Florida Senate - 2018                        COMMITTEE AMENDMENT
       Bill No. SB 438
       
       
       
       
       
       
                                Ì872234ÂÎ872234                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  01/16/2018           .                                
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       The Committee on Banking and Insurance (Lee) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 651.011, Florida Statutes, is amended to
    6  read:
    7         651.011 Definitions.—As used in this chapter, the term:
    8         (1) “Actuarial opinion” means an opinion issued by an
    9  actuary in accordance with Actuarial Standards of Practice No. 3
   10  for Continuing Care Retirement Communities, Revised Edition,
   11  effective May 1, 2011, or any future amendments or replacements
   12  to this standard which may be adopted by the Actuarial Standards
   13  Board.
   14         (2) “Actuarial study” means an analysis prepared for an
   15  individual facility, or consolidated for multiple facilities,
   16  for either a certified provider, as of a current valuation date
   17  or the most recent fiscal year, or for an applicant, as of a
   18  projected future valuation date, which includes an actuary’s
   19  opinion as to whether such provider or applicant is in
   20  satisfactory actuarial balance in accordance with Actuarial
   21  Standards of Practice No. 3 for Continuing Care Retirement
   22  Communities, Revised Edition, effective May 1, 2011, or any
   23  future amendments or replacements to this standard which may be
   24  adopted by the Actuarial Standards Board.
   25         (3) “Actuary” means an individual who is qualified to sign
   26  an actuarial opinion in accordance with the American Academy of
   27  Actuaries’ qualification standards and who is a member in good
   28  standing of the American Academy of Actuaries.
   29         (4)(1) “Advertising” means the dissemination of written,
   30  visual, or electronic information by a provider, or any person
   31  affiliated with or controlled by a provider, to potential
   32  residents or their representatives for the purpose of inducing
   33  such persons to subscribe to or enter into a contract for
   34  continuing care or continuing care at-home.
   35         (5)(2) “Continuing care” or “care” means, pursuant to a
   36  contract, furnishing shelter and nursing care or personal
   37  services to a resident who resides in a facility, whether such
   38  nursing care or personal services are provided in the facility
   39  or in another setting designated in the contract for continuing
   40  care, by an individual not related by consanguinity or affinity
   41  to the resident, upon payment of an entrance fee. The terms may
   42  also be referred to as a “life plan.”
   43         (6)(3) “Continuing Care Advisory Council” or “advisory
   44  council” means the council established in s. 651.121.
   45         (7)(4) “Continuing care at-home” means, pursuant to a
   46  contract other than a contract described in subsection (5) (2),
   47  furnishing to a resident who resides outside the facility the
   48  right to future access to shelter and nursing care or personal
   49  services, whether such services are provided in the facility or
   50  in another setting designated in the contract, by an individual
   51  not related by consanguinity or affinity to the resident, upon
   52  payment of an entrance fee. The term may also be referred to as
   53  a “life plan at-home.”
   54         (8) “Corrective order” means an order issued by the office
   55  which specifies corrective actions the office has determined are
   56  required.
   57         (9)“Days cash on hand” means, for a facility or obligated
   58  group, the quotient obtained by dividing the value of paragraph
   59  (a) by the value of paragraph (b).
   60         (a)The sum of unrestricted cash, unrestricted short-term
   61  and long-term investments, provider restricted funds, and the
   62  minimum liquid reserve as of the reporting period.
   63         (b)Operating expenses less depreciation, amortization, and
   64  other noncash expenses and nonoperating losses, divided by 365.
   65  Operating expenses, depreciation, amortization, and other
   66  noncash expenses and nonoperating losses are each the sum of
   67  their respective values over the 12-month period immediately
   68  preceding the reporting date.
   69  
   70  With prior written approval of the office, a demand note or
   71  other parental guarantee may be considered a short-term or long
   72  term investment for the purposes of paragraph (a). However, the
   73  total of all demand notes issued by the parent may not, at any
   74  time, be more than the sum of unrestricted cash and unrestricted
   75  short-term and long-term investments held by the parent.
   76         (10) “Debt service coverage ratio” means, for a facility or
   77  obligated group, the quotient obtained by dividing the value of
   78  paragraph (a) by the value of paragraph (b).
   79         (a)The sum of total expenses less interest expense on the
   80  facility, depreciation, amortization, and other noncash expenses
   81  and nonoperating losses, subtracted from the sum of total
   82  revenues and gross entrance fees received less earned entrance
   83  fees and refunds paid. Expenses, interest expense on the
   84  facility, depreciation, amortization, other noncash expenses and
   85  nonoperating losses, revenues, noncash revenues, nonoperating
   86  gains, gross entrance fees, earned entrance fees, and refunds
   87  are each the sum of their respective values over the 12-month
   88  period immediately preceding the reporting date.
   89         (b)Total annual principal and interest expense due on the
   90  facility or obligated group over the 12-month period immediately
   91  preceding the reporting date. For purposes of this paragraph,
   92  principal excludes any balloon principal payment amounts, and
   93  interest expense due is the sum of the interest over the 12
   94  month period immediately preceding the reporting date which is
   95  reflected in the provider’s audit.
   96         (11)(5) “Entrance fee” means an initial or deferred payment
   97  of a sum of money or property made as full or partial payment
   98  for continuing care or continuing care at-home. An accommodation
   99  fee, admission fee, member fee, or other fee of similar form and
  100  application are considered to be an entrance fee.
  101         (12)(6) “Facility” means a place where continuing care is
  102  furnished and may include one or more physical plants on a
  103  primary or contiguous site or an immediately accessible site. As
  104  used in this subsection, the term “immediately accessible site”
  105  means a parcel of real property separated by a reasonable
  106  distance from the facility as measured along public
  107  thoroughfares, and the term “primary or contiguous site” means
  108  the real property contemplated in the feasibility study required
  109  by this chapter.
  110         (7) “Generally accepted accounting principles” means those
  111  accounting principles and practices adopted by the Financial
  112  Accounting Standards Board and the American Institute of
  113  Certified Public Accountants, including Statement of Position
  114  90-8 with respect to any full year to which the statement
  115  applies.
  116         (13) “Impaired” means that any of the following have
  117  occurred:
  118         (a) A provider has failed to maintain its minimum liquid
  119  reserve as required in s. 651.035, unless the provider has
  120  received prior written approval from the office for a withdrawal
  121  pursuant to s. 651.035(6) and is compliant with the approved
  122  payment schedule; or
  123         (b)Beginning July 1, 2019:
  124         1.For a provider with mortgage financing from a third
  125  party lender or public bond issue, the provider’s debt service
  126  coverage ratio is less than 1.00:1 and the provider’s days cash
  127  on hand is less than 90; or
  128         2.For a provider without mortgage financing from a third
  129  party lender or public bond issue, the provider’s days cash on
  130  hand is less than 90.
  131         (14)(8) “Insolvency” means the condition in which a the
  132  provider is unable to pay its obligations as they come due in
  133  the normal course of business.
  134         (15)(9) “Licensed” means that a the provider has obtained a
  135  certificate of authority from the office department.
  136         (16) “Manager” or “management company” means a person who
  137  administers the day-to-day business operations of a facility for
  138  a provider, subject to the policies, directives, and oversight
  139  of the provider.
  140         (17)(10) “Nursing care” means those services or acts
  141  rendered to a resident by an individual licensed or certified
  142  pursuant to chapter 464.
  143         (18) “Obligated group” means one or more entities that
  144  jointly agree to be bound by a financing structure containing
  145  security provisions and covenants applicable to the group. For
  146  purposes of this subsection, debt issued under such a financing
  147  structure must be a joint and several obligation of each member
  148  of the group.
  149         (19) “Occupancy” means the total number of occupied
  150  independent living, assisted living, and skilled nursing units
  151  in a facility divided by the total number of units in that
  152  facility, excluding units that are unavailable to market or
  153  reserve, as of the most recent annual report.
  154         (20)(11) “Personal services” has the same meaning as in s.
  155  429.02.
  156         (21)(12) “Provider” means the owner or operator, whether a
  157  natural person, partnership or other unincorporated association,
  158  however organized, trust, or corporation, of an institution,
  159  building, residence, or other place, whether operated for profit
  160  or not, which owner or operator provides continuing care or
  161  continuing care at-home for a fixed or variable fee, or for any
  162  other remuneration of any type, whether fixed or variable, for
  163  the period of care, payable in a lump sum or lump sum and
  164  monthly maintenance charges or in installments. The term does
  165  not apply to an entity that has existed and continuously
  166  operated a facility located on at least 63 acres in this state
  167  providing residential lodging to members and their spouses for
  168  at least 66 years on or before July 1, 1989, and has the
  169  residential capacity of 500 persons, is directly or indirectly
  170  owned or operated by a nationally recognized fraternal
  171  organization, is not open to the public, and accepts only its
  172  members and their spouses as residents.
  173         (22)(13) “Records” means all documents, correspondence, and
  174  the permanent financial, directory, and personnel information
  175  and data maintained by a provider pursuant to this chapter,
  176  regardless of the physical form, characteristics, or means of
  177  transmission.
  178         (23) “Regulatory action level event” means that any two of
  179  the following have occurred:
  180         (a)The provider’s debt service coverage ratio is less than
  181  the minimum ratio specified in the provider’s bond covenants or
  182  lending agreement for long-term financing, or, if the provider
  183  does not have a debt service coverage ratio required by its
  184  lending institution, the provider’s debt service coverage ratio
  185  is less than 1.20:1 as of the most recent annual report filed
  186  with the office. If the provider is a member of an obligated
  187  group having cross-collateralized debt and the obligated group
  188  has obtained an investment grade credit rating from a nationally
  189  recognized credit rating agency, as applicable, from Moody’s
  190  Investors Service, Standard & Poor’s, or Fitch Ratings, the
  191  obligated group’s debt service coverage ratio will be used as
  192  the provider’s debt service coverage ratio.
  193         (b)The provider’s days cash on hand is less than the
  194  minimum number of days cash on hand specified in the provider’s
  195  bond covenants or lending agreement for long-term financing. If
  196  the provider does not have a days cash on hand required by its
  197  lending institution, the days cash on hand may not be less than
  198  100 as of the most recent annual report filed with the office.
  199  If the provider is a member of an obligated group having cross
  200  collateralized debt and the obligated group has obtained an
  201  investment grade credit rating from a nationally recognized
  202  credit rating agency, as applicable, from Moody’s Investors
  203  Service, Standard & Poor’s, or Fitch Ratings, the days cash on
  204  hand of the obligated group will be used as the provider’s days
  205  cash on hand.
  206         (c) The occupancy at the provider’s facility is less than
  207  80 percent, averaged over the 12-month period immediately
  208  preceding the reporting date.
  209         (24)(14) “Resident” means a purchaser of, a nominee of, or
  210  a subscriber to a continuing care or continuing care at-home
  211  contract. Such contract does not give the resident a part
  212  ownership of the facility in which the resident is to reside,
  213  unless expressly provided in the contract.
  214         (25)(15) “Shelter” means an independent living unit, room,
  215  apartment, cottage, villa, personal care unit, nursing bed, or
  216  other living area within a facility set aside for the exclusive
  217  use of one or more identified residents.
  218         Section 2. Section 651.012, Florida Statutes, is amended to
  219  read:
  220         651.012 Exempted facility; written disclosure of
  221  exemption.—Any facility exempted under ss. 632.637(1)(e) and
  222  651.011(21) 651.011(12) must provide written disclosure of such
  223  exemption to each person admitted to the facility after October
  224  1, 1996. This disclosure must be written using language likely
  225  to be understood by the person and must briefly explain the
  226  exemption.
  227         Section 3. Subsection (2) of section 651.013, Florida
  228  Statutes, is amended to read:
  229         651.013 Chapter exclusive; applicability of other laws.—
  230         (2) In addition to other applicable provisions cited in
  231  this chapter, the office has the authority granted under ss.
  232  624.302 and 624.303, 624.307-624.312, 624.318 624.308-624.312,
  233  624.319(1)-(3), 624.320-624.321, 624.324, and 624.34, and
  234  624.422 of the Florida Insurance Code to regulate providers of
  235  continuing care and continuing care at-home.
  236         Section 4. Section 651.019, Florida Statutes, is amended to
  237  read:
  238         651.019 New financing, additional financing, or
  239  refinancing.—
  240         (1)(a)A provider shall provide notice to the residents’
  241  council of any new financing or refinancing at least 30 days
  242  before the closing date of the financing or refinancing
  243  transaction. The notice must include a general outline of the
  244  amount and terms of the financing or refinancing and the
  245  intended use of proceeds.
  246         (b) If the facility does not have a residents’ council, the
  247  facility must make available, in the same manner as other
  248  community notices, the information required by paragraph (a)
  249  After issuance of a certificate of authority, the provider shall
  250  submit to the office a general outline, including intended use
  251  of proceeds, with respect to any new financing, additional
  252  financing, or refinancing at least 30 days before the closing
  253  date of such financing transaction.
  254         (2) Within 30 days after the closing date of such financing
  255  or refinancing transaction, The provider shall furnish any
  256  information the office may reasonably request in connection with
  257  any new financing, additional financing, or refinancing,
  258  including, but not limited to, the financing agreements and any
  259  related documents, escrow or trust agreements, and statistical
  260  or financial data. the provider shall also submit to the office
  261  copies of executed financing documents and escrow or trust
  262  agreements prepared in support of such financing or refinancing
  263  transaction, and a copy of all documents required to be
  264  submitted to the residents’ council under paragraph (1)(a)
  265  within 30 days after the closing date.
  266         Section 5. Section 651.021, Florida Statutes, is amended to
  267  read:
  268         651.021 Certificate of authority required.—
  269         (1)A No person may not engage in the business of providing
  270  continuing care, issuing contracts for continuing care or
  271  continuing care at-home, or constructing a facility for the
  272  purpose of providing continuing care in this state without a
  273  certificate of authority obtained from the office as provided in
  274  this chapter. This section subsection does not prohibit the
  275  preparation of a construction site or construction of a model
  276  residence unit for marketing purposes, or both. The office may
  277  allow the purchase of an existing building for the purpose of
  278  providing continuing care if the office determines that the
  279  purchase is not being made to circumvent the prohibitions in
  280  this section.
  281         (2) Written approval must be obtained from the office
  282  before commencing construction or marketing for an expansion of
  283  a certificated facility equivalent to the addition of at least
  284  20 percent of existing units or 20 percent or more in the number
  285  of continuing care at-home contracts. This provision does not
  286  apply to construction for which a certificate of need from the
  287  Agency for Health Care Administration is required.
  288         (a) For providers that offer both continuing care and
  289  continuing care at-home, the 20 percent is based on the total of
  290  both existing units and existing contracts for continuing care
  291  at-home. For purposes of this subsection, an expansion includes
  292  increases in the number of constructed units or continuing care
  293  at-home contracts or a combination of both.
  294         (b) The application for such approval shall be on forms
  295  adopted by the commission and provided by the office. The
  296  application must include the feasibility study required by s.
  297  651.022(3) or s. 651.023(1)(b) and such other information as
  298  required by s. 651.023. If the expansion is only for continuing
  299  care at-home contracts, an actuarial study prepared by an
  300  independent actuary in accordance with standards adopted by the
  301  American Academy of Actuaries which presents the financial
  302  impact of the expansion may be substituted for the feasibility
  303  study.
  304         (c) In determining whether an expansion should be approved,
  305  the office shall use the criteria provided in ss. 651.022(6) and
  306  651.023(4).
