Colorado Legislative Council Staff
NO FISCAL IMPACT
Rep. S. Williams
February 4, 1998
Janis Baron (866-3523)
TITLE: CONCERNING FORFEITURE PROVISIONS IN AGREEMENTS AFFECTING PERSONS IN FACILITIES PROVIDING RESIDENTIAL CARE.
Summary of Assessment
The bill includes the following provisions:
• persons residing in skilled nursing facilities, intermediate care facilities, and personal care boarding homes have a right to a contract or lease agreement that contains fair lease provisions concerning the forfeiture of any security deposit or rent paid;
• states that any contract clause or lease provision that results in or requires forfeiture of a security deposit or one month or more of rent or forfeiture of both the security deposit and rent if a person residing in a nursing home facility, including a skilled nursing facility, intermediate care facility, or personal care boarding home, dies during the term of the contract or lease shall be deemed against public policy and void;
• allows for a contract or lease provision that requires forfeiture of rent prorated according to the number of days the person actually received services prior to death; and
• directs that when a person dies during the term of a contract or lease, any security deposit or rent in excess of any prorated amount shall be returned to the person's estate.
The bill is effective upon signature of the Governor.
As part of its licensure and oversight responsibilites, the Department of Public Health and Environment (DPHE) must require residential care facilities to adopt and make public the requirements of this bill. DPHE will not need additional staff or moneys. The bill places requirements on skilled nursing facilities, intermediate care facilities, and personal care boarding homes. Therefore, the bill is assessed as having no fiscal impact.
Public Health and Environment