Florida Senate - 2023                        COMMITTEE AMENDMENT
       Bill No. SB 622
       
       
       
       
       
       
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                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/07/2023           .                                
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       The Committee on Banking and Insurance (Yarborough) recommended
       the following:
       
       
    1         Senate Substitute for Amendment (528586) (with title
    2  amendment)
    3  
    4         Delete everything after the enacting clause
    5  and insert:
    6         Section 1. Present subsections (13) through (26) and (27)
    7  of section 651.011, Florida Statutes, are redesignated as
    8  subsections (14) through (27) and (29), respectively, and new
    9  subsection (13) and subsection (28) are added to that section,
   10  to read:
   11         651.011 Definitions.—As used in this chapter, the term:
   12         (13) “Designated resident representative” means a resident
   13  elected by the residents’ council to represent residents on
   14  matters related to changes in fees or services as specified in
   15  s. 651.085(2) and (3).
   16         (28)“Residents’ council” means an organized body
   17  representing the resident population of a certified facility. A
   18  residents’ council shall serve as a liaison between residents
   19  and the appropriate representative of the provider.
   20         Section 2. Paragraph (a) of subsection (2), paragraph (b)
   21  of subsection (4), and subsection (6) of section 651.0246,
   22  Florida Statutes, are amended to read:
   23         651.0246 Expansions.—
   24         (2) A provider applying for expansion of a certificated
   25  facility must submit all of the following:
   26         (a) A feasibility study prepared by an independent
   27  certified public accountant. The feasibility study must include
   28  at least the following information:
   29         1. A description of the facility and proposed expansion,
   30  including the location, the size, the anticipated completion
   31  date, and the proposed construction program.
   32         2. An identification and evaluation of the primary and, if
   33  applicable, secondary market areas of the facility and the
   34  projected unit sales per month.
   35         3. Projected revenues, including anticipated entrance fees;
   36  monthly service fees; nursing care revenues, if applicable; and
   37  all other sources of revenue.
   38         4. Projected expenses, including for staffing requirements
   39  and salaries; the cost of property, plant, and equipment,
   40  including depreciation expense; interest expense; marketing
   41  expense; and other operating expenses.
   42         5. A projected balance sheet of the applicant.
   43         6. The expectations for the financial condition of the
   44  project, including the projected cash flow and an estimate of
   45  the funds anticipated to be necessary to cover startup losses.
   46         7. The inflation factor, if any, assumed in the study for
   47  the proposed expansion and how and where it is applied.
   48         8. Project costs; the total amount of debt financing
   49  required; marketing projections; resident rates, fees, and
   50  charges; the competition; resident contract provisions; and
   51  other factors that affect the feasibility of the facility.
   52         9. Appropriate population projections, including morbidity
   53  and mortality assumptions.
   54         10. The name of the person who prepared the feasibility
   55  study and his or her experience in preparing similar studies or
   56  otherwise consulting in the field of continuing care.
   57         11. Financial forecasts or projections prepared in
   58  accordance with standards adopted by the American Institute of
   59  Certified Public Accountants or in accordance with standards for
   60  feasibility studies for continuing care retirement communities
   61  adopted by the Actuarial Standards Board.
   62         12. An independent evaluation and examination opinion for
   63  the first 5 years of operations, or a comparable opinion
   64  acceptable to the office, by the certified public accountant
   65  consultant who prepared the study, of the underlying assumptions
   66  used as a basis for the forecasts or projections in the study
   67  and that the assumptions are reasonable and proper and the
   68  project as proposed is feasible.
   69         13. Any other information that the provider deems relevant
   70  and appropriate to provide to enable the office to make a more
   71  informed determination.
   72  
   73  If any material change occurs in the facts set forth in an
   74  application filed with the office pursuant to this section, an
   75  amendment setting forth such change must be filed with the
   76  office within 10 business days after the applicant becomes aware
   77  of such change, and a copy of the amendment must be sent by
   78  registered mail to the principal office of the facility and to
   79  the principal office of the controlling company.
