Oregon Statutes 101.050 – Preparation of disclosure statement by provider; notice and review of statement by prospective residents; contents of statement
(1) After entry of an order registering the provider and before the provider enters into any residency agreement with or on behalf of the prospective resident, the provider shall notify prospective residents of their right to review the initial disclosure statement and shall make copies of the statement available upon request. The initial disclosure statement shall be available during regular business hours in the business office of the continuing care retirement community. The text of the initial disclosure statement shall contain the following information:
Terms Used In Oregon Statutes 101.050
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Affiliated organization: means any profit or not-for-profit corporation, limited liability company, partnership, sole proprietorship, sponsoring entity or other form of legal entity:
(a) That is the lessor of the real property on which the facilities of the provider are situated;
(b) That a provider has identified in its disclosure statement pursuant to ORS § 101. See Oregon Statutes 101.020
- Audited financial statement: means a provider's financial statement that has been prepared in accordance with generally accepted accounting principles and that has been audited by an independent certified public accountant in accordance with generally accepted auditing standards and includes notes to the financial statement that state whether or not the continuing care retirement community is in compliance with its reserve requirements. See Oregon Statutes 101.020
- CCRC: means any provider that is registered with the Department of Human Services and agrees to furnish continuing care to a resident under a residency agreement. See Oregon Statutes 101.020
- Continuing care: means directly furnishing or indirectly making available, upon payment of an entrance fee and under a residency agreement, housing and health related services for a period greater than one year to an individual not related by blood or marriage to the continuing care retirement community provider that is furnishing care. See Oregon Statutes 101.020
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Embezzlement: In most states, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. Source: OCC
- Entrance fee: means an initial or deferred transfer to a provider of a sum of money or other property made or promised to be made as full or partial consideration for acceptance of one or more residents in a continuing care retirement community. See Oregon Statutes 101.020
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Fraud: Intentional deception resulting in injury to another.
- Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
- Living unit: means a room, apartment, cottage or other area set aside for the exclusive use of the resident. See Oregon Statutes 101.020
- Manager: means a person, corporation, partnership, association or other legal entity that enters into a contractual arrangement with the provider to manage the continuing care retirement community. See Oregon Statutes 101.020
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- New continuing care retirement community: means a continuing care retirement community registered by a provider on or after January 1, 1990. See Oregon Statutes 101.020
- Open bed long term care facility: means a licensed long term care facility in a continuing care retirement community that admits persons who have not signed a residency agreement. See Oregon Statutes 101.020
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: includes individuals, corporations, associations, firms, partnerships, limited liability companies and joint stock companies. See Oregon Statutes 174.100
- Provider: means an owner or operator, whether a natural person, partnership, trust, limited liability company, corporation or unincorporated association, however organized, of a new or existing continuing care retirement community, whether operated for profit or not, that provides, plans to provide or agrees to provide continuing care to one or more unrelated residents under a residency agreement. See Oregon Statutes 101.020
- Regular periodic charges: means basic monthly fees charged to a resident on an ongoing basis. See Oregon Statutes 101.020
- Residency agreement: means a contract between a provider and a resident for the provision of continuing care for a period greater than one year. See Oregon Statutes 101.020
- Resident: means a person who enters into a residency agreement with a provider or who is designated in a residency agreement to be a person being provided with continuing care. See Oregon Statutes 101.020
(a) The rights and requirements contained in ORS § 101.115.
(b) The names of the individual or individuals who constitute the provider or, if the provider is a partnership, limited liability company, corporation or other legal entity, whether for profit or not for profit, the name of the legal entity and each of the officers, directors, trustees or managing general partners of the legal entity and a description of each individual’s duties on behalf of the legal entity.
(c) The business address of the provider and a statement of whether the provider is an individual, partnership, limited liability company, corporation or other legal entity.
(d) The names and business addresses of any individual having any more than a 10 percent direct or indirect ownership or beneficial interest in the provider, the percentage of the direct or indirect ownership or beneficial interest and a description of each individual’s interest in or occupation with the provider.
(e)(A) A statement as to whether the provider is or is not affiliated with any other organization of any kind, the extent of the affiliation, if any, and the extent to which any of the affiliated organizations are responsible for the financial and contractual obligations of the provider; and
(B) The provision of the Internal Revenue Code, if any, under which the provider or any affiliated organization is exempt from the payment of federal income taxes.
