1296-S2 AMH MACR BLAC 033
2SHB 1296 - H AMD 215
By Representative Macri
ADOPTED 03/08/2019
On page 7, line 38, after "ending" strike "after January 1" and insert "on or after December 31"
On page 8, beginning on line 4, after "(B)" strike all material through "amounts" on line 19 and insert "For those cases in which a management company controls a continuing care retirement community, to the extent that it may be ascertained using reasonable, good faith efforts, the following information:
(I) The dollar amount of management fees, paid directly or indirectly from resident funds, including entrance fees, expended by the management company to provide management services and products for the community, and may include a reasonable allocation of amounts spent for multiple continuing care retirement communities or life care contracts;
(II) The dollar amount of management fees paid by the management company to entities controlled by or under common control with the management company to provide management services or products for the continuing care retirement community, including the names of the entities; and
(III) The amount and terms of any outstanding loans from the continuing care retirement community to the management company or any entity controlled by the management company or under common control with the management company"
On page 10, beginning on line 17, after "participate" strike all material through "security" on line 18 and insert "in significant decisions affecting the resident's health, welfare, and financial security. Management retains its decision-making authority as provided in the residency agreement and applicable law"
| EFFECT: Delays the application of changes to financial statement disclosures from fiscal years ending after January 1, 2019, to fiscal years ending on or after December 31, 2019.
Removes the requirement that financial statements disclose management fees and other compensation paid by the continuing care retirement community (CCRC) to a management company that controls the CCRC, including a detailed summary of how the money was spent by the management company and an itemization of expenditures that were not for the direct benefit of the CCRC. Replaces the management company reporting with a requirement that financial statements disclose (1) the amount of management fees spent by the management company to provide management services and products for the CCRC, (2) the amount of management fees paid by the management company to entities controlled by the management company to provide management services or products for the CCRC, and (3) the amount and terms of any outstanding loans from the CCRC to the management company or entity controlled by the management company.
Changes the resident expectation to be able to participate "meaningfully" in decisions affecting the resident to remove the term "meaningfully" and specify that the expectation applies to "significant" decisions. Clarifies that CCRC management retains its decision-making authority as provided in the residency agreement and applicable law.
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