81R10571 ALB-F

By: Davis of Dallas H.B. No. 4271

A BILL TO BE ENTITLED

AN ACT

relating to regulation of facilities providing certain types of care.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 123.002, Human Resources Code, is amended to read as follows:

Sec. 123.002. DEFINITIONS [DEFINITION]. In this chapter:

(1) "Commission" means the Health and Human Services Commission.

(2) "Community home" means a community home described by Section 123.004 that provides services to persons with a disability.

(3) "Department" means the Department of Aging and Disability Services.

(4) "Executive commissioner" means the executive commissioner of the Health and Human Services Commission.

(5) "Person with a disability"[, "person with a disability"] means a person whose ability to care for himself, perform manual tasks, learn, work, walk, see, hear, speak, or breathe is substantially limited because the person has:

(A) [(1)] an orthopedic, visual, speech, or hearing impairment;

(B) [(2)] Alzheimer's disease;

(C) [(3)] pre-senile dementia;

(D) [(4)] cerebral palsy;

(E) [(5)] epilepsy;

(F) [(6)] muscular dystrophy;

(G) [(7)] multiple sclerosis;

(H) [(8)] cancer;

(I) [(9)] heart disease;

(J) [(10)] diabetes;

(K) [(11)] mental retardation;

(L) [(12)] autism; or

(M) [(13)] emotional illness.

SECTION 2. Section 123.007, Human Resources Code, is amended to read as follows:

Sec. 123.007. LICENSING AS COMMUNITY HOME REQUIRED [REQUIREMENTS]. A community home must meet all applicable licensing requirements, including:

(1) an applicant for a community home for disabled persons must submit an application to the department on a form prescribed by the department;

(2) each application must be accompanied by a nonrefundable license fee in an amount set by the department;

(3) the department may provide technical assistance to an applicant by performing brief inspections of the community home proposed to be licensed and making recommendations concerning actions necessary to meet standards for community homes for disabled persons; and

(4) prior to issuance of a license, the department shall require that an application be approved by the local health authority or other local official for compliance with municipal ordinances on building standards, fire safety, sanitation, zoning, and other ordinances relating to the public health and safety.

SECTION 3. Chapter 123, Human Resources Code, is amended by adding Sections 123.011 through 123.023 to read as follows:

Sec. 123.011. DISPLAY OF LICENSE. A community home shall prominently and conspicuously post for display in a public area of the community home that is readily available to residents, employees, or visitors:

(1) the license issued under this chapter;

(2) the name and address of the license holder;

(3) the name of the owner or owners, if different from the information provided under Subdivision (2);

(4) the license expiration date;

(5) the types of services authorized to be provided under the license;

(6) a sign prescribed by the executive commissioner that specifies complaint procedures established under this chapter or rules adopted under this chapter and that specifies how complaints may be registered with the department;

(7) a notice in a form prescribed by the department stating that inspection and related reports are available at the community home for public inspection and providing the department's toll-free number that may be used to obtain information concerning the community home; and

(8) a concise summary of the most recent inspection report relating to the community home.

Sec. 123.012. ANNUAL INSPECTIONS; INVESTIGATIONS. (a) The department, or local district attorney, county attorney, or city attorney may inspect a community home annually and may inspect the community home at other reasonable times as necessary to ensure compliance with this chapter or to ensure compliance with municipal ordinances on building standards, fire safety, sanitation, and zoning and other ordinances relating to the public health and safety.

(b) A license holder or a license applicant is considered to have consented to entry and inspection of the community home by the department, local district attorney, county attorney, or city attorney in accordance with this chapter.

Sec. 123.013. MUNICIPAL ENFORCEMENT OF EMERGENCY CLOSURE. The governing body of a municipality may:

(1) prohibit a person who does not hold a license issued under this chapter from establishing or operating a community home within the municipality; and

(2) establish a procedure for emergency closure of a community home under the following circumstances:

(A) the home is established or operating in violation of Section 123.007; and

(B) the continued operation of the community home creates an immediate threat to the health and safety of a resident of the community home.

Sec. 123.014. INJUNCTION. (a) The department, local district attorney, county attorney, or city attorney may petition a district court for a temporary restraining order to restrain a continuing violation of the standards or licensing requirements provided under this chapter or violation of a municipal ordinance if the department, local district attorney, county attorney, or city attorney finds that:

(1) the violation creates an immediate threat to the health and safety of the residents of the community home; or

(2) the home is operating without a license.

(b) The department, local district attorney, county attorney, or city attorney may petition a district court for a temporary restraining order to inspect a community home allegedly operating without a license when admission to the community home cannot be obtained. If it is shown that admission to the community home cannot be obtained, the court shall order the community home to allow the department, local district attorney, county attorney, or city attorney admission to the community home.

(c) A district court, on petition of the department, local district attorney, county attorney, or city attorney and on finding by the court that a person is violating the standards or licensing requirements provided under this chapter or a municipal ordinance, may by injunction:

(1) prohibit a person from continuing a violation of the standards or licensing requirements provided under this chapter;

(2) prohibit a person from continuing to violate a municipal ordinance;

(3) restrain the establishment or operation of the community home without a license issued under this chapter; or

(4) grant any other injunctive relief warranted by the facts.

(d) The attorney general or local district attorney, county attorney, or city attorney may institute and conduct a suit authorized by this section.

(e) Venue for a suit brought under this section is in the county in which the community home is located or in Travis County.

Sec. 123.015. FINDINGS AND PURPOSE OF TRUSTEES. (a) The legislature finds that, under some circumstances, closing a community home for a violation of law or rule may:

(1) have an adverse effect on the home's residents and their families; and

(2) result in a lack of readily available financial resources to meet the basic needs of the residents for food, shelter, medication, and personal services.

(b) The purpose of the provisions of this chapter that authorize the appointment of a trustee is to provide for:

(1) the appointment of a trustee to assume operations of the community home in a manner that emphasizes resident care and reduces resident trauma; and

(2) a fund to assist a court-appointed trustee in meeting the basic needs of the residents.

Sec. 123.016. TRUSTEE APPOINTED BY AGREEMENT. (a) A person who holds a controlling interest in a community home may request the department to assume operation of the community home through the appointment of a trustee.

(b) After receiving this request, the department may enter into an agreement providing for the appointment of a trustee to take charge of the community home under conditions both parties consider appropriate if the department considers the appointment desirable.

(c) An agreement under this section must:

(1) specify the terms and conditions of the trustee's appointment and authority; and

(2) preserve the rights of the residents as granted by law.

(d) The agreement terminates at the time:

(1) specified by the parties; or

(2) either party notifies the other in writing that the party is terminating the appointment agreement.

Sec. 123.017. INVOLUNTARY APPOINTMENT OF TRUSTEE. (a) The department may request the attorney general to bring an action on behalf of the state, or the local district attorney, county attorney, or city attorney may bring an action, for the appointment of a trustee to operate a community home if:

(1) the community home is operating without a license;

(2) the department has suspended or revoked the community home's license;

(3) license suspension or revocation procedures against the community home are pending, and the department determines that an imminent threat to the health and safety of the residents exists;

(4) the department, local district attorney, county attorney, or city attorney determines that an emergency exists that presents an immediate threat to the health and safety of the residents;

(5) the community home is closing and arrangements for relocation of the residents to other licensed community homes for disabled persons have not been made before closure; or

(6) the community home does not comply with municipal ordinances on building standards, fire safety, sanitation, or zoning, or other ordinances that relate to the public health and safety.

(b) A trustee appointed under Subsection (a)(5) has the authority only to ensure an orderly and safe relocation of the community home's residents as quickly as possible.

