A measure which would make changes to the financial reporting requirements of Life Plan Communities (CCRCs) if they met specified conditions failed to meet a key deadline last week, rendering the bill inactive until 2020.
AB 1379 (Quirk, D-Hayward) failed to move out of the Senate Human Services Committee due to concerns brought forth by LeadingAge California and other stakeholders with concerns with the bill. The April 22nd version of the bill includes the following provisions:
- Changing the name of the Continuing Care Provider Fee Fund to the “CCRC Oversight Fund,”
- Adjusting the fees to ensure the balance of the fund is adequate to fund reasonable regulatory costs of the program for the year,
- Requiring the budget for the Continuing Care Contracts Branch to be posted on the Department’s website,
- Allowing the Department to submit quarterly financial reports if specified conditions are met; including occupancy below 85 percent, provider has less than 90 days cash on hand or who’s debt-service ratio falls below 1:1,
- Requiring that corrective action plans or plans for reorganization be shared with the facility’s resident council,
- Requiring the provider share its approved financial plan and most recently quarterly report with a prospective or incoming resident, and
- Allowing the Department to initiate “delinquency proceedings” if the provider fails to correct deficiencies by the expiration of the plan.
LeadingAge California has voiced its concerns over many of the provisions of the bill and has sought amendments to satisfy its concerns. AB 1379 is sponsored by the California Continuing Care Residents Association (CALCRA) and can be heard in the Senate Human Services Committee in January 2020.
Director of Public Policy for more information