Bill Text: PA SB381 | 2009-2010 | Regular Session | Introduced

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Bill Title: Further providing for investigations and subpoenas and for audits.

Spectrum: Slight Partisan Bill (Republican 6-2)

Status: (Introduced - Dead) 2009-08-03 - Re-referred to APPROPRIATIONS [SB381 Detail]

Download: Pennsylvania-2009-SB381-Introduced.html

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PRINTER'S NO. 379
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 381 Session of2009
INTRODUCED BY VANCE, EARLL, BAKER, O'PAKE, ORIE, RAFFERTY, WASHINGTON AND WONDERLING, FEBRUARY 20, 2009
REFERRED TO BANKING AND INSURANCE, FEBRUARY 20, 2009
AN ACT
Amending the act of June 18, 1984 (P.L.391, No.82), entitled "An
act regulating continuing-care facilities; imposing duties
upon the Insurance Commissioner; requiring certificate of
authority; revocation of certificates; regulating disclosure
statements; advertisement; regulating financial reserves;
requiring escrows; regulating residents' agreements;
establishing an advisory council; granting right of
organization; regulating liquidation and rehabilitation;
imposing civil liability; providing for the right to
investigate and subpoena, liens, cross-collateralization,
cease and desist orders and audits; imposing fees and
regulations; and making criminal penalties," further
providing for investigations and subpoenas and for audits.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 18 and 19 of the act of June 18, 1984
(P.L.391, No.82), known as the Continuing-Care Provider
Registration and Disclosure Act, are amended to read:
Section 18. Investigations and subpoenas.
(a) The department may make such public or private
investigations or examinations within or outside of this
Commonwealth as the commissioner deems necessary to determine
whether any person has violated or is about to violate any
provision of this act or any rule or order hereunder, or to aid
in the enforcement of this act or in the prescribing of rules
and forms hereunder and may publish information concerning any
violation of this act or any rule or order hereunder.
(b) For the purpose of any investigation, examination or
proceeding under this act, the commissioner or any officer
designated by the commissioner may administer oaths and
affirmations, subpoena witnesses, compel their attendance, take
evidence and require the production of any books, papers,
correspondence, memoranda, agreements or other documents or
records which the commissioner deems relevant or material to the
inquiry, all of which may be enforced in any court of this
Commonwealth which has appropriate jurisdiction.
Section 19. [Audits] Authority, scope and scheduling of
examinations.
[The commissioner or his designee shall visit each facility
offering continuing care in this Commonwealth to examine its
books and records at least once every four years.]
(a) Every provider subject to examination in accordance with
this act must keep all books, records, accounts, papers,
documents and any or all computer or other recordings relating
to its property, assets, business and affairs in such manner and
for such time periods as the department, in its discretion, may
require in order that its authorized representatives may readily
verify the financial condition of the company or person and
ascertain whether the company or person has complied with the
laws of this Commonwealth. A multifacility provider may be
required to provide the financial statements of the component
parts at the request of the commissioner or his designee. [The]
Unless specifically directed otherwise by regulations
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promulgated by the department, the financial statements need not
be certified audited reports.
(b) The department or any of its examiners may conduct an
examination of the books and records of each provider offering
continuing care in this Commonwealth as often as the
commissioner, in the commissioner's sole discretion, deems
appropriate, but shall conduct an examination at least once in
the first five-year period and once in the second five-year
period following a provider's receipt of a certificate of
authority under this act.
(c) In scheduling and determining the nature, scope and
frequency of examinations under subsection (b), the commissioner
shall consider matters including all of the following:
(1) The results of financial statement analyses.
(2) Changes in management or ownership.
(3) Reports of independent certified public accountants.
(4) The volume or nature of complaints by residents.
(5) The length of time a provider or a facility has been
furnishing continuing care.
(6) Changes to disclosure statements or resident
agreements.
(7) The expansion of existing facilities or addition of
new facilities.
(8) Other information or criteria, which in the sole
discretion of the commissioner, is relevant to the provider's
financial condition or compliance with regulatory
requirements.
(d) For purposes of completing an examination of a provider,
the department may examine or investigate any person or the
business of any person insofar as the examination or
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investigation is, in the sole discretion of the commissioner,
necessary or material to the examination of the provider.
(e) Examinations under this section shall be conducted
pursuant to the procedures set forth under sections 904, 905,
906, 907 and 908 of the act of May 17, 1921 (P.L.789, No.285),
known as The Insurance Department Act of 1921, and 31 Pa. Code
Ch. 12 (relating to cost of insurance department examinations).
Section 2. This act shall apply to examinations instituted
on or after the effective date of this act.
Section 3. This act shall take effect in 60 days.
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