By:  Moncrief                                           S.B. No. 86
                                 A BILL TO BE ENTITLED
                                        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  director in accordance with the rules adopted under this chapter;
    2-3  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 expense to the
    3-5  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)  The board may <not> adopt rules <standards> that are at
   3-25  least as stringent as <exceed> the conditions of participation
    4-1  <minimum standards> for certification under Title XVIII of the
    4-2  Social Security Act (42 U.S.C. Section 1395 et seq.).
    4-3        (c)  Upon the recommendation of the hospital licensing
    4-4  director <and the council>, the board by order may waive or modify
    4-5  the requirement of a particular provision of this Act or
    4-6  requirement <minimum standard> adopted by  board rule under this
    4-7  section to a particular special hospital or a particular general or
    4-8  special hospital serving a rural community if the board determines
    4-9  that the waiver or modification will facilitate the creation or
   4-10  operation of the hospital and that the waiver or modification is in
   4-11  the best interests of the individuals served or to be served by the
   4-12  hospital.
   4-13        SECTION 5.  Subsections (a) and (c), Section 241.027, Health
   4-14  and Safety Code, are amended to read as follows:
   4-15        Sec. 241.027.  <MINIMUM STANDARDS FOR> PATIENT TRANSFERS.
   4-16  (a)  The board shall adopt rules to govern <implement the minimum
   4-17  standards governing> the transfer of patients between hospitals
   4-18  that do not have a transfer agreement and governing services not
   4-19  included in transfer agreements.  <The board shall base the rules
   4-20  on the recommendations made by the advisory committee established
   4-21  by Section 241.029.>
   4-22        (c)  The rules must require that a hospital take all
   4-23  reasonable steps to secure the informed consent or refusal of the
   4-24  patient or of a person acting on the patient's behalf to a transfer
   4-25  <board may not adopt minimum standards that require the consent of
    5-1  the patient or the patient's personal representative before the
    5-2  patient is transferred>.
    5-3        SECTION 6.  Section 241.028, Health and Safety Code, is
    5-4  amended by amending Subsection (c) and by adding Subsection (d) to
    5-5  read as follows:
    5-6        (c)  At a minimum, a transfer agreement must provide that:
    5-7              (1)  transfers be accomplished in a medically
    5-8  appropriate manner and comply with Sections 241.027(b)(2) through
    5-9  (5) and Section 241.027(c);
   5-10              (2)  the transfer or receipt of patients in need of
   5-11  emergency care not be based on the individual's inability to pay
   5-12  for the services rendered by the transferring or receiving
   5-13  hospital;
   5-14              (3)  multiple transfer agreements be entered into by a
   5-15  hospital based on the type or level of medical services available
   5-16  at other hospitals;
   5-17              (4)  the hospitals recognize the right of an individual
   5-18  to request transfer to the care of a physician and hospital of the
   5-19  individual's choice;
   5-20              (5)  the hospitals recognize and comply with the
   5-21  requirements of Chapter 61 (Indigent Health Care and Treatment Act)
   5-22  relating to the transfer of patients to mandated providers; and
   5-23              (6)  consideration be given to availability of
   5-24  appropriate facilities, services, and staff for providing care to
   5-25  the patient.
    6-1        (d)  If a hospital transfers a patient in violation of
    6-2  Subsection (c)(1), (2), (4), (5), or (6), relating to required
    6-3  provisions for a transfer agreement, the violation is a violation
    6-4  of this chapter.
    6-5        SECTION 7.  Section 241.029, Health and Safety Code, is
    6-6  repealed.
    6-7        SECTION 8.  Section 241.051, Health and Safety Code, is
    6-8  amended to read as follows:
    6-9        Sec. 241.051.  INSPECTIONS.  (a)  The department may make any
   6-10  inspection, survey, or investigation that it considers necessary.
   6-11  A representative of the department may enter the premises of a
   6-12  hospital at any reasonable time to make an inspection, a survey, or
   6-13  an investigation <An officer, employee, or agent of the department
   6-14  may enter and inspect a hospital at any reasonable time> to assure
   6-15  compliance with or prevent a violation of this chapter, the rules
   6-16  adopted under this chapter, an order or special order of the
   6-17  commissioner, a special license provision, a court order granting
   6-18  injunctive relief, or other enforcement procedures.
