§ 1779. — 1779. (Amended by Stats. 2000, Ch. 820, Sec. 25.)

(a)
An entity shall file an application for a permit to accept deposits and for a certificate of authority with the department, as set forth in this chapter, before doing any of the following:
(1)
Accepting any deposit, reservation fee, or any other payment that is related to a promise or proposal to promise to provide continuing care.
(2)
Entering into any reservation agreement, deposit agreement, or
continuing care contract.
(3)
Commencing construction of a prospective continuing care retirement community. If the project is to be constructed in phases, the application shall include all planned phases.
(4)
Expanding an existing continuing care retirement community whether by converting existing buildings or by new construction.
(5)
Converting an existing structure to a continuing care retirement community.
(6)
Recommencing marketing on a planned continuing care retirement community when the applicant has previously forfeited a permit to accept deposits pursuant to Section 1703.7.
(7)
Executing new continuing care contracts after a provisional certificate of authority or
certificate of authority has been inactivated, revoked, surrendered, or forfeited.
(8)
Closing the sale or transfer of a continuing care retirement community or assuming responsibility for continuing care contracts.
(b)
For purposes of paragraph (4) of subdivision (a), an expansion of a continuing care retirement community shall be deemed to occur when there is an increase in the capacity stated on the residential care facility for the elderly license issued to the continuing care retirement community, an increase in the number of units at the continuing care retirement community, an increase in the number of skilled nursing beds, or additions to or replacement of existing continuing care retirement community structures that may affect obligations to current residents.
(c)
Any provider that alters, or proposes
to alter, its organization, including by means of a change in the type of entity it is, separation from another entity, merger, affiliation, spinoff, or sale, shall file a new application and obtain a new certificate of authority before the new entity may enter into any new continuing care contracts.
(d)
A new application shall not be required for an entity name change if there is no change in the entity structure or management. If the provider undergoes a name change, the provider shall notify the department in writing of the name change and shall return the previously issued certificate of authority for reissuance under the new name.
(e)
Within 10 days of submitting an application for a certificate of authority pursuant to paragraph (3), (4), (7), or (8) of subdivision (a), the provider shall notify residents of the provider’s existing community or communities of its
application. The provider shall notify its resident associations of any filing with the department to obtain new financing, additional financing for a continuing care retirement community, the sale or transfer of a continuing care retirement community, any change in structure, and of any applications to the department for any expansion of a continuing care retirement community. A summary of the plans and application shall be posted in a prominent location in the continuing care retirement community so as to be accessible to all residents and the general public, indicating in the summary where the full plans and application may be inspected in the continuing care retirement community.
(f)
When the department determines that it has sufficient information on the provider or determines that the provisions do not apply and the protections provided by this article are not compromised, the department may eliminate all or portions of the application
contents required under Section 1779.4 for applications filed pursuant to paragraphs (4), (5), (6), (7), and (8) of subdivision (a) or pursuant to subdivision (c).

Legislative History

Amended by Stats. 2000, Ch. 820, Sec. 25. Effective January 1, 2001.