Senate Bill 1153 would give DSS authority to seek receivership for assisted living facilities with serious safety concerns

Senator Mark Obenshain introduced Senate Bill 1153, describing an assisted living facility in Rockingham County that "has no license. It has 40 some residents there," and saying there are "ongoing criminal investigations involving this facility including allegations that they employ *** offenders, drug offenders. And there are ongoing concerns expressed by law enforcement as to the health, welfare and safety of the 40 some remaining residents."

Obenshain said that, unlike skilled nursing facilities, the state currently lacks the same powers to intervene on assisted living facilities until there is a criminal conviction. He said the Department of Social Services suggested granting the commissioner the same authority used for skilled nursing facilities. "What this bill does is it permits, it lifts the language from skilled nursing facilities and gives the same powers to the commissioner of Department of Social Services to petition circuit court for the appointment of a receiver, for facilities that have lost a license, have failed to get a license, facilities that have health, welfare, and safety, issues serious enough for court to order the installation of a receiver, to wind down the facility, to bring it in compliance or to find alternative placements for the residents in the facility," he told the committee.

During questioning, Delegate Singh asked who would pay the receiver's costs. Obenshain replied: "At the facility would pay for it out of the resident payments to the facility. So it is revenue neutral." Delegate Henson asked about the bill’s requirement that a court "shall hear" the matter within 10 days; Obenshain said he had "heard no opposition from the court" and said the 10-day hearing requirement is intended to give priority on the docket because of the health and safety concerns.

Supporters offered no fiscal amendment in the transcript; Obenshain said the department indicated it had the resources to carry out the action. The subcommittee moved to report the bill; the clerk recorded that Obenshain’s bill "moves forward on about 8 to 0." The bill will proceed for further consideration.

Background and significance: The bill would create a statutory pathway for the DSS commissioner to seek court-appointed receivers for assisted living facilities posing significant health and safety risks, mirroring existing authority for skilled nursing facilities. Supporters framed the measure as a response to documented enforcement and resource gaps identified in prior reviews and investigations.