By:  Moncrief, et al.                                   S.B. No. 93
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the regulation of assisted living facilities and
 1-2     requiring disclosures by certain other facilities serving persons
 1-3     who are elderly or disabled.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  AMENDMENT.  Chapter 247, Health and Safety Code,
 1-6     is amended to read as follows:
 1-7          CHAPTER 247.  ASSISTED LIVING [PERSONAL CARE] FACILITIES
 1-8                      SUBCHAPTER A.  GENERAL PROVISIONS
 1-9           Sec. 247.001.  SHORT TITLE.  This chapter may be cited as the
1-10     Assisted Living [Personal Care] Facility Licensing Act.
1-11           Sec. 247.0011.  SCOPE, PURPOSE, AND IMPLEMENTATION.  (a)  The
1-12     purpose of this chapter is to ensure that assisted living
1-13     facilities in this state deliver the highest possible quality of
1-14     care.  This chapter and the rules adopted under this chapter
1-15     establish minimum acceptable levels of care, and a violation of a
1-16     minimum acceptable level of care established under this chapter is
1-17     a violation of law.  For purposes of this chapter, components of
1-18     quality of care include:
1-19                 (1)  resident independence and self-determination;
1-20                 (2)  humane treatment;
1-21                 (3)  conservative intervention;
1-22                 (4)  access to care;
1-23                 (5)  continuity of care;
1-24                 (6)  coordination of services;
 2-1                 (7)  safe surroundings;
 2-2                 (8)  professionalism of service providers;
 2-3                 (9)  participation in useful studies; and
 2-4                 (10)  quality of life.
 2-5           (b)  The department shall protect residents of assisted
 2-6     living facilities by:
 2-7                 (1)  adopting rules relating to quality of care and
 2-8     quality of life;
 2-9                 (2)  adopting rules relating to the assessment of the
2-10     condition and service needs of each resident;
2-11                 (3)  promoting policies that maximize the dignity,
2-12     autonomy, privacy, and independence of each resident;
2-13                 (4)  regulating the construction, maintenance, and
2-14     operation of assisted living facilities;
2-15                 (5)  strictly monitoring factors relating to the
2-16     health, safety, welfare, and dignity of each resident;
2-17                 (6)  imposing prompt and effective remedies for
2-18     violations of this chapter and rules and standards adopted under
2-19     this chapter;
2-20                 (7)  providing a residential environment that allows
2-21     residents to maintain the highest possible degree of independence
2-22     and self-determination; and
2-23                 (8)  providing the public with helpful and
2-24     understandable information relating to the operation of assisted
2-25     living facilities in this state.
2-26           (c)  Assisted living services are driven by a service
 3-1     philosophy that emphasizes personal dignity, autonomy,
 3-2     independence, and privacy.  Assisted living services should enhance
 3-3     a person's ability to age in place in a residential setting while
 3-4     receiving increasing or decreasing levels of service as the
 3-5     person's needs change.
 3-6           Sec. 247.002.  DEFINITIONS.  In this chapter:
 3-7                 (1)  "Assisted living facility" means an establishment
 3-8     that:
 3-9                       (A)  furnishes, in one or more facilities, food
3-10     and shelter to four or more persons who are unrelated to the
3-11     proprietor of the establishment; and
3-12                       (B)  provides personal care services.
3-13                 (2)  "Board" means the Texas Board of Human Services.
3-14                 (3)  "Controlling person" means a person who controls
3-15     an assisted living facility or other person as described by Section
3-16     247.005.
3-17                 (4) [(2)]  "Department" means the Texas Department of
3-18     Human Services.
3-19                 (5) [(3)  "Personal care facility" means an
3-20     establishment, including a board and care home, that:]
3-21                       [(A)  furnishes, in one or more facilities, food
3-22     and shelter to four or more persons who are unrelated to the
3-23     proprietor of the establishment; and]
3-24                       [(B)  provides personal care services.]
3-25                 [(4)]  "Personal care services" means:
3-26                       (A)  assistance with meals, dressing, movement,
 4-1     bathing, or other personal needs or maintenance;
 4-2                       (B)  the administration of medication by a person
 4-3     licensed to administer medication or the assistance with or
 4-4     supervision of medication; or
 4-5                       (C)  general supervision or oversight of the
 4-6     physical and mental well-being of a person who needs assistance to
 4-7     maintain a private and independent residence in an assisted living
 4-8     [a personal care] facility or who needs assistance to manage the
 4-9     person's personal life, regardless of whether a guardian has been
4-10     appointed for the person.
4-11                 (6) [(5)]  "Qualified religious society" means a
4-12     church, synagogue, or other organization or association that is
4-13     organized primarily for religious purposes and that:
4-14                       (A)  has been in existence in this state for at
4-15     least 35 years; and
4-16                       (B)  does not distribute any of its income to its
4-17     members, officers, or governing body other than as reasonable
4-18     compensation for services or reimbursement of expenses.
4-19           Sec. 247.003.  APPLICATION OF OTHER LAW.  (a)  Except as
4-20     provided by Subsection (b), Chapter 242 does not apply to an
4-21     assisted living [a personal care] facility licensed under this
4-22     chapter.
4-23           (b)  Subchapter D, Chapter 242, applies to an assisted living
4-24     [a personal care] facility, and the department shall administer and
4-25     enforce that subchapter for an assisted living [a personal care]
4-26     facility in the same manner it is administered and enforced for a
 5-1     nursing home.
 5-2           Sec. 247.004.  EXEMPTIONS.  This chapter does not apply to:
 5-3                 (1)  a boarding facility that has rooms for rent and
 5-4     that may offer community meals, light housework, meal preparation,
 5-5     transportation, grocery shopping, money management, or laundry
 5-6     services but that does not provide personal care services;
 5-7                 (2)  an establishment conducted by or for the adherents
 5-8     of the Church of Christ, Scientist, for the purpose of providing
 5-9     facilities for the care or treatment of the sick who depend
5-10     exclusively on prayer or spiritual means for healing without the
5-11     use of any drug or material remedy if the establishment complies
5-12     with local safety, sanitary, and quarantine ordinances and
5-13     regulations; [or]
5-14                 (3)  a facility conducted by or for the adherents of a
5-15     qualified religious society classified as a tax-exempt organization
5-16     under an Internal Revenue Service group exemption ruling for the
5-17     purpose of providing personal care services without charge solely
5-18     for the society's professed members or ministers in retirement, if
5-19     the facility complies with local safety, sanitation, and quarantine
5-20     ordinances and regulations; or
5-21                 (4)  a facility that provides personal care services
5-22     only to persons enrolled in a program that is funded in whole or in
5-23     part by the Texas Department of Mental Health and Mental
5-24     Retardation and that is monitored by the Texas Department of Mental
5-25     Health and Mental Retardation or its designated local authority in
5-26     accordance with standards set by the Texas Department of Mental
 6-1     Health and Mental Retardation.
 6-2           Sec. 247.005.  CONTROLLING PERSON.  (a)  A person is a
 6-3     controlling person if the person, acting alone or with others, has
 6-4     the ability to directly or indirectly influence, direct, or cause
 6-5     the direction of the management, expenditure of money, or policies
 6-6     of an assisted living facility or other person.
 6-7           (b)  For purposes of this chapter, "controlling person"
 6-8     includes:
 6-9                 (1)  a management company, landlord, or other business
6-10     entity that operates or contracts with others for the operation of
6-11     an assisted living facility;
6-12                 (2)  a person who is a controlling person of a
6-13     management company or other business entity that operates an
6-14     assisted living facility or that contracts with another person for
6-15     the operation of an assisted living facility; and
6-16                 (3)  any other individual who, because of a personal,
6-17     familial, or other relationship with the owner, manager, landlord,
6-18     tenant, or provider of an assisted living facility, is in a
6-19     position of actual control or authority with respect to the
6-20     facility, without regard to whether the individual is formally
6-21     named as an owner, manager, director, officer, provider,
6-22     consultant, contractor, or employee of the facility.
