S.B. No. 86
                                        AN ACT
    1-1  relating to the licensing of hospitals by the Texas Department of
    1-2  Health including the provision and appropriation of fees and the
    1-3  assessment of civil penalties and administrative penalties.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subsections (c) and (d), Section 241.022, Health
    1-6  and Safety Code, are amended to read as follows:
    1-7        (c)  The department shall require that each hospital show
    1-8  evidence that:
    1-9              (1)  at least one physician is on the medical staff of
   1-10  the hospital, including evidence that the physician is currently
   1-11  licensed; <and>
   1-12              (2)  the governing body of the hospital<:>
   1-13                    <(A)>  has adopted and implemented a patient
   1-14  transfer policy in accordance with Section 241.027; and
   1-15              (3)  if the governing body has chosen to implement
   1-16  patient transfer agreements, it <(B)> has implemented the <patient
   1-17  transfer> agreements in accordance with Section 241.028 <or has
   1-18  complied with rules adopted under Section 241.029>.
   1-19        (d)  The application must be accompanied by:
   1-20              (1)  a copy of the hospital's current patient transfer
   1-21  policy; <and>
   1-22              (2)  a nonrefundable license fee;
   1-23              (3)  copies of the hospital's patient transfer
    2-1  agreements, unless the filing of copies has been waived by the
    2-2  hospital licensing director in accordance with the rules adopted
    2-3  under this chapter; and
    2-4              (4)  a copy of the most recent annual fire safety
    2-5  inspection report from the fire marshal in whose jurisdiction the
    2-6  hospital is located<, which shall be refunded to the applicant if
    2-7  the application is denied>.
    2-8        SECTION 2.  Subchapter B, Chapter 241, Health and Safety
    2-9  Code, is amended by adding Section 241.0231 to read as follows:
   2-10        Sec. 241.0231.  TEMPORARY INITIAL LICENSE.  (a)  During the
   2-11  pendency of an application for an initial license, the department
   2-12  may grant a temporary initial license to the applicant.
   2-13        (b)  The temporary initial license is valid until the
   2-14  department issues or denies the initial license, but in no case for
   2-15  longer than six months from the date of issuance.
   2-16        (c)  The board shall adopt rules to govern the issuance of a
   2-17  temporary initial license.
   2-18        SECTION 3.  Section 241.025, Health and Safety Code, is
   2-19  amended to read as follows:
   2-20        Sec. 241.025.  LICENSE FEES.  (a)  The department shall
   2-21  charge each hospital an annual license fee for an initial license
   2-22  or a license renewal.
   2-23        (b)  The board by rule shall adopt the fees authorized by
   2-24  Subsection (a) according to a schedule in which the number of beds
   2-25  in the hospital determines the amount of the fee.  The fee may not
    3-1  exceed $10 <$3> a bed, and the total fee may not be less than $200
    3-2  <$100> or more than $10,000 <$3,000>.
    3-3        (c)  The board by rule shall adopt a temporary initial
    3-4  license fee in an amount sufficient to cover the reasonable expense
    3-5  to the department of issuing the license.
    3-6        (d)  All license fees collected shall be deposited in the
    3-7  state treasury to the credit of the department <board> to
    3-8  administer and enforce this chapter.  These fees are hereby
    3-9  appropriated to the department.
   3-10        SECTION 4.  Subsections (a), (b), and (c), Section 241.026,
   3-11  Health and Safety Code, are amended to read as follows:
   3-12        (a)  The board, with the advice of the council, shall adopt
   3-13  and enforce rules <and minimum standards> to further the purposes
   3-14  of this chapter.  The rules at a <and> minimum shall address
   3-15  <standards may relate only to>:
   3-16              (1)  minimum requirements for staffing by physicians
   3-17  and nurses;
   3-18              (2)  hospital services relating to patient care; <and>
   3-19              (3)  fire prevention, safety, and sanitation
   3-20  requirements in <sanitary provisions of> hospitals;
   3-21              (4)  patient care and a patient bill of rights; and
   3-22              (5)  compliance with other state and federal laws
   3-23  affecting the health, safety, and rights of hospital patients.
