§ 23-59-3 Disclosure statement. – (a) The disclosure statement of each facility shall contain all of thefollowing information unless the information is contained in the continuingcare contract and a copy of that contract is attached to and made a part of theinitial disclosure statement:
(1) The name and business address of the provider and astatement of whether the provider is a partnership, foundation, association,corporation, or other type of business or legal entity.
(2) Full information regarding ownership of the property onwhich the facility is or will be operated and of the buildings in which it isor will be operated.
(3) The names and business addresses of the officers,directors, trustees, managing or general partners, and any person having a tenpercent (10%) or greater equity or beneficial interest in the provider, and adescription of that person's interest in or occupation with the provider.
(4) For the provider, any person named in response tosubsection (a)(3), or the proposed management, if the facility will be managedon a day-to-day basis by a person other than an individual directly employed bythe provider:
(i) A description of any business experience in the operationor management of similar facilities.
(ii) The name and address of any professional service, firm,association, foundation, trust, partnership, or corporation or any otherbusiness or legal entity in which the person has, or which has in the person, aten percent (10%) or greater interest and which it is presently intended willor may provide goods, leases, or services to the provider of a value of fivehundred dollars ($500) or more, within any year, including:
(A) A description of the goods, leases, or services and theprobable or anticipated cost thereof to the provider;
(B) The process by which the contract was awarded;
(C) Any additional offers that were received; and
(D) Any additional information requested by the departmentdetailing how and why a contract was awarded.
(iii) A description of any matter in which the person:
(A) Has been convicted of a felony or pleaded nolo contendereto a felony charge, or been held liable or enjoined in a civil action by finaljudgment if the felony or civil action involved fraud, embezzlement, fraudulentconversion, or misappropriation of property; or
(B) Is subject to an injunctive order of a court of record,or within the past five (5) years had any state or federal license or permitsuspended or revoked as a result of an action brought by a governmental agencyor department, arising out of or relating to business activity or health care,including without limitation actions affecting a license to operate a fostercare facility, nursing home, retirement home, home for the aged, or facilityregistered under this chapter or similar laws in another state; or
(C) Is currently the subject of any state or federalprosecution or administrative investigation involving allegations of fraud,embezzlement, fraudulent conversion, or misappropriation of property.
(5) A statement as to:
(i) Whether the provider is or ever has been affiliated witha religious, charitable, or other nonprofit organization, the nature of anysuch affiliation, and the extent to which the affiliate organization is or willbe responsible for the financial and contractual obligations of the provider;and
(ii) Any provision of the federal Internal Revenue Code, 26U.S.C. § 1 et seq., under which the provider is exempt from the payment ofincome tax.
(6) The location and description of the real property of thefacility, existing or proposed, and to the extent proposed, the estimatedcompletion date or dates of improvements, whether or not construction has begunand the contingencies under which construction may be deferred.
(7) The services provided or proposed to be provided undercontinuing care contracts, including the extent to which medical care isfurnished or is available pursuant to any arrangement. The disclosure statementshall clearly state which services are included in basic continuing carecontracts and which services are made available by the provider at extra charge.
(8) A description of all fees required of residents,including any entrance fees and periodic charges. The description shallinclude: (i) a description of all proposed uses of any funds or propertyrequired to be transferred to the provider or any other person prior to theresident's occupancy of the facility and of any entrance fee, (ii) whetherprovisions exist for the escrowing and return of any such funds, property, orentrance fee and the manner and any conditions of return, and (iii) the mannerby which the provider may adjust periodic charges or other recurring fees andany limitations on such adjustments. If the facility is already in operation,or if the provider operates one or more similar facilities within this state,there shall be included tables showing the frequency and average dollar amountof each increase in periodic rates at each facility for the previous five (5)years or such shorter period that the facility has been operated by theprovider.
(9) Any provisions that have been made or will be made toprovide reserve funding or security to enable the provider to fully perform itsobligations under continuing care contracts, including the establishment ofescrow accounts, trusts, or reserve funds, together with the manner in whichsuch funds will be invested and the names and experience of persons who willmake the investment decisions.
