1-1     By:  Moncrief                                          S.B. No. 527
 1-2           (In the Senate - Filed February 2, 2001; February 5, 2001,
 1-3     read first time and referred to Committee on Health and Human
 1-4     Services; April 30, 2001, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 6, Nays 0;
 1-6     April 30, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 527                 By:  Moncrief
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to taking regulatory action against assisted living
1-11     facilities, including the imposition of administrative penalties.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Section 247.002, Health and Safety Code, is
1-14     amended by adding Subdivision (7) to read as follows:
1-15                 (7)  "Commissioner" means the commissioner of human
1-16     services.
1-17           SECTION 2.  Subchapter A, Chapter 247, Health and Safety
1-18     Code, is amended by adding Section 247.0025 to read as follows:
1-19           Sec. 247.0025.  IMMEDIATE THREAT OF HARM.  For purposes of
1-20     this chapter, there is considered to be an immediate threat to the
1-21     health or safety of a resident, or a situation is considered to put
1-22     the health or safety of a resident in immediate jeopardy, if there
1-23     is a high probability that serious harm or injury to the resident
1-24     could occur at any time or has already occurred and may occur again
1-25     if the resident is not protected from the harm or if the threat is
1-26     not removed.
1-27           SECTION 3.  The section heading to Section 247.0272, Health
1-28     and Safety Code, is amended to read as follows:
1-29           Sec. 247.0272.  INSPECTOR TRAINING; REQUIRED EXAMINATION.
1-30           SECTION 4.  Section 247.0272, Health and Safety Code, is
1-31     amended by adding Subsections (c) and (d) to read as follows:
1-32           (c)  The department shall examine department employees who
1-33     inspect or otherwise survey assisted living facilities under this
1-34     chapter.  In developing the examination, the department shall
1-35     consult with operators of assisted living facilities or their
1-36     representatives and with consumers of personal care services
1-37     provided by assisted living facilities or representatives of
1-38     consumers.
1-39           (d)  A department employee may not independently inspect,
1-40     survey, or take administrative action against an assisted living
1-41     facility unless the employee has passed the examination
1-42     administered under Subsection (c).
1-43           SECTION 5.  Section 247.041, Health and Safety Code, is
1-44     amended to read as follows:
1-45           Sec. 247.041.  DENIAL, SUSPENSION, OR REVOCATION OF LICENSE.
1-46     (a)  The department, after providing notice and opportunity for a
1-47     hearing to the applicant or license holder, may deny, suspend, or
1-48     revoke a license if the department finds that the applicant,
1-49     license holder, or a controlling person has:
1-50                 (1)  violated [for a violation of] this chapter or a
1-51     rule, standard, or order adopted or license issued under this
1-52     chapter in either a repeated or substantial manner; or
1-53                 (2)  committed any act described by Sections
1-54     247.0451(a)(2)-(6).
1-55           (b)  The denial, suspension, or revocation of a license by
1-56     the department and the appeal from that action are governed by the
1-57     procedures for a contested case hearing under Chapter 2001,
1-58     Government Code.
1-59           (c)  The status of a person as an applicant for a license or
1-60     as a license holder is preserved until final disposition of the
1-61     contested matter, except as the court having jurisdiction of a
1-62     judicial review of the matter may order in the public interest for
1-63     the welfare and safety of the residents.
1-64           (d)  A court having jurisdiction of a judicial review of the
 2-1     matter may not order arbitration, whether on motion of any party or
 2-2     on the court's own motion, to resolve a dispute involving the
 2-3     denial, suspension, or revocation of a license under this section
 2-4     or the conduct with respect to which the denial, suspension, or
 2-5     revocation of the license is sought.
 2-6           SECTION 6.  Section 247.042, Health and Safety Code, is
 2-7     amended by amending Subsection (a) and adding Subsection (e) to
 2-8     read as follows:
 2-9           (a)  If the department finds an assisted living facility
2-10     operating in violation of the standards prescribed by [under] this
2-11     chapter and the violations create an immediate threat to the health
2-12     and safety of a resident in the facility, the department shall
2-13     suspend the license or order immediate closing of [all or] part of
2-14     the facility.
