invested, and released only under the department’s approval rules.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1781. (a) All deposits, excluding processing fees, shall be placed in an escrow account. All terms governing the deposit escrow account shall be approved in advance by the department. (b) The deposit escrow account shall be established by an escrow agent and all deposits shall be deposited in a depository located in California and approved by the department. The department’s approval of the depository shall be based, in part, upon its ability to ensure the safety of funds and properties entrusted to it and its qualifications to perform the obligations of the depository pursuant to the deposit escrow account agreement and this chapter. The depository may be the same entity as the escrow agent. All deposits shall be kept and maintained in a segregated account without any commingling with other funds, including any funds or accounts owned by the applicant. (c) If the escrow agent is a title company, it shall meet the following requirements: (1) A Standard and Poors rating of “A” or better or a comparable rating from a comparable rating service. (2) Licensure in good standing with the Department of Insurance. (3) Tangible net equity as required by the Department of Insurance. (4) Reserves as required by the Department of Insurance. (d) All deposits shall remain in escrow until the department has authorized release of the deposits, as provided in Section 1783.3. (e) Deposits shall be invested in instruments guaranteed by the federal government or an agency of the federal government, or in investment funds secured by federally guaranteed instruments. (f) No funds deposited in a deposit escrow account shall be subject to any liens, judgments, garnishments, or creditor’s claims against the applicant or the continuing care retirement community. The deposit agreement shall also provide that deposits may not be subject to any liens or charges by the escrow agent except that cash equivalent deposits may be subject to transaction fees, commissions, prepayment penalties, and other fees incurred in connection with those deposits. (Amended by Stats. 2000, Ch. 820, Sec. 34. Effective January 1, 2001.)
  175. 1781.10.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. )

    Verify source ↗

    Deposit escrow assets may not be encumbered or used as collateral unless the applicant first gets the department’s written approval.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1781.10. No deposit or any other asset held in a deposit escrow account, shall be encumbered or used as collateral for any obligation of the applicant or any other person, unless the applicant obtains prior written approval from the department for the encumbrance or use as collateral. The department shall not approve any encumbrance or use as collateral under this section unless the encumbrance or use as collateral is expressly subordinated to the rights of depositors under this chapter to refunds of their deposits. (Amended by Stats. 2000, Ch. 820, Sec. 39. Effective January 1, 2001.)
  176. 1781.2.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. )

    Verify source ↗

    The applicant must give the escrow holder specified deposit documents when delivering deposits, and deposits must be delivered to the escrow agent within five business days after the applicant receives them.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1781.2. (a) All deposits shall be delivered to the escrow agent and deposited into the deposit escrow account within five business days after receipt by the applicant. The deposit escrow account shall be accounted for in a separate escrow account. (b) The applicant shall provide, with all deposits delivered to the escrow holder, a copy of the executed deposit agreement, a copy of the receipt given to the depositor, a summary of all deposits made on that date, and any other materials required by the escrow holder. (Amended by Stats. 2000, Ch. 820, Sec. 35. Effective January 1, 2001.)
  177. 1781.4.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. )

    Verify source ↗

    The escrow agreement must include specified terms, and the escrow agent must send monthly reports to the department and follow strict rules for handling deposits, funds, and records.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1781.4. The deposit escrow account agreement between the applicant and the escrow agent shall include all of the following: (a) The amount of the processing fee. (b) A provision requiring that all deposits shall be placed into the deposit escrow account upon delivery. (c) A provision requiring that monthly progress reports be sent by the escrow agent directly to the department, beginning the month after the deposit escrow account is opened and continuing through the month funds are released from escrow. These reports shall be prepared every month that there are any funds in the account and shall show each of the following in separate columns: (1) The name and address of each depositor or resident. (2) The designation of the living unit being provided. (3) Any processing fee which is deposited into escrow. (4) The total deposit required for the unit. (5) The total entrance fee for the unit. (6) Twenty percent of the total entrance fee. (7) Each deposit payment made by or on behalf of the depositor and any refunds paid to the depositor. (8) The unpaid balance for each depositor’s deposit. (9) The unpaid balance for each depositor’s entrance fee. (10) The current balance in the deposit escrow account for each depositor and the collective balance. (11) The dollar amount, type, and maturity date of any cash equivalent paid by each depositor. (d) A provision for investment of escrow account funds in a manner consistent with Section 1781. (e) A provision for refunds to depositors in the manner specified by Section 1783.2. (f) A provision regarding the payment of interest earned on the funds held in escrow in the manner specified in the applicant’s deposit agreement. (g) Release of deposit escrow account funds in the manner specified in Section 1783.3, including to whom payment of interest earned on the funds will be made. (h) Representations by the escrow agent that it is not, and shall not be during the term of the deposit escrow account, a lender to the applicant or for the proposed continuing care retirement community, or a fiduciary for any lender or bondholder for that continuing care retirement community, unless approved by the department. (i) If cash equivalents may be accepted as a deposit in lieu of cash, the deposit escrow account agreement shall also include all of the following: (1) Authorization for the escrow agent to convert instruments to cash when they mature. The escrow agent may notify all financial institutions whose securities are held by the escrow agent that all interest and other payments due upon these instruments shall be paid to the escrow agent. The escrow agent shall collect, hold, invest, and disburse these funds as provided under the escrow agreement. (2) Authorization for the escrow agent to deliver the instruments in its possession and release funds from escrow according to written directions from the applicant, consistent with the terms provided in the applicant’s deposit escrow account agreement. The escrow agent shall distribute cash and other property to an individual depositor only upon either of the following occurrences: (A) The depositor’s written request to receive monthly payments of interest accrued on his or her deposits. (B) Receipt of notice from the applicant to pay a refund to the depositor. (3) A provision that the escrow agent shall maintain, at all times, adequate records showing the beneficial ownership of the instruments. (4) A provision that the escrow agent shall have no responsibility or authority to initiate any transfer of the instruments or conduct any other transaction without specific written instructions from the applicant. (5) A provision authorizing, instructing, and directing the escrow agent to do all of the following: (A) Redeem and roll over matured investments into money market accounts or other department approved instruments with the escrow agent or an outside financial institution. (B) Collect and receive interest, principal, and other things of value in connection with the instruments. (C) Sign for the depositors any declarations, affidavits, certificates, and other documents that may be required to collect or receive payments or distributions with respect to the instruments. (Amended by Stats. 2000, Ch. 820, Sec. 36. Effective January 1, 2001.)
  178. 1781.6.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. )

    Verify source ↗

    The applicant must submit all changes to a deposit agreement or deposit escrow account agreement form to the department and get them approved before using the form.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1781.6. All changes to a deposit agreement or deposit escrow account agreement form shall be submitted to, and approved by, the department before use by the applicant. (Amended by Stats. 2000, Ch. 820, Sec. 37. Effective January 1, 2001.)
  179. 1781.8.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. )

    Verify source ↗

    Escrow deposits must be placed in an interest-bearing account or invested as allowed, and related earnings generally cannot be released or distributed without written department approval.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1781.8. (a) Deposits held in escrow shall be placed in an interest bearing account or invested as provided under subdivision (e) of Section 1781. (b) Interest, income, and other gains derived from deposits held in a deposit escrow account may not be released or distributed from the deposit escrow account except upon written approval of the department. (c) Approval by the department for the release of earnings generated from funds held in escrow shall be based upon an assessment that funds remaining in the deposit escrow account will be sufficient to pay refunds and any interest promised to all depositors, as well as administrative costs owed to the escrow agent. (d) When released by the department, interest earned by the funds in the deposit escrow account shall be distributed in accordance with the terms of the deposit agreement. (Amended by Stats. 2000, Ch. 820, Sec. 38. Effective January 1, 2001.)
  180. 1782.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. )

    Verify source ↗

    An applicant may not start construction on a phase of a continuing care retirement community until the department gives a written acknowledgment that the listed prerequisites have been met.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1782. (a) An applicant shall not begin construction on any phase of a continuing care retirement community without first obtaining a written acknowledgment from the department that all of the following prerequisites have been met: (1) A completed application has been submitted to the department. (2) A permit to accept deposits has been issued to the applicant or, in the case of continuing care retirement community renovation projects, the department has issued a written approval of the applicant’s application. (3) For new continuing care retirement communities, or construction projects adding new units to an existing continuing care retirement community, deposits equal to at least 10 percent of each depositor’s applicable entrance fee have been placed into escrow for each phase for at least 50 percent of the number of residential living units to be constructed. (b) Applicants shall notify depositors in writing when construction is commenced. (c) For purposes of this chapter only, construction shall not include site preparation, demolition, or the construction of model units. (Amended by Stats. 2006, Ch. 529, Sec. 2. Effective January 1, 2007.)
  181. 1783.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. )

