reglab/statecodes huggingface dataset:
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 1 - General Provisions › Section 1776.

1776. The department shall adopt, amend, or repeal, in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, reasonable regulations as may be necessary or proper to carry out the purposes and intent of this chapter and to protect the rights of the elderly.
(Repealed and added by Stats. 1990, Ch. 875, Sec. 2.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 1 - General Provisions › Section 1776.2.

1776.2. The department may, by any duly authorized representative, inspect and examine any continuing care retirement community, including the books and records thereof, or the performance of any service required by the continuing care contracts.
(Amended by Stats. 1995, Ch. 920, Sec. 10. Effective January 1, 1996.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 1 - General Provisions › Section 1776.3.

1776.3. (a) The Continuing Care Contracts Branch of the department shall enter and review each continuing care retirement community in the state at least once every three years to augment the branch’s assessment of the provider’s financial soundness.
(b) During its facility visits, the branch shall consider the condition of the facility, whether the facility is operating in compliance with applicable state law, and whether the provider is performing the services it has specified in its continuing care contracts.
(c) The branch shall issue guidelines that require each provider to adopt a comprehensive disaster preparedness plan, update that plan at least every three years, submit a copy to the department, and make copies available to residents in a prominent location in each continuing care retirement community facility.
(d) (1) The branch shall respond within 15 business days to residents’ rights, service-related, and financially related complaints by residents, and shall furnish to residents upon request and within 15 business days any document or report filed with the department by a continuing care provider, except documents protected by privacy laws.
(2) The provider shall disclose any citation issued by the department pursuant to Section 1793.6 in its disclosure statement to residents as updated annually, and shall post a notice of the citation in a conspicuous location in the facility. The notice shall include a statement indicating that residents may obtain additional information regarding the citation from the provider and the department.
(Amended by Stats. 2011, Ch. 32, Sec. 7. (AB 106) Effective June 29, 2011. Operative January 1, 2012, by Sec. 73 of Stats. 2011, Ch. 32.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 1 - General Provisions › Section 1776.4.

1776.4. The department may contract with any entity to provide consultation services. In providing the services, the entity shall conform to the requirements of this chapter and to the rules, regulations, and standards of the department. The department shall reimburse an entity for services performed pursuant to this section.
(Added by Stats. 1990, Ch. 875, Sec. 2.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 1 - General Provisions › Section 1776.6.

1776.6. (a) Pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code), the following documents are public information and shall be provided by the department upon request: audited financial statements, annual reports and accompanying documents, compliance or noncompliance with reserve requirements, whether an application for a permit to accept deposits and certificate of authority has been filed, whether a permit or certificate has been granted or denied, and the type of care offered by the provider.
(b) The department shall regard resident data used in the calculation of reserves as confidential.
(Amended by Stats. 2021, Ch. 615, Sec. 236. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 1 - General Provisions › Section 1778.

1778. (a) There is hereby created in the State Treasury a fund that shall be known as the CCRC Oversight Fund. The fund shall consist of fees received by the department pursuant to this chapter. Notwithstanding Section 13340 of the Government Code, the CCRC Oversight Fund is hereby continuously appropriated to the department, without regard to fiscal years.
(b) Use of the funds appropriated pursuant to this section shall include funding of the following:
(1) Program personnel salary costs, including, but not limited to, the following:
(A) A Continuing Care Contracts Program Manager at a level consistent with other management classifications that direct a regulatory program with statewide impact. The position shall require skills and knowledge at the highest level with responsibility for work of the most critical or sensitive nature as it relates to the department’s mission, including protecting vulnerable elderly persons, supervising technical staff with oversight of highly complex operations, and responsibility for policy and program evaluation and recommendations.
(B) A full-time legal counsel with a working knowledge of all laws relating to the regulation of continuing care retirement communities and residential care facilities for the elderly.
(C) A financial analyst with working knowledge of generally accepted accounting principles and auditing standards.
(D) Other appropriate analytical and technical support positions.
(2) Contracts with technically qualified persons, including, but not limited to, financial, actuarial, and marketing consultants, as necessary to provide advice regarding the feasibility or viability of continuing care retirement communities and providers.
(3) Other program costs or costs directly supporting program staff.
(4) The department shall use no more than 5 percent of the fees collected pursuant to this section for overhead costs, including facilities operation and indirect department and division costs.
(c) As needed, the department shall adjust the calculations for the application fees under Section 1779.2 and annual fees under Section 1791 to ensure that the balance in the CCRC Oversight Fund is adequate to fund the reasonable regulatory costs of the program, as specified in subdivision (b). If the balance in the CCRC Oversight Fund exceeds an amount adequate to fund the reasonable regulatory costs of the program, as specified in subdivision (b), the department shall adjust the calculations for the application fees under Section 1779.2 and annual fees under Section 1791 to reduce the amounts collected. A link to the approved budget for the Continuing Care Contracts Section shall be posted on the department’s internet website.
(d) The intent of the Legislature is to empower the program administrator with the ability and authorization to obtain necessary resources or staffing to carry out the program objectives.
(Amended by Stats. 2022, Ch. 538, Sec. 1. (SB 707) Effective January 1, 2023.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 2 - Application › Section 1779.2.

