Colorado Legislative Council Staff
NO FISCAL IMPACT
February 8, 1999
Janis Baron (303-866-3523)
TITLE: CONCERNING MANDATORY DISCLOSURE REQUIREMENTS FOR FORFEITURE PROVISIONS IN AGREEMENTS AFFECTING PERSONS IN FACILITIES PROVIDING RESIDENTIAL CARE.
Summary of Assessment
The bill requires mandatory disclosure, in clear understandable language in bold type in at least a 12 point type, in a contract or lease provision of any policy that results in forfeiture of a security deposit or rent or forfeiture of both the security deposit and rent for a resident in a nursing home facility. The bill specifies what must be disclosed, including whether death or vacation of the premises for unforeseeable medical reasons during the term of the contract or lease would result in forfeiture. These provisions cover skilled nursing facilities, intermediate care facilities, and personal care boarding homes. The bill is effective 90 days upon adjournment unless a referendum petition is filed and approved by the voters.
The Department of Health Care Policy and Financing states that nursing facilities, adult care facilities, and adult foster care providers do not take deposits for Medicaid clients. The Department of Human Services does not assess security deposits or rent forfeitures in state-operated facilities. Additionally, if such policy is practiced by its contract facilities, the bill's mandatory disclosure requirements would pertain to the contractor. Therefore, the bill is assessed as having no fiscal impact on state or local agencies of government.
Health Care Policy and Financing
Public Health and Environment
Omissions and Technical or Mechanical Defects
The Department of Public Health and Environment indicates that the bill is in conflict with Section 25-1-108 (3), C.R.S., which provides that the department shall not promulgate any rule, regulation or standard which limits or interferes with the ability of an individual to enter into a contract with a private pay facility concerning the programs or services provided at the private pay facility. These facilities, which include nursing homes and personal care boarding homes, are defined as those that do not get state or federal funding. The bill's provisions apply to all licensed facilities, including private pay.