January 25, 2002





SENATE BILL No. 405

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DIGEST OF SB 405 (Updated January 23, 2002 7:11 PM - DI 106)



Citations Affected: IC 16-18; IC 16-28.

Synopsis: Health facility receiverships. Permits the state to recover costs incurred by the state as the result of the receivership of a health care facility. Provides that the costs of receivership constitute a preferred claim against the receivership estate.

Effective: July 1, 2002.





Miller, Howard




    January 10, 2002, read first time and referred to Committee on Corrections, Criminal and Civil Procedures.
    January 24, 2002, amended, reported favorably _ Do Pass.






January 25, 2002

Second Regular Session 112th General Assembly (2002)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2001 General Assembly.

SENATE BILL No. 405



    A BILL FOR AN ACT to amend the Indiana Code concerning health.

Be it enacted by the General Assembly of the State of Indiana:

    SECTION 1. IC 16-18-2-82.8 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 82.8. "Cost of receivership", for purposes of IC 16-28-8, has the meaning set forth in IC 16-28-8-0.5.
    SECTION 2. IC 16-28-8-0.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 0.5. As used in this chapter, "cost of receivership" may include the costs of placing a receiver in a health facility and all reasonable expenditures and attorney's fees incurred by the receiver to operate the health facility while the health facility is in receivership.
    SECTION 3. IC 16-28-8-7, AS ADDED BY P.L.210-1999, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 7. (a) The costs of the receivership shall be determined by the court and placing a receiver in a health facility excluding the cost of the receiver's bond, shall be paid by
        (1) the health facility, if the receiver is not a state employee; or


        (2) the state, if the receiver is a state employee. the owner or operator of the health facility.
    (b) If the receiver is a state employee, the state shall pay the receiver's salary.

    (c) Any cost of receivership paid by the state for the receivership of a health facility is a preferred claim against the receivership estate. The state may file a claim against the health facility or the health facility's assets and resources for recovery of any administrative expense incurred by the state under this chapter.
    (d) Any asset or resource of the health facility may be used to:
        (1) fund the cost of receivership; and
        (2) reimburse any expenditure made by the state under this chapter.