By:  Moncrief                                          S.B. No. 527
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to taking regulatory action against assisted living
 1-3     facilities, including the imposition of administrative penalties.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 247.002, Health and Safety Code, is
 1-6     amended by adding Subdivision (7) to read as follows:
 1-7                 (7)  "Commissioner" means the commissioner of human
 1-8     services.
 1-9           SECTION 2.  Subchapter A, Chapter 247, Health and Safety
1-10     Code, is amended by adding Section 247.0025 to read as follows:
1-11           Sec. 247.0025.  IMMEDIATE THREAT OF HARM.  For purposes of
1-12     this chapter, there is considered to be an immediate threat to the
1-13     health or safety of a resident, or a situation is considered to put
1-14     the health or safety of a resident in immediate jeopardy, if there
1-15     is a high probability that serious harm or injury to the resident
1-16     could occur at any time or has already occurred and may occur again
1-17     if the resident is not protected from the harm or if the threat is
1-18     not removed.
1-19           SECTION 3.  The section heading to Section 247.0272, Health
1-20     and Safety Code, is amended to read as follows:
1-21           Sec. 247.0272.  INSPECTOR TRAINING; REQUIRED EXAMINATION.
1-22           SECTION 4.  Section 247.0272, Health and Safety Code, is
1-23     amended by adding Subsections (c) and (d) to read as follows:
1-24           (c)  The department shall examine department employees who
1-25     inspect or otherwise survey assisted living facilities under this
 2-1     chapter.  In developing the examination, the department shall
 2-2     consult with operators of assisted living facilities or their
 2-3     representatives and with consumers of personal care services
 2-4     provided by assisted living facilities or representatives of
 2-5     consumers.
 2-6           (d)  A department employee may not independently inspect,
 2-7     survey, or take administrative action against an assisted living
 2-8     facility unless the employee has passed the examination
 2-9     administered under Subsection (c).
2-10           SECTION 5.  Section 247.041, Health and Safety Code, is
2-11     amended to read as follows:
2-12           Sec. 247.041.  DENIAL, SUSPENSION, OR REVOCATION OF LICENSE.
2-13     (a)  The department, after providing notice and opportunity for a
2-14     hearing to the applicant or license holder, may deny, suspend, or
2-15     revoke a license if the department finds that the applicant,
2-16     license holder, or a controlling person has:
2-17                 (1)  violated [for a violation of] this chapter or a
2-18     rule, standard, or order adopted or license issued under this
2-19     chapter in either a repeated or substantial manner; or
2-20                 (2)  committed any act described by Sections
2-21     247.0451(a)(2)-(6).
2-22           (b)  The denial, suspension, or revocation of a license by
2-23     the department and the appeal from that action are governed by the
2-24     procedures for a contested case hearing under Chapter 2001,
2-25     Government Code.
2-26           (c)  The status of a person as an applicant for a license or
 3-1     as a license holder is preserved until final disposition of the
 3-2     contested matter, except as the court having jurisdiction of a
 3-3     judicial review of the matter may order in the public interest for
 3-4     the welfare and safety of the residents.
 3-5           (d)  A court having jurisdiction of a judicial review of the
 3-6     matter may not order arbitration, whether on motion of any party or
 3-7     on the court's own motion, to resolve a dispute involving the
 3-8     denial, suspension, or revocation of a license under this section
 3-9     or the conduct with respect to which the denial, suspension, or
3-10     revocation of the license is sought.
3-11           SECTION 6.  Section 247.042, Health and Safety Code, is
3-12     amended by amending Subsection (a) and adding Subsection (e) to
3-13     read as follows:
3-14           (a)  If the department finds an assisted living facility
3-15     operating in violation of the standards prescribed by [under] this
3-16     chapter and the violations create an immediate threat to the health
3-17     and safety of a resident in the facility, the department shall
3-18     suspend the license or order immediate closing of [all or] part of
3-19     the facility.