1779.2. (a)  Any entity filing an application for a permit to accept deposits and a certificate of authority shall pay an application fee.
(b)  The applicant shall pay 80 percent of the application fee for all planned phases at the time the applicant submits its application. The 80 percent payment shall be made by check payable to the Continuing Care Provider Fee Fund. The department shall not process the application until it has received this fee.
(c)  For new continuing care retirement communities or for the sale or transfer of existing continuing care retirement communities, the application fee shall be calculated as one-tenth of 1 percent of the purchase price of the continuing care retirement community, or the estimated construction cost, including the purchase price of the land or the present value of any long-term lease and all items listed in subparagraph (D) of paragraph (2) of subdivision (y) of Section 1779.4.
(d)  For existing continuing care retirement communities that are proposing new phases, remodeling or an expansion, the application fee shall be calculated as one-tenth of 1 percent of the cost of the addition, annexation, or renovation, including the value of the land and improvements and all items listed in subparagraph (D) of paragraph (2) of subdivision (y) of Section 1779.4.
(e)  For existing facilities converting to continuing care retirement communities, the application fee shall be calculated as one-tenth of 1 percent of the current appraised value of the facility, including the land, or present value of any long-term lease.
(f)  For organizational changes, the application fee shall be determined by the department based on the time and resources it considers reasonably necessary to process the application, including any consultant fees. The minimum application fee for those applications shall be two thousand dollars ($2,000).
(g)  The applicant shall pay the remainder of the application fee before the provisional certificate of authority is issued, or in the case of expansions or remodeling, before final approval of the project is granted. The applicant shall make this payment by check payable to the Continuing Care Provider Fee Fund.
(Amended by Stats. 2000, Ch. 820, Sec. 26. Effective January 1, 2001.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 2 - Application › Section 1779.6.

1779.6. (a)  Within seven calendar days of receipt of an initial application for a permit to accept deposits and a certificate of authority, the department shall acknowledge receipt of the application in writing.
(b)  Within 30 calendar days following its receipt of an application, the department shall determine if the application is complete and inform the applicant of its determination. If the department determines that the application is incomplete, its notice to the applicant shall identify the additional forms, documents, information, and other materials required to complete the application. The department shall allow the applicant adequate time to submit the requested information and materials. This review may not determine the adequacy of the materials included in the application.
(c)  Within 120 calendar days after the department determines that an application is complete, the department shall review the application for adequacy. An application shall be adequate if it complies with all the requirements imposed by this chapter, and both the financial study and marketing study reasonably project the feasibility of the proposed continuing care retirement community, as well as demonstrate the financial soundness of the applicant. The department shall either approve the application as adequate under this chapter or notify the applicant that its application is inadequate. If the application is inadequate, the department shall identify the deficiencies in the application, provide the appropriate code references, and give the applicant an opportunity to respond.
(d)  Within 60 calendar days after receiving any additional information or clarification required from the applicant, the department shall respond to the applicant’s submission in writing and state whether each specific deficiency has been addressed sufficiently to make the application adequate. If the department determines that the application is adequate and in compliance with this chapter, the department shall issue the permit to accept deposits. If the department determines that the response is inadequate, it may request additional information or clarification from the applicant pursuant to subdivision (c) or deny the application pursuant to Section 1779.10.
(e)  If the applicant does not provide the department with the additional information within 90 days after the department’s notice described in subdivision (c), the application may be denied for being inadequate. Any new application shall require an application fee.
(Amended by Stats. 2000, Ch. 820, Sec. 28. Effective January 1, 2001.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 2 - Application › Section 1779.7.

