73R10141 JMM-F By Cain, et al. H.B. No. 1665 Substitute the following for H.B. No. 1665: By Berlanga C.S.H.B. No. 1665 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the regulation of health professions, including the 1-3 profession of nursing facility administration, and to the abolition 1-4 of the Texas Board of Licensure for Nursing Home Administrators; 1-5 providing penalties. 1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-7 ARTICLE 1. HEALTH PROFESSIONS COUNCIL 1-8 SECTION 1.01. Title 71, Revised Statutes, is amended by 1-9 adding Article 4512p to read as follows: 1-10 Art. 4512p. HEALTH PROFESSIONS COUNCIL 1-11 Sec. 1. HEALTH PROFESSIONS COUNCIL. (a) The Health 1-12 Professions Council shall administer the functions provided by this 1-13 article and coordinate the administrative and regulatory efforts of 1-14 the health licensing agencies represented on the council. 1-15 (b) The council consists of one representative appointed by 1-16 each of the following: 1-17 (1) the governor; and 1-18 (2) each of the following health licensing agencies: 1-19 (A) the Texas Board of Chiropractic Examiners; 1-20 (B) the State Board of Dental Examiners; 1-21 (C) the Texas Optometry Board; 1-22 (D) the Texas State Board of Pharmacy; 1-23 (E) the Texas State Board of Podiatry; 1-24 (F) the Texas State Board of Veterinary Medical 2-1 Examiners; 2-2 (G) the Texas State Board of Medical Examiners; 2-3 (H) the Board of Nurse Examiners; 2-4 (I) the Texas State Board of Examiners of 2-5 Psychologists; 2-6 (J) the Board of Vocational Nurse Examiners; 2-7 (K) the entity that regulates the practice of 2-8 physical therapy; 2-9 (L) the entity that regulates the practice of 2-10 occupational therapy; and 2-11 (M) the Texas Board of Health to represent the 2-12 health licensing division of the Texas Department of Health. 2-13 (c) Members of the council are appointed for two-year terms 2-14 expiring February 1 of each odd-numbered year. 2-15 (d) The council shall elect from the council's members a 2-16 presiding officer and assistant presiding officer to conduct the 2-17 business of the council. 2-18 (e) A member of the council is not entitled to compensation 2-19 or a per diem for the member's service on the council. 2-20 (f) The council may employ staff or designate staff for the 2-21 council from the employees of the health licensing agencies 2-22 represented on the council as necessary for the council to carry 2-23 out the council's responsibilities. 2-24 (g) The council shall adopt an annual budget that is funded 2-25 by a prorated assessment paid by the health licensing agencies 2-26 represented on the council. 2-27 Sec. 2. TOLL-FREE TELEPHONE COMPLAINT SYSTEM. (a) The 3-1 council shall establish and operate a toll-free telephone complaint 3-2 system to provide assistance and referral services for persons 3-3 making a complaint relating to a health profession regulated by the 3-4 state. 3-5 (b) After the establishment of a toll-free telephone 3-6 complaint system under this section, an agency of the state that 3-7 regulates a health profession shall be required to list the 3-8 toll-free telephone number of the system with the agency's regular 3-9 telephone number. 3-10 Sec. 3. TRAINING AND GUIDELINES FOR MEMBERS OF STATE BOARDS 3-11 AND COMMISSIONS. (a) The council shall establish a training 3-12 program for the members of the governing boards of the health 3-13 licensing agencies represented on the council. 3-14 (b) Before a member of a governing board may assume the 3-15 member's duties, the member must complete at least one course of 3-16 the training program established under this section, and before the 3-17 member may be confirmed by the senate, the member must pass an 3-18 examination given in conjunction with the attorney general on 3-19 subjects described by Subsections (c)(7), (8), and (9) of this 3-20 section. 3-21 (c) A training program established under this section shall 3-22 provide information to a participant regarding: 3-23 (1) the enabling legislation that created the 3-24 governing board to which the member is appointed; 3-25 (2) the programs operated by that state agency; 3-26 (3) the role and functions of that state agency; 3-27 (4) the rules of that state agency with an emphasis on 4-1 the rules that relate to disciplinary and investigatory authority; 4-2 (5) the current budget for that state agency; 4-3 (6) the results of the most recent formal audit of 4-4 that state agency; 4-5 (7) the requirements of the: 4-6 (A) open meetings law, Chapter 271, Acts of the 4-7 60th Legislature, Regular Session, 1967 (Article 6252-17, Vernon's 4-8 Texas Civil Statutes), and its subsequent amendments; 4-9 (B) open records law, Chapter 424, Acts of the 4-10 63rd Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's 4-11 Texas Civil Statutes), and its subsequent amendments; and 4-12 (C) Administrative Procedure and Texas Register 4-13 Act (Article 6252-13a, Vernon's Texas Civil Statutes) and its 4-14 subsequent amendments; 4-15 (8) the requirements of the conflict of interest laws 4-16 and other laws relating to public officials; and 4-17 (9) any applicable ethics policies adopted by that 4-18 state agency or the Texas Ethics Commission. 4-19 Sec. 4. UNLAWFUL FALSE, MISLEADING, OR DECEPTIVE 4-20 ADVERTISING. (a) Advertising that is false, misleading, or 4-21 deceptive or that is not readily subject to verification is 4-22 declared unlawful and is subject to action by the appropriate 4-23 health licensing agency as a ground for revocation or denial of a 4-24 license and subject to action by the consumer protection division 4-25 of the office of the attorney general under Sections 17.47, 17.58, 4-26 17.60, and 17.61, Business & Commerce Code. 4-27 (b) False, misleading, or deceptive advertising or 5-1 advertising that is not readily subject to verification includes 5-2 advertising that: 5-3 (1) makes a material misrepresentation of fact or 5-4 omits a fact necessary to make the statement as a whole not 5-5 materially misleading; 5-6 (2) makes a representation likely to create an 5-7 unjustified expectation about the results of a health care service 5-8 or procedure; 5-9 (3) compares a health care professional's services 5-10 with another health care professional's services unless the 5-11 comparison can be factually substantiated; 5-12 (4) contains a testimonial; 5-13 (5) causes confusion or misunderstanding as to the 5-14 credentials, education, or licensure of a health care professional; 5-15 (6) advertises or represents that health care 5-16 insurance deductibles or copayments may be waived or are not 5-17 applicable to health care services to be provided if the 5-18 deductibles or copayments are required; 5-19 (7) advertises or represents that the benefits of a 5-20 health benefit plan will be accepted as full payment when 5-21 deductibles or copayments are required; 5-22 (8) makes a representation that is designed to take 5-23 advantage of the fears or emotions of a particularly susceptible 5-24 type of patient; or 5-25 (9) advertises or represents in the use of a 5-26 professional name a title or professional identification that is 5-27 expressly or commonly reserved to or used by another profession or 6-1 professional. 