Florida Senate - 2018                       CS for CS for SB 438
       
       
        
       By the Committees on Appropriations; and Banking and Insurance;
       and Senators Lee and Campbell
       
       
       
       
       576-03566-18                                           2018438c2
    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 appropriation;
  241         providing an effective date.
  242          
  243  Be It Enacted by the Legislature of the State of Florida:
  244  
  245         Section 1. Section 651.011, Florida Statutes, is amended to
  246  read:
  247         651.011 Definitions.—As used in this chapter, the term:
  248         (1) “Actuarial opinion” means an opinion issued by an
  249  actuary in accordance with Actuarial Standards of Practice No. 3
  250  for Continuing Care Retirement Communities, Revised Edition,
  251  effective May 1, 2011, or any future amendments or replacements
  252  to this standard which may be adopted by the Actuarial Standards
  253  Board.
  254         (2) “Actuarial study” means an analysis prepared for an
  255  individual facility, or consolidated for multiple facilities,
  256  for either a certified provider, as of a current valuation date
  257  or the most recent fiscal year, or for an applicant, as of a
  258  projected future valuation date, which includes an actuary’s
  259  opinion as to whether such provider or applicant is in
  260  satisfactory actuarial balance in accordance with Actuarial
  261  Standards of Practice No. 3 for Continuing Care Retirement
  262  Communities, Revised Edition, effective May 1, 2011, or any
  263  future amendments or replacements to this standard which may be
  264  adopted by the Actuarial Standards Board.
  265         (3) “Actuary” means an individual who is qualified to sign
  266  an actuarial opinion in accordance with the American Academy of
  267  Actuaries’ qualification standards and who is a member in good
  268  standing of the American Academy of Actuaries.
  269         (4)(1) “Advertising” means the dissemination of written,
  270  visual, or electronic information by a provider, or any person
  271  affiliated with or controlled by a provider, to potential
  272  residents or their representatives for the purpose of inducing
  273  such persons to subscribe to or enter into a contract for
  274  continuing care or continuing care at-home.
  275         (5)(2) “Continuing care” or “care” means, pursuant to a
  276  contract, furnishing shelter and nursing care or personal
  277  services to a resident who resides in a facility, whether such
  278  nursing care or personal services are provided in the facility
  279  or in another setting designated in the contract for continuing
  280  care, by an individual not related by consanguinity or affinity
  281  to the resident, upon payment of an entrance fee. The terms may
  282  also be referred to as a “life plan.”
  283         (6)(3) “Continuing Care Advisory Council” or “advisory
  284  council” means the council established in s. 651.121.
  285         (7)(4) “Continuing care at-home” means, pursuant to a
  286  contract other than a contract described in subsection (5) (2),
  287  furnishing to a resident who resides outside the facility the
  288  right to future access to shelter and nursing care or personal
  289  services, whether such services are provided in the facility or
  290  in another setting designated in the contract, by an individual
  291  not related by consanguinity or affinity to the resident, upon
  292  payment of an entrance fee. The term may also be referred to as
  293  a “life plan at-home.”
  294         (8) “Corrective order” means an order issued by the office
  295  which specifies corrective actions the office has determined are
  296  required.
  297         (9)“Days cash on hand” means, for a facility or obligated
  298  group, the quotient obtained by dividing the value of paragraph
  299  (a) by the value of paragraph (b).
  300         (a)The sum of unrestricted cash, unrestricted short-term
  301  and long-term investments, provider restricted funds, and the
  302  minimum liquid reserve as of the reporting period.
  303         (b)Operating expenses less depreciation, amortization, and
  304  other noncash expenses and nonoperating losses, divided by 365.
  305  Operating expenses, depreciation, amortization, and other
  306  noncash expenses and nonoperating losses are each the sum of
  307  their respective values over the 12-month period immediately
  308  preceding the reporting date.
  309  
  310  With prior written approval of the office, a demand note or
  311  other parental guarantee may be considered a short-term or long
  312  term investment for the purposes of paragraph (a). However, the
  313  total of all demand notes issued by the parent may not, at any
  314  time, be more than the sum of unrestricted cash and unrestricted
  315  short-term and long-term investments held by the parent.
  316         (10) “Debt service coverage ratio” means, for a facility or
  317  obligated group, the quotient obtained by dividing the value of
  318  paragraph (a) by the value of paragraph (b).
  319         (a)The sum of total expenses less interest expense on the
  320  facility, depreciation, amortization, and other noncash expenses
  321  and nonoperating losses, subtracted from the sum of total
  322  revenues and gross entrance fees received less earned entrance
  323  fees and refunds paid. Expenses, interest expense on the
  324  facility, depreciation, amortization, other noncash expenses and
  325  nonoperating losses, revenues, noncash revenues, nonoperating
  326  gains, gross entrance fees, earned entrance fees, and refunds
  327  are each the sum of their respective values over the 12-month
  328  period immediately preceding the reporting date.
  329         (b)Total annual principal and interest expense due on the
  330  facility or obligated group over the 12-month period immediately
  331  preceding the reporting date. For purposes of this paragraph,
  332  principal excludes any balloon principal payment amounts, and
  333  interest expense due is the sum of the interest over the 12
  334  month period immediately preceding the reporting date which is
  335  reflected in the provider’s audit.
  336         (11)(5) “Entrance fee” means an initial or deferred payment
  337  of a sum of money or property made as full or partial payment
  338  for continuing care or continuing care at-home. An accommodation
  339  fee, admission fee, member fee, or other fee of similar form and
  340  application are considered to be an entrance fee.
  341         (12)(6) “Facility” means a place where continuing care is
  342  furnished and may include one or more physical plants on a
  343  primary or contiguous site or an immediately accessible site. As
  344  used in this subsection, the term “immediately accessible site”
  345  means a parcel of real property separated by a reasonable
  346  distance from the facility as measured along public
  347  thoroughfares, and the term “primary or contiguous site” means
  348  the real property contemplated in the feasibility study required
  349  by this chapter.
  350         (7) “Generally accepted accounting principles” means those
  351  accounting principles and practices adopted by the Financial
  352  Accounting Standards Board and the American Institute of
  353  Certified Public Accountants, including Statement of Position
  354  90-8 with respect to any full year to which the statement
  355  applies.
  356         (13) “Impaired” means that any of the following have
  357  occurred:
  358         (a) A provider has failed to maintain its minimum liquid
  359  reserve as required in s. 651.035, unless the provider has
  360  received prior written approval from the office for a withdrawal
  361  pursuant to s. 651.035(6) and is compliant with the approved
  362  payment schedule; or
  363         (b)Beginning July 1, 2019:
  364         1.For a provider with mortgage financing from a third
  365  party lender or public bond issue, the provider’s debt service
  366  coverage ratio is less than 1.00:1 and the provider’s days cash
  367  on hand is less than 90; or
  368         2.For a provider without mortgage financing from a third
  369  party lender or public bond issue, the provider’s days cash on
  370  hand is less than 90.
  371         (14)(8) “Insolvency” means the condition in which a the
  372  provider is unable to pay its obligations as they come due in
  373  the normal course of business.
  374         (15)(9) “Licensed” means that a the provider has obtained a
  375  certificate of authority from the office department.
  376         (16) “Manager” or “management company” means a person who
  377  administers the day-to-day business operations of a facility for
  378  a provider, subject to the policies, directives, and oversight
  379  of the provider.
  380         (17)(10) “Nursing care” means those services or acts
  381  rendered to a resident by an individual licensed or certified
  382  pursuant to chapter 464.
  383         (18) “Obligated group” means one or more entities that
  384  jointly agree to be bound by a financing structure containing
  385  security provisions and covenants applicable to the group. For
  386  purposes of this subsection, debt issued under such a financing
  387  structure must be a joint and several obligation of each member
  388  of the group.
  389         (19) “Occupancy” means the total number of occupied
  390  independent living, assisted living, and skilled nursing units
  391  in a facility divided by the total number of units in that
  392  facility, excluding units that are unavailable to market or
  393  reserve, as of the most recent annual report.
  394         (20)(11) “Personal services” has the same meaning as in s.
  395  429.02.
  396         (21)(12) “Provider” means the owner or operator, whether a
  397  natural person, partnership or other unincorporated association,
  398  however organized, trust, or corporation, of an institution,
  399  building, residence, or other place, whether operated for profit
  400  or not, which owner or operator provides continuing care or
  401  continuing care at-home for a fixed or variable fee, or for any
  402  other remuneration of any type, whether fixed or variable, for
  403  the period of care, payable in a lump sum or lump sum and
  404  monthly maintenance charges or in installments. The term does
  405  not apply to an entity that has existed and continuously
  406  operated a facility located on at least 63 acres in this state
  407  providing residential lodging to members and their spouses for
  408  at least 66 years on or before July 1, 1989, and has the
  409  residential capacity of 500 persons, is directly or indirectly
  410  owned or operated by a nationally recognized fraternal
  411  organization, is not open to the public, and accepts only its
  412  members and their spouses as residents.
  413         (22)(13) “Records” means all documents, correspondence, and
  414  the permanent financial, directory, and personnel information
  415  and data maintained by a provider pursuant to this chapter,
  416  regardless of the physical form, characteristics, or means of
  417  transmission.
  418         (23) “Regulatory action level event” means that any two of
  419  the following have occurred:
  420         (a)The provider’s debt service coverage ratio is less than
  421  the minimum ratio specified in the provider’s bond covenants or
  422  lending agreement for long-term financing, or, if the provider
  423  does not have a debt service coverage ratio required by its
  424  lending institution, the provider’s debt service coverage ratio
  425  is less than 1.20:1 as of the most recent annual report filed
  426  with the office. If the provider is a member of an obligated
  427  group having cross-collateralized debt and the obligated group
  428  has obtained an investment grade credit rating from a nationally
  429  recognized credit rating agency, as applicable, from Moody’s
  430  Investors Service, Standard & Poor’s, or Fitch Ratings, the
  431  obligated group’s debt service coverage ratio will be used as
  432  the provider’s debt service coverage ratio.
  433         (b)The provider’s days cash on hand is less than the
  434  minimum number of days cash on hand specified in the provider’s
  435  bond covenants or lending agreement for long-term financing. If
  436  the provider does not have a days cash on hand required by its
  437  lending institution, the days cash on hand may not be less than
  438  100 as of the most recent annual report filed with the office.
  439  If the provider is a member of an obligated group having cross
  440  collateralized debt and the obligated group has obtained an
  441  investment grade credit rating from a nationally recognized
  442  credit rating agency, as applicable, from Moody’s Investors
  443  Service, Standard & Poor’s, or Fitch Ratings, the days cash on
  444  hand of the obligated group will be used as the provider’s days
  445  cash on hand.
  446         (c) The occupancy at the provider’s facility is less than
  447  80 percent, averaged over the 12-month period immediately
  448  preceding the reporting date.
  449         (24)(14) “Resident” means a purchaser of, a nominee of, or
  450  a subscriber to a continuing care or continuing care at-home
  451  contract. Such contract does not give the resident a part
  452  ownership of the facility in which the resident is to reside,
  453  unless expressly provided in the contract.
  454         (25)(15) “Shelter” means an independent living unit, room,
  455  apartment, cottage, villa, personal care unit, nursing bed, or
  456  other living area within a facility set aside for the exclusive
  457  use of one or more identified residents.
  458         Section 2. Section 651.012, Florida Statutes, is amended to
  459  read:
  460         651.012 Exempted facility; written disclosure of
  461  exemption.—Any facility exempted under ss. 632.637(1)(e) and
  462  651.011(21) 651.011(12) must provide written disclosure of such
  463  exemption to each person admitted to the facility after October
  464  1, 1996. This disclosure must be written using language likely
  465  to be understood by the person and must briefly explain the
  466  exemption.
  467         Section 3. Subsection (2) of section 651.013, Florida
  468  Statutes, is amended to read:
  469         651.013 Chapter exclusive; applicability of other laws.—
  470         (2) In addition to other applicable provisions cited in
  471  this chapter, the office has the authority granted under ss.
  472  624.302 and 624.303, 624.307-624.312, 624.318 624.308-624.312,
  473  624.319(1)-(3), 624.320-624.321, 624.324, and 624.34, and
  474  624.422 of the Florida Insurance Code to regulate providers of
  475  continuing care and continuing care at-home.
  476         Section 4. Section 651.019, Florida Statutes, is amended to
  477  read:
  478         651.019 New financing, additional financing, or
  479  refinancing.—
  480         (1)(a)A provider shall provide notice to the residents’
  481  council of any new financing or refinancing at least 30 days
  482  before the closing date of the financing or refinancing
  483  transaction. The notice must include a general outline of the
  484  amount and terms of the financing or refinancing and the
  485  intended use of proceeds.
  486         (b) If the facility does not have a residents’ council, the
  487  facility must make available, in the same manner as other
  488  community notices, the information required by paragraph (a)
  489  After issuance of a certificate of authority, the provider shall
  490  submit to the office a general outline, including intended use
  491  of proceeds, with respect to any new financing, additional
  492  financing, or refinancing at least 30 days before the closing
  493  date of such financing transaction.
  494         (2) Within 30 days after the closing date of such financing
  495  or refinancing transaction, The provider shall furnish any
  496  information the office may reasonably request in connection with
  497  any new financing, additional financing, or refinancing,
  498  including, but not limited to, the financing agreements and any
  499  related documents, escrow or trust agreements, and statistical
  500  or financial data. the provider shall also submit to the office
  501  copies of executed financing documents and escrow or trust
  502  agreements prepared in support of such financing or refinancing
  503  transaction, and a copy of all documents required to be
  504  submitted to the residents’ council under paragraph (1)(a)
  505  within 30 days after the closing date.
  506         Section 5. Section 651.021, Florida Statutes, is amended to
  507  read:
  508         651.021 Certificate of authority required.—
  509         (1)A No person may not engage in the business of providing
  510  continuing care, issuing contracts for continuing care or
  511  continuing care at-home, or constructing a facility for the
  512  purpose of providing continuing care in this state without a
  513  certificate of authority obtained from the office as provided in
  514  this chapter. This section subsection does not prohibit the
  515  preparation of a construction site or construction of a model
  516  residence unit for marketing purposes, or both. The office may
  517  allow the purchase of an existing building for the purpose of
  518  providing continuing care if the office determines that the
  519  purchase is not being made to circumvent the prohibitions in
  520  this section.