    Verify source ↗

    Applicants converting an existing building to continuing care use must follow specified application requirements and state what portion of the facility will be used for continuing care services.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1783. (a) (1) An applicant proposing to convert an existing building to continuing care use shall comply with all the application requirements in Section 1779.4 identified by the department as necessary for the department to assess the feasibility of the proposed continuing care retirement community or conversion. (2) If the proposed continuing care retirement community is already occupied and only a portion of the existing residential units will be converted into continuing care units, the department may modify the presale requirements of paragraph (3) of subdivision (a) of Section 1782 and paragraph (2) of subdivision (a) of Section 1783.3. (b) Any applicant proposing to convert an existing building into continuing care units shall indicate the portion of the facility to be used for continuing care contract services. The continuing care allocation specified by the applicant shall be reflected in all financial and marketing studies and shall be used to determine the applicant’s compliance with the percentage requirements stated in paragraph (3) of subdivision (a) of Section 1782 and paragraph (2) of subdivision (a) of Section 1783.3. (Amended by Stats. 2000, Ch. 820, Sec. 41. Effective January 1, 2001.)
  182. 1783.2.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. )

    Verify source ↗

    An escrow agent must refund cancellation amounts to the depositor after written notice, and the refund must be paid within 10 days. Some larger depositors do not get a refund until one of three later events happens.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1783.2. (a) An escrow agent shall refund to the depositor all amounts required by the depositor’s deposit agreement upon receiving written notice from the applicant that a depositor has canceled the deposit agreement. Refunds required by this subdivision shall be paid to the depositor within 10 days after the depositor gives notice of cancellation to the applicant. (b) Depositors who have deposited more than one thousand dollars ($1,000) or 5 percent of the entrance fee, whichever is greater, and who have been notified that construction of the proposed continuing care retirement community has commenced, shall not be entitled to a refund of their deposit until any of the following occurs: (1) The continuing care retirement community is opened for operation. (2) Another depositor has reserved the canceling depositor’s specific residential unit and paid the necessary deposit. (3) The depositor no longer meets financial or health requirements for admission. (Amended by Stats. 2000, Ch. 820, Sec. 42. Effective January 1, 2001.)
  183. 1783.3.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. )

    Verify source ↗

    An applicant must ask in writing for release of escrowed funds and meet specific construction, escrow, financing, and compliance conditions before the department will direct release.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1783.3. (a) In order to seek a release of escrowed funds, the applicant shall petition in writing to the department and certify to each of the following: (1) The construction of the proposed continuing care retirement community or phase is at least 50 percent completed. (2) At least 10 percent of the total of each applicable entrance fee has been received and placed in escrow for at least 60 percent of the total number of residential living units. Any unit for which a refund is pending may not be counted toward that 60-percent requirement. (3) Deposits made with cash equivalents have been either converted into, or substituted with, cash or held for transfer to the provider. A cash equivalent deposit may be held for transfer to the provider, if all of the following conditions exist: (A) Conversion of the cash equivalent instrument would result in a penalty or other substantial detriment to the depositor. (B) The provider and the depositor have a written agreement stating that the cash equivalent will be transferred to the provider, without conversion into cash, when the deposit escrow is released to the provider under this section. (C) The depositor is credited the amount equal to the value of the cash equivalent. (4) The applicant’s average performance over any six-month period substantially equals or exceeds its financial and marketing projections approved by the department, for that period. (5) The applicant has received a commitment for any permanent mortgage loan or other long-term financing. (b) The department shall instruct the escrow agent to release to the applicant all deposits in the deposit escrow account when all of the following requirements have been met: (1) The department has confirmed the information provided by the applicant pursuant to subdivision (a). (2) The department has determined that there has been substantial compliance with projected annual financial statements that served as a basis for issuance of the permit to accept deposits. (3) The applicant has complied with all applicable licensing requirements in a timely manner. (4) The applicant has obtained a commitment for any permanent mortgage loan or other long-term financing that is satisfactory to the department. (5) The applicant has complied with any additional reasonable requirements for release of funds placed in the deposit escrow accounts, established by the department under Section 1785. (c) The escrow agent shall release the funds held in escrow to the applicant only when the department has instructed it to do so in writing. (d) When an application describes different phases of construction that will be completed and commence operating at different times, the department may apply the 50-percent construction completion requirement to any one or group of phases requested by the applicant, provided the phase or group of phases is shown in the applicant’s projections to be economically viable. (Amended by Stats. 2011, Ch. 32, Sec. 11. (AB 106) Effective June 29, 2011. Operative January 1, 2012, by Sec. 73 of Stats. 2011, Ch. 32.)
  184. 1784.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. )

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    If construction of a continuing care retirement community has not started within 36 months after the permit to accept deposits is issued, the applicant may ask for an extension.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1784. (a) If construction of the proposed continuing care retirement community, or applicable phase, has not commenced within 36 months from the date the permit to accept deposits is issued, an applicant may request an extension of the permit to accept deposits. The request for extension shall be made to the department in writing and shall include the reasons why construction of the proposed continuing care retirement community was not commenced within the required 36-month period. The request for extension shall also state the new estimated date for commencement of construction. (b) In response to a request for an extension, the department may do one of the following: (1) If the department determines there is satisfactory cause for the delay in commencement of construction of the proposed continuing care retirement community or applicable phase, the department may extend the permit to accept deposits for up to one year. (2) If the department determines that there is no satisfactory cause for the delay, the department may instruct the escrow agent to refund to depositors all deposits held in escrow, plus any interest due under the terms of the deposit subscription agreements, and require the applicant to file a new application and application fee. The applicant shall also refund all processing fees paid by the depositors. (c) Within 10 calendar days the applicant shall notify each depositor of the department’s approval or denial of the extension, of any expiration of the permit to accept deposits and of any right to a refund of their deposits. (Amended by Stats. 2000, Ch. 820, Sec. 44. Effective January 1, 2001.)
  185. 1785.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. )

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    If the applicant’s six-month performance falls short before a certificate of authority is issued, the department may impose deposit and reserve-related requirements and can require notice to depositors and residents.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 3. Deposit Subscription Period [1780 - 1785] ( Article 3 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1785. (a) If, at any time prior to issuance of a certificate of authority, the applicant’s average performance over any six-month period does not substantially equal or exceed the applicant’s projections for that period, the department may take any of the following actions: (1) Cancel the permit to accept deposits and require that all funds in escrow be returned to depositors immediately. (2) Increase the required percentages of construction completed, units reserved, or entrance fees to be deposited as required under Sections 1782, 1783.3, 1786, and 1786.2. (3) Increase the reserve requirements under this chapter. (b) Prior to taking any actions specified in subdivision (a), the department shall give the applicant an opportunity to submit a feasibility study from a consultant in the area of continuing care, approved by the department, to determine whether in his or her opinion the proposed continuing care retirement community is still viable, and if so, to submit a plan of correction. The department shall determine if the plan is acceptable. (c) In making its determination, the department shall take into consideration the overall performance of the proposed continuing care retirement community to date. (d) If deposits have been released from escrow, the department may further require the applicant to reopen the escrow as a condition of receiving any further entrance fee payments from depositors or residents. (e) The department may require the applicant to notify all depositors and, if applicable, all residents, of any actions required by the department under this section. (Amended by Stats. 2011, Ch. 32, Sec. 12. (AB 106) Effective June 29, 2011. Operative January 1, 2012, by Sec. 73 of Stats. 2011, Ch. 32.)
  186. 1786.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 4. Certificate of Authority [1786 - 1786.2] ( Article 4 added by Stats. 1990, Ch. 875, Sec. 2. )

