1267.6.
(a) Upon the sale, transfer of operation, including management changes, assignment, lease, or other change or transfer of ownership of a facility defined in subdivision (c) of Section 1250, a prospective transferee or prospective licensee shall, in addition to any other requirements of this chapter, submit a notice of intent to the department at least 90 days prior to the transfer or change of ownership.(b) The notice of intent shall be on a form supplied by the department and shall be deemed complete upon submission of all information that the department requires on the form. Within 90 days of submission of the completed notice of intent form, the department shall determine whether the prospective transferee or prospective licensee is
responsible and suitable for licensure.
(c) For purposes of this section, the department’s determination of whether a prospective transferee or prospective licensee is responsible and suitable for licensure shall include, but not be limited to, a review of all of the following:
(1) The criminal history of the prospective transferee, prospective licensee, or any officer, director, shareholder, or general or limited partner thereof.
(2) The financial capacity of the prospective transferee or prospective licensee to operate the facility and to provide services required by state and federal regulations.
(3) The history of the prospective transferee or prospective licensee in providing long-term care in this state, measured by compliance with applicable
statutes and regulations governing the operation of long-term care facilities.
(4) The history of the prospective transferee or prospective licensee in providing long-term care in states other than California, if any, measured by compliance with the applicable statutes and regulations governing the operation of long-term care facilities in those states.
(5) The history of the prospective transferee or prospective licensee in complying with employment laws.
(d) The department shall notify the prospective transferee or prospective licensee in writing, within the 90-day period described in subdivision (b), of its decision on whether the prospective transferee or prospective licensee is responsible and suitable for licensure.
(1) Upon a determination by the
department that the prospective transferee or prospective licensee is responsible and suitable for licensure, and upon a transfer or change of ownership, the prospective transferee or prospective licensee may file an application for a license, which shall have the effect of a license until the department takes final action on the application.
(2) If the department determines that the prospective transferee or prospective licensee is not responsible and suitable for licensure, the department’s determination shall take effect on the date of the department’s notice to the prospective licensee or transferee. The prospective transferee or prospective licensee shall, upon written request, be granted an administrative hearing to appeal the determination. During the pendency of the appeal, the prospective transferee or prospective licensee shall not operate the facility as a licensee, nor manage the facility.
(e) A transfer of ownership of the facility shall not occur unless the prospective transferee or prospective licensee has been determined responsible and suitable for licensure in accordance with this section.
(f) The department shall not approve an application for a license to operate, or for approval to manage, a skilled nursing facility, as defined in Section 1250, unless the prospective transferee or prospective licensee has been determined responsible and suitable for licensure in accordance with this section.