2-15           (e)  The department and the State Office of Administrative
2-16     Hearings shall expedite any hearing or decision involving an
2-17     emergency suspension or closing order issued under this section.
2-18           SECTION 7.  Section 247.0455, Health and Safety Code, is
2-19     redesignated as Section 247.0459, Health and Safety Code, and
2-20     amended to read as follows:
2-21           Sec. 247.0459 [247.0455].  VIOLATION OF LAW RELATING TO
2-22     ADVANCE DIRECTIVES.  (a)  The department shall assess an
2-23     administrative penalty against an assisted living [a personal care]
2-24     facility that violates Section 166.004.
2-25           (b)  A penalty assessed under this section shall be $500.
2-26           (c)  The penalty shall be assessed in accordance with
2-27     department rules.  The rules must provide for notice and an
2-28     opportunity for a hearing.
2-29           SECTION 8.  Subchapter C, Chapter 247, Health and Safety
2-30     Code, is amended by adding Sections 247.0451 through 247.0457 to
2-31     read as follows:
2-32           Sec. 247.0451.  ADMINISTRATIVE PENALTY.  (a)  The department
2-33     may assess an administrative penalty against a person who:
2-34                 (1)  violates this chapter or a rule, standard, or
2-35     order adopted under this chapter or a term of a license issued
2-36     under this chapter;
2-37                 (2)  makes a false statement, that the person knows or
2-38     should know is false, of a material fact:
2-39                       (A)  on an application for issuance or renewal of
2-40     a license or in an attachment to the application; or
2-41                       (B)  with respect to a matter under investigation
2-42     by the department;
2-43                 (3)  refuses to allow a representative of the
2-44     department to inspect:
2-45                       (A)  a book, record, or file required to be
2-46     maintained by an assisted living facility; or
2-47                       (B)  any portion of the premises of an assisted
2-48     living facility;
2-49                 (4)  wilfully interferes with the work of a
2-50     representative of the department or the enforcement of this
2-51     chapter;
2-52                 (5)  wilfully interferes with a representative of the
2-53     department preserving evidence of a violation of this chapter or a
2-54     rule, standard, or order adopted under this chapter or a term of a
2-55     license issued under this chapter; or
2-56                 (6)  fails to pay a penalty assessed under this chapter
2-57     not later than the 30th day after the date the assessment of the
2-58     penalty becomes final.
2-59           (b)  Except as provided by Section 247.0452(c), the penalty
2-60     may not exceed $500 for each violation.
2-61           (c)  The board shall establish gradations of penalties in
2-62     accordance with the relative seriousness of the violation.
2-63           (d)  In determining the amount of a penalty, the department
2-64     shall consider any matter that justice may require, but must
2-65     consider each of the following and make a record of the extent to
2-66     which each of the following was considered:
2-67                 (1)  the gradations of penalties established under
2-68     Subsection (c);
2-69                 (2)  the seriousness of the violation, including the
 3-1     nature, circumstances, extent, and gravity of the prohibited act
 3-2     and the hazard or potential hazard created by the act to the health
 3-3     or safety of the public;
 3-4                 (3)  the history of previous violations;
 3-5                 (4)  deterrence of future violations;
 3-6                 (5)  efforts to correct the violation; and
 3-7                 (6)  the size of the facility and of the business
 3-8     entity that owns the facility.
 3-9           (e)  A penalty assessed under Subsection (a)(6) is in
3-10     addition to the penalty previously assessed and not timely paid.
3-11           Sec. 247.0452.  RIGHT TO CORRECT.  (a)  The department may
3-12     not collect an administrative penalty from an assisted living
3-13     facility under Section 247.0451 if, not later than the 45th day
3-14     after the date the facility receives notice under Section
3-15     247.0453(c), the facility corrects the violation.