1779.7. (a)  Where any portion of the consideration transferred to an applicant as a deposit or to a provider as consideration for a continuing care contract is transferred by a person other than the prospective resident or a resident, that third-party transferor shall have the same cancellation or refund rights as the prospective resident or resident for whose benefit this consideration was transferred.
(b)  A transferor shall have the same rights to cancel and obtain a refund as the depositor under the deposit agreement or the resident under a continuing care contract.
(Added by Stats. 2000, Ch. 820, Sec. 28.5. Effective January 1, 2001.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 2 - Application › Section 1779.8.

1779.8. (a)  The applicant shall notify the department of material changes in the application information submitted to the department, including the applicant’s financial and marketing projections.
(b)  An applicant shall provide to the department at least 60 days’ advance written notice of any proposal to make any changes in the applicant’s corporate name, structure, organization, operation, or financing.
(c)  Within 30 calendar days after receiving notice of a change affecting the applicant or the application, the department shall advise the applicant:
(1)  Whether additional information is required to process the pending application.
(2)  Whether an additional application fee is required.
(3)  Whether a new application and application fee must be submitted. The new application fee shall be twice the actual cost of additional review time caused by the change. This additional fee is payable to the department on demand.
(d)  The department shall suspend the applicant’s application and, if applicable, its permit to accept deposits if the applicant fails to give written notice of changes required by this section. The suspension shall remain in effect until the department has both assessed the potential impact of the changes on the interests of depositors and taken such action as necessary under this chapter to protect these interests.
(Amended by Stats. 2000, Ch. 820, Sec. 29. Effective January 1, 2001.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 2 - Application › Section 1779.10.

1779.10. (a)  The department shall deny an application for a permit to accept deposits and a certificate of authority if the applicant fails to do any of the following:
(1)  Pay the application fee as required by Section 1779.2.
(2)  Submit all information required by this chapter.
(3)  Submit evidence to support a reasonable belief that any interested party of the proposed continuing care retirement community who has committed any offenses listed in subdivision (k) of Section 1779.4 is of such good character as to indicate rehabilitation.
(4)  Submit evidence to support a reasonable belief that the applicant is capable of administering the continuing care retirement community in compliance with applicable laws and regulations when an action specified in subdivision (j) or (k) of Section 1779.4 has been taken against the applicant.
(5)  Demonstrate the feasibility of the proposed continuing care retirement community.
(6)  Comply with residential care facility for the elderly licensing requirements.
(b)  If the application is denied, no portion of the paid application fee shall be refundable or refunded.
(c)  Immediately upon the denial of an application, the department shall notify the applicant in writing.
(d)  The Notice of Denial from the department shall contain all of the following:
(1)  A statement that the application is denied.
(2)  The grounds for the denial.
(3)  A statement informing the applicant that it has the right to appeal.
(4)  A statement that the applicant has 30 calendar days from the date that the Notice of Denial was mailed to appeal the denial, and where to send the appeal.
(e)  If the applicant appeals the denial, further proceedings shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.
(Amended by Stats. 2000, Ch. 820, Sec. 30. Effective January 1, 2001.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 3 - Deposit Subscription Period › Section 1780.

1780. The department shall issue a permit to accept deposits when it has done all of the following:
(a)  Determined that the application is adequate.
(b)  Determined that the proposed continuing care retirement community financial and marketing studies are acceptable.
(c)  Reviewed and approved the deposit agreements.
(d)  Reviewed and approved the deposit escrow account agreement.
(Amended by Stats. 2000, Ch. 820, Sec. 31. Effective January 1, 2001.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 3 - Deposit Subscription Period › Section 1780.2.

