Texas Statutes
Subchapter C. Continuing Care Contracts and Disclosure Statements
Section 246.051. Contents of Disclosure Statement: Annual Income Statements

Sec. 246.051. CONTENTS OF DISCLOSURE STATEMENT: ANNUAL INCOME STATEMENTS. The disclosure statement must contain estimated annual income statements for the facility for at least five fiscal years, including:
(1) anticipated earning on any cash reserves;
(2) estimates of net receipts from entrance fees, other than entrance fees included in the statement of anticipated source and application of funds required under Section 246.052, minus estimated entrance fee refunds, including a description of the actuarial basis and method of computation for the projection of entrance fee receipts;
(3) an estimate of gifts or bequests to be relied on to meet operating expenses;
(4) a projection of estimated income from fees and charges, excluding entrance fees, that:
(A) states individual rates anticipated to be charged; and
(B) includes a description of the assumptions used for computing the estimated occupancy rate of the facility and the effect on the income of the facility of any government subsidies for health care services to be provided under the continuing care contract;
(5) a projection of the facility's operating expenses, including:
(A) a description of the assumptions used in computing the expenses; and
(B) a separate allowance for the replacement of equipment and furnishings and anticipated major structural repairs or additions; and
(6) an estimate of annual payments of principal and interest required by a mortgage loan or other long-term financing arrangement relating to the facility.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 14, Sec. 100, eff. Sept. 1, 1991.

Structure Texas Statutes