Texas Health And Safety Code Title 4, Chapter 246 - Continuing Care Facilities

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 246.001 - Short Title
  This chapter may be cited as the Texas Continuing Care Facility Disclosure and Rehabilitation Act. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept....
• Texas Section 246.002 - Definitions
  In this chapter: (1) "Board" means the State Board of Insurance. (2) "Commissioner" means the commissioner of the State Board of Insurance. (3) Redesignated by...
• Texas Section 246.0025 - Definition Of Continuing Care
  (a) In this chapter, "continuing care" means the furnishing of a living unit, together with personal care services, nursing services, medical services, or other health-related...
• Texas Section 246.003 - Board Powers And Duties
  (a) The board shall regulate providers as provided by this chapter. (b) The board may adopt rules and take other action as necessary to administer...
• Texas Section 246.004 - Rights Of Residents
  A resident receiving care in a portion of a facility licensed to provide nursing home care, personal care, or custodial care is entitled to all...
• Texas Section 246.005 - Licensing For Certain Tax Purposes
  A facility regulated under this chapter is licensed for purposes of Section 151.314, Tax Code. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept....
• Texas Section 246.006 - Quality Of Care
  The commissioner may not regulate or in any manner inquire into the quality of care provided in a facility. Acts 1989, 71st Leg., ch. 678,...

SUBCHAPTER B CERTIFICATE OF AUTHORITY

• Texas Section 246.007 - Reduction Of Fees
  The commissioner shall reduce the annual filing fees under this chapter if the cumulative amount of the fees exceeds the actual cost of regulation. Acts...
• Texas Section 246.021 - Certificate Of Authority Required
  Unless a provider holds a certificate of authority issued under this subchapter, the provider may not: (1) acquire a facility; (2) enter into a continuing...
• Texas Section 246.022 - Application For And Issuance Of Certificate Of Authority
  (a) The commissioner shall adopt rules stating the information an applicant for a certificate of authority must submit. (b) On receiving an application for a...
• Texas Section 246.023 - Mandatory Issuance Of Certificate Of Authority To Certain Facilities
  (a) The commissioner shall issue a certificate of authority for a facility that: (1) was occupied by at least one resident on September 1, 1987;...
• Texas Section 246.024 - Transfer Of Certificate Of Authority
  A certificate of authority may not be transferred without the prior approval of the commissioner. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept....
• Texas Section 246.025 - Suspension Or Revocation Of Certificate Of Authority
  The commissioner may suspend or revoke a provider's certificate of authority if the provider: (1) draws on its entrance fee escrow in an amount greater...
• Texas Section 246.026 - Management By Others
  A holder of a certificate of authority may not contract for management of the facility unless the commissioner is notified of the contract. Acts 1989,...

