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.