| Old | New | Differences | |
|---|---|---|---|
| 1 | - | Amended IN Assembly | |
| 1 | + | Amended IN Assembly March 19, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1379Introduced by Assembly Member QuirkFebruary 22, 2019 An act to amend Section 1770 Sections 1778 and 1793.13 of the Health and Safety Code, relating to continuing care contracts. contracts, and making an appropriation therefor.LEGISLATIVE COUNSEL'S DIGESTAB 1379, as amended, Quirk. Continuing care contracts.Existing law regulates continuing care contracts and imposes certain reporting and reserve requirements on continuing care communities. Existing law makes legislative findings and declarations relating to continuing care contracts, including that there is a 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. Existing law establishes the Continuing Care Provider Fee Fund, which consists of specified fees from continuing care providers and which is continuously appropriated to the State Department of Social Services to oversee the continuing care provider program. Existing law requires the department to adjust the fees to reduce the amounts collected when the balance of the fund is projected to exceed $500,000 for the next budget year.This bill would add the Legislatures finding that there is also a need for disclosure concerning the terms of agreements made between prospective residents and the continuing care provider concerning, if applicable, how long it may take to resell a unit under a repayable contract.This bill would rename the fund as the CCRC Oversight Fund. The bill would also remove the requirement that the department reduce the amounts collected when the fund is projected to reach $500,000 and would, instead, require the department to, as needed, adjust the fees on continuing care providers to ensure that the balance in the fund is adequate to fund the reasonable regulatory costs of the program for the year. By authorizing additional amounts to be deposited into a continuously appropriated fund, the bill would make an appropriation. The bill would require the approved budget for the Continuing Care Contracts Section to be posted on the departments internet website.Existing law authorizes the department to require a continuous care provider to submit a financial plan in specified circumstances, including when the department has reason to believe that the provider is insolvent, is in imminent danger of becoming insolvent, is in a financially unsound or unsafe condition, or that its condition is such that it may otherwise be unable to fully perform its obligations pursuant to continuing care contracts. Existing law requires the plan to explain how and when the provider will rectify the problems and deficiencies identified by the department. This bill would authorize the department to require a provider to submit a financial plan and quarterly financial reports in the above circumstances and would also authorize the department to require the plan and reports when a combination of additional circumstances exist, including when the providers occupancy falls below 85%. The bill would require the financial plan and the quarterly financial reports to be distributed as specified, including to the facilitys resident council. The bill would require the approved financial plan and any progress reports to be shared with a prospective or incoming resident if the person will become a resident prior to the remediation of the problems and deficiencies.Digest Key Vote: MAJORITY Appropriation: NOYES Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 1778 of the Health and Safety Code is amended to read:1778. (a) There is hereby created in the State Treasury a fund which shall be known as the Continuing Care Provider Fee CCRC Oversight Fund. The fund shall consist of fees received by the department pursuant to this chapter. Notwithstanding Section 13340 of the Government Code, the Continuing Care Provider Fee CCRC Oversight Fund is hereby continuously appropriated to the department, without regard to fiscal years.(b) Use of the funds appropriated pursuant to this section shall include funding of the following:(1) Program personnel salary costs, to include including, but not be limited to: to the following:(A) A Continuing Care Contracts Program Manager at a level consistent with other management classifications that direct a regulatory program with statewide impact requiring impact. The position shall require skills and knowledge at the highest level with responsibility for work of the most critical or sensitive nature as it relates to the departments mission, including protecting vulnerable elderly persons, supervising technical staff with oversight of highly complex operations operations, and responsibility for policy and program evaluation and recommendations; recommendations.(B) A full-time legal counsel with a working knowledge of all laws relating to the regulation of continuing care retirement communities and residential care facilities for the elderly; elderly.(C) A financial analyst with working knowledge of generally accepted accounting principles and auditing standards; and other standards.(D) Other appropriate analytical and technical support positions.(2) Contracts with technically qualified persons, to include but including, but not be limited to to, financial, actuarial, and marketing consultants, as necessary to provide advice regarding the feasibility or viability of continuing care retirement communities and providers.(3) Other program costs or costs directly supporting program staff.(4) The department shall use no more than 5 percent of the fees collected pursuant to this section for overhead costs, including facilities operation, operation and indirect department and division costs.(c) If the balance in the Continuing Care Provider Fee Fund is projected to exceed five hundred thousand dollars ($500,000) for the next budget year, As needed, the department shall adjust the calculations for the application fees under Section 1779.2 and annual fees under Section 1791 to reduce the amounts collected. ensure that the balance in the CCRC Oversight Fund is adequate to fund the reasonable regulatory costs of the program, as specified in subdivision (b), for the year. The approved budget for the Continuing Care Contracts Section shall be posted on the departments internet website.(d) The intent of the Legislature is to empower the program administrator with the ability and authorization to obtain necessary resources or staffing to carry out the program objectives.SEC. 2. Section 1793.13 of the Health and Safety Code is amended to read:1793.13. (a) The department may require a provider to submit a financial plan, plan and quarterly financial reports, if either any of the following applies: apply:(1) A provider fails to file a complete annual report as required by Section 1790.(2) The department has reason to believe that the provider is insolvent, is in imminent danger of becoming insolvent, is in a financially unsound or unsafe condition, or that its condition is such that it may otherwise be unable to fully perform its obligations pursuant to continuing care contracts.(3) Any two of the following occur:(A) Occupancy falls below 85 percent.(B) The provider fails to maintain the minimum reserve required pursuant to Section 1792.(C) For a provider with mortgage financing from a third-party lender or public bond issue, the providers debt service coverage ratio is less than 1:1 and the provider has less than 90 days cash on hand.(D) For a provider without mortgage financing from a third-party lender or public bond issue, the provider has less than 90 days cash on hand.(b) (1) A provider shall submit its financial plan to the department within 60 days following the date of the departments request. The financial plan shall explain how and when the provider will rectify remedy the problems and deficiencies identified by the department.(2) A provider shall submit quarterly updates to the financial plan to the department. Quarterly reports shall explain the providers progress toward remedying the problems and deficiencies identified by the department.(c) The department shall approve or disapprove the plan within 30 days of its receipt.(d) If the plan is approved, the provider shall immediately implement the plan. plan and distribute a copy of the plan to the facilitys resident council. All quarterly reports required by this section shall also be distributed to the facilitys resident council immediately following submission to the department.(e) If the plan is disapproved, or if it is determined that the plan is not being fully implemented, the department may consult with its financial consultants to develop a corrective action plan at the providers expense, or require the provider to obtain new or additional management capability approved by the department to solve its difficulties. A reasonable period, as determined by the department, shall be allowed for the reorganized management to develop a plan which, that, subject to the approval of the department, will reasonably assure ensure that the provider will meet its responsibilities under the law. A corrective action plan or a plan for reorganization shall be shared with the facilitys resident council within a reasonable period of time.(f) The provider shall share its approved financial plan and any subsequent progress reports with a prospective or incoming resident if that person will become a resident prior to the remediation of the problems and deficiencies identified by the department.(g) If the provider fails to correct deficiencies by the expiration of the financial plan, the department may initiate delinquency proceedings.SECTION 1.Section 1770 of the Health and Safety Code is amended to read:1770.The Legislature finds, declares, and intends all of the following:(a)Continuing care retirement communities are an alternative for the long-term residential, social, and health care needs of Californias elderly residents and seek to provide a continuum of care, minimize transfer trauma, and allow services to be provided in an appropriately licensed setting.(b)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.(c)There is a need for disclosure concerning the terms of agreements made between prospective residents and the continuing care provider concerning the operations of the continuing care retirement community, and concerning, if applicable, how long it may take a provider to resell a unit under a repayable contract.(d)Providers of continuing care should be required to obtain a certificate of authority to enter into continuing care contracts and should be monitored and regulated by the State Department of Social Services.(e)This chapter applies equally to for-profit and nonprofit provider entities.(f)This chapter states the minimum requirements to be imposed upon an entity offering or providing continuing care.(g)Because the authority to enter into continuing care contracts granted by the State Department of Social Services is neither a guarantee of performance by the providers nor an endorsement of any continuing care contract provisions, prospective residents must carefully consider the risks, benefits, and costs before signing a continuing care contract and should be encouraged to seek financial and legal advice before doing so. | |
