Florida Senate - 2018                              CS for SB 438
       
       
        
       By the Committee on Banking and Insurance; and Senator Lee
       
       
       
       
       
       597-02156-18                                           2018438c1
    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 to the Office
    8         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; creating s.
   15         651.0215, F.S.; specifying conditions that qualify an
   16         applicant for a certificate of authority without first
   17         obtaining a provisional certificate of authority;
   18         specifying requirements for the consolidated
   19         application; requiring an applicant to obtain separate
   20         certificates of authority for multiple facilities;
   21         specifying procedures and requirements for the
   22         office’s review of such applications and issuance or
   23         denial of certificates of authority; providing
   24         requirements for reservation contracts, entrance fees,
   25         and reservation deposits; authorizing a provider to
   26         secure release of moneys held in escrow under
   27         specified circumstances; providing construction
   28         relating to the release of escrow funds; amending s.
   29         651.022, F.S.; revising the office’s authority to make
   30         certain inquiries in the review of applications for
   31         provisional certificates of authority; specifying
   32         requirements for application amendments if material
   33         changes occur; requiring applicants to submit a
   34         specified feasibility study; revising procedures and
   35         requirements for the office’s review of such
   36         applications; conforming a provision to changes made
   37         by the act; making a technical change; conforming
   38         cross-references; amending s. 651.023, F.S.; revising
   39         requirements for an application for a certificate of
   40         authority; specifying requirements for application
   41         amendments if material changes occur; revising
   42         procedures and requirements for the office’s review of
   43         such applications; revising minimum unit reservation
   44         and minimum deposit requirements; revising conditions
   45         under which a provider is entitled to secure release
   46         of certain moneys held in escrow; conforming
   47         provisions to changes made by the act; conforming
   48         cross-references; amending s. 651.024, F.S.; providing
   49         and revising applicability of certain provisions to a
   50         person seeking to assume the role of general partner
   51         of a provider or seeking specified ownership,
   52         possession, or control of a provider’s assets;
   53         providing applicability of certain provisions to a
   54         person seeking to acquire and become the provider for
   55         a facility; providing procedures for filing a
   56         disclaimer of control; defining terms; providing
   57         standing to the office to petition a circuit court in
   58         certain proceedings; creating s. 651.0245, F.S.;
   59         prohibiting a person, without the office’s prior
   60         written approval, from acquiring a facility operating
   61         under a subsisting certificate of authority and
   62         engaging in the business of providing continuing care;
   63         providing requirements for an applicant seeking
   64         simultaneous acquisition of a facility and issuance of
   65         a certificate of authority; requiring the Financial
   66         Services Commission to adopt by rule certain
   67         application requirements; requiring the office to
   68         review applications and issue approvals or
   69         disapprovals of filings in accordance with specified
   70         provisions; defining terms; providing standing to the
   71         office to petition a specified circuit court under
   72         certain circumstances; providing procedures for filing
   73         a disclaimer of control; providing construction;
   74         authorizing the commission to adopt, amend, and repeal
   75         rules; creating s. 651.0246, F.S.; requiring a
   76         provider to obtain written approval from the office
   77         before commencing construction or marketing for
   78         specified expansions of a certificated facility;
   79         providing that a provider is automatically granted
   80         approval for certain expansions under specified
   81         circumstances; defining the term “existing units”;
   82         providing applicability; specifying requirements for
   83         applying for such approval; requiring the office to
   84         consider certain factors in reviewing such
   85         applications; providing procedures and requirements
   86         for the office’s review of applications and approval
   87         or denial of expansions; specifying requirements for
   88         escrowed moneys and for the release of the moneys;
   89         defining the term “initial entrance fee”; providing
   90         construction; amending s. 651.026, F.S.; revising
   91         requirements for annual reports that providers file
   92         with the office; revising guidelines for commission
   93         rulemaking; requiring the office to publish, within
   94         specified timeframes, a specified annual report;
   95         amending s. 651.0261, F.S.; revising requirements for
   96         quarterly statements filed by providers and facilities
   97         with the office; authorizing the office to waive
   98         certain filing requirements under certain
   99         circumstances; authorizing the office to require,
  100         under certain circumstances, providers or facilities
  101         to file monthly unaudited financial statements and
  102         certain other information; authorizing the commission
  103         to adopt certain rules; amending s. 651.028, F.S.;
  104         authorizing the office, under certain circumstances,
  105         to waive any requirement of ch. 651, F.S., for
  106         providers or obligated groups having certain
  107         accreditations or credit ratings; amending s. 651.033,
  108         F.S.; revising requirements for escrow accounts and
  109         escrow agreements; revising requirements for, and
  110         restrictions on, agents of escrow accounts; revising
  111         permissible investments for funds in an escrow
  112         account; revising requirements for the withdrawal of
  113         escrowed funds under certain circumstances; creating
  114         s. 651.034, F.S.; specifying requirements and
  115         procedures for the office if a regulatory action level
  116         event occurs; authorizing the office to use members of
  117         the Continuing Care Advisory Council or retain
  118         consultants for specified purposes; requiring affected
  119         providers to bear fees, costs, and expenses for such
  120         consultants; requiring the office to take certain
  121         actions if an impairment occurs; authorizing the
  122         office to forego taking action for a certain timeframe
  123         under certain circumstances; providing immunity from
  124         liability to the commission, the Department of
  125         Financial Services, the office, and their employees or
  126         agents for certain actions; requiring the office to
  127         transmit any notice that may result in regulatory
  128         action by certain methods; authorizing the office to
  129         exempt a provider from specified requirements under
  130         certain circumstances and for a specified timeframe;
  131         authorizing the commission to adopt rules; providing
  132         construction; amending s. 651.035, F.S.; revising
  133         provider minimum liquid reserve requirements under
  134         specified circumstances; deleting an obsolete date;
  135         authorizing providers, under certain circumstances, to
  136         withdraw funds held in escrow without the office’s
  137         approval; providing procedures and requirements to
  138         request approval for certain withdrawals; providing
  139         procedures and requirements for the office’s review of
  140         such requests; authorizing the office, under certain
  141         circumstances, to order the immediate transfer of
  142         funds in the minimum liquid reserve to the custody of
  143         the department; providing that certain debt service
  144         reserves of a provider are not subject to such
  145         transfer provision; requiring facilities to file
  146         annual calculations of their minimum liquid reserves
  147         with the office and maintain such reserves beginning
  148         at specified periods; requiring providers to fund
  149         reserve shortfalls within a specified timeframe;
  150         providing construction; creating s. 651.043, F.S.;
  151         defining the term “management”; providing requirements
  152         for a contract for management made after a certain
  153         date; specifying procedures and requirements for
  154         providers filing notices of change in management with
  155         the office; specifying procedures, requirements, and
  156         factors for the office’s review of such changes and
  157         approval or disapproval of the new management;
  158         requiring management disapproved by the office to be
  159         removed within a specified timeframe; authorizing the
  160         office to take certain disciplinary actions under
  161         certain circumstances; requiring providers to
  162         immediately remove management under certain
  163         circumstances; amending s. 651.051, F.S.; revising
  164         requirements for the maintenance of a provider’s
  165         records and assets; amending s. 651.057, F.S.;
  166         conforming cross-references; amending s. 651.071,
  167         F.S.; revising construction as to the priority of
  168         continuing care and continuing care at-home contracts
  169         in the event of receivership or liquidation
  170         proceedings against a provider; amending s. 651.091,
  171         F.S.; revising requirements for continuing care
  172         facilities and providers relating to the availability,
  173         distribution, and posting of reports and records;
  174         amending s. 651.105, F.S.; providing applicability of
  175         a provision of the Insurance Code relating to
  176         examinations and investigations to the office’s
  177         authority in examining certain applicants and
  178         providers; requiring providers to respond to written
  179         correspondence from the office and provide certain
  180         information; declaring that the office has standing to
  181         petition a circuit court for certain injunctive
  182         relief; specifying venue; deleting a requirement for
  183         the office to determine if certain disclosures have
  184         been made; providing that a provider’s or facility’s
  185         parent, subsidiary, or affiliate is not subject to
  186         routine examination by the office except under certain
  187         circumstances; authorizing the office to examine
  188         certain parents, subsidiaries, or affiliates to
  189         ascertain the financial condition of a provider under
  190         certain circumstances; prohibiting the office, when
  191         conducting an examination or inspection, from using
  192         certain actuary recommendations for a certain purpose
  193         or requesting certain documents under certain
  194         circumstances; amending s. 651.106, F.S.; authorizing
  195         the office to deny an application for a provisional
  196         certificate of authority or a certificate of authority
  197         on certain grounds; revising and adding grounds for
  198         application denial or disciplinary action by the
  199         office; creating s. 651.1065, F.S.; prohibiting
  200         certain persons of a continuing care retirement
  201         community, except with the office’s written
  202         permission, from actively soliciting, approving the
  203         solicitation or acceptance of, or accepting new
  204         continuing care contracts if they knew or should have
  205         known that the retirement community was impaired or
  206         insolvent; providing an exception; requiring the
  207         office to approve or disapprove the continued
  208         marketing of new contracts within a specified
  209         timeframe; providing a criminal penalty; amending s.
  210         651.111, F.S.; revising procedures and requirements
  211         for the office’s review of complaints requesting
  212         inspections of records and related financial affairs
  213         of a provider; amending s. 651.114, F.S.; providing
  214         that certain duties relating to a certain compliance
  215         or solvency plan must be performed by the office, or
  216         the Continuing Care Advisory Council at the request of
  217         the office, rather than solely by the council;
  218         providing construction relating to the office’s
  219         authority to take certain measures; authorizing the
  220         office to seek a recommended plan from the advisory
  221         council; replacing the office with the department as
  222         the entity taking certain actions under ch. 631, F.S.;
  223         providing construction; revising circumstances under
  224         which the department and office are vested with
  225         certain powers and duties in regard to delinquency
  226         proceedings; specifying requirements for providers to
  227         notify residents and prospective residents of
  228         delinquency proceedings; specifying procedures
  229         relating to orders to show cause and hearings pursuant
  230         to ch. 631, F.S.; revising facilities with respect to
  231         which the office may not exercise certain remedial
  232         rights; creating s. 651.1141, F.S.; authorizing the
  233         office to issue an immediate final order for a
  234         provider to cease and desist from specified
  235         violations; amending s. 651.121, F.S.; revising the
  236         composition of the Continuing Care Advisory Council;
  237         amending s. 651.125, F.S.; providing a criminal
  238         penalty for certain actions performed without a valid
  239         provisional certificate of authority; making a
  240         technical change; providing an effective date.
  241          
  242  Be It Enacted by the Legislature of the State of Florida:
  243  
  244         Section 1. Section 651.011, Florida Statutes, is amended to
  245  read:
  246         651.011 Definitions.—As used in this chapter, the term:
  247         (1) “Actuarial opinion” means an opinion issued by an
  248  actuary in accordance with Actuarial Standards of Practice No. 3
  249  for Continuing Care Retirement Communities, Revised Edition,
  250  effective May 1, 2011, or any future amendments or replacements
  251  to this standard which may be adopted by the Actuarial Standards
  252  Board.
  253         (2) “Actuarial study” means an analysis prepared for an
  254  individual facility, or consolidated for multiple facilities,
  255  for either a certified provider, as of a current valuation date
  256  or the most recent fiscal year, or for an applicant, as of a
  257  projected future valuation date, which includes an actuary’s
  258  opinion as to whether such provider or applicant is in
  259  satisfactory actuarial balance in accordance with Actuarial
  260  Standards of Practice No. 3 for Continuing Care Retirement
  261  Communities, Revised Edition, effective May 1, 2011, or any
  262  future amendments or replacements to this standard which may be
  263  adopted by the Actuarial Standards Board.
  264         (3) “Actuary” means an individual who is qualified to sign
  265  an actuarial opinion in accordance with the American Academy of
  266  Actuaries’ qualification standards and who is a member in good
  267  standing of the American Academy of Actuaries.
  268         (4)(1) “Advertising” means the dissemination of written,
  269  visual, or electronic information by a provider, or any person
  270  affiliated with or controlled by a provider, to potential
  271  residents or their representatives for the purpose of inducing
  272  such persons to subscribe to or enter into a contract for
  273  continuing care or continuing care at-home.
  274         (5)(2) “Continuing care” or “care” means, pursuant to a
  275  contract, furnishing shelter and nursing care or personal
  276  services to a resident who resides in a facility, whether such
  277  nursing care or personal services are provided in the facility
  278  or in another setting designated in the contract for continuing
  279  care, by an individual not related by consanguinity or affinity
  280  to the resident, upon payment of an entrance fee. The terms may
  281  also be referred to as a “life plan.”
  282         (6)(3) “Continuing Care Advisory Council” or “advisory
  283  council” means the council established in s. 651.121.
  284         (7)(4) “Continuing care at-home” means, pursuant to a
  285  contract other than a contract described in subsection (5) (2),
  286  furnishing to a resident who resides outside the facility the
  287  right to future access to shelter and nursing care or personal
  288  services, whether such services are provided in the facility or
  289  in another setting designated in the contract, by an individual
  290  not related by consanguinity or affinity to the resident, upon
  291  payment of an entrance fee. The term may also be referred to as
  292  a “life plan at-home.”
  293         (8) “Corrective order” means an order issued by the office
  294  which specifies corrective actions the office has determined are
  295  required.
  296         (9)“Days cash on hand” means, for a facility or obligated
  297  group, the quotient obtained by dividing the value of paragraph
  298  (a) by the value of paragraph (b).
  299         (a)The sum of unrestricted cash, unrestricted short-term
  300  and long-term investments, provider restricted funds, and the
  301  minimum liquid reserve as of the reporting period.
  302         (b)Operating expenses less depreciation, amortization, and
  303  other noncash expenses and nonoperating losses, divided by 365.
  304  Operating expenses, depreciation, amortization, and other
  305  noncash expenses and nonoperating losses are each the sum of
  306  their respective values over the 12-month period immediately
  307  preceding the reporting date.
  308  
  309  With prior written approval of the office, a demand note or
  310  other parental guarantee may be considered a short-term or long
  311  term investment for the purposes of paragraph (a). However, the
  312  total of all demand notes issued by the parent may not, at any
  313  time, be more than the sum of unrestricted cash and unrestricted
  314  short-term and long-term investments held by the parent.
  315         (10) “Debt service coverage ratio” means, for a facility or
  316  obligated group, the quotient obtained by dividing the value of
  317  paragraph (a) by the value of paragraph (b).
  318         (a)The sum of total expenses less interest expense on the
  319  facility, depreciation, amortization, and other noncash expenses
  320  and nonoperating losses, subtracted from the sum of total
  321  revenues and gross entrance fees received less earned entrance
  322  fees and refunds paid. Expenses, interest expense on the
  323  facility, depreciation, amortization, other noncash expenses and
  324  nonoperating losses, revenues, noncash revenues, nonoperating
  325  gains, gross entrance fees, earned entrance fees, and refunds
  326  are each the sum of their respective values over the 12-month
  327  period immediately preceding the reporting date.
  328         (b)Total annual principal and interest expense due on the
  329  facility or obligated group over the 12-month period immediately
  330  preceding the reporting date. For purposes of this paragraph,
  331  principal excludes any balloon principal payment amounts, and
  332  interest expense due is the sum of the interest over the 12
  333  month period immediately preceding the reporting date which is
  334  reflected in the provider’s audit.
  335         (11)(5) “Entrance fee” means an initial or deferred payment
  336  of a sum of money or property made as full or partial payment
  337  for continuing care or continuing care at-home. An accommodation
  338  fee, admission fee, member fee, or other fee of similar form and
  339  application are considered to be an entrance fee.
