Key Concepts: License

16 key concepts from Title 22, Division 6, Chapter 8, Article 2: License, for the RCFE Administrator exam. For the searchable, bookmarkable version, use the interactive Study Guide.

Who Needs a License
87105 p. 25
Anyone (an individual or a legal entity) who provides, or intends to provide, care and supervision to elderly people in a residential setting must hold a current, valid RCFE license.

There's a narrow "aging in place" exception: an adult residential facility doesn't have to relocate a resident just because they turn 60, or switch to a different license category, as long as the resident's needs still fit in with the other residents and the licensing agency has approved an exception request.
Show Title 22 source text
(a) Pursuant to Health and Safety Code, Section 1569.10, any individual or legal entity providing or intending to provide care and supervision to the elderly in a residential facility shall obtain a current valid license pursuant to the provisions of this chapter. This shall not require an adult residential facility to relocate a resident who becomes 60, nor to change licensing category, provided that the resident's needs remain compatible with those of other residents, and the licensing agency has approved an exception request.Part 1, Page 25
What Happens When a Facility Operates Without a License
87106 p. 25-26
Operating an RCFE without a license (unless the facility qualifies for an exemption under 87107(a)) violates Health and Safety Code 1569.10, 1569.44, and/or 1569.45.

If the licensing agency receives a complaint alleging unlicensed operation, it has to investigate under Health and Safety Code 1569.35. Unless the complaint looks like it's meant to harass the licensee or has no reasonable basis, the agency must complete an onsite inspection within 10 days of receiving the complaint. (This is the same 10-day complaint-response window covered in the Numbers & Deadlines "How Often Facilities Get Inspected" card; here it's specifically the trigger for an unlicensed-operation complaint.)

If the facility really is operating without a license, the agency issues a Notice of Operation in Violation of Law, refers the case for criminal and/or civil prosecution, and assesses an immediate civil penalty under 87768, and the agency can apply those two consequences in whatever combination it decides is appropriate.
Show Title 22 source text
(a) An unlicensed facility as defined in Section 87101(u)(2) is in violation of section 1569.10, 1569.44, and/or 1569.45 of the Health and Safety Code unless the facility is exempted from licensure under Section 87107(a).Part 1, Page 25
(b) If the facility is alleged to be in violation of section 1569.10 and/or 1569.44 and/or 1569.45 of the Health and Safety Code, the licensing agency shall conduct a site visit and/or evaluation of the facility pursuant to Health and Safety Code section 1569.35.Part 1, Page 25
Health and Safety Code section 1569.35(c) provides in part: "Upon receipt of a complaint, other than a complaint alleging denial of a statutory right of access to a residential care facility for the elderly, the department shall make a preliminary review and, unless the department determines that the complaint is willfully intended to harass a licensee or is without any reasonable basis, it shall make an onsite inspection within 10 days after receiving the complaint.... In either event, the complainant shall be promptly informed of the department's proposed course of action."Part 1, Page 25
(c) If the facility is operating without a license, the licensing agency shall issue a Notice of Operation in Violation of Law, and shall refer the case for criminal prosecution and/or civil proceedings. (d) The licensing agency shall issue an immediate civil penalty pursuant to Section 87768, Unlicensed Facility Penalties and Health and Safety Code section 1569.485.Part 1, Page 25
(e) Sections 87106(c) and (d) shall be applied in any combination deemed appropriate by the licensing agency.Part 1, Page 26
Notifying the Ombudsman or APS About an Unlicensed Facility
87106 p. 26
On top of issuing a Notice of Operation in Violation of Law, the licensing agency must also notify the appropriate local or state Ombudsman, placement agency, or Adult Protective Services if either of these is true:
  • There's an immediate threat to residents' health and safety, or
  • The facility hasn't submitted a license application within 15 calendar days of being served the Notice of Operation in Violation of Law.
(Same 15-day window as the "Operating Without a License" card in Numbers & Deadlines: there it's the trigger for escalating the civil penalty; here it's the trigger for looping in outside agencies.)
Show Title 22 source text
(f) The licensing agency shall notify the appropriate local or state Ombudsman, placement, or adult protective service agency if either of the following conditions exist: (1) There is an immediate threat to the residents' health and safety. (2) The facility does not submit an application for licensure within 15 calendar days of being served a Notice of Operation in Violation of Law.Part 1, Page 26
License Is Not Transferable
87109 p. 29
An RCFE license is tied to the specific licensee; it can never simply be handed off to someone else.

So if a licensee wants to sell the facility, they have to give written notice to the licensing agency and to every resident (or their representative) at least 30 days before the transfer happens, or when a bona fide offer is made, whichever gives more notice. (The detailed legal process for how that sale actually has to work is covered in the next card, from Health and Safety Code 1569.191.)
Show Title 22 source text
(a) The license shall not be transferable.Part 1, Page 29
(b) The licensee shall notify the licensing agency and all residents receiving services, or their representatives, in writing as soon as possible and in all cases at least thirty (30) days prior to the transfer of the property or business, or at the time that a bona fide offer is made, whichever period is longer, as specified in Health and Safety Code Section 1569.191.Part 1, Page 29
Other License Changes (Not a Sale)
87109 p. 30
Beyond a straight sale, any other change (a change in licensee, license type, or facility location) still requires the same 30-day advance written notice to the licensing agency and to residents (or their representatives).

