Governor DeSantis Signs House Bill 1033/Continuing Care Contracts

The Florida Life Care Residents Association (FLiCRA) is applauding Governor Ron DeSantis for signing House Bill 1033 late last month. The new law goes into effect in January 2020. Section 651.034, F.S., of the law establishes a framework of required actions if a provider falls below specified levels of three key indicators at the time of the annual report: occupancy, days cash on hand, and the debt service coverage ratio. It also creates a definition for "impaired" to allow for earlier intervention by the state's Office of Insurance Regulation (or OIR), the goal being to prevent harm to Florida consumers. Furthermore, the definition of "manager," "management," or "management company" is codified under the new law, and accompanying provisions close a loophole that has permitted management serving without a written contract to evade regulation.