Health facilities: licensure.

Existing law provides for the licensure and regulation of health facilities administered by the State Department of Public Health. A violation of these provisions is a crime. Existing law requires those desiring a license for a health facility, approval for a specified special service, or approval to manage a specified type of licensed health facility, that have not filed an application for a license to operate that facility, to file with the department a verified application on forms prescribed and furnished by the department, containing specified information. Existing law provides that any requirement placed upon, or reference to, a corporation in the provisions regulating health facilities shall also apply to a limited liability company. This bill would require a new license application to be filed for a health facility, as defined, before there is a change of ownership, as defined, or a major change in ownership interest, as defined. This bill would also require a notice to be filed with the department at least 90 days prior to an anticipated change in ownership, a major change in ownership interest, or a change in control interest, as defined, for certain health facilities. This bill would, for a transaction that is a change in control interest, permit the department to require a new license application to be filed or withhold approval of the transaction, as prescribed. Existing law establishes the Internal Departmental Quality Improvement Account within the Special Deposit Fund, available upon appropriation by the Legislature, for internal quality improvement activities in the Licensing and Certification Program. This bill would require the department to assess an administrative penalty in the amount of $25,000 for each violation of these provisions and permit the licensee to request a specified hearing if the licensee disputes a determination by the department of a violation. This bill would provide that penalties collected pursuant to these provisions will be deposited in the Internal Departmental Quality Improvement Account. Because this bill expands the definition of a crime, it would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.