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    The department must issue a provisional certificate of authority once the applicant meets listed requirements. The certificate expires after 12 months unless an extension is requested on time and approved, and certain waiting-list fees are capped at $500.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 4. Certificate of Authority [1786 - 1786.2] ( Article 4 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1786. (a) The department shall issue a provisional certificate of authority when an applicant has done all of the following: (1) Complied with the approved marketing plans. (2) Met and continues to meet the requirements imposed under subdivision (a) of Section 1783.3. The issuance of the provisional certificate of authority shall not require, and shall not be dependent upon the release of escrowed funds. Release of escrowed funds shall be governed by Section 1783.3. (3) Completed construction of the continuing care retirement community or applicable phase. (4) Obtained the required licenses. (5) Paid the remainder of the application fee. (6) Executed a permanent mortgage loan or other long-term financing. (7) Provided the department with a recorded copy of the Notice of Statutory Limitation on Transfer required by subdivision (aa) of Section 1779.4. (8) Met all applicable provisions of this chapter. (b) The provisional certificate of authority shall expire 12 months after issuance unless both of the following occur: (1) No later than 60 days prior to the expiration of the provisional certificate of authority, the provider petitions the department and demonstrates good cause in writing for an extension of the provisional certificate of authority. (2) The department determines that the provider is capable of meeting the requirements of Section 1786.2 during the extension period. (c) The department shall exercise its discretion to determine the length of the extension period. (d) After the provisional certificate of authority is issued providers may continue to take deposits by modifying the deposit agreement as appropriate. The new deposit agreement shall clearly state the rights of the depositor and the provider. The applicant shall submit the agreements to the department for review and approval prior to use. A provider that holds a provisional certificate of authority or certificate of authority may accept fees paid by potential residents to be placed on a waiting list without using a deposit agreement. These waiting list fees may not exceed five hundred dollars ($500), and shall be refunded to the potential resident upon written request. (e) All holders of a provisional certificate of authority shall request in writing a certificate of authority when the requirements of Section 1786.2 have been met. (Amended by Stats. 2000, Ch. 820, Sec. 46. Effective January 1, 2001.)
  187. 1786.2.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 4. Certificate of Authority [1786 - 1786.2] ( Article 4 added by Stats. 1990, Ch. 875, Sec. 2. )

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    The department may not issue a certificate of authority until specified conditions are met, and providers must display the certificate prominently once issued.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 4. Certificate of Authority [1786 - 1786.2] ( Article 4 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1786.2. (a) The department shall not issue a certificate of authority to an applicant or a provider, until the department determines that each of the following has occurred: (1) A provisional certificate of authority has been issued or all of the requirements for a provisional certificate of authority have been satisfied. In the case of an application for a new certificate of authority due to an organizational change, if the continuing care retirement community is financially sound and operating in compliance with this chapter, it shall be sufficient for the purposes of this paragraph that the department has approved the application in writing. (2) One of the following requirements has been met: (A) At a minimum, continuing care contracts have been executed for 80 percent of the total residential living units in the continuing care retirement community, with payment in full of the entrance fee. (B) At a minimum, continuing care contracts have been executed for 70 percent of the total residential living units in the continuing care retirement community, with payment in full of the entrance fee, and the provider has submitted an updated financial and marketing plan, satisfactory to the department, demonstrating that the proposed continuing care retirement community will be financially viable. (C) At a minimum, continuing care contracts have been executed for 50 percent of the total residential living units in the continuing care retirement community, with payment in full of the entrance fee, and the provider furnishes and maintains a letter of credit or other security, satisfactory to the department, sufficient to bring the total amount of payments to a level equivalent to 80 percent of the total entrance fees for the entire continuing care retirement community. (3) A minimum five-year financial plan of operation remains satisfactory to the department. (4) Adequate reserves exist as required by Sections 1792 and 1792.6. For a new continuing care retirement community without an operating history, the department may approve calculation of required reserves on a pro forma basis in conjunction with compliance with approved marketing plans. (5) All applicable provisions of this chapter have been met. (b) When issued, the certificate of authority, whether full or conditioned, shall remain in full force unless forfeited by operation of law under Section 1793.7, inactivated under Section 1793.8, or suspended or revoked by the department pursuant to Section 1793.21. (c) The provider shall display the certificate of authority in a prominent place within the continuing care retirement community. (Amended by Stats. 2000, Ch. 820, Sec. 47. Effective January 1, 2001.)
  188. 1787.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 5. Contract [1787 - 1788.4] ( Article 5 added by Stats. 1990, Ch. 875, Sec. 2. )

    Verify source ↗

    Continuing care contracts must be in writing, approved by the department before use, and given to the resident with required attachments and acknowledgments.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 5. Contract [1787 - 1788.4] ( Article 5 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1787. (a) All continuing care contracts shall be in writing and shall contain all the information required by Section 1788. (b) All continuing care contract forms, including all addenda, exhibits, and any other related documents, incorporated therein, as well as any modification to these items, shall be approved by the department prior to their use. (c) The department shall approve continuing care contract forms that comply with this chapter. The requirements of this chapter and Chapter 3.2 (commencing with Section 1569) shall be the bases for approval by the department. To the extent that this chapter conflicts with Chapter 3.2 (commencing with Section 1569), this chapter shall prevail. (d) A continuing care contract approved by the department shall constitute the full and complete agreement between the parties. (e) More than one continuing care contract form may be used by a provider if multiple program options are available. (f) All text in continuing care contract forms shall be printed in at least 10-point typeface. (g) A clearly legible copy of the continuing care contract, executed by each provider named on the provisional certificate of authority or the certificate of authority, the resident, and any transferor, shall be furnished with all required or included attachments to the resident at the time the continuing care contract is executed. A copy shall also be furnished within 10 calendar days to any transferor who is not a resident. (h) The provider shall require a written acknowledgment from the resident (and any transferor who is not a resident) that the executed copy of the continuing care contract and attachments have been received. (i) The continuing care contract shall be an admissions agreement for purposes of the residential care facility for the elderly and long-term health care facility requirements and shall state the resident’s entitlement to receive these levels of care. The continuing care contract may state the entitlement for skilled nursing care in accordance with the provisions of law governing admissions to long-term health care facilities in effect at the time of admission to the skilled nursing facility. The parties may agree to the terms of nursing facility admission at the time the continuing care contract is executed, or the provider may present an exemplar of the then-current nursing facility admission agreement and require the resident to execute the form of agreement in effect at the time of admission to the nursing facility. The terms shall include the nursing fee, or the method of determining the fee, at the time of the execution of the continuing care contract, the services included in and excluded from the fee, the grounds for transfers and discharges, and any other terms required to be included under applicable law. (j) Only the skilled nursing admission agreement sections of continuing care contracts which cover long-term health care facility services are subject to Chapter 3.95 (commencing with Section 1599.60). The provider shall use a skilled nursing admission nursing agreement that complies with the requirements of Chapter 3.95 (commencing with Section 1599.85). (Amended by Stats. 2000, Ch. 820, Sec. 48. Effective January 1, 2001.)
  189. 1788.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 5. Contract [1787 - 1788.4] ( Article 5 added by Stats. 1990, Ch. 875, Sec. 2. )

