Florida Senate - 2018                        COMMITTEE AMENDMENT
       Bill No. CS for SB 622
                              LEGISLATIVE ACTION                        
                    Senate             .             House              

       The Committee on Rules (Lee) recommended the following:
    1         Senate Amendment (with title amendment)
    3         Between lines 3703 and 3704
    4  insert:
    5         Section 125. Section 651.091, Florida Statutes, is amended
    6  to read:
    7         651.091 Availability, distribution, and posting of reports
    8  and records; requirement of full disclosure.—
    9         (1) Each continuing care facility shall maintain as public
   10  information, available upon request, records of all cost and
   11  inspection reports pertaining to that facility which have been
   12  filed with or issued by any governmental agency. A copy of each
   13  report shall be retained for at least 5 years after the date the
   14  report is filed or issued. Each facility shall also maintain as
   15  public information, available upon request, all annual
   16  statements that have been filed with the office. For purposes of
   17  this section, a management company or operator is considered an
   18  agent of the provider.
   19         (2) Every continuing care facility shall:
   20         (a) Display the certificate of authority in a conspicuous
   21  place inside the facility.
   22         (b) Post in a prominent position in the facility which is
   23  accessible to all residents and the general public a concise
   24  summary of the last examination report issued by the office,
   25  with references to the page numbers of the full report noting
   26  any deficiencies found by the office, and the actions taken by
   27  the provider to rectify such deficiencies, indicating in such
   28  summary where the full report may be inspected in the facility.
   29         (c) Post in a prominent position in the facility which is
   30  accessible to all residents and the general public a summary of
   31  the latest annual statement, indicating in the summary where the
   32  full annual statement may be inspected in the facility. A
   33  listing of any proposed changes in policies, programs, and
   34  services must also be posted.
   35         (d) Distribute a copy of the full annual statement and a
   36  copy of the most recent third party financial audit filed with
   37  the annual report to the president or chair of the residents’
   38  council within 30 days after filing the annual report with the
   39  office, and designate a staff person to provide explanation
   40  thereof.
   41         (e) Notify the residents’ council of any plans filed with
   42  the office to obtain new financing, additional financing, or
   43  refinancing for the facility and of any applications to the
   44  office for any expansion of the facility.
   45         (f) Deliver to the president or chair of the residents’
   46  council a summary of entrance fees collected and refunds made
   47  during the time period covered in the annual report and the
   48  refund balances due at the end of the report period.
   49         (g) Deliver to the president or chair of the residents’
   50  council a copy of each quarterly statement within 30 days after
   51  the quarterly statement is filed with the office if the facility
   52  is required to file quarterly.
   53         (h) Upon request, deliver to the president or chair of the
   54  residents’ council a copy of any newly approved continuing care
   55  or continuing care at-home contract within 30 days after
   56  approval by the office.
   57         (i) A copy of the resident’s rights as described in s.
   58  651.083.
   59         (j) Notice of the issuance of an examination report by the
   60  office or the initiation of any legal or administrative
   61  proceeding by the office or the department, including where the
   62  public report or filing may be inspected in the facility, and
   63  that upon request, an electronic copy or specific website
   64  address of the office or department will be provided where the
   65  public document can be downloaded at no cost.
   66         (k) Notice of a resident’s right to rescind a continuing
   67  care contract pursuant to s. 651.055(2).
   68         (l) If the provider operates multiple facilities, a
   69  disclosure of any existing plans of distribution of assets or
   70  income between facilities that may occur and the manner in which
   71  such distributions would be made, or a statement that such
   72  distributions are not expected to occur.
   73         (m) Notice of any holding company system or obligated group
   74  of which the provider is a member.
   75         (3) Before entering into a contract to furnish continuing
   76  care or continuing care at-home, the provider undertaking to
   77  furnish the care, or the agent of the provider, shall make full
   78  disclosure, and provide copies of the disclosure documents to
   79  the prospective resident or his or her legal representative, of
   80  the following information:
   81         (a) The contract to furnish continuing care or continuing
   82  care at-home.
