Key Concepts: Application Procedures

16 key concepts from Title 22, Division 6, Chapter 8, Article 3: Application Procedures, for the RCFE Administrator exam. For the searchable, bookmarkable version, use the interactive Study Guide.

What a License Application Must Include: Applicant & Facility Basics
87155 p. 37
Anyone wanting to open an RCFE (an individual, firm, partnership, association, corporation, or government entity) has to file a license application with the licensing agency on its official forms, and cooperate with any follow-up requests for verification or documentation. Among the required contents:
  • The facility's name (or proposed name) and address.
  • The applicant's name/address, plus proof the applicant has completed the Administrator Certification requirements under 87406, unless they already hold a current RCFE license issued before July 1, 1989, or completed an approved certification program within the last 5 years.
  • If the applicant is a partnership: each partner's name, signature, and business address.
  • If the applicant is a corporation or association: each officer/director's name, title, and address (signed by the CEO or an authorized rep), plus a copy of the Articles of Incorporation and bylaws, and the identity of anyone owning more than 10% of the corporation's stock.
  • If the applicant is a corporation: each board member, executive director, and officer has to disclose every other facility they've been licensed to operate, worked at, or served on the board of; so the Department can spot patterns across multiple facilities.
Show Title 22 source text
(a) Any individual, firm, partnership, association, corporation or governmental entity desiring to obtain a license shall file with the licensing agency an application on forms furnished by the licensing agency. The licensee shall cooperate with the licensing agency in providing verification and/or documentation as requested by the licensing agency. The application and supporting documents shall contain the following:Part 1, Page 37
(1) Name or proposed name and address of facility.Part 1, Page 37
(2) Name and address of the applicant and documentation verifying completion by the applicant of certification requirements as specified in Section 87406, Administrator Certification Requirements.Part 1, Page 37
(3) If the applicant is a partnership, the name, signature and principal business address of each partner.Part 1, Page 37
(4) If the applicant is a corporation or association, the name, title and principal business address of each officer, executive director, and member of the governing board. The application shall be signed by the chief executive officer or authorized representative. In addition, a copy of the Articles of Incorporation, Constitution and By-laws, and the name and address of each person owning more than 10 percent of stock in the corporation shall be provided.Part 1, Page 37
(5) If the applicant is a corporation, each member of the board of directors, executive director, and any officer shall list the name of all facilities which they have been licensed to operate, employed by or a member of the board of the directors, executive director or an officer.Part 1, Page 37
Application Requirement for Facilities With a Nonresident Owner
87155 / H&S 1569.175 p. 37-38
For small facilities (6 or fewer residents) where the owner doesn't live on-site, the application also has to include the facility's approved procedures under Health and Safety Code 1569.175 for handling incidents and complaints. Those procedures have to guarantee:
  • The owner (or their designee) gets notified of any incident or complaint, personally looks into it, and gives the person who complained a response: either what action was taken, or why no action was needed.
  • A fixed weekly time when the owner (or their designee) will be present at the facility, so residents and neighbors have a real opportunity to raise concerns directly.
Facilities with nonresident owners had to have these procedures in place by July 1, 1987.
Show Title 22 source text
(6) Procedures as required pursuant to section 1569.175 of the Health and Safety Code.Part 1, Page 37
(a) In addition to any other requirements of this chapter, any residential care facility for the elderly providing residential care for six or fewer persons at which the owner does not reside shall provide a procedure approved by the licensing agency for immediate response to incidents and complaints. This procedure shall include a method of assuring that the owner, licensee, or person designated by the owner or licensee is notified of the incident, that the owner, licensee, or person designated by the owner or licensee has personally investigated the matter, and that the person making the complaint or reporting the incident has received a response of action taken or a reason why no action needs to be taken.Part 1, Page 38
(b) In order to assure the opportunity for complaints to be made directly to the owner, licensee, or person designated by the owner or licensee, and to provide the opportunity for the owner, licensee, or person designated by the owner or licensee to meet residents and learn of problems in the neighborhood, any facility with a nonresident owner shall establish a fixed time on a weekly basis when the owner, licensee, or person designated by the owner or licensee will be present.Part 1, Page 38
(c) Facilities with nonresident owners shall establish procedures to comply with the requirements of this section on or before July 1, 1987.Part 1, Page 38
What a License Application Must Include: Operations Info
87155 p. 38
More required application contents, covering how the facility will actually run:
  • Who owns the building, if the facility is leasing or renting its premises.
  • What category of facility it will be.
  • The maximum number of residents it plans to serve.
  • The administrator's name, home and mailing addresses, background/qualifications, and proof of the required education and certification.
  • A current organizational chart (positions + lines of authority), though facilities under 16 residents can submit a simple list of positions and staffing schedules instead of a formal chart.
Show Title 22 source text
(7) Name and address of owner of facility premises if applicant is leasing or renting.Part 1, Page 38
(8) The category of facility to be operated.Part 1, Page 38
(9) Maximum number to be served.Part 1, Page 38
(10) The name, residence and mailing addresses of the facility administrator, a description of the administrator's background and qualifications, and documentation verifying the required education and administrator certification.Part 1, Page 38
