Section 1421.5 Of Chapter 2.4. Quality Of Long-term Health Facilities From California Health And Safety Code >> Division 2. >> Chapter 2.4.
1421.5
. (a) (1) Within 24 hours of the filing of a bankruptcy
petition under Title 11 of the United States Code or any other laws
of the United States, by any person or entity holding a controlling
interest in a long-term health care facility, the licensee of the
long-term health care facility shall provide written notification to
the department of the filing of the petition and the location of the
court in which the petition was filed. The written notification may
be provided to the department by telephone facsimile or overnight
mail.
(2) Within 24 hours of the appointment of a trustee by the
bankruptcy court, the long-term health care facility shall provide
written notification to the department of the name, address, and
telephone number of the trustee. The written notification may be
provided to the department by telephone facsimile or overnight mail.
(3) The department shall provide written notification to the
trustee of the requirements of operating a licensed long-term health
care facility within three days of being notified of the appointment
of the trustee. The contents of this written notice may be provided
to the trustee by telephone facsimile or overnight mail and shall
include, but not be limited to, all of the following:
(A) The trustee is required to manage and operate the long-term
health care facility according to the requirements of state law, in
the same manner that the owner or possessor of the facility would be
required to manage and operate the facility, including, but not
limited to, complying with Article 8.5 (commencing with Section 1336)
of Chapter 2, Chapter 3.9 (commencing with Section 1599), and
Sections 72527, 73523, and 76525 of Title 22 of the California Code
of Regulations.
(B) The transfer of patients pursuant to the liquidation of a
licensed long-term health care facility presents a compelling public
health and safety risk, and the trustee will not be exempted from
complying with applicable state law for any reason.
(b) (1) As mandated by subdivision (b) of Section 959 of Title 28
of the United States Code, an individual appointed as a trustee in a
bankruptcy proceeding described in this section that involves any
person or entity holding a controlling interest in a long-term health
care facility shall comply with all state licensing and federal
certification requirements applicable to the long-term health care
facility, including, but not limited to, those governing patient
rights, transfer or discharge, and facility closure. The transfer of
patients pursuant to the liquidation of a licensed long-term health
care facility presents a compelling public health and safety risk,
and a trustee shall not be exempted from complying with applicable
state law for any reason.
(2) If a trustee fails to comply with the state licensing
requirements applicable to a long-term health care facility, the
department shall report the trustee's actions to the bankruptcy court
and intervene as appropriate to ensure continued facility compliance
with those requirements.