Elderly care: continuing care contracts: financial reporting requirements.

Existing law establishes the State Department of Social Services and sets forth its various powers and duties, including, but not limited to, its licensure and regulation of community care facilities, including, but not limited to, residential care facilities for the elderly. Existing law provides for the regulation by the department of continuing care contracts and providers of continuing care and requires providers to submit an annual report of their financial condition. Existing law requires the report to include, among other things, a disclosure of funds accumulated for identified projects or purposes, and any funds maintained or designated for specific contingencies. Violation of certain of these provisions is a crime. This bill would require that the report also disclose funds that are expended for identified projects or purposes. The bill would also specify that the disclosure requirement includes, but is not limited to, projects designated to meet the needs of the continuing care retirement community as permitted by a provider's nonprofit status. This bill would require a disclosure made by a nonprofit provider to state how the project or purpose is consistent with the provider's tax-exempt status. The bill would also require a disclosure made by a for-profit provider to identify amounts accumulated for specific projects or purposes and amounts maintained for contingencies. By expanding the scope of an existing crime, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.