Title HSC — California Health & Safety Code

(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…

(a) A provider shall maintain at all times qualifying assets as a liquid reserve in an amount that equals or exceeds the sum of the following: (1) The amount the provider is required to hold as a debt service reserve under Section 1792.3. (2) The amount the provider must hold as …

(a) Each provider that has entered into Type A contracts shall submit to the department, at least once every five years, an actuary’s opinion as to the provider’s actuarial financial condition. The actuary’s opinion shall be based on an actuarial study completed by the opining ac…

(a) A provider shall satisfy its liquid reserve obligation with qualifying assets. Qualifying assets are: (1) Cash. (2) Cash equivalents as defined in paragraph (4) of subdivision (c) of Section 1771. (3) Investment securities, as defined in paragraph (2) of subdivision (i) of Se…

(a) Each provider shall include in its liquid reserve a reserve for its long-term debt obligations in an amount equal to the sum of all of the following: (1) All regular principal and interest payments, as well as credit enhancement premiums, paid by the provider during the immed…

(a) Each provider shall include in its liquid reserve a reserve for its operating expenses in an amount that equals or exceeds 75 days’ net operating expenses. For purposes of this section: (1) Seventy-five days net operating expenses shall be calculated by dividing the provider’…

(a) The provider shall compute its liquid reserve requirement as of the end of the provider’s most recent fiscal yearend based on its audited financial statements for that period and, at the time it files its annual report, shall file a form acceptable to the department certifyin…

(a) Any provider offering a refundable contract, or other entity assuming responsibility for refundable contracts, shall maintain a refund reserve in trust for the residents. The amount of the refund reserve shall be revised annually by the provider and the provider shall submit …

(a) The Legislature finds and declares all of the following: (1) In continuing care contracts, providers offer a wide variety of living accommodations and care programs for an indefinite or extended number of years in exchange for substantial payments by residents. (2) The annual…

(a) For purposes of this article, “actuarial study” means an analysis that addresses the current actuarial financial condition of a provider that is performed by an actuary in accordance with accepted actuarial principles and the standards of practice adopted by the Actuarial Sta…

(a) All providers shall file annually with the department a financial report disclosing key financial ratios and other key indicators in a form determined by the department. (b) The department shall issue a “Key Indicators Report” form to providers that shall be used to satisfy t…

(a) Any provider offering a refundable contract, or other entity assuming responsibility for refundable contracts, shall maintain a refund reserve fund in trust for the residents. This trust fund shall remain intact to accumulate interest earnings resulting from investments of li…

(a) Any transfer of money or property, pursuant to a continuing care contract found by the department to be executed in violation of this chapter, is voidable at the option of the resident or transferor for a period of 90 days from the execution of the transfer. (b) Any deed or o…

(a) The department may require a provider to submit a financial plan and periodic financial reports if any of the following apply: (1) A provider fails to submit to the department an audited annual report as required by Section 1790. (2) The department has reason to believe that …

(a) When necessary to secure an applicant’s or a provider’s performance of its obligations to depositors or residents, the department may record a notice or notices of lien on behalf of the depositors or residents. From the date of recording, the lien shall attach to all real pro…

(a) When necessary to secure the interests of depositors or residents, the department may require that the applicant or provider reestablish an escrow account, return previously released moneys to escrow, and escrow all future entrance fee payments. (b) The department may release…

The civil, criminal, and administrative remedies available to the department pursuant to this article are not exclusive and may be sought and employed by the department, in any combination to enforce this chapter.

The department, in its discretion, may condition, suspend, or revoke any permit to accept deposits, provisional certificate of authority, or certificate of authority issued under this chapter if it finds that the applicant or provider has done any of the following: (a) Violated t…

(a) If the department conditions, suspends, or revokes any permit to accept deposits, provisional certificate of authority, or certificate of authority issued pursuant to this chapter, the provider shall have a right of appeal to the department. The proceedings shall be conducted…

(a) During the period that the revocation or suspension action is pending against the permit to accept deposits, provisional certificate of authority, or certificate of authority, the provider shall not enter into any new deposit agreements or continuing care contracts. (b) The s…

(a) If the department finds that any entity has violated Section 1793.5 or one or more grounds exist for conditioning, revoking, or suspending a permit to accept deposits, provisional certificate of authority, or a certificate of authority issued under this chapter, the departmen…

In the case of any violation or threatened violation of this chapter, the department may institute a proceeding or may request the Attorney General to institute a proceeding to obtain injunctive or other equitable relief in the superior court in and for the county in which the vi…

(a) The district attorney of every county may, upon application by the department or its authorized representative, institute and conduct the prosecution of any action for violation of this chapter within his or her county. (b) This chapter shall not limit or qualify the powers o…

(a) An entity that accepts deposits and proposes to promise to provide care without having a current and valid permit to accept deposits is guilty of a misdemeanor. (b) An entity that accepts deposits and fails to place any deposit received into an escrow account as required by t…

(a) The department may petition the superior court for an order appointing a qualified administrator to operate a continuing care retirement community, and thereby mitigate imminent crisis situations where elderly residents could lose support services or be moved without proper p…

The court-appointed administrator shall immediately notify the residents of that appointment and of the status of the continuing care retirement community management.