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    Continuing care contracts must include specified disclosures and terms, and providers are restricted from charging post-vacation monthly fees except in an equity interest contract.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 5. Contract [1787 - 1788.4] ( Article 5 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1788. (a) A continuing care contract shall contain all of the following: (1) The legal name and address of each provider. (2) The name and address of the continuing care retirement community. (3) The resident’s name and the identity of the unit the resident will occupy. (4) If there is a transferor other than the resident, the transferor shall be a party to the contract and the transferor’s name and address shall be specified. (5) If the provider has used the name of any charitable or religious or nonprofit organization in its title before January 1, 1979, and continues to use that name, and that organization is not responsible for the financial and contractual obligations of the provider or the obligations specified in the continuing care contract, the provider shall include in every continuing care contract a conspicuous statement that clearly informs the resident that the organization is not financially responsible. (6) The date the continuing care contract is signed by the resident and, where applicable, any other transferor. (7) The duration of the continuing care contract. (8) A list of the services that will be made available to the resident as required to provide the appropriate level of care. The list of services shall include the services required as a condition for licensure as a residential care facility for the elderly, including all of the following: (A) Regular observation of the resident’s health status to ensure that his or her dietary needs, social needs, and needs for special services are satisfied. (B) Safe and healthful living accommodations, including housekeeping services and utilities. (C) Maintenance of house rules for the protection of residents. (D) A planned activities program, which includes social and recreational activities appropriate to the interests and capabilities of the resident. (E) Three balanced, nutritious meals and snacks made available daily, including special diets prescribed by a physician as a medical necessity. (F) Assisted living services. (G) Assistance with taking medications. (H) Central storing and distribution of medications. (I) Arrangements to meet health needs, including arranging transportation. (9) An itemization of the services that are included in the monthly fee and the services that are available at an extra charge. The provider shall attach a current fee schedule to the continuing care contract. The schedule shall state that a provider is prohibited from charging the resident or his or her estate a monthly fee once a unit has been permanently vacated by the resident, unless the fee is part of an equity interest contract. (10) The procedures and conditions under which a resident may be voluntarily and involuntarily transferred from a designated living unit. The transfer procedures, at a minimum, shall include provisions addressing all of the following circumstances under which a transfer may be authorized: (A) A continuing care retirement community may transfer a resident under the following conditions, taking into account the appropriateness and necessity of the transfer and the goal of promoting resident independence: (i) The resident is nonambulatory. The definition of “nonambulatory,” as provided in Section 13131, shall either be stated in full in the continuing care contract or be cited. If Section 13131 is cited, a copy of the statute shall be made available to the resident, either as an attachment to the continuing care contract or by specifying that it will be provided upon request. If a nonambulatory resident occupies a room that has a fire clearance for nonambulatory residents, transfer shall not be necessary. (ii) The resident develops a physical or mental condition that is detrimental to or endangers the health, safety, or well-being of the resident or another person. (iii) The resident’s condition or needs require the resident’s transfer to an assisted living care unit or skilled nursing facility, because the level of care required by the resident exceeds that which may be appropriately provided in the living unit. (iv) The resident’s condition or needs require the resident’s transfer to a nursing facility, hospital, or other facility, and the provider has no facilities available to provide that level of care. (B) Before the continuing care retirement community transfers a resident under any of the conditions set forth in subparagraph (A), the community shall satisfy all of the following requirements: (i) Involve the resident and the resident’s responsible person, as defined in paragraph (6) of subdivision (r) of Section 87101 of Title 22 of the California Code of Regulations, and upon the resident’s or responsible person’s request, family members, or the resident’s physician or other appropriate health professional, in the assessment process that forms the basis for the level of care transfer decision by the provider. The provider shall offer an explanation of the assessment process, which shall include, but not be limited to, an evaluation of the physical and cognitive capacities of the resident. An assessment tool or tools, including scoring and evaluating criteria, shall be used in the determination of the appropriateness of the transfer. The provider shall make copies of the completed assessment to share with the resident or the resident’s responsible person. (ii) Prior to sending a formal notification of transfer, the provider shall conduct a care conference with the resident and the resident’s responsible person, and, upon the resident’s or responsible person’s request, family members, and the resident’s health care professionals, to explain the reasons for transfer. (iii) Notify the resident and the resident’s responsible person of the reasons for the transfer in writing. (iv) Notwithstanding any other provision of this subparagraph, if the resident does not have impairment of cognitive abilities, the resident may request that his or her responsible person not be involved in the transfer process. (v) The notice of transfer shall be made at least 30 days before the transfer is expected to occur, except when the health or safety of the resident or other residents is in danger, or the transfer is required by the resident’s urgent medical needs. Under those circumstances, the written notice shall be made as soon as practicable before the transfer. (vi) The written notice shall contain the reasons for the transfer, the effective date, the designated level of care or location to which the resident will be transferred, a statement of the resident’s right to a review of the transfer decision at a care conference, as provided for in subparagraph (C), and for disputed transfer decisions, the right to review by the Continuing Care Contracts Branch of the State Department of Social Services, as provided for in subparagraph (D). The notice shall also contain the name, address, and telephone number of the department’s Continuing Care Contracts Branch. (vii) The continuing care retirement community shall provide sufficient preparation and orientation to the resident to ensure a safe and orderly transfer and to minimize trauma. (viii) For disputed transfer decisions, the provider shall provide documentation of the resident’s medical reports, other documents showing the resident’s current mental and physical function, the prognosis, and the expected duration of relevant conditions, if applicable. The documentation shall include an explanation of how the criteria set out in subparagraph (A) are met. The provider shall make copies of the completed report to share with the resident or the resident’s responsible person. (C) The resident has the right to review and dispute the transfer decision at a subsequent care conference that shall include the resident, the resident’s responsible person, and, upon the resident’s or responsible person’s request, family members, the resident’s physician or other appropriate health care professional, and members of the provider’s interdisciplinary team. The local ombudsperson may also be included in the care conference, upon the request of the resident, the resident’s responsible person, or the provider. (D) For disputed transfer decisions, the resident or the resident’s responsible person has the right to a prompt and timely review of the transfer process by the Continuing Care Contracts Branch of the State Department of Social Services. The branch of the department shall provide a description of the steps a provider took and the factors a provider considered in deciding to transfer a resident, including the assessment tool or tools and the scoring and evaluating criteria used by the provider to justify the transfer. (E) The decision of the department’s Continuing Care Contracts Branch shall be in writing and shall determine whether the provider failed to comply with the transfer process pursuant to subparagraphs (A) to (C), inclusive, and whether the transfer is appropriate and necessary. Pending the decision of the Continuing Care Contracts Branch, the provider shall specify any additional care the provider believes is necessary in order for the resident to remain in his or her unit. The resident may be required to pay for the extra care, as provided in the contract. (F) Transfer of a second resident when a shared accommodation arrangement is terminated. (11) Provisions describing any changes in the resident’s monthly fee and any changes in the entrance fee refund payable to the resident that will occur if the resident transfers from any unit, including, but not limited to, terminating his or her contract after 18 months of residential temporary relocation, as defined in paragraph (9) of subdivision (r) of Section 1771. Unless the fee is part of an equity interest contract, a provider is prohibited from charging the resident or his or her estate a monthly fee once a unit has been permanently vacated by the resident. (12) The provider’s continuing obligations, if any, in the event a resident is transferred from the continuing care retirement community to another facility. (13) The provider’s obligations, if any, to resume care upon the resident’s return after a transfer from the continuing care retirement community. (14) The provider’s obligations to provide services to the resident while the resident is absent from the continuing care retirement community. (15) The conditions under which the resident must permanently release his or her living unit. (16) If real or personal properties are transferred in lieu of cash, a statement specifying each item’s value at the time of transfer, and how the value was ascertained. (A) An itemized receipt that includes the information described above is acceptable if incorporated as a part of the continuing care contract. (B) When real property is or will be transferred, the continuing care contract shall include a statement that the deed or other instrument of conveyance shall specify that the real property is conveyed pursuant to a continuing care contract and may be subject to rescission by the transferor within 90 days from the date that the resident first occupies the residential unit. (C) The failure to comply with this paragraph shall not affect the validity of title to real property transferred pursuant to this chapter. (17) The amount of the entrance fee. (18) In the event two parties have jointly paid the entrance fee or other payment that allows them to occupy the unit, the continuing care contract shall describe how any refund of entrance fees is allocated. (19) The amount of any processing fee. (20) The amount of any monthly care fee. (21) For continuing care contracts that require a monthly care fee or other periodic payment, the continuing care contract shall include the following: (A) A statement that the occupancy and use of the accommodations by the resident is contingent upon the regular payment of the fee. (B) The regular rate of payment agreed upon (per day, week, or month). (C) A provision specifying whether payment will be made in advance or after services have been provided. (D) A provision specifying the provider will adjust monthly care fees for the resident’s support, maintenance, board, or lodging, when a resident requires medical attention while away from the continuing care retirement community. (E) A provision specifying whether a credit or allowance will be given to a resident who is absent from the continuing care retirement community or from meals. This provision shall also state, when applicable, that the credit may be permitted at the discretion or by special permission of the provider. (F) A statement of billing practices, procedures, and timelines. A provider shall allow a minimum of 14 days between the date a bill is sent and the date payment is due. A charge for a late payment may only be assessed if the amount and any condition for the penalty is stated on the bill. (G) A statement that the provider is prohibited from charging the resident or his or her estate a monthly fee once a unit has been permanently vacated by the resident, unless the fee is part of an equity interest contract. (22) All continuing care contracts that include monthly care fees shall address changes in monthly care fees by including either of the following provisions: (A) For prepaid continuing care contracts, which include monthly care fees, one of the following methods: (i) Fees shall not be subject to change during the lifetime of the agreement. (ii) Fees shall not be increased by more than a specified number of dollars in any one year and not more than a specified number of dollars during the lifetime of the agreement. (iii) Fees shall not be increased in excess of a specified percentage over the preceding year and not more than a specified percentage during the lifetime of the agreement. (B) For monthly fee continuing care contracts, except prepaid contracts, changes in monthly care fees shall be based on projected costs, prior year per capita costs, and economic indicators. (23) A provision requiring that the provider give written notice to the resident at least 30 days in advance of any change in the resident’s monthly care fees or in the price or scope of any component of care or other services. (24) A provision indicating whether the resident’s rights under the continuing care contract include any proprietary interests in the assets of the provider or in the continuing care retirement community, or both. Any statement in a contract concerning an ownership interest shall appear in a large-sized font or print. (25) If the continuing care retirement community property is encumbered by a security interest that is senior to any claims the residents may have to enforce continuing care contracts, a provision shall advise the residents that any claims they may have under the continuing care contract are subordinate to the rights of the secured lender. For equity projects, the continuing care contract shall specify the type and extent of the equity interest and whether any entity holds a security interest. (26) Notice that the living units are part of a continuing care retirement community that is licensed as a residential care facility for the elderly and, as a result, any duly authorized agent of the department may, upon proper identification and upon stating the purpose of his or her visit, enter and inspect the entire premises at any time, without advance notice. (27) A conspicuous statement, in at least 10-point boldface type in immediate proximity to the space reserved for the signatures of the resident and, if applicable, the transferor, that provides as follows: “You, the resident or transferor, may cancel the transaction without cause at any time within 90 days from the date you first occupy your living unit. See the attached notice of cancellation form for an explanation of this right.” (28) Notice that during the cancellation period, the continuing care contract may be canceled upon 30 days’ written notice by the provider without cause, or that the provider waives this right. (29) The terms and conditions under which the continuing care contract may be terminated after the cancellation period by either party, including any health or financial conditions. (30) A statement that, after the cancellation period, a provider may unilaterally terminate the continuing care contract only if the provider has good and sufficient cause. (A) Any continuing care contract containing a clause that provides for a continuing care contract to be terminated for “just cause,” “good cause,” or other similar provision, shall also include a provision that none of the following activities by the resident, or on behalf of the resident, constitutes “just cause,” “good cause,” or otherwise activates the termination provision: (i) Filing or lodging a formal complaint with the department or other appropriate authority. (ii) Participation in an organization or affiliation of residents, or other similar lawful activity. (B) The provision required by this paragraph shall also state that the provider shall not discriminate or retaliate in any manner against any resident of a continuing care retirement community for contacting the department, or any other state, county, or city agency, or any elected or appointed government official to file a complaint or for any other reason, or for participation in a residents’ organization or association. (C) This paragraph does not diminish the provider’s ability to terminate the continuing care contract for good and sufficient cause. (31) A statement that at least 90 days’ written notice to the resident is required for a unilateral termination of the continuing care contract by the provider. (32) A statement concerning the length of notice that a resident is required to give the provider to voluntarily terminate the continuing care contract after the cancellation period. (33) The policy or terms for refunding or repaying a lump sum of any portion of the entrance fee, in the event of cancellation, termination, or death. Every continuing care contract that provides for a refund or repaying a lump sum of all or a part of the entrance fee shall also do all of the following: (A) Specify the amount, if any, the resident has paid or will pay for upgrades, special features, or modifications to the resident’s unit. (B) State that if the continuing care contract is canceled or terminated by the provider, the provider shall do both of the following: (i) Amortize the specified amount at the same rate as the resident’s entrance fee. (ii) Refund the unamortized balance to the resident at the same time the provider pays the resident’s entrance fee refund. (C) State that the resident has a right to terminate his or her contract after 18 months of residential temporary relocation, as defined in paragraph (9) of subdivision (r) of Section 1771. Provisions for refunds due to cancellation pursuant to this subparagraph shall be set forth in the contract. (D) State the provider shall make a good-faith effort to reoccupy or resell a unit for which a lump-sum payment is conditioned upon resale of the unit. No later than July 1, 2017, a provider shall provide notice to all current residents with contracts applicable to this subparagraph regarding the statement required by this subparagraph as a clarification of the resident’s existing contract. (E) For all contracts with a repayment of all or a portion of the entrance fee conditioned upon the resale of the unit, the provider shall state the average and longest amount of time that it has taken to resell a unit within the last five calendar years. (34) The following notice at the bottom of the signatory page: “NOTICE” (date) “This is a continuing care contract as defined by paragraph (8) of subdivision (c) or subdivision (l) of Section 1771 of the California Health and Safety Code. This continuing care contract form has been approved by the State Department of Social Services as required by subdivision (b) of Section 1787 of the California Health and Safety Code. The basis for this approval was a determination that (provider name) has submitted a contract that complies with the minimum statutory requirements applicable to continuing care contracts. The department does not approve or disapprove any of the financial or health care coverage provisions in this contract. Approval by the department is NOT a guaranty of performance or an endorsement of any continuing care contract provisions. Prospective transferors and residents are strongly encouraged to carefully consider the benefits and risks of this continuing care contract and to seek financial and legal advice before signing.” (35) The provider shall not attempt to absolve itself in the continuing care contract from liability for its negligence by any statement to that effect, and shall include the following statement in the contract: “Nothing in this continuing care contract limits either the provider’s obligation to provide adequate care and supervision for the resident or any liability on the part of the provider which may result from the provider’s failure to provide this care and supervision.” (36) Provisions describing how the provider will proceed in the event of a closure, including an explanation of how the provider will comply with Sections 1793.80, 1793.81, 1793.82, and 1793.83. (b) A life care contract shall also provide that: (1) All levels of care, including acute care and physicians’ and surgeons’ services, will be provided to a resident. (2) Care will be provided for the duration of the resident’s life unless the life care contract is canceled or terminated by the provider during the cancellation period or after the cancellation period for good cause. (3) A comprehensive continuum of care will be provided to the resident, including skilled nursing, in a facility under the ownership and supervision of the provider on, or adjacent to, the continuing care retirement community premises. (4) Monthly care fees will not be changed based on the resident’s level of care or service. (5) A resident who becomes financially unable to pay his or her monthly care fees shall be subsidized provided the resident’s financial need does not arise from action by the resident to divest the resident of his or her assets. (c) Continuing care contracts may include provisions that do any of the following: (1) Subsidize a resident who becomes financially unable to pay for his or her monthly care fees at some future date. If a continuing care contract provides for subsidizing a resident, it may also provide for any of the following: (A) The resident shall apply for any public assistance or other aid for which he or she is eligible and that the provider may apply for assistance on behalf of the resident. (B) The provider’s decision shall be final and conclusive regarding any adjustments to be made or any action to be taken regarding any charitable consideration extended to any of its residents. (C) The provider is entitled to payment for the actual costs of care out of any property acquired by the resident subsequent to any adjustment extended to the resident under this paragraph, or from any other property of the resident that the resident failed to disclose. (D) The provider may pay the monthly premium of the resident’s health insurance coverage under Medicare to ensure that those payments will be made. (E) The provider may receive an assignment from the resident of the right to apply for and to receive the benefits, for and on behalf of the resident. (F) The provider is not responsible for the costs of furnishing the resident with any services, supplies, and medication, when reimbursement is reasonably available from any governmental agency, or any private insurance. (G) Any refund due to the resident at the termination of the continuing care contract may be offset by any prior subsidy to the resident by the provider. (2) Limit responsibility for costs associated with the treatment or medication of an ailment or illness existing before the date of admission. In these cases, the medical or surgical exceptions, as disclosed by the medical entrance examination, shall be listed in the continuing care contract or in a medical report attached to and made a part of the continuing care contract. (3) Identify legal remedies that may be available to the provider if the resident makes any material misrepresentation or omission pertaining to the resident’s assets or health. (4) Restrict transfer or assignments of the resident’s rights and privileges under a continuing care contract due to the personal nature of the continuing care contract. (5) Protect the provider’s ability to waive a resident’s breach of the terms or provisions of the continuing care contract in specific instances without relinquishing its right to insist upon full compliance by the resident with all terms or provisions in the contract. (6) Provide that the resident shall reimburse the provider for any uninsured loss or damage to the resident’s unit, beyond normal wear and tear, resulting from the resident’s carelessness or negligence. (7) Provide that the resident agrees to observe the off-limit areas of the continuing care retirement community designated by the provider for safety reasons. The provider shall not include any provision in a continuing care contract that absolves the provider from liability for its negligence. (8) Provide for the subrogation to the provider of the resident’s rights in the case of injury to a resident caused by the acts or omissions of a third party, or for the assignment of the resident’s recovery or benefits in this case to the provider, to the extent of the value of the goods and services furnished by the provider to or on behalf of the resident as a result of the injury. (9) Provide for a lien on any judgment, settlement, or recovery for any additional expense incurred by the provider in caring for the resident as a result of injury. (10) Require the resident’s cooperation and assistance in the diligent prosecution of any claim or action against any third party. (11) Provide for the appointment of a conservator or guardian by a court with jurisdiction in the event a resident becomes unable to handle his or her personal or financial affairs. (12) Allow a provider, whose property is tax exempt, to charge the resident, on a pro rata basis, property taxes, or in-lieu taxes, that the provider is required to pay. (13) Make any other provision approved by the department. (d) A copy of the resident’s rights as described in Section 1771.7 shall be attached to every continuing care contract. (e) A copy of the current audited financial statement of the provider shall be attached to every continuing care contract. For a provider whose current audited financial statement does not accurately reflect the financial ability of the provider to fulfill the continuing care contract obligations, the financial statement attached to the continuing care contract shall include all of the following: (1) A disclosure that the reserve requirement has not yet been determined or met, and that entrance fees will not be held in escrow. (2) A disclosure that the ability to provide the services promised in the continuing care contract will depend on successful compliance with the approved financial plan. (3) A copy of the approved financial plan for meeting the reserve requirements. (4) Any other supplemental statements or attachments necessary to accurately represent the provider’s financial ability to fulfill its continuing care contract obligations. (f) A schedule of the average monthly care fees charged to residents for each type of residential living unit for each of the five years preceding execution of the continuing care contract shall be attached to every continuing care contract. The provider shall update this schedule annually at the end of each fiscal year. If the continuing care retirement community has not been in existence for five years, the information shall be provided for each of the years the continuing care retirement community has been in existence. (g) If any continuing care contract provides for a health insurance policy for the benefit of the resident, the provider shall attach to the continuing care contract a binder complying with Sections 382 and 382.5 of the Insurance Code. (h) The provider shall attach to every continuing care contract a completed form in duplicate, captioned “Notice of Cancellation.” The notice shall be easily detachable, and shall contain, in at least 10-point boldface type, the following statement: “NOTICE OF CANCELLATION” (date) Your first date of occupancy under this contract _____ is: _____________________________________________ “You may cancel this transaction, without any penalty within 90 calendar days from the above date. If you cancel, any property transferred, any payments made by you under the contract, and any negotiable instrument executed by you will be returned within 14 calendar days after making possession of the living unit available to the provider. Any security interest arising out of the transaction will be canceled. If you cancel, you are obligated to pay a reasonable processing fee to cover costs and to pay for the reasonable value of the services received by you from the provider up to the date you canceled or made available to the provider the possession of any living unit delivered to you under this contract, whichever is later. If you cancel, you must return possession of any living unit delivered to you under this contract to the provider in substantially the same condition as when you took possession. Possession of the living unit must be made available to the provider within 20 calendar days of your notice of cancellation. If you fail to make the possession of any living unit available to the provider, then you remain liable for performance of all obligations under the contract. To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice, or any other written notice, or send a telegram to _____ (Name of provider) at _____ (Address of provider’s place of business) not later than midnight of_____________ (date). I hereby cancel this transaction (Resident’s or Transferor’s signature)” (Amended by Stats. 2018, Ch. 92, Sec. 135. (SB 1289) Effective January 1, 2019.)
  190. 1788.2.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 5. Contract [1787 - 1788.4] ( Article 5 added by Stats. 1990, Ch. 875, Sec. 2. )

