Florida Senate - 2018                                     SB 438
       
       
        
       By Senator Lee
       
       
       
       
       
       20-00386-18                                            2018438__
    1                        A bill to be entitled                      
    2         An act relating to continuing care contracts; amending
    3         s. 651.011, F.S.; defining and redefining terms;
    4         amending s. 651.012, F.S.; conforming a cross
    5         reference; deleting an obsolete date; amending s.
    6         651.013, F.S.; revising applicability of specified
    7         provisions of the Florida Insurance Code as to the
    8         Office of Insurance Regulation’s authority to regulate
    9         providers of continuing care and continuing care at
   10         home; amending s. 651.019, F.S.; revising notice and
   11         filing requirements for providers and facilities with
   12         respect to new and additional financing and
   13         refinancing; amending s. 651.021, F.S.; conforming
   14         provisions to changes made by the act; amending s.
   15         651.022, F.S.; revising information required in an
   16         application for a provisional certificate of
   17         authority; specifying requirements for application
   18         amendments if material changes occur; revising
   19         procedures and requirements for the office’s review of
   20         such applications; making technical changes; amending
   21         s. 651.023, F.S.; revising requirements for an
   22         application for a certificate of authority; revising
   23         procedures and requirements for the office’s review of
   24         such applications; conforming provisions to changes
   25         made by the act; conforming cross-references; amending
   26         s. 651.024, F.S.; providing and revising applicability
   27         of certain requirements for a person seeking to
   28         acquire or assume a specified role of a provider or
   29         seeking specified ownership, possession, or control of
   30         a provider’s assets; providing applicability of
   31         certain requirements for a person seeking to acquire
   32         and become the provider for a facility; providing
   33         procedures for filing a disclaimer of control;
   34         providing construction; creating s. 651.0245, F.S.;
   35         prohibiting a person, without the office’s prior
   36         written approval, from acquiring a facility operating
   37         under a subsisting certificate of authority and
   38         engaging in the business of providing continuing care;
   39         specifying requirements for an application for the
   40         simultaneous acquisition of a facility and issuance of
   41         a certificate of authority and for the applicant;
   42         defining terms; providing standing to the office to
   43         petition a specified circuit court under certain
   44         circumstances; providing procedures for filing a
   45         disclaimer of control; providing construction;
   46         requiring and authorizing the Financial Services
   47         Commission to adopt, amend, and repeal rules; creating
   48         s. 651.0246, F.S.; requiring written approval from the
   49         office before construction or marketing for specified
   50         expansions of a certificated facility may commence;
   51         providing applicability; specifying application
   52         requirements; requiring the office to consider certain
   53         factors in reviewing such applications; specifying
   54         requirements for moneys to be escrowed and for the
   55         release of the moneys; defining the term “initial
   56         entrance fee”; providing procedures and requirements
   57         for the office’s review of applications; providing
   58         construction; creating s. 651.025, F.S.; prohibiting
   59         persons who served in specified capacities with
   60         insolvent facilities or providers within a specified
   61         timeframe from thereafter serving in such capacities,
   62         except under certain circumstances; amending s.
   63         651.026, F.S.; revising requirements for annual
   64         reports filed with the office by providers and
   65         facilities; amending s. 651.0261, F.S.; revising
   66         requirements for quarterly statements filed with the
   67         office by providers and facilities; authorizing the
   68         office to require, under certain circumstances,
   69         providers or facilities to file monthly statements and
   70         certain other information; authorizing the commission
   71         to adopt rules; amending s. 651.033, F.S.; revising
   72         requirements for and restrictions on agents of escrow
   73         accounts; revising permissible investments for funds
   74         in an escrow account; creating s. 651.034, F.S.;
   75         specifying requirements for providers if a company
   76         information level event occurs; specifying procedures
   77         and requirements for the office’s review of provider
   78         company information reports; requiring the office to
   79         take specified actions if a regulatory action level
   80         event occurs; authorizing the office to retain
   81         consultants for specified purposes; requiring affected
   82         providers or parties directed by the office to bear
   83         fees, costs, and expenses for such consultants;
   84         requiring and authorizing the office to take certain
   85         actions if an impairment occurs; requiring the office
   86         to transmit any notice that may result in regulatory
   87         action; providing construction; authorizing the
   88         commission to adopt rules; authorizing the office to
   89         exempt a provider from specified requirements under
   90         certain circumstances; amending s. 651.035, F.S.;
   91         revising provider minimum liquid reserve requirements
   92         under specified circumstances; deleting an obsolete
   93         date; authorizing providers to withdraw funds from
   94         specified reserves with the office’s consent;
   95         providing procedures and requirements to request
   96         approval for certain withdrawals; providing procedures
   97         and requirements for the office’s review of such
   98         requests; authorizing the office, under certain
   99         circumstances, to order the immediate transfer of
  100         funds in the minimum liquid reserve to the custody of
  101         the Department of Financial Services; requiring
  102         facilities to file annual calculations of their
  103         minimum liquid reserves with the office and maintain
  104         such reserves beginning at specified periods; creating
  105         s. 651.043, F.S.; defining the term “management”;
  106         providing requirements for a contract for management;
  107         specifying procedures and requirements for providers
  108         filing notices of change in management with the
  109         office; specifying procedures and requirements for the
  110         office’s review of such changes; requiring management
  111         disapproved by the office to be removed within a
  112         specified timeframe; authorizing the office to take
  113         certain disciplinary actions; requiring providers to
  114         immediately remove management under certain
  115         circumstances; amending s. 651.051, F.S.; requiring
  116         all provider records and assets to be maintained in
  117         this state; requiring the office’s prior approval for
  118         a certain electronic storage platform; amending s.
  119         651.057, F.S.; conforming a cross-reference; amending
  120         s. 651.071, F.S.; revising construction as to the
  121         priority of continuing care and continuing care at
  122         home contracts in the event of receivership or
  123         liquidation proceedings against a provider; amending
  124         s. 651.091, F.S.; revising requirements for continuing
  125         care facilities and providers relating to the
  126         availability, distribution, and posting of reports and
  127         records; amending s. 651.105, F.S.; providing
  128         applicability of a provision of the Insurance Code
  129         relating to examinations and investigations to the
  130         office’s authority in examining certain applicants and
  131         providers; authorizing the office to examine certain
  132         parents, subsidiaries, or affiliates to ascertain the
  133         financial condition of a provider; creating s.
  134         651.1055, F.S.; requiring providers to cooperate with
  135         the office; amending s. 651.106, F.S.; authorizing the
  136         office to deny an application on certain grounds;
  137         revising and adding grounds for application denial or
  138         disciplinary action by the office; creating s.
  139         651.1065, F.S.; prohibiting certain persons of a
  140         continuing care retirement community, except with the
  141         office’s written permission, from permitting the
  142         retirement community to solicit or accept new
  143         continuing care contracts if they knew or should have
  144         known that the retirement community was impaired or
  145         insolvent; providing a criminal penalty; amending s.
  146         651.111, F.S.; authorizing residents to file
  147         complaints that include requests for an inspection of
  148         a provider’s records and related financial affairs;
  149         revising procedures of and requirements for the
  150         office’s review and response to such complaints;
  151         amending s. 651.114, F.S.; authorizing the office to
  152         request that a provider make a plan for obtaining
  153         compliance or solvency in delinquency proceedings;
  154         providing construction; defining the term “impaired”;
  155         requiring a provider to provide, within a specified
  156         timeframe, a certain notice to residents after the
  157         initiation of a delinquency proceeding; providing
  158         procedures and requirements for providers in
  159         delinquency proceedings; revising conditions under
  160         which the office’s rights are subordinate to the
  161         rights of a trustee or lender pursuant to certain
  162         instruments; creating s. 651.1141, F.S.; providing
  163         that violations of certain provisions constitute an
  164         immediate danger to the public health, safety, or
  165         welfare; authorizing the office to issue an immediate
  166         final order to cease and desist from such violations;
  167         amending s. 651.1151, F.S.; requiring providers to
  168         submit to the office certain administrative, vendor,
  169         and management contracts; authorizing the office to
  170         disapprove such contracts under certain circumstances;
  171         deleting an obsolete date; amending s. 651.121, F.S.;
  172         revising the composition of the Continuing Care
  173         Advisory Council; amending s. 651.125, F.S.; providing
  174         a criminal penalty for certain actions performed
  175         without a valid provisional certificate of authority;
  176         making a technical change; providing an effective
  177         date.
  178          
  179  Be It Enacted by the Legislature of the State of Florida:
  180  
  181         Section 1. Section 651.011, Florida Statutes, is amended to
  182  read:
  183         651.011 Definitions.—As used in this chapter, the term:
  184         (1) “Actuarial opinion” means an opinion issued by an
  185  actuary in accordance with the standards of practice adopted by
  186  the Actuarial Standards Board.
  187         (2) “Actuarial study” means an analysis addressing the
  188  current actuarial financial condition of a provider or the
  189  projected actuarial financial condition of an applicant, which
  190  is performed by an actuary in accordance with accepted actuarial
  191  principles and the standards of practice adopted by the
  192  Actuarial Standards Board and which includes all of the
  193  following:
  194         (a) An actuarial report.
  195         (b) A statement of actuarial opinion.
  196         (c) An actuarial balance sheet.
  197         (d) A cohort pricing analysis.
  198         (e) A cash-flow projection.
  199         (f) A description of the actuarial methodology, formulas,
  200  and assumptions used in the study.
  201         (g) Other information as reasonably requested by the
  202  office.
  203         (3) “Actuary” means an individual who is qualified to sign
  204  an actuarial opinion in accordance with the American Academy of
  205  Actuaries’ qualification standards and who is a member in good
  206  standing of the American Academy of Actuaries.
  207         (4)(1) “Advertising” means the dissemination of written,
  208  visual, or electronic information by a provider, or any person
  209  affiliated with or controlled by a provider, to potential
  210  residents or their representatives for the purpose of inducing
  211  such persons to subscribe to or enter into a contract for
  212  continuing care or continuing care at-home.
  213         (5) “Company information level event” means that any of the
  214  following has occurred:
  215         (a) A provider’s debt service coverage ratio is less than
  216  1.3:1.
  217         (b) A provider’s days cash on hand is less than 125.
  218         (c) The occupancy at a provider’s facility is less than 80
  219  percent, unless the provider’s debt service coverage ratio is
  220  greater than 3:1 or the provider’s days cash on hand is greater
  221  than 365.
  222         (6)(2) “Continuing care” or “care” means, pursuant to a
  223  contract, furnishing shelter and nursing care or personal
  224  services to a resident who resides in a facility, whether such
  225  nursing care or personal services are provided in the facility
  226  or in another setting designated in the contract for continuing
  227  care, by an individual not related by consanguinity or affinity
  228  to the resident, upon payment of an entrance fee.
  229         (7)(3) “Continuing Care Advisory Council” or “advisory
  230  council” means the council established in s. 651.121.
  231         (8)(4) “Continuing care at-home” means, pursuant to a
  232  contract other than a contract described in subsection (6) (2),
  233  furnishing to a resident who resides outside the facility the
  234  right to future access to shelter and nursing care or personal
  235  services, whether such services are provided in the facility or
  236  in another setting designated in the contract, by an individual
  237  not related by consanguinity or affinity to the resident, upon
  238  payment of an entrance fee.
  239         (9) “Corrective order” means an order issued by the office
  240  which specifies corrective actions the office has determined are
  241  required.
  242         (10)“Days cash on hand” means the quotient reached by
  243  dividing the value of the sum in paragraph (a) by the value of
  244  the quotient in paragraph (b):
  245         (a) The sum of unrestricted cash, unrestricted short- and
  246  long-term investments, and the minimum liquid reserve, where
  247  unrestricted cash, unrestricted short- and long-term
  248  investments, and minimum liquid reserve are as of the reporting
  249  date.
  250         (b) Operating expenses less depreciation and amortization,
  251  divided by 365. Operating expenses, depreciation, and
  252  amortization are each the sum of their respective values over
  253  the prior 12 months ending with the reporting date.
  254  
  255  With prior written approval of the office, a demand note or
  256  other parental guarantee may be considered a short- or long-term
  257  investment for the purposes of paragraph (a). However, the total
  258  of all demand notes issued by the parent may not, at any time,
  259  be more than the sum of unrestricted cash and unrestricted
  260  short- and long-term investments held by the parent.
  261         (11) “Debt service coverage ratio” means the quotient
  262  reached by dividing the value of the difference in paragraph (a)
  263  by the value of the sum in paragraph (b):
  264         (a)The sum of total expenses less interest expense on the
  265  facility, depreciation, and amortization, subtracted from the
  266  sum of total revenues and gross entrance fees received less
  267  earned entrance fees and refunds paid. Expenses, interest
  268  expense on the facility, depreciation, amortization, revenues,
  269  gross entrance fees, earned entrance fees, and refunds are each
  270  the sum of their respective values over the prior 12 months
  271  ending with the reporting date.