   83         (b) The summary listed in paragraph (2)(b).
   84         (c) All ownership interests and lease agreements, including
   85  information specified in s. 651.022(2)(b)8.
   86         (d) In keeping with the intent of this subsection relating
   87  to disclosure, the provider shall make available for review
   88  master plans approved by the provider’s governing board and any
   89  plans for expansion or phased development, to the extent that
   90  the availability of such plans does not put at risk real estate,
   91  financing, acquisition, negotiations, or other implementation of
   92  operational plans and thus jeopardize the success of
   93  negotiations, operations, and development.
   94         (e) Copies of the rules and regulations of the facility and
   95  an explanation of the responsibilities of the resident.
   96         (f) The policy of the facility with respect to admission to
   97  and discharge from the various levels of health care offered by
   98  the facility.
   99         (g) The amount and location of any reserve funds required
  100  by this chapter, and the name of the person or entity having a
  101  claim to such funds in the event of a bankruptcy, foreclosure,
  102  or rehabilitation proceeding.
  103         (h) A copy of s. 651.071.
  104         (i) A copy of the resident’s rights as described in s.
  105  651.083.
  106         (4) A true and complete copy of the full disclosure
  107  document to be used must be filed with the office before use. A
  108  resident or prospective resident or his or her legal
  109  representative may inspect the full reports referred to in
  110  paragraph (2)(b); the charter or other agreement or instrument
  111  required to be filed with the office pursuant to s. 651.022(2),
  112  together with all amendments thereto; and the bylaws of the
  113  corporation or association, if any. Upon request, copies of the
  114  reports and information shall be provided to the individual
  115  requesting them if the individual agrees to pay a reasonable
  116  charge to cover copying costs.
  117         Section 126. Section 651.105, Florida Statutes, is amended
  118  to read:
  119         651.105 Examination and inspections.—
  120         (1) The office may at any time, and shall at least once
  121  every 3 years, examine the business of any applicant for a
  122  certificate of authority and any provider engaged in the
  123  execution of care contracts or engaged in the performance of
  124  obligations under such contracts, in the same manner as is
  125  provided for the examination of insurance companies pursuant to
  126  s. 624.316. For a provider as defined in s. 651.028, such
  127  examinations shall take place at least once every 5 years. Such
  128  examinations shall be made by a representative or examiner
  129  designated by the office whose compensation will be fixed by the
  130  office pursuant to s. 624.320. Routine examinations may be made
  131  by having the necessary documents submitted to the office; and,
  132  for this purpose, financial documents and records conforming to
  133  commonly accepted accounting principles and practices, as
  134  required under s. 651.026, are deemed adequate. The final
  135  written report of each examination must be filed with the office
  136  and, when so filed, constitutes a public record. Any provider
  137  being examined shall, upon request, give reasonable and timely
  138  access to all of its records. The representative or examiner
  139  designated by the office may at any time examine the records and
  140  affairs and inspect the physical property of any provider,
  141  whether in connection with a formal examination or not.
  142         (2) Any duly authorized officer, employee, or agent of the
  143  office may, upon presentation of proper identification, have
  144  access to, and inspect, any records, with or without advance
  145  notice, to secure compliance with, or to prevent a violation of,
  146  any provision of this chapter.
  147         (3) Reports of the results of such financial examinations
  148  must be kept on file by the office. Any investigatory records,
  149  reports, or documents held by the office are confidential and
  150  exempt from the provisions of s. 119.07(1), until the
  151  investigation is completed or ceases to be active. For the
  152  purpose of this section, an investigation is active while it is
  153  being conducted by the office with a reasonable, good faith
  154  belief that it could lead to the filing of administrative,
  155  civil, or criminal proceedings. An investigation does not cease
  156  to be active if the office is proceeding with reasonable
  157  dispatch and has a good faith belief that action could be
  158  initiated by the office or other administrative or law
  159  enforcement agency.