   3-24        (b)  In adopting rules, the board shall consider the
   3-25  conditions of participation for certification under Title XVIII of
    4-1  the Social Security Act (42 U.S.C. Section 1395 et seq.) and the
    4-2  standards of the Joint Commission on Accreditation of Healthcare
    4-3  Organizations and will attempt to achieve consistency with those
    4-4  conditions and standards.  <The board may not adopt standards that
    4-5  exceed the minimum standards for certification under Title XVIII of
    4-6  the Social Security Act (42 U.S.C. Section 1395 et seq.).>
    4-7        (c)  Upon the recommendation of the hospital licensing
    4-8  director <and the council>, the board by order may waive or modify
    4-9  the requirement of a particular provision of this Act or
   4-10  requirement <minimum standard> adopted by  board rule under this
   4-11  section to a particular special hospital or a particular general or
   4-12  special hospital serving a rural community if the board determines
   4-13  that the waiver or modification will facilitate the creation or
   4-14  operation of the hospital and that the waiver or modification is in
   4-15  the best interests of the individuals served or to be served by the
   4-16  hospital.
   4-17        SECTION 5.  Section 241.027, Health and Safety Code, is
   4-18  amended by amending the section heading and Subsections (a) and (c)
   4-19  and adding Subsections (e) and (f) to read as follows:
   4-20        Sec. 241.027.  <MINIMUM STANDARDS FOR> PATIENT TRANSFERS.
   4-21  (a)  The board shall adopt rules to govern <implement the minimum
   4-22  standards governing> the transfer of patients between hospitals
   4-23  that do not have a transfer agreement and governing services not
   4-24  included in transfer agreements.  <The board shall base the rules
   4-25  on the recommendations made by the advisory committee established
    5-1  by Section 241.029.>
    5-2        (c)  The rules must require that if a patient at a hospital
    5-3  has an emergency medical condition which has not been stabilized,
    5-4  the hospital may not transfer the patient unless:
    5-5              (1)  the patient or a legally responsible person acting
    5-6  on the patient's behalf, after being informed of the hospital's
    5-7  obligations under this section and of the risk of transfer, in
    5-8  writing requests transfer to another medical facility;
    5-9              (2)  a licensed physician has signed a certification,
   5-10  which includes a summary of the risks and benefits, that, based on
   5-11  the information available at the time of transfer, the medical
   5-12  benefits reasonably expected from the provision of appropriate
   5-13  medical treatment at another medical facility outweigh the
   5-14  increased risks to the patient and, in the case of labor, to the
   5-15  unborn child from effecting the transfer; or
   5-16              (3)  if a licensed physician is not physically present
   5-17  in the emergency department at the time a patient is transferred, a
   5-18  qualified medical person has signed a certification described in
   5-19  Subdivision (2) after a licensed physician, in consultation with
   5-20  the person, has made the determination described in such clause and
   5-21  subsequently countersigns the certificate <board may not adopt
   5-22  minimum standards that require the consent of the patient or the
   5-23  patient's personal representative before the patient is
   5-24  transferred>.
   5-25        (e)  The rules must require that a hospital take all
    6-1  reasonable steps to secure the informed refusal of a patient or of
    6-2  a person acting on the patient's behalf to a transfer or to related
    6-3  examination and treatment.
    6-4        (f)  The rules must recognize any contractual, statutory, or
    6-5  regulatory obligations that may exist between a patient and a
    6-6  designated or mandated provider as those obligations apply to the
    6-7  transfer of emergency or nonemergency patients.