And whenever there's a change of ownership or licensee, the new prospective licensee has to submit a brand-new license application; the existing license doesn't just carry over to them.
Show Title 22 source text
(c) In all other instances, including a change in licensee, type of license, or location of the facility, the licensee shall notify the licensing agency and all residents receiving services, or their responsible persons, in writing as soon as possible and in all cases at least thirty (30) days prior to the effective date of that change.Part 1, Page 30
(d) In the case of change of ownership or licensee a new application for license shall be submitted by the prospective new licensee.Part 1, Page 30
Emergency Relocation After Facility Destruction
87111 p. 31
If a facility is accidentally destroyed, or hits similar emergency conditions, the licensing agency can let the existing license continue at a new location for a reasonable period of time, as long as the new location meets building, fire, and life-safety standards. This spares the licensee from having to go through an entirely new licensing process just because of an emergency relocation.
Show Title 22 source text
(a) The licensing agency may consent to a change of location and continuation of the existing license of any facility for a reasonable period of time when the change is requested because of the accidental destruction of the licensed premises or similar emergency conditions, so long as the new location or place of performance conforms to building, fire and life safety standards.Part 1, Page 31
Designee's Immediate Duties When the Licensee Dies
87111 p. 31
If the licensee dies, the adult they designated in advance to keep the facility running has two immediate reporting duties: notify the Department by the next working day of the death, and if they later decide not to apply for their own license, tell the Department within 5 working days of that decision. (Same notification windows as the Numbers & Deadlines "If the Licensee Dies" card.)
Show Title 22 source text
(1) notify the Department by the next working day of the licensee's death;Part 1, Page 31
(2) inform the Department within 5 working days if the designee decides not to apply for licensure.Part 1, Page 31
Requirements for an Emergency Approval to Operate (EAO)
87111 p. 31
To keep a facility running after the licensee's death while a new license application is pending, the designee can get an Emergency Approval to Operate (EAO), good for up to 60 days. Getting one requires meeting several conditions under Health and Safety Code 1569.193, including:
  • Notifying the Department the next working day after the death that they intend to keep operating, and
  • Filing a license application (with proof of the licensee's death) within 20 calendar days of the death.
(Same 20-day window as the Numbers & Deadlines "If the Licensee Dies" card.)
Show Title 22 source text
(c) The Department may permit a designee to continue operation of a previously licensed facility, and grant an Emergency Approval to Operate (EAO) to a facility for up to 60 days pending issuance or denial of a license, provided the following requirements of Health and Safety Code section 1569.193 are met:Part 1, Page 31
(1) The designee notifies the Department during the next working day following the death of the licensee, that he/she will continue to operate the facility.Part 1, Page 31
(4) The designee files an application for licensure, and provides a copy of the licensee's death certificate, obituary notice, certification of death from the decedent's mortuary, or a letter from the attending physician or coroner's office verifying the death of the licensee, within 20 calendar days of the licensee's death.Part 1, Page 31
Department's 60-Day Decision on the EAO Application
87111 p. 32
Once the designee's license application is complete, the Department has 60 days to decide whether to actually issue the license.
Show Title 22 source text
(d) The Department shall determine, within 60 days, after receipt of the completed application, whether a license will be issued.Part 1, Page 32
What Counts as a "Bona Fide Offer"
87111 / H&S 1569.191 p. 33
A "bona fide offer" (the kind of offer that starts the 30-day sale-notice clock under Health and Safety Code 1569.191(a)(1)) has a specific legal meaning: it has to be a proposal from the buyer with definite terms, put in writing, communicated to the seller, and backed by a cash deposit. A vague verbal interest, or an offer with no deposit, doesn't count.

