77R16262 JRD-F                          
         By Moncrief                                            S.B. No. 527
         Substitute the following for S.B. No. 527:
         By Naishtat                                        C.S.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 situation in which an assisted living facility's noncompliance
1-16     with one or more requirements of licensure has caused, or is likely
1-17     to cause, serious injury, harm, impairment, or death to a resident.
1-18           SECTION 3.  The section heading to Section 247.0272, Health
1-19     and Safety Code, is amended to read as follows:
1-20           Sec. 247.0272.  INSPECTOR TRAINING; REQUIRED EXAMINATION.
1-21           SECTION 4.  Section 247.0272, Health and Safety Code, is
1-22     amended by adding Subsections (c) and (d) to read as follows:
1-23           (c)  The department shall examine department employees who
1-24     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
2-27     as a license holder is preserved until final disposition of the
 3-1     contested matter, except as the court having jurisdiction of a
 3-2     judicial review of the matter may order in the public interest for
 3-3     the welfare and safety of the residents.
 3-4           (d)  A court having jurisdiction of a judicial review of the
 3-5     matter may not order arbitration, whether on motion of any party or
 3-6     on the court's own motion, to resolve a dispute involving the
 3-7     denial, suspension, or revocation of a license under this section
 3-8     or the conduct with respect to which the denial, suspension, or
 3-9     revocation of the license is sought.
3-10           SECTION 6.  Section 247.042, Health and Safety Code, is
3-11     amended by amending Subsection (a) and adding Subsection (e) to
3-12     read as follows:
3-13           (a)  If the department finds an assisted living facility
3-14     operating in violation of the standards prescribed by [under] this
3-15     chapter and the violations create an immediate threat to the health
3-16     and safety of a resident in the facility, the department may
3-17     [shall] suspend the license or order immediate closing of all or
3-18     part of the facility.
3-19           (e)  The department and the State Office of Administrative
3-20     Hearings shall expedite any hearing or decision involving an
3-21     emergency suspension or closing order issued under this section.
3-22           SECTION 7.  Section 247.0455, Health and Safety Code, is
3-23     redesignated as Section 247.0459, Health and Safety Code, and
3-24     amended to read as follows:
3-25           Sec. 247.0459 [247.0455].  VIOLATION OF LAW RELATING TO
3-26     ADVANCE DIRECTIVES.  (a)  The department shall assess an
3-27     administrative penalty against an assisted living [a personal care]
 4-1     facility that violates Section 166.004.
 4-2           (b)  A penalty assessed under this section shall be $500.
 4-3           (c)  The penalty shall be assessed in accordance with
 4-4     department rules.  The rules must provide for notice and an
 4-5     opportunity for a hearing.
 4-6           SECTION 8.  Subchapter C, Chapter 247, Health and Safety
 4-7     Code, is amended by adding Sections 247.0451 through 247.0457 to
 4-8     read as follows:
 4-9           Sec. 247.0451.  ADMINISTRATIVE PENALTY.  (a)  The department
4-10     may assess an administrative penalty against a person who:
4-11                 (1)  violates this chapter or a rule, standard, or
4-12     order adopted under this chapter or a term of a license issued
4-13     under this chapter;
4-14                 (2)  makes a false statement, that the person knows or
4-15     should know is false, of a material fact:
4-16                       (A)  on an application for issuance or renewal of
4-17     a license or in an attachment to the application; or
4-18                       (B)  with respect to a matter under investigation
4-19     by the department;
4-20                 (3)  refuses to allow a representative of the
4-21     department to inspect:
4-22                       (A)  a book, record, or file required to be
4-23     maintained by an assisted living facility; or
4-24                       (B)  any portion of the premises of an assisted
4-25     living facility;
4-26                 (4)  wilfully interferes with the work of a
4-27     representative of the department or the enforcement of this
 5-1     chapter;
 5-2                 (5)  wilfully interferes with a representative of the
 5-3     department preserving evidence of a violation of this chapter or a
 5-4     rule, standard, or order adopted under this chapter or a term of a
 5-5     license issued under this chapter; or
 5-6                 (6)  fails to pay a penalty assessed under this chapter
 5-7     not later than the 30th day after the date the assessment of the
 5-8     penalty becomes final.
