HB 0045 2004
1	A bill to be entitled
2	An act relating to nursing home contracts; amending s.
3	400.424, F.S.; requiring each nursing home facility to use
4	a standard contract approved by the Department of Elderly
5	Affairs for use at that facility; providing an effective
6	date.
7
8	Be It Enacted by the Legislature of the State of Florida:
9
10	Section 1. Section 400.424, Florida Statutes, is amended
11	to read:
12	400.424 Contracts.--
13	(1) The presence of each resident in a facility shall be
14	covered by a contract, executed at the time of admission or
15	prior thereto, between the licensee and the resident or his or
16	her designee or legal representative. Each party to the contract
17	shall be provided with a duplicate original thereof, and the
18	licensee shall keep on file in the facility all such contracts.
19	The licensee may not destroy or otherwise dispose of any such
20	contract until 5 years after its expiration.
21	(2) Each contract must contain express provisions
22	specifically setting forth the services and accommodations to be
23	provided by the facility; the rates or charges; provision for at
24	least 30 days' written notice of a rate increase; the rights,
25	duties, and obligations of the residents, other than those
26	specified in s. 400.428; and other matters that the parties deem
27	appropriate. Each nursing home facility must use a standard
28	contract approved for use at that facility by the department.
29	Whenever money is deposited or advanced by a resident in a
30	contract as security for performance of the contract agreement
31	or as advance rent for other than the next immediate rental
32	period:
33	(a) Such funds shall be deposited in a banking institution
34	in this state that is located, if possible, in the same
35	community in which the facility is located; shall be kept
36	separate from the funds and property of the facility; may not be
37	represented as part of the assets of the facility on financial
38	statements; and shall be used, or otherwise expended, only for
39	the account of the resident.
40	(b) The licensee shall, within 30 days of receipt of
41	advance rent or a security deposit, notify the resident or
42	residents in writing of the manner in which the licensee is
43	holding the advance rent or security deposit and state the name
44	and address of the depository where the moneys are being held.
45	The licensee shall notify residents of the facility's policy on
46	advance deposits.
47	(3)(a) The contract shall include a refund policy to be
48	implemented at the time of a resident's transfer, discharge, or
49	death. The refund policy shall provide that the resident or
50	responsible party is entitled to a prorated refund based on the
51	daily rate for any unused portion of payment beyond the
52	termination date after all charges, including the cost of
53	damages to the residential unit resulting from circumstances
54	other than normal use, have been paid to the licensee. For the
55	purpose of this paragraph, the termination date shall be the
56	date the unit is vacated by the resident and cleared of all
57	personal belongings. If the amount of belongings does not
58	preclude renting the unit, the facility may clear the unit and
59	charge the resident or his or her estate for moving and storing
60	the items at a rate equal to the actual cost to the facility,
61	not to exceed 20 percent of the regular rate for the unit,
62	provided that 14 days' advance written notification is given. If
63	the resident's possessions are not claimed within 45 days after
64	notification, the facility may dispose of them. The contract
65	shall also specify any other conditions under which claims will
66	be made against the refund due the resident. Except in the case
67	of death or a discharge due to medical reasons, the refunds
68	shall be computed in accordance with the notice of relocation
69	requirements specified in the contract. However, a resident may
70	not be required to provide the licensee with more than 30 days'
71	notice of termination. If after a contract is terminated, the
72	facility intends to make a claim against a refund due the
73	resident, the facility shall notify the resident or responsible
74	party in writing of the claim and shall provide said party with
75	a reasonable time period of no less than 14 calendar days to
76	respond. The facility shall provide a refund to the resident or
77	responsible party within 45 days after the transfer, discharge,
78	or death of the resident. The agency shall impose a fine upon a
79	facility that fails to comply with the refund provisions of the
80	paragraph, which fine shall be equal to three times the amount
81	due to the resident. One-half of the fine shall be remitted to
82	the resident or his or her estate, and the other half to the
83	Health Care Trust Fund to be used for the purpose specified in
84	s. 400.418.
85	(b) If a licensee agrees to reserve a bed for a resident
86	who is admitted to a medical facility, including, but not
87	limited to, a nursing home, health care facility, or psychiatric
88	facility, the resident or his or her responsible party shall
89	notify the licensee of any change in status that would prevent
90	the resident from returning to the facility. Until such notice
91	is received, the agreed-upon daily rate may be charged by the
92	licensee.
93	(c) The purpose of any advance payment and a refund policy
94	for such payment, including any advance payment for housing,
95	meals, or personal services, shall be covered in the contract.
96	(4) The contract shall state whether or not the facility
97	is affiliated with any religious organization and, if so, which
98	organization and its general responsibility to the facility.
99	(5) Neither the contract nor any provision thereof
100	relieves any licensee of any requirement or obligation imposed
101	upon it by this part or rules adopted under this part.
102	(6) In lieu of the provisions of this section, facilities
103	certified under chapter 651 shall comply with the requirements
104	of s. 651.055.
105	(7) Notwithstanding the provisions of this section,
106	facilities which consist of 60 or more apartments may require
107	refund policies and termination notices in accordance with the
108	provisions of part II of chapter 83, provided that the lease is
109	terminated automatically without financial penalty in the event
110	of a resident's death or relocation due to psychiatric
111	hospitalization or to medical reasons which necessitate services
112	or care beyond which the facility is licensed to provide. The
113	date of termination in such instances shall be the date the unit
114	is fully vacated. A lease may be substituted for the contract if
115	it meets the disclosure requirements of this section. For the
116	purpose of this section, the term "apartment" means a room or
117	set of rooms with a kitchen or kitchenette and lavatory located
118	within one or more buildings containing other similar or like
119	residential units.
120	(8) The department may by rule clarify terms, establish
121	procedures, clarify refund policies and contract provisions, and
122	specify documentation as necessary to administer this section.
123	Section 2. This act shall take effect January 1, 2005.