CS for CS for SB 438 - Continuing Care Contracts

• Adds comprehensive definitions including "actuarial opinion," "actuarial study," "actuary," "impaired," "regulatory action level event," "days cash on hand," and "debt service coverage ratio" to establish financial metrics and standards for continuing care providers.

• Creates a consolidated application process allowing applicants to obtain certificates of authority directly without first obtaining provisional certificates, provided they meet specific conditions including placing all entrance fees in escrow and demonstrating adequate financing and reserves.

• Establishes new financial monitoring and regulatory action requirements, including mandatory corrective action plans when providers experience regulatory action level events and authority for the office to transfer minimum liquid reserves to state custody if providers become impaired or insolvent.

• Requires providers to obtain office approval before expanding facilities by 20 percent or more of existing units, with expedited automatic approval available for high-performing providers exceeding statewide medians for three financial metrics for two consecutive years.

• Expands disclosure requirements for continuing care facilities to residents and prospective residents regarding examination reports, delinquency proceedings, ownership changes, and asset distributions, and creates criminal penalties for soliciting new contracts when a facility is known to be impaired or insolvent.