(c) After a hearing, a court shall appoint as trustee an individual whose background includes services for disabled persons.

(d) An action under this section must be brought in Travis County or the county in which the community home is located.

Sec. 123.018. TRUSTEE FEE AND RELEASE OF MONEY TO TRUSTEE. (a) A trustee appointed by the court under this chapter is entitled to a reasonable fee as determined by the court. In determining the trustee's personal compensation for administration of the community home, the court shall consider reasonable a rate that is equal to 150 percent of the maximum allowable rate for an owner-administrator of a similar facility under the state's Medicaid reimbursement rules, if applicable, or another reasonable rate determined by the executive commissioner by rule. The court shall determine the reasonableness of the trustee's personal compensation for other duties. On the motion of any party, the court shall review the reasonableness of the trustee's fees. The court shall reduce the amount if the court determines that the fees are not reasonable.

(b) The trustee may petition the court to order the release to the trustee of any payment owed the trustee for care and services provided to the residents if the payment has been withheld, including a payment withheld by the commission.

(c) Payments withheld under Subsection (b) may include payments withheld by a governmental agency or other entity during the appointment of the trustee, including payments:

(1) for Medicaid or insurance;

(2) by a third party; or

(3) for medical expenses incurred by the residents.

Sec. 123.019. COMMUNITY HOME TRUST FUND AND EMERGENCY ASSISTANCE FUNDS. (a) The community home fund is a trust fund with the comptroller and shall be made available to the department for expenditures without legislative appropriation to make emergency assistance funds available to a community home.

(b) A trustee of a community home may use the emergency assistance funds only to alleviate an immediate threat to the health and safety of the residents. The use may include payments for:

(1) food;

(2) medication;

(3) sanitation services;

(4) minor repairs;

(5) supplies necessary for personal hygiene; or

(6) services necessary for the personal care, health, and safety of the residents.

(c) A court may order the department to disburse emergency assistance funds to a community home if the court finds that:

(1) the community home has inadequate funds accessible to the trustee for the operation of the community home;

(2) an emergency exists that presents an immediate threat to the health and safety of the residents; and

(3) it is in the best interests of the health and safety of the residents that funds are immediately available.

(d) The commission shall disburse money from the community home fund as ordered by the court in accordance with department rules.

(e) Any unencumbered amount in the community home fund that exceeds $500,000 at the end of each fiscal year shall be transferred to the credit of the general revenue fund and may be appropriated only to the department for department use in administering and enforcing this chapter.

Sec. 123.020. ADDITIONAL LICENSE FEE. (a) In addition to the license fee required by Section 123.007, the commission shall adopt an annual fee to be charged and collected if the amount of the community home fund is less than $500,000. The fee shall be deposited to the credit of the community home fund created by this chapter.

(b) The commission may charge and collect a fee under this section more than once each year only if necessary to ensure that the amount in the community home fund is sufficient to make disbursements under Section 123.019.

(c) The commission shall set the fee on the basis of the number of beds in a community home required to pay the fee and in an amount necessary to provide more than $500,000 in the community home fund.

Sec. 123.021. REIMBURSEMENT. (a) A community home that receives emergency assistance money or trustee fees under this chapter shall reimburse the department for the amounts received, including interest.

(b) Interest on unreimbursed amounts accrues from the date on which the money is disbursed to the community home. The rate of interest is the rate determined under Section 304.003, Finance Code, to be applicable to judgments rendered during the month in which the money is disbursed to the community home.

(c) The owner of the community home when the trustee is appointed is responsible for the reimbursement.

(d) The amount that remains unreimbursed on the date of the first anniversary on which the money is received is delinquent and the commission may determine that the community home is ineligible for a Medicaid provider contract.

(e) The department shall deposit the reimbursement and interest received under this section to the credit of the community home fund.

(f) The attorney general shall institute an action to collect money due under this section at the request of the department. An action under this section must be brought in Travis County or in the county in which the community home is located.

Sec. 123.022. NOTIFICATION OF CLOSURE. (a) A community home that is closing temporarily or permanently, voluntarily or involuntarily, shall notify the residents of the closing and make reasonable efforts to notify in writing each resident's nearest relative or the person responsible for the resident's support within a reasonable time before the home closes.

(b) If the department, local district attorney, county attorney, city attorney, or a court orders a facility to close and the closure is in any other way involuntary, the community home shall make the notification, orally or in writing, immediately on receiving notice.

Sec. 123.023. CRIMINAL PENALTY FOR FAILURE TO NOTIFY. (a) A community home commits an offense if the home knowingly fails to comply with Section 123.022.

(b) An offense under this section is a Class A misdemeanor.

SECTION 4. The heading to Chapter 123, Human Resources Code, is amended to read as follows:

CHAPTER 123. COMMUNITY HOMES FOR DISABLED PERSONS [LOCATION ACT]

SECTION 5. Sections 142.004(c) and (e), Health and Safety Code, are amended to read as follows:

(c) The board by rule shall require that, at a minimum, before the department may approve a license application, the applicant must provide to the department:

(1) documentation establishing that, at a minimum, the applicant has sufficient financial resources to provide the services required by this chapter and by the department during the term of the license;

(2) a list of the management personnel for the proposed home and community support services agency, a description of personnel qualifications, and a plan for providing continuing training and education for the personnel during the term of the license;

(3) documentation establishing that the applicant is capable of meeting the minimum standards established by the board relating to the quality of care;

(4) a plan that provides for the orderly transfer of care of the applicant's clients if the applicant cannot maintain or deliver home health, hospice, or personal assistance services under the license;

(5) identifying information on the home and community support services agency owner, administrator, and chief financial officer to enable the department to conduct criminal background checks on those persons;

(6) identification of any controlling person with respect to the applicant; [and]

(7) documentation relating to any controlling person identified under Subdivision (6), if requested by the department and relevant to the controlling person's compliance with any applicable licensing standard required or adopted by the board under this chapter; and

(8) approval by the local health authority or other local official, for any alternate delivery site or other facility owned or operated by, or under the control of, a home and community support services agency, for compliance with municipal ordinances on building standards, fire safety, sanitation, and zoning and other ordinances relating to the public health and safety.

(e) A home and community support services agency owned or operated by a state agency directly providing services is not required to provide the information described in Subsections (c)(1), (5), and (8) [(c)(1) and (5)].

SECTION 6. Section 142.0065, Health and Safety Code, is amended to read as follows:

Sec. 142.0065. DISPLAY OF LICENSE. (a) A license issued under this chapter shall be displayed in a conspicuous place in the designated place of business and must show:

(1) the name and address of the licensee;

(2) the name of the owner or owners, if different from the information provided under Subdivision (1);

(3) the license expiration date; and

(4) the types of services authorized to be provided under the license.

(b) A community support services agency shall prominently and conspicuously post for display in a public area of the agency that is readily available to residents, employees, or visitors:

(1) a sign prescribed by the department that specifies complaint procedures established under this chapter or rules adopted under this chapter and that specifies how complaints may be registered with the department;

(2) a notice in a form prescribed by the department stating that inspection and related reports are available at the home and community support services agency's designated place of business for public inspection and providing the department's toll-free number that may be used to obtain information concerning the agency; and

(3) a concise summary of the most recent inspection report relating to the services.

SECTION 7. Subchapter A, Chapter 142, Health and Safety Code, is amended by adding Section 142.0066 to read as follows:

Sec. 142.0066. ANNUAL INSPECTIONS; INVESTIGATIONS. (a) The department, local district attorney, county attorney, or city attorney may enter the designated premises of a license applicant or license holder or any branch office, any alternate delivery site, or other facility described by Section 142.004(c)(8), annually or at reasonable times as necessary to ensure compliance with this chapter and the rules adopted under this chapter and to ensure compliance with municipal ordinances on building standards, fire safety, sanitation, and zoning and other ordinances relating to the public health and safety. A license holder or an applicant for a license is considered to have consented to entry and inspection of the premises by the department, local district attorney, county attorney, or city attorney in accordance with this chapter.

