(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 retirement community or any interest in that community, other than sale of an equity interest in a unit to a resident or other transferor.
(b) The provider shall provide written notice to the department at least 120 calendar days prior to consummating the proposed transaction.
(c) The notice required by this section shall include all of the following:
(1) The identity of the purchaser.
(2) A description of the terms of the transfer or sale, including the sales price.
(3) A plan for ensuring performance of the existing continuing care contract obligations.
(d) The provider shall give written notice to all continuing care contract residents and depositors 120 calendar days prior to the sale or transfer. The notice shall do all of the following:
(1) Describe the parties.
(2) Describe the proposed sale or transfer.
(3) Describe the arrangements for fulfilling continuing care contract obligations.
(4) Describe options available to any depositor or resident who does not wish to have his or her contract assumed by a new provider.
(5) Include an acknowledgment of receipt of the notice to be signed by the resident.
(e) Unless a new provider assumes all of the continuing care obligations of the selling provider at the close of the sale or transfer, the selling provider shall set up a trust fund or secure a performance bond to ensure the fulfillment of all its continuing care contract obligations.
(f) The purchaser shall make applications for, and obtain, the appropriate licenses and a certificate of authority before executing any continuing care contracts or assuming the selling provider’s continuing care contract obligations.
(Amended by Stats. 2000, Ch. 820, Sec. 55. Effective January 1, 2001.)