  340         (12)(6) “Facility” means a place where continuing care is
  341  furnished and may include one or more physical plants on a
  342  primary or contiguous site or an immediately accessible site. As
  343  used in this subsection, the term “immediately accessible site”
  344  means a parcel of real property separated by a reasonable
  345  distance from the facility as measured along public
  346  thoroughfares, and the term “primary or contiguous site” means
  347  the real property contemplated in the feasibility study required
  348  by this chapter.
  349         (7) “Generally accepted accounting principles” means those
  350  accounting principles and practices adopted by the Financial
  351  Accounting Standards Board and the American Institute of
  352  Certified Public Accountants, including Statement of Position
  353  90-8 with respect to any full year to which the statement
  354  applies.
  355         (13) “Impaired” means that any of the following have
  356  occurred:
  357         (a) A provider has failed to maintain its minimum liquid
  358  reserve as required in s. 651.035, unless the provider has
  359  received prior written approval from the office for a withdrawal
  360  pursuant to s. 651.035(6) and is compliant with the approved
  361  payment schedule; or
  362         (b)Beginning July 1, 2019:
  363         1.For a provider with mortgage financing from a third
  364  party lender or public bond issue, the provider’s debt service
  365  coverage ratio is less than 1.00:1 and the provider’s days cash
  366  on hand is less than 90; or
  367         2.For a provider without mortgage financing from a third
  368  party lender or public bond issue, the provider’s days cash on
  369  hand is less than 90.
  370         (14)(8) “Insolvency” means the condition in which a the
  371  provider is unable to pay its obligations as they come due in
  372  the normal course of business.
  373         (15)(9) “Licensed” means that a the provider has obtained a
  374  certificate of authority from the office department.
  375         (16) “Manager” or “management company” means a person who
  376  administers the day-to-day business operations of a facility for
  377  a provider, subject to the policies, directives, and oversight
  378  of the provider.
  379         (17)(10) “Nursing care” means those services or acts
  380  rendered to a resident by an individual licensed or certified
  381  pursuant to chapter 464.
  382         (18) “Obligated group” means one or more entities that
  383  jointly agree to be bound by a financing structure containing
  384  security provisions and covenants applicable to the group. For
  385  purposes of this subsection, debt issued under such a financing
  386  structure must be a joint and several obligation of each member
  387  of the group.
  388         (19) “Occupancy” means the total number of occupied
  389  independent living, assisted living, and skilled nursing units
  390  in a facility divided by the total number of units in that
  391  facility, excluding units that are unavailable to market or
  392  reserve, as of the most recent annual report.
  393         (20)(11) “Personal services” has the same meaning as in s.
  394  429.02.
  395         (21)(12) “Provider” means the owner or operator, whether a
  396  natural person, partnership or other unincorporated association,
  397  however organized, trust, or corporation, of an institution,
  398  building, residence, or other place, whether operated for profit
  399  or not, which owner or operator provides continuing care or
  400  continuing care at-home for a fixed or variable fee, or for any
  401  other remuneration of any type, whether fixed or variable, for
  402  the period of care, payable in a lump sum or lump sum and
  403  monthly maintenance charges or in installments. The term does
  404  not apply to an entity that has existed and continuously
  405  operated a facility located on at least 63 acres in this state
  406  providing residential lodging to members and their spouses for
  407  at least 66 years on or before July 1, 1989, and has the
  408  residential capacity of 500 persons, is directly or indirectly
  409  owned or operated by a nationally recognized fraternal
  410  organization, is not open to the public, and accepts only its
  411  members and their spouses as residents.
  412         (22)(13) “Records” means all documents, correspondence, and
  413  the permanent financial, directory, and personnel information
  414  and data maintained by a provider pursuant to this chapter,
  415  regardless of the physical form, characteristics, or means of
  416  transmission.
  417         (23) “Regulatory action level event” means that any two of
  418  the following have occurred:
  419         (a)The provider’s debt service coverage ratio is less than
  420  the minimum ratio specified in the provider’s bond covenants or
  421  lending agreement for long-term financing, or, if the provider
  422  does not have a debt service coverage ratio required by its
  423  lending institution, the provider’s debt service coverage ratio
  424  is less than 1.20:1 as of the most recent annual report filed
  425  with the office. If the provider is a member of an obligated
  426  group having cross-collateralized debt and the obligated group
  427  has obtained an investment grade credit rating from a nationally
  428  recognized credit rating agency, as applicable, from Moody’s
  429  Investors Service, Standard & Poor’s, or Fitch Ratings, the
  430  obligated group’s debt service coverage ratio will be used as
  431  the provider’s debt service coverage ratio.
  432         (b)The provider’s days cash on hand is less than the
  433  minimum number of days cash on hand specified in the provider’s
  434  bond covenants or lending agreement for long-term financing. If
  435  the provider does not have a days cash on hand required by its
  436  lending institution, the days cash on hand may not be less than
  437  100 as of the most recent annual report filed with the office.
  438  If the provider is a member of an obligated group having cross
  439  collateralized debt and the obligated group has obtained an
  440  investment grade credit rating from a nationally recognized
  441  credit rating agency, as applicable, from Moody’s Investors
  442  Service, Standard & Poor’s, or Fitch Ratings, the days cash on
  443  hand of the obligated group will be used as the provider’s days
  444  cash on hand.
  445         (c) The occupancy at the provider’s facility is less than
  446  80 percent, averaged over the 12-month period immediately
  447  preceding the reporting date.
  448         (24)(14) “Resident” means a purchaser of, a nominee of, or
  449  a subscriber to a continuing care or continuing care at-home
  450  contract. Such contract does not give the resident a part
  451  ownership of the facility in which the resident is to reside,
  452  unless expressly provided in the contract.
  453         (25)(15) “Shelter” means an independent living unit, room,
  454  apartment, cottage, villa, personal care unit, nursing bed, or
  455  other living area within a facility set aside for the exclusive
  456  use of one or more identified residents.
  457         Section 2. Section 651.012, Florida Statutes, is amended to
  458  read:
  459         651.012 Exempted facility; written disclosure of
  460  exemption.—Any facility exempted under ss. 632.637(1)(e) and
  461  651.011(21) 651.011(12) must provide written disclosure of such
  462  exemption to each person admitted to the facility after October
  463  1, 1996. This disclosure must be written using language likely
  464  to be understood by the person and must briefly explain the
  465  exemption.
  466         Section 3. Subsection (2) of section 651.013, Florida
  467  Statutes, is amended to read:
  468         651.013 Chapter exclusive; applicability of other laws.—
  469         (2) In addition to other applicable provisions cited in
  470  this chapter, the office has the authority granted under ss.
  471  624.302 and 624.303, 624.307-624.312, 624.318 624.308-624.312,
  472  624.319(1)-(3), 624.320-624.321, 624.324, and 624.34, and
  473  624.422 of the Florida Insurance Code to regulate providers of
  474  continuing care and continuing care at-home.
  475         Section 4. Section 651.019, Florida Statutes, is amended to
  476  read:
  477         651.019 New financing, additional financing, or
  478  refinancing.—
  479         (1)(a)A provider shall provide notice to the residents’
  480  council of any new financing or refinancing at least 30 days
  481  before the closing date of the financing or refinancing
  482  transaction. The notice must include a general outline of the
  483  amount and terms of the financing or refinancing and the
  484  intended use of proceeds.
  485         (b) If the facility does not have a residents’ council, the
  486  facility must make available, in the same manner as other
  487  community notices, the information required by paragraph (a)
  488  After issuance of a certificate of authority, the provider shall
  489  submit to the office a general outline, including intended use
  490  of proceeds, with respect to any new financing, additional
  491  financing, or refinancing at least 30 days before the closing
  492  date of such financing transaction.
  493         (2) Within 30 days after the closing date of such financing
  494  or refinancing transaction, The provider shall furnish any
  495  information the office may reasonably request in connection with
  496  any new financing, additional financing, or refinancing,
  497  including, but not limited to, the financing agreements and any
  498  related documents, escrow or trust agreements, and statistical
  499  or financial data. the provider shall also submit to the office
  500  copies of executed financing documents and escrow or trust
  501  agreements prepared in support of such financing or refinancing
  502  transaction, and a copy of all documents required to be
  503  submitted to the residents’ council under paragraph (1)(a)
  504  within 30 days after the closing date.
  505         Section 5. Section 651.021, Florida Statutes, is amended to
  506  read:
  507         651.021 Certificate of authority required.—
  508         (1)A No person may not engage in the business of providing
  509  continuing care, issuing contracts for continuing care or
  510  continuing care at-home, or constructing a facility for the
  511  purpose of providing continuing care in this state without a
  512  certificate of authority obtained from the office as provided in
  513  this chapter. This section subsection does not prohibit the
  514  preparation of a construction site or construction of a model
  515  residence unit for marketing purposes, or both. The office may
  516  allow the purchase of an existing building for the purpose of
  517  providing continuing care if the office determines that the
  518  purchase is not being made to circumvent the prohibitions in
  519  this section.
  520         (2) Written approval must be obtained from the office
  521  before commencing construction or marketing for an expansion of
  522  a certificated facility equivalent to the addition of at least
  523  20 percent of existing units or 20 percent or more in the number
  524  of continuing care at-home contracts. This provision does not
  525  apply to construction for which a certificate of need from the
  526  Agency for Health Care Administration is required.
  527         (a) For providers that offer both continuing care and
  528  continuing care at-home, the 20 percent is based on the total of
  529  both existing units and existing contracts for continuing care
  530  at-home. For purposes of this subsection, an expansion includes
  531  increases in the number of constructed units or continuing care
  532  at-home contracts or a combination of both.
  533         (b) The application for such approval shall be on forms
  534  adopted by the commission and provided by the office. The
  535  application must include the feasibility study required by s.
  536  651.022(3) or s. 651.023(1)(b) and such other information as
  537  required by s. 651.023. If the expansion is only for continuing
  538  care at-home contracts, an actuarial study prepared by an
  539  independent actuary in accordance with standards adopted by the
  540  American Academy of Actuaries which presents the financial
  541  impact of the expansion may be substituted for the feasibility
  542  study.
  543         (c) In determining whether an expansion should be approved,
  544  the office shall use the criteria provided in ss. 651.022(6) and
  545  651.023(4).
  546         Section 6. Section 651.0215, Florida Statutes, is created
  547  to read:
  548         651.0215 Consolidated application for provisional
  549  certificate of authority and certificate of authority; required
  550  restrictions on use of entrance fees.—
  551         (1)For an applicant to qualify for a certificate of
  552  authority without first obtaining a provisional certificate of
  553  authority, the following conditions must be met:
  554         (a)All reservation deposits and entrance fees must be
  555  placed in escrow in accordance with s. 651.033. The applicant
  556  may not use or pledge any part of an initial entrance fee for
  557  the construction or purchase of the facility or as security for
  558  long-term financing.
  559         (b)The reservation deposit may not exceed $5,000 upon a
  560  resident’s selection of a unit and must be refundable at any
  561  time before the resident takes occupancy of the selected unit.
  562         (c)The resident contract must state that collection of the
  563  balance of the entrance fee is to occur after the resident is
  564  notified that his or her selected unit is available for
  565  occupancy and on or before the occupancy date.
  566         (2)The consolidated application must be on a form
  567  prescribed by the commission and must contain all of the
  568  following information:
  569         (a)All of the information required under s 651.022(2).
  570         (b)A feasibility study prepared by an independent
  571  consultant which contains all of the information required by s.
  572  651.022(3) and financial forecasts or projections prepared in
  573  accordance with standards adopted by the American Institute of
  574  Certified Public Accountants or in accordance with standards for
  575  feasibility studies for continuing care retirement communities
  576  adopted by the Actuarial Standards Board.
  577         1.The feasibility study must take into account project
  578  costs, actual marketing results to date and marketing
  579  projections, resident fees and charges, competition, resident
  580  contract provisions, and other factors that affect the
  581  feasibility of operating the facility.
  582         2.If the feasibility study is prepared by an independent
  583  certified public accountant, it must contain an examination
  584  report, or a compilation report acceptable to the office,
  585  containing a financial forecast or projections for the first 5
  586  years of operations which take into account an actuary’s
  587  mortality and morbidity assumptions as the study relates to
  588  turnover, rates, fees, and charges. If the study is prepared by
  589  an independent consulting actuary, it must contain mortality and
  590  morbidity assumptions as it relates to turnover, rates, fees,
  591  and charges and an actuary’s signed opinion that the project as
  592  proposed is feasible and that the study has been prepared in
  593  accordance with Actuarial Standards of Practice No. 3 for
  594  Continuing Care Retirement Communities, Revised Edition,
  595  effective May 1, 2011.
  596         (c) Documents evidencing that commitments have been secured
  597  for construction financing and long-term financing or that a
  598  documented plan acceptable to the office has been adopted by the
  599  applicant for long-term financing.
  600         (d) Documents evidencing that all conditions of the lender
  601  have been satisfied to activate the commitment to disburse
  602  funds, other than the obtaining of the certificate of authority,
  603  the completion of construction, or the closing of the purchase
  604  of realty or buildings for the facility.
  605         (e) Documents evidencing that the aggregate amount of
  606  entrance fees received by or pledged to the applicant, plus
  607  anticipated proceeds from any long-term financing commitment and
  608  funds from all other sources in the actual possession of the
  609  applicant, equal at least 100 percent of the aggregate cost of
  610  constructing or purchasing, equipping, and furnishing the
  611  facility plus 100 percent of the anticipated startup losses of
  612  the facility.
  613         (f) A complete audited financial report of the applicant,
  614  prepared by an independent certified public accountant in
  615  accordance with generally accepted accounting principles, as of
  616  the date the applicant commenced business operations or for the
  617  fiscal year that ended immediately preceding the date of
  618  application, whichever is later, and complete unaudited
  619  quarterly financial statements attested to by the applicant
  620  after the date of the last audit.
  621         (g) Documents evidencing that the applicant will be able to
  622  comply with s. 651.035.
  623         (h) Such other reasonable data, financial statements, and
  624  pertinent information as the commission or office may require
  625  with respect to the applicant or the facility to determine the
  626  financial status of the facility and the management capabilities
  627  of its managers and owners.
  628         (3) If an applicant has or proposes to have more than one
  629  facility offering continuing care or continuing care at-home, a
  630  separate certificate of authority must be obtained for each
  631  facility.
  632         (4) Within 45 days after receipt of the information
  633  required under subsection (2), the office shall examine the
  634  information and notify the applicant in writing, specifically
  635  requesting any additional information that the office is
  636  authorized to require. An application is deemed complete when
  637  the office receives all requested information and the applicant
  638  corrects any error or omission of which the applicant was timely
  639  notified or when the time for such notification has expired.
  640  Within 15 days after receipt of all of the requested additional
  641  information, the office shall notify the applicant in writing
  642  that all of the requested information has been received and that
  643  the application is deemed to be complete as of the date of the
  644  notice. Failure to notify the applicant in writing within the
  645  15-day period constitutes acknowledgment by the office that it
  646  has received all requested additional information, and the
  647  application is deemed complete for purposes of review on the
  648  date the applicant files all of the required additional
  649  information.
  650         (5) Within 45 days after an application is deemed complete
  651  as set forth in subsection (4) and upon completion of the
  652  remaining requirements of this section, the office shall
  653  complete its review and issue or deny a certificate of authority
  654  to the applicant. The period for review by the office may not be
  655  tolled if the office requests additional information and the
  656  applicant provides the requested information within 5 business
  657  days. If a certificate of authority is denied, the office must
  658  notify the applicant in writing, citing the specific failures to
  659  satisfy this chapter, and the applicant is entitled to an
  660  administrative hearing pursuant to chapter 120.