(11) Copy of the current organizational chart showing type and number of positions and line of authority. However, facilities for less than sixteen persons may furnish, in lieu of an organization chart, a list of positions and the periods of time that persons in these positions will be providing services at the facility.Part 1, Page 38
What a License Application Must Include: Character, Finances & Insurance
87155 p. 39
The remaining required pieces:
  • Evidence that the applicant (and, for an organization, its members/shareholders and the person who'll be in charge of the facility) is of reputable and responsible character, per Health and Safety Code 1520(b).
  • A financial plan of operation, with start-up funds covering at least 3 months of operating costs; plus, if construction is involved, proof there's enough financing to complete it, and confirmation the scope of planned services is realistic for the funds available (which the licensing agency can verify).
  • If there's a change of licensee, the documentation required under 87217(k).
  • Proof of insurance covering the facility's operation.
Show Title 22 source text
(12) Evidence pursuant to Health and Safety Code, section 1520(b).Part 1, Page 39
(b) Evidence satisfactory to the department that the applicant is of reputable and responsible character. ... If the applicant is a firm, association, organization, partnership, business trust, corporation or company, like evidence shall be submitted as to the members or shareholders thereof, and the person who will be in charge of the community care facility for which application for issuance of license or special permit is made.Part 1, Page 39
(13) A financial plan of operation on forms provided or approved by the Department. Start-up funds shall be sufficient to meet a minimum of three (3) months operating costs. In addition: (A) Where construction is anticipated to meet the requirements for a license, sufficient financing for the construction shall be available. (B) The scope of the applicant's services shall be such that an adequate quality of service will be permitted from available funds. The licensing agency shall have the right to verify the availability of these funds.Part 1, Page 39
(14) When there is a change of licensee, the required documentation shall include the information specified in Section 87217(k).Part 1, Page 39
(15) Information concerning insurance carried by the applicant relating to the operation of the facility.Part 1, Page 39
Why & How Licensing Fees Are Charged
87156 / H&S 1569.185 p. 40
87156(a) is a short pointer provision: applicants and licensees are charged fees "as specified in Health and Safety Code 1569.185." That statute (quoted in the handbook) is where the actual fee structure lives:
  • An application fee, scaled by facility capacity, is charged when a license is first issued, and then again annually on each anniversary of the license's effective date.
  • These fees exist specifically to finance the Department's chapter-related licensing activities; they aren't just an arbitrary charge.
The exact dollar amounts, by capacity tier, are the same fee schedule covered in the Numbers & Deadlines "Licensing Fee Schedule" card:
CapacityInitial ApplicationAnnual Fee
1-3$495.60$495.60
4-6$990.00$495.60
7-15$1,486.80$742.80
16-30$1,980.00$990.00
31-49$2,476.80$1,238.40
50-74$2,972.40$1,448.00
75-100$3,469.20$1,734.00
101-150$3,964.80$1,982.40
151-200$4,622.40$2,311.20
201-250$5,280.00$2,640.00
251-300$5,940.00$2,970.00
301-350$6,600.00$3,300.00
351-400$7,260.00$3,630.00
401-500$8,580.00$4,290.00
501-600$9,900.00$4,950.00
601-700$11,220.00$5,610.00
701+$13,200.00$6,600.00
Show Title 22 source text
(a) An applicant or licensee shall be charged fees as specified in Health and Safety Code section 1569.185.Part 1, Page 40
(a)(1) An application fee adjusted by facility and capacity shall be charged by the department for the issuance of a license to operate a residential care facility for the elderly. After initial licensure, a fee shall be charged by the department annually on each anniversary of the effective date of the license. The fees are for the purpose of financing activities specified in this chapter. Fees shall be assessed as follows, subject to paragraph (2): [Fee Schedule table]Part 1, Page 40
Additional Fees Beyond the Base Schedule
87156 / H&S 1569.185(b) p. 41
Beyond the base application/annual fee schedule, the Department also charges additional fees for a few specific situations:
  • Moving the facility to a new physical address: 50% of the normal application fee.
  • A corporate licensee changing who controls the majority of the board of directors: also 50% of the application fee.
  • Attending a Department-sponsored orientation session: a flat $50 per person.
Show Title 22 source text
(b)(1) In addition to fees set forth in subdivision (a), the department shall charge the following fees:Part 1, Page 41
(A) A fee that represents 50 percent of an established application fee when an existing licensee moves the facility to a new physical address.Part 1, Page 41
(B) A fee that represents 50 percent of the established application fee when a corporate licensee changes who has the authority to select a majority of the board of directors.Part 1, Page 41
(D) An orientation fee of fifty dollars ($50) for attendance by any individual at a department-sponsored orientation session.Part 1, Page 41
Annual Fee & Capacity-Change Fee Basis
87156 p. 42
Two more mechanical rules about how fees get calculated:
  • The annual fee tracks the facility's existing licensed capacity, unless the licensee specifically asks for a lower or higher capacity.
  • If a licensee asks to increase or decrease capacity, there's an additional fee for that request too (this is the same $25 capacity-change fee from the Numbers & Deadlines "Related Fees and Penalties" card).
Show Title 22 source text
(b) The annual fee shall be according to existing licensed capacity unless the licensee requests a lower or higher capacity.Part 1, Page 42
(c) An additional fee shall be charged when the licensee requests an increase or decrease in capacity as specified in Health and Safety Code section 1569.185(b)(1)(C).Part 1, Page 42
Application & License Fees Are Nonrefundable
87156 / 87157 p. 43-44
Whatever fee gets paid during the application process, it's not coming back, even if the application is later withdrawn, denied, or the licensing agency stops reviewing it entirely (for example, under the 1-year/2-year cessation-of-review rules covered in the next card).
Show Title 22 source text
(e) The fees shall be nonrefundable.Part 1, Page 43
(3) The application fee shall be non-refundable as specified in Section 87156(e).Part 1, Page 44
What Counts Toward a Facility's Licensed Capacity
87158 p. 44
A facility's license specifies a capacity: the maximum number of residents it can care for at any one time. The licensee's own family members living at the facility don't count toward that number.

