CONTINUING CARE AGING CONTRACTS
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SB 152 — CONTINUING CARE AGING CONTRACTS
Last action — Signed
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✓Introduced
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✓In Committee
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✓Passed Senate
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✓Passed House
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced January 31, 2021. Enacted.
Prognosis
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Enacted
Current position in the legislative process.
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2 sponsors
2 primary, 0 co-sponsors signed on.
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Bill Text
What changed in the latest version
487 added · 632 removedPlain-language change summary
The updated version of Bill SB 152 includes a requirement for providers of continuing care contracts to clearly outline their closure plans. Additionally, it mandates the Attorney General to accept and investigate complaints related to violations of the Continuing Care Act from any source. These changes are significant because they enhance transparency for prospective residents and ensure that any concerns can be addressed more effectively, ultimately aiming to protect the rights and well-being of older adults in these care communities.
SENATE BILL 152 55TH LEGISLATURE -STATEOFNEWMEXICO- FIRST SESSION, 2021 INTRODUCED BY Bill Tallman and Elizabeth "Liz” Thomson 6 8 10 AN ACT RELATING TO AGING;
167 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
e t 17 SECTION 1.
Section 24-17-4 NMSA 1978 (being Laws 1985, w l n d 18 Chapter 102, Section 4, as amended) is amended to read:
= = 19 a l "24-17-4.
DISCLOSURE.-- i a e r 20 A.
A provider shall furnish a current annual a t m m 21 disclosure statement that meets the requirements set forth in d r e 22 Subsection B of this section and the aging and long-term c e s k 23 services department's and attorney general's consumer's guide e a n b 24 to continuing care communities to each actual resident and to a u [ prospective resident at least seven days before the provider .218428.3SA enters into a continuing care contract with the prospective resident, or prior to the prospective resident's first payment, whichever occurs first.
SB 152 Page 1 B.
(3) if the provider is a partnership, e t 17 corporation or association, the names, addresses and duties of w l n d 18 its officers, directors, trustees, partners or managers;
= = 19 a l (4) the name and business address of each of i a e r 20 the provider's affiliates;
a t m m 21 (5) a statement as to whether the provider or d r e 22 any of its officers, directors, trustees, partners, managers or c e s k 23 affiliates, within ten years prior to the date of application:
e a n b 24 (a) was convicted of a felony, a crime u [ that if committed in New Mexico would be a felony or any crime .218428.3SA - 2 - having to do with the provision of continuing care;
or SB 152 Page 2 (d) had a state or federal license or permit suspended or revoked or had any state, federal or industry self-regulatory agency commence an action against the provider or any of its officers, directors, trustees, partners, managers or affiliates and the result of such action;
(6) the name and address of any person whose name is required to be provided in the disclosure statement who owns any interest in or receives any remuneration from, either directly or indirectly, any other person providing or expected e t 17 to provide to the community goods, leases or services with a w l n d 18 real or anticipated value of five hundred dollars ($500) or = = 19 a l more and the name and address of the person in which such i a e r 20 interest is held.
The disclosure shall describe such goods, a t m m 21 leases or services and the actual or probable cost to the d r e 22 community or provider and shall describe why such goods, leases c e s k 23 or services should not be purchased from an independent entity;
e a n b 24 (7) the name and address of any person owning u [ land or property leased to the community and a statement of .218428.3SA - 3 - what land or property is leased;
(8) a statement as to whether the provider is, or is associated with, a religious, charitable or other organization and the extent to which the associate organization is responsible for the financial and contractual SB 152 Page 3 obligations of the provider or community;
e t 17 (11) for communities that provide type A and w l n d 18 type B agreements:
= = 19 a l (a) a summary of [an] a comprehensive i a e r 20 actuarial analysis within the last five years;
and a t m m 21 (b) an annual future-service obligation d r e 22 calculation by an actuary who is a member of the American c e s k 23 academy of actuaries and who is experienced in analyzing e a n b 24 continuing care communities;
u [ (12) an audited financial statement and an .218428.3SA - 4 - audit report prepared in accordance with generally accepted accounting principles applied on a consistent basis and certified by a certified public accountant, including an income statement or statement of activities, a cash-flow SB 152 Page 4 statement or sources and application of funds statement and a balance sheet as of the end of the provider's last fiscal year.