  272         (b) Total annual principal and interest expense due on the
  273  facility. Principal is as of the reporting date and interest due
  274  is the sum of the interest over the prior 12 months ending with
  275  the reporting date.
  276         (12)(5) “Entrance fee” means an initial or deferred payment
  277  of a sum of money or property made as full or partial payment
  278  for continuing care or continuing care at-home. An accommodation
  279  fee, admission fee, member fee, or other fee of similar form and
  280  application are considered to be an entrance fee.
  281         (13)(6) “Facility” means a place where continuing care is
  282  furnished and may include one or more physical plants on a
  283  primary or contiguous site or an immediately accessible site. As
  284  used in this subsection, the term “immediately accessible site”
  285  means a parcel of real property separated by a reasonable
  286  distance from the facility as measured along public
  287  thoroughfares, and the term “primary or contiguous site” means
  288  the real property contemplated in the feasibility study required
  289  by this chapter.
  290         (14)(7) “Generally accepted accounting principles” means
  291  those accounting principles and practices adopted by the
  292  Financial Accounting Standards Board and the American Institute
  293  of Certified Public Accountants, including Statement of Position
  294  90-8 with respect to any full year to which the statement
  295  applies.
  296         (15) “Impaired” means that any of the following have
  297  occurred:
  298         (a) A provider has failed to maintain its minimum liquid
  299  reserve as required in s. 651.035, unless the provider has
  300  received prior written approval from the office for a withdrawal
  301  pursuant to s. 651.035(6) and is compliant with the approved
  302  payment schedule; or
  303         (b)Beginning January 1, 2020:
  304         1. A provider’s debt service coverage ratio is less than
  305  1.3:1, the provider’s days cash on hand is less than 125, and
  306  the occupancy at the provider’s facility is less than 80
  307  percent;
  308         2. A provider’s debt service coverage ratio is less than
  309  1:1; or
  310         3. A provider’s days cash on hand is less than 60.
  311         (16)(8) “Insolvency” means the condition in which a the
  312  provider is unable to pay its obligations as they come due in
  313  the normal course of business.
  314         (17)(9) “Licensed” means that a the provider has obtained a
  315  certificate of authority from the office department.
  316         (18) “Manager” or “management company” means a person who
  317  administers the day-to-day business operations of a facility for
  318  a provider, subject to the policies, directives, and oversight
  319  of the provider.
  320         (19)(10) “Nursing care” means those services or acts
  321  rendered to a resident by an individual licensed or certified
  322  pursuant to chapter 464.
  323         (20) “Occupancy” means the total number of occupied units
  324  in a facility divided by the total number of units in the
  325  facility.
  326         (21)(11) “Personal services” has the same meaning as in s.
  327  429.02.
  328         (22)(12) “Provider” means the owner or operator, whether a
  329  natural person, partnership or other unincorporated association,
  330  however organized, trust, or corporation, of an institution,
  331  building, residence, or other place, whether operated for profit
  332  or not, which owner or operator provides continuing care or
  333  continuing care at-home for a fixed or variable fee, or for any
  334  other remuneration of any type, whether fixed or variable, for
  335  the period of care, payable in a lump sum or lump sum and
  336  monthly maintenance charges or in installments. The term does
  337  not apply to an entity that has existed and continuously
  338  operated a facility located on at least 63 acres in this state
  339  providing residential lodging to members and their spouses for
  340  at least 66 years on or before July 1, 1989, and has the
  341  residential capacity of 500 persons, is directly or indirectly
  342  owned or operated by a nationally recognized fraternal
  343  organization, is not open to the public, and accepts only its
  344  members and their spouses as residents.
  345         (23)(13) “Records” means all documents, correspondence, and
  346  the permanent financial, directory, and personnel information
  347  and data maintained by a provider pursuant to this chapter,
  348  regardless of the physical form, characteristics, or means of
  349  transmission.
  350         (24) “Regulatory action level event” means that any two of
  351  the following have occurred:
  352         (a) The provider’s debt service coverage ratio is less than
  353  1.3:1.
  354         (b) The provider’s days cash on hand is less than 125.
  355         (c) The occupancy at the provider’s facility is less than
  356  80 percent.
  357         (25)(14) “Resident” means a purchaser of, a nominee of, or
  358  a subscriber to a continuing care or continuing care at-home
  359  contract. Such contract does not give the resident a part
  360  ownership of the facility in which the resident is to reside,
  361  unless expressly provided in the contract.
  362         (26)(15) “Shelter” means an independent living unit, room,
  363  apartment, cottage, villa, personal care unit, nursing bed, or
  364  other living area within a facility set aside for the exclusive
  365  use of one or more identified residents.
  366         Section 2. Section 651.012, Florida Statutes, is amended to
  367  read:
  368         651.012 Exempted facility; written disclosure of
  369  exemption.—Any facility exempted under ss. 632.637(1)(e) and
  370  651.011(22) 651.011(12) must provide written disclosure of such
  371  exemption to each person admitted to the facility after October
  372  1, 1996. This disclosure must be written using language likely
  373  to be understood by the person and must briefly explain the
  374  exemption.
  375         Section 3. Subsection (2) of section 651.013, Florida
  376  Statutes, is amended to read:
  377         651.013 Chapter exclusive; applicability of other laws.—
  378         (2) In addition to other applicable provisions cited in
  379  this chapter, the office has the authority granted under ss.
  380  624.302 and 624.303, 624.307-624.312, 624.318 624.308-624.312,
  381  624.319(1)-(3), 624.320-624.321, 624.324, and 624.34, and
  382  624.422 of the Florida Insurance Code to regulate providers of
  383  continuing care and continuing care at-home.
  384         Section 4. Section 651.019, Florida Statutes, is amended to
  385  read:
  386         651.019 New financing, additional financing, or
  387  refinancing.—
  388         (1)(a)A provider shall provide notice to the residents’
  389  council of any new financing or refinancing at least 30 days
  390  before the closing date of the financing or refinancing
  391  transaction. The notice must include a general outline and the
  392  intended use of proceeds.
  393         (b) If the facility does not have a residents’ council, the
  394  facility must make available, in the same manner as other
  395  community notices, the information required by paragraph (a)
  396  After issuance of a certificate of authority, the provider shall
  397  submit to the office a general outline, including intended use
  398  of proceeds, with respect to any new financing, additional
  399  financing, or refinancing at least 30 days before the closing
  400  date of such financing transaction.
  401         (2) Within 30 days after the closing date of such financing
  402  or refinancing transaction, The provider shall furnish any
  403  information the office may reasonably request in connection with
  404  any new financing, additional financing, or refinancing,
  405  including, but not limited to, the financing agreements and any
  406  related documents, escrow or trust agreements, and statistical
  407  or financial data. the provider shall also submit to the office
  408  copies of executed financing documents, any related documents,
  409  escrow or trust agreements, and statistical or financial data
  410  prepared in support of such financing or refinancing
  411  transaction, and a copy of all documents required to be
  412  submitted to the residents’ council under paragraph (1)(a)
  413  within 30 days after the closing date.
  414         Section 5. Section 651.021, Florida Statutes, is amended to
  415  read:
  416         651.021 Certificate of authority required.—
  417         (1)A No person may not engage in the business of providing
  418  continuing care, issuing contracts for continuing care or
  419  continuing care at-home, or constructing a facility for the
  420  purpose of providing continuing care in this state without a
  421  certificate of authority obtained from the office as provided in
  422  this chapter. This section subsection does not prohibit the
  423  preparation of a construction site or construction of a model
  424  residence unit for marketing purposes, or both. The office may
  425  allow the purchase of an existing building for the purpose of
  426  providing continuing care if the office determines that the
  427  purchase is not being made to circumvent the prohibitions in
  428  this section.
  429         (2) Written approval must be obtained from the office
  430  before commencing construction or marketing for an expansion of
  431  a certificated facility equivalent to the addition of at least
  432  20 percent of existing units or 20 percent or more in the number
  433  of continuing care at-home contracts. This provision does not
  434  apply to construction for which a certificate of need from the
  435  Agency for Health Care Administration is required.
  436         (a) For providers that offer both continuing care and
  437  continuing care at-home, the 20 percent is based on the total of
  438  both existing units and existing contracts for continuing care
  439  at-home. For purposes of this subsection, an expansion includes
  440  increases in the number of constructed units or continuing care
  441  at-home contracts or a combination of both.
  442         (b) The application for such approval shall be on forms
  443  adopted by the commission and provided by the office. The
  444  application must include the feasibility study required by s.
  445  651.022(3) or s. 651.023(1)(b) and such other information as
  446  required by s. 651.023. If the expansion is only for continuing
  447  care at-home contracts, an actuarial study prepared by an
  448  independent actuary in accordance with standards adopted by the
  449  American Academy of Actuaries which presents the financial
  450  impact of the expansion may be substituted for the feasibility
  451  study.
  452         (c) In determining whether an expansion should be approved,
  453  the office shall use the criteria provided in ss. 651.022(6) and
  454  651.023(4).
  455         Section 6. Subsection (2), paragraph (b) of subsection (5),
  456  and subsections (6) and (8) of section 651.022, Florida
  457  Statutes, are amended to read:
  458         651.022 Provisional certificate of authority; application.—
  459         (2) The application for a provisional certificate of
  460  authority must shall be on a form prescribed by the commission
  461  and must shall contain the following information:
  462         (a) If the applicant or provider is a corporation, a copy
  463  of the articles of incorporation and bylaws; if the applicant or
  464  provider is a partnership or other unincorporated association, a
  465  copy of the partnership agreement, articles of association, or
  466  other membership agreement; and, if the applicant or provider is
  467  a trust, a copy of the trust agreement or instrument.
  468         (b) The full names, residences, and business addresses of:
  469         1. The proprietor, if the applicant or provider is an
  470  individual.
  471         2. Every partner or member, if the applicant or provider is
  472  a partnership or other unincorporated association, however
  473  organized, having fewer than 50 partners or members, together
  474  with the business name and address of the partnership or other
  475  organization.
  476         3. The principal partners or members, if the applicant or
  477  provider is a partnership or other unincorporated association,
  478  however organized, having 50 or more partners or members,
  479  together with the business name and business address of the
  480  partnership or other organization. If such unincorporated
  481  organization has officers and a board of directors, the full
  482  name and business address of each officer and director may be
  483  set forth in lieu of the full name and business address of its
  484  principal members.
  485         4. The corporation and each officer and director thereof,
  486  if the applicant or provider is a corporation.
  487         5. Every trustee and officer, if the applicant or provider
  488  is a trust.
  489         6. The manager, whether an individual, corporation,
  490  partnership, or association.
  491         7. Any stockholder holding at least a 10 percent interest
  492  in the operations of the facility in which the care is to be
  493  offered.
  494         8. Any person whose name is required to be provided in the
  495  application under this paragraph and who owns any interest in or
  496  receives any remuneration from, directly or indirectly, any
  497  professional service firm, association, trust, partnership, or
  498  corporation providing goods, leases, or services to the facility
  499  for which the application is made, with a real or anticipated
  500  value of $10,000 or more, and the name and address of the
  501  professional service firm, association, trust, partnership, or
  502  corporation in which such interest is held. The applicant shall
  503  describe such goods, leases, or services and the probable cost
  504  to the facility or provider and shall describe why such goods,
  505  leases, or services should not be purchased from an independent
  506  entity.
  507         9. Any person, corporation, partnership, association, or
  508  trust owning land or property leased to the facility, along with
  509  a copy of the lease agreement.
  510         10. Any affiliated parent or subsidiary corporation or
  511  partnership.
  512         (c)1. Evidence that the persons described in paragraph (b)
  513  are competent and trustworthy applicant is reputable and of
  514  responsible character. If the applicant is a firm, association,
  515  organization, partnership, business trust, corporation, or
  516  company, the form must further shall require evidence that the
  517  members or shareholders are reputable and of responsible
  518  character, and the person in charge of providing care under a
  519  certificate of authority, are competent and trustworthy shall
  520  likewise be required to produce evidence of being reputable and
  521  of responsible character.
  522         2. Evidence satisfactory to the office of the ability of
  523  the applicant to comply with the provisions of this chapter and
  524  with rules adopted by the commission pursuant to this chapter.
