SENATE PUBLIC AFFAIRS COMMITTEE SUBSTITUTE FOR
SENATE BILL 334
50th legislature - STATE OF NEW MEXICO - first session, 2011
AN ACT
RELATING TO DISABLED AND ELDERLY RESIDENTIAL SERVICES; REQUIRING THAT OWNERS OR OPERATORS OF LONG-TERM CARE AND ADULT RESIDENTIAL CARE FACILITIES PROVIDE THE SECRETARY OF HEALTH WITH CERTAIN DISCLOSURES AS A CONDITION OF LICENSING OR RENEWAL OF LICENSURE; PROVIDING FOR DENIAL OF LONG-TERM CARE AND ADULT RESIDENTIAL FACILITY LICENSURE FOR PRIOR CRIMINAL ACTS OR CIVIL VIOLATIONS BY OWNERS OR OPERATORS; REQUIRING THE SECRETARY OF AGING AND LONG-TERM SERVICES AND THE SECRETARY OF HEALTH TO UNDERTAKE A STUDY OF THE HEALTH AND SAFETY NEEDS AND CHALLENGES OF RESIDENTS OF SUPPORTIVE RESIDENCES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Public Health Act is enacted to read:
"[NEW MATERIAL] LONG-TERM CARE AND ADULT RESIDENTIAL CARE FACILITIES--DISCLOSURES--BACKGROUND INVESTIGATIONS--CONDITION OF LICENSING.--
A. In addition to ensuring that an adult residential care facility meets the requirements of Section 24-1-5 NMSA 1978, the department shall license an adult residential care facility or renew its license only if the adult residential care facility provides the department with a current annual disclosure statement that includes the following information:
(1) the name and business address of the adult residential care facility;
(2) if the adult residential care facility is owned or operated by a partnership, corporation or association, the names and addresses of its officers, directors, trustees, partners, managers and affiliates;
(3) disclosure of any felony conviction of the owner or operator;
(4) whether the owner or operator has been held liable or enjoined in a civil action in any jurisdiction by final judgment, if the civil action involved fraud, embezzlement, fraudulent conversion or misappropriation of property;
(5) whether the owner or operator has had a state or federal license or permit to operate an adult residential care facility suspended or revoked or had any state or federal agency or industry regulatory agency commence an action against the adult residential care facility owner or operator;
(6) a statement as to whether the adult residential care facility owner or operator is, or is associated with another entity that is, responsible for the financial and contractual obligations of the adult residential care facility owner or operator, and the extent to which the associate entity is responsible;
(7) the location and description of any adult residential care facilities or other long-term services facilities that the adult residential care facility owner or operator, or an associated entity, operates or owns any interest;
(8) if the adult residential care facility owner or operator is a corporation, a copy of the articles of incorporation; if the adult residential care facility owner or operator is a partnership or other unincorporated association, a copy of the partnership agreement, articles of association or other membership agreement; and if the adult residential care facility owner or operator is a trust, a copy of the trust agreement or instruments; and
(9) resumes of the adult residential care facility owner or operator's officers, directors, trustees, partners or managers.
B. The department shall deny a license to an adult residential care facility if the facility owner or operator or any of its officers, directors, trustees, partners, managers or affiliates, within ten years prior to the date of application
was convicted of a felony, a crime that if committed in New Mexico would be a felony or any crime having to do with the provision of long-term or adult residential facility care.
C. The secretary may deny a license or renewal of a license after a finding based upon substantial evidence that an adult residential care facility's owner or operator has engaged in a pattern or practice of civil violations related to fraudulent acts or resident health, safety or quality of life, or has had a prior license to operate a facility suspended or revoked for these reasons.
D. As used in this section:
(1) "adult residential care facility" means:
(a) any adult care facility institution required to be licensed under state law as an adult residential care facility by the public health division of the department of health, whether proprietary or nonprofit, including skilled long-term care facilities;
(b) a facility that is licensed by the department of health as an assisted living facility; or
(c) any residential care provider serving recipients of services under the developmental disabilities waiver or the coordinated long-term services waiver;
(2) "long-term care facility" means an intermediate care facility, an intermediate care facility for the mentally retarded or a skilled nursing facility;
(3) "operator" means a person who carries out the daily administration, management and maintenance for the actual operation of an adult residential care facility; and
(4) "owner" means one or more persons, jointly or severally, in whom is vested:
(a) all or part of the legal title to property, but shall not include the limited partner in an association regulated under the Uniform Revised Limited Partnership Act; or
(b) all or part of the beneficial ownership and a right to present use and enjoyment of the premises and agents thereof and includes a mortgagee in possession and the lessors."
SECTION 2. [NEW MATERIAL] DISABLED AND ELDERLY RESIDENCES--STUDY--REPORTING.--
A. The secretary of aging and long-term services and the secretary of health shall conduct a study of the health and safety needs and challenges of residents of supportive residences in the state and provide recommendations for legislation regarding the operation of supportive residences in a manner that provides quality living environments and greater protection from abuse, fraud and exploitation for residents of supportive residences. By October 1, 2011, the secretary of aging and long-term services and the secretary of health shall report their findings and recommendations to the legislative health and human services committee. These recommendations shall include:
(1) whether supportive residences should be licensed or certified as supportive residences and an identification of the proper state agency for licensure or certification and related rulemaking;
(2) the types of disclosures and background checks that should be required, if any, of owners and operators of supportive residences;
(3) the type and frequency of any investigations of supportive residences, and the agency best suited to perform them; and
(4) identification of funding sources for carrying out any requirements for licensure, certification, investigation or other recommended actions to protect residents and maintain a quality living environment in supportive residences.
B. As used in this section, "supportive residence" means a residence that:
(1) operates as a residence exclusively for disabled individuals or individuals over the age of fifty-five or provides on-site attendant, medical, meal or housekeeping services pursuant to a lease or other agreement; and
(2) is not a residence regulated pursuant to the provisions of the Continuing Care Act.
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