Section 1786 Of Article 4. Certificate Of Authority From California Health And Safety Code >> Division 2. >> Chapter 10. >> Article 4.
1786
. (a) The department shall issue a provisional certificate of
authority when an applicant has done all of the following:
(1) Complied with the approved marketing plans.
(2) Met and continues to meet the requirements imposed under
subdivision (a) of Section 1783.3. The issuance of the provisional
certificate of authority shall not require, and shall not be
dependent upon the release of escrowed funds. Release of escrowed
funds shall be governed by Section 1783.3.
(3) Completed construction of the continuing care retirement
community or applicable phase.
(4) Obtained the required licenses.
(5) Paid the remainder of the application fee.
(6) Executed a permanent mortgage loan or other long-term
financing.
(7) Provided the department with a recorded copy of the Notice of
Statutory Limitation on Transfer required by subdivision (aa) of
Section 1779.4.
(8) Met all applicable provisions of this chapter.
(b) The provisional certificate of authority shall expire 12
months after issuance unless both of the following occur:
(1) No later than 60 days prior to the expiration of the
provisional certificate of authority, the provider petitions the
department and demonstrates good cause in writing for an extension of
the provisional certificate of authority.
(2) The department determines that the provider is capable of
meeting the requirements of Section 1786.2 during the extension
period.
(c) The department shall exercise its discretion to determine the
length of the extension period.
(d) After the provisional certificate of authority is issued
providers may continue to take deposits by modifying the deposit
agreement as appropriate. The new deposit agreement shall clearly
state the rights of the depositor and the provider. The applicant
shall submit the agreements to the department for review and approval
prior to use. A provider that holds a provisional certificate of
authority or certificate of authority may accept fees paid by
potential residents to be placed on a waiting list without using a
deposit agreement. These waiting list fees may not exceed five
hundred dollars ($500), and shall be refunded to the potential
resident upon written request.
(e) All holders of a provisional certificate of authority shall
request in writing a certificate of authority when the requirements
of Section 1786.2 have been met.