1780.2. (a)  A deposit may be paid in one or several payments, at or after the time the parties enter into the deposit agreement.
A deposit shall be paid by cash or cash equivalent, jointly payable to the applicant and the escrow agent or depository. Possession and control of any deposit agreement shall be transferred to the escrow agent at the time the deposit is paid.
(b)  A processing fee may be added to the deposit.
(1)  The processing fee shall not exceed 1 percent of the amount of the average entrance fee or five hundred dollars ($500), whichever is greater.
(2)  A nonrefundable processing fee may be paid directly to the applicant without being placed in the deposit escrow account.
(c)  Payments made by a depositor for upgrades or modifications to the living unit shall not be placed in escrow with deposits. The applicant shall provide written refund policies to the depositor before accepting any payments for modifications or upgrades.
(d)  The applicant shall furnish to the department within the first 10 days of each calendar month a list of all residents who have made payments for modifications or upgrades, the amounts each resident has paid, the date of each payment, and the unit to be modified or upgraded for each resident.
(e)  All payments for modifications or upgrades shall be refunded to the depositor with interest if the applicant does not receive a certificate of authority for the proposed continuing care retirement community or expansion.
(f)  The department may record a lien against the continuing care retirement community property, or any portion of the continuing care retirement community property, to secure the applicant’s obligations to refund the depositor’s payments made for modifications or upgrades. Any lien created under this section shall be to protect depositors and shall be governed by Section 1793.15.
(Amended by Stats. 2000, Ch. 820, Sec. 32. Effective January 1, 2001.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 3 - Deposit Subscription Period › Section 1781.

1781. (a)  All deposits, excluding processing fees, shall be placed in an escrow account. All terms governing the deposit escrow account shall be approved in advance by the department.
(b)  The deposit escrow account shall be established by an escrow agent and all deposits shall be deposited in a depository located in California and approved by the department. The department’s approval of the depository shall be based, in part, upon its ability to ensure the safety of funds and properties entrusted to it and its qualifications to perform the obligations of the depository pursuant to the deposit escrow account agreement and this chapter. The depository may be the same entity as the escrow agent. All deposits shall be kept and maintained in a segregated account without any commingling with other funds, including any funds or accounts owned by the applicant.
(c)  If the escrow agent is a title company, it shall meet the following requirements:
(1)  A Standard and Poors rating of “A” or better or a comparable rating from a comparable rating service.
(2)  Licensure in good standing with the Department of Insurance.
(3)  Tangible net equity as required by the Department of Insurance.
(4)  Reserves as required by the Department of Insurance.
(d)  All deposits shall remain in escrow until the department has authorized release of the deposits, as provided in Section 1783.3.
(e)  Deposits shall be invested in instruments guaranteed by the federal government or an agency of the federal government, or in investment funds secured by federally guaranteed instruments.
(f)  No funds deposited in a deposit escrow account shall be subject to any liens, judgments, garnishments, or creditor’s claims against the applicant or the continuing care retirement community. The deposit agreement shall also provide that deposits may not be subject to any liens or charges by the escrow agent except that cash equivalent deposits may be subject to transaction fees, commissions, prepayment penalties, and other fees incurred in connection with those deposits.
(Amended by Stats. 2000, Ch. 820, Sec. 34. Effective January 1, 2001.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 3 - Deposit Subscription Period › Section 1781.2.

1781.2. (a)  All deposits shall be delivered to the escrow agent and deposited into the deposit escrow account within five business days after receipt by the applicant. The deposit escrow account shall be accounted for in a separate escrow account.
(b)  The applicant shall provide, with all deposits delivered to the escrow holder, a copy of the executed deposit agreement, a copy of the receipt given to the depositor, a summary of all deposits made on that date, and any other materials required by the escrow holder.
(Amended by Stats. 2000, Ch. 820, Sec. 35. Effective January 1, 2001.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 3 - Deposit Subscription Period › Section 1781.6.

1781.6. All changes to a deposit agreement or deposit escrow account agreement form shall be submitted to, and approved by, the department before use by the applicant.
(Amended by Stats. 2000, Ch. 820, Sec. 37. Effective January 1, 2001.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 3 - Deposit Subscription Period › Section 1781.8.