  661         (6)The office shall issue a certificate of authority upon
  662  determining that the applicant meets all requirements of law and
  663  has submitted all of the information required under this
  664  section, that all escrow requirements have been satisfied, and
  665  that the fees prescribed in s. 651.015(2) have been paid.
  666         (7) The issuance of a certificate of authority entitles the
  667  applicant to begin construction and collect reservation deposits
  668  and entrance fees from prospective residents. The reservation
  669  contract must state the cancellation policy and the terms of the
  670  continuing care contract to be entered into. All or any part of
  671  an entrance fee or reservation deposit collected must be placed
  672  in an escrow account or on deposit with the department pursuant
  673  to s. 651.033.
  674         (8) The provider is entitled to secure release of the
  675  moneys held in escrow within 7 days after the office receives an
  676  affidavit from the provider, along with appropriate
  677  documentation to verify, and notification is provided to the
  678  escrow agent by certified mail, that the following conditions
  679  have been satisfied:
  680         (a) A certificate of occupancy has been issued.
  681         (b) Payment in full has been received for at least 70
  682  percent of the total units of a phase or of the total of the
  683  combined phases constructed. If a provider offering continuing
  684  care at-home is applying for a release of escrowed entrance
  685  fees, the same minimum requirement must be met for the
  686  continuing care and continuing care at-home contracts
  687  independently of each other.
  688         (c) The provider has evidence of sufficient funds to meet
  689  the requirements of s. 651.035, which may include funds
  690  deposited in the initial entrance fee account.
  691         (d) Documents evidencing the intended application of the
  692  proceeds upon release and documents evidencing that the entrance
  693  fees, when released, will be applied as represented to the
  694  office.
  695  
  696  Notwithstanding chapter 120, a person, other than the provider,
  697  the escrow agent, and the office, may not have a substantial
  698  interest in any decision by the office regarding the release of
  699  escrow funds in any proceeding under chapter 120 or this
  700  chapter.
  701         (9) The office may not approve any application that
  702  includes in the plan of financing any encumbrance of the
  703  operating reserves or renewal and replacement reserves required
  704  by this chapter.
  705         (10)The office may not issue a certificate of authority to
  706  a facility that does not have a component that is to be licensed
  707  pursuant to part II of chapter 400 or part I of chapter 429, or
  708  that does not offer personal services or nursing services
  709  through written contractual agreement. A written contractual
  710  agreement must be disclosed in the contract for continuing care
  711  or continuing care at-home and is subject to s. 651.1151.
  712         Section 7. Subsection (2) and present subsections (6) and
  713  (8) of section 651.022, Florida Statutes, are amended, present
  714  subsections (3) through (8) of that section are redesignated as
  715  subsections (4) through (9), respectively, and a new subsection
  716  (3) is added to that section, to read:
  717         651.022 Provisional certificate of authority; application.—
  718         (2) The application for a provisional certificate of
  719  authority must shall be on a form prescribed by the commission
  720  and must shall contain the following information:
  721         (a) If the applicant or provider is a corporation, a copy
  722  of the articles of incorporation and bylaws; if the applicant or
  723  provider is a partnership or other unincorporated association, a
  724  copy of the partnership agreement, articles of association, or
  725  other membership agreement; and, if the applicant or provider is
  726  a trust, a copy of the trust agreement or instrument.
  727         (b) The full names, residences, and business addresses of:
  728         1. The proprietor, if the applicant or provider is an
  729  individual.
  730         2. Every partner or member, if the applicant or provider is
  731  a partnership or other unincorporated association, however
  732  organized, having fewer than 50 partners or members, together
  733  with the business name and address of the partnership or other
  734  organization.
  735         3. The principal partners or members, if the applicant or
  736  provider is a partnership or other unincorporated association,
  737  however organized, having 50 or more partners or members,
  738  together with the business name and business address of the
  739  partnership or other organization. If such unincorporated
  740  organization has officers and a board of directors, the full
  741  name and business address of each officer and director may be
  742  set forth in lieu of the full name and business address of its
  743  principal members.
  744         4. The corporation and each officer and director thereof,
  745  if the applicant or provider is a corporation.
  746         5. Every trustee and officer, if the applicant or provider
  747  is a trust.
  748         6. The manager, whether an individual, corporation,
  749  partnership, or association.
  750         7. Any stockholder holding at least a 10 percent interest
  751  in the operations of the facility in which the care is to be
  752  offered.
  753         8. Any person whose name is required to be provided in the
  754  application under this paragraph and who owns any interest in or
  755  receives any remuneration from, directly or indirectly, any
  756  professional service firm, association, trust, partnership, or
  757  corporation providing goods, leases, or services to the facility
  758  for which the application is made, with a real or anticipated
  759  value of $10,000 or more, and the name and address of the
  760  professional service firm, association, trust, partnership, or
  761  corporation in which such interest is held. The applicant shall
  762  describe such goods, leases, or services and the probable cost
  763  to the facility or provider and shall describe why such goods,
  764  leases, or services should not be purchased from an independent
  765  entity.
  766         9. Any person, corporation, partnership, association, or
  767  trust owning land or property leased to the facility, along with
  768  a copy of the lease agreement.
  769         10. Any affiliated parent or subsidiary corporation or
  770  partnership.
  771         (c)1. Evidence that the applicant is reputable and of
  772  responsible character. If the applicant is a firm, association,
  773  organization, partnership, business trust, corporation, or
  774  company, the form must shall require evidence that the members
  775  or shareholders are reputable and of responsible character, and
  776  the person in charge of providing care under a certificate of
  777  authority are shall likewise be required to produce evidence of
  778  being reputable and of responsible character.
  779         2. Evidence satisfactory to the office of the ability of
  780  the applicant to comply with the provisions of this chapter and
  781  with rules adopted by the commission pursuant to this chapter.
  782         3. A statement of whether a person identified in the
  783  application for a provisional certificate of authority or the
  784  administrator or manager of the facility, if such person has
  785  been designated, or any such person living in the same location:
  786         a. Has been convicted of a felony or has pleaded nolo
  787  contendere to a felony charge, or has been held liable or has
  788  been enjoined in a civil action by final judgment, if the felony
  789  or civil action involved fraud, embezzlement, fraudulent
  790  conversion, or misappropriation of property.
  791         b. Is subject to a currently effective injunctive or
  792  restrictive order or federal or state administrative order
  793  relating to business activity or health care as a result of an
  794  action brought by a public agency or department, including,
  795  without limitation, an action affecting a license under chapter
  796  400 or chapter 429.
  797  
  798  The statement must shall set forth the court or agency, the date
  799  of conviction or judgment, and the penalty imposed or damages
  800  assessed, or the date, nature, and issuer of the order. Before
  801  determining whether a provisional certificate of authority is to
  802  be issued, the office may make an inquiry to determine the
  803  accuracy of the information submitted pursuant to subparagraphs
  804  1., 2., and 3. 1. and 2.
  805         (d) The contracts for continuing care and continuing care
  806  at-home to be entered into between the provider and residents
  807  which meet the minimum requirements of s. 651.055 or s. 651.057
  808  and which include a statement describing the procedures required
  809  by law relating to the release of escrowed entrance fees. Such
  810  statement may be furnished through an addendum.
  811         (e) Any advertisement or other written material proposed to
  812  be used in the solicitation of residents.
  813         (f) Such other reasonable data, financial statements, and
  814  pertinent information as the commission or office may reasonably
  815  require with respect to the provider or the facility, including
  816  the most recent audited financial report statements of
  817  comparable facilities currently or previously owned, managed, or
  818  developed by the applicant or its principal, to assist in
  819  determining the financial viability of the project and the
  820  management capabilities of its managers and owners.
  821         (g) The forms of the residency contracts, reservation
  822  contracts, escrow agreements, and wait list contracts, if
  823  applicable, which are proposed to be used by the provider in the
  824  furnishing of care. The office shall approve contracts and
  825  escrow agreements that comply with ss. 651.023(1)(c), 651.033,
  826  651.055, and 651.057. Thereafter, no other form of contract or
  827  agreement may be used by the provider until it has been
  828  submitted to the office and approved.
  829  
  830  If any material change occurs in the facts set forth in an
  831  application filed with the office pursuant to this subsection,
  832  an amendment setting forth such change must be filed with the
  833  office within 10 business days after the applicant becomes aware
  834  of such change, and a copy of the amendment must be sent by
  835  registered mail to the principal office of the facility and to
  836  the principal office of the controlling company.
  837         (3) In addition to the information required in subsection
  838  (2), an applicant for a provisional certificate of authority
  839  must submit a feasibility study with appropriate financial,
  840  marketing, and actuarial assumptions for the first 5 years of
  841  operations. The feasibility study must include at least the
  842  following information:
  843         (a)A description of the proposed facility, including the
  844  location, size, anticipated completion date, and the proposed
  845  construction program.
  846         (b) Identification and an evaluation of the primary and, if
  847  appropriate, the secondary market areas of the facility and the
  848  projected unit sales per month.
  849         (c)Projected revenues, including anticipated entrance
  850  fees; monthly service fees; nursing care revenues, if
  851  applicable; and all other sources of revenue.
  852         (d)Projected expenses, including staffing requirements and
  853  salaries; cost of property, plant, and equipment, including
  854  depreciation expense; interest expense; marketing expense; and
  855  other operating expenses.
  856         (e)A projected balance sheet of the applicant.
  857         (f)Expectations of the financial condition of the project,
  858  including the projected cash flow, and an estimate of the funds
  859  anticipated to be necessary to cover startup losses.
  860         (g)The inflation factor, if any, assumed in the
  861  feasibility study for the proposed facility and how and where it
  862  is applied.
  863         (h)Project costs and the total amount of debt financing
  864  required, marketing projections, resident fees and charges, the
  865  competition, resident contract provisions, and other factors
  866  that affect the feasibility of the facility.
  867         (i)Appropriate population projections, including morbidity
  868  and mortality assumptions.
  869         (j)The name of the person who prepared the feasibility
  870  study and the experience of such person in preparing similar
  871  studies or otherwise consulting in the field of continuing care.
  872  The preparer of the feasibility study may be the provider or a
  873  contracted third party.
  874         (k)Any other information that the applicant deems relevant
  875  and appropriate to enable the office to make a more informed
  876  determination.
  877         (7)(6) Within 45 days after the date an application is
  878  deemed complete as set forth in paragraph (6)(b) (5)(b), the
  879  office shall complete its review and issue a provisional
  880  certificate of authority to the applicant based upon its review
  881  and a determination that the application meets all requirements
  882  of law, that the feasibility study was based on sufficient data
  883  and reasonable assumptions, and that the applicant will be able
  884  to provide continuing care or continuing care at-home as
  885  proposed and meet all financial and contractual obligations
  886  related to its operations, including the financial requirements
  887  of this chapter. The period for review by the office may not be
  888  tolled if the office requests additional information and the
  889  applicant provides the requested information within 5 business
  890  days. If the application is denied, the office shall notify the
  891  applicant in writing, citing the specific failures to meet the
  892  provisions of this chapter. Such denial entitles the applicant
  893  to a hearing pursuant to chapter 120.
  894         (9)(8) The office may shall not approve any application
  895  that which includes in the plan of financing any encumbrance of
  896  the operating reserves or renewal and replacement reserves
  897  required by this chapter.
  898         Section 8. Subsections (1) through (4), paragraph (b) of
  899  subsection (5), and subsections (6), (8), and (9) of section
  900  651.023, Florida Statutes, are amended to read:
  901         651.023 Certificate of authority; application.—
  902         (1) After issuance of a provisional certificate of
  903  authority, the office shall issue to the holder of such
  904  provisional certificate a certificate of authority if the holder
  905  of the provisional certificate provides the office with the
  906  following information:
  907         (a) Any material change in status with respect to the
  908  information required to be filed under s. 651.022(2) in the
  909  application for the provisional certificate.
  910         (b) A feasibility study prepared by an independent
  911  consultant which contains all of the information required by s.
  912  651.022(4) s. 651.022(3) and financial forecasts or projections
  913  prepared in accordance with standards adopted by the American
  914  Institute of Certified Public Accountants or in accordance with
  915  standards for feasibility studies or continuing care retirement
  916  communities adopted by the Actuarial Standards Board.
  917         1. The study must also contain an independent evaluation
  918  and examination opinion, or a comparable opinion acceptable to
  919  the office, by the consultant who prepared the study, of the
  920  underlying assumptions used as a basis for the forecasts or
  921  projections in the study and that the assumptions are reasonable
  922  and proper and the project as proposed is feasible.
  923         1.2. The study must take into account project costs, actual
  924  marketing results to date and marketing projections, resident
  925  fees and charges, competition, resident contract provisions, and
  926  any other factors which affect the feasibility of operating the
  927  facility.
  928         2.3. If the study is prepared by an independent certified
  929  public accountant, it must contain an examination opinion, or a
  930  compilation report acceptable to the office, containing a
  931  financial forecast or projections for the first 5 3 years of
  932  operations which take into account an actuary’s mortality and
  933  morbidity assumptions as the study relates to turnover, rates,
  934  fees, and charges and financial projections having a compilation
  935  opinion for the next 3 years. If the study is prepared by an
  936  independent consulting actuary, it must contain mortality and
  937  morbidity assumptions as the study relates to turnover, rates,
  938  fees, and charges, data and an actuary’s signed opinion that the
  939  project as proposed is feasible and that the study has been
  940  prepared in accordance with standards adopted by the American
  941  Academy of Actuaries.
  942         (c) Subject to subsection (4), a provider may submit an
  943  application for a certificate of authority and any required
  944  exhibits upon submission of documents evidencing proof that the
  945  project has a minimum of 30 percent of the units reserved for
  946  which the provider is charging an entrance fee. This does not
  947  apply to an application for a certificate of authority for the
  948  acquisition of a facility for which a certificate of authority
  949  was issued before October 1, 1983, to a provider who
  950  subsequently becomes a debtor in a case under the United States
  951  Bankruptcy Code, 11 U.S.C. ss. 101 et seq., or to a provider for
  952  which the department has been appointed receiver pursuant to
  953  part II of chapter 631.
  954         (d) Documents evidencing Proof that commitments have been
  955  secured for both construction financing and long-term financing
  956  or a documented plan acceptable to the office has been adopted
  957  by the applicant for long-term financing.
  958         (e) Documents evidencing Proof that all conditions of the
  959  lender have been satisfied to activate the commitment to
  960  disburse funds other than the obtaining of the certificate of
  961  authority, the completion of construction, or the closing of the
  962  purchase of realty or buildings for the facility.
  963         (f) Documents evidencing Proof that the aggregate amount of
  964  entrance fees received by or pledged to the applicant, plus
  965  anticipated proceeds from any long-term financing commitment,
  966  plus funds from all other sources in the actual possession of
  967  the applicant, equal at least 100 percent of the aggregate cost
  968  of constructing or purchasing, equipping, and furnishing the
  969  facility plus 100 percent of the anticipated startup losses of
  970  the facility.
  971         (g) A complete audited financial report statements of the
  972  applicant, prepared by an independent certified public
  973  accountant in accordance with generally accepted accounting
  974  principles, as of the date the applicant commenced business
  975  operations or for the fiscal year that ended immediately
  976  preceding the date of application, whichever is later, and
  977  complete unaudited quarterly financial statements attested to by
  978  the applicant after the date of the last audit.
  979         (h) Documents evidencing Proof that the applicant has
  980  complied with the escrow requirements of subsection (5) or
  981  subsection (7) and will be able to comply with s. 651.035.