That said, the licensing agency still factors in family members (and anyone else living there) when deciding what capacity to approve, to make sure both the licensee's family and the residents end up with a workable living situation, and residents still get adequate care and supervision.
Show Title 22 source text
(a) A license shall be issued for a specific capacity which shall be the maximum number of residents which can be provided care at any given time. The capacity shall be exclusive of any members of the licensee's own family who reside at the facility. However, the licensing agency shall consider the presence of other family members or other persons who reside in the facility in determining capacity in order to ensure and promote proper living arrangements for both the licensee's family and the residents and to ensure the provision of adequate care and supervision for the residents.Part 1, Page 44
Withdrawing a License Application
87159 p. 45
An applicant can withdraw their application at any time. But withdrawing doesn't automatically make the issue go away: unless the licensing agency agrees in writing to the withdrawal, the Department can still pursue (or continue) a denial action against the applicant on any legal ground, or even issue a formal denial order.

Either way, the application processing fee is forfeited.
Show Title 22 source text
(a) The applicant may withdraw an application. However, unless the licensing agency consents in writing to such withdrawal, the Department or licensing agency shall not be deprived of its authority to institute or continue a proceeding against the applicant for the denial of the license upon any ground provided by law or to enter an order denying the license upon any such ground.Part 1, Page 45
(b) The fee for processing the application shall be forfeited.Part 1, Page 45
Reporting a Corporate Organizational Change
87161 p. 46
A corporate structure change, sale/transfer of the majority of stock, spin-off from a parent company, or merger with another company triggers a resubmission-of-application requirement, and it has to be reported to the licensing agency within 48 hours. (Same 48-hour window as the Numbers & Deadlines card of the same name.)
Show Title 22 source text
(5) A corporate organizational change, including, but not limited to, change in structure, sale or transfer of the majority of stock, separating from a parent company, or merger with another company. The licensee shall notify the licensing agency of such organizational change within forty-eight (48) hours.Part 1, Page 46
Provisional Licenses: Requirements & How Long They Last
87162 p. 46-47
A provisional license is a temporary license the agency can issue to an applicant who's submitted a complete initial application, when three conditions are all met: there's no life-safety risk, the facility is in "substantial compliance" with the law, and there's an "immediate need" for licensure (both terms have their own definitions elsewhere in 87101).

There's one hard disqualifier, though: the Department won't issue a provisional license, or any license, to a corporate applicant if any board member, executive director, or officer isn't eligible for licensure.