1781.8. (a)  Deposits held in escrow shall be placed in an interest bearing account or invested as provided under subdivision (e) of Section 1781.
(b)  Interest, income, and other gains derived from deposits held in a deposit escrow account may not be released or distributed from the deposit escrow account except upon written approval of the department.
(c)  Approval by the department for the release of earnings generated from funds held in escrow shall be based upon an assessment that funds remaining in the deposit escrow account will be sufficient to pay refunds and any interest promised to all depositors, as well as administrative costs owed to the escrow agent.
(d)  When released by the department, interest earned by the funds in the deposit escrow account shall be distributed in accordance with the terms of the deposit agreement.
(Amended by Stats. 2000, Ch. 820, Sec. 38. Effective January 1, 2001.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 3 - Deposit Subscription Period › Section 1781.10.

1781.10. No deposit or any other asset held in a deposit escrow account, shall be encumbered or used as collateral for any obligation of the applicant or any other person, unless the applicant obtains prior written approval from the department for the encumbrance or use as collateral. The department shall not approve any encumbrance or use as collateral under this section unless the encumbrance or use as collateral is expressly subordinated to the rights of depositors under this chapter to refunds of their deposits.
(Amended by Stats. 2000, Ch. 820, Sec. 39. Effective January 1, 2001.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 3 - Deposit Subscription Period › Section 1782.

1782. (a) An applicant shall not begin construction on any phase of a continuing care retirement community without first obtaining a written acknowledgment from the department that all of the following prerequisites have been met:
(1) A completed application has been submitted to the department.
(2) A permit to accept deposits has been issued to the applicant or, in the case of continuing care retirement community renovation projects, the department has issued a written approval of the applicant’s application.
(3) For new continuing care retirement communities, or construction projects adding new units to an existing continuing care retirement community, deposits equal to at least 10 percent of each depositor’s applicable entrance fee have been placed into escrow for each phase for at least 50 percent of the number of residential living units to be constructed.
(b) Applicants shall notify depositors in writing when construction is commenced.
(c) For purposes of this chapter only, construction shall not include site preparation, demolition, or the construction of model units.
(Amended by Stats. 2006, Ch. 529, Sec. 2. Effective January 1, 2007.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 3 - Deposit Subscription Period › Section 1783.

1783. (a)  (1)  An applicant proposing to convert an existing building to continuing care use shall comply with all the application requirements in Section 1779.4 identified by the department as necessary for the department to assess the feasibility of the proposed continuing care retirement community or conversion.
(2)  If the proposed continuing care retirement community is already occupied and only a portion of the existing residential units will be converted into continuing care units, the department may modify the presale requirements of paragraph (3) of subdivision (a) of Section 1782 and paragraph (2) of subdivision (a) of Section 1783.3.
(b)  Any applicant proposing to convert an existing building into continuing care units shall indicate the portion of the facility to be used for continuing care contract services. The continuing care allocation specified by the applicant shall be reflected in all financial and marketing studies and shall be used to determine the applicant’s compliance with the percentage requirements stated in paragraph (3) of subdivision (a) of Section 1782 and paragraph (2) of subdivision (a) of Section 1783.3.
(Amended by Stats. 2000, Ch. 820, Sec. 41. Effective January 1, 2001.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 3 - Deposit Subscription Period › Section 1783.2.

1783.2. (a)  An escrow agent shall refund to the depositor all amounts required by the depositor’s deposit agreement upon receiving written notice from the applicant that a depositor has canceled the deposit agreement. Refunds required by this subdivision shall be paid to the depositor within 10 days after the depositor gives notice of cancellation to the applicant.
(b)  Depositors who have deposited more than one thousand dollars ($1,000) or 5 percent of the entrance fee, whichever is greater, and who have been notified that construction of the proposed continuing care retirement community has commenced, shall not be entitled to a refund of their deposit until any of the following occurs:
(1)  The continuing care retirement community is opened for operation.
(2)  Another depositor has reserved the canceling depositor’s specific residential unit and paid the necessary deposit.
(3)  The depositor no longer meets financial or health requirements for admission.
(Amended by Stats. 2000, Ch. 820, Sec. 42. Effective January 1, 2001.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 3 - Deposit Subscription Period › Section 1784.

