Senate Bill sb2110

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2004                                  SB 2110

    By Senator Bullard





    39-1850-04                                           See HB 45

  1                      A bill to be entitled

  2         An act relating to nursing home contracts;

  3         amending s. 400.424, F.S.; requiring each

  4         nursing home facility to use a standard

  5         contract approved by the Department of Elderly

  6         Affairs for use at that facility; providing an

  7         effective date.

  8  

  9  Be It Enacted by the Legislature of the State of Florida:

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11         Section 1.  Section 400.424, Florida Statutes, is

12  amended to read:

13         400.424  Contracts.--

14         (1)  The presence of each resident in a facility shall

15  be covered by a contract, executed at the time of admission or

16  prior thereto, between the licensee and the resident or his or

17  her designee or legal representative. Each party to the

18  contract shall be provided with a duplicate original thereof,

19  and the licensee shall keep on file in the facility all such

20  contracts. The licensee may not destroy or otherwise dispose

21  of any such contract until 5 years after its expiration.

22         (2)  Each contract must contain express provisions

23  specifically setting forth the services and accommodations to

24  be provided by the facility; the rates or charges; provision

25  for at least 30 days' written notice of a rate increase; the

26  rights, duties, and obligations of the residents, other than

27  those specified in s. 400.428; and other matters that the

28  parties deem appropriate. Each nursing home facility must use

29  a standard contract approved for use at that facility by the

30  department. Whenever money is deposited or advanced by a

31  resident in a contract as security for performance of the

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    Florida Senate - 2004                                  SB 2110
    39-1850-04                                           See HB 45




 1  contract agreement or as advance rent for other than the next

 2  immediate rental period:

 3         (a)  Such funds shall be deposited in a banking

 4  institution in this state that is located, if possible, in the

 5  same community in which the facility is located; shall be kept

 6  separate from the funds and property of the facility; may not

 7  be represented as part of the assets of the facility on

 8  financial statements; and shall be used, or otherwise

 9  expended, only for the account of the resident.

10         (b)  The licensee shall, within 30 days of receipt of

11  advance rent or a security deposit, notify the resident or

12  residents in writing of the manner in which the licensee is

13  holding the advance rent or security deposit and state the

14  name and address of the depository where the moneys are being

15  held. The licensee shall notify residents of the facility's

16  policy on advance deposits.

17         (3)(a)  The contract shall include a refund policy to

18  be implemented at the time of a resident's transfer,

19  discharge, or death. The refund policy shall provide that the

20  resident or responsible party is entitled to a prorated refund

21  based on the daily rate for any unused portion of payment

22  beyond the termination date after all charges, including the

23  cost of damages to the residential unit resulting from

24  circumstances other than normal use, have been paid to the

25  licensee. For the purpose of this paragraph, the termination

26  date shall be the date the unit is vacated by the resident and

27  cleared of all personal belongings. If the amount of

28  belongings does not preclude renting the unit, the facility

29  may clear the unit and charge the resident or his or her

30  estate for moving and storing the items at a rate equal to the

31  actual cost to the facility, not to exceed 20 percent of the

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2004                                  SB 2110
    39-1850-04                                           See HB 45




 1  regular rate for the unit, provided that 14 days' advance

 2  written notification is given. If the resident's possessions

 3  are not claimed within 45 days after notification, the

 4  facility may dispose of them. The contract shall also specify

 5  any other conditions under which claims will be made against

 6  the refund due the resident. Except in the case of death or a

 7  discharge due to medical reasons, the refunds shall be

 8  computed in accordance with the notice of relocation

 9  requirements specified in the contract. However, a resident

10  may not be required to provide the licensee with more than 30

11  days' notice of termination. If after a contract is

12  terminated, the facility intends to make a claim against a

13  refund due the resident, the facility shall notify the

14  resident or responsible party in writing of the claim and

15  shall provide said party with a reasonable time period of no

16  less than 14 calendar days to respond. The facility shall

17  provide a refund to the resident or responsible party within

18  45 days after the transfer, discharge, or death of the

19  resident. The agency shall impose a fine upon a facility that

20  fails to comply with the refund provisions of the paragraph,

21  which fine shall be equal to three times the amount due to the

22  resident. One-half of the fine shall be remitted to the

23  resident or his or her estate, and the other half to the

24  Health Care Trust Fund to be used for the purpose specified in

25  s. 400.418.

26         (b)  If a licensee agrees to reserve a bed for a

27  resident who is admitted to a medical facility, including, but

28  not limited to, a nursing home, health care facility, or

29  psychiatric facility, the resident or his or her responsible

30  party shall notify the licensee of any change in status that

31  would prevent the resident from returning to the facility.

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2004                                  SB 2110
    39-1850-04                                           See HB 45




 1  Until such notice is received, the agreed-upon daily rate may

 2  be charged by the licensee.

 3         (c)  The purpose of any advance payment and a refund

 4  policy for such payment, including any advance payment for

 5  housing, meals, or personal services, shall be covered in the

 6  contract.

 7         (4)  The contract shall state whether or not the

 8  facility is affiliated with any religious organization and, if

 9  so, which organization and its general responsibility to the

10  facility.

11         (5)  Neither the contract nor any provision thereof

12  relieves any licensee of any requirement or obligation imposed

13  upon it by this part or rules adopted under this part.

14         (6)  In lieu of the provisions of this section,

15  facilities certified under chapter 651 shall comply with the

16  requirements of s. 651.055.

17         (7)  Notwithstanding the provisions of this section,

18  facilities which consist of 60 or more apartments may require

19  refund policies and termination notices in accordance with the

20  provisions of part II of chapter 83, provided that the lease

21  is terminated automatically without financial penalty in the

22  event of a resident's death or relocation due to psychiatric

23  hospitalization or to medical reasons which necessitate

24  services or care beyond which the facility is licensed to

25  provide. The date of termination in such instances shall be

26  the date the unit is fully vacated. A lease may be substituted

27  for the contract if it meets the disclosure requirements of

28  this section. For the purpose of this section, the term

29  "apartment" means a room or set of rooms with a kitchen or

30  kitchenette and lavatory located within one or more buildings

31  containing other similar or like residential units.

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    Florida Senate - 2004                                  SB 2110
    39-1850-04                                           See HB 45




 1         (8)  The department may by rule clarify terms,

 2  establish procedures, clarify refund policies and contract

 3  provisions, and specify documentation as necessary to

 4  administer this section.

 5         Section 2.  This act shall take effect January 1, 2005.

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CODING: Words stricken are deletions; words underlined are additions.