1793.50. (a) The department, after consultation with the Continuing
Care Advisory Committee, may petition the superior court for an
order appointing a qualified administrator to operate a continuing
care retirement community, and thereby mitigate imminent crisis
situations where elderly residents could lose support services or be
moved without proper preparation, in any of the following
circumstances:
(1) The provider is insolvent or in imminent danger of becoming
insolvent.
(2) The provider is in a financially unsound or unsafe condition.
(3) The provider has failed to establish or has substantially
depleted the reserves required by this chapter.
(4) The provider has failed to submit a plan, as specified in
Section 1793.13, the department has not approved the plan submitted
by the provider, the provider has not fully implemented the plan, or
the plan has not been successful.
(5) The provider is unable to fully perform its obligations
pursuant to continuing care contracts.
(6) The residents are otherwise placed in serious jeopardy.
(b) The administrator may only assume the operation of the
continuing care retirement community in order to accomplish one or
more of the following: rehabilitate the provider to enable it fully
to perform its continuing care contract obligations; implement a plan
of reorganization acceptable to the department; facilitate the
transition where another provider assumes continuing care contract
obligations; or facilitate an orderly liquidation of the provider.
(c) With each petition, the department shall include a request for
a temporary restraining order to prevent the provider from disposing
of or transferring assets pending the hearing on the petition.
(d) The provider shall be served with a copy of the petition,
together with an order to appear and show cause why management and
possession of the provider's continuing care retirement community or
assets should not be vested in an administrator.
(e) The order to show cause shall specify a hearing date, which
shall be not less than five nor more than 10 days following service
of the petition and order to show cause on the provider.
(f) Petitions to appoint an administrator shall have precedence
over all matters, except criminal matters, in the court.
(g) At the time of the hearing, the department shall advise the
provider and the court of the name of the proposed administrator.
(h) If, at the conclusion of the hearing, including such oral
evidence as the court may consider, the court finds that any of the
circumstances specified in subdivision (a) exist, the court shall
issue an order appointing an administrator to take possession of the
property of the provider and to conduct the business thereof,
enjoining the provider from interfering with the administrator in the
conduct of the rehabilitation, and directing the administrator to
take steps toward removal of the causes and conditions which have
made rehabilitation necessary, as the court may direct.
(i) The order shall include a provision directing the issuance of
a notice of the rehabilitation proceedings to the residents at the
continuing care retirement community and to other interested persons
as the court may direct.
(j) The court may permit the provider to participate in the
continued operation of the continuing care retirement community
during the pendency of any appointments ordered pursuant to this
section and shall specify in the order the nature and scope of the
participation.
(k) The court shall retain jurisdiction throughout the
rehabilitation proceeding and may issue further orders as it deems
necessary to accomplish the rehabilitation or orderly liquidation of
the continuing care retirement community in order to protect the
residents of the continuing care retirement community.
1793.52. The court-appointed administrator shall immediately notify
the residents of that appointment and of the status of the
continuing care retirement community management.
1793.54. If an administrator is appointed to rehabilitate a
provider, the administrator may do any of the following:
(a) Take possession of and preserve, protect and recover any
assets, books, records, or property of the provider, including, but
not limited to, claims or causes of action belonging to, or which may
be asserted by, the provider.
(b) Deal with the property in the administrator's name in the
capacity as administrator, and purchase at any sale any real estate
or other asset upon which the provider may hold any lien or
encumbrance or in which the provider may have an interest.
(c) File, prosecute, and defend or compromise any suit or suits
which have been filed, or which may thereafter be filed, by or
against the provider as necessary to protect the provider or the
residents or any property affected thereby.
(d) Deposit and invest any of the provider's available funds.
(e) Pay all expenses of the rehabilitation.
(f) Perform all duties of the provider in the provision of care
and services to residents in the continuing care retirement community
at the time the administrator takes possession.
(g) Facilitate the orderly transfer of residents should the
provider ultimately fail.
(h) Exercise any other powers and duties as may be authorized by
law or provided by order of the court.
1793.56. (a) The appointed administrator is entitled to reasonable
compensation.
(b) The costs compensating the administrator may be charged
against the assets of the provider. When the provider's assets and
assets from the continuing care retirement community are
insufficient, the department, in its discretion, may compensate the
administrator from the Continuing Care Provider Fee Fund.