 5-9           (b)  Except as provided by Section 247.0452(c), the penalty
5-10     may not exceed $1,000 for each violation.
5-11           (c)  The board shall establish gradations of penalties in
5-12     accordance with the relative seriousness of the violation.
5-13           (d)  In determining the amount of a penalty, the department
5-14     shall consider any matter that justice may require, but must
5-15     consider each of the following and make a record of the extent to
5-16     which each of the following was considered:
5-17                 (1)  the gradations of penalties established under
5-18     Subsection (c);
5-19                 (2)  the seriousness of the violation, including the
5-20     nature, circumstances, extent, and gravity of the prohibited act
5-21     and the hazard or potential hazard created by the act to the health
5-22     or safety of the public;
5-23                 (3)  the history of previous violations;
5-24                 (4)  deterrence of future violations;
5-25                 (5)  efforts to correct the violation; and
5-26                 (6)  the size of the facility and of the business
5-27     entity that owns the facility.
 6-1           (e)  A penalty assessed under Subsection (a)(6) is in
 6-2     addition to the penalty previously assessed and not timely paid.
 6-3           Sec. 247.0452.  RIGHT TO CORRECT.  (a)  The department may
 6-4     not collect an administrative penalty from an assisted living
 6-5     facility under Section 247.0451 if, not later than the 45th day
 6-6     after the date the facility receives notice under Section
 6-7     247.0453(c), the facility corrects the violation.
 6-8           (b)  Subsection (a)  does not apply:
 6-9                 (1)  to a violation that the department determines
6-10     results in serious harm to or death of a resident;
6-11                 (2)  to a violation described by Sections
6-12     247.0451(a)(2)-(6);
6-13                 (3)  to a second or subsequent violation of:
6-14                       (A)  a right of the same resident under Section
6-15     247.064; or
6-16                       (B)  the same right of all residents under
6-17     Section 247.064; or
6-18                 (4)  to a violation described by Section 247.066, which
6-19     contains its own right to correct provisions.
6-20           (c)  An assisted living facility that corrects a violation
6-21     must maintain the correction.  If the facility  fails to maintain
6-22     the correction until at least the first anniversary of the date the
6-23     correction was made, the department may assess and collect an
6-24     administrative penalty for the subsequent violation.  An
6-25     administrative penalty assessed under this subsection is equal to
6-26     three times the amount of the original penalty assessed but not
6-27     collected.  The department is not required to provide the facility
 7-1     with an opportunity under this section to correct the subsequent
 7-2     violation.
 7-3           Sec. 247.0453.  REPORT RECOMMENDING ADMINISTRATIVE PENALTY.
 7-4     (a)  The department shall issue a preliminary report stating the
 7-5     facts on which the department concludes that a violation of this
 7-6     chapter or a rule, standard, or order adopted under this chapter or
 7-7     a term of a license issued under this chapter has occurred if the
 7-8     department has:
 7-9                 (1)  examined the possible violation and facts
7-10     surrounding the possible violation; and
7-11                 (2)  concluded that a violation has occurred.
7-12           (b)  The report may recommend a penalty under Section
7-13     247.0451 and the amount of the penalty.
7-14           (c)  The department shall give written notice of the report
7-15     to the person charged with the violation not later than the 10th
7-16     day after the date on which the report is issued.  The notice must
7-17     include:
7-18                 (1)  a brief summary of the charges;
7-19                 (2)  a statement of the amount of penalty recommended;
7-20                 (3)  a statement of whether the violation is subject to
7-21     correction under Section 247.0452 and, if the violation is subject
7-22     to correction under that section, a statement of:
7-23                       (A)  the date on which the assisted living
7-24     facility must file with the department a plan of correction to be
7-25     approved by the department; and
7-26                       (B)  the date on which the plan of correction
7-27     must be completed to avoid assessment of the penalty; and
 8-1                 (4)  a statement that the person charged has a right to
 8-2     a hearing on the occurrence of the violation, the amount of the
 8-3     penalty, or both.
