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AN ACT
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relating to the additional exit conference required following |
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inspection, survey, or investigation of, and the temporary change |
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of ownership licenses for, certain facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 142.009, Health and Safety Code, is |
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amended by amending Subsections (f) and (g) and adding Subsection |
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(g-1) to read as follows: |
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(f) At the conclusion of a survey or complaint |
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investigation, the [The] department shall fully inform the person |
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who is in charge of the home and community support services agency |
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of the preliminary findings of the survey at an exit conference and |
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shall give the person a reasonable opportunity to submit additional |
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facts or other information to the department's authorized |
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representative in response to those findings. The response shall |
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be made a part of the record of the survey for all purposes. The |
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department's representative shall leave a written list of the |
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preliminary findings with the agency at the exit conference. |
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(g) After a survey of a home and community support services |
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agency by the department, the department shall provide to the chief |
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executive officer of the agency: |
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(1) specific and timely written notice of the official |
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[preliminary] findings of the survey, including: |
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(A) the specific nature of the survey; |
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(B) any alleged violations of a specific statute |
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or rule; |
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(C) the specific nature of any finding regarding |
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an alleged violation or deficiency; and |
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(D) if a deficiency is alleged, the severity of |
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the deficiency; |
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(2) information on the identity, including the |
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signature, of each department representative conducting, |
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reviewing, or approving the results of the survey and the date on |
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which the department representative acted on the matter; and |
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(3) if requested by the agency, copies of all |
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documents relating to the survey maintained by the department or |
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provided by the department to any other state or federal agency that |
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are not confidential under state law. |
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(g-1) If the department or the department's authorized |
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representative discovers any additional violations during the |
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review of field notes or preparation of the official statement of |
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deficiencies for a home and community support services agency, the |
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department or the department's representative shall conduct an |
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additional exit conference regarding the additional violations. |
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The additional exit conference must be held in person and may not be |
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held over the telephone, by e-mail, or by facsimile transmission. |
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SECTION 2. Section 242.0336, Health and Safety Code, is |
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amended by amending Subsections (a) and (c) through (g) and adding |
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Subsections (b-1) through (b-5), (c-1), and (d-1) to read as |
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follows: |
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(a) For purposes of this section, a temporary change of |
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ownership license is a temporary 90-day license issued to an |
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applicant who proposes to become the new operator of an institution |
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existing on the date the application is filed. |
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(b-1) Except as provided by Subsection (b-2), the |
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department may not issue a temporary change of ownership license |
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before the 31st day after the date the department has received both: |
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(1) the application for the license; and |
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(2) notification, in writing, of the intent of the |
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institution's existing license holder to transfer operation of the |
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institution to the applicant beginning on a date specified by the |
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applicant. |
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(b-2) Notwithstanding Section 242.0335, the department |
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shall establish criteria under which the department may waive the |
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30-day requirement or the notification requirement of Subsection |
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(b-1). The criteria may include the occurrence of forcible entry |
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and detainer, death, or divorce or other events that affect the |
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ownership of the institution by the existing license holder. |
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(b-3) After receipt of an application or written |
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notification described by Subsection (b-1), the department may |
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place a hold on payments to the existing license holder in an amount |
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not to exceed the average of the monthly vendor payments paid to the |
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facility, as determined by the department. The department shall |
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release funds to the previous license holder not later than the |
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120th day after the date on which the final reporting requirements |
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are met and any resulting informal reviews or formal appeals are |
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resolved. The department may reduce the amount of funds released to |
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the previous license holder by the amount owed to the department or |
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the Health and Human Services Commission under the previous license |
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holder's Medicaid contract or license. |
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(b-4) The executive commissioner of the Health and Human |
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Services Commission shall adopt rules for the department that |
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define a change of ownership. In adopting the rules, the executive |
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commissioner shall consider: |
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(1) the proportion of ownership interest that is being |
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transferred to another person; |
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(2) the addition or removal of a stockholder, partner, |
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owner, or other controlling person; |
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(3) the reorganization of the license holder into a |
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different type of business entity; and |
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(4) the death or incapacity of a stockholder, partner, |
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or owner. |
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(b-5) The executive commissioner may adopt rules for the |
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department that require a license holder to notify the department |
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of any change, including a change that is not a change of ownership, |
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as that term is defined by rules adopted under Subsection (b-4). |
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Nothing in this section prevents the department from acting under |
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Section 242.061 or any other provision of this chapter. |
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(c) The department shall issue or deny a temporary change of |
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ownership license not later than the 31st [30th] day after the date |
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of receipt of the completed application. The effective date of a |
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temporary change of ownership license issued under this section is |
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the date requested in the application unless: |
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(1) the department does not receive the application |
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and written notification described by Subsection (b-1) at least 30 |
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days before that date; and |
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(2) no waiver under Subsection (b-2) applies. |
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(c-1) If the department does not receive the application and |
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written notification required by Subsection (b-1) at least 30 days |
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before the effective date requested in the application and |
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Subsection (b-2) does not apply, the effective date of the |
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temporary change of ownership license is the 31st day after the date |
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the department receives both the application and the notification. |
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(d) Except as provided in Subsection (d-1), after [After] |
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the department issues a temporary change of ownership license to |
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the applicant, the department shall conduct an inspection or survey |
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of the nursing facility under Section 242.043 as soon as reasonably |
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possible. During the period between the issuance of the temporary |
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license and the inspection or survey of the nursing facility or desk |