(10) Certified financial statements of the provider,including: (i) a balance sheet as of the end of the two (2) most recent fiscalyears and (ii) income statements of the provider for the two (2) most recentfiscal years or such shorter period that the provider has been in existence.
(11) A pro forma income statement for the current fiscal year.
(12) If the operation of the facility has not yet commenced,a statement of the anticipated source and application of the funds used or tobe used in the purchase or construction of the facility, including:
(i) An estimate of the cost of purchasing or constructing andequipping the facility including such related costs as financing expense, legalexpense, land costs, occupancy development costs, and all other similar coststhat the provider expects to incur or become obligated for prior to thecommencement of operations.
(ii) A description of any mortgage loan or other long-termfinancing intended to be used for any purpose in the financing of the facilityand of the anticipated terms and costs of the financing, including withoutlimitation all payments of the proceeds of the financing to the provider,management, or any related person.
(iii) An estimate of the percentage of entrance fees thatwill be used or pledged for the construction or purchase of the facility, assecurity for long-term financing or for any other use in connection with thecommencement of operation of the facility.
(iv) An estimate of the total entrance fees to be receivedfrom or on behalf of residents at or prior to commencement of operation of thefacility.
(v) An estimate of the funds, if any, which are anticipatedto be necessary to fund start-up losses and provide reserve funds to assurefull performance of the obligations of the provider under continuing carecontracts.
(vi) A projection of estimated income from fees and chargesother than entrance fees, showing individual rates presently anticipated to becharged and including a description of the assumptions used for calculating theestimated occupancy rate of the facility and the effect on the income of thefacility of any government subsidies for health care services to be providedpursuant to the continuing care contracts.
(vii) A projection of estimated operating expenses of thefacility, including (i) a description of the assumptions used in calculatingany expenses and separate allowances for the replacement of equipment andfurnishings and anticipated major structural repairs or additions and (ii) anestimate of the percentage of occupancy required for continued operation of thefacility.
(viii) Identification of any assets pledged as collateral forany purpose.
(ix) An estimate of annual payments of principal and interestrequired by the mortgage loan or other long-term financing.
(13) A description of the provider's criteria for admissionof new residents.
(14) A description of the provider's policies regardingaccess to the facility and its services for nonresidents.
(15) Any other material information concerning the facilityor the provider that may be required by the department or included by theprovider.
(b) The disclosure statement shall state on its cover thatthe filing of the disclosure statement with the department does not constituteapproval, recommendation, or endorsement of the facility by the department.
(c) A copy of the standard form or forms for continuing carecontracts used by the provider shall be attached as an exhibit to eachdisclosure statement.
(d) If the department determines that the disclosurestatement does not comply with the provisions of this chapter, it shall havethe right to take action pursuant to § 23-59-16.
§ 23-59-3 Disclosure statement. – (a) The disclosure statement of each facility shall contain all of thefollowing information unless the information is contained in the continuingcare contract and a copy of that contract is attached to and made a part of theinitial disclosure statement:
(1) The name and business address of the provider and astatement of whether the provider is a partnership, foundation, association,corporation, or other type of business or legal entity.
(2) Full information regarding ownership of the property onwhich the facility is or will be operated and of the buildings in which it isor will be operated.
(3) The names and business addresses of the officers,directors, trustees, managing or general partners, and any person having a tenpercent (10%) or greater equity or beneficial interest in the provider, and adescription of that person's interest in or occupation with the provider.
(4) For the provider, any person named in response tosubsection (a)(3), or the proposed management, if the facility will be managedon a day-to-day basis by a person other than an individual directly employed bythe provider:
(i) A description of any business experience in the operationor management of similar facilities.
(ii) The name and address of any professional service, firm,association, foundation, trust, partnership, or corporation or any otherbusiness or legal entity in which the person has, or which has in the person, aten percent (10%) or greater interest and which it is presently intended willor may provide goods, leases, or services to the provider of a value of fivehundred dollars ($500) or more, within any year, including:
(A) A description of the goods, leases, or services and theprobable or anticipated cost thereof to the provider;
(B) The process by which the contract was awarded;
(C) Any additional offers that were received; and
(D) Any additional information requested by the departmentdetailing how and why a contract was awarded.
