HARRY HUGHES, Governor                                       1267

(4) "Facility" means:

(i) A hospital that is classified as a special
hospital; or

(ii) A related institution.

(d) (1) Each facility shall have adequate safeguards for
property of a resident that is entrusted to the facility.

(2)  (i) A facility to which money is entrusted shall
deposit the money in an account if the facility cannot keep the
money safely.

(ii) If the facility is operated by a State,
county, or municipal agency and one resident entrusts more than
$300 to the facility, the facility shall deposit the amount in
excess of $300.

(iii) If the facility is operated by a person
other than a State, county, or municipal agency and one resident
entrusts more than $100 to the facility, the facility shall
deposit the amount in excess of $100.

(iv) If the total amount of money that is
entrusted to the facility by its residents exceeds $50 per
resident, the facility shall deposit the amount in excess of $50
per resident or $1,000, whichever is less.

(3) A FACILITY THAT IS A RELATED INSTITUTION CARING
FOR INDIVIDUALS WHO ARE AT LEAST 60 YEARS OLD SHALL PROVIDE A
BOND, IN THE AMOUNT THAT THE DEPARTMENT REQUIRES, TO COVER ANY
ADMINISTRATOR OR BOOKKEEPER OF THE INSTITUTION WHO HAS CONTROL
OVER OR ACCESS TO THE FUNDS OF A RESIDENT OF THE FACILITY.

(3) A FACILITY THAT IS A RELATED INSTITUTION CARING
FOR INDIVIDUALS AND WHOSE ADMINISTRATOR OR BOOKKEEPER HAS CONTROL
OVER OR ACCESS TO THE FUNDS OF A RESIDENT OF THE FACILITY, SHALL
PROVIDE AS DETERMINED BY THE DEPARTMENT, EITHER:

1. A BOND IN AN AMOUNT THE DEPARTMENT
REQUIRES;

2. A LETTER OF CREDIT EQUAL TO 3 TIMES
THE AVERAGE YEARLY BALANCE OF FUNDS OF ALL RESIDENTS OF THE
FACILITY; OR

3. SELF INSURANCE IF THE NET WORTH OF THE
FACILITY IS AT LEAST 3 TIMES THE AVERAGE YEARLY BALANCE OF FUNDS
OF ALL RESIDENTS OF THE FACILITY.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1986 October 1, 1986.