Health facilities.

Existing law provides for the licensure and regulation of health facilities, including skilled nursing facilities, by the State Department of Public Health. Existing law requires each applicant for a license to operate a skilled nursing facility to disclose to the department, among other things, the names and addresses of any person or organization, or both, having an ownership or control interest of 5% or more in a management company that operates, or is proposed to operate, the facility. Existing law makes it a misdemeanor to violate laws relating to the licensing of health facilities. This bill would require a licensee of a skilled nursing facility, at least 90 days prior to the finalization of a sale, transfer of operation, or other change or transfer of ownership interests, to give a written notice of the proposed change in licensee or management company to all residents of the facility and their representatives that contains specified information relating to the prospective licensee, transferee, assignee, lessee, or licensee's parent company or management company. The bill would impose a civil penalty of $100 per day on a licensee for each day the notice is delayed. This bill would prohibit a prospective transferee, in the capacity of a prospective licensee, during a 60-day transition period, from discharging an employee, other than the nursing home administrator and the director of nursing, without cause. The bill would prohibit, during that 60-day period, an employee from suffering any reduction in wages, benefits, or other terms and conditions of employment as a result of the transfer or change of ownership. This bill would exempt from the above provisions a skilled nursing facility that is a distinct part of an acute care hospital and would specify that these provisions only apply to license applications submitted after a specified date. Because a violation of the above-described requirements would be a crime, the bill 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.