LIVING CARE DISCLOSURE ACT
Act 440 of 1976
AN ACT to regulate the offer and sale of life estates, life leases, and long-term leases in nursing homes, retirement homes, homes for the aged, and foster care facilities; to prohibit fraudulent practices in relation to the offer and sale of those estates and leases; to impose regulatory duties upon the corporation and securities bureau of the department of commerce; and to provide penalties.
History: 1976, Act 440, Eff. July 1, 1977
© 2009 Legislative Council, State of Michigan
The People of the State of Michigan enact:
| Section 554.801 | Section | Short title. |
| Section 554.802 | Section | Meanings of words and phrases. |
| Section 554.803 | Section | Definitions. |
| Section 554.804 | Section | Additional definitions. |
| Section 554.805 | Section | Applicability of act; offer or sale of life interest or long-term lease; making offer to sell; accepting offer to sell; facility offering long-term lease or life interest as profit or nonprofit corporation; compliance with federal law; limitation on purposes of corporations. |
| Section 554.806 | Section | Fraud and deceit. |
| Section 554.807 | Section | Registration required. |
| Section 554.808 | Section | Application for registration; form; contents of disclosure statement; financial statement; signing and verification of application; type and spacing of contracts; untrue statement or omission of material fact; notice of filing; order of registration or rejection; notice of deficiencies. |
| Section 554.809 | Section | Alternative disclosure statement. |
| Section 554.810 | Section | Lease or membership agreement; minimum provisions; termination of member; refund; providing access to adequate alternative facility. |
| Section 554.811 | Section | Arbitration of dispute, claim, or grievance; waiver. |
| Section 554.812 | Section | Resident as advisory member of board of directors. |
| Section 554.813 | Section | Conservators or guardians. |
| Section 554.814 | Section | Order temporarily suspending repayment of entrance fee. |
| Section 554.815 | Section | Exemptions from registration requirements. |
| Section 554.816 | Section | Pro forma financial plan; filing; deposit with escrow agent; surety bond or guaranty; temporary suspension of sales; entrance fees as capital in calculating solvency. |
| Section 554.817 | Section | Notice of intent to issue stop order denying, suspending, or revoking registration; grounds. |
| Section 554.818 | Section | Notifying applicant of stop order; hearing; vacating or modifying stop order. |
| Section 554.819 | Section | Right to rescind purchase of life lease or long-term lease; retention of funds in separate escrow account; moving into facility. |
| Section 554.820 | Section | Registration of life interest or long-term lease offering. |
| Section 554.821 | Section | Registration renewal statement; form and content; automatic renewal. |
| Section 554.822 | Section | Material change in information; application to amend registration; revised disclosure statement; effective date of amendment; semiannual financial statements; financial information or reports. |
| Section 554.823 | Section | Account of sales; reports and records; examination; opinions, appraisals, and reports of experts on questions affecting interests proposed to be offered or sold; failure to furnish information; investigation; expenses; disposition of fees. |
| Section 554.824 | Section | Effect of application for registration being filed or becoming effective. |
| Section 554.825 | Section | Service of process generally. |
| Section 554.826 | Section | Requirements before use of disclosure statement, pamphlet, circular, form letter, advertisement, or other sales literature or advertising communication; requirements for publication of advertisement; liability of publisher. |
| Section 554.827 | Section | Conduct and qualifications of agents; rules. |
| Section 554.828 | Section | Notice of intent to issue cease and desist order; issuance; hearing; order of censure; violation; penalty; separate offenses. |
| Section 554.829 | Section | Liability to person purchasing life interest or lease; rescission as bar to action. |
| Section 554.830 | Section | Joint and several liability. |
| Section 554.831 | Section | Limitations. |
| Section 554.832 | Section | Civil liability by implication; common law or other statutory liability not limited. |
| Section 554.833 | Section | Powers of bureau; circuit court orders; contempt. |
| Section 554.834 | Section | Injunction, restraining order, or writ of mandamus; appointment of receiver or conservator; bond. |
| Section 554.835 | Section | Proceedings by attorney general or prosecuting attorney. |
| Section 554.836 | Section | Violation; penalty; conduct constituting crime under other statute. |
| Section 554.837 | Section | Service of process where conduct prohibited or made actionable by act or rule. |
| Section 554.838 | Section | Fees. |
| Section 554.839 | Section | Rules. |
| Section 554.840 | Section | Public inspection of documents; disclosure of information. |
| Section 554.841 | Section | Reproduction of public records; certified copy of document as prima facie evidence. |
| Section 554.842 | Section | Destruction of applications, orders, files, and folders as useless or obsolete; permanent record of disciplinary action; retention of reproductions. |
| Section 554.843 | Section | Submitting information in compliance with MCL 554.808. |
| Section 554.844 | Section | Effective dates. |