CHAPTER 10. Continuing Care Contracts [1770. - 1793.91.]
Chapter 10 repealed and added by Stats. 1990, Ch. 875, Sec. 2.
§§ 1770–1793.91 · 98 sections
ARTICLE 1. General Provisions §§ 1770–1778 · 21 sections
- § 1770 The Legislature finds, declares, and intends all of the following: (a) Continuing care retirement communities are an alternative for the long-term residential,…
- § 1771 Unless the context otherwise requires, the definitions in this section govern the interpretation of this chapter. (a) (1) “Affiliate” means any person,…
- § 1771.2 (a) An entity shall apply for and hold a currently valid permit to accept deposits before it may enter into a deposit agreement or accept a deposit. (b) A…
- § 1771.3 (a) This chapter shall not apply to either of the following: (1) An arrangement for the care of a person by a relative. (2) An arrangement for the care of a…
- § 1771.4 An entity may conduct a market test for a proposed continuing care retirement community and collect reservation fees from persons interested in residing at the…
- § 1771.5 The department shall not issue a provisional certificate of authority or a certificate of authority to an applicant until the applicant has obtained licenses…
- § 1771.6 (a) Any entity may apply to the department for a Letter of Nonapplicability for reasons other than those specified in Section 1771.3, which states that the…
- § 1771.7 (a) A resident of a continuing care retirement community shall not be deprived of any civil or legal right, benefit, or privilege guaranteed by law, by the…
- § 1771.8 (a) The Legislature finds and declares all of the following: (1) The residents of continuing care retirement communities have a unique and valuable perspective…
- § 1771.10 Each provider shall adopt a comprehensive disaster preparedness plan specifying policies for evacuation, relocation, continued services, reconstruction,…
- § 1772 (a) No report, circular, public announcement, certificate, financial statement, or any other printed matter or advertising material, or oral representation,…
- § 1772.2 (a) All printed advertising materials, including brochures, circulars, public announcements, and similar publications pertaining to continuing care or a…
- § 1773 (a) A provisional certificate of authority or certificate of authority may not be sold, transferred, or exchanged in any manner. A provider may not sell or…
- § 1774 No arrangement allowed by a permit to accept deposits, a provisional certificate or authority, or a certificate of authority issued by the department under…
- § 1775 (a) To the extent that this chapter, as interpreted by the department, conflicts with the statutes, regulations, or interpretations governing the sale or hire…
- § 1776 The department shall adopt, amend, or repeal, in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the…
- § 1776.2 The department may, by any duly authorized representative, inspect and examine any continuing care retirement community, including the books and records…
- § 1776.3 (a) The Continuing Care Contracts Branch of the department shall enter and review each continuing care retirement community in the state at least once every…
- § 1776.4 The department may contract with any entity to provide consultation services. In providing the services, the entity shall conform to the requirements of this…
- § 1776.6 (a) Pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and the Information…
- § 1778 (a) There is hereby created in the State Treasury a fund that shall be known as the CCRC Oversight Fund. The fund shall consist of fees received by the…
ARTICLE 2. Application §§ 1779–1779.10 · 7 sections
- § 1779 (a) An entity shall file an application for a permit to accept deposits and for a certificate of authority with the department, as set forth in this chapter,…
- § 1779.2 (a) Any entity filing an application for a permit to accept deposits and a certificate of authority shall pay an application fee. (b) The applicant shall pay…
- § 1779.4 An application shall contain all of the following: (a) A statement signed by the applicant under penalty of perjury certifying that to the best of the…
- § 1779.6 (a) Within seven calendar days of receipt of an initial application for a permit to accept deposits and a certificate of authority, the department shall…
- § 1779.7 (a) Where any portion of the consideration transferred to an applicant as a deposit or to a provider as consideration for a continuing care contract is…
- § 1779.8 (a) The applicant shall notify the department of material changes in the application information submitted to the department, including the applicant’s…
- § 1779.10 (a) The department shall deny an application for a permit to accept deposits and a certificate of authority if the applicant fails to do any of the following:…
ARTICLE 3. Deposit Subscription Period §§ 1780–1785 · 15 sections
- § 1780 The department shall issue a permit to accept deposits when it has done all of the following: (a) Determined that the application is adequate. (b) Determined…
- § 1780.2 (a) A deposit may be paid in one or several payments, at or after the time the parties enter into the deposit agreement. A deposit shall be paid by cash or…
- § 1780.4 (a) All deposit agreements between the applicant and the depositor shall be in writing and shall contain all information required by this section. (b) All…
- § 1781 (a) All deposits, excluding processing fees, shall be placed in an escrow account. All terms governing the deposit escrow account shall be approved in advance…
- § 1781.2 (a) All deposits shall be delivered to the escrow agent and deposited into the deposit escrow account within five business days after receipt by the applicant.…
- § 1781.4 The deposit escrow account agreement between the applicant and the escrow agent shall include all of the following: (a) The amount of the processing fee. (b) A…
- § 1781.6 All changes to a deposit agreement or deposit escrow account agreement form shall be submitted to, and approved by, the department before use by the applicant.