   6-19        (b)  The department or a representative of the department is
   6-20  entitled to access to all books, records, or other documents
   6-21  maintained by or on behalf of the hospital to the extent necessary
   6-22  to enforce this chapter, the rules adopted under this chapter, an
   6-23  order or special order of the commissioner, a special license
   6-24  provision, a court order granting injunctive relief, or other
   6-25  enforcement procedures.
    7-1        (c)  By applying for or holding a hospital license, the
    7-2  hospital consents to entry and inspection of the hospital by the
    7-3  department or a representative of the department in accordance with
    7-4  this chapter and the rules adopted under this chapter.
    7-5        SECTION 9.  Section 241.053, Health and Safety Code, is
    7-6  amended to read as follows:
    7-7        Sec. 241.053.  DENIAL OF APPLICATION, SUSPENSION, REVOCATION,
    7-8  OR REISSUANCE OF LICENSE.  (a)  The department, after providing
    7-9  notice and an opportunity for a hearing to the applicant or license
   7-10  holder, may deny, suspend, or revoke a hospital's license if the
   7-11  department finds that the hospital:
   7-12              (1)  failed <substantially> to comply with:
   7-13                    (A)  a provision of this chapter;
   7-14                    (B)  <or> a rule <or standard> adopted under this
   7-15  chapter;
   7-16                    (C)  a special license condition;
   7-17                    (D)  an order or emergency order by the
   7-18  commissioner; or
   7-19                    (E)  another enforcement procedure permitted
   7-20  under this chapter;
   7-21              (2)  has a history of noncompliance with the rules
   7-22  adopted under this chapter relating to patient health, safety, and
   7-23  rights; or
   7-24              (3)  has aided, abetted, or permitted the commission of
   7-25  an illegal act.
    8-1        (b)  A hospital whose license is suspended or revoked may
    8-2  apply to the department for the reissuance of a license.  The
    8-3  department may reissue the license if the department determines
    8-4  that the hospital has corrected the conditions that led to the
    8-5  suspension or revocation of the hospital's license, the initiation
    8-6  of enforcement action against the hospital, the assessment of
    8-7  administrative penalties, or the issuance of a court order
    8-8  enjoining the hospital from violations or assessing civil penalties
    8-9  against the hospital.
   8-10        (c)  A hospital must apply for reissuance in the form and
   8-11  manner required in the rules adopted under this chapter <by the
   8-12  department>.
   8-13        (d)  Administrative hearings required under this section
   8-14  shall be conducted under the board's formal hearing rules and the
   8-15  contested case provisions of the Administrative Procedure and Texas
   8-16  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes).
   8-17        (e)  Judicial review of a final decision by the department is
   8-18  governed by the substantial evidence rule <by trial de novo in the
   8-19  same manner as a case appealed from the justice court to the county
   8-20  court.  The substantial evidence rule does not apply>.
   8-21        SECTION 10.  Chapter 241, Health and Safety Code, is amended
   8-22  by adding Section 241.0531 to read as follows:
   8-23        Sec. 241.0531.  COMMISSIONER'S EMERGENCY ORDERS.  (a)  The
   8-24  commissioner or a person designated by the commissioner may issue
   8-25  an emergency order, either mandatory or prohibitory in nature, in
    9-1  relation to the operation of a hospital licensed under this chapter
    9-2  if the commissioner or the commissioner's designee determines that:
    9-3              (1)  the hospital is violating or threatening to
    9-4  violate this chapter, a rule adopted pursuant to this chapter, a
    9-5  special license provision, injunctive relief issued pursuant to
    9-6  Section 241.054, an order of the commissioner or the commissioner's
    9-7  designee, or another enforcement procedure permitted under this
    9-8  chapter and the provision, rule, license provision, injunctive
    9-9  relief, or order  relates to the health, safety, or rights of the
   9-10  hospital's patients; and
   9-11              (2)  the other procedures available to the department
   9-12  to remedy or prevent the violation or threatened violation will
   9-13  result in unreasonable delay.