  521         (2) Written approval must be obtained from the office
  522  before commencing construction or marketing for an expansion of
  523  a certificated facility equivalent to the addition of at least
  524  20 percent of existing units or 20 percent or more in the number
  525  of continuing care at-home contracts. This provision does not
  526  apply to construction for which a certificate of need from the
  527  Agency for Health Care Administration is required.
  528         (a) For providers that offer both continuing care and
  529  continuing care at-home, the 20 percent is based on the total of
  530  both existing units and existing contracts for continuing care
  531  at-home. For purposes of this subsection, an expansion includes
  532  increases in the number of constructed units or continuing care
  533  at-home contracts or a combination of both.
  534         (b) The application for such approval shall be on forms
  535  adopted by the commission and provided by the office. The
  536  application must include the feasibility study required by s.
  537  651.022(3) or s. 651.023(1)(b) and such other information as
  538  required by s. 651.023. If the expansion is only for continuing
  539  care at-home contracts, an actuarial study prepared by an
  540  independent actuary in accordance with standards adopted by the
  541  American Academy of Actuaries which presents the financial
  542  impact of the expansion may be substituted for the feasibility
  543  study.
  544         (c) In determining whether an expansion should be approved,
  545  the office shall use the criteria provided in ss. 651.022(6) and
  546  651.023(4).
  547         Section 6. Section 651.0215, Florida Statutes, is created
  548  to read:
  549         651.0215 Consolidated application for provisional
  550  certificate of authority and certificate of authority; required
  551  restrictions on use of entrance fees.—
  552         (1)For an applicant to qualify for a certificate of
  553  authority without first obtaining a provisional certificate of
  554  authority, the following conditions must be met:
  555         (a)All reservation deposits and entrance fees must be
  556  placed in escrow in accordance with s. 651.033. The applicant
  557  may not use or pledge any part of an initial entrance fee for
  558  the construction or purchase of the facility or as security for
  559  long-term financing.
  560         (b)The reservation deposit may not exceed $5,000 upon a
  561  resident’s selection of a unit and must be refundable at any
  562  time before the resident takes occupancy of the selected unit.
  563         (c)The resident contract must state that collection of the
  564  balance of the entrance fee is to occur after the resident is
  565  notified that his or her selected unit is available for
  566  occupancy and on or before the occupancy date.
  567         (2)The consolidated application must be on a form
  568  prescribed by the commission and must contain all of the
  569  following information:
  570         (a)All of the information required under s 651.022(2).
  571         (b)A feasibility study prepared by an independent
  572  consultant which contains all of the information required by s.
  573  651.022(3) and financial forecasts or projections prepared in
  574  accordance with standards adopted by the American Institute of
  575  Certified Public Accountants or in accordance with standards for
  576  feasibility studies for continuing care retirement communities
  577  adopted by the Actuarial Standards Board.
  578         1.The feasibility study must take into account project
  579  costs, actual marketing results to date and marketing
  580  projections, resident fees and charges, competition, resident
  581  contract provisions, and other factors that affect the
  582  feasibility of operating the facility.
  583         2.If the feasibility study is prepared by an independent
  584  certified public accountant, it must contain an examination
  585  report, or a compilation report acceptable to the office,
  586  containing a financial forecast or projections for the first 5
  587  years of operations which take into account an actuary’s
  588  mortality and morbidity assumptions as the study relates to
  589  turnover, rates, fees, and charges. If the study is prepared by
  590  an independent consulting actuary, it must contain mortality and
  591  morbidity assumptions as it relates to turnover, rates, fees,
  592  and charges and an actuary’s signed opinion that the project as
  593  proposed is feasible and that the study has been prepared in
  594  accordance with Actuarial Standards of Practice No. 3 for
  595  Continuing Care Retirement Communities, Revised Edition,
  596  effective May 1, 2011.
  597         (c) Documents evidencing that commitments have been secured
  598  for construction financing and long-term financing or that a
  599  documented plan acceptable to the office has been adopted by the
  600  applicant for long-term financing.
  601         (d) Documents evidencing that all conditions of the lender
  602  have been satisfied to activate the commitment to disburse
  603  funds, other than the obtaining of the certificate of authority,
  604  the completion of construction, or the closing of the purchase
  605  of realty or buildings for the facility.
  606         (e) Documents evidencing that the aggregate amount of
  607  entrance fees received by or pledged to the applicant, plus
  608  anticipated proceeds from any long-term financing commitment and
  609  funds from all other sources in the actual possession of the
  610  applicant, equal at least 100 percent of the aggregate cost of
  611  constructing or purchasing, equipping, and furnishing the
  612  facility plus 100 percent of the anticipated startup losses of
  613  the facility.
  614         (f) A complete audited financial report of the applicant,
  615  prepared by an independent certified public accountant in
  616  accordance with generally accepted accounting principles, as of
  617  the date the applicant commenced business operations or for the
  618  fiscal year that ended immediately preceding the date of
  619  application, whichever is later, and complete unaudited
  620  quarterly financial statements attested to by the applicant
  621  after the date of the last audit.
  622         (g) Documents evidencing that the applicant will be able to
  623  comply with s. 651.035.
  624         (h) Such other reasonable data, financial statements, and
  625  pertinent information as the commission or office may require
  626  with respect to the applicant or the facility to determine the
  627  financial status of the facility and the management capabilities
  628  of its managers and owners.
  629         (3) If an applicant has or proposes to have more than one
  630  facility offering continuing care or continuing care at-home, a
  631  separate certificate of authority must be obtained for each
  632  facility.
  633         (4) Within 45 days after receipt of the information
  634  required under subsection (2), the office shall examine the
  635  information and notify the applicant in writing, specifically
  636  requesting any additional information that the office is
  637  authorized to require. An application is deemed complete when
  638  the office receives all requested information and the applicant
  639  corrects any error or omission of which the applicant was timely
  640  notified or when the time for such notification has expired.
  641  Within 15 days after receipt of all of the requested additional
  642  information, the office shall notify the applicant in writing
  643  that all of the requested information has been received and that
  644  the application is deemed to be complete as of the date of the
  645  notice. Failure to notify the applicant in writing within the
  646  15-day period constitutes acknowledgment by the office that it
  647  has received all requested additional information, and the
  648  application is deemed complete for purposes of review on the
  649  date the applicant files all of the required additional
  650  information.
  651         (5) Within 45 days after an application is deemed complete
  652  as set forth in subsection (4) and upon completion of the
  653  remaining requirements of this section, the office shall
  654  complete its review and issue or deny a certificate of authority
  655  to the applicant. The period for review by the office may not be
  656  tolled if the office requests additional information and the
  657  applicant provides the requested information within 5 business
  658  days. If a certificate of authority is denied, the office must
  659  notify the applicant in writing, citing the specific failures to
  660  satisfy this chapter, and the applicant is entitled to an
  661  administrative hearing pursuant to chapter 120.
  662         (6)The office shall issue a certificate of authority upon
  663  determining that the applicant meets all requirements of law and
  664  has submitted all of the information required under this
  665  section, that all escrow requirements have been satisfied, and
  666  that the fees prescribed in s. 651.015(2) have been paid.
  667         (7) The issuance of a certificate of authority entitles the
  668  applicant to begin construction and collect reservation deposits
  669  and entrance fees from prospective residents. The reservation
  670  contract must state the cancellation policy and the terms of the
  671  continuing care contract to be entered into. All or any part of
  672  an entrance fee or reservation deposit collected must be placed
  673  in an escrow account or on deposit with the department pursuant
  674  to s. 651.033.
  675         (8) The provider is entitled to secure release of the
  676  moneys held in escrow within 7 days after the office receives an
  677  affidavit from the provider, along with appropriate
  678  documentation to verify, and notification is provided to the
  679  escrow agent by certified mail, that the following conditions
  680  have been satisfied:
  681         (a) A certificate of occupancy has been issued.
  682         (b) Payment in full has been received for at least 70
  683  percent of the total units of a phase or of the total of the
  684  combined phases constructed. If a provider offering continuing
  685  care at-home is applying for a release of escrowed entrance
  686  fees, the same minimum requirement must be met for the
  687  continuing care and continuing care at-home contracts
  688  independently of each other.
  689         (c) The provider has evidence of sufficient funds to meet
  690  the requirements of s. 651.035, which may include funds
  691  deposited in the initial entrance fee account.
  692         (d) Documents evidencing the intended application of the
  693  proceeds upon release and documents evidencing that the entrance
  694  fees, when released, will be applied as represented to the
  695  office.
  696  
  697  Notwithstanding chapter 120, a person, other than the provider,
  698  the escrow agent, and the office, may not have a substantial
  699  interest in any decision by the office regarding the release of
  700  escrow funds in any proceeding under chapter 120 or this
  701  chapter.
  702         (9) The office may not approve any application that
  703  includes in the plan of financing any encumbrance of the
  704  operating reserves or renewal and replacement reserves required
  705  by this chapter.
  706         (10)The office may not issue a certificate of authority to
  707  a facility that does not have a component that is to be licensed
  708  pursuant to part II of chapter 400 or part I of chapter 429, or
  709  that does not offer personal services or nursing services
  710  through written contractual agreement. A written contractual
  711  agreement must be disclosed in the contract for continuing care
  712  or continuing care at-home and is subject to s. 651.1151.
  713         Section 7. Subsection (2) and present subsections (6) and
  714  (8) of section 651.022, Florida Statutes, are amended, present
  715  subsections (3) through (8) of that section are redesignated as
  716  subsections (4) through (9), respectively, and a new subsection
  717  (3) is added to that section, to read:
  718         651.022 Provisional certificate of authority; application.—
  719         (2) The application for a provisional certificate of
  720  authority must shall be on a form prescribed by the commission
  721  and must shall contain the following information:
  722         (a) If the applicant or provider is a corporation, a copy
  723  of the articles of incorporation and bylaws; if the applicant or
  724  provider is a partnership or other unincorporated association, a
  725  copy of the partnership agreement, articles of association, or
  726  other membership agreement; and, if the applicant or provider is
  727  a trust, a copy of the trust agreement or instrument.
  728         (b) The full names, residences, and business addresses of:
  729         1. The proprietor, if the applicant or provider is an
  730  individual.
  731         2. Every partner or member, if the applicant or provider is
  732  a partnership or other unincorporated association, however
  733  organized, having fewer than 50 partners or members, together
  734  with the business name and address of the partnership or other
  735  organization.
  736         3. The principal partners or members, if the applicant or
  737  provider is a partnership or other unincorporated association,
  738  however organized, having 50 or more partners or members,
  739  together with the business name and business address of the
  740  partnership or other organization. If such unincorporated
  741  organization has officers and a board of directors, the full
  742  name and business address of each officer and director may be
  743  set forth in lieu of the full name and business address of its
  744  principal members.
  745         4. The corporation and each officer and director thereof,
  746  if the applicant or provider is a corporation.
  747         5. Every trustee and officer, if the applicant or provider
  748  is a trust.
  749         6. The manager, whether an individual, corporation,
  750  partnership, or association.
  751         7. Any stockholder holding at least a 10 percent interest
  752  in the operations of the facility in which the care is to be
  753  offered.
  754         8. Any person whose name is required to be provided in the
  755  application under this paragraph and who owns any interest in or
  756  receives any remuneration from, directly or indirectly, any
  757  professional service firm, association, trust, partnership, or
  758  corporation providing goods, leases, or services to the facility
  759  for which the application is made, with a real or anticipated
  760  value of $10,000 or more, and the name and address of the
  761  professional service firm, association, trust, partnership, or
  762  corporation in which such interest is held. The applicant shall
  763  describe such goods, leases, or services and the probable cost
  764  to the facility or provider and shall describe why such goods,
  765  leases, or services should not be purchased from an independent
  766  entity.
  767         9. Any person, corporation, partnership, association, or
  768  trust owning land or property leased to the facility, along with
  769  a copy of the lease agreement.
  770         10. Any affiliated parent or subsidiary corporation or
  771  partnership.
  772         (c)1. Evidence that the applicant is reputable and of
  773  responsible character. If the applicant is a firm, association,
  774  organization, partnership, business trust, corporation, or
  775  company, the form must shall require evidence that the members
  776  or shareholders are reputable and of responsible character, and
  777  the person in charge of providing care under a certificate of
  778  authority are shall likewise be required to produce evidence of
  779  being reputable and of responsible character.
  780         2. Evidence satisfactory to the office of the ability of
  781  the applicant to comply with the provisions of this chapter and
  782  with rules adopted by the commission pursuant to this chapter.
  783         3. A statement of whether a person identified in the
  784  application for a provisional certificate of authority or the
  785  administrator or manager of the facility, if such person has
  786  been designated, or any such person living in the same location:
  787         a. Has been convicted of a felony or has pleaded nolo
  788  contendere to a felony charge, or has been held liable or has
  789  been enjoined in a civil action by final judgment, if the felony
  790  or civil action involved fraud, embezzlement, fraudulent
  791  conversion, or misappropriation of property.
  792         b. Is subject to a currently effective injunctive or
  793  restrictive order or federal or state administrative order
  794  relating to business activity or health care as a result of an
  795  action brought by a public agency or department, including,
  796  without limitation, an action affecting a license under chapter
  797  400 or chapter 429.
  798  
  799  The statement must shall set forth the court or agency, the date
  800  of conviction or judgment, and the penalty imposed or damages
  801  assessed, or the date, nature, and issuer of the order. Before
  802  determining whether a provisional certificate of authority is to
  803  be issued, the office may make an inquiry to determine the
  804  accuracy of the information submitted pursuant to subparagraphs
  805  1., 2., and 3. 1. and 2.
  806         (d) The contracts for continuing care and continuing care
  807  at-home to be entered into between the provider and residents
  808  which meet the minimum requirements of s. 651.055 or s. 651.057
  809  and which include a statement describing the procedures required
  810  by law relating to the release of escrowed entrance fees. Such
  811  statement may be furnished through an addendum.
  812         (e) Any advertisement or other written material proposed to
  813  be used in the solicitation of residents.
  814         (f) Such other reasonable data, financial statements, and
  815  pertinent information as the commission or office may reasonably
  816  require with respect to the provider or the facility, including
  817  the most recent audited financial report statements of
  818  comparable facilities currently or previously owned, managed, or
  819  developed by the applicant or its principal, to assist in
  820  determining the financial viability of the project and the
  821  management capabilities of its managers and owners.