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    A continuing care contract may be canceled without cause by written notice within 90 days of the resident’s initial occupancy. Death of the resident during that period also counts as cancellation unless the contract says otherwise.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 5. Contract [1787 - 1788.4] ( Article 5 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1788.2. (a) A continuing care contract may be canceled without cause by written notice from either party within 90 days from the date of the resident’s initial occupancy. (b) For all continuing care contracts, death of the resident before or during the cancellation period shall constitute a cancellation of the continuing care contract under subdivision (a), unless the continuing care contract includes specific provisions otherwise. (c) The cancellation period and the associated refund obligations shall apply as follows: (1) To all executed continuing care contracts regarding a unit in a continuing care retirement community that is not an equity continuing care retirement community. (2) To continuing care contracts executed in conjunction with a purchase of an equity interest from a provider but not to continuing care contracts executed in conjunction with sales of an equity interest by one resident to another. (d) The following fees may be charged before or during the 90-day cancellation period: (1) If possession of the living unit in a continuing care retirement community that is not an equity continuing care retirement community is returned to the provider in substantially the same condition as when received, the resident’s only obligations shall be to pay a reasonable fee to cover costs and to pay the reasonable value of services rendered pursuant to the canceled continuing care contract. (2) Equity project providers may impose a resale fee on sellers. For contracts entered into after January 1, 1996, upon the cancellation of a continuing care contract executed in conjunction with the purchase of an equity interest from the provider, the provider may charge a resale fee not to exceed the excess of the gross resale price of the equity interest over the purchase price paid by the resident or on behalf of the resident for the interest. (e) No resale fee shall exceed the sum of 10 percent of either the original or resale price of the equity interest and 100 percent of the excess if any, of the gross resale price of the equity interest over the purchase price paid by the resident or on behalf of the resident for the interest if either of the following applies: (1) The continuing care contract involved the purchase of an equity interest from the provider and is terminated after the cancellation period. (2) The continuing care contract involved the purchase of an equity interest from another resident and is terminated at any time. (f) For purposes of this section, “gross resale price” means the resale price before any deductions for resale fees, transfer taxes, real estate commissions, periodic fees, late charges, interest, escrow fees, or any other fees incidental to the sale of real property. (g) This section may not be construed to limit the provider’s ability to withhold delinquent periodic fees, late charges, accrued interest, or assessments from the sale proceeds, as provided by the continuing care contract or the real estate documents governing the equity continuing care retirement community. (Amended by Stats. 2000, Ch. 820, Sec. 50. Effective January 1, 2001.)
  191. 1788.4.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 5. Contract [1787 - 1788.4] ( Article 5 added by Stats. 1990, Ch. 875, Sec. 2. )