3-20           (e)  The department and the State Office of Administrative
3-21     Hearings shall expedite any hearing or decision involving an
3-22     emergency suspension or closing order issued under this section.
3-23           SECTION 7.  Section 247.0455, Health and Safety Code, is
3-24     redesignated as Section 247.0459, Health and Safety Code, and
3-25     amended to read as follows:
3-26           Sec. 247.0459 [247.0455].  VIOLATION OF LAW RELATING TO
 4-1     ADVANCE DIRECTIVES.  (a)  The department shall assess an
 4-2     administrative penalty against an assisted living [a personal care]
 4-3     facility that violates Section 166.004.
 4-4           (b)  A penalty assessed under this section shall be $500.
 4-5           (c)  The penalty shall be assessed in accordance with
 4-6     department rules.  The rules must provide for notice and an
 4-7     opportunity for a hearing.
 4-8           SECTION 8.  Subchapter C, Chapter 247, Health and Safety
 4-9     Code, is amended by adding Sections 247.0451 through 247.0457 to
4-10     read as follows:
4-11           Sec. 247.0451.  ADMINISTRATIVE PENALTY.  (a)  The department
4-12     may assess an administrative penalty against a person who:
4-13                 (1)  violates this chapter or a rule, standard, or
4-14     order adopted under this chapter or a term of a license issued
4-15     under this chapter;
4-16                 (2)  makes a false statement, that the person knows or
4-17     should know is false, of a material fact:
4-18                       (A)  on an application for issuance or renewal of
4-19     a license or in an attachment to the application; or
4-20                       (B)  with respect to a matter under investigation
4-21     by the department;
4-22                 (3)  refuses to allow a representative of the
4-23     department to inspect:
4-24                       (A)  a book, record, or file required to be
4-25     maintained by an assisted living facility; or
4-26                       (B)  any portion of the premises of an assisted
 5-1     living facility;
 5-2                 (4)  wilfully interferes with the work of a
 5-3     representative of the department or the enforcement of this
 5-4     chapter;
 5-5                 (5)  wilfully interferes with a representative of the
 5-6     department preserving evidence of a violation of this chapter or a
 5-7     rule, standard, or order adopted under this chapter or a term of a
 5-8     license issued under this chapter; or
 5-9                 (6)  fails to pay a penalty assessed under this chapter
5-10     not later than the 30th day after the date the assessment of the
5-11     penalty becomes final.
5-12           (b)  Except as provided by Section 247.0452(c), the penalty
5-13     may not exceed $500 for each violation.
5-14           (c)  The board shall establish gradations of penalties in
5-15     accordance with the relative seriousness of the violation.
5-16           (d)  In determining the amount of a penalty, the department
5-17     shall consider any matter that justice may require, but must
5-18     consider each of the following and make a record of the extent to
5-19     which each of the following was considered:
5-20                 (1)  the gradations of penalties established under
5-21     Subsection (c);
5-22                 (2)  the seriousness of the violation, including the
5-23     nature, circumstances, extent, and gravity of the prohibited act
5-24     and the hazard or potential hazard created by the act to the health
5-25     or safety of the public;
5-26                 (3)  the history of previous violations;
 6-1                 (4)  deterrence of future violations;
 6-2                 (5)  efforts to correct the violation; and
 6-3                 (6)  the size of the facility and of the business
 6-4     entity that owns the facility.
 6-5           (e)  A penalty assessed under Subsection (a)(6) is in
 6-6     addition to the penalty previously assessed and not timely paid.
 6-7           Sec. 247.0452.  RIGHT TO CORRECT.  (a)  The department may
 6-8     not collect an administrative penalty from an assisted living
 6-9     facility under Section 247.0451 if, not later than the 45th day
6-10     after the date the facility receives notice under Section
6-11     247.0453(c), the facility corrects the violation.
