Florida Senate - 2011 COMMITTEE AMENDMENT
Bill No. SB 1340
Barcode 857344
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
04/13/2011 .
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The Committee on Children, Families, and Elder Affairs (Hays)
recommended the following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Section 651.011, Florida Statutes, is amended to
6 read:
7 651.011 Definitions.—As used in For the purposes of this
8 chapter, the term:
9 (1) “Advertising” means the dissemination of written,
10 visual, or electronic information by a provider, or any person
11 affiliated with or controlled by a provider, to potential
12 residents or their representatives for the purpose of inducing
13 such persons to subscribe to or enter into a contract for
14 continuing care or continuing care at-home to reside in a
15 continuing care community that is subject to this chapter.
16 (2) “Continuing care” or “care” means, pursuant to a
17 contract, furnishing shelter and nursing care or personal
18 services to a resident who resides in a facility as defined in
19 s. 429.02, whether such nursing care or personal services are
20 provided in the facility or in another setting designated in by
21 the contract for continuing care, by to an individual not
22 related by consanguinity or affinity to the resident provider
23 furnishing such care, upon payment of an entrance fee. Other
24 personal services provided must be designated in the continuing
25 care contract. Contracts to provide continuing care include
26 agreements to provide care for any duration, including contracts
27 that are terminable by either party.
28 (3) “Continuing Care Advisory Council” or “advisory
29 council” means the council established in s. 651.121.
30 (4) “Continuing care at-home” means, pursuant to a contract
31 other than a contract described in subsection (2), furnishing to
32 a resident who resides outside the facility the right to future
33 access to shelter and nursing care or personal services, whether
34 such services are provided in the facility or in another setting
35 designated in the contract, by an individual not related by
36 consanguinity or affinity to the resident, upon payment of an
37 entrance fee.
38 (5)(4) “Entrance fee” means an initial or deferred payment
39 of a sum of money or property made as full or partial payment
40 for continuing care or continuing care at-home to assure the
41 resident a place in a facility. An accommodation fee, admission
42 fee, member fee, or other fee of similar form and application
43 are considered to be an entrance fee.
44 (6)(5) “Facility” means a place where that provides
45 continuing care is furnished and may include one or more
46 physical plants on a primary or contiguous site or an
47 immediately accessible site. As used in this subsection, the
48 term “immediately accessible site” means a parcel of real
49 property separated by a reasonable distance from the facility as
50 measured along public thoroughfares, and “primary or contiguous
51 site” means the real property contemplated in the feasibility
52 study required by this chapter.
53 (7)(6) “Generally accepted accounting principles” means
54 those accounting principles and practices adopted by the
55 Financial Accounting Standards Board and the American Institute
56 of Certified Public Accountants, including Statement of Position
57 90-8 with respect to any full year to which the statement
58 applies.
59 (8)(7) “Insolvency” means the condition in which the
60 provider is unable to pay its obligations as they come due in
61 the normal course of business.
62 (9)(8) “Licensed” means that the provider has obtained a
63 certificate of authority from the department.
64 (10) “Nursing care” means those services or acts rendered
65 to a resident by an individual licensed or certified pursuant to
66 chapter 464.
67 (11) “Personal services” has the same meaning as in s.
68 429.02.
69 (12)(9) “Provider” means the owner or operator, whether a
70 natural person, partnership or other unincorporated association,
71 however organized, trust, or corporation, of an institution,
72 building, residence, or other place, whether operated for profit
73 or not, which owner or operator provides continuing care or
74 continuing care at-home for a fixed or variable fee, or for any
75 other remuneration of any type, whether fixed or variable, for
76 the period of care, payable in a lump sum or lump sum and
77 monthly maintenance charges or in installments. The term, but
78 does not apply to mean an entity that has existed and
79 continuously operated a facility located on at least 63 acres in
80 this state providing residential lodging to members and their
81 spouses for at least 66 years on or before July 1, 1989, and has
82 the residential capacity of 500 persons, is directly or
83 indirectly owned or operated by a nationally recognized
84 fraternal organization, is not open to the public, and accepts
85 only its members and their spouses as residents.
86 (13)(10) “Records” means the permanent financial,
87 directory, and personnel information and data maintained by a
88 provider pursuant to this chapter.
89 (14)(11) “Resident” means a purchaser of, a nominee of, or
90 a subscriber to a continuing care or continuing care at-home
91 contract agreement. Such contract agreement does not give the
92 resident a part ownership of the facility in which the resident
93 is to reside, unless expressly provided for in the contract
94 agreement.
95 (15) “Shelter” means an independent living unit, room,
96 apartment, cottage, villa, personal care unit, nursing bed, or
97 other living area within a facility set aside for the exclusive
98 use of one or more identified residents.
99 Section 2. Section 651.012, Florida Statutes, is amended to
100 read:
101 651.012 Exempted facility; written disclosure of
102 exemption.—Any facility exempted under ss. 632.637(1)(e) and
103 651.011(12)(9) must provide written disclosure of such exemption
104 to each person admitted to the facility after October 1, 1996.
105 This disclosure must be written using language likely to be
106 understood by the person and must briefly explain the exemption.
107 Section 3. Section 651.013, Florida Statutes, is amended to
108 read:
109 651.013 Chapter exclusive; applicability of other laws.—
110 (1) Except as herein provided, providers of continuing care
111 and continuing care at-home are shall be governed by the
112 provisions of this chapter and are shall be exempt from all
113 other provisions of the Florida Insurance Code.
114 (2) In addition to other applicable provisions cited in
115 this chapter, the office has the authority granted under ss.
116 624.302 and 624.303, 624.308-624.312, 624.319(1)-(3), 624.320
117 624.321, 624.324, and 624.34 of the Florida Insurance Code to
118 regulate providers of continuing care and continuing care at
119 home.
120 Section 4. Section 651.021, Florida Statutes, is amended to
121 read:
122 651.021 Certificate of authority required.—
123 (1) No person may engage in the business of providing
124 continuing care, or issuing contracts for continuing care or
125 continuing care at-home, or constructing agreements or construct
126 a facility for the purpose of providing continuing care in this
127 state without a certificate of authority therefor obtained from
128 the office as provided in this chapter. This subsection does
129 shall not be construed to prohibit the preparation of a the
130 construction site or construction of a model residence unit for
131 marketing purposes, or both. The office may allow the purchase
132 of an existing building for the purpose of providing continuing
133 care if the office determines that the purchase is not being
134 made to circumvent for the purpose of circumventing the
135 prohibitions contained in this section.
136 (2)(a) Written approval must be obtained from the office
137 before commencing commencement of construction or marketing for
138 an any expansion of a certificated facility equivalent to the
139 addition of at least 20 percent of existing units or 20 percent
140 or more in the number of continuing care at-home contracts,
141 written approval must be obtained from the office. This
142 provision does not apply to construction for which a certificate
143 of need from the Agency for Health Care Administration is
144 required.