| 2 | 2 | ||
| 3 | - | ||
| 3 | + | Amended IN Assembly March 19, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1379Introduced by Assembly Member QuirkFebruary 22, 2019 An act to amend Section 1770 Sections 1778 and 1793.13 of the Health and Safety Code, relating to continuing care contracts. contracts, and making an appropriation therefor.LEGISLATIVE COUNSEL'S DIGESTAB 1379, as amended, Quirk. Continuing care contracts.Existing law regulates continuing care contracts and imposes certain reporting and reserve requirements on continuing care communities. Existing law makes legislative findings and declarations relating to continuing care contracts, including that there is a 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. Existing law establishes the Continuing Care Provider Fee Fund, which consists of specified fees from continuing care providers and which is continuously appropriated to the State Department of Social Services to oversee the continuing care provider program. Existing law requires the department to adjust the fees to reduce the amounts collected when the balance of the fund is projected to exceed $500,000 for the next budget year.This bill would add the Legislatures finding that there is also a need for disclosure concerning the terms of agreements made between prospective residents and the continuing care provider concerning, if applicable, how long it may take to resell a unit under a repayable contract.This bill would rename the fund as the CCRC Oversight Fund. The bill would also remove the requirement that the department reduce the amounts collected when the fund is projected to reach $500,000 and would, instead, require the department to, as needed, adjust the fees on continuing care providers to ensure that the balance in the fund is adequate to fund the reasonable regulatory costs of the program for the year. By authorizing additional amounts to be deposited into a continuously appropriated fund, the bill would make an appropriation. The bill would require the approved budget for the Continuing Care Contracts Section to be posted on the departments internet website.Existing law authorizes the department to require a continuous care provider to submit a financial plan in specified circumstances, including when the department has reason to believe that the provider is insolvent, is in imminent danger of becoming insolvent, is in a financially unsound or unsafe condition, or that its condition is such that it may otherwise be unable to fully perform its obligations pursuant to continuing care contracts. Existing law requires the plan to explain how and when the provider will rectify the problems and deficiencies identified by the department. This bill would authorize the department to require a provider to submit a financial plan and quarterly financial reports in the above circumstances and would also authorize the department to require the plan and reports when a combination of additional circumstances exist, including when the providers occupancy falls below 85%. The bill would require the financial plan and the quarterly financial reports to be distributed as specified, including to the facilitys resident council. The bill would require the approved financial plan and any progress reports to be shared with a prospective or incoming resident if the person will become a resident prior to the remediation of the problems and deficiencies.Digest Key Vote: MAJORITY Appropriation: NOYES Fiscal Committee: NOYES Local Program: NO | |
| 4 | 4 | ||
| 5 | - | ||
| 5 | + | Amended IN Assembly March 19, 2019 | |
| 6 | 6 | ||
| 7 | - | Amended IN Assembly April 22, 2019 | |
| 8 | 7 | Amended IN Assembly March 19, 2019 | |
| 9 | 8 | ||
| 10 | 9 | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION | |
| 11 | 10 | ||
| 12 | 11 | Assembly Bill No. 1379 | |
| 13 | 12 | ||
| 14 | 13 | Introduced by Assembly Member QuirkFebruary 22, 2019 | |
| 15 | 14 | ||
| 16 | 15 | Introduced by Assembly Member Quirk | |
| 17 | 16 | February 22, 2019 | |
| 18 | 17 | ||
| 19 | - | An act to amend Sections 1778 and 1793.13 of the Health and Safety Code, relating to continuing care contracts, and making an appropriation therefor. | |
| 18 | + | An act to amend Section 1770 Sections 1778 and 1793.13 of the Health and Safety Code, relating to continuing care contracts. contracts, and making an appropriation therefor. | |
| 20 | 19 | ||
| 21 | 20 | LEGISLATIVE COUNSEL'S DIGEST | |
| 22 | 21 | ||
| 23 | 22 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 24 | 23 | ||
| 25 | 24 | AB 1379, as amended, Quirk. Continuing care contracts. | |
| 26 | 25 | ||
| 27 | - | Existing law regulates continuing care contracts and imposes certain reporting and reserve requirements on continuing care communities. Existing law establishes the Continuing Care Provider Fee Fund, which consists of specified fees from continuing care providers and which is continuously appropriated to the State Department of Social Services to oversee the continuing care provider program. Existing law requires the department to adjust the fees to reduce the amounts collected when the balance of the fund is projected to exceed $500,000 for the next budget year.This bill would rename the fund as the CCRC Oversight Fund. The bill would also remove the requirement that the department reduce the amounts collected when the fund is projected to reach $500,000 and would, instead, require the department to, as needed, adjust the fees on continuing care providers to ensure that the balance in the fund is adequate to fund the reasonable regulatory costs of the program for the year | |
| 26 | + | Existing law regulates continuing care contracts and imposes certain reporting and reserve requirements on continuing care communities. Existing law makes legislative findings and declarations relating to continuing care contracts, including that there is a 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. Existing law establishes the Continuing Care Provider Fee Fund, which consists of specified fees from continuing care providers and which is continuously appropriated to the State Department of Social Services to oversee the continuing care provider program. Existing law requires the department to adjust the fees to reduce the amounts collected when the balance of the fund is projected to exceed $500,000 for the next budget year.This bill would add the Legislatures finding that there is also a need for disclosure concerning the terms of agreements made between prospective residents and the continuing care provider concerning, if applicable, how long it may take to resell a unit under a repayable contract.This bill would rename the fund as the CCRC Oversight Fund. The bill would also remove the requirement that the department reduce the amounts collected when the fund is projected to reach $500,000 and would, instead, require the department to, as needed, adjust the fees on continuing care providers to ensure that the balance in the fund is adequate to fund the reasonable regulatory costs of the program for the year. By authorizing additional amounts to be deposited into a continuously appropriated fund, the bill would make an appropriation. The bill would require the approved budget for the Continuing Care Contracts Section to be posted on the departments internet website.Existing law authorizes the department to require a continuous care provider to submit a financial plan in specified circumstances, including when the department has reason to believe that the provider is insolvent, is in imminent danger of becoming insolvent, is in a financially unsound or unsafe condition, or that its condition is such that it may otherwise be unable to fully perform its obligations pursuant to continuing care contracts. Existing law requires the plan to explain how and when the provider will rectify the problems and deficiencies identified by the department. This bill would authorize the department to require a provider to submit a financial plan and quarterly financial reports in the above circumstances and would also authorize the department to require the plan and reports when a combination of additional circumstances exist, including when the providers occupancy falls below 85%. The bill would require the financial plan and the quarterly financial reports to be distributed as specified, including to the facilitys resident council. The bill would require the approved financial plan and any progress reports to be shared with a prospective or incoming resident if the person will become a resident prior to the remediation of the problems and deficiencies. | |
| 28 | 27 | ||
| 29 | - | Existing law regulates continuing care contracts and imposes certain reporting and reserve requirements on continuing care communities. Existing law establishes the Continuing Care Provider Fee Fund, which consists of specified fees from continuing care providers and which is continuously appropriated to the State Department of Social Services to oversee the continuing care provider program. Existing law requires the department to adjust the fees to reduce the amounts collected when the balance of the fund is projected to exceed $500,000 for the next budget year. | |
| 28 | + | Existing law regulates continuing care contracts and imposes certain reporting and reserve requirements on continuing care communities. Existing law makes legislative findings and declarations relating to continuing care contracts, including that there is a 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. Existing law establishes the Continuing Care Provider Fee Fund, which consists of specified fees from continuing care providers and which is continuously appropriated to the State Department of Social Services to oversee the continuing care provider program. Existing law requires the department to adjust the fees to reduce the amounts collected when the balance of the fund is projected to exceed $500,000 for the next budget year. | |
| 30 | 29 | ||