1784. (a)  If construction of the proposed continuing care retirement community, or applicable phase, has not commenced within 36 months from the date the permit to accept deposits is issued, an applicant may request an extension of the permit to accept deposits. The request for extension shall be made to the department in writing and shall include the reasons why construction of the proposed continuing care retirement community was not commenced within the required 36-month period. The request for extension shall also state the new estimated date for commencement of construction.
(b)  In response to a request for an extension, the department may do one of the following:
(1)  If the department determines there is satisfactory cause for the delay in commencement of construction of the proposed continuing care retirement community or applicable phase, the department may extend the permit to accept deposits for up to one year.
(2)  If the department determines that there is no satisfactory cause for the delay, the department may instruct the escrow agent to refund to depositors all deposits held in escrow, plus any interest due under the terms of the deposit subscription agreements, and require the applicant to file a new application and application fee. The applicant shall also refund all processing fees paid by the depositors.
(c)  Within 10 calendar days the applicant shall notify each depositor of the department’s approval or denial of the extension, of any expiration of the permit to accept deposits and of any right to a refund of their deposits.
(Amended by Stats. 2000, Ch. 820, Sec. 44. Effective January 1, 2001.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 3 - Deposit Subscription Period › Section 1785.

1785. (a) If, at any time prior to issuance of a certificate of authority, the applicant’s average performance over any six-month period does not substantially equal or exceed the applicant’s projections for that period, the department may take any of the following actions:
(1) Cancel the permit to accept deposits and require that all funds in escrow be returned to depositors immediately.
(2) Increase the required percentages of construction completed, units reserved, or entrance fees to be deposited as required under Sections 1782, 1783.3, 1786, and 1786.2.
(3) Increase the reserve requirements under this chapter.
(b) Prior to taking any actions specified in subdivision (a), the department shall give the applicant an opportunity to submit a feasibility study from a consultant in the area of continuing care, approved by the department, to determine whether in his or her opinion the proposed continuing care retirement community is still viable, and if so, to submit a plan of correction. The department shall determine if the plan is acceptable.
(c) In making its determination, the department shall take into consideration the overall performance of the proposed continuing care retirement community to date.
(d) If deposits have been released from escrow, the department may further require the applicant to reopen the escrow as a condition of receiving any further entrance fee payments from depositors or residents.
(e) The department may require the applicant to notify all depositors and, if applicable, all residents, of any actions required by the department under this section.
(Amended by Stats. 2011, Ch. 32, Sec. 12. (AB 106) Effective June 29, 2011. Operative January 1, 2012, by Sec. 73 of Stats. 2011, Ch. 32.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 4 - Certificate of Authority › Section 1786.

1786. (a)  The department shall issue a provisional certificate of authority when an applicant has done all of the following:
(1)  Complied with the approved marketing plans.
(2)  Met and continues to meet the requirements imposed under subdivision (a) of Section 1783.3. The issuance of the provisional certificate of authority shall not require, and shall not be dependent upon the release of escrowed funds. Release of escrowed funds shall be governed by Section 1783.3.
(3)  Completed construction of the continuing care retirement community or applicable phase.
(4)  Obtained the required licenses.
(5)  Paid the remainder of the application fee.
(6)  Executed a permanent mortgage loan or other long-term financing.
(7)  Provided the department with a recorded copy of the Notice of Statutory Limitation on Transfer required by subdivision (aa) of Section 1779.4.
(8)  Met all applicable provisions of this chapter.
(b)  The provisional certificate of authority shall expire 12 months after issuance unless both of the following occur:
(1)  No later than 60 days prior to the expiration of the provisional certificate of authority, the provider petitions the department and demonstrates good cause in writing for an extension of the provisional certificate of authority.
(2)  The department determines that the provider is capable of meeting the requirements of Section 1786.2 during the extension period.
(c)  The department shall exercise its discretion to determine the length of the extension period.
(d)  After the provisional certificate of authority is issued providers may continue to take deposits by modifying the deposit agreement as appropriate. The new deposit agreement shall clearly state the rights of the depositor and the provider. The applicant shall submit the agreements to the department for review and approval prior to use. A provider that holds a provisional certificate of authority or certificate of authority may accept fees paid by potential residents to be placed on a waiting list without using a deposit agreement. These waiting list fees may not exceed five hundred dollars ($500), and shall be refunded to the potential resident upon written request.
(e)  All holders of a provisional certificate of authority shall request in writing a certificate of authority when the requirements of Section 1786.2 have been met.
(Amended by Stats. 2000, Ch. 820, Sec. 46. Effective January 1, 2001.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 4 - Certificate of Authority › Section 1786.2.