6-23           (c)  A controlling person described by Subsection (b)(3) does
6-24     not include an employee, lender, secured creditor, landlord, or
6-25     other person who does not exercise formal or actual influence or
6-26     control over the operation of an assisted living facility.
 7-1           (d)  The department may adopt rules that specify the
 7-2     ownership interests and other relationships that qualify a person
 7-3     as a controlling person.
 7-4               SUBCHAPTER B.  LICENSING, FEES, AND INSPECTIONS
 7-5           Sec. 247.021.  LICENSE REQUIRED.  (a)  A person may not
 7-6     establish or operate an assisted living [a personal care] facility
 7-7     without a license issued under this chapter.
 7-8           (b)  A person establishing or operating a facility that is
 7-9     not required to be licensed under this chapter may not use the term
7-10     "assisted living" in referring to the facility or the services
7-11     provided at the facility.
7-12           (c)  A person establishing or operating a facility that is
7-13     not required to be licensed but who elects to obtain a license
7-14     under this chapter may use the term "assisted living" in referring
7-15     to the facility or the services provided at the facility.
7-16           (d)  The department by rule shall establish procedures to
7-17     issue a six-month provisional license to existing facilities with
7-18     residents.  The department may issue a provisional license only if:
7-19                 (1)  the facility is in compliance with resident care
7-20     standards;
7-21                 (2)  the facility voluntarily discloses that the
7-22     facility needs additional time to comply with life safety code and
7-23     physical plant standards;
7-24                 (3)  the disclosure is made in writing by certified
7-25     mail to the department;
7-26                 (4)  an investigation of the violation was not
 8-1     initiated and the violation was not independently detected by the
 8-2     department; and
 8-3                 (5)  the disclosure is made promptly after knowledge of
 8-4     the information disclosed is obtained by the facility.
 8-5           (e) [(c)]  If, at the end of the six-month provisional
 8-6     license period, the facility does not meet life safety code and
 8-7     physical plant standards, the department may not issue a license to
 8-8     the facility.
 8-9           Sec. 247.022.  LICENSE APPLICATION.  (a)  An applicant for an
8-10     assisted living [a personal care] facility license must submit an
8-11     application to the department on a form prescribed by the
8-12     department.
8-13           (b)  Each application must be accompanied by a nonrefundable
8-14     license fee in an amount set by the board.
8-15           (c)  The department may provide technical assistance to an
8-16     applicant by making brief inspections of the assisted living
8-17     [personal care] facility proposed to be licensed and making
8-18     recommendations concerning actions necessary to meet standards for
8-19     assisted living [personal care] facilities.
8-20           Sec. 247.023.  ISSUANCE AND RENEWAL OF LICENSE.  (a)  The
8-21     department shall issue a license if, after inspection and
8-22     investigation, it finds that the applicant, [and] the assisted
8-23     living [personal care] facility, and all controlling persons with
8-24     respect to the applicant or facility meet the requirements of this
8-25     chapter and the standards adopted under this chapter.
8-26           (b)  To renew a license, the license holder must submit to
 9-1     the department the annual license renewal fee.
 9-2           (c)  The board may require participation in a continuing
 9-3     education program as a condition of renewal of a license.  The
 9-4     board shall adopt rules to implement this subsection.
 9-5           Sec. 247.0231.  COMPLIANCE RECORD IN OTHER STATES.  The
 9-6     department may require an applicant or license holder to provide
 9-7     the department with information relating to compliance by the
 9-8     applicant, the license holder, or a controlling person with respect
 9-9     to the applicant or license holder with regulatory requirements in
9-10     another state in which the applicant, license holder, or
9-11     controlling person operates or operated an assisted living
9-12     facility.
9-13           Sec. 247.024.  FEES; DISPOSITION OF REVENUE.  (a)  The board
9-14     shall set license fees imposed by this chapter:
9-15                 (1)  on the basis of the number of beds in assisted
9-16     living facilities required to pay the fee; and
9-17                 (2)  in amounts reasonable and necessary to defray the
9-18     cost of administering this chapter, but not to exceed $750[:]
9-19                 [(1)  $300 for a personal care facility that has not
9-20     more than 10 beds;]
9-21                 [(2)  $350 for a personal care facility that has not
9-22     less than 11 or more than 20 beds; and]
9-23                 [(3)  $400 for a personal care facility that has 21 or
9-24     more beds].
9-25           (b)  The board shall establish by rule a base fee schedule
9-26     and a per bed fee schedule.
 10-1          (c)  All fees or penalties collected under this chapter shall
 10-2    be deposited in the state treasury to the credit of the general
 10-3    revenue fund and shall be appropriated to the department only to
 10-4    administer and enforce this chapter.
 10-5          (d) [(c)]  Investigation fees or attorney's fees may not be
 10-6    assessed against or collected from an assisted living [a personal
 10-7    care] facility by or on behalf of the department or another state
 10-8    agency unless the department or other state agency assesses and
 10-9    collects a penalty authorized by this chapter from the facility.
10-10          Sec. 247.025.  ADOPTION OF RULES.  The board shall adopt
10-11    rules necessary to implement this chapter, including requirements
10-12    for the issuance, renewal, denial, suspension, and revocation of a
10-13    license to operate an assisted living [a personal care] facility.
10-14          Sec. 247.026.  STANDARDS.  (a)  The board by rule shall
10-15    prescribe minimum standards to protect the health and safety of an
10-16    assisted living [a personal care] facility resident.
10-17          (b)  The standards must:
10-18                (1)  clearly differentiate an assisted living [a
10-19    personal care] facility from an institution required to be licensed
10-20    under Chapter 242;
10-21                (2)  ensure quality care and protection of the
10-22    residents' health and safety without excessive cost; and
10-23                (3)  require an assisted living [a personal care]
10-24    facility to:
10-25                      (A)  indicate [use its license number] in all
10-26    advertisements, solicitations, and promotional materials that the
 11-1    facility is licensed by the department or that an application for a
 11-2    license is pending before the department; and
 11-3                      (B)  provide each prospective resident or
 11-4    prospective resident's representative, as appropriate, with a
 11-5    consumer disclosure statement in a standard form adopted by the
 11-6    department.
 11-7          (c)  The board shall require an assisted living facility that
 11-8    provides brain injury rehabilitation services to include in the
 11-9    facility's consumer disclosure statement a specific statement that
11-10    licensure as an assisted living facility does not indicate state
11-11    review, approval, or endorsement of the facility's rehabilitation
11-12    services.
11-13          (d)  The board may prescribe different levels of minimum
11-14    standards for assisted living [personal care] facilities according
11-15    to the number of residents, the type of residents, the level of
11-16    personal care provided, and other distinctions the board considers
11-17    relevant.
11-18          (e) [(d)]  Local health and safety standards adopted by the
11-19    municipality in which an assisted living [a personal care] facility
11-20    is located do not apply to the facility unless the standards
11-21    specifically state that they apply to assisted living [personal
11-22    care] facilities.
11-23          (f) [(e)]  The board by rule shall prescribe minimum
11-24    standards requiring appropriate training in geriatric care for each
11-25    individual who provides services to geriatric residents as an
11-26    employee of an assisted living [a personal care] facility and who
 12-1    holds a license or certificate issued by an agency of this state
 12-2    that authorizes the person to provide the services.  The minimum
 12-3    standards may require that each licensed or certified individual
 12-4    complete an appropriate program of continuing education or
 12-5    in-service training, as determined by board rule, on a schedule
 12-6    determined by board rule.