(f) The location and general description of the continuing care retirement community, including the location and number of living units and licensed long term care beds considered part of the CCRC, and any other care facilities owned or operated by the provider. The provider must disclose the following about any proposed continuing care retirement community or other care facilities:
(A) The estimated completion date or dates;
(B) A statement as to whether or not construction has begun; and
(C) Any contingencies subject to which construction may be deferred.
(g) The number of open bed long term care facility beds operated by the CCRC.
(h) A description of services provided or proposed to be furnished by the provider under its residency agreements including, without limitation:
(A) The extent to which medical care, long term care or health related services are furnished, and the locations where the services will be furnished. If the services are furnished at a facility that is not registered as part of the CCRC’s campus, the provider shall state the location where the services are furnished and any additional fees associated with the services; and
(B) The services made available by the continuing care retirement community at an extra charge over and above the entrance fee.
(i) A description of all fees required of each resident, including the entrance fee, regular periodic charges and the manner in which any additional fees or regular periodic charges will be determined. The description shall include:
(A) The circumstances under which the resident will be permitted to remain in the continuing care retirement community in the event the resident is unable to pay regular periodic or other charges;
(B) The terms and conditions under which the residency agreement may be canceled by the provider or the resident or in the event of the death of the resident prior to or following occupancy of the living unit;
(C) The percentage of the entrance fee refund required by ORS § 101.080 and the manner in which this percentage is calculated;
(D) The conditions under which a living unit occupied by a resident may be made available by the provider to another resident other than on the death of the resident executing the residency agreement;
(E) The manner by which the provider may adjust regular periodic charges or other recurring fees;
(F) A statement of the fees to be charged if the resident marries or divorces while at the designated continuing care retirement community, the terms concerning a resident’s spouse’s entry to or departure from a CCRC and the consequences if a new spouse does not meet the requirements for entry; and
(G) The terms and conditions for the transfer of a resident out of the CCRC.
(j) The provider’s most recent audited financial statement prepared in accordance with generally accepted accounting principles by a certified public accountant. This audited financial statement must not have been prepared more than 16 months prior to the date of the initial application for registration.
(k) A copy of the residency agreement or agreements offered to the prospective resident by the provider.
(L) A statement on the cover page in a prominent location and typeface that registration of the continuing care retirement community does not constitute approval, recommendation or indorsement of the CCRC by the Department of Human Services, and that such registration does not evidence the accuracy or completeness of the information set forth in the disclosure statement.
(m) Copies of the primary written brochures and written promotional materials furnished to prospective residents.
(n) A full description of all contracts that the provider has entered into with affiliated organizations and an explanation of the financial impact that the contracts may have on residents.
(o) An affidavit signed by an authorized representative of the CCRC confirming that the application and disclosure statement are complete and accurate.
(2) Any individual or legal entity named in subsection (1)(b) or (d) of this section and any proposed or existing manager must disclose:
(a) Business experience in operation or management of the continuing care retirement community or other licensed long term care facilities;
(b) Whether the person has been convicted of a crime;
(c) Whether the person has been a party to any civil action in which a judgment for damages was obtained or in which an injunction was issued against the person for fraud, embezzlement, fraudulent conversion or misappropriation of property;
(d) Whether the person has had any state or federal permits or licenses suspended or revoked, or if a state or federal authority has disqualified the person from providing services in the Medicare or Medicaid program in connection with the person’s business activities; and
(e) The identity of any business or professional service entity in which the person has a 10 percent or greater ownership interest and which the provider intends to employ to provide goods, services or any other things of value.
(3) In the event subsection (2)(e) of this section applies, the person must disclose the anticipated costs to the provider or a statement that such costs cannot presently be estimated.
(4) In addition to complying with all the provisions of this section, the provider must submit on behalf of a new continuing care retirement community a statement of the anticipated source and application of funds used or to be used in the purchase or construction of the CCRC, including:
(a) An estimate of the cost of purchasing or constructing and equipping the CCRC that the provider expects to incur or become obligated for prior to the commencement of the operation of the CCRC;
(b) A description of any mortgage loan or other long term financing intended to be used for the financing of the CCRC;
(c) An estimate of the total entrance fees to be received from the residents at or prior to the commencement of operation of the continuing care retirement community based on projected occupancy at the time the CCRC commences operation; and
(d) An estimate of the funds, if any, anticipated to be necessary to pay for start-up losses. [1989 c.693 § 8; 1997 c.633 § 5; 2009 c.201 § 3]