(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 §19.405 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.

Source Note: The provisions of this §554.404 adopted to be effective May 1, 1995, 20 TexReg 2393; amended to be effective March 24, 2020, 45 TexReg 2025; transferred effective January 15, 2021, as published in the Texas Register December 11, 2020, 45 TexReg 8871