Bill > A5635

Introduced Session

This bill provides protections for individuals with developmental disabilities by establishing a framework that allows the Department of Human Services (department) to request the appointment of a receiver to certain low performing service providers of this community. Under the bill, an appointed receiver is to oversee the management of the provider-managed services, which includes both financial and operational components, to protect the interests and care of the individuals with developmental disabilities receiving services. Absent this bill, the department must rely on non-performing provider agencies to move for receivership, which creates substantial risk for care recipients if a provider is failing financially or otherwise unable or unwilling to remedy dangerous conditions in its programs. Similar to authority held by the State's Office of the Attorney General and the Department of Health, this bill provides the department with authority to make a motion to a court of competent jurisdiction for the appointment of a receiver for a provider of services to individuals with development disabilities if: there exists a pattern or practice in substantial violation of the standards of health, safety, or recipient care established under federal, State, or local law, regulations, or policy; or if any other condition dangerous to life, health, or safety of a recipient exists. Under the bill, a recipient means an individual that is both eligible for Division of Developmental Disabilities services and has received an applicable service by a provider. Applicable services include community residence services, private residential facility services, day habilitation services, individual supports, or any long-term care services. This bill: sets standards for a motion to request, and a court order and court proceedings to appoint, a receiver, as well as the responsibilities and rights of providers and the department during those proceedings; outlines the authority of the appointed receiver and the termination of the receivership when the objectives of the court order are met; establishes a method for the department to request the transfer of ownership of a site and provider-managed services to a new provider; and creates standards for provider agency defenses. These provisions are based on both existing authority held by the Department of Health for oversight of licensees, as well as a court order recently used by the department to successfully wind down a low-performing provider agency of services to individuals with developmental disabilities.

Committee Categories

Carol Murphy (D)*, 

Introduced, Referred to Assembly Aging and Human Services Committee (on 05/08/2025)

Official Document