Section 1793.50 Of Article 8. Appointment Of Administrators From California Health And Safety Code >> Division 2. >> Chapter 10. >> Article 8.
1793.50
. (a) The department 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.