6-2 (c) A violation of this section does not create a private 6-3 cause of action, including an action for breach of warranty or for 6-4 an implied contract or warranty for good and workmanlike service. 6-5 Sec. 5. BILLING INFORMATION REQUIRED; PROHIBITED PRACTICES. 6-6 (a) On the written request of a patient, a health care 6-7 professional shall provide, in plain language, a written 6-8 explanation of the charges for professional services previously 6-9 made on a bill or statement for the patient. 6-10 (b) A health care professional may not persistently or 6-11 flagrantly overcharge or overtreat a patient. 6-12 (c) A violation of this section is subject to action by the 6-13 appropriate health licensing agency as a ground for revocation or 6-14 denial of a license. 6-15 Sec. 6. CIVIL PENALTY. (a) A person who is in violation of 6-16 this article is liable to the state for a civil penalty not to 6-17 exceed $1,000 for each violation. Each day of violation 6-18 constitutes a separate violation. The attorney general may 6-19 institute an action under this section. 6-20 (b) A civil action filed by the attorney general under this 6-21 section shall be filed in a district court in Travis County or in 6-22 the county in which the violation occurred. 6-23 (c) The attorney general may recover reasonable expenses 6-24 incurred in obtaining a civil penalty under this section, including 6-25 court costs, reasonable attorney's fees, reasonable investigative 6-26 costs, witness fees, and deposition expenses. 6-27 (d) A civil penalty recovered under this section shall be 7-1 deposited in the state treasury to the credit of the general 7-2 revenue fund. 7-3 Sec. 7. INJUNCTIVE ACTION. (a) The attorney general or the 7-4 appropriate health licensing board may bring an injunctive action 7-5 to stop a violation or threatened violation of this article. 7-6 (b) The attorney general or health licensing agency may 7-7 recover reasonable expenses incurred in obtaining injunctive relief 7-8 under this section, including court costs, reasonable attorney's 7-9 fees, reasonable investigative costs, witness fees, and deposition 7-10 expenses. 7-11 Sec. 8. REPORTS AND STUDIES. (a) The council shall prepare 7-12 an annual report to be sent to the governor, the lieutenant 7-13 governor, and the speaker of the house of representatives not later 7-14 than February 1 of each year. 7-15 (b) A report under this section shall include: 7-16 (1) a statistical compilation of enforcement actions 7-17 taken by a health licensing agency represented on the council; 7-18 (2) recommendations for statutory changes to improve 7-19 the regulation of the health care professions; and 7-20 (3) other relevant information and recommendations 7-21 determined necessary by the council. 7-22 (c) The council shall determine and adopt additional 7-23 relevant information to be included in the reports. 7-24 (d) The council shall: 7-25 (1) adopt a memorandum of understanding with the 7-26 General Services Commission to develop and implement a plan to 7-27 collocate the staffs of the health licensing agencies represented 8-1 on the council, except that the memorandum shall provide for a 8-2 study of the feasibility of relocating the health licensing 8-3 division of the Texas Department of Health with the collocated 8-4 staffs; 8-5 (2) develop a plan to centralize the administrative 8-6 functions of the health licensing agencies represented on the 8-7 council; 8-8 (3) develop a plan to coordinate budget preparation 8-9 with concentration on increased funding for enforcement efforts; 8-10 (4) develop and distribute information necessary to 8-11 prepare statistical comparisons of licensing functions and unit 8-12 costs of the health licensing agencies represented on the council 8-13 in cooperation with the staffs of the Legislative Budget Board, the 8-14 governor's office of budget and planning, and the licensing 8-15 division of the Texas Department of Health; 8-16 (5) develop and implement a plan to use the toll-free 8-17 number established under Section 2 of this article to centralize 8-18 the receipt and referral of complaints for the health licensing 8-19 agencies represented on the council; 8-20 (6) study the feasibility of centralizing the receipt 8-21 and investigation of complaints; and 8-22 (7) study the effects of establishing a prohibition to 8-23 prevent individuals who are not licensed physicians from 8-24 intervening in medical practice decisions. 8-25 (e) The council shall appoint working groups consisting of 8-26 the executive directors of the health licensing agencies 8-27 represented on the council to carry out the council's duties under 9-1 Subsection (d) of this section. A working group under this 9-2 subsection shall report to the council. 9-3 (f) The results of the council's studies under Subsection 9-4 (d) of this section shall be reported to the governor, the 9-5 lieutenant governor, and the speaker of the house of 9-6 representatives not later than January 1, 1995. 9-7 Sec. 9. REMEDIES NOT EXCLUSIVE. The provisions of this 9-8 article are in addition to any other remedy provided by any other 9-9 statute, rule, or common law. 9-10 SECTION 1.02. The Healing Art Identification Act (Article 9-11 4590e, Vernon's Texas Civil Statutes) is repealed. 