On Friday, September 20, 2024, Governor Gavin Newsom signed Senate Bill 1406, impacting assisted living residents’ rights in California. This bill modifies the Health and Safety Code by increasing the notice period that Residential Care Facilities for the Elderly (RCFEs) must provide to residents before increasing rates. It also codifies a resident’s right to request, refuse, or discontinue services.

90-Day Notice of Rate Increases

Currently, Health and Safety Code Section 1569.655 requires RCFEs to provide a minimum of 60 days’ advance written notice to all residents or their representatives of the amount of a rate increase, the reason for the increase, and the general description of additional costs. Effective January 1, 2025, this notice period increases to 90 days. As under current law, this advance notice requirement does not apply to rate increases due to a change in the level of care of the resident. Current law does not require advance notice of rate increases for optional services that are provided by individuals, professionals, or organizations under a separate fee-for-service arrangement with residents. SB 1406 removes this exemption.

RCFEs should ensure that starting January 1, 2025, they provide residents and their representatives 90 days’ advance written notice before implementing any rate increase or change to rate structure – for both basic and optional services.

Codification of Residents’ Right to Request, Refuse, or Discontinue Services

SB 1406 also codifies a resident’s right to affirmatively request, refuse, or discontinue a service. Residents already have the right to receive or reject services under RCFE regulation. Because this right is already recognized, articulating it in statute is unlikely to impact the day-to-day operation of RCFEs.