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105TH CONGRESS

2D SESSION H. R. 4843

To amend titles XVIII and XIX of the Social Security Act to require skilled

nursing facilities and nursing facilities filing for relief under title 11

of the United States Code to provide to appropriate State agencies

written notice of such filing, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 15, 1998

Ms. ROYBAL-ALLARD introduced the following bill; which was referred to the

Committee on Ways and Means, and in addition to the Committee on

Commerce, for a period to be subsequently determined by the Speaker,

in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To amend titles XVIII and XIX of the Social Security Act

to require skilled nursing facilities and nursing facilities

filing for relief under title 11 of the United States Code

to provide to appropriate State agencies written notice

of such filing, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Nursing Home Resi5 dents Protection Act of 1998’’.
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1 SEC. 2. REQUIRED NOTICE IN CASE OF SKILLED NURSING

2 FACILITIES OR NURSING FACILITIES FILING

3 FOR BANKRUPTCY.

4 (a) SKILLED NURSING FACILITIES.—Section

5 1819(c)(2) of the Social Security Act (42 U.S.C. 1395i–

6 3(c)(2)) is amended by adding at the end the following

7 new subparagraph:

8 ‘‘(D) NOTICES IN CASE OF FILING FOR

9 RELIEF UNDER BANKRUPTCY LAWS.—

10 ‘‘(i) NOTICE OF FILING.—A person or

11 entity having a controlling interest in a

12 skilled nursing facility that files a petition

13 for relief from the debts of the facility

14 under title 11 of the United States Code

15 (relating to bankruptcy) shall provide writ16 ten notification of such filing to the State

17 agency responsible for the licensing of the

18 facility. Such notification shall be made

19 not later than one day after the date on

20 which the facility files such petition, and

21 shall include the location of the court in

22 which the petition is filed.

23 ‘‘(ii) NOTICE OF APPOINTMENT OF

24 TRUSTEE.—Not later than one day after

25 the date of the appointment of a bank26 ruptcy trustee by reason of the filing of the
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1 petition, such person or entity shall provide

2 written notification to such State agency of

3 the name, address, and telephone number

4 of the bankruptcy trustee.

5 ‘‘(iii) NOTICE FROM STATE AGENCY

6 TO TRUSTEE.—Not later than three days

7 after the date the State agency receives no8 tification under clause (ii), the State agen9 cy shall provide to the bankruptcy trustee

10 written notification of all applicable laws

11 and regulations governing the lawful oper12 ation of a nursing facility in that state.’’.

13 (b) NURSING FACILITIES.—Section 1919(c)(2) of

14 such Act (42 U.S.C. 1396r(c)(2)) is amended by adding

15 at the end the following new subparagraph:

16 ‘‘(F) NOTICES IN CASE OF FILING FOR

17 RELIEF UNDER BANKRUPTCY LAWS.—

18 ‘‘(i) NOTICE OF FILING.—A person or

19 entity having a controlling interest in a

20 nursing facility that files a petition for re21 lief from the debts of the facility under

22 title 11 of the United States Code (relating

23 to bankruptcy) shall provide written notifi24 cation of such filing to the State agency

25 responsible for the licensing of the facility.
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1 Such notification shall be made not later

2 than one day after the date on which the

3 facility files such petition, and shall include

4 the location of the court in which the peti5 tion is filed.

6 ‘‘(ii) NOTICE OF APPOINTMENT OF

7 TRUSTEE.—Not later than one day after

8 the date of the appointment of a bank9 ruptcy trustee by reason of the filing of the

10 petition, such person or entity shall provide

11 written notification to such State agency of

12 the name, address, and telephone number

13 of the bankruptcy trustee.

14 ‘‘(iii) NOTICE FROM STATE AGENCY

15 TO TRUSTEE.—Not later than three days

16 after the date the State agency receives no17 tification under clause (ii), the State agen18 cy shall provide to the bankruptcy trustee

19 written notification of all applicable laws

20 and regulations governing the lawful oper21 ation of a nursing facility in that state.’’.

22 (c) EFFECTIVE DATE.—The amendments made by

23 this section shall take effect 180 days after the date of

24 the enactment of this Act.

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