(c) Any individual appointed administrator, pursuant to Section
1793.50, shall be held harmless for any negligence in the performance
of his or her duties and the provider shall indemnify the
administrator for all costs of defending actions brought against him
or her in his or her capacity as administrator.
1793.58. (a) The department, administrator, or any interested
person, upon due notice to the administrator, at any time, may apply
to the court for an order terminating the rehabilitation proceedings
and permitting the provider to resume possession of the provider's
property and the conduct of the provider's business.
(b) The court shall not issue the order requested pursuant to
subdivision (a) unless, after a full hearing, the court has
determined that the purposes of the proceeding have been fully and
successfully accomplished and that the continuing care retirement
community can be returned to the provider's management without
further jeopardy to the residents of the continuing care retirement
community, creditors, owners of the continuing care retirement
community, and to the public.
(c) Before issuing any order terminating the rehabilitation
proceeding the court shall consider a full report and accounting by
the administrator regarding the provider's affairs, including the
conduct of the provider's officers, employees, and business during
the rehabilitation and the provider's current financial condition.
(d) Upon issuance of an order terminating the rehabilitation, the
department shall reinstate the provisional certificate of authority
or certificate of authority. The department may condition, suspend,
or revoke the reinstated certificate only upon a change in the
conditions existing at the time of the order or upon the discovery of
facts which the department determines would have resulted in a
denial of the request for an order terminating the rehabilitation had
the court been aware of these facts.
1793.60. (a) If at any time the department determines that further
efforts to rehabilitate the provider would not be in the best
interest of the residents or prospective residents, or would not be
economically feasible, the department may, with the approval of the
Continuing Care Advisory Committee, apply to the court for an order
of liquidation and dissolution or may apply for other appropriate
relief for dissolving the property and bringing to conclusion its
business affairs.
(b) Upon issuance of an order directing the liquidation or
dissolution of the provider, the department shall revoke the provider'
s provisional certificate of authority or certificate of authority.
1793.62. (a) The department, administrator, or any interested
person, upon due notice to the parties, may petition the court for an
order terminating the rehabilitation proceedings when the
rehabilitation efforts have not been successful, the continuing care
retirement community has been sold at foreclosure sale, the provider
is the subject of an order for relief in bankruptcy, or the provider
has otherwise been shown to be unable to perform its obligations
under the continuing care contracts.
(b) The court shall not issue the order requested pursuant to
subdivision (a) unless all of the following have occurred:
(1) There has been a full hearing and the court has determined
that the provider is unable to perform its contractual obligations.
(2) The administrator has given the court a full and complete
report and financial accounting signed by the administrator as being
a full and complete report and accounting.
(3) The court has determined that the residents of the continuing
care retirement community have been protected to the extent possible
and has made such orders in this regard as the court deems proper.
1793.50. (a) The department, after consultation with the Continuing
Care Advisory Committee, may petition the superior court for an
order appointing a qualified administrator to operate a continuing
care retirement community, and thereby mitigate imminent crisis
situations where elderly residents could lose support services or be
moved without proper preparation, in any of the following
circumstances:
(1) The provider is insolvent or in imminent danger of becoming
insolvent.
(2) The provider is in a financially unsound or unsafe condition.
(3) The provider has failed to establish or has substantially
depleted the reserves required by this chapter.
(4) The provider has failed to submit a plan, as specified in
Section 1793.13, the department has not approved the plan submitted
by the provider, the provider has not fully implemented the plan, or
the plan has not been successful.
(5) The provider is unable to fully perform its obligations
pursuant to continuing care contracts.
(6) The residents are otherwise placed in serious jeopardy.
(b) The administrator may only assume the operation of the
continuing care retirement community in order to accomplish one or
more of the following: rehabilitate the provider to enable it fully
to perform its continuing care contract obligations; implement a plan
of reorganization acceptable to the department; facilitate the
transition where another provider assumes continuing care contract
obligations; or facilitate an orderly liquidation of the provider.
(c) With each petition, the department shall include a request for
a temporary restraining order to prevent the provider from disposing
of or transferring assets pending the hearing on the petition.
(d) The provider shall be served with a copy of the petition,
together with an order to appear and show cause why management and
possession of the provider's continuing care retirement community or
assets should not be vested in an administrator.