3-16           (b)  Subsection (a)  does not apply:
3-17                 (1)  to a violation that the department determines
3-18     results in serious harm to or death of a resident;
3-19                 (2)  to a violation described by Sections
3-20     247.0451(a)(2)-(6);
3-21                 (3)  to a second or subsequent violation of:
3-22                       (A)  a right of the same resident under Section
3-23     247.064; or
3-24                       (B)  the same right of all residents under
3-25     Section 247.064; or
3-26                 (4)  to a violation described by Section 247.066, which
3-27     contains its own right to correct provisions.
3-28           (c)  An assisted living facility that corrects a violation
3-29     must maintain the correction.  If the facility  fails to maintain
3-30     the correction until at least the first anniversary of the date the
3-31     correction was made, the department may assess and collect an
3-32     administrative penalty for the subsequent violation.  An
3-33     administrative penalty assessed under this subsection is equal to
3-34     three times the amount of the original penalty assessed but not
3-35     collected.  The department is not required to provide the facility
3-36     with an opportunity under this section to correct the subsequent
3-37     violation.
3-38           Sec. 247.0453.  REPORT RECOMMENDING ADMINISTRATIVE PENALTY.
3-39     (a)  The department shall issue a preliminary report stating the
3-40     facts on which the department concludes that a violation of this
3-41     chapter or a rule, standard, or order adopted under this chapter or
3-42     a term of a license issued under this chapter has occurred if the
3-43     department has:
3-44                 (1)  examined the possible violation and facts
3-45     surrounding the possible violation; and
3-46                 (2)  concluded that a violation has occurred.
3-47           (b)  The report may recommend a penalty under Section
3-48     247.0451 and the amount of the penalty.
3-49           (c)  The department shall give written notice of the report
3-50     to the person charged with the violation not later than the 10th
3-51     day after the date on which the report is issued.  The notice must
3-52     include:
3-53                 (1)  a brief summary of the charges;
3-54                 (2)  a statement of the amount of penalty recommended;
3-55                 (3)  a statement of whether the violation is subject to
3-56     correction under Section 247.0452 and, if the violation is subject
3-57     to correction under that section, a statement of:
3-58                       (A)  the date on which the assisted living
3-59     facility must file with the department a plan of correction to be
3-60     approved by the department; and
3-61                       (B)  the date on which the plan of correction
3-62     must be completed to avoid assessment of the penalty; and
3-63                 (4)  a statement that the person charged has a right to
3-64     a hearing on the occurrence of the violation, the amount of the
3-65     penalty, or both.
3-66           (d)  Not later than the 20th day after the date on which the
3-67     notice under Subsection (c) is received, the person charged may:
3-68                 (1)  give to the department written consent to the
3-69     department's report, including the recommended penalty; or
 4-1                 (2)  make a written request for a hearing.
 4-2           (e)  If the violation is subject to correction under Section
 4-3     247.0452, the assisted living facility shall submit a plan of
 4-4     correction to the department for approval not later than the 10th
 4-5     day after the date on which the notice under Subsection (c) is
 4-6     received.
 4-7           (f)  If the violation is subject to correction under Section
 4-8     247.0452, and the person reports to the department that the
 4-9     violation has been corrected, the department shall inspect the
4-10     correction or take any other step necessary to confirm the
4-11     correction and shall notify the person that:
4-12                 (1)  the correction is satisfactory and a penalty will
4-13     not be assessed; or
4-14                 (2)  the correction is not satisfactory and a penalty
4-15     is recommended.
4-16           (g)  Not later than the 20th day after the date on which a
4-17     notice under Subsection (f)(2) is received, the person charged may:
4-18                 (1)  give to the department written consent to the
4-19     department's report, including the recommended penalty; or
4-20                 (2)  make a written request for a hearing.