1786.2. (a)  The department shall not issue a certificate of authority to an applicant or a provider, until the department determines that each of the following has occurred:
(1)  A provisional certificate of authority has been issued or all of the requirements for a provisional certificate of authority have been satisfied. In the case of an application for a new certificate of authority due to an organizational change, if the continuing care retirement community is financially sound and operating in compliance with this chapter, it shall be sufficient for the purposes of this paragraph that the department has approved the application in writing.
(2)  One of the following requirements has been met:
(A)  At a minimum, continuing care contracts have been executed for 80 percent of the total residential living units in the continuing care retirement community, with payment in full of the entrance fee.
(B)  At a minimum, continuing care contracts have been executed for 70 percent of the total residential living units in the continuing care retirement community, with payment in full of the entrance fee, and the provider has submitted an updated financial and marketing plan, satisfactory to the department, demonstrating that the proposed continuing care retirement community will be financially viable.
(C)  At a minimum, continuing care contracts have been executed for 50 percent of the total residential living units in the continuing care retirement community, with payment in full of the entrance fee, and the provider furnishes and maintains a letter of credit or other security, satisfactory to the department, sufficient to bring the total amount of payments to a level equivalent to 80 percent of the total entrance fees for the entire continuing care retirement community.
(3)  A minimum five-year financial plan of operation remains satisfactory to the department.
(4)  Adequate reserves exist as required by Sections 1792 and 1792.6. For a new continuing care retirement community without an operating history, the department may approve calculation of required reserves on a pro forma basis in conjunction with compliance with approved marketing plans.
(5)  All applicable provisions of this chapter have been met.
(b)  When issued, the certificate of authority, whether full or conditioned, shall remain in full force unless forfeited by operation of law under Section 1793.7, inactivated under Section 1793.8, or suspended or revoked by the department pursuant to Section 1793.21.
(c)  The provider shall display the certificate of authority in a prominent place within the continuing care retirement community.
(Amended by Stats. 2000, Ch. 820, Sec. 47. Effective January 1, 2001.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 6 - Reporting and Reserve Requirements › Section 1789.

1789. (a)  A provider shall notify the department and obtain its approval before making any changes to any of the following: its name; its business structure or form of doing business; the overall management of its continuing care retirement community; or the terms of its financing.
(b)  The provider shall give written notice of proposed changes to the department at least 60 calendar days in advance of making the changes described in this section.
(c)  This notice requirement does not apply to routine facility staff changes.
(d)  Within 10 calendar days of submitting notification to the department of any proposed changes under subdivision (a), the provider shall notify the resident association of the proposed changes in the manner required by subdivision (e) of Section 1779.
(Amended by Stats. 2000, Ch. 820, Sec. 52. Effective January 1, 2001.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 6 - Reporting and Reserve Requirements › Section 1789.2.

1789.2. (a)  A provider shall provide the department with written notice at least 90 calendar days prior to closing any transaction that results in an encumbrance or lien on a continuing care retirement community property or its revenues.
(b)  The written notice required by this section shall include all of the following:
(1)  A description of the terms and amount of the proposed transaction.
(2)  An analysis of the sources of funds for repayment of principal and interest.
(3)  An analysis of the impact of the proposed transaction on monthly care fees.
(4)  An analysis of the impact that the proposed encumbrance would have on assets available for liquid reserves required by Section 1792, and refund reserves required by Section 1792.6.
(c)  Within seven calendar days of receipt of notice of proposed changes, the department shall acknowledge receipt of the notice in writing.
(d)  Within 30 calendar days following its receipt of the notice, the department shall inform the provider in writing whether additional materials are required to evaluate the transaction.
(e)  Within 90 calendar days following its receipt of additional materials, the department shall inform the provider of its approval or denial of the proposed transaction.
(f)  Providers shall not execute the proposed financial transaction for which notice has been given pursuant to subdivision (a) without the department’s written authorization unless either the 30-day response period or the 90 calendar day period for the department’s review of the provider’s request has expired without any response by the department.
(g)  If the department determines that the proposed financial transaction will materially increase monthly care fees or impair the provider’s ability to maintain required reserves, the department may:
(1)  Refuse to approve the transaction.
(2)  Record a notice of lien on the provider’s property pursuant to Section 1793.15 after notifying the provider and giving the provider an opportunity to withdraw the planned transaction.
(3)  Take both actions and any other action that it determines is necessary to protect the best interests of the residents.
(h)  Within 10 calendar days of submitting notification to the department of any proposed encumbrance to the community property, the provider shall notify the resident governing body or association of the proposed encumbrance in the manner required by subdivision (e) of Section 1779.
(Amended by Stats. 2000, Ch. 820, Sec. 54. Effective January 1, 2001.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 6 - Reporting and Reserve Requirements › Section 1789.4.