  307         Section 6. Section 651.0215, Florida Statutes, is created
  308  to read:
  309         651.0215 Consolidated application for provisional
  310  certificate of authority and certificate of authority; required
  311  restrictions on use of entrance fees.—
  312         (1)For an applicant to qualify for a certificate of
  313  authority without first obtaining a provisional certificate of
  314  authority, the following conditions must be met:
  315         (a)All reservation deposits and entrance fees must be
  316  placed in escrow in accordance with s. 651.033. The applicant
  317  may not use or pledge any part of an initial entrance fee for
  318  the construction or purchase of the facility or as security for
  319  long-term financing.
  320         (b)The reservation deposit may not exceed $5,000 upon a
  321  resident’s selection of a unit and must be refundable at any
  322  time before the resident takes occupancy of the selected unit.
  323         (c)The resident contract must state that collection of the
  324  balance of the entrance fee is to occur after the resident is
  325  notified that his or her selected unit is available for
  326  occupancy and on or before the occupancy date.
  327         (2)The consolidated application must be on a form
  328  prescribed by the commission and must contain all of the
  329  following information:
  330         (a)All of the information required under s 651.022(2).
  331         (b)A feasibility study prepared by an independent
  332  consultant which contains all of the information required by s.
  333  651.022(3) and financial forecasts or projections prepared in
  334  accordance with standards adopted by the American Institute of
  335  Certified Public Accountants or in accordance with standards for
  336  feasibility studies for continuing care retirement communities
  337  adopted by the Actuarial Standards Board.
  338         1.The feasibility study must take into account project
  339  costs, actual marketing results to date and marketing
  340  projections, resident fees and charges, competition, resident
  341  contract provisions, and other factors that affect the
  342  feasibility of operating the facility.
  343         2.If the feasibility study is prepared by an independent
  344  certified public accountant, it must contain an examination
  345  report, or a compilation report acceptable to the office,
  346  containing a financial forecast or projections for the first 5
  347  years of operations which take into account an actuary’s
  348  mortality and morbidity assumptions as the study relates to
  349  turnover, rates, fees, and charges. If the study is prepared by
  350  an independent consulting actuary, it must contain mortality and
  351  morbidity assumptions as it relates to turnover, rates, fees,
  352  and charges and an actuary’s signed opinion that the project as
  353  proposed is feasible and that the study has been prepared in
  354  accordance with Actuarial Standards of Practice No. 3 for
  355  Continuing Care Retirement Communities, Revised Edition,
  356  effective May 1, 2011.
  357         (c) Documents evidencing that commitments have been secured
  358  for construction financing and long-term financing or that a
  359  documented plan acceptable to the office has been adopted by the
  360  applicant for long-term financing.
  361         (d) Documents evidencing that all conditions of the lender
  362  have been satisfied to activate the commitment to disburse
  363  funds, other than the obtaining of the certificate of authority,
  364  the completion of construction, or the closing of the purchase
  365  of realty or buildings for the facility.
  366         (e) Documents evidencing that the aggregate amount of
  367  entrance fees received by or pledged to the applicant, plus
  368  anticipated proceeds from any long-term financing commitment and
  369  funds from all other sources in the actual possession of the
  370  applicant, equal at least 100 percent of the aggregate cost of
  371  constructing or purchasing, equipping, and furnishing the
  372  facility plus 100 percent of the anticipated startup losses of
  373  the facility.
  374         (f) A complete audited financial report of the applicant,
  375  prepared by an independent certified public accountant in
  376  accordance with generally accepted accounting principles, as of
  377  the date the applicant commenced business operations or for the
  378  fiscal year that ended immediately preceding the date of
  379  application, whichever is later, and complete unaudited
  380  quarterly financial statements attested to by the applicant
  381  after the date of the last audit.
  382         (g) Documents evidencing that the applicant will be able to
  383  comply with s. 651.035.
  384         (h) Such other reasonable data, financial statements, and
  385  pertinent information as the commission or office may require
  386  with respect to the applicant or the facility to determine the
  387  financial status of the facility and the management capabilities
  388  of its managers and owners.
  389         (3) If an applicant has or proposes to have more than one
  390  facility offering continuing care or continuing care at-home, a
  391  separate certificate of authority must be obtained for each
  392  facility.
  393         (4) Within 45 days after receipt of the information
  394  required under subsection (2), the office shall examine the
  395  information and notify the applicant in writing, specifically
  396  requesting any additional information that the office is
  397  authorized to require. An application is deemed complete when
  398  the office receives all requested information and the applicant
  399  corrects any error or omission of which the applicant was timely
  400  notified or when the time for such notification has expired.
  401  Within 15 days after receipt of all of the requested additional
  402  information, the office shall notify the applicant in writing
  403  that all of the requested information has been received and that
  404  the application is deemed to be complete as of the date of the
  405  notice. Failure to notify the applicant in writing within the
  406  15-day period constitutes acknowledgment by the office that it
  407  has received all requested additional information, and the
  408  application is deemed complete for purposes of review on the
  409  date the applicant files all of the required additional
  410  information.
  411         (5) Within 45 days after an application is deemed complete
  412  as set forth in subsection (4) and upon completion of the
  413  remaining requirements of this section, the office shall
  414  complete its review and issue or deny a certificate of authority
  415  to the applicant. The period for review by the office may not be
  416  tolled if the office requests additional information and the
  417  applicant provides the requested information within 5 business
  418  days. If a certificate of authority is denied, the office must
  419  notify the applicant in writing, citing the specific failures to
  420  satisfy this chapter, and the applicant is entitled to an
  421  administrative hearing pursuant to chapter 120.
  422         (6)The office shall issue a certificate of authority upon
  423  determining that the applicant meets all requirements of law and
  424  has submitted all of the information required under this
  425  section, that all escrow requirements have been satisfied, and
  426  that the fees prescribed in s. 651.015(2) have been paid.
  427         (7) The issuance of a certificate of authority entitles the
  428  applicant to begin construction and collect reservation deposits
  429  and entrance fees from prospective residents. The reservation
  430  contract must state the cancellation policy and the terms of the
  431  continuing care contract to be entered into. All or any part of
  432  an entrance fee or reservation deposit collected must be placed
  433  in an escrow account or on deposit with the department pursuant
  434  to s. 651.033.
  435         (8) The provider is entitled to secure release of the
  436  moneys held in escrow within 7 days after the office receives an
  437  affidavit from the provider, along with appropriate
  438  documentation to verify, and notification is provided to the
  439  escrow agent by certified mail, that the following conditions
  440  have been satisfied:
  441         (a) A certificate of occupancy has been issued.
  442         (b) Payment in full has been received for at least 70
  443  percent of the total units of a phase or of the total of the
  444  combined phases constructed. If a provider offering continuing
  445  care at-home is applying for a release of escrowed entrance
  446  fees, the same minimum requirement must be met for the
  447  continuing care and continuing care at-home contracts
  448  independently of each other.
  449         (c) The provider has evidence of sufficient funds to meet
  450  the requirements of s. 651.035, which may include funds
  451  deposited in the initial entrance fee account.
  452         (d) Documents evidencing the intended application of the
  453  proceeds upon release and documents evidencing that the entrance
  454  fees, when released, will be applied as represented to the
  455  office.
  456  
  457  Notwithstanding chapter 120, a person, other than the provider,
  458  the escrow agent, and the office, may not have a substantial
  459  interest in any decision by the office regarding the release of
  460  escrow funds in any proceeding under chapter 120 or this
  461  chapter.
  462         (9) The office may not approve any application that
  463  includes in the plan of financing any encumbrance of the
  464  operating reserves or renewal and replacement reserves required
  465  by this chapter.
  466         (10)The office may not issue a certificate of authority to
  467  a facility that does not have a component that is to be licensed
  468  pursuant to part II of chapter 400 or part I of chapter 429, or
  469  that does not offer personal services or nursing services
  470  through written contractual agreement. A written contractual
  471  agreement must be disclosed in the contract for continuing care
  472  or continuing care at-home and is subject to s. 651.1151.
  473         Section 7. Subsection (2) and present subsections (6) and
  474  (8) of section 651.022, Florida Statutes, are amended, present
  475  subsections (3) through (8) of that section are redesignated as
  476  subsections (4) through (9), respectively, and a new subsection
  477  (3) is added to that section, to read:
  478         651.022 Provisional certificate of authority; application.—
  479         (2) The application for a provisional certificate of
  480  authority must shall be on a form prescribed by the commission
  481  and must shall contain the following information:
  482         (a) If the applicant or provider is a corporation, a copy
  483  of the articles of incorporation and bylaws; if the applicant or
  484  provider is a partnership or other unincorporated association, a
  485  copy of the partnership agreement, articles of association, or
  486  other membership agreement; and, if the applicant or provider is
  487  a trust, a copy of the trust agreement or instrument.
  488         (b) The full names, residences, and business addresses of:
  489         1. The proprietor, if the applicant or provider is an
  490  individual.
  491         2. Every partner or member, if the applicant or provider is
  492  a partnership or other unincorporated association, however
  493  organized, having fewer than 50 partners or members, together
  494  with the business name and address of the partnership or other
  495  organization.
  496         3. The principal partners or members, if the applicant or
  497  provider is a partnership or other unincorporated association,
  498  however organized, having 50 or more partners or members,
  499  together with the business name and business address of the
  500  partnership or other organization. If such unincorporated
  501  organization has officers and a board of directors, the full
  502  name and business address of each officer and director may be
  503  set forth in lieu of the full name and business address of its
  504  principal members.
  505         4. The corporation and each officer and director thereof,
  506  if the applicant or provider is a corporation.
  507         5. Every trustee and officer, if the applicant or provider
  508  is a trust.
  509         6. The manager, whether an individual, corporation,
  510  partnership, or association.
  511         7. Any stockholder holding at least a 10 percent interest
  512  in the operations of the facility in which the care is to be
  513  offered.
  514         8. Any person whose name is required to be provided in the
  515  application under this paragraph and who owns any interest in or
  516  receives any remuneration from, directly or indirectly, any
  517  professional service firm, association, trust, partnership, or
  518  corporation providing goods, leases, or services to the facility
  519  for which the application is made, with a real or anticipated
  520  value of $10,000 or more, and the name and address of the
  521  professional service firm, association, trust, partnership, or
  522  corporation in which such interest is held. The applicant shall
  523  describe such goods, leases, or services and the probable cost
  524  to the facility or provider and shall describe why such goods,
  525  leases, or services should not be purchased from an independent
  526  entity.
  527         9. Any person, corporation, partnership, association, or
  528  trust owning land or property leased to the facility, along with
  529  a copy of the lease agreement.
  530         10. Any affiliated parent or subsidiary corporation or
  531  partnership.
  532         (c)1. Evidence that the applicant is reputable and of
  533  responsible character. If the applicant is a firm, association,
  534  organization, partnership, business trust, corporation, or
  535  company, the form must shall require evidence that the members
  536  or shareholders are reputable and of responsible character, and
  537  the person in charge of providing care under a certificate of
  538  authority are shall likewise be required to produce evidence of
  539  being reputable and of responsible character.
  540         2. Evidence satisfactory to the office of the ability of
  541  the applicant to comply with the provisions of this chapter and
  542  with rules adopted by the commission pursuant to this chapter.
  543         3. A statement of whether a person identified in the
  544  application for a provisional certificate of authority or the
  545  administrator or manager of the facility, if such person has
  546  been designated, or any such person living in the same location:
  547         a. Has been convicted of a felony or has pleaded nolo
  548  contendere to a felony charge, or has been held liable or has
  549  been enjoined in a civil action by final judgment, if the felony
  550  or civil action involved fraud, embezzlement, fraudulent
  551  conversion, or misappropriation of property.
  552         b. Is subject to a currently effective injunctive or
  553  restrictive order or federal or state administrative order
  554  relating to business activity or health care as a result of an
  555  action brought by a public agency or department, including,
  556  without limitation, an action affecting a license under chapter
  557  400 or chapter 429.
  558  
  559  The statement must shall set forth the court or agency, the date
  560  of conviction or judgment, and the penalty imposed or damages
  561  assessed, or the date, nature, and issuer of the order. Before
  562  determining whether a provisional certificate of authority is to
  563  be issued, the office may make an inquiry to determine the
  564  accuracy of the information submitted pursuant to subparagraphs
  565  1., 2., and 3. 1. and 2.
  566         (d) The contracts for continuing care and continuing care
  567  at-home to be entered into between the provider and residents
  568  which meet the minimum requirements of s. 651.055 or s. 651.057
  569  and which include a statement describing the procedures required
  570  by law relating to the release of escrowed entrance fees. Such
  571  statement may be furnished through an addendum.
  572         (e) Any advertisement or other written material proposed to
  573  be used in the solicitation of residents.
  574         (f) Such other reasonable data, financial statements, and
  575  pertinent information as the commission or office may reasonably
  576  require with respect to the provider or the facility, including
  577  the most recent audited financial report statements of
  578  comparable facilities currently or previously owned, managed, or
  579  developed by the applicant or its principal, to assist in
  580  determining the financial viability of the project and the
  581  management capabilities of its managers and owners.
  582         (g) The forms of the residency contracts, reservation
  583  contracts, escrow agreements, and wait list contracts, if
  584  applicable, which are proposed to be used by the provider in the
  585  furnishing of care. The office shall approve contracts and
  586  escrow agreements that comply with ss. 651.023(1)(c), 651.033,
  587  651.055, and 651.057. Thereafter, no other form of contract or
  588  agreement may be used by the provider until it has been
  589  submitted to the office and approved.
  590  
  591  If any material change occurs in the facts set forth in an
  592  application filed with the office pursuant to this subsection,
  593  an amendment setting forth such change must be filed with the
  594  office within 10 business days after the applicant becomes aware
  595  of such change, and a copy of the amendment must be sent by
  596  registered mail to the principal office of the facility and to
  597  the principal office of the controlling company.
  598         (3) In addition to the information required in subsection
  599  (2), an applicant for a provisional certificate of authority
  600  must submit a feasibility study with appropriate financial,
  601  marketing, and actuarial assumptions for the first 5 years of
  602  operations. The feasibility study must include at least the
  603  following information:
  604         (a)A description of the proposed facility, including the
  605  location, size, anticipated completion date, and the proposed
  606  construction program.
  607         (b) Identification and an evaluation of the primary and, if
  608  appropriate, the secondary market areas of the facility and the
  609  projected unit sales per month.
  610         (c)Projected revenues, including anticipated entrance
  611  fees; monthly service fees; nursing care revenues, if
  612  applicable; and all other sources of revenue.
  613         (d)Projected expenses, including staffing requirements and
  614  salaries; cost of property, plant, and equipment, including
  615  depreciation expense; interest expense; marketing expense; and
  616  other operating expenses.
  617         (e)A projected balance sheet of the applicant.
  618         (f)Expectations of the financial condition of the project,
  619  including the projected cash flow, and an estimate of the funds
  620  anticipated to be necessary to cover startup losses.
  621         (g)The inflation factor, if any, assumed in the
  622  feasibility study for the proposed facility and how and where it
  623  is applied.
  624         (h)Project costs and the total amount of debt financing
  625  required, marketing projections, resident fees and charges, the
  626  competition, resident contract provisions, and other factors
  627  that affect the feasibility of the facility.
  628         (i)Appropriate population projections, including morbidity
  629  and mortality assumptions.
  630         (j)The name of the person who prepared the feasibility
  631  study and the experience of such person in preparing similar
  632  studies or otherwise consulting in the field of continuing care.
  633  The preparer of the feasibility study may be the provider or a
  634  contracted third party.
  635         (k)Any other information that the applicant deems relevant
  636  and appropriate to enable the office to make a more informed
  637  determination.
