S.B. No. 205
                                        AN ACT
    1-1  relating to the regulation of the provision of services to persons
    1-2  with certain disabilities or in need of counseling in a crisis or
    1-3  an emergency; creating offenses and providing civil,
    1-4  administrative, and criminal penalties.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6                               ARTICLE 1
    1-7        SECTION 1.01.  Title 4, Health and Safety Code, is amended by
    1-8  adding Subtitle G to read as follows:
    1-9       SUBTITLE G.  PROVISION OF SERVICES IN CERTAIN FACILITIES
   1-10    CHAPTER 321.  PROVISION OF MENTAL HEALTH, CHEMICAL DEPENDENCY,
   1-11                      AND REHABILITATION SERVICES
   1-12        Sec. 321.001.  DEFINITIONS.  In this chapter:
   1-13              (1)  "Comprehensive medical rehabilitation" means the
   1-14  provision of rehabilitation services that are designed to improve
   1-15  or minimize a person's physical or cognitive disabilities, maximize
   1-16  a person's functional ability, or restore a person's lost
   1-17  functional capacity through close coordination of services,
   1-18  communication, interaction, and integration among several
   1-19  professions that share the responsibility to achieve team treatment
   1-20  goals for the person.
   1-21              (2)  "Hospital" has the meaning assigned by Section
   1-22  241.003.
   1-23              (3)  "License" means a state agency permit,
   1-24  certificate, approval, registration, or other form of permission
    2-1  required by state law.
    2-2              (4)  "Mental health facility" has the meaning assigned
    2-3  by Section 571.003.
    2-4              (5)  "State health care regulatory agency" means a
    2-5  state agency that licenses a health care professional.
    2-6              (6)  "Treatment facility" has the meaning assigned by
    2-7  Section 464.001.
    2-8        Sec. 321.002.  BILL OF RIGHTS.  (a)  The Texas Board of
    2-9  Mental Health and Mental Retardation, Texas Board of Health, and
   2-10  Texas Commission on Alcohol and Drug Abuse by rule shall each adopt
   2-11  a "patient's bill of rights" that includes the applicable rights
   2-12  included in this chapter, Subtitle C of Title 7, Chapters 241, 462,
   2-13  464, and 466, and any other provisions the agencies consider
   2-14  necessary to protect the health, safety, and rights of a patient
   2-15  receiving voluntary or involuntary mental health, chemical
   2-16  dependency, or comprehensive medical rehabilitation services in an
   2-17  inpatient facility.  In addition, each agency shall adopt rules
   2-18  that:
   2-19              (1)  provide standards to prevent the admission of a
   2-20  minor to a facility for treatment of a condition that is not
   2-21  generally recognized as responsive to treatment in an inpatient
   2-22  treatment setting; and
   2-23              (2)  prescribe the procedure for presenting the
   2-24  applicable bill of rights and obtaining each necessary signature
   2-25  if:
   2-26                    (A)  the patient cannot comprehend the
   2-27  information because of illness, age, or other factors; or
    3-1                    (B)  an emergency exists that precludes immediate
    3-2  presentation of the information.
    3-3        (b)  The Board of Protective and Regulatory Services by rule
    3-4  shall adopt a "children's bill of rights" for a minor receiving
    3-5  treatment in a child-care facility for an emotional, mental health,
    3-6  or chemical dependency problem.
    3-7        (c)  A "bill of rights" adopted under this section must
    3-8  specifically address the rights of minors and provide that a minor
    3-9  is entitled to:
   3-10              (1)  appropriate treatment in the least restrictive
   3-11  setting available;
   3-12              (2)  not receive unnecessary or excessive medication;
   3-13              (3)  an individualized treatment plan and to
   3-14  participate in the development of the plan; and
   3-15              (4)  a humane treatment environment that provides
   3-16  reasonable protection from harm and appropriate privacy for
   3-17  personal needs.
   3-18        (d)  Rules adopted under this section shall provide for:
   3-19              (1)  treatment of minors by persons who have
   3-20  specialized education and training in the emotional, mental health,
   3-21  and chemical dependency problems and treatment of minors;
   3-22              (2)  separation of minor patients from adult patients;
   3-23  and
   3-24              (3)  regular communication between a minor patient and
   3-25  the patient's family, subject only to a restriction in accordance
   3-26  with Section 576.006.
   3-27        (e)  The Texas Board of Health, Texas Board of Mental Health
    4-1  and Mental Retardation, Texas Commission on Alcohol and Drug Abuse,
    4-2  and Board of Protective and Regulatory Services shall consult each
    4-3  other for assistance in adopting rules under this section.
    4-4        (f)  Before a facility may admit a patient for inpatient
    4-5  mental health, chemical dependency, or comprehensive medical
    4-6  rehabilitation services, or before a child-care facility may accept
    4-7  a minor for treatment, the facility shall provide to the person
    4-8  and, if appropriate, to the person's parent, managing conservator,
    4-9  or guardian, a written copy of the applicable "bill of rights"
   4-10  adopted under this section.  The facility shall provide the written
   4-11  copies in the person's primary language, if possible.  In addition,
   4-12  the facility shall ensure that, within 24 hours after the person is
   4-13  admitted to the facility, the rights specified in the written copy
   4-14  are explained to the person and, if appropriate, to the person's
   4-15  parent, managing conservator, or guardian:
   4-16              (1)  orally, in simple, nontechnical terms in the
   4-17  person's primary language, if possible; or
   4-18              (2)  through a means reasonably calculated to
   4-19  communicate with a person who has an impairment of vision or
   4-20  hearing, if applicable.
   4-21        (g)  The facility shall ensure that:
   4-22              (1)  each patient admitted for inpatient mental health,
   4-23  chemical dependency, or comprehensive rehabilitation services and
   4-24  each minor admitted for treatment in a child-care facility and, if
   4-25  appropriate, the person's parent, managing conservator, or guardian
   4-26  signs a copy of the document stating that the person has read the
   4-27  document and understands the rights specified in the document; and
    5-1              (2)  the signed copy is made a part of the person's
    5-2  clinical record.
    5-3        (h)  A facility shall prominently and conspicuously post a
    5-4  copy of the "bill of rights" for display in a public area of the
    5-5  facility that is readily  available to patients, residents,
    5-6  employees, and visitors.  The "bill of rights" must be in English
    5-7  and in a second language.
    5-8        Sec. 321.003.  SUIT FOR HARM RESULTING FROM VIOLATION.
    5-9  (a)  A treatment facility or mental health facility that violates a
   5-10  provision of, or a rule adopted under, this chapter, Subtitle C of
   5-11  Title 7, or Chapter 241, 462, 464, or 466 is liable to a person
   5-12  receiving care or treatment in or from the facility who is harmed
   5-13  as a result of the violation.
   5-14        (b)  A person who has been harmed by a violation may sue for
   5-15  injunctive relief, damages, or both.
   5-16        (c)  A plaintiff who prevails in a suit under this section
   5-17  may recover actual damages, including damages for mental anguish
   5-18  even if an injury other than mental anguish is not shown.
   5-19        (d)  In addition to an award under Subsection (c), a
   5-20  plaintiff who prevails in a suit under this section may recover
   5-21  exemplary damages and reasonable attorney fees.
   5-22        (e)  A suit under this section may be brought in the district
   5-23  court of the county in which:
   5-24              (1)  the plaintiff received care or treatment; or
   5-25              (2)  the defendant conducts business.
   5-26        (f)  A person harmed by a violation must bring suit not later
   5-27  than the second anniversary of the date on which the person's
    6-1  injury is discovered, except that a minor whose injury is
    6-2  discovered before the minor's 18th birthday may bring suit at any
    6-3  time before the minor's 20th birthday.
    6-4        (g)  This section does not supersede or abrogate any other
    6-5  remedy existing in law.
    6-6        Sec. 321.004.  PENALTIES.  In addition to the penalties
    6-7  prescribed by this chapter, a violation of a provision of this
    6-8  chapter by an individual or facility that is licensed by a state
    6-9  health care regulatory agency is subject to the same consequence as
   6-10  a violation of the licensing law applicable to the individual or
   6-11  facility or of a rule adopted under that licensing law.
   6-12        SECTION 1.02.  The changes in law made by this article apply
   6-13  only to a cause of action that accrues on or after the effective
   6-14  date of this article.  A cause of action that accrues before the
   6-15  effective date of this article is governed by the law in effect on
   6-16  the date the cause of action accrues, and that law is continued in
   6-17  effect for this purpose.
   6-18                               ARTICLE 2
   6-19        SECTION 2.01.  Subtitle H, Title 2, Health and Safety Code,
   6-20  is amended by adding Chapter 164 to read as follows:
   6-21      CHAPTER 164.  TREATMENT FACILITIES MARKETING AND ADMISSION
   6-22                               PRACTICES
   6-23        Sec. 164.001.  SHORT TITLE.  This chapter may be cited as the
   6-24  Treatment Facilities Marketing Practices Act.
   6-25        Sec. 164.002.  LEGISLATIVE PURPOSE.  The purpose of this
   6-26  chapter is to safeguard the public against fraud, deceit, and
   6-27  misleading marketing practices and to foster and encourage
    7-1  competition and fair dealing by mental health facilities and
    7-2  chemical dependency treatment facilities by prohibiting or
    7-3  restricting practices by which the public has been injured in
    7-4  connection with the marketing and advertising of mental health
    7-5  services and the admission of patients.  Nothing in this chapter
    7-6  should be construed to prohibit a mental health facility from
    7-7  advertising its services in a general way or promoting its
    7-8  specialized services.  However, the public should be able to
    7-9  distinguish between the marketing activities of the facility and
   7-10  its clinical functions.
   7-11        Sec. 164.003.  DEFINITIONS.  In this chapter:
   7-12              (1)  "Advertising" or "advertise" means a solicitation
   7-13  or inducement, through print or electronic media, including radio,
   7-14  television, or direct mail, to purchase the services provided by a
   7-15  treatment facility.
   7-16              (2)  "Chemical dependency" has the meaning assigned by
   7-17  Section 462.001.
   7-18              (3)  "Chemical dependency facility" means a treatment
   7-19  facility as that term is defined by Section 462.001.
   7-20              (4)  "Intervention and assessment service" means a
   7-21  service that offers assessment, counseling, evaluation,
   7-22  intervention, or referral services or makes treatment
   7-23  recommendations to an individual with respect to mental illness or
   7-24  chemical dependency.
   7-25              (5)  "Mental health facility" means:
   7-26                    (A)  a "mental health facility" as defined by
   7-27  Section 571.003;
    8-1                    (B)  a residential treatment facility, other than
    8-2  a mental health facility, in which persons are treated for
    8-3  emotional problems or disorders in a 24-hour supervised living
    8-4  environment; and
    8-5                    (C)  an adult day-care facility or adult day
    8-6  health care facility as defined by Section 103.003, Human Resources
    8-7  Code.
    8-8              (6)  "Mental health professional" means a:
    8-9                    (A)  "physician" as defined by Section 571.003;
   8-10                    (B)  "licensed professional counselor" as defined
   8-11  by Section 2, Licensed Professional Counselor Act (Article 4512g,
   8-12  Vernon's Texas Civil Statutes);
   8-13                    (C)  "chemical dependency counselor" as defined
   8-14  by Section 1, Chapter 635, Acts of the 72nd Legislature, Regular
   8-15  Session, 1991 (Article 4512o, Vernon's Texas Civil Statutes);
   8-16                    (D)  "psychologist" offering "psychological
   8-17  services" as defined by Section 2, Psychologists' Certification and
   8-18  Licensing Act (Article 4512c, Vernon's Texas Civil Statutes);
   8-19                    (E)  "registered nurse" licensed under Chapter 7,
   8-20  Title 71, Revised Statutes;
   8-21                    (F)  "licensed vocational nurse" as defined by
   8-22  Section 1, Article 4528c, Revised Statutes;
   8-23                    (G)  "licensed marriage and family therapist" as
   8-24  defined by Section 2, Licensed Marriage and Family Therapist Act
   8-25  (Article 4512c-1, Vernon's Texas Civil Statutes); and
   8-26                    (H)  "social worker" as defined by Section
   8-27  50.001(a), Human Resources Code.
    9-1              (7)  "Mental health services" has the meaning assigned
    9-2  by Section 531.002.
    9-3              (8)  "Mental illness" has the meaning assigned by
    9-4  Section 571.003.
    9-5              (9)  "Referral source" means a person who is in a
    9-6  position to refer or who refers a person to a treatment facility.
    9-7  "Referral source" does not include a physician, an insurer, a
    9-8  health maintenance organization (HMO), a preferred provider
    9-9  arrangement (PPA), or other third party payor or discount provider
   9-10  organization (DPO) where the insurer, HMO, PPA, third party payor,
   9-11  or DPO pays in whole or in part for the treatment of mental illness
   9-12  or chemical dependency.
   9-13              (10)  "Treatment facility" means a chemical dependency
   9-14  facility and a mental health facility.