 8-4           (d)  Not later than the 20th day after the date on which the
 8-5     notice under Subsection (c) is received, the person charged may:
 8-6                 (1)  give to the department written consent to the
 8-7     department's report, including the recommended penalty; or
 8-8                 (2)  make a written request for a hearing.
 8-9           (e)  If the violation is subject to correction under Section
8-10     247.0452, the assisted living facility shall submit a plan of
8-11     correction to the department for approval not later than the 10th
8-12     day after the date on which the notice under Subsection (c) is
8-13     received.
8-14           (f)  If the violation is subject to correction under Section
8-15     247.0452, and the person reports to the department that the
8-16     violation has been corrected, the department shall inspect the
8-17     correction or take any other step necessary to confirm the
8-18     correction and shall notify the person that:
8-19                 (1)  the correction is satisfactory and a penalty will
8-20     not be assessed; or
8-21                 (2)  the correction is not satisfactory and a penalty
8-22     is recommended.
8-23           (g)  Not later than the 20th day after the date on which a
8-24     notice under Subsection (f)(2) is received, the person charged may:
8-25                 (1)  give to the department written consent to the
8-26     department's report, including the recommended penalty; or
8-27                 (2)  make a written request for a hearing.
 9-1           (h)  If the person charged with the violation consents to the
 9-2     penalty recommended by the department or does not timely respond to
 9-3     a notice sent under Subsection (c) or (f)(2), the commissioner or
 9-4     the commissioner's designee shall assess the penalty recommended by
 9-5     the department.
 9-6           (i)  If the commissioner or the commissioner's designee
 9-7     assesses the recommended penalty, the department shall give written
 9-8     notice to the person charged of the decision and the person shall
 9-9     pay the penalty.
9-10           Sec. 247.0454.  HEARING ON ADMINISTRATIVE PENALTY.  (a)  An
9-11     administrative law judge shall order a hearing and give notice of
9-12     the hearing if a person charged with a violation under Section
9-13     247.0451 timely requests a hearing.
9-14           (b)  The hearing shall be held before an administrative law
9-15     judge.
9-16           (c)  The administrative law judge shall make findings of fact
9-17     and conclusions of law and promptly issue to the commissioner or
9-18     the commissioner's designee a written decision regarding the
9-19     occurrence of a violation of this chapter or a rule, standard, or
9-20     order adopted under this chapter or a term of a license issued
9-21     under this chapter and a recommendation regarding the amount of the
9-22     proposed penalty if a penalty is warranted.
9-23           (d)  Based on the findings of fact and conclusions of law and
9-24     the recommendation of the administrative law judge, the
9-25     commissioner or the commissioner's designee by order may:
9-26                 (1)  find that a violation has occurred and assess an
9-27     administrative penalty; or
 10-1                (2)  find that a violation has not occurred.
 10-2          (e)  If the commissioner or the commissioner's designee finds
 10-3    that a violation has not occurred, the commissioner or the
 10-4    commissioner's designee shall order that all records reflecting
 10-5    that the department found a violation had occurred and attempted to
 10-6    impose an administrative penalty shall be expunged except:
 10-7                (1)  records obtained by the department during its
 10-8    investigation; and
 10-9                (2)  the administrative law judge's findings of fact.
10-10          (f)  Proceedings under this section are subject to Chapter
10-11    2001, Government Code.
10-12          Sec. 247.0455.  NOTICE AND PAYMENT OF ADMINISTRATIVE PENALTY;
10-13    INTEREST; REFUND.  (a)  The commissioner or the commissioner's
10-14    designee shall give notice of the findings made under Section
10-15    247.0454(d) to the person charged.  If the commissioner or the
10-16    commissioner's designee finds that a violation has occurred, the
10-17    commissioner or the commissioner's designee shall give to the
10-18    person charged written notice of:
10-19                (1)  the findings;
10-20                (2)  the amount of the administrative penalty;
10-21                (3)  the rate of interest payable with respect to the
10-22    penalty and the date on which interest begins to accrue;
10-23                (4)  whether action under Section 247.0457 is required
10-24    in lieu of payment of all or part of the penalty; and
10-25                (5)  the person's right to judicial review of the order
10-26    of the commissioner or the commissioner's designee.