9-12 ARTICLE 2. NURSING FACILITY ADMINISTRATION 9-13 SECTION 2.01. Title 71, Revised Statutes, is amended by 9-14 adding Article 4512q to read as follows: 9-15 Art. 4512q. NURSING FACILITY ADMINISTRATION 9-16 Sec. 1. SHORT TITLE. This article may be cited as the Texas 9-17 Nursing Facility Administrators Licensure Act. 9-18 Sec. 2. DEFINITIONS. In this article: 9-19 (1) "Board" means the Texas Board of Nursing Facility 9-20 Administrators. 9-21 (2) "Department" means the Texas Department of Health. 9-22 (3) "Nursing facility" means an institution or 9-23 facility that is licensed as a nursing home, nursing facility, 9-24 skilled nursing facility, or custodial care home by the department 9-25 under Chapter 242, Health and Safety Code. 9-26 (4) "Nursing facility administrator" or 9-27 "administrator" means a person who engages in the practice of 10-1 nursing facility administration without regard to whether the 10-2 person has an ownership interest in the facility or whether the 10-3 functions and duties are shared with any other person. 10-4 (5) "Practice of nursing facility administration" 10-5 means the performance of the acts of administering, managing, 10-6 supervising, or being in general administrative charge of a nursing 10-7 facility. 10-8 Sec. 3. BOARD. (a) The Texas Board of Nursing Facility 10-9 Administrators is an agency within the department. 10-10 (b) The board is composed of nine members appointed by the 10-11 governor. Three members must be members of the public, and six 10-12 members must be nursing facility administrators licensed under this 10-13 article. Appointments to the board shall be made without regard to 10-14 the race, color, disability, sex, religion, or national origin of 10-15 the person appointed. 10-16 (c) Members of the board serve staggered six-year terms, 10-17 with the terms of three members expiring on February 1 of each 10-18 odd-numbered year. A person appointed to fill a vacancy on the 10-19 board shall serve for the unexpired portion of the term for which 10-20 the person is appointed. 10-21 Sec. 4. MEMBERSHIP REQUIREMENTS. (a) A member of the board 10-22 who is an administrator must: 10-23 (1) be a resident of this state and a citizen of the 10-24 United States; 10-25 (2) be licensed under this article and currently 10-26 serving as a nursing facility administrator or have direct 10-27 supervisory responsibility on a daily basis over an administrator 11-1 who works in a nursing facility; and 11-2 (3) hold a degree from an accredited four-year college 11-3 or university. 11-4 (b) An administrator who does not have a degree as required 11-5 by Subsection (b)(3) of this section may be qualified to serve as a 11-6 member of the board if the administrator has two years of practical 11-7 experience as an administrator for every year fewer than four that 11-8 the administrator has completed at a four-year college or 11-9 university. 11-10 (c) At least one administrator member of the board must be 11-11 associated with and a representative of a nonproprietary nursing 11-12 facility, and at least one administrator member of the board must 11-13 have an ownership interest in a nursing facility. 11-14 (d) A member or employee of the board may not: 11-15 (1) be an officer, employee, or paid consultant of a 11-16 trade association in the nursing facility industry; or 11-17 (2) be related within the second degree by affinity or 11-18 within the third degree by consanguinity to an officer, employee, 11-19 or paid consultant of a trade association in the nursing facility 11-20 industry. 11-21 (e) A member of the board who represents the general public 11-22 may not have a financial interest, other than as a consumer, in a 11-23 nursing facility as an officer, director, partner, owner, employee, 11-24 attorney, or paid consultant or be related within the second degree 11-25 by affinity or within the third degree by consanguinity to a person 11-26 who has a financial interest, other than as a consumer, in a 11-27 nursing facility as an officer, director, partner, owner, employee, 12-1 attorney, or paid consultant. 12-2 (f) A person who is required to register as a lobbyist under 12-3 Chapter 305, Government Code, because of the person's activities 12-4 for compensation on behalf of a profession related to the operation 12-5 of the board may not serve on the board. 12-6 Sec. 5. GROUNDS FOR REMOVAL. It is a ground for removal 12-7 from the board if a member: 12-8 (1) does not have at the time of appointment the 12-9 qualifications required by Section 4 of this article for 12-10 appointment to the board; 12-11 (2) does not maintain during service on the board the 12-12 qualifications required by Section 4 of this article for 12-13 appointment to the board; 12-14 (3) violates a prohibition established by Section 4 of 12-15 this article; 12-16 (4) cannot discharge the member's duties for a 12-17 substantial part of the term for which the member is appointed 12-18 because of illness or disability; or 12-19 (5) is absent from more than half of the regularly 12-20 scheduled board meetings that the member is eligible to attend 12-21 during a calendar year, unless the absence is excused by a majority 12-22 vote of the board. 12-23 Sec. 6. BOARD OFFICERS; MEETINGS; QUORUM; EXPENSES. (a) 12-24 The board shall elect from its members a presiding officer and 12-25 assistant presiding officer who serve according to rules adopted by 12-26 the board. 12-27 (b) The board shall hold at least two regular meetings each 13-1 year as provided by rules adopted by the board. 13-2 (c) A majority of the members constitutes a quorum. 13-3 (d) Each member of the board is entitled to compensation for 13-4 transportation expenses as provided by the General Appropriations 13-5 Act. 13-6 Sec. 7. APPLICATION OF OPEN MEETINGS AND ADMINISTRATIVE 13-7 PROCEDURE ACTS. The board is subject to the open meetings law, 13-8 Chapter 271, Acts of the 60th Legislature, Regular Session, 1967 13-9 (Article 6252-17, Vernon's Texas Civil Statutes), and its 13-10 subsequent amendments, and the Administrative Procedure and Texas 13-11 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) and 13-12 its subsequent amendments. 13-13 Sec. 8. POWERS AND DUTIES OF BOARD. (a) The board may 13-14 adopt rules consistent with this article. 