  822         (g) The forms of the residency contracts, reservation
  823  contracts, escrow agreements, and wait list contracts, if
  824  applicable, which are proposed to be used by the provider in the
  825  furnishing of care. The office shall approve contracts and
  826  escrow agreements that comply with ss. 651.023(1)(c), 651.033,
  827  651.055, and 651.057. Thereafter, no other form of contract or
  828  agreement may be used by the provider until it has been
  829  submitted to the office and approved.
  830  
  831  If any material change occurs in the facts set forth in an
  832  application filed with the office pursuant to this subsection,
  833  an amendment setting forth such change must be filed with the
  834  office within 10 business days after the applicant becomes aware
  835  of such change, and a copy of the amendment must be sent by
  836  registered mail to the principal office of the facility and to
  837  the principal office of the controlling company.
  838         (3) In addition to the information required in subsection
  839  (2), an applicant for a provisional certificate of authority
  840  must submit a feasibility study with appropriate financial,
  841  marketing, and actuarial assumptions for the first 5 years of
  842  operations. The feasibility study must include at least the
  843  following information:
  844         (a)A description of the proposed facility, including the
  845  location, size, anticipated completion date, and the proposed
  846  construction program.
  847         (b) Identification and an evaluation of the primary and, if
  848  appropriate, the secondary market areas of the facility and the
  849  projected unit sales per month.
  850         (c)Projected revenues, including anticipated entrance
  851  fees; monthly service fees; nursing care revenues, if
  852  applicable; and all other sources of revenue.
  853         (d)Projected expenses, including staffing requirements and
  854  salaries; cost of property, plant, and equipment, including
  855  depreciation expense; interest expense; marketing expense; and
  856  other operating expenses.
  857         (e)A projected balance sheet of the applicant.
  858         (f)Expectations of the financial condition of the project,
  859  including the projected cash flow, and an estimate of the funds
  860  anticipated to be necessary to cover startup losses.
  861         (g)The inflation factor, if any, assumed in the
  862  feasibility study for the proposed facility and how and where it
  863  is applied.
  864         (h)Project costs and the total amount of debt financing
  865  required, marketing projections, resident fees and charges, the
  866  competition, resident contract provisions, and other factors
  867  that affect the feasibility of the facility.
  868         (i)Appropriate population projections, including morbidity
  869  and mortality assumptions.
  870         (j)The name of the person who prepared the feasibility
  871  study and the experience of such person in preparing similar
  872  studies or otherwise consulting in the field of continuing care.
  873  The preparer of the feasibility study may be the provider or a
  874  contracted third party.
  875         (k)Any other information that the applicant deems relevant
  876  and appropriate to enable the office to make a more informed
  877  determination.
  878         (7)(6) Within 45 days after the date an application is
  879  deemed complete as set forth in paragraph (6)(b) (5)(b), the
  880  office shall complete its review and issue a provisional
  881  certificate of authority to the applicant based upon its review
  882  and a determination that the application meets all requirements
  883  of law, that the feasibility study was based on sufficient data
  884  and reasonable assumptions, and that the applicant will be able
  885  to provide continuing care or continuing care at-home as
  886  proposed and meet all financial and contractual obligations
  887  related to its operations, including the financial requirements
  888  of this chapter. The period for review by the office may not be
  889  tolled if the office requests additional information and the
  890  applicant provides the requested information within 5 business
  891  days. If the application is denied, the office shall notify the
  892  applicant in writing, citing the specific failures to meet the
  893  provisions of this chapter. Such denial entitles the applicant
  894  to a hearing pursuant to chapter 120.
  895         (9)(8) The office may shall not approve any application
  896  that which includes in the plan of financing any encumbrance of
  897  the operating reserves or renewal and replacement reserves
  898  required by this chapter.
  899         Section 8. Subsections (1) through (4), paragraph (b) of
  900  subsection (5), and subsections (6), (8), and (9) of section
  901  651.023, Florida Statutes, are amended to read:
  902         651.023 Certificate of authority; application.—
  903         (1) After issuance of a provisional certificate of
  904  authority, the office shall issue to the holder of such
  905  provisional certificate a certificate of authority if the holder
  906  of the provisional certificate provides the office with the
  907  following information:
  908         (a) Any material change in status with respect to the
  909  information required to be filed under s. 651.022(2) in the
  910  application for the provisional certificate.
  911         (b) A feasibility study prepared by an independent
  912  consultant which contains all of the information required by s.
  913  651.022(4) s. 651.022(3) and financial forecasts or projections
  914  prepared in accordance with standards adopted by the American
  915  Institute of Certified Public Accountants or in accordance with
  916  standards for feasibility studies or continuing care retirement
  917  communities adopted by the Actuarial Standards Board.
  918         1. The study must also contain an independent evaluation
  919  and examination opinion, or a comparable opinion acceptable to
  920  the office, by the consultant who prepared the study, of the
  921  underlying assumptions used as a basis for the forecasts or
  922  projections in the study and that the assumptions are reasonable
  923  and proper and the project as proposed is feasible.
  924         1.2. The study must take into account project costs, actual
  925  marketing results to date and marketing projections, resident
  926  fees and charges, competition, resident contract provisions, and
  927  any other factors which affect the feasibility of operating the
  928  facility.
  929         2.3. If the study is prepared by an independent certified
  930  public accountant, it must contain an examination opinion, or a
  931  compilation report acceptable to the office, containing a
  932  financial forecast or projections for the first 5 3 years of
  933  operations which take into account an actuary’s mortality and
  934  morbidity assumptions as the study relates to turnover, rates,
  935  fees, and charges and financial projections having a compilation
  936  opinion for the next 3 years. If the study is prepared by an
  937  independent consulting actuary, it must contain mortality and
  938  morbidity assumptions as the study relates to turnover, rates,
  939  fees, and charges, data and an actuary’s signed opinion that the
  940  project as proposed is feasible and that the study has been
  941  prepared in accordance with standards adopted by the American
  942  Academy of Actuaries.
  943         (c) Subject to subsection (4), a provider may submit an
  944  application for a certificate of authority and any required
  945  exhibits upon submission of documents evidencing proof that the
  946  project has a minimum of 30 percent of the units reserved for
  947  which the provider is charging an entrance fee. This does not
  948  apply to an application for a certificate of authority for the
  949  acquisition of a facility for which a certificate of authority
  950  was issued before October 1, 1983, to a provider who
  951  subsequently becomes a debtor in a case under the United States
  952  Bankruptcy Code, 11 U.S.C. ss. 101 et seq., or to a provider for
  953  which the department has been appointed receiver pursuant to
  954  part II of chapter 631.
  955         (d) Documents evidencing Proof that commitments have been
  956  secured for both construction financing and long-term financing
  957  or a documented plan acceptable to the office has been adopted
  958  by the applicant for long-term financing.
  959         (e) Documents evidencing Proof that all conditions of the
  960  lender have been satisfied to activate the commitment to
  961  disburse funds other than the obtaining of the certificate of
  962  authority, the completion of construction, or the closing of the
  963  purchase of realty or buildings for the facility.
  964         (f) Documents evidencing Proof that the aggregate amount of
  965  entrance fees received by or pledged to the applicant, plus
  966  anticipated proceeds from any long-term financing commitment,
  967  plus funds from all other sources in the actual possession of
  968  the applicant, equal at least 100 percent of the aggregate cost
  969  of constructing or purchasing, equipping, and furnishing the
  970  facility plus 100 percent of the anticipated startup losses of
  971  the facility.
  972         (g) A complete audited financial report statements of the
  973  applicant, prepared by an independent certified public
  974  accountant in accordance with generally accepted accounting
  975  principles, as of the date the applicant commenced business
  976  operations or for the fiscal year that ended immediately
  977  preceding the date of application, whichever is later, and
  978  complete unaudited quarterly financial statements attested to by
  979  the applicant after the date of the last audit.
  980         (h) Documents evidencing Proof that the applicant has
  981  complied with the escrow requirements of subsection (5) or
  982  subsection (7) and will be able to comply with s. 651.035.
  983         (i) Such other reasonable data, financial statements, and
  984  pertinent information as the commission or office may require
  985  with respect to the applicant or the facility, to determine the
  986  financial status of the facility and the management capabilities
  987  of its managers and owners.
  988  
  989  If any material change occurs in the facts set forth in an
  990  application filed with the office pursuant to this subsection,
  991  an amendment setting forth such change must be filed with the
  992  office within 10 business days, and a copy of the amendment must
  993  be sent by registered mail to the principal office of the
  994  facility and to the principal office of the controlling company.
  995         (2) Within 30 days after receipt of the information
  996  required under subsection (1), the office shall examine such
  997  information and notify the provider in writing, specifically
  998  requesting any additional information the office is permitted by
  999  law to require. Within 15 days after receipt of all of the
 1000  requested additional information, the office shall notify the
 1001  provider in writing that all of the requested information has
 1002  been received, and the application is deemed to be complete as
 1003  of the date of the notice. Failure to notify the provider in
 1004  writing within the 15-day period constitutes acknowledgment by
 1005  the office that it has received all requested additional
 1006  information, and the application is deemed complete for purposes
 1007  of review on the date of filing all of the required additional
 1008  information Within 15 days after receipt of all of the requested
 1009  additional information, the office shall notify the provider in
 1010  writing that all of the requested information has been received
 1011  and the application is deemed to be complete as of the date of
 1012  the notice. Failure to notify the applicant in writing within
 1013  the 15-day period constitutes acknowledgment by the office that
 1014  it has received all requested additional information, and the
 1015  application shall be deemed complete for purposes of review on
 1016  the date of filing all of the required additional information.
 1017         (3) Within 45 days after an application is deemed complete
 1018  as set forth in subsection (2), and upon completion of the
 1019  remaining requirements of this section, the office shall
 1020  complete its review and issue or deny a certificate of authority
 1021  to the holder of a provisional certificate of authority. If a
 1022  certificate of authority is denied, the office must notify the
 1023  holder of the provisional certificate in writing, citing the
 1024  specific failures to satisfy the provisions of this chapter. The
 1025  period for review by the office may not be tolled if the office
 1026  requests additional information and the applicant provides the
 1027  requested information within 5 business days. If denied, the
 1028  holder of the provisional certificate is entitled to an
 1029  administrative hearing pursuant to chapter 120.
 1030         (4) The office shall issue a certificate of authority upon
 1031  determining that the applicant meets all requirements of law and
 1032  has submitted all of the information required by this section,
 1033  that all escrow requirements have been satisfied, and that the
 1034  fees prescribed in s. 651.015(2) have been paid.
 1035         (a) A Notwithstanding satisfaction of the 30-percent
 1036  minimum reservation requirement of paragraph (1)(c), no
 1037  certificate of authority may not shall be issued until
 1038  documentation evidencing that the project has a minimum of 50
 1039  percent of the units reserved for which the provider is charging
 1040  an entrance fee, and proof is provided to the office. If a
 1041  provider offering continuing care at-home is applying for a
 1042  certificate of authority or approval of an expansion pursuant to
 1043  s. 651.021(2), the same minimum reservation requirements must be
 1044  met for the continuing care and continuing care at-home
 1045  contracts, independently of each other.
 1046         (b) In order for a unit to be considered reserved under
 1047  this section, the provider must collect a minimum deposit of the
 1048  lesser of $40,000 or 10 percent of the then-current entrance fee
 1049  for that unit, and may assess a forfeiture penalty of 2 percent
 1050  of the entrance fee due to termination of the reservation
 1051  contract after 30 days for any reason other than the death or
 1052  serious illness of the resident, the failure of the provider to
 1053  meet its obligations under the reservation contract, or other
 1054  circumstances beyond the control of the resident that equitably
 1055  entitle the resident to a refund of the resident’s deposit. The
 1056  reservation contract must state the cancellation policy and the
 1057  terms of the continuing care or continuing care at-home contract
 1058  to be entered into.
 1059         (5) Up to 25 percent of the moneys paid for all or any part
 1060  of an initial entrance fee may be included or pledged for the
 1061  construction or purchase of the facility or as security for
 1062  long-term financing. The term “initial entrance fee” means the
 1063  total entrance fee charged by the facility to the first occupant
 1064  of a unit.
 1065         (b) For an expansion as provided in s. 651.0246 s.
 1066  651.021(2), a minimum of 75 percent of the moneys paid for all
 1067  or any part of an initial entrance fee collected for continuing
 1068  care and 50 percent of the moneys paid for all or any part of an
 1069  initial fee collected for continuing care at-home shall be
 1070  placed in an escrow account or on deposit with the department as
 1071  prescribed in s. 651.033.
 1072         (6) The provider is entitled to secure release of the
 1073  moneys held in escrow within 7 days after receipt by the office
 1074  of an affidavit from the provider, along with appropriate copies
 1075  to verify, and notification to the escrow agent by certified
 1076  mail, that the following conditions have been satisfied:
 1077         (a) A certificate of occupancy has been issued.
 1078         (b) Payment in full has been received for at least 70
 1079  percent of the total units of a phase or of the total of the
 1080  combined phases constructed. If a provider offering continuing
 1081  care at-home is applying for a release of escrowed entrance
 1082  fees, the same minimum requirement must be met for the
 1083  continuing care and continuing care at-home contracts,
 1084  independently of each other.
 1085         (c) The consultant who prepared the feasibility study
 1086  required by this section or a substitute approved by the office
 1087  certifies within 12 months before the date of filing for office
 1088  approval that there has been no material adverse change in
 1089  status with regard to the feasibility study. If a material
 1090  adverse change exists at the time of submission, sufficient
 1091  information acceptable to the office and the feasibility
 1092  consultant must be submitted which remedies the adverse
 1093  condition.
 1094         (c)(d)Documents evidencing Proof that commitments have
 1095  been secured or a documented plan adopted by the applicant has
 1096  been approved by the office for long-term financing.
 1097         (d)(e)Documents evidencing Proof that the provider has
 1098  sufficient funds to meet the requirements of s. 651.035, which
 1099  may include funds deposited in the initial entrance fee account.
 1100         (e)(f)Documents evidencing Proof as to the intended
 1101  application of the proceeds upon release and documentation proof
 1102  that the entrance fees when released will be applied as
 1103  represented to the office.
 1104         (f) If any material change occurred in the facts set forth
 1105  in the application filed with the office pursuant to subsection
 1106  (1), the applicant timely filed the amendment setting forth such
 1107  change with the office and sent copies of the amendment to the
 1108  principal office of the facility and to the principal office of
 1109  the controlling company as required under that subsection.
