Texas Health and Safety Code 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 greater than permitted by § 246.073;
(2) the provider draws on the provider’s loan reserve fund escrow in an amount greater than permitted or more frequently than permitted by § 246.078;
(3) the commissioner determines, after a complaint and investigation, that the provider is financially unsound or is unable to meet the income or available cash projections previously filed by the provider and that the ability of the provider to fully perform its obligations under continuing care contracts is endangered; or
(4) the provider is bankrupt, insolvent, or has filed for protection from creditors under a federal or state reorganization, bankruptcy, or insolvency law.
(b) The commissioner appoints the supervisor.
Terms Used In Texas Health and Safety Code 246.091
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Property: means real and personal property. See Texas Government Code 311.005
(c) The commissioner may provide that the provider may not, during the supervision period and without the prior approval of the commissioner or the supervisor:
(1) dispose of, convey, or encumber its assets;
(2) withdraw its bank accounts;
(3) lend its funds;
(4) invest its funds;
(5) transfer its property;
(6) incur a debt, obligation, or liability; or
(7) merge or consolidate with another facility.
(d) The commissioner shall terminate the supervision and restore to a provider the authority to manage the affairs of the facility if the commissioner determines that the facility is capable of meeting its financial obligations.
(e) The facility or provider shall pay the costs of a supervisor.