e t 17 (b) if the provider is a corporation, a w l n d 18 copy of the articles of incorporation;
if the provider is a = = 19 a l partnership or other unincorporated association, a copy of the i a e r 20 partnership agreement, articles of association or other a t m m 21 membership agreement;
and if the provider is a trust, a copy of d r e 22 the trust agreement or instruments;
c e s k 23 (c) resumes of the provider and its e a n b 24 officers, directors, trustees, partners or managers;
u [ (d) a copy of lease agreements between .218428.3SA - 5 - the community and any person owning land or property leased to the community;
(e) information concerning the location and description of other properties, both existing and SB 152 Page 5 proposed, of the provider in which the provider owns any interest and on which communities are or are intended to be located and the identity of previously owned or operated communities;
and (g) other data, financial statements and pertinent information with respect to the provider or community, or its directors, trustees, members, managers, branches, subsidiaries or affiliates, that a resident requests and that is reasonably necessary in order for the resident to determine the financial status of the provider, its sole member e t 17 and the community and the management capabilities of the w l n d 18 managers and owners, including the most recent audited = = 19 a l financial statements of comparable communities owned, managed i a e r 20 or developed by the provider, its sole member or its principal.
a t m m 21 C.
Each year, within one hundred eighty days after d r e 22 the end of the community's fiscal year, the provider shall c e s k 23 furnish to actual residents the disclosure statement as e a n b 24 outlined in this section.
For purposes of this subsection, the u [ obligation to furnish the required information to residents .218428.3SA - 6 - shall be deemed satisfied if the information is given to the residents' association, if there is one, and a written message has been delivered to each resident, stating SB 152 Page 6 that personal copies of the information are available upon request." SECTION 2.
e t 17 (3) describe the circumstances under which the w l n d 18 resident will be permitted to remain in the community in the = = 19 a l event of financial difficulties of the resident;
i a e r 20 (4) list the total consideration paid, a t m m 21 including donations, entrance fees, subscription fees, periodic d r e 22 fees and other fees paid or payable;
provided, however, that a c e s k 23 provider cannot require a resident to transfer all the e a n b 24 resident's assets or the resident's real property to the u [ provider or community as a condition for providing continuing .218428.3SA - 7 - care and the provider shall reserve the SB 152 Page 7 right to charge periodic fees;
(8) specify that deposits or entrance fees paid by or for a resident shall be held in trust for the benefit of the resident in a federally insured New Mexico bank e t 17 until the resident has taken possession of the resident's unit w l n d 18 or the resident's contract cancellation period has ended, = = 19 a l whichever occurs later;
i a e r 20 (9) state the terms under which a continuing a t m m 21 care contract may be canceled by the resident or the community d r e 22 and the basis for establishing the amount of refund of the c e s k 23 entrance fee;
e a n b 24 (10) state the terms under which a continuing u [ care contract is canceled by the death of the resident and the .218428.3SA - 8 - basis for establishing the amount of refund, SB 152 Page 8 if any, of the entrance fee;
e t 17 (13) indicate funeral and burial services that w l n d 18 are not furnished by the provider;
= = 19 a l (14) state the rules and regulations of the i a e r 20 provider then in effect and state the circumstances under which a t m m 21 the provider claims to be entitled to have access to the d r e 22 resident's unit;
c e s k 23 (15) list the resident's and provider's e a n b 24 respective rights and obligations as to any real or personal u [ property of the resident transferred to or placed in the .218428.3SA - 9 - custody of the provider;
Show all 86 changed lines (46 more)
SB 152 Page 9 (16) describe the rights of the residents to form a residents' association and the participation, if any, of the association in the community's decision-making process;
e t 17 (22) include the procedures to be followed w l n d 18 when the provider temporarily or permanently changes the = = 19 a l resident's accommodations, either within the community or by i a e r 20 transfer to a health facility;
provided that the contract shall a t m m 21 state that such changes in accommodations shall only be made to d r e 22 protect the health or safety of the resident or the general and c e s k 23 economic welfare of all other residents of the community;