  525         3. A statement of whether a person identified in the
  526  application for a provisional certificate of authority or the
  527  administrator or manager of the facility, if such person has
  528  been designated, or any such person living in the same location:
  529         a. Has been convicted of a felony or has pleaded nolo
  530  contendere to a felony charge, or has been held liable or has
  531  been enjoined in a civil action by final judgment, if the felony
  532  or civil action involved fraud, embezzlement, fraudulent
  533  conversion, or misappropriation of property.
  534         b. Is subject to a currently effective injunctive or
  535  restrictive order or federal or state administrative order
  536  relating to business activity or health care as a result of an
  537  action brought by a public agency or department, including,
  538  without limitation, an action affecting a license under chapter
  539  400 or chapter 429.
  540  
  541  The statement must shall set forth the court or agency, the date
  542  of conviction or judgment, and the penalty imposed or damages
  543  assessed, or the date, nature, and issuer of the order. Before
  544  determining whether a provisional certificate of authority is to
  545  be issued, the office may make an inquiry to determine the
  546  accuracy of the information submitted pursuant to subparagraphs
  547  1., 2., and 3. 1. and 2.
  548         (d) The contracts for continuing care and continuing care
  549  at-home to be entered into between the provider and residents
  550  which meet the minimum requirements of s. 651.055 or s. 651.057
  551  and which include a statement describing the procedures required
  552  by law relating to the release of escrowed entrance fees. Such
  553  statement may be furnished through an addendum.
  554         (e) Any advertisement or other written material proposed to
  555  be used in the solicitation of residents.
  556         (f) Such other reasonable data, financial statements, and
  557  pertinent information as the commission or office may reasonably
  558  require with respect to the provider or the facility, including
  559  the most recent audited financial statements of comparable
  560  facilities currently or previously owned, managed, or developed
  561  by the applicant or its principal, to assist in determining the
  562  financial viability of the project and the management
  563  capabilities of its managers and owners.
  564         (g) The forms of the residency contracts, reservation
  565  contracts, escrow agreements, and wait list contracts, if
  566  applicable, which are proposed to be used by the provider in the
  567  furnishing of care. The office shall approve contracts and
  568  escrow agreements that comply with ss. 651.023(1)(c), 651.033,
  569  651.055, and 651.057. Thereafter, no other form of contract or
  570  agreement may be used by the provider until it has been
  571  submitted to the office and approved.
  572         (h) An actuarial study.
  573  
  574  If any material change occurs in the facts set forth in an
  575  application filed with the office pursuant to this subsection,
  576  an amendment setting forth such changes must be immediately
  577  filed with the office, and a copy of the amendment must be sent
  578  by registered mail to the principal office of the facility and
  579  to the principal office of the controlling company.
  580         (5)
  581         (b) An application is deemed complete upon receipt of all
  582  requested information and correction of any error or omission of
  583  which the applicant was timely notified or when the time for
  584  such notification has expired. The office shall notify the
  585  applicant in writing of the date on which the application was
  586  deemed complete Within 15 days after receipt of all of the
  587  requested additional information, the office shall notify the
  588  applicant in writing that all of the requested information has
  589  been received and the application is deemed to be complete as of
  590  the date of the notice. Failure to so notify the applicant in
  591  writing within the 15-day period shall constitute acknowledgment
  592  by the office that it has received all requested additional
  593  information, and the application shall be deemed to be complete
  594  for purposes of review upon the date of the filing of all of the
  595  requested additional information.
  596         (6) Within 90 45 days after the date an application is
  597  deemed complete as set forth in paragraph (5)(b), the office
  598  shall complete its review and issue a provisional certificate of
  599  authority to the applicant based upon its review and a
  600  determination that the application meets all requirements of
  601  law, that the feasibility study was based on sufficient data and
  602  reasonable assumptions, and that the applicant will be able to
  603  provide continuing care or continuing care at-home as proposed
  604  and meet all financial and contractual obligations related to
  605  its operations, including the financial requirements of this
  606  chapter. If the application is denied, the office shall notify
  607  the applicant in writing, citing the specific failures to meet
  608  the provisions of this chapter. Such denial entitles the
  609  applicant to a hearing pursuant to chapter 120.
  610         (8) The office may shall not approve any application that
  611  which includes in the plan of financing any encumbrance of the
  612  operating reserves required by this chapter.
  613         Section 7. Paragraph (c) of subsection (1), subsections (2)
  614  and (3), paragraph (a) of subsection (4), paragraph (b) of
  615  subsection (5), and subsections (8) and (9) of section 651.023,
  616  Florida Statutes, are amended, paragraph (i) is added to
  617  subsection (1) of that section, and paragraph (a) of subsection
  618  (1) of that section is republished, to read:
  619         651.023 Certificate of authority; application.—
  620         (1) After issuance of a provisional certificate of
  621  authority, the office shall issue to the holder of such
  622  provisional certificate a certificate of authority if the holder
  623  of the provisional certificate provides the office with the
  624  following information:
  625         (a) Any material change in status with respect to the
  626  information required to be filed under s. 651.022(2) in the
  627  application for the provisional certificate.
  628         (c) Subject to subsection (4), a provider may submit an
  629  application for a certificate of authority and any required
  630  exhibits upon submission of proof that the project has a minimum
  631  of 50 30 percent of the units reserved for which the provider is
  632  charging an entrance fee. This does not apply to an application
  633  for a certificate of authority for the acquisition of a facility
  634  for which a certificate of authority was issued before October
  635  1, 1983, to a provider who subsequently becomes a debtor in a
  636  case under the United States Bankruptcy Code, 11 U.S.C. ss. 101
  637  et seq., or to a provider for which the department has been
  638  appointed receiver pursuant to part II of chapter 631.
  639         (i) An actuarial study.
  640         (2) Within 30 days after receipt of the information
  641  required under subsection (1), the office shall examine such
  642  information and notify the provider in writing, specifically
  643  requesting any additional information the office is permitted by
  644  law to require. An application is deemed complete upon receipt
  645  of all requested information and correction of any error or
  646  omission of which the applicant was timely notified or when the
  647  time for such notification has expired. The office shall notify
  648  the applicant in writing of the date on which the application
  649  was deemed complete Within 15 days after receipt of all of the
  650  requested additional information, the office shall notify the
  651  provider in writing that all of the requested information has
  652  been received and the application is deemed to be complete as of
  653  the date of the notice. Failure to notify the applicant in
  654  writing within the 15-day period constitutes acknowledgment by
  655  the office that it has received all requested additional
  656  information, and the application shall be deemed complete for
  657  purposes of review on the date of filing all of the required
  658  additional information.
  659         (3) Within 90 45 days after an application is deemed
  660  complete as set forth in subsection (2), and upon completion of
  661  the remaining requirements of this section, the office shall
  662  complete its review and issue or deny a certificate of authority
  663  to the holder of a provisional certificate of authority. If a
  664  certificate of authority is denied, the office must notify the
  665  holder of the provisional certificate in writing, citing the
  666  specific failures to satisfy the provisions of this chapter. If
  667  denied, the holder of the provisional certificate is entitled to
  668  an administrative hearing pursuant to chapter 120.
  669         (4) The office shall issue a certificate of authority upon
  670  determining that the applicant meets all requirements of law and
  671  has submitted all of the information required by this section,
  672  that all escrow requirements have been satisfied, and that the
  673  fees prescribed in s. 651.015(2) have been paid.
  674         (a) A Notwithstanding satisfaction of the 30-percent
  675  minimum reservation requirement of paragraph (1)(c), no
  676  certificate of authority may not shall be issued until the
  677  project has a minimum of 50 percent of the units reserved for
  678  which the provider is charging an entrance fee, and proof is
  679  provided to the office. If a provider offering continuing care
  680  at-home is applying for a certificate of authority or approval
  681  of an expansion pursuant to s. 651.021(2), the same minimum
  682  reservation requirements must be met for the continuing care and
  683  continuing care at-home contracts, independently of each other.
  684         (5) Up to 25 percent of the moneys paid for all or any part
  685  of an initial entrance fee may be included or pledged for the
  686  construction or purchase of the facility or as security for
  687  long-term financing. The term “initial entrance fee” means the
  688  total entrance fee charged by the facility to the first occupant
  689  of a unit.
  690         (b) For an expansion as provided in s. 651.0246 s.
  691  651.021(2), a minimum of 75 percent of the moneys paid for all
  692  or any part of an initial entrance fee collected for continuing
  693  care and 50 percent of the moneys paid for all or any part of an
  694  initial fee collected for continuing care at-home shall be
  695  placed in an escrow account or on deposit with the department as
  696  prescribed in s. 651.033.
  697         (8) The timeframes provided under s. 651.022(5) and (6)
  698  apply to applications submitted under s. 651.021(2). The office
  699  may not issue a certificate of authority to a facility that does
  700  not have a component that is to be licensed pursuant to part II
  701  of chapter 400 or to part I of chapter 429 or that does not
  702  offer personal services or nursing services through written
  703  contractual agreement. A written contractual agreement must be
  704  disclosed in the contract for continuing care or continuing care
  705  at-home and is subject to the provisions of s. 651.1151,
  706  relating to administrative, vendor, and management contracts.
  707         (9) The office may not approve an application that includes
  708  in the plan of financing any encumbrance of the operating
  709  reserves required by this chapter.
  710         Section 8. Section 651.024, Florida Statutes, is amended to
  711  read:
  712         651.024 Acquisition.—
  713         (1) A person who seeks to acquire a provider; assume the
  714  role of general partner of a provider; or otherwise assume
  715  ownership or possession of, or control over, 10 percent or more
  716  of a provider’s assets is issued a certificate of authority to
  717  operate a continuing care facility or a provisional certificate
  718  of authority shall be subject to the provisions of s. 628.4615
  719  and is not required to make filings pursuant to s. 651.022 or s.
  720  651.023.
  721         (2) A person who seeks to acquire, and become the provider
  722  for, a facility is subject to s. 651.0245 and is not required to
  723  make filings pursuant to ss. 628.4615, 651.022, and 651.023.
  724         (3) A person may rebut a presumption of control by filing a
  725  disclaimer of control with the office on a form prescribed by
  726  the commission. The disclaimer must fully disclose all material
  727  relationships and bases for affiliation between the person and
  728  the provider or facility, as well as the basis for disclaiming
  729  the affiliation. In lieu of such form, a person or acquiring
  730  party may file with the office a copy of a Schedule 13G filed
  731  with the Securities and Exchange Commission pursuant to Rule
  732  13d-1(b) or (c), 17 C.F.R. s. 240.13d-1, under the Securities
  733  Exchange Act of 1934, as amended. After a disclaimer has been
  734  filed, the provider or facility is relieved of any duty to
  735  register or report under this section which may arise out of the
  736  provider’s or facility’s relationship with the person, unless
  737  the office disallows the disclaimer.
  738         Section 9. Section 651.0245, Florida Statutes, is created
  739  to read:
  740         651.0245 Application for the simultaneous acquisition of a
  741  facility and issuance of a certificate of authority.—
  742         (1) Except with the prior written approval of the office, a
  743  person may not, individually or in conjunction with any
  744  affiliated person of such person, directly or indirectly acquire
  745  a facility operating under a subsisting certificate of authority
  746  and engage in the business of providing continuing care.
  747         (2) An applicant must:
  748         (a) Comply with the notice requirements of s.
  749  628.4615(2)(a); and
  750         (b) File an application in the form required by the office
  751  and cooperate with the office’s review of the application.
  752         (3) The commission shall adopt by rule application
  753  requirements equivalent to those described in ss. 628.4615(4)
  754  and (5), 651.022(2)(a)-(g) and (3), and 651.023(1)(b). The
  755  office shall review the application and issue an approval or
  756  disapproval of the filing in accordance with ss. 628.4615(6)(a)
  757  and (c), (7)-(12), (13)(c)-(e), and (14); 651.022(8); and
  758  651.023(1)(b).
  759         (4) As used in this section, the term:
  760         (a) “Controlling company” means any corporation, trust, or
  761  association that directly or indirectly owns 25 percent or more
  762  of the voting securities of one or more facilities that are
  763  stock corporations, or 25 percent or more of the ownership
  764  interest of one or more facilities that are not stock
  765  corporations.
  766         (b) “Natural person” means an individual.
  767         (c) “Person” includes a natural person, corporation,
  768  association, trust, general partnership, limited partnership,
  769  joint venture, firm, proprietorship, or any other entity that
  770  may hold a license or certificate as a facility.
  771         (5)In addition to the facility or the controlling party,
  772  the office has standing to petition a circuit court as described
  773  in s. 628.4615(9).
