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

The bill also stipulates conditions under which a facility must pay the refundable entrance fee to the resident or designated payees, ensuring that the refund is owed per the contract, that the unit is next in line for a refund, and that sufficient funds from new resident entrance fees are available. Furthermore, the bill makes technical changes and clarifies that it does not require the escrow of any nonrefundable application fees. Overall, these amendments aim to enhance the transparency and efficiency of the refund process for residents in life care facilities.

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