(b) The inspection under this section is in addition to the survey authorized by Section 142.009.

SECTION 8. Subchapter A, Chapter 142, Health and Safety Code, is amended by adding Section 142.0125 to read as follows:

Sec. 142.0125. TEMPORARY RESTRAINING ORDER. The department, local district attorney, county attorney, or city attorney may petition a district court for a temporary restraining order to restrain a continuing violation of the standards or licensing requirements provided under this chapter or a violation of a municipal ordinance if the department, local district attorney, county attorney, or city attorney finds that:

(1) a violation creates an immediate threat to the health and safety of a resident or client of the home and community support services agency; or

(2) the home and community support services agency is operating without a license.

SECTION 9. Section 142.013, Health and Safety Code, is amended to read as follows:

Sec. 142.013. INJUNCTION. (a) A district court, on petition of the department, local district attorney, county attorney, or city attorney and on a finding by the court that a person is violating this chapter or a municipal ordinance, may by injunction:

(1) prohibit the person from continuing the violation; or

(2) grant any other injunctive relief warranted by the facts.

(b) The attorney general, local district attorney, county attorney, or city attorney may [shall] institute and conduct a suit authorized by this section [at the request of the department and in the name of the state].

(c) A suit for injunctive relief must be brought in Travis County or the county in which the alleged violation occurs.

SECTION 10. Subchapter A, Chapter 142, Health and Safety Code, is amended by adding Sections 142.0135 through 142.0144 to read as follows:

Sec. 142.0135. MUNICIPAL ENFORCEMENT OF EMERGENCY CLOSURE. The governing body of a municipality by ordinance may:

(1) prohibit a person who does not hold a license under this chapter from establishing or operating a home and community support services agency within the municipality; and

(2) establish a procedure for emergency closure of the home and community support services agency under the following circumstances:

(A) the home and community support services agency is established or operating in violation of Section 142.002; and

(B) the continued operation of the home and community support services agency creates an immediate threat to the health and safety of a client agency.

Sec. 142.0136. FINDINGS AND PURPOSE OF TRUSTEES. (a) The legislature finds that, under some circumstances, closing a home and community support services agency for a violation of the law or rule may:

(1) have an adverse effect on the agency's clients and their families; and

(2) result in a lack of readily available financial resources to meet the basic needs of the clients for food, shelter, and medication, if applicable, and personal services.

(b) The purpose of the provisions of this chapter that authorize the appointment of a trustee is to provide for:

(1) the appointment of a trustee to assume operations of the home and community support services agency in a manner that emphasizes client care and reduces client trauma; and

(2) the use of a fund to assist a court appointed trustee in meeting the basic needs of the clients.

Sec. 142.0137. TRUSTEE APPOINTMENT BY AGREEMENT. (a) A person who holds a controlling interest in a home and community support services agency may request the department to assume operation of the home and community support services agency through the appointment of a trustee.

(b) After receiving the request, the department may enter into an agreement providing for the appointment of a trustee to take charge of the home and community support services agency under conditions both parties consider appropriate if the department considers the appointment desirable.

(c) An agreement under this section must:

(1) specify the terms and conditions of the trustee's appointment and authority; and

(2) preserve the rights of clients as granted by law.

(d) The agreement terminates at the time:

(1) specified by the parties; or

(2) either party notifies the other in writing that the party is terminating the appointment agreement.

Sec. 142.0138. INVOLUNTARY APPOINTMENT OF TRUSTEE. (a) The department may request the attorney general to bring an action on behalf of the state, or the local district attorney, county attorney, or city attorney may bring an action, for the appointment of a trustee to operate a home and community support services agency if:

(1) the home and community support services agency is operating without a license;

(2) the department has suspended or revoked the home and community support services agency's license;

(3) license suspension or revocation procedures against the home and community support services agency are pending and the department determines that an imminent threat to the health and safety of the clients exists;

(4) the department, local district attorney, county attorney, or city attorney determines that an emergency exists that presents an immediate threat to the health and safety of the clients;

(5) the home and community support services agency is closing and alternate arrangements for services for the clients by other licensed home and community support services agencies have not been made before closure; or

(6) the home and community support services agency does not comply with municipal ordinances on building standards, fire safety, sanitation, or zoning or other ordinances that relate to the public health and safety.

(b) A trustee appointed under Subsection (a)(5) has the authority only to ensure an orderly and safe relocation of the home and community support services agency's clients as quickly as possible.

(c) After a hearing, a court shall appoint as trustee an individual whose background includes home and community support services.

(d) An action brought under this section must be brought in Travis County or the county in which the home and community support services agency's designated business premises is located or provides services.

Sec. 142.0139. TRUSTEE FEE AND RELEASE OF MONEY TO TRUSTEE. (a) A trustee appointed by the court under this chapter is entitled to a reasonable fee as determined by the court. In determining the trustee's personal compensation for administration of the home and community support services agency, the court shall consider reasonable a rate that is equal to 150 percent of the maximum allowable rate for administration of a similar agency under the state's Medicaid reimbursement rules, if applicable, or another reasonable rate determined by department rule. The court shall determine the reasonableness of the trustee's personal compensation for other duties. On the motion of any party, the court shall review the reasonableness of the trustee's fees. The court shall reduce the amount if the court determines that the fees are not reasonable.

(b) The trustee may petition the court to order the release to the trustee of any payment owed the trustee for care and services provided to the clients if the payment has been withheld, including a payment withheld by the Health and Human Services Commission.

(c) Payments withheld under Subsection (b) may include payments withheld by a governmental agency or other entity during the appointment of the trustee, including payments:

(1) for Medicaid or insurance;

(2) by a third party; or

(3) for medical expenses incurred by the clients.

Sec. 142.0140. HOME AND COMMUNITY SUPPORT SERVICES TRUST FUND AND EMERGENCY ASSISTANCE FUNDS. (a) The home and community support services fund is a trust fund with the comptroller and shall be made available to the department for expenditures without legislative appropriation to make emergency assistance funds available to a home and community support services agency.

(b) A trustee of a home and community support services agency may use the emergency assistance funds only to alleviate an immediate threat to the health and safety of the clients. The use may include payments for:

(1) food;

(2) medication;

(3) sanitation services;

(4) minor repairs of a facility owned, operated, or under control of the agency;

(5) supplies necessary for personal hygiene; or

(6) services necessary for the personal care, health, and safety of the clients.

(c) A court may order the department to disburse emergency assistance funds to a home and community support services agency if the court finds that:

(1) the home and community support services agency has inadequate funds accessible to the trustee for the operation of the home and community support services agency;

(2) an emergency exists that presents an immediate threat to the health and safety of the clients; and

(3) it is in the best interests of the health and safety of the clients that funds are immediately available.

(d) The department shall disburse money from the home and community support services fund as ordered by the court in accordance with department rules.

(e) Any unencumbered amount in the home and community support services fund that exceeds $500,000 at the end of each fiscal year shall be transferred to the credit of the general revenue fund and may be appropriated only to the department for the department's use in administering and enforcing this chapter.

Sec. 142.0141. ADDITIONAL LICENSE FEE. (a) In addition to the license fee required by Section 142.004, the department shall adopt an annual fee to be charged and collected if the amount of the home and community support services fund is less than $500,000. The fee shall be deposited to the credit of the home and community support services fund created by this chapter.

