Legislation revising the Florida's Continuing Care Retirement Community (CCRC) statutes are now pending in final committee stops in the Florida House of Representatives and Senate. House Bill 1033 and its Senate counterpart, Senate Bill 1070, were unanimously approved in their respective committee meetings. The legislation intends to update the laws governing the CCRCs. It will also address the perceived holes in the regulatory framework, which were highlighted by recent CCRC failures.
The House Bill must be approved by the Commerce Committee and then the full House. The Senate Bill's last stop before the Senate floor is the Appropriations Committee.
The bill provides for the following changes:
- Increase the authority of the Florida Office of Insurance Regulation (OIR) to monitor the CCRC's financial condition
- Change the CCRC's minimum liquid reserve requirements, the duties of escrow agents and restrict the processes for withdrawal from a CCRC's reserve funds
- Modify the financial reporting requirements and timeframes
- Provide OIR with greater authority to disapprove and remove unqualified management
- Revise the CCRC's document storage requirements
- Create new notice requirements to residents and residents' councils
- Revise the resident complaint processes
- Modify and streamline the existing Certificate of Authority and Provisional Certificate of Authority requirements
- Amend the grounds for suspension or revocation of a CCRC provider's Certificate of Authority
- Create the authority for OIR to issue an immediate final order to cease and desist or a suspension of a CCRC's Certificate of Authority
- Accord the certain regulatory standards that are applicable to insurance companies in the Insurance Code
Based on the discussions with proponents of the legislation there may be additional minor changes, but they are confident it will pass.
Florida's 2019 Legislative Session is scheduled to end on May 3.