Michigan Compiled Laws Act 448 Of 2014 Continuing Care Community Disclosure Act (554.901 - 554.993)

AN ACT to regulate the offer and sale of life interests and long-term leases in retirement communities that provide certain services and are independent living units, nursing homes, homes for the aged, adult foster care facilities, home care service agencies, hospices, or places that provide care for certain periods; to prohibit fraudulent practices in relation to the offer and sale of those life interests and long-term leases; to provide for the powers and duties of certain state governmental agencies; to provide for penalties and remedies; to prescribe penalties and civil sanctions; and to repeal acts and parts of acts.

History: 2014, Act 448, Eff. Apr. 2, 2015

Section 554.901 Short Title.
This act shall be known and may be cited as the "continuing care community disclosure act". History: 2014, Act 448, Eff. Apr. 2, 2015
Section 554.903 Definitions; A To C.
As used in this act: (a) "Administrator" means a person that performs administrative or operational functions within or in connection with the continuing care...
Section 554.905 Definitions; D To L.
As used in this act: (a) "Department" means the department of licensing and regulatory affairs. (b) "Disclosure statement" means a disclosure statement as required...
Section 554.907 Definitions; M To O.
As used in this act: (a) "Member" means an individual who enters into a continuing care agreement with a continuing care community. (b) "Monthly...
Section 554.909 Definitions; P To R.
As used in this act: (a) "Person" means an individual, partnership, corporation, association, governmental entity, or other legal entity. (b) "Publish" means to publicly...
Section 554.911 Definitions; S.
As used in this act: (a) "Sale of a continuing care agreement" means the execution of a continuing care agreement. (b) "Sell a continuing...
Section 554.913 Continuing Care Community; Organization And Operation; Purpose; Member To Service In Advisory Capacity.
(1) A continuing care community shall be organized and operated as either a for-profit or nonprofit entity. The entity's purposes shall be limited to...
Section 554.915 Continuing Care Agreement; Registration Or Exemption Required; Applicability To Written Or Oral Arrangements; Offer Or Sale; Conditions; Circumstances.
(1) Subject to subsections (3) and (4), a person shall not offer to enter into or enter into a continuing care agreement unless the...
Section 554.917 Rules; Exemption; Variance; Area Not Considered Home For The Aged Or Adult Foster Care Facility; Relationship Not Subject To Laws Between Landlord And Tenant.
(1) A continuing care community that is licensed in whole or part under article 17 of the public health code, 1978 PA 368, MCL...
Section 554.919 Initial Registration; Submission Of Information; Missing Or Unreliable Information; Cost Of Investigation; Deposit Of Payment; Registration Of 2 Or More Retirement Communities As Single Continuing Care Community; Consideration Of Opinions, Appraisals, And Reports Of Experts; Electronic Transmission Of Application And Fee.
(1) A person seeking initial registration under this act shall submit the following information to the department: (a) An initial registration application on a...
Section 554.921 Incomplete Application; Notification; Order Approving Or Denying Registration.
(1) Effective 60 days after the department receives a registration application, the application shall be considered to be complete unless the department proceeds as...
Section 554.923 Effect Of Order Approving Or Filing Registration.
(1) The fact that an application for registration has been filed or approved does not constitute any of the following: (a) Approval of or...
Section 554.925 Renewal Of Registration; Application Form To Be Sent By Department.
(1) Except as otherwise provided in this act, the department shall renew the registration of a registrant that does all of the following: (a)...
Section 554.927 Application For Registration Renewal; Processing; Failure To Submit Application Or Fee; Continuation Of Current Registration; Failure To File Renewal Application.
(1) Subject to subsections (2) and (3), an application for renewal of registration shall be processed in the same manner as an initial registration...
Section 554.929 Extension Of Registration; Requirements; Fees.
(1) The department may extend the term of an existing registration for a continuing care community for not more than 3 fiscal years if...
Section 554.931 Fees; Continuing Care Administration Fund; Creation; Disposition; Investment; Money Remaining At Close Of Fiscal Year; Expenditures.
(1) The fee for filing an application for initial registration of the offer or sale of continuing care agreements or continuing care at home...
Section 554.933 Reportable Changes; Amendment Of Registration.
(1) A registrant shall notify the department promptly in writing within 45 days of any reportable change with respect to the continuing care community...
Section 554.935 Delivery Of Continuing Care Agreements, Emergency Plan, And Disclosure Statement; Availability Of Feasibility Study.
(1) A continuing care community shall deliver to a prospective member all continuing care agreements pertinent to the continuing care sought by the prospective...
Section 554.937 Disclosure Statement.
(1) Subject to subsection (3), a disclosure statement shall include at a minimum the following information, unless waived by the department in the reasonable...
Section 554.939 Continuing Care Agreement; Requirements.
