The Vermont Statutes Online
§ 8001. Definitions
As used in this chapter:
(1) "Commissioner" means the Commissioner of Financial Regulation.
(2) "Continuing care" means the furnishing in a facility, pursuant to a continuing care contract, of board and a variety of living arrangements together with nursing, medical, health and health-related services, assistance with the personal activities of daily living, or any combination of these services, including a priority commitment for nursing care, to two or more individuals who are not related by consanguinity or affinity to the person furnishing such care, for a term in excess of one year or for the duration of that individual's life, including mutually terminable contracts. Lodging and services need not be provided at the same location.
(3) "Continuing care contract" means a contract under which a provider is to furnish continuing care to a specified individual in return for payment of an entrance fee which is in addition to, or in lieu of, the payment of regular periodic charges for the care and services involved.
(4) "Department" means the Department of Financial Regulation.
(5) "Entrance fee" means an initial or deferred transfer to a provider of a sum of money or other property, or portion thereof, made or promised to be made as consideration for acceptance of a specified individual as a resident in a facility. A fee which is less than the sum of the regular periodic charges for six months of residency shall not be considered an entrance fee for the purposes of this chapter.
(6) "Facility" means a place or places in which a resident receives continuing care.
(7) "Continuing care insurance" means, as used in this chapter, the agreement to fund the cost of continuing care pursuant to a continuing care contract.
(8) "Occupancy date" means the date a living unit is available for occupancy by the resident or the date on which the resident personally occupies the living unit, whichever occurs first.
(9) "Person" means an individual, trust, state, partnership, committee, corporation, association, or other organizations such as joint-stock companies or insurance companies, or a political subdivision or instrumentality of a state, including a municipal corporation.
(10) "Provider" means the person who enters into a contract to provide continuing care to a resident.
(11) "Rate" means the cost of services and insurance per exposure base unit, or cost per unit of insurance, or charge to residents for services rendered, prior to the application of individual risk variations based upon loss or expense considerations.
(12) "Resident" means the individual designated in a continuing care contract as the one who is to receive continuing care.
(13) "Resident assistance fund" means a fund established in accordance with section 8018 of this title. "Supplementary rate information" includes any manual, schedule, or plan of rates, classification system, rating schedule, minimum premium, policy fee, rating rule, rating plan, or any other similar information needed or used to determine the applicable rate in effect or to be in effect for a resident. (Added 1987, No. 247 (Adj. Sess.), § 1; amended 1989, No. 225 (Adj. Sess.), § 25; 1995, No. 180 (Adj. Sess.), § 38; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012.)
§ 8002. Certificate of authority; authority of the Department
(a) A provider shall not receive any entrance fee or portion thereof, or enter into a continuing care contract unless the provider has obtained a certificate of authority from the Commissioner. However, a refundable payment of $1,000.00 or less and a processing fee of $250.00 or less shall not be considered entrance fees for the purposes of this chapter. The Commissioner is authorized to modify the amounts of refundable payments and processing fees to reflect increased costs or inflation.
(b) The application for the certificate of authority shall include the following information: the name and address of the provider that will operate the facility, a copy of the proposed continuing care contract and escrow agreement to be used by the applicant, a schedule of all fees to be charged, a description of the applicant's refund policy and, if the applicant is not an individual, a description of the applicant. This description shall include the names and addresses of members of its board of directors, if any; its affiliation with or sponsorship by other organizations, if any, and a statement of the financial responsibility of such organizations; the applicant's financial, marketing plans, and proposed marketing materials; a plan for establishment of a resident assistance fund; an actuarial report demonstrating financial feasibility; and such other information as the Commissioner may require. An applicant shall submit sufficient evidence of:
(1) the amount and liquidity of its assets relative to the risks to be assumed;
(2) the adequacy of the expertise, experience, and character of the person or persons who will manage it; and
(3) the overall soundness of its plan of operation.
(c) The Commissioner shall acknowledge receipt of an application within 15 days of the day it is received. If the application is not complete, the Commissioner shall notify the applicant, in writing, that additional information is required.
