Practice Exam Actual Exam 2026/2027 with
Detailed Rationales | Complete Exam-Style
Questions | Pass Guaranteed – A+ Graded
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SECTION 1: LICENSING REQUIREMENTS & FACILITY CLASSIFICATION Q1 – Q10
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Question 1 of 50
A prospective buyer wants to purchase an existing 24-bed RCFE and keep operating under the
current license during the ownership transition. The seller assures the buyer that the license
can remain active for 90 days after the sale while the new application is processed.
A. Submit a Change of Ownership application to CDSS to transfer the existing license to the
new owner.
B. Apply for a provisional license that allows the seller to remain as administrator for 90 days
post-sale.
C. Submit a new license application because RCFE licenses are non-transferable and tied to
the specific licensee. ✓ CORRECT
D. Request an Emergency Approval to Operate while the new license application is processed
by the Department.
Correct Answer: C
Rationale: Under Title 22, Section 87109, an RCFE facility license is issued to a specific
person or entity and cannot be transferred, sold, or assigned to another party, meaning a new
owner must submit a fresh application. Option A is incorrect because CDSS does not
recognize license transfers, and attempting to operate under a seller's license constitutes
unlicensed activity. A new applicant should plan for the full licensing timeline rather than
assuming operational continuity.
Question 2 of 50
A 32-bed RCFE administrator wants to add a temporary respite bed for a family member
during the winter holidays and asks the Department if this exceeds the facility's authorized
limits. The facility is currently at full licensed capacity.
,A. Capacity is the maximum number of persons authorized to receive services at any one
time, and adding even one bed beyond the licensed number violates Section 87101. ✓
CORRECT
B. Capacity refers only to permanent residents, so temporary guests and respite beds do not
count toward the licensed maximum.
C. The facility may exceed its licensed capacity by up to two beds for periods not exceeding
30 days with prior DSS notification.
D. Capacity is calculated based on available square footage per resident, so rearranging
furniture can legally increase the licensed number.
Correct Answer: A
Rationale: Title 22, Section 87101 defines capacity as the maximum number of persons
authorized to be provided services at any one time, making any bed addition beyond the
licensed number a violation. Option B represents a common misconception because the
regulation does not distinguish between permanent and temporary residents when counting
capacity. Administrators must remember that respite care requires either a vacancy or a
separate licensed bed.
Question 3 of 50
A new applicant receives Emergency Approval to Operate after a fire damaged a nearby
facility and displaced elderly residents who need immediate placement. The applicant asks
how long the EAO remains valid while completing the full licensing process.
A. The EAO remains valid for 90 days and may be extended once for an additional 90 days if
the applicant demonstrates good cause.
B. An Emergency Approval to Operate is temporary and cannot exceed 60 days from the date
of issuance by the Department. ✓ CORRECT
C. The EAO expires after 30 days but can be renewed indefinitely provided the facility
maintains full compliance with all Title 22 standards.
D. The approval is valid for 120 days and automatically converts to a provisional license if no
violations are cited during the initial inspection.
Correct Answer: B
Rationale: Emergency Approval to Operate under Title 22 is strictly temporary and may not
exceed 60 days, giving the applicant a narrow window to complete full licensing
requirements. Option A is incorrect because EAOs are not extendable to 90 days, and
administrators who rely on extensions risk operating without valid licensure. New operators
should use the 60-day period to finalize all outstanding fire safety, health, and administrative
clearances.
Question 4 of 50
, A prospective licensee is preparing the financial plan for a new 20-bed RCFE and asks how
much operating capital must be demonstrated to satisfy CDSS requirements.
A. The financial plan must show liquid assets covering at least one month of projected
operating expenses plus resident security deposits.
B. Applicants must demonstrate credit lines or cash reserves equal to six months of
operating costs to ensure long-term facility stability.
C. Start-up funds are determined by the local licensing analyst based on regional cost
variations and facility size.
D. The financial plan must include start-up funds sufficient to cover a minimum of three
months of operating costs per Section 87155. ✓ CORRECT
Correct Answer: D
Rationale: Title 22, Section 87155 requires the financial plan to include start-up funds for a
minimum of three months of operating costs, ensuring the facility can sustain initial
operations without resident revenue dependency. Option A understates the requirement and
would result in an incomplete application that CDSS would reject during the initial review.
Prospective administrators should prepare detailed budgets showing three full months of
staffing, food, utilities, and insurance costs.
Question 5 of 50
A 16-bed facility is being inspected by a CDSS licensing analyst who notes several posting
and recordkeeping deficiencies. The administrator is unsure which requirements apply
specifically at the 16-bed threshold.
A. The facility must post a copy of the resident rights notice in the administrator's office only,
not in common areas.
B. Weekly employee schedules must be maintained but only need to be retained for 7 days
after the schedule period ends.
C. Menus must be prepared at least one week in advance, posted, and kept on file for 30 days;
a dated weekly employee schedule must also be maintained. ✓ CORRECT
D. A separate laundry space is only required when the facility exceeds 25 beds, so a 16-bed
facility may use resident bathrooms for laundry.
Correct Answer: C
Rationale: For facilities with 16 or more beds, Title 22 requires menus prepared at least one
week in advance, posted for residents, and retained for 30 days, along with dated weekly
employee schedules. Option A is incorrect because resident rights must be posted in
conspicuous areas accessible to residents and visitors, not hidden in administrative offices.
The 16-bed threshold triggers multiple operational requirements that administrators
frequently confuse with the 7-bed or 50-bed standards.
Question 6 of 50