Senate Bill sb1256

    Florida Senate - 2006                                  SB 1256

    By Senator Saunders





    37-950-06                                           See HB 377

  1                      A bill to be entitled

  2         An act relating to continuing care provider

  3         minimum liquid reserve requirements; amending

  4         s. 651.035, F.S.; deleting certain additional

  5         minimum debt service reserve requirements for

  6         certain years; providing an effective date.

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

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10         Section 1.  Paragraph (a) of subsection (2) of section

11  651.035, Florida Statutes, is amended to read:

12         651.035  Minimum liquid reserve requirements.--

13         (2)(a)  A provider shall maintain in escrow as a debt

14  service reserve an amount equal to the aggregate amount of all

15  principal and interest payments due during the fiscal year on

16  any mortgage loan or other long-term financing of the

17  facility, including taxes and insurance as recorded in the

18  audited financial statements required under s. 651.026. The

19  amount shall include any leasehold payments and all costs

20  related to such payments same. If principal payments are not

21  due during the fiscal year, the provider shall maintain in

22  escrow as a minimum liquid reserve an amount equal to interest

23  payments due during the next 12 months on any mortgage loan or

24  other long-term financing of the facility, including taxes and

25  insurance. For the purpose of this paragraph, the amount of

26  property insurance premiums used in calculating the debt

27  service reserve shall not exceed the amount paid in calendar

28  year 1999. For providers initially licensed during or after

29  calendar year 1999, the amount of property insurance premiums

30  used in calculating the debt service reserve shall not exceed

31  the amount paid during the first 12 months of facility

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






    Florida Senate - 2006                                  SB 1256
    37-950-06                                           See HB 377




 1  operation. However, beginning January 1, 2006, and each year

 2  thereafter, until the amount maintained in escrow attributable

 3  to property insurance equals 100 percent of the premium, the

 4  provider shall increase the amount maintained in escrow for

 5  property insurance by 10 percent of the premium paid that

 6  year.

 7         Section 2.  This act shall take effect July 1, 2006.

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