  638         (7)(6) Within 45 days after the date an application is
  639  deemed complete as set forth in paragraph (6)(b) (5)(b), the
  640  office shall complete its review and issue a provisional
  641  certificate of authority to the applicant based upon its review
  642  and a determination that the application meets all requirements
  643  of law, that the feasibility study was based on sufficient data
  644  and reasonable assumptions, and that the applicant will be able
  645  to provide continuing care or continuing care at-home as
  646  proposed and meet all financial and contractual obligations
  647  related to its operations, including the financial requirements
  648  of this chapter. The period for review by the office may not be
  649  tolled if the office requests additional information and the
  650  applicant provides the requested information within 5 business
  651  days. If the application is denied, the office shall notify the
  652  applicant in writing, citing the specific failures to meet the
  653  provisions of this chapter. Such denial entitles the applicant
  654  to a hearing pursuant to chapter 120.
  655         (9)(8) The office may shall not approve any application
  656  that which includes in the plan of financing any encumbrance of
  657  the operating reserves or renewal and replacement reserves
  658  required by this chapter.
  659         Section 8. Subsections (1) through (4), paragraph (b) of
  660  subsection (5), and subsections (6), (8), and (9) of section
  661  651.023, Florida Statutes, are amended to read:
  662         651.023 Certificate of authority; application.—
  663         (1) After issuance of a provisional certificate of
  664  authority, the office shall issue to the holder of such
  665  provisional certificate a certificate of authority if the holder
  666  of the provisional certificate provides the office with the
  667  following information:
  668         (a) Any material change in status with respect to the
  669  information required to be filed under s. 651.022(2) in the
  670  application for the provisional certificate.
  671         (b) A feasibility study prepared by an independent
  672  consultant which contains all of the information required by s.
  673  651.022(4) s. 651.022(3) and financial forecasts or projections
  674  prepared in accordance with standards adopted by the American
  675  Institute of Certified Public Accountants or in accordance with
  676  standards for feasibility studies or continuing care retirement
  677  communities adopted by the Actuarial Standards Board.
  678         1. The study must also contain an independent evaluation
  679  and examination opinion, or a comparable opinion acceptable to
  680  the office, by the consultant who prepared the study, of the
  681  underlying assumptions used as a basis for the forecasts or
  682  projections in the study and that the assumptions are reasonable
  683  and proper and the project as proposed is feasible.
  684         1.2. The study must take into account project costs, actual
  685  marketing results to date and marketing projections, resident
  686  fees and charges, competition, resident contract provisions, and
  687  any other factors which affect the feasibility of operating the
  688  facility.
  689         2.3. If the study is prepared by an independent certified
  690  public accountant, it must contain an examination opinion, or a
  691  compilation report acceptable to the office, containing a
  692  financial forecast or projections for the first 5 3 years of
  693  operations which take into account an actuary’s mortality and
  694  morbidity assumptions as the study relates to turnover, rates,
  695  fees, and charges and financial projections having a compilation
  696  opinion for the next 3 years. If the study is prepared by an
  697  independent consulting actuary, it must contain mortality and
  698  morbidity assumptions as the study relates to turnover, rates,
  699  fees, and charges, data and an actuary’s signed opinion that the
  700  project as proposed is feasible and that the study has been
  701  prepared in accordance with standards adopted by the American
  702  Academy of Actuaries.
  703         (c) Subject to subsection (4), a provider may submit an
  704  application for a certificate of authority and any required
  705  exhibits upon submission of documents evidencing proof that the
  706  project has a minimum of 30 percent of the units reserved for
  707  which the provider is charging an entrance fee. This does not
  708  apply to an application for a certificate of authority for the
  709  acquisition of a facility for which a certificate of authority
  710  was issued before October 1, 1983, to a provider who
  711  subsequently becomes a debtor in a case under the United States
  712  Bankruptcy Code, 11 U.S.C. ss. 101 et seq., or to a provider for
  713  which the department has been appointed receiver pursuant to
  714  part II of chapter 631.
  715         (d) Documents evidencing Proof that commitments have been
  716  secured for both construction financing and long-term financing
  717  or a documented plan acceptable to the office has been adopted
  718  by the applicant for long-term financing.
  719         (e) Documents evidencing Proof that all conditions of the
  720  lender have been satisfied to activate the commitment to
  721  disburse funds other than the obtaining of the certificate of
  722  authority, the completion of construction, or the closing of the
  723  purchase of realty or buildings for the facility.
  724         (f) Documents evidencing Proof that the aggregate amount of
  725  entrance fees received by or pledged to the applicant, plus
  726  anticipated proceeds from any long-term financing commitment,
  727  plus funds from all other sources in the actual possession of
  728  the applicant, equal at least 100 percent of the aggregate cost
  729  of constructing or purchasing, equipping, and furnishing the
  730  facility plus 100 percent of the anticipated startup losses of
  731  the facility.
  732         (g) A complete audited financial report statements of the
  733  applicant, prepared by an independent certified public
  734  accountant in accordance with generally accepted accounting
  735  principles, as of the date the applicant commenced business
  736  operations or for the fiscal year that ended immediately
  737  preceding the date of application, whichever is later, and
  738  complete unaudited quarterly financial statements attested to by
  739  the applicant after the date of the last audit.
  740         (h) Documents evidencing Proof that the applicant has
  741  complied with the escrow requirements of subsection (5) or
  742  subsection (7) and will be able to comply with s. 651.035.
  743         (i) Such other reasonable data, financial statements, and
  744  pertinent information as the commission or office may require
  745  with respect to the applicant or the facility, to determine the
  746  financial status of the facility and the management capabilities
  747  of its managers and owners.
  748  
  749  If any material change occurs in the facts set forth in an
  750  application filed with the office pursuant to this subsection,
  751  an amendment setting forth such change must be filed with the
  752  office within 10 business days, and a copy of the amendment must
  753  be sent by registered mail to the principal office of the
  754  facility and to the principal office of the controlling company.
  755         (2) Within 30 days after receipt of the information
  756  required under subsection (1), the office shall examine such
  757  information and notify the provider in writing, specifically
  758  requesting any additional information the office is permitted by
  759  law to require. Within 15 days after receipt of all of the
  760  requested additional information, the office shall notify the
  761  provider in writing that all of the requested information has
  762  been received, and the application is deemed to be complete as
  763  of the date of the notice. Failure to notify the provider in
  764  writing within the 15-day period constitutes acknowledgment by
  765  the office that it has received all requested additional
  766  information, and the application is deemed complete for purposes
  767  of review on the date of filing all of the required additional
  768  information Within 15 days after receipt of all of the requested
  769  additional information, the office shall notify the provider in
  770  writing that all of the requested information has been received
  771  and the application is deemed to be complete as of the date of
  772  the notice. Failure to notify the applicant in writing within
  773  the 15-day period constitutes acknowledgment by the office that
  774  it has received all requested additional information, and the
  775  application shall be deemed complete for purposes of review on
  776  the date of filing all of the required additional information.
  777         (3) Within 45 days after an application is deemed complete
  778  as set forth in subsection (2), and upon completion of the
  779  remaining requirements of this section, the office shall
  780  complete its review and issue or deny a certificate of authority
  781  to the holder of a provisional certificate of authority. If a
  782  certificate of authority is denied, the office must notify the
  783  holder of the provisional certificate in writing, citing the
  784  specific failures to satisfy the provisions of this chapter. The
  785  period for review by the office may not be tolled if the office
  786  requests additional information and the applicant provides the
  787  requested information within 5 business days. If denied, the
  788  holder of the provisional certificate is entitled to an
  789  administrative hearing pursuant to chapter 120.
  790         (4) The office shall issue a certificate of authority upon
  791  determining that the applicant meets all requirements of law and
  792  has submitted all of the information required by this section,
  793  that all escrow requirements have been satisfied, and that the
  794  fees prescribed in s. 651.015(2) have been paid.
  795         (a) A Notwithstanding satisfaction of the 30-percent
  796  minimum reservation requirement of paragraph (1)(c), no
  797  certificate of authority may not shall be issued until
  798  documentation evidencing that the project has a minimum of 50
  799  percent of the units reserved for which the provider is charging
  800  an entrance fee, and proof is provided to the office. If a
  801  provider offering continuing care at-home is applying for a
  802  certificate of authority or approval of an expansion pursuant to
  803  s. 651.021(2), the same minimum reservation requirements must be
  804  met for the continuing care and continuing care at-home
  805  contracts, independently of each other.
  806         (b) In order for a unit to be considered reserved under
  807  this section, the provider must collect a minimum deposit of the
  808  lesser of $40,000 or 10 percent of the then-current entrance fee
  809  for that unit, and may assess a forfeiture penalty of 2 percent
  810  of the entrance fee due to termination of the reservation
  811  contract after 30 days for any reason other than the death or
  812  serious illness of the resident, the failure of the provider to
  813  meet its obligations under the reservation contract, or other
  814  circumstances beyond the control of the resident that equitably
  815  entitle the resident to a refund of the resident’s deposit. The
  816  reservation contract must state the cancellation policy and the
  817  terms of the continuing care or continuing care at-home contract
  818  to be entered into.
  819         (5) Up to 25 percent of the moneys paid for all or any part
  820  of an initial entrance fee may be included or pledged for the
  821  construction or purchase of the facility or as security for
  822  long-term financing. The term “initial entrance fee” means the
  823  total entrance fee charged by the facility to the first occupant
  824  of a unit.
  825         (b) For an expansion as provided in s. 651.0246 s.
  826  651.021(2), a minimum of 75 percent of the moneys paid for all
  827  or any part of an initial entrance fee collected for continuing
  828  care and 50 percent of the moneys paid for all or any part of an
  829  initial fee collected for continuing care at-home shall be
  830  placed in an escrow account or on deposit with the department as
  831  prescribed in s. 651.033.
  832         (6) The provider is entitled to secure release of the
  833  moneys held in escrow within 7 days after receipt by the office
  834  of an affidavit from the provider, along with appropriate copies
  835  to verify, and notification to the escrow agent by certified
  836  mail, that the following conditions have been satisfied:
  837         (a) A certificate of occupancy has been issued.
  838         (b) Payment in full has been received for at least 70
  839  percent of the total units of a phase or of the total of the
  840  combined phases constructed. If a provider offering continuing
  841  care at-home is applying for a release of escrowed entrance
  842  fees, the same minimum requirement must be met for the
  843  continuing care and continuing care at-home contracts,
  844  independently of each other.
  845         (c) The consultant who prepared the feasibility study
  846  required by this section or a substitute approved by the office
  847  certifies within 12 months before the date of filing for office
  848  approval that there has been no material adverse change in
  849  status with regard to the feasibility study. If a material
  850  adverse change exists at the time of submission, sufficient
  851  information acceptable to the office and the feasibility
  852  consultant must be submitted which remedies the adverse
  853  condition.
  854         (c)(d)Documents evidencing Proof that commitments have
  855  been secured or a documented plan adopted by the applicant has
  856  been approved by the office for long-term financing.
  857         (d)(e)Documents evidencing Proof that the provider has
  858  sufficient funds to meet the requirements of s. 651.035, which
  859  may include funds deposited in the initial entrance fee account.
  860         (e)(f)Documents evidencing Proof as to the intended
  861  application of the proceeds upon release and documentation proof
  862  that the entrance fees when released will be applied as
  863  represented to the office.
  864         (f) If any material change occurred in the facts set forth
  865  in the application filed with the office pursuant to subsection
  866  (1), the applicant timely filed the amendment setting forth such
  867  change with the office and sent copies of the amendment to the
  868  principal office of the facility and to the principal office of
  869  the controlling company as required under that subsection.
  870  
  871  Notwithstanding chapter 120, no person, other than the provider,
  872  the escrow agent, and the office, may have a substantial
  873  interest in any office decision regarding release of escrow
  874  funds in any proceedings under chapter 120 or this chapter
  875  regarding release of escrow funds.
  876         (8) The timeframes provided under s. 651.022(5) and (6)
  877  apply to applications submitted under s. 651.021(2). The office
  878  may not issue a certificate of authority to a facility that does
  879  not have a component that is to be licensed pursuant to part II
  880  of chapter 400 or to part I of chapter 429 or that does not
  881  offer personal services or nursing services through written
  882  contractual agreement. A written contractual agreement must be
  883  disclosed in the contract for continuing care or continuing care
  884  at-home and is subject to the provisions of s. 651.1151,
  885  relating to administrative, vendor, and management contracts.
  886         (9) The office may not approve an application that includes
  887  in the plan of financing any encumbrance of the operating
  888  reserves or renewal and replacement reserves required by this
  889  chapter.
  890         Section 9. Section 651.024, Florida Statutes, is amended to
  891  read:
  892         651.024 Acquisition.—
  893         (1) A person who seeks to assume the role of general
  894  partner of a provider or otherwise assume ownership or
  895  possession of, or control over, 10 percent or more of a
  896  provider’s assets, based on the balance sheet from the most
  897  recent financial audit filed with the office, is issued a
  898  certificate of authority to operate a continuing care facility
  899  or a provisional certificate of authority shall be subject to
  900  the provisions of s. 628.4615 and is not required to make
  901  filings pursuant to s. 651.022, s. 651.023, or s. 651.0245.
  902         (2) A person who seeks to acquire and become the provider
  903  for a facility is subject to s. 651.0245 and is not required to
  904  make filings pursuant to ss. 628.4615, 651.022, and 651.023.
  905         (3) A person may rebut a presumption of control by filing a
  906  disclaimer of control with the office on a form prescribed by
  907  the commission. The disclaimer must fully disclose all material
  908  relationships and bases for affiliation between the person and
  909  the provider or facility, as well as the basis for disclaiming
  910  the affiliation. In lieu of such form, a person or acquiring
  911  party may file with the office a copy of a Schedule 13G filed
  912  with the Securities and Exchange Commission pursuant to Rule
  913  13d-1(b) or (c), 17 C.F.R. s. 240.13d-1, under the Securities
  914  Exchange Act of 1934, as amended. After a disclaimer has been
  915  filed, the provider or facility is relieved of any duty to
  916  register or report under this section which may arise out of the
  917  provider’s or facility’s relationship with the person, unless
  918  the office disallows the disclaimer.
  919         (4) As used in this section, the term:
  920         (a) “Controlling company” means any corporation, trust, or
  921  association that directly or indirectly owns 25 percent or more
  922  of the voting securities of one or more facilities that are
  923  stock corporations, or 25 percent or more of the ownership
  924  interest of one or more facilities that are not stock
  925  corporations.
  926         (b) “Natural person” means an individual.
  927         (c) “Person” includes a natural person, corporation,
  928  association, trust, general partnership, limited partnership,
  929  joint venture, firm, proprietorship, or any other entity that
  930  may hold a license or certificate as a facility.
  931         (5) In addition to the facility or the controlling company,
  932  the office has standing to petition a circuit court as described
  933  in s. 628.4615(9).
  934         Section 10. Section 651.0245, Florida Statutes, is created
  935  to read:
  936         651.0245 Application for the simultaneous acquisition of a
  937  facility and issuance of a certificate of authority.—
  938         (1) Except with the prior written approval of the office, a
  939  person may not, individually or in conjunction with any
  940  affiliated person of such person, directly or indirectly acquire
  941  a facility operating under a subsisting certificate of authority
  942  and engage in the business of providing continuing care.
  943         (2) An applicant seeking simultaneous acquisition of a
  944  facility and issuance of a certificate of authority must:
  945         (a) Comply with the notice requirements of s.
  946  628.4615(2)(a); and
  947         (b) File an application in the form required by the office
  948  and cooperate with the office’s review of the application.
  949         (3) The commission shall adopt by rule application
  950  requirements equivalent to those described in ss. 628.4615(4)
  951  and (5), 651.022(2)(a)-(g), and 651.023(1)(b). The office shall
  952  review the application and issue an approval or disapproval of
  953  the filing in accordance with ss. 628.4615(6)(a) and (c), (7)
  954  (10), and (14); 651.022(9); and 651.023(1)(b).