  774         (6) A person may rebut a presumption of control by filing a
  775  disclaimer of control with the office on a form prescribed by
  776  the commission. The disclaimer must fully disclose all material
  777  relationships and bases for affiliation between the person and
  778  the provider or facility, as well as the basis for disclaiming
  779  the affiliation. In lieu of such form, a person or acquiring
  780  party may file with the office a copy of a Schedule 13G filed
  781  with the Securities and Exchange Commission pursuant to Rule
  782  13d-1(b) or (c), 17 C.F.R. s. 240.13d-1, under the Securities
  783  Exchange Act of 1934, as amended. After a disclaimer has been
  784  filed, the provider or facility is relieved of any duty to
  785  register or report under this section which may arise out of the
  786  provider’s or facility’s relationship with the person, unless
  787  the office disallows the disclaimer.
  788         (7) The commission may adopt, amend, or repeal rules
  789  pursuant to chapter 120 as necessary to administer this section.
  790         Section 10. Section 651.0246, Florida Statutes, is created
  791  to read:
  792         651.0246 Expansions.—
  793         (1)(a)A provider must obtain written approval from the
  794  office before commencing construction or marketing for an
  795  expansion of a certificated facility equivalent to the addition
  796  of at least 20 percent of existing units or 20 percent or more
  797  in the number of continuing care at-home contracts. This section
  798  does not apply to construction for which a certificate of need
  799  from the Agency for Health Care Administration is required.
  800         (b) The application for such approval must be on forms
  801  adopted by the commission and provided by the office. The
  802  application must include the feasibility study required by this
  803  section and such other information as required by s. 651.023 or
  804  as reasonably requested by the office. If the expansion is only
  805  for continuing care at-home contracts, an actuarial study
  806  prepared by an independent actuary in accordance with standards
  807  adopted by the American Academy of Actuaries which presents the
  808  financial impact of the expansion may be substituted for the
  809  feasibility study.
  810         (c) In determining whether an expansion should be approved,
  811  the office shall consider:
  812         1. Whether the application meets all requirements of law;
  813         2. Whether the feasibility study was based on sufficient
  814  data and reasonable assumptions; and
  815         3.Whether the applicant will be able to provide continuing
  816  care or continuing care at-home as proposed and meet all
  817  financial obligations related to its operations, including the
  818  financial requirements of this chapter.
  819  
  820  If the application is denied, the office must notify the
  821  applicant in writing, citing the specific failures to meet the
  822  provisions of this chapter. Such denial entitles the applicant
  823  to a hearing pursuant to chapter 120.
  824         (2) A provider applying for expansion of a certificated
  825  facility shall submit all of the following:
  826         (a) An actuarial study.
  827         (b) A feasibility study prepared by an independent
  828  certified public accountant. The feasibility study must include
  829  at least the following information:
  830         1. A description of the facility and proposed expansion,
  831  including the location, size, anticipated completion date, and
  832  the proposed construction program.
  833         2. An identification and evaluation of the primary and
  834  secondary market areas of the facility and the projected unit
  835  sales per month.
  836         3. Projected revenues, including anticipated entrance fees;
  837  monthly service fees; nursing care rates, if applicable; and all
  838  other sources of revenue, including the total amount of debt
  839  financing required.
  840         4. Projected expenses, including for staffing requirements
  841  and salaries; the cost of property, plant, and equipment,
  842  including depreciation expense; interest expense; marketing
  843  expense; and other operating expenses.
  844         5. Current assets and liabilities of the applicant.
  845         6. Expectations of the financial condition of the project,
  846  including the projected cash flow and a projected balance sheet
  847  and an estimate of the funds anticipated to be necessary to
  848  cover startup losses.
  849         7. The inflation factor, if any, assumed in the study for
  850  the proposed expansion and how and where it is applied.
  851         8. Project costs, marketing projections, resident fees and
  852  charges, the competition, resident contract provisions, and
  853  other factors that affect the feasibility of the facility.
  854         9. The name of the person who prepared the feasibility
  855  study and the experience of such person in preparing similar
  856  studies or otherwise consulting in the field of continuing care.
  857         10. Financial forecasts or projections prepared in
  858  accordance with standards adopted by the American Institute of
  859  Certified Public Accountants or in accordance with standards for
  860  feasibility studies for continuing care retirement communities
  861  adopted by the Actuarial Standards Board.
  862         11. An independent evaluation and examination opinion, or a
  863  comparable opinion acceptable to the office, by the independent
  864  certified public accountant who prepared the study, of the
  865  underlying assumptions used as a basis for the forecasts or
  866  projections in the study and that the assumptions are reasonable
  867  and proper and the project as proposed is feasible. The
  868  feasibility study must contain an examination opinion for the
  869  first 3 years of operations, and financial projections having a
  870  compilation opinion for the next 3 years.
  871         (c) Such other reasonable data, financial statements, and
  872  pertinent information as the commission or office may require
  873  with respect to the applicant or the facility to determine the
  874  financial status of the facility and the management capabilities
  875  of its managers and owners.
  876         (3) A minimum of 75 percent of the moneys paid for all or
  877  any part of an initial entrance fee or reservation deposit
  878  collected for continuing care and 50 percent of the moneys paid
  879  for all or any part of an initial fee collected for continuing
  880  care at-home must be placed in an escrow account or on deposit
  881  with the department as prescribed in s. 651.033. Up to 25
  882  percent of the moneys paid for all or any part of an initial
  883  entrance fee or reservation deposit may be included or pledged
  884  for the construction or purchase of the facility or as security
  885  for long-term financing. As used in this section, the term
  886  “initial entrance fee” means the total entrance fee charged by
  887  the facility to the first occupant of a unit.
  888  
  889  Entrance fees and reservation deposits collected for expansions
  890  must be held pursuant to the escrow requirements of s.
  891  651.023(5) and (6).
  892         (4) The provider is entitled to secure release of the
  893  moneys held in escrow within 7 days after receipt by the office
  894  of an affidavit from the provider, along with appropriate copies
  895  to verify, and notification to the escrow agent by certified
  896  mail, that the following conditions have been satisfied:
  897         (a) A certificate of occupancy has been issued.
  898         (b) Payment in full has been received for at least 70
  899  percent of the total units of a phase or of the total of the
  900  combined phases constructed. If a provider offering continuing
  901  care at-home is applying for a release of escrowed entrance
  902  fees, the same minimum requirement must be met for the
  903  continuing care and continuing care at-home contracts
  904  independently of each other.
  905         (c) The consultant who prepared the feasibility study
  906  required by this section or a substitute approved by the office
  907  certifies within 12 months before the date of filing for office
  908  approval that there has been no material adverse change in
  909  status with regard to the feasibility study. If a material
  910  adverse change exists at the time of submission, sufficient
  911  information acceptable to the office and the feasibility
  912  consultant must be submitted which remedies the adverse
  913  condition.
  914         (d) Proof that commitments have been secured or that a
  915  documented plan adopted by the applicant has been approved by
  916  the office for long-term financing.
  917         (e) Proof that the provider has sufficient funds to meet
  918  the requirements of s. 651.035, which may include funds
  919  deposited in the initial entrance fee account.
  920         (f) Proof as to the intended application of the proceeds
  921  upon release and proof that the entrance fees, when released,
  922  will be applied as represented to the office.
  923  
  924  Notwithstanding chapter 120, only the provider, the escrow
  925  agent, and the office have a substantial interest in any office
  926  decision regarding release of escrow funds in any proceedings
  927  under chapter 120 or this chapter regarding the release of
  928  escrow funds.
  929         (5)(a) Within 30 days after receipt of an application for
  930  expansion, the office shall examine the application and shall
  931  notify the applicant in writing, specifically setting forth and
  932  specifically requesting any additional information the office is
  933  permitted by law to require. If the application submitted is
  934  determined by the office to be substantially incomplete so as to
  935  require substantial additional information, including
  936  biographical information, the office may return the application
  937  to the applicant with a written notice that the application as
  938  received is substantially incomplete and therefore unacceptable
  939  for filing without further action required by the office. Any
  940  filing fee received must be refunded to the applicant.
  941         (b) An application is deemed complete upon receipt of all
  942  requested information and the correction of any error or
  943  omission for which the applicant was timely notified or when the
  944  time for such notification has expired. The office shall notify
  945  the applicant in writing of the date on which the application
  946  was deemed complete.
  947         (6) Within 90 days after the date on which an application
  948  is deemed complete as set forth in paragraph (5)(b), the office
  949  shall complete its review and, based upon its review, approve an
  950  expansion by the applicant and issue a determination that the
  951  application meets all requirements of law, that the feasibility
  952  study was based on sufficient data and reasonable assumptions,
  953  and that the applicant will be able to provide continuing care
  954  or continuing care at-home as proposed and meet all financial
  955  and contractual obligations related to its operations, including
  956  the financial requirements of this chapter. If the application
  957  is denied, the office must notify the applicant in writing,
  958  citing the specific failures to meet the provisions of this
  959  chapter. Such denial entitles the applicant to a hearing
  960  pursuant to chapter 120.
  961         Section 11. Section 651.025, Florida Statutes, is created
  962  to read:
  963         651.025 Insolvent facilities or providers.—A person who was
  964  a proprietor, general partner, member, officer, director,
  965  trustee, or manager of an entity and who served in that capacity
  966  within the 2-year period before the date the entity became
  967  insolvent or bankrupt may not thereafter serve as a proprietor,
  968  general partner, member, officer, director, trustee, or manager
  969  of a facility or provider authorized in this state unless such
  970  person demonstrates that his or her personal actions or
  971  omissions were not a significant contributing cause to the
  972  insolvency or bankruptcy.
  973         Section 12. Present paragraph (f) of subsection (2) of
  974  section 651.026, Florida Statutes, is redesignated as paragraph
  975  (e), present paragraph (e) of subsection (2) and subsection (3)
  976  of that section are amended, and paragraph (a) of subsection (2)
  977  of that section is republished, to read:
  978         651.026 Annual reports.—
  979         (2) The annual report shall be in such form as the
  980  commission prescribes and shall contain at least the following:
  981         (a) Any change in status with respect to the information
  982  required to be filed under s. 651.022(2).
  983         (e) Each facility shall file with the office annually,
  984  together with the annual report required by this section, a
  985  computation of its minimum liquid reserve calculated in
  986  accordance with s. 651.035 on a form prescribed by the
  987  commission.
  988         (3) The commission shall adopt by rule additional
  989  meaningful measures of assessing the financial viability of a
  990  provider. The rule may include the following factors:
  991         (a) Debt service coverage ratios.
  992         (b) Current ratios.
  993         (b)(c) Adjusted current ratios.
  994         (c)(d) Cash flows.
  995         (e) Occupancy rates.
  996         (d)(f) Other measures, ratios, or trends.
  997         (e)(g) Other factors as may be appropriate.
  998         Section 13. Section 651.0261, Florida Statutes, is amended
  999  to read:
 1000         651.0261 Quarterly and monthly statements.—
 1001         (1) Within 45 days after the end of each fiscal quarter,
 1002  each provider shall file a quarterly unaudited financial
 1003  statement of the provider or of the facility in the form
 1004  prescribed by rule of the commission and a detailed listing of
 1005  the assets maintained in the liquid reserve as required under s.
 1006  651.035. This requirement may be waived by the office upon
 1007  written request from a provider accredited under s. 651.028.
 1008         (2) If the office finds, pursuant to rules of the
 1009  commission, that such information is needed to properly monitor
 1010  the financial condition of a provider or facility or is
 1011  otherwise needed to protect the public interest, the office may
 1012  require the provider to file:
 1013         (a) Within 25 days after the end of each month, a monthly
 1014  unaudited financial statement of the provider or of the facility
 1015  in the form prescribed by the commission by rule and a detailed
 1016  listing of the assets maintained in the liquid reserve as
 1017  required under s. 651.035, within 45 days after the end of each
 1018  fiscal quarter, a quarterly unaudited financial statement of the
 1019  provider or of the facility in the form prescribed by the
 1020  commission by rule. The commission may by rule require all or
 1021  part of the statements or filings required under this section to
 1022  be submitted by electronic means in a computer-readable form
 1023  compatible with the electronic data format specified by the
 1024  commission.
 1025         (b) Such other data, financial statements, and pertinent
 1026  information as the commission or office may reasonably require
 1027  with respect to the provider or the facility, or its directors,
 1028  trustees, members, branches, subsidiaries, or affiliates, to
 1029  determine the financial status of the provider or of the
 1030  facility and the management capabilities of its managers and
 1031  owners.
 1032         (3) A filing under subsection (2) may be required if any of
 1033  the following apply:
 1034         (a) The facility has been operational for less than 2
 1035  years.
