40-2232. Same; provider's annual disclosure statement; contents; requirement to furnish.
40-2232
40-2232. Same; provider's annual disclosure statement; contents;requirement to furnish.A provider shall be required to complete an annual disclosurestatement prescribed by the commissioner and shall be required to deliverthe disclosure statement to individuals who are prospective residents, orcurrent residents who request such disclosure statement. The text of thedisclosure statement shall contain the following information:
(a) The name and business address of the provider and a statement ofwhether the provider is an individual, partnership, corporation or any other legal entity.
(b) The names of the individual or individuals who constitute theprovider or, if the provider is a partnership, corporation or other legalentity, whether for profit or not for profit, the names of the officers,directors, trustees or managing or general partners of the provider. Ifthe provider is a corporation, the name of any individual who owns 10% ormore of the stock of such corporation shall also be disclosed.
(c) With respect to a provider which is either not incorporated or notestablished and operated on a not-for-profit basis, the names and businessaddresses of any individual having any ownership or any beneficial interestin the provider and a description of such individual's interest in oroccupation with the provider.
(d) A statement as to whether or not the provider is, or is affiliatedwith, a religious, charitable or other nonprofit organization and theextent of the affiliation, if any; the extent to which any affiliateorganization will be responsible for the financial and contractualobligations of the provider; the provision of the United States internalrevenue code, if any, under which the provider or any of the provider'saffiliates is or are exempt from the payment of federal income taxes; and,a statement of whether the home is exempt from local property taxation.
(e) A statement that the provider is required to have an annualcertified audit by a certified public accountant and that a copy of suchaudit shall be made available upon request.
(f) If the operation of the home has not yet commenced, and with receiptof contract considerations as defined in K.S.A. 40-2231 (a) and (b),theprovider shall provide a statement of the anticipated source andapplication of the funds used or to be used in the purchase or constructionof the facility, including but not limited to:
(1) An estimate of such costs as financing expense, legal expense, landcosts, marketing costs and other similar costs which the provider expectsto incur or become obligated for prior to the commencement of operations;
(2) A description of any mortgage loan or any other financing intendedto be used for the financing of the facility, including the anticipatedterms and costs of such financing;
(3) An estimate of the total entrance fee to be received from or on behalfof residents at or prior to commencement of operation; and
(4) An estimate of the funds, if any, which are anticipated to benecessary to fund start-up losses and provide reserve funds to assure fullperformance of the obligations of the provider under continuing care contracts.
(g) A statement as to whether the manager or any official or director ofthe provider, has been convicted of a crime or been a party of any civilaction claiming fraud, embezzlement, fraudulent conversion ormisappropriation of property which resulted in a judgment against suchperson and whether any such person has had any state or federal license orpermits related to care and housing suspended or revoked.
(h) A statement of the years of experience of the provider and managerin the operation of homes providing continuing care.
(i) A statement of the fiscal year of the provider.
History: L. 1989, ch. 73, § 2; July 1.