Title HSC — California Health & Safety Code

The department shall not issue a provisional certificate of authority or a certificate of authority to an applicant until the applicant has obtained licenses for the entire continuing care retirement community, including a license to operate the residential living and assisted li…

(a) Any entity may apply to the department for a Letter of Nonapplicability for reasons other than those specified in Section 1771.3, which states that the provisions of this chapter do not apply to its community, project, or proposed project. (b) Applications for Letters of Nona…

(a) A resident of a continuing care retirement community shall not be deprived of any civil or legal right, benefit, or privilege guaranteed by law, by the California Constitution, or by the United States Constitution, solely by reason of status as a resident of a community. In a…

(a) The Legislature finds and declares all of the following: (1) The residents of continuing care retirement communities have a unique and valuable perspective on the operations of, and services provided in, the community in which they live. (2) Resident input into decisions made…

(a) No report, circular, public announcement, certificate, financial statement, or any other printed matter or advertising material, or oral representation, that states or implies that an entity sponsors, guarantees, or assures the performance of any continuing care contract, sha…

(a) All printed advertising materials, including brochures, circulars, public announcements, and similar publications pertaining to continuing care or a continuing care retirement community shall specify the number on the provider’s provisional certificate of authority or certifi…

(a) A provisional certificate of authority or certificate of authority may not be sold, transferred, or exchanged in any manner. A provider may not sell or transfer ownership of the continuing care retirement community without the approval of the department. Any violation of this…

No arrangement allowed by a permit to accept deposits, a provisional certificate or authority, or a certificate of authority issued by the department under this chapter may be deemed a security for any purpose.

(a) To the extent that this chapter, as interpreted by the department, conflicts with the statutes, regulations, or interpretations governing the sale or hire of real property, this chapter shall prevail. (b) Notwithstanding any law or regulation to the contrary, a provider for a…

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…

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.

(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 b…

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 servi…

(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 fo…

(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 con…

(a) An entity shall file an application for a permit to accept deposits and for a certificate of authority with the department, as set forth in this chapter, before doing any of the following: (1) Accepting any deposit, reservation fee, or any other payment that is related to a p…

(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) Submi…

(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…

An application shall contain all of the following: (a) A statement signed by the applicant under penalty of perjury certifying that to the best of the applicant’s knowledge and belief, the items submitted in the application are correct. If the applicant is a corporation, the chie…

(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 dep…

(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 cance…

(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 o…

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 ap…

(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 …

(a) All deposit agreements between the applicant and the depositor shall be in writing and shall contain all information required by this section. (b) All deposit agreement forms shall be approved by the department prior to their use. (c) The requirements of this chapter and Chap…

(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 depos…

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…

(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 al…

The deposit escrow account agreement between the applicant and the escrow agent shall include all of the following: (a) The amount of the processing fee. (b) A provision requiring that all deposits shall be placed into the deposit escrow account upon delivery. (c) A provision req…

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.

(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 depos…

(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 d…

(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 retire…

(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 wi…

(a) In order to seek a release of escrowed funds, the applicant shall petition in writing to the department and certify to each of the following: (1) The construction of the proposed continuing care retirement community or phase is at least 50 percent completed. (2) At least 10 p…

(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 extensi…

(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 …

(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 t…

(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 certificat…

(a) All continuing care contracts shall be in writing and shall contain all the information required by Section 1788. (b) All continuing care contract forms, including all addenda, exhibits, and any other related documents, incorporated therein, as well as any modification to the…

(a) A continuing care contract shall contain all of the following: (1) The legal name and address of each provider. (2) The name and address of the continuing care retirement community. (3) The resident’s name and the identity of the unit the resident will occupy. (4) If there is…

(a) A continuing care contract may be canceled without cause by written notice from either party within 90 days from the date of the resident’s initial occupancy. (b) For all continuing care contracts, death of the resident before or during the cancellation period shall constitut…

(a) During the cancellation period, the provider shall pay all refunds owed to a resident within 14 calendar days after a resident makes possession of the living unit available to the provider. (b) After the cancellation period, any refunds due to a resident under a continuing ca…

(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)…

(a) Before executing a deposit agreement or continuing care agreement, or receiving any payment from a depositor or prospective resident, a provider shall deliver to the other parties in the deposit or continuing care agreement a disclosure statement in the form prescribed by the…

(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 sh…

(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 residen…

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.

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 residenti…

(a) Each provider that has obtained a provisional or final certificate of authority and each provider that possesses an inactive certificate of authority shall submit an annual report of its financial condition. The report shall consist of audited financial statements and require…