Text: HF00061 Text: HF00063 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 523D.3, subsection 1, paragraph h, Code
1 2 2003, is amended to read as follows:
1 3 h. The provisions which have been made or will be made, if
1 4 any, to provide reserve funding or security to enable the
1 5 provider to fully perform its obligations under contracts to
1 6 provide continuing care or senior adult congregate living
1 7 services at the facility, including the establishment of
1 8 escrow accounts, trusts, or reserve funds, together with the
1 9 manner in which the funds will be invested and the names and
1 10 experience of persons who will make the investment decisions.
1 11 If escrow accounts, trusts, or reserve funds have been
1 12 established with the fees, deposits, or contributions of
1 13 prospective or current residents, the disclosure shall include
1 14 certified financial statements and narratives explaining and
1 15 detailing the balances, revenue, withdrawals, and transactions
1 16 involving these accounts, trusts, and reserve funds for the
1 17 provider's previous fiscal year and including the manner in
1 18 which the moneys in the accounts, trusts, and reserve funds
1 19 are being invested and the names and experience of the persons
1 20 making the investment decisions.
1 21 Sec. 2. Section 523D.3, subsection 2, unnumbered paragraph
1 22 1, Code 2003, is amended to read as follows:
1 23 The provider shall file with the insurance division, and
1 24 shall provide to each resident, and to each resident's
1 25 personal representative if one is appointed, annually within
1 26 five months following the end of the provider's fiscal year,
1 27 an annual disclosure statement which shall contain the
1 28 information required by this chapter for the initial
1 29 disclosure statement. The annual disclosure statement shall
1 30 also be accompanied by a narrative describing:
1 31 Sec. 3. Section 523D.3, subsection 3, Code 2003, is
1 32 amended to read as follows:
1 33 3. In the event an amendment is filed with the division of
1 34 insurance pursuant to subsection 4, the provider shall deliver
1 35 a copy of the amendment or the amended disclosure statement to
2 1 a prospective resident and to a prospective resident's
2 2 personal representative if one is appointed prior to the
2 3 provider's acceptance of part or all of the entrance fee or
2 4 the execution of the continuing care or senior congregate
2 5 living services contract by the prospective resident. The
2 6 provider shall also deliver a copy of the amendment or the
2 7 amended disclosure statement to each resident and to each
2 8 resident's personal representative if one is appointed.
2 9 Sec. 4. Section 523D.6, subsection 1, Code 2003, is
2 10 amended by adding the following new paragraph and relettering
2 11 the subsequent paragraphs:
2 12 NEW PARAGRAPH. m. A statement that adjustment of periodic
2 13 charges or fees resulting in increased cost to a resident must
2 14 be preceded by a minimum of sixty days' advance notice to the
2 15 resident and that the notice must include at a minimum a full
2 16 description of any adjustments, with supporting financial
2 17 information to demonstrate the need for the adjustment.
2 18 EXPLANATION
2 19 This bill requires that a provider of care in a continuing
2 20 care retirement community or senior adult congregate living
2 21 facility, in addition to providing a disclosure statement to a
2 22 prospective resident or a prospective resident's personal
2 23 representative, and in addition to filing an annual disclosure
2 24 statement with the insurance division, also provide an annual
2 25 disclosure statement to each current resident and each current
2 26 resident's personal representative if one is appointed. The
2 27 bill also provides that if the provider amends a disclosure
2 28 statement or annual disclosure statement, a copy of the
2 29 amendment or amended disclosure statement is to be delivered
2 30 to each current resident and to each current resident's
2 31 personal representative if one is appointed.
2 32 The bill adds to the listing of inclusions in the initial
2 33 disclosure statement to be provided to prospective residents
2 34 and prospective residents' personal representatives, if
2 35 applicable (and by subsequent reference to the listing of
3 1 inclusions in the annual disclosure statement to be provided
3 2 to the insurance division and current residents and current
3 3 residents' personal representatives, if applicable), certified
3 4 financial statements and narratives explaining and detailing
3 5 the balances as well as all revenue, withdrawals, and
3 6 transactions involving any accounts, trusts, and reserve funds
3 7 that have been established with the fees, deposits, or
3 8 contributions of prospective or current residents, for the
3 9 provider's previous fiscal year, and including the manner in
3 10 which the moneys in the accounts, trusts, and reserve funds
3 11 are being invested and the names and experience of the persons
3 12 making the investment decisions.
3 13 The bill also requires that the provider's contract include
3 14 a statement that adjustment of periodic charges or fees
3 15 resulting in increased cost to a resident must be preceded by
3 16 a minimum of 60 days' advance notice to the resident and that
3 17 the notice must include at a minimum a full description of any
3 18 adjustments, with supporting financial information to
3 19 demonstrate the need for the adjustment.
3 20 Existing civil and criminal penalties under the chapter
3 21 apply to violations of the bill provisions. Under the current
3 22 chapter, a provider is liable to the person contracting for
3 23 services for damages and repayment of all fees paid to the
3 24 provider, facility, or person violating the chapter, less the
3 25 reasonable value of care and lodging provided to the resident
3 26 prior to discovery of the violation, misstatement, or
3 27 omission, or the time the violation, misstatement, or omission
3 28 should reasonably have been discovered, together with
3 29 interest, court costs, and reasonable attorney fees, if the
3 30 provider enters into a contract without having first delivered
3 31 a disclosure statement meeting the requirements of the chapter
3 32 to the persons required to receive the disclosure or enters
3 33 into the contract with a person who has relied on a disclosure
3 34 statement which contains any untrue statement of a material
3 35 fact or omits to state a material fact. Additionally, the
4 1 chapter currently provides that a person who willfully and
4 2 knowingly violates a provision of the chapter or a rule
4 3 adopted or order entered pursuant to the chapter is guilty of
4 4 an aggravated misdemeanor. The chapter currently also
4 5 provides for injunctive relief.
4 6 LSB 1323HH 80
4 7 pf/sh/8.1
Text: HF00061 Text: HF00063 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
© 2003 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Thu Jan 22 03:30:18 CST 2004
URL: /DOCS/GA/80GA/Legislation/HF/00000/HF00062/030127.html
jhf