BILL ANALYSIS Ó AB 1751 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1751 (Bloom) As Amended August 19, 2014 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |52-23|(May 28, 2014) |SENATE: |26-6 |(August 21, | | | | | | |2014) | ----------------------------------------------------------------- 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 AB 1751 Page 2 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. AB 1751 Page 3 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 FN: 0005264