   9-15        Sec. 164.004.  EXEMPTIONS.  This chapter does not apply to:
   9-16              (1)  a treatment facility operated by the Texas
   9-17  Department of Mental Health and Mental Retardation, a federal
   9-18  agency, or a political subdivision;
   9-19              (2)  a community center established under Subchapter A,
   9-20  Chapter 534, or a facility operated by a community center; or
   9-21              (3)  a facility owned and operated by a nonprofit or
   9-22  not-for-profit organization offering counseling concerning family
   9-23  violence, help for runaway children, or rape.
   9-24        Sec. 164.005.  CONDITIONING EMPLOYEE OR AGENT RELATIONSHIPS
   9-25  ON PATIENT REVENUE.  A treatment facility may not permit or provide
   9-26  compensation or anything of value to its employees or agents,
   9-27  condition employment or continued employment of its employees or
   10-1  agents, set its employee or agent performance standards, or
   10-2  condition its employee or agent evaluations, based on:
   10-3              (1)  the number of patient admissions resulting from an
   10-4  employee's or agent's efforts;
   10-5              (2)  the number or frequency of telephone calls or
   10-6  other contacts with referral sources or patients if the purpose of
   10-7  the telephone calls or contacts is to solicit patients for the
   10-8  treatment facility; or
   10-9              (3)  the existence of or volume of determinations made
  10-10  respecting the length of patient stay.
  10-11        Sec. 164.006.  SOLICITING AND CONTRACTING WITH CERTAIN
  10-12  REFERRAL SOURCES.  A treatment facility or a person employed or
  10-13  under contract with a treatment facility, if acting on behalf of
  10-14  the treatment facility, may not:
  10-15              (1)  contact a referral source or potential client for
  10-16  the purpose of soliciting, directly or indirectly, a referral of a
  10-17  patient to the treatment facility without disclosing its soliciting
  10-18  agent's, employee's, or contractor's affiliation with the treatment
  10-19  facility;
  10-20              (2)  offer to provide or provide mental health or
  10-21  chemical dependency services to a public or private school in this
  10-22  state, on a part-time or full-time basis, the services of any of
  10-23  its employees or agents who make, or are in a position to make, a
  10-24  referral, if the services are provided on an individual basis to
  10-25  individual students or their families.  Nothing herein prohibits a
  10-26  treatment facility from:
  10-27                    (A)  offering or providing educational programs
   11-1  in group settings to public schools in this state if the
   11-2  affiliation between the educational program and the treatment
   11-3  facility is disclosed; or
   11-4                    (B)  providing counseling services to a public
   11-5  school in this state in an emergency or crisis situation if the
   11-6  services are provided in response to a specific request by a
   11-7  school; provided that, under no circumstances may a student be
   11-8  referred to the treatment facility offering the services;
   11-9              (3)  provide to an entity of state or local government,
  11-10  on a part-time or full-time basis, the mental health or chemical
  11-11  dependency services of any of its employees, agents, or contractors
  11-12  who make or are in a position to make referrals unless:
  11-13                    (A)  the treatment facility discloses to the
  11-14  governing authority of the entity:
  11-15                          (i)  the employee's, agent's, or
  11-16  contractor's relationship to the facility; and
  11-17                          (ii)  the fact that the employee, agent, or
  11-18  contractor might make a referral, if permitted, to the facility;
  11-19  and
  11-20                    (B)  the employee, agent, or contractor makes a
  11-21  referral only if:
  11-22                          (i)  the treatment facility obtains the
  11-23  governing authority's authorization in writing for the employee,
  11-24  agent, or contractor to make the referrals; and
  11-25                          (ii)  the employee, agent, or contractor
  11-26  discloses to the prospective patient the employee's, agent's, or
  11-27  contractor's relationship to the facility at initial contact; or
   12-1              (4)  in relation to intervention and assessment
   12-2  services, contract with, offer to remunerate, or remunerate a
   12-3  person who operates an intervention and assessment service that
   12-4  makes referrals to a treatment facility for inpatient treatment of
   12-5  mental illness or chemical dependency unless the intervention and
   12-6  assessment service is:
   12-7                    (A)  operated by a community mental health and
   12-8  mental retardation center funded by the Texas Department of Mental
   12-9  Health and Mental Retardation;
  12-10                    (B)  operated by a county or regional medical
  12-11  society;
  12-12                    (C)  a qualified mental health referral service
  12-13  as defined by Section 164.007; or
  12-14                    (D)  owned and operated by a nonprofit or
  12-15  not-for-profit organization offering counseling concerning family
  12-16  violence, help for runaway children, or rape.
  12-17        Sec. 164.007.  QUALIFIED MENTAL HEALTH REFERRAL SERVICE:
  12-18  DEFINITION AND STANDARDS.  (a)  A qualified mental health referral
  12-19  service means a service that conforms to all of the following
  12-20  standards:
  12-21              (1)  the referral service does not exclude as a
  12-22  participant in the referral service an individual who meets the
  12-23  qualifications for participation and qualifications for
  12-24  participation cannot be based in whole or in part on an
  12-25  individual's or entity's affiliation or nonaffiliation with other
  12-26  participants in the referral service;
  12-27              (2)  a payment the participant makes to the referral
   13-1  service is assessed equally against and collected equally from all
   13-2  participants, and is only based on the cost of operating the
   13-3  referral service and not on the volume or value of any referrals to
   13-4  or business otherwise generated by the participants of the referral
   13-5  service;
   13-6              (3)  the referral service imposes no requirements on
   13-7  the manner in which the participant provides services to a referred
   13-8  person, except that the referral service may require that the
   13-9  participant charge the person referred at the same rate as it
  13-10  charges other persons not referred by the referral service, or that
  13-11  these services be furnished free of charge or at a reduced charge;
  13-12              (4)  a referral made to a mental health professional or
  13-13  chemical dependency treatment facility is made only in accordance
  13-14  with Subdivision (1) and the referral service does not make
  13-15  referrals to mental health facilities other than facilities
  13-16  maintained or operated by the Texas Department of Mental Health and
  13-17  Mental Retardation, community mental health and mental retardation
  13-18  centers, or other political subdivisions, provided that a physician
  13-19  may make a referral directly to any mental health facility;
  13-20              (5)  the referral service is staffed by appropriately
  13-21  licensed and trained mental health professionals and a person who
  13-22  makes assessments for the need for treatment of mental illness or
  13-23  chemical dependency is a mental health professional as defined by
  13-24  this chapter;
  13-25              (6)  in response to each inquiry or after personal
  13-26  assessment, the referral service makes referrals, on a clinically
  13-27  appropriate, rotational basis, to at least three mental health
   14-1  professionals or chemical dependency treatment facilities whose
   14-2  practice addresses or facilities are located in the county of
   14-3  residence of the person seeking the referral or assessment, but if
   14-4  there are not three providers in the inquirer's county of
   14-5  residence, the referral service may include additional providers
   14-6  from other counties nearest the inquirer's county of residence;
   14-7              (7)  no information that identifies the person seeking
   14-8  a referral, such as name, address, or telephone number, is used,
   14-9  maintained, distributed, or provided for a purpose other than
  14-10  making the requested referral or for administrative functions
  14-11  necessary to operating the referral service;
  14-12              (8)  the referral service makes the following
  14-13  disclosures to each person seeking a referral:
  14-14                    (A)  the manner in which the referral service
  14-15  selects the group of providers participating in the referral
  14-16  service;
  14-17                    (B)  whether the provider participant has paid a
  14-18  fee to the referral service;
  14-19                    (C)  the manner in which the referral service
  14-20  selects a particular provider from its list of provider
  14-21  participants to which to make a referral;
  14-22                    (D)  the nature of the relationship or any
  14-23  affiliation between the referral service and the group of provider
  14-24  participants to whom it could make a referral; and
  14-25                    (E)  the nature of any restriction that would
  14-26  exclude a provider from continuing as a provider participant;
  14-27              (9)  the referral service maintains each disclosure in
   15-1  a written record certifying that the disclosure has been made and
   15-2  the record certifying that the disclosure has been made is signed
   15-3  by either the person seeking a referral or by the person making the
   15-4  disclosure on behalf of the referral service; and
   15-5              (10)  if the referral service refers callers to a 1-900
   15-6  telephone number or another telephone number that requires the
   15-7  payment of a toll or fee payable to or collected by the referral
   15-8  service, the referral service discloses the per minute charge.
   15-9        (b)  A qualified mental health referral service may not limit
  15-10  participation by a person for a reason other than:
  15-11              (1)  failure to have a current, valid license without
  15-12  limitation to practice in this state;
  15-13              (2)  failure to maintain professional liability
  15-14  insurance while participating in the service;
  15-15              (3)  a decision by a peer review committee that the
  15-16  person has failed to meet prescribed standards or has not acted in
  15-17  a professional or ethical manner;
  15-18              (4)  termination of the contract between the
  15-19  participant and the qualified mental health referral service by
  15-20  either party under the terms of the contract; or
  15-21              (5)  significant dissatisfaction of consumers that is
  15-22  documented and verifiable.
  15-23        Sec. 164.008.  OPERATING AN INTERVENTION AND ASSESSMENT
  15-24  SERVICE.  A treatment facility may not own, operate, manage, or
  15-25  control an intervention and assessment service that makes referrals
  15-26  to a treatment facility for inpatient treatment of mental illness
  15-27  or chemical dependency unless the intervention and assessment
   16-1  service:
   16-2              (1)  is a qualified mental health referral service
   16-3  under Section 164.007;
   16-4              (2)  discloses in all advertising the relationship
   16-5  between the treatment facility and the intervention and assessment
   16-6  service; and
   16-7              (3)  discloses to each person contacting the service,
   16-8  at the time of initial contact, the relationship between the
   16-9  treatment facility and the intervention and assessment service.
  16-10        Sec. 164.009.  DISCLOSURES AND REPRESENTATIONS.  (a)  A
  16-11  treatment facility may not admit a patient to its facilities
  16-12  without fully disclosing to the patient or, if the patient is a
  16-13  minor, the patient's parent, managing conservator, or guardian, in,
  16-14  if possible, the primary language of the patient, managing
  16-15  conservator, or guardian, as the case may be, the following
  16-16  information in writing before admission:
  16-17              (1)  the treatment facility's estimated average daily
  16-18  charge for inpatient treatment with an explanation that the patient
  16-19  may be billed separately for services provided by mental health
  16-20  professionals;
  16-21              (2)  the name of the attending physician, if the
  16-22  treatment facility is a mental health facility, or the name of the
  16-23  attending mental health professional, if the facility is a chemical
  16-24  dependency facility; and
  16-25              (3)  the current "patient's bill of rights" as adopted
  16-26  by the Texas Department of Mental Health and Mental Retardation,
  16-27  the Texas Commission on Alcohol and Drug Abuse, or the Texas
   17-1  Department of Health that sets out restrictions to the patient's
   17-2  freedom that may be imposed on the patient during the patient's
   17-3  stay in a treatment facility.
   17-4        (b)  A treatment facility may not misrepresent to a patient
   17-5  or the parent, guardian, managing conservator, or spouse of a
   17-6  patient, the availability or amount of insurance coverage available
   17-7  to the prospective patient or the amount and percentage of a charge
   17-8  for which the patient will be responsible.
   17-9        (c)  A treatment facility may not represent to a patient who
  17-10  requests to leave a treatment facility against medical advice that:
  17-11              (1)  the patient will be subject to an involuntary
  17-12  commitment proceeding or subsequent emergency detention unless that
  17-13  representation is made by a physician or on the written instruction
  17-14  of a physician who has evaluated the patient within 48 hours of the
  17-15  representation; or
  17-16              (2)  the patient's insurance company will refuse to pay
  17-17  all or any portion of the medical expenses previously incurred.
  17-18        (d)  A mental health facility may not represent or recommend
  17-19  that a prospective patient should be admitted for inpatient
  17-20  treatment unless the representation is made by a licensed physician
  17-21  or, subsequent to evaluation by a licensed physician, by a mental
  17-22  health professional.
  17-23        (e)  A chemical dependency facility may not represent or
  17-24  recommend that a prospective patient should be admitted to a
  17-25  facility for treatment unless and until:
  17-26              (1)  the prospective patient has been evaluated, in
  17-27  person, by a mental health professional; and
   18-1              (2)  the mental health professional determines that the
   18-2  patient meets the facility's admission standards.