  982         (i) Such other reasonable data, financial statements, and
  983  pertinent information as the commission or office may require
  984  with respect to the applicant or the facility, to determine the
  985  financial status of the facility and the management capabilities
  986  of its managers and owners.
  987  
  988  If any material change occurs in the facts set forth in an
  989  application filed with the office pursuant to this subsection,
  990  an amendment setting forth such change must be filed with the
  991  office within 10 business days, and a copy of the amendment must
  992  be sent by registered mail to the principal office of the
  993  facility and to the principal office of the controlling company.
  994         (2) Within 30 days after receipt of the information
  995  required under subsection (1), the office shall examine such
  996  information and notify the provider in writing, specifically
  997  requesting any additional information the office is permitted by
  998  law to require. Within 15 days after receipt of all of the
  999  requested additional information, the office shall notify the
 1000  provider in writing that all of the requested information has
 1001  been received, and the application is deemed to be complete as
 1002  of the date of the notice. Failure to notify the provider in
 1003  writing within the 15-day period constitutes acknowledgment by
 1004  the office that it has received all requested additional
 1005  information, and the application is deemed complete for purposes
 1006  of review on the date of filing all of the required additional
 1007  information Within 15 days after receipt of all of the requested
 1008  additional information, the office shall notify the provider in
 1009  writing that all of the requested information has been received
 1010  and the application is deemed to be complete as of the date of
 1011  the notice. Failure to notify the applicant in writing within
 1012  the 15-day period constitutes acknowledgment by the office that
 1013  it has received all requested additional information, and the
 1014  application shall be deemed complete for purposes of review on
 1015  the date of filing all of the required additional information.
 1016         (3) Within 45 days after an application is deemed complete
 1017  as set forth in subsection (2), and upon completion of the
 1018  remaining requirements of this section, the office shall
 1019  complete its review and issue or deny a certificate of authority
 1020  to the holder of a provisional certificate of authority. If a
 1021  certificate of authority is denied, the office must notify the
 1022  holder of the provisional certificate in writing, citing the
 1023  specific failures to satisfy the provisions of this chapter. The
 1024  period for review by the office may not be tolled if the office
 1025  requests additional information and the applicant provides the
 1026  requested information within 5 business days. If denied, the
 1027  holder of the provisional certificate is entitled to an
 1028  administrative hearing pursuant to chapter 120.
 1029         (4) The office shall issue a certificate of authority upon
 1030  determining that the applicant meets all requirements of law and
 1031  has submitted all of the information required by this section,
 1032  that all escrow requirements have been satisfied, and that the
 1033  fees prescribed in s. 651.015(2) have been paid.
 1034         (a) A Notwithstanding satisfaction of the 30-percent
 1035  minimum reservation requirement of paragraph (1)(c), no
 1036  certificate of authority may not shall be issued until
 1037  documentation evidencing that the project has a minimum of 50
 1038  percent of the units reserved for which the provider is charging
 1039  an entrance fee, and proof is provided to the office. If a
 1040  provider offering continuing care at-home is applying for a
 1041  certificate of authority or approval of an expansion pursuant to
 1042  s. 651.021(2), the same minimum reservation requirements must be
 1043  met for the continuing care and continuing care at-home
 1044  contracts, independently of each other.
 1045         (b) In order for a unit to be considered reserved under
 1046  this section, the provider must collect a minimum deposit of the
 1047  lesser of $40,000 or 10 percent of the then-current entrance fee
 1048  for that unit, and may assess a forfeiture penalty of 2 percent
 1049  of the entrance fee due to termination of the reservation
 1050  contract after 30 days for any reason other than the death or
 1051  serious illness of the resident, the failure of the provider to
 1052  meet its obligations under the reservation contract, or other
 1053  circumstances beyond the control of the resident that equitably
 1054  entitle the resident to a refund of the resident’s deposit. The
 1055  reservation contract must state the cancellation policy and the
 1056  terms of the continuing care or continuing care at-home contract
 1057  to be entered into.
 1058         (5) Up to 25 percent of the moneys paid for all or any part
 1059  of an initial entrance fee may be included or pledged for the
 1060  construction or purchase of the facility or as security for
 1061  long-term financing. The term “initial entrance fee” means the
 1062  total entrance fee charged by the facility to the first occupant
 1063  of a unit.
 1064         (b) For an expansion as provided in s. 651.0246 s.
 1065  651.021(2), a minimum of 75 percent of the moneys paid for all
 1066  or any part of an initial entrance fee collected for continuing
 1067  care and 50 percent of the moneys paid for all or any part of an
 1068  initial fee collected for continuing care at-home shall be
 1069  placed in an escrow account or on deposit with the department as
 1070  prescribed in s. 651.033.
 1071         (6) The provider is entitled to secure release of the
 1072  moneys held in escrow within 7 days after receipt by the office
 1073  of an affidavit from the provider, along with appropriate copies
 1074  to verify, and notification to the escrow agent by certified
 1075  mail, that the following conditions have been satisfied:
 1076         (a) A certificate of occupancy has been issued.
 1077         (b) Payment in full has been received for at least 70
 1078  percent of the total units of a phase or of the total of the
 1079  combined phases constructed. If a provider offering continuing
 1080  care at-home is applying for a release of escrowed entrance
 1081  fees, the same minimum requirement must be met for the
 1082  continuing care and continuing care at-home contracts,
 1083  independently of each other.
 1084         (c) The consultant who prepared the feasibility study
 1085  required by this section or a substitute approved by the office
 1086  certifies within 12 months before the date of filing for office
 1087  approval that there has been no material adverse change in
 1088  status with regard to the feasibility study. If a material
 1089  adverse change exists at the time of submission, sufficient
 1090  information acceptable to the office and the feasibility
 1091  consultant must be submitted which remedies the adverse
 1092  condition.
 1093         (c)(d)Documents evidencing Proof that commitments have
 1094  been secured or a documented plan adopted by the applicant has
 1095  been approved by the office for long-term financing.
 1096         (d)(e)Documents evidencing Proof that the provider has
 1097  sufficient funds to meet the requirements of s. 651.035, which
 1098  may include funds deposited in the initial entrance fee account.
 1099         (e)(f)Documents evidencing Proof as to the intended
 1100  application of the proceeds upon release and documentation proof
 1101  that the entrance fees when released will be applied as
 1102  represented to the office.
 1103         (f) If any material change occurred in the facts set forth
 1104  in the application filed with the office pursuant to subsection
 1105  (1), the applicant timely filed the amendment setting forth such
 1106  change with the office and sent copies of the amendment to the
 1107  principal office of the facility and to the principal office of
 1108  the controlling company as required under that subsection.
 1109  
 1110  Notwithstanding chapter 120, no person, other than the provider,
 1111  the escrow agent, and the office, may have a substantial
 1112  interest in any office decision regarding release of escrow
 1113  funds in any proceedings under chapter 120 or this chapter
 1114  regarding release of escrow funds.
 1115         (8) The timeframes provided under s. 651.022(5) and (6)
 1116  apply to applications submitted under s. 651.021(2). The office
 1117  may not issue a certificate of authority to a facility that does
 1118  not have a component that is to be licensed pursuant to part II
 1119  of chapter 400 or to part I of chapter 429 or that does not
 1120  offer personal services or nursing services through written
 1121  contractual agreement. A written contractual agreement must be
 1122  disclosed in the contract for continuing care or continuing care
 1123  at-home and is subject to the provisions of s. 651.1151,
 1124  relating to administrative, vendor, and management contracts.
 1125         (9) The office may not approve an application that includes
 1126  in the plan of financing any encumbrance of the operating
 1127  reserves or renewal and replacement reserves required by this
 1128  chapter.
 1129         Section 9. Section 651.024, Florida Statutes, is amended to
 1130  read:
 1131         651.024 Acquisition.—
 1132         (1) A person who seeks to assume the role of general
 1133  partner of a provider or otherwise assume ownership or
 1134  possession of, or control over, 10 percent or more of a
 1135  provider’s assets, based on the balance sheet from the most
 1136  recent financial audit filed with the office, is issued a
 1137  certificate of authority to operate a continuing care facility
 1138  or a provisional certificate of authority shall be subject to
 1139  the provisions of s. 628.4615 and is not required to make
 1140  filings pursuant to s. 651.022, s. 651.023, or s. 651.0245.
 1141         (2) A person who seeks to acquire and become the provider
 1142  for a facility is subject to s. 651.0245 and is not required to
 1143  make filings pursuant to ss. 628.4615, 651.022, and 651.023.
 1144         (3) A person may rebut a presumption of control by filing a
 1145  disclaimer of control with the office on a form prescribed by
 1146  the commission. The disclaimer must fully disclose all material
 1147  relationships and bases for affiliation between the person and
 1148  the provider or facility, as well as the basis for disclaiming
 1149  the affiliation. In lieu of such form, a person or acquiring
 1150  party may file with the office a copy of a Schedule 13G filed
 1151  with the Securities and Exchange Commission pursuant to Rule
 1152  13d-1(b) or (c), 17 C.F.R. s. 240.13d-1, under the Securities
 1153  Exchange Act of 1934, as amended. After a disclaimer has been
 1154  filed, the provider or facility is relieved of any duty to
 1155  register or report under this section which may arise out of the
 1156  provider’s or facility’s relationship with the person, unless
 1157  the office disallows the disclaimer.
 1158         (4) As used in this section, the term:
 1159         (a) “Controlling company” means any corporation, trust, or
 1160  association that directly or indirectly owns 25 percent or more
 1161  of the voting securities of one or more facilities that are
 1162  stock corporations, or 25 percent or more of the ownership
 1163  interest of one or more facilities that are not stock
 1164  corporations.
 1165         (b) “Natural person” means an individual.
 1166         (c) “Person” includes a natural person, corporation,
 1167  association, trust, general partnership, limited partnership,
 1168  joint venture, firm, proprietorship, or any other entity that
 1169  may hold a license or certificate as a facility.
 1170         (5) In addition to the facility or the controlling company,
 1171  the office has standing to petition a circuit court as described
 1172  in s. 628.4615(9).
 1173         Section 10. Section 651.0245, Florida Statutes, is created
 1174  to read:
 1175         651.0245 Application for the simultaneous acquisition of a
 1176  facility and issuance of a certificate of authority.—
 1177         (1) Except with the prior written approval of the office, a
 1178  person may not, individually or in conjunction with any
 1179  affiliated person of such person, directly or indirectly acquire
 1180  a facility operating under a subsisting certificate of authority
 1181  and engage in the business of providing continuing care.
 1182         (2) An applicant seeking simultaneous acquisition of a
 1183  facility and issuance of a certificate of authority must:
 1184         (a) Comply with the notice requirements of s.
 1185  628.4615(2)(a); and
 1186         (b) File an application in the form required by the office
 1187  and cooperate with the office’s review of the application.
 1188         (3) The commission shall adopt by rule application
 1189  requirements equivalent to those described in ss. 628.4615(4)
 1190  and (5), 651.022(2)(a)-(g), and 651.023(1)(b). The office shall
 1191  review the application and issue an approval or disapproval of
 1192  the filing in accordance with ss. 628.4615(6)(a) and (c), (7)
 1193  (10), and (14); 651.022(9); and 651.023(1)(b).
 1194         (4) As used in this section, the term:
 1195         (a) “Controlling company” means any corporation, trust, or
 1196  association that directly or indirectly owns 25 percent or more
 1197  of the voting securities of one or more facilities that are
 1198  stock corporations, or 25 percent or more of the ownership
 1199  interest of one or more facilities that are not stock
 1200  corporations.
 1201         (b) “Natural person” means an individual.
 1202         (c) “Person” includes a natural person, corporation,
 1203  association, trust, general partnership, limited partnership,
 1204  joint venture, firm, proprietorship, or any other entity that
 1205  may hold a license or certificate as a facility.
 1206         (5)In addition to the facility or the controlling company,
 1207  the office has standing to petition a circuit court as described
 1208  in s. 628.4615(9).
 1209         (6) A person may rebut a presumption of control by filing a
 1210  disclaimer of control with the office on a form prescribed by
 1211  the commission. The disclaimer must fully disclose all material
 1212  relationships and bases for affiliation between the person and
 1213  the provider or facility, as well as the basis for disclaiming
 1214  the affiliation. In lieu of such form, a person or acquiring
 1215  party may file with the office a copy of a Schedule 13G filed
 1216  with the Securities and Exchange Commission pursuant to Rule
 1217  13d-1(b) or (c), 17 C.F.R. s. 240.13d-1, under the Securities
 1218  Exchange Act of 1934, as amended. After a disclaimer has been
 1219  filed, the provider or facility is relieved of any duty to
 1220  register or report under this section which may arise out of the
 1221  provider’s or facility’s relationship with the person, unless
 1222  the office disallows the disclaimer.
 1223         (7) The commission may adopt, amend, or repeal rules as
 1224  necessary to administer this section.
 1225         Section 11. Section 651.0246, Florida Statutes, is created
 1226  to read:
 1227         651.0246 Expansions.—
 1228         (1)(a)A provider must obtain written approval from the
 1229  office before commencing construction or marketing for an
 1230  expansion of a certificated facility equivalent to the addition
 1231  of at least 20 percent of existing units or 20 percent or more
 1232  in the number of continuing care at-home contracts. If the
 1233  provider has exceeded the current statewide median for days cash
 1234  on hand, debt service coverage ratio, and total campus occupancy
 1235  for two consecutive annual reporting periods, the provider is
 1236  automatically granted approval to expand the total number of
 1237  existing units by up to 35 percent upon submitting a letter to
 1238  the office indicating the total number of planned units in the
 1239  expansion, the proposed sources and uses of funds, and an
 1240  attestation that the provider understands and pledges to comply
 1241  with all minimum liquid reserve and escrow account requirements.
 1242  As used in this section, the term “existing units” means the sum
 1243  of the total number of independent living units and assisted
 1244  living units identified in the most recent annual report filed
 1245  with the office pursuant to s. 651.026. For purposes of this
 1246  section, the statewide median for days cash on hand, debt
 1247  service coverage ratio, and total campus occupancy is the median
 1248  calculated in the most recent annual report submitted by the
 1249  office to the Continuing Care Advisory Council pursuant to s.
 1250  651.121(8). This section does not apply to construction for
 1251  which a certificate of need from the Agency for Health Care
 1252  Administration is required.
 1253         (b) The application for such approval must be on forms
 1254  adopted by the commission and provided by the office. The
 1255  application must include the feasibility study required by this
 1256  section and such other information as reasonably requested by
 1257  the office. If the expansion is only for continuing care at-home
 1258  contracts, an actuarial study prepared by an independent actuary
 1259  in accordance with standards adopted by the American Academy of
 1260  Actuaries which presents the financial impact of the expansion
 1261  may be substituted for the feasibility study.
 1262         (c) In determining whether an expansion should be approved,
 1263  the office shall consider:
 1264         1. Whether the application meets all requirements of law;
 1265         2. Whether the feasibility study was based on sufficient
 1266  data and reasonable assumptions; and
 1267         3.Whether the applicant will be able to provide continuing
 1268  care or continuing care at-home as proposed and meet all
 1269  financial obligations related to its operations, including the
 1270  financial requirements of this chapter.
 1271  
 1272  If the application is denied, the office must notify the
 1273  applicant in writing, citing the specific failures to meet the
 1274  provisions of this chapter. A denial entitles the applicant to a
 1275  hearing pursuant to chapter 120.
 1276         (2) A provider applying for expansion of a certificated
 1277  facility must submit all of the following:
 1278         (a) A feasibility study prepared by an independent
 1279  certified public accountant. The feasibility study must include
 1280  at least the following information:
 1281         1. A description of the facility and proposed expansion,
 1282  including the location, size, anticipated completion date, and
 1283  the proposed construction program.