 1110  
 1111  Notwithstanding chapter 120, no person, other than the provider,
 1112  the escrow agent, and the office, may have a substantial
 1113  interest in any office decision regarding release of escrow
 1114  funds in any proceedings under chapter 120 or this chapter
 1115  regarding release of escrow funds.
 1116         (8) The timeframes provided under s. 651.022(5) and (6)
 1117  apply to applications submitted under s. 651.021(2). The office
 1118  may not issue a certificate of authority to a facility that does
 1119  not have a component that is to be licensed pursuant to part II
 1120  of chapter 400 or to part I of chapter 429 or that does not
 1121  offer personal services or nursing services through written
 1122  contractual agreement. A written contractual agreement must be
 1123  disclosed in the contract for continuing care or continuing care
 1124  at-home and is subject to the provisions of s. 651.1151,
 1125  relating to administrative, vendor, and management contracts.
 1126         (9) The office may not approve an application that includes
 1127  in the plan of financing any encumbrance of the operating
 1128  reserves or renewal and replacement reserves required by this
 1129  chapter.
 1130         Section 9. Section 651.024, Florida Statutes, is amended to
 1131  read:
 1132         651.024 Acquisition.—
 1133         (1) A person who seeks to assume the role of general
 1134  partner of a provider or otherwise assume ownership or
 1135  possession of, or control over, 10 percent or more of a
 1136  provider’s assets, based on the balance sheet from the most
 1137  recent financial audit filed with the office, is issued a
 1138  certificate of authority to operate a continuing care facility
 1139  or a provisional certificate of authority shall be subject to
 1140  the provisions of s. 628.4615 and is not required to make
 1141  filings pursuant to s. 651.022, s. 651.023, or s. 651.0245.
 1142         (2) A person who seeks to acquire and become the provider
 1143  for a facility is subject to s. 651.0245 and is not required to
 1144  make filings pursuant to ss. 628.4615, 651.022, and 651.023.
 1145         (3) A person may rebut a presumption of control by filing a
 1146  disclaimer of control with the office on a form prescribed by
 1147  the commission. The disclaimer must fully disclose all material
 1148  relationships and bases for affiliation between the person and
 1149  the provider or facility, as well as the basis for disclaiming
 1150  the affiliation. In lieu of such form, a person or acquiring
 1151  party may file with the office a copy of a Schedule 13G filed
 1152  with the Securities and Exchange Commission pursuant to Rule
 1153  13d-1(b) or (c), 17 C.F.R. s. 240.13d-1, under the Securities
 1154  Exchange Act of 1934, as amended. After a disclaimer has been
 1155  filed, the provider or facility is relieved of any duty to
 1156  register or report under this section which may arise out of the
 1157  provider’s or facility’s relationship with the person, unless
 1158  the office disallows the disclaimer.
 1159         (4) As used in this section, the term:
 1160         (a) “Controlling company” means any corporation, trust, or
 1161  association that directly or indirectly owns 25 percent or more
 1162  of the voting securities of one or more facilities that are
 1163  stock corporations, or 25 percent or more of the ownership
 1164  interest of one or more facilities that are not stock
 1165  corporations.
 1166         (b) “Natural person” means an individual.
 1167         (c) “Person” includes a natural person, corporation,
 1168  association, trust, general partnership, limited partnership,
 1169  joint venture, firm, proprietorship, or any other entity that
 1170  may hold a license or certificate as a facility.
 1171         (5) In addition to the facility or the controlling company,
 1172  the office has standing to petition a circuit court as described
 1173  in s. 628.4615(9).
 1174         Section 10. Section 651.0245, Florida Statutes, is created
 1175  to read:
 1176         651.0245 Application for the simultaneous acquisition of a
 1177  facility and issuance of a certificate of authority.—
 1178         (1) Except with the prior written approval of the office, a
 1179  person may not, individually or in conjunction with any
 1180  affiliated person of such person, directly or indirectly acquire
 1181  a facility operating under a subsisting certificate of authority
 1182  and engage in the business of providing continuing care.
 1183         (2) An applicant seeking simultaneous acquisition of a
 1184  facility and issuance of a certificate of authority must:
 1185         (a) Comply with the notice requirements of s.
 1186  628.4615(2)(a); and
 1187         (b) File an application in the form required by the office
 1188  and cooperate with the office’s review of the application.
 1189         (3) The commission shall adopt by rule application
 1190  requirements equivalent to those described in ss. 628.4615(4)
 1191  and (5), 651.022(2)(a)-(g), and 651.023(1)(b). The office shall
 1192  review the application and issue an approval or disapproval of
 1193  the filing in accordance with ss. 628.4615(6)(a) and (c), (7)
 1194  (10), and (14); 651.022(9); and 651.023(1)(b).
 1195         (4) As used in this section, the term:
 1196         (a) “Controlling company” means any corporation, trust, or
 1197  association that directly or indirectly owns 25 percent or more
 1198  of the voting securities of one or more facilities that are
 1199  stock corporations, or 25 percent or more of the ownership
 1200  interest of one or more facilities that are not stock
 1201  corporations.
 1202         (b) “Natural person” means an individual.
 1203         (c) “Person” includes a natural person, corporation,
 1204  association, trust, general partnership, limited partnership,
 1205  joint venture, firm, proprietorship, or any other entity that
 1206  may hold a license or certificate as a facility.
 1207         (5)In addition to the facility or the controlling company,
 1208  the office has standing to petition a circuit court as described
 1209  in s. 628.4615(9).
 1210         (6) A person may rebut a presumption of control by filing a
 1211  disclaimer of control with the office on a form prescribed by
 1212  the commission. The disclaimer must fully disclose all material
 1213  relationships and bases for affiliation between the person and
 1214  the provider or facility, as well as the basis for disclaiming
 1215  the affiliation. In lieu of such form, a person or acquiring
 1216  party may file with the office a copy of a Schedule 13G filed
 1217  with the Securities and Exchange Commission pursuant to Rule
 1218  13d-1(b) or (c), 17 C.F.R. s. 240.13d-1, under the Securities
 1219  Exchange Act of 1934, as amended. After a disclaimer has been
 1220  filed, the provider or facility is relieved of any duty to
 1221  register or report under this section which may arise out of the
 1222  provider’s or facility’s relationship with the person, unless
 1223  the office disallows the disclaimer.
 1224         (7) The commission may adopt, amend, or repeal rules as
 1225  necessary to administer this section.
 1226         Section 11. Section 651.0246, Florida Statutes, is created
 1227  to read:
 1228         651.0246 Expansions.—
 1229         (1)(a)A provider must obtain written approval from the
 1230  office before commencing construction or marketing for an
 1231  expansion of a certificated facility equivalent to the addition
 1232  of at least 20 percent of existing units or 20 percent or more
 1233  in the number of continuing care at-home contracts. If the
 1234  provider has exceeded the current statewide median for days cash
 1235  on hand, debt service coverage ratio, and total campus occupancy
 1236  for two consecutive annual reporting periods, the provider is
 1237  automatically granted approval to expand the total number of
 1238  existing units by up to 35 percent upon submitting a letter to
 1239  the office indicating the total number of planned units in the
 1240  expansion, the proposed sources and uses of funds, and an
 1241  attestation that the provider understands and pledges to comply
 1242  with all minimum liquid reserve and escrow account requirements.
 1243  As used in this section, the term “existing units” means the sum
 1244  of the total number of independent living units and assisted
 1245  living units identified in the most recent annual report filed
 1246  with the office pursuant to s. 651.026. For purposes of this
 1247  section, the statewide median for days cash on hand, debt
 1248  service coverage ratio, and total campus occupancy is the median
 1249  calculated in the most recent annual report submitted by the
 1250  office to the Continuing Care Advisory Council pursuant to s.
 1251  651.121(8). This section does not apply to construction for
 1252  which a certificate of need from the Agency for Health Care
 1253  Administration is required.
 1254         (b) The application for such approval must be on forms
 1255  adopted by the commission and provided by the office. The
 1256  application must include the feasibility study required by this
 1257  section and such other information as reasonably requested by
 1258  the office. If the expansion is only for continuing care at-home
 1259  contracts, an actuarial study prepared by an independent actuary
 1260  in accordance with standards adopted by the American Academy of
 1261  Actuaries which presents the financial impact of the expansion
 1262  may be substituted for the feasibility study.
 1263         (c) In determining whether an expansion should be approved,
 1264  the office shall consider:
 1265         1. Whether the application meets all requirements of law;
 1266         2. Whether the feasibility study was based on sufficient
 1267  data and reasonable assumptions; and
 1268         3.Whether the applicant will be able to provide continuing
 1269  care or continuing care at-home as proposed and meet all
 1270  financial obligations related to its operations, including the
 1271  financial requirements of this chapter.
 1272  
 1273  If the application is denied, the office must notify the
 1274  applicant in writing, citing the specific failures to meet the
 1275  provisions of this chapter. A denial entitles the applicant to a
 1276  hearing pursuant to chapter 120.
 1277         (2) A provider applying for expansion of a certificated
 1278  facility must submit all of the following:
 1279         (a) A feasibility study prepared by an independent
 1280  certified public accountant. The feasibility study must include
 1281  at least the following information:
 1282         1. A description of the facility and proposed expansion,
 1283  including the location, size, anticipated completion date, and
 1284  the proposed construction program.
 1285         2. An identification and evaluation of the primary and, if
 1286  applicable, secondary market areas of the facility and the
 1287  projected unit sales per month.
 1288         3. Projected revenues, including anticipated entrance fees;
 1289  monthly service fees; nursing care rates, if applicable; and all
 1290  other sources of revenue.
 1291         4. Projected expenses, including for staffing requirements
 1292  and salaries; the cost of property, plant, and equipment,
 1293  including depreciation expense; interest expense; marketing
 1294  expense; and other operating expenses.
 1295         5. A projected balance sheet of the applicant.
 1296         6. Expectations of the financial condition of the project,
 1297  including the projected cash flow and an estimate of the funds
 1298  anticipated to be necessary to cover startup losses.
 1299         7. The inflation factor, if any, assumed in the study for
 1300  the proposed expansion and how and where it is applied.
 1301         8. Project costs, the total amount of debt financing
 1302  required, marketing projections, resident fees and charges, the
 1303  competition, resident contract provisions, and other factors
 1304  that affect the feasibility of the facility.
 1305         9.Appropriate population projections, including morbidity
 1306  and mortality assumptions.
 1307         10. The name of the person who prepared the feasibility
 1308  study and his or her experience in preparing similar studies or
 1309  otherwise consulting in the field of continuing care.
 1310         11. Financial forecasts or projections prepared in
 1311  accordance with standards adopted by the American Institute of
 1312  Certified Public Accountants or in accordance with standards for
 1313  feasibility studies for continuing care retirement communities
 1314  adopted by the Actuarial Standards Board.
 1315         12. An independent evaluation and examination opinion for
 1316  the first 5 years of operations, or a comparable opinion
 1317  acceptable to the office, by the consultant who prepared the
 1318  study, of the underlying assumptions used as a basis for the
 1319  forecasts or projections in the study and that the assumptions
 1320  are reasonable and proper and the project as proposed is
 1321  feasible.
 1322         13. Any other information that the provider deems relevant
 1323  and appropriate to provide to enable the office to make a more
 1324  informed determination.
 1325         (b) Such other reasonable data, financial statements, and
 1326  pertinent information as the commission or office may require
 1327  with respect to the applicant or the facility to determine the
 1328  financial status of the facility and the management capabilities
 1329  of its managers and owners.
 1330         (3) A minimum of 75 percent of the moneys paid for all or
 1331  any part of an initial entrance fee or reservation deposit
 1332  collected for continuing care and 50 percent of the moneys paid
 1333  for all or any part of an initial fee collected for continuing
 1334  care at-home must be placed in an escrow account or on deposit
 1335  with the department as prescribed in s. 651.033. Up to 25
 1336  percent of the moneys paid for all or any part of an initial
 1337  entrance fee or reservation deposit may be included or pledged
 1338  for the construction or purchase of the facility or as security
 1339  for long-term financing. As used in this section, the term
 1340  “initial entrance fee” means the total entrance fee charged by
 1341  the facility to the first occupant of a unit.
 1342  
 1343  Entrance fees and reservation deposits collected for expansions
 1344  must be held pursuant to the escrow requirements of s.
 1345  651.023(5) and (6).
 1346         (4) The provider is entitled to secure release of the
 1347  moneys held in escrow within 7 days after receipt by the office
 1348  of an affidavit from the provider, along with appropriate copies
 1349  to verify, and notification to the escrow agent by certified
 1350  mail that the following conditions have been satisfied:
 1351         (a) A certificate of occupancy has been issued.
 1352         (b) Payment in full has been received for at least 50
 1353  percent of the total units of a phase or of the total of the
 1354  combined phases constructed. If a provider offering continuing
 1355  care at-home is applying for a release of escrowed entrance
 1356  fees, the same minimum requirement must be met for the
 1357  continuing care and continuing care at-home contracts
 1358  independently of each other.
 1359         (c) Documents evidencing that commitments have been secured
 1360  or that a documented plan adopted by the applicant has been
 1361  approved by the office for long-term financing.
 1362         (d) Documents evidencing that the provider has sufficient
 1363  funds to meet the requirements of s. 651.035, which may include
 1364  funds deposited in the initial entrance fee account.
 1365         (e) Documents evidencing the intended application of the
 1366  proceeds upon release and documentation that the entrance fees,
 1367  when released, will be applied as represented to the office.
 1368  
 1369  Notwithstanding chapter 120, only the provider, the escrow
 1370  agent, and the office have a substantial interest in any office
 1371  decision regarding release of escrow funds in any proceedings
 1372  under chapter 120 or this chapter.
 1373         (5)(a) Within 30 days after receipt of an application for
 1374  expansion, the office shall examine the application and shall
 1375  notify the applicant in writing, specifically setting forth and
 1376  specifically requesting any additional information that the
 1377  office is authorized to require. Within 15 days after the office
 1378  receives all the requested additional information, the office
 1379  shall notify the applicant in writing that the requested
 1380  information has been received and that the application is deemed
 1381  to be complete as of the date of the notice. If the office
 1382  chooses not to notify the applicant within the 15-day period,
 1383  then the application is deemed complete for purposes of review
 1384  on the date the applicant files the additional requested
 1385  information. If the application submitted is determined by the
 1386  office to be substantially incomplete so as to require
 1387  substantial additional information, including biographical
 1388  information, the office may return the application to the
 1389  applicant with a written notice that the application as received
 1390  is substantially incomplete and therefore unacceptable for
 1391  filing without further action required by the office. Any filing
 1392  fee received must be refunded to the applicant.