  955         (4) As used in this section, the term:
  956         (a) “Controlling company” means any corporation, trust, or
  957  association that directly or indirectly owns 25 percent or more
  958  of the voting securities of one or more facilities that are
  959  stock corporations, or 25 percent or more of the ownership
  960  interest of one or more facilities that are not stock
  961  corporations.
  962         (b) “Natural person” means an individual.
  963         (c) “Person” includes a natural person, corporation,
  964  association, trust, general partnership, limited partnership,
  965  joint venture, firm, proprietorship, or any other entity that
  966  may hold a license or certificate as a facility.
  967         (5)In addition to the facility or the controlling company,
  968  the office has standing to petition a circuit court as described
  969  in s. 628.4615(9).
  970         (6) A person may rebut a presumption of control by filing a
  971  disclaimer of control with the office on a form prescribed by
  972  the commission. The disclaimer must fully disclose all material
  973  relationships and bases for affiliation between the person and
  974  the provider or facility, as well as the basis for disclaiming
  975  the affiliation. In lieu of such form, a person or acquiring
  976  party may file with the office a copy of a Schedule 13G filed
  977  with the Securities and Exchange Commission pursuant to Rule
  978  13d-1(b) or (c), 17 C.F.R. s. 240.13d-1, under the Securities
  979  Exchange Act of 1934, as amended. After a disclaimer has been
  980  filed, the provider or facility is relieved of any duty to
  981  register or report under this section which may arise out of the
  982  provider’s or facility’s relationship with the person, unless
  983  the office disallows the disclaimer.
  984         (7) The commission may adopt, amend, or repeal rules as
  985  necessary to administer this section.
  986         Section 11. Section 651.0246, Florida Statutes, is created
  987  to read:
  988         651.0246 Expansions.—
  989         (1)(a)A provider must obtain written approval from the
  990  office before commencing construction or marketing for an
  991  expansion of a certificated facility equivalent to the addition
  992  of at least 20 percent of existing units or 20 percent or more
  993  in the number of continuing care at-home contracts. If the
  994  provider has exceeded the current statewide median for days cash
  995  on hand, debt service coverage ratio, and total campus occupancy
  996  for two consecutive annual reporting periods, the provider is
  997  automatically granted approval to expand the total number of
  998  existing units by up to 35 percent upon submitting a letter to
  999  the office indicating the total number of planned units in the
 1000  expansion, the proposed sources and uses of funds, and an
 1001  attestation that the provider understands and pledges to comply
 1002  with all minimum liquid reserve and escrow account requirements.
 1003  As used in this section, the term “existing units” means the sum
 1004  of the total number of independent living units and assisted
 1005  living units identified in the most recent annual report filed
 1006  with the office pursuant to s. 651.026. For purposes of this
 1007  section, the statewide median for days cash on hand, debt
 1008  service coverage ratio, and total campus occupancy is the median
 1009  calculated in the most recent annual report submitted by the
 1010  office to the Continuing Care Advisory Council pursuant to s.
 1011  651.121(8). This section does not apply to construction for
 1012  which a certificate of need from the Agency for Health Care
 1013  Administration is required.
 1014         (b) The application for such approval must be on forms
 1015  adopted by the commission and provided by the office. The
 1016  application must include the feasibility study required by this
 1017  section and such other information as reasonably requested by
 1018  the office. If the expansion is only for continuing care at-home
 1019  contracts, an actuarial study prepared by an independent actuary
 1020  in accordance with standards adopted by the American Academy of
 1021  Actuaries which presents the financial impact of the expansion
 1022  may be substituted for the feasibility study.
 1023         (c) In determining whether an expansion should be approved,
 1024  the office shall consider:
 1025         1. Whether the application meets all requirements of law;
 1026         2. Whether the feasibility study was based on sufficient
 1027  data and reasonable assumptions; and
 1028         3.Whether the applicant will be able to provide continuing
 1029  care or continuing care at-home as proposed and meet all
 1030  financial obligations related to its operations, including the
 1031  financial requirements of this chapter.
 1032  
 1033  If the application is denied, the office must notify the
 1034  applicant in writing, citing the specific failures to meet the
 1035  provisions of this chapter. A denial entitles the applicant to a
 1036  hearing pursuant to chapter 120.
 1037         (2) A provider applying for expansion of a certificated
 1038  facility must submit all of the following:
 1039         (a) A feasibility study prepared by an independent
 1040  certified public accountant. The feasibility study must include
 1041  at least the following information:
 1042         1. A description of the facility and proposed expansion,
 1043  including the location, size, anticipated completion date, and
 1044  the proposed construction program.
 1045         2. An identification and evaluation of the primary and, if
 1046  applicable, secondary market areas of the facility and the
 1047  projected unit sales per month.
 1048         3. Projected revenues, including anticipated entrance fees;
 1049  monthly service fees; nursing care rates, if applicable; and all
 1050  other sources of revenue.
 1051         4. Projected expenses, including for staffing requirements
 1052  and salaries; the cost of property, plant, and equipment,
 1053  including depreciation expense; interest expense; marketing
 1054  expense; and other operating expenses.
 1055         5. A projected balance sheet of the applicant.
 1056         6. Expectations of the financial condition of the project,
 1057  including the projected cash flow and an estimate of the funds
 1058  anticipated to be necessary to cover startup losses.
 1059         7. The inflation factor, if any, assumed in the study for
 1060  the proposed expansion and how and where it is applied.
 1061         8. Project costs, the total amount of debt financing
 1062  required, marketing projections, resident fees and charges, the
 1063  competition, resident contract provisions, and other factors
 1064  that affect the feasibility of the facility.
 1065         9.Appropriate population projections, including morbidity
 1066  and mortality assumptions.
 1067         10. The name of the person who prepared the feasibility
 1068  study and his or her experience in preparing similar studies or
 1069  otherwise consulting in the field of continuing care.
 1070         11. Financial forecasts or projections prepared in
 1071  accordance with standards adopted by the American Institute of
 1072  Certified Public Accountants or in accordance with standards for
 1073  feasibility studies for continuing care retirement communities
 1074  adopted by the Actuarial Standards Board.
 1075         12. An independent evaluation and examination opinion for
 1076  the first 5 years of operations, or a comparable opinion
 1077  acceptable to the office, by the consultant who prepared the
 1078  study, of the underlying assumptions used as a basis for the
 1079  forecasts or projections in the study and that the assumptions
 1080  are reasonable and proper and the project as proposed is
 1081  feasible.
 1082         13. Any other information that the provider deems relevant
 1083  and appropriate to provide to enable the office to make a more
 1084  informed determination.
 1085         (b) Such other reasonable data, financial statements, and
 1086  pertinent information as the commission or office may require
 1087  with respect to the applicant or the facility to determine the
 1088  financial status of the facility and the management capabilities
 1089  of its managers and owners.
 1090         (3) A minimum of 75 percent of the moneys paid for all or
 1091  any part of an initial entrance fee or reservation deposit
 1092  collected for continuing care and 50 percent of the moneys paid
 1093  for all or any part of an initial fee collected for continuing
 1094  care at-home must be placed in an escrow account or on deposit
 1095  with the department as prescribed in s. 651.033. Up to 25
 1096  percent of the moneys paid for all or any part of an initial
 1097  entrance fee or reservation deposit may be included or pledged
 1098  for the construction or purchase of the facility or as security
 1099  for long-term financing. As used in this section, the term
 1100  “initial entrance fee” means the total entrance fee charged by
 1101  the facility to the first occupant of a unit.
 1102  
 1103  Entrance fees and reservation deposits collected for expansions
 1104  must be held pursuant to the escrow requirements of s.
 1105  651.023(5) and (6).
 1106         (4) The provider is entitled to secure release of the
 1107  moneys held in escrow within 7 days after receipt by the office
 1108  of an affidavit from the provider, along with appropriate copies
 1109  to verify, and notification to the escrow agent by certified
 1110  mail that the following conditions have been satisfied:
 1111         (a) A certificate of occupancy has been issued.
 1112         (b) Payment in full has been received for at least 50
 1113  percent of the total units of a phase or of the total of the
 1114  combined phases constructed. If a provider offering continuing
 1115  care at-home is applying for a release of escrowed entrance
 1116  fees, the same minimum requirement must be met for the
 1117  continuing care and continuing care at-home contracts
 1118  independently of each other.
 1119         (c) Documents evidencing that commitments have been secured
 1120  or that a documented plan adopted by the applicant has been
 1121  approved by the office for long-term financing.
 1122         (d) Documents evidencing that the provider has sufficient
 1123  funds to meet the requirements of s. 651.035, which may include
 1124  funds deposited in the initial entrance fee account.
 1125         (e) Documents evidencing the intended application of the
 1126  proceeds upon release and documentation that the entrance fees,
 1127  when released, will be applied as represented to the office.
 1128  
 1129  Notwithstanding chapter 120, only the provider, the escrow
 1130  agent, and the office have a substantial interest in any office
 1131  decision regarding release of escrow funds in any proceedings
 1132  under chapter 120 or this chapter.
 1133         (5)(a) Within 30 days after receipt of an application for
 1134  expansion, the office shall examine the application and shall
 1135  notify the applicant in writing, specifically setting forth and
 1136  specifically requesting any additional information that the
 1137  office is authorized to require. Within 15 days after the office
 1138  receives all the requested additional information, the office
 1139  shall notify the applicant in writing that the requested
 1140  information has been received and that the application is deemed
 1141  to be complete as of the date of the notice. If the office
 1142  chooses not to notify the applicant within the 15-day period,
 1143  then the application is deemed complete for purposes of review
 1144  on the date the applicant files the additional requested
 1145  information. If the application submitted is determined by the
 1146  office to be substantially incomplete so as to require
 1147  substantial additional information, including biographical
 1148  information, the office may return the application to the
 1149  applicant with a written notice that the application as received
 1150  is substantially incomplete and therefore unacceptable for
 1151  filing without further action required by the office. Any filing
 1152  fee received must be refunded to the applicant.
 1153         (b) An application is deemed complete upon the office
 1154  receiving all requested information and the applicant correcting
 1155  any error or omission of which the applicant was timely notified
 1156  or when the time for such notification has expired. The office
 1157  shall notify the applicant in writing of the date on which the
 1158  application was deemed complete.
 1159         (6) Within 45 days after the date on which an application
 1160  is deemed complete as set forth in paragraph (5)(b), the office
 1161  shall complete its review and, based upon its review, approve an
 1162  expansion by the applicant and issue a determination that the
 1163  application meets all requirements of law, that the feasibility
 1164  study was based on sufficient data and reasonable assumptions,
 1165  and that the applicant will be able to provide continuing care
 1166  or continuing care at-home as proposed and meet all financial
 1167  and contractual obligations related to its operations, including
 1168  the financial requirements of this chapter. The period for
 1169  review by the office may not be tolled if the office requests
 1170  additional information and the applicant provides information
 1171  acceptable to the office within 5 business days. If the
 1172  application is denied, the office must notify the applicant in
 1173  writing, citing the specific failures to meet the provisions of
 1174  this chapter. The denial entitles the applicant to a hearing
 1175  pursuant to chapter 120.
 1176         Section 12. Paragraph (c) of subsection (2) and subsection
 1177  (3) of section 651.026, Florida Statutes, are amended,
 1178  subsection (10) is added to that section, and paragraph (a) of
 1179  subsection (2) of that section is republished, to read:
 1180         651.026 Annual reports.—
 1181         (2) The annual report shall be in such form as the
 1182  commission prescribes and shall contain at least the following:
 1183         (a) Any change in status with respect to the information
 1184  required to be filed under s. 651.022(2).
 1185         (c) The following financial information:
 1186         1. A detailed listing of the assets maintained in the
 1187  liquid reserve as required under s. 651.035 and in accordance
 1188  with part II of chapter 625;
 1189         2. A schedule giving additional information relating to
 1190  property, plant, and equipment having an original cost of at
 1191  least $25,000, so as to show in reasonable detail with respect
 1192  to each separate facility original costs, accumulated
 1193  depreciation, net book value, appraised value or insurable value
 1194  and date thereof, insurance coverage, encumbrances, and net
 1195  equity of appraised or insured value over encumbrances. Any
 1196  property not used in continuing care must be shown separately
 1197  from property used in continuing care;
 1198         3. The level of participation in Medicare or Medicaid
 1199  programs, or both;
 1200         4. A statement of all fees required of residents,
 1201  including, but not limited to, a statement of the entrance fee
 1202  charged, the monthly service charges, the proposed application
 1203  of the proceeds of the entrance fee by the provider, and the
 1204  plan by which the amount of the entrance fee is determined if
 1205  the entrance fee is not the same in all cases; and
 1206         5. Any change or increase in fees if the provider changes
 1207  the scope of, or the rates for, care or services, regardless of
 1208  whether the change involves the basic rate or only those
 1209  services available at additional costs to the resident.
 1210         6. If the provider has more than one certificated facility,
 1211  or has operations that are not licensed under this chapter, it
 1212  shall submit a balance sheet, statement of income and expenses,
 1213  statement of equity or fund balances, and statement of cash
 1214  flows for each facility licensed under this chapter as
 1215  supplemental information to the audited financial report
 1216  statements required under paragraph (b).
 1217         7. The management’s calculation of the provider’s debt
 1218  service coverage ratio and days cash on hand for the current
 1219  reporting period, and an opinion from an independent certified
 1220  public accountant of the management’s calculations.
 1221         (3) The commission shall adopt by rule additional
 1222  meaningful measures of assessing the financial viability of a
 1223  provider. The rule may include the following factors:
 1224         (a) Debt service coverage ratios.
 1225         (b) Current ratios.
 1226         (c) Adjusted current ratios.
 1227         (d) Cash flows.
 1228         (e) Occupancy rates.
 1229         (f) Other measures, ratios, or trends.
 1230         (g) Other factors as may be appropriate.
 1231         (10) Within 90 days after the conclusion of each annual
 1232  reporting period, the office shall publish an industry
 1233  benchmarking report that contains all of the following:
 1234         (a) The median days cash on hand for all providers.
 1235         (b) The median debt service coverage ratio for all
 1236  providers.
 1237         (c) The median occupancy rate for all providers by setting,
 1238  including independent living, assisted living, skilled nursing,
 1239  and the entire campus.
 1240         Section 13. Section 651.0261, Florida Statutes, is amended
 1241  to read:
 1242         651.0261 Quarterly and monthly statements.—
 1243         (1) Within 45 days after the end of each fiscal quarter,
 1244  each provider shall file a quarterly unaudited financial
 1245  statement of the provider or of the facility in the form
 1246  prescribed by rule of the commission and a detailed listing of
 1247  the assets maintained in the liquid reserve as required under s.
 1248  651.035. This requirement may be waived by the office upon
 1249  written request from a provider that is accredited or that has
 1250  obtained an investment grade credit rating from a United States
 1251  credit rating agency as authorized under s. 651.028. The last
 1252  quarterly statement for a fiscal year is not required if a
 1253  provider does not have pending a regulatory action level event
 1254  or corrective action plan.
 1255         (2) If the office finds, pursuant to rules of the
 1256  commission, that such information is needed to properly monitor
 1257  the financial condition of a provider or facility or is
 1258  otherwise needed to protect the public interest, the office may
 1259  require the provider to file:
 1260         (a) Within 25 days after the end of each month, a monthly
 1261  unaudited financial statement of the provider or of the facility
 1262  in the form prescribed by the commission by rule and a detailed
 1263  listing of the assets maintained in the liquid reserve as
 1264  required under s. 651.035, within 45 days after the end of each
 1265  fiscal quarter, a quarterly unaudited financial statement of the
 1266  provider or of the facility in the form prescribed by the
 1267  commission by rule. The commission may by rule require all or
 1268  part of the statements or filings required under this section to
 1269  be submitted by electronic means in a computer-readable form
 1270  compatible with the electronic data format specified by the
 1271  commission.