10-27          (b)  Not later than the 30th day after the date on which the
 11-1    order of the commissioner or the commissioner's designee is final,
 11-2    the person charged with the penalty shall:
 11-3                (1)  pay the full amount of the penalty; or
 11-4                (2)  file a petition for judicial review contesting the
 11-5    occurrence of the violation, the amount of the penalty, the
 11-6    department's dissatisfaction with efforts to correct the violation,
 11-7    or any combination of these issues.
 11-8          (c)  Notwithstanding Subsection (b), the department may
 11-9    permit the person to pay a penalty in installments or may require
11-10    the person to use all or part of the amount of the penalty in
11-11    accordance with Section 247.0457.
11-12          (d)  If the person does not pay the penalty within the period
11-13    provided by Subsection (b) or in accordance with Subsection (c), if
11-14    applicable:
11-15                (1)  the penalty is subject to interest; and
11-16                (2)  the department may refer the matter to the
11-17    attorney general for collection of the penalty and interest.
11-18          (e)  Interest under Subsection (d)(1) accrues:
11-19                (1)  at a rate equal to the rate charged on loans to
11-20    depository institutions by the New York Federal Reserve Bank; and
11-21                (2)  for the period beginning on the day after the date
11-22    on which the penalty becomes due and ending on the date the penalty
11-23    is paid.
11-24          (f)  If the amount of the penalty is reduced or the
11-25    assessment of a penalty is not upheld on judicial review, the
11-26    commissioner shall:
11-27                (1)  remit to the person charged the appropriate amount
 12-1    of any penalty payment plus accrued interest; or
 12-2                (2)  execute a release of the supersedeas bond if one
 12-3    has been posted.
 12-4          (g)  Accrued interest on amounts remitted by the commissioner
 12-5    under Subsection (f)(1) shall be paid:
 12-6                (1)  at a rate equal to the rate charged on loans to
 12-7    depository institutions by the New York Federal Reserve Bank; and
 12-8                (2)  for the period beginning on the date the penalty
 12-9    is paid and ending on the date the penalty is remitted to the
12-10    person charged.
12-11          Sec. 247.0456.  APPLICATION OF OTHER LAW.  The department may
12-12    not assess a monetary penalty under this chapter and a monetary
12-13    penalty under Chapter 32, Human Resources Code, for the same act or
12-14    failure to act.
12-15          Sec. 247.0457.  AMELIORATION OF VIOLATION.  (a)  In lieu of
12-16    demanding payment of an administrative penalty assessed under
12-17    Section 247.0451, the commissioner in accordance with this section
12-18    may allow the person to use, under the supervision of the
12-19    department, any portion of the penalty to ameliorate the violation
12-20    or to improve services, other than administrative services, in the
12-21    assisted living facility affected by the violation.
12-22          (b)  The department shall offer amelioration to a person for
12-23    a charged violation if the department determines that the violation
12-24    does not constitute immediate jeopardy to the health and safety of
12-25    a resident of the assisted living facility.
12-26          (c)  The department shall offer amelioration to a person
12-27    under this section not later than the 10th day after the date the
 13-1    person receives from the department a final notification of the
 13-2    recommended assessment of an administrative penalty that is sent to
 13-3    the person after an informal dispute resolution process but before
 13-4    an administrative hearing under Section 247.0454.
 13-5          (d)  A person to whom amelioration has been offered must file
 13-6    a plan for amelioration not later than the 45th day after the date
 13-7    the person receives the offer of amelioration from the department.
 13-8    In submitting the plan, the person must agree to waive the person's
 13-9    right to an administrative hearing under Section 247.0454 if the
13-10    department approves the plan.
13-11          (e)  At a minimum, a plan for amelioration must:
13-12                (1)  propose changes to the management or operation of
13-13    the assisted living facility that will improve services to or
13-14    quality of care of residents of the assisted living facility;
13-15                (2)  identify, through measurable outcomes, the ways in
13-16    which and the extent to which the proposed changes will improve
13-17    services to or quality of care of residents of the assisted living
13-18    facility;
13-19                (3)  establish clear goals to be achieved through the
13-20    proposed changes;
13-21                (4)  establish a time line for implementing the
13-22    proposed changes; and
13-23                (5)  identify specific actions necessary to implement
13-24    the  proposed changes.
