READ FIRST TIME 02/05/10.   

     AN ACT Relating to license fees for nursing homes, boarding homes, and adult family homes; amending RCW 18.51.050, 18.20.050, and 70.128.060; and adding a new section to chapter 43.20A RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 18.51.050 and 1991 sp.s. c 8 s 1 are each amended to read as follows:
     (1)(a) Upon receipt of an application for a license, the department shall issue a license if the applicant and the nursing home's facilities meet the requirements established under this chapter, except that the department shall issue a temporary license to a court-appointed receiver for a period not to exceed six months from the date of appointment. ((Prior to the issuance or renewal of the license, the licensee shall pay a license fee as established by the department.))
     (b)(i) Except as provided in (b)(ii) of this subsection, prior to the issuance or renewal of the license, the licensee shall pay a license fee. Until July 1, 2010, the license fee shall be established by the department. Beginning on July 1, 2010, and thereafter, the per bed license fee shall be established by the legislature in the biennial budget act. The license fees established by the legislature shall not exceed the department's annual licensing and regulatory activity costs.
     (ii) No fee shall be required of government operated institutions or court-appointed receivers.
     ((All licenses issued under the provisions of this chapter)) (c) A license issued under this chapter shall not exceed thirty-six months in duration, and it shall expire on a date ((to be)) set by the department((, but no license issued pursuant to this chapter shall exceed thirty-six months in duration)).
     ((When)) (d) In the event of a change of ownership ((occurs)), the ((entity becoming the licensed operating entity of the facility shall pay a fee established by the department at the time of application for the license. The previously determined date of license expiration shall not change. The department shall establish license fees at an amount adequate to reimburse the department in full for all costs of its licensing activities for nursing homes, adjusted to cover the department's cost of reimbursing such fees through medicaid)) previously established license expiration date shall not change. The proposed licensee must ensure payment of any unpaid portion of the license fee, pending the next scheduled license renewal date.
     (2) All applications and fees for renewal of the license shall be submitted to the department not later than thirty days prior to the date of expiration of the license. All applications and fees, if any, for change of ownership ((licenses)) shall be submitted to the department not later than sixty days before the date of the proposed change of ownership. ((Each)) A nursing home license shall be issued only to the ((operating entity and those persons named in the license application)) person that applied for the license. The license is valid only for the operation of the facility at the location specified in the license application. Licenses are not transferable or assignable. Licenses shall be posted in a conspicuous place on the licensed premises.

Sec. 2   RCW 18.20.050 and 2004 c 140 s 1 are each amended to read as follows:
     (1)(a) Upon receipt of an application for license, if the applicant and the boarding home's facilities meet the requirements established under this chapter, the department shall issue a license. If there is a failure to comply with the provisions of this chapter or the ((standards and)) rules adopted ((pursuant thereto)) under this chapter, the department may in its discretion issue a provisional license to an applicant for a license, or for the renewal of a license((, a)). A provisional license ((which)) will permit the operation of the boarding home for a period to be determined by the department, but not to exceed twelve months((, which provisional license)) and shall not be subject to renewal. The department may also place conditions on the license under RCW 18.20.190. ((At the time of the application for or renewal of a license or provisional license the licensee shall pay a license fee as established by the department under RCW 43.20B.110))
     (b) At the time of the application for or renewal of a license or provisional license, the licensee shall pay a license fee. Until July 1, 2010, the license fee shall be established by the department under RCW 43.20B.110. Beginning on July 1, 2010, and thereafter, the per bed license fee shall be established by the legislature in the biennial budget act. The license fees established by the legislature shall not exceed the department's annual licensing and regulatory activity costs.
