California Legislature—2013–14 Regular Session

Assembly BillNo. 1751


Introduced by Assembly Member Bloom

February 14, 2014


An act to amend Section 1771.8 of the Health and Safety Code, relating to continuing care.

LEGISLATIVE COUNSEL’S DIGEST

AB 1751, as introduced, Bloom. Continuing care retirement communities.

(1) Existing law provides for the regulation by the State Department of Social Services of activities relating to continuing care contracts that govern care provided to an elderly resident in a continuing care retirement community for the duration of the resident’s life or a term in excess of one year. Existing law declares the Legislature’s finding that the residents of continuing care retirement communities have a unique and valuable perspective on the operations of, and services provided in, the community in which they live and should have input into decisions made by the provider.

Existing law requires every continuing care retirement community provider to make available to the resident association or its governing body, or if neither exists, to a committee of residents, a financial statement of activities for that facility comparing actual costs to budgeted costs broken down by expense category, not less than semiannually. Existing law also requires a provider to provide a copy of the annual report at a central and conspicuous location in the community. A violation of these provisions is punishable as a misdemeanor.

This bill would instead require the financial statement to be provided not less than quarterly, and would require it to include a written explanation of all significant budget variances. This bill would additionally require a provider, who has entered into certain contracts, to make a copy of the annual report available on its Internet Web site. By expanding the scope of a crime, this bill would impose a state-mandated local program.

(2) Existing law requires the governing body of a provider to accept at least one resident of the continuing care retirement community it operates to participate as a nonvoting resident representative to the governing body or one in 3 of its communities.

This bill would additionally require the governing board to accept at least 3 residents of the continuing care retirement community it operates or a number of residents equal to 25% of the members of the provider’s governing board, whichever is greater, to participate as voting members of the provider’s governing body, and would make other technical and conforming changes.

(3) Existing law authorizes the governing body to exclude resident representatives from its executive sessions and from receiving certain information.

This bill would delete those provisions.

(4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 1771.8 of the Health and Safety Code is
2amended to read:

3

1771.8.  

(a) The Legislature finds and declares all of the
4following:

5(1) The residents of continuing care retirement communities
6have a unique and valuable perspective on the operationsbegin delete ofend deletebegin insert of,end insert
7 and services providedbegin delete inend deletebegin insert in,end insert the community in which they live.

8(2) Resident input into decisions made by the provider is an
9important factor in creating an environment of cooperation,
10reducing conflict, and ensuring timely response and resolution to
11issues that may arise.

P3    1(3) Continuing care retirement communities are strengthened
2when residents know that their views are heard and respected.

3(b) The Legislature encourages continuing care retirement
4communities to exceed the minimum resident participation
5requirements established by this section by, among other things,
6the following:

7(1) Encouraging residents to form a resident association, and
8assisting the residents, the resident association, and its governing
9body to keep informed about the operation of the continuing care
10retirement community.

11(2) Encouraging residents of a continuing care retirement
12community or their elected representatives to select residents to
13participate asbegin delete boardend delete members of the governing body of the
14provider.

15(3) Quickly and fairly resolving any dispute, claim, or grievance
16arising between a resident and the continuing care retirement
17community.

18(c) The governing body of a provider, or the designated
19representative of the provider, shall hold, at a minimum,
20semiannual meetings with the residents of the continuing care
21retirement community, or the resident association or its governing
22body, for the purpose of the free discussion of subjects including,
23but not limited to, income, expenditures, and financial trends and
24issues as they apply to the continuing care retirement community
25and proposed changes in policies, programs, and services.begin delete Nothing
26in thisend delete
begin insert Thisend insert sectionbegin delete precludesend deletebegin insert does not precludeend insert a provider from
27taking action or making a decision at any time, without regard to
28the meetings required under this subdivision.

29(d) At least 30 days prior to the implementation ofbegin delete anyend deletebegin insert anend insert
30 increase in the monthly care fee, the designated representative of
31the provider shall convene a meeting, to which all residents shall
32be invited, for the purpose of discussing the reasons for the
33increase, the basis for determining the amount of the increase, and
34the data used for calculating the increase. This meeting may
35coincide with the semiannual meetingsbegin delete provided forend deletebegin insert requiredend insert in
36subdivision (c). At least 14 days prior to the meeting to discuss
37begin delete anyend deletebegin insert anend insert increase in the monthly care fee, the provider shall make
38available to each resident or resident household comparative data
39showing the budget for the upcoming year, the current year’s
P4    1budget, and actual and projected expenses for the current year, and
2a copy shall be posted in a conspicuous location at each facility.