 1036         (b) The provider is:
 1037         1. Subject to administrative supervision proceedings;
 1038         2. Required to submit a company information report to the
 1039  office pursuant to s. 651.034(1);
 1040         3. Subject to a corrective action plan;
 1041         4. Subject to refinancing;
 1042         5. Subject to an acquisition; or
 1043         6. Subject to delinquency or receivership proceedings.
 1044         (c) The provider or facility displays a declining financial
 1045  position.
 1046         (4) The commission may by rule require all or part of the
 1047  statements or filings required under this section to be
 1048  submitted by electronic means in a computer-readable form
 1049  compatible with an electronic data format specified by the
 1050  commission.
 1051         Section 14. Paragraphs (c) and (d) of subsection (1) and
 1052  subsections (2) and (3) of section 651.033, Florida Statutes,
 1053  are amended, and subsection (6) is added to that section, to
 1054  read:
 1055         651.033 Escrow accounts.—
 1056         (1) When funds are required to be deposited in an escrow
 1057  account pursuant to s. 651.022, s. 651.023, s. 651.035, or s.
 1058  651.055:
 1059         (c) Any agreement establishing an escrow account required
 1060  under the provisions of this chapter is shall be subject to
 1061  approval by the office. The agreement must shall be in writing
 1062  and shall contain, in addition to any other provisions required
 1063  by law, a provision whereby the escrow agent agrees to abide by
 1064  the duties imposed by paragraphs (b) and (e), (3)(a), (3)(b),
 1065  and (5)(a) and subsection (6) under this section.
 1066         (d) All funds deposited in an escrow account, if invested,
 1067  must shall be invested in cash, cash equivalents, mutual funds,
 1068  equities, or investment grade bonds as set forth in part II of
 1069  chapter 625; however, such investment may not diminish the funds
 1070  held in escrow below the amount required by this chapter. Funds
 1071  deposited in an escrow account are not subject to charges by the
 1072  escrow agent except escrow agent fees associated with
 1073  administering the accounts, or subject to any liens, judgments,
 1074  garnishments, creditor’s claims, or other encumbrances against
 1075  the provider or facility except as provided in s. 651.035(1).
 1076         (2) Notwithstanding s. 651.035(7), In addition, the escrow
 1077  agreement shall provide that the escrow agent or another person
 1078  designated to act in the escrow agent’s place and the provider,
 1079  except as otherwise provided in s. 651.035, shall notify the
 1080  office in writing at least 10 days before the withdrawal of any
 1081  portion of any funds required to be escrowed under the
 1082  provisions of s. 651.035. However, in the event of an emergency
 1083  and upon petition by the provider, the office may waive the 10
 1084  day notification period and allow a withdrawal of up to 10
 1085  percent of the required minimum liquid reserve. The office shall
 1086  have 3 working days to deny the petition for the emergency 10
 1087  percent withdrawal. If the office fails to deny the petition
 1088  within 3 working days, the petition is shall be deemed to have
 1089  been granted by the office. For purposes the purpose of this
 1090  section, “working day” means each day that is not a Saturday,
 1091  Sunday, or legal holiday as defined by Florida law. Also, for
 1092  purposes the purpose of this section, the day the petition is
 1093  received by the office is shall not be counted as one of the 3
 1094  days.
 1095         (3) In addition, When entrance fees are required to be
 1096  deposited in an escrow account pursuant to s. 651.022, s.
 1097  651.023, or s. 651.055:
 1098         (a) The provider shall deliver to the resident a written
 1099  receipt. The receipt must show the payor’s name and address, the
 1100  date, the price of the care contract, and the amount of money
 1101  paid. A copy of each receipt, together with the funds, must
 1102  shall be deposited with the escrow agent or as provided in
 1103  paragraph (c). The escrow agent must shall release such funds to
 1104  the provider 7 days after the date of receipt of the funds by
 1105  the escrow agent if the provider, operating under a certificate
 1106  of authority issued by the office, has met the requirements of
 1107  s. 651.023(6). However, if the resident rescinds the contract
 1108  within the 7-day period, the escrow agent must shall release the
 1109  escrowed fees to the resident.
 1110         (b) At the request of an individual resident of a facility,
 1111  the escrow agent shall issue a statement indicating the status
 1112  of the resident’s portion of the escrow account.
 1113         (c) At the request of an individual resident of a facility,
 1114  the provider may hold the check for the 7-day period and may
 1115  shall not deposit it during this time period. If the resident
 1116  rescinds the contract within the 7-day period, the check must
 1117  shall be immediately returned to the resident. Upon the
 1118  expiration of the 7 days, the provider shall deposit the check.
 1119         (d) A provider may assess a nonrefundable fee, which is
 1120  separate from the entrance fee, for processing a prospective
 1121  resident’s application for continuing care or continuing care
 1122  at-home.
 1123         (6) Except as described in paragraph (3)(a), the escrow
 1124  agent may not release or otherwise permit the transfer of funds
 1125  without the written approval of the office.
 1126         Section 15. Section 651.034, Florida Statutes, is created
 1127  to read:
 1128         651.034 Financial and operating requirements for
 1129  providers.—
 1130         (1)(a) If a company information level event occurs, the
 1131  provider must provide the office with explanatory information
 1132  and submit to the office a company information report, which
 1133  must:
 1134         1. Identify the conditions that contribute to the company
 1135  information level event;
 1136         2. Contain proposals of corrective actions that the
 1137  provider intends to take and that are reasonably expected to
 1138  result in the elimination of the company information level
 1139  event;
 1140         3. Provide projections of the provider’s financial results
 1141  in the current year and at least the 4 succeeding years, both in
 1142  the absence of proposed corrective actions and if the proposed
 1143  corrective actions are taken;
 1144         4. Identify the key assumptions affecting the provider’s
 1145  projections and the sensitivity of the projections to the
 1146  assumptions; and
 1147         5. Identify the quality of and problems associated with the
 1148  provider’s business.
 1149         (b) The company information report must be submitted within
 1150  45 days after the occurrence of the company information level
 1151  event.
 1152         (c) Within 60 days after the submission by a provider of a
 1153  company information report to the office, the office shall
 1154  notify the provider whether the corrective action identified in
 1155  the company information report must be implemented or is
 1156  unsatisfactory in the judgment of the office. If the office
 1157  determines that the corrective action proposed in the company
 1158  information report is unsatisfactory, the notification to the
 1159  provider must set forth the reasons for the determination and
 1160  may set forth proposed revisions. Upon notification from the
 1161  office, the provider shall prepare a revised company information
 1162  report, which may incorporate by reference any revisions
 1163  proposed by the office, and shall submit the revised company
 1164  information report to the office within 45 days after the
 1165  notification from the office; or
 1166         (d) If the office notifies a provider that the provider’s
 1167  company information report or revised company information report
 1168  is unsatisfactory, the office may, at its discretion, specify in
 1169  the notification that the notification is a regulatory action
 1170  level event.
 1171  
 1172  The occurrence of a company information level event may not be
 1173  deemed a violation of the Insurance Code and the submission of a
 1174  company information report may not be deemed a disciplinary
 1175  action. However, the failure to file a company information
 1176  report or other violation of this section constitutes a
 1177  violation of the Insurance Code and may subject a provider to
 1178  disciplinary action.
 1179         (2)(a) If a regulatory action level event occurs, the
 1180  office must:
 1181         1. Require the provider to prepare and submit a corrective
 1182  action plan or, if applicable, a revised corrective action plan;
 1183         2. Perform an examination pursuant to s. 624.316 or an
 1184  analysis, as the office considers necessary, of the assets,
 1185  liabilities, and operations of the provider, including a review
 1186  of the corrective action plan or the revised corrective action
 1187  plan; and
 1188         3. After the examination or analysis, issue a corrective
 1189  order specifying any corrective actions that the office
 1190  determines are required.
 1191         (b) In determining corrective actions, the office shall
 1192  consider any factor relevant to the provider based upon the
 1193  office’s examination or analysis of the assets, liabilities, and
 1194  operations of the provider. The corrective action plan or the
 1195  revised corrective action plan must be submitted within 45 days
 1196  after the occurrence of the regulatory action level event.
 1197         (c) The office may retain actuaries, investment experts,
 1198  and other consultants to review a provider’s corrective action
 1199  plan or revised corrective action plan, examine or analyze the
 1200  assets, liabilities, and operations of a provider, and formulate
 1201  the corrective order with respect to the provider. The fees,
 1202  costs, and expenses relating to consultants must be borne by the
 1203  affected provider or by any other party as directed by the
 1204  office.
 1205         (3) If an impairment occurs, the office must take any
 1206  action necessary to place the provider under regulatory control,
 1207  including any remedy available under chapter 631. An impairment
 1208  is sufficient grounds for the department to be appointed as
 1209  receiver as provided in chapter 631. Notwithstanding s. 631.011,
 1210  impairment of a provider, for purposes of s. 631.051, is defined
 1211  according to the term “impaired” under s. 651.011. The office
 1212  may forego taking action for up to 90 days after the impairment
 1213  if the office finds there is a reasonable expectation that the
 1214  impairment may be eliminated within the 90-day period.
 1215         (4) There is no liability on the part of, and a cause of
 1216  action may not arise against, the commission, department, or
 1217  office, or their employees or agents, for any action taken by
 1218  them in the performance of their powers and duties under this
 1219  section.
 1220         (5) The office shall transmit any notice that may result in
 1221  regulatory action by registered mail, certified mail, or any
 1222  other method of transmission. Notice is effective when the
 1223  provider receives it.
 1224         (6) This section is supplemental to the other laws of this
 1225  state and does not preclude or limit any power or duty of the
 1226  department or office under those laws or under the rules adopted
 1227  pursuant to those laws.
 1228         (7) The commission may adopt rules to administer this
 1229  section, including, but not limited to, rules regarding
 1230  corrective action plans, adjusted corrective action plans,
 1231  corrective orders, and procedures to be followed in the event of
 1232  a triggering of a company information level event, a regulatory
 1233  action level event, or an impairment.
 1234         (8) The office may exempt a provider from subsection (1),
 1235  subsection (2), or subsection (3) until stabilized occupancy is
 1236  reached or until the time projected to achieve stabilized
 1237  occupancy as reported in the last actuarial study required by
 1238  the office as part of an application filing under s. 651.022, s.
 1239  651.023, s. 651.024, s. 651.0245, or s. 651.0246 has elapsed,
 1240  but for no longer than 3 years from the date of issuance of the
 1241  certificate of occupancy.
 1242         Section 16. Paragraphs (a) and (c) of subsection (1) of
 1243  section 651.035, Florida Statutes, are amended, and subsections
 1244  (7), (8), and (9) are added to that section, to read:
 1245         651.035 Minimum liquid reserve requirements.—
 1246         (1) A provider shall maintain in escrow a minimum liquid
 1247  reserve consisting of the following reserves, as applicable:
 1248         (a) Each provider shall maintain in escrow as a debt
 1249  service reserve the aggregate amount of all principal and
 1250  interest payments due during the fiscal year on any mortgage
 1251  loan or other long-term financing of the facility, including
 1252  property taxes as recorded in the audited financial statements
 1253  required under s. 651.026. The amount must include any leasehold
 1254  payments and all costs related to such payments. If principal
 1255  payments are not due during the fiscal year, the provider must
 1256  shall maintain in escrow as a minimum liquid reserve an amount
 1257  equal to interest payments due during the next 12 months on any
 1258  mortgage loan or other long-term financing of the facility,
 1259  including property taxes noticed as required by s. 197.322(3)
 1260  and insurance. If a provider does not have a mortgage loan or
 1261  other financing on the facility, the provider must deposit
 1262  monthly in escrow as a minimum liquid reserve an amount equal to
 1263  one-twelfth of the annual property tax liability as indicated in
 1264  the most recent tax notice provided pursuant to s. 197.322(3).
