§ 17b-527 — (Formerly Sec. 17a-367). Information to be made available to commissioner and residents. Facility in financial distress. Regulations. Remediation plan.

(a) A provider operating a facility in this state shall notify the commissioner in writing prior to refinancing its existing indebtedness or making any material change in its business or corporate structure. (b) A provider shall notify the commissioner and the residents at all facilities it operates not less than three months in advance of any changes in ownership of the provider. The commissioner may excuse a provider from the requirements of this section, on a case-by-case basis, if reasonable written notice of the change in ownership is also provided to each residents council at each facility operated by the provider or, if no residents council exists, to each resident. (c) A provider shall provide residents at all facilities it operates not less than thirty days' advance written notice of increases in any monthly service fees charged to the residents, along with an explanation of such increases and an opportunity for dialogue and comments from residents concerning such increases. (d) The commissioner may require a provider operating a facility in this state to submit such information as the commissioner requests if the commissioner has reason to believe that such facility is in financial distress. The commissioner may require a provider constructing a facility in this state to submit such information as the commissioner requests if the commissioner has reason to believe that such facility is at risk of being in financial distress. “Financial distress” means the issuance of a negative going concern opinion, or failure to meet debt service payments, or drawing down on debt service reserve. (e) The commissioner may adopt regulations in accordance with chapter 54 to prescribe additional conditions that constitute financial distress. To the extent that a provider seeks modification, waiver or extension of any of the provider's material financial covenants or material payment terms under a mortgage loan, bond indenture or other long-term financing agreement, the provider shall report such requests in writing to the commissioner with a copy to the applicable residents council of the facility or facilities operated by the provider in this state, not later than seven business days after making such requests. If the commissioner determines that a facility is in financial distress, the provider of that facility shall propose a remediation plan to improve the provider's financial health. Such remediation plan shall be submitted to the commissioner and shall be disclosed to the residents council of the provider. The provider shall file regular reports with the commissioner and the provider's residents council, regarding its progress in meeting its submitted remediation plan. Such reports shall be filed on a quarterly basis or on an alternative schedule established by the commissioner.

Legislative History

(P.A. 86-252, S. 8, 17; P.A. 98-250, S. 25, 39; P.A. 99-282, S. 2, 4; P.A. 15-115, S. 11.) History: Sec. 17-542 transferred to Sec. 17a-367 in 1991; Sec. 17a-367 transferred to Sec. 17b-527 in 1995; P.A. 98-250 added new Subsec. (b) re regulations, effective July 1, 1998; P.A. 99-282 amended Subsec. (a) to require providers to make information filed with the department pursuant to the subsection available to residents during regular business hours, to provide a copy of the most recent filing upon request and to notify residents of the right to view filings and receive such copy, and authorized the commissioner to adopt regulations re financial and actuarial information to be filed, inserted new Subsec. (b) re written notice to the commissioner prior to refinancing existing indebtedness or material change in business or corporate structure, inserted new Subsec. (c) re commissioner's authority to require additional information if the commissioner finds the facility is in financial distress, or at risk of being in financial distress, and defined “financial distress”, and redesignated former Subsec. (b) as Subsec. (d) and substituted “additional conditions that constitute financial distress” for “financial and actuarial information to be filed by a provider ...” re criteria the commissioner may prescribe by regulation, effective July 1, 1999; P.A. 15-115 deleted former Subsec. (a) re annual financial reporting to department, redesignated existing Subsec. (b) as Subsec. (a), added new Subsecs. (b) and (c) re notice of ownership changes and service fee increases, redesignated existing Subsecs. (c) and (d) as Subsecs. (d) and (e), and amended redesignated Subsec. (e) by adding provisions re report of modification, waiver or extension of provider's material financial covenants or payment terms and re remediation plan.