13-25          (f)  A plan for amelioration may include proposed changes to:
13-26                (1)  improve staff recruitment and retention;
13-27                (2)  offer or improve dental services for residents;
 14-1    and
 14-2                (3)  improve the overall quality of life for residents.
 14-3          (g)  The department may require that an amelioration plan
 14-4    propose changes that would result in conditions that exceed the
 14-5    requirements of this chapter or the rules adopted under this
 14-6    chapter.
 14-7          (h)  The department shall approve or deny an amelioration
 14-8    plan not later than the 45th day after the date the department
 14-9    receives the plan.  On approval of a person's plan, the department
14-10    shall deny a pending request for a hearing submitted by the person
14-11    under Section 247.0453.
14-12          (i)  The department may not offer amelioration to a person:
14-13                (1)  more than three times in a two-year period; or
14-14                (2)  more than one time in a two-year period for the
14-15    same or similar violation.
14-16          SECTION 9.  Subsection (b), Section 247.049, Health and
14-17    Safety Code, is amended to read as follows:
14-18          (b)  Subsection (a) does not:
14-19                (1)  bar the admission into evidence of department
14-20    reports or other documents in an enforcement action in which the
14-21    state or an agency or political subdivision of the state is a
14-22    party, including:
14-23                      (A)  an action seeking injunctive relief under
14-24    Section 247.044;
14-25                      (B)  an action seeking imposition of a civil
14-26    penalty under Section 247.045; [and]
14-27                      (C)  a contested case hearing involving denial,
 15-1    suspension, or revocation of a license issued under this chapter;
 15-2    and
 15-3                      (D)  an action seeking imposition of an
 15-4    administrative penalty under this subchapter;
 15-5                (2)  bar the admission into evidence of department
 15-6    reports or other documents that are offered:
 15-7                      (A)  to establish warning or notice to an
 15-8    assisted living facility of a relevant department determination; or
 15-9                      (B)  under any rule or evidentiary predicate of
15-10    the Texas Rules of Evidence;
15-11                (3)  prohibit or limit the testimony of a department
15-12    employee, in accordance with the Texas Rules of Evidence, as to
15-13    observations, factual findings, conclusions, or determinations that
15-14    an assisted living facility violated a standard prescribed under
15-15    this chapter if the observations, factual findings, conclusions, or
15-16    determinations were made in the discharge of the employee's
15-17    official duties for the department; or
15-18                (4)  prohibit or limit the use of department reports or
15-19    other documents in depositions or other forms of discovery
15-20    conducted in connection with a civil action if use of the reports
15-21    or other documents appears reasonably calculated to lead to the
15-22    discovery of admissible evidence.
15-23          SECTION 10.  Section 247.051, Health and Safety Code, is
15-24    transferred to Subchapter A, Chapter 247, Health and Safety Code,
15-25    renumbered as Section 247.006, Health and Safety Code, and amended
15-26    to read as follows:
15-27          Sec. 247.006 [247.051].  ADVISORY COMMITTEE.  (a)  The
 16-1    Advisory Committee on Assisted Living Facilities consists of nine
 16-2    members appointed by the board.  The commissioner of human services
 16-3    shall appoint two staff members from the department to serve as
 16-4    nonvoting advisory members.  In appointing staff members under this
 16-5    subsection, the commissioner shall appoint one member as a
 16-6    representative of long-term care policy and one member as a
 16-7    representative of long-term care regulation.
 16-8          (b)  The board shall appoint the advisory committee to
 16-9    provide for a balanced representation of assisted living [personal
16-10    care] providers and consumers and shall appoint one member who has
16-11    expertise in life safety code regulations.  At least one of the
16-12    provider members must be representative of a nonprofit facility,
16-13    and at least one member must be a family member of a resident of a
16-14    facility.
16-15          (c)  The committee shall elect the presiding officer from
16-16    among its members.
16-17          (d)  The committee shall advise the department on standards
16-18    for licensing assisted living facilities and on the implementation
16-19    of this chapter.
16-20          SECTION 11.  The subchapter heading to Subchapter D, Chapter
16-21    247, Health and Safety Code, is repealed.
