SECTION 551.237. Appointment of a Trustee by Agreement

(a) A person holding a controlling interest in a facility may, at any time, request that the Texas Health and Human Services Commission (HHSC) assume the operation of the facility through the appointment of a trustee.

(b) If HHSC believes that the appointment of a trustee is desirable, HHSC may enter into an agreement with the person holding the controlling interest for the appointment of the trustee to take charge of the facility.

(c) Any agreement entered into under this section must:

(1) specify all terms and conditions of the trustee's appointment and authority; and

(2) preserve all rights of the residents as granted by law.

(d) The agreement will terminate either at a time specified in the agreement or upon receipt of notice of intent to terminate sent by either party.

(e) If HHSC determines that termination of the agreement by the person holding a controlling interest in the facility would not be in the best interest of the residents, HHSC will petition a court for an involuntary appointment under the terms of §551.238 of this subchapter (relating to Involuntary Appointment of a Trustee).

(f) The appointment of a trustee by agreement does not suspend the obligation of a facility to pay assessed civil money or administrative penalties.

Source Note: The provisions of this §551.237 adopted to be effective February 1, 1999, 23 TexReg 11829; transferred effective May 1, 2019, as published in the Texas Register April 12, 2019, 44 TexReg 1883; amended to be effective February 24, 2022, 47 TexReg 787