| 31 | - | This bill would rename the fund as the CCRC Oversight Fund. The bill would also remove the requirement that the department reduce the amounts collected when the fund is projected to reach $500,000 and would, instead, require the department to, as needed, adjust the fees on continuing care providers to ensure that the balance in the fund is adequate to fund the reasonable regulatory costs of the program for the year. year and does not exceed an amount adequate to fund those costs. By authorizing additional amounts to be deposited into a continuously appropriated fund, the bill would make an appropriation. The bill would require the approved budget for the Continuing Care Contracts Section to be posted on the departments internet website. | |
| 30 | + | This bill would add the Legislatures finding that there is also a need for disclosure concerning the terms of agreements made between prospective residents and the continuing care provider concerning, if applicable, how long it may take to resell a unit under a repayable contract. | |
| 31 | + | ||
| 32 | + | ||
| 33 | + | ||
| 34 | + | This bill would rename the fund as the CCRC Oversight Fund. The bill would also remove the requirement that the department reduce the amounts collected when the fund is projected to reach $500,000 and would, instead, require the department to, as needed, adjust the fees on continuing care providers to ensure that the balance in the fund is adequate to fund the reasonable regulatory costs of the program for the year. By authorizing additional amounts to be deposited into a continuously appropriated fund, the bill would make an appropriation. The bill would require the approved budget for the Continuing Care Contracts Section to be posted on the departments internet website. | |
| 32 | 35 | ||
| 33 | 36 | Existing law authorizes the department to require a continuous care provider to submit a financial plan in specified circumstances, including when the department has reason to believe that the provider is insolvent, is in imminent danger of becoming insolvent, is in a financially unsound or unsafe condition, or that its condition is such that it may otherwise be unable to fully perform its obligations pursuant to continuing care contracts. Existing law requires the plan to explain how and when the provider will rectify the problems and deficiencies identified by the department. | |
| 34 | 37 | ||
| 35 | - | This bill would authorize the department to require a provider to submit a financial plan and quarterly financial reports in the above circumstances and | |
| 38 | + | This bill would authorize the department to require a provider to submit a financial plan and quarterly financial reports in the above circumstances and would also authorize the department to require the plan and reports when a combination of additional circumstances exist, including when the providers occupancy falls below 85%. The bill would require the financial plan and the quarterly financial reports to be distributed as specified, including to the facilitys resident council. The bill would require the approved financial plan and any progress reports to be shared with a prospective or incoming resident if the person will become a resident prior to the remediation of the problems and deficiencies. | |
| 36 | 39 | ||
| 37 | 40 | ## Digest Key | |
| 38 | 41 | ||
| 39 | 42 | ## Bill Text | |
| 40 | 43 | ||
| 41 | - | The people of the State of California do enact as follows:SECTION 1. Section 1778 of the Health and Safety Code is amended to read:1778. (a) There is hereby created in the State Treasury a fund which shall be known as the CCRC Oversight Fund. The fund shall consist of fees received by the department pursuant to this chapter. Notwithstanding Section 13340 of the Government Code, the CCRC Oversight Fund is hereby continuously appropriated to the department, without regard to fiscal years.(b) Use of the funds appropriated pursuant to this section shall include funding of the following:(1) Program personnel salary costs, including, but not limited to the following:(A) A Continuing Care Contracts Program Manager at a level consistent with other management classifications that direct a regulatory program with statewide impact. The position shall require skills and knowledge at the highest level with responsibility for work of the most critical or sensitive nature as it relates to the departments mission, including protecting vulnerable elderly persons, supervising technical staff with oversight of highly complex operations, and responsibility for policy and program evaluation and recommendations.(B) A full-time legal counsel with a working knowledge of all laws relating to the regulation of continuing care retirement communities and residential care facilities for the elderly.(C) A financial analyst with working knowledge of generally accepted accounting principles and auditing standards.(D) Other appropriate analytical and technical support positions.(2) Contracts with technically qualified persons, including, but not limited to, financial, actuarial, and marketing consultants, as necessary to provide advice regarding the feasibility or viability of continuing care retirement communities and providers.(3) Other program costs or costs directly supporting program staff.(4) The department shall use no more than 5 percent of the fees collected pursuant to this section for overhead costs, including facilities operation and indirect department and division costs.(c) As needed, the department shall adjust the calculations for the application fees under Section 1779.2 and annual fees under Section 1791 to ensure that the balance in the CCRC Oversight Fund is adequate to fund the reasonable regulatory costs of the program, as specified in subdivision (b), for the year | |
| 44 | + | The people of the State of California do enact as follows:SECTION 1. Section 1778 of the Health and Safety Code is amended to read:1778. (a) There is hereby created in the State Treasury a fund which shall be known as the Continuing Care Provider Fee CCRC Oversight Fund. The fund shall consist of fees received by the department pursuant to this chapter. Notwithstanding Section 13340 of the Government Code, the Continuing Care Provider Fee CCRC Oversight Fund is hereby continuously appropriated to the department, without regard to fiscal years.(b) Use of the funds appropriated pursuant to this section shall include funding of the following:(1) Program personnel salary costs, to include including, but not be limited to: to the following:(A) A Continuing Care Contracts Program Manager at a level consistent with other management classifications that direct a regulatory program with statewide impact requiring impact. The position shall require skills and knowledge at the highest level with responsibility for work of the most critical or sensitive nature as it relates to the departments mission, including protecting vulnerable elderly persons, supervising technical staff with oversight of highly complex operations operations, and responsibility for policy and program evaluation and recommendations; recommendations.(B) A full-time legal counsel with a working knowledge of all laws relating to the regulation of continuing care retirement communities and residential care facilities for the elderly; elderly.(C) A financial analyst with working knowledge of generally accepted accounting principles and auditing standards; and other standards.(D) Other appropriate analytical and technical support positions.(2) Contracts with technically qualified persons, to include but including, but not be limited to to, financial, actuarial, and marketing consultants, as necessary to provide advice regarding the feasibility or viability of continuing care retirement communities and providers.(3) Other program costs or costs directly supporting program staff.(4) The department shall use no more than 5 percent of the fees collected pursuant to this section for overhead costs, including facilities operation, operation and indirect department and division costs.(c) If the balance in the Continuing Care Provider Fee Fund is projected to exceed five hundred thousand dollars ($500,000) for the next budget year, As needed, the department shall adjust the calculations for the application fees under Section 1779.2 and annual fees under Section 1791 to reduce the amounts collected. ensure that the balance in the CCRC Oversight Fund is adequate to fund the reasonable regulatory costs of the program, as specified in subdivision (b), for the year. The approved budget for the Continuing Care Contracts Section shall be posted on the departments internet website.(d) The intent of the Legislature is to empower the program administrator with the ability and authorization to obtain necessary resources or staffing to carry out the program objectives.SEC. 2. Section 1793.13 of the Health and Safety Code is amended to read:1793.13. (a) The department may require a provider to submit a financial plan, plan and quarterly financial reports, if either any of the following applies: apply:(1) A provider fails to file a complete annual report as required by Section 1790.(2) The department has reason to believe that the provider is insolvent, is in imminent danger of becoming insolvent, is in a financially unsound or unsafe condition, or that its condition is such that it may otherwise be unable to fully perform its obligations pursuant to continuing care contracts.(3) Any two of the following occur:(A) Occupancy falls below 85 percent.(B) The provider fails to maintain the minimum reserve required pursuant to Section 1792.(C) For a provider with mortgage financing from a third-party lender or public bond issue, the providers debt service coverage ratio is less than 1:1 and the provider has less than 90 days cash on hand.(D) For a provider without mortgage financing from a third-party lender or public bond issue, the provider has less than 90 days cash on hand.(b) (1) A provider shall submit its financial plan to the department within 60 days following the date of the departments request. The financial plan shall explain how and when the provider will rectify remedy the problems and deficiencies identified by the department.(2) A provider shall submit quarterly updates to the financial plan to the department. Quarterly reports shall explain the providers progress toward remedying the problems and deficiencies identified by the department.(c) The department shall approve or disapprove the plan within 30 days of its receipt.(d) If the plan is approved, the provider shall immediately implement the plan. plan and distribute a copy of the plan to the facilitys resident council. All quarterly reports required by this section shall also be distributed to the facilitys resident council immediately following submission to the department.