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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0705.01 DFH HOUSE BILL 98­1257

STATE OF COLORADO

BY REPRESENTATIVES S. Williams, Grossman, Saliman, and Clarke;

also SENATOR Weddig.

HEWI

A BILL FOR AN ACT

CONCERNING FORFEITURE PROVISIONS IN AGREEMENTS AFFECTING PERSONS IN FACILITIES PROVIDING RESIDENTIAL CARE.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.)

Provides that persons residing in skilled nursing facilities, intermediate care facilities, and personal care boarding homes have a right to a contract or written 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. States that 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 does not violate the act. Directs that, in the circumstance where the person dies during the term of the contract or lease, any security deposit or rent in excess of any prorated amount shall be returned to the person's estate.


Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  25­1­120 (1), Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PARAGRAPH to read:

25­1­120. Nursing facilities ­ rights of patients. (1) The department shall require all skilled nursing facilities and intermediate care facilities to adopt and make public a statement of the rights and responsibilities of the patients who are receiving treatment in such facilities and to treat their patients in accordance with the provisions of said statement. The statement shall ensure each patient the following:

(o)  THE RIGHT TO A CONTRACT OR LEASE AGREEMENT THAT CONTAINS FAIR LEASE PROVISIONS REGARDING THE FORFEITURE OF ANY SECURITY DEPOSIT AND ANY RENT PAID AND MEETS THE REQUIREMENTS OF SUBSECTION (1.5) OF THIS SECTION.

SECTION 2.  25­1­120, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read:

25­1­120.  Nursing facilities ­ rights of patients. (1.5)  ANY PROVISION IN A CONTRACT OR LEASE AGREEMENT THAT RESULTS IN OR REQUIRES FORFEITURE OF A SECURITY DEPOSIT OR ONE MONTH OR MORE OF RENT OR FORFEITURE OF BOTH IF A PATIENT DIES DURING THE TERM OF THE CONTRACT OR LEASE AGREEMENT SHALL BE DEEMED AGAINST PUBLIC POLICY AND SHALL BE VOID; HOWEVER, INCLUSION OF SUCH A PROVISION SHALL NOT RENDER THE ENTIRE CONTRACT OR LEASE AGREEMENT VOID. A CONTRACT PROVISION OR LEASE AGREEMENT THAT REQUIRES FORFEITURE OF RENT PRORATED ACCORDING TO THE NUMBER OF DAYS THE PATIENT ACTUALLY RECEIVED SERVICES PRIOR TO DEATH DOES NOT VIOLATE THIS SECTION. IN CIRCUMSTANCES IN WHICH THE PATIENT DIES DURING THE TERM OF A CONTRACT OR LEASE AGREEMENT, THE SKILLED NURSING FACILITY OR INTERMEDIATE CARE FACILITY SHALL RETURN THE SECURITY DEPOSIT, THAT PART OF RENT IN EXCESS OF ANY PRORATED AMOUNT, OR BOTH TO THE PATIENT'S ESTATE. FOR PURPOSES OF THIS SECTION, "SECURITY DEPOSIT" SHALL HAVE THE SAME MEANING AS SAID TERM IS DEFINED IN SECTION 38­12­102 (2), C.R.S. THIS SUBSECTION (1.5) APPLIES TO ANY FACILITY, OR A DISTINCT PART OF A FACILITY, THAT MEETS THE STATE NURSING HOME LICENSING STANDARDS IN SECTION 25­1­107 (1) (l) (I) AND THE LICENSING REQUIREMENTS SPECIFIED IN SECTION 25­3­301.

SECTION 3.  25­27­104 (2) (e), Colorado Revised Statutes, is amended to read:

25­27­104.  Minimum standards for personal care boarding homes ­ rules. (2)  Regulations promulgated by the state board pursuant to subsection (1) of this section shall include, as a minimum, provisions requiring the following:

(e)  Protection of the individual rights of residents either through a written board and care plan or by means of contracts executed with the residents; EXCEPT THAT ANY PLAN OR CONTRACT SHALL MEET THE REQUIREMENTS STATED IN SECTION 25­27­104.5.

SECTION 4.  Article 27 of title 25, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:

25­27­104.5. Requirements governing forfeiture of security deposits and rent. A LEASE PROVISION IN A WRITTEN BOARD AND CARE PLAN OR IN A CONTRACT SIGNED BY A RESIDENT OF A PERSONAL CARE BOARDING HOME THAT RESULTS IN OR REQUIRES FORFEITURE OF A SECURITY DEPOSIT OR ONE MONTH OR MORE OF RENT OR FORFEITURE OF BOTH IF A PATIENT DIES DURING THE TERM OF THE CONTRACT OR LEASE AGREEMENT SHALL BE DEEMED TO BE AGAINST PUBLIC POLICY AND SHALL BE VOID; HOWEVER, INCLUSION OF SUCH A PROVISION SHALL NOT RENDER THE ENTIRE PLAN OR CONTRACT VOID. A LEASE PROVISION IN A WRITTEN BOARD AND CARE PLAN OR IN A CONTRACT THAT REQUIRES FORFEITURE OF RENT PRORATED ACCORDING TO THE NUMBER OF DAYS THE RESIDENT ACTUALLY RECEIVED SERVICES PRIOR TO DEATH DOES NOT VIOLATE THIS SECTION. IN CIRCUMSTANCES IN WHICH THE RESIDENT DIES DURING THE TERM OF A CONTRACT OR LEASE AGREEMENT, THE PERSONAL CARE BOARDING HOME SHALL RETURN THE SECURITY DEPOSIT, THAT PART OF RENT IN EXCESS OF ANY PRORATED AMOUNT, OR BOTH TO THE RESIDENT'S ESTATE. FOR PURPOSES OF THIS SECTION, "SECURITY DEPOSIT" SHALL HAVE THE SAME MEANING AS SAID TERM IS DEFINED IN SECTION 38­12­102 (2), C.R.S.

SECTION 5. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.