AB 1502 — Freestanding skilled nursing facilities.

Summary

Existing law requires the State Department of Public Health to license, inspect, and regulate skilled nursing facilities, as defined, and prohibits a person, firm, partnership, association, corporation, or political subdivision of the state, or other governmental agency within the state from operating, establishing, managing, conducting, or maintaining a skilled nursing facility in this state, without first obtaining a license from the department. Existing law prohibits a person from acquiring a beneficial interest of 5% or more in any corporation or partnership licensed to operate a skilled nursing facility, or in any management company under contract with a licensee of a skilled nursing facility, or from becoming an officer or director of, or general partner in, a corporation, partnership, or management company without the prior written approval of the department. Existing law requires a licensee for a skilled nursing facility to provide written notice of a proposed change in licensee or management company to all residents of the facility and their representatives at least 90 days prior to a finalization of the sale, transfer of operation, or other change or transfer of ownership interests, except as specified. Existing law requires an applicant for a skilled nursing facility or intermediate care facility to submit certain information to the department, such as the name and address of a parent organization if the applicant is a subsidiary of another organization, and report any changes to that information within 30 days. Existing law imposes criminal penalties on a person who violates the licensing and regulatory requirements imposed on skilled nursing facilities. This bill would prohibit a person or an applicant for licensure from acquiring, operating, establishing, managing, conducting, or maintaining a freestanding skilled nursing facility without first obtaining a license from the department for that purpose. The bill would also apply the licensure requirement to a change of ownership or a change in management of such a facility. The bill would specify the requirements to apply for a license, after July 1, 2023, including evidence that the applicant is reputable and responsible to assume the license or management and evidence of specified financial capacity, and, if the applicant is part of a chain, providing a diagram indicating the relationship between the applicant and the persons or entities, as defined, that are part of the chain. The bill would require an applicant for a skilled nursing facility or intermediate care facility to report any changes in information in an application 30 days prior to that change, except as specified. The bill would make all applications prepared in relation to these provisions public records, except as specified under any applicable federal or state privacy laws. The bill would authorize or require the department to deny an application for licensure, or to revoke a license, under certain circumstances. By expanding the duties on licensees, this bill would expand an existing crime, thereby imposing a state-mandated local program. The bill would authorize the department to take specified actions, including imposing civil penalties, if an applicant acquires, operates, establishes, manages, conducts, or maintains a skilled nursing facility before the department acts on its application or following the denial of its application, or if the person does not first apply to the department for a license. The bill would specify that its provisions do not preclude the department from taking additional state or federal enforcement actions, as specified, including misdemeanor penalties for willful or repeated violations. The bill would require the department to ensure a facility's operation is transitioned to a qualified operator, following the denial of an application. The bill would authorize the department, subsequent to licensure, to assess a civil penalty of $10,000 for a material violation of these provisions. The bill would specify that its provisions do not apply to a skilled nursing facility operated as a distinct part of an acute care hospital or to a receiver or temporary manager appointed in accordance with other laws. The bill would require the department to convene a stakeholder group on or before April 1, 2023, to determine the feasibility of establishing a new methodology to calculate application fees. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Bill Text

• Chaptered 09/27/22 - Chaptered Current pdf September 27, 2022
• Enrolled 08/29/22 - Enrolled pdf August 29, 2022
• Amended 06/27/22 - Amended Senate pdf June 27, 2022
• Amended 06/15/22 - Amended Senate pdf June 15, 2022
• Amended 01/13/22 - Amended Assembly pdf January 13, 2022
• Amended 01/03/22 - Amended Assembly pdf January 03, 2022
• Amended 03/22/21 - Amended Assembly pdf March 22, 2021
• Introduced 02/19/21 - Introduced pdf February 19, 2021
• AB1502 View text html

Action History

1. September 27, 2022

   Chaptered by Secretary of State - Chapter 578, Statutes of 2022.

2. September 27, 2022

   Approved by the Governor.

3. August 31, 2022

   Enrolled and presented to the Governor at 4 p.m.

4. August 25, 2022

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 56. Noes 17.).

5. August 25, 2022

   Assembly Rule 77(a) suspended.

6. August 25, 2022

   In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 27 pursuant to Assembly Rule 77.

7. August 25, 2022

   Read third time. Passed. Ordered to the Assembly. (Ayes 25. Noes 8. Page 5138.).

8. August 11, 2022

   Read second time. Ordered to third reading.

9. August 11, 2022

   From committee: Do pass. (Ayes 5. Noes 1.) (August 11).

10. August 02, 2022

    In committee: Referred to suspense file.

11. June 28, 2022

    Re-referred to Com. on APPR.

12. June 28, 2022

    Withdrawn from committee.

13. June 27, 2022

    Read second time and amended. Re-referred to Com. on JUD.

14. June 23, 2022

    From committee: Amend, and do pass as amended and re-refer to Com. on JUD. (Ayes 8. Noes 0.) (June 22).

15. June 15, 2022

    From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on HEALTH.

16. May 04, 2022

    Referred to Coms. on HEALTH and JUD.

17. February 01, 2022

    In Senate. Read first time. To Com. on RLS. for assignment.

18. January 31, 2022

    Read third time. Passed. Ordered to the Senate. (Ayes 55. Noes 15. Page 3430.)

19. January 24, 2022

    Read second time. Ordered to third reading.

20. January 20, 2022

    From committee: Do pass. (Ayes 12. Noes 3.) (January 20).

21. January 14, 2022

    Re-referred to Com. on APPR.

22. January 13, 2022

    Read second time and amended.

23. January 12, 2022

    From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 12. Noes 2.) (January 11).

24. January 04, 2022

    Re-referred to Com. on HEALTH.

25. January 03, 2022

    From committee chair, with author's amendments: Amend, and re-refer to Com. on HEALTH. Read second time and amended.

26. March 23, 2021

    Re-referred to Com. on HEALTH.

27. March 22, 2021

    From committee chair, with author's amendments: Amend, and re-refer to Com. on HEALTH. Read second time and amended.

28. March 11, 2021

    Referred to Com. on HEALTH.

29. February 22, 2021

    Read first time.

30. February 20, 2021

    From printer. May be heard in committee March 22.

31. February 19, 2021

    Introduced. To print.

Sponsors

• Juan Carrillo · Cosponsor
• Al Muratsuchi · Primary
• Wood · Cosponsor
• Henry I. Stern · Cosponsor
• McCarty · Cosponsor

Votes

Subjects