Senior Care Facility Amendments

3
26B-2-237
0
Senior Care Facility Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Tiara Auxier
Senate Sponsor: Todd Weiler
LONG TITLE
General Description:
This bill addresses the closure, qualifying sale, change of use, or acquisition sale of an
assisted living facility.
Highlighted Provisions:
This bill:
defines terms;
requires an assisted living facility to meet certain requirements if the assisted living
facility intends to close, complete a qualifying sale, or undertake a change of use;
provides that an assisted living facility may not accept new residents if the facility intends
to close, complete a qualifying sale, or undertake a change of use;
prescribes requirements for an assisted living facility that intends to complete an
acquisition sale;
allows a county attorney or the attorney general to seek the appointment of a receiver if
an assisted living facility does not comply with certain requirements; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
26B-2-237
, as last amended by Laws of Utah 2023, Chapter 268 and renumbered and
amended by Laws of Utah 2023, Chapter 305 and last amended by Coordination Clause, Laws
of Utah 2023, Chapter 305
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
26B-2-237
is amended to read:
26B-2-237
. Transfer or discharge from an assisted living facility -- Sale of an
assisted living facility -- Appointment of receiver.
(1)
As used in this section:
(a)
"Acquisition sale" means the sale of an assisted living facility:
(i)
that is not expected to cause the transfer or discharge of a resident within 60 days
after the date of the sale; and
(ii)
where the buyer intends to continue operating the facility as an assisted living
facility.
(b)
"Change of use" means that the owner of an assisted living facility intends to change
the use of the assisted living facility in a way that will require or result in the transfer
or discharge of a resident.
(c)
"Division" means the Division of Licensing and Background Checks.
(d)
"Ombudsman" means the same as that term is defined in Section
26B-2-301
.
(e)
"Qualifying sale" means the sale of an assisted living facility:
(i)
that is expected to cause the transfer or discharge of a resident within 60 days after
the date of the sale; or
(ii)
where the buyer intends to change the use of all or some of the facility to
something other than an assisted living facility.
(b)
(f)
"Resident" means an individual who receives health care from an assisted living
facility.
(c)
(g)
"Responsible person" means an individual who:
(i)
is designated in writing by a resident to receive communication on behalf of the
resident; or
(ii)
is legally authorized to make health care decisions on behalf of the resident.
(h)
"Transition plan" means a plan for the closure, qualifying sale, or change of use of an
assisted living facility that:
(i)
describes the facility's resident population and the population's needs;
(ii)
identifies available relocation options and resources, including a list of facilities
within a 60-mile radius that may meet a resident's needs;
(iii)
describes how the facility will accomplish the safe, orderly, and appropriate
transfer or discharge of residents;
(iv)
specifically addresses how the facility will address the transfer or discharge of
each resident who may be difficult to relocate due to specialized care needs;
(v)
identifies steps needed to share information and coordinate with managed care
organizations;
(vi)
includes a timeline for all steps in the closure or sale process;
(vii)
describes how the facility will maintain compliance with all applicable laws and
regulations until the date of closure or sale; and
(viii)
complies with any additional requirements that the department may impose by
rule made in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act.
(2)
A facility is subject to the requirements in Subsection
(3)
if the transfer or discharge:
(a)
is initiated by the facility for any reason;
(b)
is objected to by the resident or the resident's responsible person;
(c)
was not initiated by a verbal or written request from the resident; or
(d)
is inconsistent with the resident's preferences and stated goals for care.
(3)
Before a transfer or discharge described in Subsection
(2)
occurs, the assisted living
facility from which the resident is transferred or discharged shall:
(a)
notify the resident and the resident's responsible person, if any, in writing and in a
language and a manner that is most likely to be understood by the resident and the
resident's responsible person, of:
(i)
the reasons for the transfer or discharge;
(ii)
the effective date of the transfer or discharge;
(iii)
the location to which the resident will be transferred or discharged, if known; and
(iv)
the name, address, email, and telephone number of the ombudsman;
(b)
send a copy, in English, of the notice described in Subsection
(3)(a)
to the
ombudsman on the same day on which the assisted living facility delivers the notice
described in Subsection
(3)(a)
to the resident and the resident's responsible person;
(c)
provide the notice described in Subsection
(3)(a)
at least 30 days before the day on
which the resident is transferred or discharged, unless:
(i)
notice for a shorter period of time is necessary to protect:
(A)
the safety of individuals in the assisted living facility from endangerment due
to the medical or behavioral status of the resident; or
(B)
the health of individuals in the assisted living facility from endangerment due
to the resident's continued residency;
(ii)
an immediate transfer or discharge is required by the resident's urgent medical
needs; or
(iii)
the resident has not resided in the assisted living facility for at least 30 days;
(d)
update the transfer or discharge notice as soon as practicable before the transfer or
discharge if information in the notice changes before the transfer or discharge;
(e)
orally explain to the resident:
(i)
the services available through the ombudsman; and
(ii)
the contact information for the ombudsman; and
(f)
provide and document the provision of preparation and orientation for the resident, in
a language and manner the resident is most likely to understand, to ensure a safe and
orderly transfer or discharge from the assisted living facility.
(4)
(a)
In the event of an assisted living facility closure
, qualifying sale
,
or change of use,