(b) The department may charge and collect a fee under this section more than once each year only if necessary to ensure that the amount in the home and community support services fund is sufficient to make disbursements under Section 142.0140.

(c) The department shall set the fee on the basis of the number of clients served by the home and community support services agency required to pay the fee and in an amount necessary to provide more than $500,000 in the home and community support services fund.

Sec. 142.0142. TRUSTEE FEE AND RELEASE OF MONEY TO TRUSTEE. (a) A home and community support services agency that receives emergency assistance money or trustee fees under this chapter shall reimburse the department for the amounts received, including interest.

(b) Interest on unreimbursed amounts accrues from the date on which the money is disbursed to the home and community support services agency. The rate of interest is the rate determined under Section 304.003, Finance Code, to be applicable to judgments rendered during the month in which the money is disbursed to the home and community support services agency.

(c) The owner of a home and community support services agency when the trustee is appointed is responsible for the reimbursement.

(d) The amount that remains unreimbursed on the date of the first anniversary on which the money is received is delinquent and the Health and Human Services Commission may determine that the home and community support services agency is ineligible for a Medicaid provider contract.

(e) The department shall deposit the reimbursement and interest received under this section to the credit of the home and community support services trust fund.

(f) The attorney general shall institute an action to collect money due under this section at the request of the department. An action under this section must be brought in Travis County or in the county in which the home and community support services agency's designated business premises is located or provides service.

Sec. 142.0143. NOTIFICATION OF CLOSURE. (a) A home and community support services agency that is closing temporarily or permanently, voluntarily or involuntarily, shall notify the clients of the closing and make reasonable efforts to notify in writing each client's nearest relative or the person responsible for the client's support within a reasonable time before the agency closes or services terminate.

(b) If the department, local district attorney, county attorney, city attorney, or a court orders a home and community support services agency to close or services to terminate and the closure is in any other way involuntary, the home and community support services agency shall make the notification, orally or in writing, immediately on receiving notice.

Sec. 142.0144. CRIMINAL PENALTY FOR FAILURE TO NOTIFY. (a) A home and community support services agency commits an offense if the agency knowingly fails to comply with Section 142.0143.

(b) An offense under this section is a Class A misdemeanor.

SECTION 11. Section 247.022, Health and Safety Code, is amended by adding Subsection (d) to read as follows:

(d) Prior to the issuance of any department license, the department shall require that an application be approved by the local health authority or other local official for compliance with municipal ordinances on building standards, fire safety, sanitation, and zoning and other ordinances relating to the public health and safety.

SECTION 12. Subchapter B, Chapter 247, Health and Safety Code, is amended by adding Section 247.0232 to read as follows:

Sec. 247.0232. DISPLAY OF LICENSE. Each assisted living facility shall prominently and conspicuously post for display in a public area of the assisted living facility that is readily available to residents, employees, or visitors:

(1) the license issued under this chapter;

(2) the name and address of the license holder;

(3) the name of the owner or owners, if different from the information provided under Subdivision (2);

(4) the license expiration date;

(5) the types of services authorized to be provided under the license;

(6) a sign prescribed by the department that specifies complaint procedures established under this chapter or rules adopted under this chapter and that specifies how complaints may be registered with the department;

(7) a notice in a form prescribed by the department stating that inspection and related reports are available at the assisted living facility for public inspection and providing the department's toll-free number that may be used to obtain information concerning the facility; and

(8) a concise summary of the most recent inspection report relating to the facility.

SECTION 13. Section 247.027, Health and Safety Code, is amended by amending Subsection (a) and adding Subsection (c) to read as follows:

(a) In addition to the inspection required under Section 247.023(a), the department, local district attorney, county attorney, or city attorney may inspect an assisted living facility annually and may inspect a facility at other reasonable times as necessary to ensure [assure] compliance with this chapter or to ensure compliance with municipal ordinances on building standards, fire safety, sanitation, and zoning and other ordinances relating to the public health and safety.

(c) A license holder or license applicant is considered to have consented to entry and inspection of the assisted living facility by the department, local district attorney, county attorney, or city attorney in accordance with this chapter.

SECTION 14. Sections 247.044(a), (b), (c), and (d), Health and Safety Code, are amended to read as follows:

(a) The department, local district attorney, county attorney, or city attorney may petition a district court for a temporary restraining order to restrain a continuing violation of the standards or licensing requirements provided under this chapter or a violation of a municipal ordinance if the department, local district attorney, county attorney, or city attorney finds that:

(1) the violation creates an immediate threat to the health and safety of the assisted living facility residents; or

(2) the facility is operating without a license.

(b) A district court, on petition of the department, local district attorney, county attorney, or city attorney and on a finding by the court that a person is violating the standards or licensing requirements provided under this chapter or by a municipal ordinance, may by injunction:

(1) prohibit a person from continuing a violation of the standards or licensing requirements provided under this chapter or by municipal ordinance;

(2) restrain the establishment or operation of an assisted living facility without a license issued under this chapter; or

(3) grant any other injunctive relief warranted by the facts.

(c) The department, local district attorney, county attorney, or city attorney may petition a district court for a temporary restraining order to inspect a facility allegedly required to be licensed and operating without a license when admission to the facility cannot be obtained. If it is shown that admission to the facility cannot be obtained, the court shall order the facility to allow the department, local district attorney, county attorney, or city attorney admission to the facility.

(d) The attorney general or local district attorney, county attorney, or city [prosecuting] attorney may institute and conduct a suit authorized by this section [at the request of the department].

SECTION 15. Chapter 247, Health and Safety Code, is amended by adding Subchapter F to read as follows:

SUBCHAPTER F. TRUSTEES OF FACILITIES

Sec. 247.081. FINDINGS AND PURPOSE OF TRUSTEES FOR FACILITIES. (a) The legislature finds that, under some circumstances, closing an assisted living facility for a violation of law or rule may:

(1) have an adverse effect on the assisted living facility's residents and their families; and

(2) result in a lack of readily available financial resources to meet the basic needs of the residents for food, shelter, medication, and personal services.

(b) The purpose of the provisions of this chapter that authorize the appointment of a trustee is to provide for:

(1) the appointment of a trustee to assume operations of the assisted living facility in a manner that emphasizes resident care and reduces resident trauma; and

(2) the use of a fund established by Section 242.0965 to assist a court-appointed trustee in meeting the basic needs of the residents.

Sec. 247.082. TRUSTEE APPOINTMENT BY AGREEMENT. (a) A person who holds a controlling interest in an assisted living facility may request the department to assume operation of the facility through the appointment of a trustee.

(b) After receiving this request, the department may enter into an agreement providing for the appointment of a trustee to take charge of the assisted living facility under conditions both parties consider appropriate if the department considers the appointment desirable.

(c) An agreement under this section must:

(1) specify the terms and conditions of the trustee's appointment and authority; and

(2) preserve the rights of the residents as granted by law.

(d) The agreement terminates at the time:

(1) specified by the parties; or

(2) either party notifies the other in writing that the party is terminating the appointment agreement.

Sec. 247.083. INVOLUNTARY APPOINTMENT OF TRUSTEE. (a) The department may request the attorney general to bring action on behalf of the state, or the local district attorney, county attorney, or city attorney may bring an action, for the appointment of a trustee to operate an assisted living facility if:

(1) the facility is operating without a license;

(2) the department has suspended or revoked the facility's license;

(3) license suspension or revocation procedures against the facility are pending and the department determines that an imminent threat to the health and safety of the residents exists;

(4) the department, local district attorney, county attorney, or city attorney determines that an emergency exists that presents an immediate threat to the health and safety of the residents;

(5) the facility is closing and arrangements for relocation of the residents to other licensed facilities have not been made before closure; or

(6) the facility does not comply with municipal ordinances on building standards, fire safety, sanitation, or zoning or other ordinances that relate to the public health and safety.