(e) If the plan is disapproved, or if it is determined that the plan is not being fully implemented, the department may consult with its financial consultants to develop a corrective action plan at the providers expense, or require the provider to obtain new or additional management capability approved by the department to solve its difficulties. A reasonable period, as determined by the department, shall be allowed for the reorganized management to develop a plan which, that, subject to the approval of the department, will reasonably assure ensure that the provider will meet its responsibilities under the law. A corrective action plan or a plan for reorganization shall be shared with the facilitys resident council within a reasonable period of time.(f) The provider shall share its approved financial plan and any subsequent progress reports with a prospective or incoming resident if that person will become a resident prior to the remediation of the problems and deficiencies identified by the department.(g) If the provider fails to correct deficiencies by the expiration of the financial plan, the department may initiate delinquency proceedings.SECTION 1.Section 1770 of the Health and Safety Code is amended to read:1770.The Legislature finds, declares, and intends all of the following:(a)Continuing care retirement communities are an alternative for the long-term residential, social, and health care needs of Californias elderly residents and seek to provide a continuum of care, minimize transfer trauma, and allow services to be provided in an appropriately licensed setting.(b)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.(c)There is a need for disclosure concerning the terms of agreements made between prospective residents and the continuing care provider concerning the operations of the continuing care retirement community, and concerning, if applicable, how long it may take a provider to resell a unit under a repayable contract.(d)Providers of continuing care should be required to obtain a certificate of authority to enter into continuing care contracts and should be monitored and regulated by the State Department of Social Services.(e)This chapter applies equally to for-profit and nonprofit provider entities.(f)This chapter states the minimum requirements to be imposed upon an entity offering or providing continuing care.(g)Because the authority to enter into continuing care contracts granted by the State Department of Social Services is neither a guarantee of performance by the providers nor an endorsement of any continuing care contract provisions, prospective residents must carefully consider the risks, benefits, and costs before signing a continuing care contract and should be encouraged to seek financial and legal advice before doing so. | |
| 42 | 45 | ||
| 43 | 46 | The people of the State of California do enact as follows: | |
| 44 | 47 | ||
| 45 | 48 | ## The people of the State of California do enact as follows: | |
| 46 | 49 | ||
| 47 | - | SECTION 1. Section 1778 of the Health and Safety Code is amended to read:1778. (a) There is hereby created in the State Treasury a fund which shall be known as the CCRC Oversight Fund. The fund shall consist of fees received by the department pursuant to this chapter. Notwithstanding Section 13340 of the Government Code, the CCRC Oversight Fund is hereby continuously appropriated to the department, without regard to fiscal years.(b) Use of the funds appropriated pursuant to this section shall include funding of the following:(1) Program personnel salary costs, including, but not limited to the following:(A) A Continuing Care Contracts Program Manager at a level consistent with other management classifications that direct a regulatory program with statewide impact. The position shall require skills and knowledge at the highest level with responsibility for work of the most critical or sensitive nature as it relates to the departments mission, including protecting vulnerable elderly persons, supervising technical staff with oversight of highly complex operations, and responsibility for policy and program evaluation and recommendations.(B) A full-time legal counsel with a working knowledge of all laws relating to the regulation of continuing care retirement communities and residential care facilities for the elderly.(C) A financial analyst with working knowledge of generally accepted accounting principles and auditing standards.(D) Other appropriate analytical and technical support positions.(2) Contracts with technically qualified persons, including, but not limited to, financial, actuarial, and marketing consultants, as necessary to provide advice regarding the feasibility or viability of continuing care retirement communities and providers.(3) Other program costs or costs directly supporting program staff.(4) The department shall use no more than 5 percent of the fees collected pursuant to this section for overhead costs, including facilities operation and indirect department and division costs.(c) As needed, the department shall adjust the calculations for the application fees under Section 1779.2 and annual fees under Section 1791 to ensure that the balance in the CCRC Oversight Fund is adequate to fund the reasonable regulatory costs of the program, as specified in subdivision (b), for the year | |
| 50 | + | SECTION 1. Section 1778 of the Health and Safety Code is amended to read:1778. (a) There is hereby created in the State Treasury a fund which shall be known as the Continuing Care Provider Fee CCRC Oversight Fund. The fund shall consist of fees received by the department pursuant to this chapter. Notwithstanding Section 13340 of the Government Code, the Continuing Care Provider Fee CCRC Oversight Fund is hereby continuously appropriated to the department, without regard to fiscal years.(b) Use of the funds appropriated pursuant to this section shall include funding of the following:(1) Program personnel salary costs, to include including, but not be limited to: to the following:(A) A Continuing Care Contracts Program Manager at a level consistent with other management classifications that direct a regulatory program with statewide impact requiring impact. The position shall require skills and knowledge at the highest level with responsibility for work of the most critical or sensitive nature as it relates to the departments mission, including protecting vulnerable elderly persons, supervising technical staff with oversight of highly complex operations operations, and responsibility for policy and program evaluation and recommendations; recommendations.(B) A full-time legal counsel with a working knowledge of all laws relating to the regulation of continuing care retirement communities and residential care facilities for the elderly; elderly.(C) A financial analyst with working knowledge of generally accepted accounting principles and auditing standards; and other standards.(D) Other appropriate analytical and technical support positions.(2) Contracts with technically qualified persons, to include but including, but not be limited to to, financial, actuarial, and marketing consultants, as necessary to provide advice regarding the feasibility or viability of continuing care retirement communities and providers.(3) Other program costs or costs directly supporting program staff.(4) The department shall use no more than 5 percent of the fees collected pursuant to this section for overhead costs, including facilities operation, operation and indirect department and division costs.(c) If the balance in the Continuing Care Provider Fee Fund is projected to exceed five hundred thousand dollars ($500,000) for the next budget year, As needed, the department shall adjust the calculations for the application fees under Section 1779.2 and annual fees under Section 1791 to reduce the amounts collected. ensure that the balance in the CCRC Oversight Fund is adequate to fund the reasonable regulatory costs of the program, as specified in subdivision (b), for the year. The approved budget for the Continuing Care Contracts Section shall be posted on the departments internet website.(d) The intent of the Legislature is to empower the program administrator with the ability and authorization to obtain necessary resources or staffing to carry out the program objectives. | |
| 48 | 51 | ||
| 49 | 52 | SECTION 1. Section 1778 of the Health and Safety Code is amended to read: | |
| 50 | 53 | ||
| 51 | 54 | ### SECTION 1. | |
| 52 | 55 | ||
| 53 | - | 1778. (a) There is hereby created in the State Treasury a fund which shall be known as the CCRC Oversight Fund. The fund shall consist of fees received by the department pursuant to this chapter. Notwithstanding Section 13340 of the Government Code, the CCRC Oversight Fund is hereby continuously appropriated to the department, without regard to fiscal years.(b) Use of the funds appropriated pursuant to this section shall include funding of the following:(1) Program personnel salary costs, including, but not limited to the following:(A) A Continuing Care Contracts Program Manager at a level consistent with other management classifications that direct a regulatory program with statewide impact. The position shall require skills and knowledge at the highest level with responsibility for work of the most critical or sensitive nature as it relates to the departments mission, including protecting vulnerable elderly persons, supervising technical staff with oversight of highly complex operations, and responsibility for policy and program evaluation and recommendations.(B) A full-time legal counsel with a working knowledge of all laws relating to the regulation of continuing care retirement communities and residential care facilities for the elderly.(C) A financial analyst with working knowledge of generally accepted accounting principles and auditing standards.(D) Other appropriate analytical and technical support positions.(2) Contracts with technically qualified persons, including, but not limited to, financial, actuarial, and marketing consultants, as necessary to provide advice regarding the feasibility or viability of continuing care retirement communities and providers.(3) Other program costs or costs directly supporting program staff.(4) The department shall use no more than 5 percent of the fees collected pursuant to this section for overhead costs, including facilities operation and indirect department and division costs.(c) As needed, the department shall adjust the calculations for the application fees under Section 1779.2 and annual fees under Section 1791 to ensure that the balance in the CCRC Oversight Fund is adequate to fund the reasonable regulatory costs of the program, as specified in subdivision (b), for the year | |