   80         (4) The provider is entitled to secure release of the
   81  moneys held in escrow within 7 days after receipt by the office
   82  of an affidavit from the provider, along with appropriate copies
   83  to verify, and notification to the escrow agent by certified
   84  mail that the following conditions have been satisfied:
   85         (b) Payment in full has been received for at least 50
   86  percent of the total units of a phase or of the total of the
   87  combined phases constructed; or a provider has collected a
   88  reservation deposit for at least 75 percent of the proposed
   89  units for which an entrance fee is to be charged and the
   90  escrowed funds will be used for the sole purpose of paying
   91  secured indebtedness as specified in the feasibility study
   92  submitted pursuant to paragraph (2)(a). The minimum reservation
   93  deposit must be the lesser of $40,000 or 10 percent of the then
   94  current entrance fee for the unit being reserved. If the
   95  expansion is to be completed in multiple phases, the 75 percent
   96  reservation requirement applies separately to each phase of the
   97  expansion. If a provider offering continuing care at-home is
   98  applying for a release of escrowed entrance fees, the same
   99  minimum requirement must be met for the continuing care and
  100  continuing care at-home contracts independently of each other.
  101  
  102  Notwithstanding chapter 120, only the provider, the escrow
  103  agent, and the office have a substantial interest in any office
  104  decision regarding release of escrow funds in any proceedings
  105  under chapter 120 or this chapter.
  106         (6) Within 30 45 days after the date on which an
  107  application is deemed complete as provided in paragraph (5)(b),
  108  the office shall complete its review and, based upon its review,
  109  approve an expansion by the applicant and issue a determination
  110  that the application meets all requirements of law, that the
  111  feasibility study was based on sufficient data and reasonable
  112  assumptions, and that the applicant will be able to provide
  113  continuing care or continuing care at-home as proposed and meet
  114  all financial and contractual obligations related to its
  115  operations, including the financial requirements of this
  116  chapter. If the application is denied, the office must notify
  117  the applicant in writing, citing the specific failures to meet
  118  the requirements of this chapter. The denial entitles the
  119  applicant to a hearing pursuant to chapter 120.
  120         Section 3. Paragraph (b) of subsection (2) of section
  121  651.026, Florida Statutes, is amended to read:
  122         651.026 Annual reports.—
  123         (2) The annual report shall be in such form as the
  124  commission prescribes and shall contain at least the following:
  125         (b) A financial report audited by an independent certified
  126  public accountant which must contain, for two or more periods if
  127  the facility has been in existence that long, all of the
  128  following:
  129         1. An accountant’s opinion and, in accordance with
  130  generally accepted accounting principles:
  131         a. A balance sheet;
  132         b. A statement of income and expenses;
  133         c. A statement of equity or fund balances; and
  134         d. A statement of changes in cash flows.
  135         2. Notes to the financial report considered customary or
  136  necessary for full disclosure or adequate understanding of the
  137  financial report, financial condition, and operation.
  138         3.If the provider’s financial statements are consolidated
  139  or combined in accordance with generally accepted accounting
  140  principles with the financial statements of additional entities
  141  owned or controlled by the provider, the financial report must
  142  include as supplemental information a separate balance sheet,
  143  statement of income and expenses, statement of equity or fund
  144  balances, and statement of changes in cash flows for the
  145  individual provider and each additional entity comprising the
  146  consolidated or combined financial report.
  147         4.If the provider is a member of an obligated group, the
  148  provider may use the obligated group’s audited financial
  149  statements if they contain as supplemental information a
  150  separate balance sheet, statement of income and expenses,
  151  statement of equity or fund balances, and statement of changes
  152  in cash flows for the individual provider and other members of
  153  the obligated group.
  154         Section 4. Paragraph (a) of subsection (1) and paragraph
  155  (c) of subsection (3) of section 651.033, Florida Statutes, are
  156  amended, and paragraph (a) of subsection (3) of that section is
  157  republished, to read:
  158         651.033 Escrow accounts.—
  159         (1) When funds are required to be deposited in an escrow
  160  account pursuant to s. 651.0215, s. 651.022, s. 651.023, s.
