This bill proposes updates to the current statutes regarding life care contracts, specifically amending section 20-1804 of the Arizona Revised Statutes. The key changes include the requirement for facilities providing life care services to assign a sequential refund number to vacated units within 60 days of receiving a resident's notice to vacate, and to issue refunds based on this sequential numbering system. This new requirement will apply to life care contracts entered into on or after December 31, 2025. Additionally, the bill outlines specific exemptions from this requirement for contracts executed before this date or those that include a refundable portion of the entrance fee with a maximum waiting period of three years.

Furthermore, the bill clarifies the conditions under which refunds must be paid, including that the refund is owed per the contract, the unit is next in line for a refund, and sufficient funds from new resident entrance fees are available. The bill also makes various technical changes and clarifications to existing language, ensuring that the escrow of nonrefundable application fees is not mandated. Overall, these amendments aim to enhance the transparency and efficiency of the refund process for residents vacating life care facilities.

Statutes affected:
Introduced Version: 20-1804
House Engrossed Version: 20-1804
Senate Engrossed Version: 20-1804
Chaptered Version: 20-1804