6-12           (b)  Subsection (a)  does not apply:
6-13                 (1)  to a violation that the department determines
6-14     results in serious harm to or death of a resident;
6-15                 (2)  to a violation described by Sections
6-16     247.0451(a)(2)-(6);
6-17                 (3)  to a second or subsequent violation of:
6-18                       (A)  a right of the same resident under Section
6-19     247.064; or
6-20                       (B)  the same right of all residents under
6-21     Section 247.064; or
6-22                 (4)  to a violation described by Section 247.066, which
6-23     contains its own right to correct provisions.
6-24           (c)  An assisted living facility that corrects a violation
6-25     must maintain the correction.  If the facility  fails to maintain
6-26     the correction until at least the first anniversary of the date the
 7-1     correction was made, the department may assess and collect an
 7-2     administrative penalty for the subsequent violation.  An
 7-3     administrative penalty assessed under this subsection is equal to
 7-4     three times the amount of the original penalty assessed but not
 7-5     collected.  The department is not required to provide the facility
 7-6     with an opportunity under this section to correct the subsequent
 7-7     violation.
 7-8           Sec. 247.0453.  REPORT RECOMMENDING ADMINISTRATIVE PENALTY.
 7-9     (a)  The department shall issue a preliminary report stating the
7-10     facts on which the department concludes that a violation of this
7-11     chapter or a rule, standard, or order adopted under this chapter or
7-12     a term of a license issued under this chapter has occurred if the
7-13     department has:
7-14                 (1)  examined the possible violation and facts
7-15     surrounding the possible violation; and
7-16                 (2)  concluded that a violation has occurred.
7-17           (b)  The report may recommend a penalty under Section
7-18     247.0451 and the amount of the penalty.
7-19           (c)  The department shall give written notice of the report
7-20     to the person charged with the violation not later than the 10th
7-21     day after the date on which the report is issued.  The notice must
7-22     include:
7-23                 (1)  a brief summary of the charges;
7-24                 (2)  a statement of the amount of penalty recommended;
7-25                 (3)  a statement of whether the violation is subject to
7-26     correction under Section 247.0452 and, if the violation is subject
 8-1     to correction under that section, a statement of:
 8-2                       (A)  the date on which the assisted living
 8-3     facility must file with the department a plan of correction to be
 8-4     approved by the department; and
 8-5                       (B)  the date on which the plan of correction
 8-6     must be completed to avoid assessment of the penalty; and
 8-7                 (4)  a statement that the person charged has a right to
 8-8     a hearing on the occurrence of the violation, the amount of the
 8-9     penalty, or both.
8-10           (d)  Not later than the 20th day after the date on which the
8-11     notice under Subsection (c) is received, the person charged may:
8-12                 (1)  give to the department written consent to the
8-13     department's report, including the recommended penalty; or
8-14                 (2)  make a written request for a hearing.
8-15           (e)  If the violation is subject to correction under Section
8-16     247.0452, the assisted living facility shall submit a plan of
8-17     correction to the department for approval not later than the 10th
8-18     day after the date on which the notice under Subsection (c) is
8-19     received.
8-20           (f)  If the violation is subject to correction under Section
8-21     247.0452, and the person reports to the department that the
8-22     violation has been corrected, the department shall inspect the
8-23     correction or take any other step necessary to confirm the
8-24     correction and shall notify the person that:
8-25                 (1)  the correction is satisfactory and a penalty will
8-26     not be assessed; or
 9-1                 (2)  the correction is not satisfactory and a penalty
 9-2     is recommended.
 9-3           (g)  Not later than the 20th day after the date on which a
 9-4     notice under Subsection (f)(2) is received, the person charged may:
 9-5                 (1)  give to the department written consent to the
 9-6     department's report, including the recommended penalty; or
 9-7                 (2)  make a written request for a hearing.
 9-8           (h)  If the person charged with the violation consents to the
 9-9     penalty recommended by the department or does not timely respond to
9-10     a notice sent under Subsection (c) or (f)(2), the commissioner or
9-11     the commissioner's designee shall assess the penalty recommended by
9-12     the department.