(d) The Commissioner shall act on the application within 90 days after an application is determined to be complete. The Commissioner may approve, approve with conditions, or deny a certificate of authority.
(e) The Commissioner shall not issue a certificate of authority unless he or she determines that the application conforms to the requirements of this chapter and that the provider has demonstrated financial feasibility in accordance with the information submitted pursuant to subsection (b) of this section.
(f) The certificate of authority of a provider shall remain in effect until revoked, after notice and hearing, upon a determination that the provider has violated any provision of this chapter, any rule adopted according to the provisions of this chapter, or order of the Commissioner.
(g) Providers who have been granted a certificate of authority shall be subject to the provisions of subchapter 7 of chapter 101 of this title, examination and reporting; and sections 3661, 3686, and 3687 of this title. The Commissioner shall conduct an examination whenever deemed necessary but at least twice in the first six years of operation and at least once every five years thereafter. The Commissioner may waive or modify subchapter 7 of chapter 101 of this title and sections 3661, 3686, and 3687 as appropriate to the special characteristics of continuing care retirement communities.
(h) Review of rates and fees.
(1) Rate standards.
(A) Excessive: Rates are excessive if they are producing or are likely to produce unreasonably high profits for the services provided, the excess of revenue over expenses is not reasonably related to the financial requirements of the provider, or expenses are unreasonable when compared to like or similar services provided.
(B) Inadequacy: Rates are inadequate if they are insufficient to sustain projected losses and expenses in the class or classes of business to which they apply or the use of such rates has or, if continued, will have the effect of substantially lessening competition or the tendency to create a monopoly in any market.
(C) Unfair discrimination: Unfair discrimination exists if, after allowing for practical limitations, price differentials fail to reflect equitably the differences in expected losses and expenses. A rate is not unfairly discriminatory because different premiums result for a class of residents with like loss exposures but different expenses, or like expenses but different loss exposures, so long as the rate equitably reflects the differences with reasonable accuracy. This provision shall not prohibit a provider from establishing a rate structure which subsidizes a portion of the units within a facility.
(2) Rating methods or criteria. In reviewing the Commissioner shall utilize the following criteria:
(A) Basic factor in rates. Due consideration shall be given to past and prospective loss and expense experience within, and as reasonable and necessary outside this State; to catastrophic hazards; to a reasonable provision for underwriting profit; to contingencies; to trends within and outside this State, to additional sums for leveling premium rates over time or for dividends or savings to be allowed or returned to residents; and to all other relevant factors.
(B) Classification. Risks may be classified in any lawful and reasonable way for the collection of statistics and establishment of rates. Rates for new residents may be established prospectively for individual risks in accordance with rating plans or schedules which provide for recognition of probable variations in hazards, expenses, or both.
(C) Expenses. The expense provisions included in the rates to be used by a provider shall reflect the operating methods of the provider, and, so far as is determinable and reasonable, its own actual and anticipated expense experience for the kind of services provided, or any subdivision thereof.
(D) Profits. The rates may contain an allowance providing for a reasonable profit. In determining the reasonableness of profit, consideration shall be given to all relevant investment income and a provision for contingencies may be included.
(3) Filing of rates and other rating information. Every provider shall file with the Commissioner all rates and supplementary rate information which are to be used in this State. Such rates and information shall be provided to the Commissioner at least 60 days before the effective date.
(4) Use of rates and rate review. The Commissioner has the authority to review rates pursuant to the criteria set forth in this section. The Commissioner may disapprove a rate if the Commissioner finds that it is excessive, inadequate, or discriminatory.
(A) A prefiled rate may be disapproved by the Commissioner before its effective date. Existing rates shall remain in effect until a final determination is made on the proposed rate.
(B) A rate may be disapproved at any time subsequent to the effective date. The rate shall remain in effect until a new rate is finally determined.
(i) Advertising and marketing materials shall be consistent with the provisions of this chapter. Upon request by the Commissioner, the provider shall submit such materials to the Commissioner for review. In the event the Commissioner determines that the materials are inconsistent with the provisions of this chapter, he or she shall order the provider to desist from further use of those materials. (Added 1987, No. 247 (Adj. Sess.), § 1.)
