{"data":{"id":"us-ok/okla.-stat.-tit.-63-63-1-1914.2","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 63, § 63-1-1914.2","heading":"Temporary managers","body":"A. The State Commissioner of Health may place a qualified\n\nperson in a facility as a temporary manager to assume operating\n\ncontrol of the facility and to ensure that the health and safety of\n\nthe residents of the facility are protected when any of the\n\nfollowing conditions exist:\n\n1. The conditions at the facility pose immediate jeopardy to\n\nthe health and safety of the residents of the facility;\n\n2. The facility is operating without a license;\n\n3. The State Department of Health has suspended, revoked or\n\nrefused to renew the existing license of the facility;\n\n4. The financial condition of the facility poses an immediate\n\nrisk to the proper operation of the facility or to the health,\n\nsafety or welfare of the residents of the facility;\n\n5. The facility has closed or has informed the Department that\n\nit intends to close and adequate arrangements for the relocation of\n\nresidents have not been made at least thirty (30) days prior to\n\nclosure; or\n\n6. The Department has terminated certification status under\n\nMedicare/Medicaid.\n\nB. The Department shall notify the owner or operator of the\n\naction taken, the reason or reasons why such action was taken, and\n\nthe right of the owner or operator to have a hearing on the matter.\n\nC. Any owner or operator subject to placement of a temporary\n\nmanager may appeal such action by filing a petition for hearing with\n\nthe district court within five (5) days of the appointment of a\n\ntemporary manager. The court shall conduct the hearing within ten\n\n(10) days of the filing of such petition. On the basis of the\n\nhearing, the court may continue the order in effect, revoke it or\n\nmodify it. The petition for hearing, when docketed, shall have\n\npriority over all cases pending on the docket except criminal cases.\n\nD. All funds due or available to the facility from any source,\n\nto include funds held by a predecessor temporary manager of the\n\nfacility, during the pendency of the temporary management shall be\n\nmade available to the temporary manager who shall use the funds to\n\nensure the health and safety of the residents of the facility.\n\nUnless prior written approval has been obtained from the\n\nCommissioner for such expenditure, any use of funds for a purpose\n\nother than to ensure the health and safety of the residents of the\n\nfacility shall constitute a breach of the temporary manager’s\n\nfiduciary duty and a violation of the Nursing Home Care Act.\n\nE. The Commissioner shall establish qualifications for persons\n\nto be appointed as temporary managers and shall maintain a list of\n\nall such qualified persons. The Commissioner may appoint any person\n\nfrom the list to serve as a temporary manager, provided that the\n\nCommissioner shall not appoint any owner or affiliate of the\n\nfacility as its temporary manager.\n\nF. The temporary manager shall make provisions for the\n\ncontinued protection of the health and safety of all residents of\n\nthe facility. The temporary manager appointed pursuant to the\n\nNursing Home Care Act shall exercise those powers and shall perform\n\nthose duties set out by the Commissioner in writing. The\n\nCommissioner shall provide for the temporary manager to have\n\nsufficient power and duties to ensure that the residents of the\n\nfacility receive adequate care.\n\nG. If funds are insufficient to meet the expenses of performing\n\nthe powers and duties conferred on the temporary manager, the\n\ntemporary manager may borrow the funds or contract for indebtedness\n\nas necessary; provided, any such indebtedness shall not be construed\n\nto be a debt of the state or made on behalf of the state. The State\n\nof Oklahoma is not liable, directly or indirectly, for any liability\n\nincurred by any temporary manager in the performance of the\n\nmanager’s official duties pursuant to law. The State Board of\n\nHealth shall, by rule, establish a fund, to be drawn out of the\n\ndiscretionary funds of the Department, to assist temporary managers\nued\n\nto be a debt of the state or made on behalf of the state. The State\n\nof Oklahoma is not liable, directly or indirectly, for any liability\n\nincurred by any temporary manager in the performance of the\n\nmanager’s official duties pursuant to law. The State Board of\n\nHealth shall, by rule, establish a fund, to be drawn out of the\n\ndiscretionary funds of the Department, to assist temporary managers\n\nin the continuation of care of the residents of a facility where, in\n\nthe judgment of the Commissioner, funds are not available from other\n\nsources; provided, any such advances by the Department shall be\n\nrepaid by the temporary manager at the time the final account is\n\nrendered. If such advances are not repaid in full, any amount not\n\nrepaid shall constitute a lien against any and all assets of any\n\nowner and shall also constitute a lien as provided in paragraph 4 of\n\nsubsection L of this section.\n\nH. The Commissioner shall set the compensation of the temporary\n\nmanager, who shall be paid by the facility.\n\nI. A temporary manager may be held liable in a personal\n\ncapacity only for the manager’s gross negligence, intentional acts\n\nor breaches of fiduciary duty. The Commissioner may require a\n\ntemporary manager to post a bond.\n\nJ. The Department shall issue a conditional license to a\n\nfacility in which a temporary manager is placed. The duration of a\n\nlicense issued under this section is limited to the duration of the\n\ntemporary managership.\n\nK. The Commissioner shall require that the temporary manager\n\nreport to the Department on a regular basis as to the progress of\n\nthe facility in reaching substantial compliance with the Nursing\n\nHome Care Act and the rules promulgated thereto, and the\n\nestablishment of mechanisms which will ensure the continued\n\ncompliance of the facility.