If enacted, this bill would amend current statutes regarding life care contracts, specifically updating the requirements for refunding entrance fees when a resident vacates a facility. Under the new provisions, within 60 days of receiving a resident's notice to vacate, the facility must assign a sequential refund number to the vacated unit and provide refunds in the order of that number, provided the life care contract includes a refundable entrance fee. This requirement would not apply to contracts that specify a two-year waiting period for refunds or those executed before January 1, 2026. Additionally, the bill removes the previous requirement for a unit to be restored to its original condition before assigning a refund number and allows facilities to impose monthly fees until all personal property is removed.

The bill also makes several technical changes to the existing law, including clarifying language around the escrow of entrance fees and the conditions under which these fees can be released. It specifies that the escrow account must hold all entrance fees before the resident occupies their unit or begins receiving services, and it outlines the conditions for releasing these funds. The amendments aim to streamline the refund process and enhance clarity for both providers and residents, with the new regulations set to take effect on January 1, 2026.

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