A bill introduced in the California State Assembly, AB 1379 (Quirk, D-Hayward), would change the way the allocations are calculated and rename the Continuing Care Provider Fee Fund. The bill would also require enhanced financial reporting to the Department of Social Services if certain conditions are met.
AB 1379 would rename the Provider Fee Fund to the “CCRC Oversight Fund” and remove the $500,000 cap on the fund and, instead, require that the fund appropriate enough to “adequate[ly]…fund the reasonable regulatory costs of the program…for the year.”
The bill would also require that CCRCs submit a financial plan and quarterly financial reports to the Department if any of the two events occur: 1) Occupancy falls below 85 percent, 2) the provider fails to maintain the nimimum reserve requirement, 3) if mortgage or bond financing exists, if the provider’s debt service coverage ratio is less than 1:1 and the provider has less than 90 days’ cash on hand, and 4) if no mortgage or bond financing exists, if the provider has less than 90 day’s cash on hand.
AB 1379 would require that the plan and the quarterly financial reports be distributed to the resident’s council. The bill would also require the provider to share its approved financial plan to prospective or incoming residents.