  161  651.0246, s. 651.035, or s. 651.055:
  162         (a) The escrow account must be established in a Florida
  163  state-chartered bank, Florida savings bank and loan association,
  164  or Florida trust company, or a federal savings or thrift
  165  association, bank, savings bank, or trust company national bank
  166  that is chartered and supervised by the Office of the
  167  Comptroller of the Currency within the United States Department
  168  of the Treasury and that has a branch in this state, which is
  169  acceptable to the office, or such funds must be deposited with
  170  the department and be kept and maintained in an account separate
  171  and apart from the provider’s business accounts.
  172         (3) When entrance fees are required to be deposited in an
  173  escrow account pursuant to s. 651.0215, s. 651.022, s. 651.023,
  174  s. 651.0246, or s. 651.055:
  175         (a) The provider shall deliver to the resident a written
  176  receipt. The receipt must show the payor’s name and address, the
  177  date, the price of the care contract, and the amount of money
  178  paid. A copy of each receipt, together with the funds, must be
  179  deposited with the escrow agent or as provided in paragraph (c).
  180  The escrow agent must release such funds to the provider 7 days
  181  after the date of receipt of the funds by the escrow agent if
  182  the provider, operating under a certificate of authority issued
  183  by the office, has met the requirements of s. 651.0215(8), s.
  184  651.023(6), or s. 651.0246. However, if the resident rescinds
  185  the contract within the 7-day period, the escrow agent must
  186  release the escrowed fees to the resident.
  187         (c) As an alternative to paragraph (a) At the request of an
  188  individual resident of a facility, the provider may hold the
  189  check for the 7-day period and may not deposit it during this
  190  time period. If the resident rescinds the contract within the 7
  191  day period, the check must be immediately returned to the
  192  resident. Upon the expiration of the 7 days, the provider shall
  193  deposit the check.
  194         Section 5. Subsection (6) of section 651.034, Florida
  195  Statutes, is amended to read:
  196         651.034 Financial and operating requirements for
  197  providers.—
  198         (6) The office may exempt a provider from subsection (1) or
  199  subsection (2) until stabilized occupancy is reached or until
  200  the time projected to achieve stabilized occupancy as reported
  201  in the last feasibility study required by the office as part of
  202  an application filing under s. 651.0215, s. 651.023, s. 651.024,
  203  or s. 651.0246 has elapsed, but for no longer than 5 years after
  204  the end of the provider’s fiscal year in which the certificate
  205  of occupancy was issued date of issuance of the certificate of
  206  occupancy.
  207         Section 6. Paragraph (b) of subsection (1), paragraph (a)
  208  of subsection (2), subsection (5), and paragraph (a) of
  209  subsection (7) of section 651.035, Florida Statutes, are amended
  210  to read:
  211         651.035 Minimum liquid reserve requirements.—
  212         (1) A provider shall maintain in escrow a minimum liquid
  213  reserve consisting of the following reserves, as applicable:
  214         (b) A provider that has outstanding indebtedness that
  215  requires a debt service reserve to be held in escrow pursuant to
  216  a trust indenture or mortgage lien on the facility and for which
  217  the debt service reserve may only be used to pay principal and
  218  interest payments on the debt that the debtor is obligated to
  219  pay, and which may include property taxes and insurance, may
  220  include such debt service reserve in computing the minimum
  221  liquid reserve needed to satisfy this subsection if the provider
  222  furnishes to the office a copy of the agreement under which such
  223  debt service reserve is held, together with a statement of the
  224  amount being held in escrow for the debt service reserve,
  225  certified by the lender or trustee and the provider to be
  226  correct. The trustee shall provide the office with any
  227  information concerning the debt service reserve account upon
  228  request of the provider or the office. In addition, the trust
  229  indenture, loan agreement, or escrow agreement must provide that
  230  the provider, trustee, lender, escrow agent, or another person
  231  designated to act in their place shall notify the office in
  232  writing at least 10 days before the withdrawal of any portion of
  233  the debt service reserve funds required to be held in escrow as
  234  described in this paragraph. The notice must include an
  235  affidavit sworn to by the provider, the trustee, or a person
  236  designated to act in their place which includes the amount of
  237  the scheduled debt service payment, the payment due date, the
  238  amount of the withdrawal, the accounts from which the withdrawal
  239  will be made, and a plan with a schedule for replenishing the
  240  withdrawn funds. If the plan is revised by a consultant that is
  241  retained as prescribed in the provider’s financing documents,
  242  the revised plan must be submitted to the office within 10 days
  243  after approval by the lender or trustee. Any such separate debt
  244  service reserves are not subject to the transfer provisions set
  245  forth in subsection (8).