    6-8        SECTION 6.  Section 241.028, Health and Safety Code, is
    6-9  amended by amending Subsection (c) and adding Subsection (d) to
   6-10  read as follows:
   6-11        (c)  At a minimum, a transfer agreement must provide that:
   6-12              (1)  transfers be accomplished in a medically
   6-13  appropriate manner and comply with Sections 241.027(b)(2) through
   6-14  (5) and Section 241.027(c);
   6-15              (2)  the transfer or receipt of patients in need of
   6-16  emergency care not be based on the individual's inability to pay
   6-17  for the services rendered by the transferring or receiving
   6-18  hospital;
   6-19              (3)  multiple transfer agreements be entered into by a
   6-20  hospital based on the type or level of medical services available
   6-21  at other hospitals;
   6-22              (4)  the hospitals recognize the right of an individual
   6-23  to request transfer to the care of a physician and hospital of the
   6-24  individual's choice;
   6-25              (5)  the hospitals recognize and comply with the
    7-1  requirements of Chapter 61 (Indigent Health Care and Treatment Act)
    7-2  relating to the transfer of patients to mandated providers; and
    7-3              (6)  consideration be given to availability of
    7-4  appropriate facilities, services, and staff for providing care to
    7-5  the patient.
    7-6        (d)  If a hospital transfers a patient in violation of
    7-7  Subsection (c)(1), (2), (4), (5), or (6), relating to required
    7-8  provisions for a transfer agreement, the violation is a violation
    7-9  of this chapter.
   7-10        SECTION 7.  Section 241.029, Health and Safety Code, is
   7-11  repealed.
   7-12        SECTION 8.  Section 241.051, Health and Safety Code, is
   7-13  amended to read as follows:
   7-14        Sec. 241.051.  INSPECTIONS.  (a)  The department may make any
   7-15  inspection, survey, or investigation that it considers necessary.
   7-16  A representative <An officer, employee, or agent> of the department
   7-17  may enter the premises of <and inspect>   a hospital at any
   7-18  reasonable time to make an inspection, a survey, or an
   7-19  investigation to assure compliance with or prevent a violation of
   7-20  this chapter, the rules adopted under this chapter, an order or
   7-21  special order of the commissioner of health, a special license
   7-22  provision, a court order granting injunctive relief, or other
   7-23  enforcement procedures.  The department shall maintain the
   7-24  confidentiality of hospital records as applicable under state or
   7-25  federal law.
    8-1        (b)  The department or a representative of the department is
    8-2  entitled to access to all books, records, or other documents
    8-3  maintained by or on behalf of the hospital to the extent necessary
    8-4  to enforce this chapter, the rules adopted under this chapter, an
    8-5  order or special order of the commissioner of health, a special
    8-6  license provision, a court order granting injunctive relief, or
    8-7  other enforcement procedures.
    8-8        (c)  By applying for or holding a hospital license, the
    8-9  hospital consents to entry and inspection of the hospital by the
   8-10  department or a representative of the department in accordance with
   8-11  this chapter and the rules adopted under this chapter.
   8-12        SECTION 9.  Section 241.053, Health and Safety Code, is
   8-13  amended to read as follows:
   8-14        Sec. 241.053.  DENIAL OF APPLICATION, SUSPENSION, REVOCATION,
   8-15  OR REISSUANCE OF LICENSE.  (a)  The department, after providing
   8-16  notice and an opportunity for a hearing to the applicant or license
   8-17  holder, may deny, suspend, or revoke a hospital's license if the
   8-18  department finds that the hospital:
   8-19              (1)  failed <substantially> to comply with:
   8-20                    (A)  a provision of this chapter;
   8-21                    (B)  <or> a rule <or standard> adopted under this
   8-22  chapter;
   8-23                    (C)  a special license condition;
   8-24                    (D)  an order or emergency order by the
   8-25  commissioner of health; or
    9-1                    (E)  another enforcement procedure permitted
    9-2  under this chapter;
    9-3              (2)  has a history of noncompliance with the rules
    9-4  adopted under this chapter relating to patient health, safety, and
    9-5  rights which reflects more than nominal noncompliance; or
    9-6              (3)  has aided, abetted, or permitted the commission of
    9-7  an illegal act.