 1272         (b) Such other data, financial statements, and pertinent
 1273  information as the commission or office may reasonably require
 1274  with respect to the provider or the facility, or its directors,
 1275  trustees, members, branches, subsidiaries, or affiliates, to
 1276  determine the financial status of the provider or of the
 1277  facility and the management capabilities of its managers and
 1278  owners.
 1279         (3) A filing under subsection (2) may be required if any of
 1280  the following apply:
 1281         (a) The facility has been operational for less than 2
 1282  years.
 1283         (b) The provider is:
 1284         1. Subject to administrative supervision proceedings;
 1285         2. Subject to a corrective action plan resulting from a
 1286  regulatory action level event for up to 2 years after the
 1287  factors that caused the regulatory action level event have been
 1288  corrected; or
 1289         3. Subject to delinquency or receivership proceedings.
 1290         (c) The provider or facility displays a declining financial
 1291  position.
 1292         (d)A change of ownership of the provider or facility has
 1293  occurred within the previous 2 years.
 1294         (e)The facility is deemed to be impaired.
 1295         (4) The commission may by rule require all or part of the
 1296  statements or filings required under this section to be
 1297  submitted by electronic means in a computer-readable form
 1298  compatible with an electronic data format specified by the
 1299  commission.
 1300         Section 14. Section 651.028, Florida Statutes, is amended
 1301  to read:
 1302         651.028 Accredited or certain credit-rated facilities.—If a
 1303  provider or obligated group is accredited without stipulations
 1304  or conditions by a process found by the office to be acceptable
 1305  and substantially equivalent to the provisions of this chapter
 1306  or has obtained an investment grade credit rating from a
 1307  nationally recognized credit rating agency, as applicable, from
 1308  Moody’s Investors Service, Standard & Poor’s, or Fitch Ratings,
 1309  the office may, pursuant to rule of the commission, waive any
 1310  requirements of this chapter with respect to the provider if the
 1311  office finds that such waivers are not inconsistent with the
 1312  security protections intended by this chapter.
 1313         Section 15. Paragraphs (a), (c), and (d) of subsection (1)
 1314  and subsections (2) and (3) of section 651.033, Florida
 1315  Statutes, are amended, and subsection (6) is added to that
 1316  section, to read:
 1317         651.033 Escrow accounts.—
 1318         (1) When funds are required to be deposited in an escrow
 1319  account pursuant to s. 651.022, s. 651.023, s. 651.035, or s.
 1320  651.055:
 1321         (a) The escrow account must shall be established in a
 1322  Florida bank, Florida savings and loan association, or Florida
 1323  trust company, or a national bank that is chartered and
 1324  supervised by the Office of the Comptroller of the Currency
 1325  within the United States Department of the Treasury and that has
 1326  either a branch or a license to operate in this state which is
 1327  acceptable to the office, or such funds must be deposited on
 1328  deposit with the department; and the funds deposited therein
 1329  shall be kept and maintained in an account separate and apart
 1330  from the provider’s business accounts.
 1331         (c) Any agreement establishing an escrow account required
 1332  under the provisions of this chapter is shall be subject to
 1333  approval by the office. The agreement must shall be in writing
 1334  and shall contain, in addition to any other provisions required
 1335  by law, a provision whereby the escrow agent agrees to abide by
 1336  the duties imposed by paragraphs (b) and (e), (3)(a), (3)(b),
 1337  and (5)(a) and subsection (6) under this section.
 1338         (d) All funds deposited in an escrow account, if invested,
 1339  must shall be invested in cash, cash equivalents, mutual funds,
 1340  equities, or investment grade bonds as set forth in part II of
 1341  chapter 625; however, such investment may not diminish the funds
 1342  held in escrow below the amount required by this chapter. Funds
 1343  deposited in an escrow account are not subject to charges by the
 1344  escrow agent except escrow agent fees associated with
 1345  administering the accounts, or subject to any liens, judgments,
 1346  garnishments, creditor’s claims, or other encumbrances against
 1347  the provider or facility except as provided in s. 651.035(1).
 1348         (2) Notwithstanding s. 651.035(7), In addition, the escrow
 1349  agreement shall provide that the escrow agent or another person
 1350  designated to act in the escrow agent’s place and the provider,
 1351  except as otherwise provided in s. 651.035, shall notify the
 1352  office in writing at least 10 days before the withdrawal of any
 1353  portion of any funds required to be escrowed under the
 1354  provisions of s. 651.035. However, in the event of an emergency
 1355  and upon petition by the provider, the office may waive the 10
 1356  day notification period and allow a withdrawal of up to 10
 1357  percent of the required minimum liquid reserve. The office shall
 1358  have 3 working days to deny the petition for the emergency 10
 1359  percent withdrawal. If the office fails to deny the petition
 1360  within 3 working days, the petition is shall be deemed to have
 1361  been granted by the office. For purposes the purpose of this
 1362  section, “working day” means each day that is not a Saturday,
 1363  Sunday, or legal holiday as defined by Florida law. Also, for
 1364  purposes the purpose of this section, the day the petition is
 1365  received by the office is shall not be counted as one of the 3
 1366  days.
 1367         (3) In addition, When entrance fees are required to be
 1368  deposited in an escrow account pursuant to s. 651.022, s.
 1369  651.023, or s. 651.055:
 1370         (a) The provider shall deliver to the resident a written
 1371  receipt. The receipt must show the payor’s name and address, the
 1372  date, the price of the care contract, and the amount of money
 1373  paid. A copy of each receipt, together with the funds, must
 1374  shall be deposited with the escrow agent or as provided in
 1375  paragraph (c). The escrow agent must shall release such funds to
 1376  the provider 7 days after the date of receipt of the funds by
 1377  the escrow agent if the provider, operating under a certificate
 1378  of authority issued by the office, has met the requirements of
 1379  s. 651.023(6). However, if the resident rescinds the contract
 1380  within the 7-day period, the escrow agent must shall release the
 1381  escrowed fees to the resident.
 1382         (b) At the request of an individual resident of a facility,
 1383  the escrow agent shall issue a statement indicating the status
 1384  of the resident’s portion of the escrow account.
 1385         (c) At the request of an individual resident of a facility,
 1386  the provider may hold the check for the 7-day period and may
 1387  shall not deposit it during this time period. If the resident
 1388  rescinds the contract within the 7-day period, the check must
 1389  shall be immediately returned to the resident. Upon the
 1390  expiration of the 7 days, the provider shall deposit the check.
 1391         (d) A provider may assess a nonrefundable fee, which is
 1392  separate from the entrance fee, for processing a prospective
 1393  resident’s application for continuing care or continuing care
 1394  at-home.
 1395         (6) Except as described in paragraph (3)(a), the escrow
 1396  agent may not release or otherwise allow the transfer of funds
 1397  without the written approval of the office, unless the
 1398  withdrawal is from funds in excess of the amounts required by
 1399  ss. 651.022, 651.023, 651.035, and 651.055.
 1400         Section 16. Section 651.034, Florida Statutes, is created
 1401  to read:
 1402         651.034 Financial and operating requirements for
 1403  providers.—
 1404         (1)(a) If a regulatory action level event occurs, the
 1405  office must:
 1406         1. Require the provider to prepare and submit a corrective
 1407  action plan or, if applicable, a revised corrective action plan;
 1408         2. Perform an examination pursuant to s. 651.105 or an
 1409  analysis, as the office considers necessary, of the assets,
 1410  liabilities, and operations of the provider, including a review
 1411  of the corrective action plan or the revised corrective action
 1412  plan; and
 1413         3. After the examination or analysis, issue a corrective
 1414  order specifying any corrective actions that the office
 1415  determines are required.
 1416         (b) In determining corrective actions, the office shall
 1417  consider any factor relevant to the provider based upon the
 1418  office’s examination or analysis of the assets, liabilities, and
 1419  operations of the provider. The provider must submit the
 1420  corrective action plan or the revised corrective action plan
 1421  within 30 days after the occurrence of the regulatory action
 1422  level event. The office shall review and approve or disapprove
 1423  the corrective action plan within 15 business days.
 1424         (c) The office may use members of the Continuing Care
 1425  Advisory Council, individually or as a group, or may retain
 1426  actuaries, investment experts, and other consultants to review a
 1427  provider’s corrective action plan or revised corrective action
 1428  plan, examine or analyze the assets, liabilities, and operations
 1429  of a provider, and formulate the corrective order with respect
 1430  to the provider. The fees, costs, and expenses relating to
 1431  consultants must be borne by the affected provider.
 1432         (2) If an impairment occurs, the office must take any
 1433  action necessary to place the provider under regulatory control,
 1434  including any remedy available under chapter 631. An impairment
 1435  is sufficient grounds for the department to be appointed as
 1436  receiver as provided in chapter 631. Notwithstanding s. 631.011,
 1437  impairment of a provider, for purposes of s. 631.051, is defined
 1438  according to the term “impaired” under s. 651.011. The office
 1439  may forego taking action for up to 180 days after the impairment
 1440  if the office finds there is a reasonable expectation that the
 1441  impairment may be eliminated within the 180-day period.
 1442         (3) There is no liability on the part of, and a cause of
 1443  action may not arise against, the commission, department, or
 1444  office, or their employees or agents, for any action they take
 1445  in the performance of their powers and duties under this
 1446  section.
 1447         (4) The office shall transmit any notice that may result in
 1448  regulatory action by registered mail, certified mail, or any
 1449  other method of transmission which includes documentation of
 1450  receipt by the provider. Notice is effective when the provider
 1451  receives it.
 1452         (5) This section is supplemental to the other laws of this
 1453  state and does not preclude or limit any power or duty of the
 1454  department or office under those laws or under the rules adopted
 1455  pursuant to those laws.
 1456         (6) The office may exempt a provider from subsection (1) or
 1457  subsection (2) until stabilized occupancy is reached or until
 1458  the time projected to achieve stabilized occupancy as reported
 1459  in the last feasibility study required by the office as part of
 1460  an application filing under s. 651.023, s. 651.024, s. 651.0245,
 1461  or s. 651.0246 has elapsed, but for no longer than 5 years from
 1462  the date of issuance of the certificate of occupancy.
 1463         (7) The commission may adopt rules to administer this
 1464  section, including, but not limited to, rules regarding
 1465  corrective action plans, revised corrective action plans,
 1466  corrective orders, and procedures to be followed in the event of
 1467  a regulatory action level event or an impairment.
 1468         Section 17. Paragraphs (a), (b), and (c) of subsection (1)
 1469  of section 651.035, Florida Statutes, are amended, and
 1470  subsections (7) through (10) are added to that section, to read:
 1471         651.035 Minimum liquid reserve requirements.—
 1472         (1) A provider shall maintain in escrow a minimum liquid
 1473  reserve consisting of the following reserves, as applicable:
 1474         (a) Each provider shall maintain in escrow as a debt
 1475  service reserve the aggregate amount of all principal and
 1476  interest payments due during the fiscal year on any mortgage
 1477  loan or other long-term financing of the facility, including
 1478  property taxes as recorded in the audited financial report
 1479  statements required under s. 651.026. The amount must include
 1480  any leasehold payments and all costs related to such payments.
 1481  If principal payments are not due during the fiscal year, the
 1482  provider must shall maintain in escrow as a minimum liquid
 1483  reserve an amount equal to interest payments due during the next
 1484  12 months on any mortgage loan or other long-term financing of
 1485  the facility, including property taxes. If a provider does not
 1486  have a mortgage loan or other financing on the facility, the
 1487  provider must deposit monthly in escrow as a minimum liquid
 1488  reserve an amount equal to one-twelfth of the annual property
 1489  tax liability as indicated in the most recent tax notice
 1490  provided pursuant to s. 197.322(3).
 1491         (b) A provider that has outstanding indebtedness that
 1492  requires a debt service reserve to be held in escrow pursuant to
 1493  a trust indenture or mortgage lien on the facility and for which
 1494  the debt service reserve may only be used to pay principal and
 1495  interest payments on the debt that the debtor is obligated to
 1496  pay, and which may include property taxes and insurance, may
 1497  include such debt service reserve in computing the minimum
 1498  liquid reserve needed to satisfy this subsection if the provider
 1499  furnishes to the office a copy of the agreement under which such
 1500  debt service is held, together with a statement of the amount
 1501  being held in escrow for the debt service reserve, certified by
 1502  the lender or trustee and the provider to be correct. The
 1503  trustee shall provide the office with any information concerning
 1504  the debt service reserve account upon request of the provider or
 1505  the office. Such separate debt service reserves, if any, are not
 1506  subject to the transfer provisions set forth in subsection (8).
 1507         (c) Each provider shall maintain in escrow an operating
 1508  reserve equal to 30 percent of the total operating expenses
 1509  projected in the feasibility study required by s. 651.023 for
 1510  the first 12 months of operation. Thereafter, each provider
 1511  shall maintain in escrow an operating reserve equal to 15
 1512  percent of the total operating expenses in the annual report
 1513  filed pursuant to s. 651.026. If a provider has been in
 1514  operation for more than 12 months, the total annual operating
 1515  expenses must shall be determined by averaging the total annual
 1516  operating expenses reported to the office by the number of
 1517  annual reports filed with the office within the preceding 3-year
 1518  period subject to adjustment if there is a change in the number
 1519  of facilities owned. For purposes of this subsection, total
 1520  annual operating expenses include all expenses of the facility
 1521  except: depreciation and amortization; interest and property
 1522  taxes included in paragraph (a); extraordinary expenses that are
 1523  adequately explained and documented in accordance with generally
 1524  accepted accounting principles; liability insurance premiums in
 1525  excess of those paid in calendar year 1999; and changes in the
 1526  obligation to provide future services to current residents. For
 1527  providers initially licensed during or after calendar year 1999,
 1528  liability insurance must shall be included in the total
 1529  operating expenses in an amount not to exceed the premium paid
 1530  during the first 12 months of facility operation. Beginning
 1531  January 1, 1993, The operating reserves required under this
 1532  subsection must shall be in an unencumbered account held in
 1533  escrow for the benefit of the residents. Such funds may not be
 1534  encumbered or subject to any liens or charges by the escrow
 1535  agent or judgments, garnishments, or creditors’ claims against
 1536  the provider or facility. However, if a facility had a lien,
 1537  mortgage, trust indenture, or similar debt instrument in place
 1538  before January 1, 1993, which encumbered all or any part of the
 1539  reserves required by this subsection and such funds were used to
 1540  meet the requirements of this subsection, then such arrangement
 1541  may be continued, unless a refinancing or acquisition has
 1542  occurred, and the provider is shall be in compliance with this
 1543  subsection.
 1544         (7)(a) A provider may withdraw funds held in escrow without
 1545  the approval of the office if the amount held in escrow exceeds
 1546  the requirements of this section and if the withdrawal will not
 1547  affect compliance with this section.
 1548         (b)1. For all other proposed withdrawals, in order to
 1549  receive the consent of the office, the provider must file
 1550  documentation showing why the withdrawal is necessary for the
 1551  continued operation of the facility and such additional
 1552  information as the office reasonably requires.
 1553         2. The office shall notify the provider when the filing is
 1554  deemed complete. If the provider has complied with all prior
 1555  requests for information, the filing is deemed complete after 30
 1556  days without communication from the office.
 1557         3. Within 30 days after the date a file is deemed complete,
 1558  the office shall provide the provider with written notice of its
 1559  approval or disapproval of the request. The office may
 1560  disapprove any request to withdraw such funds if it determines
 1561  that the withdrawal is not in the best interest of the
 1562  residents.