   18-3        Sec. 164.010.  PROHIBITED ACTS.  It is a violation of this
   18-4  chapter, in connection with the marketing of mental health
   18-5  services, for a person to:
   18-6              (1)  advertise, expressly or impliedly, the services of
   18-7  a treatment facility through the use of:
   18-8                    (A)  promises of cure or guarantees of treatment
   18-9  results that cannot be substantiated; or
  18-10                    (B)  any unsubstantiated claims;
  18-11              (2)  advertise, expressly or impliedly, the
  18-12  availability of intervention and assessment services unless and
  18-13  until the services are available and are provided by mental health
  18-14  professionals licensed or certified to provide the particular
  18-15  service;
  18-16              (3)  fail to disclose before soliciting a referral
  18-17  source or prospective patient to induce a person to use the
  18-18  services of the treatment facility an affiliation between a
  18-19  treatment facility and its soliciting agents, employees, or
  18-20  contractors;
  18-21              (4)  obtain information considered confidential by
  18-22  state or federal law regarding a person for the purpose of
  18-23  soliciting that person to use the services of a treatment facility
  18-24  unless and until consent is obtained from the person or, in the
  18-25  case of a minor, the person's parent, managing conservator, or
  18-26  legal guardian or another person with authority to give that
  18-27  authorization; or
   19-1              (5)  represent that a referral service is a qualified
   19-2  mental health referral service unless and until the referral
   19-3  service complies with Section 164.007.
   19-4        Sec. 164.011.  INJUNCTION.  (a)  If it appears that a person
   19-5  is in violation of this chapter, the attorney general, a district
   19-6  attorney, or a county attorney may institute an action for
   19-7  injunctive relief to restrain the person from continuing the
   19-8  violation and for civil penalties of not less than $1,000 and not
   19-9  more than $25,000 per violation.
  19-10        (b)  A civil action filed under this section shall be filed
  19-11  in a district court in Travis County or in the county in which the
  19-12  defendant resides.
  19-13        (c)  The attorney general, a district attorney, or a county
  19-14  attorney may recover reasonable expenses incurred in obtaining
  19-15  injunctive relief, civil penalties, or both, under this section,
  19-16  including court costs, reasonable attorney fees, investigative
  19-17  costs, witness fees, and deposition expenses.
  19-18        (d)  A civil penalty recovered in a suit instituted by a
  19-19  local government under this chapter shall be paid to that local
  19-20  government.
  19-21        Sec. 164.012.  PENALTIES.  In addition to the penalties
  19-22  prescribed by this chapter, a violation of a provision of this
  19-23  chapter by an individual or treatment facility that is licensed by
  19-24  a state health care regulatory agency is subject to the same
  19-25  consequences as a violation of the licensing law applicable to the
  19-26  individual or treatment facility or of a rule adopted under that
  19-27  licensing law.
   20-1        Sec. 164.013.  DECEPTIVE TRADE PRACTICES.  A person may bring
   20-2  suit under Subchapter E, Chapter 17, Business & Commerce Code, for
   20-3  a violation of this chapter, and a public or private right or
   20-4  remedy prescribed by that subchapter may be used to enforce this
   20-5  chapter.
   20-6        Sec. 164.014.  RULE-MAKING AUTHORITY.  The Texas Commission
   20-7  on Alcohol and Drug Abuse and Texas Board of Mental Health and
   20-8  Mental Retardation may adopt rules interpreting the provisions of
   20-9  this chapter relating to the activities of a chemical dependency
  20-10  facility or mental health facility under its jurisdiction.
  20-11                               ARTICLE 3
  20-12        SECTION 3.01.  Subsection (b), Section 241.053, Health and
  20-13  Safety Code, is amended to read as follows:
  20-14        (b)  A hospital whose license is suspended or revoked may
  20-15  apply to the department for the reissuance of a license.  The
  20-16  department may reissue the license if the department determines
  20-17  that the hospital has corrected the conditions that led to the
  20-18  suspension or revocation.  A hospital whose license is suspended or
  20-19  revoked may not admit new patients until the license is reissued.
  20-20        SECTION 3.02.  Section 241.054, Health and Safety Code, is
  20-21  amended by amending Subsections (b), (d), and (e) and adding
  20-22  Subsections (f), (g), (h), and (i) to read as follows:
  20-23        (b)  After the notice and opportunity to comply, the
  20-24  commissioner of health <department> may request the attorney
  20-25  general or the appropriate district or county attorney to institute
  20-26  and conduct a suit for a violation of this chapter or a rule
  20-27  adopted under this chapter <petition a district court in the county
   21-1  in which a violation occurs for assessment and recovery of the
   21-2  civil penalty provided by Section  241.055, for injunctive relief,
   21-3  or both>.
   21-4        (d)  On his own initiative, the attorney general, a district
   21-5  attorney, or a county attorney may maintain an action in the name
   21-6  of the state for a violation of this chapter or a rule adopted
   21-7  under this chapter.
   21-8        (e)  The district court shall assess the civil penalty
   21-9  authorized by Section 241.055, grant <the> injunctive relief, or
  21-10  both, as warranted by the facts.  The injunctive relief may include
  21-11  any prohibitory or mandatory injunction warranted by the facts,
  21-12  including a temporary restraining order, temporary injunction, or
  21-13  permanent injunction.
  21-14        (f)  The department and the party bringing the suit may
  21-15  recover reasonable expenses incurred in obtaining injunctive
  21-16  relief, civil penalties, or both, including investigation costs,
  21-17  court costs, reasonable attorney fees, witness fees, and deposition
  21-18  expenses.
  21-19        (g)  Venue may be maintained in Travis County or in the
  21-20  county in which the violation occurred.
  21-21        (h)  Not later than the seventh day before the date on which
  21-22  the attorney general intends to bring suit on his own initiative,
  21-23  the attorney general shall provide to the department notice of the
  21-24  suit.  The attorney general is not required to provide notice of a
  21-25  suit if the attorney general determines that waiting to bring suit
  21-26  until the notice is provided will create an immediate threat to the
  21-27  health and safety of a patient.  This section does not create a
   22-1  requirement that the attorney general obtain the permission of a
   22-2  referral from the department before filing suit.
   22-3        (i)  The injunctive relief and civil penalty authorized by
   22-4  this section and Section 241.055 are in addition to any other
   22-5  civil, administrative, or criminal penalty provided by law.
   22-6        <(e)  The attorney general or the appropriate district or
   22-7  county attorney shall initiate and conduct the suit at the request
   22-8  of the commissioner of health.>
   22-9        SECTION 3.03.  Section 241.055, Health and Safety Code, is
  22-10  amended by amending Subsections (b) and (c) and adding Subsection
  22-11  (d) to read as follows:
  22-12        (b)  A hospital that violates Subsection (a), another
  22-13  provision of this chapter, or a rule adopted or enforced under this
  22-14  chapter is liable for a civil penalty of not more than $1,000 for
  22-15  each day of violation and for each act of violation.  A hospital
  22-16  that violates this chapter or a rule or order adopted under this
  22-17  chapter relating to the provision of mental health, chemical
  22-18  dependency, or rehabilitation services is liable for a civil
  22-19  penalty of not more than $25,000 for each day of violation and for
  22-20  each act of violation.
  22-21        (c)  In determining the amount of the penalty, the district
  22-22  court shall consider:
  22-23              (1)  the hospital's previous violations;
  22-24              (2)  the seriousness of the violation, including the
  22-25  nature, circumstances, extent, and gravity of the violation;
  22-26              (3)  whether the health and safety of the public was
  22-27  threatened by the violation; <and>
   23-1              (4)  the demonstrated good faith of the hospital; and
   23-2              (5)  the amount necessary to deter future violations.
   23-3        (d)  A penalty collected under this section by the attorney
   23-4  general shall be deposited to the credit of the general revenue
   23-5  fund.  A penalty collected under this section by a district or
   23-6  county attorney shall be deposited to the credit of the general
   23-7  fund of the county in which the suit was heard.
   23-8        SECTION 3.04.  Subchapter C, Chapter 241, Health and Safety
   23-9  Code, is amended by  adding  Section 241.058  to  read  as
  23-10  follows:
  23-11        Sec. 241.058.  ADMINISTRATIVE PENALTY FOR MENTAL HEALTH,
  23-12  CHEMICAL DEPENDENCY, OR REHABILITATION SERVICES.  (a)  The board
  23-13  may impose an administrative penalty against a person licensed or
  23-14  regulated under this chapter who violates this chapter or a rule or
  23-15  order adopted under this chapter relating to the provision of
  23-16  mental health, chemical dependency, or rehabilitation services.
  23-17        (b)  The penalty for a violation may be in an amount not to
  23-18  exceed $25,000.  Each day a violation continues or occurs is a
  23-19  separate violation for purposes of imposing a penalty.
  23-20        (c)  The amount of the penalty shall be based on:
  23-21              (1)  the seriousness of the violation, including the
  23-22  nature, circumstances, extent, and gravity of any prohibited acts,
  23-23  and the hazard or potential hazard created to the health, safety,
  23-24  or economic welfare of the public;
  23-25              (2)  enforcement costs relating to the violation;
  23-26              (3)  the history of previous violations;
  23-27              (4)  the  amount  necessary  to  deter  future
   24-1  violations;
   24-2              (5)  efforts to correct the violation; and
   24-3              (6)  any other matter that justice may require.
   24-4        (d)  If  the  commissioner  determines  that  a  violation
   24-5  has occurred, the commissioner may issue to the board a report that
   24-6  states the facts on which the determination is based and the
   24-7  commissioner's recommendation  on  the imposition  of a penalty,
   24-8  including a recommendation on the amount of the penalty.
   24-9        (e)  Within 14 days after the date the report is issued, the
  24-10  commissioner shall give written notice of the report to the person.
  24-11  The notice may be given by certified mail.  The notice must include
  24-12  a brief summary of the alleged violation and a statement of the
  24-13  amount of the recommended penalty and must inform the person that
  24-14  the person has a right to a hearing on the occurrence of the
  24-15  violation, the amount of the penalty, or both the occurrence of the
  24-16  violation and the amount of the penalty.
  24-17        (f)  Within 20 days after the date the person receives the
  24-18  notice, the person in writing may accept the determination and
  24-19  recommended penalty of the commissioner or may make a written
  24-20  request for a hearing on the occurrence of the violation, the
  24-21  amount of the penalty, or both the occurrence of the violation and
  24-22  the amount of the penalty.
  24-23        (g)  If the person accepts the determination and recommended
  24-24  penalty of the commissioner, the board by order shall approve the
  24-25  determination and impose the recommended penalty.
  24-26        (h)  If the person requests a hearing or fails to respond
  24-27  timely to the notice, the commissioner shall set a hearing and give
   25-1  notice of the hearing to the person.  The administrative law judge
   25-2  shall make findings of fact and conclusions of law and promptly
   25-3  issue to the board a proposal for a decision about the occurrence
   25-4  of the violation and the amount of a proposed penalty.  Based on
   25-5  the findings of fact, conclusions of law, and proposal for a
   25-6  decision, the board by order may find that a violation has occurred
   25-7  and impose a penalty or may find that no violation occurred.
   25-8        (i)  The notice of the board's order given to the person
   25-9  under the Administrative Procedure and Texas Register Act (Article
  25-10  6252-13a, Vernon's Texas Civil Statutes) must include a statement
  25-11  of the right of the person to judicial review of the order.
  25-12        (j)  Within 30 days after the date the board's order is final
  25-13  as provided by Section 16(c), Administrative Procedure and Texas
  25-14  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes), the
  25-15  person shall:
  25-16              (1)  pay the amount of the penalty;
  25-17              (2)  pay the amount of the penalty and file a petition
  25-18  for judicial review contesting the occurrence of the violation, the
  25-19  amount of the penalty, or both the occurrence of the violation and
  25-20  the amount of the penalty; or
  25-21              (3)  without paying the amount of the penalty, file a
  25-22  petition for judicial review contesting the occurrence of the
  25-23  violation, the amount of the penalty, or both the occurrence of the
  25-24  violation and the amount of the penalty.
  25-25        (k)  Within the 30-day period, a person who acts under
  25-26  Subsection (j)(3) may:
  25-27              (1)  stay enforcement of the penalty by:
   26-1                    (A)  paying the amount of the penalty to the
   26-2  court for placement in an escrow account; or
   26-3                    (B)  giving to the court a supersedeas bond that
   26-4  is approved by the court for the amount of the penalty and that is
   26-5  effective until all judicial review of the board's order is final;
   26-6  or
   26-7              (2)  request the court to stay enforcement of the
   26-8  penalty by:
   26-9                    (A)  filing with the court a sworn affidavit of
  26-10  the person stating that the person is financially unable to pay the
  26-11  amount of the penalty and is financially unable to give the
  26-12  supersedeas bond; and
  26-13                    (B)  giving a copy of the affidavit to the
  26-14  commissioner by certified mail.
  26-15        (l)  The commissioner on receipt of a copy of an affidavit
  26-16  under Subsection (k)(2) may file with the court within five days
  26-17  after the date the copy is received a contest to the affidavit.
  26-18  The court shall hold a hearing on the facts alleged in the
  26-19  affidavit as soon as practicable and shall stay the enforcement of
  26-20  the penalty on finding that the alleged facts are true.  The person
  26-21  who files an affidavit has the burden of proving that the person is
  26-22  financially unable to pay the amount of the penalty and to give a
  26-23  supersedeas bond.