- § 1781.8 (a) Deposits held in escrow shall be placed in an interest bearing account or invested as provided under subdivision (e) of Section 1781. (b) Interest, income,…
- § 1781.10 No deposit or any other asset held in a deposit escrow account, shall be encumbered or used as collateral for any obligation of the applicant or any other…
- § 1782 (a) An applicant shall not begin construction on any phase of a continuing care retirement community without first obtaining a written acknowledgment from the…
- § 1783 (a) (1) An applicant proposing to convert an existing building to continuing care use shall comply with all the application requirements in Section 1779.4…
- § 1783.2 (a) An escrow agent shall refund to the depositor all amounts required by the depositor’s deposit agreement upon receiving written notice from the applicant…
- § 1783.3 (a) In order to seek a release of escrowed funds, the applicant shall petition in writing to the department and certify to each of the following: (1) The…
- § 1784 (a) If construction of the proposed continuing care retirement community, or applicable phase, has not commenced within 36 months from the date the permit to…
- § 1785 (a) If, at any time prior to issuance of a certificate of authority, the applicant’s average performance over any six-month period does not substantially equal…
ARTICLE 4. Certificate of Authority §§ 1786–1786.2 · 2 sections
- § 1786 (a) The department shall issue a provisional certificate of authority when an applicant has done all of the following: (1) Complied with the approved marketing…
- § 1786.2 (a) The department shall not issue a certificate of authority to an applicant or a provider, until the department determines that each of the following has…
ARTICLE 5. Contract §§ 1787–1788.4 · 4 sections
- § 1787 (a) All continuing care contracts shall be in writing and shall contain all the information required by Section 1788. (b) All continuing care contract forms,…
- § 1788 (a) A continuing care contract shall contain all of the following: (1) The legal name and address of each provider. (2) The name and address of the continuing…
- § 1788.2 (a) A continuing care contract may be canceled without cause by written notice from either party within 90 days from the date of the resident’s initial…
- § 1788.4 (a) During the cancellation period, the provider shall pay all refunds owed to a resident within 14 calendar days after a resident makes possession of the…
ARTICLE 6. Reporting and Reserve Requirements §§ 1789–1793 · 19 sections
- § 1789 (a) A provider shall notify the department and obtain its approval before making any changes to any of the following: its name; its business structure or form…
- § 1789.1 (a) Before executing a deposit agreement or continuing care agreement, or receiving any payment from a depositor or prospective resident, a provider shall…
- § 1789.2 (a) A provider shall provide the department with written notice at least 90 calendar days prior to closing any transaction that results in an encumbrance or…
- § 1789.4 (a) A provider for a continuing care retirement community shall obtain approval from the department before consummating any sale or transfer of the continuing…
- § 1789.6 A provider shall record with the county recorder a “Notice of Statutory Limitation on Transfer” for each community as required by subdivision (aa) of Section…
- § 1789.8 Each provider shall obtain and maintain in effect insurance or a fidelity bond for each agent or employee, who, in the course of his or her agency or…
- § 1790 (a) Each provider that has obtained a provisional or final certificate of authority and each provider that possesses an inactive certificate of authority shall…
- § 1791 (a) An annual fee shall be required of each provider which has obtained a provisional or final certificate of authority. (b) Each annual report submitted…
- § 1792 (a) A provider shall maintain at all times qualifying assets as a liquid reserve in an amount that equals or exceeds the sum of the following: (1) The amount…
- § 1792.2 (a) A provider shall satisfy its liquid reserve obligation with qualifying assets. Qualifying assets are: (1) Cash. (2) Cash equivalents as defined in…
- § 1792.3 (a) Each provider shall include in its liquid reserve a reserve for its long-term debt obligations in an amount equal to the sum of all of the following: (1)…
- § 1792.4 (a) Each provider shall include in its liquid reserve a reserve for its operating expenses in an amount that equals or exceeds 75 days’ net operating expenses.…
- § 1792.5 (a) The provider shall compute its liquid reserve requirement as of the end of the provider’s most recent fiscal yearend based on its audited financial…
- § 1792.6 (a) Any provider offering a refundable contract, or other entity assuming responsibility for refundable contracts, shall maintain a refund reserve in trust for…
- § 1792.7 (a) The Legislature finds and declares all of the following: (1) In continuing care contracts, providers offer a wide variety of living accommodations and care…
- § 1792.8 (a) For purposes of this article, “actuarial study” means an analysis that addresses the current actuarial financial condition of a provider that is performed…
- § 1792.9 (a) All providers shall file annually with the department a financial report disclosing key financial ratios and other key indicators in a form determined by…
- § 1792.10 (a) Each provider that has entered into Type A contracts shall submit to the department, at least once every five years, an actuary’s opinion as to the…