4-21           (h)  If the person charged with the violation consents to the
4-22     penalty recommended by the department or does not timely respond to
4-23     a notice sent under Subsection (c) or (f)(2), the commissioner or
4-24     the commissioner's designee shall assess the penalty recommended by
4-25     the department.
4-26           (i)  If the commissioner or the commissioner's designee
4-27     assesses the recommended penalty, the department shall give written
4-28     notice to the person charged of the decision and the person shall
4-29     pay the penalty.
4-30           Sec. 247.0454.  HEARING ON ADMINISTRATIVE PENALTY.  (a)  An
4-31     administrative law judge shall order a hearing and give notice of
4-32     the hearing if a person charged with a violation under Section
4-33     247.0451 timely requests a hearing.
4-34           (b)  The hearing shall be held before an administrative law
4-35     judge.
4-36           (c)  The administrative law judge shall make findings of fact
4-37     and conclusions of law and promptly issue to the commissioner or
4-38     the commissioner's designee a written decision regarding the
4-39     occurrence of a violation of this chapter or a rule, standard, or
4-40     order adopted under this chapter or a term of a license issued
4-41     under this chapter and a recommendation regarding the amount of the
4-42     proposed penalty if a penalty is warranted.
4-43           (d)  Based on the findings of fact and conclusions of law and
4-44     the recommendation of the administrative law judge, the
4-45     commissioner or the commissioner's designee by order may:
4-46                 (1)  find that a violation has occurred and assess an
4-47     administrative penalty; or
4-48                 (2)  find that a violation has not occurred.
4-49           (e)  If the commissioner or the commissioner's designee finds
4-50     that a violation has not occurred, the commissioner or the
4-51     commissioner's designee shall order that all records reflecting
4-52     that the department found a violation had occurred and attempted to
4-53     impose an administrative penalty shall be expunged except:
4-54                 (1)  records obtained by the department during its
4-55     investigation; and
4-56                 (2)  the administrative law judge's findings of fact.
4-57           (f)  Proceedings under this section are subject to Chapter
4-58     2001, Government Code.
4-59           Sec. 247.0455.  NOTICE AND PAYMENT OF ADMINISTRATIVE PENALTY;
4-60     INTEREST; REFUND.  (a)  The commissioner or the commissioner's
4-61     designee shall give notice of the findings made under Section
4-62     247.0454(d) to the person charged.  If the commissioner or the
4-63     commissioner's designee finds that a violation has occurred, the
4-64     commissioner or the commissioner's designee shall give to the
4-65     person charged written notice of:
4-66                 (1)  the findings;
4-67                 (2)  the amount of the administrative penalty;
4-68                 (3)  the rate of interest payable with respect to the
4-69     penalty and the date on which interest begins to accrue;
 5-1                 (4)  whether action under Section 247.0457 is required
 5-2     in lieu of payment of all or part of the penalty; and
 5-3                 (5)  the person's right to judicial review of the order
 5-4     of the commissioner or the commissioner's designee.
 5-5           (b)  Not later than the 30th day after the date on which the
 5-6     order of the commissioner or the commissioner's designee is final,
 5-7     the person charged with the penalty shall:
 5-8                 (1)  pay the full amount of the penalty; or
 5-9                 (2)  file a petition for judicial review contesting the
5-10     occurrence of the violation, the amount of the penalty, the
5-11     department's dissatisfaction with efforts to correct the violation,
5-12     or any combination of these issues.
5-13           (c)  Notwithstanding Subsection (b), the department may
5-14     permit the person to pay a penalty in installments or may require
5-15     the person to use all or part of the amount of the penalty in
5-16     accordance with Section 247.0457.
5-17           (d)  If the person does not pay the penalty within the period
5-18     provided by Subsection (b) or in accordance with Subsection (c), if
5-19     applicable:
5-20                 (1)  the penalty is subject to interest; and
5-21                 (2)  the department may refer the matter to the
5-22     attorney general for collection of the penalty and interest.
