50.05(7)(g)
(g) Except as specified in
sub. (9), shall honor all leases, mortgages and secured transactions governing the building in which the facility is located and all goods and fixtures in the building of which the receiver has taken possession, but only to the extent of payments which, in the case of a rental agreement, are for the use of the property during the period of the receivership, or which, in the case of a purchase agreement, come due during the period of the receivership.
50.05(7)(h)
(h) Shall have full power to direct and manage and to discharge employes of the facility, subject to any contract rights they may have. The receiver shall pay employes at the same rate of compensation, including benefits, that the employes would have received from the operator, except that the receiver shall compensate employes for time actually worked during the period of receivership and may reimburse for vacations or periods of sick leave. The receiver may grant salary increases and fringe benefits to employes of a nursing home, in accord with the facility payment formula under
s. 49.45 (6m). Receivership does not relieve the operator of any obligation to employes not carried out by the receiver.
50.05(7)(i)
(i) Shall, if any resident is transferred or discharged, provide for:
50.05(7)(i)1.
1. Transportation of the resident and the resident's belongings and medical records to the place to which the resident is being transferred or discharged.
50.05(7)(i)2.
2. Aid in location of an alternative placement and in discharge planning.
50.05(7)(i)3.
3. If the patient is being transferred, preparation for transfer to mitigate transfer trauma.
50.05(7)(j)
(j) Shall, if any resident is to be transferred, permit participation by the resident or the resident's guardian in the selection of the resident's alternative placement.
50.05(7)(k)
(k) Shall, unless emergency transfer is necessary, prepare a resident under
pars. (i) 3. and
(j) by explaining alternative placements, and by providing orientation to the placement chosen by the resident or the resident's guardian.
50.05(7)(L)
(L) Shall be entitled to and shall take possession of all property or assets of residents which are in the possession of an owner, operator or controlling person of the facility. The receiver shall preserve all property, assets and records of residents of which the receiver takes possession and shall provide for the prompt transfer of the property, assets and records to the alternative placement of any transferred resident.
50.05(7)(m)
(m) May restrict admissions to the facility.
50.05(8)(a)(a) A person who is served with notice of an order of the court appointing a receiver and of the receiver's name and address shall be liable to pay the receiver for any goods or services provided by the receiver after the date of the order if the person would have been liable for the goods or services as supplied by the operator. The receiver shall give a receipt for each payment and shall keep a copy of each receipt on file. The receiver shall deposit amounts received in a special account and shall use this account for all disbursements.
50.05(8)(b)
(b) The receiver may bring an action to enforce the liability created by
par. (a). Proof of payment to the receiver is as effective in favor of the person making the payment as payment of the amount to the person who would, but for this subsection, have been entitled to receive the sum so paid.
50.05(8)(c)
(c) A resident may not be discharged, nor may any contract or rights be forfeited or impaired, nor may forfeiture or liability be increased, by reason of an omission to pay an owner, operator or other person a sum paid to the receiver.
50.05(9)
(9) Avoidance of preexisting leases, mortgages and contracts. 50.05(9)(a)(a) A receiver may not be required to honor any lease, mortgage, secured transaction or other wholly or partially executory contract entered into by the owners or operators of the facility if:
50.05(9)(a)1.
1. The person seeking payment under the lease, mortgage, secured transaction or other wholly or partially executory contract was an operator or controlling person of the facility or was an affiliate of an operator or controlling person at the time the lease, mortgage, secured transaction or other wholly or partially executory contract was made; or
50.05(9)(a)2.
2. The rental, price or rate of interest required to be paid under the lease, mortgage, secured transaction or other wholly or partially executory contract was in excess of a reasonable rental, price or rate of interest at the time the contract was entered into.
50.05(9)(a)3.
3. Payment under the lease, mortgage, secured transaction or other wholly or partially executory contract has been modified by the parties' subsequent oral or written agreement or constructive waiver.
50.05(9)(b)
(b) If the receiver is in possession of real estate or goods subject to a lease, mortgage or security interest which the receiver is permitted to avoid under
par. (a), and if the real estate or goods are necessary for the continued operation of the facility under this section, the receiver may apply to the court to set a reasonable rental, price or rate of interest to be paid by the receiver during the duration of the receivership. The court shall hold a hearing on the application within 15 days. The receiver shall send notice of the application to any known owners of the property involved at least 10 days prior to the hearing. Payment by the receiver of the amount determined by the court to be reasonable is a defense to any action against the receiver for payment or for possession of the goods or real estate subject to the lease or mortgage involved by any person who received such notice, but the payment does not relieve the owner or operator of the facility of any liability for the difference between the amount paid by the receiver and the amount due under the original lease or mortgage involved.
