1-1  By:  Moncrief, Harris of Tarrant, Zaffirini            S.B. No. 205
    1-2        (In the Senate - Filed January 29, 1993; February 1, 1993,
    1-3  read first time and referred to Committee on Health and Human
    1-4  Services; March 19, 1993, reported adversely, with favorable
    1-5  Committee Substitute by the following vote:  Yeas 8, Nays 0;
    1-6  March 19, 1993, sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Zaffirini          x                               
   1-10        Ellis              x                               
   1-11        Madla                                         x    
   1-12        Moncrief           x                               
   1-13        Nelson             x                               
   1-14        Patterson          x                               
   1-15        Shelley            x                               
   1-16        Truan              x                               
   1-17        Wentworth          x                               
   1-18  COMMITTEE SUBSTITUTE FOR S.B. No. 205                 By:  Moncrief
   1-19                         A BILL TO BE ENTITLED
   1-20                                AN ACT
   1-21  relating to the regulation of the provision of services to persons
   1-22  with certain disabilities or in need of counseling in a crisis or
   1-23  an emergency; creating offenses and providing civil,
   1-24  administrative, and criminal penalties.
   1-25        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-26                               ARTICLE 1
   1-27        SECTION 1.01.  Title 4, Health and Safety Code, is amended by
   1-28  adding Subtitle G to read as follows:
   1-29       SUBTITLE G.  PROVISION OF SERVICES IN CERTAIN FACILITIES
   1-30    CHAPTER 321.  PROVISION OF MENTAL HEALTH, CHEMICAL DEPENDENCY,
   1-31                      AND REHABILITATION SERVICES
   1-32        Sec. 321.001.  DEFINITIONS.  In this chapter:
   1-33              (1)  "Comprehensive medical rehabilitation" means the
   1-34  provision of rehabilitation services that are designed to improve
   1-35  or minimize a person's physical or cognitive disabilities, maximize
   1-36  a person's functional ability, or restore a person's lost
   1-37  functional capacity through close coordination of services,
   1-38  communication, interaction, and integration among several
   1-39  professions that share the responsibility to achieve team treatment
   1-40  goals for the person.
   1-41              (2)  "Hospital" has the meaning assigned by Section
   1-42  241.003.
   1-43              (3)  "License" means a state agency permit,
   1-44  certificate, approval, registration, or other form of permission
   1-45  required by state law.
   1-46              (4)  "Mental health facility" has the meaning assigned
   1-47  by Section 571.003.
   1-48              (5)  "State health care regulatory agency" means a
   1-49  state agency that licenses a health care professional.
   1-50              (6)  "Treatment facility" has the meaning assigned by
   1-51  Section 464.001.
   1-52        Sec. 321.002.  BILL OF RIGHTS.  (a)  The Texas Board of
   1-53  Mental Health and Mental Retardation, Texas Board of Health, and
   1-54  Texas Commission on Alcohol and Drug Abuse by rule shall each adopt
   1-55  a "patient's bill of rights" that includes the applicable rights
   1-56  included in this chapter, Subtitle C of Title 7, Chapters 241, 462,
   1-57  464, and 466, and any other provisions the agencies consider
   1-58  necessary to protect the health, safety, and rights of a patient
   1-59  receiving voluntary or involuntary mental health, chemical
   1-60  dependency, or comprehensive medical rehabilitation services in an
   1-61  inpatient facility.  In addition, each agency shall adopt rules
   1-62  that:
   1-63              (1)  provide standards to prevent the admission of a
   1-64  minor to a facility for treatment of a condition that is not
   1-65  generally recognized as responsive to treatment in an inpatient
   1-66  treatment setting; and
   1-67              (2)  prescribe the procedure for presenting the
   1-68  applicable bill of rights and obtaining each necessary signature
    2-1  if:
    2-2                    (A)  the patient cannot comprehend the
    2-3  information because of illness, age, or other factors; or
    2-4                    (B)  an emergency exists that precludes immediate
    2-5  presentation of the information.
    2-6        (b)  The Board of Protective and Regulatory Services by rule
    2-7  shall adopt a "children's bill of rights" for a minor receiving
    2-8  treatment in a child-care facility for an emotional, mental health,
    2-9  or chemical dependency problem.
   2-10        (c)  A "bill of rights" adopted under this section must
   2-11  specifically address the rights of minors and provide that a minor
   2-12  is entitled to:
   2-13              (1)  appropriate treatment in the least restrictive
   2-14  setting available;
   2-15              (2)  not receive unnecessary or excessive medication;
   2-16              (3)  an individualized treatment plan and to
   2-17  participate in the development of the plan; and
   2-18              (4)  a humane treatment environment that provides
   2-19  reasonable protection from harm and appropriate privacy for
   2-20  personal needs.
