AB 3088: Continuing care contracts: retirement communities.

Existing law regulates life care contracts, also known as continuing care contracts, and imposes certain reporting and reserve requirements on continuing care communities. Existing law requires each provider that has entered into a specified type of continuing care contract with an up-front entrance fee, known as a Type A contract, to submit to the Department of Social Services, at least once every 5 years, an actuarys opinion as to the providers actuarial financial condition.

This bill, until January 1, 2030, would instead require all providers to file an actuarys findings, report, and opinion with the department, and further require all providers to post a copy of that information in its facility and on its Internet Web site within 10 days of filing with the department. The bill would, on January 1, 2030, reinstate the requirement for providers that entered into Type A contracts to file an actuarys opinion.

The bill would require each provider to conduct, at least once every 5 years, a review of the accessible areas that the provider is obligated to repair, replace, restore, or maintain within the facility, as specified. The bill would require the governing body of each provider to use the review to consider and implement necessary adjustments to its reserve account requirements. The bill would require each provider to submit to the department, at least once every 5 years, a summary of the maintenance and replacement review and the adjustments the governing body of the provider has made or plans to make as a result of the review. The bill would also require the provider to post a copy of the summary and adjustment plan in its facility and on its Internet Web site.