Bill

Bill > S1220


NJ S1220

NJ S1220
Requires DOH approval for adverse possessory action against hospitals.


summary

Introduced
02/03/2022
In Committee
06/16/2022
Crossed Over
06/16/2022
Passed
Dead
01/08/2024

Introduced Session

2022-2023 Regular Session

Bill Summary

This bill prohibits landlords from initiating adverse possessory actions against an operator of a hospital, or a successor to the operator, without first obtaining written approval for the action from the department. An adverse possessory action initiated without the written approval of the department will be deemed invalid. The department is to establish a process for landlords to submit requests to initiate adverse possessory actions, and will have the authority to approve requests upon finding that just cause exists for the adverse possessory action. A landlord that initiates an adverse possessory action against an operator or successor without written approval by the department will be liable to a civil penalty of up to $1,000,000. The department shall also suspend or revoke any license or permit granted by the department to the landlord due to violation of the act. To the extent an adverse possessory action taken without department approval results in the loss of revenue to a hospital, the operator or successor, as applicable, shall be entitled to financial recovery from the landlord to the extent necessary to place the hospital in as good a position as if such adverse possessory action had not occurred, as determined by court appointed arbitration. A landlord that willfully violates this act in a manner which results in the closure of a hospital or that interferes with the transition of the maintenance, supervision, or operation of a hospital from an operator to a successor as approved by the department, shall be subject to criminal penalties imposed for disorderly persons offenses.

AI Summary

This bill prohibits landlords from initiating adverse possessory actions, such as terminating a lease or evicting a hospital operator, without first obtaining written approval from the Department of Health (DOH). The DOH is required to establish a process for landlords to submit requests for adverse possessory actions and can approve such requests only upon finding just cause. Landlords who violate this law by initiating adverse possessory actions without DOH approval face civil penalties of up to $1 million, suspension or revocation of their licenses or permits, and potential criminal penalties if the violation results in a hospital closure or interference with the transition of hospital operations to a new operator. The bill also entitles hospital operators or successors to financial recovery from the landlord to compensate for any revenue loss resulting from an unapproved adverse possessory action.

Committee Categories

Health and Social Services

Sponsors (2)

Last Action

Received in the Assembly, Referred to Assembly Health Committee (on 06/16/2022)

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