Assembly Bill 1502 was drafted after a California nursing home operator was able to run 18 facilities while his license applications were in pending status, and his companies ran five other homes even after his licenses were denied.
However, one of the bill’s original sponsors, California Advocates for Nursing Home Reform, said the bill’s amended language creates a new loophole.
The bill Mr. Newsom signed focuses only on background checks for applications without looking deeper into the associated persons or entities. Tony Chicotel, staff attorney for CANHR, said some individuals file each new application under a unique LLC, and the new law could allow officials to approve applications regardless of the track record of the individual behind the entity, he told KPBS.
The governor did not comment on his decision, according to KPBS.
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