Repeals Article 64, Continuing Care Retirement Communities, of GS Chapter 58. Instead, enacts new Article 64A, Continuing Care Retirement Communities, which provides as follows.
Part 1.
States the NCGA’s intent to promote the dignity and protect the health, safety, and welfare of older NC citizens by (1) encouraging the development of continuing care retirement communities and (2) requiring providers offering or providing continuing care in the State to be licensed and to be monitored and regulated by the North Carolina Department of Insurance (Department) under this new Article. Specifies that the Article applies to for-profit and non-profit providers.
Sets out and defines 42 terms as they are used in the Article in new GS 58-64A-5. Defines continuing care retirement community as a retirement community consisting of one or more structures where a provider renders continuing care to residents. A distinct phase of development approved by the Insurance Commissioner (the Commissioner) may be considered to be the continuing care retirement community when a project is being developed in successive distinct phases over a period of time. Defines provider as a person that offers or undertakes to provide continuing care under a continuing care or continuing care at home contract, or that represents himself, herself, or itself as providing continuing care. For the purposes of this Article, the term provider also includes a person who has been issued a permit to accept deposits, a start-up certificate, or a preliminary certificate. Defines continuing care as the rendering to an individual other than an individual related by blood, marriage, or adoption to the person rendering the care, of housing in an independent living unit, together with related services, including access, when needed, to progressive levels of health care, including either assisted living care, as defined in GS 131D-2.1, or nursing care, as defined in GS 131E-176, or both, regardless of whether the health care is provided at the continuing care retirement community where the individual resides or another location, or through a contractual relationship with a third party, pursuant to a contract effective for the life of the individual or for a period longer than one year. Defines continuing care at home as a program offered by a provider holding a permanent license under this Article that provides continuing care to an individual who is not yet receiving housing, which may include programs that offer an individual an opportunity to move to an independent living unit at a future date, if desired, according to the provider's established priority and admissions policies at the continuing care retirement community sponsoring the continuing care at home program.
Allows the Commissioner to adopt rules to implement the Article.
Prohibits a provider from paying a dividend or other distribution of equity or net assets in new GS 58-64A-15 after the Commissioner has determined that the provider is in a hazardous condition or has been determined to not be in satisfactory actuarial balance in an actuarial study filed with the Commissioner, or when the payment would have the effect of creating a hazardous condition in the provider or cause the provider to not be in satisfactory actuarial balance. 
Requires a person to have a certification, license, permit, or other approval from the Commissioner before offering or providing continuing care in this State in new GS 58-64A-20. Sets out seven acts that are considered to be engaging in the business of offering or providing continuing care, including accepting any deposit or any other payment related to continuing care; entering into any nonbinding or binding reservation agreement, continuing care contract, or continuing care at home contract; commencing construction or converting an existing building for a continuing care retirement community; and advertising or marketing to the general public any product similar to continuing care through the use of such terms as "life care," "life plan," "continuing care," or "guaranteed care for life," or similar terms, words, or phrases.
Prohibits, under new GS 58-64A-25, an applicant or a provider who intends to collect or does collect entrance fees from leasing land or real property from another person if the land or property is to be used as a material part of a continuing care retirement community operated by the applicant or provider without first obtaining approval from the Commissioner. Entrance fees are defined as the sum of any initial, amortized, or deferred transfer of consideration made or promised by, or on behalf of, an individual entering into a continuing care or continuing care at home contract. Sets out three factors that the Commissioner must consider when deciding whether to allow an applicant or provider to lease any of the real property of a continuing care retirement community.
Requires all filings required under the Article by applicants and providers to be submitted electronically in new GS 58-64A-30.
Allows the Commissioner, under new GS 58-64A-35 to waive or modify the Article’s provisions if there is a state of emergency or disaster; or there is an incident beyond a provider’s reasonable control that substantially affects the daily business operations of the provider or continuing care retirement community.
Lists types of contracts, leases, notices, approvals, studies, and other documents that are confidential and privileged and are not considered public record and are not subject to subpoena or discovery or admissible as evidence in private civil actions in new GS 58-64A-40. Allows the Commissioner to use the same documents and information in furtherance of any regulatory or legal action brought as a part of the Commissioner’s official duties. Sets out the steps the Commissioner must take before making those items public. Requires any information shared with the Commissioner that is not covered under these provisions but a person believes to be confidential or a trade secret to make it as such before submission to the Commissioner. Sets out provisions governing when the Commissioner may (1) share information, including confidential and privileged documents, with regulatory agencies or law enforcement or (2) receive information, including confidential and privileged items, from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and how those documents must be treated.
Prohibits, in new GS 58-64A-45, providers from advertising a continuing care retirement community if the ad includes a statement or representation which materially conflicts with the disclosures required under this Article or materially conflicts with any continuing care or continuing care without lodging contract offered by the provider.
Part 2.