(e) The order to show cause shall specify a hearing date, which
shall be not less than five nor more than 10 days following service
of the petition and order to show cause on the provider.
(f) Petitions to appoint an administrator shall have precedence
over all matters, except criminal matters, in the court.
(g) At the time of the hearing, the department shall advise the
provider and the court of the name of the proposed administrator.
(h) If, at the conclusion of the hearing, including such oral
evidence as the court may consider, the court finds that any of the
circumstances specified in subdivision (a) exist, the court shall
issue an order appointing an administrator to take possession of the
property of the provider and to conduct the business thereof,
enjoining the provider from interfering with the administrator in the
conduct of the rehabilitation, and directing the administrator to
take steps toward removal of the causes and conditions which have
made rehabilitation necessary, as the court may direct.
(i) The order shall include a provision directing the issuance of
a notice of the rehabilitation proceedings to the residents at the
continuing care retirement community and to other interested persons
as the court may direct.
(j) The court may permit the provider to participate in the
continued operation of the continuing care retirement community
during the pendency of any appointments ordered pursuant to this
section and shall specify in the order the nature and scope of the
participation.
(k) The court shall retain jurisdiction throughout the
rehabilitation proceeding and may issue further orders as it deems
necessary to accomplish the rehabilitation or orderly liquidation of
the continuing care retirement community in order to protect the
residents of the continuing care retirement community.
1793.52. The court-appointed administrator shall immediately notify
the residents of that appointment and of the status of the
continuing care retirement community management.
1793.54. If an administrator is appointed to rehabilitate a
provider, the administrator may do any of the following:
(a) Take possession of and preserve, protect and recover any
assets, books, records, or property of the provider, including, but
not limited to, claims or causes of action belonging to, or which may
be asserted by, the provider.
(b) Deal with the property in the administrator's name in the
capacity as administrator, and purchase at any sale any real estate
or other asset upon which the provider may hold any lien or
encumbrance or in which the provider may have an interest.
(c) File, prosecute, and defend or compromise any suit or suits
which have been filed, or which may thereafter be filed, by or
against the provider as necessary to protect the provider or the
residents or any property affected thereby.
(d) Deposit and invest any of the provider's available funds.
(e) Pay all expenses of the rehabilitation.
(f) Perform all duties of the provider in the provision of care
and services to residents in the continuing care retirement community
at the time the administrator takes possession.
(g) Facilitate the orderly transfer of residents should the
provider ultimately fail.
(h) Exercise any other powers and duties as may be authorized by
law or provided by order of the court.
1793.56. (a) The appointed administrator is entitled to reasonable
compensation.
(b) The costs compensating the administrator may be charged
against the assets of the provider. When the provider's assets and
assets from the continuing care retirement community are
insufficient, the department, in its discretion, may compensate the
administrator from the Continuing Care Provider Fee Fund.
(c) Any individual appointed administrator, pursuant to Section
1793.50, shall be held harmless for any negligence in the performance
of his or her duties and the provider shall indemnify the
administrator for all costs of defending actions brought against him
or her in his or her capacity as administrator.
1793.58. (a) The department, administrator, or any interested
person, upon due notice to the administrator, at any time, may apply
to the court for an order terminating the rehabilitation proceedings
and permitting the provider to resume possession of the provider's
property and the conduct of the provider's business.
(b) The court shall not issue the order requested pursuant to
subdivision (a) unless, after a full hearing, the court has
determined that the purposes of the proceeding have been fully and
successfully accomplished and that the continuing care retirement
community can be returned to the provider's management without
further jeopardy to the residents of the continuing care retirement
community, creditors, owners of the continuing care retirement
community, and to the public.
(c) Before issuing any order terminating the rehabilitation
proceeding the court shall consider a full report and accounting by
the administrator regarding the provider's affairs, including the
conduct of the provider's officers, employees, and business during
the rehabilitation and the provider's current financial condition.
(d) Upon issuance of an order terminating the rehabilitation, the
department shall reinstate the provisional certificate of authority
or certificate of authority. The department may condition, suspend,
or revoke the reinstated certificate only upon a change in the
conditions existing at the time of the order or upon the discovery of
facts which the department determines would have resulted in a
denial of the request for an order terminating the rehabilitation had
the court been aware of these facts.
