# Title 25 — Mental and Physical Illness or Disability

## 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 health and human services.
2. "Provider agency" means an entity providing services to individuals with
developmental disabilities and licensed by the department to provide services.
### § 25-16.1-02. Conditions for appointment of receiver.

When the department has revoked the license of a provider agency, or when the operator of
a provider agency has requested, the department may file a petition with the district court to
place the provider agency under the control of a receiver if necessary to protect the health or
safety of clients at the provider agency. The court may grant the petition upon a finding that the
health or safety of the clients at the provider agency 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 provider
agency, but not solely upon evidence that a provider agency:
1. Has been denied a license to operate as a provider agency, 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 commissioner 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 provider agency to maintain and operate the provider agency and
to attempt to correct the conditions which constitute a threat to the clients. The receiver may not
liquidate the assets of the provider agency.
### § 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 provider
agencies.
### § 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.