  246         (2)(a) In facilities where not all residents are under
  247  continuing care or continuing care at-home contracts, the
  248  reserve requirements of subsection (1) shall be computed only
  249  with respect to the proportional share of operating expenses
  250  that are applicable to residents. For purposes of this
  251  calculation, the proportional share shall be based upon the
  252  ratio of residents under continuing care or continuing care at
  253  home contracts to the total of all residents, including those
  254  residents who do not hold such contracts.
  255         (5) A provider may satisfy the minimum liquid reserve
  256  requirements of this section by acquiring from a financial
  257  institution, as specified in paragraph (b), a clean,
  258  unconditional irrevocable letter of credit equal to the
  259  requirements of this section, less the amount of escrowed
  260  operating cash required by paragraph (d).
  261         (a) The letter of credit must be issued by a financial
  262  institution participating in the State of Florida Treasury
  263  Certificate of Deposit Program; a Florida state-chartered bank,
  264  savings bank, or trust company; or a federal savings or thrift
  265  association, bank, savings bank, or trust company, and must be
  266  approved by the office before issuance and before any renewal or
  267  modification thereof. At a minimum, the letter of credit must
  268  provide for:
  269         1. Ninety days’ prior written notice to both the provider
  270  and the office of the financial institution’s determination not
  271  to renew or extend the term of the letter of credit.
  272         2. Unless otherwise arranged by the provider to the
  273  satisfaction of the office, deposit by the financial institution
  274  of letter of credit funds in an account designated by the office
  275  no later than 30 days before the expiration of the letter of
  276  credit.
  277         3. Deposit by the financial institution of letter of credit
  278  funds in an account designated by the office within 4 business
  279  days following written instructions from the office that, in the
  280  sole judgment of the office, funding of the minimum liquid
  281  reserve is required.
  282         (b) The terms of the letter of credit must be approved by
  283  the office and the long-term debt of the financial institution
  284  providing such letter of credit must be rated in one of their
  285  top three long-term debt rating categories by either Moody’s
  286  Investors Service, Standard & Poor’s Corporation, or a
  287  recognized securities rating agency acceptable to the office.
  288         (c) The letter of credit must name the office as
  289  beneficiary.
  290         (d) Notwithstanding any other provision of this section, a
  291  provider using a letter of credit pursuant to this subsection
  292  shall, at all times, have and maintain in escrow an operating
  293  cash reserve equal to 2 months’ operating expenses as determined
  294  pursuant to s. 651.026.
  295         (e) If the issuing financial institution no longer
  296  participates in the State of Florida Treasury Certificate of
  297  Deposit Program, such financial institution shall deposit as
  298  collateral with the department eligible securities, as
  299  prescribed by s. 625.52, having a market value equal to or
  300  greater than 100 percent of the stated amount of the letter of
  301  credit.