 12-7          (g) [(f)]  Any individual otherwise qualified, who has been
 12-8    employed by a licensed assisted living [personal care] facility for
 12-9    at least 90 days, shall be eligible to be certified as a medication
12-10    aide following completion of the required course of study and
12-11    successful completion of any required examination.
12-12          (h)  An individual may not serve as the manager of an
12-13    assisted living facility that has 17 beds or more unless the
12-14    individual:
12-15                (1)  has an associate's degree in nursing, health care
12-16    management, or a related field from a public or private institution
12-17    of higher education;
12-18                (2)  has a bachelor's degree from a public or private
12-19    institution of higher education; or
12-20                (3)  has at least one year of experience working in
12-21    management or in the health care industry.
12-22          (i)  The board by rule shall require each manager of an
12-23    assisted living facility that has 17 beds or more to complete at
12-24    least one educational course on the management of assisted living
12-25    facilities not later than the first anniversary of the date the
12-26    manager begins employment in that capacity.
 13-1          Sec. 247.0261.  EARLY COMPLIANCE REVIEW.  (a)  The department
 13-2    by rule shall adopt a procedure under which a person proposing to
 13-3    construct or modify an assisted living facility may submit building
 13-4    plans to the department for review for compliance with the
 13-5    department's architectural requirements before beginning
 13-6    construction or modification.  In adopting the procedure, the
 13-7    department shall set reasonable deadlines by which the department
 13-8    must complete review of submitted plans.
 13-9          (b)  The department shall, within 30 days, review plans
13-10    submitted under this section for compliance with the department's
13-11    architectural requirements and inform the person of the results of
13-12    the review.  If the plans comply with the department's
13-13    architectural requirements, the department may not subsequently
13-14    change the architectural requirements applicable to the project
13-15    unless:
13-16                (1)  the change is required by federal law; or
13-17                (2)  the person fails to complete the project within a
13-18    reasonable time.
13-19          (c)  The department may charge a reasonable fee for
13-20    conducting a review under this section.
13-21          (d)  A fee collected under this section shall be deposited in
13-22    the general revenue fund to the credit of the assisted living
13-23    account and shall be appropriated only to the department to conduct
13-24    reviews under this section.
13-25          (e)  The review procedure provided by this section does not
13-26    include review of building plans for compliance with the Texas
 14-1    Accessibility Standards as administered and enforced by the Texas
 14-2    Department of Licensing and Regulation.
 14-3          Sec. 247.027.  INSPECTIONS.  In addition to the inspection
 14-4    required under Section 247.023(a), the department may inspect an
 14-5    assisted living [a personal care] facility annually and may inspect
 14-6    a facility at other reasonable times as necessary to assure
 14-7    compliance with this chapter.
 14-8          Sec. 247.0271.  INSPECTOR TRAINING.  (a)  The department
 14-9    shall develop and implement a training program to provide
14-10    specialized training to department employees who inspect assisted
14-11    living facilities under this chapter.  The training must emphasize
14-12    the distinction between an assisted living facility and an
14-13    institution licensed under Chapter 242.
14-14          (b)  In developing and updating the training program required
14-15    by this section, the department shall consult with operators of
14-16    assisted living facilities and consumers of personal care services
14-17    provided by assisted living facilities or legal representatives of
14-18    those consumers.
14-19          Sec. 247.028.  ASSISTANCE BY DEPARTMENT.  The department may
14-20    provide assistance to an assisted living [a personal care]
14-21    facility, including the provision of training materials, the
14-22    coordination of training conferences and workshops with other state
14-23    agencies, and the development of a provider's handbook explaining
14-24    assisted living [personal care] facility rules.
14-25          Sec. 247.029.  FACILITIES FOR PERSONS WITH ALZHEIMER'S
14-26    DISEASE.  (a)  The board by rule shall establish a classification
 15-1    and license for a facility that advertises, markets, or otherwise
 15-2    promotes that the facility provides personal care services to
 15-3    residents who have Alzheimer's disease or related disorders.  A
 15-4    facility is not required to be classified under this section to
 15-5    provide care or treatment to residents who have Alzheimer's disease
 15-6    or related disorders.
 15-7          (b)  The board shall adopt minimum standards for an assisted
 15-8    living [a personal care] facility classified under this section.
 15-9          (c)  An individual may not serve as the manager of an
15-10    assisted living facility classified under this section or as the
15-11    supervisor of an assisted living facility unit classified under
15-12    this section unless the individual is at least 21 years of age and
15-13    has:
15-14                (1)  an associate's degree from a public or private
15-15    institution of higher education in nursing, health care management,
15-16    or a related field;
15-17                (2)  a bachelor's degree from a public or private
15-18    institution of higher education in psychology, gerontology,
15-19    nursing, or a related field; or
15-20                (3)  at least one year of experience working with
15-21    persons with dementia.
15-22          Sec. 247.030.  FACILITIES FOR SUPERVISION OF MEDICATION AND
15-23    GENERAL WELFARE.  (a)  The board by rule shall establish a
15-24    classification and license for a facility that:
15-25                (1)  provides only medication supervision, in
15-26    accordance with Section 247.002(5)(B), and general supervision of
 16-1    residents' welfare, in accordance with Section 247.002(5)(C); and
 16-2                (2)  does not provide substantial assistance with the
 16-3    activities of daily living, as described by Section 247.002(5)(A).
 16-4          (b)  The board shall adopt minimum standards for an assisted
 16-5    living facility classified under this section, including standards
 16-6    imposing adequate requirements relating to medication supervision.
 16-7    The board shall modify accessibility and life safety code standards
 16-8    generally applicable to a facility licensed under this chapter as
 16-9    necessary for a facility classified under this section to reflect
16-10    the level of services provided by the facility.  The modified
16-11    standards must be specifically defined by the board.
16-12          (c)  Except as provided by this section, an assisted living
16-13    facility classified under this section is required to comply with
16-14    all requirements imposed by this chapter.
16-15          Sec. 247.031 [247.029].  MUNICIPAL ENFORCEMENT.  The
16-16    governing body of a municipality by ordinance may:
16-17                (1)  prohibit a person who does not hold a license
16-18    issued under this chapter from establishing or operating an
16-19    assisted living [a personal care] facility within the municipality;
16-20    and
16-21                (2)  establish a procedure for emergency closure of a
16-22    facility in circumstances in which:
16-23                      (A)  the facility is established or operating in
16-24    violation of Section 247.021; and
16-25                      (B)  the continued operation of the facility
16-26    creates an immediate threat to the health and safety of a resident
 17-1    of the facility.
 17-2                    SUBCHAPTER C.  GENERAL ENFORCEMENT
 17-3          Sec. 247.041.  DENIAL, SUSPENSION, OR REVOCATION OF LICENSE.
 17-4    (a)  The department may deny, suspend, or revoke a license for a
 17-5    violation of this chapter or a rule adopted under this chapter.
 17-6          (b)  The denial, suspension, or revocation of a license by
 17-7    the department and the appeal from that action are governed by the
 17-8    procedures for a contested case hearing under Chapter 2001,
 17-9    Government Code.
17-10          Sec. 247.042.  EMERGENCY SUSPENSION OR CLOSING ORDER.
17-11    (a)  If the department finds an assisted living [a personal care]
17-12    facility operating in violation of the standards prescribed under
17-13    this chapter and the violations create an immediate threat to the
17-14    health and safety of a resident in the facility, the department
17-15    shall suspend the license or order immediate closing of all or part
17-16    of the facility.
17-17          (b)  The order suspending a license under Subsection (a) is
17-18    effective immediately on written notice to the license holder or on
17-19    the date specified in the order.
17-20          (c)  The order suspending the license and ordering closure of
17-21    all or part of an assisted living [a personal care] facility is
17-22    valid for 10 days after its effective date.
