BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1433|
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THIRD READING
Bill No: AB 1433
Author: Eng (D), et al
Amended: 6/30/10 in Senate
Vote: 21
SENATE HUMAN SERVICES COMMITTEE : 5-0, 6/22/10
AYES: Liu, Emmerson, Romero, Runner, Yee
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 68-0, 1/27/10 (Consent) - See last page
for vote
SUBJECT : Continuing care contracts: residential
temporary relocation
SOURCE : Aging Services of California
DIGEST : This bill defines residential temporary
relocations in the context of continuing care contracts of
residents who live in continuing care retirement
communities, and establishes related rights, requirements,
and procedures.
ANALYSIS :
Existing law
1. Provides for the regulation by the Department of Social
Services (DSS) of activities relating to continuing care
CONTINUED
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contracts that govern care provided to elderly residents
in continuing care retirement communities (CCRCs) for
the duration of the resident's life or a term in excess
of one year.
2. Defines "permanent closure" of a CCRC as the voluntary
or involuntary termination or forfeiture of a provider's
certificate of authority or license or other action that
results in the permanent relocation of residents, except
in the case of a natural disaster or other event out of
the provider's control.
3. Provides for notice to residents of a "permanent
closure" of a CCRC and regulates the permanent closure
of CCRCs, including as follows:
A. Requires that continuing care contracts include
provisions describing how the provider will proceed
in the event of a closure.
B. Requires that CCRCs provide written notice to
DSS and to the affected residents or designated
representatives of the affected residents 120 days
prior to the intended date of closure of a
continuing care retirement community.
C. Requires closure notices to include the intended
date of closure and the requirement of a relocation
plan.
D. Requires that providers offer a resident a
choice of specified placement options, the terms of
which shall not be less than the terms of the
continuing care contract between the resident and
the provider as if that contract had been fully
performed.
E. Requires that providers, within 30 days of
submitting the relocation plan for a permanent
closure, fund a reserve, set up a trust fund, or
secure a performance bond to ensure fulfillment of
costs associated with the relocation, in an amount
equal to or greater than the estimated costs of
relocating residents and relocation options, funded
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with qualifying assets not subject to any liens,
judgments, garnishments or creditor's claims.
F. Requires that providers submit monthly progress
reports to DSS detailing the progress and problems
associated with the closure until all affected
residents are relocated and all required payments
are made.
G. Requires DSS monitor the implementation of the
closure and impose penalties if DSS determines that
a provider is closing a facility in violation of
the permanent closure requirements or is doing so
in a manner that endangers the health or safety of
residents.
H. Prohibits the provider from displacing any
resident or to close the facility until the
relocation plan has been prepared and submitted to
DSS and provided to the affected residents, the
affected residents' representatives, and the local
long-term care ombudsman program.
This bill:
1. Defines a "residential temporary relocation" to mean the
relocation of one or more residents, except in the case
of a natural disaster that is out of the provider's
control, from one or more residential living units,
assisted living units, skilled nursing units, or a wing,
floor or entire CCRC due to a change of use or major
repairs or renovations.
2. Further defines "residential temporary relocation" to
mean a relocation that lasts for a period of at least
nine months but does not exceed 18 months without the
written agreement of the resident. Allows a provider to
extend the period of temporary closure for up to six
months, if that resident has agreed to the extension in
writing. Provides that the written agreement shall
state that by signing, the resident waives all rights to
the same relocation options offered in the case of
permanent closure for the period of the extension.
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3. Requires a continuing care contract to state that the
resident has a right to terminate his or her contract
after 18 months of residential temporary relocation, and
that the contract have provisions related to monthly fee
and entrance fee refunds upon termination of the
contract for this reason.
4. Requires all providers to include in resident contracts
the procedures to be followed to ensure that temporary
relocations provide comparable levels of care, services,
and living accommodations as described in the resident's
contract.
5. Requires a provider to notify the resident of the
impending relocation at least 60 days in advance of the
relocation, and requires a provider to meet with the
resident and, at the resident's request, family members
or other individuals at least 30 days in advance of the
transfer to discuss all aspects of the transfer,
including, but not limited to, the rights, requirements,
and procedures set forth in this article. Requires
notice of this meeting to be provided in writing and at
least seven days in advance of the meeting and to
include the date of the transfer; the available
replacement unit or units and monthly fees; the time
when the resident will be able to inspect the
replacement unit or units; and the estimated date when
the resident will be able to return to his or her unit
or may move to a substitute permanent unit.
6. Requires a provider to provide a unit in a facility,
agreed to by the resident, that most closely provides
the services, size, features, and amenities provided in
the unit being vacated, if accommodations are not
available at a CCRC operated by the provider within a
30-mile radius.
