BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 407
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 407 (Beall and Eng)
          As Amended  September 3, 2009
          Majority vote
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |80-0 |(May 11, 2009)  |SENATE: |38-0 |(September 9,  |
          |           |     |                |        |     |2009)          |
           ----------------------------------------------------------------- 
            
           Original Committee Reference:    HUM. S.  

           SUMMARY  :  Imposes requirements on continuing care retirement  
          communities (CCRCs) in the event of their permanent closure.

           The Senate amendments  are non-substantive, correction  
          amendments.

           AS PASSED BY THE ASSEMBLY  , this bill imposed various  
          requirements CCRC providers in the event of a permanent CCRC  
          closure.  
           
           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, minor and absorbable costs of less than $75,000  
          General Fund for DSS to receive closure plans, monitor facility  
          closures, and impose penalties on providers when necessary.   
          According to the Senate Appropriations Committee, pursuant to  
          Senate Rule 28l8, negligible state costs.

           COMMENTS  :  While current law regulates the establishment and  
          operation of CCRCs, there are minimal regulations governing what  
          happens when a facility must close.  This bill will regulate  
          permanent closures of CCRCs and protect elderly residents from  
          medical risk and financial harm.  This bill will require  
          operators to provide at least 120 days advance notice of  
          permanent closures and to adopt a relocation plan to ensure that  
          the closure is orderly and all residents are adequately provided  
          for.

          The Senate amendments are non-substantive and correct technical  
          drafting errors.  There is no known opposition to this bill.

           
          Analysis Prepared by  :    Eric Gelber / HUM. S. / (916) 319-2089 









                                                                  AB 407
                                                                  Page  2

                                                               FN: 0002810