 1393         (b) An application is deemed complete upon the office
 1394  receiving all requested information and the applicant correcting
 1395  any error or omission of which the applicant was timely notified
 1396  or when the time for such notification has expired. The office
 1397  shall notify the applicant in writing of the date on which the
 1398  application was deemed complete.
 1399         (6) Within 45 days after the date on which an application
 1400  is deemed complete as set forth in paragraph (5)(b), the office
 1401  shall complete its review and, based upon its review, approve an
 1402  expansion by the applicant and issue a determination that the
 1403  application meets all requirements of law, that the feasibility
 1404  study was based on sufficient data and reasonable assumptions,
 1405  and that the applicant will be able to provide continuing care
 1406  or continuing care at-home as proposed and meet all financial
 1407  and contractual obligations related to its operations, including
 1408  the financial requirements of this chapter. The period for
 1409  review by the office may not be tolled if the office requests
 1410  additional information and the applicant provides information
 1411  acceptable to the office within 5 business days. If the
 1412  application is denied, the office must notify the applicant in
 1413  writing, citing the specific failures to meet the provisions of
 1414  this chapter. The denial entitles the applicant to a hearing
 1415  pursuant to chapter 120.
 1416         Section 12. Paragraph (c) of subsection (2) and subsection
 1417  (3) of section 651.026, Florida Statutes, are amended,
 1418  subsection (10) is added to that section, and paragraph (a) of
 1419  subsection (2) of that section is republished, to read:
 1420         651.026 Annual reports.—
 1421         (2) The annual report shall be in such form as the
 1422  commission prescribes and shall contain at least the following:
 1423         (a) Any change in status with respect to the information
 1424  required to be filed under s. 651.022(2).
 1425         (c) The following financial information:
 1426         1. A detailed listing of the assets maintained in the
 1427  liquid reserve as required under s. 651.035 and in accordance
 1428  with part II of chapter 625;
 1429         2. A schedule giving additional information relating to
 1430  property, plant, and equipment having an original cost of at
 1431  least $25,000, so as to show in reasonable detail with respect
 1432  to each separate facility original costs, accumulated
 1433  depreciation, net book value, appraised value or insurable value
 1434  and date thereof, insurance coverage, encumbrances, and net
 1435  equity of appraised or insured value over encumbrances. Any
 1436  property not used in continuing care must be shown separately
 1437  from property used in continuing care;
 1438         3. The level of participation in Medicare or Medicaid
 1439  programs, or both;
 1440         4. A statement of all fees required of residents,
 1441  including, but not limited to, a statement of the entrance fee
 1442  charged, the monthly service charges, the proposed application
 1443  of the proceeds of the entrance fee by the provider, and the
 1444  plan by which the amount of the entrance fee is determined if
 1445  the entrance fee is not the same in all cases; and
 1446         5. Any change or increase in fees if the provider changes
 1447  the scope of, or the rates for, care or services, regardless of
 1448  whether the change involves the basic rate or only those
 1449  services available at additional costs to the resident.
 1450         6. If the provider has more than one certificated facility,
 1451  or has operations that are not licensed under this chapter, it
 1452  shall submit a balance sheet, statement of income and expenses,
 1453  statement of equity or fund balances, and statement of cash
 1454  flows for each facility licensed under this chapter as
 1455  supplemental information to the audited financial report
 1456  statements required under paragraph (b).
 1457         7. The management’s calculation of the provider’s debt
 1458  service coverage ratio and days cash on hand for the current
 1459  reporting period, and an opinion from an independent certified
 1460  public accountant of the management’s calculations.
 1461         (3) The commission shall adopt by rule additional
 1462  meaningful measures of assessing the financial viability of a
 1463  provider. The rule may include the following factors:
 1464         (a) Debt service coverage ratios.
 1465         (b) Current ratios.
 1466         (c) Adjusted current ratios.
 1467         (d) Cash flows.
 1468         (e) Occupancy rates.
 1469         (f) Other measures, ratios, or trends.
 1470         (g) Other factors as may be appropriate.
 1471         (10) Within 90 days after the conclusion of each annual
 1472  reporting period, the office shall publish an industry
 1473  benchmarking report that contains all of the following:
 1474         (a) The median days cash on hand for all providers.
 1475         (b) The median debt service coverage ratio for all
 1476  providers.
 1477         (c) The median occupancy rate for all providers by setting,
 1478  including independent living, assisted living, skilled nursing,
 1479  and the entire campus.
 1480         Section 13. Section 651.0261, Florida Statutes, is amended
 1481  to read:
 1482         651.0261 Quarterly and monthly statements.—
 1483         (1) Within 45 days after the end of each fiscal quarter,
 1484  each provider shall file a quarterly unaudited financial
 1485  statement of the provider or of the facility in the form
 1486  prescribed by rule of the commission and a detailed listing of
 1487  the assets maintained in the liquid reserve as required under s.
 1488  651.035. This requirement may be waived by the office upon
 1489  written request from a provider that is accredited or that has
 1490  obtained an investment grade credit rating from a United States
 1491  credit rating agency as authorized under s. 651.028. The last
 1492  quarterly statement for a fiscal year is not required if a
 1493  provider does not have pending a regulatory action level event
 1494  or corrective action plan.
 1495         (2) If the office finds, pursuant to rules of the
 1496  commission, that such information is needed to properly monitor
 1497  the financial condition of a provider or facility or is
 1498  otherwise needed to protect the public interest, the office may
 1499  require the provider to file:
 1500         (a) Within 25 days after the end of each month, a monthly
 1501  unaudited financial statement of the provider or of the facility
 1502  in the form prescribed by the commission by rule and a detailed
 1503  listing of the assets maintained in the liquid reserve as
 1504  required under s. 651.035, within 45 days after the end of each
 1505  fiscal quarter, a quarterly unaudited financial statement of the
 1506  provider or of the facility in the form prescribed by the
 1507  commission by rule. The commission may by rule require all or
 1508  part of the statements or filings required under this section to
 1509  be submitted by electronic means in a computer-readable form
 1510  compatible with the electronic data format specified by the
 1511  commission.
 1512         (b) Such other data, financial statements, and pertinent
 1513  information as the commission or office may reasonably require
 1514  with respect to the provider or the facility, or its directors,
 1515  trustees, members, branches, subsidiaries, or affiliates, to
 1516  determine the financial status of the provider or of the
 1517  facility and the management capabilities of its managers and
 1518  owners.
 1519         (3) A filing under subsection (2) may be required if any of
 1520  the following apply:
 1521         (a) The facility has been operational for less than 2
 1522  years.
 1523         (b) The provider is:
 1524         1. Subject to administrative supervision proceedings;
 1525         2. Subject to a corrective action plan resulting from a
 1526  regulatory action level event for up to 2 years after the
 1527  factors that caused the regulatory action level event have been
 1528  corrected; or
 1529         3. Subject to delinquency or receivership proceedings.
 1530         (c) The provider or facility displays a declining financial
 1531  position.
 1532         (d)A change of ownership of the provider or facility has
 1533  occurred within the previous 2 years.
 1534         (e)The facility is deemed to be impaired.
 1535         (4) The commission may by rule require all or part of the
 1536  statements or filings required under this section to be
 1537  submitted by electronic means in a computer-readable form
 1538  compatible with an electronic data format specified by the
 1539  commission.
 1540         Section 14. Section 651.028, Florida Statutes, is amended
 1541  to read:
 1542         651.028 Accredited or certain credit-rated facilities.—If a
 1543  provider or obligated group is accredited without stipulations
 1544  or conditions by a process found by the office to be acceptable
 1545  and substantially equivalent to the provisions of this chapter
 1546  or has obtained an investment grade credit rating from a
 1547  nationally recognized credit rating agency, as applicable, from
 1548  Moody’s Investors Service, Standard & Poor’s, or Fitch Ratings,
 1549  the office may, pursuant to rule of the commission, waive any
 1550  requirements of this chapter with respect to the provider if the
 1551  office finds that such waivers are not inconsistent with the
 1552  security protections intended by this chapter.
 1553         Section 15. Paragraphs (a), (c), and (d) of subsection (1)
 1554  and subsections (2) and (3) of section 651.033, Florida
 1555  Statutes, are amended, and subsection (6) is added to that
 1556  section, to read:
 1557         651.033 Escrow accounts.—
 1558         (1) When funds are required to be deposited in an escrow
 1559  account pursuant to s. 651.022, s. 651.023, s. 651.035, or s.
 1560  651.055:
 1561         (a) The escrow account must shall be established in a
 1562  Florida bank, Florida savings and loan association, or Florida
 1563  trust company, or a national bank that is chartered and
 1564  supervised by the Office of the Comptroller of the Currency
 1565  within the United States Department of the Treasury and that has
 1566  either a branch or a license to operate in this state which is
 1567  acceptable to the office, or such funds must be deposited on
 1568  deposit with the department; and the funds deposited therein
 1569  shall be kept and maintained in an account separate and apart
 1570  from the provider’s business accounts.
 1571         (c) Any agreement establishing an escrow account required
 1572  under the provisions of this chapter is shall be subject to
 1573  approval by the office. The agreement must shall be in writing
 1574  and shall contain, in addition to any other provisions required
 1575  by law, a provision whereby the escrow agent agrees to abide by
 1576  the duties imposed by paragraphs (b) and (e), (3)(a), (3)(b),
 1577  and (5)(a) and subsection (6) under this section.
 1578         (d) All funds deposited in an escrow account, if invested,
 1579  must shall be invested in cash, cash equivalents, mutual funds,
 1580  equities, or investment grade bonds as set forth in part II of
 1581  chapter 625; however, such investment may not diminish the funds
 1582  held in escrow below the amount required by this chapter. Funds
 1583  deposited in an escrow account are not subject to charges by the
 1584  escrow agent except escrow agent fees associated with
 1585  administering the accounts, or subject to any liens, judgments,
 1586  garnishments, creditor’s claims, or other encumbrances against
 1587  the provider or facility except as provided in s. 651.035(1).
 1588         (2) Notwithstanding s. 651.035(7), In addition, the escrow
 1589  agreement shall provide that the escrow agent or another person
 1590  designated to act in the escrow agent’s place and the provider,
 1591  except as otherwise provided in s. 651.035, shall notify the
 1592  office in writing at least 10 days before the withdrawal of any
 1593  portion of any funds required to be escrowed under the
 1594  provisions of s. 651.035. However, in the event of an emergency
 1595  and upon petition by the provider, the office may waive the 10
 1596  day notification period and allow a withdrawal of up to 10
 1597  percent of the required minimum liquid reserve. The office shall
 1598  have 3 working days to deny the petition for the emergency 10
 1599  percent withdrawal. If the office fails to deny the petition
 1600  within 3 working days, the petition is shall be deemed to have
 1601  been granted by the office. For purposes the purpose of this
 1602  section, “working day” means each day that is not a Saturday,
 1603  Sunday, or legal holiday as defined by Florida law. Also, for
 1604  purposes the purpose of this section, the day the petition is
 1605  received by the office is shall not be counted as one of the 3
 1606  days.
 1607         (3) In addition, When entrance fees are required to be
 1608  deposited in an escrow account pursuant to s. 651.022, s.
 1609  651.023, or s. 651.055:
 1610         (a) The provider shall deliver to the resident a written
 1611  receipt. The receipt must show the payor’s name and address, the
 1612  date, the price of the care contract, and the amount of money
 1613  paid. A copy of each receipt, together with the funds, must
 1614  shall be deposited with the escrow agent or as provided in
 1615  paragraph (c). The escrow agent must shall release such funds to
 1616  the provider 7 days after the date of receipt of the funds by
 1617  the escrow agent if the provider, operating under a certificate
 1618  of authority issued by the office, has met the requirements of
 1619  s. 651.023(6). However, if the resident rescinds the contract
 1620  within the 7-day period, the escrow agent must shall release the
 1621  escrowed fees to the resident.
 1622         (b) At the request of an individual resident of a facility,
 1623  the escrow agent shall issue a statement indicating the status
 1624  of the resident’s portion of the escrow account.
 1625         (c) At the request of an individual resident of a facility,
 1626  the provider may hold the check for the 7-day period and may
 1627  shall not deposit it during this time period. If the resident
 1628  rescinds the contract within the 7-day period, the check must
 1629  shall be immediately returned to the resident. Upon the
 1630  expiration of the 7 days, the provider shall deposit the check.
 1631         (d) A provider may assess a nonrefundable fee, which is
 1632  separate from the entrance fee, for processing a prospective
 1633  resident’s application for continuing care or continuing care
 1634  at-home.
 1635         (6) Except as described in paragraph (3)(a), the escrow
 1636  agent may not release or otherwise allow the transfer of funds
 1637  without the written approval of the office, unless the
 1638  withdrawal is from funds in excess of the amounts required by
 1639  ss. 651.022, 651.023, 651.035, and 651.055.
 1640         Section 16. Section 651.034, Florida Statutes, is created
 1641  to read:
 1642         651.034 Financial and operating requirements for
 1643  providers.—
 1644         (1)(a) If a regulatory action level event occurs, the
 1645  office must:
 1646         1. Require the provider to prepare and submit a corrective
 1647  action plan or, if applicable, a revised corrective action plan;
 1648         2. Perform an examination pursuant to s. 651.105 or an
 1649  analysis, as the office considers necessary, of the assets,
 1650  liabilities, and operations of the provider, including a review
 1651  of the corrective action plan or the revised corrective action
 1652  plan; and
 1653         3. After the examination or analysis, issue a corrective
 1654  order specifying any corrective actions that the office
 1655  determines are required.
 1656         (b) In determining corrective actions, the office shall
 1657  consider any factor relevant to the provider based upon the
 1658  office’s examination or analysis of the assets, liabilities, and
 1659  operations of the provider. The provider must submit the
 1660  corrective action plan or the revised corrective action plan
 1661  within 30 days after the occurrence of the regulatory action
 1662  level event. The office shall review and approve or disapprove
 1663  the corrective action plan within 15 business days.
