Page:United States Statutes at Large Volume 101 Part 2.djvu/989

 PUBLIC LAW 100-203—DEC. 22, 1987

101 STAT. 1330-195

"(C) ASSURANCE OF FINANCIAL SECURITY.—The facility must purchase a surety bond, or otherwise provide assurance satisfactory to the Secretary, to assure the security of all personal funds of residents deposited with the facility. "(D) LIMITATION ON CHARGES TO PERSONAL FUNDS.—The

facility may not impose a charge against the personal funds of a resident for any item or service for which payment is made under this title or title XVIIL "(d) REQUIREMENTS RELATING TO ADMINISTRATION AND OTHER MATTERS.— "(1) ADMINISTRATION.—

"(A) IN GENERAL.—A nursing facility must be administered in a manner that enables it to use its resources effectively and efficiently to attain or maintain the highest practicable physical, mental, and psychosocial well-being of each resident (consistent with requirements established under subsection (fK5)). "(B) REQUIRED NOTICES.—If a change occurs in— "(i) the persons with an ownership or control interest (as defined in section 1124(a)(3)) in the facility, "(ii) the persons who are officers, directors, agents, or managing employees (as defined in section 1126(b)) of the facility, "(iii) the corporation, association, or other company responsible for the management of the facility, or "(iv) the individual who is the administrator or director of nursing of the facility, the nursing facility must provide notice to the State agency responsible for the licensing of the facility, at the time of the change, of the change and of the identity of each new person, company, or individual described in the respective clause. "(C)

NURSING FACILITY ADMINISTRATOR.—The adminis-

trator of a nursing facility must meet standards established by the Secretary under subsection (fK4). "(2) LICENSING AND U F E SAFETY CODE.—

"(A) LICENSING.—A nursing facility must be licensed under applicable State and local law. "(B) LIFE SAFETY CODE.—A nursing facility must meet such provisions of such edition (as specified by the Secretary in regulation) of the Life Safety Code of the National Fire Protection Association as are applicable to nursing homes; except that— "(i) the Secretary may waive, for such periods as he deems appropriate, specific provisions of such Code which if rigidly applied would result in unreasonable hardship upon a facility, but only if such waiver would not adversely affect the health and safety of residents or personnel, and "(ii) the provisions of such Code shall not apply in any State if the Secretary finds that in such State there is in effect a fire and safety code, imposed by State law, which adequately protects residents of and personnel in nursing facilities. "(3) SANITARY AND INFECTION CONTROL AND PHYSICAL ENVIRON-

MENT.—A nursing facility must—

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