 1563         (8) The office may order the immediate transfer of up to
 1564  100 percent of the funds held in the minimum liquid reserve to
 1565  the custody of the department pursuant to part III of chapter
 1566  625 if the office finds that the provider is impaired or
 1567  insolvent. The office may order such a transfer regardless of
 1568  whether the office has suspended or revoked, or intends to
 1569  suspend or revoke, the certificate of authority of the provider.
 1570         (9)Each facility shall file with the office annually,
 1571  together with the annual report required by s. 651.026, a
 1572  calculation of its minimum liquid reserve, determined in
 1573  accordance with this section, on a form prescribed by the
 1574  commission. The minimum liquid reserve must be maintained at the
 1575  calculated level within 60 days after filing the annual report.
 1576         (10)If the balance of the minimum liquid reserve is below
 1577  the required amount at the end of any month, the provider must
 1578  fund the shortfall in the reserve within 10 business days after
 1579  the beginning of the following month. If the balance of the
 1580  minimum liquid reserve is not restored to the required amount
 1581  within such time, the provider will be deemed out of compliance
 1582  with this section.
 1583         Section 18. Section 651.043, Florida Statutes, is created
 1584  to read:
 1585         651.043 Approval of change in management.—
 1586         (1) As used in this section, the term “management” means:
 1587         (a) A manager or management company; or
 1588         (b) A person who exercises or who has the ability to
 1589  exercise effective control of the provider or organization, or
 1590  who influences or has the ability to influence the transaction
 1591  of the business of the provider.
 1592         (2) A contract for management entered into after July 1,
 1593  2018, must be in writing and include a provision that the
 1594  contract will be canceled upon issuance of an order by the
 1595  office pursuant to this section without the application of any
 1596  cancellation fee or penalty. If a provider contracts with a
 1597  management company, a separate written contract is not required
 1598  for the individual manager employed by the management company to
 1599  oversee a facility.
 1600         (3) A provider must notify the office, in writing or
 1601  electronically, of any change in management within 10 business
 1602  days. For each new management appointment, the provider must
 1603  submit the information required by s. 651.022(2) and a copy of
 1604  the written management contract, if applicable.
 1605         (4) For a provider that is deemed to be impaired or that
 1606  has a regulatory action level event pending, the office may
 1607  disapprove new management and order the provider to remove the
 1608  new management after reviewing the information required in
 1609  subsection (3).
 1610         (5)For a provider other than that specified in subsection
 1611  (4), the office may disapprove new management and order the
 1612  provider to remove the new management after receiving the
 1613  required information in subsection (3) if the office:
 1614         (a) Finds that the new management is incompetent or
 1615  untrustworthy;
 1616         (b) Finds that the new management is so lacking in relevant
 1617  managerial experience as to make the proposed operation
 1618  hazardous to the residents or potential residents;
 1619         (c) Finds that the new management is so lacking in relevant
 1620  experience, ability, and standing as to jeopardize the
 1621  reasonable promise of successful operation; or
 1622         (d) Has good reason to believe that the new management is
 1623  affiliated directly or indirectly through ownership, control, or
 1624  business relations with any person or persons whose business
 1625  operations are or have been marked by manipulation of assets or
 1626  accounts or by bad faith, to the detriment of residents,
 1627  stockholders, investors, creditors, or the public.
 1628  
 1629  The office shall complete its review as required under
 1630  subsections (4) and (5) and, if applicable, issue notice of
 1631  disapproval of the new management within 15 business days after
 1632  the filing is deemed complete. A filing is deemed complete upon
 1633  the office’s receipt of all requested information and the
 1634  provider’s correction of any error or omission for which the
 1635  provider was timely notified. If the office does not issue
 1636  notice of disapproval of the new management within 15 business
 1637  days after the filing is deemed complete, then the new
 1638  management is deemed approved.
 1639         (6) Management disapproved by the office must be removed
 1640  within 30 days after receipt by the provider of notice of such
 1641  disapproval.
 1642         (7) The office may revoke, suspend, or take other
 1643  administrative action against the certificate of authority of
 1644  the provider if the provider:
 1645         (a) Fails to timely remove management disapproved by the
 1646  office;
 1647         (b) Fails to timely notify the office of a change in
 1648  management;
 1649         (c) Appoints new management without a written contract; or
 1650         (d) Repeatedly appoints management that was previously
 1651  disapproved by the office or that is not approvable pursuant to
 1652  subsection (5).
 1653         (8) The provider shall remove any management immediately
 1654  upon discovery of any of the following conditions, if the
 1655  conditions were not disclosed in the notice to the office
 1656  required in subsection (3):
 1657         (a) That any person who exercises or has the ability to
 1658  exercise effective control of the provider, or who influences or
 1659  has the ability to influence the transaction of the business of
 1660  the provider, has been found guilty of, or has pled guilty or no
 1661  contest to, any felony or crime punishable by imprisonment of 1
 1662  year or more under the laws of the United States or any state
 1663  thereof or under the laws of any other country which involves
 1664  moral turpitude, without regard to whether a judgment or
 1665  conviction has been entered by the court having jurisdiction in
 1666  such case.
 1667         (b) That any person who exercises or has the ability to
 1668  exercise effective control of the organization, or who
 1669  influences or has the ability to influence the transaction of
 1670  the business of the provider, is now or was in the past
 1671  affiliated, directly or indirectly, through ownership interest
 1672  of 10 percent or more in, or control of, any business,
 1673  corporation, or other entity that has been found guilty of or
 1674  has pled guilty or no contest to any felony or crime punishable
 1675  by imprisonment for 1 year or more under the laws of the United
 1676  States, any state, or any other country, regardless of
 1677  adjudication.
 1678  
 1679  The failure to remove such management is grounds for revocation
 1680  or suspension of the provider’s certificate of authority.
 1681         Section 19. Section 651.051, Florida Statutes, is amended
 1682  to read:
 1683         651.051 Maintenance of assets and records in state.—All
 1684  records and assets of a provider must be maintained in this
 1685  state, or, if the provider’s corporate office is located in
 1686  another state, must be electronically stored in a manner that
 1687  will ensure that the records are readily accessible to the
 1688  office. No records or assets may be removed from this state by a
 1689  provider unless the office consents to such removal in writing
 1690  before such removal. Such consent must shall be based upon the
 1691  provider’s submitting satisfactory evidence that the removal
 1692  will facilitate and make more economical the operations of the
 1693  provider and will not diminish the service or protection
 1694  thereafter to be given the provider’s residents in this state.
 1695  Before Prior to such removal, the provider shall give notice to
 1696  the president or chair of the facility’s residents’ council. If
 1697  such removal is part of a cash management system which has been
 1698  approved by the office, disclosure of the system must shall meet
 1699  the notification requirements. The electronic storage of records
 1700  on a web-based, secured storage platform by contract with a
 1701  third party is acceptable if the records are readily accessible
 1702  to the office.
 1703         Section 20. Subsection (2) of section 651.057, Florida
 1704  Statutes, is amended to read:
 1705         651.057 Continuing care at-home contracts.—
 1706         (2) A provider that holds a certificate of authority and
 1707  wishes to offer continuing care at-home must also:
 1708         (a) Submit a business plan to the office with the following
 1709  information:
 1710         1. A description of the continuing care at-home services
 1711  that will be provided, the market to be served, and the fees to
 1712  be charged;
 1713         2. A copy of the proposed continuing care at-home contract;
 1714         3. An actuarial study prepared by an independent actuary in
 1715  accordance with the standards adopted by the American Academy of
 1716  Actuaries which presents the impact of providing continuing care
 1717  at-home on the overall operation of the facility; and
 1718         4. A market feasibility study that meets the requirements
 1719  of s. 651.022(4) s. 651.022(3) and documents that there is
 1720  sufficient interest in continuing care at-home contracts to
 1721  support such a program;
 1722         (b) Demonstrate to the office that the proposal to offer
 1723  continuing care at-home contracts to individuals who do not
 1724  immediately move into the facility will not place the provider
 1725  in an unsound financial condition;
 1726         (c) Comply with the requirements of s. 651.0246(1) s.
 1727  651.021(2), except that an actuarial study may be substituted
 1728  for the feasibility study; and
 1729         (d) Comply with the requirements of this chapter.
 1730         Section 21. Subsection (1) of section 651.071, Florida
 1731  Statutes, is amended to read:
 1732         651.071 Contracts as preferred claims on liquidation or
 1733  receivership.—
 1734         (1) In the event of receivership or liquidation proceedings
 1735  against a provider, all continuing care and continuing care at
 1736  home contracts executed by a provider are shall be deemed
 1737  preferred claims or policyholder loss preferred claims pursuant
 1738  to s. 631.271(1)(b) against all assets owned by the provider;
 1739  however, such claims are subordinate to any secured claim.
 1740         Section 22. Subsection (2) and present paragraph (g) of
 1741  subsection (3) of section 651.091, Florida Statutes, are
 1742  amended, present paragraphs (h) and (i) of subsection (3) of
 1743  that section are redesignated as paragraphs (g) and (h),
 1744  respectively, a new paragraph (i) and paragraphs (j), (k), and
 1745  (l) are added to that subsection, and paragraph (d) of
 1746  subsection (3) and subsection (4) of that section are
 1747  republished, to read:
 1748         651.091 Availability, distribution, and posting of reports
 1749  and records; requirement of full disclosure.—
 1750         (2) Every continuing care facility shall:
 1751         (a) Display the certificate of authority in a conspicuous
 1752  place inside the facility.
 1753         (b) Post in a prominent position in the facility which is
 1754  accessible to all residents and the general public a concise
 1755  summary of the last examination report issued by the office,
 1756  with references to the page numbers of the full report noting
 1757  any deficiencies found by the office, and the actions taken by
 1758  the provider to rectify such deficiencies, indicating in such
 1759  summary where the full report may be inspected in the facility.
 1760         (c) Provide notice to the president or chair of the
 1761  residents’ council within 10 business days after issuance of a
 1762  final examination report or the initiation of any legal or
 1763  administrative proceeding by the office or the department and
 1764  include a copy of such document.
 1765         (d)(c) Post in a prominent position in the facility which
 1766  is accessible to all residents and the general public a summary
 1767  of the latest annual statement, indicating in the summary where
 1768  the full annual statement may be inspected in the facility. A
 1769  listing of any proposed changes in policies, programs, and
 1770  services must also be posted.
 1771         (e)(d) Distribute a copy of the full annual statement and a
 1772  copy of the most recent third-party third party financial audit
 1773  filed with the annual report to the president or chair of the
 1774  residents’ council within 30 days after filing the annual report
 1775  with the office, and designate a staff person to provide
 1776  explanation thereof.
 1777         (f)(e)Deliver the information described in s. 651.085(4)
 1778  in writing to the president or chair of the residents’ council
 1779  and make supporting documentation available upon request Notify
 1780  the residents’ council of any plans filed with the office to
 1781  obtain new financing, additional financing, or refinancing for
 1782  the facility and of any applications to the office for any
 1783  expansion of the facility.
 1784         (g)(f) Deliver to the president or chair of the residents’
 1785  council a summary of entrance fees collected and refunds made
 1786  during the time period covered in the annual report and the
 1787  refund balances due at the end of the report period.
 1788         (h)(g) Deliver to the president or chair of the residents’
 1789  council a copy of each quarterly statement within 30 days after
 1790  the quarterly statement is filed with the office if the facility
 1791  is required to file quarterly.
 1792         (i)(h) Upon request, deliver to the president or chair of
 1793  the residents’ council a copy of any newly approved continuing
 1794  care or continuing care at-home contract within 30 days after
 1795  approval by the office.
 1796         (j) Provide to the president or chair of the residents’
 1797  council a copy of any notice filed with the office relating to
 1798  any change in ownership within 10 business days after such
 1799  filing by the provider.
 1800         (k) Make the information available to prospective residents
 1801  pursuant to paragraph (3)(d) available to current residents and
 1802  provide notice of changes to that information to the president
 1803  or chair of the residents’ council within 3 business days.
 1804         (3) Before entering into a contract to furnish continuing
 1805  care or continuing care at-home, the provider undertaking to
 1806  furnish the care, or the agent of the provider, shall make full
 1807  disclosure, and provide copies of the disclosure documents to
 1808  the prospective resident or his or her legal representative, of
 1809  the following information:
 1810         (d) In keeping with the intent of this subsection relating
 1811  to disclosure, the provider shall make available for review
 1812  master plans approved by the provider’s governing board and any
 1813  plans for expansion or phased development, to the extent that
 1814  the availability of such plans does not put at risk real estate,
 1815  financing, acquisition, negotiations, or other implementation of
 1816  operational plans and thus jeopardize the success of
 1817  negotiations, operations, and development.
 1818         (g) The amount and location of any reserve funds required
 1819  by this chapter, and the name of the person or entity having a
 1820  claim to such funds in the event of a bankruptcy, foreclosure,
 1821  or rehabilitation proceeding.
 1822         (i) Notice of the issuance of a final examination report or
 1823  the initiation of any legal or administrative proceeding by the
 1824  office or the department, including where the report or filing
 1825  may be inspected in the facility, and that upon request, an
 1826  electronic copy or specific website address will be provided
 1827  where the document can be downloaded at no cost.
 1828         (j) Notice that the entrance fee is the property of the
 1829  provider after the expiration of the 7-day escrow requirement
 1830  under s. 651.055(2).
 1831         (k) If the provider operates multiple facilities, a
 1832  disclosure of any distribution of assets or income between
 1833  facilities that may occur and the manner in which such
 1834  distributions would be made, or a statement that such
 1835  distributions will not occur.
 1836         (l) Notice of any holding company system or obligated group
 1837  of which the provider is a member.
 1838         (4) A true and complete copy of the full disclosure
 1839  document to be used must be filed with the office before use. A
 1840  resident or prospective resident or his or her legal
 1841  representative may inspect the full reports referred to in
 1842  paragraph (2)(b); the charter or other agreement or instrument
 1843  required to be filed with the office pursuant to s. 651.022(2),
 1844  together with all amendments thereto; and the bylaws of the
 1845  corporation or association, if any. Upon request, copies of the
 1846  reports and information shall be provided to the individual
 1847  requesting them if the individual agrees to pay a reasonable
 1848  charge to cover copying costs.
 1849         Section 23. Subsections (1) and (5) of section 651.105,
 1850  Florida Statutes, are amended, and subsections (7) and (8) are
 1851  added to that section, to read:
 1852         651.105 Examination and inspections.—
 1853         (1) The office may at any time, and shall at least once
 1854  every 3 years, examine the business of any applicant for a
 1855  certificate of authority and any provider engaged in the
 1856  execution of care contracts or engaged in the performance of
 1857  obligations under such contracts, in the same manner as is
 1858  provided for the examination of insurance companies pursuant to
 1859  ss. 624.316 and 624.318 s. 624.316. For a provider as described
 1860  defined in s. 651.028, such examinations must shall take place
 1861  at least once every 5 years. Such examinations must shall be
 1862  made by a representative or examiner designated by the office
 1863  whose compensation will be fixed by the office pursuant to s.
 1864  624.320. Routine examinations may be made by having the
 1865  necessary documents submitted to the office; and, for this
 1866  purpose, financial documents and records conforming to commonly
 1867  accepted accounting principles and practices, as required under
 1868  s. 651.026, are deemed adequate. The final written report of
 1869  each examination must be filed with the office and, when so
 1870  filed, constitutes a public record. Any provider being examined
 1871  shall, upon request, give reasonable and timely access to all of
 1872  its records. The representative or examiner designated by the
 1873  office may at any time examine the records and affairs and
 1874  inspect the physical property of any provider, whether in
 1875  connection with a formal examination or not.
