A.R.S. tit. 44 ch. 25 — Arizona Revised Statutes Title 44 Chapter 25 — Senior Residential Entrance Fee Contracts

44-6951. Definitions In this chapter, unless the context otherwise requires: 1. "Audited financial report" means a financial report on a provider that is prepared by an independent certified public accountant. 2. "Department" means the department of insurance and financial institutions. 3. "Director" means the director of the department of insurance and financial institutions. 4. "Entrance fee" means an initial or deferred transfer to a provider of a facility of a sum of money or property by a person entering into a senior residential entrance fee contract that in amount or value is at least six hundred percent of the periodic fee charged to a resident, all or a portion of which may be refunded to that resident, a benefactor or a beneficiary on the resident's termination of residence in the facility. 5. "Facility" means a place or places in which a provider undertakes to provide a resident with a living unit pursuant to a senior residential entrance fee contract. Facility does not include any provider that is regulated by the department of insurance and financial institutions pursuant to title 20, chapter 8. 6. "Living unit" means any apartment, room or other area in a facility set aside for the exclusive use of one or more identified residents. 7. "Periodic fee" means the monthly calculated amount charged to a resident for lodging in a living unit provided pursuant to a senior residential entrance fee contract. 8. "Provider" means a person who provides lodging to seniors in a living unit pursuant to a senior residential entrance fee contract. 9. "Resident" means an individual who enters into a senior residential entrance fee contract with a provider or who is designated in a senior residential entrance fee contract to receive lodging. 10. "Senior residential entrance fee contract" means a contract to provide a living unit in a facility for the duration of a resident's life or for a term of more than one year that is conditioned on the transfer of an entrance fee to the provider in addition to or in lieu of the payment of periodic charges for the living unit and that is further conditioned on the resident's ability to live independently. 44-6952. Senior residential entrance fee contracts; provider registration; registration fee A. Before a provider solicits, enters into or extends the term of a senior residential entrance fee contract the provider shall register with the department on a form prescribed by the department. The form shall include at least the following information: 1. The name of the provider. 2. The name, business address and business telephone number of each person holding at least a ten per cent ownership interest in the provider. 3. The business address, telephone number and fax number of the provider. 4. The mailing and street addresses for each of the provider's facilities. 5. The name, business address and business telephone number of the chief administrator for each facility. 6. The fiscal year-end date for the provider. B. The director shall charge each provider a registration fee. The provider shall submit the registration form and fee to the department together with a copy of the provider's most recent audited financial report and a copy of the provider's disclosure statement prescribed in section 44-6954, subsection D, paragraph 2. 44-6953. Maintaining valid registration A. To maintain a valid registration, within one hundred eighty days following the conclusion of each fiscal year each provider shall file its annual financial report for the previous fiscal year with the department. If a provider fails to timely file its annual financial report, the department shall notify the provider in writing. If the provider fails to file its annual financial report within thirty days after the date of the written notice, the department shall cancel the provider's registration and send written notice of the cancellation to the provider and the consumer fraud section of the attorney general's office. B. A provider shall also file with the department any amendments to its disclosure statement prescribed in section 44-6954, subsection D, paragraph 2 within fourteen days after making the amendment. The department shall notify the provider and the consumer fraud section of the attorney general's office if the department finds that the provider is using a disclosure form or amended disclosure form that has not been filed with the department. C. The department shall forward to the consumer fraud section of the attorney general's office a copy of any provider's audited financial report that contains a qualified opinion or a statement that the auditors have substantial doubt about the provider's ability to continue as a going concern. The department shall notify the provider that the department has forwarded the financial report to the attorney general. 44-6954. Senior residential entrance fee contracts; offer; rescission; disclosure A. A person shall not solicit or enter into or extend the term of a senior residential entrance fee contract as a provider except pursuant to this chapter and after registering with the department as provided in section 44-6952. B. The senior residential entrance fee contract, or an application agreement if a contract is contemplated to be signed thereafter, shall provide that any person who enters into the contract or application agreement has a period of seven days to rescind the contract or application agreement without penalty or further obligation. The seven days begins on the first full calendar day after the last to occur of any of the following events: 1. The execution of the contract or application agreement, whichever occurs first, if the proposed form of contract is provided to the person at the time the application agreement is executed. 2. The payment of an initial sum of money as a deposit or application fee. 3. Receipt of the disclosure statements and contents prescribed in subsection D of this section. C. If a rescission occurs, the provider shall fully refund all monies or property paid or transferred by the person. A facility shall not require a person to move into a facility until after the expiration of the seven day rescission period. D. At or before the execution of a senior residential entrance fee contract and the transfer of any money or other property to a provider pursuant to a contract, the provider shall deliver to the person who is executing the senior residential entrance fee contract both of the following: 1. A copy of the provider's most recent certified statement of operations and balance sheet prepared according to generally accepted accounting principles. 2. A disclosure statement that is not longer than two printed pages, that is in plain English and that provides in clear and conspicuous type the following information: (a) The name of the facility. (b) The name of the owner of the facility. (c) The amount of the entrance fee. (d) The portion of the entrance fee that is or may be refundable to the resident and the terms on which the refund is to be made. (e) Whether, and by what method, the refundable portion of the entrance fee is insured, guaranteed, secured or otherwise provided for. (f) A statement that a person who has complaints about an entrance fee contract may contact the consumer fraud section of the attorney general's office.