5-23           (e)  Interest under Subsection (d)(1) accrues:
5-24                 (1)  at a rate equal to the rate charged on loans to
5-25     depository institutions by the New York Federal Reserve Bank; and
5-26                 (2)  for the period beginning on the day after the date
5-27     on which the penalty becomes due and ending on the date the penalty
5-28     is paid.
5-29           (f)  If the amount of the penalty is reduced or the
5-30     assessment of a penalty is not upheld on judicial review, the
5-31     commissioner shall:
5-32                 (1)  remit to the person charged the appropriate amount
5-33     of any penalty payment plus accrued interest; or
5-34                 (2)  execute a release of the supersedeas bond if one
5-35     has been posted.
5-36           (g)  Accrued interest on amounts remitted by the commissioner
5-37     under Subsection (f)(1) shall be paid:
5-38                 (1)  at a rate equal to the rate charged on loans to
5-39     depository institutions by the New York Federal Reserve Bank; and
5-40                 (2)  for the period beginning on the date the penalty
5-41     is paid and ending on the date the penalty is remitted to the
5-42     person charged.
5-43           Sec. 247.0456.  APPLICATION OF OTHER LAW.  The department may
5-44     not assess a monetary penalty under this chapter and a monetary
5-45     penalty under Chapter 32, Human Resources Code, for the same act or
5-46     failure to act.
5-47           Sec. 247.0457.  AMELIORATION OF VIOLATION.  (a)  In lieu of
5-48     demanding payment of an administrative penalty assessed under
5-49     Section 247.0451, the commissioner in accordance with this section
5-50     may allow the person to use, under the supervision of the
5-51     department, any portion of the penalty to ameliorate the violation
5-52     or to improve services, other than administrative services, in the
5-53     assisted living facility affected by the violation.
5-54           (b)  The department shall offer amelioration to a person for
5-55     a charged violation if the department determines that the violation
5-56     does not constitute immediate jeopardy to the health and safety of
5-57     a resident of the assisted living facility.
5-58           (c)  The department shall offer amelioration to a person
5-59     under this section not later than the 10th day after the date the
5-60     person receives from the department a final notification of the
5-61     recommended assessment of an administrative penalty that is sent to
5-62     the person after an informal dispute resolution process but before
5-63     an administrative hearing under Section 247.0454.
5-64           (d)  A person to whom amelioration has been offered must file
5-65     a plan for amelioration not later than the 45th day after the date
5-66     the person receives the offer of amelioration from the department.
5-67     In submitting the plan, the person must agree to waive the person's
5-68     right to an administrative hearing under Section 247.0454 if the
5-69     department approves the plan.
 6-1           (e)  At a minimum, a plan for amelioration must:
 6-2                 (1)  propose changes to the management or operation of
 6-3     the assisted living facility that will improve services to or
 6-4     quality of care of residents of the assisted living facility;
 6-5                 (2)  identify, through measurable outcomes, the ways in
 6-6     which and the extent to which the proposed changes will improve
 6-7     services to or quality of care of residents of the assisted living
 6-8     facility;
 6-9                 (3)  establish clear goals to be achieved through the
6-10     proposed changes;
6-11                 (4)  establish a time line for implementing the
6-12     proposed changes; and
6-13                 (5)  identify specific actions necessary to implement
6-14     the  proposed changes.
6-15           (f)  A plan for amelioration may include proposed changes to:
6-16                 (1)  improve staff recruitment and retention;
6-17                 (2)  offer or improve dental services for residents;
6-18     and
6-19                 (3)  improve the overall quality of life for residents.
6-20           (g)  The department may require that an amelioration plan
6-21     propose changes that would result in conditions that exceed the
6-22     requirements of this chapter or the rules adopted under this
6-23     chapter.
6-24           (h)  The department shall approve or deny an amelioration
6-25     plan not later than the 45th day after the date the department
6-26     receives the plan.  On approval of a person's plan, the department
6-27     shall deny a pending request for a hearing submitted by the person
6-28     under Section 247.0453.
