BILL NUMBER: AB 1751 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 26, 2014
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 amended, 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, provider 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
body 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, body, 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)
(3) 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, and services
provided 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 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. This section 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 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 required in subdivision (c). At least 14 days
prior to the meeting to discuss 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) 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 quarterly, 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) 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
and 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 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.
(i)
(h) A provider shall maintain, as public information,
available upon request to residents, prospective residents, and the
public, minutes of the 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.
(j)
(i) 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 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,
body, whichever is greater, to participate as voting
members of the provider's governing body.
(k)
(j) In a multifacility organization having more than
one continuing care retirement community in the state, the governing
body of the multifacility organization shall 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 meetings, 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, body, 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.
(l)
(k) In order to encourage innovative and alternative
models of resident involvement, residents selected pursuant to
subdivision (j) or (k) (i) or (j) 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 on the governing body.
(3) Any other method designated by the resident association.
(m)
(l) 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.
(n)
(m) (1) The resident representative
Except as provided in subdivision (n), resident representatives
and members shall receive the same notice of meetings, 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 governing body.
(2) Resident representatives and members may share information
from meetings with other residents, unless the information is
confidential or doing so would violate fiduciary duties to the
provider. A resident representative shall be
permitted to attend meetings of the governing body committee or
committees that review the annual budget of the facility or
facilities and recommend increases in monthly care fees. The resident
representative shall receive the same notice of meetings,
information, packets, minutes, and other materials as committee
members, and shall be permitted to attend, speak, and participate in
the 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 provider's governing body
may exclude resident representatives from its executive sessions and
from receiving meeting materials to be discussed during executive
session. However, resident representatives shall be included in
executive sessions and shall receive all meeting 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
resident representatives and members.
(p) The provider shall disclose in writing the extent of resident
involvement with the board governing body
to prospective residents.
(q) 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 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.
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.