145 (a) For providers that offer both continuing care and
146 continuing care at-home, the 20 percent is based on the total of
147 both existing units and existing contracts for continuing care
148 at-home. For purposes of this subsection, an expansion includes
149 increases in the number of constructed units or continuing care
150 at-home contracts or a combination of both.
151 (b) The application for such approval shall be on forms
152 adopted by the commission and provided by the office. The
153 application must shall include the feasibility study required by
154 s. 651.022(3) or s. 651.023(1)(b) and such other information as
155 required by s. 651.023. If the expansion is only for continuing
156 care at-home contracts, an actuarial study prepared by an
157 independent actuary in accordance with standards adopted by the
158 American Academy of Actuaries which presents the financial
159 impact of the expansion may be substituted for the feasibility
160 study.
161 (c) In determining whether an expansion should be approved,
162 the office shall use utilize the criteria provided in ss.
163 651.022(6) and 651.023(4)(2).
164 Section 5. Paragraphs (d) and (g) of subsection (2) and
165 subsections (4) and (6) of section 651.022, Florida Statutes,
166 are amended to read:
167 651.022 Provisional certificate of authority; application.—
168 (2) The application for a provisional certificate of
169 authority shall be on a form prescribed by the commission and
170 shall contain the following information:
171 (d) The contracts agreements for continuing care and
172 continuing care at-home to be entered into between the provider
173 and residents which meet the minimum requirements of s. 651.055
174 or s. 651.057 and which include a statement describing the
175 procedures required by law relating to the release of escrowed
176 entrance fees. Such statement may be furnished through an
177 addendum.
178 (g) The forms of the continuing care residency contracts,
179 reservation contracts, escrow agreements, and wait list
180 contracts, if applicable, which are proposed to be used by the
181 provider in the furnishing of care. If The office shall approve
182 finds that the continuing care contracts and escrow agreements
183 that comply with ss. 651.023(1)(c), 651.033, and 651.055, and
184 651.057 it shall approve them. Thereafter, no other form of
185 contract or agreement may be used by the provider until it has
186 been submitted to the office and approved.
187 (4) If an applicant has or proposes to have more than one
188 facility offering continuing care or continuing care at-home, a
189 separate provisional certificate of authority and a separate
190 certificate of authority must shall be obtained for each
191 facility.
192 (6) Within 45 days after from the date an application is
193 deemed to be complete, as set forth in paragraph (5)(b), the
194 office shall complete its review and shall issue a provisional
195 certificate of authority to the applicant based upon its review
196 and a determination that the application meets all requirements
197 of law, and that the feasibility study was based on sufficient
198 data and reasonable assumptions, and that the applicant will be
199 able to provide continuing care or continuing care at-home as
200 proposed and meet all financial obligations related to its
201 operations, including the financial requirements of this chapter
202 to provide continuing care as proposed. If the application is
203 denied, the office shall notify the applicant in writing, citing
204 the specific failures to meet the provisions of this chapter.
205 Such denial entitles shall entitle the applicant to a hearing
206 pursuant to the provisions of chapter 120.
207 Section 6. Section 651.023, Florida Statutes, is amended to
208 read:
209 651.023 Certificate of authority; application.—
210 (1) After issuance of a provisional certificate of
211 authority, the office shall issue to the holder of such
212 provisional certificate of authority a certificate of authority
213 if; provided, however, that no certificate of authority shall be
214 issued until the holder of the such provisional certificate of
215 authority provides the office with the following information:
216 (a) Any material change in status with respect to the
217 information required to be filed under s. 651.022(2) in the
218 application for the a provisional certificate of authority.
219 (b) A feasibility study prepared by an independent
220 consultant which contains all of the information required by s.
221 651.022(3) and contains financial forecasts or projections
222 prepared in accordance with standards adopted promulgated by the
223 American Institute of Certified Public Accountants or financial
224 forecasts or projections prepared in accordance with standards
225 for feasibility studies or continuing care retirement
226 communities adopted promulgated by the Actuarial Standards
227 Board.
228 1. The study must also contain an independent evaluation
229 and examination opinion, or a comparable opinion acceptable to
230 the office, by the consultant who prepared the study, of the
231 underlying assumptions used as a basis for the forecasts or
232 projections in the study and that the assumptions are reasonable
233 and proper and that the project as proposed is feasible.
234 2. The study must shall take into account project costs,
235 actual marketing results to date and marketing projections,
236 resident fees and charges, competition, resident contract
237 provisions, and any other factors which affect the feasibility
238 of operating the facility.
239 3. If the study is prepared by an independent certified
240 public accountant, it must contain an examination opinion for
241 the first 3 years of operations and financial projections having
242 a compilation opinion for the next 3 years. If the study is
243 prepared by an independent consulting actuary, it must contain
244 mortality and morbidity data and an actuary’s signed opinion
245 that the project as proposed is feasible and that the study has
246 been prepared in accordance with standards adopted by the
247 American Academy of Actuaries.
248 (c) Subject to the requirements of subsection (4) (2), a
249 provider may submit an application for a certificate of
250 authority and any required exhibits upon submission of proof
251 that the project has a minimum of 30 percent of the units
252 reserved for which the provider is charging an entrance fee.;
253 however, This does provision shall not apply to an application
254 for a certificate of authority for the acquisition of a facility
255 for which a certificate of authority was issued before prior to
256 October 1, 1983, to a provider who subsequently becomes a debtor
257 in a case under the United States Bankruptcy Code, 11 U.S.C. ss.
258 101 et seq., or to a provider for which the department has been
259 appointed receiver pursuant to the provisions of part II of
260 chapter 631.
261 (d) Proof that commitments have been secured for both
262 construction financing and long-term financing or a documented
263 plan acceptable to the office has been adopted by the applicant
264 for long-term financing.
265 (e) Proof that all conditions of the lender have been
266 satisfied to activate the commitment to disburse funds other
267 than the obtaining of the certificate of authority, the
268 completion of construction, or the closing of the purchase of
269 realty or buildings for the facility.
270 (f) Proof that the aggregate amount of entrance fees
271 received by or pledged to the applicant, plus anticipated
272 proceeds from any long-term financing commitment, plus funds
273 from all other sources in the actual possession of the
274 applicant, equal at least not less than 100 percent of the
275 aggregate cost of constructing or purchasing, equipping, and
276 furnishing the facility plus 100 percent of the anticipated
277 startup losses of the facility.
278 (g) Complete audited financial statements of the applicant,
279 prepared by an independent certified public accountant in
280 accordance with generally accepted accounting principles, as of
281 the date the applicant commenced business operations or for the
282 fiscal year that ended immediately preceding the date of
283 application, whichever is later, and complete unaudited
284 quarterly financial statements attested to by the applicant
285 after subsequent to the date of the last audit.
286 (h) Proof that the applicant has complied with the escrow
287 requirements of subsection (5) (3) or subsection (7) (5) and
288 will be able to comply with s. 651.035.
