Health and Safety (HSC) Code §1417.2 provides authority to deposit moneys collected as a result of state and federal civil penalties imposed against health facilities for non compliance with state and federal laws into two accounts established within the Special Deposit Fund: the State Health Facilities Citation Penalties Account (Fund 0942-601) and the Federal Health Facilities Citation Penalties Account (Fund 0942-605). Moneys from these accounts shall be used, upon appropriation by the Legislature, in accordance with state and federal law for the protection of health or property of residents of long-term health care facilities, including, but not limited to the following:
There is a $10 million cap on the allowable fund balance for the state account. There is no cap on the fund balance for the federal account.
Additionally, moneys from the Federal Health Facilities Citation Penalties Account, in an amount not to exceed $130,000 and upon appropriation by the Legislature, may be used for the improvement of quality of care and quality of life for long-term health care facilities residents for the following activities:
The California Department of Public Health (CDPH), Licensing and Certification (L&C) Program is authorized (not required) by HSC §1327 (2) and §1417.2 and by §488.442(g) of the Code of Federal Regulations, Title 42, Chapter IV, to fund Temporary Managers/Receiverships. The sources of funding for these activities are the State Health Facilities Citation Penalties Account and the Federal Health Facilities Citation Penalties Account.
Annual Budget Act appropriations from both the state and federal accounts are provided to the CDPH, L&C for all of the purposes identified above. CDPH uses the funds primarily for temporary management appointments. The Department of Aging receives an annual Budget Act appropriation from the federal account for its Ombudsman Program.
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