BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1433
                                                                  Page  1

          Date of Hearing:   January 21, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    AB 1433 (Eng) - As Amended:  January 4, 2010 

          Policy Committee:                              Human  
          ServicesVote:6 - 0 

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill defines residential temporary relocation of continuing  
          care retirement community (CCRC) residents and requires  
          continuing care contracts to state the right of CCRC residents  
          to terminate the contract after 18 months of a temporary  
          relocation.  

           FISCAL EFFECT  

          Costs associated with this legislation would be minimal and  
          absorbable within existing resources. 

           COMMENTS  


           1)Purpose  . This bill establishes guidelines for continuing care  
            contracts and for protecting CCRC residents' rights during a  
            remodel, renovation, or rebuilding of a CCRC or part of a CCRC  
            that will temporarily displace residents.  This bill requires  
            that continuing care contracts provide that a resident has the  
            right to terminate his or her contract if a residential  
            temporary relocation exceeds 18 months.  This bill further  
            requires that the contract provide for the refund of monthly  
            and entrance fees if the contract is terminated.


           2)Continuing Care Retirement Communities (CCRC)  . A CCRC is a  
            community that allows a resident to receive increasingly  
            intensive levels of care as they age and their needs increase.  
            Generally, residents sign a contract with the facility which  
            outlines the care expectations. Continuing care retirement  








                                                                  AB 1433
                                                                  Page  2

            communities can be apartment-type dwellings, high-rise  
            buildings, a subdivision setting, or any other housing design.  
             Most continuing care communities have three levels of care:   
            indpendent living, assisted living and skilled nursing care.   
            As a resident's needs increase, he or she moves to a higher  
            level of care within the facility. The Department of Social  
            Services (DSS) regulates CCRCs.



           3)Related Legislation  . AB 407 (Beall; Chapter 442, Statutes of  
            2009) imposed patient protection requirements on continuing  
            care retirement communities (CCRC) in the event of their  
            closure.


            AB 949 (Krekorian; Chapter 686, Statutes of 2007) established  
            procedures and duties for a residential care facility for the  
            elderly prior to transferring a resident to another facility  
            or living arrangement as a result of forfeiture of a license  
            or change of the use of the facility.


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081