CAL.Regulation
California regulates sequential repayment of retirement-community entrance fees
Governor Gavin Newsom signed AB 1983 (Chapter 281, Statutes of 2026) on September 18, 2026, amending Health and Safety Code sections 1771, 1788 and 1788.4. From January 1, 2027, a continuing care retirement community offering repayable in sequential order contracts must keep a repayment account, number each terminated contract and repay them in that order from later entrance fees. Contracts must disclose the average and longest wait between termination and repayment over the past five years.
Enrolled text (California Legislative Information) →
Key points
- AB 1983 became Chapter 281, Statutes of 2026, approved September 18, 2026; non-urgency, effective January 1, 2027.California Legislative Information
- Repayment goes in the order contracts terminate, drawn from a sequential repayment account funded by entrance fees.California Legislative Information
- Contracts must state the average and longest time between termination and repayment over the last five years.California Legislative Information
- Disclosure must cover how many contracts were deposited and repaid from the account in five years.California Legislative Information
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RegulationCal.AB 1983 - Continuing care retirement communities: repayable contracts (2026)Consumer protectionContractsFor practitionersFor governance