§ 8003. Sale or transfer of ownership
Any provider desiring to sell or transfer ownership of a continuing care facility shall notify the department 30 days in advance of completion of such sale or transfer. The Commissioner may revoke, after notice and hearing, and upon written findings of fact, the certificate of authority of any provider based on a substantial change in control or ownership of such provider, if such change is found not to be in the best interests of the residents of the facility:
(1) in that the facility is in danger of becoming insolvent;
(2) the care of current or prospective residents is threatened; or
(3) the monthly rates paid by residents would be adversely impacted. (Added 1987, No. 247 (Adj. Sess.), § 1.)
§ 8004. Lien on behalf of residents; rehabilitation or liquidation
(a) Prior to the issuance of a certificate of authority under this chapter, or at such other time as the Commissioner may determine it is in the best interests of residents of a facility, the Commissioner may file a lien on the real and personal property of the provider or facility to secure the obligations of the provider pursuant to existing and future contracts for continuing care. A lien filed under this section shall be effective for a period of ten years following such filing and may be extended by the Commissioner upon a finding that such extension is advisable for the protection of residents of the facility. The lien may be foreclosed upon the liquidation of the facility or the insolvency of the provider and in such event the proceeds thereof shall be used in full or partial satisfaction of obligations of the provider pursuant to contracts for continuing care then in effect. The lien provided for in this section shall be subordinate to the lien of any mortgage on the property of the provider used to fund the costs of acquiring, developing, or constructing and funding the reserves thereof, and may be subordinated with the written consent of the Commissioner to the claims of other persons if the Commissioner shall determine such subordination to be advisable for the efficient operation of the facility. A lien filed by the Commissioner under this section does not displace any previously perfected lien.
(b) If, at any time, the Commissioner determines, after notice and an opportunity for the provider to be heard, that:
(1) a portion of a reserve fund escrow required under this chapter has been or is proposed to be released;
(2) a provider has been or will be unable, in such a manner as may endanger the ability of the provider to fully perform its obligations pursuant to contracts for continuing care, to meet the most recent pro forma income or cash flow projections filed by the provider;
(3) a provider has failed to maintain the reserves required under this chapter; or
(4) a provider is insolvent, or in imminent danger of becoming subject to a delinquency proceeding under chapter 145 of this title or insolvent;
the Commissioner may apply to the appropriate court for an order directing or authorizing the Commissioner to seize the property of, to rehabilitate or to liquidate a provider under chapter 145 of this title.
(c) In furtherance of the welfare of the persons who have previously contracted with the provider for continuing care, the proceeds of any lien obtained by the Commissioner pursuant to this section shall be distributed in the following order of priority:
(1) used on behalf of residents of a facility being liquidated;
(2) used in full or partial refund of entrance fees;
(3) used to pay other creditors as provided by law. (Added 1987, No. 247 (Adj. Sess.), § 1; amended 1999, No. 38, § 21, eff. May 20, 1999.)
§ 8005. Continuing care contracts
(a) A continuing care contract shall be in writing and shall contain at a minimum the provisions required in subsection (d) of this section.
(b) All contract forms and the form of any attachments, addenda, or attachments by reference shall be filed with, and approved by, the Commissioner prior to use by the provider. The Commissioner shall have the authority to require disclosure of contract provisions and omissions in the contract. The Commissioner shall have the same authority and be subject to the same procedures in approving contracts under this section as provided for approving applications under subsections 8002(c) and (d) of this title. A single contract form may be used for several types of plans offered by the provider, as long as the Commissioner determines that the use of such forms will not have the tendency to be confusing.
(c) All text in contract forms, except as provided in subdivision (d)(14) of this section, shall be printed in a type the size of which shall be uniform and not less than 10-point.
(d) The contract shall include at least the following provisions:
(1) Termination rights. A statement of the resident's termination rights under section 8006 of this title.