13-15 (b) The board shall: 13-16 (1) adopt and publish a code of ethics; 13-17 (2) establish the qualifications of applicants for 13-18 licenses and the renewal of licenses; 13-19 (3) spend funds necessary for the proper 13-20 administration of the board's assigned duties; 13-21 (4) establish reasonable and necessary fees for the 13-22 administration and implementation of this article; and 13-23 (5) establish a minimum number of hours of continuing 13-24 education required to renew a license and periodically assess the 13-25 continuing education needs of license holders to determine whether 13-26 specific course content should be required. 13-27 Sec. 9. ADMINISTRATIVE FUNCTIONS; EXECUTIVE SECRETARY. (a) 14-1 The department shall provide the personnel and necessary facilities 14-2 required to administer this article. If necessary to the 14-3 administration of this article, the department may secure and 14-4 provide for compensation for services that the department considers 14-5 necessary and may employ and compensate within available 14-6 appropriations professional consultants, technical assistants, and 14-7 employees on a full-time or part-time basis. 14-8 (b) The commissioner of health shall designate an employee 14-9 to serve as executive secretary of the board. The executive 14-10 secretary must be an employee of the department. The executive 14-11 secretary is the administrator of the licensing activities under 14-12 this article. The executive secretary shall carry out other 14-13 functions as may be required by the board or the department to 14-14 administer this article. 14-15 Sec. 10. PUBLIC INTEREST INFORMATION. (a) The board shall 14-16 prepare information of public interest describing the functions of 14-17 the board and the department under this article and the procedures 14-18 by which complaints are filed with and resolved by the board. The 14-19 board shall make the information available to the public and 14-20 appropriate state agencies. 14-21 (b) The board by rule shall establish methods by which 14-22 consumers and service recipients are notified of the name, mailing 14-23 address, and telephone number of the board for the purpose of 14-24 directing complaints to the board. 14-25 Sec. 11. FEES; FUNDS; ANNUAL REPORT. (a) The board by rule 14-26 shall set reasonable and necessary fees in amounts necessary to 14-27 cover the cost of administering this article. The board by rule 15-1 may set different licensing fees for different categories of 15-2 licenses. 15-3 (b) The department shall receive and account for funds 15-4 received under this article. The funds shall be deposited in the 15-5 state treasury to the credit of the general revenue fund in an 15-6 account known as the licensed nursing facility administrator's 15-7 account to be used only for the administration of this article. 15-8 (c) The department shall file annually with the governor and 15-9 the presiding officer of each house of the legislature a complete 15-10 and detailed written report accounting for all funds received and 15-11 disbursed by the board or the department for the administration of 15-12 this article during the preceding fiscal year. The annual report 15-13 must be in the form and reported in the time provided by the 15-14 General Appropriations Act. 15-15 (d) The board may receive and disburse funds received from 15-16 any federal source for the furtherance of the board's functions 15-17 under this article. 15-18 Sec. 12. PRACTICING WITHOUT A LICENSE. A person may not act 15-19 as a nursing facility administrator or represent to others that the 15-20 person is a nursing facility administrator unless the person is 15-21 licensed under this article. 15-22 Sec. 13. LICENSE APPLICATION; QUALIFICATIONS. (a) An 15-23 applicant for a nursing facility administrator's license must 15-24 submit a sworn application that is accompanied by the application 15-25 fee. 15-26 (b) The board shall prescribe the form of the application 15-27 and may by rule establish dates by which applications and fees must 16-1 be received. The rules under this section may not be inconsistent 16-2 with the rules of the department related to the application dates 16-3 of other licenses administered by the department. 16-4 (c) An applicant for a nursing facility administrator's 16-5 license must take a licensing examination under this article. To 16-6 qualify for the licensing examination, the applicant must have 16-7 satisfactorily completed a course of instruction and training 16-8 prescribed by the board that is conducted by or in cooperation with 16-9 an accredited postsecondary educational institution and that is 16-10 designed and administered to provide sufficient knowledge of: 16-11 (1) the needs served by nursing facilities; 16-12 (2) the laws governing the operation of nursing 16-13 facilities and the protection of the interests of facility 16-14 residents; and 16-15 (3) the elements of nursing facility administration. 16-16 (d) An applicant who has not completed the course of 16-17 instruction and training described by Subsection (c) of this 16-18 section must present evidence satisfactory to the board of having 16-19 completed sufficient education, training, and experience in the 16-20 fields described by Subsection (c) of this section to enable the 16-21 applicant to engage in the practice of nursing facility 16-22 administration. 16-23 Sec. 14. EXAMINATION. (a) The licensing examination shall 16-24 be prepared or approved by the board and administered by the board 16-25 to qualified applicants at least twice each calendar year. The 16-26 board shall have the written portion of the examination, if any, 16-27 validated by a testing professional. 17-1 (b) Not later than the 30th day after the date on which a 17-2 licensing examination is administered under this article, the board 17-3 shall notify each examinee of the results of the examination. If 17-4 an examination is graded or reviewed by a national or state testing 17-5 service, the board shall notify examinees of the results of the 17-6 examination not later than two weeks after the date the board 17-7 receives the results from the testing service. If the notice of 17-8 the examination results will be delayed for more than 90 days after 17-9 the examination date, the board shall notify the examinee of the 17-10 reason for the delay before the 90th day. 17-11 (c) If requested in writing by a person who fails the 17-12 licensing examination, the board shall furnish the person with an 17-13 analysis of the person's performance on the examination. 