  302         (7)(a) A provider may withdraw funds held in escrow without
  303  the approval of the office if:
  304         1. The amount held in escrow exceeds the requirements of
  305  this section and if the withdrawal will not affect compliance
  306  with this section; or
  307         2.The withdrawal is from a debt service reserve required
  308  to be held in escrow pursuant to a trust indenture or mortgage
  309  lien on the facility as described in paragraph (1)(b) and will
  310  be used to pay principal or interest payments, which may include
  311  property taxes and insurance, the debtor is obligated to pay
  312  when sufficient funds are not available on the next principal or
  313  interest payment due date.
  314  
  315  The notice specified in paragraph (1)(b) must be sent to the
  316  office at least 10 days before debt service reserve funds may be
  317  withdrawn without prior approval.
  318         Section 7. Subsection (2) of section 651.055, Florida
  319  Statutes, is amended to read:
  320         651.055 Continuing care contracts; right to rescind.—
  321         (2) A resident has the right to rescind a continuing care
  322  contract and receive a full refund of any funds paid, without
  323  penalty or forfeiture, within 7 days after executing the
  324  contract. However, if an individual signs a reservation
  325  agreement pursuant to s. 651.023(4) and fails to cancel such
  326  agreement within 30 days after executing the agreement and
  327  subsequently signs a residency contract pursuant to this section
  328  and rescinds the contract within 7 days, the forfeiture penalty
  329  authorized under s. 651.023(4)(b) may be deducted from the
  330  refund unless the individual can demonstrate extenuating
  331  circumstances, such as, but not limited to, the death or illness
  332  of a spouse or partner, a diagnosis of a chronic or terminal
  333  illness of the individual, or a change in financial or asset
  334  position which warrants cancellation of the contract. A resident
  335  may not be required to move into the facility designated in the
  336  contract before the expiration of the 7-day period. During the
  337  7-day period, the resident’s funds must be held in an escrow
  338  account or the provider may hold the check until the 7-day
  339  period expires unless otherwise requested by the resident
  340  pursuant to s. 651.033(3)(c).
  341         Section 8. Paragraphs (a) and (d) of subsection (2) of
  342  section 651.081, Florida Statutes, are amended to read:
  343         651.081 Residents’ council.—
  344         (2)(a) Each facility shall establish a residents’ council
  345  created for the purpose of representing residents on matters set
  346  forth in s. 651.085. A residents’ council has authority to
  347  establish and maintain its own governance documents, such as
  348  bylaws or operating agreements, policies, and operating
  349  procedures, which may include establishment of committees. A
  350  person is eligible to participate in residents’ council matters,
  351  including elections, if the person meets the definition of a
  352  resident under s. 651.011. The residents’ council shall be
  353  established through an election in which the residents, as
  354  defined in s. 651.011, vote by ballot, physically or by proxy.
  355  If the election is to be held during a meeting, a notice of the
  356  organizational meeting must be provided to all residents of the
  357  community at least 10 business days before the meeting. Notice
  358  may be given through internal mailboxes, communitywide
  359  newsletters, bulletin boards, in-house television stations, and
  360  other similar means of communication. An election creating a
  361  residents’ council is valid if at least 40 percent of the total
  362  resident population participates in the election and a majority
  363  of the participants vote affirmatively for the council. The
  364  initial residents’ council created under this section is valid
  365  for at least 12 months. A residents’ organization formalized by
  366  bylaws and elected officials must be recognized as the
  367  residents’ council under this section and s. 651.085. Within 30
  368  days after the election of a newly elected president or chair of
  369  the residents’ council, the provider shall give the president or
  370  chair a copy of this chapter and rules adopted thereunder, or
  371  direct him or her to the appropriate public website to obtain
  372  this information. Only one residents’ council may represent
  373  residents before the governing body of the provider as described
  374  in s. 651.085(2).
