BILL NUMBER: AB 1751 INTRODUCED
BILL TEXT
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:
SECTION 1. Section 1771.8 of the Health and Safety Code is amended
to read:
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 on the operations of
of, and services provided in
in, the community in which they live.
(2) Resident input into decisions made by the provider is an
important factor in creating an environment of cooperation, reducing
conflict, and ensuring timely response and resolution to issues that
may arise.
(3) Continuing care retirement communities are strengthened when
residents know that their views are heard and respected.
(b) The Legislature encourages continuing care retirement
communities to exceed the minimum resident participation requirements
established by this section by, among other things, the following:
(1) Encouraging residents to form a resident association, and
assisting the residents, the resident association, and its governing
body to keep informed about the operation of the continuing care
retirement community.
(2) Encouraging residents of a continuing care retirement
community or their elected representatives to select residents to
participate as board members of the governing body
of the provider.
(3) Quickly and fairly resolving any dispute, claim, or grievance
arising between a resident and the continuing care retirement
community.
(c) The governing body of a provider, or the designated
representative of the provider, shall hold, at a minimum, semiannual
meetings with the residents of the continuing care retirement
community, or the resident association or its governing body, for the
purpose of the free discussion of subjects including, but not
limited to, income, expenditures, and financial trends and issues as
they apply to the continuing care retirement community and proposed
changes in policies, programs, and services. Nothing in this
This section precludes
does not preclude a provider from taking action or making a
decision at any time, without regard to the meetings required under
this subdivision.
(d) At least 30 days prior to the implementation of any
an increase in the monthly care fee, the
designated representative of the provider shall convene a meeting, to
which all residents shall be invited, for the purpose of discussing
the reasons for the increase, the basis for determining the amount of
the increase, and the data used for calculating the increase. This
meeting may coincide with the semiannual meetings provided
for required in subdivision (c). At least 14
days prior to the meeting to discuss any an
increase in the monthly care fee, the provider shall make
available to each resident or resident household comparative data
showing the budget for the upcoming year, the current year's budget,
and actual and projected expenses for the current year, and a copy
shall be posted in a conspicuous location at each facility.
(e) The governing body of a provider or the designated
representative of the provider shall provide residents with at least
14 days' advance notice of each meeting provided for in subdivisions
(c) and (d), and shall permit residents attending the meeting to
present issues orally and in writing. The governing body of a
provider or the designated representative of the provider shall post
the notice of, and the agenda for, the meeting in a conspicuous place
in the continuing care retirement community at least 14 days prior
to the meeting. The governing body of a provider or the designated
representative of the provider shall make available to residents of
the continuing care retirement community upon request the agenda and
accompanying materials at least seven days prior to the meeting.
(f) Each A provider shall 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, q uarterly, with a written
explanation of all significant budget variances, and shall
consult with the resident association or its governing body, or, if
neither exists, with a committee of residents, during the annual
budget planning process. The effectiveness of consultations during
the annual budget planning process shall be evaluated at a minimum
every two years by the continuing care retirement community
administration. The evaluation, including any policies adopted
relating to cooperation with residents, shall be made available to
the resident association or its governing body, or, if neither
exists, to a committee of residents at least 14 days prior to the
next semiannual meeting of residents and the provider's governing
body provided for in subdivision (c), and a copy of the evaluation
shall be posted in a conspicuous location at each facility.
(g) Each A provider shall, within 10
days after the annual report required pursuant to Section 1790 is
submitted to the department, provide, at a central and conspicuous
location in the community, a copy of the annual report, including the
multifacility statement of activities , and including
and a copy of the annual audited financial
statement, but excluding personal confidential information.
(h) A provider, who has entered into Type A contracts, shall,
within 10 days after the annual report required pursuant to Section
1790 is submitted to the department, make available in a conspicuous
location on the provider's Internet Web site, a copy of the annual
report, including the multifacility statement of activities and a
copy of the annual audited financial statement, but excluding
confidential personal information.
(h) Each
(i) A provider shall maintain, as
public information, available upon request to residents, prospective
residents, and the public, minutes of the board of director'
s meetings held by the provider's governing body
and shall retain these records for at least three years from the
date the records were filed or issued.
(i)
(j) The governing body of a provider that is not part
of a multifacility organization with more than one continuing care
retirement community in the state shall accept at
both of the following:
(1) At least one resident of the
continuing care retirement community it operates to participate as a
nonvoting resident representative to the provider's governing body.
(2) At least three residents of the continuing care retirement
community it operates or a number of residents equal to 25 percent of
the members of the provider's governing board, whichever is greater,
to participate as voting members of the provider's governing body.