SUBCHAPTER C CONTINUING CARE CONTRACTS AND DISCLOSURE STATEMENTS

• Texas Section 246.027 - Certificate Of Authority Fees
  (a) Except as provided by Subsection (b), a facility that files an application for a certificate of authority must pay to the commissioner a fee...
• Texas Section 246.041 - Precontractual Recording Requirements
  (a) A provider shall file with the board a current disclosure statement that meets the requirements of this subchapter and shall file copies of the...
• Texas Section 246.042 - Delivery Of Disclosure Statement
  (a) A provider who has not been issued a certificate of authority under Subchapter B must deliver a disclosure statement to any person from whom...
• Texas Section 246.043 - Cover Page Of Disclosure Statement
  The cover page of a disclosure statement must state: (1) the date of the statement in a prominent location and in type that is boldfaced,...
• Texas Section 246.044 - Contents Of Disclosure Statement: Provider
  (a) The disclosure statement must include the name and business address of the provider and a statement of whether the provider is a partnership, corporation,...
• Texas Section 246.045 - Contents Of Disclosure Statement: Third Party Management
  If a person, other than an individual directly employed by the provider, is to be the day-to-day manager of a facility, the disclosure statement must...
• Texas Section 246.046 - Contents Of Disclosure Statement: Affiliation With Nonprofit Organization
  The disclosure statement must state whether the provider is affiliated with a religious, charitable, or other nonprofit organization, and if so, the statement must: (1)...
• Texas Section 246.047 - Contents Of Disclosure Statement: Physical Property
  (a) The disclosure statement must provide the location and a description of the proposed or existing physical property of the facility. (b) If the physical...
• Texas Section 246.048 - Contents Of Disclosure Statement: Contracts And Fees
  The disclosure statement must describe: (1) the services provided under a continuing care contract, including: (A) the extent to which medical care is furnished; and...
• Texas Section 246.049 - Contents Of Disclosure Statement: Change Of Circumstances
  The disclosure statement for a continuing care contract to provide continuing care in a living unit of a facility must state: (1) the policy of...
• Texas Section 246.050 - Contents Of Disclosure Statement: Financial Information
  (a) The disclosure statement must: (1) describe any provisions made or to be made to provide reserve funding or security to enable the provider to...
• Texas Section 246.051 - Contents Of Disclosure Statement: Annual Income Statements
  The disclosure statement must contain estimated annual income statements for the facility for at least five fiscal years, including: (1) anticipated earning on any cash...
• Texas Section 246.052 - Contents Of Disclosure Statement: Anticipated Source And Application Of Funds
  If a facility has not begun operation, the disclosure statement must include a statement of the anticipated source and application of the funds to be...
• Texas Section 246.053 - Standard Contract Form
  (a) A copy of the standard contract form used by a provider must be attached as an exhibit to each disclosure statement. (b) The standard...
• Texas Section 246.054 - Annual Disclosure Statement Revision
  (a) A provider shall file a revised disclosure statement with the board not later than the 120th day after the date on which the provider's...
• Texas Section 246.055 - Advertisement In Conflict With Disclosures
  A provider may not engage in any type of advertisement for a continuing care contract or facility if the advertisement contains a statement or representation...
• Texas Section 246.056 - Rescission Of Contract; Required Language
  (a) A person who executes a continuing care contract with a provider may rescind the contract at any time before the later of midnight of...
• Texas Section 246.057 - Cancellation Of Contract: Death Or Incapacity Before Occupancy
  (a) A continuing care contract to provide continuing care in a living unit in a facility is canceled if the resident: (1) dies before occupying...

SUBCHAPTER D ENTRANCE FEE AND RESERVE FUND ESCROW ACCOUNTS

• Texas Section 246.058 - Disclosure Statement Fees
  A facility that files a disclosure statement under Section 246.041 or 246.054 shall pay to the commissioner: (1) a filing fee of $500; and (2)...
• Texas Section 246.071 - Entrance Fee Escrow Account; Escrow Agent
  (a) Before a provider may accept the payment of a deposit made under a reservation agreement or any portion of an entrance fee, the provider...
• Texas Section 246.072 - Return Of Deposits; Release Or Return Of Entrance Fee
  (a) On a written request from or on behalf of the provider or a prospective resident, the escrow agent shall return the amount on deposit...
• Texas Section 246.073 - Release To The Provider
  (a) Except as provided by Subsection (b), an escrow agent shall release an entrance fee to the provider if: (1) a minimum of 50 percent...
• Texas Section 246.0735 - Phase-in Facilities
  The commissioner may create requirements for escrow release different from those under Section 246.073 for facilities that obtain a certificate of authority issued under this...
• Texas Section 246.0736 - Continuing Release Of Escrow
  (a) After the initial release of an entrance fee by an escrow agent for a specific facility, the commissioner shall authorize an escrow agent to...
• Texas Section 246.0737 - Care In Residence
  The commissioner by rule shall establish requirements for escrow release different from those under Section 246.073 for money received as an entrance fee in connection...
• Texas Section 246.074 - Return Of Entrance Fee
  The escrow agent shall return an entrance fee to the person who paid it if the fee is not released to the provider or placed...
• Texas Section 246.075 - Escrow Of Application Fee Not Required
  This subchapter does not require the escrow of any nonrefundable portion of a deposit or entrance fee that: (1) does not exceed an amount equal...
• Texas Section 246.076 - Interest Accrued On Entrance Fee Funds
  Unless otherwise provided in a continuing care contract, interest that accrues on funds held in an entrance fee escrow account is the property of the...
• Texas Section 246.077 - Reserve Fund Escrow
  (a) When a facility is first occupied by a resident, the provider shall establish and maintain in an escrow account with a bank or trust...
• Texas Section 246.078 - Release Of Reserve Fund Escrow
  (a) The escrow agent may release an amount equal to not more than one-twelfth of the loan reserve fund required by Section 246.077 if the...
• Texas Section 246.079 - Transition
  (a) A provider who operates a facility that existed on September 1, 1987, must comply with the filing requirements imposed under Section 246.041 and the...