 1664         (c) The office may use members of the Continuing Care
 1665  Advisory Council, individually or as a group, or may retain
 1666  actuaries, investment experts, and other consultants to review a
 1667  provider’s corrective action plan or revised corrective action
 1668  plan, examine or analyze the assets, liabilities, and operations
 1669  of a provider, and formulate the corrective order with respect
 1670  to the provider. The fees, costs, and expenses relating to
 1671  consultants must be borne by the affected provider.
 1672         (2) If an impairment occurs, the office must take any
 1673  action necessary to place the provider under regulatory control,
 1674  including any remedy available under chapter 631. An impairment
 1675  is sufficient grounds for the department to be appointed as
 1676  receiver as provided in chapter 631. Notwithstanding s. 631.011,
 1677  impairment of a provider, for purposes of s. 631.051, is defined
 1678  according to the term “impaired” under s. 651.011. The office
 1679  may forego taking action for up to 180 days after the impairment
 1680  if the office finds there is a reasonable expectation that the
 1681  impairment may be eliminated within the 180-day period.
 1682         (3) There is no liability on the part of, and a cause of
 1683  action may not arise against, the commission, department, or
 1684  office, or their employees or agents, for any action they take
 1685  in the performance of their powers and duties under this
 1686  section.
 1687         (4) The office shall transmit any notice that may result in
 1688  regulatory action by registered mail, certified mail, or any
 1689  other method of transmission which includes documentation of
 1690  receipt by the provider. Notice is effective when the provider
 1691  receives it.
 1692         (5) This section is supplemental to the other laws of this
 1693  state and does not preclude or limit any power or duty of the
 1694  department or office under those laws or under the rules adopted
 1695  pursuant to those laws.
 1696         (6) The office may exempt a provider from subsection (1) or
 1697  subsection (2) until stabilized occupancy is reached or until
 1698  the time projected to achieve stabilized occupancy as reported
 1699  in the last feasibility study required by the office as part of
 1700  an application filing under s. 651.023, s. 651.024, s. 651.0245,
 1701  or s. 651.0246 has elapsed, but for no longer than 5 years from
 1702  the date of issuance of the certificate of occupancy.
 1703         (7) The commission may adopt rules to administer this
 1704  section, including, but not limited to, rules regarding
 1705  corrective action plans, revised corrective action plans,
 1706  corrective orders, and procedures to be followed in the event of
 1707  a regulatory action level event or an impairment.
 1708         Section 17. Paragraphs (a), (b), and (c) of subsection (1)
 1709  of section 651.035, Florida Statutes, are amended, and
 1710  subsections (7) through (10) are added to that section, to read:
 1711         651.035 Minimum liquid reserve requirements.—
 1712         (1) A provider shall maintain in escrow a minimum liquid
 1713  reserve consisting of the following reserves, as applicable:
 1714         (a) Each provider shall maintain in escrow as a debt
 1715  service reserve the aggregate amount of all principal and
 1716  interest payments due during the fiscal year on any mortgage
 1717  loan or other long-term financing of the facility, including
 1718  property taxes as recorded in the audited financial report
 1719  statements required under s. 651.026. The amount must include
 1720  any leasehold payments and all costs related to such payments.
 1721  If principal payments are not due during the fiscal year, the
 1722  provider must shall maintain in escrow as a minimum liquid
 1723  reserve an amount equal to interest payments due during the next
 1724  12 months on any mortgage loan or other long-term financing of
 1725  the facility, including property taxes. If a provider does not
 1726  have a mortgage loan or other financing on the facility, the
 1727  provider must deposit monthly in escrow as a minimum liquid
 1728  reserve an amount equal to one-twelfth of the annual property
 1729  tax liability as indicated in the most recent tax notice
 1730  provided pursuant to s. 197.322(3).
 1731         (b) A provider that has outstanding indebtedness that
 1732  requires a debt service reserve to be held in escrow pursuant to
 1733  a trust indenture or mortgage lien on the facility and for which
 1734  the debt service reserve may only be used to pay principal and
 1735  interest payments on the debt that the debtor is obligated to
 1736  pay, and which may include property taxes and insurance, may
 1737  include such debt service reserve in computing the minimum
 1738  liquid reserve needed to satisfy this subsection if the provider
 1739  furnishes to the office a copy of the agreement under which such
 1740  debt service is held, together with a statement of the amount
 1741  being held in escrow for the debt service reserve, certified by
 1742  the lender or trustee and the provider to be correct. The
 1743  trustee shall provide the office with any information concerning
 1744  the debt service reserve account upon request of the provider or
 1745  the office. Such separate debt service reserves, if any, are not
 1746  subject to the transfer provisions set forth in subsection (8).
 1747         (c) Each provider shall maintain in escrow an operating
 1748  reserve equal to 30 percent of the total operating expenses
 1749  projected in the feasibility study required by s. 651.023 for
 1750  the first 12 months of operation. Thereafter, each provider
 1751  shall maintain in escrow an operating reserve equal to 15
 1752  percent of the total operating expenses in the annual report
 1753  filed pursuant to s. 651.026. If a provider has been in
 1754  operation for more than 12 months, the total annual operating
 1755  expenses must shall be determined by averaging the total annual
 1756  operating expenses reported to the office by the number of
 1757  annual reports filed with the office within the preceding 3-year
 1758  period subject to adjustment if there is a change in the number
 1759  of facilities owned. For purposes of this subsection, total
 1760  annual operating expenses include all expenses of the facility
 1761  except: depreciation and amortization; interest and property
 1762  taxes included in paragraph (a); extraordinary expenses that are
 1763  adequately explained and documented in accordance with generally
 1764  accepted accounting principles; liability insurance premiums in
 1765  excess of those paid in calendar year 1999; and changes in the
 1766  obligation to provide future services to current residents. For
 1767  providers initially licensed during or after calendar year 1999,
 1768  liability insurance must shall be included in the total
 1769  operating expenses in an amount not to exceed the premium paid
 1770  during the first 12 months of facility operation. Beginning
 1771  January 1, 1993, The operating reserves required under this
 1772  subsection must shall be in an unencumbered account held in
 1773  escrow for the benefit of the residents. Such funds may not be
 1774  encumbered or subject to any liens or charges by the escrow
 1775  agent or judgments, garnishments, or creditors’ claims against
 1776  the provider or facility. However, if a facility had a lien,
 1777  mortgage, trust indenture, or similar debt instrument in place
 1778  before January 1, 1993, which encumbered all or any part of the
 1779  reserves required by this subsection and such funds were used to
 1780  meet the requirements of this subsection, then such arrangement
 1781  may be continued, unless a refinancing or acquisition has
 1782  occurred, and the provider is shall be in compliance with this
 1783  subsection.
 1784         (7)(a) A provider may withdraw funds held in escrow without
 1785  the approval of the office if the amount held in escrow exceeds
 1786  the requirements of this section and if the withdrawal will not
 1787  affect compliance with this section.
 1788         (b)1. For all other proposed withdrawals, in order to
 1789  receive the consent of the office, the provider must file
 1790  documentation showing why the withdrawal is necessary for the
 1791  continued operation of the facility and such additional
 1792  information as the office reasonably requires.
 1793         2. The office shall notify the provider when the filing is
 1794  deemed complete. If the provider has complied with all prior
 1795  requests for information, the filing is deemed complete after 30
 1796  days without communication from the office.
 1797         3. Within 30 days after the date a file is deemed complete,
 1798  the office shall provide the provider with written notice of its
 1799  approval or disapproval of the request. The office may
 1800  disapprove any request to withdraw such funds if it determines
 1801  that the withdrawal is not in the best interest of the
 1802  residents.
 1803         (8) The office may order the immediate transfer of up to
 1804  100 percent of the funds held in the minimum liquid reserve to
 1805  the custody of the department pursuant to part III of chapter
 1806  625 if the office finds that the provider is impaired or
 1807  insolvent. The office may order such a transfer regardless of
 1808  whether the office has suspended or revoked, or intends to
 1809  suspend or revoke, the certificate of authority of the provider.
 1810         (9)Each facility shall file with the office annually,
 1811  together with the annual report required by s. 651.026, a
 1812  calculation of its minimum liquid reserve, determined in
 1813  accordance with this section, on a form prescribed by the
 1814  commission. The minimum liquid reserve must be maintained at the
 1815  calculated level within 60 days after filing the annual report.
 1816         (10)If the balance of the minimum liquid reserve is below
 1817  the required amount at the end of any month, the provider must
 1818  fund the shortfall in the reserve within 10 business days after
 1819  the beginning of the following month. If the balance of the
 1820  minimum liquid reserve is not restored to the required amount
 1821  within such time, the provider will be deemed out of compliance
 1822  with this section.
 1823         Section 18. Section 651.043, Florida Statutes, is created
 1824  to read:
 1825         651.043 Approval of change in management.—
 1826         (1) As used in this section, the term “management” means:
 1827         (a) A manager or management company; or
 1828         (b) A person who exercises or who has the ability to
 1829  exercise effective control of the provider or organization, or
 1830  who influences or has the ability to influence the transaction
 1831  of the business of the provider.
 1832         (2) A contract for management entered into after July 1,
 1833  2018, must be in writing and include a provision that the
 1834  contract will be canceled upon issuance of an order by the
 1835  office pursuant to this section without the application of any
 1836  cancellation fee or penalty. If a provider contracts with a
 1837  management company, a separate written contract is not required
 1838  for the individual manager employed by the management company to
 1839  oversee a facility.
 1840         (3) A provider must notify the office, in writing or
 1841  electronically, of any change in management within 10 business
 1842  days. For each new management appointment, the provider must
 1843  submit the information required by s. 651.022(2) and a copy of
 1844  the written management contract, if applicable.
 1845         (4) For a provider that is deemed to be impaired or that
 1846  has a regulatory action level event pending, the office may
 1847  disapprove new management and order the provider to remove the
 1848  new management after reviewing the information required in
 1849  subsection (3).
 1850         (5)For a provider other than that specified in subsection
 1851  (4), the office may disapprove new management and order the
 1852  provider to remove the new management after receiving the
 1853  required information in subsection (3) if the office:
 1854         (a) Finds that the new management is incompetent or
 1855  untrustworthy;
 1856         (b) Finds that the new management is so lacking in relevant
 1857  managerial experience as to make the proposed operation
 1858  hazardous to the residents or potential residents;
 1859         (c) Finds that the new management is so lacking in relevant
 1860  experience, ability, and standing as to jeopardize the
 1861  reasonable promise of successful operation; or
 1862         (d) Has good reason to believe that the new management is
 1863  affiliated directly or indirectly through ownership, control, or
 1864  business relations with any person or persons whose business
 1865  operations are or have been marked by manipulation of assets or
 1866  accounts or by bad faith, to the detriment of residents,
 1867  stockholders, investors, creditors, or the public.
 1868  
 1869  The office shall complete its review as required under
 1870  subsections (4) and (5) and, if applicable, issue notice of
 1871  disapproval of the new management within 15 business days after
 1872  the filing is deemed complete. A filing is deemed complete upon
 1873  the office’s receipt of all requested information and the
 1874  provider’s correction of any error or omission for which the
 1875  provider was timely notified. If the office does not issue
 1876  notice of disapproval of the new management within 15 business
 1877  days after the filing is deemed complete, then the new
 1878  management is deemed approved.
 1879         (6) Management disapproved by the office must be removed
 1880  within 30 days after receipt by the provider of notice of such
 1881  disapproval.
 1882         (7) The office may revoke, suspend, or take other
 1883  administrative action against the certificate of authority of
 1884  the provider if the provider:
 1885         (a) Fails to timely remove management disapproved by the
 1886  office;
 1887         (b) Fails to timely notify the office of a change in
 1888  management;
 1889         (c) Appoints new management without a written contract; or
 1890         (d) Repeatedly appoints management that was previously
 1891  disapproved by the office or that is not approvable pursuant to
 1892  subsection (5).
 1893         (8) The provider shall remove any management immediately
 1894  upon discovery of any of the following conditions, if the
 1895  conditions were not disclosed in the notice to the office
 1896  required in subsection (3):
 1897         (a) That any person who exercises or has the ability to
 1898  exercise effective control of the provider, or who influences or
 1899  has the ability to influence the transaction of the business of
 1900  the provider, has been found guilty of, or has pled guilty or no
 1901  contest to, any felony or crime punishable by imprisonment of 1
 1902  year or more under the laws of the United States or any state
 1903  thereof or under the laws of any other country which involves
 1904  moral turpitude, without regard to whether a judgment or
 1905  conviction has been entered by the court having jurisdiction in
 1906  such case.
 1907         (b) That any person who exercises or has the ability to
 1908  exercise effective control of the organization, or who
 1909  influences or has the ability to influence the transaction of
 1910  the business of the provider, is now or was in the past
 1911  affiliated, directly or indirectly, through ownership interest
 1912  of 10 percent or more in, or control of, any business,
 1913  corporation, or other entity that has been found guilty of or
 1914  has pled guilty or no contest to any felony or crime punishable
 1915  by imprisonment for 1 year or more under the laws of the United
 1916  States, any state, or any other country, regardless of
 1917  adjudication.
 1918  
 1919  The failure to remove such management is grounds for revocation
 1920  or suspension of the provider’s certificate of authority.
 1921         Section 19. Section 651.051, Florida Statutes, is amended
 1922  to read:
 1923         651.051 Maintenance of assets and records in state.—All
 1924  records and assets of a provider must be maintained in this
 1925  state, or, if the provider’s corporate office is located in
 1926  another state, must be electronically stored in a manner that
 1927  will ensure that the records are readily accessible to the
 1928  office. No records or assets may be removed from this state by a
 1929  provider unless the office consents to such removal in writing
 1930  before such removal. Such consent must shall be based upon the
 1931  provider’s submitting satisfactory evidence that the removal
 1932  will facilitate and make more economical the operations of the
 1933  provider and will not diminish the service or protection
 1934  thereafter to be given the provider’s residents in this state.
 1935  Before Prior to such removal, the provider shall give notice to
 1936  the president or chair of the facility’s residents’ council. If
 1937  such removal is part of a cash management system which has been
 1938  approved by the office, disclosure of the system must shall meet
 1939  the notification requirements. The electronic storage of records
 1940  on a web-based, secured storage platform by contract with a
 1941  third party is acceptable if the records are readily accessible
 1942  to the office.
