AB 1042

  • California Assembly Bill
  • 2021-2022 Regular Session
  • Introduced in Assembly
  • Passed Assembly May 24, 2021
  • Passed Senate Sep 02, 2021
  • Signed by Governor Oct 04, 2021

Skilled nursing facilities: unpaid penalties: related parties.

Abstract

The Long-Term Care, Health, Safety, and Security Act of 1973 generally requires the State Department of Public Health to license and regulate long-term health care facilities and to establish an inspection and reporting system to ensure that long-term health care facilities are in compliance with state statutes and regulations. The term "long-term health care facility" includes, among other types of facilities, a skilled nursing facility. Existing law relating to health facility data reporting requires an organization that operates, conducts, owns, or maintains a licensed skilled nursing facility to file with the Office of Statewide Health Planning and Development information as to whether the licensee, or a general partner, director, or officer of the licensee, has an ownership or control interest of 5% or more in a related party that provides any service to the skilled nursing facility. Existing law defines "related party" for those purposes as an organization related to the licensee provider or that is under common ownership or control, as defined in a specified federal regulation. This bill would, beginning January 1, 2023, expressly authorize the department, if a licensee provider fails to pay specified penalties in full when all appeals have been exhausted and the department's position has been upheld, to give written notice to the licensee provider and related parties in which the licensee provider has an ownership or control interest of 5% or more that the department may take appropriate legal action to recover the unpaid penalty amount from the licensee provider's financial interest in the related party. The bill would also require the department, if it determines after 2 notifications that the related parties are not financially viable or recovery is unlikely, to document that determination, as specified. This bill also would require the department to give written notice to related parties when a citation has been issued against a facility licensee, and to advise the related parties of the potential action if the violation is not remedied and penalties are assessed. Existing law specifies procedures for the appointment of a temporary manager to manage a long-term health care facility when certain circumstances exist. Existing law authorizes the department to use funds from the Health Facilities Citation Penalties Account to operate the facility after all other facility revenues are exhausted. This bill would state that funds from that account that are used for the purposes of the facility's management constitute a debt due to the state that may be collected pursuant to appropriate legal action taken by the department to collect the debt from the licensee, including from the licensee's financial interest in a related party. The bill would require the department, beginning January 1, 2023, to give written notice to related parties that it may take action to collect the licensee's debt, as specified. The bill would also require the department, if it determines after 2 notifications that the related parties are not financially viable or recovery is unlikely, to document that determination, as specified. Existing law requires the State Department of Health Care Services to impose a uniform quality assurance fee on each skilled nursing facility, with certain exceptions, in accordance with a prescribed formula. Under existing law, if a skilled nursing facility fails to pay all or part of the quality assurance fee within a specified time period, among other requirements, the unpaid amount constitutes a debt to the state that may be collected pursuant to specified provisions. This bill would also authorize the department to take appropriate legal action to recover the unpaid quality assurance fee amount, including any interest and penalties owed, from the licensee's financial interest in the related party and would require the department to give written notice to the licensee and related parties before the department takes such action.

Bill Sponsors (2)

Votes


Actions


Oct 04, 2021

California State Legislature

Approved by the Governor.

California State Legislature

Chaptered by Secretary of State - Chapter 475, Statutes of 2021.

Sep 20, 2021

California State Legislature

Enrolled and presented to the Governor at 3 p.m.

Sep 09, 2021

Senate

Read third time. Passed. Ordered to the Assembly. (Ayes 29. Noes 9. Page 2569.).

Assembly

Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 58. Noes 16. Page 3070.).

Assembly

Assembly Rule 63 suspended. (Page 3063.)

Assembly

In Assembly. Concurrence in Senate amendments pending.

Sep 07, 2021

Senate

Read second time. Ordered to third reading.

Sep 03, 2021

Senate

Read third time and amended. Ordered to second reading.

Sep 02, 2021

Senate

Motion to reconsider made by Senator Rubio.

Senate

Reconsideration granted. (Ayes 39. Noes 0. Page 2339.)

Senate

Read third time. Passed. Ordered to the Assembly. (Ayes 30. Noes 9. Page 2335.).

Aug 24, 2021

Senate

Read second time. Ordered to third reading.

Aug 23, 2021

Senate

From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

Aug 16, 2021

Senate

In committee: Hearing postponed by committee.

Senate

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

  • Amendment-Introduction
  • Amendment-Passage
  • Reading-1
  • Reading-2
  • Referral-Committee
Com. on APPR.

Jul 06, 2021

Senate

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

  • Amendment-Passage
  • Reading-1
  • Reading-2
  • Referral-Committee
Com. on APPR.

Jul 05, 2021

Senate

From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 1.) (June 30).

Jun 15, 2021

Senate

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

  • Amendment-Introduction
  • Amendment-Passage
  • Reading-1
  • Reading-2
  • Referral-Committee
Com. on HEALTH.

Jun 07, 2021

Senate

In committee: Hearing postponed by committee.

Jun 03, 2021

Senate

Referred to Com. on HEALTH.

  • Referral-Committee
Com. on HEALTH.

May 25, 2021

Senate

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

May 24, 2021

Assembly

Read third time. Passed. Ordered to the Senate. (Ayes 58. Noes 16. Page 1532.)

Apr 29, 2021

Assembly

Read second time. Ordered to third reading.

Apr 28, 2021

Assembly

From committee: Do pass. (Ayes 12. Noes 4.) (April 28).

Apr 14, 2021

Assembly

From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 2.) (April 13). Re-referred to Com. on APPR.

  • Committee-Passage
  • Committee-Passage-Favorable
  • Referral-Committee
Com. on APPR.

Apr 13, 2021

Assembly

Coauthors revised.

Mar 26, 2021

Assembly

Re-referred to Com. on HEALTH.

  • Referral-Committee
Com. on HEALTH.

Mar 25, 2021

Assembly

Referred to Com. on HEALTH.

  • Referral-Committee
Com. on HEALTH.

Assembly

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

Feb 19, 2021

Assembly

From printer. May be heard in committee March 21.

Feb 18, 2021

Assembly

Read first time. To print.

Bill Text

Bill Text Versions Format
AB1042 HTML
02/18/21 - Introduced PDF
03/25/21 - Amended Assembly PDF
06/15/21 - Amended Senate PDF
07/06/21 - Amended Senate PDF
08/16/21 - Amended Senate PDF
09/03/21 - Amended Senate PDF
09/14/21 - Enrolled PDF
10/04/21 - Chaptered PDF

Related Documents

Document Format
04/09/21- Assembly Health PDF
04/26/21- Assembly Appropriations PDF
04/30/21- ASSEMBLY FLOOR ANALYSIS PDF
06/28/21- Senate Health PDF
08/25/21- Sen. Floor Analyses PDF
09/07/21- Sen. Floor Analyses PDF
09/09/21- ASSEMBLY FLOOR ANALYSIS PDF

Sources

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