ASSEMBLY, No. 1639

STATE OF NEW JERSEY

214th LEGISLATURE

PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION

Sponsored by:

Assemblywoman  CONNIE WAGNER

District 38 (Bergen)

Assemblywoman  VALERIE VAINIERI HUTTLE

District 37 (Bergen)

SYNOPSIS

     Requires notification of certain fee increases by assisted living residences within certain time frames.

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel

An Act concerning assisted living residences and supplementing Title 26 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

     1.  a.  An assisted living residence shall, at least 45 days prior to an increase in the fees that it charges to its residents, provide written notification to a resident or the resident's legal representative, as appropriate, of the increase and set forth in the notification:

     (1) the amount of the increase;

     (2) the reason for the increase; and

     (3) a description of the methodology used to determine the amount of the increase, including, but not limited to, a general description of the additional costs.

     b.  In the event the rate of the increase in subsection a. of this section exceeds 10%, written notification to the resident or legal representative shall be provided at least 90 days prior to the increase.

     c.  The provisions of this section shall not apply to a fee increase for an optional service provided to a resident by an individual, health care professional, or organization under a separate fee-for-service arrangement with the resident.

     2.  An assisted living residence shall not charge a rate increase to a resident as a nonrecurring lump-sum assessment.  In lieu thereof, an increase shall be added to the monthly rate, amortized over a 12-month period.  Written notification of the increase to the resident shall be provided in accordance with the provisions of section 1 of this act.

     3.  Pursuant to the "Administrative Procedure Act," P.L.l968, c.410 (C.52:14B-1 et seq.), the Commissioner of Health and Senior Services shall adopt rules and regulations necessary to effectuate the purposes of this act.

     4.  This act shall take effect on the 180th day after the date of enactment, but the Commissioner of Health and Senior Services may take such anticipatory administrative action in advance thereof as shall be necessary for the implementation of this act.

STATEMENT

     This bill concerns increases in fees at assisted living residences and requires written notification of fee increases, within certain time frames, to the residents or their legal representatives.

     Specifically, the bill requires an assisted living residence to provide written notification of the fee increase to a resident or his legal representative at least 45 days prior to the increase.  If the rate of the increase exceeds 10%, written notification must be provided at least 90 days prior to the increase.

     The notification must set forth: the amount of the increase; the reason for the increase; and a description of the methodology used to determine the amount of the increase, including, but not limited to, a general description of the additional costs.

     These provisions do not apply to a fee increase for an optional service provided to a resident by an individual, health care professional, or organization under a separate fee-for-service arrangement with the resident.

     The bill also provides that an assisted living residence shall not charge a rate increase to a resident as a nonrecurring lump-sum assessment.  Instead, an increase must be added to the monthly rate, amortized over a 12-month period.  Written notification of the increase to the resident must be provided as specified above.

     The bill has a delayed effective date of 180 days following the date of enactment, and allows for rule making by the Commissioner of Health and Senior Services in advance of the effective date.