House File 2263 H-8028 Amend House File 2263 as follows: 1 1. Page 2, after line 7 by inserting: 2 < Sec. ___. Section 523D.1, subsections 2, 3, 4, 8, and 9, 3 Code 2024, are amended to read as follows: 4 2. “Continuing care” means housing together with a continuum 5 of supportive services, home health services, nursing services, 6 medical services, or other health related services, furnished 7 to a resident, regardless of whether or not the lodging and 8 services are provided at the same location, together with 9 housing for residents that elect to live in a facility of 10 a provider, with or without other periodic charges, and 11 pursuant to one or more contracts effective for the life of the 12 resident or a period in excess of one year, including mutually 13 cancelable contracts, and in consideration of an entrance fee. 14 3. “Continuing care retirement community” means a facility or 15 program which provides continuing care to residents other than 16 residents related by consanguinity or affinity to the person 17 furnishing their care. 18 4. “Entrance fee” means an initial or deferred transfer to 19 a provider of a sum of money or other property made or promised 20 to be made as full or partial consideration for acceptance of 21 a specified individual in into a facility or a program if the 22 amount exceeds either of the following: 23 a. Five thousand dollars. 24 b. The sum of the regular periodic charges for six months 25 of residency . 26 8. “Provider” means a person undertaking through a lease or 27 other type of agreement to provide care in or from a continuing 28 care retirement community or senior adult congregate living 29 facility, even if that person does not own the facility. 30 9. “Resident” means an individual, sixty years of age or 31 older, entitled to receive care in from a continuing care 32 retirement community or a senior adult congregate living 33 facility. 34 Sec. ___. Section 523D.1, Code 2024, is amended by adding 35 -1- HF 2263.3061 (1) 90 nls/ko 1/ 7 #1.
the following new subsection: 1 NEW SUBSECTION . 7A. “Program” means an organized set of 2 measures or activities undertaken by a provider to provide 3 continuing care services to an individual. 4 Sec. ___. Section 523D.2, Code 2024, is amended to read as 5 follows: 6 523D.2 Application of chapter. 7 This chapter applies to a provider who executes a contract 8 to provide continuing care or senior adult congregate living 9 services in a facility or program , or extend extends the term 10 of an existing contract to provide continuing care or senior 11 adult congregate living services in a facility or program , if 12 the contract requires or permits the payment of an entrance fee 13 to a person, and any of the following apply: 14 1. The facility or program is or will be located in this 15 state. 16 2. The provider or a person acting on the provider’s behalf 17 solicits the contract within this state for a facility or 18 program located in this state and the person to be provided 19 with continuing care or senior adult congregate living services 20 under the contract resides within this state at the time of the 21 solicitation. 22 Sec. ___. Section 523D.2A, unnumbered paragraph 1, Code 23 2024, is amended to read as follows: 24 On or before March 1 of each year, a provider shall 25 file a certification with the commissioner in a manner and 26 according to requirements established by the commissioner. The 27 certification shall be accompanied by a one hundred dollar 28 administrative fee which fee shall be deposited as provided in 29 section 505.7 . The certification shall attest that according 30 to the best knowledge and belief of the attesting party, 31 the facility or program administered by the provider is in 32 compliance with the provisions of this chapter , including 33 rules adopted by the commissioner or orders issued by the 34 commissioner as authorized under this chapter . The attesting 35 -2- HF 2263.3061 (1) 90 nls/ko 2/ 7
person may be any of the following: 1 Sec. ___. Section 523D.3, subsection 1, paragraph c, 2 unnumbered paragraph 1, Code 2024, is amended to read as 3 follows: 4 With respect to each person covered by paragraph “b” , and 5 if the facility or program will be managed on a day-to-day 6 basis by a person identified pursuant to paragraph “b” , or with 7 respect to the proposed manager, the following information: 8 Sec. ___. Section 523D.3, subsection 1, paragraphs f, h, and 9 k, Code 2024, are amended to read as follows: 10 f. The services provided or proposed to be provided under 11 contracts for continuing care or senior adult congregate living 12 services at the facility , including the extent to which medical 13 care is furnished. The disclosure statement shall clearly 14 state which services are included in basic contracts and which 15 services are made available at or by the facility at extra 16 charge. 17 h. The provisions which have been made or will be made, 18 if any, to provide reserve funding or security to enable the 19 provider to fully perform its obligations under contracts to 20 provide continuing care or senior adult congregate living 21 services at the facility , including the establishment of escrow 22 accounts, trusts, or reserve funds, together with the manner in 23 which the funds will be invested and the names and experience 24 of persons who will make the investment decisions. 25 k. Other material information concerning the facility , 26 program, or the provider required by the division of insurance 27 or which the provider wishes to include. 28 Sec. ___. Section 523D.6, subsection 1, paragraphs b, c, f, 29 g, h, j, k, m, and p, Code 2024, are amended to read as follows: 30 b. The name and address of the facility or facilities , or 31 of the program . 32 c. The If a prospective resident elects to reside in housing 33 at the facility of a provider, the identification of the living 34 unit which the prospective resident will occupy. 35 -3- HF 2263.3061 (1) 90 nls/ko 3/ 7