9-13           (i)  If the commissioner or the commissioner's designee
9-14     assesses the recommended penalty, the department shall give written
9-15     notice to the person charged of the decision and the person shall
9-16     pay the penalty.
9-17           Sec. 247.0454.  HEARING ON ADMINISTRATIVE PENALTY.  (a)  An
9-18     administrative law judge shall order a hearing and give notice of
9-19     the hearing if a person charged with a violation under Section
9-20     247.0451 timely requests a hearing.
9-21           (b)  The hearing shall be held before an administrative law
9-22     judge.
9-23           (c)  The administrative law judge shall make findings of fact
9-24     and conclusions of law and promptly issue to the commissioner or
9-25     the commissioner's designee a written decision regarding the
9-26     occurrence of a violation of this chapter or a rule, standard, or
 10-1    order adopted under this chapter or a term of a license issued
 10-2    under this chapter and a recommendation regarding the amount of the
 10-3    proposed penalty if a penalty is warranted.
 10-4          (d)  Based on the findings of fact and conclusions of law and
 10-5    the recommendation of the administrative law judge, the
 10-6    commissioner or the commissioner's designee by order may:
 10-7                (1)  find that a violation has occurred and assess an
 10-8    administrative penalty; or
 10-9                (2)  find that a violation has not occurred.
10-10          (e)  If the commissioner or the commissioner's designee finds
10-11    that a violation has not occurred, the commissioner or the
10-12    commissioner's designee shall order that all records reflecting
10-13    that the department found a violation had occurred and attempted to
10-14    impose an administrative penalty shall be expunged except:
10-15                (1)  records obtained by the department during its
10-16    investigation; and
10-17                (2)  the administrative law judge's findings of fact.
10-18          (f)  Proceedings under this section are subject to Chapter
10-19    2001, Government Code.
10-20          Sec. 247.0455.  NOTICE AND PAYMENT OF ADMINISTRATIVE PENALTY;
10-21    INTEREST; REFUND.  (a)  The commissioner or the commissioner's
10-22    designee shall give notice of the findings made under Section
10-23    247.0454(d) to the person charged.  If the commissioner or the
10-24    commissioner's designee finds that a violation has occurred, the
10-25    commissioner or the commissioner's designee shall give to the
10-26    person charged written notice of:
 11-1                (1)  the findings;
 11-2                (2)  the amount of the administrative penalty;
 11-3                (3)  the rate of interest payable with respect to the
 11-4    penalty and the date on which interest begins to accrue;
 11-5                (4)  whether action under Section 247.0457 is required
 11-6    in lieu of payment of all or part of the penalty; and
 11-7                (5)  the person's right to judicial review of the order
 11-8    of the commissioner or the commissioner's designee.
 11-9          (b)  Not later than the 30th day after the date on which the
11-10    order of the commissioner or the commissioner's designee is final,
11-11    the person charged with the penalty shall:
11-12                (1)  pay the full amount of the penalty; or
11-13                (2)  file a petition for judicial review contesting the
11-14    occurrence of the violation, the amount of the penalty, the
11-15    department's dissatisfaction with efforts to correct the violation,
11-16    or any combination of these issues.
11-17          (c)  Notwithstanding Subsection (b), the department may
11-18    permit the person to pay a penalty in installments or may require
11-19    the person to use all or part of the amount of the penalty in
11-20    accordance with Section 247.0457.
11-21          (d)  If the person does not pay the penalty within the period
11-22    provided by Subsection (b) or in accordance with Subsection (c), if
11-23    applicable:
11-24                (1)  the penalty is subject to interest; and
11-25                (2)  the department may refer the matter to the
11-26    attorney general for collection of the penalty and interest.
