California 2015-2016 Regular Session Status: Enacted

SB 939 — Continuing care contracts: cancellation: payments.

Last action — Chaptered by Secretary of State. Chapter 112, Statutes of 2016.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 03, 2016. Enacted.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 6 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Existing law requires a continuing care retirement facility, as defined, to possess a certificate of authority issued by the State Department of Social Services before it can enter into a continuing care contract, as defined. Existing law requires that a continuing care contract be in writing and contain specified information. Existing law provides that a continuing care contract may be canceled without cause by written notice from either party within 90 days of the resident's initial occupancy. Existing law requires a provider to pay, during the cancellation period, all refunds owed to a resident within 14 days after a resident makes possession of the living unit available to the provider. Existing law requires a provider to pay a lump-sum payment that is conditioned upon resale of a unit to a resident within 14 days after resale of the unit. This bill would define a repayable contract as a continuing care contract that includes a promise to repay all or a portion of an entrance fee that is conditioned upon reoccupancy or resale of the unit previously occupied by the resident. The bill would require any amount owed that is not paid to a resident or the resident's estate within 180 days after termination of a repayable contract to accrue simple interest at a rate of 4% until the full amount owed is paid. The bill would require any amount owed that is not paid to a resident or the resident's estate within 240 days after termination of a repayable contract to accrue simple interest at a rate of 6% until the full amount owed is paid. The bill would require any amount owed that is not paid to a resident or the resident's estate within one year after the 240-day period to accrue compound interest annually at a rate of 6% until the amount owed is paid. The bill would provide that the above-mentioned provisions apply only to repayable contracts entered into on or after January 1, 2017. The bill would provide that, until January 1, 2018, these provisions do not apply to specified projects that are in development prior to January 1, 2017, provided that the initial contract for the project is entered into on or before January 1, 2018. The bill would provide that the repayment by a provider of all or a portion of an entrance fee before the resale of a unit would not subject any other entrance fee to the refund reserve requirements, except as provided. The bill would make corresponding changes to require a continuing care contract to contain a statement that a provider is prohibited from charging the resident or his or her estate a monthly fee once a unit has been permanently vacated by the resident, unless the fee is part of an equity interest contract. The bill would also require a continuing care contract that provides for a refund or repayment of a lump sum of all or part of the entrance fee to include a statement that the provider will make a good-faith effort to reoccupy or resell a unit for which a lump-sum payment is conditioned upon resale of the unit.

Bill Text

Action History

  1. Chaptered by Secretary of State. Chapter 112, Statutes of 2016.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 4 p.m.

  4. Assembly amendments concurred in. (Ayes 37. Noes 0. Page 4637.) Ordered to engrossing and enrolling.

  5. In Senate. Concurrence in Assembly amendments pending.

  6. Read third time. Passed. (Ayes 50. Noes 23. Page 5517.) Ordered to the Senate.

  7. Read second time. Ordered to third reading.

  8. From committee: Do pass. (Ayes 4. Noes 2.) (June 21).

  9. Read second time and amended. Re-referred to Com. on AGING & L.T.C.

  10. From committee: Do pass as amended and re-refer to Com. on AGING & L.T.C. (Ayes 6. Noes 1.) (June 14).

  11. From committee with author's amendments. Read second time and amended. Re-referred to Com. on HUM. S.

  12. Referred to Coms. on HUM. S. and AGING & L.T.C.

  13. In Assembly. Read first time. Held at Desk.

  14. Read third time. Passed. (Ayes 34. Noes 0. Page 3576.) Ordered to the Assembly.

  15. Read second time and amended. Ordered to third reading.

  16. From committee: Do pass as amended. (Ayes 3. Noes 0. Page 3518.) (April 12).

  17. Set for hearing April 12.

  18. Referred to Com. on HUMAN S.

  19. From printer. May be acted upon on or after March 5.

  20. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

  • Monning · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on · 6 voted No

Sponsors (1)

  • Monning

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Unfinished Business SB939 Monning Concurrence

Passed 37 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 34003
Democratic 3000
Total 37003
% of votes cast 93%0%0%8%
How each member voted (40)
Member Party Vote
Anderson — Yea
Bates — Yea
Block — Yea
Hertzberg — Yea
Leyva — Yea
Pan — Yea
Wolk — Not Voting
Fuller — Yea
Galgiani — Yea
Allen — Yea
Cannella — Yea
Glazer — Yea
Mitchell — Yea
De León — Yea
Runner — Not Voting
Hall — Yea
Hancock — Yea
Beall — Yea
Hernandez — Yea
Hill — Yea
Hueso — Yea
Huff — Yea
Lara — Yea
Leno — Yea
Liu — Yea
Mendoza — Yea
Monning — Yea
Moorlach — Yea
Morrell — Yea
Nielsen — Yea
Pavley — Yea
Roth — Yea
Vidak — Yea
Wieckowski — Yea
Beth Gaines — Yea
Bill Berryhill — Not Voting
Mark Stone — Yea
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Yea