17-14 (d) The board may establish by rule additional educational 17-15 requirements to be met by an applicant who fails the examination 17-16 three times. 17-17 Sec. 15. LICENSES; TEMPORARY LICENSE; INACTIVE STATUS; 17-18 PROVISIONAL LICENSE. (a) A person who meets the requirements for 17-19 licensing under this article is entitled to receive a license. A 17-20 nursing facility administrator's license is not transferable. 17-21 (b) A person licensed under this article must notify the 17-22 board of the license holder's correct mailing address. 17-23 (c) A license is valid for two years. The board by rule may 17-24 adopt a system under which licenses expire on various dates during 17-25 the two-year period. For the year in which a license expiration 17-26 date is changed, license fees payable on the original expiration 17-27 date shall be prorated on a monthly basis so that each license 18-1 holder shall pay only that portion of the license fee that is 18-2 allocable to the number of months during which the license is 18-3 valid. On renewal of the license on the new expiration date, the 18-4 total license renewal fee is payable. 18-5 (d) The board by rule may provide for the issuance of a 18-6 temporary license. Rules adopted under this section shall include 18-7 a time limit for a licensee to practice under a temporary license. 18-8 (e) The board by rule may provide for a license holder to be 18-9 placed on inactive status. 18-10 Sec. 16. PROVISIONAL LICENSE. (a) On application, the 18-11 board shall grant a provisional license under this article. An 18-12 applicant for a provisional license under this section must: 18-13 (1) be licensed in good standing as a nursing facility 18-14 administrator in another state, the District of Columbia, or a 18-15 territory of the United States that has licensing requirements that 18-16 are substantially equivalent to the requirements of this article; 18-17 (2) have passed a national or other examination 18-18 recognized by the board relating to the practice of nursing 18-19 facility administration; and 18-20 (3) be sponsored by a person licensed under this 18-21 article with whom the provisional license holder may practice under 18-22 this section. 18-23 (b) An applicant for a provisional license may be excused 18-24 from the requirement of Subsection (a)(3) of this section if the 18-25 board determines that compliance with that subsection constitutes a 18-26 hardship to the applicant. 18-27 (c) A provisional license is valid until the date the board 19-1 approves or denies the provisional license holder's application for 19-2 a license. The board shall issue a license under this article to 19-3 the holder of a provisional license under this section if: 19-4 (1) the provisional license holder passes the 19-5 examination required by Section 14 of this article; 19-6 (2) the board verifies that the provisional license 19-7 holder has the academic and experience requirements for a license 19-8 under this article; and 19-9 (3) the provisional license holder satisfies any other 19-10 license requirements under this article. 19-11 (d) The board shall complete the processing of a provisional 19-12 license holder's application for a license not later than the 180th 19-13 day after the date the provisional license is issued. The board 19-14 may extend this time in order to receive the results of a national 19-15 examination or other examination administered or graded by an 19-16 outside organization recognized by the board. 19-17 Sec. 17. LICENSE RENEWAL. (a) A person may renew an 19-18 unexpired license by paying to the board before the expiration of 19-19 the license the required renewal fee. 19-20 (b) If a person's license has been expired for 90 days or 19-21 less, the person may renew the license by paying to the board the 19-22 required renewal fee and a fee that is one-half of the examination 19-23 fee for the license. 19-24 (c) If a person's license has been expired for longer than 19-25 90 days but less than one year, the person may renew the license by 19-26 paying to the board all unpaid renewal fees and a fee that is equal 19-27 to the examination fee for the license. 20-1 (d) If a person's license has been expired for one year or 20-2 longer, the person may not renew the license. The person may 20-3 obtain a new license by complying with the requirements and 20-4 procedures for obtaining an original license. However, the board 20-5 may renew without reexamination an expired license of a person who 20-6 was licensed in this state, moved to another state, and is 20-7 currently licensed and has been in practice in the other state for 20-8 the two years preceding application. The person must pay to the 20-9 board a fee that is equal to the examination fee for the license. 20-10 (e) At least 30 days before the expiration of a person's 20-11 license, the board shall send written notice of the impending 20-12 license expiration to the person at the license holder's last known 20-13 address according to the records of the board. 20-14 Sec. 18. MANDATORY CONTINUING EDUCATION. (a) The board by 20-15 rule shall establish a minimum number of hours of continuing 20-16 education required to renew a license under this article. The 20-17 board may assess the continuing education needs of license holders 20-18 and may require license holders to attend continuing education 20-19 courses specified by the board. 20-20 (b) The board shall identify the key factors for the 20-21 competent performance by a license holder of the license holder's 20-22 professional duties. The board shall adopt a procedure to assess a 20-23 license holder's participation in continuing education programs. 20-24 Sec. 19. COMPLAINT RECEIPT, INVESTIGATION, AND DISPOSITION. 20-25 (a) The board shall keep an information file about each complaint 20-26 filed with the board. The board's information file shall be kept 20-27 current and contain a record for each complaint of: 21-1 (1) all persons contacted in relation to the 21-2 complaint; 21-3 (2) a summary of findings made at each step of the 21-4 complaint process; 21-5 (3) an explanation of the legal basis and reason for 21-6 a complaint that is dismissed; and 21-7 (4) other relevant information. 