(a) In this section:
(1) “Consumer-directed service option” has the meaning assigned by § 531.051.
(2) “Reportable conduct” includes:
(A) abuse or neglect that causes or may cause death or harm to an individual using the consumer-directed service option or a resident;
(B) sexual abuse of an individual using the consumer-directed service option or a resident;
(C) financial exploitation of an individual using the consumer-directed service option or a resident in an amount of $25 or more; and
(D) emotional, verbal, or psychological abuse that causes harm to an individual using the consumer-directed service option or a resident.
(3) “Resident” means an individual residing in a group home or other residential facility who is receiving services from a residential caregiver.
(4) “Residential caregiver” has the meaning assigned by § 531.02485.
(b) A Medicaid provider, including a provider providing services under a Section 1915(c) waiver program, who employs or contracts with a residential caregiver to provide community-based residential care services through a group home or other residential facility described by Subsection (a)(4), on receiving notice of the reportable conduct finding, shall immediately suspend the employment or contract of an individual the provider employs or contracts with as a residential caregiver who the commission finds has engaged in reportable conduct while the individual exhausts any applicable appeals process, including informal and formal appeals, pending a final decision by an administrative law judge. The provider may not reinstate the individual’s employment or contract during the course of any appeals process.

(c) Notwithstanding any other law, the commission shall take disciplinary action against a Medicaid provider that violates Subsection (b), including imposing an administrative penalty or vendor hold, terminating a contract or license, or any other disciplinary action the commission determines appropriate. In determining the appropriate disciplinary action to take against a Medicaid provider under this subsection, the commission shall consider:
(1) the nature and seriousness of the violation;
(2) the history of previous violations; and
(3) any other matter justice may require.
(d) The executive commissioner shall adopt rules necessary to implement this section.