Enacts new GS 58-64A-70, setting forth a general review schedule in response to the following applications: (1) permit to accept deposits, (2) a start-up certificate, (3) a preliminary certificate, (4) a permanent license, (5) an expansion, (6) a continuing care at home license, (7) an  expansion notification, and (8) a request for approval pursuant to GS 58-64A-230, GS 58-64A-235, or GS 58-64A-240.
Requires a permit under new GS 58-64A-50 in order to market a proposed continuing care retirement community. Sets out the process for submitting the application to the Commissioner, including $200 application fee. Requires the Commissioner to comply with the review schedule set forth in new GS 58-64A-70 when responding to an application to accept deposits. Lists four conditions that must be met in order for the Commissioner to approve the application. Allows the applicant, after having been issued a permit, to: (1) disseminate materials describing the intent to develop a continuing care retirement community; (2) enter into non-binding reservation agreements; and (3) collect deposits in an amount not to exceed $5,000, to be placed in escrow and released on in accordance with Part 4 of this Article. Providers that have been issued a permit are required to file periodic status reports.
Allows a person to apply for a start-up certificate under new GS 58-64A-55 by submitting the required information and paying a $2,000 application fee. Requires the Commissioner to comply with the review schedule set forth in new GS 58-64A-70. Lists five conditions that must be met in order to approve the application. Once the certificate has been issued, requires the Commissioner to: (1) require the provider to submit periodic sales, development, and unaudited financial statements on a Commissioner-issued form and (2) post the disclosure statement of the continuing care retirement community on the Department of Insurance’s (Department) website. Allows the provider, after having been issued the certificate, to: (1) enter into binding reservation agreements and continuing care contracts; (2) accept entrance fees and deposits greater than $5,000, to be placed in escrow and only released in accordance with Part 4 of this Article; (3) begin site preparation work; and (4) construct model independent living units for marketing.
Allows a person to apply for a preliminary certificate under new GS 58-64A-60 by submitting the required information. Requires the Commissioner to comply with the review schedule set forth in new GS 58-64A-70. Lists eight conditions that must be met in order to approve the application. Once the certificate has been issued, requires the Commissioner to: (1) require the provider to submit periodic sales, development, and unaudited financial statements on a Commissioner-issued form and (2) post the disclosure statement of the continuing care retirement community on the Department’s website. Allows the provider, after having been issued the certificate, to: (1) construct a continuing care retirement community and (2) convert existing structure(s) into a continuing care retirement community.
Allows a person to apply for a permanent license under GS 58-64A-65 by submitting the required information. Requires the Commissioner to comply with the review schedule set forth in new GS 58-64A-70. Lists the two conditions that must be met in order to approve the application. Allows for the issuance of a restricted license. Once the license has been issued, requires the Commissioner to: (1) require the provider to submit periodic occupancy and financial statements on a Commission-issued form and (2) post the disclosure statement of the continuing care retirement community on the Department’s website. Allows the applicant, after having been issued a permanent license, to: (1) open the continuing care retirement community and (2) provide continuing care. Allows applicants that receive a restricted permanent license to operate a continuing care retirement community under restrictions established by the Commissioner until the Commissioner issues a permanent license. Provides that when a restricted license is issued, the provider must inform all depositors and residents within 10 business days of all restrictions imposed by the license and conditions that the provider must satisfy to qualify for a permanent license. Permanent licenses or restricted permanent licenses are valid for as long as the Commissioner determines that the provider continues to meet the Article's requirements.
Sets the duration of a permit to accept deposits and a start-up certificate at 36 months in GS 58-64A-75. Allows a person with a permit to accept deposits or a start-up certificate to request an extension and sets out the information that must be included in the request. Allows the Commissioner to extend the permit or certificate for up to one year if there is satisfactory cause for the delay, and allows the Commissioner to require the provider to update information that was previously filed before approving an extension. Does not limit the number of extensions that may be granted. Provides that if there is no satisfactory cause for the delay, the Commissioner must instruct the escrow agent to refund all deposits held in escrow, plus interest. Requires the provider, within 10 business days of denial of an extension, to notify each depositor of the denial, of the expiration of the permit or certificate, and of any right to a deposit refund.
Sets out the steps to be followed in new GS 58-64A-80 when the Commissioner denies an application, notification, or any other request for approval under this Article. Sets out the process under which applicants can demand a review to determine the reasonableness of the denial.
Part 3.