| 56 | + | 1778. (a) There is hereby created in the State Treasury a fund which shall be known as the Continuing Care Provider Fee CCRC Oversight Fund. The fund shall consist of fees received by the department pursuant to this chapter. Notwithstanding Section 13340 of the Government Code, the Continuing Care Provider Fee CCRC Oversight Fund is hereby continuously appropriated to the department, without regard to fiscal years.(b) Use of the funds appropriated pursuant to this section shall include funding of the following:(1) Program personnel salary costs, to include including, but not be limited to: to the following:(A) A Continuing Care Contracts Program Manager at a level consistent with other management classifications that direct a regulatory program with statewide impact requiring impact. The position shall require skills and knowledge at the highest level with responsibility for work of the most critical or sensitive nature as it relates to the departments mission, including protecting vulnerable elderly persons, supervising technical staff with oversight of highly complex operations operations, and responsibility for policy and program evaluation and recommendations; recommendations.(B) A full-time legal counsel with a working knowledge of all laws relating to the regulation of continuing care retirement communities and residential care facilities for the elderly; elderly.(C) A financial analyst with working knowledge of generally accepted accounting principles and auditing standards; and other standards.(D) Other appropriate analytical and technical support positions.(2) Contracts with technically qualified persons, to include but including, but not be limited to to, financial, actuarial, and marketing consultants, as necessary to provide advice regarding the feasibility or viability of continuing care retirement communities and providers.(3) Other program costs or costs directly supporting program staff.(4) The department shall use no more than 5 percent of the fees collected pursuant to this section for overhead costs, including facilities operation, operation and indirect department and division costs.(c) If the balance in the Continuing Care Provider Fee Fund is projected to exceed five hundred thousand dollars ($500,000) for the next budget year, As needed, the department shall adjust the calculations for the application fees under Section 1779.2 and annual fees under Section 1791 to reduce the amounts collected. ensure that the balance in the CCRC Oversight Fund is adequate to fund the reasonable regulatory costs of the program, as specified in subdivision (b), for the year. The approved budget for the Continuing Care Contracts Section shall be posted on the departments internet website.(d) The intent of the Legislature is to empower the program administrator with the ability and authorization to obtain necessary resources or staffing to carry out the program objectives. | |
| 54 | 57 | ||
| 55 | - | 1778. (a) There is hereby created in the State Treasury a fund which shall be known as the CCRC Oversight Fund. The fund shall consist of fees received by the department pursuant to this chapter. Notwithstanding Section 13340 of the Government Code, the CCRC Oversight Fund is hereby continuously appropriated to the department, without regard to fiscal years.(b) Use of the funds appropriated pursuant to this section shall include funding of the following:(1) Program personnel salary costs, including, but not limited to the following:(A) A Continuing Care Contracts Program Manager at a level consistent with other management classifications that direct a regulatory program with statewide impact. The position shall require skills and knowledge at the highest level with responsibility for work of the most critical or sensitive nature as it relates to the departments mission, including protecting vulnerable elderly persons, supervising technical staff with oversight of highly complex operations, and responsibility for policy and program evaluation and recommendations.(B) A full-time legal counsel with a working knowledge of all laws relating to the regulation of continuing care retirement communities and residential care facilities for the elderly.(C) A financial analyst with working knowledge of generally accepted accounting principles and auditing standards.(D) Other appropriate analytical and technical support positions.(2) Contracts with technically qualified persons, including, but not limited to, financial, actuarial, and marketing consultants, as necessary to provide advice regarding the feasibility or viability of continuing care retirement communities and providers.(3) Other program costs or costs directly supporting program staff.(4) The department shall use no more than 5 percent of the fees collected pursuant to this section for overhead costs, including facilities operation and indirect department and division costs.(c) As needed, the department shall adjust the calculations for the application fees under Section 1779.2 and annual fees under Section 1791 to ensure that the balance in the CCRC Oversight Fund is adequate to fund the reasonable regulatory costs of the program, as specified in subdivision (b), for the year | |
| 58 | + | 1778. (a) There is hereby created in the State Treasury a fund which shall be known as the Continuing Care Provider Fee CCRC Oversight Fund. The fund shall consist of fees received by the department pursuant to this chapter. Notwithstanding Section 13340 of the Government Code, the Continuing Care Provider Fee CCRC Oversight Fund is hereby continuously appropriated to the department, without regard to fiscal years.(b) Use of the funds appropriated pursuant to this section shall include funding of the following:(1) Program personnel salary costs, to include including, but not be limited to: to the following:(A) A Continuing Care Contracts Program Manager at a level consistent with other management classifications that direct a regulatory program with statewide impact requiring impact. The position shall require skills and knowledge at the highest level with responsibility for work of the most critical or sensitive nature as it relates to the departments mission, including protecting vulnerable elderly persons, supervising technical staff with oversight of highly complex operations operations, and responsibility for policy and program evaluation and recommendations; recommendations.(B) A full-time legal counsel with a working knowledge of all laws relating to the regulation of continuing care retirement communities and residential care facilities for the elderly; elderly.(C) A financial analyst with working knowledge of generally accepted accounting principles and auditing standards; and other standards.(D) Other appropriate analytical and technical support positions.(2) Contracts with technically qualified persons, to include but including, but not be limited to to, financial, actuarial, and marketing consultants, as necessary to provide advice regarding the feasibility or viability of continuing care retirement communities and providers.(3) Other program costs or costs directly supporting program staff.(4) The department shall use no more than 5 percent of the fees collected pursuant to this section for overhead costs, including facilities operation, operation and indirect department and division costs.(c) If the balance in the Continuing Care Provider Fee Fund is projected to exceed five hundred thousand dollars ($500,000) for the next budget year, As needed, the department shall adjust the calculations for the application fees under Section 1779.2 and annual fees under Section 1791 to reduce the amounts collected. ensure that the balance in the CCRC Oversight Fund is adequate to fund the reasonable regulatory costs of the program, as specified in subdivision (b), for the year. The approved budget for the Continuing Care Contracts Section shall be posted on the departments internet website.(d) The intent of the Legislature is to empower the program administrator with the ability and authorization to obtain necessary resources or staffing to carry out the program objectives. | |
| 56 | 59 | ||
| 57 | - | 1778. (a) There is hereby created in the State Treasury a fund which shall be known as the CCRC Oversight Fund. The fund shall consist of fees received by the department pursuant to this chapter. Notwithstanding Section 13340 of the Government Code, the CCRC Oversight Fund is hereby continuously appropriated to the department, without regard to fiscal years.(b) Use of the funds appropriated pursuant to this section shall include funding of the following:(1) Program personnel salary costs, including, but not limited to the following:(A) A Continuing Care Contracts Program Manager at a level consistent with other management classifications that direct a regulatory program with statewide impact. The position shall require skills and knowledge at the highest level with responsibility for work of the most critical or sensitive nature as it relates to the departments mission, including protecting vulnerable elderly persons, supervising technical staff with oversight of highly complex operations, and responsibility for policy and program evaluation and recommendations.(B) A full-time legal counsel with a working knowledge of all laws relating to the regulation of continuing care retirement communities and residential care facilities for the elderly.(C) A financial analyst with working knowledge of generally accepted accounting principles and auditing standards.(D) Other appropriate analytical and technical support positions.(2) Contracts with technically qualified persons, including, but not limited to, financial, actuarial, and marketing consultants, as necessary to provide advice regarding the feasibility or viability of continuing care retirement communities and providers.(3) Other program costs or costs directly supporting program staff.(4) The department shall use no more than 5 percent of the fees collected pursuant to this section for overhead costs, including facilities operation and indirect department and division costs.(c) As needed, the department shall adjust the calculations for the application fees under Section 1779.2 and annual fees under Section 1791 to ensure that the balance in the CCRC Oversight Fund is adequate to fund the reasonable regulatory costs of the program, as specified in subdivision (b), for the year | |