And once that required notice has actually gone out, the sale still can't close until 30 days have passed from when it was sent. (Same 30-day rule as the "Legal Process for Selling a Facility" card; here it's the version of that rule quoted inside 87111, for the emergency/EAO context.)
Show Title 22 source text
(g) "A bona-fide offer", as specified in Health and Safety Code section 1569.191(a)(1), shall mean a proposal by the buyer to purchase the facility with definite terms in writing communicated to the seller and accompanied by a cash deposit.Part 1, Page 33
(c) No sale of the facility shall be permitted until 30 days have elapsed from the date upon which notice has been provided pursuant to paragraphs (1) and (2) of subdivision (a).Part 1, Page 33
When a License Is Automatically Forfeited
H&S 1569.19 p. 34
An RCFE license doesn't just stay in effect indefinitely; it's automatically forfeited by operation of law (no hearing required) the moment any of these happen:
  • The licensee sells or transfers the facility or its property (unless it's just a minority stock transfer within a corporation)
  • The licensee voluntarily surrenders the license to the Department
  • The licensee moves the facility to a new location
  • The licensee is convicted of certain serious crimes (specific child abuse, sex offense, and corporal injury crimes, or other crimes listed under Penal Code 667.5(c))
  • The licensee dies (continued operation is then governed by the emergency/EAO rules in 87111, covered above)
  • The licensee abandons the facility (see the next card for exactly what that means)
Show Title 22 source text
A license shall be forfeited by operation of law prior to its expiration date when one of the following occurs: (a) The licensee sells or otherwise transfers the facility or facility property, except when change of ownership applies to transferring of stock when the facility is owned by a corporation, and when the transfer of stock does not constitute a majority change in ownership. The sale of a facility shall be subject to the requirements of this chapter. (b) The licensee surrenders the license to the department. (c) The licensee moves the facility from one location to another. The department shall develop regulations to ensure that the facilities are not charged a full licensing fee and do not have to complete the entire application process when applying for a license for the new location. (d) The licensee is convicted of an offense specified in Section 220, 243.4, or 264.1, or paragraph (1) of Section 273a, Section 273d, 288, or 289 of the Penal Code, or is convicted of another crime specified in subdivision (c) of Section 667.5 of the Penal Code. (e) The licensee dies. When a licensee dies, the continued operation shall be subject to the requirements of Section 1569.193. (f) The licensee abandons the facility.Part 1, Page 34
What Counts as "Abandoning" a Facility
87112 p. 34-35
"Abandoning the facility" (one of the automatic forfeiture triggers above) has two possible meanings:
  • The licensee directly tells the licensing agency that they no longer accept responsibility for the facility, or
  • The licensing agency simply can't locate the licensee, after: asking facility staff if they know the licensee's whereabouts, calling the licensee's last known phone number once a day for 5 consecutive workdays with no answer, and sending a certified letter to their last known mailing address that goes unanswered for 7 calendar days.
(Same 5-day and 7-day windows as the Numbers & Deadlines "Declaring a Facility 'Abandoned'" card; this card is the full definition they come from.)
Show Title 22 source text
(1) "Licensee abandons the facility" shall mean either of the following: (A) The licensee informs the licensing agency that the licensee no longer accepts responsibility for the facility, or (B) The licensing agency is unable to determine the licensee's whereabouts after the following: 1. The licensing agency requests information of the licensee's whereabouts from the facility's staff if any staff can be contacted; andPart 1, Page 34
2. The licensing agency has made at least one (1) phone call per day, to the licensee's last telephone number of record, for five (5) consecutive workdays with no response; and 3. The licensing agency has sent a certified letter, requesting the licensee to contact the licensing agency, to the licensee's last mailing address of record with no response within seven (7) calendar days.Part 1, Page 35
Posting the License & Keeping Your Contact Info Current
87113 / 87114 p. 35
Two simple, ongoing compliance duties for every licensee:
  • The license itself has to be posted somewhere prominent in the facility, where the public can see it.
  • The applicant/licensee has to keep their mailing address on file with the licensing agency, and report any change in writing within 10 calendar days. (Same 10-day window as the Numbers & Deadlines "Reporting an Address Change" card.)
Show Title 22 source text
87113 POSTING OF LICENSE: The license shall be posted in a prominent location in the licensed facility accessible to public view.Part 1, Page 35
87114 APPLICANT OR LICENSEE MAILING ADDRESS: The applicant or licensee shall file his/her mailing address, in writing, with the licensing agency and shall notify the agency, in writing, of any change within 10 calendar days.Part 1, Page 35
Nondiscrimination in Licensing and Admission
87118 p. 35
Two separate nondiscrimination protections:
  • Anyone can apply for an RCFE license regardless of age, sex, race, religion, color, political affiliation, national origin, disability, marital status, actual or perceived sexual orientation, or ancestry.
  • Once licensed, a facility has to accept and treat residents equally, without regard to race, color, religion, national origin, actual or perceived sexual orientation, or ancestry.
Show Title 22 source text
(a) Any adult shall be permitted to apply for a license regardless of age, sex, race, religion, color, political affiliation, national origin, disability, marital status, actual or perceived sexual orientation, or ancestry.Part 1, Page 35
(b) All licensed facilities shall receive persons on a nondiscriminatory basis according equal treatment and services without regard to race, color, religion, national origin, actual or perceived sexual orientation or ancestry.Part 1, Page 35
Exception for Religious, Fraternal, or Charitable Organizations
87118 p. 36
There's a narrow exception to the nondiscrimination rule above: a genuine nonprofit religious, fraternal, or charitable organization (one that can show the Department its real purpose isn't just to dodge the nondiscrimination requirement) is allowed to:
  • Set membership-based admission policies that favor its own members or adherents (as long as membership in the organization itself is open on a nondiscriminatory basis), but
  • It still has to follow the regular nondiscrimination rules for anyone it admits who isn't a member.
Show Title 22 source text
(c) An exception shall be made in the case of any bona fide nonprofit religious, fraternal or charitable organization which can demonstrate to the satisfaction of the Department or the licensing agency that its primary or substantial purpose is not to evade this section. (1) It may establish reception policies limiting or giving preference to its own members or adherents, provided, however, such membership is nondiscriminatory and such policies shall not be construed as a violation of this section. (2) Any reception of nonmembers or nonadherents shall be subject to the requirements of this section.Part 1, Page 36

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