                                 CODE OF VIRGINIA

COMMUNITY-BASED CONTINUING CARE DISCLOSURE STATEMENT; AVAILABILITY OF DISCLOSURE
STATEMENT TO PROSPECTIVE PARTICIPANTS (§ 38.2-4920)

A. The initial disclosure statement of each community-based continuing care
program shall contain the following information unless such information is
contained in the CBCC contract and a copy of that contract is attached and made
a part of the initial disclosure statement:

   1. The name and business address of the CBCC provider and a statement of
   whether the provider is a partnership, foundation, association, corporation,
   or other type of business or legal entity;

   2. Full information regarding ownership of the CCRC facility that the CBCC
   provider has operated for the minimum three-year period as required in the
   definition of CBCC provider in &#xA7; 38.2-4918;

   3. A complete listing of all CCRC facilities owned or operated, or both, by
   the CBCC provider and, for each, total liquid assets on the balance sheet and
   current occupancy percentages in independent living units;

   4. The names and business addresses of the officers, directors, trustees,
   managing or general partners, and any person having a 10 percent or greater
   equity or beneficial interest in the CBCC provider, and a description of such
   person&#8217;s interest in or occupation with the provider;

   5. For (i) the CBCC provider, (ii) any person named in response to subdivision
   4, and (iii) the proposed management, if the CBCC program will be managed on a
   day-to-day basis by a person other than an individual directly employed by the
   provider:
   				a. A description of any business experience in the operation or management
   of community-based continuing care or long-term care programs;
   				b. The name and address of any professional service, firm, association,
   foundation, trust, partnership, or corporation or any other business or legal
   entity in which such person has, or which has in such person, a 10 percent or
   greater interest and which it is presently intended will or may provide goods,
   leases, or services to the CBCC provider of a value of $500 or more, within
   any year, including:

      1. A description of the goods, leases, or services and the probable or
      anticipated cost thereof to the CBCC provider;

      2. The process by which the contract was awarded;

      3. Any additional offers that were received; and

      4. Any additional information requested by the Commission detailing how and
      why a contract was awarded; and
      					c. A description of any matter in which such person:

      1. Has been convicted of a felony or pleaded nolo contendere to a criminal
      charge or has been held liable or enjoined in a civil action by final
      judgment, if the crime or civil action involved fraud, embezzlement,
      fraudulent conversion, misappropriation of property, or moral turpitude;

      2. Is subject to an injunctive or restrictive order of a court of record, or
      within the past five years had any state or federal license or permit
      suspended or revoked as a result of an action brought by a governmental
      agency or department, arising out of or relating to business activity or
      health care, including without limitation action affecting a license to
      operate a home care company, foster care facility, nursing home, retirement
      home, home for the aged, or facility registered under this article or
      similar laws in another state; or

      3. Is currently the subject of any state or federal prosecution or
      administrative investigation involving allegations of fraud, embezzlement,
      fraudulent conversion, or misappropriation of property;

   6. A statement as to:
   				a. Whether the CBCC provider is or ever has been affiliated with a
   religious, charitable, or other nonprofit organization, the nature of any such
   affiliation, and the extent to which the affiliate organization is or will be
   responsible for the financial and contractual obligations of the CBCC
   provider; and
   				b. Any provision of the federal Internal Revenue Code under which the CBCC
   provider is exempt from the payment of income tax;

   7. A description of the services provided or proposed to be provided under
   community-based continuing care contracts, including the extent to which
   medical care is furnished or is available pursuant to any arrangement. The
   disclosure statement shall clearly state which services are included in basic
   community-based continuing care contracts and which services are made
   available by the CBCC provider at extra charge. The disclosure statement shall
   also clearly state which services are offered by the CBCC provider and which
   services are offered through contractual arrangements. The name and address of
   the party providing such services shall be disclosed. A definition of the
   services shall also be provided;

   8. A description of all fees required of participants, including any entrance
   fee and periodic charges. The description shall include (i) a description of
   all proposed uses of any funds or property required to be transferred to the
   CBCC provider or any other person prior to the participant&#8217;s enrollment
   in the program and of any entrance fee; (ii) a description of provisions for
   the escrowing and return of any such funds, assets, or entrance fee, the
   manner and any conditions of return, and to whom earnings on escrowed funds
   are payable; and (iii) a description of the manner by which the CBCC provider
   may adjust periodic charges or other recurring fees and any limitations on
   such adjustments. If the program is already in operation, or if the CBCC
   provider operates one or more similar programs within the Commonwealth, there
   shall be included tables showing the frequency and average dollar amount of
   each increase in periodic rates at each program for the previous five years or
   such shorter period that the program has been operated by the CBCC provider;

   9. A description of any provisions that have been made or will be made to
   provide reserve funding or security to enable the CBCC provider to fully
   perform its obligations under community-based continuing care contracts,
   including the establishment of escrow accounts, trusts, or reserve funds,
   together with the manner in which such funds will be invested and the names
   and experience of persons who will make the investment decisions. The
   disclosure statement shall clearly state whether or not reserve funds are
   maintained;

   10. Certified financial statements of the CBCC provider, including (i) a
   balance sheet as of the end of the two most recent fiscal years and (ii)
   income statements of the CBCC provider for the two most recent fiscal years;

   11. A pro forma income statement for the current fiscal year for the
   community-based continuing care program and for the provider of the CBCC;

   12. A description of the CBCC provider&#8217;s criteria for enrollment of
   participants;

   13. A description of the CBCC provider&#8217;s policies regarding
   community-based services to non-participants;

   14. Any other material information concerning the program or the CBCC provider
   that may be required by the Commission or included by the CBCC provider; and

   15. The procedure by which a participant may file a complaint or disclose any
   concerns, to include the CBCC provider&#8217;s process for resolving
   complaints and concerns.

B. The disclosure statement shall state on its cover that the filing of the
disclosure statement with the Commission does not constitute recommendation or
endorsement of the CBCC program by the Commission.

C. A copy of the standard form or forms for CBCC contracts used by the CBCC
provider shall be attached as an exhibit to each disclosure statement.

D. If the Commission determines that the disclosure statement does not comply
with the provisions of this article, it shall have the right to take action
pursuant to &#xA7; 38.2-4931.

E. Three days prior to the execution of a community-based continuing care
contract or the transfer of any money or other property to a provider by or on
behalf of a prospective participant, whichever first occurs, the CBCC provider
shall deliver to the person with whom the CBCC contract is to be entered into a
copy of a disclosure statement with respect to the program in question meeting
all requirements of this article as of the date of its delivery.

HISTORY: 2012, cc. 208, 303.