(b) A trustee appointed under Subsection (a)(5) has the authority only to ensure an orderly and safe relocation of the facility's residents as quickly as possible.

(c) After a hearing, a court shall appoint as trustee an individual whose background includes assisted living facility services.

(d) An action under this section must be brought in Travis County or the county in which the facility is located.

Sec. 247.084. TRUSTEE FEE AND RELEASE OF MONEY TO TRUSTEE. (a) A trustee appointed by the court under this chapter is entitled to a reasonable fee as determined by the court. In determining the trustee's personal compensation for administration of the assisted living facility, the court shall consider reasonable a rate that is equal to 150 percent of the maximum allowable rate for an owner-administrator of an assisted living facility under the state's Medicaid reimbursement rules, if applicable, or another reasonable rate determined by department rule. The court shall determine the reasonableness of the trustee's personal compensation for other duties. On the motion of any party, the court shall review the reasonableness of the trustee's fees. The court shall reduce the amount if the court determines that the fees are not reasonable.

(b) The trustee may petition the court to order the release to the trustee of any payment owed the trustee for care and services provided to the residents if the payment has been withheld, including a payment withheld by the Health and Human Services Commission.

(c) Payments withheld under Subsection (b) may include payments withheld by a governmental agency or other entity during the appointment of the trustee, including payments:

(1) for Medicaid or insurance;

(2) by a third party; or

(3) for medical expenses incurred by the residents.

Sec. 247.085. REIMBURSEMENT. (a) An assisted living facility that receives emergency assistance money or trustee fees under this chapter shall reimburse the department in the amounts received, including interest.

(b) Interest on unreimbursed amounts accrues from the date on which the money is disbursed to the assisted living facility. The rate of interest is the rate determined under Section 304.003, Finance Code, to be applicable to judgments rendered during the month in which the money is disbursed to the facility.

(c) The owner of the assisted living facility when the trustee is appointed is responsible for the reimbursement.

(d) The amount that remains unreimbursed on the date of the first anniversary on which the money is received is delinquent and the Health and Human Services Commission may determine that the facility is ineligible for a Medicaid provider contract.

(e) The department shall deposit the reimbursement and interest received under this section to the credit of the assisted living facility trust fund under Section 242.0965.

(f) The attorney general shall institute an action to collect money due under this section at the request of the department. An action under this section must be brought in Travis County or in the county in which the assisted living facility is located.

Sec. 247.086. NOTIFICATION OF CLOSURE. (a) An assisted living facility that is closing temporarily or permanently, voluntarily or involuntarily, shall notify the residents of the closing and make reasonable efforts to notify in writing each resident's nearest relative or the person responsible for the resident's support within a reasonable time before the facility closes.

(b) If the department, local district attorney, county attorney, city attorney, or a court orders an assisted living facility to close and the closure is in any other way involuntary, the facility shall make the notification, orally or in writing, immediately on receiving notice.

Sec. 247.087. CRIMINAL PENALTY FOR FAILURE TO NOTIFY. (a) An assisted living facility commits an offense if the facility knowingly fails to comply with Section 247.086.

(b) An offense under this section is a Class A misdemeanor.

SECTION 16. Section 248.022(c), Health and Safety Code, is amended to read as follows:

(c) Prior to the issuance of any department license, the [The] department shall [may] require that an application be approved by the local health authority or other local official for compliance with municipal ordinances on building standards [construction], fire safety [prevention], [and] sanitation, and zoning and other ordinances relating to the public health and safety.

SECTION 17. Section 248.025(b), Health and Safety Code, is amended to read as follows:

(b) Each special care facility shall prominently and conspicuously post for display in a public area of the special care facility that is readily available to residents, employees, or visitors:

(1) the license issued under this chapter;

(2) the name and address of the license holder;

(3) the name of the owner or owners, if different from the information provided under Subdivision (2);

(4) the license expiration date;

(5) the types of services authorized to be provided under the license;

(6) a sign prescribed by the department that specifies complaint procedures established under this chapter or rules adopted under this chapter and that specifies how complaints may be registered with the department;

(7) a notice in a form prescribed by the department stating that inspection and related reports are available at the special care facilities for public inspection and providing the department's toll-free number that may be used to obtain information concerning the facility; and

(8) a concise summary of the most recent inspection report relating to the facility [A special care facility shall post in plain sight the license issued under this chapter].

SECTION 18. Section 248.028(a), Health and Safety Code, is amended to read as follows:

(a) The department, local district attorney, county attorney, or city attorney may inspect a special care facility and its records annually or at reasonable times as necessary to ensure compliance with this chapter and ensure compliance with municipal ordinances on building standards, fire safety, sanitation, and zoning and other municipal ordinances relating to the public health and safety. A license holder or an applicant for a license is considered to have consented to entry and inspection of the facility by the department, local district attorney, county attorney, or city attorney in accordance with this chapter.

SECTION 19. Subchapter C, Chapter 248, Health and Safety Code, is amended by adding Sections 248.0525 and 248.0526 to read as follows:

Sec. 248.0525. TEMPORARY RESTRAINING ORDER. The department, local district attorney, county attorney, or city attorney may petition a district court for a temporary restraining order to restrain a continuing violation of the standards or licensing requirements provided under this chapter or a violation of a municipal ordinance if the department, local district attorney, county attorney, or city attorney finds that:

(1) the violation creates an immediate threat to the health and safety of the residents of the special care facility; or

(2) the facility is operating without a license.

Sec. 248.0526. MUNICIPAL ENFORCEMENT OF EMERGENCY CLOSURE. The governing body of a municipality by ordinance may:

(1) prohibit a person who does not hold a license issued under this chapter from establishing or operating a special care facility within the municipality; and

(2) establish a procedure for emergency closure of a facility under the following circumstances:

(A) the facility is established or operating in violation of Section 248.021; and

(B) the continued operation of the facility creates an immediate threat to the health and safety of a resident of the facility.

SECTION 20. Section 248.053, Health and Safety Code, is amended to read as follows:

Sec. 248.053. INJUNCTION. (a) The [department may request that the] attorney general, local district attorney, county attorney, or city attorney may petition a district court to restrain a license holder or other person from continuing to violate this chapter or any rule adopted by the board under this chapter or by municipal ordinance. Venue for a suit for injunctive relief is in Travis County or in the county in which the special care facility is located.

(b) On application for injunctive relief and a finding that a license holder or other person has violated this chapter, [or] board rules, or a municipal ordinance, the district court shall grant the injunctive relief that the facts warrant.

SECTION 21. Subchapter C, Chapter 248, Health and Safety Code, is amended by adding Sections 248.056 through 248.064 to read as follows:

Sec. 248.056. FINDINGS AND PURPOSE OF TRUSTEES FOR FACILITIES. (a) The legislature finds that, under some circumstances, closing a special care facility for violation of the law or rule may:

(1) have an adverse effect on the special care facility's residents and their families; and

(2) result in a lack of readily available financial resources to meet the basic needs of the residents for food, shelter, medication, and personal services.

(b) The purpose of the provisions of this chapter that authorize the appointment of a trustee is to provide for:

(1) the appointment of a trustee to assume operations of the special care facility in a manner that emphasizes resident care and reduces resident trauma; and

(2) the use of a fund to assist a court-appointed trustee with meeting the basic needs of the residents.

Sec. 248.057. TRUSTEE APPOINTMENT BY AGREEMENT. (a) A person who holds controlling interest in a special care facility may request the department to assume operation of the special care facility through the appointment of a trustee.

