current legislative activity

Bills sponsored by CALCRA

AB 3088 authored  by Assemblymember Kansen Chu (D-San Jose): Current law requires providers of Continuing Care Retirement Communities, who enter into Type A (or Life Care) contracts, to provide an actuarial report to the department every five years. However, most CCRC’s do not provide Type A contracts, primarily utilizing Type B or C contracts. As seniors consider paying substantial entrance fees and additional monthly payments for CCRC services, the importance of actuarial expertise is crucial to successful long-range planning for the financial and business operation of any CCRC. This proposal would require all CCRC providers, no matter what type of contract they offer, to obtain and provide an actuarial report to the department every three years.

Also, current law makes no provision regarding planning for necessary maintenance and repair of buildings and grounds. Addressing problems of deferred maintenance has been a long-standing issue for residents who are often left paying large bills for what can be considered avoidable repairs. Providers who do not conduct regular maintenance and repair studies, particularly as facilities age, are often suddenly faced with the need to make urgent repairs to building elements such as the roof, HVAC system or plumbing. These deferred repairs are costly and could have been addressed sooner and at a lower cost if they were identified earlier. A maintenance and repair study would allow the CCRC to identify needed repairs before they become urgent and costly. This bill would also require each provider to conduct, at least once every 3 years, a maintenance and replacement study of the accessible areas that the provider is obligated to repair, replace, restore, or maintain within the facility. A summary of the study is to be submitted to the department, and a copy posted on the provider's web site.

Bills opposed by CALCRA

AB 2033 (Choi): This bill, sponsored by Erickson Living, would allow Erickson to offer their "pooling model" of a repayment CCRC contract. CALCRA's concern is that this bill could allow Erickson, which currently doesn't operate in California, to avoid current statutory requirements for CCRCs in this state.