Section 1524.1 Of Article 2. Administration From California Health And Safety Code >> Division 2. >> Chapter 3. >> Article 2.
1524.1
. (a) Notwithstanding Section 1524, in the event of a sale of
a licensed community care facility, except foster family homes and
small family homes, where the sale will result in a new license being
issued, the sale and transfer of property and business shall be
subject to both of the following:
(1) The licensee shall provide written notice to the department
and to each resident or client or his or her legal representative of
the licensee's intent to sell the facility at least 60 days prior to
the transfer of property or business, or at the time that a bona fide
offer is made, whichever period is longer.
(2) The licensee shall, prior to entering into an admission
agreement, inform all residents/clients, or their legal
representatives, admitted to the facility after notification to the
department, of the licensee's intent to sell the property or
business.
(b) Except as provided in subdivision (e), the property and
business shall not be transferred until the buyer qualifies for a
license or provisional license pursuant to this chapter.
(1) The seller shall notify, in writing, a prospective buyer of
the necessity to obtain a license, as required by this chapter, if
the buyer's intent is to continue operating the facility as a
community care facility. The seller shall send a copy of this written
notice to the licensing agency.
(2) The prospective buyer shall submit an application for a
license, as specified in Section 1520, within five days of the
acceptance of the offer by the seller.
(c) No transfer of the property or business shall be permitted
until 60 days have elapsed from the date when notice has been
provided to the department pursuant to paragraph (1) of subdivision
(a).
(d) The department shall give priority to applications for
licensure that are submitted pursuant to this section in order to
ensure timely transfer of the property and business. The department
shall make a decision within 60 days after a complete application is
submitted on whether to issue a license pursuant to Section 1520.
(e) If the parties involved in the transfer of the property and
business fully comply with this section, then the transfer may be
completed and the buyer shall not be considered to be operating an
unlicensed facility while the department makes a final determination
on the application for licensure.