California Health and Safety Code ARTICLE 6 - Reporting and Reserve Requirements

• Section 1789.
  (a)  A provider shall notify the department and obtain its approval before making any changes to any of the following: its name; its business structure...
• Section 1789.1.
  (a)  Before executing a deposit agreement or continuing care agreement, or receiving any payment from a depositor or prospective resident, a provider shall deliver to...
• Section 1789.2.
  (a)  A provider shall provide the department with written notice at least 90 calendar days prior to closing any transaction that results in an encumbrance...
• Section 1789.4.
  (a)  A provider for a continuing care retirement community shall obtain approval from the department before consummating any sale or transfer of the continuing care...
• Section 1789.6.
  A provider shall record with the county recorder a “Notice of Statutory Limitation on Transfer” for each community as required by subdivision (aa) of Section...
• Section 1789.8.
  Each provider shall obtain and maintain in effect insurance or a fidelity bond for each agent or employee, who, in the course of his or...
• Section 1790.
  (a) Each provider that has obtained a provisional or final certificate of authority and each provider that possesses an inactive certificate of authority shall submit an...
• Section 1791.
  (a)  An annual fee shall be required of each provider which has obtained a provisional or final certificate of authority. (b)  Each annual report submitted...
• Section 1792.
  (a) A provider shall maintain at all times qualifying assets as a liquid reserve in an amount that equals or exceeds the sum of the following:(1) The...
• Section 1792.2.
  (a)  A provider shall satisfy its liquid reserve obligation with qualifying assets. Qualifying assets are: (1)  Cash. (2)  Cash equivalents as defined in paragraph (4)...
• Section 1792.3.
  (a)  Each provider shall include in its liquid reserve a reserve for its long-term debt obligations in an amount equal to the sum of all...
• Section 1792.4.
  (a) Each provider shall include in its liquid reserve a reserve for its operating expenses in an amount that equals or exceeds 75 days’ net operating...
• Section 1792.5.
  (a) The provider shall compute its liquid reserve requirement as of the end of the provider’s most recent fiscal yearend based on its audited financial statements...
• Section 1792.6.
  (a) Any provider offering a refundable contract, or other entity assuming responsibility for refundable contracts, shall maintain a refund reserve in trust for the residents. The...
• Section 1792.7.
  (a) The Legislature finds and declares all of the following:(1) In continuing care contracts, providers offer a wide variety of living accommodations and care programs for an...
• Section 1792.8.
  (a) For purposes of this article, “actuarial study” means an analysis that addresses the current actuarial financial condition of a provider that is performed by...
• Section 1792.9.
  (a) All providers shall file annually with the department a financial report disclosing key financial ratios and other key indicators in a form determined by the...
• Section 1792.10.
  (a) Each provider that has entered into Type A contracts shall submit to the department, at least once every five years, an actuary’s opinion as to...
• Section 1793.
  (a) Any provider offering a refundable contract, or other entity assuming responsibility for refundable contracts, shall maintain a refund reserve fund in trust for the residents....

Last modified: October 22, 2018