 1265         (c) Each provider shall maintain in escrow an operating
 1266  reserve equal to 30 percent of the total operating expenses
 1267  projected in the feasibility study required by s. 651.023 for
 1268  the first 12 months of operation. Thereafter, each provider
 1269  shall maintain in escrow an operating reserve equal to 15
 1270  percent of the total operating expenses in the annual report
 1271  filed pursuant to s. 651.026. If a provider has been in
 1272  operation for more than 12 months, the total annual operating
 1273  expenses must shall be determined by averaging the total annual
 1274  operating expenses reported to the office by the number of
 1275  annual reports filed with the office within the preceding 3-year
 1276  period subject to adjustment if there is a change in the number
 1277  of facilities owned. For purposes of this subsection, total
 1278  annual operating expenses include all expenses of the facility
 1279  except: depreciation and amortization; interest and property
 1280  taxes included in paragraph (a); extraordinary expenses that are
 1281  adequately explained and documented in accordance with generally
 1282  accepted accounting principles; liability insurance premiums in
 1283  excess of those paid in calendar year 1999; and changes in the
 1284  obligation to provide future services to current residents. For
 1285  providers initially licensed during or after calendar year 1999,
 1286  liability insurance must shall be included in the total
 1287  operating expenses in an amount not to exceed the premium paid
 1288  during the first 12 months of facility operation. Beginning
 1289  January 1, 1993, The operating reserves required under this
 1290  subsection must shall be in an unencumbered account held in
 1291  escrow for the benefit of the residents. Such funds may not be
 1292  encumbered or subject to any liens or charges by the escrow
 1293  agent or judgments, garnishments, or creditors’ claims against
 1294  the provider or facility. However, if a facility had a lien,
 1295  mortgage, trust indenture, or similar debt instrument in place
 1296  before January 1, 1993, which encumbered all or any part of the
 1297  reserves required by this subsection and such funds were used to
 1298  meet the requirements of this subsection, then such arrangement
 1299  may be continued, unless a refinancing or acquisition has
 1300  occurred, and the provider is shall be in compliance with this
 1301  subsection.
 1302         (7) A provider may withdraw funds from the operating
 1303  reserve or the debt service reserve as provided in s. 625.62
 1304  with the written consent of the office.
 1305         (a) To withdraw funds in excess of the amount required
 1306  under this section, the provider must file notice with the
 1307  office 10 days before the date of such withdrawal. If no
 1308  disapproval is received within 10 days of the filing of such
 1309  notice, the withdrawal is deemed approved. Escrow agent fees as
 1310  allowed by s. 651.033(1)(d) may be withdrawn from funds in
 1311  excess of the amount required under this section without prior
 1312  approval of the office.
 1313         (b)1. For all other proposed withdrawals, in order to
 1314  receive the consent of the office, the provider must file
 1315  documentation showing why the withdrawal is necessary for the
 1316  continued operation of the facility and such additional
 1317  information as the office reasonably requires.
 1318         2. The office shall notify the provider when the file is
 1319  deemed complete. If the provider has complied with all prior
 1320  requests for information, the file is deemed complete after 30
 1321  days without communication from the office.
 1322         3. Within 30 days after the date a file is deemed complete,
 1323  the office shall provide the provider with written notice of its
 1324  approval or disapproval of the request. The office may
 1325  disapprove any request to withdraw such funds if it determines
 1326  that the withdrawal is not in the best interest of the
 1327  residents.
 1328         (8) The office may order the immediate transfer of up to
 1329  100 percent of the funds held in the minimum liquid reserve to
 1330  the custody of the department pursuant to part III of chapter
 1331  625 if the office finds that the provider is impaired or
 1332  insolvent. The office may order such a transfer regardless of
 1333  whether the office has suspended or revoked, or intends to
 1334  suspend or revoke, the certificate of authority of the provider.
 1335         (9)Each facility shall file with the office annually, no
 1336  later than 60 days before the end of the provider’s fiscal year,
 1337  a calculation of its minimum liquid reserve, determined in
 1338  accordance with this section, on a form prescribed by the
 1339  commission. The minimum liquid reserve must be maintained at the
 1340  calculated level beginning no later than the first day of the
 1341  subsequent fiscal year.
 1342         Section 17. Section 651.043, Florida Statutes, is created
 1343  to read:
 1344         651.043 Approval of change in management.—
 1345         (1) As used in this section, the term “management” means:
 1346         (a) A manager or management company;
 1347         (b) An officer or director of the provider or of the
 1348  manager or management company;
 1349         (c) Any other person performing duties similar to those of
 1350  persons in paragraph (a) or paragraph (b); or
 1351         (d) A person who exercises or who has the ability to
 1352  exercise effective control of the organization, or who
 1353  influences or has the ability to influence the transaction of
 1354  the business of the provider.
 1355         (2) Effective July 1, 2018, a contract for management must
 1356  be in writing and include a provision that the contract will be
 1357  canceled upon issuance of an order by the office pursuant to
 1358  this section without the application of any cancellation fee or
 1359  penalty.
 1360         (3) A provider must file notice with the office of any
 1361  change in management within 5 days after the appointment of new
 1362  management or the removal of approved management, whichever is
 1363  earlier. For each new management appointment, the provider must
 1364  submit the information required by s. 651.022(2) and a copy of
 1365  the written management contract. The office shall complete its
 1366  review and issue an approval or disapproval of the management
 1367  contract within 30 days after the filing is deemed complete. A
 1368  filing is deemed complete upon receipt of all requested
 1369  information and correction of any error or omission for which
 1370  the applicant was timely notified.
 1371         (4) The office may disapprove new management and order the
 1372  provider to cancel the contract in accordance with the terms of
 1373  the contract and applicable law if the office:
 1374         (a) Finds that the new management is incompetent or
 1375  untrustworthy;
 1376         (b) Finds that the new management is so lacking in relevant
 1377  managerial experience as to make the proposed operation
 1378  hazardous to the residents or potential residents;
 1379         (c) Finds that the new management is so lacking in relevant
 1380  experience, ability, and standing as to jeopardize the
 1381  reasonable promise of successful operation; or
 1382         (d) Has good reason to believe that the new management is
 1383  affiliated directly or indirectly through ownership, control,
 1384  reinsurance transactions, or other insurance or business
 1385  relations with any person or persons whose business operations
 1386  are or have been marked by manipulation of assets, accounts, or
 1387  reinsurance or by bad faith, to the detriment of policyholders,
 1388  residents, stockholders, investors, creditors, or the public.
 1389         (5) Management disapproved by the office must be removed
 1390  within 30 days after receipt by the provider of notice of such
 1391  disapproval.
 1392         (6) The office may revoke, suspend, or take other
 1393  administrative action against the certificate of authority of
 1394  the provider if the provider:
 1395         (a) Fails to timely remove management disapproved by the
 1396  office;
 1397         (b) Fails to timely notify the office of a change in
 1398  management;
 1399         (c) Appoints management without a written contract; or
 1400         (d) Repeatedly appoints management that was previously
 1401  disapproved by the office or that is not approvable pursuant to
 1402  subsection (4).
 1403         (7) The provider shall remove any management immediately
 1404  upon discovery of any of the following conditions, if the
 1405  conditions were not disclosed in the notice to the office
 1406  required in subsection (3):
 1407         (a) That any person who exercises or has the ability to
 1408  exercise effective control of the provider, or who influences or
 1409  has the ability to influence the transaction of the business of
 1410  the provider, has been found guilty of, or has pled guilty or no
 1411  contest to, any felony or crime punishable by imprisonment of 1
 1412  year or more under the laws of the United States or any state
 1413  thereof or under the laws of any other country, which involves
 1414  moral turpitude, without regard to whether a judgment or
 1415  conviction has been entered by the court having jurisdiction in
 1416  such case.
 1417         (b) That any person who exercises or has the ability to
 1418  exercise effective control of the organization, or who
 1419  influences or has the ability to influence the transaction of
 1420  the business of the provider, is now or was in the past
 1421  affiliated, directly or indirectly, through ownership interest
 1422  of 10 percent or more in, control of, or reinsurance
 1423  transactions with any business, corporation, or other entity
 1424  that has been found guilty of or has pled guilty or no contest
 1425  to any felony or crime punishable by imprisonment for 1 year or
 1426  more under the laws of the United States, any state, or any
 1427  other country, regardless of adjudication.
 1428  
 1429  The failure to remove such management is grounds for revocation
 1430  or suspension of the provider’s certificate of authority.
 1431         Section 18. Section 651.051, Florida Statutes, is amended
 1432  to read:
 1433         651.051 Maintenance of assets and records in state.—All
 1434  records and assets of a provider must be maintained in this
 1435  state. No records or assets may be removed from this state by a
 1436  provider unless the office consents to such removal in writing
 1437  before such removal. Such consent must shall be based upon the
 1438  provider’s submitting satisfactory evidence that the removal
 1439  will facilitate and make more economical the operations of the
 1440  provider and will not diminish the service or protection
 1441  thereafter to be given the provider’s residents in this state.
 1442  Before Prior to such removal, the provider shall give notice to
 1443  the president or chair of the facility’s residents’ council. If
 1444  such removal is part of a cash management system which has been
 1445  approved by the office, disclosure of the system must shall meet
 1446  the notification requirements. The electronic storage of records
 1447  on a web-based, secured storage platform by contract with a
 1448  third party constitutes removal from the state and requires
 1449  prior approval by the office.
 1450         Section 19. Subsection (2) of section 651.057, Florida
 1451  Statutes, is amended to read:
 1452         651.057 Continuing care at-home contracts.—
 1453         (2) A provider that holds a certificate of authority and
 1454  wishes to offer continuing care at-home must also:
 1455         (a) Submit a business plan to the office with the following
 1456  information:
 1457         1. A description of the continuing care at-home services
 1458  that will be provided, the market to be served, and the fees to
 1459  be charged;
 1460         2. A copy of the proposed continuing care at-home contract;
 1461         3. An actuarial study prepared by an independent actuary in
 1462  accordance with the standards adopted by the American Academy of
 1463  Actuaries which presents the impact of providing continuing care
 1464  at-home on the overall operation of the facility; and
 1465         4. A market feasibility study that meets the requirements
 1466  of s. 651.022(3) and documents that there is sufficient interest
 1467  in continuing care at-home contracts to support such a program;
 1468         (b) Demonstrate to the office that the proposal to offer
 1469  continuing care at-home contracts to individuals who do not
 1470  immediately move into the facility will not place the provider
 1471  in an unsound financial condition;
 1472         (c) Comply with the requirements of s. 651.0246(1) s.
 1473  651.021(2), except that an actuarial study may be substituted
 1474  for the feasibility study; and
 1475         (d) Comply with the requirements of this chapter.
 1476         Section 20. Subsection (1) of section 651.071, Florida
 1477  Statutes, is amended to read:
 1478         651.071 Contracts as preferred claims on liquidation or
 1479  receivership.—
 1480         (1) In the event of receivership or liquidation proceedings
 1481  against a provider, all continuing care and continuing care at
 1482  home contracts executed by a provider are shall be deemed
 1483  preferred claims or policyholder loss preferred claims pursuant
 1484  to s. 631.271(1)(b) against all assets owned by the provider;
 1485  however, such claims are subordinate to any secured claim.
 1486         Section 21. Subsection (2) and present paragraph (g) of
 1487  subsection (3) of section 651.091, Florida Statutes, are
 1488  amended, present paragraphs (h) and (i) of subsection (3) of
 1489  that section are redesignated as paragraphs (g) and (h),
 1490  respectively, a new paragraph (i) and paragraphs (j), (k), and
 1491  (l) are added to that subsection, and paragraph (d) of
 1492  subsection (3) and subsection (4) of that section are
 1493  republished, to read:
 1494         651.091 Availability, distribution, and posting of reports
 1495  and records; requirement of full disclosure.—
 1496         (2) Every continuing care facility shall:
 1497         (a) Display the certificate of authority in a conspicuous
 1498  place inside the facility.
 1499         (b) Post in a prominent position in the facility which is
 1500  accessible to all residents and the general public a concise
 1501  summary of the last examination report issued by the office,
 1502  with references to the page numbers of the full report noting
 1503  any deficiencies found by the office, and the actions taken by
 1504  the provider to rectify such deficiencies, indicating in such
 1505  summary where the full report may be inspected in the facility.
 1506         (c) Provide notice to the president or chair of the
 1507  residents’ council within 3 business days after issuance of an
 1508  examination report or the initiation of any legal or
 1509  administrative proceeding by the office or the department and
 1510  include a copy of such document.
 1511         (d)(c) Post in a prominent position in the facility which
 1512  is accessible to all residents and the general public a summary
 1513  of the latest annual statement, indicating in the summary where
 1514  the full annual statement may be inspected in the facility. A
 1515  listing of any proposed changes in policies, programs, and
 1516  services must also be posted.
 1517         (e)(d) Distribute a copy of the full annual statement and a
 1518  copy of the most recent third-party third party financial audit
 1519  filed with the annual report to the president or chair of the
 1520  residents’ council within 30 days after filing the annual report
 1521  with the office, and designate a staff person to provide
 1522  explanation thereof.
 1523         (f)(e)Deliver the information described in s. 651.085(4)
 1524  in writing to the president or chair of the residents’ council
 1525  and make supporting documentation available upon request Notify
 1526  the residents’ council of any plans filed with the office to
 1527  obtain new financing, additional financing, or refinancing for
 1528  the facility and of any applications to the office for any
 1529  expansion of the facility.
 1530         (g)(f) Deliver to the president or chair of the residents’
 1531  council a summary of entrance fees collected and refunds made
 1532  during the time period covered in the annual report and the
 1533  refund balances due at the end of the report period.