17-23          (d)  The department shall provide for the relocation of
17-24    residents of an assisted living [a personal care] facility that is
17-25    closed.  The relocation may not be to a facility with a more
17-26    restrictive environment unless all other reasonable alternatives
 18-1    are exhausted.  Relocation procedures shall be adopted as part of
 18-2    the memorandum of understanding adopted under Section 247.061
 18-3    [247.062].
 18-4          Sec. 247.043.  INVESTIGATION OF ABUSE, EXPLOITATION, OR
 18-5    NEGLECT.  (a)  The department shall conduct a preliminary
 18-6    investigation of each allegation of abuse, exploitation, or neglect
 18-7    of a resident of an assisted living [a personal care] facility to
 18-8    determine if there is evidence to corroborate the allegation.  If
 18-9    the department determines that there is evidence to corroborate the
18-10    allegation, the department shall conduct a thorough investigation
18-11    of the allegation.
18-12          (b)  If the thorough investigation reveals that abuse,
18-13    exploitation, or neglect has occurred, the department shall:
18-14                (1)  implement enforcement measures, including closing
18-15    the facility, revoking the facility's license, relocating
18-16    residents, and making referrals to law enforcement agencies;
18-17                (2)  notify the Department of Protective and Regulatory
18-18    Services of the results of the investigation;
18-19                (3)  notify a health and human services agency, as
18-20    defined by Section 531.001, Government Code, that contracts with
18-21    the facility for the delivery of personal care services of the
18-22    results of the investigation; and
18-23                (4)  provide to a contracting health and human services
18-24    agency access to the department's documents or records relating to
18-25    the investigation.
18-26          (c)  Providing access to a confidential document or record
 19-1    under Subsection (b)(4) does not constitute a waiver of
 19-2    confidentiality.
 19-3          Sec. 247.044.  INJUNCTION.  (a)  The department may petition
 19-4    a district court for a temporary restraining order to restrain a
 19-5    continuing violation of the standards or licensing requirements
 19-6    provided under this chapter if the department finds that:
 19-7                (1)  the violation creates an immediate threat to the
 19-8    health and safety of the assisted living [personal care] facility
 19-9    residents; or
19-10                (2)  the facility is operating without a license.
19-11          (b)  A district court, on petition of the department and on a
19-12    finding by the court that a person is violating the standards or
19-13    licensing requirements provided under this chapter, may by
19-14    injunction:
19-15                (1)  prohibit a person from continuing a violation of
19-16    the standards or licensing requirements provided under this
19-17    chapter;
19-18                (2)  restrain the establishment or operation of an
19-19    assisted living [a personal care] facility without a license issued
19-20    under this chapter; or
19-21                (3)  grant any other injunctive relief warranted by the
19-22    facts.
19-23          (c)  The department may petition a district court for a
19-24    temporary restraining order to inspect a facility allegedly
19-25    required to be licensed and operating without a license when
19-26    admission to the facility cannot be obtained.  If it is shown that
 20-1    admission to the facility cannot be obtained, the court shall order
 20-2    the facility to allow the department admission to the facility.
 20-3          (d)  The attorney general or local prosecuting attorney may
 20-4    institute and conduct a suit authorized by this section at the
 20-5    request of the department.
 20-6          (e)  Venue for a suit brought under this section is in the
 20-7    county in which the assisted living [personal care] facility is
 20-8    located or in Travis County.
 20-9          Sec. 247.045.  CIVIL PENALTIES.  (a)  Except as provided by
20-10    Subsections [Subsection] (b) and (c), a person who violates this
20-11    chapter or who fails to comply with a rule adopted under this
20-12    chapter and whose violation is determined by the department to
20-13    threaten the health and safety of a resident of an assisted living
20-14    [a personal care] facility is subject to a civil penalty of not
20-15    less than $100 nor more than $10,000 for each act of violation.
20-16    Each day of a continuing violation constitutes a separate ground of
20-17    recovery.
20-18          (b)  A person is subject to a civil penalty if the person:
20-19                (1)  is in violation of Section 247.021; or
20-20                (2)  has been determined to be in violation of Section
20-21    247.021 and violates any other provision of this chapter or fails
20-22    to comply with a rule adopted under this chapter.
20-23          [(b)  A person who does not possess a license for a personal
20-24    care facility as required by Section 247.021 is subject to a civil
20-25    penalty of not less than $1,000 nor more than $10,000 for each act
20-26    of violation.  Each day of a continuing violation constitutes a
 21-1    separate ground for recovery.]
 21-2          (c)  The amount of a civil penalty under Subsection (b) may
 21-3    not be less than $1,000 or more than $10,000 for each act of
 21-4    violation.  Each day of a continuing violation constitutes a
 21-5    separate ground of recovery.
 21-6          (d)  The attorney general may institute and conduct a suit to
 21-7    collect a penalty and fees under this section at the request of the
 21-8    department.  [(c)]  If the attorney general fails to take action
 21-9    within 30 days of referral from the department, the department
21-10    shall refer the case to the local district attorney, county
21-11    attorney, or city attorney.  The district attorney, county
21-12    attorney, or city attorney shall file suit in a district court to
21-13    collect and retain the penalty.
21-14          (e) [(d)]  Investigation and attorney's fees may not be
21-15    assessed or collected by or on behalf of the department or other
21-16    state agency unless the department or other state agency assesses
21-17    and collects a penalty described under this chapter.
21-18          (f) [(e)]  The department and attorney general, or other
21-19    legal representative as described in Subsection (d) [(c)], shall
21-20    work in close cooperation throughout any legal proceedings
21-21    requested by the department.
21-22          (g) [(f)]  The commissioner of human services must approve
21-23    any settlement agreement to a suit brought under this chapter.
21-24          Sec. 247.046.  COOPERATION AMONG AGENCIES.  The board, the
21-25    Department of Protective and Regulatory Services, and the attorney
21-26    general shall adopt by rule a memorandum of understanding that:
 22-1                (1)  defines each agency's responsibilities concerning
 22-2    assisted living [personal care] facilities and coordinates each
 22-3    agency's activities;
 22-4                (2)  details coordinated procedures to be used by each
 22-5    agency in responding to complaints relating to neglect or abuse of
 22-6    residents of facilities, to substandard facilities, and to
 22-7    unlicensed facilities;
 22-8                (3)  identifies enforcement needs each agency may have
 22-9    in order to perform its duties under the memorandum of
22-10    understanding, including any need for access to information or to
22-11    facilities under investigation or operating under a plan of
22-12    correction; and
22-13                (4)  provides a plan for correcting violations in
22-14    substandard or unlicensed assisted living [personal care]
22-15    facilities that specifies the conditions under which it is
22-16    appropriate to impose such a plan and that outlines a schedule of
22-17    implementation for the plan.
22-18          Sec. 247.047 [247.046].  TRANSITION.  The department shall
22-19    grant to a personal care facility licensed on or before December
22-20    31, 1990, under Chapter 242 a temporary permit to continue
22-21    operation until the department performs any inspection or
22-22    investigation required by this chapter.
22-23          Sec. 247.048.  REGIONAL TRAINING FOR AGENCIES AND LOCAL
22-24    GOVERNMENTS.  The department periodically shall conduct regional
22-25    training programs for representatives of local governments and
22-26    appropriate state agencies relating to assisted living facility
 23-1    concerns.  The training programs must provide to participants
 23-2    information relating to the assisted living facility industry,
 23-3    including information on:
 23-4                (1)  the general characteristics of assisted living
 23-5    facilities and residents of those facilities;
 23-6                (2)  the different types of assisted living facilities;
 23-7                (3)  the laws applicable to assisted living facilities;
 23-8    and
 23-9                (4)  the authority of the department and other entities
23-10    to enforce applicable laws.
