The purpose of a receivership authorized under this subchapter shall be to safeguard the health, safety, and welfare of a facility's residents when seriously endangered, to ensure their continuity of care, to safeguard their rights as recognized by District and federal law, and to protect them from the increased stress and risk of trauma often associated with abrupt or unplanned transfer and discharge. A receiver appointed under this subchapter shall not take any actions or assume any responsibilities inconsistent with this purpose. Nothing in this subchapter shall be construed to limit or abrogate any other common-law or statutory right to petition for receivership.
(Apr. 18, 1986, D.C. Law 6-108, § 201, 33 DCR 1510.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 32-1411.
Legislative History of Laws
For legislative history of D.C. Law 6-108, see Historical and Statutory Notes following § 44-1001.01.
A receiver may be appointed under this subchapter on one or more of the following grounds:
(1) The facility is unlawfully operating without a current District license;
(2) The licensee has abandoned the facility;
(3) The facility is closing within 30 calendar days and cannot offer verifiable evidence that adequate arrangements, designed to minimize transfer trauma, have been made to relocate its residents;
(4) A condition or practice in the facility poses a serious, widespread danger, either immediate or recurring, to the health, safety, or welfare of the residents;
(5) Violations of residents' rights, established pursuant to § 44-504(a)(4), are chronic, substantial, and widespread;
(6) Insolvency of an owner or the licensee has placed the continued operation of the facility in serious jeopardy; or
(7) The facility has been issued a restricted or provisional license by the Department of Health.
(Apr. 18, 1986, D.C. Law 6-108, § 202, 33 DCR 1510; Apr. 29, 2010, D.C. Law 18-145, § 4(a), 57 DCR 1834.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 32-1412.
Effect of Amendments
D.C. Law 18-145 deleted "or" from the end of par. (5); substituted "; or" for a period at the end of par. (6); and added par. (7).
Legislative History of Laws
For legislative history of D.C. Law 6-108, see Historical and Statutory Notes following § 44-1001.01.
For Law 18-145, see notes following § 44-504.
(a) Notwithstanding the availability of any other remedy, the Attorney General for the District of Columbia may, in the name of the District and based on one or more of the grounds listed in § 44-1002.02, petition the court to appoint a receiver for any facility.
(b) Notwithstanding the availability of any other remedy, a resident, a resident's representative, the Long-Term Care Ombudsman, or any other advocate representing the interests of a facility's residents may, based on one or more of the grounds listed in § 44-1002.02(2) through (6), submit a written request asking the Attorney General for the District of Columbia to petition the court to appoint a receiver for any facility. If the Attorney General for the District of Columbia denies the request or does not file a petition within 5 days (excluding Saturdays, Sundays, and legal holidays) after receiving a request, the requestor may file with the court a petition for the appointment of a receiver.
(c) The licensee of any facility may, based on one or more of the grounds listed in § 44-1002.02, petition the court to appoint a voluntary receiver for that facility.
(Apr. 18, 1986, D.C. Law 6-108, § 203, 33 DCR 1510; Apr. 13, 2005, D.C. Law 15-354, § 67, 52 DCR 2638.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 32-1413.
Effect of Amendments
D.C. Law 15-354 substituted "Attorney General for the District of Columbia" for "Corporation Counsel".
Legislative History of Laws
For legislative history of D.C. Law 6-108, see Historical and Statutory Notes following § 44-1001.01.
For Law 15-354, see notes following § 44-212.
(a)(1) The court shall hold a hearing on a petition filed under § 44-1002.03 within 10 days (excluding Saturdays, Sundays, and legal holidays) after it is filed.
(2) The petitioner (if he or she is not the licensee) shall ensure that the licensee or administrator of the facility is served with notice of the hearing date and a copy of the petition:
(A) In accordance with court rules, at least 5 days (excluding Saturdays, Sundays, and legal holidays) before the hearing; or
(B) By a notice conspicuously posted inside or on the front door of the facility at least 3 days (excluding Saturdays, Sundays, and legal holidays) before the hearing, if the petitioner files with the court a sworn statement setting forth in detail his or her diligent but unsuccessful efforts to find the licensee or administrator and serve process.