3(e) The governing body of a provider or the designated
4representative of the provider shall provide residents with at least
514 days’ advance notice of each meeting provided for in
6subdivisions (c) and (d), and shall permit residents attending the
7meeting to present issues orally and in writing. The governing
8body of a provider or the designated representative of the provider
9shall post the notice of, and the agenda for, the meeting in a
10conspicuous place in the continuing care retirement community
11at least 14 days prior to the meeting. The governing body of a
12provider or the designated representative of the provider shall make
13available to residents of the continuing care retirement community
14upon request the agenda and accompanying materials at least seven
15days prior to the meeting.

16(f) begin deleteEach end deletebegin insertA end insertprovider shall make available to the resident
17association or its governing body, or if neither exists, to a
18committee of residents, a financial statement of activities for that
19facility comparing actual costs to budgeted costs broken down by
20expense category, not less thanbegin delete semiannually,end deletebegin insert qend insertbegin insertuarterly, with a
21written explanation of all significant budget variances,end insert
and shall
22consult with the resident association or its governing body, or, if
23neither exists, with a committee of residents, during the annual
24budget planning process. The effectiveness of consultations during
25the annual budget planning process shall be evaluated at a
26minimum every two years by the continuing care retirement
27community administration. The evaluation, including any policies
28adopted relating to cooperation with residents, shall be made
29available to the resident association or its governing body, or, if
30neither exists, to a committee of residents at least 14 days prior to
31the next semiannual meeting of residents and the provider’s
32governing body provided for in subdivision (c), and a copy of the
33evaluation shall be posted in a conspicuous location at each facility.

34(g) begin deleteEach end deletebegin insertA end insertprovider shall, within 10 days after the annual report
35required pursuant to Section 1790 is submitted to the department,
36provide, at a central and conspicuous location in the community,
37a copy of the annual report, including the multifacility statement
38of activitiesbegin delete, and includingend deletebegin insert andend insert a copy of the annual audited
39financial statement, but excluding personal confidential
40information.

begin insert

P5    1(h) A provider, who has entered into Type A contracts, shall,
2within 10 days after the annual report required pursuant to Section
31790 is submitted to the department, make available in a
4conspicuous location on the provider’s Internet Web site, a copy
5of the annual report, including the multifacility statement of
6activities and a copy of the annual audited financial statement,
7but excluding confidential personal information.

end insert
begin delete

8(h) Each

end delete

9begin insert(i)end insertbegin insertend insertbegin insertA end insertprovider shall maintain, as public information, available
10upon request to residents, prospective residents, and the public,
11minutes of thebegin delete board of director’send delete meetingsbegin insert held by the provider’s
12governing bodyend insert
and shall retain these records for at least three
13years from the date the records were filed or issued.

begin delete

14(i)

end delete

15begin insert(j)end insert The governing body of a provider that is not part of a
16multifacility organization with more than one continuing care
17retirement community in the state shall acceptbegin delete atend deletebegin insert both of the
18following:end insert

19begin insert (1)end insertbegin insertend insertbegin insertAt end insertleast one resident of the continuing care retirement
20community it operates to participate as a nonvoting resident
21representative to the provider’s governing body.

begin insert

22(2) At least three residents of the continuing care retirement
23community it operates or a number of residents equal to 25 percent
24of the members of the provider’s governing board, whichever is
25greater, to participate as voting members of the provider’s
26governing body.

end insert
begin delete

27(j)

end delete

28begin insert(k)end insert In a multifacility organization having more than one
29continuing care retirement community in the state, the governing
30body of the multifacility organization shallbegin delete electend deletebegin insert do both of the
31following:end insert

32begin insert(1)end insertbegin insertend insertbegin insertElect end inserteither to have at least one nonvoting resident
33representative to the provider’s governing body for each
34California-based continuing care retirement community the
35provider operates or to have a resident-elected committee composed
36of representatives of the residents of each California-based
37continuing care retirement community that the provider operates
38select or nominate at least one nonvoting resident representative
39to the provider’s governing body for every three California-based
40continuing care retirement communities or fraction thereof that
P6    1the provider operates. If a multifacility organization elects to have
2one representative for every three communities that the provider
3operates, the provider shall provide to the president of the residents
4association of each of the communities that do not have a resident
5representative, the same notice ofbegin delete boardend delete meetings,begin delete boardend delete packets,
6minutes, and other materials as the resident representative. At the
7reasonable discretion of the provider, information related to
8litigation, personnel, competitive advantage, or confidential
9information that is not appropriate to disclose, may be withheld.

begin insert

10(2) Elect to have at least three residents from any of the
11continuing care retirement communities it operates or a number
12of residents equal to 25 percent of the members of the provider’s
13governing board, whichever is greater, to participate as voting
14members of the provider’s governing body. If there are
15communities that do not have a resident from the community as a
16voting member of the provider’s governing body, the provider
17shall provide to the president of the residents association of each
18of those communities, the same notice of meetings, packets,
19minutes, and other materials as the resident voting members. At
20the reasonable discretion of the provider, information related to
21litigation, personnel, competitive advantage, or confidential
22information that is not appropriate to disclose, may be withheld.