eSB a152 nPage b10 24 (23) if the community includes a nursing u [ facility, describe the admissions policies and what will occur .218428.3SA - 10 - if a nursing facility bed is not available at the time it is needed;
provided that if the resident has no family member, attorney, e t 17 guardian or other responsible person to act as the resident's w l n d 18 advocate, the provider shall request the local office of the = = 19 a l human services department to serve as advocate;
i a e r 20 (26) specify the types of insurance, if any, a t m m 21 the resident is required to maintain, including medicare, other d r e 22 health insurance and property insurance;
c e s k 23 (27) specify the circumstances, if any, underSB e152 aPage n11 bunder 24 which the resident will be required to apply for any public u [ assistance, including medical assistance, or any other public .218428.3SA - 11 - benefit programs;
(28) in bold type of not less than twelve-twelve-point point type on the signature page, state that a contract for continuing care may present a significant financial risk and that a person considering a continuing care contract should consult with an attorney and with a financial advisor concerning the advisability of pursuing continuing care;
(29) in bold type of not less than twelve-twelve-point point type on the front of the contract, state that nothing in the contract or the Continuing Care Act should be construed to constitute approval, recommendation or endorsement of any continuing care community by the state of New Mexico;
e t 17 (30) contain a provision describing the w l n d 18 community's plan for resident relocation upon closure or = = 19 a l circumstances that necessitate relocation;
i a e r 20 [(30)] (31) in immediate proximity to the a t m m 21 space reserved in the contract for the signature of the d r e 22 resident, in bold type of not less than twelve-point type, cstate ethe sSB k152 23Page state12 the following:
e a n b 24 "You, the buyer, may cancel this transaction at any time u [ prior to midnight of the seventh day after the date of this .218428.3SA - 12 - transaction.
and [(31)] (32) contain a completed form, in duplicate, captioned "Notice of Cancellation", which shall be attached to the contract and easily detachable, and which shall contain in twelve-point boldface type the following information and statements in the same language as that used in the contract.
If you cancel, any payments made by you under the contract or sale and any negotiable instrument executed by you will be returned within ten business days following receipt by the provider of e t 17 your cancellation notice, and any security interest or lien w l n d 18 arising out of the transaction will be canceled.
= = 19 a l To cancel this transaction, deliver a signed and dated i a e r 20 copy of this cancellation notice or any other written notice, a t m m 21 or send a telegram, to:
_____________________________________ dSB r152 ePage 2213 (Name of Provider) c e s k 23 at _________________________________________________________ e a n b 24 (Address of Provider's Place of Business) u [ not later than midnight of _____________________ .218428.3SA - 13 - (Date) I hereby cancel this transaction.
DISCLOSURE STATEMENTS FILED WITH THE [STATE AGENCY ON] AGING AND LONG-TERM SERVICES DEPARTMENT FOR PUBLIC INSPECTION.--No later than July 1, 2022 and each year thereafter, within one hundred eighty days after the end of a community's fiscal year, a provider shall [file] provide a copy of the disclosure statement and any amendments to that statement [with] to the [state agency on] aging and long-term services department for public inspection during regular e t 17 working hours." w l n d 18 SECTION 4.
Section 24-17-16 NMSA 1978 (being Laws 1991, = = 19 a l Chapter 263, Section 5) is amended to read:
i a e r 20 "24-17-16.
IDENTIFICATION AND PROCEDURES FOR CORRECTION a t m m 21 OF VIOLATIONS.-- d r e 22 A.
The aging and long-term services department cSB e152 sPage k14 23 shall review disclosure statements filed pursuant to the e a n b 24 Continuing Care Act for compliance with that act.
u [ [A.] B.
If the [state agency on] aging and long-long-term .218428.3SA - 14 - term services department determines that a person or an organization has engaged in or is about to engage in an act or practice constituting a violation of the Continuing Care Act or any rule adopted pursuant to that act, the [state agency on] aging and long-term services department shall issue a notice of violation in writing to that person or organization and send copies to the resident association of any facility affected by the notice.
[B.] C.