(3) Upon filing a petition with the court, a petitioner other than the District shall serve notice of the hearing date and a copy of the petition on the Attorney General for the District of Columbia. No later than 5 days (excluding Saturdays, Sundays, and legal holidays) after receiving a copy of the petition, the Attorney General for the District of Columbia shall, to the extent allowable under federal law, make available to the petitioner for his or her use in the proceedings certified copies of all licensure and Medicare/Medicaid certification reports within the custody of the District government that document conditions in the facility within the previous 2 years.
(b)(1) The court may appoint a receiver immediately upon the filing of a petition under § 44-1002.03 if it finds probable cause to believe a condition or practice in a facility poses an immediate danger of death or life-threatening injury to the residents.
(2) In the event of an ex parte appointment under paragraph (1) of this subsection, the petitioner (if he or she is not the licensee) shall ensure that the licensee or administrator of the facility is served with notice of the hearing date and copies of the petition, any supporting affidavit(s), and the order of appointment:
(A) By personal service within 24 hours after the appointment; or
(B) By a notice conspicuously posted inside or on the front door of the facility within 48 hours after the appointment, if the petitioner files with the court a sworn statement setting forth in detail his or her diligent but unsuccessful efforts to find the licensee or administrator and serve process.
(Apr. 18, 1986, D.C. Law 6-108, § 204, 33 DCR 1510; Apr. 13, 2005, D.C. Law 15-354, § 67, 52 DCR 2638.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 32-1414.
Effect of Amendments
D.C. Law 15-354 substituted "Attorney General for the District of Columbia" for "Corporation Counsel".
Legislative History of Laws
For legislative history of D.C. Law 6-108, see Historical and Statutory Notes following § 44-1001.01.
For Law 15-354, see notes following § 44-212.
(a) After a hearing the court may appoint a receiver for the facility or continue the appointment of a receiver made ex parte if it finds that the petitioner has proven, by clear and convincing evidence, the existence of one or more of the grounds for receivership listed in § 44-1002.02
(b)(1) The Mayor shall, after consulting with appropriate District government agencies, the Long-Term Ombudsman, and representatives from nursing home, Assisted Living Residence, and community residence facility providers, establish a list of potential receivers with experience in the delivery of health-care or personal care services preferably in the operation of a nursing home, Assisted Living Residence, or community residence facility.
(2) Except as provided in paragraph (3) of this subsection, the court may appoint as a receiver any qualified person with experience in the delivery of health-care or personal care services preferably in the operation of a nursing home, Assisted Living Residence, or community residence facility. In deciding whom to appoint, the court shall give strong consideration to the list of mayoral nominees established pursuant to paragraph (1) of this subsection.
(3) The court shall not appoint as a receiver:
(A) An employee of a District government agency that licenses, operates, or provides a financial payment to the type of facility being placed in receivership;
(B) The owner, licensee, or administrator of the facility, or an affiliate of the owner, licensee, or administrator; or
(C) A parent, child, grandchild, spouse, domestic partner, sibling, first cousin, aunt, or uncle of one of the facility's residents, whether the relationship arises by blood, marriage, domestic partnership, or adoption. For the purposes of this subparagraph, the term "domestic partner" shall have the same meaning as provided in § 32-701(3), and the term "domestic partnership" shall have the same meaning as provided in § 32-701(4).
(c)(1) Before a receiver takes charge of a facility, he or she shall file a bond with the court that:
(A) Does not exceed the value of the facility and its assets; and
(B) Runs to the District for the benefit of all persons interested in his or her faithful performance of the receivership.
(2) Unless the court directs otherwise, the receiver may pay the premium of the bond from the facility's income.
(d) Any person authorized to file a petition under § 44-1002.03 may petition the court to appoint a substitute for a receiver who:
(1) Dies;
(2) Has or develops a disability that impedes his or her ability to carry out the receivership;
(3) Has or develops a conflict of interest; or
(4) Fails to make reasonable progress in carrying out the receivership.
(Apr. 18, 1986, D.C. Law 6-108, § 205, 33 DCR 1510; June 24, 2000, D.C. Law 13-127, § 1404(b), 47 DCR 2647; Sept. 12, 2008, D.C. Law 17-231, § 39, 55 DCR 6758.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 32-1415.