    9-8        (b)  A hospital whose license is suspended or revoked may
    9-9  apply to the department for the reissuance of a license.  The
   9-10  department may reissue the license if the department determines
   9-11  that the hospital has corrected the conditions that led to the
   9-12  suspension or revocation of the hospital's license, the initiation
   9-13  of enforcement action against the hospital, the assessment of
   9-14  administrative penalties, or the issuance of a court order
   9-15  enjoining the hospital from violations or assessing civil penalties
   9-16  against the hospital.
   9-17        (c)  A hospital must apply for reissuance in the form and
   9-18  manner required in the rules adopted under this chapter <by the
   9-19  department>.
   9-20        (d)  Administrative hearings required under this section
   9-21  shall be conducted under the board's formal hearing rules and the
   9-22  contested case provisions of the Administrative Procedure and Texas
   9-23  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) and
   9-24  its subsequent amendments.
   9-25        (e)  Judicial review of a final decision by the department is
   10-1  by trial de novo in the same manner as a case appealed from the
   10-2  justice court to the county court.  The substantial evidence rule
   10-3  does not apply.
   10-4        SECTION 10.  Subchapter C, Chapter 241, Health and Safety
   10-5  Code, is amended by adding Section 241.0531 to read as follows:
   10-6        Sec. 241.0531.  COMMISSIONER'S EMERGENCY ORDERS.
   10-7  (a)  Following notice to the hospital and opportunity for hearing,
   10-8  the commissioner of health or a person designated by the
   10-9  commissioner may issue an emergency order, either mandatory or
  10-10  prohibitory in nature, in relation to the operation of a hospital
  10-11  licensed under this chapter if the commissioner or the
  10-12  commissioner's designee determines that the hospital is violating
  10-13  or threatening to violate this chapter, a rule adopted pursuant to
  10-14  this chapter, a special license provision, injunctive relief issued
  10-15  pursuant to Section 241.054, an order of the commissioner or the
  10-16  commissioner's designee, or another enforcement procedure permitted
  10-17  under this chapter and the provision, rule, license provision,
  10-18  injunctive relief, order, or enforcement procedure relates to the
  10-19  health or safety of the hospital's patients.
  10-20        (b)  The department shall send written notice of the hearing
  10-21  and shall include within the notice the time and place of the
  10-22  hearing.  The hearing must be held within 10 days after the date of
  10-23  the hospital's receipt of the notice.
  10-24        (c)  The hearing shall not be governed by the contested case
  10-25  provisions of the Administrative Procedure and Texas Register Act
   11-1  (Article 6252-13a, Vernon's Texas Civil Statutes) and its
   11-2  subsequent amendments but shall instead be held in accordance with
   11-3  the board's informal hearing rules.
   11-4        (d)  The order shall be effective on delivery to the hospital
   11-5  or at a later date specified in the order.
   11-6        SECTION 11.  Section 241.055, Health and Safety Code, is
   11-7  amended to read as follows:
   11-8        Sec. 241.055.  CIVIL PENALTY.  (a)  A hospital shall<:  (1)>
   11-9  timely adopt, implement, and enforce a patient transfer policy in
  11-10  accordance with Section 241.027.  A hospital may<; and (2)>
  11-11  implement patient transfer agreements in accordance with Section
  11-12  241.028 <or comply with rules adopted under Section 241.029>.
  11-13        (b)  A hospital that violates Subsection (a) is liable for a
  11-14  civil penalty of not more than $1,000 for each day of violation and
  11-15  for each act of violation.
  11-16        (c)  In determining the amount of the penalty, the district
  11-17  court shall consider:
  11-18              (1)  the hospital's previous violations;
  11-19              (2)  the seriousness of the violation;
  11-20              (3)  whether the health and safety of the public was
  11-21  threatened by the violation; and
  11-22              (4)  the demonstrated good faith of the hospital.
