ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

Second Regular Session

 

HB 2505: assisted living; refunds; escrow accounts

Sponsor: Representative Gress, LD 4

Committee on Commerce

Overview

Stipulates the contract holder must receive the entrance fee associated with a life care contract when specified conditions are met.

History

A life care contract is a contractual agreement between a provider and a person (contract holder) to provide for nursing services, medical services or health-related services, in addition to board and lodging for the person in a facility or services in the person's private residence with the right to future access to services, board and lodging in a facility, and is conditioned on the transfer of an entrance fee to the provider for such services. Life care contracts may only be offered by persons who are issued a permit as a provider by the Department of Insurance and Financial Institution (DIFI).

As a condition for issuing the permit, DIFI requires the provider to maintain on a current basis and in escrow an amount equal to the aggregate principal and interest payments due during the next twelve months on account of any first mortgage or other long-term financing of the facility. Additionally, the provider must establish an escrow account and place any entrance fee in escrow prior to occupancy in the facility or providing services. Statute outlines the conditions for releasing entrance fee monies to the provider.

An entrance fee that is held in escrow may be returned to the person who had made payment to the provider at any time by the escrow agent on receipt of notice from the provider that such person is entitled to a refund of the entrance fee (Title 20, Chapter 8, A.R.S.).

Provisions

1.   Requires the entrance fee☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note, minus deductions for expenses or other fees be returned to the contract holder when the resident's occupancy terminates with the facility and on the first occurance of either the resident's former living unit is inhabited by a new resident or within one year. (Sec. 1)

2.   Contains technical changes. (Sec 1)

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6.                     HB 2505

7.   Initials PB           Page 0 Commerce

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