(2) Living unit. A description of the particular living unit the resident will occupy.
(3) Fees. A listing of all fees and the amounts which are required to be paid by the resident, including processing fees, entrance fees or portion thereof, and periodic fees if any. A statement of the values of all properties, if any, subject to transfer under the contract to the provider shall be included.
(4) Fee adjustments. A statement of the bases upon which periodic fees may be adjusted. The contract shall provide that the resident will be notified at least 60 days in advance of any change in scope or price of any component of care or service.
(5) Effect of civil marriage. A statement relating to the civil marriage of a resident, of fee changes, terms affecting entry of a spouse to the facility, and consequences if the spouse does not meet entry requirements.
(6) Occupancy date. An occupancy date shall be specified; however, a provider shall not require a resident to move into the facility on a date which is less than 30 days after the date on which the contract is executed. For facilities under development, the occupancy date may be estimated.
(7) Charges. A listing of all services to which the resident is entitled without additional charge. The contract shall clearly specify any additional services available at the facility for which additional charges will be made, the extent to which nursing care is provided, and the charges for that care. Services such as additional meals, personal care, medical care, drugs, and burial which a resident might reasonably expect to be included in the contract, but which are not covered under the contract, shall be specified.
(8) Failure to pay. A statement describing whether, and under what circumstances, the resident shall be permitted to remain at the facility in the event he or she is unable to pay periodic or other charges according to the contract, and a statement describing eligibility for participation in the resident assistance fund.
(9) Transfers. A statement explaining the conditions under which a resident may be transferred from his or her living unit and the conditions governing reoccupancy of that unit; any financial adjustment to be made in the case of a resident who permanently transfers to another unit in the facility providing a different level of care, or a hospital and who permanently gives up his or her living unit; whether the provider has any responsibility to provide services following care in another facility; whether a refund will be due if the resident vacates his or her living unit and the provider will not permit reoccupancy by the resident.
(10) Death, divorce, or transfer of spouse. In instances where the living unit is shared, the options available to a resident upon the death, divorce, or transfer of a resident spouse shall be listed. The contract shall specify how each option affects the monthly rate. The contract shall also specify the options available to a person if his or her spouse dies prior to occupancy of a unit. No resident shall be required to move to another living unit because of the death or transfer of a second resident occupying the same living unit.
(11) Preexisting conditions. A statement of any limitations on the provider's responsibility for costs associated with the treatment or medication of an ailment or illness existing prior to the date of occupancy. In such case, the medical or surgical exceptions shall be listed in the contract.
(12) Absence from facility. A statement explaining whether any reimbursement is to be made by the provider for the support, maintenance, board, or lodging supplied to a resident who requires medical attention while absent from the facility. The contract shall designate any credit or allowance a resident will receive when absent from the facility for an extended period of time.
(13) Interest in assets. A statement of the resident's proprietary interest in the assets of the facility, if any.
(14) Refunds. A statement, in clear and understandable language, in print no smaller than the largest used in the body of the agreement, highlighted by boldface, underlining, or one size larger type, of the terms governing a refund of any portion of the entrance fee, and periodic fees.
(e) The contract may include the following provisions:
(1) a clause restricting transfer or assignment of a resident's rights and privileges under the contract;
(2) a clause permitting the provider, in the event the resident breaches the contract, to waive the breach without relinquishing the provider's right to insist that the resident comply with the remaining terms of the contract;
(3) a clause requiring that the resident reimburse the provider for any loss or damage beyond normal wear and tear suffered by the provider as the result of carelessness or negligence on the part of the resident; and
(4) a clause providing for subrogation of any cause of action a resident might have as a result of injuries sustained by a resident due to the negligence of a third party, and for a lien on any judgment, settlement, or recovery, for any additional expense incurred by the provider in caring for the resident as a result of such injury, and requiring the cooperation of the resident in assisting the diligent prosecution of any claim or action against such third party.
(f) The contract shall not contain any language purporting to absolve the provider from liability for negligence. (Added 1987, No. 247 (Adj. Sess.), § 1; amended 2009, No. 3, § 12a, eff. Sept. 1, 2009.)