23-11          Sec. 247.049.  USE OF REGULATORY REPORTS AND DOCUMENTS.
23-12    (a)  Except as otherwise provided by this section, a report or
23-13    other document prepared by the department that relates to
23-14    regulation of an assisted living facility is not admissible as
23-15    evidence in a civil action to prove that the facility violated a
23-16    standard prescribed under this chapter.
23-17          (b)  Subsection (a) does not:
23-18                (1)  apply to the admissibility as evidence of
23-19    department reports or other documents in an enforcement action in
23-20    which the state or an agency or political subdivision of the state
23-21    is a party, including:
23-22                      (A)  an action seeking injunctive relief under
23-23    Section 247.044;
23-24                      (B)  an action seeking imposition of a civil
23-25    penalty under Section 247.045; and
23-26                      (C)  a contested case hearing involving denial,
 24-1    suspension, or revocation of a license issued under this chapter;
 24-2                (2)  apply to the admissibility as evidence of
 24-3    department reports or other documents that are offered:
 24-4                      (A)  to establish warning or notice to an
 24-5    assisted living facility of a relevant department determination; or
 24-6                      (B)  under any rule or evidentiary predicate of
 24-7    the Texas Rules of Evidence;
 24-8                (3)  prohibit or limit the testimony of a department
 24-9    employee, in accordance with the Texas Rules of Evidence, as to
24-10    observations, factual findings, conclusions, or determinations that
24-11    an assisted living facility violated a standard prescribed under
24-12    this chapter if the observations, factual findings, conclusions, or
24-13    determinations were made in the discharge of the employee's
24-14    official duties for the department; or
24-15                (4)  prohibit or limit the use of department reports or
24-16    other documents in depositions or other forms of discovery
24-17    conducted in connection with a civil action if use of the reports
24-18    or other documents appears reasonably calculated to lead to the
24-19    discovery of admissible evidence.
24-20           SUBCHAPTER D.  ADVISORY COMMITTEE ON ASSISTED LIVING
24-21                        [PERSONAL CARE] FACILITIES
24-22          Sec. 247.051.  ADVISORY COMMITTEE.  (a)  The Advisory
24-23    Committee on Assisted Living [Personal Care] Facilities consists of
24-24    nine members appointed by the board.  The commissioner of human
24-25    services shall appoint two [one] staff members [member] from the
24-26    department to serve as [a] nonvoting advisory members [member].  In
 25-1    appointing staff members under this subsection, the commissioner
 25-2    shall appoint one member as a representative of long-term care
 25-3    policy and one member as a representative of long-term care
 25-4    regulation.
 25-5          (b)  The board shall appoint the advisory committee to
 25-6    provide for a balanced representation of personal care providers
 25-7    and consumers and shall appoint one member who has expertise in
 25-8    life safety code regulations.  At least one of the provider members
 25-9    must be representative of a nonprofit facility, and at least one
25-10    member must be a family member of a resident of a facility.
25-11          (c)  The committee shall elect the presiding officer from
25-12    among its members.
25-13          (d)  The committee shall advise the department on standards
25-14    for licensing assisted living [personal care] facilities and on the
25-15    implementation of this chapter.
25-16                  SUBCHAPTER E.  MISCELLANEOUS PROVISIONS
25-17          Sec. 247.061.  [PILOT PROGRAM:  OFFICE OF PERSONAL CARE
25-18    FACILITY OMBUDSMAN.  (a)  The Texas Department on Aging, under its
25-19    office of long-term care ombudsman, shall establish and operate a
25-20    pilot program providing a personal care facility ombudsman in one
25-21    or more counties.]
25-22          [(b)  The department may operate the office directly or by
25-23    contract or memorandum of agreement with a public agency or other
25-24    appropriate private nonprofit organization, including an
25-25    organization for family members of persons with mental illness or
25-26    an advocacy group concerning mental health, disabilities, or senior
 26-1    citizens.]
 26-2          [(c)  The pilot program shall recruit volunteers and citizen
 26-3    organizations to participate in the ombudsman program.]
 26-4          [(d)  The office shall provide training to ombudsmen,
 26-5    including training in mental illness and special needs of the
 26-6    elderly or disabled.]
 26-7          [(e)  An ombudsman in the pilot program may not make
 26-8    investigations.]
 26-9          [(f)  The Texas Department on Aging and the department shall
26-10    cooperate in developing guidelines for the pilot program.]
26-11          [Sec. 247.062.]  COORDINATION BETWEEN AGENCIES.  (a)  The
26-12    department and the attorney general shall adopt by rule a
26-13    memorandum of understanding that:
26-14                (1)  defines each agency's responsibilities concerning
26-15    assisted living [personal care] facilities;
26-16                (2)  outlines and coordinates procedures to be used by
26-17    those agencies in responding to complaints concerning assisted
26-18    living [personal care] facilities; and
26-19                (3)  provides a plan for correcting violations or
26-20    deficiencies in assisted living [personal care] facilities.
26-21          (b)  The department shall prepare the initial draft of the
26-22    memorandum of understanding and shall facilitate and ensure its
26-23    adoption.
26-24          Sec. 247.062 [247.063].  DIRECTORY OF ASSISTED LIVING
26-25    [PERSONAL CARE] FACILITIES; CONSUMERS' GUIDE.  (a)  The department
26-26    shall prepare a directory of assisted living [personal care]
 27-1    facilities that includes the name of the owner, the address and
 27-2    telephone number of the facility, the number of beds in the
 27-3    facility, and the facility's accessibility to disabled persons.
 27-4          (b)  The department shall revise the directory annually and
 27-5    shall make it available to the public.
 27-6          (c)  The department shall prepare a consumers' guide to
 27-7    assisted living [personal care] facilities and make it available to
 27-8    the public.  The consumers' guide shall provide information on
 27-9    licensing requirements for assisted living [personal care]
27-10    facilities, a brief description of minimum standards for
27-11    facilities, a copy of the residents' bill of rights, a copy of the
27-12    providers' bill of rights, and any other information that the
27-13    department determines may be useful to the public.
27-14          Sec. 247.063 [247.064].  REFERRALS.  (a)  If the Texas
27-15    Department of Mental Health and Mental Retardation or a local
27-16    mental health or mental retardation authority refers a patient or
27-17    client to an assisted living [a personal care] facility, the
27-18    referral may not be made to a [personal care] facility that is not
27-19    licensed under this chapter.
27-20          (b)  If the Texas Department of Mental Health and Mental
27-21    Retardation or a local mental health or mental retardation
27-22    authority gains knowledge of an assisted living [a personal care]
27-23    facility that is not operated or licensed by the Texas Department
27-24    of Mental Health and Mental Retardation, the authority, or the
27-25    Texas Department of Human Services and that has four or more
27-26    residents who are unrelated to the proprietor of the facility, the
 28-1    Texas Department of Mental Health and Mental Retardation or the
 28-2    authority shall report the name, address, and telephone number of
 28-3    the facility to the Texas Department of Human Services.
 28-4          Sec. 247.0631.  ACCESS.  An employee of the Texas Department
 28-5    of Mental Health and Mental Retardation or an employee of a local
 28-6    mental health and mental retardation authority may enter an
 28-7    assisted living facility as necessary to provide services to a
 28-8    resident of the facility.
 28-9          Sec. 247.064 [247.065].  RESIDENTS' BILL OF RIGHTS.
28-10    (a)  Each assisted living [personal care] facility shall post a
28-11    residents' bill of rights in a prominent place in the facility.