289 (i) Such other reasonable data, financial statements, and
290 pertinent information as the commission or office may require
291 with respect to the applicant or the facility, to determine the
292 financial status of the facility and the management capabilities
293 of its managers and owners.
294 (2)(j) Within 30 days after of the receipt of the
295 information required under subsection (1) paragraphs (a)-(h),
296 the office shall examine such information and shall notify the
297 provider in writing, specifically requesting any additional
298 information the office is permitted by law to require. Within 15
299 days after receipt of all of the requested additional
300 information, the office shall notify the provider in writing
301 that all of the requested information has been received and the
302 application is deemed to be complete as of the date of the
303 notice. Failure to so notify the applicant in writing within the
304 15-day period constitutes shall constitute acknowledgment by the
305 office that it has received all requested additional
306 information, and the application shall be deemed to be complete
307 for purposes of review on upon the date of the filing of all of
308 the required additional information.
309 (3)(k) Within 45 days after an application is deemed
310 complete as set forth in subsection (2) paragraph (j), and upon
311 completion of the remaining requirements of this section, the
312 office shall complete its review and shall issue, or deny a
313 certificate of authority, to the holder of a provisional
314 certificate of authority a certificate of authority. If a
315 certificate of authority is denied, the office must shall notify
316 the holder of the provisional certificate of authority in
317 writing, citing the specific failures to satisfy the provisions
318 of this chapter. If denied, the holder of the provisional
319 certificate is of authority shall be entitled to an
320 administrative hearing pursuant to chapter 120.
321 (4)(2)(a) The office shall issue a certificate of authority
322 upon determining its determination that the applicant meets all
323 requirements of law and has submitted all of the information
324 required by this section, that all escrow requirements have been
325 satisfied, and that the fees prescribed in s. 651.015(2) have
326 been paid.
327 (a) Notwithstanding satisfaction of the 30-percent minimum
328 reservation requirement of paragraph (1)(c), no certificate of
329 authority shall be issued until the project has a minimum of 50
330 percent of the units reserved for which the provider is charging
331 an entrance fee, and proof thereof is provided to the office. If
332 a provider offering continuing care at-home is applying for a
333 certificate of authority or approval of an expansion pursuant to
334 s. 651.021(2), the same minimum reservation requirements must be
335 met for the continuing care and continuing care at-home
336 contracts, independently of each other.
337 (b) In order for a unit to be considered reserved under
338 this section, the provider must collect a minimum deposit of 10
339 percent of the then-current entrance fee for that unit, and must
340 assess a forfeiture penalty of 2 percent of the entrance fee due
341 to termination of the reservation contract after 30 days for any
342 reason other than the death or serious illness of the resident,
343 the failure of the provider to meet its obligations under the
344 reservation contract, or other circumstances beyond the control
345 of the resident that equitably entitle the resident to a refund
346 of the resident’s deposit. The reservation contract must shall
347 state the cancellation policy and the terms of the continuing
348 care or continuing care at-home contract to be entered into.
349 (5)(3) Up to No more than 25 percent of the moneys paid for
350 all or any part of an initial entrance fee may be included or
351 pledged for the construction or purchase of the facility, or
352 included or pledged as security for long-term financing. The
353 term “initial entrance fee” means the total entrance fee charged
354 by the facility to the first occupant of a unit.
355 (a) A minimum of 75 percent of the moneys paid for all or
356 any part of an initial entrance fee collected for continuing
357 care or continuing care at-home shall be placed in an escrow
358 account or on deposit with the department as prescribed in s.
359 651.033.
360 (b) For an expansion as provided in s. 651.021(2), a
361 minimum of 75 percent of the moneys paid for all or any part of
362 an initial entrance fee collected for continuing care and 50
363 percent of the moneys paid for all or any part of an initial fee
364 collected for continuing care at-home shall be placed in an
365 escrow account or on deposit with the department as prescribed
366 in s. 651.033.
367 (6)(4) The provider is shall be entitled to secure release
368 of the moneys held in escrow within 7 days after receipt by the
369 office of an affidavit from the provider, along with appropriate
370 copies to verify, and notification to the escrow agent by
371 certified mail, that the following conditions have been
372 satisfied:
373 (a) A certificate of occupancy has been issued.
374 (b) Payment in full has been received for at least no less
375 than 70 percent of the total units of a phase or of the total of
376 the combined phases constructed. If a provider offering
377 continuing care at-home is applying for a release of escrowed
378 entrance fees, the same minimum requirement must be met for the
379 continuing care and continuing care at-home contracts,
380 independently of each other.
381 (c) The consultant who prepared the feasibility study
382 required by this section or a substitute approved by the office
383 certifies within 12 months before the date of filing for office
384 approval that there has been no material adverse change in
385 status with regard to the feasibility study, with such statement
386 dated not more than 12 months from the date of filing for office
387 approval. If a material adverse change exists should exist at
388 the time of submission, then sufficient information acceptable
389 to the office and the feasibility consultant must shall be
390 submitted which remedies the adverse condition.
391 (d) Proof that commitments have been secured or a
392 documented plan adopted by the applicant has been approved by
393 the office for long-term financing.
394 (e) Proof that the provider has sufficient funds to meet
395 the requirements of s. 651.035, which may include funds
396 deposited in the initial entrance fee account.
397 (f) Proof as to the intended application of the proceeds
398 upon release and proof that the entrance fees when released will
399 be applied as represented to the office.
400
401 Notwithstanding any provision of chapter 120, no person, other
402 than the provider, the escrow agent, and the office, may shall
403 have a substantial interest in any office decision regarding
404 release of escrow funds in any proceedings under chapter 120 or
405 this chapter regarding release of escrow funds.
406 (7)(5) In lieu of the provider fulfilling the requirements
407 in subsection (5) (3) and paragraphs (6)(b) (4)(b) and (d), the
408 office may authorize the release of escrowed funds to retire all
409 outstanding debts on the facility and equipment upon application
410 of the provider and upon the provider’s showing that the
411 provider will grant to the residents a first mortgage on the
412 land, buildings, and equipment that constitute the facility, and
413 that the provider has satisfied satisfies the requirements of
414 paragraphs (6)(a) (4)(a), (c), and (e). Such mortgage shall
415 secure the refund of the entrance fee in the amount required by
416 this chapter. The granting of such mortgage is shall be subject
417 to the following:
418 (a) The first mortgage is shall be granted to an
419 independent trust that which is beneficially held by the
420 residents. The document creating the trust must include shall
421 contain a provision that it agrees to an annual audit and will
422 furnish to the office all information the office may reasonably
423 require. The mortgage may secure payment on bonds issued to the
424 residents or trustee. Such bonds are shall be redeemable after
425 termination of the residency contract in the amount and manner
426 required by this chapter for the refund of an entrance fee.