  375         (d) A residents’ council shall adopt its own bylaws and
  376  governance documents subject to the vote and approval of the
  377  residents. The residents’ council shall provide for open
  378  meetings when appropriate. The residents’ council governing
  379  documents shall define the manner in which residents may submit
  380  an issue to the council and define a reasonable timeframe in
  381  which the residents’ council shall respond to a resident
  382  submission or inquiry. A residents’ council may include term
  383  limits in its governing documents to ensure consistent
  384  integration of new leaders. If a licensed facility files for
  385  bankruptcy under chapter 11 of the United States Bankruptcy
  386  Code, 11 U.S.C. chapter 11, the facility, in its required filing
  387  of the 20 largest unsecured creditors with the United States
  388  Trustee, shall include the name and contact information of a
  389  designated resident selected by the residents’ council, and a
  390  statement explaining that the designated resident was chosen by
  391  the residents’ council to serve as a representative of the
  392  residents’ interest on the creditors’ committee, if appropriate.
  393         Section 9. Paragraph (f) of subsection (1) of section
  394  651.083, Florida Statutes, is amended to read:
  395         651.083 Residents’ rights.—
  396         (1) No resident of any facility shall be deprived of any
  397  civil or legal rights, benefits, or privileges guaranteed by
  398  law, by the State Constitution, or by the United States
  399  Constitution solely by reason of status as a resident of a
  400  facility. Each resident of a facility has the right to:
  401         (f) Present grievances and recommend changes in policies,
  402  procedures, and services to the staff of the facility, governing
  403  officials, or any other person without restraint, interference,
  404  coercion, discrimination, or reprisal. This right includes
  405  access to ombudsman volunteers or staff and advocates and the
  406  right to be a member of, and active in, and to associate with,
  407  advocacy or special interest groups or associations.
  408         Section 10. Subsections (2), (3), and (5) of section
  409  651.085, Florida Statutes, are amended to read:
  410         651.085 Quarterly meetings between residents and the
  411  governing body of the provider; resident representation before
  412  the governing body of the provider.—
  413         (2) A residents’ council formed pursuant to s. 651.081,
  414  members of which are elected by the residents, shall nominate
  415  and elect designate a designated resident representative to
  416  represent them on matters specified in subsection (3) before the
  417  governing body of the provider. The initial designated resident
  418  representative elected under this section shall be elected to
  419  serve at least 12 months. The designated resident representative
  420  need not be a current member of the residents’ council; however,
  421  such individual must meet the definition of a resident under s.
  422  651.011.
  423         (3) The designated resident representative shall be
  424  notified by a representative of the provider at least 14 days in
  425  advance of any meeting of the full governing body at which the
  426  annual budget and proposed changes or increases in resident fees
  427  or services are on the agenda or will be discussed. The
  428  designated resident representative shall be invited to attend
  429  and participate in that portion of the meeting designated for
  430  the discussion of such changes. A designated resident
  431  representative shall perform his or her duties in good faith.
  432  For a provider that owns or operates more than one facility in
  433  this state, each facility must have its own designated resident
  434  representative.
  435         (5) The board of directors or governing board of a licensed
  436  provider may at its sole discretion allow a resident of the
  437  facility to be a voting member of the board or governing body of
  438  the facility. The board of directors or governing board of a
  439  licensed provider may establish specific criteria for the
  440  nomination, selection, and term of a resident as a member of the
  441  board or governing body. If the board or governing body of a
  442  licensed provider operates more than one licensed facility,
  443  regardless of whether the facility is in-state or out-of-state,
  444  the board or governing body may select at its sole discretion
  445  one resident from among its facilities to serve on the board of
  446  directors or governing body on a rotating basis. A resident who
  447  serves as a member of a board or governing body of the facility
  448  shall perform his or her duties in a fiduciary manner, including
  449  the duty of confidentiality, duty of care, duty of loyalty, and
  450  duty of obedience, as required of any individual serving on the
  451  board or governing body.
  452         Section 11. Present paragraphs (e) through (k) and (l) of
  453  subsection (2) of section 651.091, Florida Statutes, are
  454  redesignated as paragraphs (f) through (l) and (n),
  455  respectively, new paragraph (e) and paragraph (m) are added to
  456  that subsection, and paragraph (m) is added to subsection (3) of
  457  that section, to read:
  458         651.091 Availability, distribution, and posting of reports
  459  and records; requirement of full disclosure.—
  460         (2) Every continuing care facility shall:
  461         (e) Provide a copy of the final examination report and
  462  corrective action plan, if one is required by the office, to the
  463  executive officer of the governing body of the provider and the
  464  president or chair of the residents’ council within 60 days
  465  after issuance of the report.
