Sec. 1. 18-A MRSA §5-510 is enacted to read:

§5-510.__Duties owed by persons who hold durable powers of

attorney or act as responsible parties for residents

of long-term care facilities

(a)__As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

(1)__"Agent" means an individual who holds a power of attorney or otherwise acts as a responsible party for payment of financial obligations of and on behalf of a principal.

(2)__"Long-term care facility" means a nursing facility or unit licensed pursuant to Title 22, chapter 405 or an assisted living facility or program or a residential care facility licensed pursuant to Title 22, chapter 1663 or 1664.

(3)__"Principal" means a resident of a long-term care facility.

(4)__"Principal's resources" includes assets, income, pensions, cash benefits, insurance proceeds and other resources available or belonging to the principal.

(b)__An agent is subject to the duties, obligations and procedures set forth in this section.

(c)__In exercising a power of attorney or otherwise acting as a responsible party for payment of financial obligations of and on behalf of a principal, an agent is under a fiduciary duty to observe the standards observed by a prudent person dealing with the property of another.__The agent may not engage in self- dealing that is contrary to the interests of the principal.

(d)__If a principal may be eligible for coverage of health care expenses by the Medicare and MaineCare programs or any other federal and state public health insurance program, the agent shall promptly apply for coverage and shall comply with the requirements governing these programs.__If the principal is covered by any private health insurance or long-term care insurance that provides benefits for the care provided by the long-term care facility, the agent shall take appropriate action to claim these benefits.__Except for any exclusions or allowances provided for under a public health insurance program, the agent shall apply the principal's resources to make timely payment to