Title 554, REAL AND PERSONAL PROPERTY

Sec. 9. As used in this act: (a) "Person" means an individual, partnership, corporation, association, governmental entity, or other legal entity. (b) "Publish" means to publicly issue or circulate by newspaper, mail, radio, television, or electronic means or otherwise to dissemin…

Sec. 11. As used in this act: (a) "Sale of a continuing care agreement" means the execution of a continuing care agreement. (b) "Sell a continuing care agreement" means to secure the sale of a continuing care agreement.

Sec. 13. (1) A continuing care community shall be organized and operated as either a for-profit or nonprofit entity. The entity's purposes shall be limited to ownership, organization, and operation of the continuing care community. (2) Each continuing care community shall elect o…

Sec. 15. (1) Subject to subsections (3) and (4), a person shall not offer to enter into or enter into a continuing care agreement unless the person is registered or exempt from registration under this act. (2) Subject to subsections (3) and (4), this act applies to all written or…

Sec. 17. (1) A continuing care community that is licensed in whole or part under article 17 of the public health code, 1978 PA 368, MCL 333.20101 to 333.22260, or the adult foster care facility licensing act, 1979 PA 218, MCL 400.701 to 400.737, is exempt from any rules promulgat…

Sec. 19. (1) A person seeking initial registration under this act shall submit the following information to the department: (a) An initial registration application on a form prescribed by the department, signed and verified by an individual authorized to act on behalf of the cont…

Sec. 21. (1) Effective 60 days after the department receives a registration application, the application shall be considered to be complete unless the department proceeds as provided in subsection (2). (2) If, before the expiration of the 60-day period under subsection (1), the d…

Sec. 23. (1) The fact that an application for registration has been filed or approved does not constitute any of the following: (a) Approval of or a finding regarding the accuracy of any information in or accompanying the registration application. (b) A recommendation, approval, …

Sec. 25. (1) Except as otherwise provided in this act, the department shall renew the registration of a registrant that does all of the following: (a) On or before the expiration date printed on the registration, submits to the department an application for renewal of registratio…

Sec. 27. (1) Subject to subsections (2) and (3), an application for renewal of registration shall be processed in the same manner as an initial registration application under section 21. (2) If, within 60 days after receiving notice from the department under section 21(2), an app…

Sec. 29. (1) The department may extend the term of an existing registration for a continuing care community for not more than 3 fiscal years if the department determines that all of the following requirements are met: (a) The continuing care community was registered under this ac…

Sec. 31. (1) The fee for filing an application for initial registration of the offer or sale of continuing care agreements or continuing care at home agreements is $250.00. If an application for registration is withdrawn before the effective date of registration or a stop order i…

Sec. 33. (1) A registrant shall notify the department promptly in writing within 45 days of any reportable change with respect to the continuing care community measured semiannually. (2) A registrant shall submit to the department an application to amend a registration to address…

Sec. 35. (1) A continuing care community shall deliver to a prospective member all continuing care agreements pertinent to the continuing care sought by the prospective member, the continuing care community emergency plan in case of power outage, and the disclosure statement most…

Sec. 37. (1) Subject to subsection (3), a disclosure statement shall include at a minimum the following information, unless waived by the department in the reasonable exercise of discretion: (a) The name and address of the continuing care community and its affiliated parent or su…

Sec. 39. A continuing care agreement shall meet all of the following requirements: (a) Specify in reasonable detail the rights, privileges, liabilities, and obligations of each party to the continuing care agreement with respect to the statements included in the disclosure statem…

Sec. 41. (1) Financial statements under section 19, 25, or 29 shall meet all of the following requirements: (a) Be submitted with a statement of any adverse material changes in the financial condition of the entity from the date of the financial statement. (b) Subject to subdivis…

Sec. 43. A pro forma financial plan shall include a financial forecast for a period of 3 years, presented on the same accounting basis as the financial statements, including all of the following: (a) A balance sheet. (b) A statement of changes and activities or statement of opera…

Sec. 45. (1) If a member pays funds to a continuing care community before occupancy, the funds shall be held in a trust account unless this requirement is waived or modified by the department. Any interest or other income from the investment of the funds held in the trust account…

Sec. 47. (1) In lieu of an escrow arrangement imposed pursuant to section 45(2), the department may approve an alternative financial arrangement that separates or secures a designated amount of funds of the continuing care community for the benefit of members of the continuing ca…

