Section 554.404 - Protection of Resident Funds(a) Management of financial affairs. The resident has the right to manage the resident's financial affairs and the facility may not require a resident to deposit their personal funds with the facility. A resident may designate another person to manage the resident's financial affairs.(b) Management of personal funds. (1) Licensed-only facilities. Upon written authorization of a resident, the facility may hold, safeguard, manage, and account for the personal funds of the resident deposited with the facility. The facility will act as a fiduciary agent if the facility holds, safeguards, and accounts for the resident's personal funds.(2) Medicaid-certified facilities. Upon written authorization of a resident, the facility must hold, safeguard, manage, and account for the personal funds of the resident deposited with the facility, as described in § 554.405 of this subchapter (relating to Additional Requirements for Trust Funds in Medicaid-certified Facilities). The facility will act as a fiduciary agent if the facility holds, safeguards, and accounts for the resident's personal funds.(c) Statement of resident rights and responsibilities. The facility must provide each resident and resident representative with a written statement at the time of admission that meets the following requirements: (1) the statement describes the resident's rights to select how personal funds will be handled. The following alternatives must be included: (A) the resident has the right to manage the resident's financial affairs;(B) the facility may not require a resident to deposit the resident's personal funds with the facility;(C) the facility has an obligation, upon written authorization of a resident, to hold, safeguard, manage, and account for the personal funds of the resident deposited with the facility;(D) the resident has a right to apply to the Social Security Administration to have a representative payee designated for federal or state benefits to which the resident may be entitled; and(E) except when subparagraph (D) of this paragraph applies, the resident has a right to designate in writing another person to manage the resident's personal funds;(2) the statement notes, when applicable, that any charge for the facility handling a Medicaid recipient's personal funds is included in the facility's basic rate; and(3) the statement advises the resident that the facility must have written permission from the resident or resident representative to handle the resident's personal funds.26 Tex. Admin. Code § 554.404
The provisions of this §19.404 adopted to be effective May 1, 1995, 20 TexReg 2393; Amended by Texas Register, Volume 45, Number 12, March 20, 2020, TexReg 2036, eff. 3/24/2020; Entire chapter transferred from Title 40, Pt. 1, Ch. 19 by Texas Register, Volume 45, Number 50, December 11, 2020, TexReg 8871, eff. 1/15/2021