28-12          (b)  The residents' bill of rights must provide that each
28-13    resident in the assisted living [personal care] facility has the
28-14    right to:
28-15                (1)  manage the resident's financial affairs;
28-16                (2)  determine the resident's dress, hair style, or
28-17    other personal effects according to individual preference, except
28-18    that the resident has the responsibility to maintain personal
28-19    hygiene;
28-20                (3)  retain and use personal property in the resident's
28-21    immediate living quarters and to have an individual locked cabinet
28-22    in which to keep personal property;
28-23                (4)  receive and send unopened mail;
28-24                (5)  unaccompanied access to a telephone at a
28-25    reasonable hour or in case of an emergency or personal crisis;
28-26                (6)  privacy;
 29-1                (7)  unrestricted communication, including personal
 29-2    visitation with any person of the resident's choice, at any
 29-3    reasonable hour, including family members and representatives of
 29-4    advocacy groups and community service organizations;
 29-5                (8)  make contacts with the community and to achieve
 29-6    the highest level of independence, autonomy, and interaction with
 29-7    the community of which the resident is capable;
 29-8                (9)  present grievances on behalf of the resident or
 29-9    others to the operator, state agencies, or other persons without
29-10    threat of reprisal in any manner;
29-11                (10)  a safe and decent living environment and
29-12    considerate and respectful care that recognizes the dignity and
29-13    individuality of the resident;
29-14                (11)  refuse to perform services for the facility,
29-15    except as contracted for by the resident and operator;
29-16                (12)  practice the religion of the resident's choice;
29-17                (13)  leave the facility temporarily or permanently,
29-18    subject to contractual or financial obligations; and
29-19                (14)  not be deprived of any constitutional, civil, or
29-20    legal right solely by reason of residence in an assisted living [a
29-21    personal care] facility.
29-22          (c)  The residents' bill of rights must be written in the
29-23    primary language of each resident of the facility and must also
29-24    provide the toll-free telephone number of the department for
29-25    reporting abuse or neglect.
29-26          (d)  The rights provided under this section do not take
 30-1    precedence over health and safety rights of other residents of the
 30-2    facility.
 30-3          (e)  The department shall develop a residents' bill of rights
 30-4    in accordance with this section and provide a copy to each
 30-5    facility.  The copy shall be written in the primary language of
 30-6    each resident of the facility.
 30-7          Sec. 247.065 [247.066].  PROVIDERS' BILL OF RIGHTS.
 30-8    (a)  Each assisted living [personal care] facility shall post a
 30-9    providers' bill of rights in a prominent place in the facility.
30-10          (b)  The providers' bill of rights must provide that a
30-11    provider of personal care services has the right to:
30-12                (1)  be shown consideration and respect that recognizes
30-13    the dignity and individuality of the provider and assisted living
30-14    [personal care] facility;
30-15                (2)  terminate a resident's contract for just cause
30-16    after a written 30-day notice;
30-17                (3)  terminate a contract immediately, after notice to
30-18    the department, if the provider finds that a resident creates a
30-19    serious or immediate threat to the health, safety, or welfare of
30-20    other residents of the assisted living [personal care] facility;
30-21                (4)  present grievances, file complaints, or provide
30-22    information to state agencies or other persons without threat of
30-23    reprisal or retaliation;
30-24                (5)  refuse to perform services for the resident or the
30-25    resident's family other than those contracted for by the resident
30-26    and the provider;
 31-1                (6)  contract with the community to achieve the highest
 31-2    level of independence, autonomy, interaction, and services to
 31-3    residents;
 31-4                (7)  access to patient information concerning a client
 31-5    referred to the facility, which must remain confidential as
 31-6    provided by law;
 31-7                (8)  refuse a person referred to the facility if the
 31-8    referral is inappropriate;
 31-9                (9)  maintain an environment free of weapons and drugs;
31-10    and
31-11                (10)  be made aware of a resident's problems, including
31-12    self-abuse, violent behavior, alcoholism, or drug abuse.
31-13          Sec. 247.066.  APPROPRIATE PLACEMENT DETERMINATION.  (a)  The
31-14    department may not require the removal and relocation of a resident
31-15    of an assisted living facility if the resident's presence in the
31-16    facility does not endanger other residents and the resident can
31-17    receive adequate care at the facility through services:
31-18                (1)  provided by the facility in accordance with its
31-19    license; or
31-20                (2)  obtained by the resident from other providers.
31-21          (b)  In assessing whether a resident can receive adequate
31-22    care at a facility, the department shall consider all relevant
31-23    factors, including the placement preference expressed by the
31-24    resident with the agreement of the facility operator, the
31-25    resident's physician, and the resident's family members or other
31-26    representatives.
 32-1          Sec. 247.067.  HEALTH CARE PROFESSIONALS.  (a)  In this
 32-2    section, "health care professional" means an individual licensed,
 32-3    certified, or otherwise authorized to administer health care, for
 32-4    profit or otherwise, in the ordinary course of business or
 32-5    professional practice.  The term includes a physician, registered
 32-6    nurse, physical therapist, and occupational therapist.
 32-7          (b)  A health care professional may provide services within
 32-8    the professional's scope of practice to a resident of an assisted
 32-9    living facility at the facility.  This subsection does not
32-10    authorize a health care professional to provide ongoing services to
32-11    a chronically ill resident comparable to the services available in
32-12    an institution licensed under Chapter 242.  A health care
32-13    professional providing services under this subsection shall
32-14    maintain medical records of those services in accordance with the
32-15    licensing, certification, or other regulatory standards applicable
32-16    to the health care professional under law.
32-17          Sec. 247.068.  RETALIATION PROHIBITED.  (a)  A person
32-18    licensed under this chapter may not retaliate against a person for
32-19    filing a complaint, presenting a grievance, or providing in good
32-20    faith information relating to personal care services provided by
32-21    the license holder.
32-22          (b)  This section does not prohibit a license holder from
32-23    terminating an employee for a reason other than retaliation.
32-24          SECTION 2.  AMENDMENT.  Subdivision (3), Section 250.001,
32-25    Health and Safety Code, is amended to read as follows:
32-26                (3)  "Facility" means:
 33-1                      (A)  a nursing home, custodial care home, or
 33-2    other institution licensed by the Texas Department of Human
 33-3    Services under Chapter 242;
 33-4                      (B)  an assisted living [a personal care]
 33-5    facility licensed by the Texas Department of Human Services under
 33-6    Chapter 247;
 33-7                      (C)  a home health agency licensed [by the Texas
 33-8    Department of Health] under Chapter 142;
 33-9                      (D)  an adult day care facility [or adult day
33-10    health care facility] licensed by the Texas Department of Human
33-11    Services under Chapter 103, Human Resources Code;
33-12                      (E)  a facility for persons with mental
33-13    retardation licensed under Chapter 252 [or certified by the Texas
33-14    Department of Human Services];
33-15                      (F)  an unlicensed attendant care agency that
33-16    contracts with the Texas Department of Human Services;
33-17                      (G)  [an intermediate care facility for persons
33-18    with mental retardation that is certified by the Texas Department
33-19    of Human Services to participate in the Medicaid program under
33-20    Title XIX of the Social Security Act (42 U.S.C. Section 1396 et
33-21    seq.);]
33-22                      [(H)]  an adult foster care provider that
33-23    contracts with the Texas Department of Human Services; or
33-24                      (H) [(I)]  a facility that provides mental health
33-25    services and that is operated by or contracts with the Texas
33-26    Department of Mental Health and Mental Retardation.
