First Regular Session
Sixty-second General Assembly
LLS NO. 99-0535.01 Debbie Haskins HOUSE BILL 99-1277
STATE OF COLORADO
BY REPRESENTATIVE Grossman;
also SENATOR Rupert
REENGROSSED JUDICIARY
A BILL FOR AN ACT
101 CONCERNING MANDATORY DISCLOSURE REQUIREMENTS FOR FORFEITURE
102 PROVISIONS IN AGREEMENTS AFFECTING PERSONS IN FACILITIES
103 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.)
Requires mandatory disclosure in clear, understandable language
in bold type of a certain size 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 the rent for a resident in a nursing home facility.
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. Covers skilled nursing
facilities, intermediate care facilities, and personal care boarding homes.
1 Be it enacted by the General Assembly of the State of Colorado:
2 [ SECTION 1. Part 1 of article 1 of title 25, Colorado Revised
3 Statutes, is amended BY THE ADDITION OF A NEW SECTION to
4 read:
5 25-1-120.5. Nursing facilities - mandatory disclosure
6 requirements governing forfeiture of security deposits and rent. (1) IN
7 ORDER TO PROVIDE FOR FULL AND FAIR DISCLOSURE OF A NURSING
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
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1 FACILITY'S POLICIES REGARDING FORFEITURE, ANY CONTRACT OR LEASE
2 AGREEMENT THAT CONTAINS A PROVISION THAT RESULTS IN OR REQUIRES
3 FORFEITURE OF A SECURITY DEPOSIT OR ONE MONTH OR MORE OF RENT OR
4 FORFEITURE OF BOTH SHALL INCLUDE THE PROVISION REGARDING THE
5 FACILITY'S POLICIES ON FORFEITURE IN CLEAR, UNDERSTANDABLE
6 LANGUAGE ON THE FRONT PAGE OF THE CONTRACT OR LEASE AGREEMENT
7 AND IN BOLD PRINT THAT IS IN AT LEAST TWELVE-POINT TYPE. SUCH
8 STATEMENT SHALL INCLUDE WHAT AMOUNT WOULD BE FORFEITED, IF RENT
9 IS PRORATED, HOW SUCH PRORATION IS CALCULATED, AND ALL
10 CONDITIONS OR CIRCUMSTANCES RESULTING IN FORFEITURE, INCLUDING
11 WHETHER DEATH OR VACATION OF THE PREMISES DUE TO UNFORESEEABLE
12 MEDICAL REASONS DURING THE TERM OF THE CONTRACT OR LEASE WOULD
13 RESULT IN FORFEITURE. FOR PURPOSES OF THIS SECTION, "SECURITY
14 DEPOSIT" SHALL HAVE THE SAME MEANING AS SAID TERM IS DEFINED IN
15 SECTION 38-12-102 (2), C.R.S. THE REQUIREMENTS OF THIS SECTION
16 SHALL APPLY TO ALL CONTRACTS OR LEASE AGREEMENTS ENTERED INTO
17 OR RENEWED ON AFTER SEPTEMBER 1, 1999.
18 (2) THIS SECTION APPLIES TO ANY FACILITY, OR A DISTINCT PART
19 OF A FACILITY, THAT MEETS THE STATE NURSING HOME LICENSING
20 STANDARDS IN SECTION 25-1-107 (1) (l) (I) AND THE LICENSING
21 REQUIREMENTS SPECIFIED IN SECTION 25-3-301.
22 SECTION 2. Article 27 of title 25, Colorado Revised Statutes,
23 is amended BY THE ADDITION OF A NEW SECTION to read:
24 25-27-104.5. Mandatory disclosure requirements governing
25 forfeiture of security deposits and rent. IN ORDER TO PROVIDE FOR FULL
26 AND FAIR DISCLOSURE OF THE PERSONAL CARE BOARDING HOME'S POLICIES
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1 REGARDING FORFEITURE, A LEASE PROVISION IN A WRITTEN BOARD AND
2 CARE PLAN OR IN A CONTRACT SIGNED BY A RESIDENT OF A PERSONAL
3 CARE BOARDING HOME THAT CONTAINS A PROVISION THAT RESULTS IN OR
4 REQUIRES FORFEITURE OF A SECURITY DEPOSIT OR ONE MONTH OR MORE
5 OF RENT OR FORFEITURE OF BOTH SHALL INCLUDE THE PROVISION
6 REGARDING THE PERSONAL CARE BOARDING HOME'S POLICIES ON
7 FORFEITURE IN CLEAR, UNDERSTANDABLE LANGUAGE ON THE FRONT PAGE
8 OF THE CONTRACT OR LEASE AGREEMENT AND IN BOLD PRINT THAT IS IN AT
9 LEAST TWELVE-POINT TYPE. SUCH STATEMENT SHALL INCLUDE WHAT
10 AMOUNT WOULD BE FORFEITED, IF RENT IS PRORATED, HOW SUCH
11 PRORATION IS CALCULATED, AND ALL CONDITIONS OR CIRCUMSTANCES
12 RESULTING IN FORFEITURE, INCLUDING WHETHER DEATH OR VACATION OF
13 THE PREMISES DUE TO UNFORESEEABLE MEDICAL REASONS DURING THE
14 TERM OF THE CONTRACT OR LEASE WOULD RESULT IN FORFEITURE. FOR
15 PURPOSES OF THIS SECTION, "SECURITY DEPOSIT" SHALL HAVE THE SAME
16 MEANING AS SAID TERM IS DEFINED IN SECTION 38-12-102 (2), C.R.S. THE
17 REQUIREMENTS OF THIS SECTION SHALL APPLY TO ALL LEASE PROVISIONS
18 OR CONTRACTS ENTERED INTO OR RENEWED ON AFTER SEPTEMBER 1, 1999.
19 SECTION 3. Effective date. This act shall take effect at 12:01
20 a.m. on the day following the expiration of the ninety-day period after
21 final adjournment of the general assembly that is allowed for submitting
22 a referendum petition pursuant to article V, section 1 (3) of the state
23 constitution; except that, if a referendum petition is filed against this act
24 or an item, section, or part of this act within such period, then the act,
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1 item, section, or part, if approved by the people, shall take effect on the
2 date of the official declaration of the vote thereon by proclamation of the
3 governor.
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