6-29           (i)  The department may not offer amelioration to a person:
6-30                 (1)  more than three times in a two-year period; or
6-31                 (2)  more than one time in a two-year period for the
6-32     same or similar violation.
6-33           SECTION 9.  Subsection (b), Section 247.049, Health and
6-34     Safety Code, is amended to read as follows:
6-35           (b)  Subsection (a) does not:
6-36                 (1)  bar the admission into evidence of department
6-37     reports or other documents in an enforcement action in which the
6-38     state or an agency or political subdivision of the state is a
6-39     party, including:
6-40                       (A)  an action seeking injunctive relief under
6-41     Section 247.044;
6-42                       (B)  an action seeking imposition of a civil
6-43     penalty under Section 247.045; [and]
6-44                       (C)  a contested case hearing involving denial,
6-45     suspension, or revocation of a license issued under this chapter;
6-46     and
6-47                       (D)  an action seeking imposition of an
6-48     administrative penalty under this subchapter;
6-49                 (2)  bar the admission into evidence of department
6-50     reports or other documents that are offered:
6-51                       (A)  to establish warning or notice to an
6-52     assisted living facility of a relevant department determination; or
6-53                       (B)  under any rule or evidentiary predicate of
6-54     the Texas Rules of Evidence;
6-55                 (3)  prohibit or limit the testimony of a department
6-56     employee, in accordance with the Texas Rules of Evidence, as to
6-57     observations, factual findings, conclusions, or determinations that
6-58     an assisted living facility violated a standard prescribed under
6-59     this chapter if the observations, factual findings, conclusions, or
6-60     determinations were made in the discharge of the employee's
6-61     official duties for the department; or
6-62                 (4)  prohibit or limit the use of department reports or
6-63     other documents in depositions or other forms of discovery
6-64     conducted in connection with a civil action if use of the reports
6-65     or other documents appears reasonably calculated to lead to the
6-66     discovery of admissible evidence.
6-67           SECTION 10.  Section 247.051, Health and Safety Code, is
6-68     transferred to Subchapter A, Chapter 247, Health and Safety Code,
6-69     renumbered as Section 247.006, Health and Safety Code, and amended
 7-1     to read as follows:
 7-2           Sec. 247.006 [247.051].  ADVISORY COMMITTEE.  (a)  The
 7-3     Advisory Committee on Assisted Living Facilities consists of nine
 7-4     members appointed by the board.  The commissioner of human services
 7-5     shall appoint two staff members from the department to serve as
 7-6     nonvoting advisory members.  In appointing staff members under this
 7-7     subsection, the commissioner shall appoint one member as a
 7-8     representative of long-term care policy and one member as a
 7-9     representative of long-term care regulation.
7-10           (b)  The board shall appoint the advisory committee to
7-11     provide for a balanced representation of assisted living [personal
7-12     care] providers and consumers and shall appoint one member who has
7-13     expertise in life safety code regulations.  At least one of the
7-14     provider members must be representative of a nonprofit facility,
7-15     and at least one member must be a family member of a resident of a
7-16     facility.
7-17           (c)  The committee shall elect the presiding officer from
7-18     among its members.
7-19           (d)  The committee shall advise the department on standards
7-20     for licensing assisted living facilities and on the implementation
7-21     of this chapter.
7-22           SECTION 11.  The subchapter heading to Subchapter D, Chapter
7-23     247, Health and Safety Code, is repealed.