427 (b) Before granting a first mortgage to the residents, all
428 construction must shall be substantially completed and
429 substantially all equipment must shall be purchased. No part of
430 the entrance fees may be pledged as security for a construction
431 loan or otherwise used for construction expenses before the
432 completion of construction.
433 (c) If the provider is leasing the land or buildings used
434 by the facility, the leasehold interest must shall be for a term
435 of at least 30 years.
436 (8)(6) The timeframes provided under s. 651.022(5) and (6)
437 apply to applications submitted under s. 651.021(2). The office
438 may not issue a certificate of authority under this chapter to a
439 any facility that which does not have a component that which is
440 to be licensed pursuant to part II of chapter 400 or to part I
441 of chapter 429 or that does which will not offer personal
442 services or nursing services through written contractual
443 agreement. A Any written contractual agreement must be disclosed
444 in the continuing care contract for continuing care or
445 continuing care at-home and is subject to the provisions of s.
446 651.1151, relating to administrative, vendor, and management
447 contracts.
448 (9)(7) The office may shall not approve an application that
449 which includes in the plan of financing any encumbrance of the
450 operating reserves required by this chapter.
451 Section 7. Paragraphs (a) and (d) of subsection (3) of
452 section 651.033, Florida Statutes, are amended to read:
453 651.033 Escrow accounts.—
454 (3) In addition, when entrance fees are required to be
455 deposited in an escrow account pursuant to s. 651.022, s.
456 651.023, or s. 651.055:
457 (a) The provider shall deliver to the resident a written
458 receipt. The receipt must shall show the payor’s name and
459 address, the date, the price of the care contract, and the
460 amount of money paid. A copy of each receipt, together with the
461 funds, shall be deposited with the escrow agent or as provided
462 in paragraph (c). The escrow agent shall release such funds to
463 the provider upon the expiration of 7 days after the date of
464 receipt of the funds by the escrow agent if the provider,
465 operating under a certificate of authority issued by the office,
466 has met the requirements of s. 651.023(6)(4). However, if the
467 resident rescinds the contract within the 7-day period, the
468 escrow agent shall release the escrowed fees to the resident.
469 (d) A provider may assess a nonrefundable fee, which is
470 separate from the entrance fee, for processing a prospective
471 resident’s application for continuing care or continuing care
472 at-home.
473 Section 8. Subsections (2) and (3) of section 651.035,
474 Florida Statutes, are amended to read:
475 651.035 Minimum liquid reserve requirements.—
476 (2)(a) In facilities where not all residents are under
477 continuing care or continuing care at-home contracts, the
478 reserve requirements of subsection (1) shall be computed only
479 with respect to the proportional share of operating expenses
480 that which are applicable to residents as defined in s. 651.011.
481 For purposes of this calculation, the proportional share shall
482 be based upon the ratio of residents under continuing care or
483 continuing care at-home contracts to those residents who do not
484 hold such contracts.
485 (b) In facilities that have voluntarily and permanently
486 discontinued marketing continuing care and continuing care at
487 home contracts, the office may allow a reduced debt service
488 reserve as required in subsection (1) based upon the ratio of
489 residents under continuing care or continuing care at-home
490 contracts to those residents who do not hold such contracts if
491 the office finds that such reduction is not inconsistent with
492 the security protections intended by this chapter. In making
493 this determination, the office may consider such factors as the
494 financial condition of the facility, the provisions of the
495 outstanding continuing care and continuing care at-home
496 contracts, the ratio of residents under continuing care or
497 continuing care at-home contracts agreements to those residents
498 who do not hold such contracts a continuing care contract, the
499 current occupancy rates, the previous sales and marketing
500 efforts, the life expectancy of the remaining residents contract
501 holders, and the written policies of the board of directors of
502 the provider or a similar board.
503 (3) If principal and interest payments are paid to a trust
504 that is beneficially held by the residents as described in s.
505 651.023(7)(5), the office may waive all or any portion of the
506 escrow requirements for mortgage principal and interest
507 contained in subsection (1) if the office finds that such waiver
508 is not inconsistent with the security protections intended by
509 this chapter.
510 Section 9. Section 651.055, Florida Statutes, is amended to
511 read:
512 651.055 Continuing care contracts; right to rescind.—
513 (1) Each continuing care contract and each addendum to such
514 contract shall be submitted to and approved by the office before
515 prior to its use in this state. Thereafter, no other form of
516 contract shall be used by the provider until unless it has been
517 submitted to and approved by the office. Each contract must
518 shall:
519 (a) Provide for the continuing care of only one resident,
520 or for two persons occupying space designed for double
521 occupancy, under appropriate regulations established by the
522 provider, and must shall list all properties transferred and
523 their market value at the time of transfer, including donations,
524 subscriptions, fees, and any other amounts paid or payable by,
525 or on behalf of, the resident or residents.
526 (b) Specify all services that which are to be provided by
527 the provider to each resident, including, in detail, all items
528 that which each resident will receive, whether the items will be
529 provided for a designated time period or for life, and whether
530 the services will be available on the premises or at another
531 specified location. The provider shall indicate which services
532 or items are included in the contract for continuing care and
533 which services or items are made available at or by the facility
534 at extra charge. Such items shall include, but are not limited
535 to, food, shelter, personal services or nursing care, drugs,
536 burial, and incidentals.
537 (c) Describe the terms and conditions under which a
538 contract for continuing care may be canceled by the provider or
539 by a resident and the conditions, if any, under which all or any
540 portion of the entrance fee will be refunded in the event of
541 cancellation of the contract by the provider or by the resident,
542 including the effect of any change in the health or financial
543 condition of a person between the date of entering a contract
544 for continuing care and the date of initial occupancy of a
545 living unit by that person.
546 (d) Describe the health and financial conditions required
547 for a person to be accepted as a resident and to continue as a
548 resident, once accepted, including the effect of any change in
549 the health or financial condition of the person between the date
550 of submitting an application for admission to the facility and
551 entering into a continuing care contract. If a prospective
552 resident signs a contract but postpones moving into the
553 facility, the individual is deemed to be occupying a unit at the
554 facility when he or she pays the entrance fee or any portion of
555 the fee, other than a reservation deposit, and begins making
556 monthly maintenance fee payments. Such resident may rescind the
557 contract and receive a full refund of any funds paid, without
558 penalty or forfeiture, within 7 days after executing the
559 contract as specified in subsection (2).
560 (e) Describe the circumstances under which the resident
561 will be permitted to remain in the facility in the event of
562 financial difficulties of the resident. The stated policy may
563 not be less than the terms stated in s. 651.061.
564 (f) State the fees that will be charged if the resident
565 marries while at the designated facility, the terms concerning
566 the entry of a spouse to the facility, and the consequences if
567 the spouse does not meet the requirements for entry.
568 (g) Provide that the contract may be canceled by giving at
569 least 30 days’ written notice of cancellation by the provider,
570 the resident, or the person who provided the transfer of
571 property or funds for the care of such resident.; However, if a
572 contract is canceled because there has been a good faith
573 determination that a resident is a danger to himself or herself
574 or others, only such notice as is reasonable under the
575 circumstances is required.