   9-14        (b)  The commissioner or the commissioner's designee may
   9-15  issue an emergency order without notice and hearing if the
   9-16  commissioner or the commissioner's designee determines that the
   9-17  circumstances necessitate such action.  The order shall be
   9-18  effective on delivery to the hospital or at a later date specified
   9-19  in the order.
   9-20        (c)  If an emergency order is issued without a hearing, the
   9-21  department shall determine a time and place for a hearing at which
   9-22  the emergency order may be affirmed, modified, or set aside.  The
   9-23  hearing must be held within 10 days after the day on which the
   9-24  emergency order became effective.
   9-25        (d)  The hearing required shall be held under the contested
   10-1  case provisions of the Administrative Procedure and Texas Register
   10-2  Act (Article 6252-13a, Vernon's Texas Civil Statutes) and the
   10-3  board's formal hearing rules.
   10-4        SECTION 11.  Section 241.054, Health and Safety Code, is
   10-5  amended to read as follows:
   10-6        Sec. 241.054.  INJUNCTION; CIVIL PENALTY.  (a)  If it appears
   10-7  that a hospital has violated, is violating, or is threatening to
   10-8  violate this chapter or a rule or order issued under this chapter,
   10-9  the commissioner may request the attorney general or a district,
  10-10  county, or city attorney of the city or county in which the
  10-11  violation has occurred, is occurring, or may occur to institute a
  10-12  civil suit for:
  10-13              (1)  injunctive relief to restrain the hospital from
  10-14  continuing the violation or threat of violation;
  10-15              (2)  the assessment and recovery of a civil penalty for
  10-16  a violation or continuing violation; or
  10-17              (3)  both injunctive relief and civil penalty.
  10-18        (b)  For a hospital with more than 100 beds, the penalty may
  10-19  not exceed $50,000 for each violation.  For a hospital with fewer
  10-20  than 100 beds, the penalty may not exceed $25,000 for each
  10-21  violation.  Each day of a continuing violation may be considered a
  10-22  separate violation for the purpose of penalty assessment.
  10-23        (c)  In determining the amount of the penalty, the court
  10-24  shall consider:
  10-25              (1)  the hospital's previous violations;
   11-1              (2)  the seriousness of the violation;
   11-2              (3)  any threat to the health, safety, or rights of the
   11-3  hospital's patients;
   11-4              (4)  the demonstrated good faith of the hospital; and
   11-5              (5)  such other matters as justice may require.
   11-6        (d)  Any civil penalty recovered in a suit instituted by the
   11-7  attorney general under this chapter shall be deposited in the state
   11-8  treasury to the credit of the general revenue fund.  Any civil
   11-9  penalty recovered in a suit instituted by a district, county, or
  11-10  city attorney under this chapter shall be paid to the local
  11-11  government.
  11-12        (e)  Venue for a suit brought under this section is in the
  11-13  county in which the violation or threat of violation occurred or in
  11-14  Travis County.
  11-15        (f)  The commissioner, the attorney general, or a district,
  11-16  county, or city attorney may each recover reasonable expenses
  11-17  incurred in obtaining injunctive relief or civil penalties under
  11-18  this section.  Expenses include investigative costs, court costs,
  11-19  reasonable attorney fees, witness fees, and deposition expenses.
  11-20  The expenses recovered by the commissioner are hereby appropriated
  11-21  to the department for the administration and enforcement of this
  11-22  chapter.  The expenses recovered by the attorney general, a
  11-23  district attorney, county attorney, or city attorney are hereby
  11-24  appropriated to the office that initiated the cause of action.
