BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1751
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1751 (Bloom)
          As Amended  August 19, 2014
          Majority vote
           
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          |ASSEMBLY:  |52-23|(May 28, 2014)  |SENATE: |26-6 |(August 21,    |
          |           |     |                |        |     |2014)          |
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           Original Committee Reference:   AGING & L.T.C.  

           SUMMARY  :  Establishes at least one voting, resident member on  
          the governing body of each continuing care retirement community  
          (CCRC), or at least one resident voting member for each facility  
          on the governing board of a corporation that administers  
          multiple CCRCs.  The measure also calls for quarterly reporting  
          of financial statements with written descriptions of significant  
          variances and internet hosting of annual financial statements.   
          Specifically,  this bill  :  

          1)Requires a CCRC provider to provide quarterly, rather than  
            semi-annual, financial statements of activities comparing  
            actual costs against budgeted costs broken down by expense  
            category.  

          2)Requires written explanations of significant budget variations  
            within those financial statements.  

          3)Requires annual financial reports be posted on an Internet Web  
            site administered by the CCRC.  

          4)Requires each CCRC governing body to accept one resident  
            member with voting rights, or two voting resident members, if  
            the governing board is comprised of 21 people or more, in  
            addition to the non-voting member already authorized to  
            participate.  

          5)Requires boards with more than one CCRC under its  
            jurisdiction, to accept a voting, resident representative from  
            each CCRC.  

          6)Requires CCRC providers with an out-of-state governing body to  
            appoint a committee of officers and partners to meet via  
            teleconference prior to the out-of-state governing body's  








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            regularly scheduled meeting to address resident concerns and  
            to relay them to all officers or partners of the provider.  

           The Senate amendments  :

          1)Assure those entities that provide continuing care retirement  
            community services in California, but have no governing body  
            located within the state, appoint a select committee of its  
            governing body to meet with residents to address concerns of  
            the residents, and to convey those concerns to each member of  
            the governing body.

          2)Assure those entities that provide continuing care retirement  
            community services that are sole proprietors, general  
            partnerships, limited partnerships, limited liability  
            companies or closely held corporations appoint a select  
            committee of its governing body to meet with the residents at  
            each facility at least semiannually, and at least 60 days  
            prior to consideration of any fiscal or administrative changes  
            that increase monthly fees, increase indebtedness, cause  
            construction expansion or contraction of community facilities,  
            or any other material change to the operation or environment  
            of the community, in lieu of appointing a resident to its  
            governing body.  In the case of limited liability companies  
            with corporate members, a nonvoting resident representative  
            shall be invited to the meetings of the governing body of the  
            principle corporation within that Limited Liability  
            Corporation (LLC). 

           EXISTING LAW  :

          1)Provides for the licensure and regulation of Residential Care  
            Facilities for the Elderly by the Department of Social  
            Services (DSS).

          2)Provides for the regulation of continuing care contracts that  
            govern care provided to an elderly resident in a CCRC for the  
            duration of the resident's life, or a term in excess of one  
            year.

          3)Requires the governing body of a CCRC to hold at least  
            semiannual meetings with the residents for the purpose of the  
            free discussion of income and expenditures, financial trends,  
            and issues related to proposed changes in policies, programs,  
            and services.  








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          4)Requires the governing body of a single facility CCRC to  
            accept at least one resident to participate as a nonvoting  
            resident representative to the provider's governing body.  

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           COMMENTS  :  CCRCs offer long-term, continuing care contracts that  
          provide for housing, residential services, and nursing care,  
          usually in one location, and usually for a resident's lifetime.   
          Residents often pay a large up-front payment to join CCRCs, as  
          well as monthly payments.  Major decisions made by CCRC  
          governing boards can affect the cost and quality of life for  
          residents who characteristically live on limited or fixed  
          incomes.
           

          Analysis Prepared by  :    Robert MacLaughlin / AGING & L.T.C. /  
          (916) 319-3990 


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