   2-21        (d)  Rules adopted under this section shall provide for:
   2-22              (1)  treatment of minors by persons who have
   2-23  specialized education and training in the emotional, mental health,
   2-24  and chemical dependency problems and treatment of minors;
   2-25              (2)  separation of minor patients from adult patients;
   2-26  and
   2-27              (3)  regular communication between a minor patient and
   2-28  the patient's family, subject only to a restriction in accordance
   2-29  with Section 576.006.
   2-30        (e)  The Texas Board of Health, Texas Board of Mental Health
   2-31  and Mental Retardation, Texas Commission on Alcohol and Drug Abuse,
   2-32  and Board of Protective and Regulatory Services shall consult each
   2-33  other for assistance in adopting rules under this section.
   2-34        (f)  Before a facility may admit a patient for inpatient
   2-35  mental health, chemical dependency, or comprehensive medical
   2-36  rehabilitation services, or before a child-care facility may accept
   2-37  a minor for treatment, the facility shall provide to the person
   2-38  and, if appropriate, to the person's parent, managing conservator,
   2-39  or guardian, a written copy of the applicable "bill of rights"
   2-40  adopted under this section.  The facility shall provide the written
   2-41  copies in the person's primary language, if possible.  In addition,
   2-42  the facility shall ensure that, within 24 hours after the person is
   2-43  admitted to the facility, the rights specified in the written copy
   2-44  are explained to the person and, if appropriate, to the person's
   2-45  parent, managing conservator, or guardian:
   2-46              (1)  orally, in simple, nontechnical terms in the
   2-47  person's primary language, if possible; or
   2-48              (2)  through a means reasonably calculated to
   2-49  communicate with a person who has an impairment of vision or
   2-50  hearing, if applicable.
   2-51        (g)  The facility shall ensure that:
   2-52              (1)  each patient admitted for inpatient mental health,
   2-53  chemical dependency, or comprehensive rehabilitation services and
   2-54  each minor admitted for treatment in a child-care facility and, if
   2-55  appropriate, the person's parent, managing conservator, or guardian
   2-56  signs a copy of the document stating that the person has read the
   2-57  document and understands the rights specified in the document; and
   2-58              (2)  the signed copy is made a part of the person's
   2-59  clinical record.
   2-60        (h)  A facility shall prominently and conspicuously post a
   2-61  copy of the "bill of rights" for display in a public area of the
   2-62  facility that is readily  available to patients, residents,
   2-63  employees, and visitors.  The "bill of rights" must be in English
   2-64  and in a second language.
   2-65        Sec. 321.003.  SUIT FOR HARM RESULTING FROM VIOLATION.
   2-66  (a)  A treatment facility or mental health facility that violates a
   2-67  provision of, or a rule adopted under, this chapter, Subtitle C of
   2-68  Title 7, or Chapter 241, 462, 464, or 466 is liable to a person
   2-69  receiving care or treatment in or from the facility who is harmed
   2-70  as a result of the violation.
    3-1        (b)  A person who has been harmed by a violation may sue for
    3-2  injunctive relief, damages, or both.
    3-3        (c)  A court shall award to a plaintiff who prevails in a
    3-4  suit under this section not less than the greater of $1,000 or
    3-5  actual damages, including damages for mental anguish even if an
    3-6  injury other than mental anguish is not shown.
    3-7        (d)  In addition to an award under Subsection (c), a court
    3-8  may award to a plaintiff who prevails in a suit under this section:
    3-9              (1)  exemplary damages;
   3-10              (2)  court costs; and
   3-11              (3)  reasonable attorney fees.
   3-12        (e)  A suit under this section may be brought in the district
   3-13  court of the county in which:
   3-14              (1)  the plaintiff resides;
   3-15              (2)  the plaintiff received care or treatment; or
   3-16              (3)  the defendant conducts business.
   3-17        (f)  A person harmed by a violation must bring suit not later
   3-18  than the second anniversary of the date on which the person's
   3-19  injury is discovered, except that a minor whose injury is
   3-20  discovered before the minor's 18th birthday may bring suit at any
   3-21  time before the minor's 20th birthday.
   3-22        (g)  This section does not supersede or abrogate any other
   3-23  remedy existing in law.
