Dave Cortese
- Democratic
- Senator
- District 15
Author
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 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 a link to the approved budget for the Continuing Care Contracts Section to be posted on the department's 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 periodic financial reports in the above circumstances, and if the department receives notice with specified information from a provider within 2 weeks after the end of a calendar month. The bill would require the financial plan and the periodic financial reports to be distributed as specified, including to the facility's resident council or association within 10 calendar days of submission to the department. The bill would permit a provider to submit a separate version of the financial plan with trade secret information redacted and would require the department to approve or disapprove of the plan and the redacted version of the plan. The bill would require the approved financial plan, the approved redacted form of the plan, any revisions, and any subsequent periodic report to be shared with a prospective or incoming resident no less than 60 calendar days before entering into a continuing care contract until the time the provider has corrected the problems and deficiencies, except when a prospective or incoming resident has an urgent need for placement and the resident completes a declaration, as specified. Existing law defines a repayable contract as a continuing care contract that includes a promise to repay all or a portion of an entrance fee that is conditioned upon reoccupancy or resale of the unit previously occupied by the resident. This bill would prohibit a provider from keeping a unit off market to avoid repaying all or a portion of the entrance fee of a repayable contract.
Chaptered by Secretary of State. Chapter 538, Statutes of 2022.
Approved by the Governor.
Enrolled and presented to the Governor at 3 p.m.
Assembly amendments concurred in. (Ayes 40. Noes 0. Page 5062.) Ordered to engrossing and enrolling.
Read third time. Passed. (Ayes 76. Noes 0. Page 5929.) Ordered to the Senate.
In Senate. Concurrence in Assembly amendments pending.
Read second time. Ordered to third reading.
From committee: Do pass. (Ayes 15. Noes 0.) (August 10).
August 3 hearing postponed by committee.
From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR.
From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 28). Re-referred to Com. on APPR.
Re-referred to Com. on RLS. pursuant to Assembly Rule 96.
In Assembly. Read first time. Held at Desk.
Read third time. Passed. (Ayes 37. Noes 0. Page 1057.) Ordered to the Assembly.
Read second time. Ordered to third reading.
From committee: Be ordered to second reading pursuant to Senate Rule 28.8.
Set for hearing May 3.
Read second time and amended. Re-referred to Com. on APPR.
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 685.) (April 6).
Set for hearing April 6.
From printer. May be acted upon on or after March 24.
Joint Rule 55 suspended. (Ayes 32. Noes 4. Page 272.)
(Ayes 32. Noes 4.)
Art. IV. Sec. 8(a) of the Constitution dispensed with.
Read first time.
Introduced. To Com. on RLS. for assignment. To print.
| Bill Text Versions | Format |
|---|---|
| SB707 | HTML |
| 02/19/21 - Introduced | |
| 04/08/21 - Amended Senate | |
| 08/01/22 - Amended Assembly | |
| 08/26/22 - Enrolled | |
| 09/25/22 - Chaptered |
| Document | Format |
|---|---|
| 04/02/21- Senate Human Services | |
| 05/05/21- Sen. Floor Analyses | |
| 06/27/22- Assembly Human Services | |
| 08/09/22- Assembly Appropriations | |
| 08/12/22- ASSEMBLY FLOOR ANALYSIS | |
| 08/19/22- Sen. Floor Analyses |
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