A continuing care agreement shall meet all of the following requirements: (a) Specify in reasonable detail the rights, privileges, liabilities, and obligations of each...
Section 554.941 Financial Statements; Requirements.
(1) Financial statements under section 19, 25, or 29 shall meet all of the following requirements: (a) Be submitted with a statement of any...
Section 554.943 Financial Forecast.
A pro forma financial plan shall include a financial forecast for a period of 3 years, presented on the same accounting basis as the...
Section 554.945 Funds To Be Held In Trust Account; Deposit With Escrow Agent; Conditions; Temporary Suspension Order; Return Of Escrowed Funds; Escrow Agreement And Account; Requirements; Release Of Funds.
(1) If a member pays funds to a continuing care community before occupancy, the funds shall be held in a trust account unless this...
Section 554.947 Alternative Financial Arrangement.
(1) In lieu of an escrow arrangement imposed pursuant to section 45(2), the department may approve an alternative financial arrangement that separates or secures...
Section 554.949 Records; Reports.
(1) A registered continuing care community shall prepare and maintain for not less than 6 years all of the following records: (a) Accounts and...
Section 554.951 Advertising Or Marketing Communication.
(1) A person shall not distribute or transmit an advertisement or marketing communication described in this subsection unless a true copy of the advertisement...
Section 554.955 Offer Or Sale Of Continuing Care Agreement; Prohibited Acts.
(1) A person shall not, in connection with the offer or sale of a continuing care agreement, directly or indirectly do any of the...
Section 554.957 Appointment Of Independent Conservator Or Guardian.
If a member becomes mentally or physically incapacitated and is unable to handle his or her own personal or financial affairs, the continuing care...
Section 554.959 Arbitration.
(1) A dispute, claim, or grievance arising between a member or a member's estate and a continuing care community shall upon written consent of...
Section 554.961 Service Of Process; Irrevocable Consent Appointing Department.
(1) An applicant for registration under this act, other than a domestic corporation, shall file with the department, on a form prescribed by the...
Section 554.963 Investigations.
(1) The department may conduct investigations within or outside this state to determine if any of the following apply: (a) An offering of a...
Section 554.965 Review And Audit Of Documents And Records.
(1) The department shall review all documents submitted to the department under this act for compliance with this act. The department may require the...
Section 554.967 Repayment Of Entrance Fee; Temporary Suspension.
(1) A court or the department may by order authorize a registrant to suspend repayment of an entrance fee for not more than 180...
Section 554.969 Order Denying, Suspending, Or Revoking Registration.
(1) The department may issue an order denying, suspending, or revoking a registration if it finds that the order is in the public interest...
Section 554.971 Cease And Desist Order.
(1) Subject to subsection (2), if the department determines that a person has engaged, is engaging, or is about to engage in an act,...
Section 554.973 Injunction, Restraining Order, Or Writ Of Mandamus.
If it appears to the department that a person has engaged or is about to engage in an act or practice constituting a violation...
Section 554.975 Civil Fine; Costs; Sanctions; Continuing Care Agreement As Voidable; Refund.
(1) If the director of the department finds that a person violated this act or a rule promulgated or order issued under this act,...
Section 554.977 Liability; Offer Of Rescission.
(1) A person that offers or sells a continuing care agreement in violation of section 15 or 55 or an order issued under section...
Section 554.979 Liability By Implication; Liability Under Other Statute Or Common Law.
Except as explicitly provided in this act, civil liability in favor of a private party does not arise against a person by implication from...
Section 554.981 Person Materially Aiding In Act Or Transaction Constituting Violation; Joint And Several Liability.
A person that directly controls a person that violates this act, a partner in a firm that violates this act, a principal executive officer...
Section 554.983 Statute Of Limitations.
An action shall not be maintained to enforce a liability created under this act unless brought before the expiration of 3 years after the...
Section 554.985 Violation As Felony; Penalty; Seizure And Forfeiture Of Proceeds Or Instrumentality Of Crime.
(1) A person that knowingly violates this act is guilty of a felony punishable by imprisonment for not more than 7 years or a...
Section 554.987 Promulgation Of Rules.
Pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, the department may promulgate rules to implement this act....
Section 554.989 Disclosure Of Filings; Exemption; Confidentiality Of Social Security Numbers.
(1) Applications, reports, and other papers and documents filed by applicants or registrants or experts or appraisers with the department under this act are...
Section 554.991 Life Interest Or Long-term Lease Agreement Under Former Act.
A life interest or long-term lease agreement entered into under the former 1976 PA 440 is not invalidated by the repeal of that act...
Section 554.993 Facility Or Person Registered Or Exempt Under Former Act.
A facility or person that was registered or exempt from registration under the former living care disclosure act, 1976 PA 440, immediately before the...

Last modified: October 10, 2016