  26-24        (m)  If the person does not pay the amount of the penalty and
  26-25  the enforcement of the penalty is not stayed, the commissioner may
  26-26  refer the matter to the attorney general for collection of the
  26-27  amount of the penalty.
   27-1        (n)  Judicial review of the order of the board:
   27-2              (1)  is instituted by filing a petition as provided by
   27-3  Section 19, Administrative Procedure and Texas Register Act
   27-4  (Article 6252-13a, Vernon's Texas Civil Statutes); and
   27-5              (2)  is under the substantial evidence rule.
   27-6        (o)  If the court sustains the occurrence of the violation,
   27-7  the court may uphold or reduce the amount of the penalty and order
   27-8  the person to pay the full or reduced amount of the penalty.  If
   27-9  the court does not sustain the occurrence of the violation, the
  27-10  court shall order that no penalty is owed.
  27-11        (p)  When the judgment of the court becomes final, the court
  27-12  shall proceed under this subsection.  If the person paid the amount
  27-13  of the penalty and if that amount is reduced or is not upheld by
  27-14  the court, the court shall order that the appropriate amount plus
  27-15  accrued interest be remitted to the person.  The rate of the
  27-16  interest is the rate charged on loans to depository institutions by
  27-17  the New York Federal Reserve Bank, and the interest shall be paid
  27-18  for the period beginning on the date the penalty was paid and
  27-19  ending on the date the penalty is remitted.  If the person gave a
  27-20  supersedeas bond and if the amount of the penalty is not upheld by
  27-21  the court, the court shall order the release of the bond.  If the
  27-22  person gave a supersedeas bond and if the amount of the penalty is
  27-23  reduced, the court shall order the release of the bond after the
  27-24  person pays the amount.
  27-25        (q)  A penalty collected under this section shall be remitted
  27-26  to the comptroller for deposit in the general revenue fund.
  27-27        (r)  All proceedings under this section are subject to the
   28-1  Administrative Procedure and Texas Register Act (Article 6252-13a,
   28-2  Vernon's Texas Civil Statutes).
   28-3        SECTION 3.041.  Subchapter C, Chapter 241, Health and Safety
   28-4  Code, is amended by adding Section 241.0585 to read as follows:
   28-5        Sec. 241.0585.  RECOVERY OF COSTS.  If the attorney general
   28-6  brings an action to enforce an administrative penalty assessed
   28-7  under Section 241.058 and the court orders the payment of the
   28-8  penalty, the attorney general may recover reasonable expenses
   28-9  incurred in the investigation, initiation, or prosecution of the
  28-10  enforcement suit, including investigative costs, court costs,
  28-11  reasonable attorney fees, witness fees, and deposition expenses.
  28-12        SECTION 3.05.  Section 462.008, Health and Safety Code, is
  28-13  amended by amending Subsections (c) and (d) and adding Subsections
  28-14  (e) through (g) to read as follows:
  28-15        (c)  An individual who commits an offense under this section
  28-16  is subject on conviction to:
  28-17              (1)  a fine of not less than $50 or more than $25,000
  28-18  for each violation and each day of a continuing violation;
  28-19              (2)  confinement in jail for not more than two years
  28-20  for each violation and each day of a continuing violation; or
  28-21              (3)  both fine and confinement.
  28-22        (d)  A person other than an individual who commits an offense
  28-23  under this section is subject on conviction to a fine of not less
  28-24  than $500 or more than $100,000 for each violation and each day of
  28-25  a continuing violation.
  28-26        (e)  If it is shown on the trial of an individual that the
  28-27  individual has previously been convicted of an offense under this
   29-1  section, the offense is punishable by:
   29-2              (1)  a fine of not less than $100 or more than $50,000
   29-3  for each violation and each day of a continuing violation;
   29-4              (2)  confinement in jail for not more than four years
   29-5  for each violation and each day of a continuing violation; or
   29-6              (3)  both fine and confinement.
   29-7        (f)  If it is shown on the trial of a person other than an
   29-8  individual that the person previously has been convicted of an
   29-9  offense under this section, the offense is punishable by a fine of
  29-10  not less than $1,000 or more than $200,000 for each violation and
  29-11  each day of a continuing violation.
  29-12        (g)  <An offense under this section is a misdemeanor
  29-13  punishable by a fine of not more than $5,000, confinement in the
  29-14  county jail for not more than one year, or both.>
  29-15        <(d)>  The appropriate district or county attorney shall
  29-16  prosecute violations of this chapter.
  29-17        SECTION 3.06.  Section 464.014, Health and Safety Code, is
  29-18  amended to read as follows:
  29-19        Sec. 464.014.  Denial, Revocation, SUSPENSION, or Nonrenewal
  29-20  of License.  (a)  The executive director of the commission may
  29-21  deny, revoke, suspend, or refuse to renew a license if the
  29-22  applicant, license holder, or owner, director, administrator, or
  29-23  clinical staff member of the facility:
  29-24              (1)  has a documented history of client abuse or
  29-25  neglect; or
  29-26              (2)  fails to comply with this subchapter or with a
  29-27  rule of the commission adopted under this subchapter.
   30-1        (b)  The denial, revocation, suspension, or nonrenewal takes
   30-2  effect on the 30th day after the date on which the notice was
   30-3  mailed unless:
   30-4              (1)  the commission secures an injunction under Section
   30-5  464.015; or
   30-6              (2)  an administrative appeal is requested.
   30-7        (c)  If an administrative appeal is requested, the effective
   30-8  date of the commission's original decision must be postponed to
   30-9  allow the person whose license was denied, revoked, suspended, or
  30-10  not renewed to participate in the appeal.  The commission shall
  30-11  provide an opportunity for the affected person to present
  30-12  additional evidence or testimony to the commission.
  30-13        (d)  A person whose license is denied, revoked, suspended, or
  30-14  not renewed is entitled to:
  30-15              (1)  appeal that decision at a hearing before the
  30-16  commission or a hearings officer appointed by the commission; and
  30-17              (2)  receive notice of the date, time, and place of the
  30-18  hearing not later than the 15th day before the date of the hearing.
  30-19        (e)  A request for a hearing must be received by the
  30-20  commission not later than the 15th day after the date on which the
  30-21  notice of denial, revocation, suspension, or nonrenewal is mailed
  30-22  to the applicant or license holder.
  30-23        (f)  The commission may restrict attendance at an appeals
  30-24  hearing to the parties and their agents.
  30-25        (g)  If a license is denied, revoked, suspended, or not
  30-26  renewed after a hearing, the commission shall send to the applicant
  30-27  or license holder a copy of the commission's findings and grounds
   31-1  for the decision.
   31-2        (h)  An order denying, revoking, suspending, or refusing to
   31-3  renew a license takes effect on the 31st day after the date on
   31-4  which the applicant or license holder receives final notice of the
   31-5  denial, revocation, suspension, or nonrenewal.  A license holder
   31-6  whose license is suspended or revoked may not admit new clients
   31-7  until the license is reissued.
   31-8        (i)  The Administrative Procedure and Texas Register Act
   31-9  (Article 6252-13a, Vernon's Texas Civil Statutes) applies to a
  31-10  judicial review of a commission appeals hearing under this
  31-11  subchapter.
  31-12        SECTION 3.07.  Section 464.015, Health and Safety Code, is
  31-13  amended by amending Subsections (b) through (e) and adding
  31-14  Subsections (f) and (g) to read as follows:
  31-15        (b)  A suit for injunctive relief, civil penalties authorized
  31-16  by Section 464.017, or both, must be brought in Travis County or
  31-17  the county in which the violation occurs.
  31-18        (c)  A district court, on petition of the commission, the
  31-19  attorney general, or a district or county attorney, and on a
  31-20  finding by the court that a person or facility is violating or has
  31-21  violated this subchapter or a standard adopted under this
  31-22  subchapter, shall grant any prohibitory or mandatory injunctive
  31-23  relief warranted by the facts, including a temporary restraining
  31-24  order, temporary injunction, or permanent injunction.
  31-25        (d)  The court granting <the> injunctive relief shall order
  31-26  the person or facility to reimburse the commission and the party
  31-27  bringing the suit for all costs of investigation and litigation,
   32-1  including reasonable attorney's fees, reasonable investigative
   32-2  expenses, court costs, witness fees, deposition expenses, and civil
   32-3  administrative costs.
   32-4        (e)  At the request of the commission, the attorney general
   32-5  or the appropriate district or county attorney shall institute and
   32-6  conduct a suit authorized by Subsection (a) in the name of this
   32-7  state.
   32-8        (f)  On his own initiative, the attorney general or a
   32-9  district attorney or county attorney may maintain an action for
  32-10  injunctive relief in the name of the state for a violation of this
  32-11  subchapter or a standard adopted under this subchapter.
  32-12        (g)  The injunctive relief and civil penalty authorized by
  32-13  this section and Section 464.017 are in addition to any other
  32-14  civil, administrative, or criminal penalty provided by law.
  32-15        SECTION 3.08.  Section 464.017, Health and Safety Code, is
  32-16  amended by amending Subsections (a), (c), and (e) and adding
  32-17  Subsections (f) and (g) to read as follows:
  32-18        (a)  A person or facility is subject to a civil penalty of
  32-19  not <less than $10 or> more than $25,000 <$200> for each day of
  32-20  violation and for each act of violation of this subchapter or a
  32-21  rule adopted under this subchapter.  In determining the amount of
  32-22  the civil penalty, the court shall consider:
  32-23              (1)  the person's or facility's previous violations;
  32-24              (2)  the seriousness of the violation, including the
  32-25  nature, circumstances, extent, and gravity of the violation;
  32-26              (3)  whether the health and safety of the public was
  32-27  threatened by the violation;
   33-1              (4)  the demonstrated good faith of the person or
   33-2  facility; and
   33-3              (5)  the amount necessary to deter future violations.
   33-4        (c)  At the request of the commission, the attorney general
   33-5  or the appropriate district or county attorney shall institute and
   33-6  conduct the suit authorized by Subsection (b) in the name of this
   33-7  state.  The commission and the party bringing the suit may recover
   33-8  reasonable expenses incurred in obtaining civil penalties,
   33-9  including investigation costs, court costs, reasonable attorney
  33-10  fees, witness fees, and deposition expenses.
  33-11        (e)  On his own initiative, the attorney general, a district
  33-12  attorney, or a county attorney may maintain an action for civil
  33-13  penalties in the name of the state for a violation of this
  33-14  subchapter or a standard adopted under this subchapter.
  33-15        (f)  Penalties collected under this section by the attorney
  33-16  general shall be deposited to the credit of the alcohol and drug
  33-17  abuse treatment licensure fund.  Penalties collected under this
  33-18  section by a district or county attorney shall be deposited to the
  33-19  credit of the general fund of the county in which the suit was
  33-20  heard.
  33-21        (g)  The commission and the party bringing the suit may
  33-22  recover reasonable expenses incurred in obtaining civil penalties,
  33-23  including investigation costs, court costs, reasonable attorney
  33-24  fees, witness fees, and deposition expenses.
  33-25        SECTION 3.09.  Subchapter A, Chapter 464, Health and Safety
  33-26  Code, is amended by adding Sections 464.018 and 464.019 to read as
  33-27  follows:
   34-1        Sec. 464.018.  NOTICE OF SUIT.  Not later than the seventh
   34-2  day before the date on which the attorney general intends to bring
   34-3  suit on his own initiative under Section 464.015 or 464.017, the
   34-4  attorney general shall provide to the commission notice of the
   34-5  suit.  The attorney general is not required to provide notice of a
   34-6  suit if the attorney general determines that waiting to bring suit
   34-7  until the notice is provided will create an immediate threat to the
   34-8  health and safety of a client.  This section does not create a
   34-9  requirement that the attorney general obtain the permission of or a
  34-10  referral from the commission before filing suit.
  34-11        Sec. 464.019.  ADMINISTRATIVE PENALTY.  (a)  The commission
  34-12  may impose an administrative penalty against a person licensed or
  34-13  regulated under this chapter who violates this chapter or a rule or
  34-14  order adopted under this chapter.
  34-15        (b)  The penalty for a violation may be in an amount not to
  34-16  exceed $25,000.  Each day a violation continues or occurs is a
  34-17  separate violation for purposes of imposing a penalty.
  34-18        (c)  The amount of the penalty shall be based on:
  34-19              (1)  the seriousness of the violation, including the
  34-20  nature, circumstances, extent, and gravity of any prohibited acts,
  34-21  and the hazard or potential hazard created to the health, safety,
  34-22  or economic welfare of the public;
  34-23              (2)  enforcement costs relating to the violation;
  34-24              (3)  the history of previous violations;
  34-25              (4)  the amount necessary to deter future violations;
  34-26              (5)  efforts to correct the violation; and
  34-27              (6)  any other matter that justice may require.
   35-1        (d)  If the executive director determines that a violation
   35-2  has occurred, the director may issue to the commission a report
   35-3  that states the facts on which the determination is based and the
   35-4  director's recommendation on the imposition of a penalty, including
   35-5  a recommendation on the amount of the penalty.