(2) the action that, in the judgment of the [state agency on] aging and long-term services department, the provider should take to conform to the law or the assurances that the [state agency on] aging and long-term services department requires to establish that no violation is about to e t 17 occur;
w l n d 18 (3) the compliance date by which the provider = = 19 a l shall correct any violation or submit assurances;
i a e r 20 (4) the requirements for filing a report of a t m m 21 compliance;
and d r e 22 (5) the applicable sanctions for failure to c e s k 23 correct the violation or failure to file the report of e a n b 24 compliance according to the terms of the notice of violation.
uSB [152 [C.]Page 15 D.
At any time after receipt of a notice of .218428.3SA - 15 - violation, the person or organization to which the notice is addressed or the [state agency on] aging and long-term services department may request a conference.
The [state agency on] aging and long-term services department shall schedule a conference within [seven] thirty days of a request.
[D.] E.
Subject to rules that the [state agency on] aging and long-term services department may promulgate, a representative of the resident association at any facility affected by the notice shall have a right to attend the conference.
[E.] F.
The [state agency on] aging and long-term services e t 17 department shall send a copy to the resident association of any w l n d 18 facility affected by the notice.
= = 19 a l [F.] G.
Upon receipt of the report of compliance, i a e r 20 the [state agency on] aging and long-term services department a t m m 21 shall take steps to determine that compliance has been d r e 22 achieved." c e s k 23 SECTION 5.
Section 24-17-17 NMSA 1978 (being Laws 1991, e a n b 24 Chapter 263, Section 6, as amended) is amended to read:
u [ "24-17-17.
RULES AND REGULATIONS AUTHORIZED.--The aging .218428.3SA - 16 - and long-term services department shall promulgate all rules SB 152 Page 16 and regulations necessary or appropriate to administer the provisions of the Continuing Care ActAct." [including but not limited to requirements regarding financial reserves, disclosure and actuarial studies]." SECTION 6.
Any time after the [state agency on] aging and long-term services department issues a notice of violation, the [state agency on aging] department may send the attorney e t 17 general a written report alleging a possible violation of the w l n d 18 Continuing Care Act or any rule adopted pursuant to that act.
= = 19 a l C.
Upon receipt of [that] a report from any source i a e r 20 alleging a violation of the Continuing Care Act or rules a t m m 21 promulgated pursuant to that act, the attorney general shall d r e 22 promptly [conductreview anthe investigationallegation. to determine whether grounds c e s k 23 exist for formally finding a violation.
IfUpon thefinding attorneythat ean aallegation nreceived bpursuant 24to this subsection is credible, the attorney general makesshall thatfile finding,an he]appropriate reviewaction against the allegation.alleged violator in a court of competent jurisdiction.
Upon u [ finding that an allegation received pursuant to this subsection .218428.3SA - 17 - is credible, the attorney general shall file an appropriate action against the alleged violator in a court of competent jurisdiction.
Upon finding violations of any provisions of the Continuing Care Act or any rule adopted pursuant to that act, the court may impose a civil penalty in the amount of SB 152 Page 17 five dollars ($5.00) per resident or up to five hundred dollars ($500), in the discretion of the court, for each day that the violation remains uncorrected after the compliance date stipulated in a notice of violation issued pursuant to the Continuing Care Act." -SB 18152 -Page 14 16 e t 17 w l n d 18 =7 =9 1925 a l i a e r 20 a t m m 21 d r e 22 c e s k 23 e a n b 24 u [ .218428.3SA
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Action History
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Signed
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passed House
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DO PASS committee report adopted
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Sent to House Health & Human Services Committee
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passed Senate
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DO PASS committee report adopted
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DO PASS committee report adopted
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Sent to Senate Health and Public Affairs Committee & Senate Judiciary Committee
Sponsors
- Bill Tallman · Primary
- Elizabeth "Liz" Thomson · Primary
Sponsorship breakdown
Export CSV (upgrade) →2 sponsors · 0 co-sponsors · 110 not signed on
Sponsors (2)
- Tallman, Bill
- Thomson, Elizabeth "Liz"
Co-sponsors (0)
None.
Not signed on (110)
110 members have not signed on to this bill.
Show all 110 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- Who sponsors SB 152?
- SB 152 is sponsored by Tallman, Bill and Thomson, Elizabeth "Liz".
- What is the current status of SB 152?
- This bill has been enacted into law. Introduced January 31, 2021. Enacted.
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