216 R.I. Code R. 216-RICR-20-15-5.3

Current through December 26, 2024

Section 216-RICR-20-15-5.3 - Registration Procedures

5.3.1General Requirements

A. No provider shall engage in the business of providing or offering to provide continuing care at a facility in this state unless the provider is registered with the Department with respect to such facility in accordance with the statutory provisions and the regulatory provisions herein, and, any other applicable statutory and/or regulatory provisions, unless exempt pursuant to R.I. Gen. Laws § 23-59-13.

1. Furthermore, prior to submitting an application for registration as a continuing care provider, an applicant must obtain a determination from the Director regarding the acceptability of the Certified Public Accountant whom the provider intends to retain to review and certify materials to be submitted with the application in accordance with §5.3.3 of this Part.

2. If the Department finds the CPA to meet the criteria of §5.3.2 of this Part, the Department shall notify the applicant within ten (10) days of the acceptability of the CPA.

5.3.2Credentials of the Certified Public Accountant

A. An applicant seeking registration as a continuing care provider must submit notarized verification to the Director that the certified public accountant to be retained by the provider meets the following criteria:

1. Is licensed in this state pursuant to R.I. Gen. Laws Chapter 5-3 or is licensed as a CPA in another state with similar standards for such licensure which are acceptable to the state agency;

2. The CPA and/or his or her immediate family have no financial interest in the Continuing Care Provider confirmed by a notarized statement filed by the CPA attesting to same;

3. Has no legal actions pending regarding his or her ethical and/or professional practices; and

4. Such other evidence of professional competency as the Director may deem necessary.

5.3.3Initial Registration

A. For the initial registration as a Continuing Care Provider, ten (10) completed copies of the application form, as prescribed by the Department, with accompanying registration and disclosure information signed by the legally authorized person shall be submitted to the Department. Such information shall consist of no less than:

1. An application for registration signed by the duly legally authorized person(s);

2. The initial disclosure information statement as required in accordance with R.I. Gen. Laws § 23-59-3;

3. In instances where the applicant cannot submit its audited financial statement(s) as a component of its disclosure statement because said entity's operations have not been ongoing for such a period, a signed statement from the approved CPA attesting to the accuracy and full disclosure of information as required pursuant to the statutory and regulatory provisions herein for a "compilation report" consistent with the standards of the American Institute of Certified Public Accountants;

4. Such other information as may be deemed necessary by the Director.

5.3.4Annual Registration

A. Each registered provider shall file a disclosure statement with the department on an annual basis.

B. Non-operational Registered Providers

An annual disclosure statement meeting all the requirements of §5.3.3 of this Part and R.I. Gen. Laws § 23-59-5 shall be provided to the Department no later than twelve months from the date of the department's written approval of the provider's initial registration.

C. Operational Registered Providers

Annual disclosure statement must be made to the Department and to each resident, within four (4) months following the end of the provider's fiscal year and in accordance with the requirements of R.I. Gen. Laws § 23-59-5. During the period existing of initial provider operations prior to the availability of audited financial statements as described in §5.3.3(3) of this Part, but in any case not to exceed a period of sixteen (16) months from the initiation of operations, operational providers may satisfy the annual registration requirements by complying with the requirements of §5.3.4(B) of this Part.

5.3.5Registration Approval

A. Upon receipt of an initial application for registration or receipt of the annual registration, the Director shall, within ninety (90) days of the filing date, confirm the registration of the applicant, if the applicant meets the statutory requirements of the Act and regulatory requirements herein. Within four (4) months following the end of the provider's fiscal year, each provider shall make available by written notice to each resident at no cost an annual disclosure statement which contain the information required for the disclosure of §§5.3.3 or 5.3.4 of this Part and R.I. Gen. Laws § 23-59-5.

B. If the Department determines that the disclosure statement does not comply with the provision of the Act and the regulations herein, it shall have the right to take action pursuant to §5.3.6 of this Part.

C. Registration shall be deemed approved, if the Department fails to notify the applicant, within ninety (90) days of filing, of its registration determination.

5.3.6Financial Instability / Cease and Desist Orders - Injunctions

A. The Department may act as authorized in R.I. Gen. Laws § 23-59-16 to protect residents or prospective residents when the Department determines that:

1. A provider has been or will be unable, in such a manner as may endanger the ability of the provider to fully perform its obligations pursuant to its continuing care contracts, to meet the pro forma income or cash flow projections previously filed by the provider; or

2. A provider is bankrupt, insolvent, under reorganization pursuant to federal bankruptcy laws or in imminent danger of becoming bankrupt or insolvent.

B. Whenever it appears to the Department that any person has engaged in or is about to engage in, any act or practice constituting a violation of the Act or any regulation or order issued under this Act, the Department may pursuant to R.I. Gen. Laws § 23-59-16:

1. Issue an order directed at any such person requiring him or her to cease and desist from engaging in such act or practice; and/or

2. By application to a court of competent jurisdiction seek a permanent or temporary injunction, or a restraining order to enforce compliance with this Act or any rule, regulation or order issued under this Act.

5.3.7Investigations and Subpoenas

A. The Department may make public or private investigations within or outside of this state it deems necessary to determine whether any person has violated any provision of the Act or any rule, regulations or order promulgated by the Department.

B. For the purpose of any investigation or proceeding under the Act, the Department or any officer designated by it may administer oaths and affirmations, subpoena witness, compel their attendance, take evidence and require the production of any books, papers, correspondence, memoranda, agreements or other documents or records which the Department deems relevant or material to the inquiry.

5.3.8Sale or Transfer of Ownership or Change in Management

A. No provider and no person or entity owning a provider shall sell or transfer, directly or indirectly, more than fifty percent (50%) of the ownership of the provider or of a continuing care facility without giving the Department written notice of the intended sale or transfer at least thirty (30) days prior to the consummation of the sale or transfer. A series of sales or transfers to one (1) person or entity, consummated within a six (6) month period that constitutes, in the aggregate, a sale or transfer of more than fifty percent (50%) of the ownership of a provider or of a continuing care facility shall be subject to the foregoing notice provisions.

B. A provider or continuing care facility that shall change its chief executive officer, or its management firm if managed under a contract with a third party, shall promptly notify the Department and the residents of each such change.

216 R.I. Code R. 216-RICR-20-15-5.3