A provisional license is capped at whichever is smaller: the number of residents covered by the immediate need, or the facility's normal licensed capacity. It can't be renewed, and it ends on its stated expiration date or when the application is denied, whichever comes first. How long it lasts depends on the circumstances:
  • Up to 6 months, if the agency expects full compliance to be reached within that time.
  • Up to 12 months, if the agency decides (at the time of application) that more time is genuinely needed for reasons beyond the applicant's control.
Show Title 22 source text
(a) The licensing agency may issue a provisional license to an applicant who has submitted a completed application for an initial license if the licensing agency determines that there are no life safety risks, that the facility is in substantial compliance, as defined in Section 87101(s)(6), with applicable law and regulations, and an immediate need for licensure exists as defined in Section 87101(i)(3).Part 1, Page 46
(1) A provisional license shall not be issued as specified in Health and Safety Code section 1569.1515(b). Health and Safety Code section 1569.1515(b) provides: "(b) The department shall not issue a provisional license or license to any corporate applicant that has a member of the board of directors, the executive director, or an officer who is not eligible for licensure pursuant to sections 1569.16 and 1569.59."Part 1, Page 46
(b) The capacity of a provisional license shall be limited to the number of residents for whom immediate need has been established, or the capacity established for the specific facility, whichever is less.Part 1, Page 46
(c) A provisional license shall not be renewable and shall terminate on the date specified on the license, or upon denial of the application, whichever is earlier.Part 1, Page 46
(1) A provisional license may be issued for a maximum of six (6) months when the licensing agency determines that full compliance with licensing regulations will be achieved within that time period.Part 1, Page 46
(2) A provisional license may be issued for a maximum of twelve (12) months when the licensing agency determines, at the time of application, that more than six (6) months is required to achieve full compliance with licensing regulations due to circumstances beyond the control of the applicant.Part 1, Page 47
Grounds for Denying an Initial License Application
87163 p. 47
The licensing agency has to deny an initial license application if the applicant isn't in compliance with the applicable laws and regulations, unless the provisional-license exception (substantial compliance + immediate need) applies instead.

Beyond that baseline, the agency also has the authority (not a requirement) to deny an application when:
  • The applicant hasn't paid civil penalties owed under 87768 (Unlicensed Facility Penalties), following a final court judgment, unless acceptable payment arrangements have been made, or
  • The applicant doesn't comply with specific application requirements (87155(a)(2) and (9): administrator certification and maximum capacity info) or the corporate-eligibility and background-check statutes in Health and Safety Code 1569.1515(b) and 1569.50.
Show Title 22 source text
(a) Except as specified in Section 87162(a), which provides that the applicant may be issued a provisional license based upon substantial compliance and immediate need, the licensing agency shall deny an application for an initial license if it is determined that the applicant is not in compliance with applicable law and regulations.Part 1, Page 47
(b) The licensing agency shall have the authority to deny an application for an initial license if the applicant has failed to pay any civil penalty assessments pursuant to Section 87768, Unlicensed Facility Penalties, and in accordance with a final judgment issued by a court of competent jurisdiction, unless payment arrangements acceptable to the licensing agency have been made.Part 1, Page 47
(c) The licensing agency shall have the authority to deny an initial application if the applicant does not comply with Sections 87155(a)(2) and (9), and Health and Safety Code sections 1569.1515(b) and 1569.50.Part 1, Page 47
What Happens When an Initial Application Is Denied
87163 p. 48
If an initial license application is denied, the application processing fee is forfeited (it was already nonrefundable, but this confirms denial doesn't change that).

The licensing agency also has to send a written denial notice by certified mail, and that notice has to actually explain the denial: it must state that the application was denied, set forth the specific reasons why, and advise the applicant of their right to appeal.
Show Title 22 source text
(d) If the application for an initial license is denied, the application processing fee shall be forfeited.Part 1, Page 48
(e) If the application for an initial license is denied, the licensing agency shall send a written notice of denial by certified mail. The notification shall inform the applicant of the denial; set forth the reasons for the denial; and advise the applicant of the right to appeal.Part 1, Page 48
Appealing a Denial (and the One Case Where Appeal Rights Are Cut Off)
87163 / H&S 1569.50(d) p. 49
If an initial license application is denied, the applicant generally has 15 days from the postmark date on the denial notice to file a written appeal. (Same 15-day window as the Numbers & Deadlines "Appealing a License Denial" card.)

There's one hard exception, though: if a licensee abandoned the facility and its residents in a way that created an immediate, substantial threat to those residents' health and safety, that's not just grounds for revocation: the licensee is permanently excluded from ever holding an RCFE license again, with no right to petition for reinstatement.
Show Title 22 source text
(f) Except as otherwise specified by Health and Safety Code section 1569.50(d), an applicant may appeal the denial of the application by sending a written notice of appeal to the licensing agency within 15 days of the postmark date of the denial notice.Part 1, Page 49
(d) A licensee who abandons the facility and the residents in care resulting in an immediate and substantial threat to the health and safety of the abandoned residents, in addition to revocation of the license pursuant to this section, shall be excluded from licensure in facilities licensed by the department without the right to petition for reinstatement.Part 1, Page 49

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