HOUSE BILL No. 4128 February 2, 1999, Introduced by Rep. Scranton and referred to the Committee on Senior Health, Security and Retirement. A bill to provide for standards for contracts involving cer- tain residential and care services; and to provide for remedies. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 1. This act shall be known and may be cited as the 2 "housing-with-services contract act". 3 Sec. 2. As used in this act: 4 (a) "Health-related services" means 1 or more of the 5 following: 6 (i) Professional nursing services. 7 (ii) Nursing services delegated to aides including, but not 8 limited to, escort services, reminders, and standby assistance 9 related to dressing or grooming. 10 (iii) Home aide care tasks. 11 (b) "Housing-with-services establishment" means a facility 12 regularly providing or offering to provide sleeping 00259'99 LTB 2 1 accommodations to 1 or more adult residents, at least 80% of whom 2 are 55 years of age or older, and providing or offering to pro- 3 vide for a fee either 1 or more regularly scheduled 4 health-related services or 2 or more regularly scheduled support- 5 ive services, whether offered directly by the facility or by 6 another person by arrangement of the facility. 7 Housing-with-services establishment does not include an adult 8 foster care facility licensed under the adult foster care facil- 9 ity licensing act, 1979 PA 218, MCL 400.701 to 400.737, or a 10 health facility or agency licensed under article 17 of the public 11 health code, 1978 PA 368, MCL 333.20101 to 333.22260. 12 (c) "Resident" means an individual living in a 13 housing-with-services establishment. 14 (d) "Supportive services" means helping with personal laun- 15 dry, handling or assisting with a resident's money, arranging for 16 medical services, health-related services, social services, or 17 transportation to medical or social services appointments, or 18 providing for at least 1 individual awake and alert in the 19 housing-with-services establishment to contact a service provider 20 in an emergency. Supportive services do not include making 21 referrals or assisting a resident in contacting a service pro- 22 vider of the resident's choice. 23 Sec. 3. (1) A facility shall not function as a 24 housing-for-services establishment for an individual except pur- 25 suant to a written contract complying with this act. 00259'99 3 1 (2) A contract between a housing-with-services establishment 2 and a resident must be in writing and shall include at least all 3 of the following: 4 (a) The name, street address, and mailing address of the 5 housing-with-services establishment. 6 (b) The owner's name and mailing address. If the ownership 7 of the housing-with-services establishment is other than by indi- 8 viduals, the contract shall identify the type of ownership, along 9 with the primary officers and directors. 10 (c) The name and address of the managing agent, whether an 11 owner of a management firm or agency. 12 (d) The name and address of at least 1 individual authorized 13 to accept service of process on behalf of the owner and managing 14 agent. 15 (e) A statement describing whether the housing-with-services 16 establishment or a provider of services is regulated by a local, 17 state, or federal agency and the status of an applicable license, 18 registration, certification, or permit. 19 (f) The term of the contract described in months or years. 20 (g) A description of the services the establishment will 21 provide to the resident for the base-rate paid by the resident. 22 (h) A description of additional services available for an 23 additional fee from the housing-with-services establishment 24 directly or through arrangements with the housing-with-services 25 establishment. 26 (i) Fee schedules outlining the cost of additional 27 services. 00259'99 4 1 (j) A description of the process through which the contract 2 may be modified, amended, or terminated. 3 (k) A description of the housing-with-services 4 establishment's complaint resolution process. 5 (l) The resident's designated representative, if any. 6 (m) The establishment's referral procedure in the event the 7 contract is terminated. 8 (n) The criteria used by the establishment to determine who 9 may continue to reside in the establishment. 10 (o) Billing and payment procedures and requirements. 11 (p) A statement regarding the availability of public funds 12 for payment for residence or services, or both, in the 13 establishment. 14 (3) The housing-with-services establishment shall keep the 15 contracts and related documents executed by the establishment and 16 residents for at least 3 years after the date of termination of 17 the contract. Contracts for current residents shall be kept at 18 the establishment. 19 Sec. 4. (1) A housing-with-services establishment shall 20 comply with this act. 21 (2) This act does not mandate a housing-with-services estab- 22 lishment to provide any of the following: 23 (a) A minimum core of services. 24 (b) A specific number of residents so long as at least 7 25 residents are regularly served. 00259'99 5 1 (c) Physical plant or facility specifications so long as the 2 housing-with-services establishment is in compliance with 3 applicable state and local codes. 4 Sec. 5. (1) A contract executed in violation of this act is 5 voidable at the option of the resident. 6 (2) A resident may bring an action in a court of competent 7 jurisdiction for recovery of damages arising out of a violation 8 of or noncompliance with this act. If the violation is deter- 9 mined to be willful, the court may award treble damages. 10 (3) A housing-with-services establishment shall not bring, 11 maintain, or defend an action to collect compensation for the 12 performance of a contract determined by the court to be in will- 13 ful violation of or noncompliance with this act. 00259'99 Final page. LTB