Okla. Stat. tit. 63, § 63-1-1914.2

A. The State Commissioner of Health may place a qualified

person in a facility as a temporary manager to assume operating

control of the facility and to ensure that the health and safety of

the residents of the facility are protected when any of the

following conditions exist:

1. The conditions at the facility pose immediate jeopardy to

the health and safety of the residents of the facility;

2. The facility is operating without a license;

3. The State Department of Health has suspended, revoked or

refused to renew the existing license of the facility;

4. The financial condition of the facility poses an immediate

risk to the proper operation of the facility or to the health,

safety or welfare of the residents of the facility;

5. The facility has closed or has informed the Department that

it intends to close and adequate arrangements for the relocation of

residents have not been made at least thirty (30) days prior to

closure; or

6. The Department has terminated certification status under

Medicare/Medicaid.

B. The Department shall notify the owner or operator of the

action taken, the reason or reasons why such action was taken, and

the right of the owner or operator to have a hearing on the matter.

C. Any owner or operator subject to placement of a temporary

manager may appeal such action by filing a petition for hearing with

the district court within five (5) days of the appointment of a

temporary manager. The court shall conduct the hearing within ten

(10) days of the filing of such petition. On the basis of the

hearing, the court may continue the order in effect, revoke it or

modify it. The petition for hearing, when docketed, shall have

priority over all cases pending on the docket except criminal cases.

D. All funds due or available to the facility from any source,

to include funds held by a predecessor temporary manager of the

facility, during the pendency of the temporary management shall be

made available to the temporary manager who shall use the funds to

ensure the health and safety of the residents of the facility.

Unless prior written approval has been obtained from the

Commissioner for such expenditure, any use of funds for a purpose

other than to ensure the health and safety of the residents of the

facility shall constitute a breach of the temporary manager’s

fiduciary duty and a violation of the Nursing Home Care Act.

E. The Commissioner shall establish qualifications for persons

to be appointed as temporary managers and shall maintain a list of

Oklahoma Statutes - Title 63. Public Health and Safety Page 685

all such qualified persons. The Commissioner may appoint any person

from the list to serve as a temporary manager, provided that the

Commissioner shall not appoint any owner or affiliate of the

facility as its temporary manager.

F. The temporary manager shall make provisions for the

continued protection of the health and safety of all residents of

the facility. The temporary manager appointed pursuant to the

Nursing Home Care Act shall exercise those powers and shall perform

those duties set out by the Commissioner in writing. The

Commissioner shall provide for the temporary manager to have

sufficient power and duties to ensure that the residents of the

facility receive adequate care.

G. If funds are insufficient to meet the expenses of performing

the powers and duties conferred on the temporary manager, the

temporary manager may borrow the funds or contract for indebtedness

as necessary; provided, any such indebtedness shall not be construed

to be a debt of the state or made on behalf of the state. The State

of Oklahoma is not liable, directly or indirectly, for any liability

incurred by any temporary manager in the performance of the

manager’s official duties pursuant to law. The State Board of

Health shall, by rule, establish a fund, to be drawn out of the

discretionary funds of the Department, to assist temporary managers
ued

to be a debt of the state or made on behalf of the state. The State

of Oklahoma is not liable, directly or indirectly, for any liability

incurred by any temporary manager in the performance of the

manager’s official duties pursuant to law. The State Board of

Health shall, by rule, establish a fund, to be drawn out of the

discretionary funds of the Department, to assist temporary managers

in the continuation of care of the residents of a facility where, in

the judgment of the Commissioner, funds are not available from other

sources; provided, any such advances by the Department shall be

repaid by the temporary manager at the time the final account is

rendered. If such advances are not repaid in full, any amount not

repaid shall constitute a lien against any and all assets of any

owner and shall also constitute a lien as provided in paragraph 4 of

subsection L of this section.

H. The Commissioner shall set the compensation of the temporary

manager, who shall be paid by the facility.

I. A temporary manager may be held liable in a personal

capacity only for the manager’s gross negligence, intentional acts

or breaches of fiduciary duty. The Commissioner may require a

temporary manager to post a bond.

J. The Department shall issue a conditional license to a

facility in which a temporary manager is placed. The duration of a

license issued under this section is limited to the duration of the

temporary managership.

K. The Commissioner shall require that the temporary manager

report to the Department on a regular basis as to the progress of

the facility in reaching substantial compliance with the Nursing

Home Care Act and the rules promulgated thereto, and the

establishment of mechanisms which will ensure the continued

compliance of the facility.