  11-25  <VIOLATIONS; INJUNCTIONS.  (a)  The department shall:>
   12-1              <(1)  notify a hospital of a finding by the department
   12-2  that the hospital is violating or has violated this chapter or a
   12-3  rule or standard adopted under this chapter; and>
   12-4              <(2)  provide the hospital an opportunity to correct
   12-5  the violation.>
   12-6        <(b)  After the notice and opportunity to comply, the
   12-7  department may petition a district court in the county in which a
   12-8  violation occurs for assessment and recovery of the civil penalty
   12-9  provided by Section 241.055, for injunctive relief, or both.>
  12-10        <(c)  The department may petition a district court for a
  12-11  temporary restraining order to restrain a continuing violation if
  12-12  the department finds that the violation creates an immediate threat
  12-13  to the health and safety of the patients of a hospital.>
  12-14        <(d)  The district court shall grant the injunctive relief
  12-15  warranted by the facts.>
  12-16        <(e)  The attorney general or the appropriate district or
  12-17  county attorney shall initiate and conduct the suit at the request
  12-18  of the commissioner of health.>
  12-19        SECTION 12.  Chapter 241, Health and Safety Code, is amended
  12-20  by amending Section 241.055 and by adding Sections 241.0551 through
  12-21  241.0554 to read as follows:
  12-22        Sec. 241.055.  ADMINISTRATIVE <CIVIL> PENALTY.  (a)  The
  12-23  commissioner may assess an administrative penalty against a
  12-24  hospital that violates this chapter, a rule adopted pursuant to
  12-25  this chapter, a special license provision, an order or emergency
   13-1  order 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 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)  For a hospital with more than 100 beds, the penalty may
  13-12  not exceed $50,000 for each violation.  For a hospital with fewer
  13-13  than 100 beds, the penalty may not exceed $25,000 for each
  13-14  violation.  Each day of a continuing violation may be considered a
  13-15  separate violation.  <A hospital shall:>
  13-16              <(1)  timely adopt, implement, and enforce a patient
  13-17  transfer policy in accordance with Section 241.027; and>
  13-18              <(2)  implement patient transfer agreements in
  13-19  accordance with Section 241.028 or comply with rules adopted under
  13-20  Section 241.029.>
  13-21        <(b)  A hospital that violates Subsection (a) is liable for a
  13-22  civil penalty of not more than $1,000 for each day of violation and
  13-23  for each act of violation.>
  13-24        <(c)  In determining the amount of the penalty, the district
  13-25  court shall consider:>
   14-1              <(1)  the hospital's previous violations;>
   14-2              <(2)  the seriousness of the violation;>
   14-3              <(3)  whether the health and safety of the public was
   14-4  threatened by the violation; and>
   14-5              <(4)  the demonstrated good faith of the hospital.>
   14-6        Sec. 241.0551.  ADMINISTRATIVE PENALTY ASSESSMENT PROCEDURE.
   14-7  (a)  An administrative penalty may be assessed only after a
   14-8  hospital charged with a violation is provided notice and given an
   14-9  opportunity to request a hearing.
  14-10        (b)  If a hearing is held, the commissioner shall make
  14-11  findings of fact and shall issue a written decision regarding the
  14-12  occurrence of the violation and the amount of any penalty that may
  14-13  be warranted.
  14-14        (c)  If the hospital charged with the violation does not
  14-15  request a hearing, the commissioner may assess a penalty after
  14-16  determining that a violation has occurred and the amount of any
  14-17  penalty that may be warranted.
  14-18        (d)  After making a determination under this section that a
  14-19  penalty is to be assessed against a hospital, the commissioner
  14-20  shall issue an order requiring that the hospital pay the penalty.
  14-21        (e)  The commissioner may consolidate a hearing held under
  14-22  this section with another proceeding.
  14-23        Sec. 241.0552.  PAYMENT OF ADMINISTRATIVE PENALTY.  (a)  Not
  14-24  later than the 30th day after the date an order finding that a
  14-25  violation has occurred is issued, the commissioner shall inform the
   15-1  hospital against which the order is issued of the amount of the
   15-2  penalty for the violation.
   15-3        (b)  Not later than the 30th day after the date on which a
   15-4  decision or order charging a hospital with a penalty is final, the
   15-5  hospital shall:
   15-6              (1)  pay the penalty in full; or
   15-7              (2)  if the hospital seeks judicial review of the
   15-8  amount of the penalty or the fact of the violation,
   15-9                    (A)  send the amount of the penalty to the
  15-10  commissioner for placement in an escrow account; or
  15-11                    (B)  post with the commissioner a bond for the
  15-12  amount of the penalty.