  11-23        SECTION 12.  Subsection (a), Section 241.056, Health and
  11-24  Safety Code, is amended to read as follows:
  11-25        (a)  A person who is harmed by a violation under Section
   12-1  241.028 or 241.055 may petition a district court for appropriate
   12-2  injunctive relief.
   12-3        SECTION 13.  Subchapter C, Chapter 241, Health and Safety
   12-4  Code, is amended by adding Section 241.058 to read as follows:
   12-5        Sec. 241.058.  MINOR VIOLATIONS.  (a)  This chapter does not
   12-6  require the commissioner of health or a designee of the
   12-7  commissioner to report a minor violation for prosecution or the
   12-8  institution of any other enforcement proceeding authorized under
   12-9  this chapter, if the commissioner or a designee of the commissioner
  12-10  determines that prosecution or enforcement is not in the best
  12-11  interests of the persons served or to be served by the hospital.
  12-12        (b)  For the purpose of this section, a "minor violation"
  12-13  means a violation of this chapter, the rules adopted under this
  12-14  chapter, a special license provision, an order or emergency order
  12-15  issued by the commissioner of health or the commissioner's
  12-16  designee, or another enforcement procedure permitted under this
  12-17  chapter by a hospital that does not constitute a threat to the
  12-18  health, safety, and rights of the hospital's patients or other
  12-19  persons.
  12-20        SECTION 14.  Subchapter C, Chapter 241, Health and Safety
  12-21  Code, is amended by adding Section 241.059 to read as follows:
  12-22        Sec. 241.059.  ADMINISTRATIVE PENALTY.  (a)  The commissioner
  12-23  of health may assess an administrative penalty against a hospital
  12-24  that violates this chapter, a rule adopted pursuant to this
  12-25  chapter, a special license provision, an order or emergency order
   13-1  issued by the commissioner or the commissioner's designee, or
   13-2  another enforcement procedure permitted under this chapter.
   13-3        (b)  In determining the amount of the penalty, the
   13-4  commissioner of health shall consider:
   13-5              (1)  the hospital's previous violations;
   13-6              (2)  the seriousness of the violation;
   13-7              (3)  any threat to the health, safety, or rights of the
   13-8  hospital's patients;
   13-9              (4)  the demonstrated good faith of the hospital; and
  13-10              (5)  such other matters as justice may require.
  13-11        (c)  The penalty may not exceed $1,000 for each violation.
  13-12  Each day of a continuing violation may be considered a separate
  13-13  violation.
  13-14        (d)  When it is determined that a violation has occurred the
  13-15  commissioner of health shall issue a report that states the facts
  13-16  on which the determination is based and the commissioner's
  13-17  recommendation on the imposition of a penalty, including a
  13-18  recommendation on the amount of the penalty.
  13-19        (e)  Within 14 days after the date the report is issued, the
  13-20  commissioner of health shall give written notice of the report to
  13-21  the person, delivered by certified mail.  The notice must include a
  13-22  brief summary of the alleged violation and a statement of the
  13-23  amount of the recommended penalty and must inform the person that
  13-24  the person has a right to a hearing on the occurrence of the
  13-25  violation, the amount of the penalty, or both the occurrence of the
   14-1  violation and the amount of the penalty.
   14-2        (f)  Within 20 days after the date the person receives the
   14-3  notice, the person in writing may accept the determination and
   14-4  recommended penalty of the commissioner of health or may make a
   14-5  written request for a  hearing on the occurrence of the violation,
   14-6  the amount of the penalty, or both the occurrence of the violation
   14-7  and the amount of the penalty.
   14-8        (g)  If the person accepts the determination and recommended
   14-9  penalty of the commissioner of health, the commissioner by order
  14-10  shall impose the recommended penalty.