 1284         2. An identification and evaluation of the primary and, if
 1285  applicable, secondary market areas of the facility and the
 1286  projected unit sales per month.
 1287         3. Projected revenues, including anticipated entrance fees;
 1288  monthly service fees; nursing care rates, if applicable; and all
 1289  other sources of revenue.
 1290         4. Projected expenses, including for staffing requirements
 1291  and salaries; the cost of property, plant, and equipment,
 1292  including depreciation expense; interest expense; marketing
 1293  expense; and other operating expenses.
 1294         5. A projected balance sheet of the applicant.
 1295         6. Expectations of the financial condition of the project,
 1296  including the projected cash flow and an estimate of the funds
 1297  anticipated to be necessary to cover startup losses.
 1298         7. The inflation factor, if any, assumed in the study for
 1299  the proposed expansion and how and where it is applied.
 1300         8. Project costs, the total amount of debt financing
 1301  required, marketing projections, resident fees and charges, the
 1302  competition, resident contract provisions, and other factors
 1303  that affect the feasibility of the facility.
 1304         9.Appropriate population projections, including morbidity
 1305  and mortality assumptions.
 1306         10. The name of the person who prepared the feasibility
 1307  study and his or her experience in preparing similar studies or
 1308  otherwise consulting in the field of continuing care.
 1309         11. Financial forecasts or projections prepared in
 1310  accordance with standards adopted by the American Institute of
 1311  Certified Public Accountants or in accordance with standards for
 1312  feasibility studies for continuing care retirement communities
 1313  adopted by the Actuarial Standards Board.
 1314         12. An independent evaluation and examination opinion for
 1315  the first 5 years of operations, or a comparable opinion
 1316  acceptable to the office, by the consultant who prepared the
 1317  study, of the underlying assumptions used as a basis for the
 1318  forecasts or projections in the study and that the assumptions
 1319  are reasonable and proper and the project as proposed is
 1320  feasible.
 1321         13. Any other information that the provider deems relevant
 1322  and appropriate to provide to enable the office to make a more
 1323  informed determination.
 1324         (b) Such other reasonable data, financial statements, and
 1325  pertinent information as the commission or office may require
 1326  with respect to the applicant or the facility to determine the
 1327  financial status of the facility and the management capabilities
 1328  of its managers and owners.
 1329         (3) A minimum of 75 percent of the moneys paid for all or
 1330  any part of an initial entrance fee or reservation deposit
 1331  collected for continuing care and 50 percent of the moneys paid
 1332  for all or any part of an initial fee collected for continuing
 1333  care at-home must be placed in an escrow account or on deposit
 1334  with the department as prescribed in s. 651.033. Up to 25
 1335  percent of the moneys paid for all or any part of an initial
 1336  entrance fee or reservation deposit may be included or pledged
 1337  for the construction or purchase of the facility or as security
 1338  for long-term financing. As used in this section, the term
 1339  “initial entrance fee” means the total entrance fee charged by
 1340  the facility to the first occupant of a unit.
 1341  
 1342  Entrance fees and reservation deposits collected for expansions
 1343  must be held pursuant to the escrow requirements of s.
 1344  651.023(5) and (6).
 1345         (4) The provider is entitled to secure release of the
 1346  moneys held in escrow within 7 days after receipt by the office
 1347  of an affidavit from the provider, along with appropriate copies
 1348  to verify, and notification to the escrow agent by certified
 1349  mail that the following conditions have been satisfied:
 1350         (a) A certificate of occupancy has been issued.
 1351         (b) Payment in full has been received for at least 50
 1352  percent of the total units of a phase or of the total of the
 1353  combined phases constructed. If a provider offering continuing
 1354  care at-home is applying for a release of escrowed entrance
 1355  fees, the same minimum requirement must be met for the
 1356  continuing care and continuing care at-home contracts
 1357  independently of each other.
 1358         (c) Documents evidencing that commitments have been secured
 1359  or that a documented plan adopted by the applicant has been
 1360  approved by the office for long-term financing.
 1361         (d) Documents evidencing that the provider has sufficient
 1362  funds to meet the requirements of s. 651.035, which may include
 1363  funds deposited in the initial entrance fee account.
 1364         (e) Documents evidencing the intended application of the
 1365  proceeds upon release and documentation that the entrance fees,
 1366  when released, will be applied as represented to the office.
 1367  
 1368  Notwithstanding chapter 120, only the provider, the escrow
 1369  agent, and the office have a substantial interest in any office
 1370  decision regarding release of escrow funds in any proceedings
 1371  under chapter 120 or this chapter.
 1372         (5)(a) Within 30 days after receipt of an application for
 1373  expansion, the office shall examine the application and shall
 1374  notify the applicant in writing, specifically setting forth and
 1375  specifically requesting any additional information that the
 1376  office is authorized to require. Within 15 days after the office
 1377  receives all the requested additional information, the office
 1378  shall notify the applicant in writing that the requested
 1379  information has been received and that the application is deemed
 1380  to be complete as of the date of the notice. If the office
 1381  chooses not to notify the applicant within the 15-day period,
 1382  then the application is deemed complete for purposes of review
 1383  on the date the applicant files the additional requested
 1384  information. If the application submitted is determined by the
 1385  office to be substantially incomplete so as to require
 1386  substantial additional information, including biographical
 1387  information, the office may return the application to the
 1388  applicant with a written notice that the application as received
 1389  is substantially incomplete and therefore unacceptable for
 1390  filing without further action required by the office. Any filing
 1391  fee received must be refunded to the applicant.
 1392         (b) An application is deemed complete upon the office
 1393  receiving all requested information and the applicant correcting
 1394  any error or omission of which the applicant was timely notified
 1395  or when the time for such notification has expired. The office
 1396  shall notify the applicant in writing of the date on which the
 1397  application was deemed complete.
 1398         (6) Within 45 days after the date on which an application
 1399  is deemed complete as set forth in paragraph (5)(b), the office
 1400  shall complete its review and, based upon its review, approve an
 1401  expansion by the applicant and issue a determination that the
 1402  application meets all requirements of law, that the feasibility
 1403  study was based on sufficient data and reasonable assumptions,
 1404  and that the applicant will be able to provide continuing care
 1405  or continuing care at-home as proposed and meet all financial
 1406  and contractual obligations related to its operations, including
 1407  the financial requirements of this chapter. The period for
 1408  review by the office may not be tolled if the office requests
 1409  additional information and the applicant provides information
 1410  acceptable to the office within 5 business days. If the
 1411  application is denied, the office must notify the applicant in
 1412  writing, citing the specific failures to meet the provisions of
 1413  this chapter. The denial entitles the applicant to a hearing
 1414  pursuant to chapter 120.
 1415         Section 12. Paragraph (c) of subsection (2) and subsection
 1416  (3) of section 651.026, Florida Statutes, are amended,
 1417  subsection (10) is added to that section, and paragraph (a) of
 1418  subsection (2) of that section is republished, to read:
 1419         651.026 Annual reports.—
 1420         (2) The annual report shall be in such form as the
 1421  commission prescribes and shall contain at least the following:
 1422         (a) Any change in status with respect to the information
 1423  required to be filed under s. 651.022(2).
 1424         (c) The following financial information:
 1425         1. A detailed listing of the assets maintained in the
 1426  liquid reserve as required under s. 651.035 and in accordance
 1427  with part II of chapter 625;
 1428         2. A schedule giving additional information relating to
 1429  property, plant, and equipment having an original cost of at
 1430  least $25,000, so as to show in reasonable detail with respect
 1431  to each separate facility original costs, accumulated
 1432  depreciation, net book value, appraised value or insurable value
 1433  and date thereof, insurance coverage, encumbrances, and net
 1434  equity of appraised or insured value over encumbrances. Any
 1435  property not used in continuing care must be shown separately
 1436  from property used in continuing care;
 1437         3. The level of participation in Medicare or Medicaid
 1438  programs, or both;
 1439         4. A statement of all fees required of residents,
 1440  including, but not limited to, a statement of the entrance fee
 1441  charged, the monthly service charges, the proposed application
 1442  of the proceeds of the entrance fee by the provider, and the
 1443  plan by which the amount of the entrance fee is determined if
 1444  the entrance fee is not the same in all cases; and
 1445         5. Any change or increase in fees if the provider changes
 1446  the scope of, or the rates for, care or services, regardless of
 1447  whether the change involves the basic rate or only those
 1448  services available at additional costs to the resident.
 1449         6. If the provider has more than one certificated facility,
 1450  or has operations that are not licensed under this chapter, it
 1451  shall submit a balance sheet, statement of income and expenses,
 1452  statement of equity or fund balances, and statement of cash
 1453  flows for each facility licensed under this chapter as
 1454  supplemental information to the audited financial report
 1455  statements required under paragraph (b).
 1456         7. The management’s calculation of the provider’s debt
 1457  service coverage ratio and days cash on hand for the current
 1458  reporting period, and an opinion from an independent certified
 1459  public accountant of the management’s calculations.
 1460         (3) The commission shall adopt by rule additional
 1461  meaningful measures of assessing the financial viability of a
 1462  provider. The rule may include the following factors:
 1463         (a) Debt service coverage ratios.
 1464         (b) Current ratios.
 1465         (c) Adjusted current ratios.
 1466         (d) Cash flows.
 1467         (e) Occupancy rates.
 1468         (f) Other measures, ratios, or trends.
 1469         (g) Other factors as may be appropriate.
 1470         (10) Within 90 days after the conclusion of each annual
 1471  reporting period, the office shall publish an industry
 1472  benchmarking report that contains all of the following:
 1473         (a) The median days cash on hand for all providers.
 1474         (b) The median debt service coverage ratio for all
 1475  providers.
 1476         (c) The median occupancy rate for all providers by setting,
 1477  including independent living, assisted living, skilled nursing,
 1478  and the entire campus.
 1479         Section 13. Section 651.0261, Florida Statutes, is amended
 1480  to read:
 1481         651.0261 Quarterly and monthly statements.—
 1482         (1) Within 45 days after the end of each fiscal quarter,
 1483  each provider shall file a quarterly unaudited financial
 1484  statement of the provider or of the facility in the form
 1485  prescribed by rule of the commission and a detailed listing of
 1486  the assets maintained in the liquid reserve as required under s.
 1487  651.035. This requirement may be waived by the office upon
 1488  written request from a provider that is accredited or that has
 1489  obtained an investment grade credit rating from a United States
 1490  credit rating agency as authorized under s. 651.028. The last
 1491  quarterly statement for a fiscal year is not required if a
 1492  provider does not have pending a regulatory action level event
 1493  or corrective action plan.
 1494         (2) If the office finds, pursuant to rules of the
 1495  commission, that such information is needed to properly monitor
 1496  the financial condition of a provider or facility or is
 1497  otherwise needed to protect the public interest, the office may
 1498  require the provider to file:
 1499         (a) Within 25 days after the end of each month, a monthly
 1500  unaudited financial statement of the provider or of the facility
 1501  in the form prescribed by the commission by rule and a detailed
 1502  listing of the assets maintained in the liquid reserve as
 1503  required under s. 651.035, within 45 days after the end of each
 1504  fiscal quarter, a quarterly unaudited financial statement of the
 1505  provider or of the facility in the form prescribed by the
 1506  commission by rule. The commission may by rule require all or
 1507  part of the statements or filings required under this section to
 1508  be submitted by electronic means in a computer-readable form
 1509  compatible with the electronic data format specified by the
 1510  commission.
 1511         (b) Such other data, financial statements, and pertinent
 1512  information as the commission or office may reasonably require
 1513  with respect to the provider or the facility, or its directors,
 1514  trustees, members, branches, subsidiaries, or affiliates, to
 1515  determine the financial status of the provider or of the
 1516  facility and the management capabilities of its managers and
 1517  owners.
 1518         (3) A filing under subsection (2) may be required if any of
 1519  the following apply:
 1520         (a) The facility has been operational for less than 2
 1521  years.
 1522         (b) The provider is:
 1523         1. Subject to administrative supervision proceedings;
 1524         2. Subject to a corrective action plan resulting from a
 1525  regulatory action level event for up to 2 years after the
 1526  factors that caused the regulatory action level event have been
 1527  corrected; or
 1528         3. Subject to delinquency or receivership proceedings.
 1529         (c) The provider or facility displays a declining financial
 1530  position.
 1531         (d)A change of ownership of the provider or facility has
 1532  occurred within the previous 2 years.
 1533         (e)The facility is deemed to be impaired.
 1534         (4) The commission may by rule require all or part of the
 1535  statements or filings required under this section to be
 1536  submitted by electronic means in a computer-readable form
 1537  compatible with an electronic data format specified by the
 1538  commission.
 1539         Section 14. Section 651.028, Florida Statutes, is amended
 1540  to read:
 1541         651.028 Accredited or certain credit-rated facilities.—If a
 1542  provider or obligated group is accredited without stipulations
 1543  or conditions by a process found by the office to be acceptable
 1544  and substantially equivalent to the provisions of this chapter
 1545  or has obtained an investment grade credit rating from a
 1546  nationally recognized credit rating agency, as applicable, from
 1547  Moody’s Investors Service, Standard & Poor’s, or Fitch Ratings,
 1548  the office may, pursuant to rule of the commission, waive any
 1549  requirements of this chapter with respect to the provider if the
 1550  office finds that such waivers are not inconsistent with the
 1551  security protections intended by this chapter.
 1552         Section 15. Paragraphs (a), (c), and (d) of subsection (1)
 1553  and subsections (2) and (3) of section 651.033, Florida
 1554  Statutes, are amended, and subsection (6) is added to that
 1555  section, to read:
 1556         651.033 Escrow accounts.—
 1557         (1) When funds are required to be deposited in an escrow
 1558  account pursuant to s. 651.022, s. 651.023, s. 651.035, or s.
 1559  651.055:
 1560         (a) The escrow account must shall be established in a
 1561  Florida bank, Florida savings and loan association, or Florida
 1562  trust company, or a national bank that is chartered and
 1563  supervised by the Office of the Comptroller of the Currency
 1564  within the United States Department of the Treasury and that has
 1565  either a branch or a license to operate in this state which is
 1566  acceptable to the office, or such funds must be deposited on
 1567  deposit with the department; and the funds deposited therein
 1568  shall be kept and maintained in an account separate and apart
 1569  from the provider’s business accounts.
 1570         (c) Any agreement establishing an escrow account required
 1571  under the provisions of this chapter is shall be subject to
 1572  approval by the office. The agreement must shall be in writing
 1573  and shall contain, in addition to any other provisions required
 1574  by law, a provision whereby the escrow agent agrees to abide by
 1575  the duties imposed by paragraphs (b) and (e), (3)(a), (3)(b),
 1576  and (5)(a) and subsection (6) under this section.
 1577         (d) All funds deposited in an escrow account, if invested,
 1578  must shall be invested in cash, cash equivalents, mutual funds,
 1579  equities, or investment grade bonds as set forth in part II of
 1580  chapter 625; however, such investment may not diminish the funds
 1581  held in escrow below the amount required by this chapter. Funds
 1582  deposited in an escrow account are not subject to charges by the
 1583  escrow agent except escrow agent fees associated with
 1584  administering the accounts, or subject to any liens, judgments,
 1585  garnishments, creditor’s claims, or other encumbrances against
 1586  the provider or facility except as provided in s. 651.035(1).
