AB 1502

  • California Assembly Bill
  • 2021-2022 Regular Session
  • Introduced in Assembly Feb 19, 2021
  • Passed Assembly Jan 31, 2022
  • Senate
  • Governor

Freestanding skilled nursing facilities.

Abstract

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 imposes criminal penalties on a person who violates the licensing and regulatory requirements imposed on skilled nursing facilities. This bill would prohibit a person, firm, entity, partnership, trust, association, corporation, or political subdivision of the state, or other governmental agency within the state 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 specify the requirements to apply for a license, including affirmatively establishing suitability, as defined, providing the department with the applicant's Medicare and Medicaid cost reports for all nursing facilities owned or managed by the applicant for the past 5 years in this and other states, 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 the department to post all applications for a license and its supporting documents on the internet, as specified, and allow for public comment on applications, which the department would be required to review and consider, as specified. The bill would make all applications and other documents prepared in relation to these provisions public records, in accordance with 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. The bill would require a licensee to update specific information included in their license application. By expanding the duties on licensees, this bill would expand an existing crime, thereby imposing a state-mandated local program. The bill would prohibit unpermitted operation, defined as when an applicant or associated person or entity acquires, operates, establishes, manages, conducts, or maintains a freestanding skilled nursing facility before the department approves its application or following the department's denial of its application, or when a person or entity acquires, operates, establishes, manages, conducts, or maintains a freestanding skilled nursing facility without first applying to and obtaining a license from the department for that purpose. The bill would require specific actions to be immediately taken in an instance of unpermitted operation, including that the department would ban new admissions and would conduct daily onsite monitor visits and the State Department of Health Care Services would suspend all Medi-Cal payments to the facility. The bill would make unpermitted operation a separate and distinct misdemeanor, as specified. By creating a new crime, this bill would impose a state-mandate local program. 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 require the department to establish regulations governing criminal clearance procedures for applicants and associated persons and entities by January 1, 2024. The bill would require the department to annually report to the Legislature on skilled nursing facility ownership and management, as specified. 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 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 Sponsors (4)

Votes


Actions


May 04, 2022

Senate

Referred to Coms. on HEALTH and JUD.

  • Referral-Committee
Coms. on HEALTH and JUD.

Feb 01, 2022

Senate

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

Jan 31, 2022

Assembly

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

Jan 24, 2022

Assembly

Read second time. Ordered to third reading.

Jan 20, 2022

Assembly

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

Jan 14, 2022

Assembly

Re-referred to Com. on APPR.

  • Referral-Committee
Com. on APPR.

Jan 13, 2022

Assembly

Read second time and amended.

Jan 12, 2022

Assembly

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

Jan 04, 2022

Assembly

Re-referred to Com. on HEALTH.

  • Referral-Committee
Com. on HEALTH.

Jan 03, 2022

Assembly

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

Mar 23, 2021

Assembly

Re-referred to Com. on HEALTH.

  • Referral-Committee
Com. on HEALTH.

Mar 22, 2021

Assembly

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

Mar 11, 2021

Assembly

Referred to Com. on HEALTH.

  • Referral-Committee
Com. on HEALTH.

Feb 22, 2021

Assembly

Read first time.

Feb 20, 2021

Assembly

From printer. May be heard in committee March 22.

Feb 19, 2021

Assembly

Introduced. To print.

Bill Text

Bill Text Versions Format
AB1502 HTML
02/19/21 - Introduced PDF
03/22/21 - Amended Assembly PDF
01/03/22 - Amended Assembly PDF
01/13/22 - Amended Assembly PDF

Related Documents

Document Format
01/07/22- Assembly Health PDF
01/18/22- Assembly Appropriations PDF
01/24/22- ASSEMBLY FLOOR ANALYSIS PDF

Sources

Data on Open States is updated periodically throughout the day from the official website of the California State Legislature.

If you notice any inconsistencies with these official sources, feel free to file an issue.