16-22          SECTION 12.  Subchapter E, Chapter 247, Health and Safety
16-23    Code, is redesignated as Subchapter D, Chapter 247, Health and
16-24    Safety Code, and the subchapter heading is amended to read as
16-25    follows:
16-26                SUBCHAPTER D [E].  MISCELLANEOUS PROVISIONS
16-27          SECTION 13.  Subchapter C, Chapter 247, Health and Safety
 17-1    Code, is amended by adding Section 247.051 to read as follows:
 17-2          Sec. 247.051.  INFORMAL DISPUTE RESOLUTION.  (a)  The Health
 17-3    and Human Services Commission by rule shall establish an informal
 17-4    dispute resolution process in accordance with this section.  The
 17-5    process must provide for adjudication by an appropriate
 17-6    disinterested person of disputes relating to a proposed enforcement
 17-7    action or related proceeding under this chapter.  The informal
 17-8    dispute resolution process must require:
 17-9                (1)  the assisted living facility to request informal
17-10    dispute resolution not later than the 10th day after the date of
17-11    notification by the department of the violation of a standard or
17-12    standards;
17-13                (2)  the Health and Human Services Commission to
17-14    complete the process not later than the 30th day after the date of
17-15    receipt of a request from the assisted living facility for informal
17-16    dispute resolution; and
17-17                (3)  any individual representing an assisted living
17-18    facility in an informal dispute resolution process to register with
17-19    the Health and Human Services Commission and disclose the
17-20    following:
17-21                      (A)  the individual's employment history during
17-22    the preceding five years, including employment in regulatory
17-23    agencies of this state and other states;
17-24                      (B)  ownership, including the identity of the
17-25    controlling person or persons, of the assisted living facility the
17-26    individual is representing before the Health and Human Services
17-27    Commission; and
 18-1                      (C)  the identity of other entities the
 18-2    individual represents or has represented before the Health and
 18-3    Human Services Commission during the preceding 24 months.
 18-4          (b)  The Health and Human Services Commission shall adopt
 18-5    rules to adjudicate claims in contested cases.
 18-6          (c)  The Health and Human Services Commission may not
 18-7    delegate its responsibility to administer the informal dispute
 18-8    resolution process established by this section to another state
 18-9    agency.
18-10          SECTION 14.  Section 247.066, Health and Safety Code, is
18-11    amended by adding Subsections (c), (d), and (e) to read as follows:
18-12          (c)  If a department inspector determines that a resident is
18-13    inappropriately placed at a facility, the facility is not required
18-14    to move the resident if, not later than the 10th business day after
18-15    the date that the facility is informed of the specific basis of the
18-16    inspector's determination, the facility:
18-17                (1)  obtains a written assessment from a physician that
18-18    the resident is appropriately placed;
18-19                (2)  obtains a written statement:
18-20                      (A)  from the resident that the resident wishes
18-21    to remain in the facility; or
18-22                      (B)  from a family member of the resident that
18-23    the family member wishes for the resident to remain in the
18-24    facility, if the resident lacks capacity to give a statement under
18-25    this subsection;
18-26                (3)  states in writing that the facility wishes for the
18-27    resident to remain in the facility; and
 19-1                (4)  applies for and obtains a waiver from the
 19-2    department of all applicable requirements for evacuation that the
 19-3    facility does not meet with respect to the resident, if the
 19-4    facility does not meet all requirements for the evacuation of
 19-5    residents with respect to the resident.
 19-6          (d)  If a department inspector determines that a resident is
 19-7    inappropriately placed at a facility and the facility either agrees
 19-8    with the determination or does not obtain the written statements
 19-9    prescribed by Subsection (c) that would allow the resident to
19-10    remain in the facility notwithstanding the determination of the
19-11    inspector, the department may not assess an administrative penalty
19-12    against the facility because of the inappropriate placement.
19-13    However, the facility shall discharge the resident.  The resident
19-14    is allowed 30 days after the date of discharge to move from the
19-15    facility.  A discharge required under this subsection must be made
19-16    notwithstanding:
19-17                (1)  any other law, including any law relating to the
19-18    rights of residents and any obligations imposed under the Property
19-19    Code; and
19-20                (2)  the terms of any contract.