(b) After receiving this request, the department may enter into an agreement providing for the appointment of a trustee to take charge of the special care facility under conditions both parties consider appropriate if the department considers the appointment desirable.

(c) An agreement under this section must:

(1) specify the terms and conditions of the trustee's appointment and authority; and

(2) preserve the rights of the residents as granted by law.

(d) The agreement terminates at the time:

(1) specified by the parties; or

(2) either party notifies the other in writing that the party is terminating the appointment agreement.

Sec. 248.058. INVOLUNTARY APPOINTMENT OF TRUSTEE. (a) The department may request the attorney general to bring an action on behalf of the state, or the local district attorney, county attorney, or city attorney may bring an action, for the appointment of a trustee to operate a special care facility if:

(1) the facility is operating without a license;

(2) the department has suspended or revoked the facility's license;

(3) license suspension or revocation procedures against the facility are pending and the department determines that an imminent threat to the health and safety of the residents exists;

(4) the department, local district attorney, county attorney, or city attorney determines that an emergency exists that presents an immediate threat to the health and safety of the residents;

(5) the facility is closing and arrangements for relocation of the residents to other licensed special care facilities have not been made before closure; or

(6) the facility does not comply with municipal ordinances on building standards, fire safety, sanitation, or zoning or other ordinances that relate to the public health and safety.

(b) A trustee appointed under Subsection (a)(5) has the authority only to ensure an orderly and safe relocation of the facility's residents as quickly as possible.

(c) After a hearing, a court shall appoint as trustee an individual or entity whose background includes special care facilities.

(d) An action under this section must be brought in Travis County or the county in which the special care facility is located.

Sec. 248.059. TRUSTEE FEE AND RELEASE OF MONEY TO TRUSTEE. (a) A trustee appointed by the court under this chapter is entitled to a reasonable fee as determined by the court. In determining the trustee's personal compensation for administration of the special care facility, the court shall consider reasonable a rate that is equal to 150 percent of the maximum allowable rate for an owner-administrator of a special care facility under the state's Medicaid reimbursement rules, if applicable, or another reasonable rate determined by department rule. The court shall determine the reasonableness of the trustee's personal compensation for other duties. On the motion of any party, the court shall review the reasonableness of the trustee's fees. The court shall reduce the amount if the court determines that the fees are not reasonable.

(b) The trustee may petition the court to order the release to the trustee of any payment owed the trustee for care and services provided to the residents if the payment has been withheld, including a payment withheld by the Health and Human Services Commission.

(c) Payments withheld under Subsection (b) may include payments withheld by a governmental agency or other entity during the appointment of the trustee, including payments:

(1) for Medicaid or insurance;

(2) by a third party; or

(3) for medical expenses incurred by the residents.

Sec. 248.060. SPECIAL CARE FACILITY TRUST FUND AND EMERGENCY ASSISTANCE FUNDS. (a) The special care facility fund is a trust fund with the comptroller and shall be made available to the department for expenditures without legislative appropriation to make emergency assistance funds available to a special care facility.

(b) A trustee of a special care facility may use the emergency assistance funds only to alleviate an immediate threat to the health and safety of the residents. The use may include payments for:

(1) food;

(2) medication;

(3) sanitation services;

(4) minor repairs;

(5) supplies necessary for personal hygiene; and

(6) services necessary for the personal care, health, and safety of the residents.

(c) A court may order the department to disburse emergency assistance funds to a special care facility if the court finds that:

(1) the special care facility has inadequate funds accessible to the trustee for the operation of the special care facility;

(2) an emergency exists that presents an immediate threat to the health and safety of the residents; and

(3) it is in the best interests of the health and safety of the residents that funds are immediately available.

(d) The department shall disburse money from the special care facility fund as ordered by the court in accordance with department rules.

(e) Any unencumbered amount in the special care facility fund that exceeds $500,000 at the end of each fiscal year shall be transferred to the credit of the general revenue fund and may be appropriated only to the department for the department's use in administering and enforcing this chapter.

Sec. 248.061. ADDITIONAL LICENSE FEE. (a) In addition to the license fee required by Section 248.022, the department shall adopt an annual fee to be charged and collected if the amount of the special care facility fund is less than $500,000. The fee shall be deposited to the credit of the special care facility fund created by this chapter.

(b) The department may charge and collect a fee under this section more than once each year only if necessary to ensure that the amount in the special care facility fund is sufficient to make disbursements under Section 248.060.

(c) The department shall set the fee on the basis of the number of beds in a special care facility required to pay the fee and in an amount necessary to provide more than $500,000 in the special care facility fund.

Sec. 248.062. REIMBURSEMENT. (a) A special care facility that receives emergency assistance money or trustee fees under this chapter shall reimburse the department for the amounts received, including interest.

(b) Interest on unreimbursed amounts accrues from the date on which the money is disbursed to the special care facility. The rate of interest is the rate determined under Section 304.003, Finance Code, to be applicable to judgments rendered during the month in which the money is disbursed to the facility.

(c) The owner of the special care facility when the trustee is appointed is responsible for the reimbursement.

(d) The amount that remains unreimbursed on the date of the first anniversary on which the money is received is delinquent and the Health and Human Services Commission may determine that the facility is ineligible for a Medicaid provider contract.

(e) The department shall deposit the reimbursement and interest received under this section to the credit of the special care facility fund.

(f) The attorney general shall institute an action to collect money due under this section at the request of the department. An action under this section must be brought in Travis County or in the county in which the special care facility is located.

Sec. 248.063. NOTIFICATION OF CLOSURE. (a) A special care facility that is closing temporarily or permanently, voluntarily or involuntarily, shall notify the residents of the closing and make reasonable efforts to notify in writing each resident's nearest relative or the person responsible for the resident's support within a reasonable time before the facility closes.

(b) If the department, local district attorney, county attorney, city attorney, or a court orders a special care facility to close and the closure is in any other way involuntary, the facility shall make the notification, orally or in writing, immediately on receiving notice.

Sec. 248.064. CRIMINAL PENALTY FOR FAILURE TO NOTIFY. (a) A special care facility commits an offense if the facility knowingly fails to comply with Section 248.063.

(b) An offense under this section is a Class A misdemeanor.

SECTION 22. Section 248.109(b), Health and Safety Code, is amended to read as follows:

(b) The attorney general, local district attorney, county attorney, or city attorney may sue to collect the penalty.

SECTION 23. Section 249.003, Health and Safety Code, is amended by adding Subsection (e) to read as follows:

(e) The department shall require that an application be approved by the local health authority or other local official for compliance with municipal ordinances on building standards, fire safety, sanitation, and zoning and other ordinances relating to the public health and safety, prior to the issuance of any department license.

SECTION 24. Chapter 249, Health and Safety Code, is amended by adding Section 249.0031 to read as follows:

Sec. 249.0031. DISPLAY OF LICENSE. Each maternity home shall prominently and conspicuously post for display in a public area of the maternity home that is readily available to patients, employees, or visitors:

(1) the license issued under this chapter;

(2) the name and address of the license holder;

(3) the name of the owner or owners, if different from the information provided under Subdivision (2);

(4) the license expiration date;

(5) the types of services authorized to be provided under the license;

(6) a sign prescribed by the department that specifies complaint procedures established under this chapter or rules adopted under this chapter and that specifies how complaints may be registered with the department;

(7) a notice in a form prescribed by the department stating that inspection and related reports are available at the maternity home for public inspection and providing the department's toll-free number that may be used to obtain information concerning the facility; and

(8) a concise summary of the most recent inspection report relating to the facility.

