A bill signed into law Monday by Gov. Ron DeSantis (R) will help ensure the future viability and financial strength of the continuing care retirement / life plan community model in Florida, according to LeadingAge Florida.
CS/CS/HB 1573, which was supported by the association, its members and the Florida Life Care Residents Association, a statewide nonprofit group of CCRC residents, includes reforms designed to benefit both operators and residents, LeadingAge Florida said. The law’s provisions are effective July 1.
“Florida’s CCRCs serve more than 30,000 older adults, and this new law will help streamline the process of expansion, among other provisions, to help ensure that Florida seniors have a robust array of high-quality senior living options available to them,” LeadingAge Florida President and CEO Steve Bahmer said in a statement. The governor has shown “unwavering support” for senior living communities in the state, he said.
The legislation was sponsored by state Rep. Jenna Persons-Mulicka (R) and state Sen. Clay Yarborough (R).
As McKnight’s Senior Living previously reported, Florida HB 1573 / SB 622 is meant to streamline financial reporting requirements, expand the types of institutions that may issue a letter of credit, and address concerns of investors in tax-exempt bonds, according to supporters.
Bahmer previously stated that LeadingAge Florida supported the bill to ensure the state’s “healthy and vibrant” senior living market, and Bahmer said that he appreciated lawmakers’ support and recognition of CCRCs as “an important part of our state’s retirement portfolio.”
“This legislation will help ensure the future viability and financial strength of these communities and help make them available to an even greater number of seniors,” he said in a statement in late April. “Our focus is to ensure the ongoing viability and financial strength of the CCRC model in Florida by making it easier for providers to access capital while minimizing unnecessary bureaucracy that can get in the way of growth.”
In Florida, CCRC contracts are considered an insurance product and are reviewed and approved by the state Office of Insurance Regulation. In 2019, the state enacted board statutory changes to increase the OIR’s authority to regulate CCRCs.
The new law, according to supporters, makes it easier for a provider to access escrowed resident fees as part of an expansion, reduce the state’s time to approve or deny an expansion application, create notification requirements for escrow withdrawals, expand the types of financial institutions from which a provider can obtain a letter of credit, and change penalties for contract cancellations.
The bill also clarifies a resident’s right to participate in a resident council, requires providers to designate a resident representative at each community, implements meeting notice requirements and requires communities to notify the resident council after a change in management is made.
