Section 1771.3 Of Article 1. General Provisions From California Health And Safety Code >> Division 2. >> Chapter 10. >> Article 1.
1771.3
. (a) This chapter shall not apply to either of the
following:
(1) An arrangement for the care of a person by a relative.
(2) An arrangement for the care of a person or persons from only
one family by a friend.
(b) This chapter shall not apply to any admission or residence
agreements offered by residential communities for the elderly or
residential care facilities for the elderly that promise residents
preferred access to assisted living services or nursing care, when
each of the following conditions is satisfied:
(1) Residents pay on a fee-for-service basis for available
assisted living services and nursing care.
(2) The fees paid for available assisted living services and
nursing care are the same for residents who have previously occupied
a residential living unit as for residents who have not previously
occupied a residential living unit.
(3) No entrance fee or prepayment for future care or access, other
than monthly care fees, is paid by, or charged to, any resident at
the community or facility. For purposes of this paragraph, the term
entrance fee shall not include initial, deferred, or amortized
payments that cumulatively do not exceed seven thousand five hundred
dollars ($7,500).
(4) The provider has not made a continuing care promise of
preferred access, other than a promise as described in paragraph (5).
(5) The admission or residence agreement states:
(A) "This agreement does not guarantee that an assisted living or
nursing bed will be available for residents, but, instead, promises
preferred access to any assisted living or nursing beds that are
available at the community or facility. The promise of preferred
access gives residents who have previously occupied a residential
living unit a right over other persons to such beds."
(B) "A continuing care contract promises that care will be
provided to residents for life or for a term in excess of a year.
(Name of community or facility) is not a continuing care retirement
community and (name of provider) does not hold a certificate of
authority to enter into continuing care contracts and is not required
to have the same fiscal reserves as a continuing care provider. This
agreement is not a continuing care contract and is exempted from the
continuing care statutes under subdivision (b) of Section 1771.3 of
the Health and Safety Code so long as the conditions set forth in
that section are met."
(6) The admission or residence agreement also states the policies
and procedures regarding transfers to higher levels of care within
the community or facility.
(c) Any entity may apply to the department for a Letter of
Exemption stating that the requesting entity satisfies the
requirements for an exemption under this section.
(d) The department shall issue a Letter of Exemption to a
requesting entity if the department determines either of the
following:
(1) The requesting entity satisfies each of the requirements for
an exemption under subdivision (b).
(2) The requesting entity satisfies each of the requirements for
an exemption under subdivision (b) other than the requirements of
paragraph (2) of subdivision (b), and there is no substantial
difference between the following:
(A) The fees for available assisted living services and skilled
nursing care paid by residents who have previously occupied a
residential living unit.
(B) The fees for available assisted living services and skilled
nursing care paid by residents who have not previously occupied a
residential living unit.
(e) An application to the department for a Letter of Exemption
shall include all of the following:
(1) A nonrefundable one thousand dollar ($1,000) application fee.
(2) The name and business address of the applicant.
(3) A description of the services and care available or provided
to residents of the community or facility.
(4) Documentation establishing that the requesting entity
satisfies the requirements for an exemption under this section,
including all of the following:
(A) A schedule showing all fees for assisted living services and
skilled nursing care charged to residents at the facility or
community who have previously occupied a residential living unit.
(B) A schedule showing all fees for assisted living services and
skilled nursing care charged to residents at the facility or
community who have not previously occupied a residential living unit.
(C) A description of the differences between the fees for assisted
living services and skilled nursing care charged to residents who
have not previously occupied a residential unit and the fees for
assisted living services and skilled nursing care charged to
residents who have previously occupied a residential unit.
(D) A schedule showing any other fees charged to residents of the
community or facility.
(E) Copies of all admission and residence agreement forms that
have been entered into, or will be entered into, with residents at
the community or facility.
(5) Any other information reasonably requested by the department.
(f) If at any time any of the conditions stated in this section
are not satisfied, then the requirements of this chapter apply, and
the department may impose appropriate remedies and penalties set
forth in Article 7 (commencing with Section 1793.5).