Sec. 49. (1) A registered continuing care community shall prepare and maintain for not less than 6 years all of the following records: (a) Accounts and records of each day's sales of memberships in the continuing care community, receipts of cash, and other debits and credits. (b)…

Sec. 51. (1) A person shall not distribute or transmit an advertisement or marketing communication described in this subsection unless a true copy of the advertisement or marketing communication has been submitted to and approved by the department or unless an advertising waiver …

Sec. 55. (1) A person shall not, in connection with the offer or sale of a continuing care agreement, directly or indirectly do any of the following: (a) Employ a device, scheme, or artifice to defraud. (b) Engage in an act, practice, or course of business which operates or would…

Sec. 57. If a member becomes mentally or physically incapacitated and is unable to handle his or her own personal or financial affairs, the continuing care community may petition a court of competent jurisdiction to appoint an independent conservator or guardian. If the court app…

Sec. 59. (1) A dispute, claim, or grievance arising between a member or a member's estate and a continuing care community shall upon written consent of the parties be submitted to arbitration. The arbitrator's decision is final and binding. The arbitration is subject to the rules…

Sec. 61. (1) An applicant for registration under this act, other than a domestic corporation, shall file with the department, on a form prescribed by the department, an irrevocable consent appointing the department to be its attorney to receive service of lawful process in a nonc…

Sec. 63. (1) The department may conduct investigations within or outside this state to determine if any of the following apply: (a) An offering of a continuing care agreement under this act poses or may pose an unreasonable risk as described in subsection (3). (b) A person has vi…

Sec. 65. (1) The department shall review all documents submitted to the department under this act for compliance with this act. The department may require the submission of supplemental documents if the department considers the additional information necessary for the purposes of…

Sec. 67. (1) A court or the department may by order authorize a registrant to suspend repayment of an entrance fee for not more than 180 days, upon a showing by the registrant that payment would jeopardize the care of members in the continuing care community. The order may be ext…

Sec. 69. (1) The department may issue an order denying, suspending, or revoking a registration if it finds that the order is in the public interest and finds 1 or more of the following: (a) The application for registration or the registration statement in effect is not complete i…

Sec. 71. (1) Subject to subsection (2), if the department determines that a person has engaged, is engaging, or is about to engage in an act, practice, or course of business constituting a violation of this act or a rule promulgated or order issued under this act, or that a perso…

Sec. 73. If it appears to the department that a person has engaged or is about to engage in an act or practice constituting a violation of this act or a rule promulgated or order issued under this act, the attorney general may bring an action in the name of the people in the circ…

Sec. 75. (1) If the director of the department finds that a person violated this act or a rule promulgated or order issued under this act, after an opportunity for an evidentiary hearing under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, the direc…

Sec. 77. (1) A person that offers or sells a continuing care agreement in violation of section 15 or 55 or an order issued under section 69 is liable to the person executing the continuing care agreement for all of the following: (a) Damages. (b) Repayment of all fees paid to the…

Sec. 79. Except as explicitly provided in this act, civil liability in favor of a private party does not arise against a person by implication from or as a result of the violation of this act or a rule promulgated or order issued under this act. This act does not limit liability …

Sec. 81. A person that directly controls a person that violates this act, a partner in a firm that violates this act, a principal executive officer or paid director or trustee of a corporation that violates this act, a person occupying a similar status as an executive officer or …

Sec. 83. An action shall not be maintained to enforce a liability created under this act unless brought before the expiration of 3 years after the date of the act or transaction constituting the violation.

Sec. 85. (1) A person that knowingly violates this act is guilty of a felony punishable by imprisonment for not more than 7 years or a fine of not more than $10,000.00, or both. (2) The proceeds, the substituted proceeds, or an instrumentality of a crime described in subsection (…

Sec. 87. Pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, the department may promulgate rules to implement this act.

Sec. 89. (1) Applications, reports, and other papers and documents filed by applicants or registrants or experts or appraisers with the department under this act are subject to disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246. However, pro forma …

Sec. 91. A life interest or long-term lease agreement entered into under the former 1976 PA 440 is not invalidated by the repeal of that act and the adoption of this act.

Sec. 93. A facility or person that was registered or exempt from registration under the former living care disclosure act, 1976 PA 440, immediately before the effective date of this act shall be considered to be registered or exempt from registration, respectively, under this act…