7-24           SECTION 12.  Subchapter E, Chapter 247, Health and Safety
7-25     Code, is redesignated as Subchapter D, Chapter 247, Health and
7-26     Safety Code, and the subchapter heading is amended to read as
7-27     follows:
7-28                 SUBCHAPTER D [E].  MISCELLANEOUS PROVISIONS
7-29           SECTION 13.  Subchapter C, Chapter 247, Health and Safety
7-30     Code, is amended by adding Section 247.051 to read as follows:
7-31           Sec. 247.051.  INFORMAL DISPUTE RESOLUTION.  (a)  The Health
7-32     and Human Services Commission by rule shall establish an informal
7-33     dispute resolution process in accordance with this section.  The
7-34     process must provide for adjudication by an appropriate
7-35     disinterested person of disputes relating to a proposed enforcement
7-36     action or related proceeding under this chapter.  The informal
7-37     dispute resolution process must require:
7-38                 (1)  the assisted living facility to request informal
7-39     dispute resolution not later than the 10th day after the date of
7-40     notification by the department of the violation of a standard or
7-41     standards;
7-42                 (2)  the Health and Human Services Commission to
7-43     complete the process not later than the 30th day after the date of
7-44     receipt of a request from the assisted living facility for informal
7-45     dispute resolution; and
7-46                 (3)  any individual representing an assisted living
7-47     facility in an informal dispute resolution process to register with
7-48     the Health and Human Services Commission and disclose the
7-49     following:
7-50                       (A)  the individual's employment history during
7-51     the preceding five years, including employment in regulatory
7-52     agencies of this state and other states;
7-53                       (B)  ownership, including the identity of the
7-54     controlling person or persons, of the assisted living facility the
7-55     individual is representing before the Health and Human Services
7-56     Commission; and
7-57                       (C)  the identity of other entities the
7-58     individual represents or has represented before the Health and
7-59     Human Services Commission during the preceding 24 months.
7-60           (b)  The Health and Human Services Commission shall adopt
7-61     rules to adjudicate claims in contested cases.
7-62           (c)  The Health and Human Services Commission may not
7-63     delegate its responsibility to administer the informal dispute
7-64     resolution process established by this section to another state
7-65     agency.
7-66           SECTION 14.  Section 247.066, Health and Safety Code, is
7-67     amended by adding Subsections (c) and (d) to read as follows:
7-68           (c)  If a department inspector determines that a resident is
7-69     inappropriately placed at a facility, the facility is not required
 8-1     to move the resident if, not later than the 10th business day after
 8-2     the date that the facility is informed of the specific basis of the
 8-3     inspector's determination, the facility:
 8-4                 (1)  obtains a written assessment from a physician that
 8-5     the resident is appropriately placed;
 8-6                 (2)  obtains a written statement:
 8-7                       (A)  from the resident that the resident wishes
 8-8     to remain in the facility; or
 8-9                       (B)  from a family member of the resident that
8-10     the family member wishes for the resident to remain in the
8-11     facility, if the resident lacks capacity to give a statement under
8-12     this subsection; and
8-13                 (3)  states in writing that the facility wishes for the
8-14     resident to remain in the facility.
8-15           (d)  If a department inspector determines that a resident is
8-16     inappropriately placed at a facility and the facility either agrees
8-17     with the determination or does not obtain the written statements
8-18     prescribed by Subsection (c) that would allow the resident to
8-19     remain in the facility notwithstanding the determination of the
8-20     inspector, the department may not assess an administrative penalty
8-21     against the facility because of the inappropriate placement.
8-22     However, the facility shall discharge the resident.  The resident
8-23     is allowed 30 days after the date of discharge to move from the
8-24     facility.  A discharge required under this subsection must be made
8-25     notwithstanding:
8-26                 (1)  any other law, including any law relating to the
8-27     rights of residents and any obligations imposed under the Property
8-28     Code; and
8-29                 (2)  the terms of any contract.
8-30           SECTION 15.  Subchapter (d), Section 247.0271, Health and
8-31     Safety Code, is repealed.
8-32           SECTION 16.  The Texas Department of Human Services shall
8-33     adopt rules to implement Section 247.0452, Health and Safety Code,
8-34     as added by this Act, and Section 247.066, Health and Safety Code,
8-35     as amended by this Act, not later than January 1, 2002.
8-36           SECTION 17.  This Act takes effect September 1, 2001.
8-37                                  * * * * *