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AB 601 (Eggman) Introduced to Strengthen Disclosure and Suitability of RCFE Ownership

CANHR is also sponsoring an important bill on ownership disclosure and suitability of ownership for Residential Care Facilities for the Elderly (RCFEs). Over 90 percent of RCFEs are for-profit entities, many of which operate multiple facilities. However, Community Care Licensing is often unaware of other facilities owned and operated by applicants for a license and prior histories of substandard care at these facilities. AB 601 (Eggman) would establish specific suitability of ownership criteria and require applicants for a RCFE license to disclose complete ownership information, including disclosure of any person(s) who holds a 10 percent or more beneficial interest in the facility and all related entities. It is expected that AB 601 will be heard by the Assembly Human Services Committee in March.

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