Sponsored by:
Senator JOSEPH F. VITALE
District 19 (Middlesex)
Co-Sponsored by:
Senator Diegnan
SYNOPSIS
Establishes framework for appointment of receiver for provider of services to individuals with developmental disabilities.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning providers of services to individuals with developmental disabilities and supplementing Title 30 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
Commissioner means the Commissioner of the Department of Human Services.
Covered service means day habilitation, individual supports, or any long-term care service provided to an individual with developmental disabilities at a site owned or leased by a provider.
Department means the Department of Human Services.
Division means the Division of Developmental Disabilities.
"Owner" means the holder or holders of the title in fee simple to the property on which the site is located.
Provider means an individual or entity receiving reimbursement for provider-managed services at a site.
Provider-managed services means: a community residence for people with developmental disabilities licensed pursuant to P.L.1977, c.448 (30:11B-1 et seq.), a community residence for persons with head injuries licensed pursuant to P.L.1977, c.448 (30:11B-1 et seq.), a private residential facility for persons with developmental disabilities regulated pursuant to the Health Care Facilities Planning Act," P.L.1971, c. 136 (C.26:2H-1 et seq.), a day habilitation site certified by the Division of Developmental Disabilities, or a covered service.
Recipient means an individual that is both eligible for Division of Developmental Disabilities services and has received a provider-managed service by a provider.
Site means the physical location at which provider-managed services are provided to recipients by a provider.
2. a. The department may file a motion in a court of competent jurisdiction for a judgment directing the appointment of a receiver for a provider. The motion for appointment of a receiver shall include the following:
(1) material facts showing that there exists at one or more sites: a condition, pattern, or practice in substantial violation of the standards of health, safety, or recipient care established under federal, State, or local law, regulations, or policy; or any other conditions dangerous to life, health, or safety of a recipient;
(2) documentation that the material facts provided pursuant to paragraph (1) of this subsection have been brought to the attention of the owner or provider associated with the site and that: the conditions have not been remedied within a reasonable time period, as specified by the department; or that the conditions, although periodically remedied, habitually exist at the site, pursuant to the provisions of subsection g. of this section;
(3) a brief description of what is necessary to remedy the condition; and
(4) the relief sought by the department.
b. It shall be a sufficient defense to a motion by the department for appointment of a receiver if the owner or provider establishes that the conditions alleged in the motion do not in fact exist, that such conditions have been remedied, or that such conditions, although periodically remedied, have not habitually existed, pursuant to the provisions of subsection g. of this section.
c. Following a motion by the department for appointment of a receiver, the court shall proceed in a summary manner and shall render a judgment on the motion either:
(1) dismissing the motion for failure by the department to affirmatively establish the allegations or because of the affirmative establishment by the owner or provider of a defense specified in subsection b. of this section;
(2) issuing an order for the appointment of a receiver approved by the department in accordance with the provisions of this act, as well as granting any other relief sought by the department; or
(3) granting such other relief as the court deems just and proper.
d. An order appointing a receiver, issued by the court pursuant to paragraph (2) of subsection c. of this section, shall include, but shall not be limited to, provisions regarding the following:
(1) the turnover of assets to the receiver by the owner and provider;
(2) the compensation of the receiver and its professionals and consultants from the receivership property;
(3) an injunction against interference by officers, directors, shareholders, agents, employees, representatives, and attorneys;
(4) the receivers authority to pay reasonable salary expenses, including retention incentives for direct support professionals;
(5) the limitation of the receivers liability;
(6) the receivers authority to open bank accounts to fulfill receivership duties;
(7) the receivers maintenance of a surety bond and fidelity and comprehensive crime bond, the cost of which shall be paid from the receivership property;
(8) the receivers authority to maintain the insurance policies of the owner and provider;
(9) progress reports, if required by the court;
(10) any authorization required under the "Health Insurance Portability and Accountability Act of 1996," Pub.L.104-191; and
(11) an injunction against: disconnection or service change by utility suppliers, including entities providing alarm and fire protection services or equipment; attachment, levy, or service discontinuation by creditors, set off amounts held in accounts by banks or other financial institutions; any action by all lessors and lienholders with respect to real property or furniture, furnishings, equipment, vehicles, or other personal property; commencement of continuation of litigation; and cancellation of insurance policies for a period of 90 days.
e. (1) If, after a trial, the court determines that the evidence presented by the department warrants the appoint of a receiver and any other relief sought by the department, the owner or provider may apply to the court for permission to remedy the conditions specified in the motion submitted by the department, which application shall demonstrate the ability of the owner or provider to promptly undertake and complete the work required. After review of the applic