§ 8006. Termination of contract; notice
(a) A person who enters into a continuing care contract with a provider may voluntarily terminate the contract within 30 days of executing such contract, and shall receive a refund of all money paid according to the provisions of subdivision 8007(c)(1) of this title. A person may voluntarily terminate the contract at any other time subject to the applicable refund provisions of subdivisions 8007(c)(2) and (3) of this chapter.
(b) If the resident dies before the occupancy date or, through illness, injury, or incapacity, is precluded from becoming a resident under the terms of the continuing care contract, the contract shall terminate.
(c) A provider may terminate a contract only for good and sufficient cause. The provider shall give the resident at least 90 days' written notice prior to termination, and shall send a copy of the notice to the Department. Good and sufficient cause includes:
(1) a material failure on the part of the resident to abide by rules adopted for residents or a material breach by the resident of the continuing care contract, provided that failure to abide by the rules or contract that are caused, in whole or in part, by a diagnosable medical or psychiatric illness shall not be a basis for terminating the contract; and
(2) making any material misrepresentation or omission in connection with the application forms, financial statements, or other information submitted by the resident, except that the provisions of the contract, exclusive of financial statements, shall be incontestable after it has been in force during the lifetime of the resident for a period of two years from its date of execution. (Added 1987, No. 247 (Adj. Sess.), § 1.)
§ 8007. Refunds
(a) Unless otherwise provided in this section, all refunds of entrance fees shall be made within 60 days of the day notice of termination is given. Refunds shall be made less any additional costs specifically incurred by the provider at the request of the resident and set forth in writing as a separate addendum. Refunds shall be made according to the following provisions.
(b) If the contract is terminated:
(1) due to death prior to the occupancy date or 90 days thereafter, or if the person is precluded from becoming a resident under the continuing care contract due to illness, injury, or incapacity, the provider shall refund within 10 days all entrance fees received in connection with the contract;
(2) due to death after the first 90 days but within the first year of occupancy, at least 50 percent of the entrance fee shall be refunded.
(c) If the contract is voluntarily terminated by the resident and:
(1) occurs within 30 days of the date the contract was entered, the provider shall refund all money paid or property transferred in connection with the contract within 10 days;
(2) occurs more than 30 days after the contract is entered into and within the first 90 days of occupancy, the resident shall receive a refund of the entrance fee less an amount up to four percent of the entrance fee;
(3) occurs more than 90 days after occupancy, a refund shall be calculated on a pro rata basis with the provider retaining no more than two percent of the entrance fee per month of occupancy.
(d) If the contract is terminated by the provider, the provider shall refund an amount equal to the entrance fee divided by the resident's years of expected lifetime at the time of admission multiplied by his or her years of lifetime at the time of discharge or dismissal. For purposes of this subsection, years of expected lifetime shall be computed on the basis of the mortality tables used by the department under the provisions of section 3784 of this title at the time of the discharge or dismissal. However, in any event refunds shall not be less than ten percent of the entrance fee. Refunds due under this subsection shall be due and payable within ten days of the date that the resident relinquishes possession of the living unit.
(e) If less than 80 percent of individual units are contracted, a provider may apply to the Commissioner for permission to delay the refund period under subdivisions (c)(2) and (3) of this section for up to 24 months or until receipt of an entrance fee for the same or a comparable unit, whichever is earlier. If the Commissioner determines that the financial condition of the provider requires such an extension, he or she may order partial distribution of the refund in order to protect a resident from undue hardship.
(f) Notwithstanding the other refund provisions of this section, if the facility is not available for occupancy a provider may elect to defer payment of refunds of up to 50 percent of the entrance fee received from or on behalf of the resident until receipt of an entrance fee for the same or a comparable unit or until the facility is occupied, whichever occurs first. However, in no event shall the provider defer payment of a refund for more than 24 months.
(g) In the event a provider defers payment of the refund beyond 60 days under subsections (e) and (f) of this section, it shall pay interest to the resident at a rate which is two percentage points above the prime rate charged by banks, as that term is defined in 32 V.S.A. § 3108(a). (Added 1987, No. 247 (Adj. Sess.), § 1.)