50.05(9)(c)
(c) During the period of appointment of a receiver, there may be no foreclosure of a mortgage entered into by the owner or operator of the facility or eviction of facility residents if the foreclosure or eviction serves to defeat the purpose of the appointment.
50.05(9m)
(9m) Impeding receivership prohibited; automatic stay. No person may impede the operation of a receivership established under this section. After the appointment of a receiver, any action that interferes with the functioning of the facility, including cancellation of an insurance policy executed on behalf of the facility, repossession of equipment used in the facility or termination of utility services or other services or goods that are necessary to protect the health, safety or welfare of the nursing home residents, is automatically stayed for a period of not more than 60 days.
50.05(10)
(10) Contingency fund. If funds collected under
subs. (3),
(7) and
(8) are insufficient to meet the expenses of performing the powers and duties conferred on the receiver by this section, or if there are insufficient funds on hand to meet those expenses, the department may draw from the supplemental fund created under
s. 20.435 (1) (dm) to pay the expenses associated with the placement of a monitor, if any, in a nursing home and the receivership of a nursing home. Operating funds collected under this section and not applied to the expenses of the placement of a monitor, if any, and the receivership, except for the amount of a security, if any is required under
sub. (14m), shall be used to reimburse the fund for advances made under this section.
50.05(11)
(11) Compensation of monitor or receiver. The court shall set the compensation of a person placed as a monitor, if any, and of the receiver, which will be considered necessary expenses of a receivership.
50.05(12)
(12) Liability of receiver; status as public employe. 50.05(12)(a)(a) In any action or special proceeding brought against a receiver in the receiver's official capacity for acts committed while carrying out the powers and duties created under this section, the receiver shall be considered a public employe for purposes of
s. 895.46.
50.05(12)(b)
(b) A receiver may be held liable in a personal capacity only for the receiver's own gross negligence, intentional acts or breach of fiduciary duty.
50.05(12)(c)
(c) A receiver may not be required to post any bond.
50.05(13)
(13) Licensing of facility under receivership. Other provisions of this chapter notwithstanding, the department may issue a license to a facility placed in receivership under this section. The duration of a license issued under this section is limited to the duration of the receivership.
50.05(14)(a)(a) Except as provided under
par. (b), the court may not terminate a receivership for any reason other than as specified under
subds. 1. to
3. and shall, after the department determines and notifies the court that the facility is able to ensure continued compliance with federal and state laws, terminate the receivership:
50.05(14)(a)1.
1. If the time period specified in the order appointing the receiver elapses and the department has not petitioned for an extension;
50.05(14)(a)2.
2. If the department grants the facility a new license, whether the structure of the facility, the right to operate the facility, or the land on which it is located is under the same or different ownership; or
50.05(14)(a)3.
3. If all of the residents in the facility have been provided alternative modes of health care, either in another facility or otherwise.
50.05(14)(b)
(b) The court may terminate a receivership of a nursing facility imposed because of a violation of
s. 49.498 or a rule promulgated under
s. 49.498 if the department submits testimony to the satisfaction of the court that the nursing facility has the management capability to ensure continued compliance with the requirements of
s. 49.498 or a rule promulgated under
s. 49.498.
50.05(14m)
(14m) Bond upon termination; reappointment. If the court terminates a receivership under
sub. (14) and the department grants a license for the facility to the same applicant under which the facility was licensed immediately prior to appointment of a receiver under
sub. (4) or
(5), the court may require that person to post a bond for a period of not less than 120 days in an amount fixed by the court as security for maintaining compliance with this subchapter and the rules promulgated under this subchapter. If the court, after notice to the parties in the receivership proceeding and after a hearing, finds that the standards for appointment under
sub. (4) are met, the court may reappoint the receiver. If the court reappoints the receiver, the receiver may use the security, if any has been required under this subsection, in addition to funds under
subs. (7),
(8) and
(10), for purposes of payment of the placement of a monitor, if any, and for the receivership.
50.05(15)
(15) Accounting; lien for expenses. 50.05(15)(a)(a) Within 30 days after termination, the receiver shall give the court a complete accounting of all property of which the receiver has taken possession, of all funds collected under this section and of the expenses of the monitor, if any is placed in a nursing home, and the receivership.