 1943         Section 20. Subsection (2) of section 651.057, Florida
 1944  Statutes, is amended to read:
 1945         651.057 Continuing care at-home contracts.—
 1946         (2) A provider that holds a certificate of authority and
 1947  wishes to offer continuing care at-home must also:
 1948         (a) Submit a business plan to the office with the following
 1949  information:
 1950         1. A description of the continuing care at-home services
 1951  that will be provided, the market to be served, and the fees to
 1952  be charged;
 1953         2. A copy of the proposed continuing care at-home contract;
 1954         3. An actuarial study prepared by an independent actuary in
 1955  accordance with the standards adopted by the American Academy of
 1956  Actuaries which presents the impact of providing continuing care
 1957  at-home on the overall operation of the facility; and
 1958         4. A market feasibility study that meets the requirements
 1959  of s. 651.022(4) s. 651.022(3) and documents that there is
 1960  sufficient interest in continuing care at-home contracts to
 1961  support such a program;
 1962         (b) Demonstrate to the office that the proposal to offer
 1963  continuing care at-home contracts to individuals who do not
 1964  immediately move into the facility will not place the provider
 1965  in an unsound financial condition;
 1966         (c) Comply with the requirements of s. 651.0246(1) s.
 1967  651.021(2), except that an actuarial study may be substituted
 1968  for the feasibility study; and
 1969         (d) Comply with the requirements of this chapter.
 1970         Section 21. Subsection (1) of section 651.071, Florida
 1971  Statutes, is amended to read:
 1972         651.071 Contracts as preferred claims on liquidation or
 1973  receivership.—
 1974         (1) In the event of receivership or liquidation proceedings
 1975  against a provider, all continuing care and continuing care at
 1976  home contracts executed by a provider are shall be deemed
 1977  preferred claims or policyholder loss preferred claims pursuant
 1978  to s. 631.271(1)(b) against all assets owned by the provider;
 1979  however, such claims are subordinate to any secured claim.
 1980         Section 22. Subsection (2) and present paragraph (g) of
 1981  subsection (3) of section 651.091, Florida Statutes, are
 1982  amended, present paragraphs (h) and (i) of subsection (3) of
 1983  that section are redesignated as paragraphs (g) and (h),
 1984  respectively, a new paragraph (i) and paragraphs (j), (k), and
 1985  (l) are added to that subsection, and paragraph (d) of
 1986  subsection (3) and subsection (4) of that section are
 1987  republished, to read:
 1988         651.091 Availability, distribution, and posting of reports
 1989  and records; requirement of full disclosure.—
 1990         (2) Every continuing care facility shall:
 1991         (a) Display the certificate of authority in a conspicuous
 1992  place inside the facility.
 1993         (b) Post in a prominent position in the facility which is
 1994  accessible to all residents and the general public a concise
 1995  summary of the last examination report issued by the office,
 1996  with references to the page numbers of the full report noting
 1997  any deficiencies found by the office, and the actions taken by
 1998  the provider to rectify such deficiencies, indicating in such
 1999  summary where the full report may be inspected in the facility.
 2000         (c) Provide notice to the president or chair of the
 2001  residents’ council within 10 business days after issuance of a
 2002  final examination report or the initiation of any legal or
 2003  administrative proceeding by the office or the department and
 2004  include a copy of such document.
 2005         (d)(c) Post in a prominent position in the facility which
 2006  is accessible to all residents and the general public a summary
 2007  of the latest annual statement, indicating in the summary where
 2008  the full annual statement may be inspected in the facility. A
 2009  listing of any proposed changes in policies, programs, and
 2010  services must also be posted.
 2011         (e)(d) Distribute a copy of the full annual statement and a
 2012  copy of the most recent third-party third party financial audit
 2013  filed with the annual report to the president or chair of the
 2014  residents’ council within 30 days after filing the annual report
 2015  with the office, and designate a staff person to provide
 2016  explanation thereof.
 2017         (f)(e)Deliver the information described in s. 651.085(4)
 2018  in writing to the president or chair of the residents’ council
 2019  and make supporting documentation available upon request Notify
 2020  the residents’ council of any plans filed with the office to
 2021  obtain new financing, additional financing, or refinancing for
 2022  the facility and of any applications to the office for any
 2023  expansion of the facility.
 2024         (g)(f) Deliver to the president or chair of the residents’
 2025  council a summary of entrance fees collected and refunds made
 2026  during the time period covered in the annual report and the
 2027  refund balances due at the end of the report period.
 2028         (h)(g) Deliver to the president or chair of the residents’
 2029  council a copy of each quarterly statement within 30 days after
 2030  the quarterly statement is filed with the office if the facility
 2031  is required to file quarterly.
 2032         (i)(h) Upon request, deliver to the president or chair of
 2033  the residents’ council a copy of any newly approved continuing
 2034  care or continuing care at-home contract within 30 days after
 2035  approval by the office.
 2036         (j) Provide to the president or chair of the residents’
 2037  council a copy of any notice filed with the office relating to
 2038  any change in ownership within 10 business days after such
 2039  filing by the provider.
 2040         (k) Make the information available to prospective residents
 2041  pursuant to paragraph (3)(d) available to current residents and
 2042  provide notice of changes to that information to the president
 2043  or chair of the residents’ council within 3 business days.
 2044         (3) Before entering into a contract to furnish continuing
 2045  care or continuing care at-home, the provider undertaking to
 2046  furnish the care, or the agent of the provider, shall make full
 2047  disclosure, and provide copies of the disclosure documents to
 2048  the prospective resident or his or her legal representative, of
 2049  the following information:
 2050         (d) In keeping with the intent of this subsection relating
 2051  to disclosure, the provider shall make available for review
 2052  master plans approved by the provider’s governing board and any
 2053  plans for expansion or phased development, to the extent that
 2054  the availability of such plans does not put at risk real estate,
 2055  financing, acquisition, negotiations, or other implementation of
 2056  operational plans and thus jeopardize the success of
 2057  negotiations, operations, and development.
 2058         (g) The amount and location of any reserve funds required
 2059  by this chapter, and the name of the person or entity having a
 2060  claim to such funds in the event of a bankruptcy, foreclosure,
 2061  or rehabilitation proceeding.
 2062         (i) Notice of the issuance of a final examination report or
 2063  the initiation of any legal or administrative proceeding by the
 2064  office or the department, including where the report or filing
 2065  may be inspected in the facility, and that upon request, an
 2066  electronic copy or specific website address will be provided
 2067  where the document can be downloaded at no cost.
 2068         (j) Notice that the entrance fee is the property of the
 2069  provider after the expiration of the 7-day escrow requirement
 2070  under s. 651.055(2).
 2071         (k) If the provider operates multiple facilities, a
 2072  disclosure of any distribution of assets or income between
 2073  facilities that may occur and the manner in which such
 2074  distributions would be made, or a statement that such
 2075  distributions will not occur.
 2076         (l) Notice of any holding company system or obligated group
 2077  of which the provider is a member.
 2078         (4) A true and complete copy of the full disclosure
 2079  document to be used must be filed with the office before use. A
 2080  resident or prospective resident or his or her legal
 2081  representative may inspect the full reports referred to in
 2082  paragraph (2)(b); the charter or other agreement or instrument
 2083  required to be filed with the office pursuant to s. 651.022(2),
 2084  together with all amendments thereto; and the bylaws of the
 2085  corporation or association, if any. Upon request, copies of the
 2086  reports and information shall be provided to the individual
 2087  requesting them if the individual agrees to pay a reasonable
 2088  charge to cover copying costs.
 2089         Section 23. Subsections (1) and (5) of section 651.105,
 2090  Florida Statutes, are amended, and subsections (7) and (8) are
 2091  added to that section, to read:
 2092         651.105 Examination and inspections.—
 2093         (1) The office may at any time, and shall at least once
 2094  every 3 years, examine the business of any applicant for a
 2095  certificate of authority and any provider engaged in the
 2096  execution of care contracts or engaged in the performance of
 2097  obligations under such contracts, in the same manner as is
 2098  provided for the examination of insurance companies pursuant to
 2099  ss. 624.316 and 624.318 s. 624.316. For a provider as described
 2100  defined in s. 651.028, such examinations must shall take place
 2101  at least once every 5 years. Such examinations must shall be
 2102  made by a representative or examiner designated by the office
 2103  whose compensation will be fixed by the office pursuant to s.
 2104  624.320. Routine examinations may be made by having the
 2105  necessary documents submitted to the office; and, for this
 2106  purpose, financial documents and records conforming to commonly
 2107  accepted accounting principles and practices, as required under
 2108  s. 651.026, are deemed adequate. The final written report of
 2109  each examination must be filed with the office and, when so
 2110  filed, constitutes a public record. Any provider being examined
 2111  shall, upon request, give reasonable and timely access to all of
 2112  its records. The representative or examiner designated by the
 2113  office may at any time examine the records and affairs and
 2114  inspect the physical property of any provider, whether in
 2115  connection with a formal examination or not.
 2116         (5) A provider must respond to written correspondence from
 2117  the office and provide data, financial statements, and pertinent
 2118  information as requested by the office or by the office’s
 2119  investigators, examiners, or inspectors. The office has standing
 2120  to petition a circuit court for mandatory injunctive relief to
 2121  compel access to and require the provider to produce the
 2122  documents, data, records, and other information requested by the
 2123  office or its investigators, examiners, or inspectors. The
 2124  office may petition the circuit court in the county in which the
 2125  facility is situated or the Circuit Court of Leon County to
 2126  enforce this section At the time of the routine examination, the
 2127  office shall determine if all disclosures required under this
 2128  chapter have been made to the president or chair of the
 2129  residents’ council and the executive officer of the governing
 2130  body of the provider.
 2131         (7) Unless a provider or facility is impaired or subject to
 2132  a regulatory action level event, any parent, subsidiary, or
 2133  affiliate is not subject to examination by the office as part of
 2134  a routine examination. However, if a provider or facility relies
 2135  on a contractual or financial relationship with a parent,
 2136  subsidiary, or affiliate in order to demonstrate the provider or
 2137  facility’s financial condition is in compliance with this
 2138  chapter, the office may examine any parent, subsidiary, or
 2139  affiliate that has a contractual or financial relationship with
 2140  the provider or facility to the extent necessary to ascertain
 2141  the financial condition of the provider.
 2142         (8) If a provider voluntarily contracts with an actuary for
 2143  an actuarial study or review at regular intervals, the office
 2144  may not use any recommendations made by the actuary as a measure
 2145  of performance when conducting an examination or inspection. The
 2146  office may not request, as part of the examination or
 2147  inspection, documents associated with an actuarial study or
 2148  review marked “restricted distribution” if the study or review
 2149  is not required by this chapter.
 2150         Section 24. Section 651.106, Florida Statutes, is amended
 2151  to read:
 2152         651.106 Grounds for discretionary refusal, suspension, or
 2153  revocation of certificate of authority.—The office may deny an
 2154  application or, suspend, or revoke the provisional certificate
 2155  of authority or the certificate of authority of any applicant or
 2156  provider if it finds that any one or more of the following
 2157  grounds applicable to the applicant or provider exist:
 2158         (1) Failure by the provider to continue to meet the
 2159  requirements for the authority originally granted.
 2160         (2) Failure by the provider to meet one or more of the
 2161  qualifications for the authority specified by this chapter.
 2162         (3) Material misstatement, misrepresentation, or fraud in
 2163  obtaining the authority, or in attempting to obtain the same.
 2164         (4) Demonstrated lack of fitness or trustworthiness.
 2165         (5) Fraudulent or dishonest practices of management in the
 2166  conduct of business.
 2167         (6) Misappropriation, conversion, or withholding of moneys.
 2168         (7) Failure to comply with, or violation of, any proper
 2169  order or rule of the office or commission or violation of any
 2170  provision of this chapter.
 2171         (8) The insolvent or impaired condition of the provider or
 2172  the provider’s being in such condition or using such methods and
 2173  practices in the conduct of its business as to render its
 2174  further transactions in this state hazardous or injurious to the
 2175  public.
 2176         (9) Refusal by the provider to be examined or to produce
 2177  its accounts, records, and files for examination, or refusal by
 2178  any of its officers to give information with respect to its
 2179  affairs or to perform any other legal obligation under this
 2180  chapter when required by the office.
 2181         (10) Failure by the provider to comply with the
 2182  requirements of s. 651.026 or s. 651.033.
 2183         (11) Failure by the provider to maintain escrow accounts or
 2184  funds as required by this chapter.
 2185         (12) Failure by the provider to meet the requirements of
 2186  this chapter for disclosure of information to residents
 2187  concerning the facility, its ownership, its management, its
 2188  development, or its financial condition or failure to honor its
 2189  continuing care or continuing care at-home contracts.
 2190         (13) Any cause for which issuance of the license could have
 2191  been refused had it then existed and been known to the office.
 2192         (14) Having been found guilty of, or having pleaded guilty
 2193  or nolo contendere to, a felony in this state or any other
 2194  state, without regard to whether a judgment or conviction has
 2195  been entered by the court having jurisdiction of such cases.
 2196         (15) In the conduct of business under the license, engaging
 2197  in unfair methods of competition or in unfair or deceptive acts
 2198  or practices prohibited under part IX of chapter 626.
 2199         (16) A pattern of bankrupt enterprises.
 2200         (17) The ownership, control, or management of the
 2201  organization includes any person:
 2202         (a) Who is not reputable and of responsible character;
 2203         (b) Who is so lacking in management expertise as to make
 2204  the operation of the provider hazardous to potential and
 2205  existing residents;
 2206         (c) Who is so lacking in management experience, ability,
 2207  and standing as to jeopardize the reasonable promise of
 2208  successful operation;
 2209         (d) Who is affiliated, directly or indirectly, through
 2210  ownership or control, with any person whose business operations
 2211  are or have been marked by business practices or conduct that is
 2212  detrimental to the public, stockholders, investors, or
 2213  creditors; or
 2214         (e) Whose business operations are or have been marked by
 2215  business practices or conduct that is detrimental to the public,
 2216  stockholders, investors, or creditors.
 2217         (18) The provider has not filed a notice of change in
 2218  management, fails to remove a disapproved manager, or persists
 2219  in appointing disapproved managers.
 2220  
 2221  Revocation of a certificate of authority under this section does
 2222  not relieve a provider from the provider’s obligation to
 2223  residents under the terms and conditions of any continuing care
 2224  or continuing care at-home contract between the provider and
 2225  residents or the provisions of this chapter. The provider shall
 2226  continue to file its annual statement and pay license fees to
 2227  the office as required under this chapter as if the certificate
 2228  of authority had continued in full force, but the provider shall
 2229  not issue any new contracts. The office may seek an action in
 2230  the Circuit Court of Leon County to enforce the office’s order
 2231  and the provisions of this section.