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    The provider must make refunds and lump-sum payments to the resident on specific deadlines, and it cannot keep making certain charges after the unit is vacated.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 5. Contract [1787 - 1788.4] ( Article 5 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1788.4. (a) During the cancellation period, the provider shall pay all refunds owed to a resident within 14 calendar days after a resident makes possession of the living unit available to the provider. (b) After the cancellation period, any refunds due to a resident under a continuing care contract shall be paid within 14 calendar days after a resident makes possession of the living unit available to the provider or 90 calendar days after death or receipt of notice of termination, whichever is later. (c) In nonequity projects, if the continuing care contract is canceled by either party during the cancellation period or terminated by the provider after the cancellation period, the resident shall be refunded the difference between the total amount of entrance, monthly, and optional fees paid and the amount used for care of the resident. (d) If a resident has paid additional amounts for upgrades, special features, or modifications to the living unit and the provider terminates the resident’s continuing care contract, the provider shall amortize those additional amounts at the same rate as the entrance fee and shall refund the unamortized balance to the resident. (e) A lump-sum payment after termination of a repayable contract, as defined in paragraph (3) of subdivision (r) of Section 1771, shall not be considered to be a refund and may not be characterized or advertised as a refund. The full lump sum owed, including any interest accrued, shall be paid to the resident or the resident’s estate within 14 calendar days after resale of the unit. (f) (1) Any balance of the lump sum owed that has not been paid to the resident or the resident’s estate within 180 days after termination of a repayable contract shall accrue interest at a rate calculated pursuant to paragraph (2). Any balance of the lump sum owed that has not been paid to the resident or the resident’s estate within 240 days after termination of a repayable contract shall accrue interest at a rate calculated pursuant to paragraph (3). Interest shall continue to accrue annually pursuant to paragraph (4) until the date the full lump sum owed is paid to the resident or the resident’s estate. This subdivision shall apply only to repayable contracts entered into on or after January 1, 2017. (2) Any amount owed that is not paid to the resident or the resident’s estate within the 180-day period pursuant to paragraph (1) shall accrue simple interest at a rate of 4 percent of the amount owed. (3) Any amount owed that is not paid to the resident or the resident’s estate within the 240-day period pursuant to paragraph (1) shall accrue simple interest at a rate of 6 percent of the amount owed. (4) Any amount owed that is not paid to the resident or the resident’s estate within one year after the 240-day period pursuant to paragraph (3) shall accrue interest at a rate of 6 percent, compounded annually. (5) Until January 1, 2018, this subdivision shall not apply to a project that is in development prior to January 1, 2017, including current repayable agreements, current deposit agreements that contemplate repayable entrance fees, and other projects that have received department approval to market units pursuant to Section 1771.4, or have received issuer, lender, or bond insurer approval to obtain bond financing, or other governmental approval based on a repayable entrance fee option, if the initial contract for the project is entered into on or before January 1, 2018. (g) Except as otherwise obligated by an equity interest contract, once the unit has been vacated and made available to the provider, the provider shall not make any further charges to the resident or his or her estate or charges against the lump sum owed to the resident or the resident’s estate for purposes of continued monthly payments to the provider or for maintenance or housekeeping on the vacated unit. (h) Nothing in this section shall be construed to limit or alter any legal remedies otherwise available to a resident or his or her estate. (Amended by Stats. 2016, Ch. 112, Sec. 3. (SB 939) Effective January 1, 2017.)
  192. 1789.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 6. Reporting and Reserve Requirements [1789 - 1793] ( Article 6 added by Stats. 1990, Ch. 875, Sec. 2. )