1789.4. (a)  A provider for a continuing care retirement community shall obtain approval from the department before consummating any sale or transfer of the continuing care retirement community or any interest in that community, other than sale of an equity interest in a unit to a resident or other transferor.
(b)  The provider shall provide written notice to the department at least 120 calendar days prior to consummating the proposed transaction.
(c)  The notice required by this section shall include all of the following:
(1)  The identity of the purchaser.
(2)  A description of the terms of the transfer or sale, including the sales price.
(3)  A plan for ensuring performance of the existing continuing care contract obligations.
(d)  The provider shall give written notice to all continuing care contract residents and depositors 120 calendar days prior to the sale or transfer. The notice shall do all of the following:
(1)  Describe the parties.
(2)  Describe the proposed sale or transfer.
(3)  Describe the arrangements for fulfilling continuing care contract obligations.
(4)  Describe options available to any depositor or resident who does not wish to have his or her contract assumed by a new provider.
(5)  Include an acknowledgment of receipt of the notice to be signed by the resident.
(e)  Unless a new provider assumes all of the continuing care obligations of the selling provider at the close of the sale or transfer, the selling provider shall set up a trust fund or secure a performance bond to ensure the fulfillment of all its continuing care contract obligations.
(f)  The purchaser shall make applications for, and obtain, the appropriate licenses and a certificate of authority before executing any continuing care contracts or assuming the selling provider’s continuing care contract obligations.
(Amended by Stats. 2000, Ch. 820, Sec. 55. Effective January 1, 2001.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 6 - Reporting and Reserve Requirements › Section 1789.6.

1789.6. A provider shall record with the county recorder a “Notice of Statutory Limitation on Transfer” for each community as required by subdivision (aa) of Section 1779.4 and Section 1786.
(Amended by Stats. 2000, Ch. 820, Sec. 56. Effective January 1, 2001.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 6 - Reporting and Reserve Requirements › Section 1789.8.

1789.8. Each provider shall obtain and maintain in effect insurance or a fidelity bond for each agent or employee, who, in the course of his or her agency or employment, has access to any substantial amount of funds. This requirement is separate from the bonding requirements of residential care facility for the elderly regulations.
(Amended by Stats. 2000, Ch. 820, Sec. 57. Effective January 1, 2001.)
2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 10 - Continuing Care Contracts › ARTICLE 6 - Reporting and Reserve Requirements › Section 1791.

1791. (a)  An annual fee shall be required of each provider which has obtained a provisional or final certificate of authority.
(b)  Each annual report submitted pursuant to Section 1790 shall be accompanied by a payment to the Continuing Care Provider Fee Fund in the amount of one-tenth of 1 percent of the portion of total operating expenses, excluding debt service and depreciation from audited financial statements, which has been allocated to continuing care contract residents. The allocation shall be based on the ratio of the mean number of total residents.
(c)  If a provider is granted an exemption from filing annual reports to the department pursuant to subdivision (f) of Section 1790, the minimum annual provider fee shall be two hundred fifty dollars ($250). This fee shall be submitted after the end of the provider’s fiscal year with proof of trust fund or performance bond as required by subdivision (f) of Section 1790.
(Amended by Stats. 1995, Ch. 920, Sec. 45. Effective January 1, 1996.)