2012 North Dakota Century Code Title 25 Mental and Physical Illness or Disability Chapter 25-16.1 Receivers for Developmentally Disabled Facilities
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CHAPTER 25-16.1
RECEIVERS FOR DEVELOPMENTALLY DISABLED FACILITIES
25-16.1-01. Definitions.
In this chapter, unless the context or subject matter otherwise requires:
1. "Department" means the department of human services.
2. "Treatment or care center" means any hospital, home, or other premises, operated to
provide relief, care, custody, treatment, day activity, work activity, or extended
employment services to developmentally disabled persons.
25-16.1-02. Conditions for appointment of receiver.
When the department has revoked the license of a treatment or care center, or when the
operator of a center has requested, the department may file a petition with the district court to
place the center under the control of a receiver if necessary to protect the health or safety of
clients at the center. The court may grant the petition upon a finding that the health or safety of
the clients at the center would be seriously threatened if a condition existing at the time the
petition was filed is permitted to continue. Such a finding may be based upon evidence
concerning the physical plant, the program 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
license revoked; or
2. Has been denied certification as an intermediate care facility for individuals with
intellectual disabilities, or has lost or had revoked such certification.
25-16.1-03. Appointment of receiver.
The court shall appoint as receiver the executive director of the department who shall
designate a qualified individual not employed by this state or its political subdivisions, or a
nonprofit organization to execute the receivership. The receiver appointed by the court shall use
the income and assets of the treatment or care center to maintain and operate the center and to
attempt to correct the conditions which constitute a threat 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 when the receiver and the court certify that the
conditions which prompted the appointment have been corrected, when the license is restored,
when a new license is issued, or, in the case of an election by the owner or owners to
discontinue operation, when the clients are safely placed or provided services in other centers.
25-16.1-05. Accounting.
Upon the termination of the receivership, the receiver shall render a complete accounting to
the court and shall dispose of surplus funds as the court directs.
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