576 1. The contract must also provide in clear and
577 understandable language, in print no smaller than the largest
578 type used in the body of the contract, the terms governing the
579 refund of any portion of the entrance fee.
580 2. For a resident whose contract with the facility provides
581 that the resident does not receive a transferable membership or
582 ownership right in the facility, and who has occupied his or her
583 unit, the refund shall be calculated on a pro rata basis with
584 the facility retaining up to 2 percent per month of occupancy by
585 the resident and up to a 5 percent 5-percent processing fee.
586 Such refund must be paid within 120 days after giving the notice
587 of intention to cancel.
588 3. In addition to a processing fee, if the contract
589 provides for the facility to retain up to 1 percent per month of
590 occupancy by the resident, it may provide that such refund will
591 be paid from the proceeds of the next entrance fees received by
592 the provider for units for which there are no prior claims by
593 any resident until paid in full or, if the provider has
594 discontinued marketing continuing care contracts, within 200
595 days after the date of notice.
596 4. Unless subsection (5) applies, for any prospective
597 resident, regardless of whether or not such a resident receives
598 a transferable membership or ownership right in the facility,
599 who cancels the contract before occupancy of the unit, the
600 entire amount paid toward the entrance fee shall be refunded,
601 less a processing fee of up to 5 percent of the entire entrance
602 fee; however, the processing fee may not exceed the amount paid
603 by the prospective resident. Such refund must be paid within 60
604 days after giving the notice of intention to cancel. For a
605 resident who has occupied his or her unit and who has received a
606 transferable membership or ownership right in the facility, the
607 foregoing refund provisions do not apply but are deemed
608 satisfied by the acquisition or receipt of a transferable
609 membership or an ownership right in the facility. The provider
610 may not charge any fee for the transfer of membership or sale of
611 an ownership right. A prospective resident, resident, or
612 resident’s estate is not entitled to interest of any type on a
613 deposit or entrance fee unless it is specified in the continuing
614 care contract.
615 (h) State the terms under which a contract is canceled by
616 the death of the resident. These terms may contain a provision
617 that, upon the death of a resident, the entrance fee of such
618 resident is shall be considered earned and becomes shall become
619 the property of the provider. If When the unit is shared, the
620 conditions with respect to the effect of the death or removal of
621 one of the residents must shall be included in the contract.
622 (i) Describe the policies that which may lead to changes in
623 monthly recurring and nonrecurring charges or fees for goods and
624 services received. The contract must shall provide for advance
625 notice to the resident, of at least not less than 60 days,
626 before any change in fees or charges or the scope of care or
627 services is may be effective, except for changes required by
628 state or federal assistance programs.
629 (j) Provide that charges for care paid in one lump sum may
630 shall not be increased or changed during the duration of the
631 agreed upon care, except for changes required by state or
632 federal assistance programs.
633 (k) Specify whether or not the facility is, or is
634 affiliated with, a religious, nonprofit, or proprietary
635 organization or management entity; the extent to which the
636 affiliate organization will be responsible for the financial and
637 contractual obligations of the provider; and the provisions of
638 the federal Internal Revenue Code, if any, under which the
639 provider or affiliate is exempt from the payment of federal
640 income tax.
641 (2) A resident has the right to rescind a continuing care
642 contract and receive a full refund of any funds paid, without
643 penalty or forfeiture, within 7 days after executing the
644 contract. A resident may not be required to move into the
645 facility designated in the contract before the expiration of the
646 7-day period. During the 7–day period, the resident’s funds must
647 be held in an escrow account unless otherwise requested by the
648 resident pursuant to s. 651.033(3)(c).
649 (3) The contract must shall include or shall be accompanied
650 by a statement, printed in boldfaced type, which reads: “This
651 facility and all other continuing care facilities in the State
652 of Florida are regulated by chapter 651, Florida Statutes. A
653 copy of the law is on file in this facility. The law gives you
654 or your legal representative the right to inspect our most
655 recent financial statement and inspection report before signing
656 the contract.”
657 (4) Before the transfer of any money or other property to a
658 provider by or on behalf of a prospective resident, the provider
659 shall present a typewritten or printed copy of the contract to
660 the prospective resident and all other parties to the contract.
661 The provider shall secure a signed, dated statement from each
662 party to the contract certifying that a copy of the contract
663 with the specified attachment, as required pursuant to this
664 chapter, was received.
665 (5) Except for a resident who postpones moving into the
666 facility but is deemed to have occupied a unit as described in
667 paragraph (1)(d), if a prospective resident dies before
668 occupying the facility or, through illness, injury, or
669 incapacity, is precluded from becoming a resident under the
670 terms of the continuing care contract, the contract is
671 automatically canceled, and the prospective resident or his or
672 her legal representative shall receive a full refund of all
673 moneys paid to the facility, except those costs specifically
674 incurred by the facility at the request of the prospective
675 resident and set forth in writing in a separate addendum, signed
676 by both parties, to the contract.
677 (6) In order to comply with this section, a provider may
678 furnish information not contained in his or her continuing care
679 contract through an addendum.
680 (7) Contracts to provide continuing care, including
681 contracts that are terminable by either party, may include
682 agreements to provide care for any duration.
683 (8)(7) Those contracts entered into after subsequent to
684 July 1, 1977, and before the issuance of a certificate of
685 authority to the provider are valid and binding upon both
686 parties in accordance with their terms. Within 30 days after
687 receipt of a letter from the office notifying the provider of a
688 noncompliant residency contract, the provider shall file a new
689 residency contract for approval which complies with Florida law.
690 Pending review and approval of the new residency contract, the
691 provider may continue to use the previously approved contract.
692 (9)(8) The provisions of this section shall control over
693 any conflicting provisions contained in part II of chapter 400
694 or in part I of chapter 429.
695 Section 10. Section 651.057, Florida Statutes, is created
696 to read:
697 651.057 Continuing care at-home contracts.—
698 (1) In addition to the requirements of s. 651.055, a
699 provider offering contracts for continuing care at-home must:
700 (a) Disclose the following in the continuing care at-home
701 contract:
702 1. Whether transportation will be provided to residents
703 when traveling to and from the facility for services;
704 2. That the provider has no liability for residents
705 residing outside the facility beyond the delivery of services
706 specified in the contract and future access to nursing care or
707 personal services at the facility or in another setting
708 designated in the contract;
709 3. The mechanism for monitoring residents who live outside
710 the facility;
711 4. The process that will be followed to establish priority
712 if a resident wishes to exercise his or her right to move into
713 the facility; and
714 5. The policy that will be followed if a resident living
715 outside the facility relocates to a different residence and no
716 longer avails himself or herself of services provided by the
717 facility.
718 (b) Ensure that persons employed by or under contract with
719 the provider who assist in the delivery of services to residents
720 residing outside the facility are appropriately licensed or
721 certified as required by law.
