§ 87111 — Continuation of License Under Emergency

CONDITIONS OR SALE OF PROPERTY

(a)  The licensing agency may consent to a change of location and continuation of the existing license of any facility for a reasonable period of time when the change is requested because of the accidental destruction of the licensed premises or similar emergency conditions, so long as the new location or place of performance conforms to building, fire and life safety standards.

(b)  In the event of a licensee's death, an adult who has control of the property, and had been designated by the licensee as the party responsible to continue operation of the facility upon a licensee's death shall:

(1)  notify the Department by the next working day of the licensee's death;

(2)  inform the Department within 5 working days if the designee decides not to apply for licensure.

(A)  If the designee decides not to apply, the Department will help the designee develop and implement a relocation plan for facility residents.

(c)  The Department may permit a designee to continue operation of a previously licensed facility, and grant an Emergency Approval to Operate (EAO) to a facility for up to 60 days pending issuance or denial of a license, provided the following requirements of Health and Safety Code section 1569.193 are met:

(1)  The designee notifies the Department during the next working day following the death of the licensee, that he/she will continue to operate the facility.

(2)  A notarized designation of the adult, authorized by the licensee, to continue operation of the facility in the event of the licensee's death, was filed by the licensee with the Department.

(A)  The notarized statement was signed by the designee, and indicated acceptance of the designation.

(B)  The notarized statement contains, or is accompanied by a declaration under penalty of perjury, regarding any criminal convictions of the designee.

(3)  The designee is able to operate the facility to the satisfaction of the Department.

(4)  The designee files an application for licensure, and provides a copy of the licensee's death certificate, obituary notice, certification of death from the decedent's mortuary, or a letter from the attending physician or coroner's office verifying the death of the licensee, within 20 calendar days of the licensee's death.

CONDITIONS OR SALE OF PROPERTY (Continued)

(5)  The applicant who is issued an EAO shall perform all the duties, functions, and responsibilities required of a licensee.

(A)  Failure to comply with licensing laws and regulations under Section 87111(b) as determined by the licensing agency, shall result in the denial of the application for license.  This denial shall also constitute termination of the EAO.

(B)  The licensing agency shall provide written notification of the denial and this notice shall be effective immediately upon receipt.

(d)  The Department shall determine, within 60 days, after receipt of the completed application, whether a license will be issued.

(e)  Following receipt of a completed application, the designee shall not be considered to be operating an unlicensed facility while the Department decides whether to grant the license.

(f)  In the event of the sale and transfer of property and business, the applicant (buyer) shall be issued an EAO if the applicant (buyer) complies with Health and Safety Code section 1569.191.

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Health and Safety Code, section 1569.191 provides in part:

“(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 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.

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CONDITIONS OR SALE OF PROPERTY (Continued)

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(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 which 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 final determination on the application for licensure...."

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(g)  "A bona-fide offer", as specified in Health and Safety Code section 1569.191(a)(1), shall mean a proposal by the buyer to purchase the facility with definite terms in writing communicated to the seller and accompanied by a cash deposit.

NOTE:  Authority cited:  Sections 1569.30, Health and Safety Code.  Reference:  Sections 1569.1, 1569.15,  1569.191 and 1569.193, Health and Safety Code.