Amended in Senate April 29, 2013

Senate Bill No. 781

Introduced by Senator Lara

February 22, 2013

An act to amend Section begin delete 1245.060 of the Code of Civil Procedure, relating to civil actions end delete begin insert 1792.7 of the Health and Safety Code, relating to continuing care contracts end insert .

LEGISLATIVE COUNSEL’S DIGEST

SB 781, as amended, Lara. begin delete Eminent domain: precondemnation activities. end delete begin insert Continuing care contracts. end insert

begin insert

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 imposes certain financial reporting and reserve requirements on providers of continuing care. Existing law requires that a provider that has entered into a Type A contract, as defined, file with the department an actuary’s opinion as to the actuarial financial condition of the provider’s continuing care operations.

end insert begin insert

This bill would additionally require a provider that has entered into a Type A contract to make the above-described actuarial opinion available online or to a current resident upon request.

end insert begin delete

Existing law authorizes any person authorized to acquire property for a particular use by eminent domain to enter upon property to engage in specified precondemnation activities that are reasonably related to acquisition or use of the property. Existing law provides that if the entry and activities upon the property cause actual damage to or substantial interference with the possession or use of the property, the owner may recover for the damage or interference in a civil action.

end delete begin delete

This bill would make technical, nonsubstantive changes to this provision of law.

end delete

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

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 1792.7 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

1792.7.  

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

(1) In continuing care contracts, providers offer a wide variety
of living accommodations and care programs for an indefinite or
extended number of years in exchange for substantial payments
by residents.

(2) The annual reporting and reserve requirements for each
continuing care provider should include a report that summarizes
the provider’s recent and projected performance in a form useful
to residents, prospective residents, and the department.

(3) Certain providers enter into “life care contracts” or similar
contracts with their residents. Periodic actuarial studies that
examine the actuarial financial condition of these providers will
help to assure their long-term financial soundness.

(b) Each provider shall annually file with the department a report
that shows certain key financial indicators for the provider’s past
five years, based on the provider’s actual experience, and for the
upcoming five years, based on the provider’s projections. Providers
shall file their key indicator reports in the manner required by
Section 1792.9 and in a form prescribed by the department.

(c) Each provider that has entered into Type A contracts shall
file with the department an actuary’s opinion as to the actuarial
financial condition of the provider’s continuing care operations in
the manner required by Section 1792.10 begin insert , and shall make the
actuary’s opinion available online or to a current resident upon
request end insert .

begin delete

SECTION 1.  

Section 1245.060 of the Code of Civil Procedure
is amended to read:

1245.060.  

(a) If the entry and activities upon property cause
actual damage to or substantial interference with the possession
or use of the property, whether or not a claim has been presented
in compliance with Part 3 (commencing with Section 900) of
Division 3.6 of Title 1 of the Government Code, the owner may
recover for the damage or interference in a civil action or by
application to the court under subdivision (c).

(b) The prevailing claimant in an action or proceeding under
this section shall be awarded his or her costs and, if the court finds
that any of the following occurred, his or her litigation expenses
incurred in proceedings under this article:

(1) The entry was unlawful.

(2) The entry was lawful but the activities upon the property
were abusive or lacking in due regard for the interests of the owner.

(3) There was a failure to comply substantially with the terms
of an order made under Section 1245.030 or 1245.040.

(c) If funds are on deposit under this article, upon application
of the owner, the court shall determine and award the amount the
owner is entitled to recover under this section and shall order such
amount paid out of the funds on deposit. If the funds on deposit
are insufficient to pay the full amount of the award, the court shall
enter judgment for the unpaid portion.

(d) Nothing in this section affects the availability of any other
remedy the owner may have for the damaging of his or her
property.

end delete