Official roll call →

SB 939 Monning Senate Third Reading By BROWN

Passed 50 Yea · 23 Nay · 7 Other
Party YeaNayPresentNot Voting
Unaffiliated 441907
Democratic 5000
Republican 1400
Total 502307
% of votes cast 63%29%0%9%
How each member voted (80)
Member Party Vote
Achadjian — Nay
Alejo — Yea
Baker — Nay
Bigelow — Nay
Bloom — Yea
Brough — Nay
Brown — Yea
Harper — Nay
Holden — Yea
Levine — Yea
Maienschein — Nay
O'Donnell — Yea
Ridley-Thomas — Yea
Santiago — Not Voting
Williams — Yea
Wood — Yea
Eggman — Yea
Chiu — Yea
Chu — Yea
Cooper — Yea
Frazier — Yea
Burke — Yea
Campos — Yea
Gatto — Yea
Salas — Yea
Bonilla — Yea
Gomez — Yea
Gordon — Yea
Gray — Yea
Lopez — Yea
Jones-Sawyer — Yea
Linder — Yea
Low — Yea
McCarty — Yea
Chau — Yea
Cooley — Yea
Dababneh — Yea
Daly — Yea
Dodd — Yea
Mullin — Yea
Nazarian — Yea
Rodriguez — Yea
Weber — Yea
Wilk — Yea
Chávez — Nay
Mayes — Nay
Melendez — Nay
Olsen — Nay
Quirk — Yea
Ting — Yea
Wagner — Nay
Obernolte — Nay
Atkins — Not Voting
Chang — Nay
Hadley — Nay
Kim — Nay
Mathis — Nay
Medina — Not Voting
Rendon — Not Voting
Steinorth — Nay
Thurmond — Not Voting
Waldron — Not Voting
Beth Gaines — Nay
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Not Voting
Lorena Gonzalez — Yea
Mark Stone — Yea
Roger Hernández — Yea
Travis Allen — Nay
Arambula, Joaquin Democratic Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Gipson, Mike A. Democratic Yea
Irwin, Jacqui Democratic Yea
Dahle, Megan Republican Nay
Gallagher, James Republican Nay
Grove, Shannon Republican Yea
Jones, Brian W. Republican Nay
Lackey, Tom Republican Nay

Official roll call →

Do pass.

Passed 4 Yea · 2 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 4100
Democratic 0001
Republican 0100
Total 4201
% of votes cast 57%29%0%14%
How each member voted (7)
Member Party Vote
Brown — Yea
Lopez — Yea
Gray — Yea
Hadley — Nay
Levine — Yea
Gipson, Mike A. Democratic Not Voting
Dahle, Megan Republican Nay

Official roll call →

3rd Reading

Passed 34 Yea · 0 Nay · 6 Other
Party YeaNayPresentNot Voting
Unaffiliated 31006
Democratic 3000
Total 34006
% of votes cast 85%0%0%15%
How each member voted (40)
Member Party Vote
Huff — Not Voting
Lara — Yea
Mendoza — Yea
Nielsen — Not Voting
Pan — Yea
Pavley — Yea
Fuller — Not Voting
Glazer — Yea
Galgiani — Yea
Hill — Yea
Leno — Yea
Allen — Yea
Cannella — Yea
Mitchell — Yea
De León — Yea
Anderson — Yea
Wolk — Yea
Runner — Not Voting
Hernandez — Yea
Bates — Yea
Beall — Yea
Block — Yea
Hertzberg — Yea
Hueso — Yea
Leyva — Yea
Liu — Yea
Monning — Yea
Moorlach — Yea
Morrell — Not Voting
Roth — Yea
Vidak — Yea
Wieckowski — Yea
Hall — Yea
Hancock — Yea
Beth Gaines — Yea
Bill Berryhill — Not Voting
Mark Stone — Yea
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Yea

Official roll call →

Subjects

housing healthcare labor
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 939 do?
Existing law requires a continuing care retirement facility, as defined, to possess a certificate of authority issued by the State Department of Social Services before it can enter into a continuing care contract, as defined. Existing law requires that a continuing care contract be in writing and contain specified information. Existing law provides that a continuing care contract may be canceled without cause by written notice from either party within 90 days of the resident's initial occupancy. Existing law requires a provider to pay, during the cancellation period, all refunds owed to a resident within 14 days after a resident makes possession of the living unit available to the provider. Existing law requires a provider to pay a lump-sum payment that is conditioned upon resale of a unit to a resident within 14 days after resale of the unit. This bill would define a repayable contract as a continuing care contract that includes a promise to repay all or a portion of an entrance fee that is conditioned upon reoccupancy or resale of the unit previously occupied by the resident. The bill would require any amount owed that is not paid to a resident or the resident's estate within 180 days after termination of a repayable contract to accrue simple interest at a rate of 4% until the full amount owed is paid. The bill would require any amount owed that is not paid to a resident or the resident's estate within 240 days after termination of a repayable contract to accrue simple interest at a rate of 6% until the full amount owed is paid. The bill would require any amount owed that is not paid to a resident or the resident's estate within one year after the 240-day period to accrue compound interest annually at a rate of 6% until the amount owed is paid. The bill would provide that the above-mentioned provisions apply only to repayable contracts entered into on or after January 1, 2017. The bill would provide that, until January 1, 2018, these provisions do not apply to specified projects that are in development prior to January 1, 2017, provided that the initial contract for the project is entered into on or before January 1, 2018. The bill would provide that the repayment by a provider of all or a portion of an entrance fee before the resale of a unit would not subject any other entrance fee to the refund reserve requirements, except as provided. The bill would make corresponding changes to require a continuing care contract to contain a statement that a provider is prohibited from charging the resident or his or her estate a monthly fee once a unit has been permanently vacated by the resident, unless the fee is part of an equity interest contract. The bill would also require a continuing care contract that provides for a refund or repayment of a lump sum of all or part of the entrance fee to include a statement that the provider will make a good-faith effort to reoccupy or resell a unit for which a lump-sum payment is conditioned upon resale of the unit.
Who sponsors SB 939?
SB 939 is sponsored by Monning.
What is the current status of SB 939?
This bill has been enacted into law. Introduced February 03, 2016. Enacted.
Where can I track SB 939?
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