 12-1          (e)  Interest under Subsection (d)(1) accrues:
 12-2                (1)  at a rate equal to the rate charged on loans to
 12-3    depository institutions by the New York Federal Reserve Bank; and
 12-4                (2)  for the period beginning on the day after the date
 12-5    on which the penalty becomes due and ending on the date the penalty
 12-6    is paid.
 12-7          (f)  If the amount of the penalty is reduced or the
 12-8    assessment of a penalty is not upheld on judicial review, the
 12-9    commissioner shall:
12-10                (1)  remit to the person charged the appropriate amount
12-11    of any penalty payment plus accrued interest; or
12-12                (2)  execute a release of the supersedeas bond if one
12-13    has been posted.
12-14          (g)  Accrued interest on amounts remitted by the commissioner
12-15    under Subsection (f)(1) shall be paid:
12-16                (1)  at a rate equal to the rate charged on loans to
12-17    depository institutions by the New York Federal Reserve Bank; and
12-18                (2)  for the period beginning on the date the penalty
12-19    is paid and ending on the date the penalty is remitted to the
12-20    person charged.
12-21          Sec. 247.0456.  APPLICATION OF OTHER LAW.  The department may
12-22    not assess a monetary penalty under this chapter and a monetary
12-23    penalty under Chapter 32, Human Resources Code, for the same act or
12-24    failure to act.
12-25          Sec. 247.0457.  AMELIORATION OF VIOLATION.  (a)  In lieu of
12-26    demanding payment of an administrative penalty assessed under
 13-1    Section 247.0451, the commissioner in accordance with this section
 13-2    may allow the person to use, under the supervision of the
 13-3    department, any portion of the penalty to ameliorate the violation
 13-4    or to improve services, other than administrative services, in the
 13-5    assisted living facility affected by the violation.
 13-6          (b)  The department shall offer amelioration to a person for
 13-7    a charged violation if the department determines that the violation
 13-8    does not constitute immediate jeopardy to the health and safety of
 13-9    a resident of the assisted living facility.
13-10          (c)  The department shall offer amelioration to a person
13-11    under this section not later than the 10th day after the date the
13-12    person receives from the department a final notification of the
13-13    recommended assessment of an administrative penalty that is sent to
13-14    the person after an informal dispute resolution process but before
13-15    an administrative hearing under Section 247.0454.
13-16          (d)  A person to whom amelioration has been offered must file
13-17    a plan for amelioration not later than the 45th day after the date
13-18    the person receives the offer of amelioration from the department.
13-19    In submitting the plan, the person must agree to waive the person's
13-20    right to an administrative hearing under Section 247.0454 if the
13-21    department approves the plan.
13-22          (e)  At a minimum, a plan for amelioration must:
13-23                (1)  propose changes to the management or operation of
13-24    the assisted living facility that will improve services to or
13-25    quality of care of residents of the assisted living facility;
13-26                (2)  identify, through measurable outcomes, the ways in
 14-1    which and the extent to which the proposed changes will improve
 14-2    services to or quality of care of residents of the assisted living
 14-3    facility;
 14-4                (3)  establish clear goals to be achieved through the
 14-5    proposed changes;
 14-6                (4)  establish a time line for implementing the
 14-7    proposed changes; and
 14-8                (5)  identify specific actions necessary to implement
 14-9    the  proposed changes.
14-10          (f)  A plan for amelioration may include proposed changes to:
14-11                (1)  improve staff recruitment and retention;
14-12                (2)  offer or improve dental services for residents;
14-13    and
14-14                (3)  improve the overall quality of life for residents.
14-15          (g)  The department may require that an amelioration plan
14-16    propose changes that would result in conditions that exceed the
14-17    requirements of this chapter or the rules adopted under this
14-18    chapter.
14-19          (h)  The department shall approve or deny an amelioration
14-20    plan not later than the 45th day after the date the department
14-21    receives the plan.  On approval of a person's plan, the department
14-22    shall deny a pending request for a hearing submitted by the person
14-23    under Section 247.0453.