(iii) A description of any matter in which the person:
(A) Has been convicted of a felony or pleaded nolo contendereto a felony charge, or been held liable or enjoined in a civil action by finaljudgment if the felony or civil action involved fraud, embezzlement, fraudulentconversion, or misappropriation of property; or
(B) Is subject to an injunctive order of a court of record,or within the past five (5) years had any state or federal license or permitsuspended or revoked as a result of an action brought by a governmental agencyor department, arising out of or relating to business activity or health care,including without limitation actions affecting a license to operate a fostercare facility, nursing home, retirement home, home for the aged, or facilityregistered under this chapter or similar laws in another state; or
(C) Is currently the subject of any state or federalprosecution or administrative investigation involving allegations of fraud,embezzlement, fraudulent conversion, or misappropriation of property.
(5) A statement as to:
(i) Whether the provider is or ever has been affiliated witha religious, charitable, or other nonprofit organization, the nature of anysuch affiliation, and the extent to which the affiliate organization is or willbe responsible for the financial and contractual obligations of the provider;and
(ii) Any provision of the federal Internal Revenue Code, 26U.S.C. § 1 et seq., under which the provider is exempt from the payment ofincome tax.
(6) The location and description of the real property of thefacility, existing or proposed, and to the extent proposed, the estimatedcompletion date or dates of improvements, whether or not construction has begunand the contingencies under which construction may be deferred.
(7) The services provided or proposed to be provided undercontinuing care contracts, including the extent to which medical care isfurnished or is available pursuant to any arrangement. The disclosure statementshall clearly state which services are included in basic continuing carecontracts and which services are made available by the provider at extra charge.
(8) A description of all fees required of residents,including any entrance fees and periodic charges. The description shallinclude: (i) a description of all proposed uses of any funds or propertyrequired to be transferred to the provider or any other person prior to theresident's occupancy of the facility and of any entrance fee, (ii) whetherprovisions exist for the escrowing and return of any such funds, property, orentrance fee and the manner and any conditions of return, and (iii) the mannerby which the provider may adjust periodic charges or other recurring fees andany limitations on such adjustments. If the facility is already in operation,or if the provider operates one or more similar facilities within this state,there shall be included tables showing the frequency and average dollar amountof each increase in periodic rates at each facility for the previous five (5)years or such shorter period that the facility has been operated by theprovider.
(9) Any provisions that have been made or will be made toprovide reserve funding or security to enable the provider to fully perform itsobligations under continuing care contracts, including the establishment ofescrow accounts, trusts, or reserve funds, together with the manner in whichsuch funds will be invested and the names and experience of persons who willmake the investment decisions.
(10) Certified financial statements of the provider,including: (i) a balance sheet as of the end of the two (2) most recent fiscalyears and (ii) income statements of the provider for the two (2) most recentfiscal years or such shorter period that the provider has been in existence.
(11) A pro forma income statement for the current fiscal year.
(12) If the operation of the facility has not yet commenced,a statement of the anticipated source and application of the funds used or tobe used in the purchase or construction of the facility, including:
(i) An estimate of the cost of purchasing or constructing andequipping the facility including such related costs as financing expense, legalexpense, land costs, occupancy development costs, and all other similar coststhat the provider expects to incur or become obligated for prior to thecommencement of operations.
(ii) A description of any mortgage loan or other long-termfinancing intended to be used for any purpose in the financing of the facilityand of the anticipated terms and costs of the financing, including withoutlimitation all payments of the proceeds of the financing to the provider,management, or any related person.
(iii) An estimate of the percentage of entrance fees thatwill be used or pledged for the construction or purchase of the facility, assecurity for long-term financing or for any other use in connection with thecommencement of operation of the facility.
(iv) An estimate of the total entrance fees to be receivedfrom or on behalf of residents at or prior to commencement of operation of thefacility.
(v) An estimate of the funds, if any, which are anticipatedto be necessary to fund start-up losses and provide reserve funds to assurefull performance of the obligations of the provider under continuing carecontracts.