(j)
(k) In a multifacility organization having more than
one continuing care retirement community in the state, the governing
body of the multifacility organization shall elect
do both of the following:
(1) Elect either to have at least
one nonvoting resident representative to the provider's governing
body for each California-based continuing care retirement community
the provider operates or to have a resident-elected committee
composed of representatives of the residents of each California-based
continuing care retirement community that the provider operates
select or nominate at least one nonvoting resident representative to
the provider's governing body for every three California-based
continuing care retirement communities or fraction thereof that the
provider operates. If a multifacility organization elects to have one
representative for every three communities that the provider
operates, the provider shall provide to the president of the
residents association of each of the communities that do not have a
resident representative, the same notice of board
meetings, board packets, minutes, and other
materials as the resident representative. At the reasonable
discretion of the provider, information related to litigation,
personnel, competitive advantage, or confidential information that is
not appropriate to disclose, may be withheld.
(2) Elect to have at least three residents from any of the
continuing care retirement communities it operates or a number of
residents equal to 25 percent of the members of the provider's
governing board, whichever is greater, to participate as voting
members of the provider's governing body. If there are communities
that do not have a resident from the community as a voting member of
the provider's governing body, the provider shall provide to the
president of the residents association of each of those communities,
the same notice of meetings, packets, minutes, and other materials as
the resident voting members. At the reasonable discretion of the
provider, information related to litigation, personnel, competitive
advantage, or confidential information that is not appropriate to
disclose, may be withheld.
(k)
(l) In order to encourage innovative and alternative
models of resident involvement, a resident
residents selected pursuant to subdivision (i)
subdivision (j) or (k) to participate as a
resident representative or member to the provider's
governing body may, at the option of the resident association, be
selected in any one of the following ways:
(1) By a majority vote of the resident association of a provider
or by a majority vote of a resident-elected committee of residents of
a multifacility organization.
(2) If no resident association exists, any resident may organize a
meeting of the majority of the residents of the continuing care
retirement community to select or nominate residents to represent
them before on the governing body.
(3) Any other method designated by the resident association.
(l)
(m) The resident association, or organizing resident, or
in the case of a multifacility organization, the resident-elected
committee of residents, shall give residents of the continuing care
retirement community at least 30 days' advance notice of the meeting
to select a resident representative and members and shall
post the notice in a conspicuous place at the continuing care
retirement community.
(m)
(n) (1) Except as provided in subdivision (n),
the The resident representative and members
shall receive the same notice of board
meetings, board packets, minutes, and other
materials as other members of the provider's
governing body and shall be permitted to attend, speak, and
participate in all meetings of the board
governing body .
(2) Resident representatives and members may share
information from board meetings with other
residents, unless the information is confidential or doing so would
violate fiduciary duties to the provider. In addition, a
resident representative shall be permitted to attend meetings of the
board committee or committees that review the annual budget of the
facility or facilities and recommend increases in monthly care fees.
The resident shall receive the same notice of committee meetings,
information packets, minutes, and other materials as committee
members, and shall be permitted to attend, speak at, and participate
in, committee meetings. Resident representatives and
members shall perform their duties in good faith and with such
care, including reasonable inquiry, as an ordinarily prudent person
in a like position would use under similar circumstances.
(n) Notwithstanding subdivision (m), the governing body may
exclude resident representatives from its executive sessions and from
receiving board materials to be discussed during executive session.
However, resident representatives shall be included in executive
sessions and shall receive all board materials to be discussed during
executive sessions related to discussions of the annual budgets,
increases in monthly care fees, indebtedness, and expansion of new
and existing continuing care retirement communities.
(o) The provider shall pay all reasonable travel costs for
the resident representative.
representatives and members.
(p) The provider shall disclose in writing the extent of resident
involvement with the board to prospective residents.
(q) Nothing in this section prohibits a A
provider is not prohibited from exceeding the
minimum resident participation requirements of this section by, for
example, having more resident meetings or more resident
representatives or members to the board
provider's governing body than required or by having one
or more residents on the provider's governing body who are selected
with the active involvement of residents.
(r) On or before April 1, 2003, the department shall do all of the
following:
(1) Make recommendations to the Legislature as to whether any
changes in current law regarding resident representation to the board
is needed.
(2) Provide written guidelines available to residents and
providers that address issues related to board participation,
including rights and responsibilities, and that provide guidance on
the extent to which resident representatives who are not voting
members of the board have a duty of care, loyalty, and obedience to
the provider and the extent to which providers can classify
information as confidential and not subject to disclosure by resident
representatives to other residents.
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.