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review under Subsection (d-1), the department may not place a hold |
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on vendor payments to the temporary license holder. |
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(d-1) The department shall establish criteria under which a |
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desk review of the facility's compliance with applicable |
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requirements may be substituted for the on-site inspection or |
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survey under Subsection (d). |
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(e) After conducting an inspection or survey under |
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Subsection (d) or a desk review under Subsection (d-1), the |
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department shall issue a license under Section 242.033 to the |
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temporary change of ownership license holder if the nursing |
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facility passes the desk review, inspection, or survey and the |
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applicant meets the requirements of Section 242.033. If the |
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nursing facility fails to pass the desk review, inspection, or |
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survey or the applicant fails to meet the requirements of Section |
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242.033, the department may: |
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(1) place a hold on vendor payments to the temporary |
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change of ownership license holder; and |
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(2) take any other action authorized under this |
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chapter. |
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(f) If the applicant meets the requirements of Section |
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242.033 and the nursing facility passes a desk review, [an] initial |
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inspection, or [a] subsequent inspection before the temporary |
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change of ownership license expires, the license issued under |
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Section 242.033 is considered effective on the date the department |
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determines under Subsection (c) or (c-1) [requested in the
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application for a temporary change of ownership]. |
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(g) A temporary change of ownership license issued under |
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Subsection (b) expires on the 90th [91st] day after the effective |
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date established under Subsection (c) or (c-1) [date the license
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was issued]. |
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SECTION 3. Subsections (b) and (c), Section 242.0445, |
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Health and Safety Code, are amended to read as follows: |
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(b) At the conclusion of an inspection, survey, or |
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investigation under Section 242.043 or 242.044, the department or |
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the department's representative conducting the inspection, survey, |
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or investigation shall discuss the violations with the facility's |
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management in an exit conference. The department or the |
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department's representative shall leave a written list of the |
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violations with the facility at the time of the exit conference. If |
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the department or the department's representative discovers any |
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additional violations during the review of field notes or |
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preparation of the official final list, the department or the |
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department's representative shall give the facility an additional |
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exit conference regarding the additional violations. An additional |
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exit conference must be held in person and may not be held by |
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telephone, e-mail, or facsimile transmission. |
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(c) The facility shall submit a plan to correct the |
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violations to the regional director not later than the 10th working |
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day after the date the facility receives the final official |
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statement of violations. |
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SECTION 4. Section 247.0271, Health and Safety Code, is |
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amended by amending Subsection (c) and adding Subsection (d) to |
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read as follows: |
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(c) If, after the initial exit conference, additional |
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violations are cited, the inspector shall conduct an additional |
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exit conference regarding the newly identified violations. An |
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additional exit conference must be held in person and may not be |
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held by telephone, e-mail, or facsimile transmission. |
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(d) The assisted living facility shall submit a plan of |
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correction to the regional director with supervisory authority over |
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the inspector not later than the 10th working day after the date the |
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facility receives the final official statement of violations. |
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SECTION 5. Section 247.050, Health and Safety Code, is |
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amended by adding Subsection (d) to read as follows: |
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(d) The department shall permanently retain at least one |
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copy or one electronic source of information pertaining to |
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complaints and investigations of unlicensed assisted living |
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facilities used to maintain a registry as required under Subsection |
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(a)(1) and used to prepare a report under Subsection (a)(2). |
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SECTION 6. Subsections (b) and (c), Section 252.044, Health |
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and Safety Code, are amended to read as follows: |
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(b) At the conclusion of an inspection, survey, or |
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investigation under this chapter, the department or the |
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department's representative conducting the inspection, survey, or |
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investigation shall discuss the violations with the facility's |
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management in an exit conference. The department or the |
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department's representative shall leave a written list of the |
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violations with the facility and the person designated by the |
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facility to receive notice under Section 252.066 at the time of the |
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exit conference. If the department or the department's |
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representative discovers any additional violations during the |
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review of field notes or preparation of the official final list, the |
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department or the department's representative shall give the |
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facility an additional exit conference regarding the additional |
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violations. An additional exit conference must be held in person |
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and may not be held by telephone, e-mail, or facsimile |
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transmission. |
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(c) The facility shall submit a plan to correct the |
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violations to the regional director not later than the 10th working |
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day after the date the facility receives the final official |
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statement of violations. |
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SECTION 7. (a) As soon as practicable after the effective |
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date of this Act, the executive commissioner of the Health and Human |
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Services Commission shall adopt the rules required by Section |
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242.0336, Health and Safety Code, as amended by this Act. |
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(b) The changes in law made by this Act to Section 242.0336, |
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Health and Safety Code, apply only to a temporary change of |
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ownership license application received by the Department of Aging |
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and Disability Services on or after September 1, 2007. An |
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application received by the department before September 1, 2007, is |
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governed by the law in effect at the time the application is |
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received, and the former law is continued in effect for that |
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purpose. |
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SECTION 8. This Act takes effect September 1, 2007. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 344 passed the Senate on |
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March 28, 2007, by the following vote: Yeas 30, Nays 0; |
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May 21, 2007, Senate refused to concur in House amendments and |
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requested appointment of Conference Committee; May 22, 2007, House |
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granted request of the Senate; May 26, 2007, Senate adopted |
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Conference Committee Report by the following vote: Yeas 30, |
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Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 344 passed the House, with |
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amendments, on May 15, 2007, by the following vote: Yeas 139, |
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Nays 0, two present not voting; May 22, 2007, House granted request |
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of the Senate for appointment of Conference Committee; |
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May 27, 2007, House adopted Conference Committee Report by the |
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following vote: Yeas 143, Nays 0, two present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |