4600B Montgomery Blvd NE, Suite 103 Albuquerque, NM 87109 "Assisted Living Contract Requirements: How will the changes affect you?" Webinar April 26, 2013 4600B Montgomery Blvd NE, Suite 103 Albuquerque, NM 87109 Phone: 505-880-1088

4600B Montgomery Blvd NE, Suite 103 Albuquerque, NM 87109 Please visit our website at www.nmhca.org and click on the Assisted Living tab to download the PowerPoint slides and handouts. A copy of this webinar will be available later today. 4600B Montgomery Blvd NE, Suite 103 Albuquerque, NM 87109 Phone: 505-880-1088

Senate Bill 335 was introduced, passed and signed with an emergency clause -- Effective April 2, 2013 Requires assisted living facilities to modify contracts between the facility and its residents to allow for a prorated refund to the resident’s estate or responsible party after a resident dies. Contracts must have a refund policy and each resident must have a contract

Seek legal advice about your contract with residents The purpose of this webinar is to review the provisions of SB 335, not to provide legal advice to your facility. We encourage providers to consult with legal counsel to ensure all provisions of your resident contracts comply with federal and state statutory and regulatory requirements.

The prorated refund would: Be based on the calculated daily rate for any unused portion of payment beyond the termination date The date the unit is vacated by the resident due to the resident’s death and Cleared of all personal belongings, and After all charges have been paid to the facility

If belongings are not removed within one week of the resident’s death & the amount of belongings does not preclude renting the unit: The facility may clear the unit, However, the facility must give the responsible party at least one week’s advance notice before the facility clears the unit. The facility may charge the resident’s estate for actual costs of moving and storing the belongings, but the facility may not charge more than 10% of the regular rate for the unit. The facility may dispose of the resident’s belongings if unclaimed within 45 days after notification.

Other Significant Issues in Legislative Fiscal Impact Report Attorney General’s Office indicates That SB 335 contains no penalty provisions for failure to comply with the bill, No specific enforcement delegation to the “department” (DoH) is included, However, DoH has licensure authority and may promulgate such a licensure rule, and If there is no rule, DoH may have authority to bring an action in court or enforce the new contract provisions under other authority

Other Significant Issues in Legislative Fiscal Impact Report Cont. Department of Health believes they will be required to revise licensing regulations for assisted living, 7.8.2 NMAC. Consequences of Not Enacting SB 335 were considered.

New Mexico Health Care Association 4600B Montgomery NE Suite 103 Albuquerque, NM 87109 505-880-1088 Linda Sechovec, Executive Director lsechovec@nmhca.org