Cal. Code Regs. Tit. 22, § 76931 - Safeguards for Client's Monies and Valuables
(a) Each facility to which a client's money
or valuables have been entrusted shall comply with the following:
(1) No licensee shall mingle clients' monies
or valuables with that of the licensee or the facility. Clients' monies and
valuables shall be maintained separately and intact and free from any liability
that the licensee incurs in the use of the licensee's or the facility's funds
and valuables. The provisions of this section shall not be interpreted to
preclude prosecution for the fraudulent appropriation of clients' monies or
valuables as theft, as defined by Section
484 of the
Penal Code.
(2) Each licensee shall
maintain adequate safeguards and accurate records of clients' monies and
valuables entrusted to the licensee's care, including the maintenance of a
detailed inventory.
(A) Records of clients'
monies which are maintained as a drawing account shall include a control
account for all receipts and expenditures, supporting vouchers and receipts for
all expenditures of monies and valuables entrusted to the licensee, and an
account for each client and supporting vouchers filed in chronological order.
Each account shall be kept current with columns for debits, credits and
balance. All of these records shall be maintained at the facility for a minimum
of three years from the date of transaction. At no time may the balance in a
client's drawing account be less than zero.
(B) Records of clients' monies and other
valuables entrusted to the licensee for safekeeping shall include a copy of the
receipt furnished to the client or to the client's authorized
representative.
(3)
Clients' monies shall be kept within the facility in a fireproof safe or
deposited in a noninterest bearing demand trust account in a local bank
authorized to do business in California, the deposits of which are insured by
the Federal Deposit Insurance Corporation or in a federally insured bank or
savings and loan association under a plan approved by the Department. All
banking records related to these funds, including but not limited to deposit
slips, checks, canceled checks, statements and check registers, shall be
maintained in the facility for a minimum of three years from the date of
transaction. Identification as a client trust fund account shall be clearly
printed on each client's trust account checks and bank statements.
(4) A separate list shall be maintained for
all checks from client accounts which were returned uncashed to the account
within the preceding three years.
(5) Expenditures from a client's account
shall only be for the immediate benefit of that particular client. No more than
one month's advance payment for care may be received from a client's
account.
(6) A person, firm,
partnership, association or corporation which is licensed to operate more than
one health facility shall maintain a separate demand trust account as specified
in (3) above for each facility. Records relating to these accounts shall be
maintained at each facility as specified in (2) above. Client funds shall not
be commingled from one facility with another.
(7) Upon discharge of a client, all money and
valuables of that client which have been entrusted to the licensee shall be
surrendered to the client or authorized representative in exchange for a signed
receipt. Money and valuables kept within the facility shall be surrendered upon
discharge and those kept in a demand trust account shall be made available
within three banking days. Upon discharge, the client or authorized
representative shall be given a detailed list of the client's valuables as
required by Section
76927(e)(20) and
a current copy of the debits and credits of the client's monies.
(8) Within 30 days following the death of a
client, except in a coroner or medical examiners case, all money and valuables
of that client which have been entrusted to the licensee shall be surrendered
to the executor, the administrator or guardian of the client's estate in
exchange for a signed receipt, or to any person or that person's authorized
representative having the right by law to succeed to the descendent's property,
upon presentation of a statement signed under penalty of perjury declaring such
person's right to receive the property. Whenever a client without known heirs
dies, immediate written notice shall be given by the facility to the public
administrator of the county as specified by Section
1145 of the
California Probate Code and a copy of the notice shall be filed with the
Department.
(9) Upon a change of
ownership of a facility, an audit by a public accountant of all client's
monies, which are being transferred to the custody of the new owners shall be
obtained by the new owner in exchange for a signed receipt.
(10) Upon closure of a facility, an audit by
a public accountant of all client's monies shall be submitted to the Department
and all client's monies shall be transferred with the client.
(11) The facility shall have written policies
and procedures that protect the financial interest of clients and shall provide
for counseling in management of their funds.
Notes
Note: Authority cited: Sections 208.4 and 1267.7, Health and Safety Code. Reference: Section 1276, Health and Safety Code.
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