Section 1569.191 Of Article 2. Licensing From California Health And Safety Code >> Division 2. >> Chapter 3.2. >> Article 2.
1569.191
. (a) Notwithstanding Section 1569.19, in the event of a
sale of a licensed facility 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 his or her legal representative of the
licensee's intent to sell the facility at least 30 days prior to the
transfer of the 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, 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 within the appropriate provisions of
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
residential care facility for the elderly. 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 1569.15, within five days of the
acceptance of the offer by the seller.
(c) No sale of the facility shall be permitted until 30 days have
elapsed from the date upon which notice has been provided pursuant to
paragraphs (1) and (2) 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 1569.15.
(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.
(f) Facilities that are subject to Chapter 10 (commencing with
Section 1770) of Division 2, including Section 1789.4, shall not be
subject to paragraph (1) of subdivision (a), and subdivisions (c) and
(d).