   35-6        (e)  Within 14 days after the date the report is issued, the
   35-7  executive director shall give written notice of the report to the
   35-8  person.  The notice may be given by certified mail.  The notice
   35-9  must include a brief summary of the alleged violation and a
  35-10  statement of the amount of the recommended penalty and must inform
  35-11  the person that the person has a right to a hearing on the
  35-12  occurrence of the violation, the amount of the penalty, or both the
  35-13  occurrence of the violation and the amount of the penalty.
  35-14        (f)  Within 20 days after the date the person receives the
  35-15  notice, the person in writing may accept the determination and
  35-16  recommended penalty of the commissioner or may make a written
  35-17  request for a hearing on the occurrence of the violation, the
  35-18  amount of the penalty, or both the occurrence of the violation and
  35-19  the amount of the penalty.
  35-20        (g)  If the person accepts the determination and recommended
  35-21  penalty of the commissioner, the board by order shall approve the
  35-22  determination and impose the recommended penalty.
  35-23        (h)  If the person requests a hearing or fails to respond
  35-24  timely to the notice, the commissioner shall set a hearing and give
  35-25  notice of the hearing to the person.  The administrative law judge
  35-26  shall make findings of fact and conclusions of law and promptly
  35-27  issue to the board a proposal for a decision about the occurrence
   36-1  of the violation and the amount of a proposed penalty.  Based on
   36-2  the findings of fact, conclusions of law, and proposal for a
   36-3  decision, the board by order may find that a violation has occurred
   36-4  and impose a penalty or may find that no violation occurred.
   36-5        (i)  The notice of the board's order given to the person
   36-6  under the Administrative Procedure and Texas Register Act (Article
   36-7  6252-13a, Vernon's Texas Civil Statutes) must include a statement
   36-8  of the right of the person to judicial review of the order.
   36-9        (j)  Within 30 days after the date the board's order is final
  36-10  as provided by Section 16(c), Administrative Procedure and Texas
  36-11  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes), the
  36-12  person shall:
  36-13              (1)  pay the amount of the penalty;
  36-14              (2)  pay the amount of the penalty and file a petition
  36-15  for judicial review contesting the occurrence of the violation, the
  36-16  amount of the penalty, or both the occurrence of the violation and
  36-17  the amount of the penalty; or
  36-18              (3)  without paying the amount of the penalty, file a
  36-19  petition for judicial review contesting the occurrence of the
  36-20  violation, the amount of the penalty, or both the occurrence of the
  36-21  violation and the amount of the penalty.
  36-22        (k)  Within the 30-day period, a person who acts under
  36-23  Subsection (j)(3) may:
  36-24              (1)  stay enforcement of the penalty by:
  36-25                    (A)  paying the amount of the penalty to the
  36-26  court for placement in an escrow account; or
  36-27                    (B)  giving to the court a supersedeas bond that
   37-1  is approved by the court for the amount of the penalty and that is
   37-2  effective until all judicial review of the board's order is final;
   37-3  or
   37-4              (2)  request the court to stay enforcement of the
   37-5  penalty by:
   37-6                    (A)  filing with the court a sworn affidavit of
   37-7  the person stating that the person is financially unable to pay the
   37-8  amount of the penalty and is financially unable to give the
   37-9  supersedeas bond; and
  37-10                    (B)  giving a copy of the affidavit to the
  37-11  commissioner by certified mail.
  37-12        (l)  The commissioner on receipt of a copy of an affidavit
  37-13  under Subsection (k)(2) may file with the court within five days
  37-14  after the date the copy is received a contest to the affidavit.
  37-15  The court shall hold a hearing on the facts alleged in the
  37-16  affidavit as soon as practicable and shall stay the enforcement of
  37-17  the penalty on finding that the alleged facts are true.  The person
  37-18  who files an affidavit has the burden of proving that the person is
  37-19  financially unable to pay the amount of the penalty and to give a
  37-20  supersedeas bond.
  37-21        (m)  If the person does not pay the amount of the penalty and
  37-22  the enforcement of the penalty is not stayed, the commissioner may
  37-23  refer the matter to the attorney general for collection of the
  37-24  amount of the penalty.
  37-25        (n)  Judicial review of the order of the board:
  37-26              (1)  is instituted by filing a petition as provided by
  37-27  Section 19, Administrative Procedure and Texas Register Act
   38-1  (Article 6252-13a, Vernon's Texas Civil Statutes); and
   38-2              (2)  is under the substantial evidence rule.
   38-3        (o)  If the court sustains the occurrence of the violation,
   38-4  the court may uphold or reduce the amount of the penalty and order
   38-5  the person to pay the full or reduced amount of the penalty.  If
   38-6  the court does not sustain the occurrence of the violation, the
   38-7  court shall order that no penalty is owed.
   38-8        (p)  When the judgment of the court becomes final, the court
   38-9  shall proceed under this subsection.  If the person paid the amount
  38-10  of the penalty and if that amount is reduced or is not upheld by
  38-11  the court, the court shall order that the appropriate amount plus
  38-12  accrued interest be remitted to the person.  The rate of the
  38-13  interest is the rate charged on loans to depository institutions by
  38-14  the New York Federal Reserve Bank, and the interest shall be paid
  38-15  for the period beginning on the date the penalty was paid and
  38-16  ending on the date the penalty is remitted.  If the person gave a
  38-17  supersedeas bond and if the amount of the penalty is not upheld by
  38-18  the court, the court shall order the release of the bond.  If the
  38-19  person gave a supersedeas bond and if the amount of the penalty is
  38-20  reduced, the court shall order the release of the bond after the
  38-21  person pays the amount.
  38-22        (q)  A penalty collected under this section shall be remitted
  38-23  to the comptroller for deposit in the general revenue fund.
  38-24        (r)  All proceedings under this section are subject to the
  38-25  Administrative Procedure and Texas Register Act (Article 6252-13a,
  38-26  Vernon's Texas Civil Statutes).
  38-27        SECTION 2.091.  Subchapter A, Chapter 464, Health and Safety
   39-1  Code, is amended by adding Section 464.0195 to read as follows:
   39-2        Sec. 464.0195.  RECOVERY OF COSTS.  If the attorney general
   39-3  brings an action to enforce an administrative penalty assessed
   39-4  under Section 464.019 and the court orders the payment of the
   39-5  penalty, the attorney general may recover reasonable expenses
   39-6  incurred in the investigation, initiation, or prosecution of the
   39-7  enforcement suit, including investigative costs, court costs,
   39-8  reasonable attorney fees, witness fees, and deposition expenses.
   39-9        SECTION 3.10.  (a)  Section 571.020, Health and Safety Code,
  39-10  is amended to read as follows:
  39-11        Sec. 571.020.  CRIMINAL PENALTIES.  (a)  A person commits an
  39-12  offense if the person intentionally causes, conspires with another
  39-13  to cause, or assists another to cause the unwarranted commitment of
  39-14  a person to a mental health facility.  <An offense under this
  39-15  subsection is a misdemeanor punishable by a fine of not more than
  39-16  $5,000, confinement in the county jail for not more than two years,
  39-17  or both.>
  39-18        (b)  A person commits an offense if the person knowingly
  39-19  violates a provision of this subtitle.  <An offense under this
  39-20  subsection is a misdemeanor punishable by a fine of not more than
  39-21  $5,000, confinement in the county jail for not more than one year,
  39-22  or both.>
  39-23        (c)  An individual who commits an offense under this section
  39-24  is subject on conviction to:
  39-25              (1)  a fine of not less than $50 or more than $25,000
  39-26  for each violation and each day of a continuing violation;
  39-27              (2)  confinement in jail for not more than two years
   40-1  for each violation and each day of a continuing violation; or
   40-2              (3)  both fine and confinement.
   40-3        (d)  A person other than an individual who commits an offense
   40-4  under this section is subject on conviction to a fine of not less
   40-5  than $500 or more than $100,000 for each violation and each day of
   40-6  a continuing violation.
   40-7        (e)  If it is shown on the trial of an individual that the
   40-8  individual has previously been convicted of an offense under this
   40-9  section, the offense is punishable by:
  40-10              (1)  a fine of not less than $100 or more than $50,000
  40-11  for each violation and each day of a continuing violation;
  40-12              (2)  confinement in jail for not more than four years
  40-13  for each violation and each day of a continuing violation; or
  40-14              (3)  both fine and confinement.
  40-15        (f)  If it is shown on the trial of a person other than an
  40-16  individual that the person previously has been convicted of an
  40-17  offense under this section, the offense is punishable by a fine of
  40-18  not less than $1,000 or more than $200,000 for each violation and
  40-19  each day of a continuing violation.
  40-20        (b)  Section 3, Chapter 567, Acts of the 72nd Legislature,
  40-21  Regular Session, 1991, is repealed.
  40-22        SECTION 3.11.  Chapter 571, Health and Safety Code, is
  40-23  amended by adding Sections 571.022, 571.023, 571.024, and 571.025
  40-24  to read as follows:
  40-25        Sec. 571.022.  INJUNCTION.  (a)  At the request of the
  40-26  department, the attorney general or the appropriate district or
  40-27  county attorney shall institute and conduct in the name of the
   41-1  state a suit for a violation of this subtitle or a rule adopted
   41-2  under this subtitle.
   41-3        (b)  On his own initiative, the attorney general or district
   41-4  or county attorney may maintain an action for a violation of this
   41-5  subtitle or a rule adopted under this subtitle in the name of the
   41-6  state.
   41-7        (c)  Venue may be maintained in Travis County or in the
   41-8  county in which the violation occurred.
   41-9        (d)  The district court may grant any prohibitory or
  41-10  mandatory injunctive relief warranted by the facts, including a
  41-11  temporary restraining order, temporary injunction, or permanent
  41-12  injunction.
  41-13        Sec. 571.023.  CIVIL PENALTY.  (a)  A person is subject to a
  41-14  civil penalty of not more than $25,000 for each day of violation
  41-15  and for each act of violation of this subtitle or a rule adopted
  41-16  under this subtitle.  In determining the amount of the civil
  41-17  penalty, the court shall consider:
  41-18              (1)  the person's or facility's previous violations;
  41-19              (2)  the seriousness of the violation, including the
  41-20  nature, circumstances, extent, and gravity of the violation;
  41-21              (3)  whether the health and safety of the public was
  41-22  threatened by the violation;
  41-23              (4)  the demonstrated good faith of the person or
  41-24  facility; and
  41-25              (5)  the amount necessary to deter future violations.
  41-26        (b)  The department or party bringing the suit may:
  41-27              (1)  combine a suit to assess and recover civil
   42-1  penalties with a suit for injunctive relief brought under Section
   42-2  571.022 or 577.019; or
   42-3              (2)  file a suit to assess and recover civil penalties
   42-4  independently of a suit for injunctive relief.
   42-5        (c)  At the request of the department, the attorney general
   42-6  or the appropriate district or county attorney shall institute and
   42-7  conduct the suit authorized by Subsection (b) in the name of the
   42-8  state.
   42-9        (d)  On his own initiative, the attorney general, district
  42-10  attorney, or county attorney may maintain an action as authorized
  42-11  by Subsection (b) for a violation of this subtitle or a rule
  42-12  adopted under this subtitle in the name of the state.
  42-13        (e)  The department and the party bringing the suit may
  42-14  recover reasonable expenses incurred in obtaining injunctive
  42-15  relief, civil penalties, or both, including investigation costs,
  42-16  court costs, reasonable attorney fees, witness fees, and deposition
  42-17  expenses.
  42-18        (f)  A penalty collected under this section by the attorney
  42-19  general shall be deposited to the credit of the general revenue
  42-20  fund.  A penalty collected under this section by a district or
  42-21  county attorney shall be deposited to the credit of the general
  42-22  fund of the county in which the suit was heard.
  42-23        (g)  The civil penalty and injunctive relief authorized by
  42-24  this section and Sections 571.022 and 577.019 are in addition to
  42-25  any other civil, administrative, or criminal remedies provided by
  42-26  law.
  42-27        Sec. 571.024.  NOTICE OF SUIT.  Not later than the seventh
   43-1  day before the date on which the attorney general intends to bring
   43-2  suit on his own initiative, the attorney general shall provide to
   43-3  the department notice of the suit.  The attorney general is not
   43-4  required to provide notice of a suit if the attorney general
   43-5  determines that waiting to bring suit until the notice is provided
   43-6  will create an immediate threat to the health and safety of a
   43-7  patient.  This section does not create a requirement that the
   43-8  attorney general obtain the permission of or a referral from the
   43-9  department before filing suit.
  43-10        Sec. 571.025.  ADMINISTRATIVE PENALTY.  (a)  The board may
  43-11  impose an administrative penalty against a person licensed or
  43-12  regulated under this subtitle who violates this subtitle or a rule
  43-13  or order adopted under this subtitle.