 34-1          SECTION 3.  AMENDMENT.  Section 36.002, Human Resources Code,
 34-2    is amended to read as follows:
 34-3          Sec. 36.002.  UNLAWFUL ACTS.  A person commits an unlawful
 34-4    act if the person:
 34-5                (1)  knowingly or intentionally makes or causes to be
 34-6    made a false statement or misrepresentation of a material fact:
 34-7                      (A)  on an application for a contract, benefit,
 34-8    or payment under the Medicaid program; or
 34-9                      (B)  that is intended to be used to determine a
34-10    person's eligibility for a benefit or payment under the Medicaid
34-11    program;
34-12                (2)  knowingly or intentionally conceals or fails to
34-13    disclose an event:
34-14                      (A)  that the person knows affects the initial or
34-15    continued right to a benefit or payment under the Medicaid program
34-16    of:
34-17                            (i)  the person; or
34-18                            (ii)  another person on whose behalf the
34-19    person has applied for a benefit or payment or is receiving a
34-20    benefit or payment; and
34-21                      (B)  to permit a person to receive a benefit or
34-22    payment that is not authorized or that is greater than the payment
34-23    or benefit that is authorized;
34-24                (3)  knowingly or intentionally applies for and
34-25    receives a benefit or payment on behalf of another person under the
34-26    Medicaid program and converts any part of the benefit or payment to
 35-1    a use other than for the benefit of the person on whose behalf it
 35-2    was received;
 35-3                (4)  knowingly or intentionally makes, causes to be
 35-4    made, induces, or seeks to induce the making of a false statement
 35-5    or misrepresentation of material fact concerning:
 35-6                      (A)  the conditions or operation of a facility in
 35-7    order that the facility may qualify for certification or
 35-8    recertification required by the Medicaid program, including
 35-9    certification or recertification as:
35-10                            (i)  a hospital;
35-11                            (ii)  a nursing facility or skilled nursing
35-12    facility;
35-13                            (iii)  a hospice;
35-14                            (iv)  an intermediate care facility for the
35-15    mentally retarded;
35-16                            (v)  an assisted living [a personal care]
35-17    facility; or
35-18                            (vi)  a home health agency; or
35-19                      (B)  information required to be provided by a
35-20    federal or state law, rule, regulation, or provider agreement
35-21    pertaining to the Medicaid program;
35-22                (5)  except as authorized under the Medicaid program,
35-23    knowingly or intentionally charges, solicits, accepts, or receives,
35-24    in addition to an amount paid under the Medicaid program, a gift,
35-25    money, a donation, or other consideration as a condition to the
35-26    provision of a service or continued service to a Medicaid recipient
 36-1    if the cost of the service provided to the Medicaid recipient is
 36-2    paid for, in whole or in part, under the Medicaid program;
 36-3                (6)  knowingly or intentionally presents or causes to
 36-4    be presented a claim for payment under the Medicaid program for a
 36-5    product provided or a service rendered by a person who:
 36-6                      (A)  is not licensed to provide the product or
 36-7    render the service, if a license is required; or
 36-8                      (B)  is not licensed in the manner claimed;
 36-9                (7)  knowingly or intentionally makes a claim under the
36-10    Medicaid program for:
36-11                      (A)  a service or product that has not been
36-12    approved or acquiesced in by a treating physician or health care
36-13    practitioner;
36-14                      (B)  a service or product that is substantially
36-15    inadequate or inappropriate when compared to generally recognized
36-16    standards within the particular discipline or within the health
36-17    care industry; or
36-18                      (C)  a product that has been adulterated,
36-19    debased, mislabeled, or that is otherwise inappropriate;
36-20                (8)  makes a claim under the Medicaid program and
36-21    knowingly or intentionally fails to indicate the type of license
36-22    and the identification number of the licensed health care provider
36-23    who actually provided the service;
36-24                (9)  knowingly or intentionally enters into an
36-25    agreement, combination, or conspiracy to defraud the state by
36-26    obtaining or aiding another person in obtaining an unauthorized
 37-1    payment or benefit from the Medicaid program or a fiscal agent; or
 37-2                (10)  is a managed care organization that contracts
 37-3    with the Health and Human Services Commission or other state agency
 37-4    to provide or arrange to provide health care benefits or services
 37-5    to individuals eligible under the Medicaid program and knowingly or
 37-6    intentionally:
 37-7                      (A)  fails to provide to an individual a health
 37-8    care benefit or service that the organization is required to
 37-9    provide under the contract;
37-10                      (B)  fails to provide to the commission or
37-11    appropriate state agency information required to be provided by
37-12    law, commission or agency rule, or contractual provision;
37-13                      (C)  engages in a fraudulent activity in
37-14    connection with the enrollment of an individual eligible under the
37-15    Medicaid program in the organization's managed care plan or in
37-16    connection with marketing the organization's services to an
37-17    individual eligible under the Medicaid program; or
37-18                      (D)  obstructs an investigation by the attorney
37-19    general of an alleged unlawful act under this section.
37-20          SECTION 4.  AMENDMENT.  Title 6, Human Resources Code, is
37-21    amended by adding Chapter 105 to read as follows:
37-22           CHAPTER 105.  RESIDENTIAL FACILITIES FOR THE ELDERLY
37-23          Sec. 105.001.  DEFINITIONS.  In this chapter:
37-24                (1)  "Establishment" means a facility providing
37-25    sleeping accommodations to two or more qualifying adult residents,
37-26    at least 80 percent of whom are 65 years of age or older or are
 38-1    disabled, and offering, for a fee, one or more supportive services
 38-2    through contract with an agency licensed under Chapter 142, Health
 38-3    and Safety Code, or with another entity.
 38-4                (2)  "Qualifying adult resident" means an adult
 38-5    resident of a facility who is not related within the second degree
 38-6    by consanguinity or affinity to:
 38-7                      (A)  a person who has an ownership interest in
 38-8    the facility; or
 38-9                      (B)  at least one other resident of the facility.
38-10                (3)  "Supportive services" means medical services,
38-11    health-related services, or personal care services as defined by
38-12    Section 247.002, Health and Safety Code.
38-13          Sec. 105.002.  EXEMPT FACILITIES.  The following facilities
38-14    are exempt from the application of this chapter:
38-15                (1)  housing in which all supportive services are
38-16    arranged directly by the residents themselves and are provided by
38-17    outside entities;
38-18                (2)  nursing facilities licensed under Chapter 242,
38-19    Health and Safety Code; and
38-20                (3)  continuing care facilities regulated by the Texas
38-21    Department of Insurance under Chapter 246, Health and Safety Code.
38-22          Sec. 105.003.  DISCLOSURE REQUIRED IN CONTRACT.  An
38-23    establishment that is not required to be licensed as an assisted
38-24    living facility under Chapter 247, Health and Safety Code, shall
38-25    execute a contract with each of its residents that contains, in
38-26    addition to other required information, the following elements:
 39-1                (1)  the name, street address, and mailing address of
 39-2    the establishment;
 39-3                (2)  the name and mailing address of at least one
 39-4    person authorized to act on behalf of the owner or owners or
 39-5    management agent of the establishment;
 39-6                (3)  a statement describing the licensure status of the
 39-7    establishment;
 39-8                (4)  the name, mailing address, and telephone number of
 39-9    any provider, including any individual or entity, regardless of
39-10    whether licensed, providing supportive services under a contract
39-11    with the establishment;
39-12                (5)  the term of the contract;
39-13                (6)  a description of the services to be provided that
39-14    are included in the base monthly rate to be paid by the resident;
39-15                (7)  a description of any additional services available
39-16    for an additional fee from a provider through a contract with the
39-17    establishment;
39-18                (8)  a provision requiring the establishment to provide
39-19    written notice of any change in fee schedules that outline the cost
39-20    of additional services not later than the 31st day before the
39-21    effective date of the change;
39-22                (9)  a description of the process by which the contract
39-23    may be modified, amended, or terminated;
39-24                (10)  a description of the complaint resolution process
39-25    available to residents;
39-26                (11)  the name, street address, mailing address, and
 40-1    telephone number of the resident's designated representative, if
 40-2    any;
 40-3                (12)  a description of the billing and payment
 40-4    procedures and requirements;
 40-5                (13)  a statement ensuring the ability and right of
 40-6    residents to receive services from providers with whom the
 40-7    establishment does not have a contract; and
 40-8                (14)  a statement identifying the life safety and fire
 40-9    codes met by the building and a statement indicating whether those
40-10    codes are comparable to the codes with which an assisted living
40-11    facility licensed under Chapter 247, Health and Safety Code, must
40-12    comply.