§ 8008. Escrow of entrance fees
(a) In the event the facility is not in operation at the time entrance fees are paid, the entrance fees or portions thereof shall be deposited in an escrow account. Such escrowed fees shall not be released to the provider until the following conditions are satisfied:
(1) Commitments are received from persons who have entered into continuing care contracts for a minimum of 60 percent of the residential units. As used in this subdivision, "commitment" means payment of at least ten percent of the entrance fee.
(2) One hundred percent of the financing for construction and operation of the facility has been arranged. As used in this subdivision, "financing" includes all funds which, when combined with entrance fees and periodic fees receivable under signed contracts, are sufficient to complete construction of the facility and to provide enough working capital to enable the facility to operate in a self-sufficient manner.
(3) The provider has obtained or caused to be obtained a guaranteed maximum price contract for construction of the facility.
(4) The provider has obtained or caused to be obtained all permits and regulatory approvals necessary for operation of the facility except those dependent upon completion of construction.
(b) In the case of a contract for a previously occupied residential unit, fees shall be held in escrow until 60 days prior to the occupancy date.
(c) If the provider is unable to satisfy the conditions set forth in subsection (a) of this section within a reasonable period of time, the Commissioner may order that escrowed fees be released and refunded. (Added 1987, No. 247 (Adj. Sess.), § 1.)
§ 8009. Reserve requirements
A provider shall maintain a reserve fund equal to annual principal and interest payments on all debt or 15 percent of annual operating expenses, whichever is greater. The Department may require that these funds be placed in an escrow account, or other similarly secure investment where the funds are protected. The Department shall approve any withdrawal or borrowing from these funds, and shall monitor repayment. (Added 1987, No. 247 (Adj. Sess.), § 1.)
§ 8010. Disclosure
(a) A provider shall maintain financial records for the facility, including independently audited financial statements, and copies of all inspection reports pertaining to that facility that have been issued by any governmental agency and filed with the provider. A copy of each such report shall be retained in the facility's records for not less than five years from the date the report is filed or issued. Each facility shall also maintain all annual reports and statements that have been filed with the Department or any state, local or federal agency. The records and information required to be maintained under this section shall be available for review upon request by residents and applicants during normal business hours. Copies of these documents will be provided for a reasonable copying fee.
(b) Notwithstanding the provisions of subsection (a) of this section, records, reports, or documents, which by state or federal law or regulation are deemed confidential, shall not be distributed or made available until such confidential status has expired.
(c) Every provider shall prepare a summary of the most recent audited financial statement, indicating in the summary where the contents of the complete statement may be inspected. A copy of the statement shall be maintained at the facility and a copy of the summary shall be prominently displayed in the facility.
(d) Proposed changes in policies, programs, and services shall be posted, and explained to residents.
(e) Before entering into a contract to furnish continuing care, the provider, or the agent of the provider, shall provide the prospective resident or his or her legal representative with the following information:
(1) a copy of the continuing care contract form;
(2) a summary of the provider's most recent annual financial statement; and
(3) such additional information as may be required by the Department. (Added 1987, No. 247 (Adj. Sess.), § 1.)
§ 8011. Resident associations; annual resident meeting
(a) Residents of a facility have the right to self-organization and the right to engage in activities for the purpose of keeping informed on the operation of the facility, or for the purpose of other mutual aid.
(b) Annually, the governing body of a facility, or its designated representative, shall hold a meeting with the residents of that facility for the purpose of discussing, at a minimum, the following subjects: income and expenditures of the facility, financial trends and issues as they apply to the facility and any proposed changes in policies, programs, or services. Upon request of the residents, a member of the board of directors, a general partner, or a principal owner shall attend such meeting. Residents shall be given at least seven days' advance notice of the annual meeting. An agenda and any materials to be distributed by the governing body at the meeting shall be posted in a conspicuous place in the facility and copies shall be available to residents upon request. (Added 1987, No. 247 (Adj. Sess.), § 1.)