 1534         (h)(g) Deliver to the president or chair of the residents’
 1535  council a copy of each quarterly statement within 30 days after
 1536  the quarterly statement is filed with the office if the facility
 1537  is required to file quarterly.
 1538         (i)(h) Upon request, deliver to the president or chair of
 1539  the residents’ council a copy of any newly approved continuing
 1540  care or continuing care at-home contract within 30 days after
 1541  approval by the office.
 1542         (j) Provide to the president or chair of the residents’
 1543  council a copy of any notice filed with the office relating to
 1544  any change in ownership within 3 business days after the receipt
 1545  of such filing by the provider.
 1546         (k) Make the information available to prospective residents
 1547  pursuant to paragraph (3)(d) available to current residents and
 1548  provide notice of changes to that information to the president
 1549  or chair of the residents’ council within 3 business days.
 1550         (3) Before entering into a contract to furnish continuing
 1551  care or continuing care at-home, the provider undertaking to
 1552  furnish the care, or the agent of the provider, shall make full
 1553  disclosure, and provide copies of the disclosure documents to
 1554  the prospective resident or his or her legal representative, of
 1555  the following information:
 1556         (d) In keeping with the intent of this subsection relating
 1557  to disclosure, the provider shall make available for review
 1558  master plans approved by the provider’s governing board and any
 1559  plans for expansion or phased development, to the extent that
 1560  the availability of such plans does not put at risk real estate,
 1561  financing, acquisition, negotiations, or other implementation of
 1562  operational plans and thus jeopardize the success of
 1563  negotiations, operations, and development.
 1564         (g) The amount and location of any reserve funds required
 1565  by this chapter, and the name of the person or entity having a
 1566  claim to such funds in the event of a bankruptcy, foreclosure,
 1567  or rehabilitation proceeding.
 1568         (i) Notice of the issuance of an examination report or the
 1569  initiation of any legal or administrative proceeding by the
 1570  office or the department, including a copy of such document.
 1571         (j) Notice that the entrance fee is the property of the
 1572  provider after the expiration of the 7-day escrow requirement
 1573  under s. 651.055(2).
 1574         (k) If the provider operates multiple facilities, a
 1575  disclosure of any distribution of assets or income between
 1576  facilities that may occur and the manner in which such
 1577  distributions would be made, or a statement that such
 1578  distributions will not occur.
 1579         (l) Notice of any holding company system or obligated group
 1580  of which the provider is a member.
 1581         (4) A true and complete copy of the full disclosure
 1582  document to be used must be filed with the office before use. A
 1583  resident or prospective resident or his or her legal
 1584  representative may inspect the full reports referred to in
 1585  paragraph (2)(b); the charter or other agreement or instrument
 1586  required to be filed with the office pursuant to s. 651.022(2),
 1587  together with all amendments thereto; and the bylaws of the
 1588  corporation or association, if any. Upon request, copies of the
 1589  reports and information shall be provided to the individual
 1590  requesting them if the individual agrees to pay a reasonable
 1591  charge to cover copying costs.
 1592         Section 22. Subsection (1) of section 651.105, Florida
 1593  Statutes, is amended, and subsection (7) is added to that
 1594  section, to read:
 1595         651.105 Examination and inspections.—
 1596         (1) The office may at any time, and shall at least once
 1597  every 3 years, examine the business of any applicant for a
 1598  certificate of authority and any provider engaged in the
 1599  execution of care contracts or engaged in the performance of
 1600  obligations under such contracts, in the same manner as is
 1601  provided for the examination of insurance companies pursuant to
 1602  ss. 624.316 and 624.318 s. 624.316. For a provider as described
 1603  defined in s. 651.028, such examinations must shall take place
 1604  at least once every 5 years. Such examinations must shall be
 1605  made by a representative or examiner designated by the office
 1606  whose compensation will be fixed by the office pursuant to s.
 1607  624.320. Routine examinations may be made by having the
 1608  necessary documents submitted to the office; and, for this
 1609  purpose, financial documents and records conforming to commonly
 1610  accepted accounting principles and practices, as required under
 1611  s. 651.026, are deemed adequate. The final written report of
 1612  each examination must be filed with the office and, when so
 1613  filed, constitutes a public record. Any provider being examined
 1614  shall, upon request, give reasonable and timely access to all of
 1615  its records. The representative or examiner designated by the
 1616  office may at any time examine the records and affairs and
 1617  inspect the physical property of any provider, whether in
 1618  connection with a formal examination or not.
 1619         (7) To the extent necessary to ascertain the financial
 1620  condition of a provider, the office may examine any parent,
 1621  subsidiary, or affiliate that has a contractual or financial
 1622  relationship with the provider.
 1623         Section 23. Section 651.1055, Florida Statutes, is created
 1624  to read:
 1625         651.1055 Duty of provider to cooperate.—A provider has a
 1626  duty to cooperate with the office, including responding to
 1627  written correspondence and providing data, financial statements,
 1628  and pertinent information as requested by the office.
 1629         Section 24. Section 651.106, Florida Statutes, is amended
 1630  to read:
 1631         651.106 Grounds for discretionary refusal, suspension, or
 1632  revocation of certificate of authority.—The office may deny an
 1633  application or, suspend, or revoke the provisional certificate
 1634  of authority or the certificate of authority of any applicant or
 1635  provider if it finds that any one or more of the following
 1636  grounds applicable to the applicant or provider exist:
 1637         (1) Failure by the provider to continue to meet the
 1638  requirements for the authority originally granted.
 1639         (2) Failure by the provider to meet one or more of the
 1640  qualifications for the authority specified by this chapter.
 1641         (3) Material misstatement, misrepresentation, or fraud in
 1642  obtaining the authority, or in attempting to obtain the same.
 1643         (4) Demonstrated lack of fitness or trustworthiness.
 1644         (5) Fraudulent or dishonest practices of management in the
 1645  conduct of business.
 1646         (6) Misappropriation, conversion, or withholding of moneys.
 1647         (7) Failure to comply with, or violation of, any proper
 1648  order or rule of the office or commission or violation of any
 1649  provision of this chapter.
 1650         (8) The insolvent or impaired condition of the provider or
 1651  the provider’s being in such condition or using such methods and
 1652  practices in the conduct of its business as to render its
 1653  further transactions in this state hazardous or injurious to the
 1654  public.
 1655         (9) Refusal by the provider to be examined or to produce
 1656  its accounts, records, and files for examination, or refusal by
 1657  any of its officers to give information with respect to its
 1658  affairs or to perform any other legal obligation under this
 1659  chapter when required by the office.
 1660         (10) Failure by the provider to comply with the
 1661  requirements of s. 651.026 or s. 651.033.
 1662         (11) Failure by the provider to maintain escrow accounts or
 1663  funds as required by this chapter.
 1664         (12) Failure by the provider to meet the requirements of
 1665  this chapter for disclosure of information to residents
 1666  concerning the facility, its ownership, its management, its
 1667  development, or its financial condition or failure to honor its
 1668  continuing care or continuing care at-home contracts.
 1669         (13) Any cause for which issuance of the license could have
 1670  been refused had it then existed and been known to the office.
 1671         (14) Having been found guilty of, or having pleaded guilty
 1672  or nolo contendere to, a felony in this state or any other
 1673  state, without regard to whether a judgment or conviction has
 1674  been entered by the court having jurisdiction of such cases.
 1675         (15) In the conduct of business under the license, engaging
 1676  in unfair methods of competition or in unfair or deceptive acts
 1677  or practices prohibited under part IX of chapter 626.
 1678         (16) A pattern of bankrupt enterprises.
 1679         (17)(a) The ownership, control, or management of the
 1680  organization includes any person:
 1681         1. Who is incompetent or untrustworthy;
 1682         2. Who is so lacking in continuing care expertise as to
 1683  make the operation of the provider hazardous to potential and
 1684  existing residents;
 1685         3. Who is so lacking in continuing care experience,
 1686  ability, and standing as to jeopardize the reasonable promise of
 1687  successful operation;
 1688         4. Who is affiliated, directly or indirectly, through
 1689  ownership, control, reinsurance transactions, or other business
 1690  relations, with any person whose business operations are or have
 1691  been marked by business practices or conduct that is to the
 1692  detriment of the public, stockholders, investors, or creditors;
 1693  or
 1694         5. Whose business operations are or have been marked by
 1695  business practices or conduct that is to the detriment of the
 1696  public, stockholders, investors, or creditors.
 1697         (b) Any person, including any stock subscriber,
 1698  stockholder, or incorporator, who exercises or has the ability
 1699  to exercise effective control of the organization, or who
 1700  influences or has the ability to influence the transaction of
 1701  the provider’s business, does not possess the financial standing
 1702  and business experience for the successful operation of the
 1703  provider.
 1704         (18) The provider has not filed a notice of change in
 1705  management, fails to remove a disapproved manager, or persists
 1706  in appointing disapproved or unapprovable managers.
 1707  
 1708  Revocation of a certificate of authority under this section does
 1709  not relieve a provider from the provider’s obligation to
 1710  residents under the terms and conditions of any continuing care
 1711  or continuing care at-home contract between the provider and
 1712  residents or the provisions of this chapter. The provider shall
 1713  continue to file its annual statement and pay license fees to
 1714  the office as required under this chapter as if the certificate
 1715  of authority had continued in full force, but the provider shall
 1716  not issue any new contracts. The office may seek an action in
 1717  the circuit court of Leon County to enforce the office’s order
 1718  and the provisions of this section.
 1719         Section 25. Section 651.1065, Florida Statutes, is created
 1720  to read:
 1721         651.1065 Soliciting or accepting new continuing care
 1722  contracts by impaired or insolvent facilities or providers.—
 1723         (1) Regardless of whether delinquency proceedings as to a
 1724  continuing care retirement community have been or are to be
 1725  initiated, a proprietor, general partner, member, officer,
 1726  director, trustee, or manager of a continuing care retirement
 1727  community, except with the written permission of the office, may
 1728  not permit the continuing care retirement community to solicit
 1729  or accept new continuing care contracts in this state after the
 1730  proprietor, general partner, member, officer, director, trustee,
 1731  or manager knew, or reasonably should have known, that the
 1732  continuing care retirement community was impaired or insolvent.
 1733         (2) A proprietor, general partner, member, officer,
 1734  director, trustee, or manager who violates this section commits
 1735  a felony of the third degree, punishable as provided in s.
 1736  775.082, s. 775.083, or s. 775.084.
 1737         Section 26. Section 651.111, Florida Statutes, is amended
 1738  to read:
 1739         651.111 Resident complaints and requests for inspections.—
 1740         (1) Any interested party or resident may file a complaint
 1741  that may include a request for an inspection of the records and
 1742  related financial affairs of a provider providing care in
 1743  accordance with the provisions of this chapter by transmitting
 1744  to the office notice of an alleged violation of applicable
 1745  requirements prescribed by statute or by rule, specifying to a
 1746  reasonable extent the details of the alleged violation or
 1747  complaint, which notice must shall be signed by the complainant.
 1748         (2) If the complaint requests an inspection, the substance
 1749  of the complaint must shall be given to the provider no earlier
 1750  than the time of the inspection. Unless the complainant
 1751  specifically requests otherwise, neither the substance of the
 1752  complaint which is provided to the provider nor any copy of the
 1753  complaint or any record which is published, released, or
 1754  otherwise made available to the provider may shall disclose the
 1755  name of any person mentioned in the complaint except the name of
 1756  any duly authorized officer, employee, or agent of the office
 1757  conducting the investigation or inspection pursuant to this
 1758  chapter.
 1759         (3) Upon receipt of a complaint, the office shall make a
 1760  preliminary review; and, unless the office determines that the
 1761  complaint is without any reasonable basis or the complaint does
 1762  not request an inspection, the office shall make an inspection.
 1763  The office shall provide the complainant with a written
 1764  acknowledgment of the complaint within 15 days after receipt by
 1765  the office. Such acknowledgment must include the case number
 1766  assigned by the office to the complaint and the name and contact
 1767  information of any duly authorized officer, employee, or agent
 1768  of the office conducting the investigation or inspection
 1769  pursuant to this chapter. The complainant must shall be advised,
 1770  within 30 days after the receipt of the complaint by the office,
 1771  of the proposed course of action of the office, including an
 1772  estimated timeframe for the handling of the complaint. If the
 1773  office does not conclude its inspection or investigation within
 1774  the office’s estimated timeframe, the office must advise the
 1775  complainant in writing within 15 days after any revised course
 1776  of action, including a revised estimated timeframe for the
 1777  handling of the complaint. Within 15 days after the office
 1778  completes its inspection or concludes its investigation, the
 1779  office shall provide the complainant a written closure statement
 1780  specifying the office’s findings and the results of the
 1781  inspection or investigation.