Effect of Amendments
D.C. Law 13-127 amended subsec. (b)(1) and (2) by adding the phrase ", Assisted Living Residence," after the phrase "nursing home" wherever it appears and by adding the phrase "or personal care services," after the word "health-care" wherever it appears.
D.C. Law 17-231 rewrote subsec. (b)(3)(C), which had read as follows:
"(C) A parent, child, grandchild, spouse, sibling, first cousin, aunt, or uncle of one of the facility's residents, whether the relationship arises by blood, marriage, or adoption."
Legislative History of Laws
For legislative history of D.C. Law 6-108, see Historical and Statutory Notes following § 44-1001.01.
For Law 13-127, see notes following § 44-401.
Law 17-231, the "Omnibus Domestic Partnership Equality Amendment Act of 2008", was introduced in Council and assigned Bill No. 17-135, which was referred to the Committee on Public Safety and the Judiciary. The Bill was adopted on first and second readings on April 1, 2008, and May 6, 2008, respectively. Signed by the Mayor on June 6, 2008, it was assigned Act No. 17-403 and transmitted to both Houses of Congress for its review. D.C. Law 17-231 became effective on September 12, 2008.
(a) A receiver shall:
(1) Take charge of the operation and management of the facility and assume all rights to possess and use the building, fixtures, furnishings, records, and other related property and goods that the owner, licensee, or administrator would have if the receiver had not been appointed;
(2) Give notice of the receivership, in accordance with subsection (b) of this section, to the facility's residents and employees, each resident's representative, the Long-Term Care Ombudsman, and any other person whom the court orders should receive notice;
(3) Exercise his or her powers to correct all of the conditions that prompted the need for receivership, to ensure quality care for each resident, and to promote full respect for the rights of residents established by District and federal law;
(4) Unless the facility is closing, take all steps necessary to maintain or restore District licensure and federal Medicare/Medicaid certification;
(5) Preserve all property and records with which he or she is entrusted;
(6) Report to the court in accordance with a schedule established by the court; and
(7) Carry out any other duties established by the court.
(b) The notice required by subsection (a)(2) of this section shall include at a minimum the following information in not less than 12-point type:
(1) The reasons for and purpose of the receivership;
(2) The identity of the receiver and how he or she may be contacted;
(3) The anticipated duration of the receivership; and
(4) Unless the receiver was appointed to facilitate the orderly transfer or discharge of residents, a statement in boldface making clear to the residents that they do not have to move.
(c) Except as otherwise provided by Chapter 13 of Title 7, whenever a resident is to be discharged, transferred, or relocated, a receiver shall:
(1) Comply with subchapter III of this chapter;
(2) Explain to the resident and resident's representative the alternative placements that are available, help them find an appropriate alternative placement, and provide them with information about the alternative placement chosen;
(3) Transport the resident to the alternative placement chosen; and
(4) Transfer all property of and records pertaining to the resident, including all necessary health information, to the resident, resident's representative, or appropriate authority at the alternative placement.
(d) A receiver may:
(1) Use in a reasonable and prudent manner all private and third-party payments to the facility, including payments made under Medicare or Medicaid and, with the approval of the court, money from the special fund or account if established under § 44-1002.09;
(2) Enter into contracts and hire agents, consultants, and employees to carry out the powers and duties established by this section;
(3) Direct, manage, and discharge employees of the facility, subject to District law and any contract rights they may have; and
(4) Exercise any other powers authorized by the court.
(e) If the structural, architectural, or environmental conditions of a facility violate District or federal law or otherwise endanger the health, safety, or welfare of the residents, the receiver may correct the violation:
(1) Without the consent of the court, if the cost of the correction does not exceed $5,000; or
(2) Upon court approval of a written estimate and plan of correction, if the cost of the correction exceeds $5,000.
(f)(1) Except as provided in paragraphs (2) through (6) of this subsection, a receiver shall honor all leases, mortgages, secured transactions, and other contracts related to the facility and its operation.
(2) A receiver shall assume all rights to enforce or avoid the terms of a lease, mortgage, secured transaction, or other contract related to the facility and its operation that the owner, licensee, or administrator would have if the receiver had not been appointed.