Requires a provider, under new GS 58-64A-85, before marketing and collecting deposits for a proposed expansion of a continuing care retirement community that is 20% or more of existing independent living units, to: (1) notify and obtain written approval from the Commissioner and (2) give all residents written warning of the intent to expand the number of units. Lists four required pieces of information that must be included in the notice to the Commissioner. Requires the Commissioner to comply with the review schedule set forth in new GS 58-64A-70. Lists four conditions that must be met in order for the Commissioner to approve the expansion notification. Once the notification has been approved, requires the Commissioner to require the provider to submit periodic sales and development reports. Allows the provider, after approval of the expansion notification, to: (1) disseminate materials, including advertisements, describing the intent to expand the number of independent living units at the continuing care retirement community; (2) enter into nonbinding reservation agreements, binding reservation agreements, and continuing care contracts for the proposed independent living units; and (3) collect entrance fees and deposits for the proposed independent living units, with deposits placed in escrow and only released in accordance with Part 4 of this Article, unless otherwise exempted by the Commissioner.
Requires a provider, in new GS 58-64A-90, before commencing construction of an expansion of a continuing care retirement community that is 20% or more of existing independent living units, to receive the Commissioner’s approval of an expansion notification and apply to the Commissioner for approval to commence construction. Sets out requirements for the expansion application, including a $1,000 application fee. Requires the Commissioner to comply with the review schedule set forth in new GS 58-64A-70. Lists six conditions that must be met in order to approve the expansion application. Once the application has been approved, requires the Commissioner to require the provider to submit periodic sales and development reports on a form prescribed by the Commissioner to monitor the expansion. Allows the provider, after approval of the expansion application, to commence construction of the new independent living units at the continuing care retirement community as proposed, and upon completion of construction and the satisfaction of all other legal requirements, open the expansion and provide continuing care to the residents of the new units.
Requires all entrance fees and deposits collected for independent living units in an expansion that requires approval from the Commissioner to be placed in escrow unless otherwise exempted by the Commissioner.
Part 4.
Requires entrance fees and deposits required under the Article to be deposited by the provider in an escrow account and maintained in a segregated account without commingling with other funds in new GS 58-64A-100. Requires the Commissioner to approve in advance the escrow agent and all terms governing the account. Specifies 12 provisions that must be included in the written escrow agreement between the provider and escrow agent in new GS 58-64A-105. Requires, in new GS 58-64A-110, for changes to the agreement to be approved by the Commissioner before they are used by the provider. Sets out provisions governing the delivery of the entrance fees or deposits to the escrow agent in new GS 58-64A-115. Sets out the manners in which the entrance fees and deposits must be maintained by the escrow agent in new GS 58-64A-120.
Requires, under new GS 58-64A-125 written approval from the Commissioner for interest, income, and other gains from funds held in escrow to be released or distributed. Sets out conditions for such approval. Requires interest to be distributed to the provider or depositors in accordance with the applicable agreement when the release of earnings is approved.
Prohibits, in new GS 58-64A-130, using funds in an escrow account as collateral without prior written approval from the Commissioner.
Requires a refund of the escrowed funds by the escrow agent upon written notice from the provider of: the death of a depositor, nonacceptance by the provider, voluntary cancellation, the denial of an application, or upon written notice from the Commissioner. Requires refunds to be paid within 10 business days after the escrow agent receives the notice.  Allows for delays of refunds based on voluntary cancellation of a continuing care contract or a binding reservation agreement that occurs after construction of the continuing care retirement community or expansion of a continuing care retirement community has begun until another depositor has reserved a similar unit and paid the necessary fee or deposit. Directs that such delays cannot exceed one year unless extended by the Commissioner upon a showing of good cause by the provider.   
Sets out the process for requirements for petitioning the Commissioner for the release of the following under GS 58-64A-140: (1) the first 25% of each escrowed entrance fee and deposit and (2) the remaining 75% of escrowed entrance fees and deposits. Sets out requirements for the release of those funds.
Part 5.
Lists thirteen defined terms in new GS 58-64A-145 that apply to Part 5 of the Article, Disclosure Statement. Requires a provider to prepare a disclosure statement in new GS 58-64A-150 for each continuing care retirement community operated or to be operated in the State that contains the 42 specified pieces of information, including: (1) specified information about the officers, directors, trustees, managers, managing or general partners, the provider’s controlling person (if applicable) or any person having a 10% or greater equity or beneficial interest in the provider and any person who will be managing the community on a day-to-day basis; (2) names of any other person who will be responsible for the financial and contractual obligations of the provider not already disclosed and the extent of their responsibilities; (3) the number of existing living units, or the number of units to be constructed at the community; (4) a description of any property rights of residents in the community; (5) circumstances under which a resident will be allowed to remain a resident at the community in the event of possible resident financial difficulties; (6) terms and conditions under which a contract may be canceled by the provider, or by the resident, and the conditions under which fees can be refunded; (7) conditions under which a provider may require a resident to move into another unit for their safety or for the provider’s good; and (8) a five-year prospective financial statement. Requires a copy of the most common continuing care and continuing care at home contract used by the provider to be attached to each disclosure statement. Sets out requirements for the disclosure statement’s cover page and for the readability of the disclosure statement. Requires the Commissioner to review the statement for completeness. Requires the Commissioner to post the current disclosure statement for each continuing care retirement