The California Department of Public Health has issued an All Facilities Letter (AFL) implementing Assembly Bill (AB) 1128, which exempts facilities that exclusively serve Program of All-Inclusive Care for the Elderly (PACE) participants or those being assessed for PACE eligibility from licensure. Effective January 1, 2021, the Department of Health Care Services (DHCS) will be solely responsible for regulating license-exempt PACE facilities. License-exempt PACE facilities must maintain compliance with Health and Safety Code operating standards and cooperate with DHCS oversight and monitoring. Facilities that provide care to both PACE and non-PACE participants will remain under the regulatory oversight of CDPH. Facilities currently licensed by CDPH and determined to be exempt from licensure due to operating exclusively as part of a PACE organization will need to surrender their license to CDPH. Intermittent and affiliate clinics must have a licensed parent facility. For questions concerning exemption from licensure for PACE facilities, contact the appropriate local CDPH Licensing and Certification district office or the DHCS Integrated Systems of Care Division's PACE Unit.

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