14-24          (i)  The department may not offer amelioration to a person:
14-25                (1)  more than three times in a two-year period; or
14-26                (2)  more than one time in a two-year period for the
 15-1    same or similar violation.
 15-2          SECTION 9.  Subsection (b), Section 247.049, Health and
 15-3    Safety Code, is amended to read as follows:
 15-4          (b)  Subsection (a) does not:
 15-5                (1)  bar the admission into evidence of department
 15-6    reports or other documents in an enforcement action in which the
 15-7    state or an agency or political subdivision of the state is a
 15-8    party, including:
 15-9                      (A)  an action seeking injunctive relief under
15-10    Section 247.044;
15-11                      (B)  an action seeking imposition of a civil
15-12    penalty under Section 247.045; [and]
15-13                      (C)  a contested case hearing involving denial,
15-14    suspension, or revocation of a license issued under this chapter;
15-15    and
15-16                      (D)  an action seeking imposition of an
15-17    administrative penalty under this subchapter;
15-18                (2)  bar the admission into evidence of department
15-19    reports or other documents that are offered:
15-20                      (A)  to establish warning or notice to an
15-21    assisted living facility of a relevant department determination; or
15-22                      (B)  under any rule or evidentiary predicate of
15-23    the Texas Rules of Evidence;
15-24                (3)  prohibit or limit the testimony of a department
15-25    employee, in accordance with the Texas Rules of Evidence, as to
15-26    observations, factual findings, conclusions, or determinations that
 16-1    an assisted living facility violated a standard prescribed under
 16-2    this chapter if the observations, factual findings, conclusions, or
 16-3    determinations were made in the discharge of the employee's
 16-4    official duties for the department; or
 16-5                (4)  prohibit or limit the use of department reports or
 16-6    other documents in depositions or other forms of discovery
 16-7    conducted in connection with a civil action if use of the reports
 16-8    or other documents appears reasonably calculated to lead to the
 16-9    discovery of admissible evidence.
16-10          SECTION 10.  Section 247.051, Health and Safety Code, is
16-11    transferred to Subchapter A, Chapter 247, Health and Safety Code,
16-12    renumbered as Section 247.006, Health and Safety Code, and amended
16-13    to read as follows:
16-14          Sec. 247.006 [247.051].  ADVISORY COMMITTEE.  (a)  The
16-15    Advisory Committee on Assisted Living Facilities consists of nine
16-16    members appointed by the board.  The commissioner of human services
16-17    shall appoint two staff members from the department to serve as
16-18    nonvoting advisory members.  In appointing staff members under this
16-19    subsection, the commissioner shall appoint one member as a
16-20    representative of long-term care policy and one member as a
16-21    representative of long-term care regulation.
16-22          (b)  The board shall appoint the advisory committee to
16-23    provide for a balanced representation of assisted living [personal
16-24    care] providers and consumers and shall appoint one member who has
16-25    expertise in life safety code regulations.  At least one of the
16-26    provider members must be representative of a nonprofit facility,
 17-1    and at least one member must be a family member of a resident of a
 17-2    facility.
 17-3          (c)  The committee shall elect the presiding officer from
 17-4    among its members.
 17-5          (d)  The committee shall advise the department on standards
 17-6    for licensing assisted living facilities and on the implementation
 17-7    of this chapter.
 17-8          SECTION 11.  The subchapter heading to Subchapter D, Chapter
 17-9    247, Health and Safety Code, is repealed.