SECTION 25. Section 249.004, Health and Safety Code, is amended to read as follows:

Sec. 249.004. INSPECTIONS. (a) The department, local district attorney, county attorney, or city attorney may inspect a maternity home annually or at reasonable times as necessary to ensure [assure] compliance with this chapter and compliance with municipal ordinances on building standards, fire safety, sanitation, and zoning and other ordinances relating to public health and safety.

(b) A license holder or a license applicant is considered to have consented to entry and inspection of the maternity home by the department, local district attorney, county attorney, or city attorney in accordance with this chapter.

SECTION 26. Sections 249.010(a), (b), and (c), Health and Safety Code, are amended to read as follows:

(a) The department, local district attorney, county attorney, or city attorney may petition a district court for a temporary restraining order to restrain a continuing violation of the standards or licensing requirements provided under this chapter or violation of a municipal ordinance if the department, local district attorney, county attorney, or city attorney finds that the violation creates an immediate threat to the health and safety of the patients of a maternity home or the maternity home is operating without a license.

(b) A district court, on petition of the department, local district attorney, county attorney, or city attorney, and on a finding by the court that a person is violating the standards or licensing requirements provided under this chapter or violating a municipal ordinance, may by injunction:

(1) prohibit a person from continuing a violation of the standards or licensing requirements provided under this chapter or by a municipal ordinance;

(2) restrain or prevent the establishment or operation of a maternity home without a license issued under this chapter; or

(3) grant any other injunctive relief warranted by the facts.

(c) The attorney general, local district attorney, county attorney, or city attorney may [shall] institute and conduct a suit authorized by this section [at the request of the department].

SECTION 27. Chapter 249, Health and Safety Code, is amended by adding Sections 249.013 through 249.022 to read as follows:

Sec. 249.013. MUNICIPAL ENFORCEMENT OF EMERGENCY CLOSURE. The governing body of a municipality by ordinance may:

(1) prohibit a person who does not hold a license issued under this chapter from establishing or operating a maternity home within the municipality; and

(2) establish a procedure for emergency closure of a maternity home under the following circumstances:

(A) the maternity home is established or operating in violation of Section 249.002; and

(B) the continued operation of the maternity home creates an immediate threat to the health and safety of a resident of the maternity home.

Sec. 249.014. FINDINGS AND PURPOSE OF TRUSTEES FOR FACILITIES. (a) The legislature finds that, under some circumstances, closing a maternity home for a violation of law or rule may:

(1) have an adverse effect on the maternity home's residents and their families; and

(2) result in a lack of readily available financial resources to meet the basic needs of the residents for food, shelter, medication, and personal services.

(b) The purpose of the provisions of this chapter authorizing appointment of a trustee is to provide for:

(1) the appointment of a trustee to assume operations of the maternity home in a manner that emphasizes patient care and reduces resident trauma; and

(2) the use of a fund to assist a court-appointed trustee in meeting the basic needs of the patients.

Sec. 249.015. TRUSTEE APPOINTMENT BY AGREEMENT. (a) A person who holds controlling interest in a maternity home may request the department to assume operation of the maternity home through the appointment of a trustee.

(b) After receiving this request, the department may enter into an agreement providing for the appointment of a trustee to take charge of the maternity home under conditions both parties consider appropriate if the department considers the appointment desirable.

(c) An agreement under this section must:

(1) specify the terms and conditions of the trustee's appointment and authority; and

(2) preserve the rights of the patients as granted by law.

(d) The agreement terminates at the time:

(1) specified by the parties; or

(2) either party notifies the other in writing that the party is terminating the appointment agreement.

Sec. 249.016. INVOLUNTARY APPOINTMENT. (a) The department may request the attorney general to bring an action on behalf of the state, or the local district attorney, county attorney, or city attorney may bring an action, for the appointment of a trustee to operate a maternity home if:

(1) the maternity home is operating without a license;

(2) the department has suspended or revoked the maternity home's license;

(3) license suspension or revocation procedures against the maternity home are pending and the department determines that an imminent threat to the health and safety of the patients exists;

(4) the department, local district attorney, county attorney, or city attorney determines that an emergency exists that presents an immediate threat to the health and safety of the patients;

(5) the maternity home is closing and arrangements for relocation of the patients to other licensed maternity homes have not been made before closure; or

(6) the maternity home does not comply with municipal ordinances on building standards, fire safety, sanitation, or zoning or other ordinances that relate to the public health and safety.

(b) A trustee appointed under Subsection (a)(5) has the authority only to ensure an orderly and safe relocation of the maternity home's patients as quickly as possible.

(c) After a hearing, a court shall appoint as trustee an individual whose background includes maternity services.

(d) An action under this section must be brought in Travis County or the county in which the maternity home is located.

Sec. 249.017. TRUSTEE FEE AND RELEASE OF MONEY TO TRUSTEE. (a) A trustee appointed by the court under this chapter is entitled to a reasonable fee as determined by the court. In determining the trustee's personal compensation for administration of a maternity home, the court shall consider reasonable a rate that is equal to 150 percent of the maximum allowable rate for an owner-administrator of a maternity home under the state's Medicaid reimbursement rules, if applicable, or another reasonable rate determined by department rule. The court shall determine the reasonableness of the trustee's personal compensation for other duties. On the motion of any party, the court shall review the reasonableness of the trustee's fees. The court shall reduce the amount if the court determines that the fees are not reasonable.

(b) The trustee may petition the court to order the release to the trustee of any payment owed the trustee for care and services provided to the patients if the payment has been withheld, including a payment withheld by the Health and Human Services Commission.

(c) Payments withheld under Subsection (b) may include payments withheld by a governmental agency or other entity during the appointment of the trustee, such as payments:

(1) for Medicaid or insurance;

(2) by a third party; or

(3) for medical expenses incurred by the patients.

Sec. 249.018. MATERNITY HOME TRUST FUND AND EMERGENCY ASSISTANCE FUND. (a) The maternity home fund is a trust fund with the comptroller and shall be made available to the department for expenditures without legislative appropriation to make emergency assistance funds available to a maternity home.

(b) A trustee of a maternity home may use the emergency assistance funds only to alleviate an immediate threat to the health and safety of the patients. The use may include payments for:

(1) food;

(2) medication;

(3) sanitation services;

(4) minor repairs;

(5) supplies necessary for personal hygiene; and

(6) services necessary for the personal care, health, and safety of the patients.

(c) A court may order the department to disburse emergency assistance funds to a maternity home if the court finds that:

(1) the maternity home has inadequate funds accessible to the trustee for the operation of the maternity home;

(2) an emergency exists that presents an immediate threat to the health and safety of the patients; and

(3) it is in the best interests of the health and safety of the patients that funds are immediately available.

(d) The department shall disburse money from the maternity home fund as ordered by the court in accordance with department rules.

(e) Any unencumbered amount in the maternity home fund that exceeds $500,000 at the end of each fiscal year shall be transferred to the credit of the general revenue fund and may be appropriated only to the department for the department's use in administering and enforcing this chapter.

Sec. 249.019. ADDITIONAL LICENSE FEE. (a) In addition to the license fee required by Section 249.003, the department shall adopt an annual fee to be charged and collected if the amount of the maternity home fund is less than $500,000. The fee shall be deposited to the credit of the maternity home fund created by this chapter.

(b) The department may charge and collect a fee under this section more than once each year only if necessary to ensure that the amount in the maternity home fund is sufficient to make disbursements under Section 249.018.

(c) The department shall set the fee on the basis of the number of beds in a maternity home required to pay the fee and in an amount necessary to provide more than $500,000 in the maternity home fund.