end insert
begin delete

23(k)

end delete

24begin insert(l)end insert In order to encourage innovative and alternative models of
25resident involvement,begin delete a residentend deletebegin insert residentsend insert selected pursuant to
26begin delete subdivision (i)end deletebegin insert subdivision (j) or (k)end insert to participate as a resident
27representativebegin insert or memberend insert to the provider’s governing body may,
28at the option of the resident association, be selected in any one of
29the following ways:

30(1) By a majority vote of the resident association of a provider
31or by a majority vote of a resident-elected committee of residents
32of a multifacility organization.

33(2) If no resident association exists, any resident may organize
34a meeting of the majority of the residents of the continuing care
35 retirement community to select or nominate residents to represent
36thembegin delete beforeend deletebegin insert onend insert the governing body.

37(3) Any other method designated by the resident association.

begin delete

38(l)

end delete

39begin insert(m)end insert The resident association, or organizing resident, or in the
40case of a multifacility organization, the resident-elected committee
P7    1of residents, shall give residents of the continuing care retirement
2community at least 30 days’ advance notice of the meeting to select
3a resident representativebegin insert and membersend insert and shall post the notice in
4a conspicuous place at the continuing care retirement community.

begin delete

5(m)

end delete

6begin insert(n)end insert (1) begin deleteExcept as provided in subdivision (n), the end deletebegin insertThe end insertresident
7representativebegin insert and membersend insert shall receive the same notice ofbegin delete boardend delete
8 meetings,begin delete boardend delete packets, minutes, and other materials asbegin insert otherend insert
9 membersbegin insert of the provider’s governing bodyend insert and shall be permitted
10to attend, speak, and participate in all meetings of thebegin delete boardend delete
11begin insert governing bodyend insert.

12(2) Resident representativesbegin insert and membersend insert may share information
13frombegin delete boardend delete meetings with other residents, unless the information
14is confidential or doing so would violate fiduciary duties to the
15provider.begin delete In addition, a resident representative shall be permitted
16to attend meetings of the board committee or committees that
17review the annual budget of the facility or facilities and recommend
18increases in monthly care fees. The resident shall receive the same
19notice of committee meetings, information packets, minutes, and
20other materials as committee members, and shall be permitted to
21attend, speak at, and participate in, committee meetings.end delete
Resident
22representativesbegin insert and membersend insert shall perform their duties in good
23faith and with such care, including reasonable inquiry, as an
24ordinarily prudent person in a like position would use under similar
25circumstances.

begin delete

26(n) Notwithstanding subdivision (m), the governing body may
27exclude resident representatives from its executive sessions and
28from receiving board materials to be discussed during executive
29session. However, resident representatives shall be included in
30executive sessions and shall receive all board materials to be
31discussed during executive sessions related to discussions of the
32annual budgets, increases in monthly care fees, indebtedness, and
33expansion of new and existing continuing care retirement
34communities.

end delete

35(o) The provider shall pay all reasonable travel costs forbegin delete theend delete
36 residentbegin delete representative.end deletebegin insert representatives and members.end insert

37(p) The provider shall disclose in writing the extent of resident
38involvement with the board to prospective residents.

39(q) begin deleteNothing in this section prohibits a end deletebegin insertA end insertproviderbegin insert is not
40prohibitedend insert
from exceeding the minimum resident participation
P8    1requirements of this section by, for example, having more resident
2meetings or more resident representativesbegin insert or membersend insert to thebegin delete boardend delete
3begin insert provider’s governing bodyend insert than required or by having one or more
4residents on the provider’s governing body who are selected with
5the active involvement of residents.

begin delete

6(r) On or before April 1, 2003, the department shall do all of
7the following:

8(1) Make recommendations to the Legislature as to whether any
9changes in current law regarding resident representation to the
10board is needed.

11(2) Provide written guidelines available to residents and
12providers that address issues related to board participation,
13including rights and responsibilities, and that provide guidance on
14the extent to which resident representatives who are not voting
15members of the board have a duty of care, loyalty, and obedience
16to the provider and the extent to which providers can classify
17information as confidential and not subject to disclosure by resident
18representatives to other residents.

end delete
19

SEC. 2.  

No reimbursement is required by this act pursuant to
20Section 6 of Article XIII B of the California Constitution because
21the only costs that may be incurred by a local agency or school
22district will be incurred because this act creates a new crime or
23infraction, eliminates a crime or infraction, or changes the penalty
24for a crime or infraction, within the meaning of Section 17556 of
25the Government Code, or changes the definition of a crime within
26the meaning of Section 6 of Article XIII B of the California
27Constitution.



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