  15-13        (c)  A bond posted under this section must be in a form
  15-14  approved by the commissioner and be effective until judicial review
  15-15  of the order or decision is final.
  15-16        (d)  A hospital that does not send the amount of the penalty
  15-17  to the commissioner or post the bond within the period prescribed
  15-18  by Subsection (b) waives all rights to contest the violation or the
  15-19  amount of the penalty.
  15-20        Sec. 241.0553.  REFUND OF ADMINISTRATIVE PENALTY.  Not later
  15-21  than the 30th day after the date of a judicial determination that
  15-22  an administrative penalty against a hospital should be reduced or
  15-23  not assessed, the commissioner shall:
  15-24              (1)  remit to the hospital the appropriate portion of
  15-25  any penalty payment plus accrued interest; or
   16-1              (2)  execute a release of the bond if the hospital has
   16-2  posted a bond.
   16-3        Sec. 241.0554.  RECOVERY OF ADMINISTRATIVE PENALTY BY
   16-4  ATTORNEY GENERAL.  The attorney general at the request of the
   16-5  commissioner may bring a civil action to recover an administrative
   16-6  penalty assessed under this chapter.
   16-7        SECTION 13.  Subsection (a), Section 241.056, Health and
   16-8  Safety Code, is amended to read as follows:
   16-9        (a)  A person who is harmed by a violation under Section
  16-10  241.027 or 241.028 <241.055> may petition a district court for
  16-11  appropriate injunctive relief.
  16-12        SECTION 14.  Chapter 241, Health and Safety Code, is amended
  16-13  by adding Section 241.058 to read as follows:
  16-14        Sec. 241.058.  MINOR VIOLATIONS.  (a)  This chapter does not
  16-15  require the commissioner or a designee of the commissioner to
  16-16  report a minor violation for prosecution or the institution of any
  16-17  other enforcement proceeding authorized under this chapter, if the
  16-18  commissioner or a designee of the commissioner determines that
  16-19  prosecution or enforcement is in the best interests of the persons
  16-20  served or to be served by the hospital.
  16-21        (b)  For the purpose of this section, a "minor violation"
  16-22  means a violation of this chapter, the rules adopted under this
  16-23  chapter, a special license provision, an order or emergency order
  16-24  issued by the commissioner or the commissioner's designee, or
  16-25  another enforcement procedure permitted under this chapter by a
   17-1  hospital that does not constitute a threat to the health, safety,
   17-2  and rights of the hospital's patients or other persons.
   17-3        SECTION 15.  Section 241.104, Health and Safety Code, is
   17-4  amended to read as follows:
   17-5        Sec. 241.104.  HOSPITAL PLAN REVIEWS.  (a)  The board by rule
   17-6  shall adopt fees for hospital plan reviews according to a schedule
   17-7  based on the estimated construction costs.  If an estimated
   17-8  construction cost cannot be established, the estimated cost is $105
   17-9  per square foot.
  17-10        (b)  The fee schedule may not exceed the following:
  17-11                    Cost of Construction         Fee
  17-12              (1)  $   600,000 or less        $  500   <250>
  17-13              (2)  $   600,001 - $ 2,000,000   1,000   <500>
  17-14              (3)  $ 2,000,001 - $ 5,000,000   1,500   <750>
  17-15              (4)  $ 5,000,001 - $10,000,000   2,000 <1,000>
  17-16              (5)  $10,000,001 and over        3,000 <1,500>
  17-17        (c)  The department shall charge a fee for field surveys of
  17-18  construction plans reviewed under this section.  The board by rule
  17-19  shall adopt a fee schedule for the surveys that provides a minimum
  17-20  fee of $100 and a maximum fee of $400 for each survey conducted.