     ((All licenses issued under the provisions of this chapter shall expire on a date to be set by the department, but no license issued pursuant to this chapter shall exceed twelve months in duration. However, when the annual license renewal date of a previously licensed boarding home is set by the department on a date less than twelve months prior to the expiration date of a license in effect at the time of reissuance, the license fee shall be prorated on a monthly basis and a credit be allowed at the first renewal of a license for any period of one month or more covered by the previous license.)) (c) A license issued under this chapter shall not exceed twelve months in duration and it shall expire on a date set by the department. A boarding home license shall be issued only to the person that applied for the license. All applications for renewal of a license shall be made not later than thirty days prior to the date of expiration of the license. Each license shall be issued only for the premises and persons named in the application, and no license shall be transferable or assignable. Licenses shall be posted in a conspicuous place on the licensed premises.
     (2) A licensee who receives notification of the department's initiation of a denial, suspension, nonrenewal, or revocation of a boarding home license may, in lieu of appealing the department's action, surrender or relinquish the license. The department shall not issue a new license to or contract with the licensee, for the purposes of providing care to vulnerable adults or children, for a period of twenty years following the surrendering or relinquishment of the former license. The licensing record shall indicate that the licensee relinquished or surrendered the license, without admitting the violations, after receiving notice of the department's initiation of a denial, suspension, nonrenewal, or revocation of a license.
     (3) The department shall establish, by rule, the circumstances requiring a change in licensee, which include, but are not limited to, a change in ownership or control of the boarding home or licensee, a change in the licensee's form of legal organization, such as from sole proprietorship to partnership or corporation, and a dissolution or merger of the licensed entity with another legal organization. The new licensee is subject to the provisions of this chapter, the rules adopted under this chapter, and other applicable law. In order to ensure that the safety of residents is not compromised by a change in licensee, the new licensee is responsible for correction of all violations that may exist at the time of the new license.
     (4) The department may deny, suspend, modify, revoke, or refuse to renew a license when the department finds that the applicant or licensee or any partner, officer, director, managerial employee, or majority owner of the applicant or licensee:
     (a) Operated a boarding home without a license or under a revoked or suspended license; or
     (b) Knowingly or with reason to know made a false statement of a material fact (i) in an application for license or any data attached to the application, or (ii) in any matter under investigation by the department; or
     (c) Refused to allow representatives or agents of the department to inspect (i) the books, records, and files required to be maintained, or (ii) any portion of the premises of the boarding home; or
     (d) Willfully prevented, interfered with, or attempted to impede in any way (i) the work of any authorized representative of the department, or (ii) the lawful enforcement of any provision of this chapter; or
     (e) Has a history of significant noncompliance with federal or state regulations in providing care or services to vulnerable adults or children. In deciding whether to deny, suspend, modify, revoke, or refuse to renew a license under this section, the factors the department considers shall include the gravity and frequency of the noncompliance.
     (5) The department shall serve upon the applicant a copy of the decision granting or denying an application for a license. An applicant shall have the right to contest denial of his or her application for a license as provided in chapter 34.05 RCW by requesting a hearing in writing within twenty-eight days after receipt of the notice of denial.

Sec. 3   RCW 70.128.060 and 2009 c 530 s 5 are each amended to read as follows:
     (1) An application for license shall be made to the department upon forms provided by it and shall contain such information as the department reasonably requires.
     (2) Subject to the provisions of this section, the department shall issue a license to an adult family home if the department finds that the applicant and the home are in compliance with this chapter and the rules adopted under this chapter, unless (a) the applicant or a person affiliated with the applicant has prior violations of this chapter relating to the adult family home subject to the application or any other adult family home, or of any other law regulating residential care facilities within the past five years that resulted in revocation, suspension, or nonrenewal of a license or contract with the department; or (b) the applicant or a person affiliated with the applicant has a history of significant noncompliance with federal, state, or local laws, rules, or regulations relating to the provision of care or services to vulnerable adults or to children. A person is considered affiliated with an applicant if the person is listed on the license application as a partner, officer, director, resident manager, or majority owner of the applying entity, or is the spouse of the applicant.
     (3) The license fee shall be submitted with the application.
     (4) The department shall serve upon the applicant a copy of the decision granting or denying an application for a license. An applicant shall have the right to contest denial of his or her application for a license as provided in chapter 34.05 RCW by requesting a hearing in writing within twenty-eight days after receipt of the notice of denial.
