The bill seeks to enhance the regulatory framework governing continuing care retirement communities (CCRCs) in Washington State by amending existing laws and introducing new definitions and requirements. Notably, it expands the definition of "continuing care retirement community" to include "life plan community" and introduces a new definition for "life care contract." To ensure compliance and financial stability, the bill requires CCRC applicants to submit detailed documentation, including residency agreements and audited financial statements, along with an actuarial analysis for those offering life care contracts, effective July 1, 2027. The Department of Social and Health Services will work with the Office of the Insurance Commissioner to review these analyses, thereby reinforcing the CCRCs' ability to fulfill their contractual obligations.

Additionally, the bill establishes a registration process for CCRCs based on application completeness and actuarial review outcomes, while emphasizing the confidentiality of submitted materials. It prohibits unregistered entities from misrepresenting themselves as CCRCs and mandates the maintenance of a public online registry of registered CCRCs, which will include links to actuarial analysis results. The bill also addresses the confidentiality and disclosure of documents related to the insurance commissioner’s responsibilities, ensuring that certain documents remain exempt from public disclosure. Furthermore, it requires the insurance commissioner to prepare an implementation status report by December 1, 2026, to assess the need for independent reviews of actuarial analyses and propose a fee structure for such reviews, with this section set to expire on January 1, 2028. The overall aim of the legislation is to bolster consumer protection and ensure the financial viability of CCRCs through enhanced oversight and transparency.

Statutes affected:
Original bill: 18.390.010, 18.390.030, 18.390.040, 18.390.050, 48.02.065
Substitute bill: 18.390.010, 18.390.030, 18.390.040, 18.390.050, 48.02.065
Second substitute: 18.390.010, 18.390.030, 18.390.040, 18.390.050, 48.02.065
Bill as passed Legislature: 18.390.010, 18.390.030, 18.390.040, 18.390.050, 48.02.065
Session law: 18.390.010, 18.390.030, 18.390.040, 18.390.050, 48.02.065