This bill proposes updates to current statutes regarding life care contracts, specifically amending section 20-1804 of the Arizona Revised Statutes. Under the new law, facilities providing life care services will be required 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 requirement will apply to life care contracts entered into on or after December 31, 2025. Additionally, the bill outlines specific exemptions from this requirement, including contracts executed before January 1, 2026, or those that provide for a refundable portion of the entrance fee with a maximum waiting period of three years.

The bill also clarifies the conditions under which a facility must pay a refundable entrance fee to the resident or designated payees, ensuring that refunds are issued only when the refund is owed per the contract, the unit is next in line for a refund, and sufficient funds are available from new resident entrance fees. The amendments include technical changes and ensure that the updated provisions will take effect on January 1, 2026. Overall, these changes 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