 1876         (5) A provider must respond to written correspondence from
 1877  the office and provide data, financial statements, and pertinent
 1878  information as requested by the office or by the office’s
 1879  investigators, examiners, or inspectors. The office has standing
 1880  to petition a circuit court for mandatory injunctive relief to
 1881  compel access to and require the provider to produce the
 1882  documents, data, records, and other information requested by the
 1883  office or its investigators, examiners, or inspectors. The
 1884  office may petition the circuit court in the county in which the
 1885  facility is situated or the Circuit Court of Leon County to
 1886  enforce this section At the time of the routine examination, the
 1887  office shall determine if all disclosures required under this
 1888  chapter have been made to the president or chair of the
 1889  residents’ council and the executive officer of the governing
 1890  body of the provider.
 1891         (7) Unless a provider or facility is impaired or subject to
 1892  a regulatory action level event, any parent, subsidiary, or
 1893  affiliate is not subject to examination by the office as part of
 1894  a routine examination. However, if a provider or facility relies
 1895  on a contractual or financial relationship with a parent,
 1896  subsidiary, or affiliate in order to demonstrate the provider or
 1897  facility’s financial condition is in compliance with this
 1898  chapter, the office may examine any parent, subsidiary, or
 1899  affiliate that has a contractual or financial relationship with
 1900  the provider or facility to the extent necessary to ascertain
 1901  the financial condition of the provider.
 1902         (8) If a provider voluntarily contracts with an actuary for
 1903  an actuarial study or review at regular intervals, the office
 1904  may not use any recommendations made by the actuary as a measure
 1905  of performance when conducting an examination or inspection. The
 1906  office may not request, as part of the examination or
 1907  inspection, documents associated with an actuarial study or
 1908  review marked “restricted distribution” if the study or review
 1909  is not required by this chapter.
 1910         Section 24. Section 651.106, Florida Statutes, is amended
 1911  to read:
 1912         651.106 Grounds for discretionary refusal, suspension, or
 1913  revocation of certificate of authority.—The office may deny an
 1914  application or, suspend, or revoke the provisional certificate
 1915  of authority or the certificate of authority of any applicant or
 1916  provider if it finds that any one or more of the following
 1917  grounds applicable to the applicant or provider exist:
 1918         (1) Failure by the provider to continue to meet the
 1919  requirements for the authority originally granted.
 1920         (2) Failure by the provider to meet one or more of the
 1921  qualifications for the authority specified by this chapter.
 1922         (3) Material misstatement, misrepresentation, or fraud in
 1923  obtaining the authority, or in attempting to obtain the same.
 1924         (4) Demonstrated lack of fitness or trustworthiness.
 1925         (5) Fraudulent or dishonest practices of management in the
 1926  conduct of business.
 1927         (6) Misappropriation, conversion, or withholding of moneys.
 1928         (7) Failure to comply with, or violation of, any proper
 1929  order or rule of the office or commission or violation of any
 1930  provision of this chapter.
 1931         (8) The insolvent or impaired condition of the provider or
 1932  the provider’s being in such condition or using such methods and
 1933  practices in the conduct of its business as to render its
 1934  further transactions in this state hazardous or injurious to the
 1935  public.
 1936         (9) Refusal by the provider to be examined or to produce
 1937  its accounts, records, and files for examination, or refusal by
 1938  any of its officers to give information with respect to its
 1939  affairs or to perform any other legal obligation under this
 1940  chapter when required by the office.
 1941         (10) Failure by the provider to comply with the
 1942  requirements of s. 651.026 or s. 651.033.
 1943         (11) Failure by the provider to maintain escrow accounts or
 1944  funds as required by this chapter.
 1945         (12) Failure by the provider to meet the requirements of
 1946  this chapter for disclosure of information to residents
 1947  concerning the facility, its ownership, its management, its
 1948  development, or its financial condition or failure to honor its
 1949  continuing care or continuing care at-home contracts.
 1950         (13) Any cause for which issuance of the license could have
 1951  been refused had it then existed and been known to the office.
 1952         (14) Having been found guilty of, or having pleaded guilty
 1953  or nolo contendere to, a felony in this state or any other
 1954  state, without regard to whether a judgment or conviction has
 1955  been entered by the court having jurisdiction of such cases.
 1956         (15) In the conduct of business under the license, engaging
 1957  in unfair methods of competition or in unfair or deceptive acts
 1958  or practices prohibited under part IX of chapter 626.
 1959         (16) A pattern of bankrupt enterprises.
 1960         (17) The ownership, control, or management of the
 1961  organization includes any person:
 1962         (a) Who is not reputable and of responsible character;
 1963         (b) Who is so lacking in management expertise as to make
 1964  the operation of the provider hazardous to potential and
 1965  existing residents;
 1966         (c) Who is so lacking in management experience, ability,
 1967  and standing as to jeopardize the reasonable promise of
 1968  successful operation;
 1969         (d) Who is affiliated, directly or indirectly, through
 1970  ownership or control, with any person whose business operations
 1971  are or have been marked by business practices or conduct that is
 1972  detrimental to the public, stockholders, investors, or
 1973  creditors; or
 1974         (e) Whose business operations are or have been marked by
 1975  business practices or conduct that is detrimental to the public,
 1976  stockholders, investors, or creditors.
 1977         (18) The provider has not filed a notice of change in
 1978  management, fails to remove a disapproved manager, or persists
 1979  in appointing disapproved managers.
 1980  
 1981  Revocation of a certificate of authority under this section does
 1982  not relieve a provider from the provider’s obligation to
 1983  residents under the terms and conditions of any continuing care
 1984  or continuing care at-home contract between the provider and
 1985  residents or the provisions of this chapter. The provider shall
 1986  continue to file its annual statement and pay license fees to
 1987  the office as required under this chapter as if the certificate
 1988  of authority had continued in full force, but the provider shall
 1989  not issue any new contracts. The office may seek an action in
 1990  the Circuit Court of Leon County to enforce the office’s order
 1991  and the provisions of this section.
 1992         Section 25. Section 651.1065, Florida Statutes, is created
 1993  to read:
 1994         651.1065 Soliciting or accepting new continuing care
 1995  contracts by impaired or insolvent facilities or providers.—
 1996         (1) Regardless of whether delinquency proceedings as to a
 1997  continuing care retirement community have been or are to be
 1998  initiated, a proprietor, general partner, member, officer,
 1999  director, trustee, or manager of a continuing care retirement
 2000  community may not actively solicit, approve the solicitation or
 2001  acceptance of, or accept new continuing care contracts in this
 2002  state after the proprietor, general partner, member, officer,
 2003  director, trustee, or manager knew, or reasonably should have
 2004  known, that the continuing care retirement community was
 2005  impaired or insolvent, except with the written permission of the
 2006  office, unless the facility has declared bankruptcy, in which
 2007  case the bankruptcy court or trustee appointed by the court has
 2008  jurisdiction over such matters. The office must approve or
 2009  disapprove the continued marketing of new contracts within 15
 2010  days after receiving a request from a provider.
 2011         (2) A proprietor, general partner, member, officer,
 2012  director, trustee, or manager who violates this section commits
 2013  a felony of the third degree, punishable as provided in s.
 2014  775.082, s. 775.083, or s. 775.084.
 2015         Section 26. Section 651.111, Florida Statutes, is amended
 2016  to read:
 2017         651.111 Requests for inspections.—
 2018         (1) Any interested party may request an inspection of the
 2019  records and related financial affairs of a provider providing
 2020  care in accordance with the provisions of this chapter by
 2021  transmitting to the office notice of an alleged violation of
 2022  applicable requirements prescribed by statute or by rule,
 2023  specifying to a reasonable extent the details of the alleged
 2024  violation, which notice must shall be signed by the complainant.
 2025         (2) The substance of the complaint must shall be given to
 2026  the provider no earlier than the time of the inspection. Unless
 2027  the complainant specifically requests otherwise, neither the
 2028  substance of the complaint which is provided to the provider nor
 2029  any copy of the complaint, closure statement, or any record
 2030  which is published, released, or otherwise made available to the
 2031  provider may shall disclose the name of any person mentioned in
 2032  the complaint except the name of any duly authorized officer,
 2033  employee, or agent of the office conducting the investigation or
 2034  inspection pursuant to this chapter.
 2035         (3) Upon receipt of a complaint, the office shall make a
 2036  preliminary review; and, unless the office determines that the
 2037  complaint is without any reasonable basis or the complaint does
 2038  not request an inspection, the office shall make an inspection.
 2039  The office shall provide the complainant with a written
 2040  acknowledgment of the complaint within 15 days after receipt by
 2041  the office. Such acknowledgment must include the case number
 2042  assigned by the office to the complaint and the name and contact
 2043  information of any duly authorized officer, employee, or agent
 2044  of the office conducting the investigation or inspection
 2045  pursuant to this chapter. The complainant must shall be advised,
 2046  within 30 days after the receipt of the complaint by the office,
 2047  of the proposed course of action of the office, including an
 2048  estimated timeframe for the handling of the complaint. If the
 2049  office does not conclude its inspection or investigation within
 2050  the office’s estimated timeframe, the office must advise the
 2051  complainant in writing within 15 days after any revised course
 2052  of action, including a revised estimated timeframe for the
 2053  handling of the complaint. Within 15 days after the office
 2054  completes its inspection or concludes its investigation, the
 2055  office shall provide the complainant and the provider a written
 2056  closure statement specifying the office’s findings and the
 2057  results of any inspection or investigation.
 2058         (4) A No provider operating under a certificate of
 2059  authority under this chapter may not discriminate or retaliate
 2060  in any manner against a resident or an employee of a facility
 2061  providing care because such resident or employee or any other
 2062  person has initiated a complaint pursuant to this section.
 2063         Section 27. Section 651.114, Florida Statutes, is amended
 2064  to read:
 2065         651.114 Delinquency proceedings; remedial rights.—
 2066         (1) Upon determination by the office that a provider is not
 2067  in compliance with this chapter, the office may notify the chair
 2068  of the Continuing Care Advisory Council, who may assist the
 2069  office in formulating a corrective action plan.
 2070         (2) Within 30 days after a request by either the advisory
 2071  council or the office, a provider shall make a plan for
 2072  obtaining compliance or solvency available to the advisory
 2073  council and the office, within 30 days after being requested to
 2074  do so by the council, a plan for obtaining compliance or
 2075  solvency.
 2076         (3) Within 30 days after receipt of a plan for obtaining
 2077  compliance or solvency, the office, or notification, the
 2078  advisory council at the request of the office, shall:
 2079         (a) Consider and evaluate the plan submitted by the
 2080  provider.
 2081         (b) Discuss the problem and solutions with the provider.
 2082         (c) Conduct such other business as is necessary.
 2083         (d) Report its findings and recommendations to the office,
 2084  which may require additional modification of the plan.
 2085  
 2086  This subsection may not be interpreted so as to delay or prevent
 2087  the office from taking any regulatory measures it deems
 2088  necessary regarding the provider that submitted the plan.
 2089         (4) If the financial condition of a continuing care
 2090  facility or provider is impaired or is such that if not modified
 2091  or corrected, its continued operation would result in
 2092  insolvency, the office may direct the provider to formulate and
 2093  file with the office a corrective action plan. If the provider
 2094  fails to submit a plan within 30 days after the office’s
 2095  directive, or submits a plan that is insufficient to correct the
 2096  condition, the office may specify a plan and direct the provider
 2097  to implement the plan. Before specifying a plan, the office may
 2098  seek a recommended plan from the advisory council.
 2099         (5)(4) After receiving approval of a plan by the office,
 2100  the provider shall submit a progress report monthly to the
 2101  advisory council or the office, or both, in a manner prescribed
 2102  by the office. After 3 months, or at any earlier time deemed
 2103  necessary, the council shall evaluate the progress by the
 2104  provider and shall advise the office of its findings.
 2105         (6)(5)If Should the office finds find that sufficient
 2106  grounds exist for rehabilitation, liquidation, conservation,
 2107  reorganization, seizure, or summary proceedings of an insurer as
 2108  set forth in ss. 631.051, 631.061, and 631.071, the department
 2109  office may petition for an appropriate court order or may pursue
 2110  such other relief as is afforded in part I of chapter 631.
 2111  Before invoking its powers under part I of chapter 631, the
 2112  department office shall notify the chair of the advisory
 2113  council.
 2114         (7) Notwithstanding s. 631.011, impairment of a provider,
 2115  for purposes of s. 631.051, is defined according to the term
 2116  “impaired” in s. 651.011.
 2117         (8)(6) In the event an order of conservation,
 2118  rehabilitation, liquidation, or conservation, reorganization,
 2119  seizure, or summary proceeding has been entered against a
 2120  provider, the department and office are vested with all of the
 2121  powers and duties they have under the provisions of part I of
 2122  chapter 631 in regard to delinquency proceedings of insurance
 2123  companies. A provider shall give written notice of the
 2124  proceeding to its residents within 3 business days after the
 2125  initiation of a delinquency proceeding under chapter 631 and
 2126  shall include a notice of the delinquency proceeding in any
 2127  written materials provided to prospective residents.
 2128         (7) If the financial condition of the continuing care
 2129  facility or provider is such that, if not modified or corrected,
 2130  its continued operation would result in insolvency, the office
 2131  may direct the provider to formulate and file with the office a
 2132  corrective action plan. If the provider fails to submit a plan
 2133  within 30 days after the office’s directive or submits a plan
 2134  that is insufficient to correct the condition, the office may
 2135  specify a plan and direct the provider to implement the plan.
 2136         (9) A provider subject to an order to show cause entered
 2137  pursuant to chapter 631 must file its written response to the
 2138  order, together with any defenses it may have to the
 2139  department’s allegations, no later than 20 days after service of
 2140  the order to show cause, but no less than 15 days before the
 2141  date of the hearing set by the order to show cause.
 2142         (10) A hearing held pursuant to chapter 631 to determine
 2143  whether cause exists for the department to be appointed receiver
 2144  must be commenced within 60 days after an order directing a
 2145  provider to show cause.
 2146         (11)(a)(8)(a) The rights of the office described in this
 2147  section are subordinate to the rights of a trustee or lender
 2148  pursuant to the terms of a resolution, ordinance, loan
 2149  agreement, indenture of trust, mortgage, lease, security
 2150  agreement, or other instrument creating or securing bonds or
 2151  notes issued to finance a facility, and the office, subject to
 2152  the provisions of paragraph (c), may shall not exercise its
 2153  remedial rights provided under this section and ss. 651.018,
 2154  651.106, 651.108, and 651.116 with respect to a facility that is
 2155  not in default of any financial or contractual obligation other
 2156  than subject to a lien, mortgage, lease, or other encumbrance or
 2157  trust indenture securing bonds or notes issued in connection
 2158  with the financing of the facility, if the trustee or lender, by
 2159  inclusion or by amendment to the loan documents or by a separate
 2160  contract with the office, agrees that the rights of residents
 2161  under a continuing care or continuing care at-home contract will
 2162  be honored and will not be disturbed by a foreclosure or
 2163  conveyance in lieu thereof as long as the resident:
 2164         1. Is current in the payment of all monetary obligations
 2165  required by the contract;
 2166         2. Is in compliance and continues to comply with all
 2167  provisions of the contract; and
 2168         3. Has asserted no claim inconsistent with the rights of
 2169  the trustee or lender.
 2170         (b) This subsection does not require a trustee or lender
 2171  to:
 2172         1. Continue to engage in the marketing or resale of new
 2173  continuing care or continuing care at-home contracts;
 2174         2. Pay any rebate of entrance fees as may be required by a
 2175  resident’s continuing care or continuing care at-home contract
 2176  as of the date of acquisition of the facility by the trustee or
 2177  lender and until expiration of the period described in paragraph
 2178  (d);
 2179         3. Be responsible for any act or omission of any owner or
 2180  operator of the facility arising before the acquisition of the
 2181  facility by the trustee or lender; or
 2182         4. Provide services to the residents to the extent that the
 2183  trustee or lender would be required to advance or expend funds
 2184  that have not been designated or set aside for such purposes.