| 60 | + | 1778. (a) There is hereby created in the State Treasury a fund which shall be known as the Continuing Care Provider Fee CCRC Oversight Fund. The fund shall consist of fees received by the department pursuant to this chapter. Notwithstanding Section 13340 of the Government Code, the Continuing Care Provider Fee CCRC Oversight Fund is hereby continuously appropriated to the department, without regard to fiscal years.(b) Use of the funds appropriated pursuant to this section shall include funding of the following:(1) Program personnel salary costs, to include including, but not be limited to: to the following:(A) A Continuing Care Contracts Program Manager at a level consistent with other management classifications that direct a regulatory program with statewide impact requiring impact. The position shall require skills and knowledge at the highest level with responsibility for work of the most critical or sensitive nature as it relates to the departments mission, including protecting vulnerable elderly persons, supervising technical staff with oversight of highly complex operations operations, and responsibility for policy and program evaluation and recommendations; recommendations.(B) A full-time legal counsel with a working knowledge of all laws relating to the regulation of continuing care retirement communities and residential care facilities for the elderly; elderly.(C) A financial analyst with working knowledge of generally accepted accounting principles and auditing standards; and other standards.(D) Other appropriate analytical and technical support positions.(2) Contracts with technically qualified persons, to include but including, but not be limited to to, financial, actuarial, and marketing consultants, as necessary to provide advice regarding the feasibility or viability of continuing care retirement communities and providers.(3) Other program costs or costs directly supporting program staff.(4) The department shall use no more than 5 percent of the fees collected pursuant to this section for overhead costs, including facilities operation, operation and indirect department and division costs.(c) If the balance in the Continuing Care Provider Fee Fund is projected to exceed five hundred thousand dollars ($500,000) for the next budget year, As needed, the department shall adjust the calculations for the application fees under Section 1779.2 and annual fees under Section 1791 to reduce the amounts collected. ensure that the balance in the CCRC Oversight Fund is adequate to fund the reasonable regulatory costs of the program, as specified in subdivision (b), for the year. The approved budget for the Continuing Care Contracts Section shall be posted on the departments internet website.(d) The intent of the Legislature is to empower the program administrator with the ability and authorization to obtain necessary resources or staffing to carry out the program objectives. | |
| 58 | 61 | ||
| 59 | 62 | ||
| 60 | 63 | ||
| 61 | - | 1778. (a) There is hereby created in the State Treasury a fund which shall be known as the CCRC Oversight Fund. The fund shall consist of fees received by the department pursuant to this chapter. Notwithstanding Section 13340 of the Government Code, the CCRC Oversight Fund is hereby continuously appropriated to the department, without regard to fiscal years. | |
| 64 | + | 1778. (a) There is hereby created in the State Treasury a fund which shall be known as the Continuing Care Provider Fee CCRC Oversight Fund. The fund shall consist of fees received by the department pursuant to this chapter. Notwithstanding Section 13340 of the Government Code, the Continuing Care Provider Fee CCRC Oversight Fund is hereby continuously appropriated to the department, without regard to fiscal years. | |
| 62 | 65 | ||
| 63 | 66 | (b) Use of the funds appropriated pursuant to this section shall include funding of the following: | |
| 64 | 67 | ||
| 65 | - | (1) Program personnel salary costs, including, but not limited to the following: | |
| 68 | + | (1) Program personnel salary costs, to include including, but not be limited to: to the following: | |
| 66 | 69 | ||
| 67 | - | (A) A Continuing Care Contracts Program Manager at a level consistent with other management classifications that direct a regulatory program with statewide impact. The position shall require skills and knowledge at the highest level with responsibility for work of the most critical or sensitive nature as it relates to the departments mission, including protecting vulnerable elderly persons, supervising technical staff with oversight of highly complex operations, and responsibility for policy and program evaluation and recommendations. | |
| 70 | + | (A) A Continuing Care Contracts Program Manager at a level consistent with other management classifications that direct a regulatory program with statewide impact requiring impact. The position shall require skills and knowledge at the highest level with responsibility for work of the most critical or sensitive nature as it relates to the departments mission, including protecting vulnerable elderly persons, supervising technical staff with oversight of highly complex operations operations, and responsibility for policy and program evaluation and recommendations; recommendations. | |
| 68 | 71 | ||
| 69 | - | (B) A full-time legal counsel with a working knowledge of all laws relating to the regulation of continuing care retirement communities and residential care facilities for the elderly. | |
| 72 | + | (B) A full-time legal counsel with a working knowledge of all laws relating to the regulation of continuing care retirement communities and residential care facilities for the elderly; elderly. | |
| 70 | 73 | ||
| 71 | - | (C) A financial analyst with working knowledge of generally accepted accounting principles and auditing standards. | |
| 74 | + | (C) A financial analyst with working knowledge of generally accepted accounting principles and auditing standards; and other standards. | |
| 72 | 75 | ||
| 73 | 76 | (D) Other appropriate analytical and technical support positions. | |
| 74 | 77 | ||
| 75 | - | (2) Contracts with technically qualified persons, including, but not limited to, financial, actuarial, and marketing consultants, as necessary to provide advice regarding the feasibility or viability of continuing care retirement communities and providers. | |
| 78 | + | (2) Contracts with technically qualified persons, to include but including, but not be limited to to, financial, actuarial, and marketing consultants, as necessary to provide advice regarding the feasibility or viability of continuing care retirement communities and providers. | |
| 76 | 79 | ||
| 77 | 80 | (3) Other program costs or costs directly supporting program staff. | |
| 78 | 81 | ||
| 79 | - | (4) The department shall use no more than 5 percent of the fees collected pursuant to this section for overhead costs, including facilities operation and indirect department and division costs. | |
| 82 | + | (4) The department shall use no more than 5 percent of the fees collected pursuant to this section for overhead costs, including facilities operation, operation and indirect department and division costs. | |
| 80 | 83 | ||
| 81 | - | (c) As needed, the department shall adjust the calculations for the application fees under Section 1779.2 and annual fees under Section 1791 to ensure that the balance in the CCRC Oversight Fund is adequate to fund the reasonable regulatory costs of the program, as specified in subdivision (b), for the year. | |
| 84 | + | (c) If the balance in the Continuing Care Provider Fee Fund is projected to exceed five hundred thousand dollars ($500,000) for the next budget year, As needed, the department shall adjust the calculations for the application fees under Section 1779.2 and annual fees under Section 1791 to reduce the amounts collected. ensure that the balance in the CCRC Oversight Fund is adequate to fund the reasonable regulatory costs of the program, as specified in subdivision (b), for the year. The approved budget for the Continuing Care Contracts Section shall be posted on the departments internet website. | |
| 82 | 85 | ||
| 83 | 86 | (d) The intent of the Legislature is to empower the program administrator with the ability and authorization to obtain necessary resources or staffing to carry out the program objectives. | |
| 84 | 87 | ||
| 85 | - | SEC. 2. Section 1793.13 of the Health and Safety Code is amended to read:1793.13. (a) The department may require a provider to submit a financial plan and quarterly financial reports, if any of the following apply:(1) A provider fails to file a complete annual report as required by Section 1790.(2) The department has reason to believe that the provider is insolvent, is in imminent danger of becoming insolvent, is in a financially unsound or unsafe condition, or that its condition is such that it may otherwise be unable to fully perform its obligations pursuant to continuing care contracts.(3) Any two of the following occur:(A) Occupancy | |
| 88 | + | SEC. 2. Section 1793.13 of the Health and Safety Code is amended to read:1793.13. (a) The department may require a provider to submit a financial plan, plan and quarterly financial reports, if either any of the following applies: apply:(1) A provider fails to file a complete annual report as required by Section 1790.(2) The department has reason to believe that the provider is insolvent, is in imminent danger of becoming insolvent, is in a financially unsound or unsafe condition, or that its condition is such that it may otherwise be unable to fully perform its obligations pursuant to continuing care contracts.(3) Any two of the following occur:(A) Occupancy falls below 85 percent.(B) The provider fails to maintain the minimum reserve required pursuant to Section 1792.(C) For a provider with mortgage financing from a third-party lender or public bond issue, the providers debt service coverage ratio is less than 1:1 and the provider has less than 90 days cash on hand.(D) For a provider without mortgage financing from a third-party lender or public bond issue, the provider has less than 90 days cash on hand.(b) (1) A provider shall submit its financial plan to the department within 60 days following the date of the departments request. The financial plan shall explain how and when the provider will rectify remedy the problems and deficiencies identified by the department.(2) A provider shall submit quarterly updates to the financial plan to the department. Quarterly reports shall explain the providers progress toward remedying the problems and deficiencies identified by the department.(c) The department shall approve or disapprove the plan within 30 days of its receipt.(d) If the plan is approved, the provider shall immediately implement the plan. plan and distribute a copy of the plan to the facilitys resident council. All quarterly reports required by this section shall also be distributed to the facilitys resident council immediately following submission to the department.(e) If the plan is disapproved, or if it is determined that the plan is not being fully implemented, the department may consult with its financial consultants to develop a corrective action plan at the providers expense, or require the provider to obtain new or additional management capability approved by the department to solve its difficulties. A reasonable period, as determined by the department, shall be allowed for the reorganized management to develop a plan which, that, subject to the approval of the department, will reasonably assure ensure that the provider will meet its responsibilities under the law. A corrective action plan or a plan for reorganization shall be shared with the facilitys resident council within a reasonable period of time.(f) The provider shall share its approved financial plan and any subsequent progress reports with a prospective or incoming resident if that person will become a resident prior to the remediation of the problems and deficiencies identified by the department.(g) If the provider fails to correct deficiencies by the expiration of the financial plan, the department may initiate delinquency proceedings. | |
