BILL ANALYSIS �
AB 1751
Page 1
Date of Hearing: April 30, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1751 (Bloom) - As Amended: March 26, 2014
Policy Committee: Aging and
Long-Term CareVote: 5-2
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill, as proposed to be amended , changes provisions
related to governance and oversight of Continuing Care
Retirement Communities (CCRCs) regulated by the Department of
Social Services (DSS). Specifically, this bill:
1)Requires financial statements to be available quarterly
instead of semi-annually, requires posting on a facility's web
site, and requires explanation of budget variances.
2)Requires the governing body of a CCRC to accept one resident
of the continuing care retirement community it operates for
governing bodies with 20 members or less, and at least two
residents for provider governing bodies with 21 or more
members, to participate as voting members of the provider's
governing body.
FISCAL EFFECT
Minor, absorbable costs to DSS to oversee implementation of
these new CCRC requirements.
COMMENTS
1)Purpose . The author indicates current law does not require
adequate representation for residents on governing bodies of
CCRCs, nor does it provide adequate transparency with respect
to CCRC finances. The sponsor of the bill, California
Continuing Care Residents Association, believes residents
deserve representation and accountability that is reflective
of their significant financial investment.
AB 1751
Page 2
2)Background . Existing law requires DSS to regulate 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. CCRCs offer a long-term
continuing care contract that provides for housing,
residential services, and nursing care, usually in one
location, and usually for a resident's lifetime. Under current
law, the governing board of a CCRC is required to admit one
non-voting resident member and provide financial statements
semi-annually. Residents often pay a large up-front payment
to join CCRCs, as well as monthly payments. Major decisions
made by CCRCs, such as capital investment, can affect the cost
and quality of life for residents.
3)Opposition . This bill is opposed by for-profit CCRCs, who cite
conflict-of-interest issues and consider the requirement for a
resident member on a governing board a potential regulatory
taking of private resources.
4)Amendments . Amendments replace the requirement for 3 voting
resident members on a facility's governing body with a
requirement for 1 or 2 resident members, depending on facility
size. They also make the appointment of a resident member
upon vacancy of a seat on the governing body, provide for the
nomination of a resident by a resident association or resident
council, and allow the provider's governing board to approve
or disapprove the nominated resident member.
Analysis Prepared by : Lisa Murawski / APPR. / (916) 319-2081