19-21          (e)  To facilitate obtaining the written statements required
19-22    under Subsections (c)(1)-(3), the department shall develop standard
19-23    forms that must be used under Subsections (c)(1)-(3).  The
19-24    department shall develop criteria under which the department will
19-25    determine, based on a resident's specific situation, whether it
19-26    will grant or deny a request for a waiver under Subsection (c)(4).
19-27          SECTION 15.  Subchapter D, Chapter 242, Health and Safety
 20-1    Code, is amended by adding Sections 242.0965 and 242.0975 to read
 20-2    as follows:
 20-3          Sec. 242.0965.  ASSISTED LIVING FACILITY TRUST FUND AND
 20-4    EMERGENCY ASSISTANCE FUNDS. (a)  The assisted living facility trust
 20-5    fund is a trust fund with the comptroller and shall be made
 20-6    available to the department for expenditures without legislative
 20-7    appropriation to make emergency assistance funds available to an
 20-8    assisted living facility.
 20-9          (b)  A trustee of an assisted living facility may use the
20-10    emergency assistance funds only to alleviate an immediate threat to
20-11    the health or safety of the residents.  The use may include
20-12    payments for:
20-13                (1)  food;
20-14                (2)  medication;
20-15                (3)  sanitation services;
20-16                (4)  minor repairs;
20-17                (5)  supplies necessary for personal hygiene; or
20-18                (6)  services necessary for the personal care, health,
20-19    and safety of the residents.
20-20          (c)  A court may order the department to disburse emergency
20-21    assistance funds to an assisted living facility if the court finds
20-22    that:
20-23                (1)  the assisted living facility has inadequate funds
20-24    accessible to the trustee for the operation of the assisted living
20-25    facility;
20-26                (2)  an emergency exists that presents an immediate
20-27    threat to the health and safety of the residents; and
 21-1                (3)  it is in the best interests of the health and
 21-2    safety of the residents that funds are immediately available.
 21-3          (d)  The department shall disburse money from the assisted
 21-4    living facility trust fund as ordered by the court in accordance
 21-5    with board rules.
 21-6          (e)  Any unencumbered amount in the assisted living facility
 21-7    trust fund in excess of $500,000 at the end of each fiscal year
 21-8    shall be transferred to the credit of the general revenue fund and
 21-9    may be appropriated only to the department for its use in
21-10    administering and enforcing Chapter 247.
21-11          Sec. 242.0975.  ADDITIONAL LICENSE FEE--ASSISTED LIVING
21-12    FACILITIES. (a)  In addition to the license fee provided by Section
21-13    247.024, the department shall adopt an annual fee to be charged and
21-14    collected if the amount of the assisted living facility trust fund
21-15    is less than $500,000.  The fee shall be deposited to the credit of
21-16    the assisted living facility trust fund created by this subchapter.
21-17          (b)  The department may charge and collect a fee under this
21-18    section more than once each year only if necessary to ensure that
21-19    the amount in the assisted living facility trust fund is sufficient
21-20    to make the disbursements required under Section 242.0965.  If the
21-21    department makes a second or subsequent assessment under this
21-22    subsection in any year, the department shall notify the governor
21-23    and the Legislative Budget Board.
21-24          (c)  The department shall set the fee on the basis of the
21-25    number of beds in assisted living facilities required to pay the
21-26    fee and in an amount necessary to provide not more than $500,000 in
21-27    the fund.
 22-1          SECTION 16.  The section heading of Section 242.097, Health
 22-2    and Safety Code, is amended to read as follows:
 22-3          Sec. 242.097.  ADDITIONAL LICENSE FEE--NURSING AND
 22-4    CONVALESCENT HOMES.
 22-5          SECTION 17.  Subsection (d), Section 247.0271, Health and
 22-6    Safety Code, is repealed.
 22-7          SECTION 18.  The Texas Department of Human Services shall
 22-8    adopt rules to implement Section 247.0452, Health and Safety Code,
 22-9    as added by this Act, and Section 247.066, Health and Safety Code,
22-10    as amended by this Act, not later than January 1, 2002.
22-11          SECTION 19.  This Act takes effect September 1, 2001.