If an administrator is appointed to rehabilitate a provider, the administrator may do any of the following: (a) Take possession of and preserve, protect and recover any assets, books, records, or property of the provider, including, but not limited to, claims or causes of action …

(a) The appointed administrator is entitled to reasonable compensation. (b) The costs compensating the administrator may be charged against the assets of the provider. When the provider’s assets and assets from the continuing care retirement community are insufficient, the depart…

(a) The department, administrator, or any interested person, upon due notice to the administrator, at any time, may apply to the court for an order terminating the rehabilitation proceedings and permitting the provider to resume possession of the provider’s property and the condu…

(a) The department may issue citations pursuant to this section containing orders of abatement and assessing civil penalties against any entity that violates Section 1771.2 or 1793.5. (b) If upon inspection or investigation, the department has probable cause to believe that an en…

(a) If at any time the department determines that further efforts to rehabilitate the provider would not be in the best interest of the residents or prospective residents, or would not be economically feasible, the department may apply to the court for an order of liquidation and…

(a) The department, administrator, or any interested person, upon due notice to the parties, may petition the court for an order terminating the rehabilitation proceedings when the rehabilitation efforts have not been successful, the continuing care retirement community has been …

A permit to accept deposits, a provisional certificate of authority, or a certificate of authority shall be forfeited by operation of law when any one of the following occurs: (a) The applicant terminates marketing for the proposed continuing care retirement community. (b) The ap…

A Certificate of Authority shall be automatically inactivated when a provider voluntarily ceases to enter into continuing care contracts with new residents. The provider shall notify the department of its intention to cease entering into continuing care contracts and shall contin…

(a) Notwithstanding any other provisions of law, a provider regulated under this chapter shall, no less than 120 days prior to the intended date of the permanent closure of a continuing care retirement community facility, as defined in paragraph (3) of subdivision (p) of Section …

No less than 90 days prior to the permanent closure of the continuing care retirement community facility, as defined in paragraph (3) of subdivision (p) of Section 1771, the provider shall provide to the department, the affected residents of the facility and their designated repr…

(a) In the case of a permanent closure, the provider shall offer the resident the choice of the following four options, the terms of which shall not be less than the terms of the continuing care contract entered into between the resident and the provider as if that contract had b…

(a) When there is a permanent closure, as defined in paragraph (3) of subdivision (p) of Section 1771, within 30 days of submitting the relocation plan to the department, the provider shall fund a reserve, set up a trust fund, or secure a performance bond to ensure the fulfillmen…

(a) The provider shall submit monthly progress reports to the department detailing the progress and problems associated with the permanent closure, as defined in paragraph (3) of subdivision (p) of Section 1771, until all affected residents are relocated and all required payments…

(a) In the event of receivership or liquidation, all claims made against a provider based on the provider’s continuing care contracts shall be preferred claims against all assets owned by the provider. However, these preferred claims shall be subject to any perfected claims secur…

(a) All providers shall include in resident contracts the procedures to be followed to ensure that residential temporary relocations provide comparable levels of care, services, and living accommodations as described in the resident’s contract. (b) The provider shall notify the r…

The provider shall set forth specific procedures for the resident to follow regarding relocation to the unit originally vacated, the selection of a new unit, and timeframes for making choices. Procedures for returning the relocated resident when residential units will be ready fo…

For purposes of this chapter, the definitions contained in this article shall apply.

“Account” means the Cleanup Loans and Environmental Assistance to Neighborhoods Account established pursuant to Section 80350.

(a) “Brownfield” means property that meets all of the following conditions: (1) It is located in an urban area. (2) It was previously the site of an economic activity that is no longer in operation at that location. (3) It has been vacant or has had no occupant engaged in year-ro…

“Cleanup and abatement order” means an order issued by a regional board pursuant to Section 13304 of the Water Code.

“Cleanup Loans and Environmental Assistance to Neighborhoods Program” or “CLEAN” means the loan program established by the department pursuant to Article 6 (commencing with Section 80450), to finance the performance of actions necessary to respond to the release or threatened rel…

“Economic activity” means a governmental activity, a commercial, agricultural, industrial, or not-for-profit enterprise, or other economic or business concern.

(a) “Eligible property” means a site that is any of the following: (1) A brownfield. (2) An underutilized property that is a property described in paragraph (5) of subdivision (d) of Section 80275. (3) An underutilized property that is a property located in any of the following: …

(a) “Hazardous material” means a substance or waste that, because of its physical, chemical, or other characteristics, may pose a risk of endangering human health or safety or of degrading the environment. “Hazardous material” includes, but is not limited to, all of the following…