Sec. 249.020. REIMBURSEMENT. (a) A maternity home that receives emergency assistance money or trustee fees under this chapter shall reimburse the department for the amounts received, including interest.

(b) Interest on unreimbursed amounts accrues from the date on which the money is disbursed to the maternity home. The rate of interest is the rate determined under Section 304.003, Finance Code, to be applicable to judgments rendered during the month in which the money is disbursed to the maternity home.

(c) The owner of the maternity home when the trustee is appointed is responsible for the reimbursement.

(d) The amount that remains unreimbursed on the date of the first anniversary on which the money is received is delinquent and the Health and Human Services Commission may determine that the maternity home is ineligible for a Medicaid provider contract.

(e) The department shall deposit the reimbursement and interest received under this section to the credit of the maternity home fund.

(f) The attorney general shall institute an action to collect money due under this section at the request of the department. An action under this section must be brought in Travis County or in the county in which the maternity home is located.

Sec. 249.021. NOTIFICATION OF CLOSURE. (a) A maternity home that is closing temporarily or permanently, voluntarily or involuntarily, shall notify the patients of the closing and make reasonable efforts to notify in writing each patient's nearest relative or the person responsible for the patient's support within a reasonable time before the home closes.

(b) If the department, local district attorney, county attorney, city attorney, or a court orders a maternity home to close and the closure is in any other way involuntary, the maternity home shall make the notification, orally or in writing, immediately on receiving notice.

Sec. 249.022. CRIMINAL PENALTY FOR FAILURE TO NOTIFY. (a) A maternity home commits an offense if the home knowingly fails to comply with Section 249.021.

(b) An offense under this section is a Class A misdemeanor.

SECTION 28. Section 252.032, Health and Safety Code, is amended by adding Subsection (c) to read as follows:

(c) The department shall require that an application be approved by the local health authority or other local official for compliance with municipal ordinances on building standards, fire safety, sanitation, and zoning and other ordinances relating to the public health and safety, prior to the issuance of any department license.

SECTION 29. Subchapter B, Chapter 252, Health and Safety Code, is amended by adding Section 252.0335 to read as follows:

Sec. 252.0335. DISPLAY OF LICENSE. A license issued under this chapter shall be displayed in a conspicuous place in the intermediate care facility for the mentally retarded and must show:

(1) the license issued under this chapter;

(2) the name and address of the license holder;

(3) the name of the owner or owners, if different from the information provided under Subdivision (2);

(4) the license expiration date;

(5) the types of services authorized to be provided under the license;

(6) a sign prescribed by the department that specifies complaint procedures established by this chapter or rules adopted under this chapter and that specifies how complaints may be registered with the department;

(7) a notice in a form prescribed by the department stating that inspection and related reports are available at the facility for public inspection and providing the department's toll-free number that may be used to obtain information concerning the facility; and

(8) a concise summary of the most recent inspection report relating to the services.

SECTION 30. Sections 252.040(a) and (c), Health and Safety Code, are amended to read as follows:

(a) The department or the department's designee may make any inspection, survey, or investigation that it considers necessary and may enter the premises of a facility at reasonable times to make an inspection, survey, or investigation in accordance with board rules. A local official may inspect an intermediate care facility for compliance with municipal ordinances on building standards, fire safety, sanitation, and zoning and other ordinances relating to public health and safety.

(c) A license holder or an applicant for a license is considered to have consented to entry and inspection of the facility by a representative of the department or a local official in accordance with this chapter.

SECTION 31. Subchapter C, Chapter 252, Health and Safety Code, is amended by adding Section 252.0615 to read as follows:

Sec. 252.0615. MUNICIPAL ENFORCEMENT OF EMERGENCY CLOSURE. The governing body of a municipality by ordinance may:

(1) prohibit a person who does not hold a license under this chapter from establishing or operating an intermediate care facility for the mentally retarded within the municipality; and

(2) establish a procedure for emergency closure of the intermediate care facility for the mentally retarded under the following circumstances:

(A) the facility is established or operating in violation of Section 252.031; and

(B) the continued operation of the facility creates an immediate threat to the health and safety of a resident of the facility.

SECTION 32. Sections 252.062(a), (b), and (c), Health and Safety Code, are amended to read as follows:

(a) The department, the local district attorney, county attorney, or city attorney may petition a district court for a temporary restraining order to restrain a person from continuing a violation of the standards prescribed by this chapter or a violation of a municipal ordinance if the department, the local district attorney, county attorney, or city attorney finds that the violation creates an immediate threat to the health and safety of the facility's residents.

(b) A district court, on petition of the department, local district attorney, county attorney, or city attorney, may by injunction:

(1) prohibit a person from continuing a violation of the standards or licensing requirements prescribed by this chapter or by a municipal ordinance;

(2) restrain or prevent the establishment, conduct, management, or operation of a facility without a license issued under this chapter; or

(3) grant the injunctive relief warranted by the facts on a finding by the court that a person is violating the standards or licensing requirements prescribed by this chapter or by a municipal ordinance.

(c) The attorney general, local district attorney, county attorney, or city attorney may [on request by the department, shall] bring [and conduct on behalf of the state] a suit authorized by this section.

SECTION 33. Section 252.070, Health and Safety Code, is amended to read as follows:

Sec. 252.070. EXPENSES AND COSTS FOR COLLECTION OF CIVIL OR ADMINISTRATIVE PENALTY. (a) If the attorney general, local district attorney, county attorney, or city attorney brings an action against a person under Section 252.062 or 252.064 or to enforce an administrative penalty assessed under Section 252.065 and an injunction is granted against the person or the person is found liable for a civil or administrative penalty, the attorney general, local district attorney, county attorney, or city attorney may recover, on behalf of state or local government, as applicable [the attorney general and the department], reasonable expenses and costs.

(b) For purposes of this section, reasonable expenses and costs include expenses incurred by the department and the attorney general, local district attorney, county attorney, or city attorney in the investigation, initiation, and prosecution of an action, including reasonable investigative costs, attorney's fees, witness fees, and deposition expenses.

SECTION 34. Section 252.093(a), Health and Safety Code, is amended to read as follows:

(a) The department may request the attorney general to bring an action on behalf of the state, or the local district attorney, county attorney, or city attorney may bring an action, for the appointment of a trustee to operate a facility if:

(1) the facility is operating without a license;

(2) the department has suspended or revoked the facility's license;

(3) license suspension or revocation procedures against the facility are pending and the department determines that an imminent threat to the health and safety of the residents exists;

(4) the department, local district attorney, county attorney, or city attorney determines that an emergency exists that presents an immediate threat to the health and safety of the residents; or

(5) the facility is closing and arrangements for relocation of the residents to other licensed facilities have not been made before closure.

SECTION 35. Section 252.094(a), Health and Safety Code, is amended to read as follows:

(a) A trustee appointed under this subchapter is entitled to a reasonable fee as determined by the court. In determining the trustee's personal compensation for administration of the intermediate care facility for the mentally retarded, the court shall consider reasonable a rate that is equal to 150 percent of the maximum allowable rate for an owner-administrator of a facility under the state's Medicaid reimbursement rules, if applicable, or a reasonable rate determined under department rule. The court shall determine the reasonableness of the trustee's personal compensation for other duties. On the motion of any party, the court shall review the reasonableness of the trustee's fees. The court shall reduce the amount if the court determines that the fees are not reasonable.

SECTION 36. Section 252.097(b), Health and Safety Code, is amended to read as follows:

(b) If the department, local district attorney, county attorney, city attorney, or a court orders a facility to close or the facility's closure is in any other way involuntary, the facility shall make the notification, orally or in writing, immediately on receiving notice of the closing.

SECTION 37. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.