(vi) A projection of estimated income from fees and chargesother than entrance fees, showing individual rates presently anticipated to becharged and including a description of the assumptions used for calculating theestimated occupancy rate of the facility and the effect on the income of thefacility of any government subsidies for health care services to be providedpursuant to the continuing care contracts.
(vii) A projection of estimated operating expenses of thefacility, including (i) a description of the assumptions used in calculatingany expenses and separate allowances for the replacement of equipment andfurnishings and anticipated major structural repairs or additions and (ii) anestimate of the percentage of occupancy required for continued operation of thefacility.
(viii) Identification of any assets pledged as collateral forany purpose.
(ix) An estimate of annual payments of principal and interestrequired by the mortgage loan or other long-term financing.
(13) A description of the provider's criteria for admissionof new residents.
(14) A description of the provider's policies regardingaccess to the facility and its services for nonresidents.
(15) Any other material information concerning the facilityor the provider that may be required by the department or included by theprovider.
(b) The disclosure statement shall state on its cover thatthe filing of the disclosure statement with the department does not constituteapproval, recommendation, or endorsement of the facility by the department.
(c) A copy of the standard form or forms for continuing carecontracts used by the provider shall be attached as an exhibit to eachdisclosure statement.
(d) If the department determines that the disclosurestatement does not comply with the provisions of this chapter, it shall havethe right to take action pursuant to § 23-59-16.
§ 23-59-3 Disclosure statement. – (a) The disclosure statement of each facility shall contain all of thefollowing information unless the information is contained in the continuingcare contract and a copy of that contract is attached to and made a part of theinitial disclosure statement:
(1) The name and business address of the provider and astatement of whether the provider is a partnership, foundation, association,corporation, or other type of business or legal entity.
(2) Full information regarding ownership of the property onwhich the facility is or will be operated and of the buildings in which it isor will be operated.
(3) The names and business addresses of the officers,directors, trustees, managing or general partners, and any person having a tenpercent (10%) or greater equity or beneficial interest in the provider, and adescription of that person's interest in or occupation with the provider.
(4) For the provider, any person named in response tosubsection (a)(3), or the proposed management, if the facility will be managedon a day-to-day basis by a person other than an individual directly employed bythe provider:
(i) A description of any business experience in the operationor management of similar facilities.
(ii) The name and address of any professional service, firm,association, foundation, trust, partnership, or corporation or any otherbusiness or legal entity in which the person has, or which has in the person, aten percent (10%) or greater interest and which it is presently intended willor may provide goods, leases, or services to the provider of a value of fivehundred dollars ($500) or more, within any year, including:
(A) A description of the goods, leases, or services and theprobable or anticipated cost thereof to the provider;
(B) The process by which the contract was awarded;
(C) Any additional offers that were received; and
(D) Any additional information requested by the departmentdetailing how and why a contract was awarded.
(iii) A description of any matter in which the person:
(A) Has been convicted of a felony or pleaded nolo contendereto a felony charge, or been held liable or enjoined in a civil action by finaljudgment if the felony or civil action involved fraud, embezzlement, fraudulentconversion, or misappropriation of property; or
(B) Is subject to an injunctive order of a court of record,or within the past five (5) years had any state or federal license or permitsuspended or revoked as a result of an action brought by a governmental agencyor department, arising out of or relating to business activity or health care,including without limitation actions affecting a license to operate a fostercare facility, nursing home, retirement home, home for the aged, or facilityregistered under this chapter or similar laws in another state; or
(C) Is currently the subject of any state or federalprosecution or administrative investigation involving allegations of fraud,embezzlement, fraudulent conversion, or misappropriation of property.
(5) A statement as to:
(i) Whether the provider is or ever has been affiliated witha religious, charitable, or other nonprofit organization, the nature of anysuch affiliation, and the extent to which the affiliate organization is or willbe responsible for the financial and contractual obligations of the provider;and
(ii) Any provision of the federal Internal Revenue Code, 26U.S.C. § 1 et seq., under which the provider is exempt from the payment ofincome tax.