 1782         (4) A No provider operating under a certificate of
 1783  authority under this chapter may not discriminate or retaliate
 1784  in any manner against a resident or an employee of a facility
 1785  providing care because such resident or employee or any other
 1786  person has initiated a complaint pursuant to this section.
 1787         Section 27. Section 651.114, Florida Statutes, is amended
 1788  to read:
 1789         651.114 Delinquency proceedings; remedial rights.—
 1790         (1) Upon determination by the office that a provider is not
 1791  in compliance with this chapter, the office may notify the chair
 1792  of the Continuing Care Advisory Council, who may assist the
 1793  office in formulating a corrective action plan.
 1794         (2) Within 30 days after a request by either the advisory
 1795  council or the office, a provider shall make a plan for
 1796  obtaining compliance or solvency available to the advisory
 1797  council and the office, within 30 days after being requested to
 1798  do so by the council, a plan for obtaining compliance or
 1799  solvency.
 1800         (3) Within 30 days after receipt of a plan for obtaining
 1801  compliance or solvency, the office, or notification, the
 1802  advisory council at the request of the office, shall:
 1803         (a) Consider and evaluate the plan submitted by the
 1804  provider.
 1805         (b) Discuss the problem and solutions with the provider.
 1806         (c) Conduct such other business as is necessary.
 1807         (d) Report its findings and recommendations to the office,
 1808  which may require additional modification of the plan.
 1809  
 1810  This subsection may not be interpreted so as to delay or prevent
 1811  the office from taking any regulatory measures it deems
 1812  necessary regarding the provider that submitted the plan.
 1813         (4) If the financial condition of a continuing care
 1814  facility or provider is impaired or is such that if not modified
 1815  or corrected, its continued operation would result in
 1816  insolvency, the office may direct the provider to formulate and
 1817  file with the office a corrective action plan. If the provider
 1818  fails to submit a plan within 30 days after the office’s
 1819  directive, or submits a plan that is insufficient to correct the
 1820  condition, the office may specify a plan and direct the provider
 1821  to implement the plan.
 1822         (5)(4) After receiving approval of a plan by the office,
 1823  the provider shall submit a progress report monthly to the
 1824  advisory council or the office, or both, in a manner prescribed
 1825  by the office. After 3 months, or at any earlier time deemed
 1826  necessary, the council shall evaluate the progress by the
 1827  provider and shall advise the office of its findings.
 1828         (6)(5)If Should the office finds find that sufficient
 1829  grounds exist for rehabilitation, liquidation, conservation,
 1830  reorganization, seizure, or summary proceedings of an insurer as
 1831  set forth in ss. 631.051, 631.061, and 631.071, the department
 1832  office may petition for an appropriate court order or may pursue
 1833  such other relief as is afforded in part I of chapter 631.
 1834  Before invoking its powers under part I of chapter 631, the
 1835  department office shall notify the chair of the advisory
 1836  council.
 1837         (7) Notwithstanding s. 631.011, impairment of a provider,
 1838  for purposes of s. 631.051, is defined according to the term
 1839  “impaired” in s. 651.011.
 1840         (8)(6) In the event an order of conservation,
 1841  rehabilitation, liquidation, or conservation, reorganization,
 1842  seizure, or summary proceeding has been entered against a
 1843  provider, the department and office are vested with all of the
 1844  powers and duties they have under the provisions of part I of
 1845  chapter 631 in regard to delinquency proceedings of insurance
 1846  companies. A provider shall give written notice of the
 1847  proceeding to its residents within 3 business days after the
 1848  initiation of a delinquency proceeding under chapter 631 and
 1849  shall include a notice of the delinquency proceeding in any
 1850  written materials provided to prospective residents.
 1851         (7) If the financial condition of the continuing care
 1852  facility or provider is such that, if not modified or corrected,
 1853  its continued operation would result in insolvency, the office
 1854  may direct the provider to formulate and file with the office a
 1855  corrective action plan. If the provider fails to submit a plan
 1856  within 30 days after the office’s directive or submits a plan
 1857  that is insufficient to correct the condition, the office may
 1858  specify a plan and direct the provider to implement the plan.
 1859         (9) A provider subject to an order to show cause entered
 1860  pursuant to chapter 631 must file its written response to the
 1861  order, together with any defenses it may have to the
 1862  department’s allegations, no later than 20 days after service of
 1863  the order to show cause, but no less than 15 days before the
 1864  date of the hearing set by the order to show cause.
 1865         (10) A hearing held pursuant to chapter 631 to determine
 1866  whether cause exists for the department to be appointed receiver
 1867  must be commenced within 60 days after an order directing a
 1868  provider to show cause.
 1869         (11)(a)(8)(a)If the petition for rehabilitation,
 1870  liquidation, conservation, reorganization, seizure, or summary
 1871  proceedings is based solely upon the default of the insurer
 1872  under the terms of a resolution, ordinance, loan agreement,
 1873  indenture of trust, mortgage, lease, security agreement, or
 1874  other instrument creating or securing bonds or notes issued to
 1875  finance a facility, the rights of the office described in this
 1876  section are subordinate to the rights of a trustee or lender
 1877  pursuant to the terms of a resolution, ordinance, loan
 1878  agreement, indenture of trust, mortgage, lease, security
 1879  agreement, or other instrument creating or securing bonds or
 1880  notes issued to finance a facility, and the office, subject to
 1881  the provisions of paragraph (c), may shall not exercise its
 1882  remedial rights provided under this section and ss. 651.018,
 1883  651.106, 651.108, and 651.116 with respect to a facility that is
 1884  subject to a lien, mortgage, lease, or other encumbrance or
 1885  trust indenture securing bonds or notes issued in connection
 1886  with the financing of the facility, if the trustee or lender, by
 1887  inclusion or by amendment to the loan documents or by a separate
 1888  contract with the office, agrees that the rights of residents
 1889  under a continuing care or continuing care at-home contract will
 1890  be honored and will not be disturbed by a foreclosure or
 1891  conveyance in lieu thereof as long as the resident:
 1892         1. Is current in the payment of all monetary obligations
 1893  required by the contract;
 1894         2. Is in compliance and continues to comply with all
 1895  provisions of the contract; and
 1896         3. Has asserted no claim inconsistent with the rights of
 1897  the trustee or lender.
 1898         (b) This subsection does not require a trustee or lender
 1899  to:
 1900         1. Continue to engage in the marketing or resale of new
 1901  continuing care or continuing care at-home contracts;
 1902         2. Pay any rebate of entrance fees as may be required by a
 1903  resident’s continuing care or continuing care at-home contract
 1904  as of the date of acquisition of the facility by the trustee or
 1905  lender and until expiration of the period described in paragraph
 1906  (d);
 1907         3. Be responsible for any act or omission of any owner or
 1908  operator of the facility arising before the acquisition of the
 1909  facility by the trustee or lender; or
 1910         4. Provide services to the residents to the extent that the
 1911  trustee or lender would be required to advance or expend funds
 1912  that have not been designated or set aside for such purposes.
 1913         (c) Should the office determine, at any time during the
 1914  suspension of its remedial rights as provided in paragraph (a),
 1915  that the trustee or lender is not in compliance with paragraph
 1916  (a), or that a lender or trustee has assigned or has agreed to
 1917  assign all or a portion of a delinquent or defaulted loan to a
 1918  third party without the office’s written consent, the office
 1919  shall notify the trustee or lender in writing of its
 1920  determination, setting forth the reasons giving rise to the
 1921  determination and specifying those remedial rights afforded to
 1922  the office which the office shall then reinstate.
 1923         (d) Upon acquisition of a facility by a trustee or lender
 1924  and evidence satisfactory to the office that the requirements of
 1925  paragraph (a) have been met, the office shall issue a 90-day
 1926  temporary certificate of authority granting the trustee or
 1927  lender the authority to engage in the business of providing
 1928  continuing care or continuing care at-home and to issue
 1929  continuing care or continuing care at-home contracts subject to
 1930  the office’s right to immediately suspend or revoke the
 1931  temporary certificate of authority if the office determines that
 1932  any of the grounds described in s. 651.106 apply to the trustee
 1933  or lender or that the terms of the contract used as the basis
 1934  for the issuance of the temporary certificate of authority by
 1935  the office have not been or are not being met by the trustee or
 1936  lender since the date of acquisition.
 1937         Section 28. Section 651.1141, Florida Statutes, is created
 1938  to read:
 1939         651.1141 Immediate final orders.—The Legislature finds that
 1940  a violation of s. 651.024, s. 651.0245, s. 651.025, s.
 1941  651.035(3), s. 651.043, s. 651.083, or s. 651.105 constitutes an
 1942  immediate danger to the public health, safety, or welfare.
 1943  Pursuant to s. 120.569, the office may issue an immediate final
 1944  order to cease and desist if it finds that a provider is in
 1945  violation of such sections.
 1946         Section 29. Section 651.1151, Florida Statutes, is amended
 1947  to read:
 1948         651.1151 Administrative, vendor, and management contracts.—
 1949         (1) The office may require A provider must to submit to the
 1950  office any contract for administrative, vendor, or management
 1951  services if the office has information and belief that a
 1952  provider has entered into a contract with an affiliate, an
 1953  entity controlled by the provider, or an entity controlled by an
 1954  affiliate of the provider, which has not been disclosed to the
 1955  office or which contract requires the provider to pay a fee that
 1956  is unreasonably high in relation to the service provided.
 1957         (2) The office may disapprove a contract for
 1958  administrative, vendor, or management services if it finds that
 1959  the fees to be paid are so unreasonably high as compared with
 1960  similar contracts entered into by other providers in similar
 1961  circumstances that the contract is detrimental to the facility
 1962  or its residents.
 1963         (3)(2) After review of the contract, the office may order
 1964  the provider to cancel the contract in accordance with the terms
 1965  of the contract and applicable law if it determines that the
 1966  fees to be paid are so unreasonably high as compared with
 1967  similar contracts entered into by other providers in similar
 1968  circumstances that the contract is detrimental to the facility
 1969  or its residents.
 1970         (4)(3) Any contract with an affiliate, an entity controlled
 1971  by the provider, or an entity controlled by an affiliate of the
 1972  provider for administrative, vendor, or management services
 1973  entered into or renewed after October 1, 1991, must include a
 1974  provision that the contract will be canceled upon issuance of an
 1975  order by the office pursuant to this section. A copy of the
 1976  current management services contract, pursuant to this section,
 1977  if any, must be on file in the marketing office or other area
 1978  accessible to residents and the appropriate residents’ council.
 1979         (5)(4) Any action of the office under this section is
 1980  subject to review pursuant to the procedures provided in chapter
 1981  120.
 1982         Section 30. Paragraphs (d) and (e) of subsection (1) of
 1983  section 651.121, Florida Statutes, are amended to read:
 1984         651.121 Continuing Care Advisory Council.—
 1985         (1) The Continuing Care Advisory Council to the office is
 1986  created consisting of 10 members who are residents of this state
 1987  appointed by the Governor and geographically representative of
 1988  this state. Three members shall be administrators of facilities
 1989  that hold valid certificates of authority under this chapter and
 1990  shall have been actively engaged in the offering of continuing
 1991  care contracts in this state for 5 years before appointment. The
 1992  remaining members include:
 1993         (d) An attorney.
 1994         (d)(e)Four Three residents who hold continuing care or
 1995  continuing care at-home contracts with a facility certified in
 1996  this state.
 1997         Section 31. Subsections (1) and (4) of section 651.125,
 1998  Florida Statutes, are amended to read:
 1999         651.125 Criminal penalties; injunctive relief.—
 2000         (1) Any person who maintains, enters into, or, as manager
 2001  or officer or in any other administrative capacity, assists in
 2002  entering into, maintaining, or performing any continuing care or
 2003  continuing care at-home contract subject to this chapter without
 2004  doing so in pursuance of a valid provisional certificate of
 2005  authority or certificate of authority or renewal thereof, as
 2006  contemplated by or provided in this chapter, or who otherwise
 2007  violates any provision of this chapter or rule adopted in
 2008  pursuance of this chapter, commits a felony of the third degree,
 2009  punishable as provided in s. 775.082 or s. 775.083. Each
 2010  violation of this chapter constitutes a separate offense.
 2011         (4) Any action brought by the office against a provider
 2012  shall not abate by reason of a sale or other transfer of
 2013  ownership of the facility used to provide care, which provider
 2014  is a party to the action, except with the express written
 2015  consent of the director of the office.
 2016         Section 32. This act shall take effect July 1, 2018.