17-10          SECTION 12.  Subchapter E, Chapter 247, Health and Safety
17-11    Code, is redesignated as Subchapter D, Chapter 247, Health and
17-12    Safety Code, and the subchapter heading is amended to read as
17-13    follows:
17-14                SUBCHAPTER D [E].  MISCELLANEOUS PROVISIONS
17-15          SECTION 13.  Subchapter C, Chapter 247, Health and Safety
17-16    Code, is amended by adding Section 247.051 to read as follows:
17-17          Sec. 247.051.  INFORMAL DISPUTE RESOLUTION.  (a)  The Health
17-18    and Human Services Commission by rule shall establish an informal
17-19    dispute resolution process in accordance with this section.  The
17-20    process must provide for adjudication by an appropriate
17-21    disinterested person of disputes relating to a proposed enforcement
17-22    action or related proceeding under this chapter.  The informal
17-23    dispute resolution process must require:
17-24                (1)  the assisted living facility to request informal
17-25    dispute resolution not later than the 10th day after the date of
17-26    notification by the department of the violation of a standard or
 18-1    standards;
 18-2                (2)  the Health and Human Services Commission to
 18-3    complete the process not later than the 30th day after the date of
 18-4    receipt of a request from the assisted living facility for informal
 18-5    dispute resolution; and
 18-6                (3)  any individual representing an assisted living
 18-7    facility in an informal dispute resolution process to register with
 18-8    the Health and Human Services Commission and disclose the
 18-9    following:
18-10                      (A)  the individual's employment history during
18-11    the preceding five years, including employment in regulatory
18-12    agencies of this state and other states;
18-13                      (B)  ownership, including the identity of the
18-14    controlling person or persons, of the assisted living facility the
18-15    individual is representing before the Health and Human Services
18-16    Commission; and
18-17                      (C)  the identity of other entities the
18-18    individual represents or has represented before the Health and
18-19    Human Services Commission during the preceding 24 months.
18-20          (b)  The Health and Human Services Commission shall adopt
18-21    rules to adjudicate claims in contested cases.
18-22          (c)  The Health and Human Services Commission may not
18-23    delegate its responsibility to administer the informal dispute
18-24    resolution process established by this section to another state
18-25    agency.
18-26          SECTION 14.  Section 247.066, Health and Safety Code, is
 19-1    amended by adding Subsections (c) and (d) to read as follows:
 19-2          (c)  If a department inspector determines that a resident is
 19-3    inappropriately placed at a facility, the facility is not required
 19-4    to move the resident if, not later than the 10th business day after
 19-5    the date that the facility is informed of the specific basis of the
 19-6    inspector's determination, the facility:
 19-7                (1)  obtains a written assessment from a physician that
 19-8    the resident is appropriately placed;
 19-9                (2)  obtains a written statement:
19-10                      (A)  from the resident that the resident wishes
19-11    to remain in the facility; or
19-12                      (B)  from a family member of the resident that
19-13    the family member wishes for the resident to remain in the
19-14    facility, if the resident lacks capacity to give a statement under
19-15    this subsection; and
19-16                (3)  states in writing that the facility wishes for the
19-17    resident to remain in the facility.
19-18          (d)  If a department inspector determines that a resident is
19-19    inappropriately placed at a facility and the facility either agrees
19-20    with the determination or does not obtain the written statements
19-21    prescribed by Subsection (c) that would allow the resident to
19-22    remain in the facility notwithstanding the determination of the
19-23    inspector, the department may not assess an administrative penalty
19-24    against the facility because of the inappropriate placement.
19-25    However, the facility shall discharge the resident.  The resident
19-26    is allowed 30 days after the date of discharge to move from the
 20-1    facility.  A discharge required under this subsection must be made
 20-2    notwithstanding:
 20-3                (1)  any other law, including any law relating to the
 20-4    rights of residents and any obligations imposed under the Property
 20-5    Code; and
 20-6                (2)  the terms of any contract.
 20-7          SECTION 15.  Subchapter (d), Section 247.0271, Health and
 20-8    Safety Code, is repealed.
 20-9          SECTION 16.  The Texas Department of Human Services shall
20-10    adopt rules to implement Section 247.0452, Health and Safety Code,
20-11    as added by this Act, and Section 247.066, Health and Safety Code,
20-12    as amended by this Act, not later than January 1, 2002.
20-13          SECTION 17.  This Act takes effect September 1, 2001.