| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the definition of a controlling person of an assisted |
|
|
living facility. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 247.005, Tex. Health and Safety Code, is |
|
|
amended to read as follows: |
|
|
Sec. 247.005. CONTROLLING PERSON. (a) A person is a |
|
|
controlling person if the person, acting alone or with others, has |
|
|
the ability to directly or indirectly influence, direct, or cause |
|
|
the direction of the management, expenditure of money, or policies |
|
|
of an assisted living facility or other person. |
|
|
(b) For purposes of this chapter, "controlling person" |
|
|
includes: |
|
|
(1) a management company, landlord, or other business |
|
|
entity that operates or contracts with others for the operation of |
|
|
an assisted living facility; |
|
|
(2) a person who is a controlling person of a |
|
|
management company or other business entity that operates an |
|
|
assisted living facility or that contracts with another person for |
|
|
the operation of an assisted living facility; and |
|
|
(3) any other individual who, because of a personal, |
|
|
familial, or other relationship with the owner, manager, landlord, |
|
|
tenant, or provider of an assisted living facility, is in a position |
|
|
of actual control or authority with respect to the facility, |
|
|
without regard to whether the individual is formally named as an |
|
|
owner, manager, director, officer, provider, consultant, |
|
|
contractor, or employee of the facility. |
|
|
(c) A controlling person [described by Subsection (b)(3)] |
|
|
does not include an employee, lender, secured creditor, landlord, |
|
|
stock holder, limited liability partner, investor or other person |
|
|
who does not exercise formal or actual influence or control over the |
|
|
operation of an assisted living facility. |
|
|
(d) The department may adopt rules that specify the |
|
|
ownership interests and other relationships that qualify a person |
|
|
as a controlling person[.]; provided that, no rule may be adopted |
|
|
that defines a controlling person to include a person who owns the |
|
|
common stock of a publicly traded organization in the normal course |
|
|
of its business as an investment firm that exerts no control over |
|
|
the day to day operation of an assisted living facility. |
|
|
SECTION 2. This act takes effect September 1, 2009. |