1. (1) Each life care contract shall be written in a clear and coherent manner using words with common and everyday meanings and shall:

   1. (a) Show the value of all property transferred, including but not limited to donations, subscriptions, fees, and any other amounts initially paid or payable by or on behalf of the prospective resident;
   2. (b) Show all the services that are to be provided by the provider to the prospective resident, including, in detail, all items that the prospective resident will receive, such as board, room, clothing, incidentals, medical care, transportation, and burial, and whether the items will be provided for a designated time period or for life and the monthly charge for the services;
   3. (c) Be accompanied by a financial statement showing in reasonable detail the financial condition of the provider, including a statement of earnings for the previous twenty-four-month period, or such shorter period if the facility has been in operation for a lesser period, that shall be furnished to the prospective resident;
   4. (d) Specify the monthly service fee and whether the fee is subject to adjustment;
   5. (e) Explicitly state what rights, if any, a resident will have to participate either individually or as part of a group of residents in management and financial decisions affecting the facility.

2. (2) A community-based continued care contract must be written in a clear and coherent manner using words with common and everyday meanings and must:

   1. (a) Show the value of all property transferred, including donations, subscriptions, fees, and any other amounts paid or payable by, or on behalf of, the participant;
   2. (b) Show all services that are provided by the CBCC provider to the prospective participant, including, in detail, all items that the participant will receive, whether the items will be provided for a designated time period or for the life of the participant, and the monthly charge for the service;
   3. (c) Be accompanied by a financial statement showing in reasonable detail the financial condition of the CBCC provider, including a statement of earnings for the previous thirty-six months, that must be furnished to the prospective participant;
   4. (d) Describe the physical health, mental health, and financial conditions of the participant under which the CBCC provider may require the participant to end their participation in the program;
   5. (e) Describe the circumstances under which a participant may remain in the program in the event that a participant is unable to produce a required payment;

   6. (f)

      1. (I) Provide that the CBCC provider shall not cancel a community-based continuing care contract with the participant without showing good cause. Good cause is limited to the following:

         1. (A) Proof that the participant is a danger to themself or others;
         2. (B) Persistent nonpayment by the participant of a monthly or periodic fee;
         3. (C) Repeated conduct by the participant that interferes with other participants' quiet enjoyment of a facility or service;
         4. (D) Persistent refusal to comply with written rules and regulations of the program;
         5. (E) A material misrepresentation made intentionally or recklessly by the participant in their application for participation in the program, or related materials, regarding information that, if accurately provided, would result in either the participant not qualifying for participation or a material increase in the cost of providing the care and services provided under the CBCC contract to the participant; or
         6. (F) A material breach by the participant of the terms and conditions of the community-based continuing care contract.
      2. (II) If a CBCC provider intends to cancel a CBCC contract and terminate a participant's participation, the provider must give the participant written notice of, and a reasonable opportunity to cure within a reasonable period, the conduct that warrants the cancellation of the CBCC contract. The notice must specify which of the circumstances described in subsection (2)(f)(I) of this section occurred that warrants termination of the CBCC contract.
   7. (g) Provide in clear and understandable language, in print no larger than the largest type used in the body of the CBCC contract, the terms governing a refund of a portion of the CBCC entrance fee and the manner in which the CBCC provider may use the funds from the CBCC entrance fee if not refunded;
   8. (h) State the terms that a CBCC contract is cancelled by the death of the participant. The CBCC contract may contain a provision to the effect that, upon the death of the participant, the money paid for the community-based continuing care of the participant is considered earned and is property of the CBCC provider.
   9. (i) Provide a participant with at least a thirty-day notice prior to a change in fees, charges, or the scope of care or services, except for changes required by state or federal law.
3. (3) A participant has the right to rescind a CBCC contract and receive a full refund of the CBCC entrance fee within seven days after making an initial deposit or executing the CBCC contract. A participant is not required to begin the provision of care or services outlined in the participant's CBCC contract before the expiration of the seven-day period.
4. (4) If a participant dies before the program begins, or is precluded from participating in the program due to illness, injury, or incapacity, the contract automatically rescinds and the participant or the participant's legal representative must receive a full refund of all money paid to the CBCC provider, except costs specifically incurred by the CBCC provider at the request of the participant and set forth in writing in a separate addendum signed by both parties to the contract.

Source: L. 2017: Entire article added with relocations, (SB 17-226), ch. 159, p. 574, § 1, effective August 9. L. 2025: (2), (3), and (4) added, (HB 25-1184), ch. 210, p. 949, § 8, effective August 6.

Editor's note: This section is similar to former § 12-13-114 as it existed prior to 2017.