BILL NUMBER: AB 1044INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Jones FEBRUARY 27, 2009 An act relating to continuing care retirement communities. LEGISLATIVE COUNSEL'S DIGEST AB 1044, as introduced, Jones. Continuing care retirement communities. Existing law generally regulates continuing care retirement communities, as defined. This bill would state that it is the intent of the Legislature to transfer regulatory responsibility for continuing care retirement communities from the Department of Social Services to the Department of Insurance. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature hereby finds and declares the following: (a) California is home to nearly four million people over 65 years of age; the largest older adult population in the nation. This number is expected to more than double over the next several decades as the baby boomers begin reaching this milestone. (b) Continuing care retirement communities are an alternative for the long-term residential, social, and health care needs of California's elderly residents and seek to provide a continuum of care, minimize transfer trauma, and allow services to be provided in an appropriately licensed setting. (c) Because elderly residents often both expend a significant portion of their savings in order to purchase care in a continuing care retirement community and expect to receive care at their continuing care retirement community for the rest of their lives, tragic consequences can result if a continuing care provider becomes insolvent or unable to provide responsible care. (d) The Legislature has recognized the importance of continuing care provider solvency and the need for disclosure concerning the terms of agreements made between prospective residents and the continuing care provider, and concerning the operations of the continuing care retirement community. (e) The Legislature defines continuing care contracts in terms of a promise of the future provision of services which are analogous to insurance products. (f) Continuing care retirement communities have long-term obligations and may have a corporate or capital structure similar to insurance holding company systems, as defined in the Insurance Code. (g) Therefore, it is the intent of the Legislature to transfer regulatory responsibility for continuing care retirement communities from the Department of Social Services to the Department of Insurance.