This law requires that providers of continuing care retirement communities must notify the relevant department and get approval if they want to change their name, business structure, management, or financing terms. They need to provide written notice of these proposed changes at least 60 days in advance. However, routine staff changes at the facility don't need such notification. Additionally, providers must inform the resident association about these proposed changes within 10 days after notifying the department, following a specific procedure.

The law requires that before signing or making any payments on a deposit or continuing care agreement, providers must give a disclosure statement to potential residents, as detailed by the department.

This statement must include key information about the continuing care retirement community such as general information, financial details, and more.

It should cover the community's basic details, ownership, contract types, amenities, financial history, debts, financial ratios, monthly fees, and even comments explaining any facts listed.

Providers must update these disclosures every year following their financial audits and submit them to the department using the specified form.

Providers must notify the department 90 days before placing any new financial burden on a continuing care retirement community. This notice must detail the transaction's terms, repayment sources, effects on resident fees, and reserve impacts.

The department acknowledges this notice in seven days and may ask for more information within 30 days. They decide on the transaction within 90 days after receiving additional details.

Transactions can't proceed without the department's approval, unless response times lapse. If the transaction will significantly raise fees or harm reserves, the department can refuse approval, place a lien, or take other protective actions.

Residents must be notified within 10 days of notifying the department.

If a continuing care retirement community wants to sell or transfer any part of their community, they must first get approval from the state's department, except when selling a unit directly to a resident. They must notify the department 120 days before the transaction and include details about the buyers and terms of the sale, along with a plan for ongoing care obligations.

Residents and depositors must also be informed about the sale 120 days in advance, with information on the parties involved and how their care contracts will be managed. Residents must acknowledge receipt of the notice. If the new buyer doesn't take over all care obligations, the current provider must set aside funds or a bond to ensure residents' contracts are honored.

The buyer must obtain necessary licenses and a certificate before handling resident contracts.

This law requires providers to file a 'Notice of Statutory Limitation on Transfer' with the county recorder's office for each community. This is done to comply with specific rules set out in other related sections.

This law requires providers to have insurance or a fidelity bond for any agent or employee who handles a significant amount of funds. This obligation is distinct from any bonding requirements for elderly residential care facilities.

This section requires continuing care providers with certain certificates to submit an annual financial report to the department. This report includes audited financial statements, reserve details, and documentation on any fee increases. Providers must also submit evidence of reserves held for contracts and other financial obligations.

If the report is late, there are financial penalties, although these can be waived. The CEO must certify the report's accuracy. Providers can also be required to amend their report to prevent misleading information.

Small providers caring for 10 or fewer residents can request to set up a trust instead of filing a report, with departmental approval. The department may charge for further analysis if necessary, with costs reimbursed by the provider.

This law requires providers with a provisional or final certificate of authority to pay an annual fee. The fee is calculated as 0.1% of their total operating expenses that go towards continuing care contract residents. These expenses exclude debt service and depreciation and are detailed in audited financial statements. If a provider is exempt from submitting annual reports, they must pay a minimum fee of $250. This fee is due after the fiscal year ends and must include proof of a trust fund or performance bond, as specified in another section.

This law requires that providers maintain a certain amount of financial assets, known as a liquid reserve, to cover their debt and operating expenses. The liquid reserve should match or exceed the amounts specified in related sections, with providers not needing to place these funds in escrow unless specified otherwise. If a provider's reserve is too low, they need to fix this by increasing their qualifying assets. The department may require more reserves or escrow if a provider is financially unstable or cannot meet its contractual obligations. Providers who stop offering continuing care contracts may have their reserve requirements reduced, based on resident contracts.

This law specifies the types of assets that a provider can use to meet its liquid reserve requirements. Qualifying assets include cash, cash equivalents, investment securities, equity securities, and approved lines or letters of credit. These financial instruments must meet certain criteria, like approval from the department and specific funding terms. Providers must notify the department 14 days before these credits expire if not renewed. Additionally, certain restricted assets related to debt service and operating expense reserves can also qualify, provided they are used under specific conditions and agreements. All qualifying assets must generally remain free from liens, charges, or claims unless specifically permitted under long-term debt agreements.