21-8 (b) If a written complaint is filed with the board that the 21-9 board has authority to resolve, the board, at least as frequently 21-10 as quarterly and until final disposition of the complaint, shall 21-11 notify the parties to the complaint of the status of the complaint 21-12 unless the notice would jeopardize an undercover investigation. 21-13 (c) The board by rule shall adopt a form to standardize 21-14 information concerning complaints made to the board. The board by 21-15 rule shall prescribe information to be provided to a person when 21-16 the person files a complaint with the board. 21-17 (d) The board shall provide reasonable assistance to a 21-18 person who wishes to file a complaint with the board. 21-19 (e) The board shall adopt rules concerning the investigation 21-20 of a complaint filed with the board. The rules adopted under this 21-21 subsection shall: 21-22 (1) distinguish between categories of complaints; 21-23 (2) ensure that complaints are not dismissed without 21-24 appropriate consideration; 21-25 (3) require that the board be advised of a complaint 21-26 that is dismissed and that a letter be sent to the person who filed 21-27 the complaint explaining the action taken on the dismissed 22-1 complaint; 22-2 (4) ensure that the person who filed the complaint has 22-3 an opportunity to explain the allegations made in the complaint; 22-4 and 22-5 (5) prescribe guidelines concerning the categories of 22-6 complaints that require the use of a private investigator and the 22-7 procedures for the board to obtain the services of a private 22-8 investigator. 22-9 (f) The board shall dispose of all complaints in a timely 22-10 manner. The board by rule shall establish a schedule for 22-11 conducting each phase of a complaint that is under the control of 22-12 the board not later than the 30th day after the date the complaint 22-13 is received by the board. The schedule shall be kept in the 22-14 information file for the complaint and all parties shall be 22-15 notified of the projected time requirements for pursuing the 22-16 complaint. A change in the schedule must be noted in the complaint 22-17 information file and all parties to the complaint must be notified 22-18 not later than the seventh day after the date the change is made. 22-19 (g) The executive secretary shall notify the board of a 22-20 complaint that extends beyond the time prescribed by the board for 22-21 resolving the complaint so that the board may take necessary action 22-22 on the complaint. 22-23 Sec. 20. SANCTIONS. (a) The board may revoke, suspend, or 22-24 refuse to renew a nursing facility administrator's license, assess 22-25 an administrative penalty, issue a written reprimand, require 22-26 participation in continuing education, or place an administrator on 22-27 probation after due notice and hearing on proof of any of the 23-1 following grounds: 23-2 (1) the license holder has wilfully or repeatedly 23-3 violated a provision of this article or a rule adopted under this 23-4 article; 23-5 (2) the license holder has wilfully or repeatedly 23-6 acted in a manner inconsistent with the health and safety of the 23-7 patients of a facility of which the license holder is an 23-8 administrator; 23-9 (3) the license holder obtained or attempted to obtain 23-10 a license through misrepresentation or deceit or by making a 23-11 material misstatement of fact on a license application; 23-12 (4) the intemperate use of alcohol or drugs by the 23-13 license holder in the board's opinion creates a hazard to the 23-14 patients of a facility; 23-15 (5) a judgment of a court of competent jurisdiction 23-16 finds that the license holder is mentally incapacitated; 23-17 (6) the license holder has been convicted in a court 23-18 of competent jurisdiction of a misdemeanor or felony involving 23-19 moral turpitude; or 23-20 (7) the license holder has been negligent or 23-21 incompetent in the license holder's duties as a nursing facility 23-22 administrator. 23-23 (b) If a license suspension is probated, the board may 23-24 require the license holder to: 23-25 (1) report regularly to the board on matters that are 23-26 the basis of the probation; 23-27 (2) limit practice to the areas prescribed by the 24-1 board; or 24-2 (3) continue or review continuing professional 24-3 education until the license holder attains a degree of skill 24-4 satisfactory to the board in those areas that are the basis of the 24-5 probation. 24-6 (c) A license holder is entitled to a hearing before a 24-7 hearing examiner designated by the board before a sanction is 24-8 imposed under this section. 24-9 (d) The board by rule shall adopt a broad schedule of 24-10 sanctions for violations under this article. The designated 24-11 hearing officer shall use the schedule for any sanction imposed as 24-12 the result of a hearing conducted by that office. 24-13 Sec. 21. WRITTEN REPRIMAND AND CONTINUING EDUCATION AS 24-14 SANCTIONS. In addition to the other disciplinary actions 24-15 authorized under this article, the board may issue a written 24-16 reprimand to a license holder who violates this article or require 24-17 that a license holder who violates this article participate in 24-18 continuing education programs. The board shall specify the 24-19 continuing education programs that may be attended and the number 24-20 of hours that must be completed by a license holder to fulfill the 24-21 requirements of this section. 24-22 Sec. 22. ADMINISTRATIVE PENALTY. (a) The board may impose 24-23 an administrative penalty against a person licensed or regulated 24-24 under this article who violates this article or a rule or order 24-25 adopted by the board under this article. 24-26 (b) The penalty for a violation may be in an amount not to 24-27 exceed $1,000. Each day a violation continues or occurs is a 25-1 separate violation for purposes of imposing a penalty. 25-2 (c) The amount of the penalty shall be based on: 25-3 (1) the seriousness of the violation, including the 25-4 nature, circumstances, extent, and gravity of any prohibited acts, 25-5 and the hazard or potential hazard created to the health, safety, 25-6 or economic welfare of the public; 25-7 (2) the economic harm to property or the environment 25-8 caused by the violation; 25-9 (3) the history of previous violations; 25-10 (4) the amount necessary to deter future violations; 25-11 (5) efforts to correct the violation; and 25-12 (6) any other matter that justice may require. 