(6) The location and description of the real property of thefacility, existing or proposed, and to the extent proposed, the estimatedcompletion date or dates of improvements, whether or not construction has begunand the contingencies under which construction may be deferred.
(7) The services provided or proposed to be provided undercontinuing care contracts, including the extent to which medical care isfurnished or is available pursuant to any arrangement. The disclosure statementshall clearly state which services are included in basic continuing carecontracts and which services are made available by the provider at extra charge.
(8) A description of all fees required of residents,including any entrance fees and periodic charges. The description shallinclude: (i) a description of all proposed uses of any funds or propertyrequired to be transferred to the provider or any other person prior to theresident's occupancy of the facility and of any entrance fee, (ii) whetherprovisions exist for the escrowing and return of any such funds, property, orentrance fee and the manner and any conditions of return, and (iii) the mannerby which the provider may adjust periodic charges or other recurring fees andany limitations on such adjustments. If the facility is already in operation,or if the provider operates one or more similar facilities within this state,there shall be included tables showing the frequency and average dollar amountof each increase in periodic rates at each facility for the previous five (5)years or such shorter period that the facility has been operated by theprovider.
(9) Any provisions that have been made or will be made toprovide reserve funding or security to enable the provider to fully perform itsobligations under continuing care contracts, including the establishment ofescrow accounts, trusts, or reserve funds, together with the manner in whichsuch funds will be invested and the names and experience of persons who willmake the investment decisions.
(10) Certified financial statements of the provider,including: (i) a balance sheet as of the end of the two (2) most recent fiscalyears and (ii) income statements of the provider for the two (2) most recentfiscal years or such shorter period that the provider has been in existence.
(11) A pro forma income statement for the current fiscal year.
(12) If the operation of the facility has not yet commenced,a statement of the anticipated source and application of the funds used or tobe used in the purchase or construction of the facility, including:
(i) An estimate of the cost of purchasing or constructing andequipping the facility including such related costs as financing expense, legalexpense, land costs, occupancy development costs, and all other similar coststhat the provider expects to incur or become obligated for prior to thecommencement of operations.
(ii) A description of any mortgage loan or other long-termfinancing intended to be used for any purpose in the financing of the facilityand of the anticipated terms and costs of the financing, including withoutlimitation all payments of the proceeds of the financing to the provider,management, or any related person.
(iii) An estimate of the percentage of entrance fees thatwill be used or pledged for the construction or purchase of the facility, assecurity for long-term financing or for any other use in connection with thecommencement of operation of the facility.
(iv) An estimate of the total entrance fees to be receivedfrom or on behalf of residents at or prior to commencement of operation of thefacility.
(v) An estimate of the funds, if any, which are anticipatedto be necessary to fund start-up losses and provide reserve funds to assurefull performance of the obligations of the provider under continuing carecontracts.
(vi) A projection of estimated income from fees and chargesother than entrance fees, showing individual rates presently anticipated to becharged and including a description of the assumptions used for calculating theestimated occupancy rate of the facility and the effect on the income of thefacility of any government subsidies for health care services to be providedpursuant to the continuing care contracts.
(vii) A projection of estimated operating expenses of thefacility, including (i) a description of the assumptions used in calculatingany expenses and separate allowances for the replacement of equipment andfurnishings and anticipated major structural repairs or additions and (ii) anestimate of the percentage of occupancy required for continued operation of thefacility.
(viii) Identification of any assets pledged as collateral forany purpose.
(ix) An estimate of annual payments of principal and interestrequired by the mortgage loan or other long-term financing.
(13) A description of the provider's criteria for admissionof new residents.
(14) A description of the provider's policies regardingaccess to the facility and its services for nonresidents.
(15) Any other material information concerning the facilityor the provider that may be required by the department or included by theprovider.
(b) The disclosure statement shall state on its cover thatthe filing of the disclosure statement with the department does not constituteapproval, recommendation, or endorsement of the facility by the department.
(c) A copy of the standard form or forms for continuing carecontracts used by the provider shall be attached as an exhibit to eachdisclosure statement.
(d) If the department determines that the disclosurestatement does not comply with the provisions of this chapter, it shall havethe right to take action pursuant to § 23-59-16.