(3) A receiver shall not be required to honor a lease, mortgage, secured transaction, or other contract related to the facility and its operation if the obligee is, or at the time the obligation was created was, the licensee or administrator of the facility or an affiliate of the licensee or administrator.
(4) A receiver may petition the court to allow him or her to wholly or partially avoid the terms of a lease, mortgage, secured transaction, or other contract that the licensee or administrator of the facility entered into if those terms provide for a rent, interest rate, or other payment substantially in excess of an amount that was reasonable at the time the contract was entered into, or if performance of the contract would substantially impede the receiver's ability to carry out the purposes of the receivership.
(5)(A) The court shall hold a hearing on a petition filed under paragraph (4) of this subsection within 15 days (excluding Saturdays, Sundays, and legal holidays) after it is filed.
(B) The receiver shall ensure that, at least 10 days (excluding Saturdays, Sundays, and legal holidays) before the hearing, notice of the hearing date and a copy of the petition are served in accordance with court rules on all persons whose legal or beneficial interest in the contract at issue is ascertainable with reasonable diligence.
(6) If the court finds that the receiver has proven the averments in the petition by clear and convincing evidence, it may, for the duration of the receivership, excuse performance of the contract or adjust the rent, interest rate, or other payment under the contract to an amount that was reasonable at the time the contract was entered into.
(7) Compliance with a court order issued under paragraph (6) of this subsection shall be a defense to any action brought against a receiver alleging breach of contract. The receiver's compliance with a court order, however, shall not relieve the licensee or administrator of the facility of his or her liability for the difference between the amount paid by the receiver and the amount originally due under the contract.
(g) A receiver shall be personally liable only for his or her acts of gross negligence or intentional wrongdoing in carrying out the receivership.
(h) A receiver shall be entitled to a reasonable fee established by the court to be paid from the revenues of the facility.
(Apr. 18, 1986, D.C. Law 6-108, § 206, 33 DCR 1510.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 32-1416.
Legislative History of Laws
For legislative history of D.C. Law 6-108, see Historical and Statutory Notes following § 44-1001.01.
(a) Except as provided in subsection (b) of this section, a receivership shall terminate when:
(1) The person who will assume control of the facility has been granted a current license by the Mayor and:
(A) The time period specified in the order appointing the receiver elapses and is not extended; or
(B) The court determines the receivership is no longer necessary because the grounds on which it was based no longer exist; or
(2) The facility is closing and all of its residents have been transferred or discharged.
(b)(1) Notwithstanding subsection (a) of this section, a receivership of a private facility shall not be terminated in favor of any person who was the licensee or administrator at the time a petition was filed under § 44- 1002.03, or, in the discretion of the court, any person who is or was an affiliate of the licensee or administrator, unless he or she first:
(A) Reimburses the District government for any increase in Medicaid expenditures needed to finance the receiver's bond premium under § 44- 1002.05(c)(2), to pay the receiver's fee under § 44-1002.06(h), or to correct deficiencies caused by the licensee's or administrator's own negligence; and
(B) Reimburses the District government for any amount it loaned the receiver for major repairs or improvements to the facility, or assumes an obligation to repay the loan and provides collateral or other assurance of payment deemed sufficient by the Mayor.
(2) The court may in addition require that, before a person specified in paragraph (1) of this subsection resumes control of a facility, he or she post bond in an amount it deems appropriate as security against future noncompliance with the law. If the receivership is not reinstated under subsection (c) of this section, the bond money shall be returned.
(c) Should it appear that, within 2 years after a receivership is terminated in favor of a person specified in subsection (b)(1) of this section, that person is not maintaining the facility in substantial compliance with all applicable laws, and should the court so find after granting notice and a hearing to all parties to the earlier receivership proceeding, the previous order appointing a receiver may be reinstated. A receiver thus reappointed may use all or part of any bond posted pursuant to subsection (b)(2) of this section to remedy the deficiencies.
(Apr. 18, 1986, D.C. Law 6-108, § 207, 33 DCR 1510.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 32-1417.
Legislative History of Laws
For legislative history of D.C. Law 6-108, see Historical and Statutory Notes following § 44-1001.01.
Within 30 calendar days after termination of a receivership, the receiver shall give the court a complete accounting of all property with which he or she has been entrusted, all funds collected, and all expenses incurred.