722 (c) Include operating expenses for continuing care at-home
723 contracts in the calculation of the operating reserve required
724 by s. 651.035(1)(c).
725 (d) Include the operating activities for continuing care
726 at-home contracts in the total operation of the facility when
727 submitting financial reports to the office as required by s.
728 651.026.
729 (2) A provider that holds a certificate of authority and
730 wishes to offer continuing care at-home must also:
731 (a) Submit a business plan to the office with the following
732 information:
733 1. A description of the continuing care at-home services
734 that will be provided, the market to be served, and the fees to
735 be charged;
736 2. A copy of the proposed continuing care at-home contract;
737 3. An actuarial study prepared by an independent actuary in
738 accordance with the standards adopted by the American Academy of
739 Actuaries which presents the impact of providing continuing care
740 at-home on the overall operation of the facility;
741 4. A market feasibility study that meets the requirements
742 of s. 651.022(3) and documents that there is sufficient interest
743 in continuing care at-home contracts to support such a program;
744 and
745 (b) Demonstrate to the office that the proposal to offer
746 continuing care at-home contracts to individuals who do not
747 immediately move into the facility will not place the provider
748 in an unsound financial condition;
749 (c) Comply with the requirements of s. 651.021(2), except
750 that an actuarial study may be substituted for the feasibility
751 study; and
752 (d) Comply with the requirements of this chapter.
753 (3) Contracts to provide continuing care at-home, including
754 contracts that are terminable by either party, may include
755 agreements to provide care for any duration.
756 (4) A provider offering continuing care at-home contracts
757 must, at a minimum, have a facility that is licensed under this
758 chapter and has accommodations for independent living which are
759 primarily intended for residents who do not require staff
760 supervision. The facility need not offer assisted living units
761 licensed under part I of chapter 429 or nursing home units
762 licensed under part II of chapter 400 in order to be able to
763 offer continuing care at-home contracts.
764 (a) The combined number of outstanding continuing care
765 (CCRC) and continuing care at-home (CCAH) contracts allowed at
766 the facility may be the greater of:
767 1. One and one-half times the combined number of
768 independent living units (ILU), assisted living units (ALF) that
769 are licensed under part I of chapter 429, and nursing home units
770 licensed under part II of chapter 400 at the facility; or
771 2. Four times the combined number of assisted living units
772 (ALF) that are licensed under part I of chapter 429 and nursing
773 home units that are licensed under part II of chapter 400 at
774 that facility.
775 (b) The number of independent living units at the facility
776 must be equal to or greater than 10 percent of the initial 100
777 continuing care (CCRC)and continuing care at-home (CCAH)
778 contracts and 5 percent of the combined number of outstanding
779 continuing care (CCRC) and continuing care at home (CCAH)
780 contracts in excess of 100 issued by that facility.
781 Section 11. Subsection (1) of section 651.071, Florida
782 Statutes, is amended to read:
783 651.071 Contracts as preferred claims on liquidation or
784 receivership.—
785 (1) In the event of receivership or liquidation proceedings
786 against a provider, all continuing care and continuing care at
787 home contracts executed by a provider shall be deemed preferred
788 claims against all assets owned by the provider; however, such
789 claims are shall be subordinate to those priority claims set
790 forth in s. 631.271 and any secured claim as defined in s.
791 631.011.
792 Section 12. Paragraph (h) of subsection (2) and subsection
793 (3) of section 651.091, Florida Statutes, are amended to read:
794 651.091 Availability, distribution, and posting of reports
795 and records; requirement of full disclosure.—
796 (2) Every continuing care facility shall:
797 (h) Upon request, deliver to the president or chair of the
798 residents’ council a copy of any newly approved continuing care
799 or continuing care at-home contract within 30 days after
800 approval by the office.
801 (3) Before entering into a contract to furnish continuing
802 care or continuing care at-home, the provider undertaking to
803 furnish the care, or the agent of the provider, shall make full
804 disclosure, and provide copies of the disclosure documents to
805 the prospective resident or his or her legal representative, of
806 the following information:
807 (a) The contract to furnish continuing care or continuing
808 care at-home.
809 (b) The summary listed in paragraph (2)(b).
810 (c) All ownership interests and lease agreements, including
811 information specified in s. 651.022(2)(b)8.
812 (d) In keeping with the intent of this subsection relating
813 to disclosure, the provider shall make available for review,
814 master plans approved by the provider’s governing board and any
815 plans for expansion or phased development, to the extent that
816 the availability of such plans do will not put at risk real
817 estate, financing, acquisition, negotiations, or other
818 implementation of operational plans and thus jeopardize the
819 success of negotiations, operations, and development.
820 (e) Copies of the rules and regulations of the facility and
821 an explanation of the responsibilities of the resident.
822 (f) The policy of the facility with respect to admission to
823 and discharge from the various levels of health care offered by
824 the facility.
825 (g) The amount and location of any reserve funds required
826 by this chapter, and the name of the person or entity having a
827 claim to such funds in the event of a bankruptcy, foreclosure,
828 or rehabilitation proceeding.
829 (h) A copy of s. 651.071.
830 (i) A copy of the resident’s rights as described in s.
831 651.083.
832 Section 13. Section 651.106, Florida Statutes, is amended
833 to read:
834 651.106 Grounds for discretionary refusal, suspension, or
835 revocation of certificate of authority.—The office, in its
836 discretion, may deny, suspend, or revoke the provisional
837 certificate of authority or the certificate of authority of any
838 applicant or provider if it finds that any one or more of the
839 following grounds applicable to the applicant or provider exist:
840 (1) Failure by the provider to continue to meet the
841 requirements for the authority originally granted.
842 (2) Failure by the provider to meet one or more of the
843 qualifications for the authority specified by this chapter.
844 (3) Material misstatement, misrepresentation, or fraud in
845 obtaining the authority, or in attempting to obtain the same.
846 (4) Demonstrated lack of fitness or trustworthiness.
847 (5) Fraudulent or dishonest practices of management in the
848 conduct of business.
849 (6) Misappropriation, conversion, or withholding of moneys.
850 (7) Failure to comply with, or violation of, any proper
851 order or rule of the office or commission or violation of any
852 provision of this chapter.
853 (8) The insolvent condition of the provider or the
854 provider’s being in such condition or using such methods and
855 practices in the conduct of its business as to render its
856 further transactions in this state hazardous or injurious to the
857 public.
858 (9) Refusal by the provider to be examined or to produce
859 its accounts, records, and files for examination, or refusal by
860 any of its officers to give information with respect to its
861 affairs or to perform any other legal obligation under this
862 chapter when required by the office.
863 (10) Failure by the provider to comply with the
864 requirements of s. 651.026 or s. 651.033.
865 (11) Failure by the provider to maintain escrow accounts or
866 funds as required by this chapter.
