California Assembly Bill AB1042

California 2021-2022 Regular Session

• Introduced: 2/18/21
• Refer: 3/25/21
• Report Pass: 3/25/21
• Refer: 3/26/21
• Report Pass: 4/14/21
• Refer: 4/14/21
• Report Pass: 4/28/21
• Engrossed: 5/24/21
• Refer: 5/25/21
• Refer: 6/3/21
• Report Pass: 6/15/21
• Refer: 6/15/21
• Report Pass: 7/5/21
• Refer: 7/6/21
• Report Pass: 8/16/21
• Refer: 8/16/21
• Enrolled: 9/9/21
• Chaptered: 10/4/21
• Passed: 10/4/21

Caption

Skilled nursing facilities: unpaid penalties: related parties.

Impact

The enactment of AB1042 has the potential to significantly alter the financial landscape for skilled nursing facilities across California. By making the licensees responsible for payments of quality assurance fees, including penalties and interest, the bill aims to ensure compliance and minimize the financial risks that may affect the state’s public health revenues. Furthermore, businesses involved in the management of these facilities will also be affected, especially in terms of financial planning and administrative obligations designed to maintain licensure.

Summary

Assembly Bill No. 1042, also known as AB1042, aims to amend several sections of the Health and Safety Code concerning skilled nursing facilities. The bill establishes new guidelines for the State Department of Public Health regarding the enforcement of unpaid quality assurance fees associated with these facilities. It specifically allows the department to issue written notices to licensee providers and their related parties if penalties are not paid, enabling the collection of these unpaid amounts through appropriate legal action, beginning January 1, 2023.

Sentiment

The sentiment surrounding AB1042 appears to reflect a general consensus on the need for accountability among skilled nursing facilities regarding their financial obligations. Proponents of the bill advocate for a more robust enforcement mechanism to ensure that facilities are held accountable for unpaid fees, thus protecting state resources. Critics, however, might argue that strict penalties could negatively impact facilities struggling to meet financial obligations, particularly in the aftermath of the pandemic and amid ongoing challenges in the healthcare sector.

Contention

Noteworthy points of contention related to AB1042 include concerns about the financial viability of nursing facilities that may face penalties for noncompliance. The requirement for the department to document determinations of financial viability raises questions about the fairness and transparency of the enforcement process. Stakeholders have expressed anxiety that while the bill aims to strengthen compliance and oversight, it may impose additional burdens on facilities, especially smaller providers who are already experiencing financial strain.