  14-11        (h)  If the person requests a hearing or fails to respond
  14-12  timely to the notice, the commissioner of health shall set a
  14-13  hearing and give notice of the hearing to the person.  The hearing
  14-14  shall be held by the department.  The person conducting the hearing
  14-15  shall make findings of fact and conclusions of law and promptly
  14-16  issue to the commissioner a proposal for a decision about the
  14-17  occurrence of the violation and the amount of the penalty.  Based
  14-18  on the findings of fact, conclusions of law, and proposal for a
  14-19  decision, the commissioner by order may find that a violation has
  14-20  occurred and impose a penalty or may find that no violation
  14-21  occurred.
  14-22        (i)  The notice of the commissioner of health's order given
  14-23  to the person under the Administrative Procedure and Texas Register
  14-24  Act (Article 6252-13a, Vernon's Texas Civil Statutes) and its
  14-25  subsequent amendments must include a statement of the right of the
   15-1  person to judicial review of the order.
   15-2        (j)  Within 30 days after the date the commissioner of
   15-3  health's order is final as provided by Section 16(c),
   15-4  Administrative Procedure and Texas Register Act (Article 6252-13a,
   15-5  Vernon's Texas Civil Statutes), and its subsequent amendments, the
   15-6  person shall:
   15-7              (1)  pay the amount of the penalty;
   15-8              (2)  pay the amount of the penalty and file a petition
   15-9  for judicial review contesting the occurrence of the violation, the
  15-10  amount of the penalty, or both the occurrence of the violation and
  15-11  the amount of the penalty; or
  15-12              (3)  without paying the amount of the penalty, file a
  15-13  petition for judicial review contesting the occurrence of the
  15-14  violation, the amount of the penalty, or both the occurrence of the
  15-15  violation and the amount of the penalty.
  15-16        (k)  Within the 30-day period, a person who acts under
  15-17  Subsection (j)(3) may:
  15-18              (1)  stay enforcement of the penalty by:
  15-19                    (A)  paying the amount of the penalty to the
  15-20  court for placement in an escrow account; or
  15-21                    (B)  giving to the court a supersedeas bond that
  15-22  is approved by the court for the amount of the penalty and that is
  15-23  effective until all judicial review of the board's order is final;
  15-24  or
  15-25              (2)  request the court to stay enforcement of the
   16-1  penalty by:
   16-2                    (A)  filing with the court a sworn affidavit of
   16-3  the person stating that the person is financially unable to pay the
   16-4  amount of the penalty and is financially unable to give the
   16-5  supersedeas bond; and
   16-6                    (B)  giving a copy of the affidavit to the
   16-7  commissioner of health by certified mail.
   16-8        (l)  When the commissioner of health receives a copy of an
   16-9  affidavit under Subsection (k)(2), he may file with the court,
  16-10  within five days after the date the copy is received, a contest to
  16-11  the affidavit.  The court shall hold a hearing on the facts alleged
  16-12  in the affidavit as soon as practicable and shall stay the
  16-13  enforcement of the penalty on finding that the alleged facts are
  16-14  true.  The person who files an affidavit has the burden of proving
  16-15  that the person is financially unable to pay the amount of the
  16-16  penalty and to give a supersedeas bond.
  16-17        (m)  If the person does not pay the amount of the penalty and
  16-18  the enforcement of the penalty is not stayed, the commissioner of
  16-19  health may refer the matter to the attorney general for collection
  16-20  of the amount of the penalty.
  16-21        (n)  Judicial review of the order of the commissioner of
  16-22  health:
  16-23              (1)  is instituted by filing a petition as provided by
  16-24  Section 19, Administrative Procedure and Texas Register Act
  16-25  (Article 6252-13a, Vernon's Texas Civil Statutes), and its
   17-1  subsequent amendments; and
   17-2              (2)  is under the substantial evidence rule.