  43-14        (b)  The penalty for a violation may be in an amount not to
  43-15  exceed $25,000.  Each day a violation continues or occurs is a
  43-16  separate violation for purposes of imposing a penalty.
  43-17        (c)  The amount of the penalty shall be based on:
  43-18              (1)  the seriousness of the violation, including the
  43-19  nature, circumstances, extent, and gravity of any prohibited acts,
  43-20  and the hazard or potential hazard created to the health, safety,
  43-21  or economic welfare of the public;
  43-22              (2)  enforcement costs relating to the violation,
  43-23  including investigation costs, witness fees, and deposition
  43-24  expenses;
  43-25              (3)  the history of previous violations;
  43-26              (4)  the amount necessary to deter future violations;
  43-27              (5)  efforts to correct the violation; and
   44-1              (6)  any other matter that justice may require.
   44-2        (d)  If the commissioner determines that a violation has
   44-3  occurred, the commissioner may issue to the board a report that
   44-4  states the facts on which the determination is based and the
   44-5  commissioner's recommendation on the imposition of a penalty,
   44-6  including a recommendation on the amount of the penalty.
   44-7        (e)  Within 14 days after the date the report is issued, the
   44-8  commissioner shall give written notice of the report to the person.
   44-9  The notice may be given by certified mail.  The notice must include
  44-10  a brief summary of the alleged violation and a statement of the
  44-11  amount of the recommended penalty and must inform the person that
  44-12  the person has a right to a hearing on the occurrence of the
  44-13  violation, the amount of the penalty, or both the occurrence of the
  44-14  violation and the amount of the penalty.
  44-15        (f)  Within 20 days after the date the person receives the
  44-16  notice, the person in writing may accept the determination and
  44-17  recommended penalty of the commissioner or may make a written
  44-18  request for a hearing on the occurrence of the violation, the
  44-19  amount of the penalty, or both the occurrence of the violation and
  44-20  the amount of the penalty.
  44-21        (g)  If the person accepts the determination and recommended
  44-22  penalty of the commissioner, the board by order shall approve the
  44-23  determination and impose the recommended penalty.
  44-24        (h)  If the person requests a hearing or fails to respond
  44-25  timely to the notice, the commissioner shall set a hearing and give
  44-26  notice of the hearing to the person.  The administrative law judge
  44-27  shall make findings of fact and conclusions of law and promptly
   45-1  issue to the board a proposal for a decision about the occurrence
   45-2  of the violation and the amount of a proposed penalty.  Based on
   45-3  the findings of fact, conclusions of law, and proposal for a
   45-4  decision, the board by order may find that a violation has occurred
   45-5  and impose a penalty or may find that no violation occurred.
   45-6        (i)  The notice of the board's order given to the person
   45-7  under the Administrative Procedure and Texas Register Act (Article
   45-8  6252-13a, Vernon's Texas Civil Statutes) must include a statement
   45-9  of the right of the person to judicial review of the order.
  45-10        (j)  Within 30 days after the date the board's order is final
  45-11  as provided by Section 16(c), Administrative Procedure and Texas
  45-12  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes), the
  45-13  person shall:
  45-14              (1)  pay the amount of the penalty;
  45-15              (2)  pay the amount of the penalty and file a petition
  45-16  for judicial review contesting the occurrence of the violation, the
  45-17  amount of the penalty, or both the occurrence of the violation and
  45-18  the amount of the penalty; or
  45-19              (3)  without paying the amount of the penalty, file a
  45-20  petition for judicial review contesting the occurrence of the
  45-21  violation, the amount of the penalty, or both the occurrence of the
  45-22  violation and the amount of the penalty.
  45-23        (k)  Within the 30-day period, a person who acts under
  45-24  Subsection (j)(3) may:
  45-25              (1)  stay enforcement of the penalty by:
  45-26                    (A)  paying the amount of the penalty to the
  45-27  court for placement in an escrow account; or
   46-1                    (B)  giving to the court a supersedeas bond that
   46-2  is approved by the court for the amount of the penalty and that is
   46-3  effective until all judicial review of the board's order is final;
   46-4  or
   46-5              (2)  request the court to stay enforcement of the
   46-6  penalty by:
   46-7                    (A)  filing with the court a sworn affidavit of
   46-8  the person stating that the person is financially unable to pay the
   46-9  amount of the penalty and is financially unable to give the
  46-10  supersedeas bond; and
  46-11                    (B)  giving a copy of the affidavit to the
  46-12  commissioner by certified mail.
  46-13        (l)  The commissioner on receipt of a copy of an affidavit
  46-14  under Subsection (k)(2) may file with the court within five days
  46-15  after the date the copy is received a contest to the affidavit.
  46-16  The court shall hold a hearing on the facts alleged in the
  46-17  affidavit as soon as practicable and shall stay the enforcement of
  46-18  the penalty on finding that the alleged facts are true.  The person
  46-19  who files an affidavit has the burden of proving that the person is
  46-20  financially unable to pay the amount of the penalty and to give a
  46-21  supersedeas bond.
  46-22        (m)  If the person does not pay the amount of the penalty and
  46-23  the enforcement of the penalty is not stayed, the commissioner may
  46-24  refer the matter to the attorney general for collection of the
  46-25  amount of the penalty.
  46-26        (n)  Judicial review of the order of the board:
  46-27              (1)  is instituted by filing a petition as provided by
   47-1  Section 19, Administrative Procedure and Texas Register Act
   47-2  (Article 6252-13a, Vernon's Texas Civil Statutes); and
   47-3              (2)  is under the substantial evidence rule.
   47-4        (o)  If the court sustains the occurrence of the violation,
   47-5  the court may uphold or reduce the amount of the penalty and order
   47-6  the person to pay the full or reduced amount of the penalty.  If
   47-7  the court does not sustain the occurrence of the violation, the
   47-8  court shall order that no penalty is owed.
   47-9        (p)  When the judgment of the court becomes final, the court
  47-10  shall proceed under this subsection.  If the person paid the amount
  47-11  of the penalty and if that amount is reduced or is not upheld by
  47-12  the court, the court shall order that the appropriate amount plus
  47-13  accrued interest be remitted to the person.  The rate of the
  47-14  interest is the rate charged on loans to depository institutions by
  47-15  the New York Federal Reserve Bank, and the interest shall be paid
  47-16  for the period beginning on the date the penalty was paid and
  47-17  ending on the date the penalty is remitted.  If the person gave a
  47-18  supersedeas bond and if the amount of the penalty is not upheld by
  47-19  the court, the court shall order the release of the bond.  If the
  47-20  person gave a supersedeas bond and if the amount of the penalty is
  47-21  reduced, the court shall order the release of the bond after the
  47-22  person pays the amount.
  47-23        (q)  A penalty collected under this section shall be remitted
  47-24  to the comptroller for deposit in the general revenue fund.
  47-25        (r)  All proceedings under this section are subject to the
  47-26  Administrative Procedure and Texas Register Act (Article 6252-13a,
  47-27  Vernon's Texas Civil Statutes).
   48-1        SECTION 3.111.  Chapter 571, Health and Safety Code, is
   48-2  amended by adding Section 571.026 to read as follows:
   48-3        Sec. 571.026.  RECOVERY OF COSTS.  If the attorney general
   48-4  brings an action to enforce an administrative penalty assessed
   48-5  under this chapter and the court orders the payment of the penalty,
   48-6  the attorney general may recover reasonable expenses incurred in
   48-7  the investigation, initiation, or prosecution of the enforcement
   48-8  suit, including investigative costs, court costs, reasonable
   48-9  attorney fees, witness fees, and deposition expenses.
  48-10        SECTION 3.12.  Section 577.016, Health and Safety Code, is
  48-11  amended by adding Subsection (e) to read as follows:
  48-12        (e)  A license holder whose license is suspended or revoked
  48-13  may not admit new patients until the license is reissued.
  48-14        SECTION 3.13.  Section 577.019, Health and Safety Code, is
  48-15  amended to read as follows:
  48-16        Sec. 577.019.  INJUNCTION.  (a)  The department, in the name
  48-17  of the state, may maintain an action in a district court of Travis
  48-18  County or in the county in which the violation occurs for an
  48-19  injunction or other process against any person to restrain the
  48-20  person from operating a mental hospital or mental health facility
  48-21  that is not licensed as required by this chapter.
  48-22        (b)  The district court <of Travis County, for cause shown,>
  48-23  may grant any prohibitory or mandatory relief warranted by the
  48-24  facts, including a temporary restraining order, temporary
  48-25  injunction, or permanent injunction <restrain a violation of this
  48-26  chapter>.
  48-27        (c)  At the request of the department or on the initiative of
   49-1  the attorney general or district or county attorney, the attorney
   49-2  general or the appropriate district or county attorney shall
   49-3  institute and conduct a suit authorized by this section in the name
   49-4  of the state.  The attorney general may recover reasonable expenses
   49-5  incurred in instituting and conducting a suit authorized by this
   49-6  section, including investigative costs, court costs, reasonable
   49-7  attorney fees, witness fees, and deposition expenses.
   49-8                               ARTICLE 4
   49-9        SECTION 4.01.  Subsection (e), Section 572.001, Health and
  49-10  Safety Code, is amended to read as follows:
  49-11        (e)  A request for admission as a voluntary patient must
  49-12  state that the person for whom admission is requested agrees to
  49-13  voluntarily remain in the facility until the person's discharge and
  49-14  that the person consents to the diagnosis, observation, care, and
  49-15  treatment provided until the earlier of:
  49-16              (1)  the person's discharge; or
  49-17              (2)  the period prescribed <expiration of 96 hours
  49-18  after the time a written request for release is filed as provided>
  49-19  by Section 572.004.
  49-20        SECTION 4.02.  (a)  Section 572.004, Health and Safety Code,
  49-21  is amended to read as follows:
  49-22        Sec. 572.004.  DISCHARGE <OR RELEASE>.  (a)  A <Except as
  49-23  provided by Subsection (b), a> voluntary patient is entitled to
  49-24  leave an inpatient mental health facility in accordance with this
  49-25  section <within 96 hours> after <the time> a written request for
  49-26  discharge <release> is filed with the facility administrator or the
  49-27  administrator's designee.  The request must be signed, timed, and
   50-1  dated by the patient or a person legally responsible for the
   50-2  patient and must be made a part of the patient's clinical record.
   50-3  If a patient informs an employee of or person associated with the
   50-4  facility of the patient's desire to leave the facility, the
   50-5  employee or person shall, as soon as possible, assist the patient
   50-6  in creating the written request and present it to the patient for
   50-7  the patient's signature <patient's admission>.
   50-8        (b)  The facility shall, within four hours after a request
   50-9  for discharge is filed, notify the physician responsible for the
  50-10  patient's treatment.  If that physician is not available during
  50-11  that period, the facility shall notify any available physician of
  50-12  the request.
  50-13        (c)  The notified physician shall discharge the patient
  50-14  before the end of the four-hour period unless the physician has
  50-15  reasonable cause to believe that the patient might meet the
  50-16  criteria for court-ordered mental health services or emergency
  50-17  detention.
  50-18        (d)  A physician who has reasonable cause to believe that a
  50-19  patient might meet the criteria for court-ordered mental health
  50-20  services or emergency detention shall examine the patient as soon
  50-21  as possible within 24 hours after the time the request for
  50-22  discharge is filed.  The physician shall discharge the patient on
  50-23  completion of the examination unless the physician determines that
  50-24  the person meets the criteria for court-ordered mental health
  50-25  services or emergency detention.  If the physician makes a
  50-26  determination that the patient meets the criteria for court-ordered
  50-27  mental health services or emergency detention, the physician shall,
   51-1  not later than 4 p.m. on the next succeeding business day after the
   51-2  date on which the examination occurs, either discharge the patient
   51-3  or file an application for court-ordered mental health services or
   51-4  emergency detention and obtain a written order for further
   51-5  detention.  The physician shall notify the patient if the physician
   51-6  intends to detain the patient under this subsection or intends to
   51-7  file an application for court-ordered mental health services or
   51-8  emergency detention.  A decision to detain a patient under this
   51-9  subsection and the reasons for the decision shall be made a part of
  51-10  the patient's clinical record.
  51-11        (e)  If extremely hazardous weather conditions exist or a
  51-12  disaster occurs, the physician may request the judge of a court
  51-13  that has jurisdiction over proceedings brought under Chapter 574 to
  51-14  extend the period during which the patient may be detained.  The
  51-15  judge or a magistrate appointed by the judge may by written order
  51-16  made each day extend the period during which the patient may be
  51-17  detained until 4 p.m. on the first succeeding business day.  The
  51-18  written order must declare that an emergency exists because of the
  51-19  weather or the occurrence of a disaster.
  51-20        (f)  The patient is not entitled to leave the facility if
  51-21  before the end of the <96 hour> period prescribed by this section:
  51-22              (1)  a written withdrawal of the request for discharge
  51-23  <release> is filed; or
  51-24              (2)  an application for court-ordered mental health
  51-25  services or emergency detention is filed and the patient is
  51-26  detained in accordance with this subtitle.