50.05(15)(b)
(b) If the operating funds collected by the receiver under
subs. (7) and
(8) exceed the reasonable expenses of the placement of a monitor in a nursing home, if any, and of the receivership, the court shall order payment of the surplus to the operator or controlling person, after reimbursement of funds drawn from the contingency fund under
sub. (10). If the operating funds are insufficient to cover the reasonable expenses of the placement of a monitor in a nursing home, if any, and of the receivership, the operator or controlling person shall be liable for the deficiency. The operator or controlling person may apply to the court to determine the reasonableness of any expense of the placement of a monitor in a nursing home, if any, and of the receivership. The operator or controlling person shall not be responsible for expenses in excess of what the court finds to be reasonable. Payment recovered from the operator or controlling person shall be used to reimburse the contingency fund for amounts drawn by the receiver under
sub. (10).
50.05(15)(c)
(c) The department has a lien for any deficiency under
par. (b) upon any beneficial interest, direct or indirect, of any operator or controlling person in the following property:
50.05(15)(c)3.
3. Any fixtures, equipment or goods used in the operation of the facility.
50.05(15)(c)4.
4. The proceeds from any conveyance of property described in
subd. 1.,
2. or
3., made by the operator or controlling person within one year prior to the filing of the petition for receivership.
50.05(15)(c)5.
5. Any other property or assets of the operator or controlling person if no property or proceeds exist under
subds. 1. to
4.
50.05(15)(d)
(d) The lien provided by this subsection is prior to any lien or other interest which originates subsequent to the filing of a petition for receivership under this section, except for a construction or mechanic's lien arising out of work performed with the express consent of the receiver or a lien under
s. 292.31 (8) (i),
292.41 (6) (d) or
292.81.
50.05(15)(e)
(e) The clerk of circuit court for the county in which the facility is located shall record the filing of the petition for receivership in the judgment and lien docket kept under
s. 779.07 opposite the names of the operators and controlling persons named in the petition.
50.05(15)(f)
(f) The receiver shall, within 60 days after termination of the receivership, file a notice of any lien created under this subsection. No action on a lien created under this subsection may be brought more than 2 years after the date of filing. If the lien is on real property, the notice shall be filed with the clerk of circuit court of the county in which the facility is located and entered on the judgment and lien docket kept under
s. 779.07. If the lien is on personal property, the lien shall be filed with the department of financial institutions. The department of financial institutions shall place the lien on personal property in the same file as financing statements are filed under
ss. 409.401 and
409.402. The notice shall specify the name of the person against whom the lien is claimed, the name of the receiver, the dates of the petition for receivership and the termination of receivership, a description of the property involved and the amount claimed. No lien shall exist under this section against any person, on any property, or for any amount not specified in the notice filed under this paragraph. To the extent applicable,
ch. 846 controls the foreclosure of liens under this subsection that attach to real property.
50.05(16)
(16) Obligations of owners. Nothing in this section shall be deemed to relieve any owner, operator or controlling person of a facility placed in receivership of any civil or criminal liability incurred, or any duty imposed by law, by reason of acts or omissions of the owner, operator or controlling person prior to the appointment of a receiver under this section, nor shall anything contained in this section be construed to suspend during the receivership any obligation of the owner, operator or controlling person for payment of taxes or other operating and maintenance expenses of the facility nor of the owner, operator or controlling person or any other person for the payment of mortgages or liens. No owner may be held professionally liable for acts or omissions of the receiver or the receiver's employes during the term of the receivership.
50.053
50.053
Informal conference. The department may hold an informal conference with the parties to any contested action under this subchapter to resolve any or all issues prior to formal hearing. Unless any party to the contested case objects, the department may delay the commencement of the formal hearing in order to hold the informal conference.
50.053 History
History: 1977 c. 170.
50.06
50.06
Certain admissions to facilities. 50.06(1)
(1) In this section, "incapacitated" means unable to receive and evaluate information effectively or to communicate decisions to such an extent that the individual lacks the capacity to manage his or her health care decisions, including decisions about his or her post-hospital care.
50.06(2)
(2) An individual under
sub. (3) may consent to admission, directly from a hospital to a facility, of an incapacitated individual who does not have a valid power of attorney for health care and who has not been adjudicated incompetent under
ch. 880, if all of the following apply:
50.06(2)(a)
(a) No person who is listed under
sub. (3) in the same order of priority as, or higher in priority than, the individual who is consenting to the proposed admission disagrees with the proposed admission.