  466         (m)Notify the president or chair of the residents’ council
  467  in writing of a change in management within 10 business days
  468  after the change.
  469         (3) Before entering into a contract to furnish continuing
  470  care or continuing care at-home, the provider undertaking to
  471  furnish the care, or the agent of the provider, shall make full
  472  disclosure, obtain written acknowledgment of receipt, and
  473  provide copies of the disclosure documents to the prospective
  474  resident or his or her legal representative, of the following
  475  information:
  476         (m)Disclosure of whether the provider has one or more
  477  residents serving on its board or governing body and whether
  478  that individual has a vote or is serving in a nonvoting, ex
  479  officio capacity.
  480         Section 12. Subsections (1) and (6) of section 651.105,
  481  Florida Statutes, are amended to read:
  482         651.105 Examination.—
  483         (1)(a) The office may at any time, and shall at least once
  484  every 3 years, examine the business of any applicant for a
  485  certificate of authority and any provider engaged in the
  486  execution of care contracts or engaged in the performance of
  487  obligations under such contracts, in the same manner as is
  488  provided for the examination of insurance companies pursuant to
  489  ss. 624.316 and 624.318. For a provider as deemed accredited
  490  under s. 651.028, such examinations must take place at least
  491  once every 5 years. An examination covering the preceding 3 or 5
  492  fiscal years of the provider, as applicable, must be commenced
  493  within 12 months after the end of the most recent fiscal year
  494  covered by the examination. Such examination may include events
  495  subsequent to the end of the most recent fiscal year and the
  496  events of any prior period which relate to possible violations
  497  of this chapter or which affect the present financial condition
  498  of the provider. At least once every 3 or 5 fiscal years, as
  499  applicable, the office shall conduct an interview in person,
  500  telephonically, or through electronic communication with the
  501  current president or chair of the residents’ council, or another
  502  designated officer of the council if the president or chair is
  503  not available, as part of the examination process.
  504         (b) Such examinations must be made by a representative or
  505  examiner designated by the office whose compensation will be
  506  fixed by the office pursuant to s. 624.320. Routine examinations
  507  may be made by having the necessary documents submitted to the
  508  office; and, for this purpose, financial documents and records
  509  conforming to commonly accepted accounting principles and
  510  practices, as required under s. 651.026, are deemed adequate.
  511  The final written report of each examination must be filed with
  512  the office and, when so filed, constitutes a public record. Any
  513  provider being examined shall, upon request, give reasonable and
  514  timely access to all of its records. The representative or
  515  examiner designated by the office may at any time examine the
  516  records and affairs and inspect the physical property of any
  517  provider, whether in connection with a formal examination or
  518  not.
  519         (6) A representative of the provider must give a copy of
  520  the final examination report and corrective action plan, if one
  521  is required by the office, to the executive officer of the
  522  governing body of the provider within 60 days after issuance of
  523  the report.
  524         Section 13. Section 651.012, Florida Statutes, is amended
  525  to read:
  526         651.012 Exempted facility; written disclosure of
  527  exemption.—Any facility exempted under ss. 632.637(1)(e) and
  528  651.011(24) ss. 632.637(1)(e) and 651.011(23) must provide
  529  written disclosure of such exemption to each person admitted to
  530  the facility. This disclosure must be written using language
  531  likely to be understood by the person and must briefly explain
  532  the exemption.
  533         Section 14. Subsection (1) of section 651.0261, Florida
  534  Statutes, is amended to read:
  535         651.0261 Quarterly and monthly statements.—
  536         (1) Within 45 days after the end of each fiscal quarter,
  537  each provider shall file a quarterly unaudited financial
  538  statement of the provider or of the facility in the form
  539  prescribed by commission rule and days cash on hand, occupancy,
  540  debt service coverage ratio, and a detailed listing of the
  541  assets maintained in the liquid reserve as required under s.