 1587         (2) Notwithstanding s. 651.035(7), In addition, the escrow
 1588  agreement shall provide that the escrow agent or another person
 1589  designated to act in the escrow agent’s place and the provider,
 1590  except as otherwise provided in s. 651.035, shall notify the
 1591  office in writing at least 10 days before the withdrawal of any
 1592  portion of any funds required to be escrowed under the
 1593  provisions of s. 651.035. However, in the event of an emergency
 1594  and upon petition by the provider, the office may waive the 10
 1595  day notification period and allow a withdrawal of up to 10
 1596  percent of the required minimum liquid reserve. The office shall
 1597  have 3 working days to deny the petition for the emergency 10
 1598  percent withdrawal. If the office fails to deny the petition
 1599  within 3 working days, the petition is shall be deemed to have
 1600  been granted by the office. For purposes the purpose of this
 1601  section, “working day” means each day that is not a Saturday,
 1602  Sunday, or legal holiday as defined by Florida law. Also, for
 1603  purposes the purpose of this section, the day the petition is
 1604  received by the office is shall not be counted as one of the 3
 1605  days.
 1606         (3) In addition, When entrance fees are required to be
 1607  deposited in an escrow account pursuant to s. 651.022, s.
 1608  651.023, or s. 651.055:
 1609         (a) The provider shall deliver to the resident a written
 1610  receipt. The receipt must show the payor’s name and address, the
 1611  date, the price of the care contract, and the amount of money
 1612  paid. A copy of each receipt, together with the funds, must
 1613  shall be deposited with the escrow agent or as provided in
 1614  paragraph (c). The escrow agent must shall release such funds to
 1615  the provider 7 days after the date of receipt of the funds by
 1616  the escrow agent if the provider, operating under a certificate
 1617  of authority issued by the office, has met the requirements of
 1618  s. 651.023(6). However, if the resident rescinds the contract
 1619  within the 7-day period, the escrow agent must shall release the
 1620  escrowed fees to the resident.
 1621         (b) At the request of an individual resident of a facility,
 1622  the escrow agent shall issue a statement indicating the status
 1623  of the resident’s portion of the escrow account.
 1624         (c) At the request of an individual resident of a facility,
 1625  the provider may hold the check for the 7-day period and may
 1626  shall not deposit it during this time period. If the resident
 1627  rescinds the contract within the 7-day period, the check must
 1628  shall be immediately returned to the resident. Upon the
 1629  expiration of the 7 days, the provider shall deposit the check.
 1630         (d) A provider may assess a nonrefundable fee, which is
 1631  separate from the entrance fee, for processing a prospective
 1632  resident’s application for continuing care or continuing care
 1633  at-home.
 1634         (6) Except as described in paragraph (3)(a), the escrow
 1635  agent may not release or otherwise allow the transfer of funds
 1636  without the written approval of the office, unless the
 1637  withdrawal is from funds in excess of the amounts required by
 1638  ss. 651.022, 651.023, 651.035, and 651.055.
 1639         Section 16. Section 651.034, Florida Statutes, is created
 1640  to read:
 1641         651.034 Financial and operating requirements for
 1642  providers.—
 1643         (1)(a) If a regulatory action level event occurs, the
 1644  office must:
 1645         1. Require the provider to prepare and submit a corrective
 1646  action plan or, if applicable, a revised corrective action plan;
 1647         2. Perform an examination pursuant to s. 651.105 or an
 1648  analysis, as the office considers necessary, of the assets,
 1649  liabilities, and operations of the provider, including a review
 1650  of the corrective action plan or the revised corrective action
 1651  plan; and
 1652         3. After the examination or analysis, issue a corrective
 1653  order specifying any corrective actions that the office
 1654  determines are required.
 1655         (b) In determining corrective actions, the office shall
 1656  consider any factor relevant to the provider based upon the
 1657  office’s examination or analysis of the assets, liabilities, and
 1658  operations of the provider. The provider must submit the
 1659  corrective action plan or the revised corrective action plan
 1660  within 30 days after the occurrence of the regulatory action
 1661  level event. The office shall review and approve or disapprove
 1662  the corrective action plan within 15 business days.
 1663         (c) The office may use members of the Continuing Care
 1664  Advisory Council, individually or as a group, or may retain
 1665  actuaries, investment experts, and other consultants to review a
 1666  provider’s corrective action plan or revised corrective action
 1667  plan, examine or analyze the assets, liabilities, and operations
 1668  of a provider, and formulate the corrective order with respect
 1669  to the provider. The fees, costs, and expenses relating to
 1670  consultants must be borne by the affected provider.
 1671         (2) If an impairment occurs, the office must take any
 1672  action necessary to place the provider under regulatory control,
 1673  including any remedy available under chapter 631. An impairment
 1674  is sufficient grounds for the department to be appointed as
 1675  receiver as provided in chapter 631. Notwithstanding s. 631.011,
 1676  impairment of a provider, for purposes of s. 631.051, is defined
 1677  according to the term “impaired” under s. 651.011. The office
 1678  may forego taking action for up to 180 days after the impairment
 1679  if the office finds there is a reasonable expectation that the
 1680  impairment may be eliminated within the 180-day period.
 1681         (3) There is no liability on the part of, and a cause of
 1682  action may not arise against, the commission, department, or
 1683  office, or their employees or agents, for any action they take
 1684  in the performance of their powers and duties under this
 1685  section.
 1686         (4) The office shall transmit any notice that may result in
 1687  regulatory action by registered mail, certified mail, or any
 1688  other method of transmission which includes documentation of
 1689  receipt by the provider. Notice is effective when the provider
 1690  receives it.
 1691         (5) This section is supplemental to the other laws of this
 1692  state and does not preclude or limit any power or duty of the
 1693  department or office under those laws or under the rules adopted
 1694  pursuant to those laws.
 1695         (6) The office may exempt a provider from subsection (1) or
 1696  subsection (2) until stabilized occupancy is reached or until
 1697  the time projected to achieve stabilized occupancy as reported
 1698  in the last feasibility study required by the office as part of
 1699  an application filing under s. 651.023, s. 651.024, s. 651.0245,
 1700  or s. 651.0246 has elapsed, but for no longer than 5 years from
 1701  the date of issuance of the certificate of occupancy.
 1702         (7) The commission may adopt rules to administer this
 1703  section, including, but not limited to, rules regarding
 1704  corrective action plans, revised corrective action plans,
 1705  corrective orders, and procedures to be followed in the event of
 1706  a regulatory action level event or an impairment.
 1707         Section 17. Paragraphs (a), (b), and (c) of subsection (1)
 1708  of section 651.035, Florida Statutes, are amended, and
 1709  subsections (7) through (10) are added to that section, to read:
 1710         651.035 Minimum liquid reserve requirements.—
 1711         (1) A provider shall maintain in escrow a minimum liquid
 1712  reserve consisting of the following reserves, as applicable:
 1713         (a) Each provider shall maintain in escrow as a debt
 1714  service reserve the aggregate amount of all principal and
 1715  interest payments due during the fiscal year on any mortgage
 1716  loan or other long-term financing of the facility, including
 1717  property taxes as recorded in the audited financial report
 1718  statements required under s. 651.026. The amount must include
 1719  any leasehold payments and all costs related to such payments.
 1720  If principal payments are not due during the fiscal year, the
 1721  provider must shall maintain in escrow as a minimum liquid
 1722  reserve an amount equal to interest payments due during the next
 1723  12 months on any mortgage loan or other long-term financing of
 1724  the facility, including property taxes. If a provider does not
 1725  have a mortgage loan or other financing on the facility, the
 1726  provider must deposit monthly in escrow as a minimum liquid
 1727  reserve an amount equal to one-twelfth of the annual property
 1728  tax liability as indicated in the most recent tax notice
 1729  provided pursuant to s. 197.322(3).
 1730         (b) A provider that has outstanding indebtedness that
 1731  requires a debt service reserve to be held in escrow pursuant to
 1732  a trust indenture or mortgage lien on the facility and for which
 1733  the debt service reserve may only be used to pay principal and
 1734  interest payments on the debt that the debtor is obligated to
 1735  pay, and which may include property taxes and insurance, may
 1736  include such debt service reserve in computing the minimum
 1737  liquid reserve needed to satisfy this subsection if the provider
 1738  furnishes to the office a copy of the agreement under which such
 1739  debt service is held, together with a statement of the amount
 1740  being held in escrow for the debt service reserve, certified by
 1741  the lender or trustee and the provider to be correct. The
 1742  trustee shall provide the office with any information concerning
 1743  the debt service reserve account upon request of the provider or
 1744  the office. Such separate debt service reserves, if any, are not
 1745  subject to the transfer provisions set forth in subsection (8).
 1746         (c) Each provider shall maintain in escrow an operating
 1747  reserve equal to 30 percent of the total operating expenses
 1748  projected in the feasibility study required by s. 651.023 for
 1749  the first 12 months of operation. Thereafter, each provider
 1750  shall maintain in escrow an operating reserve equal to 15
 1751  percent of the total operating expenses in the annual report
 1752  filed pursuant to s. 651.026. If a provider has been in
 1753  operation for more than 12 months, the total annual operating
 1754  expenses must shall be determined by averaging the total annual
 1755  operating expenses reported to the office by the number of
 1756  annual reports filed with the office within the preceding 3-year
 1757  period subject to adjustment if there is a change in the number
 1758  of facilities owned. For purposes of this subsection, total
 1759  annual operating expenses include all expenses of the facility
 1760  except: depreciation and amortization; interest and property
 1761  taxes included in paragraph (a); extraordinary expenses that are
 1762  adequately explained and documented in accordance with generally
 1763  accepted accounting principles; liability insurance premiums in
 1764  excess of those paid in calendar year 1999; and changes in the
 1765  obligation to provide future services to current residents. For
 1766  providers initially licensed during or after calendar year 1999,
 1767  liability insurance must shall be included in the total
 1768  operating expenses in an amount not to exceed the premium paid
 1769  during the first 12 months of facility operation. Beginning
 1770  January 1, 1993, The operating reserves required under this
 1771  subsection must shall be in an unencumbered account held in
 1772  escrow for the benefit of the residents. Such funds may not be
 1773  encumbered or subject to any liens or charges by the escrow
 1774  agent or judgments, garnishments, or creditors’ claims against
 1775  the provider or facility. However, if a facility had a lien,
 1776  mortgage, trust indenture, or similar debt instrument in place
 1777  before January 1, 1993, which encumbered all or any part of the
 1778  reserves required by this subsection and such funds were used to
 1779  meet the requirements of this subsection, then such arrangement
 1780  may be continued, unless a refinancing or acquisition has
 1781  occurred, and the provider is shall be in compliance with this
 1782  subsection.
 1783         (7)(a) A provider may withdraw funds held in escrow without
 1784  the approval of the office if the amount held in escrow exceeds
 1785  the requirements of this section and if the withdrawal will not
 1786  affect compliance with this section.
 1787         (b)1. For all other proposed withdrawals, in order to
 1788  receive the consent of the office, the provider must file
 1789  documentation showing why the withdrawal is necessary for the
 1790  continued operation of the facility and such additional
 1791  information as the office reasonably requires.
 1792         2. The office shall notify the provider when the filing is
 1793  deemed complete. If the provider has complied with all prior
 1794  requests for information, the filing is deemed complete after 30
 1795  days without communication from the office.
 1796         3. Within 30 days after the date a file is deemed complete,
 1797  the office shall provide the provider with written notice of its
 1798  approval or disapproval of the request. The office may
 1799  disapprove any request to withdraw such funds if it determines
 1800  that the withdrawal is not in the best interest of the
 1801  residents.
 1802         (8) The office may order the immediate transfer of up to
 1803  100 percent of the funds held in the minimum liquid reserve to
 1804  the custody of the department pursuant to part III of chapter
 1805  625 if the office finds that the provider is impaired or
 1806  insolvent. The office may order such a transfer regardless of
 1807  whether the office has suspended or revoked, or intends to
 1808  suspend or revoke, the certificate of authority of the provider.
 1809         (9)Each facility shall file with the office annually,
 1810  together with the annual report required by s. 651.026, a
 1811  calculation of its minimum liquid reserve, determined in
 1812  accordance with this section, on a form prescribed by the
 1813  commission. The minimum liquid reserve must be maintained at the
 1814  calculated level within 60 days after filing the annual report.
 1815         (10)If the balance of the minimum liquid reserve is below
 1816  the required amount at the end of any month, the provider must
 1817  fund the shortfall in the reserve within 10 business days after
 1818  the beginning of the following month. If the balance of the
 1819  minimum liquid reserve is not restored to the required amount
 1820  within such time, the provider will be deemed out of compliance
 1821  with this section.
 1822         Section 18. Section 651.043, Florida Statutes, is created
 1823  to read:
 1824         651.043 Approval of change in management.—
 1825         (1) As used in this section, the term “management” means:
 1826         (a) A manager or management company; or
 1827         (b) A person who exercises or who has the ability to
 1828  exercise effective control of the provider or organization, or
 1829  who influences or has the ability to influence the transaction
 1830  of the business of the provider.
 1831         (2) A contract for management entered into after July 1,
 1832  2018, must be in writing and include a provision that the
 1833  contract will be canceled upon issuance of an order by the
 1834  office pursuant to this section without the application of any
 1835  cancellation fee or penalty. If a provider contracts with a
 1836  management company, a separate written contract is not required
 1837  for the individual manager employed by the management company to
 1838  oversee a facility.
 1839         (3) A provider must notify the office, in writing or
 1840  electronically, of any change in management within 10 business
 1841  days. For each new management appointment, the provider must
 1842  submit the information required by s. 651.022(2) and a copy of
 1843  the written management contract, if applicable.
 1844         (4) For a provider that is deemed to be impaired or that
 1845  has a regulatory action level event pending, the office may
 1846  disapprove new management and order the provider to remove the
 1847  new management after reviewing the information required in
 1848  subsection (3).
 1849         (5)For a provider other than that specified in subsection
 1850  (4), the office may disapprove new management and order the
 1851  provider to remove the new management after receiving the
 1852  required information in subsection (3) if the office:
 1853         (a) Finds that the new management is incompetent or
 1854  untrustworthy;
 1855         (b) Finds that the new management is so lacking in relevant
 1856  managerial experience as to make the proposed operation
 1857  hazardous to the residents or potential residents;
 1858         (c) Finds that the new management is so lacking in relevant
 1859  experience, ability, and standing as to jeopardize the
 1860  reasonable promise of successful operation; or
 1861         (d) Has good reason to believe that the new management is
 1862  affiliated directly or indirectly through ownership, control, or
 1863  business relations with any person or persons whose business
 1864  operations are or have been marked by manipulation of assets or
 1865  accounts or by bad faith, to the detriment of residents,
 1866  stockholders, investors, creditors, or the public.
 1867  
 1868  The office shall complete its review as required under
 1869  subsections (4) and (5) and, if applicable, issue notice of
 1870  disapproval of the new management within 15 business days after
 1871  the filing is deemed complete. A filing is deemed complete upon
 1872  the office’s receipt of all requested information and the
 1873  provider’s correction of any error or omission for which the
 1874  provider was timely notified. If the office does not issue
 1875  notice of disapproval of the new management within 15 business
 1876  days after the filing is deemed complete, then the new
 1877  management is deemed approved.
 1878         (6) Management disapproved by the office must be removed
 1879  within 30 days after receipt by the provider of notice of such
 1880  disapproval.
 1881         (7) The office may revoke, suspend, or take other
 1882  administrative action against the certificate of authority of
 1883  the provider if the provider:
 1884         (a) Fails to timely remove management disapproved by the
 1885  office;
 1886         (b) Fails to timely notify the office of a change in
 1887  management;
 1888         (c) Appoints new management without a written contract; or
 1889         (d) Repeatedly appoints management that was previously
 1890  disapproved by the office or that is not approvable pursuant to
 1891  subsection (5).
