AB-1502 Freestanding skilled nursing facilities

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 requires an applicant for a skilled nursing facility or intermediate care facility to submit certain information to the department, such as the name and address of a parent corporation organization if the applicant is a subsidiary of another organization, and report any changes to that information within 30 days.

Existing law imposes criminal penalties on a person who violates the licensing and regulatory requirements imposed on skilled nursing facilities.