25-13 (d) If the executive secretary determines that a violation 25-14 has occurred, the executive secretary may issue to the board a 25-15 report that states the facts on which the determination is based 25-16 and the executive secretary's recommendation on the imposition of a 25-17 penalty, including a recommendation on the amount of the penalty. 25-18 (e) Within 14 days after the date the report is issued, the 25-19 executive secretary shall give written notice of the report to the 25-20 person. The notice may be given by certified mail. The notice 25-21 must include a brief summary of the alleged violation and a 25-22 statement of the amount of the recommended penalty and must inform 25-23 the person that the person has a right to a hearing on the 25-24 occurrence of the violation, the amount of the penalty, or both the 25-25 occurrence of the violation and the amount of the penalty. 25-26 (f) Within 20 days after the date the person receives the 25-27 notice, the person in writing may accept the determination and 26-1 recommended penalty of the executive secretary or may make a 26-2 written request for a hearing on the occurrence of the violation, 26-3 the amount of the penalty, or both the occurrence of the violation 26-4 and the amount of the penalty. 26-5 (g) If the person accepts the determination and recommended 26-6 penalty of the executive secretary, the board by order shall 26-7 approve the determination and impose the recommended penalty. 26-8 (h) If the person requests a hearing or fails to respond 26-9 timely to the notice, the board shall set a hearing and give notice 26-10 of the hearing to the person. The hearing shall be held by a 26-11 hearing examiner designated by the board. The hearing examiner 26-12 shall make findings of fact and conclusions of law and promptly 26-13 issue to the board a proposal for a decision about the occurrence 26-14 of the violation and the amount of a proposed penalty. Based on 26-15 the findings of fact, conclusions of law, and proposal for a 26-16 decision, the board by order may find that a violation has occurred 26-17 and impose a penalty or may find that no violation occurred. 26-18 (i) The notice of the board's order given to the person 26-19 under the Administrative Procedure and Texas Register Act (Article 26-20 6252-13a, Vernon's Texas Civil Statutes), and its subsequent 26-21 amendments, must include a statement of the right of the person to 26-22 judicial review of the order. 26-23 (j) Within 30 days after the date the board's order is final 26-24 as provided by Section 16(c), Administrative Procedure and Texas 26-25 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes), and 26-26 its subsequent amendments, the person shall: 26-27 (1) pay the amount of the penalty; 27-1 (2) pay the amount of the penalty and file a petition 27-2 for judicial review contesting the occurrence of the violation, the 27-3 amount of the penalty, or both the occurrence of the violation and 27-4 the amount of the penalty; or 27-5 (3) without paying the amount of the penalty, file a 27-6 petition for judicial review contesting the occurrence of the 27-7 violation, the amount of the penalty, or both the occurrence of the 27-8 violation and the amount of the penalty. 27-9 (k) Within the 30-day period, a person who acts under 27-10 Subsection (j)(3) of this section may: 27-11 (1) stay enforcement of the penalty by: 27-12 (A) paying the amount of the penalty to the 27-13 court for placement in an escrow account; or 27-14 (B) giving to the court a supersedeas bond that 27-15 is approved by the court for the amount of the penalty and that is 27-16 effective until all judicial review of the board's order is final; 27-17 or 27-18 (2) request the court to stay enforcement of the 27-19 penalty by: 27-20 (A) filing with the court a sworn affidavit of 27-21 the person stating that the person is financially unable to pay the 27-22 amount of the penalty and is financially unable to give the 27-23 supersedeas bond; and 27-24 (B) giving a copy of the affidavit to the board 27-25 by certified mail. 27-26 (l) If the board receives a copy of an affidavit under 27-27 Subsection (k)(2) of this section, the board may file with the 28-1 court, within five days after the date the copy is received, a 28-2 contest to the affidavit. The court shall hold a hearing on the 28-3 facts alleged in the affidavit as soon as practicable and shall 28-4 stay the enforcement of the penalty on finding that the alleged 28-5 facts are true. The person who files an affidavit has the burden 28-6 of proving that the person is financially unable to pay the amount 28-7 of the penalty and to give a supersedeas bond. 28-8 (m) If the person does not pay the amount of the penalty and 28-9 the enforcement of the penalty is not stayed, the board may refer 28-10 the matter to the attorney general for collection of the amount of 28-11 the penalty. 28-12 (n) Judicial review of the order of the board: 28-13 (1) is instituted by filing a petition as provided by 28-14 Section 19, Administrative Procedure and Texas Register Act 28-15 (Article 6252-13a, Vernon's Texas Civil Statutes), and its 28-16 subsequent amendments; and 28-17 (2) is under the substantial evidence rule. 28-18 (o) If the court sustains the occurrence of the violation, 28-19 the court may uphold or reduce the amount of the penalty and order 28-20 the person to pay the full or reduced amount of the penalty. If 28-21 the court does not sustain the occurrence of the violation, the 28-22 court shall order that no penalty is owed. 28-23 (p) When the judgment of the court becomes final, the court 28-24 shall proceed under this subsection. If the person paid the amount 28-25 of the penalty and if that amount is reduced or is not upheld by 28-26 the court, the court shall order that the appropriate amount plus 28-27 accrued interest be remitted to the person. The rate of the 29-1 interest is the rate charged on loans to depository institutions by 29-2 the New York Federal Reserve Bank, and the interest shall be paid 29-3 for the period beginning on the date the penalty was paid and 29-4 ending on the date the penalty is remitted. If the person gave a 29-5 supersedeas bond and if the amount of the penalty is not upheld by 29-6 the court, the court shall order the release of the bond. If the 29-7 person gave a supersedeas bond and if the amount of the penalty is 29-8 reduced, the court shall order the release of the bond after the 29-9 person pays the amount. 