50.06(2)(am)1.1. Except as provided in
subd. 2., no person who is listed under
sub. (3) and who resides with the incapacitated individual disagrees with the proposed admission.
50.06(2)(am)2.
2. Subdivision 1. does not apply if any of the following applies:
50.06(2)(am)2.a.
a. The individual who is consenting to the proposed admission resides with the incapacitated individual.
50.06(2)(am)2.b.
b. The individual who is consenting to the proposed admission is the spouse of the incapacitated person.
50.06(2)(b)
(b) The individual for whom admission is sought is not diagnosed as developmentally disabled or as having a mental illness at the time of the proposed admission.
50.06(2)(c)
(c) A petition for guardianship for the individual under
s. 880.07 and a petition for protective placement of the individual under
s. 55.06 (2) are filed prior to the proposed admission.
50.06(3)
(3) The following individuals, in the following order of priority, may consent to an admission under
sub. (2):
50.06(3)(a)
(a) The spouse of the incapacitated individual.
50.06(3)(b)
(b) An adult son or daughter of the incapacitated individual.
50.06(3)(c)
(c) A parent of the incapacitated individual.
50.06(3)(d)
(d) An adult brother or sister of the incapacitated individual.
50.06(3)(e)
(e) A grandparent of the incapacitated individual.
50.06(3)(f)
(f) An adult grandchild of the incapacitated individual.
50.06(3)(g)
(g) An adult close friend of the incapacitated individual.
50.06(4)
(4) A determination that an individual is incapacitated for purposes of
sub. (2) shall be made by 2 physicians, as defined in
s. 448.01 (5), or by one physician and one licensed psychologist, as defined in
s. 455.01 (4), who personally examine the individual and sign a statement specifying that the individual is incapacitated. Mere old age, eccentricity or physical disability, either singly or together, are insufficient to make a finding that an individual is incapacitated. Neither of the individuals who make a finding that an individual is incapacitated may be a relative, as defined in
s. 242.01 (11), of the individual or have knowledge that he or she is entitled to or has a claim on any portion of the individual's estate. A copy of the statement shall be included in the individual's records in the facility to which he or she is admitted.
50.06(5)(a)(a) Except as provided in
par. (b), an individual who consents to an admission under this section may, for the incapacitated individual, make health care decisions to the same extent as a guardian of the person may and authorize expenditures related to health care to the same extent as a guardian of the estate may, until the earliest of the following:
50.06(5)(a)1.
1. Sixty days after the admission to the facility of the incapacitated individual.
50.06(5)(a)2.
2. Discharge of the incapacitated individual from the facility.
50.06(5)(a)3.
3. Appointment of a guardian for the incapacitated individual.
50.06(5)(b)
(b) An individual who consents to an admission under this section may not authorize expenditures related to health care if the incapacitated individual has an agent under a durable power of attorney, as defined in
s. 243.07 (1) (a), who may authorize expenditures related to health care.
50.06(6)
(6) If the incapacitated individual is in the facility after 60 days after admission and a guardian has not been appointed, the authority of the person who consented to the admission to make decisions and, if
sub. (5) (a) applies, to authorize expenditures is extended for 30 days for the purpose of allowing the facility to initiate discharge planning for the incapacitated individual.
50.06(7)
(7) An individual who consents to an admission under this section may request that an assessment be conducted for the incapacitated individual under the long-term support community options program under
s. 46.27 (6).
50.06 History
History: 1993 a. 187.
50.07
50.07
Prohibited acts. 50.07(1)(a)
(a) Intentionally fail to correct or interfere with the correction of a class "A" or class "B" violation within the time specified on the notice of violation or approved plan of correction under
s. 50.04 as the maximum period given for correction, unless an extension is granted and the corrections are made before expiration of extension.
50.07(1)(b)
(b) Intentionally prevent, interfere with, or attempt to impede in any way the work of any duly authorized representative of the department in the investigation and enforcement of any provision of this subchapter.
50.07(1)(c)
(c) Intentionally prevent or attempt to prevent any such representative from examining any relevant books or records in the conduct of official duties under this subchapter.
50.07(1)(d)
(d) Intentionally prevent or interfere with any such representative in the preserving of evidence of any violation of any of the provisions of this subchapter or the rules promulgated under this subchapter.
50.07(1)(e)
(e) Intentionally retaliate or discriminate against any resident or employe for contacting or providing information to any state official, or for initiating, participating in, or testifying in an action for any remedy authorized under this subchapter.
50.07(1)(f)
(f) Intentionally destroy, change or otherwise modify an inspector's original report.