   17-3        (o)  If the court sustains the occurrence of the violation,
   17-4  the court may uphold or reduce the amount of the penalty and order
   17-5  the person to pay the full or reduced amount of the penalty.  If
   17-6  the court does not sustain the occurrence of the violation, the
   17-7  court shall order that no penalty is owed.
   17-8        (p)  When the judgment of the court becomes final, the court
   17-9  shall proceed under this subsection.  If the person paid the amount
  17-10  of the penalty and if that amount is reduced or is not upheld by
  17-11  the court, the court shall order that the appropriate amount plus
  17-12  accrued interest be remitted to the person within 30 days after the
  17-13  judgment of the court becomes final.  The rate of the interest is
  17-14  the rate charged on loans to depository institutions by the New
  17-15  York Federal Reserve Bank, and the interest shall be paid for the
  17-16  period beginning on the date the penalty was paid and ending on the
  17-17  date the penalty is remitted.  If the person gave a supersedeas
  17-18  bond and if the amount of the penalty is not upheld by the court,
  17-19  the court shall order the release of the bond.  If the person gave
  17-20  a supersedeas bond and if the amount of the penalty is reduced, the
  17-21  court shall order the release of the bond after the person pays the
  17-22  amount.
  17-23        (q)  A penalty collected under this section shall be remitted
  17-24  to the comptroller for deposit in the general revenue fund.
  17-25        (r)  All proceedings under this section are subject to the
   18-1  Administrative Procedure and Texas Register Act (Article 6252-13a,
   18-2  Vernon's Texas Civil Statutes) and its subsequent amendments.
   18-3        SECTION 15.  Section 241.104, Health and Safety Code, is
   18-4  amended to read as follows:
   18-5        Sec. 241.104.  HOSPITAL PLAN REVIEWS.  (a)  The board by rule
   18-6  shall adopt fees for hospital plan reviews according to a schedule
   18-7  based on the estimated construction costs.  If an estimated
   18-8  construction cost cannot be established, the estimated cost is $105
   18-9  per square foot.
  18-10        (b)  The fee schedule may not exceed the following:
  18-11                    Cost of Construction         Fee
  18-12              (1)  $   600,000 or less        $  500   <250>
  18-13              (2)  $   600,001 - $ 2,000,000   1,000   <500>
  18-14              (3)  $ 2,000,001 - $ 5,000,000   1,500   <750>
  18-15              (4)  $ 5,000,001 - $10,000,000   2,000 <1,000>
  18-16              (5)  $10,000,001 and over        3,000 <1,500>
  18-17        (c)  The department shall charge a fee for field surveys of
  18-18  construction plans reviewed under this section.  The board by rule
  18-19  shall adopt a fee schedule for the surveys that provides a minimum
  18-20  fee of $100 and a maximum fee of $400 for each survey conducted.
  18-21        SECTION 16.  Section 222.024, Health and Safety Code, is
  18-22  amended to read as follows:
  18-23        Sec. 222.024.  CERTIFICATION OR ACCREDITATION INSTEAD OF
  18-24  INSPECTION.  (a)  A hospital licensed by the Texas Department of
  18-25  Health or the Texas Department of Mental Health and Mental
   19-1  Retardation is not subject to additional annual licensing
   19-2  inspections before the agency issues the hospital a license under
   19-3  Chapter 241 (Texas Hospital Licensing Law) or by the licensing
   19-4  agency while the hospital maintains:
   19-5              (1)  certification under Title XVIII of the Social
   19-6  Security Act (42 U.S.C. Section 1395 et seq.); or
   19-7              (2)  accreditation from the Joint Commission on
   19-8  Accreditation of Healthcare <Health> Organizations, the American
   19-9  Osteopathic Association, or other national accreditation
  19-10  organization for the offered services.