  160         (4) The office shall notify the provider and the executive
  161  officer of the governing body of the provider in writing of all
  162  deficiencies in its compliance with the provisions of this
  163  chapter and the rules adopted pursuant to this chapter and shall
  164  set a reasonable length of time for compliance by the provider.
  165  In addition, the office shall require corrective action or
  166  request a corrective action plan from the provider which plan
  167  demonstrates a good faith attempt to remedy the deficiencies by
  168  a specified date. If the provider fails to comply within the
  169  established length of time, the office may initiate action
  170  against the provider in accordance with the provisions of this
  171  chapter.
  172         (5) A provider must respond to written correspondence from
  173  the office and provide data, documents, financial statements,
  174  records, and other information as requested by the office. The
  175  office has standing to petition a circuit court to compel access
  176  to and require the provider to produce such data, documents,
  177  financial statements, records, and other information requested
  178  by the office. The office may petition the circuit court in the
  179  county in which the facility is situated or the Circuit Court of
  180  Leon County to enforce this section.
  181         (6)(5) At the time of the routine examination, the office
  182  shall determine if all disclosures required under this chapter
  183  have been made to the president or chair of the residents’
  184  council and the executive officer of the governing body of the
  185  provider.
  186         (7)(6) A representative of the provider must give a copy of
  187  the final examination report and corrective action plan, if one
  188  is required by the office, to the executive officer of the
  189  governing body of the provider within 60 days after issuance of
  190  the report.
  191         Section 127. Section 651.024, Florida Statutes, is amended
  192  to read:
  193         651.024 Acquisition.—
  194         (1) A person who seeks to assume the role of general
  195  partner of a provider or otherwise assume ownership or
  196  possession of, or control over, 10 percent or more of a
  197  provider’s assets, based on the balance sheet from the most
  198  recent financial audit filed with the office, or who seeks to
  199  acquire 10 percent or more of the ownership interest of a is
  200  subject to the provisions of s. 628.4615 and is not required to
  201  make filings pursuant to s. 651.022 or s. 651.023.
  202         (2) A person may rebut a presumption of control by filing a
  203  disclaimer of control with the office on a form prescribed by
  204  the commission. The disclaimer must fully disclose all material
  205  relationships and bases for affiliation between the person and
  206  the provider or facility, as well as the basis for disclaiming
  207  the affiliation. In lieu of such form, a person or acquiring
  208  party may file with the office a copy of a Schedule 13G filed
  209  with the Securities and Exchange Commission pursuant to Rule
  210  13d-1(b) or (c), 17 C.F.R. s. 240.13d-1, under the Securities
  211  Exchange Act of 1934, as amended. After a disclaimer has been
  212  filed, the provider or facility is relieved of any duty to
  213  register or report under this section which may arise out of the
  214  provider’s or facility’s relationship with the person, unless
  215  the office disallows the disclaimer.
  216         (3) In addition to the facility or the controlling company,
  217  the office has standing to petition a circuit court as described
  218  in s. 628.4615(9) issued a certificate of authority to operate a
  219  continuing care facility or a provisional certificate of
  220  authority shall be subject to the provisions of s. 628.4615.
  222  ================= T I T L E  A M E N D M E N T ================
  223  And the title is amended as follows:
  224         Delete line 291
  225  and insert:
  226         testimony; amending s. 651.091, F.S.; revising
  227         requirements for continuing care facilities; revising
  228         disclosure requirements for a provider and his or her
  229         agent; amending s. 651.105, F.S.; requiring a provider
  230         to respond and provide certain information to the
  231         Office of Insurance Regulation; amending s. 651.024,
  232         F.S.; revising provisions related to the acquisition
  233         of a continuing care facility; amending s. 945.36,
  234         F.S.; authorizing law