2006 New Mexico Statutes - Section 24-17-4 — Disclosure.

24-17-4. Disclosure.

A.     A person who provides or offers to provide continuing care in this state shall furnish a current annual disclosure statement and a consumer's guide to continuing care communities as furnished by the aging and long-term services department or the attorney general's office to actual residents and to a prospective resident at least seven days prior to entering into a continuing care contract with the prospective resident.  For the purposes of this subsection, the obligation to furnish information to actual residents shall be deemed satisfied if a copy is given to the residents' association, if there is one, and a written message has been delivered to all residents that personal copies are available upon request.

B.     The disclosure statement shall include:

(1)     a brief narrative summary of the contents of the disclosure statement written in plain language;

(2)     the name and business address of the provider;

(3)     if the provider is a partnership, corporation or association, the names, addresses and duties of its officers, directors, trustees, partners or managers;

(4)     the name and business address of any affiliate;

(5)     a statement as to whether the provider or any of its officers, directors, trustees, partners, managers or affiliates, within ten years prior to the date of application:

(a)     was convicted of a felony, a crime that if committed in New Mexico would be a felony or any crime having to do with the provision of continuing care;

(b)     has been held liable or enjoined in a civil action by final judgment, if the civil action involved fraud, embezzlement, fraudulent conversion or misappropriation of property;

(c)     had a prior discharge in bankruptcy or was found insolvent in any court action; or

(d)     had any state or federal licenses or permits suspended or revoked or had any state, federal or industry self-regulatory agency commence an action against him and the result of such action;

(6)     the name and address of any person whose name is required to be provided in the disclosure statement who owns any interest in or receives any remuneration from, either directly or indirectly, any other person providing or expected to provide to the community goods, leases or services with a real or anticipated value of five hundred dollars ($500) or more and the name and address of the person in which such interest is held.  The disclosure shall describe such goods, leases or services and the actual or probable cost to the community or provider and shall describe why such goods, leases or services should not be purchased from an independent entity;

(7)     the name and address of any person owning land or property leased to the community and a statement of what land or property is leased;

(8)     a statement as to whether the provider is, or is associated with, a religious, charitable or other organization and the extent to which the associate organization is responsible for the financial and contractual obligations of the provider or community;

(9)     the location and description of real property being used or proposed to be used in connection with the community's contracts to furnish care;

(10)     a statement as to whether the community maintains reserves to assure payment of debt obligations and the ability to provide services to residents and a description of such reserves;

(11)     for those communities that charge an entrance fee that were not in operation on June 14, 1985, an actuarial analysis of the community performed by an actuary experienced in analyzing continuing care communities;

(12)     an audited financial statement as of the end of the provider's last fiscal year or a copy of the previous year's tax filings with the internal revenue service;

(13)     a sample copy of the contract used by the provider; and

(14)     a list of documents and other information available upon request, including:

(a)     a copy of the Continuing Care Act  [ 24-17-1 NMSA 1978];

(b)     if the provider is a corporation, a copy of the articles of incorporation; if the provider is a partnership or other unincorporated association, a copy of the partnership agreement, articles of association or other membership agreement; and if the provider is a trust, a copy of the trust agreement or instruments;

(c)     resumes of the provider and officers, directors, trustees, partners or managers;

(d)     a copy of lease agreements between the community and any person owning land or property leased to the community;

(e)     information concerning the location and description of other properties, both existing and proposed, of the provider in which the provider owns any interest and on which communities are or are intended to be located and the identity of previously owned or operated communities;

(f)     a copy of the community's policies and procedures; and

(g)     such other data, financial statements and pertinent information requested by the resident with respect to the provider or community, or its directors, trustees, members, managers, branches, subsidiaries or affiliates, that is reasonably necessary for the resident to determine the financial status of the provider and community and the management capabilities of the managers and owners, including the most recent audited financial statements of comparable communities owned, managed or developed by the provider or its principal.

C.     Each year, within one hundred eighty days after the end of the community's fiscal year, the provider shall furnish to actual residents the disclosure statement as outlined in this section.  For purposes of this subsection, the obligation to furnish the required information to residents shall be deemed satisfied if the information is given to the residents' association, if there is one, and a written message has been delivered to all residents stating that personal copies of the information are available upon request.