South Carolina General Assembly
117th Session, 2007-2008

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Bill 4750

Indicates Matter Stricken
Indicates New Matter


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken

Indicates New Matter

RECALLED

April 23, 2008

H. 4750

Introduced by Rep. Cobb-Hunter

S. Printed 4/23/08--H.    [SEC 4/24/08 5:45 PM]

Read the first time February 26, 2008.

            

A BILL

TO AMEND SECTION 37-11-100, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DISCIPLINARY PROCEDURES FOR THOSE WHO MANAGE CONTINUING CARE FACILITIES, SO AS TO DELETE OBSOLETE PROVISIONS, PROVIDE GROUNDS FOR WHICH DISCIPLINARY ACTION MAY BE TAKEN, REQUIRE THAT DISCIPLINARY ACTION OCCUR SUBJECT TO THE ADMINISTRATIVE PROCEDURES ACT, AND REQUIRE A PERSON WHO HAS UNDERTAKEN UNLAWFUL CONDUCT TO REPAY COSTS OF ENFORCEMENT OF THE CHAPTER; BY ADDING SECTION 37-11-125 SO AS TO PROVIDE THAT THE ATTORNEY GENERAL MAY FILE AN ACTION IN CIVIL COURT TO ENFORCE PROVISIONS OF THIS CHAPTER; TO AMEND SECTION 37-11-135, RELATING TO EXEMPTIONS FROM DISCIPLINARY PROCEDURES, SO AS TO PROVIDE THAT EXEMPT COMMUNITIES MUST OBTAIN A LETTER OF NONAPPLICABILITY; BY ADDING SECTION 37-11-137 SO AS TO PROVIDE THAT FUNDS COLLECTED BY THE DEPARTMENT MUST BE USED TO IMPLEMENT THE PROVISIONS OF THIS CHAPTER; AND TO AMEND SECTION 37-11-140, RELATING TO THE EFFECTIVE DATE OF THE CHAPTER, SO AS TO DELETE OBSOLETE PROVISIONS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 37-11-100 of the 1976 Code, as last amended by Act 128 of 2005, is further amended to read:

"Section 37-11-100.    The department may file a request for a contested case hearing with the Administrative Law Court to suspend or revoke a license issued pursuant to this chapter or assess a monetary penalty for violation of a provision of this chapter or a regulation promulgated pursuant to this chapter. (A)For the purposes of this section, 'conviction' includes a plea of guilty or nolo contendere or a finding of guilt.

(B)    The department may take disciplinary action against a licensee or an operator on any of the following grounds:

(1)    the conviction of a licensee, operator, or person who manages the community on a day-to-day basis of a felony or an injunction or finding of liability in a civil action by final judgment, if the felony or civil action involves fraud, embezzlement, fraudulent conversion, misappropriation of property, or intentional or material misrepresentation in obtaining, attempting to obtain, or renewing a license;

(2)    the conviction of a licensee, operator, or person who manages the community on a day-to-day basis of a crime relating to the operation of a continuing care retirement community or facility or the ability of the licensee or an operator to operate a continuing care retirement community or facility;

(3)    the conviction of a licensee, operator, or person who manages the community on a day-to-day basis of a crime relating to fraud, embezzlement, fraudulent conversion, or misappropriation of property in the operation of a continuing care retirement community or facility;

(4)    engaging in binding reservation agreements or continuing care contracts without a license;

(5)    transferring or attempting to transfer a license issued pursuant to this chapter;

(6)    violating this chapter or an order or regulation issued by the department pursuant to this chapter;

(7)    failing to notify the department in writing of the civil judgment or felony conviction of a licensee, operator, or person who manages the community on a day-to-day basis not later than the thirtieth day after the date on which the judgment or conviction is entered;

(8)    failing to cooperate with an investigation, examination, or audit of the records of an applicant for a license, licensee, or operator as authorized by law by the department;

(9)    failing to notify the department not later than the thirtieth day after the effective date of a change in ownership, principal business address, address of accounts and records, or other change in circumstances as required by the department;

(10)    knowingly making a material misrepresentation to the department or other governmental agency;

(11)    receiving an adverse final action by a state or federal regulatory agency for violations within the scope or control of the licensee; or

(12)    failing to inform the department in writing within thirty days of an adverse final action by a state or federal regulatory agency.

(C)    Upon finding that a licensee, operator, or person who manages the community on a day-to-day basis has violated one or more provisions of this section, the department may:

(1)    deny an application for a license;

(2)    revoke, restrict, suspend, or refuse to renew a license;

(3)    impose an administrative penalty in an amount not less than one thousand dollars for each violation, but not more than ten thousand dollars;

(4)    issue a reprimand;

(5)    issue a cease and desist order; or

(6)    place the licensee, operator, or person who manages the community on a day-to-day basis on probation for a period and subject to conditions and restrictions that the department specifies.

(D)    A disciplinary action, denial of an application for a new or renewal license, license revocation, or license suspension must occur subject to the Administrative Procedures Act, with notice to, and an opportunity for a hearing by, the affected applicant, licensee, or operator. A contested hearing pursuant to this section must be held before the Administrative Law Court.

(E)    A licensee, operator, or person who manages the community on a day-to-day basis who is found to be engaged in unlawful conduct may be assessed the reasonable costs necessary to the investigation, disciplinary proceeding, court proceeding, or other action to enforce the provisions of this chapter."

SECTION    2.    Chapter 11, Title 37 of the 1976 Code is amended by adding:

"Section 37-11-125.    The department or the Attorney General may file an action in circuit court to enforce the provisions of this chapter."

SECTION    3.    Section 37-11-135 of the 1976 Code is amended to read:

"Section 37-11-135.    A continuing care retirement community which does not require payment of an entrance fee is exempt from the requirements of this chapter. and must obtain a letter of nonapplicability from the department."

SECTION    4.    Chapter 11, Title 37 of the 1976 Code is amended by adding:

"Section 37-11-137.    All funds collected by the department pursuant to this chapter must be retained and used to implement the provisions of this chapter."

SECTION    5.    Section 37-11-140 of the 1976 Code is amended to read:

"Section 37-11-140.    (A)    A continuing care retirement community in operation, or for which binding financial commitments have been made, as of the effective date of this chapter is not required to meet the criteria established by the department pursuant to Section 37-11-40(1), (2), and (3) and Section 37-11-50(2) and (3) until July 1, 1992.

(B)    A continuing care retirement community in operation, or for which binding financial commitments have been made, as of the effective date of this chapter, is exempt from the requirements of Section 37-11-90(B)(2) until July 1, 1994.

(C)(A)    The provisions of Section 37-11-35 do not apply to a continuing care contract entered into before the effective date of this chapter.

(D)(B)    The provisions of subsections subsection (A), (B), and (C) do not limit the department's authority to deny, suspend, or revoke a license or assess a monetary penalty if it finds fraud or gross financial mismanagement."

SECTION    6.    This act takes effect upon approval by the Governor.

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