Current through Register Vol. 51, No. 19, September 20, 2024
A. A resident may:
(1) Manage the resident's financial affairs;
or
(2) Consistent with State law,
choose any individual who is willing and able to handle the resident's
financial affairs.
B. An
assisted living program may refuse to handle a resident's financial
affairs.
C. An assisted living
program may not manage a resident's funds without an express written request
from the:
(1) Resident; or
(2) Resident's agent.
D. Management of Personal Funds. On the
written authorization of a resident or agent, an assisted living program shall
hold, safeguard, manage, and account for the resident's personal funds as
specified in this regulation.
E.
Safeguards Required.
(1) Each assisted living
program shall develop adequate safeguards to secure the personal funds of a
resident that are entrusted to the assisted living program.
(2) An assisted living program to which $300
or more of a resident's personal funds is entrusted shall deposit the money in
an interest-bearing bank account. If an assisted living program is entrusted
with a resident's personal funds that are less than $300, the assisted living
program may deposit the funds in a bank account.
(3) An assisted living program that manages
residents' personal funds, regardless of the amount managed, shall maintain on
behalf of the residents:
(a) A bond, with the
State as obligee, equal to the average monthly balance of all the funds held or
managed by the licensee for the residents of the facility;
(b) A letter of credit, with the State as
obligee, equal to the average monthly balance of all the funds held or managed
by the licensee for the residents of the facility; or
(c) Net assets equal to the average monthly
balance of all the funds held or managed by the licensee for the residents of
the facility.
(4) The
bond, letter of credit, or list of assets shall be kept at the assisted living
program for inspection by the Department or its designee.
F. Establishment of Resident Accounts.
(1) When an assisted living program manages a
resident's financial affairs, the assisted living program shall:
(a) Establish and maintain a system that
ensures a full, complete, and separate accounting, in accordance with generally
accepted accounting principles, of a resident's personal funds entrusted to the
assisted living program; and
(b)
Keep the accounts of its residents separate from the accounts of the
facility.
(2) Bank
accounts opened for residents' personal funds by an assisted living program
shall have minimal or no fees.
(3)
Any interest earned on the bank accounts shall accrue to the
resident.
(4) Any fees charged by
the bank for the maintenance of the account shall be paid by the
resident.
G. Records of
Resident Personal Funds. For all resident funds entrusted to an assisted living
program, the assisted living program shall:
(1) Maintain an individual record for each
resident, which includes the following information for each transaction:
(a) The date of the transaction;
(b) The type of transaction, whether it is a
deposit, withdrawal, or any other transaction; and
(c) The balance of funds after the completion
of the transaction;
(2)
Make available for inspection by the resident, or, when applicable, the
resident's agent, a statement of the resident's account; and
(3) Make available at the assisted living
program, for audit by the Department or its designee, records pertaining to
each resident's personal funds, including the written authorization required by
§D of this regulation.
H. Fire and Theft Coverage. For all resident
funds entrusted to an assisted living program, the assisted living program
shall establish and maintain adequate fire and theft coverage to protect a
resident's funds that are on the premises of the assisting living
program.
I. Availability of
Personal Funds.
(1) A resident, or if
applicable, the resident's legally authorized representative, has the right to
access funds entrusted to the assisted living program:
(a) During normal business hours, if the
funds are held within the facility; or
(b) Within 3 banking days, if a bank, the
State, or a county or municipal treasurer holds the money.
(2) If an assisted living program transfers
or discharges a resident, the assisted living program shall:
(a) Request and follow the resident's written
instructions for transferring the resident's funds;
(b) Return, upon the resident's or, when
applicable, the resident's agent's demand, the resident's money that the
assisted living program has in its possession and have the resident or agent
sign a receipt for the money; or
(c) Make available to the resident or the
resident's agent, within 3 banking days, the resident's money which is held in
an account with a bank, the State, or county or municipal treasurer.
J. Ownership Change.
(1) If the ownership of an assisted living
program changes, the previous owner, with the approval of each resident, shall
give the new owner a certified written audit of all funds that residents have
entrusted to the assisted living program.
(2) The new owner shall give to the previous
owner a signed receipt acknowledging the receipt of the accounts.
(3) The new owner shall comply with the
safeguard requirements of §E of this regulation.
(4) If the resident wants the new owner to
hold, safeguard, manage, or account for the residents personal funds, then a
new written authorization in compliance with §D of this regulation shall
be executed.
K. Resident
Liability. A resident is not liable for any act or omission of the assisted
living program concerning the finances of the assisted living program or the
resident.
