California Code of Regulations › Title 9 - Rehabilitative and Developmental Services › Division 1 - Department of Mental Health › Chapter 3.5 - Mental Health Rehabilitation Centers › Article 4 - General Requirements › Section 784.32 - Safeguards for Clients' Monies and Valuables

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Each mental
				  health rehabilitation center to whom a clients' monies or valuables have been
				  entrusted shall comply with the following:
(1) No
				  licensee shall commingle clients' monies or valuables with that of the licensee or
				  the mental health rehabilitation center. Clients' monies and valuables shall be
				  maintained separately, intact and free from any liability that the licensee incurs
				  in the use of the licensee's or the mental health rehabilitation center's funds. 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
				  safeguards and accurate records of clients' monies and valuables entrusted to the
				  licensee's care including the maintenance of a detailed inventory and at least a
				  quarterly accounting of financial transactions made on clients' behalf.
(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, 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 mental health rehabilitation center 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. Each item of client property entrusted to the licensee shall be
				  clearly identified as belonging to that client.
(3) Clients' monies not kept in the mental health
				  rehabilitation center shall be deposited in a demand trust account in a local bank
				  authorized to do business in California, the deposits 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. If a facility is operated
				  by a county, such funds may be deposited with the county treasurer. All banking
				  records related to these funds, including but not limited to deposit slips, checks,
				  cancelled checks, statements and check registers, shall be maintained in the mental
				  health rehabilitation center 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 funds which are, or have been, outstanding for 45 days or more as
				  reflected on the most recent bank statement. Bank statements shall be reconciled
				  monthly with copies of the reconciliation maintained by the mental health
				  rehabilitation center. Any checks on such accounts written off or uncashed shall
				  result in an addition to the appropriate client's account.
(5) Expenditures, for a particular client, from
				  the client fund account as specified in (3) above may not exceed the drawing right
				  that the client has in the account. Expenditures from the client fund 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 mental health rehabilitation
				  center shall maintain a separate demand trust account as specified in (3) above for
				  each such mental health rehabilitation center. Records relating to these accounts
				  shall be maintained at each mental health rehabilitation center as specified in (2)
				  above. Client funds from one mental health rehabilitation center shall not be
				  mingled with funds from another mental health rehabilitation center.
(7) When the amount of clients' money entrusted to
				  a licensee exceeds $500, all money in excess of $500 shall be deposited in a demand
				  trust account as specified in (3) above unless the licensee provides a fireproof
				  safe and the licensee desires the protection accorded by Section
				  1860 of the Civil
				  Code.
(8) Upon discharge of the client,
				  all money and valuables of that client which have been entrusted to the licensee and
				  kept within the mental health rehabilitation center shall be surrendered to the
				  client or authorized representative in exchange for a signed receipt. Monies in a
				  demand trust account or with the county treasurer shall be surrendered to the client
				  or authorized representative in exchange for a signed receipt. Monies in a demand
				  trust account or with the county treasurer shall be made available within three (3)
				  normal banking days. Upon discharge, the client or authorized representative shall
				  be given a detailed list of personal property and a current copy of the debits and
				  credits of the client's monies.
(9)
				  Within 30 days following the death of a client, except in a coroner or medical
				  examiner case, all money and valuables of that client which have been entrusted to
				  the licensee shall be surrendered to the person responsible for the client or to the
				  executor or the administrator of the estate in exchange for a signed receipt.
				  Whenever a client without known heirs dies, immediate notice, shall be given by the
				  facility to the public administrator of the county as specified by Section
				  7600.5 of the
				  California Probate Code and documentation of this notice shall be available in the
				  mental health rehabilitation center for review by the Department.
(10) Upon change of ownership of a mental health
				  rehabilitation center, there shall be a written verification by a certified public
				  accountant of all clients' monies which are being transferred to the custody of the
				  owner(s). A signed receipt for the amount of funds in the client's trust account
				  shall be given by the new owner to the previous owner.
(11) Upon closure of a mental health
				  rehabilitation center, a written verification by a public accountant of all clients'
				  funds shall be available for review by the Department. Each client's funds shall be
				  transferred with the client.