COMMITTEE SUBSTITUTE

FOR

H. B. 4438

(By Delegates Marshall, C. White, Beane, Leach,

Walters, Compton and Stephens)

(Originating in the Committee on Health and Human Resources)


[February 27, 2002]


A BILL to amend and reenact section seven, article five-c, chapter sixteen of the code of West Virginia, one thousand nine hundred thirty-one, as amended; to amend and reenact section seven, article five-d of said chapter; to amend and reenact section seven, article five-h of said chapter; and to amend and reenact section seven, article five-n of said chapter, all relating to requiring advance notice of costs, cost increases and procedures for termination of stay in nursing homes, personal care homes, residential board and care homes and residential care communities.

Be it enacted by the Legislature of West Virginia:
That section seven, article five-c, chapter sixteen of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; and that section seven, article five-d of said chapter be amended and reenacted; that section seven, article five-h of said chapter be amended and reenacted; and that section seven, article five-n of said chapter be amended and reenacted, all to read as follows:
CHAPTER 16. PUBLIC HEALTH

ARTICLE 5C. NURSING HOMES.
§16-5C-7. Cost disclosure; surety for resident funds.
(a) Each nursing home shall disclose in writing to all every prospective residents at the time of admission a complete and accurate statement that lists all of all the costs which that may be incurred by the resident. them; and The statement shall also provide that the nursing home shall give notify the residents written notice of any increase in any listed cost to be paid by the resident during the resident's stay at least sixty thirty days in advance of changes in costs prior to the effective date of the increase. The nursing home shall make available copies of the list in the nursing home's business office for inspection. Residents may not be liable for any cost not so disclosed.
(b) The initial costs charged to a resident by a nursing home may be increased no sooner than three months after the first night residency begins. An increase is not effective unless the personal care home notifies the resident and care helper, if any, at least sixty days prior to the effective date of the increase.
(c) Before a prospective resident moves personal belongings into a nursing home, the nursing home shall provide the prospective resident with a written statement of procedures used when the nursing home desires a resident to leave the facility, including a description of any termination notice, the time period in which the termination notice may be delivered and the manner of delivery.
(d) All notices required by this section shall be in writing and provided to the resident and to the care helper designated by the resident, if any, at the care helper's address.
(b) (e) If the nursing home handles any money for residents within the facility, the licensee or his or her authorized representative shall either: (1) Give a bond; or (2) obtain and maintain commercial insurance with a company licensed in this state in an amount consistent with this subsection and with the surety as the director shall approve. The bond or insurance shall be upon condition that the licensee shall hold separately and in trust all residents' funds deposited with the licensee, shall administer the funds on behalf of the resident in the manner directed by the depositor, shall render a true and complete account to the depositor and the director when requested, and at least quarterly to the resident, and upon termination of the deposit, shall account for all funds received, expended, and held on hand. The licensee shall file a bond or obtain insurance in a sum at least one and twenty-five one-hundredths the average amount of funds deposited with the nursing home during the nursing home's previous fiscal year.
(f) The This insurance policy required by this section shall specifically designate the resident as the beneficiary or payee reimbursement of lost funds. Regardless of the type of coverage established by the facility, the facility shall reimburse, within thirty days, the resident for any losses directly and seek reimbursement through the bond or insurance itself. Whenever the director determines that the amount of any bond or insurance required pursuant to this subsection is insufficient to adequately protect the money of residents which is being handled, or whenever the amount of any such bond or insurance is impaired by any recovery against the bond or insurance, the director may require the licensee to file an additional bond or insurance in such amount as necessary to adequately protect the money of residents being handled.
(g) The provisions of this subsections (e) and (f) do not apply if the licensee handles less than thirty-five dollars per resident per month in the aggregate.
 ARTICLE 5D. PERSONAL CARE HOMES.
§16-5D-7. Cost disclosure; increase in costs; surety for residents' funds.