  19-11        (b)  If the Texas Department of Mental Health and Mental
  19-12  Retardation licenses <An agency licensing> a hospital exempt from a
  19-13  licensing inspection under Subsection (a), that agency shall issue
  19-14  a renewal license to the hospital if the hospital annually remits
  19-15  any applicable fees and submits a copy of the most recent
  19-16  inspection results report from the certification or accreditation
  19-17  body.
  19-18        (c)  If the Texas Department of Health licenses a hospital
  19-19  exempt from a licensing inspection under Subsection (a), that
  19-20  agency shall issue a renewal license to the hospital if the
  19-21  hospital annually:
  19-22              (1)  submits a complete application required by the
  19-23  department;
  19-24              (2)  remits any applicable fees;
  19-25              (3)  submits a copy of documentation from the
   20-1  certification or accreditation body showing that the hospital is
   20-2  certified or accredited; and
   20-3              (4)  submits a copy of the most recent fire safety
   20-4  inspection report from the fire marshal in whose jurisdiction the
   20-5  hospital is located.
   20-6        SECTION 17.  Section 222.026, Health and Safety Code, is
   20-7  amended to read as follows:
   20-8        Sec. 222.026.  COMPLAINT INVESTIGATIONS AND ENFORCEMENT
   20-9  AUTHORITY <PATIENT TRANSFER AUTHORITY NOT AFFECTED>.  (a)  Sections
  20-10  222.024, 222.025, and 222.0255 do not affect the authority of the
  20-11  Texas Department of Health to implement and enforce the provisions
  20-12  of Chapter 241 (Texas Hospital Licensing Law) to:
  20-13              (1)  reinspect a hospital if a hospital applies for the
  20-14  reissuance of its license after a final ruling upholding the
  20-15  suspension or revocation of a hospital's license, the assessment of
  20-16  administrative or civil penalties, or the issuance of an injunction
  20-17  against the hospital for violations of provisions of the licensing
  20-18  law, rules adopted under the licensing law, special license
  20-19  conditions, or orders of the commissioner of health; or
  20-20              (2)  investigate a complaint against a hospital and, if
  20-21  appropriate, enforce the provisions of the licensing law on a
  20-22  finding by the department that reasonable cause exists to believe
  20-23  that the hospital has violated provisions of the licensing law,
  20-24  rules adopted under the licensing law, special license conditions,
  20-25  or orders of the commissioner of health; provided, however, that
   21-1  the department shall coordinate with the federal Health Care
   21-2  Financing Administration and its agents responsible for the
   21-3  inspection of hospitals to determine compliance with the conditions
   21-4  of participation under Title XVIII of the Social Security Act (42
   21-5  U.S.C. Section 1395 et seq.), so as to avoid duplicate
   21-6  investigations <relating to the transfer of hospital patients or
   21-7  the department's means of implementing and enforcing those
   21-8  provisions>.
   21-9        (b)  The department shall by rule establish a procedure for
  21-10  the acceptance and timely review of complaints received from
  21-11  hospitals concerning the objectivity, training, and qualifications
  21-12  of the persons conducting the inspection.
  21-13        SECTION 18.  This Act takes effect September 1, 1993.
  21-14        SECTION 19.  If on the effective date of this legislation the
  21-15  powers and duties of the Texas Board of Health, the commissioner of
  21-16  health, and the Texas Department of Health have been transferred to
  21-17  the Department of Public Health as provided for in Chapter 15, Acts
  21-18  of the 72nd Legislature, 1st Called Session, 1991, each reference
  21-19  in this Act to the Texas Board of Health, the commissioner of
  21-20  health, or the Texas Department of Health means the Board of Public
  21-21  Health, the director of the Department of Public Health, or the
  21-22  Department of Public Health, respectively.
  21-23        SECTION 20.  The importance of this legislation and the
  21-24  crowded condition of the calendars in both houses create an
  21-25  emergency and an imperative public necessity that the
   22-1  constitutional rule requiring bills to be read on three several
   22-2  days in each house be suspended, and this rule is hereby suspended.