 1892         (8) The provider shall remove any management immediately
 1893  upon discovery of any of the following conditions, if the
 1894  conditions were not disclosed in the notice to the office
 1895  required in subsection (3):
 1896         (a) That any person who exercises or has the ability to
 1897  exercise effective control of the provider, or who influences or
 1898  has the ability to influence the transaction of the business of
 1899  the provider, has been found guilty of, or has pled guilty or no
 1900  contest to, any felony or crime punishable by imprisonment of 1
 1901  year or more under the laws of the United States or any state
 1902  thereof or under the laws of any other country which involves
 1903  moral turpitude, without regard to whether a judgment or
 1904  conviction has been entered by the court having jurisdiction in
 1905  such case.
 1906         (b) That any person who exercises or has the ability to
 1907  exercise effective control of the organization, or who
 1908  influences or has the ability to influence the transaction of
 1909  the business of the provider, is now or was in the past
 1910  affiliated, directly or indirectly, through ownership interest
 1911  of 10 percent or more in, or control of, any business,
 1912  corporation, or other entity that has been found guilty of or
 1913  has pled guilty or no contest to any felony or crime punishable
 1914  by imprisonment for 1 year or more under the laws of the United
 1915  States, any state, or any other country, regardless of
 1916  adjudication.
 1917  
 1918  The failure to remove such management is grounds for revocation
 1919  or suspension of the provider’s certificate of authority.
 1920         Section 19. Section 651.051, Florida Statutes, is amended
 1921  to read:
 1922         651.051 Maintenance of assets and records in state.—All
 1923  records and assets of a provider must be maintained in this
 1924  state, or, if the provider’s corporate office is located in
 1925  another state, must be electronically stored in a manner that
 1926  will ensure that the records are readily accessible to the
 1927  office. No records or assets may be removed from this state by a
 1928  provider unless the office consents to such removal in writing
 1929  before such removal. Such consent must shall be based upon the
 1930  provider’s submitting satisfactory evidence that the removal
 1931  will facilitate and make more economical the operations of the
 1932  provider and will not diminish the service or protection
 1933  thereafter to be given the provider’s residents in this state.
 1934  Before Prior to such removal, the provider shall give notice to
 1935  the president or chair of the facility’s residents’ council. If
 1936  such removal is part of a cash management system which has been
 1937  approved by the office, disclosure of the system must shall meet
 1938  the notification requirements. The electronic storage of records
 1939  on a web-based, secured storage platform by contract with a
 1940  third party is acceptable if the records are readily accessible
 1941  to the office.
 1942         Section 20. Subsection (2) of section 651.057, Florida
 1943  Statutes, is amended to read:
 1944         651.057 Continuing care at-home contracts.—
 1945         (2) A provider that holds a certificate of authority and
 1946  wishes to offer continuing care at-home must also:
 1947         (a) Submit a business plan to the office with the following
 1948  information:
 1949         1. A description of the continuing care at-home services
 1950  that will be provided, the market to be served, and the fees to
 1951  be charged;
 1952         2. A copy of the proposed continuing care at-home contract;
 1953         3. An actuarial study prepared by an independent actuary in
 1954  accordance with the standards adopted by the American Academy of
 1955  Actuaries which presents the impact of providing continuing care
 1956  at-home on the overall operation of the facility; and
 1957         4. A market feasibility study that meets the requirements
 1958  of s. 651.022(4) s. 651.022(3) and documents that there is
 1959  sufficient interest in continuing care at-home contracts to
 1960  support such a program;
 1961         (b) Demonstrate to the office that the proposal to offer
 1962  continuing care at-home contracts to individuals who do not
 1963  immediately move into the facility will not place the provider
 1964  in an unsound financial condition;
 1965         (c) Comply with the requirements of s. 651.0246(1) s.
 1966  651.021(2), except that an actuarial study may be substituted
 1967  for the feasibility study; and
 1968         (d) Comply with the requirements of this chapter.
 1969         Section 21. Subsection (1) of section 651.071, Florida
 1970  Statutes, is amended to read:
 1971         651.071 Contracts as preferred claims on liquidation or
 1972  receivership.—
 1973         (1) In the event of receivership or liquidation proceedings
 1974  against a provider, all continuing care and continuing care at
 1975  home contracts executed by a provider are shall be deemed
 1976  preferred claims or policyholder loss preferred claims pursuant
 1977  to s. 631.271(1)(b) against all assets owned by the provider;
 1978  however, such claims are subordinate to any secured claim.
 1979         Section 22. Subsection (2) and present paragraph (g) of
 1980  subsection (3) of section 651.091, Florida Statutes, are
 1981  amended, present paragraphs (h) and (i) of subsection (3) of
 1982  that section are redesignated as paragraphs (g) and (h),
 1983  respectively, a new paragraph (i) and paragraphs (j), (k), and
 1984  (l) are added to that subsection, and paragraph (d) of
 1985  subsection (3) and subsection (4) of that section are
 1986  republished, to read:
 1987         651.091 Availability, distribution, and posting of reports
 1988  and records; requirement of full disclosure.—
 1989         (2) Every continuing care facility shall:
 1990         (a) Display the certificate of authority in a conspicuous
 1991  place inside the facility.
 1992         (b) Post in a prominent position in the facility which is
 1993  accessible to all residents and the general public a concise
 1994  summary of the last examination report issued by the office,
 1995  with references to the page numbers of the full report noting
 1996  any deficiencies found by the office, and the actions taken by
 1997  the provider to rectify such deficiencies, indicating in such
 1998  summary where the full report may be inspected in the facility.
 1999         (c) Provide notice to the president or chair of the
 2000  residents’ council within 10 business days after issuance of a
 2001  final examination report or the initiation of any legal or
 2002  administrative proceeding by the office or the department and
 2003  include a copy of such document.
 2004         (d)(c) Post in a prominent position in the facility which
 2005  is accessible to all residents and the general public a summary
 2006  of the latest annual statement, indicating in the summary where
 2007  the full annual statement may be inspected in the facility. A
 2008  listing of any proposed changes in policies, programs, and
 2009  services must also be posted.
 2010         (e)(d) Distribute a copy of the full annual statement and a
 2011  copy of the most recent third-party third party financial audit
 2012  filed with the annual report to the president or chair of the
 2013  residents’ council within 30 days after filing the annual report
 2014  with the office, and designate a staff person to provide
 2015  explanation thereof.
 2016         (f)(e)Deliver the information described in s. 651.085(4)
 2017  in writing to the president or chair of the residents’ council
 2018  and make supporting documentation available upon request Notify
 2019  the residents’ council of any plans filed with the office to
 2020  obtain new financing, additional financing, or refinancing for
 2021  the facility and of any applications to the office for any
 2022  expansion of the facility.
 2023         (g)(f) Deliver to the president or chair of the residents’
 2024  council a summary of entrance fees collected and refunds made
 2025  during the time period covered in the annual report and the
 2026  refund balances due at the end of the report period.
 2027         (h)(g) Deliver to the president or chair of the residents’
 2028  council a copy of each quarterly statement within 30 days after
 2029  the quarterly statement is filed with the office if the facility
 2030  is required to file quarterly.
 2031         (i)(h) Upon request, deliver to the president or chair of
 2032  the residents’ council a copy of any newly approved continuing
 2033  care or continuing care at-home contract within 30 days after
 2034  approval by the office.
 2035         (j) Provide to the president or chair of the residents’
 2036  council a copy of any notice filed with the office relating to
 2037  any change in ownership within 10 business days after such
 2038  filing by the provider.
 2039         (k) Make the information available to prospective residents
 2040  pursuant to paragraph (3)(d) available to current residents and
 2041  provide notice of changes to that information to the president
 2042  or chair of the residents’ council within 3 business days.
 2043         (3) Before entering into a contract to furnish continuing
 2044  care or continuing care at-home, the provider undertaking to
 2045  furnish the care, or the agent of the provider, shall make full
 2046  disclosure, and provide copies of the disclosure documents to
 2047  the prospective resident or his or her legal representative, of
 2048  the following information:
 2049         (d) In keeping with the intent of this subsection relating
 2050  to disclosure, the provider shall make available for review
 2051  master plans approved by the provider’s governing board and any
 2052  plans for expansion or phased development, to the extent that
 2053  the availability of such plans does not put at risk real estate,
 2054  financing, acquisition, negotiations, or other implementation of
 2055  operational plans and thus jeopardize the success of
 2056  negotiations, operations, and development.
 2057         (g) The amount and location of any reserve funds required
 2058  by this chapter, and the name of the person or entity having a
 2059  claim to such funds in the event of a bankruptcy, foreclosure,
 2060  or rehabilitation proceeding.
 2061         (i) Notice of the issuance of a final examination report or
 2062  the initiation of any legal or administrative proceeding by the
 2063  office or the department, including where the report or filing
 2064  may be inspected in the facility, and that upon request, an
 2065  electronic copy or specific website address will be provided
 2066  where the document can be downloaded at no cost.
 2067         (j) Notice that the entrance fee is the property of the
 2068  provider after the expiration of the 7-day escrow requirement
 2069  under s. 651.055(2).
 2070         (k) If the provider operates multiple facilities, a
 2071  disclosure of any distribution of assets or income between
 2072  facilities that may occur and the manner in which such
 2073  distributions would be made, or a statement that such
 2074  distributions will not occur.
 2075         (l) Notice of any holding company system or obligated group
 2076  of which the provider is a member.
 2077         (4) A true and complete copy of the full disclosure
 2078  document to be used must be filed with the office before use. A
 2079  resident or prospective resident or his or her legal
 2080  representative may inspect the full reports referred to in
 2081  paragraph (2)(b); the charter or other agreement or instrument
 2082  required to be filed with the office pursuant to s. 651.022(2),
 2083  together with all amendments thereto; and the bylaws of the
 2084  corporation or association, if any. Upon request, copies of the
 2085  reports and information shall be provided to the individual
 2086  requesting them if the individual agrees to pay a reasonable
 2087  charge to cover copying costs.
 2088         Section 23. Subsections (1) and (5) of section 651.105,
 2089  Florida Statutes, are amended, and subsections (7) and (8) are
 2090  added to that section, to read:
 2091         651.105 Examination and inspections.—
 2092         (1) The office may at any time, and shall at least once
 2093  every 3 years, examine the business of any applicant for a
 2094  certificate of authority and any provider engaged in the
 2095  execution of care contracts or engaged in the performance of
 2096  obligations under such contracts, in the same manner as is
 2097  provided for the examination of insurance companies pursuant to
 2098  ss. 624.316 and 624.318 s. 624.316. For a provider as described
 2099  defined in s. 651.028, such examinations must shall take place
 2100  at least once every 5 years. Such examinations must shall be
 2101  made by a representative or examiner designated by the office
 2102  whose compensation will be fixed by the office pursuant to s.
 2103  624.320. Routine examinations may be made by having the
 2104  necessary documents submitted to the office; and, for this
 2105  purpose, financial documents and records conforming to commonly
 2106  accepted accounting principles and practices, as required under
 2107  s. 651.026, are deemed adequate. The final written report of
 2108  each examination must be filed with the office and, when so
 2109  filed, constitutes a public record. Any provider being examined
 2110  shall, upon request, give reasonable and timely access to all of
 2111  its records. The representative or examiner designated by the
 2112  office may at any time examine the records and affairs and
 2113  inspect the physical property of any provider, whether in
 2114  connection with a formal examination or not.
 2115         (5) A provider must respond to written correspondence from
 2116  the office and provide data, financial statements, and pertinent
 2117  information as requested by the office or by the office’s
 2118  investigators, examiners, or inspectors. The office has standing
 2119  to petition a circuit court for mandatory injunctive relief to
 2120  compel access to and require the provider to produce the
 2121  documents, data, records, and other information requested by the
 2122  office or its investigators, examiners, or inspectors. The
 2123  office may petition the circuit court in the county in which the
 2124  facility is situated or the Circuit Court of Leon County to
 2125  enforce this section At the time of the routine examination, the
 2126  office shall determine if all disclosures required under this
 2127  chapter have been made to the president or chair of the
 2128  residents’ council and the executive officer of the governing
 2129  body of the provider.
 2130         (7) Unless a provider or facility is impaired or subject to
 2131  a regulatory action level event, any parent, subsidiary, or
 2132  affiliate is not subject to examination by the office as part of
 2133  a routine examination. However, if a provider or facility relies
 2134  on a contractual or financial relationship with a parent,
 2135  subsidiary, or affiliate in order to demonstrate the provider or
 2136  facility’s financial condition is in compliance with this
 2137  chapter, the office may examine any parent, subsidiary, or
 2138  affiliate that has a contractual or financial relationship with
 2139  the provider or facility to the extent necessary to ascertain
 2140  the financial condition of the provider.
 2141         (8) If a provider voluntarily contracts with an actuary for
 2142  an actuarial study or review at regular intervals, the office
 2143  may not use any recommendations made by the actuary as a measure
 2144  of performance when conducting an examination or inspection. The
 2145  office may not request, as part of the examination or
 2146  inspection, documents associated with an actuarial study or
 2147  review marked “restricted distribution” if the study or review
 2148  is not required by this chapter.
 2149         Section 24. Section 651.106, Florida Statutes, is amended
 2150  to read:
 2151         651.106 Grounds for discretionary refusal, suspension, or
 2152  revocation of certificate of authority.—The office may deny an
 2153  application or, suspend, or revoke the provisional certificate
 2154  of authority or the certificate of authority of any applicant or
 2155  provider if it finds that any one or more of the following
 2156  grounds applicable to the applicant or provider exist:
 2157         (1) Failure by the provider to continue to meet the
 2158  requirements for the authority originally granted.
 2159         (2) Failure by the provider to meet one or more of the
 2160  qualifications for the authority specified by this chapter.
 2161         (3) Material misstatement, misrepresentation, or fraud in
 2162  obtaining the authority, or in attempting to obtain the same.
 2163         (4) Demonstrated lack of fitness or trustworthiness.
 2164         (5) Fraudulent or dishonest practices of management in the
 2165  conduct of business.
 2166         (6) Misappropriation, conversion, or withholding of moneys.
 2167         (7) Failure to comply with, or violation of, any proper
 2168  order or rule of the office or commission or violation of any
 2169  provision of this chapter.
 2170         (8) The insolvent or impaired condition of the provider or
 2171  the provider’s being in such condition or using such methods and
 2172  practices in the conduct of its business as to render its
 2173  further transactions in this state hazardous or injurious to the
 2174  public.
 2175         (9) Refusal by the provider to be examined or to produce
 2176  its accounts, records, and files for examination, or refusal by
 2177  any of its officers to give information with respect to its
 2178  affairs or to perform any other legal obligation under this
 2179  chapter when required by the office.
 2180         (10) Failure by the provider to comply with the
 2181  requirements of s. 651.026 or s. 651.033.
 2182         (11) Failure by the provider to maintain escrow accounts or
 2183  funds as required by this chapter.
 2184         (12) Failure by the provider to meet the requirements of
 2185  this chapter for disclosure of information to residents
 2186  concerning the facility, its ownership, its management, its
 2187  development, or its financial condition or failure to honor its
 2188  continuing care or continuing care at-home contracts.
 2189         (13) Any cause for which issuance of the license could have
 2190  been refused had it then existed and been known to the office.
 2191         (14) Having been found guilty of, or having pleaded guilty
 2192  or nolo contendere to, a felony in this state or any other
 2193  state, without regard to whether a judgment or conviction has
 2194  been entered by the court having jurisdiction of such cases.
