Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

Section 71 of chapter 111 of the General Laws, as appearing in the 1986 Official Edition, is hereby amended by striking out the third paragraph and inserting in place thereof the following six paragraphs:-

In the case of the transfer of ownership of a convalescent or nursing home, infirmary maintained in a town, rest home, charitable home for the aged or intermediate care facility for the mentally retarded, a prospective transferee, in the capacity of a prospective licensee, shall submit a notice of intent to acquire such a facility to the department at least ninety days prior to the transfer of ownership. The notice of intent shall be on a form supplied by the department and shall be deemed complete upon submission of all information which the department requires on the notice of intent form and is reasonably necessary to carry out the purposes of this section. Within ninety days of the submission of a completed notice of intent form, the department shall determine whether such prospective licensee is responsible and suitable for licensure. Requests by the department for information other than the information required on the notice of intent form shall not extend the ninety day period. Notwithstanding the foregoing, the department with the consent of said prospective licensee may extend the ninety day determination period for one additional period not to exceed thirty days.

For purposes of this section, the department's determination of responsibility and suitability shall be limited to the following factors:

(i) the criminal history of the prospective licensee, or any officer, director, shareholder or general or limited partner thereof, to which the department has been granted access or certification or may be subsequently granted access or certification by the criminal history systems board;

(ii) the financial capacity of the prospective licensee to operate the health care facility in accordance with applicable laws;

(iii) the history of the prospective licensee in providing long term care in the commonwealth, measured by compliance with applicable statutes and regulations governing the operation of long term care facilities; and

(iv) the history of the prospective licensee in providing long term care in states other than the commonwealth, if any, measured by compliance with the applicable statutes and regulations governing the operation of long term care facilities in said states.

The prospective licensee shall be deemed responsible and suitable upon the expiration of the ninety day period, or upon the expiration of said period as extended, if the department fails to notify said prospective licensee in writing of its decision within the ninety day period or within the expiration of the extension period, whichever is applicable.

Upon determination by the department that the prospective licensee is responsible and suitable for licensure, or upon the failure of the department to notify said prospective licensee in writing of its decision within the required period, and upon a transfer of ownership, the 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.

If the department determines that the prospective licensee is not suitable for licensure, the department's determination shall take effect on the date of the department's notice. In such cases, the prospective licensee shall upon the filing of a written request with the department be afforded an adjudicatory hearing pursuant to chapter thirty A. During the pendency of such appeal, the prospective licensee shall not operate the facility as a licensee, nor, without prior approval of the department, manage such facility.

No transfer of ownership of a convalescent or nursing home, infirmary maintained in a town, rest home, charitable home for the aged or intermediate care facility for the mentally retarded shall occur unless the prospective licensee has been deemed suitable for licensure in accordance with the provisions of this section.