1793.60. (a) If at any time the department determines that further
efforts to rehabilitate the provider would not be in the best
interest of the residents or prospective residents, or would not be
economically feasible, the department may, with the approval of the
Continuing Care Advisory Committee, apply to the court for an order
of liquidation and dissolution or may apply for other appropriate
relief for dissolving the property and bringing to conclusion its
business affairs.
(b) Upon issuance of an order directing the liquidation or
dissolution of the provider, the department shall revoke the provider'
s provisional certificate of authority or certificate of authority.
1793.62. (a) The department, administrator, or any interested
person, upon due notice to the parties, may petition the court for an
order terminating the rehabilitation proceedings when the
rehabilitation efforts have not been successful, the continuing care
retirement community has been sold at foreclosure sale, the provider
is the subject of an order for relief in bankruptcy, or the provider
has otherwise been shown to be unable to perform its obligations
under the continuing care contracts.
(b) The court shall not issue the order requested pursuant to
subdivision (a) unless all of the following have occurred:
(1) There has been a full hearing and the court has determined
that the provider is unable to perform its contractual obligations.
(2) The administrator has given the court a full and complete
report and financial accounting signed by the administrator as being
a full and complete report and accounting.
(3) The court has determined that the residents of the continuing
care retirement community have been protected to the extent possible
and has made such orders in this regard as the court deems proper.
1793.50. (a) The department, after consultation with the Continuing
Care Advisory Committee, may petition the superior court for an
order appointing a qualified administrator to operate a continuing
care retirement community, and thereby mitigate imminent crisis
situations where elderly residents could lose support services or be
moved without proper preparation, in any of the following
circumstances:
(1) The provider is insolvent or in imminent danger of becoming
insolvent.
(2) The provider is in a financially unsound or unsafe condition.
(3) The provider has failed to establish or has substantially
depleted the reserves required by this chapter.
(4) The provider has failed to submit a plan, as specified in
Section 1793.13, the department has not approved the plan submitted
by the provider, the provider has not fully implemented the plan, or
the plan has not been successful.
(5) The provider is unable to fully perform its obligations
pursuant to continuing care contracts.
(6) The residents are otherwise placed in serious jeopardy.
(b) The administrator may only assume the operation of the
continuing care retirement community in order to accomplish one or
more of the following: rehabilitate the provider to enable it fully
to perform its continuing care contract obligations; implement a plan
of reorganization acceptable to the department; facilitate the
transition where another provider assumes continuing care contract
obligations; or facilitate an orderly liquidation of the provider.
(c) With each petition, the department shall include a request for
a temporary restraining order to prevent the provider from disposing
of or transferring assets pending the hearing on the petition.
(d) The provider shall be served with a copy of the petition,
together with an order to appear and show cause why management and
possession of the provider's continuing care retirement community or
assets should not be vested in an administrator.
(e) The order to show cause shall specify a hearing date, which
shall be not less than five nor more than 10 days following service
of the petition and order to show cause on the provider.
(f) Petitions to appoint an administrator shall have precedence
over all matters, except criminal matters, in the court.
(g) At the time of the hearing, the department shall advise the
provider and the court of the name of the proposed administrator.
(h) If, at the conclusion of the hearing, including such oral
evidence as the court may consider, the court finds that any of the
circumstances specified in subdivision (a) exist, the court shall
issue an order appointing an administrator to take possession of the
property of the provider and to conduct the business thereof,
enjoining the provider from interfering with the administrator in the
conduct of the rehabilitation, and directing the administrator to
take steps toward removal of the causes and conditions which have
made rehabilitation necessary, as the court may direct.
(i) The order shall include a provision directing the issuance of
a notice of the rehabilitation proceedings to the residents at the
continuing care retirement community and to other interested persons
as the court may direct.
(j) The court may permit the provider to participate in the
continued operation of the continuing care retirement community
during the pendency of any appointments ordered pursuant to this
section and shall specify in the order the nature and scope of the
participation.
(k) The court shall retain jurisdiction throughout the
rehabilitation proceeding and may issue further orders as it deems
necessary to accomplish the rehabilitation or orderly liquidation of
the continuing care retirement community in order to protect the
residents of the continuing care retirement community.
