An Act Prohibiting Assisted Living Services Agencies And Continuing Care Providers Offering Assisted Living Services From Requiring A Third-party Contract Guarantor.
Impact
By prohibiting third-party guarantor provisions in contracts related to assisted living and continuing care, SB00819 aims to simplify the contractual obligations for residents. This change could promote greater access to assisted living services for individuals who may not have family members or other third parties willing to provide guarantees. The bill aligns with previous regulations that have already made similar provisions concerning nursing home facilities, thereby creating a more consistent standard across different types of long-term care environments.
Summary
SB00819, titled 'An Act Prohibiting Assisted Living Services Agencies And Continuing Care Providers Offering Assisted Living Services From Requiring A Third-party Contract Guarantor,' seeks to eliminate the requirement for third-party guarantees of payment for assisted living services and continuing care contracts. If passed, this bill would make any contract provision requiring such guarantees void and unenforceable, thus ensuring that individuals seeking assisted living do not have to rely on third-party guarantees, which can be a significant barrier to service access.
Contention
Potential points of contention around SB00819 might emerge from service providers who argue that the ability to request third-party guarantees is a necessary safeguard for ensuring the financial sustainability of their services. Opponents of the bill may express concerns that without such guarantees, providers could face increased financial risk, which could ultimately lead to higher costs for all residents or the reduction of services available. The balance between protecting consumer rights and ensuring the viability of assisted living facilities will likely be a central theme in discussions surrounding this bill.
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