29-10 (q) A penalty collected under this section shall be remitted 29-11 to the comptroller for deposit in the general revenue fund. 29-12 (r) All proceedings under this section are subject to the 29-13 Administrative Procedure and Texas Register Act (Article 6252-13a, 29-14 Vernon's Texas Civil Statutes) and its subsequent amendments. 29-15 Sec. 23. INFORMAL PROCEEDINGS. (a) The board by rule shall 29-16 adopt procedures governing: 29-17 (1) informal disposition of a contested case under 29-18 Section 13(e), Administrative Procedure and Texas Register Act 29-19 (Article 6252-13a, Vernon's Texas Civil Statutes), and its 29-20 subsequent amendments; and 29-21 (2) informal proceedings held in compliance with 29-22 Section 18(c), Administrative Procedure and Texas Register Act 29-23 (Article 6252-13a, Vernon's Texas Civil Statutes), and its 29-24 subsequent amendments. 29-25 (b) Rules adopted under this section must provide the 29-26 complainant and the license holder an opportunity to be heard and 29-27 must require the presence of a representative of the office of the 30-1 attorney general to advise the board or the employees assisting the 30-2 board. 30-3 Sec. 24. MONITORING OF LICENSE HOLDER. The board by rule 30-4 shall develop a system for monitoring a license holder's compliance 30-5 with the requirements of this article. Rules adopted under this 30-6 section shall include procedures for monitoring a license holder 30-7 who is ordered by the board to perform certain acts to ascertain 30-8 that the license holder performs the required acts and to identify 30-9 and monitor license holders who represent a risk to the public. 30-10 Sec. 25. CIVIL PENALTY. A person who violates this article 30-11 is liable to the state for a civil penalty of $1,000 for each day 30-12 of violation. At the request of the board, the attorney general 30-13 shall bring an action to recover a civil penalty established by 30-14 this section. 30-15 Sec. 26. ASSISTANCE OF ATTORNEY GENERAL. The attorney 30-16 general shall provide legal assistance as necessary in enforcing 30-17 the provisions of this article. This requirement does not relieve 30-18 a local prosecuting officer of any of the prosecuting officer's 30-19 duties under the law. 30-20 Sec. 27. OFFENSE. (a) A person commits an offense if the 30-21 person knowingly or intentionally violates Section 12 of this 30-22 article. 30-23 (b) An offense under this section is a Class B misdemeanor. 30-24 Sec. 28. SUNSET PROVISION. The Texas Board of Nursing 30-25 Facility Administrators is subject to Chapter 325, Government Code 30-26 (Texas Sunset Act). Unless continued in existence as provided by 30-27 that chapter, the board is abolished and this article expires 31-1 September 1, 2005. 31-2 ARTICLE 3. EFFECTIVE DATE; TRANSITION; EMERGENCY 31-3 SECTION 3.01. This Act takes effect September 1, 1993. 31-4 SECTION 3.02. (a) The Texas Board of Licensure for Nursing 31-5 Home Administrators is abolished on the effective date of this Act. 31-6 As soon as possible after the effective date of this Act, the 31-7 governor shall appoint the initial members of the Texas Board of 31-8 Nursing Facility Administrators. In making the initial 31-9 appointments, the governor shall designate members to serve terms 31-10 as follows: 31-11 (1) two licensed nursing facility administrator 31-12 members and one public member serve terms expiring February 1, 31-13 1995; 31-14 (2) two licensed nursing facility administrator 31-15 members and one public member serve terms expiring February 1, 31-16 1997; and 31-17 (3) two licensed nursing facility administrator 31-18 members and one public member serve terms expiring February 1, 31-19 1999. 31-20 (b) On the effective date of this Act, the Texas Board of 31-21 Nursing Facility Administrators assumes the functions of the Texas 31-22 Board of Licensure for Nursing Home Administrators. The 31-23 obligations, rights, contracts, records and other property, and 31-24 personnel of and unspent money appropriated to or for the Texas 31-25 Board of Licensure for Nursing Home Administrators are transferred 31-26 to the Texas Board of Nursing Facility Administrators. The rules 31-27 of the abolished board are continued in effect as rules of the 32-1 Texas Board of Health or the Texas Board of Nursing Facility 32-2 Administrators, as appropriate, until superseded by rule of the 32-3 Texas Board of Health or the Texas Board of Nursing Facility 32-4 Administrators, as appropriate. A license in effect that was 32-5 issued by the abolished board is continued in effect as a license 32-6 of the Texas Department of Health. A complaint, investigation, or 32-7 other proceeding pending before the abolished board is transferred 32-8 without change in status to the Texas Department of Health. Any 32-9 reference in law to the Texas Board of Licensure for Nursing Home 32-10 Administrators means the Texas Board of Health, the Texas 32-11 Department of Health, or the Texas Board of Nursing Facility 32-12 Administrators, as appropriate. 32-13 SECTION 3.03. The changes in law made by this Act relating 32-14 to a penalty that may be imposed apply only to a violation that 32-15 occurs on or after the effective date of this Act. A violation 32-16 occurs on or after the effective date of this Act only if each 32-17 element of the violation occurs on or after that date. A violation 32-18 that occurs before the effective date of this Act is governed by 32-19 the law in effect on the date the violation occurred, and the 32-20 former law is continued in effect for that purpose. 32-21 SECTION 3.04. The importance of this legislation and the 32-22 crowded condition of the calendars in both houses create an 32-23 emergency and an imperative public necessity that the 32-24 constitutional rule requiring bills to be read on three several 32-25 days in each house be suspended, and this rule is hereby suspended.