40-13          SECTION 5.  AMENDMENT.  Section 123.004, Human Resources
40-14    Code, is amended to read as follows:
40-15          Sec. 123.004.  QUALIFICATION AS COMMUNITY HOME.  To qualify
40-16    as a community home, an entity must comply with Sections 123.005
40-17    through 123.008 and be:
40-18                (1)  a community-based residential home operated by:
40-19                      (A)  the Texas Department of Mental Health and
40-20    Mental Retardation;
40-21                      (B)  a community center organized under
40-22    Subchapter A, Chapter 534, Health and Safety Code, that provides
40-23    services to persons with disabilities;
40-24                      (C)  an entity subject to the Texas Non-Profit
40-25    Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
40-26    Statutes); or
 41-1                      (D)  an entity certified by the Texas Department
 41-2    of Human Services as a provider under the medical assistance
 41-3    program serving persons in intermediate care facilities for persons
 41-4    with mental retardation; or
 41-5                (2)  an assisted living [a personal care] facility
 41-6    licensed under Chapter 247, Health and Safety Code, provided that
 41-7    the exterior structure retains compatibility with the surrounding
 41-8    residential dwellings.
 41-9          SECTION 6.  REFERENCE TO PERSONAL CARE FACILITY.  (a)  A
41-10    reference in law to a personal care facility means an assisted
41-11    living facility, as defined by Section 247.002, Health and Safety
41-12    Code, as amended by this Act.
41-13          (b)  A reference in law to the Advisory Committee on Personal
41-14    Care Facilities means the Advisory Committee on Assisted Living
41-15    Facilities established under Section 247.051, Health and Safety
41-16    Code, as amended by this Act.
41-17          SECTION 7.  ENFORCEMENT OF LICENSURE REQUIREMENT.  (a)  Not
41-18    later than January 1, 2000, the Texas Department of Human Services
41-19    shall:
41-20                (1)  identify unlicensed facilities in this state that
41-21    are required to be licensed under Chapter 247, Health and Safety
41-22    Code, as amended by this Act; and
41-23                (2)  take action to enforce the licensure requirements.
41-24          (b)  Not later than December 1, 2000, the department shall
41-25    submit to the governor and the legislature a report describing the
41-26    results of the  department's efforts under this section.  The
 42-1    report must include:
 42-2                (1)  the number of facilities identified;
 42-3                (2)  the geographical distribution of those facilities;
 42-4    and
 42-5                (3)  the results of the department's efforts to enforce
 42-6    licensure of those facilities.
 42-7          (c)  This section takes effect on the first date that it may
 42-8    take effect under Section 39, Article III, Texas Constitution.
 42-9          SECTION 8.  WORK GROUP ON TEXAS ACCESSIBILITY STANDARDS.
42-10    (a)  As soon as possible after the effective date of this section,
42-11    the Texas Department of Human Services and the Texas Department of
42-12    Licensing and Regulation shall form a joint work group to study and
42-13    make recommendations not later than September 1, 2000, to those
42-14    agencies concerning the application of the Texas Accessibility
42-15    Standards and other architectural requirements to facilities
42-16    required to be licensed under Chapter 247, Health and Safety Code.
42-17          (b)  The work group shall:
42-18                (1)  review bathroom accessibility standards applicable
42-19    to a facility and make suggestions regarding any necessary changes
42-20    to those standards;
42-21                (2)  determine whether the architectural reviews of a
42-22    facility currently conducted separately by each agency could be
42-23    consolidated into a single review;
42-24                (3)  develop standard information materials that
42-25    address architectural requirements applicable to construction or
42-26    modification of a facility; and
 43-1                (4)  address any other issue relating to architectural
 43-2    standards applicable to a facility.
 43-3          (c)  The agencies shall include in the work group
 43-4    representatives of developers and providers of facilities and
 43-5    consumers of personal care services provided by facilities.
 43-6          (d)  The members of the work group shall elect a presiding
 43-7    officer and any other necessary officers for the work group.
 43-8          (e)  The work group shall meet at the call of the presiding
 43-9    officer.
43-10          (f)  A member of the work group receives no compensation for
43-11    serving on the work group.
43-12          (g)  The work group is not subject to Chapter 2110,
43-13    Government Code.
43-14          (h)  The work group dissolves and this section expires
43-15    September 1, 2001.
43-16          (i)  This section takes effect on the first date that it may
43-17    take effect under Section 39, Article III, Texas Constitution.
43-18          SECTION 9.  COMMUNITY-BASED ALTERNATIVES PROGRAM RATE METHOD.
43-19    (a)  As soon as possible after the effective date of this section,
43-20    the Texas Department of Human Services by rule shall develop and
43-21    implement a new reimbursement method for personal care services
43-22    funded through the community-based alternatives program that is
43-23    based on the type of service provided in addition to the number of
43-24    clients occupying a room.
43-25          (b)  This section takes effect on the first date that it may
43-26    take effect under Section 39, Article III, Texas Constitution.
 44-1          SECTION 10.  DEADLINE:  CONSUMER DISCLOSURE STATEMENT.  Not
 44-2    later than September 1, 1999, the Texas Department of Human
 44-3    Services shall adopt the consumer disclosure statement required by
 44-4    Paragraph (B), Subdivision (3), Subsection (b), Section 247.026,
 44-5    Health and Safety Code, as added by this Act.
 44-6          SECTION 11.  TRANSITION:  REQUIRED EDUCATIONAL COURSE FOR
 44-7    MANAGERS OF CERTAIN FACILITIES.  Subsection (i), Section 247.026,
 44-8    Health and Safety Code, as added by this Act, applies only to a
 44-9    person who begins employment as a manager of an assisted living
44-10    facility on or after the effective date of this Act.  A person who
44-11    begins employment as a manager of an assisted living facility
44-12    before the effective date of this Act is governed by the law in
44-13    effect on the date that the person begins employment, and that law
44-14    is continued in effect for that purpose.
44-15          SECTION 12.  LEGISLATIVE INTENT.  Subsection (d), Section
44-16    247.045, Health and Safety Code, as amended by this Act, is
44-17    intended to emphasize the authority of the attorney general to
44-18    institute and conduct a suit to collect a penalty and fees.  The
44-19    amendment may not be construed to mean that the attorney general
44-20    lacked that authority before the effective date of this Act.
44-21          SECTION 13.  WAIVERS.  If, before implementing any provision
44-22    of this Act, a state agency determines that a waiver or
44-23    authorization from a federal agency is necessary for implementation
44-24    of that provision, the agency affected by the provision shall
44-25    request the waiver or authorization and may delay implementing that
44-26    provision until the waiver or authorization is granted.
 45-1          SECTION 14.  CONFLICTS.  To the extent of any conflict, this
 45-2    Act prevails over another Act of the 76th Legislature, Regular
 45-3    Session, 1999, relating to nonsubstantive additions to and
 45-4    corrections in enacted codes.
 45-5          SECTION 15.  EFFECTIVE DATE.  Except as otherwise provided by
 45-6    this Act, this Act takes effect September 1, 1999.
 45-7          SECTION 16.  EMERGENCY.  The importance of this legislation
 45-8    and the crowded condition of the calendars in both houses create an
 45-9    emergency and an imperative public necessity that the
45-10    constitutional rule requiring bills to be read on three several
45-11    days in each house be suspended, and this rule is hereby suspended,
45-12    and that this Act take effect and be in force according to its
45-13    terms, and it is so enacted.