| 86 | 89 | ||
| 87 | 90 | SEC. 2. Section 1793.13 of the Health and Safety Code is amended to read: | |
| 88 | 91 | ||
| 89 | 92 | ### SEC. 2. | |
| 90 | 93 | ||
| 91 | - | 1793.13. (a) The department may require a provider to submit a financial plan and quarterly financial reports, if any of the following apply:(1) A provider fails to file a complete annual report as required by Section 1790.(2) The department has reason to believe that the provider is insolvent, is in imminent danger of becoming insolvent, is in a financially unsound or unsafe condition, or that its condition is such that it may otherwise be unable to fully perform its obligations pursuant to continuing care contracts.(3) Any two of the following occur:(A) Occupancy | |
| 94 | + | 1793.13. (a) The department may require a provider to submit a financial plan, plan and quarterly financial reports, if either any of the following applies: apply:(1) A provider fails to file a complete annual report as required by Section 1790.(2) The department has reason to believe that the provider is insolvent, is in imminent danger of becoming insolvent, is in a financially unsound or unsafe condition, or that its condition is such that it may otherwise be unable to fully perform its obligations pursuant to continuing care contracts.(3) Any two of the following occur:(A) Occupancy falls below 85 percent.(B) The provider fails to maintain the minimum reserve required pursuant to Section 1792.(C) For a provider with mortgage financing from a third-party lender or public bond issue, the providers debt service coverage ratio is less than 1:1 and the provider has less than 90 days cash on hand.(D) For a provider without mortgage financing from a third-party lender or public bond issue, the provider has less than 90 days cash on hand.(b) (1) A provider shall submit its financial plan to the department within 60 days following the date of the departments request. The financial plan shall explain how and when the provider will rectify remedy the problems and deficiencies identified by the department.(2) A provider shall submit quarterly updates to the financial plan to the department. Quarterly reports shall explain the providers progress toward remedying the problems and deficiencies identified by the department.(c) The department shall approve or disapprove the plan within 30 days of its receipt.(d) If the plan is approved, the provider shall immediately implement the plan. plan and distribute a copy of the plan to the facilitys resident council. All quarterly reports required by this section shall also be distributed to the facilitys resident council immediately following submission to the department.(e) If the plan is disapproved, or if it is determined that the plan is not being fully implemented, the department may consult with its financial consultants to develop a corrective action plan at the providers expense, or require the provider to obtain new or additional management capability approved by the department to solve its difficulties. A reasonable period, as determined by the department, shall be allowed for the reorganized management to develop a plan which, that, subject to the approval of the department, will reasonably assure ensure that the provider will meet its responsibilities under the law. A corrective action plan or a plan for reorganization shall be shared with the facilitys resident council within a reasonable period of time.(f) The provider shall share its approved financial plan and any subsequent progress reports with a prospective or incoming resident if that person will become a resident prior to the remediation of the problems and deficiencies identified by the department.(g) If the provider fails to correct deficiencies by the expiration of the financial plan, the department may initiate delinquency proceedings. | |
| 92 | 95 | ||
| 93 | - | 1793.13. (a) The department may require a provider to submit a financial plan and quarterly financial reports, if any of the following apply:(1) A provider fails to file a complete annual report as required by Section 1790.(2) The department has reason to believe that the provider is insolvent, is in imminent danger of becoming insolvent, is in a financially unsound or unsafe condition, or that its condition is such that it may otherwise be unable to fully perform its obligations pursuant to continuing care contracts.(3) Any two of the following occur:(A) Occupancy | |
| 96 | + | 1793.13. (a) The department may require a provider to submit a financial plan, plan and quarterly financial reports, if either any of the following applies: apply:(1) A provider fails to file a complete annual report as required by Section 1790.(2) The department has reason to believe that the provider is insolvent, is in imminent danger of becoming insolvent, is in a financially unsound or unsafe condition, or that its condition is such that it may otherwise be unable to fully perform its obligations pursuant to continuing care contracts.(3) Any two of the following occur:(A) Occupancy falls below 85 percent.(B) The provider fails to maintain the minimum reserve required pursuant to Section 1792.(C) For a provider with mortgage financing from a third-party lender or public bond issue, the providers debt service coverage ratio is less than 1:1 and the provider has less than 90 days cash on hand.(D) For a provider without mortgage financing from a third-party lender or public bond issue, the provider has less than 90 days cash on hand.(b) (1) A provider shall submit its financial plan to the department within 60 days following the date of the departments request. The financial plan shall explain how and when the provider will rectify remedy the problems and deficiencies identified by the department.(2) A provider shall submit quarterly updates to the financial plan to the department. Quarterly reports shall explain the providers progress toward remedying the problems and deficiencies identified by the department.(c) The department shall approve or disapprove the plan within 30 days of its receipt.(d) If the plan is approved, the provider shall immediately implement the plan. plan and distribute a copy of the plan to the facilitys resident council. All quarterly reports required by this section shall also be distributed to the facilitys resident council immediately following submission to the department.(e) If the plan is disapproved, or if it is determined that the plan is not being fully implemented, the department may consult with its financial consultants to develop a corrective action plan at the providers expense, or require the provider to obtain new or additional management capability approved by the department to solve its difficulties. A reasonable period, as determined by the department, shall be allowed for the reorganized management to develop a plan which, that, subject to the approval of the department, will reasonably assure ensure that the provider will meet its responsibilities under the law. A corrective action plan or a plan for reorganization shall be shared with the facilitys resident council within a reasonable period of time.(f) The provider shall share its approved financial plan and any subsequent progress reports with a prospective or incoming resident if that person will become a resident prior to the remediation of the problems and deficiencies identified by the department.(g) If the provider fails to correct deficiencies by the expiration of the financial plan, the department may initiate delinquency proceedings. | |
| 94 | 97 | ||
| 95 | - | 1793.13. (a) The department may require a provider to submit a financial plan and quarterly financial reports, if any of the following apply:(1) A provider fails to file a complete annual report as required by Section 1790.(2) The department has reason to believe that the provider is insolvent, is in imminent danger of becoming insolvent, is in a financially unsound or unsafe condition, or that its condition is such that it may otherwise be unable to fully perform its obligations pursuant to continuing care contracts.(3) Any two of the following occur:(A) Occupancy | |
