SB 886 Summary

• Establishes the "Continuing Care Community Disclosure Act" to regulate the offer and sale of life interests and long-term leases in retirement communities, nursing homes, adult foster care facilities, and similar facilities providing continuing care services.

• Requires continuing care communities to register with the Department of Licensing and Regulatory Affairs, submit disclosure statements, continuing care agreements, financial statements, and pro forma financial plans; registration fees are $250 for initial applications and $100 for renewals.

• Mandates disclosure statements include entrance fees, monthly service fees, refund terms, 7-day rescission rights, death provisions, health/financial qualification requirements, and a warning that the purchase is a major financial commitment requiring independent legal advice.

• Establishes escrow or alternative financial arrangement requirements to protect entrance fees when the department determines a continuing care community poses financial risk to members.

• Creates penalties including civil fines up to $50,000, cease and desist orders, suspension or revocation of registration, and criminal penalties up to 7 years imprisonment for knowing violations; repeals the former 1976 Living Care Disclosure Act.