     (5) The department shall not issue a license to a provider if the department finds that the provider or spouse of the provider or any partner, officer, director, managerial employee, or majority owner has a history of significant noncompliance with federal or state regulations, rules, or laws in providing care or services to vulnerable adults or to children.
     (6) The department shall license an adult family home for the maximum level of care that the adult family home may provide. The department shall define, in rule, license levels based upon the education, training, and caregiving experience of the licensed provider or staff.
     (7) The department shall establish, by rule, standards used to license nonresident providers and multiple facility operators.
     (8) The department shall establish, by rule, for multiple facility operators educational standards substantially equivalent to recognized national certification standards for residential care administrators.
     (9) ((The license fee shall be set at one hundred dollars per year for each home. An eight hundred dollar processing fee shall also be charged each home when the home is initially licensed. The processing fee will be applied toward the license renewal in the subsequent three years. A five hundred dollar rebate will be returned to any home that renews after four years in operation.)) (a) Until July 1, 2010, the license fee shall be set at one hundred dollars per year for each home. An eight hundred dollar processing fee shall also be charged each home when the home is initially licensed.
     (b) Beginning on July 1, 2010, and thereafter, the per bed license fee and any processing fees including the initial licensing fee, or any rebate of an initial processing fee related to (a) of this subsection, shall be established by the legislature in the biennial budget act. The license fees established by the legislature shall not exceed the department's annual licensing and regulatory activity costs.
     (10) A provider who receives notification of the department's initiation of a denial, suspension, nonrenewal, or revocation of an adult family home license may, in lieu of appealing the department's action, surrender or relinquish the license. The department shall not issue a new license to or contract with the provider, for the purposes of providing care to vulnerable adults or children, for a period of twenty years following the surrendering or relinquishment of the former license. The licensing record shall indicate that the provider relinquished or surrendered the license, without admitting the violations, after receiving notice of the department's initiation of a denial, suspension, nonrenewal, or revocation of a license.
     (11) The department shall establish, by rule, the circumstances requiring a change in the licensed provider, which include, but are not limited to, a change in ownership or control of the adult family home or provider, a change in the provider's form of legal organization, such as from sole proprietorship to partnership or corporation, and a dissolution or merger of the licensed entity with another legal organization. The new provider is subject to the provisions of this chapter, the rules adopted under this chapter, and other applicable law. In order to ensure that the safety of residents is not compromised by a change in provider, the new provider is responsible for correction of all violations that may exist at the time of the new license.

NEW SECTION.  Sec. 4   A new section is added to chapter 43.20A RCW to read as follows:
     (1) It is the intent of the legislature that the costs of each long-term care facility licensing and regulatory program be fully borne by the facilities. With the information provided in the report under subsection (2) of this section, the legislature intends to identify the licensing fees for each facility that would be sufficient to defray the costs of administering the licensing and regulatory program for those facilities.
     (2) Beginning July 15, 2010, and annually thereafter, the department shall provide a licensing fee report to the legislature on nursing homes, boarding homes, and adult family homes. The report shall include:
     (a) Information on initial licensing including but not limited to:
     (i) The number of initial facility inspections; and
     (ii) The number of initial licensing follow-up inspections by facility type;
     (b) Information on licensing renewals including but not limited to:
     (i) The number of licensing renewal full inspections;
     (ii) The number of follow-up inspections; and
     (iii) The average length of time between renewal inspections by facility type;
     (c) Information on complaint investigations including but not limited to:
     (i) The total number of complaint investigations by facility type;
     (ii) The number of complaint investigations by priority and facility type; and
     (iii) The percent of complaints per bed by facility type; and
     (d) Information on licensing and regulatory costs for the previous fiscal year including but not limited to:
     (i) The total costs for licensing and regulatory activities by facility type;
     (ii) The percentage of total state operating costs for licensing and regulatory activities that are covered through licensing fees; and
     (iii) The estimated fee amount that would be needed in order to cover the total state costs of licensing and regulatory activities, by facility type.