 2232         Section 25. Section 651.1065, Florida Statutes, is created
 2233  to read:
 2234         651.1065 Soliciting or accepting new continuing care
 2235  contracts by impaired or insolvent facilities or providers.—
 2236         (1) Regardless of whether delinquency proceedings as to a
 2237  continuing care retirement community have been or are to be
 2238  initiated, a proprietor, general partner, member, officer,
 2239  director, trustee, or manager of a continuing care retirement
 2240  community may not actively solicit, approve the solicitation or
 2241  acceptance of, or accept new continuing care contracts in this
 2242  state after the proprietor, general partner, member, officer,
 2243  director, trustee, or manager knew, or reasonably should have
 2244  known, that the continuing care retirement community was
 2245  impaired or insolvent, except with the written permission of the
 2246  office, unless the facility has declared bankruptcy, in which
 2247  case the bankruptcy court or trustee appointed by the court has
 2248  jurisdiction over such matters. The office must approve or
 2249  disapprove the continued marketing of new contracts within 15
 2250  days after receiving a request from a provider.
 2251         (2) A proprietor, general partner, member, officer,
 2252  director, trustee, or manager who violates this section commits
 2253  a felony of the third degree, punishable as provided in s.
 2254  775.082, s. 775.083, or s. 775.084.
 2255         Section 26. Section 651.111, Florida Statutes, is amended
 2256  to read:
 2257         651.111 Requests for inspections.—
 2258         (1) Any interested party may request an inspection of the
 2259  records and related financial affairs of a provider providing
 2260  care in accordance with the provisions of this chapter by
 2261  transmitting to the office notice of an alleged violation of
 2262  applicable requirements prescribed by statute or by rule,
 2263  specifying to a reasonable extent the details of the alleged
 2264  violation, which notice must shall be signed by the complainant.
 2265         (2) The substance of the complaint must shall be given to
 2266  the provider no earlier than the time of the inspection. Unless
 2267  the complainant specifically requests otherwise, neither the
 2268  substance of the complaint which is provided to the provider nor
 2269  any copy of the complaint, closure statement, or any record
 2270  which is published, released, or otherwise made available to the
 2271  provider may shall disclose the name of any person mentioned in
 2272  the complaint except the name of any duly authorized officer,
 2273  employee, or agent of the office conducting the investigation or
 2274  inspection pursuant to this chapter.
 2275         (3) Upon receipt of a complaint, the office shall make a
 2276  preliminary review; and, unless the office determines that the
 2277  complaint is without any reasonable basis or the complaint does
 2278  not request an inspection, the office shall make an inspection.
 2279  The office shall provide the complainant with a written
 2280  acknowledgment of the complaint within 15 days after receipt by
 2281  the office. Such acknowledgment must include the case number
 2282  assigned by the office to the complaint and the name and contact
 2283  information of any duly authorized officer, employee, or agent
 2284  of the office conducting the investigation or inspection
 2285  pursuant to this chapter. The complainant must shall be advised,
 2286  within 30 days after the receipt of the complaint by the office,
 2287  of the proposed course of action of the office, including an
 2288  estimated timeframe for the handling of the complaint. If the
 2289  office does not conclude its inspection or investigation within
 2290  the office’s estimated timeframe, the office must advise the
 2291  complainant in writing within 15 days after any revised course
 2292  of action, including a revised estimated timeframe for the
 2293  handling of the complaint. Within 15 days after the office
 2294  completes its inspection or concludes its investigation, the
 2295  office shall provide the complainant and the provider a written
 2296  closure statement specifying the office’s findings and the
 2297  results of any inspection or investigation.
 2298         (4) A No provider operating under a certificate of
 2299  authority under this chapter may not discriminate or retaliate
 2300  in any manner against a resident or an employee of a facility
 2301  providing care because such resident or employee or any other
 2302  person has initiated a complaint pursuant to this section.
 2303         Section 27. Section 651.114, Florida Statutes, is amended
 2304  to read:
 2305         651.114 Delinquency proceedings; remedial rights.—
 2306         (1) Upon determination by the office that a provider is not
 2307  in compliance with this chapter, the office may notify the chair
 2308  of the Continuing Care Advisory Council, who may assist the
 2309  office in formulating a corrective action plan.
 2310         (2) Within 30 days after a request by either the advisory
 2311  council or the office, a provider shall make a plan for
 2312  obtaining compliance or solvency available to the advisory
 2313  council and the office, within 30 days after being requested to
 2314  do so by the council, a plan for obtaining compliance or
 2315  solvency.
 2316         (3) Within 30 days after receipt of a plan for obtaining
 2317  compliance or solvency, the office, or notification, the
 2318  advisory council at the request of the office, shall:
 2319         (a) Consider and evaluate the plan submitted by the
 2320  provider.
 2321         (b) Discuss the problem and solutions with the provider.
 2322         (c) Conduct such other business as is necessary.
 2323         (d) Report its findings and recommendations to the office,
 2324  which may require additional modification of the plan.
 2325  
 2326  This subsection may not be interpreted so as to delay or prevent
 2327  the office from taking any regulatory measures it deems
 2328  necessary regarding the provider that submitted the plan.
 2329         (4) If the financial condition of a continuing care
 2330  facility or provider is impaired or is such that if not modified
 2331  or corrected, its continued operation would result in
 2332  insolvency, the office may direct the provider to formulate and
 2333  file with the office a corrective action plan. If the provider
 2334  fails to submit a plan within 30 days after the office’s
 2335  directive, or submits a plan that is insufficient to correct the
 2336  condition, the office may specify a plan and direct the provider
 2337  to implement the plan. Before specifying a plan, the office may
 2338  seek a recommended plan from the advisory council.
 2339         (5)(4) After receiving approval of a plan by the office,
 2340  the provider shall submit a progress report monthly to the
 2341  advisory council or the office, or both, in a manner prescribed
 2342  by the office. After 3 months, or at any earlier time deemed
 2343  necessary, the council shall evaluate the progress by the
 2344  provider and shall advise the office of its findings.
 2345         (6)(5)If Should the office finds find that sufficient
 2346  grounds exist for rehabilitation, liquidation, conservation,
 2347  reorganization, seizure, or summary proceedings of an insurer as
 2348  set forth in ss. 631.051, 631.061, and 631.071, the department
 2349  office may petition for an appropriate court order or may pursue
 2350  such other relief as is afforded in part I of chapter 631.
 2351  Before invoking its powers under part I of chapter 631, the
 2352  department office shall notify the chair of the advisory
 2353  council.
 2354         (7) Notwithstanding s. 631.011, impairment of a provider,
 2355  for purposes of s. 631.051, is defined according to the term
 2356  “impaired” in s. 651.011.
 2357         (8)(6) In the event an order of conservation,
 2358  rehabilitation, liquidation, or conservation, reorganization,
 2359  seizure, or summary proceeding has been entered against a
 2360  provider, the department and office are vested with all of the
 2361  powers and duties they have under the provisions of part I of
 2362  chapter 631 in regard to delinquency proceedings of insurance
 2363  companies. A provider shall give written notice of the
 2364  proceeding to its residents within 3 business days after the
 2365  initiation of a delinquency proceeding under chapter 631 and
 2366  shall include a notice of the delinquency proceeding in any
 2367  written materials provided to prospective residents.
 2368         (7) If the financial condition of the continuing care
 2369  facility or provider is such that, if not modified or corrected,
 2370  its continued operation would result in insolvency, the office
 2371  may direct the provider to formulate and file with the office a
 2372  corrective action plan. If the provider fails to submit a plan
 2373  within 30 days after the office’s directive or submits a plan
 2374  that is insufficient to correct the condition, the office may
 2375  specify a plan and direct the provider to implement the plan.
 2376         (9) A provider subject to an order to show cause entered
 2377  pursuant to chapter 631 must file its written response to the
 2378  order, together with any defenses it may have to the
 2379  department’s allegations, no later than 20 days after service of
 2380  the order to show cause, but no less than 15 days before the
 2381  date of the hearing set by the order to show cause.
 2382         (10) A hearing held pursuant to chapter 631 to determine
 2383  whether cause exists for the department to be appointed receiver
 2384  must be commenced within 60 days after an order directing a
 2385  provider to show cause.
 2386         (11)(a)(8)(a) The rights of the office described in this
 2387  section are subordinate to the rights of a trustee or lender
 2388  pursuant to the terms of a resolution, ordinance, loan
 2389  agreement, indenture of trust, mortgage, lease, security
 2390  agreement, or other instrument creating or securing bonds or
 2391  notes issued to finance a facility, and the office, subject to
 2392  the provisions of paragraph (c), may shall not exercise its
 2393  remedial rights provided under this section and ss. 651.018,
 2394  651.106, 651.108, and 651.116 with respect to a facility that is
 2395  not in default of any financial or contractual obligation other
 2396  than subject to a lien, mortgage, lease, or other encumbrance or
 2397  trust indenture securing bonds or notes issued in connection
 2398  with the financing of the facility, if the trustee or lender, by
 2399  inclusion or by amendment to the loan documents or by a separate
 2400  contract with the office, agrees that the rights of residents
 2401  under a continuing care or continuing care at-home contract will
 2402  be honored and will not be disturbed by a foreclosure or
 2403  conveyance in lieu thereof as long as the resident:
 2404         1. Is current in the payment of all monetary obligations
 2405  required by the contract;
 2406         2. Is in compliance and continues to comply with all
 2407  provisions of the contract; and
 2408         3. Has asserted no claim inconsistent with the rights of
 2409  the trustee or lender.
 2410         (b) This subsection does not require a trustee or lender
 2411  to:
 2412         1. Continue to engage in the marketing or resale of new
 2413  continuing care or continuing care at-home contracts;
 2414         2. Pay any rebate of entrance fees as may be required by a
 2415  resident’s continuing care or continuing care at-home contract
 2416  as of the date of acquisition of the facility by the trustee or
 2417  lender and until expiration of the period described in paragraph
 2418  (d);
 2419         3. Be responsible for any act or omission of any owner or
 2420  operator of the facility arising before the acquisition of the
 2421  facility by the trustee or lender; or
 2422         4. Provide services to the residents to the extent that the
 2423  trustee or lender would be required to advance or expend funds
 2424  that have not been designated or set aside for such purposes.
 2425         (c) Should the office determine, at any time during the
 2426  suspension of its remedial rights as provided in paragraph (a),
 2427  that the trustee or lender is not in compliance with paragraph
 2428  (a), or that a lender or trustee has assigned or has agreed to
 2429  assign all or a portion of a delinquent or defaulted loan to a
 2430  third party without the office’s written consent, the office
 2431  shall notify the trustee or lender in writing of its
 2432  determination, setting forth the reasons giving rise to the
 2433  determination and specifying those remedial rights afforded to
 2434  the office which the office shall then reinstate.
 2435         (d) Upon acquisition of a facility by a trustee or lender
 2436  and evidence satisfactory to the office that the requirements of
 2437  paragraph (a) have been met, the office shall issue a 90-day
 2438  temporary certificate of authority granting the trustee or
 2439  lender the authority to engage in the business of providing
 2440  continuing care or continuing care at-home and to issue
 2441  continuing care or continuing care at-home contracts subject to
 2442  the office’s right to immediately suspend or revoke the
 2443  temporary certificate of authority if the office determines that
 2444  any of the grounds described in s. 651.106 apply to the trustee
 2445  or lender or that the terms of the contract used as the basis
 2446  for the issuance of the temporary certificate of authority by
 2447  the office have not been or are not being met by the trustee or
 2448  lender since the date of acquisition.
 2449         Section 28. Section 651.1141, Florida Statutes, is created
 2450  to read:
 2451         651.1141 Immediate final orders.The office may issue an
 2452  immediate final order to cease and desist if the office finds
 2453  that installation of a general partner of a provider or
 2454  assumption of ownership or possession or control of 10 percent
 2455  or more of a provider’s assets in violation of s. 651.024 or s.
 2456  651.0245, the removal or commitment of 10 percent or more of the
 2457  required minimum liquid reserve funds in violation of s.
 2458  651.035, or the assumption of control over a facility’s
 2459  operations in violation of s. 651.043 has occurred.
 2460         Section 29. Paragraphs (d) and (e) of subsection (1) of
 2461  section 651.121, Florida Statutes, are amended to read:
 2462         651.121 Continuing Care Advisory Council.—
 2463         (1) The Continuing Care Advisory Council to the office is
 2464  created consisting of 10 members who are residents of this state
 2465  appointed by the Governor and geographically representative of
 2466  this state. Three members shall be administrators of facilities
 2467  that hold valid certificates of authority under this chapter and
 2468  shall have been actively engaged in the offering of continuing
 2469  care contracts in this state for 5 years before appointment. The
 2470  remaining members include:
 2471         (d) An attorney.
 2472         (d)(e)Four Three residents who hold continuing care or
 2473  continuing care at-home contracts with a facility certified in
 2474  this state.
 2475         Section 30. Subsections (1) and (4) of section 651.125,
 2476  Florida Statutes, are amended to read:
 2477         651.125 Criminal penalties; injunctive relief.—
 2478         (1) Any person who maintains, enters into, or, as manager
 2479  or officer or in any other administrative capacity, assists in
 2480  entering into, maintaining, or performing any continuing care or
 2481  continuing care at-home contract subject to this chapter without
 2482  doing so in pursuance of a valid provisional certificate of
 2483  authority or certificate of authority or renewal thereof, as
 2484  contemplated by or provided in this chapter, or who otherwise
 2485  violates any provision of this chapter or rule adopted in
 2486  pursuance of this chapter, commits a felony of the third degree,
 2487  punishable as provided in s. 775.082 or s. 775.083. Each
 2488  violation of this chapter constitutes a separate offense.
 2489         (4) Any action brought by the office against a provider
 2490  shall not abate by reason of a sale or other transfer of
 2491  ownership of the facility used to provide care, which provider
 2492  is a party to the action, except with the express written
 2493  consent of the director of the office.
 2494         Section 31. Effective July 1, 2018, the sum of $74,141 in
 2495  recurring funds from the Insurance Regulatory Trust Fund is
 2496  appropriated to the Office of Insurance Regulation, and one
 2497  full-time equivalent position with associated salary rate of
 2498  45,043 is authorized, for the purpose of administering this act.
 2499         Section 32. This act shall take effect July 1, 2018.