  51-27        (g) <(c)>  A plan for continuing care shall be prepared in
   52-1  accordance with Section 574.081 for each patient discharged.  If
   52-2  sufficient time to prepare a continuing care plan before discharge
   52-3  is not available, the plan may be prepared and mailed to the
   52-4  appropriate person within 24 hours after the patient is discharged
   52-5  <or released if sufficient time is available before release>.
   52-6        (h) <(d)>  The patient or other person who files a request
   52-7  for discharge <release> of a patient shall be notified that the
   52-8  person filing the request assumes all responsibility for the
   52-9  patient on discharge.
  52-10        (b)  In addition to the substantive changes made by this
  52-11  section, this section conforms Section 572.004, Health and Safety
  52-12  Code, to Section 4, Chapter 567, Acts of the 72nd Legislature,
  52-13  Regular Session, 1991.
  52-14        (c)  Section 4, Chapter 567, Acts of the 72nd Legislature,
  52-15  Regular Session, 1991, is repealed.
  52-16        SECTION 4.03.  Chapter 572, Health and Safety Code, is
  52-17  amended by adding Section 572.0025 to read as follows:
  52-18        Sec. 572.0025.  INTAKE, ASSESSMENT, AND ADMISSION.  (a)  The
  52-19  board shall adopt rules governing the voluntary admission of a
  52-20  patient to an inpatient mental health facility, including rules
  52-21  governing the intake and assessment procedures of the admission
  52-22  process.
  52-23        (b)  The rules governing the intake process shall establish
  52-24  minimum standards for:
  52-25              (1)  reviewing a prospective patient's finances and
  52-26  insurance benefits;
  52-27              (2)  explaining to a prospective patient the patient's
   53-1  rights; and
   53-2              (3)  explaining to a prospective patient the facility's
   53-3  services and treatment process.
   53-4        (c)  The assessment provided for by the rules may be
   53-5  conducted only by a professional who meets the qualifications
   53-6  prescribed by board rules.
   53-7        (d)  The rules governing the assessment process shall
   53-8  prescribe:
   53-9              (1)  the types of professionals who may conduct an
  53-10  assessment;
  53-11              (2)  the minimum credentials each type of professional
  53-12  must have to conduct an assessment; and
  53-13              (3)  the type of assessment that professional may
  53-14  conduct.
  53-15        (e)  In accordance with board rule, a facility shall provide
  53-16  annually a minimum of eight hours of inservice training regarding
  53-17  intake and assessment for persons who will be conducting an intake
  53-18  or assessment for the facility.  A person may not conduct intake or
  53-19  assessments without having completed the initial and applicable
  53-20  annual inservice training.
  53-21        (f)  A prospective voluntary patient may not be formally
  53-22  accepted for treatment in a facility unless:
  53-23              (1)  the facility has a physician's signed order
  53-24  admitting the prospective patient; and
  53-25              (2)  the facility administrator or a person designated
  53-26  by the administrator has agreed to accept the prospective patient
  53-27  and has signed a statement to that effect.
   54-1        (g)  An assessment conducted as required by rules adopted
   54-2  under this section does not satisfy a statutory or regulatory
   54-3  requirement for a personal evaluation of a patient or a prospective
   54-4  patient by a physician before admission.
   54-5        (h)  In this section:
   54-6              (1)  "Admission" means the formal acceptance of a
   54-7  prospective patient to a facility.
   54-8              (2)  "Assessment" means the administrative process a
   54-9  facility uses to gather information from a prospective patient,
  54-10  including a medical history and the problem for which the patient
  54-11  is seeking treatment, to determine whether a prospective patient
  54-12  should be examined by a physician to determine if admission is
  54-13  clinically justified.
  54-14              (3)  "Intake" means the administrative process for
  54-15  gathering information about a prospective patient and giving a
  54-16  prospective patient information about the facility and the
  54-17  facility's treatment and services.
  54-18        SECTION 4.04.  Subsections (a), (b), and (d), Section
  54-19  574.081, Health and Safety Code, are amended to read as follows:
  54-20        (a)  The physician responsible for the patient's treatment
  54-21  <facility administrator> shall prepare a continuing care plan for a
  54-22  patient who is scheduled to be furloughed or discharged unless <if>
  54-23  the patient does not require <requires> continuing care.
  54-24        (b)  The physician <facility administrator> shall prepare the
  54-25  plan as prescribed by department rules and shall consult the
  54-26  patient and the mental health authority in the area in which the
  54-27  patient will reside before preparing the plan.  The mental health
   55-1  authority is not required to participate in preparing a plan for a
   55-2  patient furloughed or discharged from a private mental health
   55-3  facility.
   55-4        (d)  The physician <facility administrator> shall deliver the
   55-5  plan and other appropriate information to the community center or
   55-6  other provider that will deliver the services if:
   55-7              (1)  the services are provided by:
   55-8                    (A)  a community center or other provider that
   55-9  serves the county in which the patient will reside and that has
  55-10  been designated by the commissioner to perform continuing care
  55-11  services; or
  55-12                    (B)  any other provider that agrees to accept the
  55-13  referral; and
  55-14              (2)  the provision of care by the center or provider is
  55-15  appropriate.
  55-16        SECTION 4.05.  Section 574.081, Health and Safety Code, is
  55-17  amended by adding Subsection (f) to read as follows:
  55-18        (f)  A physician who believes that a patient does not require
  55-19  continuing care and who does not prepare a continuing care plan
  55-20  under this section shall document in the patient's treatment record
  55-21  the reasons for that belief.
  55-22        SECTION 4.06.  Section 576.008, Health and Safety Code, is
  55-23  amended to read as follows:
  55-24        Sec. 576.008.  NOTIFICATION OF PROTECTION AND ADVOCACY
  55-25  SYSTEM.  A patient shall be informed in writing, at the time of
  55-26  admission and <or> discharge, of the existence, purpose, telephone
  55-27  number, and address of the protection and advocacy system
   56-1  established in this state under the federal Protection and Advocacy
   56-2  for Mentally Ill Individuals Act of 1986 (42 U.S.C. Sec. 10801, et
   56-3  seq.).
   56-4        SECTION 4.07.  Chapter 577, Health and Safety Code, is
   56-5  amended by adding Section 577.0101 to read as follows:
   56-6        Sec. 577.0101.  NOTIFICATION OF TRANSFER OR REFERRAL.
   56-7  (a)  The board shall adopt rules governing the transfer or referral
   56-8  of a patient from a private mental hospital to an inpatient mental
   56-9  health facility.
  56-10        (b)  The rules must provide that before a private mental
  56-11  hospital may transfer or refer a patient, the hospital must:
  56-12              (1)  provide to the receiving inpatient mental health
  56-13  facility notice of the hospital's intent to transfer a patient;
  56-14              (2)  provide to the receiving inpatient mental health
  56-15  facility information relating to the patient's diagnosis and
  56-16  condition; and
  56-17              (3)  obtain verification from the receiving inpatient
  56-18  mental health facility that the facility has the space, personnel,
  56-19  and services necessary to provide appropriate care to the patient.
  56-20        (c)  The rules must also require that the private mental
  56-21  hospital send the patient's appropriate records, or a copy of the
  56-22  records, if any, to the receiving inpatient mental health facility.
  56-23        SECTION 4.08.  Subchapter B, Chapter 462, Health and Safety
  56-24  Code, is amended by adding Section 462.025 to read as follows:
  56-25        Sec. 462.025.  INTAKE, ASSESSMENT, AND ADMISSION.  (a)  The
  56-26  commission shall adopt rules governing the voluntary admission of a
  56-27  patient to a treatment facility, including rules governing the
   57-1  intake and assessment procedures of the admission process.
   57-2        (b)  The rules governing the intake process shall establish
   57-3  minimum standards for:
   57-4              (1)  reviewing a prospective patient's finances and
   57-5  insurance benefits;
   57-6              (2)  explaining to a prospective patient the patient's
   57-7  rights; and
   57-8              (3)  explaining to a prospective patient the facility's
   57-9  services and treatment process.
  57-10        (c)  The assessment provided for by the rules may be
  57-11  conducted only by a professional who meets the qualifications
  57-12  prescribed by commission rules.
  57-13        (d)  The rules governing the assessment process shall
  57-14  prescribe:
  57-15              (1)  the types of professionals who may conduct an
  57-16  assessment;
  57-17              (2)  the minimum credentials each type of professional
  57-18  must have to conduct an assessment; and
  57-19              (3)  the type of assessment that professional may
  57-20  conduct.
  57-21        (e)  In accordance with commission rule, a treatment facility
  57-22  shall provide annually a minimum of eight hours of inservice
  57-23  training regarding intake and assessment for persons who will be
  57-24  conducting an intake or assessment for the facility.  A person may
  57-25  not conduct intake or assessments without having completed the
  57-26  initial and applicable annual inservice training.
  57-27        (f)  A prospective voluntary patient may not be formally
   58-1  accepted for chemical dependency treatment in a treatment facility
   58-2  unless the facility's administrator or a person designated by the
   58-3  administrator has agreed to accept the prospective patient and has
   58-4  signed a statement to that effect.
   58-5        (g)  An assessment conducted as required by rules adopted
   58-6  under this section does not satisfy a statutory or regulatory
   58-7  requirement for a personal evaluation of a patient or a prospective
   58-8  patient by a qualified professional before admission.
   58-9        (h)  In this section:
  58-10              (1)  "Admission" means the formal acceptance of a
  58-11  prospective patient to a treatment facility.
  58-12              (2)  "Assessment" means the administrative process a
  58-13  treatment facility uses to gather information from a prospective
  58-14  patient, including a medical history and the problem for which the
  58-15  patient is seeking treatment, to determine whether a prospective
  58-16  patient should be admitted.
  58-17              (3)  "Intake" means the administrative process for
  58-18  gathering information about a prospective patient and giving a
  58-19  prospective patient information about the treatment facility and
  58-20  the facility's treatment and services.
  58-21        SECTION 4.09.  This article takes effect immediately.
  58-22                               ARTICLE 5
  58-23        SECTION 5.01.  Subtitle C, Title 7, Health and Safety Code,
  58-24  is amended by adding Chapter 578 to read as follows:
  58-25          CHAPTER 578.  ELECTROCONVULSIVE AND OTHER THERAPIES
  58-26        Sec. 578.001.  APPLICATION.  This chapter applies to the use
  58-27  of electroconvulsive therapy by any person, including a private
   59-1  physician who uses the therapy on an outpatient basis.
   59-2        Sec. 578.002.  USE OF ELECTROCONVULSIVE THERAPY.
   59-3  (a)  Electroconvulsive therapy may not be used on a person who is
   59-4  younger than 16 years of age.
   59-5        (b)  Unless the person consents to the use of the therapy in
   59-6  accordance with Section 578.003, electroconvulsive therapy may not
   59-7  be used on:
   59-8              (1)  a person who is 16 years of age or older and who
   59-9  is voluntarily receiving mental health services; or
  59-10              (2)  an involuntary patient who is 16 years of age or
  59-11  older and who has not been adjudicated by an appropriate court of
  59-12  law as incompetent to manage the patient's personal affairs.
  59-13        (c)  Electroconvulsive therapy may not be used on an
  59-14  involuntary patient who is 16 years of age or older and who has
  59-15  been adjudicated incompetent to manage the patient's personal
  59-16  affairs unless the patient's guardian of the person consents to the
  59-17  treatment in accordance with Section 578.003.  The decision of the
  59-18  guardian must be based on knowledge of what the patient would
  59-19  desire, if known.
  59-20        Sec. 578.003.  CONSENT TO THERAPY.  (a)  The board by rule
  59-21  shall adopt a standard written consent form to be used when
  59-22  electroconvulsive therapy is considered.  The board by rule shall
  59-23  also prescribe the information that must be contained in the
  59-24  written supplement required under Subsection (c).  In addition to
  59-25  the information required under this section, the form must include
  59-26  the information required by the Texas Medical Disclosure Panel for
  59-27  electroconvulsive therapy.  In developing the form, the board shall
   60-1  consider recommendations of the panel.  Use of the consent form
   60-2  prescribed by the board in the manner prescribed by this section
   60-3  creates a rebuttable presumption that the disclosure requirements
   60-4  of Sections 6.05 and 6.06, Medical Liability and Insurance
   60-5  Improvement Act of Texas (Article 4590i, Vernon's Texas Civil
   60-6  Statutes), have been met.
   60-7        (b)  The written consent form must clearly and explicitly
   60-8  state:
   60-9              (1)  the nature and purpose of the procedure;
  60-10              (2)  the nature, degree, duration, and probability of
  60-11  the side effects and significant risks of the treatment commonly
  60-12  known by the medical profession, especially noting the possible
  60-13  degree and duration of memory loss, the possibility of permanent
  60-14  irrevocable memory loss, and the remote possibility of death;
  60-15              (3)  that there is a division of opinion as to the
  60-16  efficacy of the procedure; and
  60-17              (4)  the probable degree and duration of improvement or
  60-18  remission expected with or without the procedure.