Oklahoma Statutes - Title 63. Public Health and Safety Page 686

L. 1. The Commissioner may release the temporary manager

under any of the following circumstances:

a. the Commissioner determines that the facility is and

will continue to be in substantial compliance with the

Nursing Home Care Act and rules promulgated thereto,

b. a receiver or bankruptcy trustee is appointed,

c. the Commissioner appoints a new temporary manager,

d. a new owner, operator, or manager is licensed,

e. the Department, the temporary manager, or the receiver

closes the facility through an orderly transfer of the

residents, or

f. an administrative hearing or court order ends the

temporary manager appointment.

2. a. Within thirty (30) days after release, the temporary

manager shall render to the Department a complete

accounting of all property of which the temporary

manager has taken possession, of all funds collected,

and of the expenses of the temporary managership, to

include, if requested by the Department, copies of all

documents supporting the reasonableness and necessity

of such expenditures.

b. The rendition of such accounting may be extended only

by order of the Commissioner for cause and shall in no

event be extended more than one hundred twenty (120)

days after release of the temporary manager.

c. Failure to timely render a complete final accounting

in accordance with generally accepted accounting

practices shall constitute a breach of the temporary

manager’s fiduciary duties.

d. Upon a temporary manager’s default in the timely

rendition of a complete final accounting, the

Commissioner shall enter an order that the temporary

manager is personally liable for all amounts or monies

collected for which a final accounting is not made.

Such order for disgorgement or remittance directed to

a temporary manager may be filed as a judgment in any

district court in the State of Oklahoma, and shall not

be dischargeable in bankruptcy or other insolvency

proceeding.

3. After a complete accounting, and payment of reasonable

expenses incurred as a result of the temporary managership, the
ted for which a final accounting is not made.

Such order for disgorgement or remittance directed to

a temporary manager may be filed as a judgment in any

district court in the State of Oklahoma, and shall not

be dischargeable in bankruptcy or other insolvency

proceeding.

3. After a complete accounting, and payment of reasonable

expenses incurred as a result of the temporary managership, the

Commissioner shall order payment of the surplus to the owner. If

funds are insufficient to pay reasonable expenses incurred as a

result of the temporary managership, the owner shall be liable for

the deficiency. Any funds recovered from the owner shall be used to

reimburse any unpaid expenses due and owing as a result of the

temporary managership.

Oklahoma Statutes - Title 63. Public Health and Safety Page 687

4. In order to protect the health, welfare and safety of the

residents of any nursing facility for which a temporary manager has

been appointed, the Department is authorized to provide the monies

from any funds appropriated or otherwise made available to the

Department to protect the residents of the nursing facility. The

Department shall have a lien for any payment made pursuant to this

section upon any beneficial interest, direct or indirect, of any

owner in the following property:

a. the building in which the facility is located,

b. any fixtures, equipment or goods used in the operation

of the facility,

c. the land on which the facility is located, or

d. the proceeds from any conveyance of property described

in subparagraphs a, b, or c of this paragraph made by

the owner prior to the order placing the temporary

manager.

M. Nothing in the Nursing Home Care Act shall be deemed to

relieve any owner, administrator or employee of a facility in which

a temporary manager is placed of any civil or criminal liability

incurred, or any duty imposed by law, by reason of acts or omissions

of the owner, administrator or employee prior to the appointment of

a temporary manager; provided, nothing contained in the Nursing Home

Care Act shall be construed to suspend during the temporary

managership any obligation of the owner, administrator or employee

for payment of taxes or other operating and maintenance expenses of

the facility or of the owner, administrator, employee or any other

person for the payment of mortgages or liens.

N. The Commissioner may institute any legal proceeding to

recover any monies or other thing of value determined to have been

expended unnecessarily or in an excessive amount necessary for the

maintenance of the health and safety of the residents of a facility,

or that was expended in violation of the temporary manager’s

fiduciary duties, or which expenditure was otherwise unlawful under

state or federal law. Such legal proceeding for wrongful

expenditure of these funds may be brought against the temporary

manager and against any other person or entity who receives such

wrongful expenditure and who was not a bona fide vendor in good

faith to the temporary manager, or who was not otherwise a bona fide

recipient of such funds in good faith. Costs for such an action by

the Department for funds wrongfully expended shall be awarded if the

Department prevails, and shall include all court costs, interest at

the statutory rate from and after the date of the wrongful

expenditure, and a reasonable attorney fee. The temporary manager

and the bad faith vendor/recipient shall be jointly and severally

liable for all funds wrongfully expended and for all related

litigation costs.

Oklahoma Statutes - Title 63. Public Health and Safety Page 688