Continuing care retirement communities: repayable contracts.
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Majority
Fiscal committee
No
Appropriation
No
Current location
Passed
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill clarifies the definition of a ‘repayable contract’ within continuing care retirement communities. It specifies that a repayable contract includes a promise to repay a portion of the entrance fee based on the order in which such contracts are terminated, requiring providers to assign sequential repayment numbers and issue repayments within 14 days when funds are available. This aims to provide greater transparency and predictability for residents regarding potential refunds.
Key provisions
- Defines a ‘repayable contract’ as one including a promise to repay all or part of an entrance fee based on the sequential order of contract terminations.
- Requires providers to assign sequential repayment numbers to terminated contracts.
- Mandates repayment within 14 days when sufficient funds are available in a sequential repayment account.
- Specifies that the repayment account is funded by entrance fees received from reoccupied residential living units.
- Clarifies that a provider may repay an entrance fee before the resale of the unit or before the resident’s sequential number is reached.
- Reinforces that the repayment of an entrance fee before the resale or sequential number is reached does not trigger refund reserve requirements.
- Amends Section 1771 of the Health and Safety Code to include these definitions and requirements.
- Requires providers to issue repayment within 14 days.
Who is affected
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1 on record
Primary sponsor
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