- § 1793 (a) Any provider offering a refundable contract, or other entity assuming responsibility for refundable contracts, shall maintain a refund reserve fund in…
ARTICLE 7. Offenses and Penalties §§ 1793.5–1793.31 · 16 sections
- § 1793.5 (a) An entity that accepts deposits and proposes to promise to provide care without having a current and valid permit to accept deposits is guilty of a…
- § 1793.6 (a) The department may issue citations pursuant to this section containing orders of abatement and assessing civil penalties against any entity that violates…
- § 1793.7 A permit to accept deposits, a provisional certificate of authority, or a certificate of authority shall be forfeited by operation of law when any one of the…
- § 1793.8 A Certificate of Authority shall be automatically inactivated when a provider voluntarily ceases to enter into continuing care contracts with new residents.…
- § 1793.9 (a) In the event of receivership or liquidation, all claims made against a provider based on the provider’s continuing care contracts shall be preferred claims…
- § 1793.11 (a) Any transfer of money or property, pursuant to a continuing care contract found by the department to be executed in violation of this chapter, is voidable…
- § 1793.13 (a) The department may require a provider to submit a financial plan and periodic financial reports if any of the following apply: (1) A provider fails to…
- § 1793.15 (a) When necessary to secure an applicant’s or a provider’s performance of its obligations to depositors or residents, the department may record a notice or…
- § 1793.17 (a) When necessary to secure the interests of depositors or residents, the department may require that the applicant or provider reestablish an escrow account,…
- § 1793.19 The civil, criminal, and administrative remedies available to the department pursuant to this article are not exclusive and may be sought and employed by the…
- § 1793.21 The department, in its discretion, may condition, suspend, or revoke any permit to accept deposits, provisional certificate of authority, or certificate of…
- § 1793.23 (a) If the department conditions, suspends, or revokes any permit to accept deposits, provisional certificate of authority, or certificate of authority issued…
- § 1793.25 (a) During the period that the revocation or suspension action is pending against the permit to accept deposits, provisional certificate of authority, or…
- § 1793.27 (a) If the department finds that any entity has violated Section 1793.5 or one or more grounds exist for conditioning, revoking, or suspending a permit to…
- § 1793.29 In the case of any violation or threatened violation of this chapter, the department may institute a proceeding or may request the Attorney General to…
- § 1793.31 (a) The district attorney of every county may, upon application by the department or its authorized representative, institute and conduct the prosecution of…
ARTICLE 8. Appointment of Administrators §§ 1793.50–1793.62 · 7 sections
- § 1793.50 (a) The department may petition the superior court for an order appointing a qualified administrator to operate a continuing care retirement community, and…
- § 1793.52 The court-appointed administrator shall immediately notify the residents of that appointment and of the status of the continuing care retirement community…
- § 1793.54 If an administrator is appointed to rehabilitate a provider, the administrator may do any of the following: (a) Take possession of and preserve, protect and…
- § 1793.56 (a) The appointed administrator is entitled to reasonable compensation. (b) The costs compensating the administrator may be charged against the assets of the…
- § 1793.58 (a) The department, administrator, or any interested person, upon due notice to the administrator, at any time, may apply to the court for an order terminating…
- § 1793.60 (a) If at any time the department determines that further efforts to rehabilitate the provider would not be in the best interest of the residents or…
- § 1793.62 (a) The department, administrator, or any interested person, upon due notice to the parties, may petition the court for an order terminating the rehabilitation…
ARTICLE 9. Continuing Care Retirement Community Closures §§ 1793.80–1793.84 · 5 sections
- § 1793.80 (a) Notwithstanding any other provisions of law, a provider regulated under this chapter shall, no less than 120 days prior to the intended date of the…
- § 1793.81 No less than 90 days prior to the permanent closure of the continuing care retirement community facility, as defined in paragraph (3) of subdivision (p) of…
- § 1793.82 (a) In the case of a permanent closure, the provider shall offer the resident the choice of the following four options, the terms of which shall not be less…
- § 1793.83 (a) When there is a permanent closure, as defined in paragraph (3) of subdivision (p) of Section 1771, within 30 days of submitting the relocation plan to the…
- § 1793.84 (a) The provider shall submit monthly progress reports to the department detailing the progress and problems associated with the permanent closure, as defined…
ARTICLE 10. Temporary Relocation of Residents §§ 1793.90–1793.91 · 2 sections
- § 1793.90 (a) All providers shall include in resident contracts the procedures to be followed to ensure that residential temporary relocations provide comparable levels…
- § 1793.91 The provider shall set forth specific procedures for the resident to follow regarding relocation to the unit originally vacated, the selection of a new unit,…