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