§ 8012. Enforcement
(a) The Commissioner may, after notice and an opportunity for hearing, impose an administrative penalty of not more than $15,000.00 against any person who violates a provision of this chapter. The hearing before the Commissioner shall be a contested case subject to the provisions of 3 V.S.A. chapter 25.
(b) A provider who violates a provision of this chapter shall be subject to a fine not to exceed $15,000.00, or imprisonment for a period not to exceed one year, or both.
(c) The Department, or the Attorney General at the request of the Department, may bring an action to enforce the provisions of this chapter in the Superior Court. The Court may grant temporary and permanent injunctive relief and may exercise all the powers available to it. (Added 1987, No. 247 (Adj. Sess.), § 1; 1995, No. 167 (Adj. Sess.), § 25.)
§ 8013. Hearing on denial of certificate or rate application
An adverse decision by the Commissioner under section 8002 of this title shall state the grounds and particulars on which the decision was based in such detail as to reasonably inform the affected party. Any party aggrieved by the decision may file a written notice and request a hearing before the Commissioner within 30 days of the decision. The appeal provisions set forth in 3 V.S.A. chapter 25 shall apply. (Added 1987, No. 247 (Adj. Sess.), § 1.)
§ 8014. Rules
The Commissioner may adopt rules under 3 V.S.A. chapter 25 necessary to carry out the provisions of this chapter. (Added 1987, No. 247 (Adj. Sess.), § 1.)
§ 8015. Nondiscrimination
The provisions of 9 V.S.A. § 4503 as they relate to age shall not apply to providers offering continuing care under the provisions of this chapter. (Added 1987, No. 247 (Adj. Sess.), § 1.)
§ 8016. Fees for administration of this chapter
(a) An application for a certificate of authority shall be accompanied by a fee of $1,500.00.
(b) The Department shall be reimbursed for any expenses it reasonably incurs itself or by its agents in pursuing the following statutory duties:
(1) review of rates charged by operators;
(2) review of contract forms;
(3) monitoring compliance with statutory and regulatory requirements;
(4) general enforcement of statutory requirements; and
(5) preparation and publication of a consumers' guide. The Commissioner shall annually, before August 16, apportion the expenses incurred in performing the enumerated duties among providers based on their annual gross revenue for their most recent fiscal year.
(c) The Department shall be reimbursed by a provider for any expenses reasonably incurred by the Department or by its agents, in pursuing its financial and market conduct examinations, reviewing the sale or transfer of a facility to another operator, conducting specific enforcement actions, and carrying out investigations and rehabilitation activities under this chapter. (Added 1987, No. 247 (Adj. Sess.), § 1.)
§ 8017. Consumers guide
The Commissioner shall publish and distribute a consumers' guide to continuing care retirement communities and a directory of such facilities. (Added 1987, No. 247 (Adj. Sess.), § 1.)
§ 8018. Resident Assistance Fund
(a) A provider shall establish a Resident Assistance Fund for the purpose of assisting residents who are unable to meet a portion of periodic or other charges of the provider.
(b) The Fund shall be established by an initial contribution of at least $25,000.00 from the provider and may contain any additional amounts contributed by the provider or residents.
(c) The Fund, including any interest earned on monies in the Fund, shall be used for the sole purpose of assisting residents who have financial difficulties which impair their ability to meet monthly fees and other charges.
(d) The Fund shall be administered by the operator of the facility and a committee of residents, designated by the residents, for the exclusive benefit of the residents in a manner approved by the Commissioner.
(e) The Fund shall be subject to an annual independent audit. The independent audit may be filed and submitted in accordance with one of the following methods:
(1) an audited financial statement of the Fund shall be included as a separate schedule of supplementary information in the provider's audited annual statement required under subsection 8002(g) of this title; or
(2) an audited financial statement of the Fund shall be submitted annually to the residents and the Commissioner. (Added 1987, No. 247 (Adj. Sess.), § 1; amended 2009, No. 137 (Adj. Sess.), § 13.)