(Apr. 18, 1986, D.C. Law 6-108, § 208, 33 DCR 1510.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 32-1418.
Legislative History of Laws
For legislative history of D.C. Law 6-108, see Historical and Statutory Notes following § 44-1001.01.
(a) The Mayor may establish a special revolving fund or a separate allocable revenue account in the General Fund to provide financial support in the form of loans to a receiver of a facility. If established, this fund or account may be supported in accordance with subsection (f) of this section.
(b) For the purposes of this section, the term "fund" means the special revolving fund or separate allocable revenue account referred to in subsection (a) of this section.
(c) If expenses remain unpaid after a receiver uses all private and third-party payments, the receiver may petition the court for money from the fund. Before the court authorizes use of money from the fund, it shall hold a hearing at which the Mayor, the receiver, the licensee, the owner, and the administrator of the facility may offer evidence on whether the court should approve the loan. Notice of the hearing shall be given to the Mayor, the receiver, the licensee, the owner, and the administrator of the facility at least 7 days (excluding Saturdays, Sundays, and legal holidays) before the hearing.
(d)(1) A loan from the fund shall create an automatic lien on the facility and its assets in the amount of the loan. The receiver shall file with the Mayor a document setting forth:
(A) The amount of the loan;
(B) The name of the facility to which the lien attaches; and
(C) A description of the assets of the facility that are affected by the lien.
(2) A lien created under this subsection shall:
(A) Extend to the property of the facility described in the document filed under paragraph (1) of this subsection and to the beneficial interest in that property possessed by the owner; and
(B) Have priority over any other lien or interest that attaches after the filing date, except as otherwise provided by federal law.
(e) In addition to receivership loans, the Mayor may use money from the fund for low-interest loans or grants to facilities to help improve resident care, address the personal needs of residents, and enhance resident safety.
(f) The Mayor may support the fund with money received from:
(1) The collection of civil fines, penalties, and related costs imposed against a facility;
(2) The sale of properties subject to liens created by this section;
(3) The assessment of facility licensure fees; and
(4) The repayment of loans made under this section.
(g) Any money in the fund in excess of $500,000 shall revert to the General Fund.
(Apr. 18, 1986, D.C. Law 6-108, § 209, 33 DCR 1510.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 32-1419.
Legislative History of Laws
For legislative history of D.C. Law 6-108, see Historical and Statutory Notes following § 44-1001.01.
Delegation of Authority
Delegation of authority pursuant to Law 6-108, see Mayor's Order 87-47, February 17, 1987.
(a) Any person authorized to file a petition for receivership may, based on one or more of the grounds listed in § 44-1002.02, petition the court for the appointment of a monitor. In addition, in lieu of appointing a receiver when a petition for receivership has been filed, the court may, on either its own motion or the motion of a party, appoint a monitor instead. The grounds and procedures set forth in §§ 44-1002.02 to 44-1002.05, except for the requirement of a bond in § 44-1002.05(c), shall apply to the appointment of a monitor. The appointment of a monitor may be terminated by the court for any of the reasons listed in § 44-1002.07(a) or if the court determines that a receiver should be appointed.
(b) A monitor appointed under this section shall observe the operation of the facility, advise the facility on how to comply with District and federal law, and report periodically to the court. In each report to the court, the monitor shall make a recommendation on whether a receiver should be appointed for the facility.
(c) Whenever a person requests the Attorney General for the District of Columbia to petition for the appointment of a receiver under § 44-1002.03(b) and the Attorney General for the District of Columbia instead petitions the court for the appointment of a monitor, the request shall be considered denied and the requestor may petition the court for the appointment of a receiver.
(Apr. 18, 1986, D.C. Law 6-108, § 210, 33 DCR 1510; Apr. 13, 2005, D.C. Law 15-354, § 67, 52 DCR 2638.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 32-1420.
Effect of Amendments
D.C. Law 15-354 substituted "Attorney General for the District of Columbia" for "Corporation Counsel".
Legislative History of Laws
For legislative history of D.C. Law 6-108, see Historical and Statutory Notes following § 44-1001.01.
For Law 15-354, see notes following § 44-212.
