PUBLIC LAW 100-203—DEC. 22, 1987 "(ii)
CONTRACTS WITH
101 STAT. 1330-169
LEGAL REPRESENTATIVES.—
Subparagraph (A)(ii) shall not be construed as preventing a facility from requiring an individual, who has legal access to a resident's income or resources available to pay for care in the facility, to sign a contract (without incurring personal financial liability) to provide payment from the resident's income or resources for such care. "(6) PROTECTION OP RESIDENT FUNDS.—
"(A) IN GENERAL.—The skilled nursing facility— "(i) may not require residents to deposit their personal funds with the facility, and "(ii) once the facility accepts the written authorization of the resident, must hold, safeguard, and account for such personal funds under a system established and maintained by the facility in accordance with this paragraph. "(B) MANAGEMENT OP PERSONAL FUNDS.—Upon a facility's acceptance of written authorization of a resident under subparagraph (A)(ii), the facility must manage and account for the personal funds of the resident deposited with the facility as follows: "(i) DEPOSIT.—The facility must deposit any amount of personal funds in excess of $50 with respect to a resident in an interest bearing account (or accounts) that is separate from any of the facility's operating accounts and credits all interest earned on such separate account to such account. With respect to any other personal funds, the facility must maintain such funds in a non-interest bearing account or petty cash fund, "(ii) ACCOUNTING AND RECORDS.—The facility must assure a full and complete separate accounting of each such resident's personal funds, maintain a written record of all financial transactions involving the personal funds of a resident deposited with the facility, and afford the resident (or a legal representative of the resident) reasonable access to such record. "(iii) CONVEYANCE UPON DEATH.—Upon the death of a resident with such an account, the facility must convey promptly the resident's personal funds (and a final accounting of such funds) to the individual administering the resident's estate. "(C) ASSURANCE OP 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 XIX. "(d) REQUIREMENTS RELATING TO ADMINISTRATION AND OTHER MATTERS.— "(1) ADMINISTRATION.—
"(A) IN GENERAL.—A skilled 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-
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