\n\nL. 1. The Commissioner may release the temporary manager\n\nunder any of the following circumstances:\n\na. the Commissioner determines that the facility is and\n\nwill continue to be in substantial compliance with the\n\nNursing Home Care Act and rules promulgated thereto,\n\nb. a receiver or bankruptcy trustee is appointed,\n\nc. the Commissioner appoints a new temporary manager,\n\nd. a new owner, operator, or manager is licensed,\n\ne. the Department, the temporary manager, or the receiver\n\ncloses the facility through an orderly transfer of the\n\nresidents, or\n\nf. an administrative hearing or court order ends the\n\ntemporary manager appointment.\n\n2. a. Within thirty (30) days after release, the temporary\n\nmanager shall render to the Department a complete\n\naccounting of all property of which the temporary\n\nmanager has taken possession, of all funds collected,\n\nand of the expenses of the temporary managership, to\n\ninclude, if requested by the Department, copies of all\n\ndocuments supporting the reasonableness and necessity\n\nof such expenditures.\n\nb. The rendition of such accounting may be extended only\n\nby order of the Commissioner for cause and shall in no\n\nevent be extended more than one hundred twenty (120)\n\ndays after release of the temporary manager.\n\nc. Failure to timely render a complete final accounting\n\nin accordance with generally accepted accounting\n\npractices shall constitute a breach of the temporary\n\nmanager’s fiduciary duties.\n\nd. Upon a temporary manager’s default in the timely\n\nrendition of a complete final accounting, the\n\nCommissioner shall enter an order that the temporary\n\nmanager is personally liable for all amounts or monies\n\ncollected for which a final accounting is not made.\n\nSuch order for disgorgement or remittance directed to\n\na temporary manager may be filed as a judgment in any\n\ndistrict court in the State of Oklahoma, and shall not\n\nbe dischargeable in bankruptcy or other insolvency\n\nproceeding.\n\n3. After a complete accounting, and payment of reasonable\n\nexpenses incurred as a result of the temporary managership, the\nted for which a final accounting is not made.\n\nSuch order for disgorgement or remittance directed to\n\na temporary manager may be filed as a judgment in any\n\ndistrict court in the State of Oklahoma, and shall not\n\nbe dischargeable in bankruptcy or other insolvency\n\nproceeding.\n\n3. After a complete accounting, and payment of reasonable\n\nexpenses incurred as a result of the temporary managership, the\n\nCommissioner shall order payment of the surplus to the owner. If\n\nfunds are insufficient to pay reasonable expenses incurred as a\n\nresult of the temporary managership, the owner shall be liable for\n\nthe deficiency. Any funds recovered from the owner shall be used to\n\nreimburse any unpaid expenses due and owing as a result of the\n\ntemporary managership.\n\n4. In order to protect the health, welfare and safety of the\n\nresidents of any nursing facility for which a temporary manager has\n\nbeen appointed, the Department is authorized to provide the monies\n\nfrom any funds appropriated or otherwise made available to the\n\nDepartment to protect the residents of the nursing facility. The\n\nDepartment shall have a lien for any payment made pursuant to this\n\nsection upon any beneficial interest, direct or indirect, of any\n\nowner in the following property:\n\na. the building in which the facility is located,\n\nb. any fixtures, equipment or goods used in the operation\n\nof the facility,\n\nc. the land on which the facility is located, or\n\nd. the proceeds from any conveyance of property described\n\nin subparagraphs a, b, or c of this paragraph made by\n\nthe owner prior to the order placing the temporary\n\nmanager.\n\nM. Nothing in the Nursing Home Care Act shall be deemed to\n\nrelieve any owner, administrator or employee of a facility in which\n\na temporary manager is placed of any civil or criminal liability\n\nincurred, or any duty imposed by law, by reason of acts or omissions\n\nof the owner, administrator or employee prior to the appointment of\n\na temporary manager; provided, nothing contained in the Nursing Home\n\nCare Act shall be construed to suspend during the temporary\n\nmanagership any obligation of the owner, administrator or employee\n\nfor payment of taxes or other operating and maintenance expenses of\n\nthe facility or of the owner, administrator, employee or any other\n\nperson for the payment of mortgages or liens.\n\nN. The Commissioner may institute any legal proceeding to\n\nrecover any monies or other thing of value determined to have been\n\nexpended unnecessarily or in an excessive amount necessary for the\n\nmaintenance of the health and safety of the residents of a facility,\n\nor that was expended in violation of the temporary manager’s\n\nfiduciary duties, or which expenditure was otherwise unlawful under\n\nstate or federal law. Such legal proceeding for wrongful\n\nexpenditure of these funds may be brought against the temporary\n\nmanager and against any other person or entity who receives such\n\nwrongful expenditure and who was not a bona fide vendor in good\n\nfaith to the temporary manager, or who was not otherwise a bona fide\n\nrecipient of such funds in good faith. Costs for such an action by\n\nthe Department for funds wrongfully expended shall be awarded if the\n\nDepartment prevails, and shall include all court costs, interest at\n\nthe statutory rate from and after the date of the wrongful\n\nexpenditure, and a reasonable attorney fee. The temporary manager\n\nand the bad faith vendor/recipient shall be jointly and severally\n\nliable for all funds wrongfully expended and for all related\n\nlitigation costs.","path":["OK Code","Title 63"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os63.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"2858a2d014b0f4e29b3082c3aa3518679c7adeed9d2d21f44f9e57e48620bd5d","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-63-63-1-1914.16","next":"us-ok/okla.-stat.-tit.-63-63-1-1914.3"},"notice":"GroundRules: Original legal text. Not legal advice."}