867 (12) Failure by the provider to meet the requirements of
868 this chapter for disclosure of information to residents
869 concerning the facility, its ownership, its management, its
870 development, or its financial condition or failure to honor its
871 continuing care or continuing care at-home contracts.
872 (13) Any cause for which issuance of the license could have
873 been refused had it then existed and been known to the office.
874 (14) Having been found guilty of, or having pleaded guilty
875 or nolo contendere to, a felony in this state or any other
876 state, without regard to whether a judgment or conviction has
877 been entered by the court having jurisdiction of such cases.
878 (15) In the conduct of business under the license, engaging
879 in unfair methods of competition or in unfair or deceptive acts
880 or practices prohibited under part IX of chapter 626.
881 (16) A pattern of bankrupt enterprises.
882
883 Revocation of a certificate of authority under this section does
884 not relieve a provider from the provider’s obligation to
885 residents under the terms and conditions of any continuing care
886 or continuing care at-home contract between the provider and
887 residents or the provisions of this chapter. The provider shall
888 continue to file its annual statement and pay license fees to
889 the office as required under this chapter as if the certificate
890 of authority had continued in full force, but the provider shall
891 not issue any new continuing care contracts. The office may seek
892 an action in the circuit court of Leon County to enforce the
893 office’s order and the provisions of this section.
894 Section 14. Subsection (8) of section 651.114, Florida
895 Statutes, is amended to read:
896 651.114 Delinquency proceedings; remedial rights.—
897 (8)(a) The rights of the office described in this section
898 are shall be subordinate to the rights of a trustee or lender
899 pursuant to the terms of a resolution, ordinance, loan
900 agreement, indenture of trust, mortgage, lease, security
901 agreement, or other instrument creating or securing bonds or
902 notes issued to finance a facility, and the office, subject to
903 the provisions of paragraph (c), shall not exercise its remedial
904 rights provided under this section and ss. 651.018, 651.106,
905 651.108, and 651.116 with respect to a facility that is subject
906 to a lien, mortgage, lease, or other encumbrance or trust
907 indenture securing bonds or notes issued in connection with the
908 financing of the facility, if the trustee or lender, by
909 inclusion or by amendment to the loan documents or by a separate
910 contract with the office, agrees that the rights of residents
911 under a continuing care or continuing care at-home contract will
912 be honored and will not be disturbed by a foreclosure or
913 conveyance in lieu thereof as long as the resident:
914 1. Is current in the payment of all monetary obligations
915 required by the continuing care contract;
916 2. Is in compliance and continues to comply with all
917 provisions of the resident’s continuing care contract; and
918 3. Has asserted no claim inconsistent with the rights of
919 the trustee or lender.
920 (b) Nothing in This subsection does not require requires a
921 trustee or lender to:
922 1. Continue to engage in the marketing or resale of new
923 continuing care or continuing care at-home contracts;
924 2. Pay any rebate of entrance fees as may be required by a
925 resident’s continuing care or continuing care at-home contract
926 as of the date of acquisition of the facility by the trustee or
927 lender and until expiration of the period described in paragraph
928 (d);
929 3. Be responsible for any act or omission of any owner or
930 operator of the facility arising before prior to the acquisition
931 of the facility by the trustee or lender; or
932 4. Provide services to the residents to the extent that the
933 trustee or lender would be required to advance or expend funds
934 that have not been designated or set aside for such purposes.
935 (c) Should the office determine, at any time during the
936 suspension of its remedial rights as provided in paragraph (a),
937 that the trustee or lender is not in compliance with the
938 provisions of paragraph (a), or that a lender or trustee has
939 assigned or has agreed to assign all or a portion of a
940 delinquent or defaulted loan to a third party without the
941 office’s written consent, the office shall notify the trustee or
942 lender in writing of its determination, setting forth the
943 reasons giving rise to the determination and specifying those
944 remedial rights afforded to the office which the office shall
945 then reinstate.
946 (d) Upon acquisition of a facility by a trustee or lender
947 and evidence satisfactory to the office that the requirements of
948 paragraph (a) have been met, the office shall issue a 90-day
949 temporary certificate of authority granting the trustee or
950 lender the authority to engage in the business of providing
951 continuing care or continuing care at-home and to issue
952 continuing care or continuing care at-home contracts subject to
953 the office’s right to immediately suspend or revoke the
954 temporary certificate of authority if the office determines that
955 any of the grounds described in s. 651.106 apply to the trustee
956 or lender or that the terms of the contract agreement used as
957 the basis for the issuance of the temporary certificate of
958 authority by the office have not been or are not being met by
959 the trustee or lender since the date of acquisition.
960 Section 15. Subsections (4), (7), (9), and (11) of section
961 651.118, Florida Statutes, are amended to read:
962 651.118 Agency for Health Care Administration; certificates
963 of need; sheltered beds; community beds.—
964 (4) Not including the residences of residents residing
965 outside the facility pursuant to a continuing care at-home
966 contract, the Agency for Health Care Administration shall
967 approve one sheltered nursing home bed for every four proposed
968 residential units, including those that are licensed under part
969 I of chapter 429, in the continuing care facility unless the
970 provider demonstrates the need for a lesser number of sheltered
971 nursing home beds based on proposed utilization by prospective
972 residents or demonstrates the need for additional sheltered
973 nursing home beds based on actual utilization and demand by
974 current residents.
975 (7) Notwithstanding the provisions of subsection (2), at
976 the discretion of the continuing care provider, sheltered
977 nursing home beds may be used for persons who are not residents
978 of the continuing care facility and who are not parties to a
979 continuing care contract for a period of up to 5 years after the
980 date of issuance of the initial nursing home license. A provider
981 whose 5-year period has expired or is expiring may request an
982 extension from the Agency for Health Care Administration for an
983 extension, not to exceed 30 percent of the total sheltered
984 nursing home beds or 30 sheltered beds, whichever is greater, if
985 the utilization by residents of the nursing home facility in the
986 sheltered beds will not generate sufficient income to cover
987 nursing home facility expenses, as evidenced by one of the
988 following:
989 (a) The nursing home facility has a net loss for the most
990 recent fiscal year as determined under generally accepted
991 accounting principles, excluding the effects of extraordinary or
992 unusual items, as demonstrated in the most recently audited
993 financial statement.; or
994 (b) The nursing home facility would have had a pro forma
995 loss for the most recent fiscal year, excluding the effects of
996 extraordinary or unusual items, if revenues were reduced by the
997 amount of revenues from persons in sheltered beds who were not
998 residents, as reported on by a certified public accountant.