  542  651.035. The last quarterly statement for a fiscal year is not
  543  required if a provider does not have pending a regulatory action
  544  level event, impairment, or a corrective action plan. If a
  545  provider falls below two or more of the thresholds set forth in
  546  s. 651.011(26) s. 651.011(25) at the end of any fiscal quarter,
  547  the provider shall submit to the office, at the same time as the
  548  quarterly statement, an explanation of the circumstances and a
  549  description of the actions it will take to meet the
  550  requirements.
  551         Section 15. This act shall take effect July 1, 2023.
  552  
  553  ================= T I T L E  A M E N D M E N T ================
  554  And the title is amended as follows:
  555         Delete everything before the enacting clause
  556  and insert:
  557                        A bill to be entitled                      
  558         An act relating to continuing care contracts; amending
  559         s. 651.011, F.S.; defining the terms “designated
  560         resident representative” and “residents’ council”;
  561         amending s. 651.0246, F.S.; revising a requirement for
  562         specified information that must be submitted by a
  563         provider applying for expansion of a certificated
  564         continuing care facility; revising a condition for the
  565         release of certain escrowed funds to providers;
  566         revising the timeframe in which the Office of
  567         Insurance Regulation must complete its review of an
  568         application for expansion; amending s. 651.026, F.S.;
  569         revising information required to be contained in
  570         certain providers’ financial reports in their annual
  571         reports; amending s. 651.033, F.S.; revising financial
  572         institutions in which escrow accounts must be
  573         established; revising a condition under which a
  574         provider may hold and not deposit a resident’s check
  575         for a specified period; amending s. 651.034, F.S.;
  576         revising the timeframe during which the office may
  577         exempt certain providers from certain regulatory
  578         actions; amending s. 651.035, F.S.; providing that
  579         certain documents relating to a provider’s debt
  580         service reserve must require certain notice to the
  581         office before the withdrawal of debt service reserve
  582         funds; specifying requirements for the notice and for
  583         certain plans to replenish withdrawn funds; revising
  584         the calculation of minimum liquid reserve requirements
  585         for certain facilities; revising requirements for
  586         letters of credit which satisfy minimum liquid reserve
  587         requirements; revising circumstances under which a
  588         provider may withdraw funds held in escrow without the
  589         office’s approval; making a technical change; amending
  590         s. 651.055, F.S.; specifying that a forfeiture penalty
  591         may be deducted from certain resident refunds except
  592         under certain circumstances; conforming a provision to
  593         changes made by the act; amending s. 651.081, F.S.;
  594         specifying the authority of residents’ councils and
  595         the eligibility of persons to participate in
  596         residents’ council matters; deleting a requirement for
  597         open meetings of residents’ councils; amending s.
  598         651.083, F.S.; specifying that a resident has the
  599         right to access ombudsman staff; amending s. 651.085,
  600         F.S.; requiring residents’ councils to nominate and
  601         elect a designated resident representative to
  602         represent them on specified matters; providing
  603         requirements for designated resident representatives;
  604         revising meetings of the full governing body for which
  605         the designated resident representative must be
  606         notified; requiring each facility of certain providers
  607         to have its own designated resident representative;
  608         providing a requirement for certain designated
  609         resident representatives; amending s. 651.091, F.S.;
  610         adding reporting and notice requirements for
  611         continuing care facilities; adding a disclosure
  612         requirement for providers to prospective residents or
  613         their legal representatives; amending s. 651.105,
  614         F.S.; specifying requirements for the office’s
  615         examination of providers and applicants for
  616         certificates of authority; deleting a requirement for
  617         a provider’s representative to give examination
  618         reports and corrective action plans to the governing
  619         body’s executive officer within a certain timeframe;
  620         amending ss. 651.012 and 651.0261, F.S.; conforming
  621         cross-references; providing an effective date.