HB 2199
Initials PB Page 1 Senate Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
House: COM DPA 10-0-0-0 | 3
rd
Read 58-0-1-0-1
Senate: FICO DPA/SE 6-0-1-0 | 3
rd
Read 21-7-2-0-0
HB 2199: restaurants; small alcohol ratio exemption
NOW: life care contract; disclosure
Sponsor: Representative Gress, LD 4
Senate Engrossed
The House Engrossed version of HB 2199 makes various changes to the spirituous
liquor statutes.
The Senate adopted a strike-everything amendment that does the following:
Overview
Outlines additional disclosure requirements for new and existing life care contracts that offer
a refund.
History
A life care contract is a contractual agreement between a provider and a person (contract
holder) to provide for nursing services, medical services or health-related services, in addition
to board and lodging for the person in a facility or services in the person's private residence
with the right to future access to services, board and lodging in a facility, and is conditioned
on the transfer of an entrance fee to the provider for such services. Life care contracts may
only be offered by persons who are issued a permit as a provider by the Department of
Insurance and Financial Institution (DIFI).
As a condition for issuing the permit, DIFI requires the provider to maintain on a current
basis and in escrow an amount equal to the aggregate principal and interest payments due
during the next twelve months on account of any first mortgage or other long-term financing
of the facility. Additionally, the provider must establish an escrow account and place any
entrance fee in escrow prior to occupancy in the facility or providing services. Statute outlines
the conditions for releasing entrance fee monies to the provider.
An entrance fee that is held in escrow may be returned to the person who had made payment
to the provider at any time by the escrow agent on receipt of notice from the provider that
such person is entitled to a refund of the entrance fee. (Title 20, Chapter 8, A.R.S.)
Provisions
1. Requires the provider, for life care contracts that offer a refund, to deliver to the purchaser
a separate disclosure document that indicates:
a) whether an entrance fee will be charged and when the person must pay the entrance
fee;
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2199
Initials PB Page 2 Senate Engrossed
b) whether any part of the entrance fee, or any other amount, paid at any time by the
contract holder or resident will be refunded to the person or the person's heirs;
c) if a refund will be paid to the person or the person's heirs, the amount or amounts to
be paid and the time for payment of the amounts; and
d) the specific conditions or limits, if any, on the payment of any refund, including a
requirement for reoccupancy of a vacated unit, or any other limit or condition. (Sec. 1)
2. Requires the separate disclosure document to be printed on at least 10-point boldface
type, be signed by the contract holder and the contract holder's partner or spouse, if any,
and witnessed by at least two independent persons. (Sec. 1)
3. Specifies the purchaser must separately initial each disclosure and verify that they have
read and understand the information presented in each disclosure. (Sec. 1)
4. Directs a provider to give an initialed copy of the separate disclosure statement to the
contract holder at the time of signing and keep a signed copy. (Sec. 1)
5. Allows DIFI to recommend or require that the separate disclosures be in a specified form
that contains the required information. (Sec. 1)
6. Applies the separate disclosure document requirements to new and existing life care
contracts. (Sec. 2)