| 98 | + | 1793.13. (a) The department may require a provider to submit a financial plan, plan and quarterly financial reports, if either any of the following applies: apply:(1) A provider fails to file a complete annual report as required by Section 1790.(2) The department has reason to believe that the provider is insolvent, is in imminent danger of becoming insolvent, is in a financially unsound or unsafe condition, or that its condition is such that it may otherwise be unable to fully perform its obligations pursuant to continuing care contracts.(3) Any two of the following occur:(A) Occupancy falls below 85 percent.(B) The provider fails to maintain the minimum reserve required pursuant to Section 1792.(C) For a provider with mortgage financing from a third-party lender or public bond issue, the providers debt service coverage ratio is less than 1:1 and the provider has less than 90 days cash on hand.(D) For a provider without mortgage financing from a third-party lender or public bond issue, the provider has less than 90 days cash on hand.(b) (1) A provider shall submit its financial plan to the department within 60 days following the date of the departments request. The financial plan shall explain how and when the provider will rectify remedy the problems and deficiencies identified by the department.(2) A provider shall submit quarterly updates to the financial plan to the department. Quarterly reports shall explain the providers progress toward remedying the problems and deficiencies identified by the department.(c) The department shall approve or disapprove the plan within 30 days of its receipt.(d) If the plan is approved, the provider shall immediately implement the plan. plan and distribute a copy of the plan to the facilitys resident council. All quarterly reports required by this section shall also be distributed to the facilitys resident council immediately following submission to the department.(e) If the plan is disapproved, or if it is determined that the plan is not being fully implemented, the department may consult with its financial consultants to develop a corrective action plan at the providers expense, or require the provider to obtain new or additional management capability approved by the department to solve its difficulties. A reasonable period, as determined by the department, shall be allowed for the reorganized management to develop a plan which, that, subject to the approval of the department, will reasonably assure ensure that the provider will meet its responsibilities under the law. A corrective action plan or a plan for reorganization shall be shared with the facilitys resident council within a reasonable period of time.(f) The provider shall share its approved financial plan and any subsequent progress reports with a prospective or incoming resident if that person will become a resident prior to the remediation of the problems and deficiencies identified by the department.(g) If the provider fails to correct deficiencies by the expiration of the financial plan, the department may initiate delinquency proceedings. | |
| 96 | 99 | ||
| 97 | 100 | ||
| 98 | 101 | ||
| 99 | - | 1793.13. (a) The department may require a provider to submit a financial plan and quarterly financial reports, if any of the following apply: | |
| 102 | + | 1793.13. (a) The department may require a provider to submit a financial plan, plan and quarterly financial reports, if either any of the following applies: apply: | |
| 100 | 103 | ||
| 101 | 104 | (1) A provider fails to file a complete annual report as required by Section 1790. | |
| 102 | 105 | ||
| 103 | 106 | (2) The department has reason to believe that the provider is insolvent, is in imminent danger of becoming insolvent, is in a financially unsound or unsafe condition, or that its condition is such that it may otherwise be unable to fully perform its obligations pursuant to continuing care contracts. | |
| 104 | 107 | ||
| 105 | 108 | (3) Any two of the following occur: | |
| 106 | 109 | ||
| 107 | - | (A) | |
| 110 | + | (A) Occupancy falls below 85 percent. | |
| 108 | 111 | ||
| 109 | 112 | (B) The provider fails to maintain the minimum reserve required pursuant to Section 1792. | |
| 110 | 113 | ||
| 114 | + | (C) For a provider with mortgage financing from a third-party lender or public bond issue, the providers debt service coverage ratio is less than 1:1 and the provider has less than 90 days cash on hand. | |
| 111 | 115 | ||
| 116 | + | (D) For a provider without mortgage financing from a third-party lender or public bond issue, the provider has less than 90 days cash on hand. | |
| 112 | 117 | ||
| 113 | - | (C) | |
| 118 | + | (b) (1) A provider shall submit its financial plan to the department within 60 days following the date of the departments request. The financial plan shall explain how and when the provider will rectify remedy the problems and deficiencies identified by the department. | |
| 119 | + | ||
| 120 | + | (2) A provider shall submit quarterly updates to the financial plan to the department. Quarterly reports shall explain the providers progress toward remedying the problems and deficiencies identified by the department. | |
| 121 | + | ||
| 122 | + | (c) The department shall approve or disapprove the plan within 30 days of its receipt. | |
| 123 | + | ||
| 124 | + | (d) If the plan is approved, the provider shall immediately implement the plan. plan and distribute a copy of the plan to the facilitys resident council. All quarterly reports required by this section shall also be distributed to the facilitys resident council immediately following submission to the department. | |
| 125 | + | ||
| 126 | + | (e) If the plan is disapproved, or if it is determined that the plan is not being fully implemented, the department may consult with its financial consultants to develop a corrective action plan at the providers expense, or require the provider to obtain new or additional management capability approved by the department to solve its difficulties. A reasonable period, as determined by the department, shall be allowed for the reorganized management to develop a plan which, that, subject to the approval of the department, will reasonably assure ensure that the provider will meet its responsibilities under the law. A corrective action plan or a plan for reorganization shall be shared with the facilitys resident council within a reasonable period of time. | |
| 127 | + | ||
| 128 | + | (f) The provider shall share its approved financial plan and any subsequent progress reports with a prospective or incoming resident if that person will become a resident prior to the remediation of the problems and deficiencies identified by the department. | |
| 129 | + | ||
| 130 | + | (g) If the provider fails to correct deficiencies by the expiration of the financial plan, the department may initiate delinquency proceedings. | |
| 114 | 131 | ||
| 115 | 132 | ||
| 116 | 133 | ||
| 117 | - | (B) For a provider with mortgage financing from a third-party lender or public bond issue, the coverage ratio of the providers debt service coverage ratio service, as described in Section 1792.3, is less than 1:1 and the provider has less than 90 days cash on hand. hand in the reserve account calculated and described in Section 1792.4. | |
| 118 | 134 | ||
| 119 | - | (D) | |
| 135 | + | ||
| 136 | + | The Legislature finds, declares, and intends all of the following: | |
| 120 | 137 | ||
| 121 | 138 | ||
| 122 | 139 | ||
| 123 | - | (C) For a provider without mortgage financing from a third-party lender or public bond issue, the provider has less than 90 days cash on hand. hand in the reserve account calculated and described in Section 1792.4. | |
| 124 | - | ||
| 125 | - | (b) The provider shall notify the department on a quarterly basis if two of the circumstances described in subparagraphs (A) to (C), inclusive, of paragraph (3) of subdivision (a) occur. | |
| 126 | - | ||
| 127 | - | (b) | |
| 140 | + | (a)Continuing care retirement communities are an alternative for the long-term residential, social, and health care needs of Californias elderly residents and seek to provide a continuum of care, minimize transfer trauma, and allow services to be provided in an appropriately licensed setting. | |
| 128 | 141 | ||
| 129 | 142 | ||
| 130 | 143 | ||
| 131 | - | (c) (1) A provider shall submit its financial plan to the department within 60 days following the date of the departments request. The financial plan shall explain how and when the provider will remedy the problems and deficiencies identified by the department. | |
| 132 | - | ||
| 133 | - | (2) A provider shall submit quarterly updates to the financial plan to the department. Quarterly reports shall explain the providers progress toward remedying the problems and deficiencies identified by the department. Quarterly reports shall be submitted from the date the financial plan is approved through the date the financial plan expires. | |
| 134 | - | ||
| 135 | - | (c) | |
| 144 | + | (b)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. | |
| 136 | 145 | ||
| 137 | 146 | ||
| 138 | 147 | ||
| 139 | - | (d) The department shall approve or disapprove the plan within 30 days of its receipt. | |
| 140 | - | ||
| 141 | - | (d) | |
| 148 | + | (c)There is a need for disclosure concerning the terms of agreements made between prospective residents and the continuing care provider concerning the operations of the continuing care retirement community, and concerning, if applicable, how long it may take a provider to resell a unit under a repayable contract. | |
| 142 | 149 | ||
| 143 | 150 | ||
| 144 | 151 | ||
| 145 | - | (e) If the plan is approved, the provider shall immediately implement the plan and distribute a copy of the plan to the facilitys resident council. All quarterly reports required by this section shall also be distributed to the facilitys resident council immediately following submission to the department. | |
| 146 | - | ||
| 147 | - | (e) | |
| 152 | + | (d)Providers of continuing care should be required to obtain a certificate of authority to enter into continuing care contracts and should be monitored and regulated by the State Department of Social Services. | |
| 148 | 153 | ||
| 149 | 154 | ||
| 150 | 155 | ||
| 151 | - | (f) If the plan is disapproved, or if it is determined that the plan is not being fully implemented, the department may consult with its financial consultants to develop a corrective action plan at the providers expense, or require the provider to obtain new or additional management capability approved by the department to solve its difficulties. A reasonable period, as determined by the department, shall be allowed for the reorganized management to develop a plan that, subject to the approval of the department, will reasonably ensure that the provider will meet its responsibilities under the law. A corrective action plan or a plan for reorganization shall be shared with the facilitys resident council within a reasonable period of time. | |
| 152 | - | ||
| 153 | - | (f) | |
| 156 | + | (e)This chapter applies equally to for-profit and nonprofit provider entities. | |
| 154 | 157 | ||
| 155 | 158 | ||
| 156 | 159 | ||
| 157 | - | (g) The provider shall share its approved financial plan and any subsequent progress reports its most recent quarterly report with a prospective or incoming resident if that person will likely become a resident prior to within 60 days and before the remediation of the problems and deficiencies identified by the department. | |
| 158 | - | ||
| 159 | - | (g) | |
| 160 | + | (f)This chapter states the minimum requirements to be imposed upon an entity offering or providing continuing care. | |
| 160 | 161 | ||
| 161 | 162 | ||
| 162 | 163 | ||
| 163 | - | ( | |
| 164 | + | (g)Because the authority to enter into continuing care contracts granted by the State Department of Social Services is neither a guarantee of performance by the providers nor an endorsement of any continuing care contract provisions, prospective residents must carefully consider the risks, benefits, and costs before signing a continuing care contract and should be encouraged to seek financial and legal advice before doing so. |