(1)A long-term care warranty shall be subject to immediate forfeiture whenever the
department determines that any one of the following circumstances exist:
(a)The licensee is in violation of long-term care requirements as specified in
the license and the regulations and has failed to cure such violation although the
licensee has been given written notice thereof pursuant to section 25-11-107 (5) and
has had reasonable time to cure such violation; or
(b)The licensee has failed to provide an acceptable replacement warranty
when:
(I)The licensee's financial warrantor no longer has the financial ability to
carry out obligations under this article; or
(II)The department has received notice or information that the financial
warrantor intends to cancel, terminate, or revoke the wa
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(1) A long-term care warranty shall be subject to immediate forfeiture whenever the
department determines that any one of the following circumstances exist:
(a) The licensee is in violation of long-term care requirements as specified in
the license and the regulations and has failed to cure such violation although the
licensee has been given written notice thereof pursuant to section 25-11-107 (5) and
has had reasonable time to cure such violation; or
(b) The licensee has failed to provide an acceptable replacement warranty
when:
(I) The licensee's financial warrantor no longer has the financial ability to
carry out obligations under this article; or
(II) The department has received notice or information that the financial
warrantor intends to cancel, terminate, or revoke the warranty; or
(c) The licensee has failed to maintain its financial assurance warranty in
good standing as required by section 25-11-110 (6)(a).
(2) (a) A long-term care warranty shall be subject to immediate use and
expenditure by the department whenever the department determines that disposal,
decommissioning, and decontamination requirements specified in the license
conditions and regulations have been satisfied. The department shall give the
licensee written notice of the department's intent to use the long-term care
warranty for long-term care purposes. The notice shall contain findings of fact and
conclusions of law to support its decision and shall direct affected financial
warrantors to deliver to the department the full amounts warranted by applicable
long-term care warranties within not more than thirty days after the date of the
notice.
(b) The licensee may request a hearing on a notice under paragraph (a) of
this subsection (2) that shall be conducted in accordance with section 24-4-105,
C.R.S. Any request for a hearing under this subsection (2) shall be made within
thirty days after the date of the notice and shall not affect the obligation to submit
to the department funds from long-term care warranties unless a stay is granted by
the department or by administrative or judicial order.
(3) The department may request the attorney general, and the attorney
general is authorized, to commence legal proceedings necessary to secure or
recover amounts warranted by long-term care warranties. The attorney general
shall have the power to collect, foreclose upon, present for payment, take
possession of, or dispose of pledged property, and otherwise reduce to cash any
financial assurance arrangement required by this article.
(4) (a) Long-term care funds recovered by the department pursuant to this
section shall be immediately deposited into the long-term care fund created in
section 25-11-113 and shall be used solely for the long-term care for the facility
covered by the financial assurance warranty and to cover the department's
reasonable attorney and administrative costs associated with long-term care for
such facility.
(b) The department or its agent shall have a right to enter property of the
licensee to perform long-term care and monitoring. Upon completion of long-term
care activities, the department shall present to the licensee a full accounting and
shall refund all unspent warranty moneys, including interest.