| 1 | A bill to be entitled |
| 2 | An act relating to continuing care provider minimum liquid |
| 3 | reserve requirements; amending s. 651.035, F.S.; deleting |
| 4 | certain additional minimum debt service reserve |
| 5 | requirements for certain years; providing an effective |
| 6 | date. |
| 7 |
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| 8 | Be It Enacted by the Legislature of the State of Florida: |
| 9 |
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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 facility, |
| 17 | including taxes and insurance as recorded in the audited |
| 18 | financial statements required under s. 651.026. The amount shall |
| 19 | include any leasehold payments and all costs related to such |
| 20 | payments same. If principal payments are not due during the |
| 21 | fiscal year, the provider shall maintain in escrow as a minimum |
| 22 | liquid reserve an amount equal to interest payments due during |
| 23 | the next 12 months on any mortgage loan or other long-term |
| 24 | financing of the facility, including taxes and insurance. For |
| 25 | the purpose of this paragraph, the amount of property insurance |
| 26 | premiums used in calculating the debt service reserve shall not |
| 27 | exceed the amount paid in calendar year 1999. For providers |
| 28 | initially licensed during or after calendar year 1999, the |
| 29 | amount of property insurance premiums used in calculating the |
| 30 | debt service reserve shall not exceed the amount paid during the |
| 31 | first 12 months of facility operation. However, beginning |
| 32 | January 1, 2006, and each year thereafter, until the amount |
| 33 | maintained in escrow attributable to property insurance equals |
| 34 | 100 percent of the premium, the provider shall increase the |
| 35 | amount maintained in escrow for property insurance by 10 percent |
| 36 | of the premium paid that year. |
| 37 | Section 2. This act shall take effect July 1, 2006. |