  60-19        (c)  Before a patient receives each electroconvulsive
  60-20  treatment, the hospital, facility, or physician administering the
  60-21  therapy shall ensure that:
  60-22              (1)  the patient and the patient's guardian of the
  60-23  person, if any, receives a written copy of the consent form that is
  60-24  in the person's primary language, if possible;
  60-25              (2)  the patient and the patient's guardian of the
  60-26  person, if any, receives a written supplement that contains related
  60-27  information that pertains to the particular patient being treated;
   61-1              (3)  the contents of the consent form and the written
   61-2  supplement are explained to the patient and the patient's guardian
   61-3  of the person, if any:
   61-4                    (A)  orally, in simple, nontechnical terms in the
   61-5  person's primary language, if possible; or
   61-6                    (B)  through the use of a means reasonably
   61-7  calculated to communicate with a hearing impaired or visually
   61-8  impaired person, if applicable;
   61-9              (4)  the patient or the patient's guardian of the
  61-10  person, as appropriate, signs a copy of the consent form stating
  61-11  that the person has read the consent form and the written
  61-12  supplement and understands the information included in the
  61-13  documents; and
  61-14              (5)  the signed copy is made a part of the patient's
  61-15  clinical record.
  61-16        (d)  Consent given under this section is not valid unless the
  61-17  person giving the consent understands the information presented and
  61-18  consents voluntarily and without coercion or undue influence.
  61-19        Sec. 578.004.  WITHDRAWAL OF CONSENT.  (a)  A patient or
  61-20  guardian who consents to the administration of electroconvulsive
  61-21  therapy may revoke the consent for any reason and at any time.
  61-22        (b)  Revocation of consent is effective immediately.
  61-23        Sec. 578.005.  PHYSICIAN REQUIREMENT.  (a)  Only a physician
  61-24  may administer electroconvulsive therapy.
  61-25        (b)  A physician may not delegate the act of administering
  61-26  the therapy.  A nonphysician who administers electroconvulsive
  61-27  therapy is considered to be practicing medicine in violation of the
   62-1  Medical Practice Act (Article 4495b, Vernon's Texas Civil
   62-2  Statutes).
   62-3        Sec. 578.006.  REGISTRATION OF EQUIPMENT.  (a)  A person may
   62-4  not administer electroconvulsive therapy unless the equipment used
   62-5  to administer the therapy is registered with the department.
   62-6        (b)  A mental hospital or facility administering
   62-7  electroconvulsive therapy or a private physician administering the
   62-8  therapy on an outpatient basis must file an application for
   62-9  registration under this section.  The applicant must submit the
  62-10  application to the department on a form prescribed by the
  62-11  department.
  62-12        (c)  The application must be accompanied by a nonrefundable
  62-13  application fee.  The board shall set the fee in a reasonable
  62-14  amount not to exceed the cost to the department to administer this
  62-15  section.
  62-16        (d)  The application must contain:
  62-17              (1)  the model, manufacturer, and age of each piece of
  62-18  equipment used to administer the therapy; and
  62-19              (2)  any other information required by the department.
  62-20        (e)  The department may conduct an investigation as
  62-21  considered necessary after receiving the proper application and the
  62-22  required fee.
  62-23        (f)  The board by rule may prohibit the registration and use
  62-24  of equipment of a type, model, or age the board determines is
  62-25  dangerous.
  62-26        (g)  The department may deny, suspend, or revoke a
  62-27  registration if the department determines that the equipment is
   63-1  dangerous.  The denial, suspension, or revocation of a registration
   63-2  is a contested case under the Administrative Procedure and Texas
   63-3  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes).
   63-4        Sec. 578.007.  REPORTS.  (a)  A mental hospital or facility
   63-5  administering electroconvulsive therapy, psychosurgery, pre-frontal
   63-6  sonic sound treatment, or any other convulsive or coma-producing
   63-7  therapy administered to treat mental illness or a physician
   63-8  administering the therapy on an outpatient basis shall submit to
   63-9  the department quarterly reports relating to the administration of
  63-10  the therapy in the hospital or facility or by the physician.
  63-11        (b)  A report must state for each quarter:
  63-12              (1)  the number of patients who received the therapy,
  63-13  including:
  63-14                    (A)  the number of persons voluntarily receiving
  63-15  mental health services who consented to the therapy;
  63-16                    (B)  the number of involuntary patients who
  63-17  consented to the therapy; and
  63-18                    (C)  the number of involuntary patients for whom
  63-19  a guardian of the person consented to the therapy;
  63-20              (2)  the age, sex, and race of the persons receiving
  63-21  the therapy;
  63-22              (3)  the source of the treatment payment;
  63-23              (4)  the average number of nonelectroconvulsive
  63-24  treatments;
  63-25              (5)  the average number of electroconvulsive treatments
  63-26  administered for each complete series of treatments, but not
  63-27  including maintenance treatments;
   64-1              (6)  the average number of maintenance
   64-2  electroconvulsive treatments administered per month;
   64-3              (7)  the number of fractures, reported memory losses,
   64-4  incidents of apnea, and cardiac arrests without death;
   64-5              (8)  autopsy findings if death followed within 14 days
   64-6  after the date of the administration of the therapy; and
   64-7              (9)  any other information required by the department.
   64-8        Sec. 578.008.  USE OF INFORMATION; REPORT.  (a)  The
   64-9  department shall use the information received under Sections
  64-10  578.006 and 578.007 to analyze, audit, and monitor the use of
  64-11  electroconvulsive therapy, psychosurgery, pre-frontal sonic sound
  64-12  treatment, or any other convulsive or coma-producing therapy
  64-13  administered to treat mental illness.
  64-14        (b)  The department shall file annually with the governor and
  64-15  the presiding officer of each house of the legislature a written
  64-16  report summarizing by facility the information received under
  64-17  Sections 578.006 and 578.007.  If the therapy is administered by a
  64-18  private physician on an outpatient basis, the report must include
  64-19  that information but may not identify the physician.  The
  64-20  department may not directly or indirectly identify in a report
  64-21  issued under this section a patient who received the therapy.
  64-22        SECTION 5.02.  This article takes effect September 1, 1993,
  64-23  except:
  64-24              (1)  Subsection (a), Section 578.002 and Section
  64-25  578.005, Health and Safety Code, as added by this article, take
  64-26  effect immediately;
  64-27              (2)  equipment in use to administer electroconvulsive
   65-1  therapy on the effective date of Section 578.006, Health and Safety
   65-2  Code, as added by this article, is not required to be registered
   65-3  under that section before January 1, 1994;
   65-4              (3)  a person administering electroconvulsive therapy
   65-5  shall file an initial report as prescribed by Section 578.007,
   65-6  Health and Safety Code, as added by this article, not later than
   65-7  September 15, 1993, for the period beginning June 1, 1993, and
   65-8  ending August 31, 1993; and
   65-9              (4)  the Texas Department of Mental Health and Mental
  65-10  Retardation shall file the initial report required under Subsection
  65-11  (b), Section 578.008, Health and Safety Code, as added by this
  65-12  article, not later than February 15, 1994, which report must
  65-13  summarize the information the department receives on or before
  65-14  January 1, 1994.
  65-15                               ARTICLE 6
  65-16        SECTION 6.01.  Subdivision (3), Section 311.031, Health and
  65-17  Safety Code, is amended to read as follows:
  65-18              (3)  "Hospital" means:
  65-19                    (A)  a general or special hospital licensed under
  65-20  Chapter 241;
  65-21                    (B)  a private mental hospital licensed under
  65-22  Chapter 577; and
  65-23                    (C)  a treatment facility licensed under Chapter
  65-24  464 <(Texas Hospital Licensing Law)>.
  65-25        SECTION 6.02.  Subchapter C, Chapter 311, Health and Safety
  65-26  Code, is amended by adding Section 311.0335 to read as follows:
  65-27        Sec. 311.0335.  MENTAL HEALTH AND CHEMICAL DEPENDENCY DATA.
   66-1  (a)  A hospital that provides mental health or chemical dependency
   66-2  services shall submit to the department financial and utilization
   66-3  data relating to the mental health and chemical dependency services
   66-4  provided by the hospital, including data for inpatient and
   66-5  outpatient services relating to:
   66-6              (1)  patient demographics, including race, ethnicity,
   66-7  age, gender, and county of residence;
   66-8              (2)  admissions;
   66-9              (3)  discharges, including length of inpatient
  66-10  treatment;
  66-11              (4)  specific diagnoses and procedures according to
  66-12  criteria prescribed by the Diagnostic and Statistical Manual of
  66-13  Mental Disorders, 3rd Edition, Revised, or a later version
  66-14  prescribed by the department;
  66-15              (5)  total charges and the components of the charges;
  66-16              (6)  payor sources; and
  66-17              (7)  use of mechanical restraints.
  66-18        (b)  The data must be submitted in the form and at the time
  66-19  established by the department.
  66-20        SECTION 6.03.  Section 311.035, Health and Safety Code, is
  66-21  amended by adding Subsection (c) to read as follows:
  66-22        (c)  The department shall enter into an interagency agreement
  66-23  with the Texas Department of Mental Health and Mental Retardation,
  66-24  Texas Commission on Alcohol and Drug Abuse, and Texas Department of
  66-25  Insurance relating to the mental health and chemical dependency
  66-26  hospital discharge data collected under Section 311.0335.  The
  66-27  agreement shall address the collection, analysis, and sharing of
   67-1  the data by the agencies.
   67-2        SECTION 6.04.  Subsection (b), Section 311.038, Health and
   67-3  Safety Code, is amended to read as follows:
   67-4        (b)  The advisory committee must include representatives
   67-5  from:
   67-6              (1)  the hospital industry, including private mental
   67-7  hospitals and chemical dependency treatment facilities;
   67-8              (2)  private business;
   67-9              (3)  the insurance industry;
  67-10              (4)  state agencies, such as the Texas Department of
  67-11  Human Services, <and> Employees Retirement System of Texas, Texas
  67-12  Department of Mental Health and Mental Retardation, Texas
  67-13  Commission on Alcohol and Drug Abuse, and Texas Department of
  67-14  Insurance;
  67-15              (5)  consumer organizations; and
  67-16              (6)  the Statewide Health Coordinating Council.
  67-17                               ARTICLE 7
  67-18        SECTION 7.01.  Section 11.52, Education Code, is amended by
  67-19  adding Subsections (p) and (q) to read as follows:
  67-20        (p)  The commissioner of education shall adopt rules
  67-21  governing the relationship between a school district and an outside
  67-22  counselor to whom a student may be referred for care or treatment
  67-23  of an emotional, psychological, or chemical dependency condition,
  67-24  including rules that:
  67-25              (1)  require the school district and the outside
  67-26  counselor to disclose to the student and the parent, managing
  67-27  conservator, or guardian of the student the relationship between
   68-1  the district and the outside counselor to whom the student is
   68-2  referred for care or treatment;
   68-3              (2)  require the school to inform the student and the
   68-4  parent, managing conservator, or guardian of the student, as
   68-5  appropriate, of any public and private alternative sources of care
   68-6  or treatment reasonably available in the area;
   68-7              (3)  require the approval of appropriate school
   68-8  district personnel before the counselor refers a student for care
   68-9  or treatment or suggests to or advises a student that a referral is
  68-10  warranted; and
  68-11              (4)  specifically prohibit the disclosure of student
  68-12  records if the disclosure violates state or federal law.
  68-13        (q)  The commissioner of education shall adopt rules that
  68-14  specify procedures to be followed in an emergency or crisis
  68-15  situation in which a district may request counseling services from
  68-16  a private treatment facility.
  68-17                               ARTICLE 8
  68-18        SECTION 8.01.  Except as otherwise provided by this Act, this
  68-19  Act takes effect September 1, 1993.
  68-20        SECTION 8.02.  (a)  The changes in law made by this Act apply
  68-21  only to an offense committed or a violation that occurs on or after
  68-22  the effective date of this Act.  For the purposes of this Act, an
  68-23  offense is committed or a violation occurs before the effective
  68-24  date of this Act if any element of the offense or violation occurs
  68-25  before that date.
  68-26        (b)  An offense committed or violation that occurs before the
  68-27  effective date of this Act is covered by the law in effect when the
   69-1  offense was committed or the violation occurred, and the former law
   69-2  is continued in effect for this purpose.
   69-3        SECTION 8.03.  The importance of this legislation and the
   69-4  crowded condition of the calendars in both houses create an
   69-5  emergency and an imperative public necessity that the
   69-6  constitutional rule requiring bills to be read on three several
   69-7  days in each house be suspended, and this rule is hereby suspended,
   69-8  and that this Act take effect and be in force according to its
   69-9  terms, and it is so enacted.