(a) Each personal care home shall disclose in writing to all every prospective residents a complete and accurate statement that lists all of all the costs which that may be incurred by them the resident. The statement shall also provide that the personal care home will give the resident written notice of any increase in any listed cost to be paid by the resident during the resident?s stay at least sixty days prior to the effective date of the increase. Residents are not liable for any cost not so disclosed.
(b) The initial costs charged to a resident by a personal care home may be increased no sooner than three months after the first night residency begins. An increase is not effective unless the personal care home notifies the resident and care helper, if any, at least sixty days prior to the effective date of the increase.
 (c) Before a prospective resident moves personal belongings into a personal care home, the personal care home shall provide the prospective resident with a written statement of procedures used when the personal care home desires a resident to leave the facility, including a description of any termination notice, the time period in which the termination notice may be delivered and the manner of delivery.
(d) All notices required by this section shall be in writing and provided to the resident and to the care helper designated by the resident, if any, at the care helper's address.
(b) (e) If the personal care home handles any money for residents within the personal care home, the licensee or his or her authorized representative shall give a bond in an amount consistent with this subsection and with such surety as the director shall approve. The bond shall be upon condition that the licensee shall hold separately and in trust all residents' funds deposited with the licensee, shall administer the funds on behalf of the resident in the manner directed by the depositor, shall render a true and complete account to the depositor and the director when requested, and at least quarterly to the resident, and upon termination of the deposit, shall account for all funds received, expended, and held on hand. The licensee shall file a bond in a sum to be fixed by the director based upon the magnitude of the operations of the applicant, but which sum may not be less than two thousand five hundred dollars.
(f) Every person injured as a result of any improper or unlawful handling of the money of a resident of a personal care home may bring an action in a proper court on the bond required to be posted by the licensee pursuant to this subsection for the amount of damage suffered as a result thereof of the improper or unlawful handling, to the extent covered by the bond. Whenever the director determines that the amount of any bond which is filed pursuant to this subsection is insufficient to adequately protect the money of residents which is being handled, or whenever the amount of any bond is impaired by any recovery against the bond, the director may require the licensee to file an additional bond in such an amount as necessary to adequately protect the money of residents being handled: Provided, That the provisions of this subsections (e) and (f) do not apply if the licensee handles less than twenty-five dollars per resident and less than five hundred dollars for all residents in any month.
ARTICLE 5H. RESIDENTIAL BOARD AND CARE HOMES.
 §16-5H-7. Cost disclosure; surety for residents' funds.
(a) Each residential board and care home shall disclose in writing to all every prospective residents a complete and accurate statement that lists all of all the costs which that may be incurred by them the resident. The statement shall also provide that the residential board and care home will give the resident written notice of any increase in any listed cost to be paid by the resident during the resident's stay at least sixty days prior to the effective date of the increase. Residents are not liable for any cost not so disclosed.
(b) The initial costs charged to a resident by a residential board and care home may be increased no sooner than three months after the first night residency begins. An increase is not effective unless the residential board and care home notifies the resident and care helper, if any, at least sixty days prior to the effective date of the increase.
(c) Before a prospective resident moves personal belongings into a residential board and care home, the residential board and care home shall provide the prospective resident with a written statement of procedures used when the residential board and care home desires a resident to leave the facility, including a description of any termination notice, the time period in which the termination notice may be delivered and the manner of delivery.
(d) All notices required by this section shall be in writing and provided to the resident and to the care helper designated by the resident, if any, at the care helper's address.
 (b) (e) If the residential board and care home handles any money for residents within the residential board and care home, the licensee or his or her authorized representative shall give a bond in an amount consistent with this subsection and with such surety as the director shall approve. Such bond shall be upon condition that the licensee shall hold separately and in trust all residents' funds deposited with the licensee, shall administer the funds on behalf of the resident in the manner directed by the depositor, shall render a true and complete account to the depositor and the director when requested, and at least quarterly to the resident, and upon termination of the deposit, shall account for all funds received, expended, and held on hand. The licensee shall file a bond in a sum to be fixed by the director based upon the magnitude of the operations of the applicant, but which sum may not be less than two thousand five hundred dollars.
(c) (f) Every person injured as a result of any improper or unlawful handling of the money of a resident of a residential board and care home may bring an action in a proper court on the bond required to be posted by the licensee pursuant to this subsection for the amount of damage suffered as a result thereof of the improper or unlawful handling to the extent covered by the bond. Whenever the director determines that the amount of any bond which is filed pursuant to this subsection is insufficient to adequately protect the money of residents which is being handled, or whenever the amount of any such bond is impaired by any recovery against the bond, the director may require the licensee to file an additional bond in such amount as necessary to adequately protect the money of residents being handled.
(d)(g) The provisions of this subsections (e) and (f) do not apply if the licensee handles less than twenty-five dollars per resident and less than five hundred dollars for all residents in any month.
ARTICLE 5N. RESIDENTIAL CARE COMMUNITIES.
 §16-5N-7. Cost disclosure; residents' funds; nursing care; fire code.
(a) Each residential care community shall disclose in writing to all every prospective residents a complete and accurate statement that lists all of all the costs which that may be incurred by them as the residents of in the community. The statement shall also provide that the residential care community will give the resident written notice of any increase in any listed cost to be paid by the resident during the resident's stay at least sixty days prior to the effective date of the increase. Residents may not be held liable for any cost that was not disclosed.
(b) The initial costs charged to a resident by a residential care community may be increased no sooner than three months after the first night residency begins. An increase is not effective unless the residential care community notifies the resident and care helper, if any, at least thirty days prior to the effective date of the increase.
(c) Before a prospective resident moves personal belongings into a residential care community, the residential care community shall provide the prospective resident with a written statement of procedures used when the residential care community desires a resident to leave the facility, including a description of any termination notice, the time period in which the termination notice may be delivered and the manner of delivery.
(d) All notices required by this section shall be in writing and provided to the resident and to the care helper designated by the resident, if any, at the care helper's address.
 (b) (e) Residential care communities may not manage the personal finances or funds of its residents.
(c) (f) A residential care community may be required to have registered nurses on its staff to the extent that it provides limited and intermittent nursing care.
(d) (g) Residential care communities shall comply with the applicable provisions of the current edition of the life safety code as promulgated by the national fire protection association and adopted by the state fire commission.