1793.52. The court-appointed administrator shall immediately notify
the residents of that appointment and of the status of the
continuing care retirement community management.
1793.54. If an administrator is appointed to rehabilitate a
provider, the administrator may do any of the following:
(a) Take possession of and preserve, protect and recover any
assets, books, records, or property of the provider, including, but
not limited to, claims or causes of action belonging to, or which may
be asserted by, the provider.
(b) Deal with the property in the administrator's name in the
capacity as administrator, and purchase at any sale any real estate
or other asset upon which the provider may hold any lien or
encumbrance or in which the provider may have an interest.
(c) File, prosecute, and defend or compromise any suit or suits
which have been filed, or which may thereafter be filed, by or
against the provider as necessary to protect the provider or the
residents or any property affected thereby.
(d) Deposit and invest any of the provider's available funds.
(e) Pay all expenses of the rehabilitation.
(f) Perform all duties of the provider in the provision of care
and services to residents in the continuing care retirement community
at the time the administrator takes possession.
(g) Facilitate the orderly transfer of residents should the
provider ultimately fail.
(h) Exercise any other powers and duties as may be authorized by
law or provided by order of the court.
1793.56. (a) The appointed administrator is entitled to reasonable
compensation.
(b) The costs compensating the administrator may be charged
against the assets of the provider. When the provider's assets and
assets from the continuing care retirement community are
insufficient, the department, in its discretion, may compensate the
administrator from the Continuing Care Provider Fee Fund.
(c) Any individual appointed administrator, pursuant to Section
1793.50, shall be held harmless for any negligence in the performance
of his or her duties and the provider shall indemnify the
administrator for all costs of defending actions brought against him
or her in his or her capacity as administrator.
1793.58. (a) The department, administrator, or any interested
person, upon due notice to the administrator, at any time, may apply
to the court for an order terminating the rehabilitation proceedings
and permitting the provider to resume possession of the provider's
property and the conduct of the provider's business.
(b) The court shall not issue the order requested pursuant to
subdivision (a) unless, after a full hearing, the court has
determined that the purposes of the proceeding have been fully and
successfully accomplished and that the continuing care retirement
community can be returned to the provider's management without
further jeopardy to the residents of the continuing care retirement
community, creditors, owners of the continuing care retirement
community, and to the public.
(c) Before issuing any order terminating the rehabilitation
proceeding the court shall consider a full report and accounting by
the administrator regarding the provider's affairs, including the
conduct of the provider's officers, employees, and business during
the rehabilitation and the provider's current financial condition.
(d) Upon issuance of an order terminating the rehabilitation, the
department shall reinstate the provisional certificate of authority
or certificate of authority. The department may condition, suspend,
or revoke the reinstated certificate only upon a change in the
conditions existing at the time of the order or upon the discovery of
facts which the department determines would have resulted in a
denial of the request for an order terminating the rehabilitation had
the court been aware of these facts.
1793.60. (a) If at any time the department determines that further
efforts to rehabilitate the provider would not be in the best
interest of the residents or prospective residents, or would not be
economically feasible, the department may, with the approval of the
Continuing Care Advisory Committee, apply to the court for an order
of liquidation and dissolution or may apply for other appropriate
relief for dissolving the property and bringing to conclusion its
business affairs.
(b) Upon issuance of an order directing the liquidation or
dissolution of the provider, the department shall revoke the provider'
s provisional certificate of authority or certificate of authority.
1793.62. (a) The department, administrator, or any interested
person, upon due notice to the parties, may petition the court for an
order terminating the rehabilitation proceedings when the
rehabilitation efforts have not been successful, the continuing care
retirement community has been sold at foreclosure sale, the provider
is the subject of an order for relief in bankruptcy, or the provider
has otherwise been shown to be unable to perform its obligations
under the continuing care contracts.
(b) The court shall not issue the order requested pursuant to
subdivision (a) unless all of the following have occurred:
(1) There has been a full hearing and the court has determined
that the provider is unable to perform its contractual obligations.
(2) The administrator has given the court a full and complete
report and financial accounting signed by the administrator as being
a full and complete report and accounting.
(3) The court has determined that the residents of the continuing
care retirement community have been protected to the extent possible
and has made such orders in this regard as the court deems proper.
