BILL NUMBER: AB 1044	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Jones

                        FEBRUARY 27, 2009

   An act relating to continuing care retirement communities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1044, as introduced, Jones. Continuing care retirement
communities.
   Existing law generally regulates continuing care retirement
communities, as defined.
   This bill would state that it is the intent of the Legislature to
transfer regulatory responsibility for continuing care retirement
communities from the Department of Social Services to the Department
of Insurance.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature hereby finds and declares the
following:
   (a) California is home to nearly four million people over 65 years
of age; the largest older adult population in the nation. This
number is expected to more than double over the next several decades
as the baby boomers begin reaching this milestone.
   (b) Continuing care retirement communities are an alternative for
the long-term residential, social, and health care needs of
California's elderly residents and seek to provide a continuum of
care, minimize transfer trauma, and allow services to be provided in
an appropriately licensed setting.
   (c) Because elderly residents often both expend a significant
portion of their savings in order to purchase care in a continuing
care retirement community and expect to receive care at their
continuing care retirement community for the rest of their lives,
tragic consequences can result if a continuing care provider becomes
insolvent or unable to provide responsible care.
   (d) The Legislature has recognized the importance of continuing
care provider solvency and the need for disclosure concerning the
terms of agreements made between prospective residents and the
continuing care provider, and concerning the operations of the
continuing care retirement community.
   (e) The Legislature defines continuing care contracts in terms of
a promise of the future provision of services which are analogous to
insurance products.
   (f) Continuing care retirement communities have long-term
obligations and may have a corporate or capital structure similar to
insurance holding company systems, as defined in the Insurance Code.
   (g) Therefore, it is the intent of the Legislature to transfer
regulatory responsibility for continuing care retirement communities
from the Department of Social Services to the Department of
Insurance.