Bill Text: CA AB1523 | 2013-2014 | Regular Session | Chaptered

---

Bill Title: Residential care facilities for the elderly: liability insurance.

Spectrum: Moderate Partisan Bill (Democrat 7-1)

Status: (Passed) 2014-08-15 - Chaptered by Secretary of State - Chapter 205, Statutes of 2014. [AB1523 Detail]

Download: California-2013-AB1523-Chaptered.html

---

BILL NUMBER: AB 1523	CHAPTERED
	BILL TEXT

	CHAPTER  205
	FILED WITH SECRETARY OF STATE  AUGUST 15, 2014
	APPROVED BY GOVERNOR  AUGUST 15, 2014
	PASSED THE SENATE  JUNE 26, 2014
	PASSED THE ASSEMBLY  AUGUST 4, 2014
	AMENDED IN SENATE  JUNE 12, 2014
	AMENDED IN SENATE  JUNE 3, 2014
	AMENDED IN ASSEMBLY  APRIL 1, 2014

INTRODUCED BY   Assembly Members Atkins and Weber
   (Principal coauthor: Assembly Member Maienschein)
   (Coauthors: Assembly Members Ian Calderon, Skinner, and Waldron)
   (Coauthors: Senators Block and Corbett)

                        JANUARY 17, 2014

   An act to add Section 1569.605 to the Health and Safety Code,
relating to residential care facilities for the elderly.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1523, Atkins. Residential care facilities for the elderly:
liability insurance.
   Existing law provides for the licensure and regulation of
residential care facilities for the elderly by the State Department
of Social Services, including requiring, as a condition of licensure,
bonds issued by a surety company for a licensee that handles the
moneys of a person in the facility. Violation of these provisions is
a misdemeanor.
   This bill, on and after July 1, 2015, would require all
residential care facilities for the elderly to maintain liability
insurance in an amount of at least $1,000,000 per occurrence and
$3,000,000 in the annual aggregate to cover injury to residents or
guests caused by the negligent acts or omissions to act of, or
neglect by, the licensee or its employees. By creating a new crime,
this 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.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1569.605 is added to the Health and Safety
Code, to read:
   1569.605.  On and after July 1, 2015, all residential care
facilities for the elderly, except those facilities that are an
integral part of a continuing care retirement community, shall
maintain liability insurance covering injury to residents and guests
in the amount of at least one million dollars ($1,000,000) per
occurrence and three million dollars ($3,000,000) in the total annual
aggregate, caused by the negligent acts or omissions to act of, or
neglect by, the licensee or its employees.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.