7. Requires the provider to arrange and pay for all moving
costs to the new facility and moving costs to the
reconstructed facility, if the resident returns, as well
as storage costs.
8. Provides that the resident shall only be required to pay
to the provider the monthly fee required in the
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resident's contract, or the monthly fee in the new
facility, whichever is less. Requires the provider to
make payment to the facility at which the resident is
relocated.
9. Requires the provider to make available the services of
a licensed medical or geriatric professional to advise
the resident, the resident's representative, and the
provider regarding the relocation of the resident, upon
request by the resident or the resident's
representative. Allows a provider to place a reasonable
limit on the cost of the services of the medical or
geriatric professional.
10.Requires the provider to identify unique service and
care needs, if applicable, for a resident directly
affected by the residential temporary relocation.
Requires the unique services and care needs identified
to be in writing and become a part of the resident's
plan of care.
11.Requires the provider to set forth specific procedures
for the resident to follow regarding relocation to the
unit originally vacated, the selection of a new unit,
and timeframes for making choices. Requires specified
procedures for returning the relocated resident when
residential units are ready for occupancy, including
compliance with notice requirements, and selection and
characteristics of units.
12.Provides that if the residential temporary relocation of
a resident of a continuing care retirement community
will exceed 18 months, the resident shall have all
options that are available in the case of permanent
closure, unless there is a written agreement between the
affected resident and the provider that the provider may
extend the period of temporary closure for up to six
months.
Background
A continuing care retirement community is a community where
services promised in a continuing care contract are
provided. Continuing care retirement communities can be
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apartment-type dwellings, high-rise buildings, a
subdivision setting, or any other housing design. Most
continuing care communities have three levels of care:
independent living, assisted living and skilled nursing
care. As a resident's needs increase, he/she moves to a
higher level of care within the facility.
Comment
A prior bill, AB 407 (Beall and Eng), Chapter 442, Statutes
of 2009, establishes requirements for the permanent closure
of a CCRC. Prior to AB 407, while the law regulated the
establishment and operation of CCRCs, there were minimal
regulations governing what happens when a facility must
close. The author's office reports that AB 407, as
introduced, addresses both permanent and temporary
closures. Due to provider concerns over prevailing
economic conditions, however, AB 407 was amended to address
only permanent closures. AB 407 passed with no opposition
and no negative votes in either house. The joint authors
of both AB 407 and this bill note that they and stakeholder
organizations representing CCRC providers and CCRC
residents agreed to address temporary closures--or,
residential temporary relocations--this year. This bill is
the result of that agreement.
This bill establishes guidelines for continuing care
contracts and for protecting CCRC residents' rights during
a remodel, renovation, or rebuilding of a CCRC or part of a
CCRC that will temporarily displace residents. This bill
requires that continuing care contracts provide that a
resident has the right to terminate his/her contract if a
residential temporary relocation exceeds 18 months. This
bill further requires that the contract provide for the
refund of monthly and entrance fees if the contract is
terminated.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 8/2/10)
Aging Services of California (source)
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ARGUMENTS IN SUPPORT : Aging Services of California, the
sponsor of this bill states this bill is a product of
several months of work with stakeholders and will establish
new provisions in the CCRC statutes that address temporary
resident relocations in CCRCs. Aging Services states that,
while most CCRC remodeling and renovation projects are
executed with minimal impact on residents, the Health &
Safety Code does not provide guidance to operators and
residents of CCRCs on how to handle temporary construction
relocations when disputes arise. The sponsor states, the
bill will provide equity and certainty to residents and
providers facing remodeling projects that require residents
to temporarily relocate from their homes or apartments
during construction. The sponsor believes that the bill
strikes a balance between the need of CCRCs to remain
attractive to future residents and protecting the rights of
existing residents.
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,
Bradford, Brownley, Buchanan, Caballero, Charles
Calderon, Chesbro, Cook, Coto, De La Torre, Emmerson,
Eng, Evans, Feuer, Fletcher, Fong, Fuentes, Fuller,
Furutani, Gaines, Galgiani, Garrick, Gilmore, Hagman,
Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,
Jeffries, Jones, Knight, Lieu, Logue, Bonnie Lowenthal,
Ma, Mendoza, Miller, Monning, Nava, Nestande, Niello,
Nielsen, John A. Perez, Portantino, Ruskin, Saldana,
Silva, Skinner, Smyth, Solorio, Audra Strickland,
Swanson, Torres, Torrico, Tran, Villines, Yamada
NO VOTE RECORDED: Carter, Conway, Davis, De Leon, DeVore,
Hall, V. Manuel Perez, Salas, Torlakson, Bass
CTW:do 8/2/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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