999
1000 The Agency for Health Care Administration may shall be
1001 authorized to grant an extension to the provider based on the
1002 evidence required in this subsection. The Agency for Health Care
1003 Administration may request a continuing care facility to use up
1004 to 25 percent of the patient days generated by new admissions of
1005 nonresidents during the extension period to serve Medicaid
1006 recipients for those beds authorized for extended use if there
1007 is a demonstrated need in the respective service area and if
1008 funds are available. A provider who obtains an extension is
1009 prohibited from applying for additional sheltered beds under the
1010 provision of subsection (2), unless additional residential units
1011 are built or the provider can demonstrate need by continuing
1012 care facility residents to the Agency for Health Care
1013 Administration. The 5-year limit does not apply to up to five
1014 sheltered beds designated for inpatient hospice care as part of
1015 a contractual arrangement with a hospice licensed under part IV
1016 of chapter 400. A continuing care facility that uses such beds
1017 after the 5-year period shall report such use to the Agency for
1018 Health Care Administration. For purposes of this subsection,
1019 “resident” means a person who, upon admission to the continuing
1020 care facility, initially resides in a part of the continuing
1021 care facility not licensed under part II of chapter 400, or who
1022 contracts for continuing care at-home.
1023 (9) This section does not preclude a continuing care
1024 provider from applying to the Agency for Health Care
1025 Administration for a certificate of need for community nursing
1026 home beds or a combination of community and sheltered nursing
1027 home beds. Any nursing home bed located in a continuing care
1028 facility which that is or has been issued for nonrestrictive use
1029 retains shall retain its legal status as a community nursing
1030 home bed unless the provider requests a change in status. Any
1031 nursing home bed located in a continuing care facility and not
1032 issued as a sheltered nursing home bed before prior to 1979 must
1033 be classified as a community bed. The Agency for Health Care
1034 Administration may require continuing care facilities to submit
1035 bed utilization reports for the purpose of determining community
1036 and sheltered nursing home bed inventories based on historical
1037 utilization by residents and nonresidents.
1038 (11) For a provider issued a provisional certificate of
1039 authority after July 1, 1986, to operate a facility not
1040 previously regulated under this chapter, the following criteria
1041 must shall be met in order to obtain a certificate of need for
1042 sheltered beds pursuant to subsections (2), (3), (4), (5), (6),
1043 and (7):
1044 (a) Seventy percent or more of the current residents hold
1045 continuing care or continuing care at-home contracts agreements
1046 pursuant to s. 651.011(2) or, if the facility is not occupied,
1047 70 percent or more of the prospective residents will hold such
1048 contracts continuing care agreements pursuant to s. 651.011(2)
1049 as projected in the feasibility study and demonstrated by the
1050 provider’s marketing practices; and
1051 (b) The continuing care or continuing care at-home
1052 contracts agreements entered into or to be entered into by 70
1053 percent or more of the current residents or prospective
1054 residents must pursuant to s. 651.011(2) shall provide nursing
1055 home care for a minimum of 360 cumulative days, and such
1056 residents the holders of the continuing care agreements shall be
1057 charged at rates that which are 80 percent or less than the
1058 rates charged by the provider to persons receiving nursing home
1059 care who have not entered into such contracts continuing care
1060 agreements pursuant to s. 651.011(2).
1061 Section 16. Subsection (1) of section 651.121, Florida
1062 Statutes, is amended to read:
1063 651.121 Continuing Care Advisory Council.—
1064 (1) The Continuing Care Advisory Council to the office is
1065 created consisting to consist of 10 members who are residents of
1066 this state appointed by the Governor and geographically
1067 representative of this state. Three members shall be
1068 administrators of facilities that hold valid certificates of
1069 authority under this chapter and shall have been actively
1070 engaged in the offering of continuing care contracts agreements
1071 in this state for 5 years before appointment. The remaining
1072 members include:
1073 (a) A representative of the business community whose
1074 expertise is in the area of management.
1075 (b) A representative of the financial community who is not
1076 a facility owner or administrator.
1077 (c) A certified public accountant.
1078 (d) An attorney.
1079 (e) Three residents who hold continuing care or continuing
1080 care at-home contracts agreements with a facility certified in
1081 this state.
1082 Section 17. Subsection (1) of section 651.125, Florida
1083 Statutes, is amended to read:
1084 651.125 Criminal penalties; injunctive relief.—
1085 (1) Any person who maintains, enters into, or, as manager
1086 or officer or in any other administrative capacity, assists in
1087 entering into, maintaining, or performing any continuing care or
1088 continuing care at-home contract agreement subject to this
1089 chapter without doing so in pursuance of a valid certificate of
1090 authority or renewal thereof, as contemplated by or provided in
1091 this chapter, or who otherwise violates any provision of this
1092 chapter or rule adopted in pursuance of this chapter, is guilty
1093 of a felony of the third degree, punishable as provided in s.
1094 775.082 or s. 775.083. Each violation of this chapter
1095 constitutes a separate offense.
1096 Section 18. This act shall take effect July 1, 2011.
1097
1098 ================= T I T L E A M E N D M E N T ================
1099 And the title is amended as follows:
1100 Delete everything before the enacting clause
1101 and insert:
1102 A bill to be entitled
1103 An act relating to continuing care retirement
1104 communities; providing for the provision of continuing
1105 care at-home; amending s. 651.011, F.S.; revising
1106 definitions; defining “continuing care at-home,”
1107 “nursing care,” “personal services,” and “shelter”;
1108 amending s. 651.012, F.S.; conforming a cross
1109 reference; amending s. 651.013, F.S.; conforming
1110 provisions to changes made by the act; amending s.
1111 651.021, F.S., relating to the requirement for
1112 certificates of authority; requiring that a person in
1113 the business of issuing continuing care at-home
1114 contracts obtain a certificate of authority from the
1115 Office of Insurance Regulation; requiring written
1116 approval from the Office of Insurance Regulation for a
1117 20 percent or more expansion in the number of
1118 continuing care at-home contracts; providing that an
1119 actuarial study may be substituted for a feasibility
1120 study in specified circumstances; amending s. 651.022,
1121 F.S., relating to provisional certificates of
1122 authority; conforming provisions to changes made by
1123 the act; amending s. 651.023, F.S., relating to an
1124 application for a certificate of authority; specifying
1125 the content of the feasibility study that is included
1126 in the application for a certificate; requiring the
1127 same minimum reservation requirements for continuing
1128 care at-home contracts as continuing care contracts;
1129 requiring that a certain amount of the entrance fee
1130 collected for contracts resulting from an expansion be
1131 placed in an escrow account or on deposit with the
1132 department; amending ss. 651.033, 651.035, and
1133 651.055, F.S.; requiring a facility to provide proof
1134 of compliance with a residency contract; conforming
1135 provisions to changes made by the act; creating s.
1136 651.057, F.S.; providing additional requirements for
1137 continuing care at-home contracts; requiring that a
1138 provider who wishes to offer continuing care at-home
1139 contracts submit certain additional documents to the
1140 office; requiring that the provider comply with
1141 certain requirements; limiting the number of
1142 continuing care and continuing care at-home contracts
1143 at a facility based on the types of units at the
1144 facility; amending ss. 651.071, 651.091, 651.106,
1145 651.114, 651.118, 651.121, and 651.125, F.S.;
1146 conforming provisions to changes made by the act;
1147 providing an effective date.