The department, in its discretion, may condition, suspend, or revoke any permit to accept deposits, provisional certificate of authority, or certificate of authority issued under this chapter if it finds that the applicant or provider has done any of the following:

(a)  Violated this chapter or the rules and regulations adopted under this chapter.

(b)  Aided, abetted, or permitted the violation of this chapter or the rules and regulations adopted under this chapter.

(c)  Had a license suspended or revoked pursuant to the licensing provisions of Chapter 2 (commencing with Section 1250) or Chapter 3.2 (commencing with Section 1569).

(d)  Made a material misstatement, misrepresentation, or fraud in obtaining the permit to accept deposits, provisional certificate of authority, or certificate of authority.

(e)  Demonstrated a lack of fitness or trustworthiness.

(f)  Engaged in any fraudulent or dishonest practices of management in the conduct of business.

(g)  Misappropriated, converted, or withheld moneys.

(h)  After request by the department for an examination, access to records, or information, refused to be examined or to produce its accounts, records, and files for examination, or refused to give information with respect to its affairs, or refused to perform any other legal obligations related to an examination.

(i)  Manifested an unsound financial condition.

(j)  Used methods and practices in the conduct of business so as to render further transactions by the provider or applicant hazardous or injurious to the public.

(k)  Failed to maintain at least the minimum statutory reserves required by Section 1792.2.

( l)  Failed to maintain the reserve fund escrow account for prepaid continuing care contracts required by Section 1792.

(m)  Failed to comply with the refund reserve requirements stated in Section 1793.

(n)  Failed to comply with the requirements of this chapter for maintaining escrow accounts for funds.

(o)  Failed to file the annual report described in Section 1790.

(p)  Violated a condition on its permit to accept deposits, provisional certificate of authority, or certificate of authority.

(q)  Failed to comply with its approved financial and marketing plan or to secure approval of a modified plan.

(r)  Materially changed or deviated from an approved plan of operation without the prior consent of the department.

(s)  Failed to fulfill his or her obligations under continuing care contracts.

(t)  Made material misrepresentations to depositors, prospective residents, or residents of a continuing care retirement community.

(u)  Failed to submit proposed changes to continuing care contracts prior to use, or using a continuing care contract that has not been previously approved by the department.

(v)  Failed to diligently submit materials requested by the department or required by the statute.

(Amended by Stats. 2000, Ch. 820, Sec. 68. Effective January 1, 2001.)