SUBCHAPTER E SUPERVISION, REHABILITATION, AND LIQUIDATION

• Texas Section 246.080 - Applicability
  Sections 246.071 through 246.076 do not apply to a facility that on September 1, 1987, was completed and occupied by at least one person. Added...
• Texas Section 246.091 - Supervision By Commissioner
  (a) The commissioner may place a provider or facility under supervision if: (1) the provider draws on the provider's entrance fee escrow in an amount...
• Texas Section 246.092 - Application For Court Order For Rehabilitation Or Liquidation
  (a) The commissioner shall request the attorney general to apply to a district court of this state, or to the federal bankruptcy court that has...
• Texas Section 246.093 - Order To Rehabilitate
  An order to rehabilitate a facility must direct the trustee to: (1) take possession of the provider's property in order to conduct the business, including...
• Texas Section 246.094 - Order To Liquidate
  (a) If the trustee determines that further efforts to rehabilitate the provider would be impractical or useless, the trustee may apply to the court that...
• Texas Section 246.095 - Bond
  A court may refuse to make or may vacate an order to rehabilitate under this subchapter if the provider posts a bond that is: (1)...
• Texas Section 246.096 - Termination Of Rehabilitation
  (a) A court may terminate a rehabilitation and order return of a facility and its assets and affairs to the management of the provider if...

SUBCHAPTER F ENFORCEMENT

• Texas Section 246.097 - Payment Of Trustee
  The reasonable costs, expenses, and fees of the trustee are payable from the assets of the facility. Acts 1989, 71st Leg., ch. 678, Sec. 1,...
• Texas Section 246.111 - Lien
  (a) To secure the obligations of the provider under any continuing care contract, a lien attaches on the date a resident first occupies a facility...
• Texas Section 246.112 - Investigations
  The commissioner may conduct an examination or investigation as necessary to: (1) determine whether a person has violated or is about to violate this chapter;...
• Texas Section 246.113 - Production Of Evidence
  (a) In an investigation or proceeding under this chapter, the board may: (1) require or allow a person to file a written statement regarding any...
• Texas Section 246.114 - Actuarial Review
  (a) This section applies only to a facility whose contracts offer future guarantees of long-term nursing care that develop current actuarial liabilities. (b) A facility...
• Texas Section 246.115 - Cease And Desist Orders; Injunctions
  (a) The board may request that the attorney general bring an action to prohibit a person from engaging in an act or practice and to...
• Texas Section 246.116 - Criminal Penalty
  (a) A person commits an offense if the person intentionally violates this chapter. (b) An offense under this section is a Class A misdemeanor. Acts...
• Texas Section 246.117 - Civil Liability
  (a) A provider who makes a continuing care contract without complying with the disclosure statement requirement under Subchapter C, or who makes a continuing care...

Last modified: September 28, 2016