AMENDED IN SENIOR SENATE OCTOBER 17, 2006

SENIOR ASSEMBLY PROPOSAL NO. 7

INTRODUCED BY SENIOR ASSEMBLY MEMBER GLASMEIER

LEGISLATIVE COUNSEL’S DIGEST

AP 7: RESIDENTIAL CARE FACILITIES FOR THE ELDERLY: RATES.

UNDER EXISTING LAW, THE LICENSURE AND OPERATION OF RESIDENTIAL CARE FACILITIES FOR THE ELDERLY IS REGULATED, INCLUDING REGULATIONS REGARDING THE BASIC SERVICES A FACILITY IS REQUIRED TO PROVIDE. EXISTING LAW REQUIRES A LICENSEE OF A RESIDENTIAL CARE FACILITY FOR THE ELDERLY THAT INCREASES THE RATES OF FEES FOR RESIDENTS OR MAKES INCREASES IN ANY OF ITS RATE STRUCTURES FOR SERVICES TO PROVIDE NO LESS THAN 60 DAYS PRIOR WRITTEN NOTICE TO THE RESIDENT OR THE RESIDENT’S REPRESENTATIVE.

THIS MEASURE WOULD MEMORIALIZE THE LEGiSLATURE AND THE GOVERNOR TO ENACT LEGISLATION THAT WOULD LIMIT A LICENSEE OF A RESIDENTIAL CARE FACILITY FOR THE ELDERLY TO THE ASSESSMENT OF RATE INCREASES TO THE BASIC RATES FOR SERVICES ONCE EVERY 12 MONTHS, UNLESS A CHANGE OF CONDITION REQUIRES A RATE INCREASE, AND WOULD ADDITIONALLY PROHIBIT ANY RATE INCREASE FROM BEING ASSESSED AGAINST A RESIDENT UNTIL THAT RESIDENT HAS RESIDED FOR AT LEAST 12 MONTHS IN THE FACILITY.

VOTE: MAJORITY.

AP 7: RELATING TO RESIDENTIAL CARE FACILITIES FOR THE ELDERLY

WHEREAS, LICENSED RESIDENTIAL CARE FACILITIES FOR THE ELDERLY ARE NOT SUBJECT TO CONTROLS ON RENT THAT MAY BE IMPOSED BY STATE OR LOCAL AGENCIES OR BY LOCAL GOVERNMENTS; AND

WHEREAS, LEGISLATION LIMITING RATE INCREASES IN RESIDENTIAL CARE FACILITIES FOR THE ELDERLY WOULD PROVIDE PROSPECTIVE RESIDENTS WITH A GUARANTEED PERIOD OF RESIDENCE, FREE OF FEAR OF RATE INCREASES, AND WOULD PROVIDE FOR A PERIOD DURING WHICH RESIDENTS AND PROVIDERS CAN FORM WORKING RELATIONSHIPS; NOW, THEREFORE, BE IT

RESOLVED, BY THE SENIOR ASSEMBLY AND THE SENIOR SENATE, JOINTLY, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA AT ITS 2006 REGULAR SESSION, A MAJORITY OF THE MEMBERS VOTING THEREFOR, HEREBY PROPOSES THAT LEGISLATION BE ENACTED THAT WOULD LIMIT A LICENSEE OF A RESIDENTIAL CARE FACILITY FOR THE ELDERLY TO THE ASSESSMENT OF RATE INCREASES TO THE BASIC RATES FOR SERVICES ONCE EVERY 12 MONTHS, UNLESS A CHANGE OF CONDITION REQUIRES A RATE INCREASE, AND WOULD ADDITIONALLY PROHIBIT ANY RATE INCREASE FROM BEING ASSESSED AGAINST A RESIDENT UNTIL THAT RESIDENT HAS RESIDED FOR AT LEAST 12 MONTHS IN THE FACILITY; AND BE IT FURTHER

RESOLVED, THIS LEGISLATION SHOULD REQUIRE A LICENSEE, OF A RESIDENTIAL CARE FACILITY TO INCLUDE IN ITS ADMISSION AGREEMENT A CLAUSE THAT WILL LIMIT RATE INCREASES TO THE BASIC RATE, FOR ANY RESIDENT, TO NOT EXCEED THE SUM OF THE CURRENT RATE AND THE PRODUCT OF THE CURRENT RATE MULTIPLIED BY THE ANNUAL PERCENTAGE OF INCREASE IN THE CALIFORNIA CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS; AND BE IT FURTHER

RESOLVED, THIS LEGISLATION SHOULD NOT APPLY TO ANY RESIDENT WHO IS A RECIPIENT UNDER THE STATE SUPPLEMENTARY PROGRAM FOR THE AGED, BLIND, AND DISABLED; AND BE IT FURTHER

RESOLVED, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA RESPECTFULLY MEMORIALIZES THE LEGISLATURE AND THE GOVERNOR OF THE STATE OF CALIFORNIA TO ENACT APPROPRIATE LEGISLATION THAT WOULD ADDRESS THE CONCERNS SET FORTH IN THIS MEASURE; AND BE IT FURTHER

RESOLVED, THAT A COPY OF THIS MEASURE BE TRANSMITTED TO THE SPEAKER OF THE ASSEMBLY, THE PRESIDENT PRO TEMPORE OF THE SENATE, AND THE GOVERNOR OF THE STATE OF CALIFORNIA.

RN20061898507

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