  17-21        SECTION 16.  Section 222.024, Health and Safety Code, is
  17-22  amended to read as follows:
  17-23        Sec. 222.024.  CERTIFICATION OR ACCREDITATION INSTEAD OF
  17-24  INSPECTION.  (a)  A hospital licensed by the Texas Department of
  17-25  Health or the Texas Department of Mental Health and Mental
   18-1  Retardation is not subject to additional annual licensing
   18-2  inspections before the agency issues the hospital a license under
   18-3  Chapter 241 (Texas Hospital Licensing Law) or by the licensing
   18-4  agency while the hospital maintains:
   18-5              (1)  certification under Title XVIII of the Social
   18-6  Security Act (42 U.S.C. Section 1395 et seq.); or
   18-7              (2)  accreditation from the Joint Commission on
   18-8  Accreditation of Healthcare <Health> Organizations, the American
   18-9  Osteopathic Association, or other national accreditation
  18-10  organization for the offered services.
  18-11        (b)  If the Texas Department of Mental Health and Mental
  18-12  Retardation licenses <An agency licensing> a hospital exempt from a
  18-13  licensing inspection under Subsection (a), that agency shall issue
  18-14  a renewal license to the hospital if the hospital annually remits
  18-15  any applicable fees and submits a copy of the most recent
  18-16  inspection results report from the certification or accreditation
  18-17  body.
  18-18        (c)  If the Texas Department of Health licenses a hospital
  18-19  exempt from a licensing inspection under Subsection (a), that
  18-20  agency shall issue a renewal license to the hospital if the
  18-21  hospital annually:
  18-22              (1)  submits a complete application required by the
  18-23  department;
  18-24              (2)  remits any applicable fees;
  18-25              (3)  submits a copy of the most recent inspection
   19-1  results report from the certification or accreditation body; and
   19-2              (4)  submits a copy of the most recent fire safety
   19-3  inspection report from the fire marshal in whose jurisdiction the
   19-4  hospital is located.
   19-5        SECTION 17.  Section 222.026, Health and Safety Code, is
   19-6  amended to read as follows:
   19-7        Sec. 222.026.  COMPLAINT INVESTIGATIONS AND ENFORCEMENT
   19-8  AUTHORITY <PATIENT TRANSFER AUTHORITY NOT AFFECTED>.  (a)  Sections
   19-9  222.024, 222.025, and 222.0255 do not affect the authority of the
  19-10  Texas Department of Health to implement and enforce the provisions
  19-11  of Chapter 241 (Texas Hospital Licensing Law) to:
  19-12              (1)  reinspect a hospital if a hospital applies for the
  19-13  reissuance of its license after a final ruling upholding the
  19-14  suspension or revocation of a hospital's license, the assessment of
  19-15  administrative or civil penalties, or the issuance of an injunction
  19-16  against the hospital for violations of provisions of the licensing
  19-17  law, rules adopted under the licensing law, special license
  19-18  conditions, or orders of the commissioner; or
  19-19              (2)  investigate a complaint against a hospital and, if
  19-20  appropriate, enforce the provisions of the licensing law on a
  19-21  finding by the department that reasonable cause exists to believe
  19-22  that the hospital has violated provisions of the licensing law,
  19-23  rules adopted under the licensing law, special license conditions,
  19-24  or orders of the commissioner <relating to the transfer of hospital
  19-25  patients or the department's means of implementing and enforcing
   20-1  those provisions>.
   20-2        SECTION 18.  This Act takes effect September 1, 1993.
   20-3        SECTION 19.  If on the effective date of this legislation the
   20-4  powers and duties of the Texas Board of Health, the commissioner of
   20-5  health, and the Texas Department of Health have been transferred to
   20-6  the Department of Public Health as provided for in Chapter 15, Acts
   20-7  of the 72nd Legislature, 1st Called Session, 1991, each reference
   20-8  in this Act to the Texas Board of Health, the commissioner of
   20-9  health, or the Texas Department of Health means the Board of Public
  20-10  Health, the director of the Department of Public Health, or the
  20-11  Department of Public Health, respectively.
  20-12        SECTION 20.  The importance of this legislation and the
  20-13  crowded condition of the calendars in both houses create an
  20-14  emergency and an imperative public necessity that the
  20-15  constitutional rule requiring bills to be read on three several
  20-16  days in each house be suspended, and this rule is hereby suspended.