    Verify source ↗

    A provider must notify the department and get approval before certain changes, give the department written notice at least 60 days in advance, and notify the resident association within 10 days after filing with the department.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 6. Reporting and Reserve Requirements [1789 - 1793] ( Article 6 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1789. (a) A provider shall notify the department and obtain its approval before making any changes to any of the following: its name; its business structure or form of doing business; the overall management of its continuing care retirement community; or the terms of its financing. (b) The provider shall give written notice of proposed changes to the department at least 60 calendar days in advance of making the changes described in this section. (c) This notice requirement does not apply to routine facility staff changes. (d) Within 10 calendar days of submitting notification to the department of any proposed changes under subdivision (a), the provider shall notify the resident association of the proposed changes in the manner required by subdivision (e) of Section 1779. (Amended by Stats. 2000, Ch. 820, Sec. 52. Effective January 1, 2001.)
  193. 1789.1.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 6. Reporting and Reserve Requirements [1789 - 1793] ( Article 6 added by Stats. 1990, Ch. 875, Sec. 2. )

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    Providers must give a department-prescribed disclosure statement before certain agreements or payments, update it at least annually, and file the updated version with the department by the annual report filing deadline.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 6. Reporting and Reserve Requirements [1789 - 1793] ( Article 6 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1789.1. (a) Before executing a deposit agreement or continuing care agreement, or receiving any payment from a depositor or prospective resident, a provider shall deliver to the other parties in the deposit or continuing care agreement a disclosure statement in the form prescribed by the department. (b) The department shall issue a disclosure statement form that shall generally require disclosure, at a minimum, of the following information: (1) General information regarding the provider and the continuing care retirement community, including at a minimum all of the following: (A) The continuing care retirement community’s name, address, and telephone number. (B) The type of ownership, names of the continuing care retirement community’s owner and operator, the names of any affiliated facilities, and any direct religious affiliation. (C) Whether accredited and by what organization. (D) The year the continuing care retirement community opened and the distance to the nearest shopping center and hospital. (E) Whether the continuing care retirement community offers life care contracts or continuing care contracts, and whether the continuing care retirement community is single story or multistory. (F) The number of the continuing care retirement community’s studio units, one bedroom units, two bedroom units, cottages or houses, assisted living beds, and skilled nursing beds. (G) The continuing care retirement community’s percentage occupancy at the provider’s most recent fiscal yearend. (H) The form of contracts offered, the range of entrance fees, the percentages of a resident’s entrance fees that may be refunded, and the health care benefits included in contract. (I) Any age and insurance requirements for admission. (J) A listing of common area amenities and other services included with the monthly service fee, and a listing of those amenities and services that are available for an additional charge. (K) The number of meals each day included in the monthly service fee, the number of meals available for an extra charge, the frequency of housekeeping services, and additional cost, if any , for housekeeping services. (2) Income from operations during the most recent five years for which audited financial statements have been completed, including all of the following: (A) Operating income (excluding amortization of entrance fee income). (B) Operating expense (excluding depreciation, amortization, and interest). (C) Net income from operations. (D) Interest expense. (E) Unrestricted contributions. (F) Nonoperating income or expense, excluding extraordinary items. (G) Net income or loss before entrance fees. (H) Net cash-flow from entrance fees, that is the total deposits less refunds. (3) The name of the lender, outstanding balance, interest rate, date of origination, date of maturity, and amortization period for all secured debt. (4) Financial ratios for each of the three most recent years for which audited financial statements have been prepared, including all of the following: debt-to-asset ratio, operating ratio, debt service coverage ratio, and days cash-on-hand. The formulas for each ratio shall be determined by the department after consultation with the Continuing Care Advisory Committee. (5) The average monthly service fees charged during the most recent five years, and the percentage changes in the average from year to year, for each of the following: studio units, one bedroom units, two bedroom units, cottages and houses, assisted living units, and skilled nursing units. (6) Comments from the provider explaining any of the information included in the disclosure form. (c) Each provider shall update its disclosure statement at least annually when it completes its annual audited financial statements. Each provider shall file its updated version of the disclosure statement with the department not later than the final filing date for its annual report. (d) The form prescribed by the department under this section shall be used by providers to comply with the requirements of this section. (Added by Stats. 2000, Ch. 820, Sec. 53. Effective January 1, 2001.)
  194. 1789.2.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 6. Reporting and Reserve Requirements [1789 - 1793] ( Article 6 added by Stats. 1990, Ch. 875, Sec. 2. )

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    A provider must give the department written notice at least 90 days before closing a transaction that creates a lien or encumbrance on a continuing care retirement community property or its revenues.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 6. Reporting and Reserve Requirements [1789 - 1793] ( Article 6 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1789.2. (a) A provider shall provide the department with written notice at least 90 calendar days prior to closing any transaction that results in an encumbrance or lien on a continuing care retirement community property or its revenues. (b) The written notice required by this section shall include all of the following: (1) A description of the terms and amount of the proposed transaction. (2) An analysis of the sources of funds for repayment of principal and interest. (3) An analysis of the impact of the proposed transaction on monthly care fees. (4) An analysis of the impact that the proposed encumbrance would have on assets available for liquid reserves required by Section 1792, and refund reserves required by Section 1792.6. (c) Within seven calendar days of receipt of notice of proposed changes, the department shall acknowledge receipt of the notice in writing. (d) Within 30 calendar days following its receipt of the notice, the department shall inform the provider in writing whether additional materials are required to evaluate the transaction. (e) Within 90 calendar days following its receipt of additional materials, the department shall inform the provider of its approval or denial of the proposed transaction. (f) Providers shall not execute the proposed financial transaction for which notice has been given pursuant to subdivision (a) without the department’s written authorization unless either the 30-day response period or the 90 calendar day period for the department’s review of the provider’s request has expired without any response by the department. (g) If the department determines that the proposed financial transaction will materially increase monthly care fees or impair the provider’s ability to maintain required reserves, the department may: (1) Refuse to approve the transaction. (2) Record a notice of lien on the provider’s property pursuant to Section 1793.15 after notifying the provider and giving the provider an opportunity to withdraw the planned transaction. (3) Take both actions and any other action that it determines is necessary to protect the best interests of the residents. (h) Within 10 calendar days of submitting notification to the department of any proposed encumbrance to the community property, the provider shall notify the resident governing body or association of the proposed encumbrance in the manner required by subdivision (e) of Section 1779. (Amended by Stats. 2000, Ch. 820, Sec. 54. Effective January 1, 2001.)
  195. 1789.4.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 6. Reporting and Reserve Requirements [1789 - 1793] ( Article 6 added by Stats. 1990, Ch. 875, Sec. 2. )

    Verify source ↗

    Before selling or transferring a continuing care retirement community interest, the provider must get department approval, give advance notices, and in some cases set up a trust fund or performance bond; the purchaser must secure the needed licenses and certificate of authority first.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 6. Reporting and Reserve Requirements [1789 - 1793] ( Article 6 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1789.4. (a) A provider for a continuing care retirement community shall obtain approval from the department before consummating any sale or transfer of the continuing care retirement community or any interest in that community, other than sale of an equity interest in a unit to a resident or other transferor. (b) The provider shall provide written notice to the department at least 120 calendar days prior to consummating the proposed transaction. (c) The notice required by this section shall include all of the following: (1) The identity of the purchaser. (2) A description of the terms of the transfer or sale, including the sales price. (3) A plan for ensuring performance of the existing continuing care contract obligations. (d) The provider shall give written notice to all continuing care contract residents and depositors 120 calendar days prior to the sale or transfer. The notice shall do all of the following: (1) Describe the parties. (2) Describe the proposed sale or transfer. (3) Describe the arrangements for fulfilling continuing care contract obligations. (4) Describe options available to any depositor or resident who does not wish to have his or her contract assumed by a new provider. (5) Include an acknowledgment of receipt of the notice to be signed by the resident. (e) Unless a new provider assumes all of the continuing care obligations of the selling provider at the close of the sale or transfer, the selling provider shall set up a trust fund or secure a performance bond to ensure the fulfillment of all its continuing care contract obligations. (f) The purchaser shall make applications for, and obtain, the appropriate licenses and a certificate of authority before executing any continuing care contracts or assuming the selling provider’s continuing care contract obligations. (Amended by Stats. 2000, Ch. 820, Sec. 55. Effective January 1, 2001.)
  196. 1789.6.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 6. Reporting and Reserve Requirements [1789 - 1793] ( Article 6 added by Stats. 1990, Ch. 875, Sec. 2. )

