Texas House Bill HB4271 Introduced / Bill

                    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.