 2195         (15) In the conduct of business under the license, engaging
 2196  in unfair methods of competition or in unfair or deceptive acts
 2197  or practices prohibited under part IX of chapter 626.
 2198         (16) A pattern of bankrupt enterprises.
 2199         (17) The ownership, control, or management of the
 2200  organization includes any person:
 2201         (a) Who is not reputable and of responsible character;
 2202         (b) Who is so lacking in management expertise as to make
 2203  the operation of the provider hazardous to potential and
 2204  existing residents;
 2205         (c) Who is so lacking in management experience, ability,
 2206  and standing as to jeopardize the reasonable promise of
 2207  successful operation;
 2208         (d) Who is affiliated, directly or indirectly, through
 2209  ownership or control, with any person whose business operations
 2210  are or have been marked by business practices or conduct that is
 2211  detrimental to the public, stockholders, investors, or
 2212  creditors; or
 2213         (e) Whose business operations are or have been marked by
 2214  business practices or conduct that is detrimental to the public,
 2215  stockholders, investors, or creditors.
 2216         (18) The provider has not filed a notice of change in
 2217  management, fails to remove a disapproved manager, or persists
 2218  in appointing disapproved managers.
 2219  
 2220  Revocation of a certificate of authority under this section does
 2221  not relieve a provider from the provider’s obligation to
 2222  residents under the terms and conditions of any continuing care
 2223  or continuing care at-home contract between the provider and
 2224  residents or the provisions of this chapter. The provider shall
 2225  continue to file its annual statement and pay license fees to
 2226  the office as required under this chapter as if the certificate
 2227  of authority had continued in full force, but the provider shall
 2228  not issue any new contracts. The office may seek an action in
 2229  the Circuit Court of Leon County to enforce the office’s order
 2230  and the provisions of this section.
 2231         Section 25. Section 651.1065, Florida Statutes, is created
 2232  to read:
 2233         651.1065 Soliciting or accepting new continuing care
 2234  contracts by impaired or insolvent facilities or providers.—
 2235         (1) Regardless of whether delinquency proceedings as to a
 2236  continuing care retirement community have been or are to be
 2237  initiated, a proprietor, general partner, member, officer,
 2238  director, trustee, or manager of a continuing care retirement
 2239  community may not actively solicit, approve the solicitation or
 2240  acceptance of, or accept new continuing care contracts in this
 2241  state after the proprietor, general partner, member, officer,
 2242  director, trustee, or manager knew, or reasonably should have
 2243  known, that the continuing care retirement community was
 2244  impaired or insolvent, except with the written permission of the
 2245  office, unless the facility has declared bankruptcy, in which
 2246  case the bankruptcy court or trustee appointed by the court has
 2247  jurisdiction over such matters. The office must approve or
 2248  disapprove the continued marketing of new contracts within 15
 2249  days after receiving a request from a provider.
 2250         (2) A proprietor, general partner, member, officer,
 2251  director, trustee, or manager who violates this section commits
 2252  a felony of the third degree, punishable as provided in s.
 2253  775.082, s. 775.083, or s. 775.084.
 2254         Section 26. Section 651.111, Florida Statutes, is amended
 2255  to read:
 2256         651.111 Requests for inspections.—
 2257         (1) Any interested party may request an inspection of the
 2258  records and related financial affairs of a provider providing
 2259  care in accordance with the provisions of this chapter by
 2260  transmitting to the office notice of an alleged violation of
 2261  applicable requirements prescribed by statute or by rule,
 2262  specifying to a reasonable extent the details of the alleged
 2263  violation, which notice must shall be signed by the complainant.
 2264         (2) The substance of the complaint must shall be given to
 2265  the provider no earlier than the time of the inspection. Unless
 2266  the complainant specifically requests otherwise, neither the
 2267  substance of the complaint which is provided to the provider nor
 2268  any copy of the complaint, closure statement, or any record
 2269  which is published, released, or otherwise made available to the
 2270  provider may shall disclose the name of any person mentioned in
 2271  the complaint except the name of any duly authorized officer,
 2272  employee, or agent of the office conducting the investigation or
 2273  inspection pursuant to this chapter.
 2274         (3) Upon receipt of a complaint, the office shall make a
 2275  preliminary review; and, unless the office determines that the
 2276  complaint is without any reasonable basis or the complaint does
 2277  not request an inspection, the office shall make an inspection.
 2278  The office shall provide the complainant with a written
 2279  acknowledgment of the complaint within 15 days after receipt by
 2280  the office. Such acknowledgment must include the case number
 2281  assigned by the office to the complaint and the name and contact
 2282  information of any duly authorized officer, employee, or agent
 2283  of the office conducting the investigation or inspection
 2284  pursuant to this chapter. The complainant must shall be advised,
 2285  within 30 days after the receipt of the complaint by the office,
 2286  of the proposed course of action of the office, including an
 2287  estimated timeframe for the handling of the complaint. If the
 2288  office does not conclude its inspection or investigation within
 2289  the office’s estimated timeframe, the office must advise the
 2290  complainant in writing within 15 days after any revised course
 2291  of action, including a revised estimated timeframe for the
 2292  handling of the complaint. Within 15 days after the office
 2293  completes its inspection or concludes its investigation, the
 2294  office shall provide the complainant and the provider a written
 2295  closure statement specifying the office’s findings and the
 2296  results of any inspection or investigation.
 2297         (4) A No provider operating under a certificate of
 2298  authority under this chapter may not discriminate or retaliate
 2299  in any manner against a resident or an employee of a facility
 2300  providing care because such resident or employee or any other
 2301  person has initiated a complaint pursuant to this section.
 2302         Section 27. Section 651.114, Florida Statutes, is amended
 2303  to read:
 2304         651.114 Delinquency proceedings; remedial rights.—
 2305         (1) Upon determination by the office that a provider is not
 2306  in compliance with this chapter, the office may notify the chair
 2307  of the Continuing Care Advisory Council, who may assist the
 2308  office in formulating a corrective action plan.
 2309         (2) Within 30 days after a request by either the advisory
 2310  council or the office, a provider shall make a plan for
 2311  obtaining compliance or solvency available to the advisory
 2312  council and the office, within 30 days after being requested to
 2313  do so by the council, a plan for obtaining compliance or
 2314  solvency.
 2315         (3) Within 30 days after receipt of a plan for obtaining
 2316  compliance or solvency, the office, or notification, the
 2317  advisory council at the request of the office, shall:
 2318         (a) Consider and evaluate the plan submitted by the
 2319  provider.
 2320         (b) Discuss the problem and solutions with the provider.
 2321         (c) Conduct such other business as is necessary.
 2322         (d) Report its findings and recommendations to the office,
 2323  which may require additional modification of the plan.
 2324  
 2325  This subsection may not be interpreted so as to delay or prevent
 2326  the office from taking any regulatory measures it deems
 2327  necessary regarding the provider that submitted the plan.
 2328         (4) If the financial condition of a continuing care
 2329  facility or provider is impaired or is such that if not modified
 2330  or corrected, its continued operation would result in
 2331  insolvency, the office may direct the provider to formulate and
 2332  file with the office a corrective action plan. If the provider
 2333  fails to submit a plan within 30 days after the office’s
 2334  directive, or submits a plan that is insufficient to correct the
 2335  condition, the office may specify a plan and direct the provider
 2336  to implement the plan. Before specifying a plan, the office may
 2337  seek a recommended plan from the advisory council.
 2338         (5)(4) After receiving approval of a plan by the office,
 2339  the provider shall submit a progress report monthly to the
 2340  advisory council or the office, or both, in a manner prescribed
 2341  by the office. After 3 months, or at any earlier time deemed
 2342  necessary, the council shall evaluate the progress by the
 2343  provider and shall advise the office of its findings.
 2344         (6)(5)If Should the office finds find that sufficient
 2345  grounds exist for rehabilitation, liquidation, conservation,
 2346  reorganization, seizure, or summary proceedings of an insurer as
 2347  set forth in ss. 631.051, 631.061, and 631.071, the department
 2348  office may petition for an appropriate court order or may pursue
 2349  such other relief as is afforded in part I of chapter 631.
 2350  Before invoking its powers under part I of chapter 631, the
 2351  department office shall notify the chair of the advisory
 2352  council.
 2353         (7) Notwithstanding s. 631.011, impairment of a provider,
 2354  for purposes of s. 631.051, is defined according to the term
 2355  “impaired” in s. 651.011.
 2356         (8)(6) In the event an order of conservation,
 2357  rehabilitation, liquidation, or conservation, reorganization,
 2358  seizure, or summary proceeding has been entered against a
 2359  provider, the department and office are vested with all of the
 2360  powers and duties they have under the provisions of part I of
 2361  chapter 631 in regard to delinquency proceedings of insurance
 2362  companies. A provider shall give written notice of the
 2363  proceeding to its residents within 3 business days after the
 2364  initiation of a delinquency proceeding under chapter 631 and
 2365  shall include a notice of the delinquency proceeding in any
 2366  written materials provided to prospective residents.
 2367         (7) If the financial condition of the continuing care
 2368  facility or provider is such that, if not modified or corrected,
 2369  its continued operation would result in insolvency, the office
 2370  may direct the provider to formulate and file with the office a
 2371  corrective action plan. If the provider fails to submit a plan
 2372  within 30 days after the office’s directive or submits a plan
 2373  that is insufficient to correct the condition, the office may
 2374  specify a plan and direct the provider to implement the plan.
 2375         (9) A provider subject to an order to show cause entered
 2376  pursuant to chapter 631 must file its written response to the
 2377  order, together with any defenses it may have to the
 2378  department’s allegations, no later than 20 days after service of
 2379  the order to show cause, but no less than 15 days before the
 2380  date of the hearing set by the order to show cause.
 2381         (10) A hearing held pursuant to chapter 631 to determine
 2382  whether cause exists for the department to be appointed receiver
 2383  must be commenced within 60 days after an order directing a
 2384  provider to show cause.
 2385         (11)(a)(8)(a) The rights of the office described in this
 2386  section are subordinate to the rights of a trustee or lender
 2387  pursuant to the terms of a resolution, ordinance, loan
 2388  agreement, indenture of trust, mortgage, lease, security
 2389  agreement, or other instrument creating or securing bonds or
 2390  notes issued to finance a facility, and the office, subject to
 2391  the provisions of paragraph (c), may shall not exercise its
 2392  remedial rights provided under this section and ss. 651.018,
 2393  651.106, 651.108, and 651.116 with respect to a facility that is
 2394  not in default of any financial or contractual obligation other
 2395  than subject to a lien, mortgage, lease, or other encumbrance or
 2396  trust indenture securing bonds or notes issued in connection
 2397  with the financing of the facility, if the trustee or lender, by
 2398  inclusion or by amendment to the loan documents or by a separate
 2399  contract with the office, agrees that the rights of residents
 2400  under a continuing care or continuing care at-home contract will
 2401  be honored and will not be disturbed by a foreclosure or
 2402  conveyance in lieu thereof as long as the resident:
 2403         1. Is current in the payment of all monetary obligations
 2404  required by the contract;
 2405         2. Is in compliance and continues to comply with all
 2406  provisions of the contract; and
 2407         3. Has asserted no claim inconsistent with the rights of
 2408  the trustee or lender.
 2409         (b) This subsection does not require a trustee or lender
 2410  to:
 2411         1. Continue to engage in the marketing or resale of new
 2412  continuing care or continuing care at-home contracts;
 2413         2. Pay any rebate of entrance fees as may be required by a
 2414  resident’s continuing care or continuing care at-home contract
 2415  as of the date of acquisition of the facility by the trustee or
 2416  lender and until expiration of the period described in paragraph
 2417  (d);
 2418         3. Be responsible for any act or omission of any owner or
 2419  operator of the facility arising before the acquisition of the
 2420  facility by the trustee or lender; or
 2421         4. Provide services to the residents to the extent that the
 2422  trustee or lender would be required to advance or expend funds
 2423  that have not been designated or set aside for such purposes.
 2424         (c) Should the office determine, at any time during the
 2425  suspension of its remedial rights as provided in paragraph (a),
 2426  that the trustee or lender is not in compliance with paragraph
 2427  (a), or that a lender or trustee has assigned or has agreed to
 2428  assign all or a portion of a delinquent or defaulted loan to a
 2429  third party without the office’s written consent, the office
 2430  shall notify the trustee or lender in writing of its
 2431  determination, setting forth the reasons giving rise to the
 2432  determination and specifying those remedial rights afforded to
 2433  the office which the office shall then reinstate.
 2434         (d) Upon acquisition of a facility by a trustee or lender
 2435  and evidence satisfactory to the office that the requirements of
 2436  paragraph (a) have been met, the office shall issue a 90-day
 2437  temporary certificate of authority granting the trustee or
 2438  lender the authority to engage in the business of providing
 2439  continuing care or continuing care at-home and to issue
 2440  continuing care or continuing care at-home contracts subject to
 2441  the office’s right to immediately suspend or revoke the
 2442  temporary certificate of authority if the office determines that
 2443  any of the grounds described in s. 651.106 apply to the trustee
 2444  or lender or that the terms of the contract used as the basis
 2445  for the issuance of the temporary certificate of authority by
 2446  the office have not been or are not being met by the trustee or
 2447  lender since the date of acquisition.
 2448         Section 28. Section 651.1141, Florida Statutes, is created
 2449  to read:
 2450         651.1141 Immediate final orders.The office may issue an
 2451  immediate final order to cease and desist if the office finds
 2452  that installation of a general partner of a provider or
 2453  assumption of ownership or possession or control of 10 percent
 2454  or more of a provider’s assets in violation of s. 651.024 or s.
 2455  651.0245, the removal or commitment of 10 percent or more of the
 2456  required minimum liquid reserve funds in violation of s.
 2457  651.035, or the assumption of control over a facility’s
 2458  operations in violation of s. 651.043 has occurred.
 2459         Section 29. Paragraphs (d) and (e) of subsection (1) of
 2460  section 651.121, Florida Statutes, are amended to read:
 2461         651.121 Continuing Care Advisory Council.—
 2462         (1) The Continuing Care Advisory Council to the office is
 2463  created consisting of 10 members who are residents of this state
 2464  appointed by the Governor and geographically representative of
 2465  this state. Three members shall be administrators of facilities
 2466  that hold valid certificates of authority under this chapter and
 2467  shall have been actively engaged in the offering of continuing
 2468  care contracts in this state for 5 years before appointment. The
 2469  remaining members include:
 2470         (d) An attorney.
 2471         (d)(e)Four Three residents who hold continuing care or
 2472  continuing care at-home contracts with a facility certified in
 2473  this state.
 2474         Section 30. Subsections (1) and (4) of section 651.125,
 2475  Florida Statutes, are amended to read:
 2476         651.125 Criminal penalties; injunctive relief.—
 2477         (1) Any person who maintains, enters into, or, as manager
 2478  or officer or in any other administrative capacity, assists in
 2479  entering into, maintaining, or performing any continuing care or
 2480  continuing care at-home contract subject to this chapter without
 2481  doing so in pursuance of a valid provisional certificate of
 2482  authority or certificate of authority or renewal thereof, as
 2483  contemplated by or provided in this chapter, or who otherwise
 2484  violates any provision of this chapter or rule adopted in
 2485  pursuance of this chapter, commits a felony of the third degree,
 2486  punishable as provided in s. 775.082 or s. 775.083. Each
 2487  violation of this chapter constitutes a separate offense.
 2488         (4) Any action brought by the office against a provider
 2489  shall not abate by reason of a sale or other transfer of
 2490  ownership of the facility used to provide care, which provider
 2491  is a party to the action, except with the express written
 2492  consent of the director of the office.
 2493         Section 31. This act shall take effect July 1, 2018.