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    A provider must record a Notice of Statutory Limitation on Transfer with the county recorder for each community.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 6. Reporting and Reserve Requirements [1789 - 1793] ( Article 6 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1789.6. A provider shall record with the county recorder a “Notice of Statutory Limitation on Transfer” for each community as required by subdivision (aa) of Section 1779.4 and Section 1786. (Amended by Stats. 2000, Ch. 820, Sec. 56. Effective January 1, 2001.)
  197. 1789.8.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 6. Reporting and Reserve Requirements [1789 - 1793] ( Article 6 added by Stats. 1990, Ch. 875, Sec. 2. )

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    Each provider must keep insurance or a fidelity bond in force for each agent or employee who can access a substantial amount of funds.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 6. Reporting and Reserve Requirements [1789 - 1793] ( Article 6 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1789.8. Each provider shall obtain and maintain in effect insurance or a fidelity bond for each agent or employee, who, in the course of his or her agency or employment, has access to any substantial amount of funds. This requirement is separate from the bonding requirements of residential care facility for the elderly regulations. (Amended by Stats. 2000, Ch. 820, Sec. 57. Effective January 1, 2001.)
  198. 1790.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 6. Reporting and Reserve Requirements [1789 - 1793] ( Article 6 added by Stats. 1990, Ch. 875, Sec. 2. )

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    Certain continuing care providers must file an annual financial report, include specified reserve and audit materials, and meet filing deadlines or pay late fees.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 6. Reporting and Reserve Requirements [1789 - 1793] ( Article 6 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1790. (a) Each provider that has obtained a provisional or final certificate of authority and each provider that possesses an inactive certificate of authority shall submit an annual report of its financial condition. The report shall consist of audited financial statements and required reserve calculations, with accompanying certified public accountants’ opinions thereon, the reserve information required by paragraph (2), Continuing Care Provider Fee and Calculation Sheet, evidence of fidelity bond as required by Section 1789.8, and certification that the continuing care contract in use for new residents has been approved by the department, all in a format provided by the department, and shall include all of the following information: (1) A certification, if applicable, that the entity is maintaining reserves for prepaid continuing care contracts, statutory reserves, and refund reserves. (2) Full details on the status, description, and amount of all reserves that the provider currently designates and maintains, and on per capita costs of operation for each continuing care retirement community operated. (3) Disclosure of any amounts accumulated or expended for identified projects or purposes, including, but not limited to, projects designated to meet the needs of the continuing care retirement community as permitted by a provider’s nonprofit status under Section 501(c)(3) of the Internal Revenue Code, and amounts maintained for contingencies. The disclosure of a nonprofit provider shall state how the project or purpose is consistent with the provider’s tax-exempt status. The disclosure of a for-profit provider shall identify amounts accumulated for specific projects or purposes and amounts maintained for contingencies. Nothing in this subdivision shall be construed to require the accumulation of funds or funding of contingencies, nor shall it be interpreted to alter existing law regarding the reserves that are required to be maintained. (4) Full details on any increase in monthly care fees, the basis for determining the increase, and the data used to calculate the increase. (5) The required reserve calculation schedules shall be accompanied by the auditor’s opinion as to compliance with applicable statutes. (6) Any other information as the department may require. (b) Each provider shall file the annual report with the department within four months after the provider’s fiscal yearend. If the complete annual report is not received by the due date, a one thousand dollar ($1,000) late fee shall accompany submission of the reports. If the reports are more than 30 days past due, an additional fee of thirty-three dollars ($33) for each day over the first 30 days shall accompany submission of the report. The department may, at its discretion, waive the late fee for good cause. (c) The annual report and any amendments thereto shall be signed and certified by the chief executive officer of the provider, stating that, to the best of his or her knowledge and belief, the items are correct. (d) A copy of the most recent annual audited financial statement shall be transmitted by the provider to each transferor requesting the statement. (e) A provider shall amend its annual report on file with the department at any time, without the payment of any additional fee, if an amendment is necessary to prevent the report from containing a material misstatement of fact or omitting a material fact. (f) If a provider is no longer entering into continuing care contracts, and currently is caring for 10 or fewer continuing care residents, the provider may request permission from the department, in lieu of filing the annual report, to establish a trust fund or to secure a performance bond to ensure fulfillment of continuing care contract obligations. The request shall be made each year within 30 days after the provider’s fiscal yearend. The request shall include the amount of the trust fund or performance bond determined by calculating the projected life costs, less the projected life revenue, for the remaining continuing care residents in the year the provider requests the waiver. If the department approves the request, the following shall be submitted to the department annually: (1) Evidence of trust fund or performance bond and its amount. (2) A list of continuing care residents. If the number of continuing care residents exceeds 10 at any time, the provider shall comply with the requirements of this section. (3) A provider fee as required by subdivision (c) of Section 1791. (g) If the department determines a provider’s annual audited report needs further analysis and investigation, as a result of incomplete and inaccurate financial statements, significant financial deficiencies, development of work out plans to stabilize financial solvency, or for any other reason, the provider shall reimburse the department for reasonable actual costs incurred by the department or its representative. The reimbursed funds shall be deposited in the Continuing Care Contract Provider Fee Fund. (Amended by Stats. 2009, Ch. 513, Sec. 1. (AB 1169) Effective January 1, 2010.)
  199. 1791.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 6. Reporting and Reserve Requirements [1789 - 1793] ( Article 6 added by Stats. 1990, Ch. 875, Sec. 2. )

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    Providers with a provisional or final certificate of authority must pay an annual fee. Annual reports under Section 1790 must include a payment to the Continuing Care Provider Fee Fund, and certain exempt providers must pay a minimum annual fee of $250 after their fiscal year ends.

    ## Health and Safety Code - HSC ## DIVISION 2. LICENSING PROVISIONS [1200 - 1796.88] ( Division 2 enacted by Stats. 1939, Ch. 60. ) ## CHAPTER 10. Continuing Care Contracts [1770 - 1793.91] ( Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2. ) ## ARTICLE 6. Reporting and Reserve Requirements [1789 - 1793] ( Article 6 added by Stats. 1990, Ch. 875, Sec. 2. ) ## 1791. (a) An annual fee shall be required of each provider which has obtained a provisional or final certificate of authority. (b) Each annual report submitted pursuant to Section 1790 shall be accompanied by a payment to the Continuing Care Provider Fee Fund in the amount of one-tenth of 1 percent of the portion of total operating expenses, excluding debt service and depreciation from audited financial statements, which has been allocated to continuing care contract residents. The allocation shall be based on the ratio of the mean number of total residents. (c) If a provider is granted an exemption from filing annual reports to the department pursuant to subdivision (f) of Section 1790, the minimum annual provider fee shall be two hundred fifty dollars ($250). This fee shall be submitted after the end of the provider’s fiscal year with proof of trust fund or performance bond as required by subdivision (f) of Section 1790. (Amended by Stats. 1995, Ch. 920, Sec. 45. Effective January 1, 1996.)
  200. 17910.

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1.5. REGULATION OF BUILDINGS USED FOR HUMAN HABITATION [17910 - 17998.3] ( Part 1.5 added by Stats. 1961, Ch. 1844. ) ## CHAPTER 1. General Provisions [17910 - 17914] ( Chapter 1 added by Stats. 1961, Ch. 1844. )

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    This section names the part the “State Housing Law.”

    ## Health and Safety Code - HSC ## DIVISION 13. HOUSING [17000 - 19997] ( Division 13 enacted by Stats. 1939, Ch. 60. ) ## PART 1.5. REGULATION OF BUILDINGS USED FOR HUMAN HABITATION [17910 - 17998.3] ( Part 1.5 added by Stats. 1961, Ch. 1844. ) ## CHAPTER 1. General Provisions [17910 - 17914] ( Chapter 1 added by Stats. 1961, Ch. 1844. ) ## 17910. This part is known as the “State Housing Law.” (Added by Stats. 1961, Ch. 1844.)

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