CA AB1502

Requires persons and entities to obtain a license from the State Department of Public Health before acquiring, operating, establishing, managing, or maintaining a freestanding skilled nursing facility, effective July 1, 2023.

Mandates applicants submit comprehensive applications 120 calendar days prior to facility acquisition or operation, including ownership information, financial capacity evidence for 90-day operation, compliance histories, and chain ownership diagrams if applicable.

Establishes automatic disqualifications for licensure including prior termination from Medicare/Medicaid, exclusion from federal programs, two or more serious citations involving resident deaths within 24 months, ownership of 10 percent or more of state's licensed skilled nursing facilities, or felony convictions related to facility services.

Authorizes the department to impose civil penalties of $500-$2,000 per violation for unauthorized operation, assess $10,000 penalties for material violations post-licensure, and deny applications or revoke licenses for false statements, withheld information, or failure to establish reputability and responsibility.

Requires applicants to report any changes in application information within 10 calendar days and prohibits facility transfers until department approval; denies applicants have 20 days to appeal denial decisions through administrative hearing.