BILL ANALYSIS �
AB 1751
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1751 (Bloom)
As Amended August 19, 2014
Majority vote
-----------------------------------------------------------------
|ASSEMBLY: |52-23|(May 28, 2014) |SENATE: |26-6 |(August 21, |
| | | | | |2014) |
-----------------------------------------------------------------
Original Committee Reference: AGING & L.T.C.
SUMMARY : Establishes at least one voting, resident member on
the governing body of each continuing care retirement community
(CCRC), or at least one resident voting member for each facility
on the governing board of a corporation that administers
multiple CCRCs. The measure also calls for quarterly reporting
of financial statements with written descriptions of significant
variances and internet hosting of annual financial statements.
Specifically, this bill :
1)Requires a CCRC provider to provide quarterly, rather than
semi-annual, financial statements of activities comparing
actual costs against budgeted costs broken down by expense
category.
2)Requires written explanations of significant budget variations
within those financial statements.
3)Requires annual financial reports be posted on an Internet Web
site administered by the CCRC.
4)Requires each CCRC governing body to accept one resident
member with voting rights, or two voting resident members, if
the governing board is comprised of 21 people or more, in
addition to the non-voting member already authorized to
participate.
5)Requires boards with more than one CCRC under its
jurisdiction, to accept a voting, resident representative from
each CCRC.
6)Requires CCRC providers with an out-of-state governing body to
appoint a committee of officers and partners to meet via
teleconference prior to the out-of-state governing body's
AB 1751
Page 2
regularly scheduled meeting to address resident concerns and
to relay them to all officers or partners of the provider.
The Senate amendments :
1)Assure those entities that provide continuing care retirement
community services in California, but have no governing body
located within the state, appoint a select committee of its
governing body to meet with residents to address concerns of
the residents, and to convey those concerns to each member of
the governing body.
2)Assure those entities that provide continuing care retirement
community services that are sole proprietors, general
partnerships, limited partnerships, limited liability
companies or closely held corporations appoint a select
committee of its governing body to meet with the residents at
each facility at least semiannually, and at least 60 days
prior to consideration of any fiscal or administrative changes
that increase monthly fees, increase indebtedness, cause
construction expansion or contraction of community facilities,
or any other material change to the operation or environment
of the community, in lieu of appointing a resident to its
governing body. In the case of limited liability companies
with corporate members, a nonvoting resident representative
shall be invited to the meetings of the governing body of the
principle corporation within that Limited Liability
Corporation (LLC).
EXISTING LAW :
1)Provides for the licensure and regulation of Residential Care
Facilities for the Elderly by the Department of Social
Services (DSS).
2)Provides for the regulation of 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.
3)Requires the governing body of a CCRC to hold at least
semiannual meetings with the residents for the purpose of the
free discussion of income and expenditures, financial trends,
and issues related to proposed changes in policies, programs,
and services.
AB 1751
Page 3
4)Requires the governing body of a single facility CCRC to
accept at least one resident to participate as a nonvoting
resident representative to the provider's governing body.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : CCRCs offer long-term, continuing care contracts that
provide for housing, residential services, and nursing care,
usually in one location, and usually for a resident's lifetime.
Residents often pay a large up-front payment to join CCRCs, as
well as monthly payments. Major decisions made by CCRC
governing boards can affect the cost and quality of life for
residents who characteristically live on limited or fixed
incomes.
Analysis Prepared by : Robert MacLaughlin / AGING & L.T.C. /
(916) 319-3990
FN: 0005264