 2185         (c) Should the office determine, at any time during the
 2186  suspension of its remedial rights as provided in paragraph (a),
 2187  that the trustee or lender is not in compliance with paragraph
 2188  (a), or that a lender or trustee has assigned or has agreed to
 2189  assign all or a portion of a delinquent or defaulted loan to a
 2190  third party without the office’s written consent, the office
 2191  shall notify the trustee or lender in writing of its
 2192  determination, setting forth the reasons giving rise to the
 2193  determination and specifying those remedial rights afforded to
 2194  the office which the office shall then reinstate.
 2195         (d) Upon acquisition of a facility by a trustee or lender
 2196  and evidence satisfactory to the office that the requirements of
 2197  paragraph (a) have been met, the office shall issue a 90-day
 2198  temporary certificate of authority granting the trustee or
 2199  lender the authority to engage in the business of providing
 2200  continuing care or continuing care at-home and to issue
 2201  continuing care or continuing care at-home contracts subject to
 2202  the office’s right to immediately suspend or revoke the
 2203  temporary certificate of authority if the office determines that
 2204  any of the grounds described in s. 651.106 apply to the trustee
 2205  or lender or that the terms of the contract used as the basis
 2206  for the issuance of the temporary certificate of authority by
 2207  the office have not been or are not being met by the trustee or
 2208  lender since the date of acquisition.
 2209         Section 28. Section 651.1141, Florida Statutes, is created
 2210  to read:
 2211         651.1141 Immediate final orders.The office may issue an
 2212  immediate final order to cease and desist if the office finds
 2213  that installation of a general partner of a provider or
 2214  assumption of ownership or possession or control of 10 percent
 2215  or more of a provider’s assets in violation of s. 651.024 or s.
 2216  651.0245, the removal or commitment of 10 percent or more of the
 2217  required minimum liquid reserve funds in violation of s.
 2218  651.035, or the assumption of control over a facility’s
 2219  operations in violation of s. 651.043 has occurred.
 2220         Section 29. Paragraphs (d) and (e) of subsection (1) of
 2221  section 651.121, Florida Statutes, are amended to read:
 2222         651.121 Continuing Care Advisory Council.—
 2223         (1) The Continuing Care Advisory Council to the office is
 2224  created consisting of 10 members who are residents of this state
 2225  appointed by the Governor and geographically representative of
 2226  this state. Three members shall be administrators of facilities
 2227  that hold valid certificates of authority under this chapter and
 2228  shall have been actively engaged in the offering of continuing
 2229  care contracts in this state for 5 years before appointment. The
 2230  remaining members include:
 2231         (d) An attorney.
 2232         (d)(e)Four Three residents who hold continuing care or
 2233  continuing care at-home contracts with a facility certified in
 2234  this state.
 2235         Section 30. Subsections (1) and (4) of section 651.125,
 2236  Florida Statutes, are amended to read:
 2237         651.125 Criminal penalties; injunctive relief.—
 2238         (1) Any person who maintains, enters into, or, as manager
 2239  or officer or in any other administrative capacity, assists in
 2240  entering into, maintaining, or performing any continuing care or
 2241  continuing care at-home contract subject to this chapter without
 2242  doing so in pursuance of a valid provisional certificate of
 2243  authority or certificate of authority or renewal thereof, as
 2244  contemplated by or provided in this chapter, or who otherwise
 2245  violates any provision of this chapter or rule adopted in
 2246  pursuance of this chapter, commits a felony of the third degree,
 2247  punishable as provided in s. 775.082 or s. 775.083. Each
 2248  violation of this chapter constitutes a separate offense.
 2249         (4) Any action brought by the office against a provider
 2250  shall not abate by reason of a sale or other transfer of
 2251  ownership of the facility used to provide care, which provider
 2252  is a party to the action, except with the express written
 2253  consent of the director of the office.
 2254         Section 31. This act shall take effect July 1, 2018.
 2255  
 2256  ================= T I T L E  A M E N D M E N T ================
 2257  And the title is amended as follows:
 2258         Delete everything before the enacting clause
 2259  and insert:
 2260                        A bill to be entitled                      
 2261         An act relating to continuing care contracts; amending
 2262         s. 651.011, F.S.; defining and redefining terms;
 2263         amending s. 651.012, F.S.; conforming a cross
 2264         reference; deleting an obsolete date; amending s.
 2265         651.013, F.S.; revising applicability of specified
 2266         provisions of the Florida Insurance Code to the Office
 2267         of Insurance Regulation’s authority to regulate
 2268         providers of continuing care and continuing care at
 2269         home; amending s. 651.019, F.S.; revising notice and
 2270         filing requirements for providers and facilities with
 2271         respect to new and additional financing and
 2272         refinancing; amending s. 651.021, F.S.; conforming
 2273         provisions to changes made by the act; creating s.
 2274         651.0215, F.S.; specifying conditions that qualify an
 2275         applicant for a certificate of authority without first
 2276         obtaining a provisional certificate of authority;
 2277         specifying requirements for the consolidated
 2278         application; requiring an applicant to obtain separate
 2279         certificates of authority for multiple facilities;
 2280         specifying procedures and requirements for the
 2281         office’s review of such applications and issuance or
 2282         denial of certificates of authority; providing
 2283         requirements for reservation contracts, entrance fees,
 2284         and reservation deposits; authorizing a provider to
 2285         secure release of moneys held in escrow under
 2286         specified circumstances; providing construction
 2287         relating to the release of escrow funds; amending s.
 2288         651.022, F.S.; revising the office’s authority to make
 2289         certain inquiries in the review of applications for
 2290         provisional certificates of authority; specifying
 2291         requirements for application amendments if material
 2292         changes occur; requiring applicants to submit a
 2293         specified feasibility study; revising procedures and
 2294         requirements for the office’s review of such
 2295         applications; conforming a provision to changes made
 2296         by the act; making a technical change; conforming
 2297         cross-references; amending s. 651.023, F.S.; revising
 2298         requirements for an application for a certificate of
 2299         authority; specifying requirements for application
 2300         amendments if material changes occur; revising
 2301         procedures and requirements for the office’s review of
 2302         such applications; revising minimum unit reservation
 2303         and minimum deposit requirements; revising conditions
 2304         under which a provider is entitled to secure release
 2305         of certain moneys held in escrow; conforming
 2306         provisions to changes made by the act; conforming
 2307         cross-references; amending s. 651.024, F.S.; providing
 2308         and revising applicability of certain provisions to a
 2309         person seeking to assume the role of general partner
 2310         of a provider or seeking specified ownership,
 2311         possession, or control of a provider’s assets;
 2312         providing applicability of certain provisions to a
 2313         person seeking to acquire and become the provider for
 2314         a facility; providing procedures for filing a
 2315         disclaimer of control; defining terms; providing
 2316         standing to the office to petition a circuit court in
 2317         certain proceedings; creating s. 651.0245, F.S.;
 2318         prohibiting a person, without the office’s prior
 2319         written approval, from acquiring a facility operating
 2320         under a subsisting certificate of authority and
 2321         engaging in the business of providing continuing care;
 2322         providing requirements for an applicant seeking
 2323         simultaneous acquisition of a facility and issuance of
 2324         a certificate of authority; requiring the Financial
 2325         Services Commission to adopt by rule certain
 2326         application requirements; requiring the office to
 2327         review applications and issue approvals or
 2328         disapprovals of filings in accordance with specified
 2329         provisions; defining terms; providing standing to the
 2330         office to petition a specified circuit court under
 2331         certain circumstances; providing procedures for filing
 2332         a disclaimer of control; providing construction;
 2333         authorizing the commission to adopt, amend, and repeal
 2334         rules; creating s. 651.0246, F.S.; requiring a
 2335         provider to obtain written approval from the office
 2336         before commencing construction or marketing for
 2337         specified expansions of a certificated facility;
 2338         providing that a provider is automatically granted
 2339         approval for certain expansions under specified
 2340         circumstances; defining the term “existing units”;
 2341         providing applicability; specifying requirements for
 2342         applying for such approval; requiring the office to
 2343         consider certain factors in reviewing such
 2344         applications; providing procedures and requirements
 2345         for the office’s review of applications and approval
 2346         or denial of expansions; specifying requirements for
 2347         escrowed moneys and for the release of the moneys;
 2348         defining the term “initial entrance fee”; providing
 2349         construction; amending s. 651.026, F.S.; revising
 2350         requirements for annual reports that providers file
 2351         with the office; revising guidelines for commission
 2352         rulemaking; requiring the office to publish, within
 2353         specified timeframes, a specified annual report;
 2354         amending s. 651.0261, F.S.; revising requirements for
 2355         quarterly statements filed by providers and facilities
 2356         with the office; authorizing the office to waive
 2357         certain filing requirements under certain
 2358         circumstances; authorizing the office to require,
 2359         under certain circumstances, providers or facilities
 2360         to file monthly unaudited financial statements and
 2361         certain other information; authorizing the commission
 2362         to adopt certain rules; amending s. 651.028, F.S.;
 2363         authorizing the office, under certain circumstances,
 2364         to waive any requirement of ch. 651, F.S., for
 2365         providers or obligated groups having certain
 2366         accreditations or credit ratings; amending s. 651.033,
 2367         F.S.; revising requirements for escrow accounts and
 2368         escrow agreements; revising requirements for, and
 2369         restrictions on, agents of escrow accounts; revising
 2370         permissible investments for funds in an escrow
 2371         account; revising requirements for the withdrawal of
 2372         escrowed funds under certain circumstances; creating
 2373         s. 651.034, F.S.; specifying requirements and
 2374         procedures for the office if a regulatory action level
 2375         event occurs; authorizing the office to use members of
 2376         the Continuing Care Advisory Council or retain
 2377         consultants for specified purposes; requiring affected
 2378         providers to bear fees, costs, and expenses for such
 2379         consultants; requiring the office to take certain
 2380         actions if an impairment occurs; authorizing the
 2381         office to forego taking action for a certain timeframe
 2382         under certain circumstances; providing immunity from
 2383         liability to the commission, the Department of
 2384         Financial Services, the office, and their employees or
 2385         agents for certain actions; requiring the office to
 2386         transmit any notice that may result in regulatory
 2387         action by certain methods; authorizing the office to
 2388         exempt a provider from specified requirements under
 2389         certain circumstances and for a specified timeframe;
 2390         authorizing the commission to adopt rules; providing
 2391         construction; amending s. 651.035, F.S.; revising
 2392         provider minimum liquid reserve requirements under
 2393         specified circumstances; deleting an obsolete date;
 2394         authorizing providers, under certain circumstances, to
 2395         withdraw funds held in escrow without the office’s
 2396         approval; providing procedures and requirements to
 2397         request approval for certain withdrawals; providing
 2398         procedures and requirements for the office’s review of
 2399         such requests; authorizing the office, under certain
 2400         circumstances, to order the immediate transfer of
 2401         funds in the minimum liquid reserve to the custody of
 2402         the department; providing that certain debt service
 2403         reserves of a provider are not subject to such
 2404         transfer provision; requiring facilities to file
 2405         annual calculations of their minimum liquid reserves
 2406         with the office and maintain such reserves beginning
 2407         at specified periods; requiring providers to fund
 2408         reserve shortfalls within a specified timeframe;
 2409         providing construction; creating s. 651.043, F.S.;
 2410         defining the term “management”; providing requirements
 2411         for a contract for management made after a certain
 2412         date; specifying procedures and requirements for
 2413         providers filing notices of change in management with
 2414         the office; specifying procedures, requirements, and
 2415         factors for the office’s review of such changes and
 2416         approval or disapproval of the new management;
 2417         requiring management disapproved by the office to be
 2418         removed within a specified timeframe; authorizing the
 2419         office to take certain disciplinary actions under
 2420         certain circumstances; requiring providers to
 2421         immediately remove management under certain
 2422         circumstances; amending s. 651.051, F.S.; revising
 2423         requirements for the maintenance of a provider’s
 2424         records and assets; amending s. 651.057, F.S.;
 2425         conforming cross-references; amending s. 651.071,
 2426         F.S.; revising construction as to the priority of
 2427         continuing care and continuing care at-home contracts
 2428         in the event of receivership or liquidation
 2429         proceedings against a provider; amending s. 651.091,
 2430         F.S.; revising requirements for continuing care
 2431         facilities and providers relating to the availability,
 2432         distribution, and posting of reports and records;
 2433         amending s. 651.105, F.S.; providing applicability of
 2434         a provision of the Insurance Code relating to
 2435         examinations and investigations to the office’s
 2436         authority in examining certain applicants and
 2437         providers; requiring providers to respond to written
 2438         correspondence from the office and provide certain
 2439         information; declaring that the office has standing to
 2440         petition a circuit court for certain injunctive
 2441         relief; specifying venue; deleting a requirement for
 2442         the office to determine if certain disclosures have
 2443         been made; providing that a provider’s or facility’s
 2444         parent, subsidiary, or affiliate is not subject to
 2445         routine examination by the office except under certain
 2446         circumstances; authorizing the office to examine
 2447         certain parents, subsidiaries, or affiliates to
 2448         ascertain the financial condition of a provider under
 2449         certain circumstances; prohibiting the office, when
 2450         conducting an examination or inspection, from using
 2451         certain actuary recommendations for a certain purpose
 2452         or requesting certain documents under certain
 2453         circumstances; amending s. 651.106, F.S.; authorizing
 2454         the office to deny an application for a provisional
 2455         certificate of authority or a certificate of authority
 2456         on certain grounds; revising and adding grounds for
 2457         application denial or disciplinary action by the
 2458         office; creating s. 651.1065, F.S.; prohibiting
 2459         certain persons of a continuing care retirement
 2460         community, except with the office’s written
 2461         permission, from actively soliciting, approving the
 2462         solicitation or acceptance of, or accepting new
 2463         continuing care contracts if they knew or should have
 2464         known that the retirement community was impaired or
 2465         insolvent; providing an exception; requiring the
 2466         office to approve or disapprove the continued
 2467         marketing of new contracts within a specified
 2468         timeframe; providing a criminal penalty; amending s.
 2469         651.111, F.S.; revising procedures and requirements
 2470         for the office’s review of complaints requesting
 2471         inspections of records and related financial affairs
 2472         of a provider; amending s. 651.114, F.S.; providing
 2473         that certain duties relating to a certain compliance
 2474         or solvency plan must be performed by the office, or
 2475         the Continuing Care Advisory Council at the request of
 2476         the office, rather than solely by the council;
 2477         providing construction relating to the office’s
 2478         authority to take certain measures; authorizing the
 2479         office to seek a recommended plan from the advisory
 2480         council; replacing the office with the department as
 2481         the entity taking certain actions under ch. 631, F.S.;
 2482         providing construction; revising circumstances under
 2483         which the department and office are vested with
 2484         certain powers and duties in regard to delinquency
 2485         proceedings; specifying requirements for providers to
 2486         notify residents and prospective residents of
 2487         delinquency proceedings; specifying procedures
 2488         relating to orders to show cause and hearings pursuant
 2489         to ch. 631, F.S.; revising facilities with respect to
 2490         which the office may not exercise certain remedial
 2491         rights; creating s. 651.1141, F.S.; authorizing the
 2492         office to issue an immediate final order for a
 2493         provider to cease and desist from specified
 2494         violations; amending s. 651.121, F.S.; revising the
 2495         composition of the Continuing Care Advisory Council;
 2496         amending s. 651.125, F.S.; providing a criminal
 2497         penalty for certain actions performed without a valid
 2498         provisional certificate of authority; making a
 2499         technical change; providing an effective date.