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25-16.1 Receivers for Developmentally Disabled Facilities

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CHAPTER 25-16.1RECEIVERS FOR DEVELOPMENTALLY DISABLED FACILITIES25-16.1-01. Definitions. In this chapter, unless the context or subject matter otherwiserequires:1.&quot;Department&quot; means the department of human services.2.&quot;Treatment or care center&quot; means any hospital, home, or other premises, operated<br>to provide relief, care, custody, treatment, day activity, work activity, or extended<br>employment services to developmentally disabled persons.25-16.1-02.Conditions for appointment of receiver.When the department hasrevoked the license of a treatment or care center, or when the operator of a center has<br>requested, the department may file a petition with the district court to place the center under the<br>control of a receiver if necessary to protect the health or safety of clients at the center. The court<br>may grant the petition upon a finding that the health or safety of the clients at the center would be<br>seriously threatened if a condition existing at the time the petition was filed is permitted to<br>continue.Such a finding may be based upon evidence concerning the physical plant, theprogram and services offered by the center, but not solely upon evidence that a center:1.Has been denied a license to operate as a center, or has had a previously issued<br>license revoked; or2.Has been denied certification as an intermediate care facility for the mentally<br>retarded, or has lost or had revoked such certification.25-16.1-03. Appointment of receiver. The court shall appoint as receiver the executivedirector of the department who shall designate a qualified individual not employed by this state or<br>its political subdivisions, or a nonprofit organization to execute the receivership. The receiver<br>appointed by the court shall use the income and assets of the treatment or care center to<br>maintain and operate the center and to attempt to correct the conditions which constitute a threat<br>to the clients. The receiver may not liquidate the assets of the treatment or care center.25-16.1-04. Termination of receivership. The receivership shall be terminated whenthe receiver and the court certify that the conditions which prompted the appointment have been<br>corrected, when the license is restored, when a new license is issued, or, in the case of an<br>election by the owner or owners to discontinue operation, when the clients are safely placed or<br>provided services in other centers.25-16.1-05. Accounting. Upon the termination of the receivership, the receiver shallrender a complete accounting to the court and shall dispose of surplus funds as the court directs.Page No. 1Document Outlinechapter 25-16.1 receivers for developmentally disabled facilities