in addition to the requirements in Subsection
(3)
:
(i)
at least 120 days prior to the intended date of closure, qualifying sale, or change of
use, the assisted living facility shall submit a proposed transition plan to the
division for approval; and
(ii)
at least 45 days before the day on which the assisted living facility intends to
close, complete a qualifying sale, or undertake a change of use,
the assisted living
facility shall provide written notification of the closure
,

qualifying sale, or change
of use, including a copy of the approved transition plan,
to the ombudsman,
the
division,
each resident of the facility, and each resident's responsible person.
(b)
An assisted living facility may not accept any new resident or application for
residency on or after the date the assisted living facility submits a proposed transition
plan required by Subsection
(4)(a)(i)
.
(c)
An assisted living facility that provides a written notification required by Subsection
(4)(a)(ii)
shall:
(i)
conduct meetings with residents and responsible persons to discuss the relocation
process;
(ii)
assist each resident with finding a new placement, taking into consideration the
resident's needs, choices, and best interests;
(iii)
invite assisted living facility operators from the surrounding area to visit and
meet with residents of the assisted living facility that provided the notification
under Subsection
(4)(a)(ii)
;
(iv)
as of the date that a resident transfers or is discharged, provide the resident with a
prorated refund of any funds the resident has prepaid to the facility, such as a
reservation deposit, community fee, or rent; and
(v)
provide a resident's new facility or care entity with complete and accurate resident
records, including contact information for the resident's family members and
responsible person.
(d)
An assisted living facility may not close or undertake a change of use until all
affected residents have been relocated to an appropriate alternative setting.
(5)
In the event of an acquisition sale:
(a)
the assisted living facility shall notify each resident and each resident's responsible
person of the acquisition sale within five days of the acquisition sale; and
(b)
for residents of the assisted living facility at the time of the acquisition sale, the
purchaser of the assisted living facility may not raise the rates charged to those
residents until at least 60 days after the day of the acquisition sale and must send a 30
day notice of a rate increase if the rates are to be increased.
(6)
(a)
A county attorney or the attorney general may bring a petition in a court with
jurisdiction for the appointment of a receiver if an assisted living facility has not
complied with the requirements of this section.
(b)
A court shall issue an order to show cause why a receiver should not be appointed
returnable within five days after the filing of the petition.
(c)
If the court finds that the facts warrant the granting of the petition, the court shall
appoint a receiver to take charge of the facility.
(d)
The court may determine fair compensation for the receiver.
(e)
A receiver appointed in accordance with this section has the powers and duties
prescribed by the court.
Section 2.
Effective Date.
This bill takes effect on
May 6, 2026
.
1-26-26 2:24 PM