This law requires providers, like retirement communities or healthcare facilities, to maintain a reserve fund for long-term debt obligations. The fund must cover specific payments made in the previous year, such as regular debt payments, facility rent, and any related payments like lease insurance.

If a provider has new long-term debt, the reserve must include 12 times the last monthly payment. For debts with large final 'balloon payments' due soon, the provider must have a refinancing or payment plan. The department can waive this requirement if the residents hold interests in a trust overseeing the payments, but only if it doesn't compromise financial safety.

This law requires service providers to set aside enough money to cover 75 days of their operating expenses. To find out how much this is, a provider should look at their past year's expenses, divide by 365, and then multiply by 75. Not all costs count—interest on long-term debt, depreciation, some reimbursements, and certain one-time expenses are excluded. If a provider is new (less than a year old), they'll use their actual expenses and their budgeted estimates to make this calculation.

This law requires providers to calculate their liquid reserve requirement based on their recent audited financial statements. Annually, they must report the total liquid reserve needed, including specific amounts for debt service and operating expense reserves, and designate qualifying assets to meet these requirements.

Additionally, providers must declare any shortfall or excess in these reserves. Assets used for liquid reserves should be valued at fair market value as of the end of the fiscal year, except specific assets that may be valued at guaranteed values.

This law requires providers of refundable contracts, such as continuing care retirement communities, to maintain a refund reserve in trust for residents. This reserve should cover the refundable amounts for each resident and is reviewed annually. The money in the reserve can be invested in certain assets, including real estate under strict conditions. The reserve amount is calculated based on each resident’s age, refundable portion of their entry fee, and life expectancy, using specified life tables. The reserve must grow at a compound interest rate of 6% or less. Withdrawals can be made for refunds, and deposits must be made for new residents and if the fund falls below the required amount after an annual review.

This California law addresses the regulation of continuing care contracts. These are arrangements where service providers offer long-term living accommodations and care to residents in exchange for significant payments. The law requires these providers to submit annual reports, detailing financial performance over the past five years and projections for the next five years. This helps residents and the state assess the provider's stability.

Additionally, providers offering 'life care contracts' must have regular actuarial studies to ensure financial health and must file an actuary's opinion on their financial condition if they have Type A contracts. These reports need to follow specific guidelines provided by other sections of the law.

This section explains what an "actuarial study" is in the context of a provider's financial health. An actuarial study uses calculations and projections by a qualified actuary to assess a provider's finances. It includes an actuarial report, a statement of actuarial opinion, a balance sheet, pricing analysis, cashflow projection, and descriptions of methods used.

An actuary must be in good standing with the American Academy of Actuaries and qualified to provide official opinions. Additionally, it defines a "Type A contract," which is a financial agreement involving an initial fee for comprehensive services and housing with stable monthly fees, adjusting only for operating costs and inflation.

Every year, providers must submit a financial report to the department showing key financial aspects of their operations. They have to use a specific form called the "Key Indicators Report" to present information like occupancy rates, financial margins, liquidity, and capital structure.

The department will determine how each indicator should be calculated based on standard practices for analyzing continuing care providers. Providers need to file this report within 30 days after their annual report is due. Late submissions incur a $1,000 fee, with an additional $33 charged for each extra day it's late.

This law section outlines requirements for certain providers who have Type A contracts to regularly submit an actuary’s opinion on their financial condition to the department. Providers must submit this opinion based on a study ensuring their financial health is reviewed every five years. If the provider held a certificate of authority before the end of 2003, the first submission had to occur within five years of their last filing; newer providers must submit within 45 days after their annual report is due the first time, then every five years. The actuary's opinion must follow accepted standards and verify that the provider has enough financial resources to fulfill their liabilities, confirming the entity’s financial stability.

This law requires retirement communities offering refundable contracts to maintain a trust fund with reserves to ensure they can cover refunds to residents. If a retirement community plans to start offering these contracts after a certain date, they must also create such a reserve. These reserves can be partially invested in real estate if approved. Methods for calculating reserve amounts are based on the residents' anticipated longevity and entry fee refunds. The law allows exceptions for communities meeting specific criteria, like having a strong equity balance.

Providers must disclose if refundable fees aren't backed by cash reserves in their contracts and marketing materials. Financial statements and compliance with these rules are monitored annually by the state department. Notable exceptions and special calculation rules apply to communities established before certain dates.