Tex. Health & Safety Code 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 greater than permitted by Section 246.073 (Release to the Provider);

(2)

the provider draws on the provider’s loan reserve fund escrow in an amount greater than permitted or more frequently than permitted by Section 246.078 (Release of Reserve Fund Escrow);

(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.

(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.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 14, Sec. 111, eff. Sept. 1, 1991.

Source: Section 246.091 — Supervision by Commissioner, https://statutes.­capitol.­texas.­gov/Docs/HS/htm/HS.­246.­htm#246.­091 (accessed Jun. 5, 2024).

246.001
Short Title
246.002
Definitions
246.003
Board Powers and Duties
246.004
Rights of Residents
246.005
Licensing for Certain Tax Purposes
246.006
Quality of Care
246.007
Reduction of Fees
246.021
Certificate of Authority Required
246.022
Application for and Issuance of Certificate of Authority
246.023
Mandatory Issuance of Certificate of Authority to Certain Facilities
246.024
Transfer of Certificate of Authority
246.0025
Definition of Continuing Care
246.025
Suspension or Revocation of Certificate of Authority
246.026
Management by Others
246.027
Certificate of Authority Fees
246.041
Precontractual Recording Requirements
246.042
Delivery of Disclosure Statement
246.043
Cover Page of Disclosure Statement
246.044
Contents of Disclosure Statement: Provider
246.045
Contents of Disclosure Statement: Third Party Management
246.046
Contents of Disclosure Statement: Affiliation with Nonprofit Organization
246.047
Contents of Disclosure Statement: Physical Property
246.048
Contents of Disclosure Statement: Contracts and Fees
246.049
Contents of Disclosure Statement: Change of Circumstances
246.050
Contents of Disclosure Statement: Financial Information
246.051
Contents of Disclosure Statement: Annual Income Statements
246.052
Contents of Disclosure Statement: Anticipated Source and Application of Funds
246.053
Standard Contract Form
246.054
Annual Disclosure Statement Revision
246.055
Advertisement in Conflict with Disclosures
246.056
Rescission of Contract
246.057
Cancellation of Contract: Death or Incapacity Before Occupancy
246.058
Disclosure Statement Fees
246.071
Entrance Fee Escrow Account
246.072
Return of Deposits
246.073
Release to the Provider
246.074
Return of Entrance Fee
246.075
Escrow of Application Fee Not Required
246.076
Interest Accrued on Entrance Fee Funds
246.077
Reserve Fund Escrow
246.078
Release of Reserve Fund Escrow
246.079
Transition
246.080
Applicability
246.091
Supervision by Commissioner
246.092
Application for Court Order for Rehabilitation or Liquidation
246.093
Order to Rehabilitate
246.094
Order to Liquidate
246.095
Bond
246.096
Termination of Rehabilitation
246.097
Payment of Trustee
246.111
Lien
246.112
Investigations
246.113
Production of Evidence
246.114
Actuarial Review
246.115
Cease and Desist Orders
246.116
Criminal Penalty
246.117
Civil Liability
246.0735
Phase-in Facilities
246.0736
Continuing Release of Escrow
246.0737
Care in Residence

Accessed:
Jun. 5, 2024

§ 246.091’s source at texas​.gov