f. A statement of the policy of the facility or program with 1 regard to any health or financial conditions upon which the 2 provider may require the resident to relinquish the resident’s 3 space in the designated facility or program . 4 g. A statement of the policy of the facility or program with 5 regard to the health and financial conditions required for a 6 person to continue as a resident or an enrollee in a program . 7 h. A statement of the policy of the facility or program with 8 regard to the conditions under which the resident is permitted 9 to remain in the facility or program in the event of financial 10 difficulties affecting the resident. 11 j. A statement of the policy of the facility or program 12 with regard to changes in accommodations and a description 13 of the procedures to be followed by the provider when the 14 provider temporarily or permanently changes the resident’s 15 accommodations within the facility or program , transfers the 16 resident from one level of care to another, or transfers the 17 resident to another health facility or program . 18 k. A description in clear and understandable language, in at 19 least ten point type, of the terms governing the refund of any 20 portion of the entrance fee in the event of discharge by the 21 provider, or cancellation by the resident, and a statement that 22 the provider shall not dismiss or discharge a resident from 23 a facility or program prior to the expiration of a resident 24 contract without just cause and sixty days written notice of 25 intent to cancel. The notice of dismissal or discharge shall 26 only be given upon a good faith determination that just cause 27 exists, and the notice shall be given in writing, signed by the 28 medical director, if any, and the administrator of the facility 29 or program . In an emergency situation only such notice as is 30 reasonable under the circumstances is required. 31 m. A description of the facility’s or program’s policies 32 and procedures for handling grievances between the provider and 33 residents. 34 p. A statement that if a resident dies or through illness, 35 -4- HF 2263.3061 (1) 90 nls/ko 4/ 7
injury, or incapacity is precluded from becoming a resident 1 under the terms of the contract before occupying the living 2 unit , or precluded from commencing a continuing care services 3 program under the terms of the contract , the contract is 4 automatically rescinded and the resident or the resident’s 5 legal representative shall receive a full refund of all 6 payments of money or transferred property to the facility 7 or program , except those costs specifically incurred by the 8 facility or program at the request of the resident or program 9 enrollee and set forth in writing in a separate addendum, 10 signed by both parties to the contract. 11 Sec. ___. Section 523D.6, subsection 2, Code 2024, is 12 amended to read as follows: 13 2. Cancellation. The contract required by this section 14 shall state the terms under which the contract can be canceled 15 by the provider , or the resident, or a program enrollee, 16 including a statement of the refund rights of a resident, 17 or a program enrollee, and shall include a completed, 18 easily detachable form in duplicate, captioned “Notice 19 of Cancellation”, as an attachment, in ten point boldface 20 type, containing the following information and statements in 21 substantially the following form and language: 22 NOTICE OF CANCELLATION 23 ........ 24 Date contract was executed. 25 ........ 26 Date disclosure statement was provided 27 to resident or program enrollee . 28 You may rescind and cancel your contract, without any penalty 29 or obligation, within three business days of the date the 30 contract was executed or within thirty days after the date 31 you received the disclosure statement required by Iowa Code 32 section 523D.3 , whichever is later. You are not required to 33 move into the facility or commence continuing care services 34 from the program before the expiration of this cancellation 35 -5- HF 2263.3061 (1) 90 nls/ko 5/ 7
period. However, if you do, the provider may retain the 1 reasonable value of care and services actually provided to you, 2 the resident, prior to your vacating the provider’s facility 3 or terminating continuing care services from the program . If 4 you cancel this contract and you have already moved into the 5 provider’s facility, you must vacate your living unit within 6 ten days after receipt by the provider of your cancellation 7 notice. 8 If you cancel this contract, any payments of money or 9 transfers of property you made to the provider must be returned 10 as soon as reasonably possible by the provider following 11 receipt by the provider of your cancellation notice, and any 12 security interest arising out of the transaction is canceled, 13 except that, as stated above, the provider may retain the 14 reasonable value of care and services actually provided to you 15 prior to your vacating the provider’s facility or terminating 16 continuing care services from the program . 17 To cancel this contract, mail by certified mail or hand 18 deliver a signed and dated copy of this cancellation notice 19 or any other written notice clearly indicating your intent to 20 cancel the contract, or send a telegram, to ........ (name 21 of provider) at ........ (address of provider’s place of 22 business). Your cancellation is effective upon mailing by 23 certified mail, when transmitted by telegraph, or when actual 24 notice is given to the provider, whichever is earlier. 25 I hereby cancel this contract. 26 ...... 27 (Date) 28 ............ 29 (Resident’s signature) 30 Sec. ___. Section 523D.7, subsection 1, paragraphs a and b, 31 Code 2024, are amended to read as follows: 32 a. Enters into a contract to provide continuing care or 33 senior adult congregate living services at a facility without 34 having first delivered a disclosure statement meeting the 35 -6- HF 2263.3061 (1) 90 nls/ko 6/ 7
requirements of this chapter to the person contracting for 1 continuing care or senior adult congregate living services and 2 to the person’s personal representative if one is appointed by 3 the person. 4 b. Enters into a contract to provide continuing care or 5 senior adult congregate living services at a facility with a 6 person who has relied on a disclosure statement which contains 7 any untrue statement of a material fact or omits to state a 8 material fact necessary in order to make the statements made, 9 in light of the circumstances under which they are made, not 10 misleading. > 11 2. Title page, line 3, by striking < sellers. > and inserting 12 < sellers, continuing care retirement facilities, and continuing 13 care retirement programs. > 14 3. By renumbering as necessary. 15 ______________________________ LOHSE of Polk -7- HF 2263.3061 (1) 90 nls/ko 7/ 7 #2. #3.