By:  Moncrief                                          S.B. No. 691
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation of an assisted living facility trust fund.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter D, Chapter 242, Health and Safety
 1-5     Code, is amended by adding Sections 242.0965 and 242.0975 to read
 1-6     as follows:
 1-7           Sec. 242.0965.  ASSISTED LIVING FACILITY TRUST FUND AND
 1-8     EMERGENCY ASSISTANCE FUNDS.  (a)  The assisted living facility
 1-9     trust fund is a trust fund with the comptroller and shall be made
1-10     available to the department for expenditures without legislative
1-11     appropriation to make emergency assistance funds available to an
1-12     assisted living facility.
1-13           (b)  A trustee of an assisted living facility may use the
1-14     emergency assistance funds only to alleviate an immediate threat to
1-15     the health or safety of the residents.  The use may include
1-16     payments for:
1-17                 (1)  food;
1-18                 (2)  medication;
1-19                 (3)  sanitation services;
1-20                 (4)  minor repairs;
1-21                 (5)  supplies necessary for personal hygiene; or
1-22                 (6)  services necessary for the personal care, health,
1-23     and safety of the residents.
1-24           (c)  A court may order the department to disburse emergency
1-25     assistance funds to an assisted living facility if the court finds
 2-1     that:
 2-2                 (1)  the assisted living facility has inadequate funds
 2-3     accessible to the trustee for the operation of the assisted living
 2-4     facility;
 2-5                 (2)  an emergency exists that presents an immediate
 2-6     threat to the health and safety of the residents; and
 2-7                 (3)  it is in the best interests of the health and
 2-8     safety of the residents that funds are immediately available.
 2-9           (d)  The department shall disburse money from the assisted
2-10     living facility trust fund as ordered by the court in accordance
2-11     with board rules.
2-12           (e)  Any unencumbered amount in the assisted living facility
2-13     trust fund in excess of $500,000 at the end of each fiscal year
2-14     shall be transferred to the credit of the general revenue fund and
2-15     may be appropriated only to the department for its use in
2-16     administering and enforcing Chapter 247.
2-17           Sec. 242.0975.  ADDITIONAL LICENSE FEE--ASSISTED LIVING
2-18     FACILITIES.  (a)  In addition to the license fee provided by
2-19     Section 247.024, the department shall adopt an annual fee to be
2-20     charged and collected if the amount of the assisted living facility
2-21     trust fund is less than $500,000.  The fee shall be deposited to
2-22     the credit of the assisted living facility trust fund created by
2-23     this subchapter.
2-24           (b)  The department may charge and collect a fee under this
2-25     section more than once each year only if necessary to ensure that
2-26     the amount in the assisted living facility trust fund is sufficient
 3-1     to make the disbursements required under Section 242.0965.  If the
 3-2     department makes a second or subsequent assessment under this
 3-3     subsection in any year, the department shall notify the governor
 3-4     and the Legislative Budget Board.
 3-5           (c)  The department shall set the fee on the basis of the
 3-6     number of beds in assisted living facilities required to pay the
 3-7     fee and in an amount necessary to provide not more than $500,000 in
 3-8     the fund.
 3-9           SECTION 2.  The section heading of Section 242.097, Health
3-10     and Safety Code, is amended to read as follows:
3-11           Sec. 242.097.  ADDITIONAL LICENSE FEE--NURSING AND
3-12     CONVALESCENT HOMES.
3-13           SECTION 3.  This Act takes effect immediately if it receives
3-14     a vote of two-thirds of all the members elected to each house, as
3-15     provided by Section 39, Article III, Texas Constitution.  If this
3-16     Act does not receive the vote necessary for immediate effect, this
3-17     Act takes effect September 1, 2001.