   3-24        Sec. 321.004.  PENALTIES.  In addition to the penalties
   3-25  prescribed by this chapter, a violation of a provision of this
   3-26  chapter by an individual or facility that is licensed by a state
   3-27  health care regulatory agency is subject to the same consequence as
   3-28  a violation of the licensing law applicable to the individual or
   3-29  facility or of a rule adopted under that licensing law.
   3-30        SECTION 1.02.  The changes in law made by this article apply
   3-31  only to a cause of action that accrues on or after the effective
   3-32  date of this article.  A cause of action that accrues before the
   3-33  effective date of this article is governed by the law in effect on
   3-34  the date the cause of action accrues, and that law is continued in
   3-35  effect for this purpose.
   3-36                               ARTICLE 2
   3-37        SECTION 2.01.  Subtitle H, Title 2, Health and Safety Code,
   3-38  is amended by adding Chapter 164 to read as follows:
   3-39      CHAPTER 164.  TREATMENT FACILITIES MARKETING AND ADMISSION
   3-40                               PRACTICES
   3-41        Sec. 164.001.  SHORT TITLE.  This chapter may be cited as the
   3-42  Treatment Facilities Marketing Practices Act.
   3-43        Sec. 164.002.  LEGISLATIVE PURPOSE.  The purpose of this
   3-44  chapter is to safeguard the public against fraud, deceit, and
   3-45  misleading marketing practices and to foster and encourage
   3-46  competition and fair dealing by mental health facilities and
   3-47  chemical dependency treatment facilities by prohibiting or
   3-48  restricting practices by which the public has been injured in
   3-49  connection with the marketing and advertising of mental health
   3-50  services and the admission of patients.  Nothing in this chapter
   3-51  should be construed to prohibit a mental health facility from
   3-52  advertising its services in a general way or promoting its
   3-53  specialized services.  However, the public should be able to
   3-54  distinguish between the marketing activities of the facility and
   3-55  its clinical functions.
   3-56        Sec. 164.003.  DEFINITIONS.  In this chapter:
   3-57              (1)  "Advertising" or "advertise" means a solicitation
   3-58  or inducement, through print or electronic media, including radio,
   3-59  television, or direct mail, to purchase the services provided by a
   3-60  treatment facility.
   3-61              (2)  "Chemical dependency" has the meaning assigned by
   3-62  Section 462.001.
   3-63              (3)  "Chemical dependency facility" means a treatment
   3-64  facility as that term is defined by Section 462.001.
   3-65              (4)  "Intervention and assessment service" means a
   3-66  service that offers assessment, counseling, evaluation,
   3-67  intervention, or referral services or makes treatment
   3-68  recommendations to an individual with respect to mental illness or
   3-69  chemical dependency.
   3-70              (5)  "Mental health facility" means:
    4-1                    (A)  a "mental health facility" as defined by
    4-2  Section 571.003;
    4-3                    (B)  a residential treatment facility, other than
    4-4  a mental health facility, in which persons are treated for
    4-5  emotional problems or disorders in a 24-hour supervised living
    4-6  environment; and
    4-7                    (C)  an adult day-care facility or adult day
    4-8  health care facility as defined by Section 103.003, Human Resources
    4-9  Code.
   4-10              (6)  "Mental health professional" means a:
   4-11                    (A)  "physician" as defined by Section 571.003;
   4-12                    (B)  "licensed professional counselor" as defined
   4-13  by Section 2, Licensed Professional Counselor Act (Article 4512g,
   4-14  Vernon's Texas Civil Statutes);
   4-15                    (C)  "chemical dependency counselor" as defined
   4-16  by Section 1, Chapter 635, Acts of the 72nd Legislature, Regular
   4-17  Session, 1991 (Article 4512o, Vernon's Texas Civil Statutes);
   4-18                    (D)  "psychologist" offering "psychological
   4-19  services" as defined by Section 2, Psychologists' Certification and
   4-20  Licensing Act (Article 4512c, Vernon's Texas Civil Statutes);
   4-21                    (E)  "registered nurse" licensed under Chapter 7,
   4-22  Title 71, Revised Statutes;
   4-23                    (F)  "licensed vocational nurse" as defined by
   4-24  Section 1, Article 4528c, Revised Statutes;
   4-25                    (G)  "licensed marriage and family therapist" as
   4-26  defined by Section 2, Licensed Marriage and Family Therapist Act
   4-27  (Article 4512c-1, Vernon's Texas Civil Statutes); and
   4-28                    (H)  "social worker" as defined by Section
   4-29  50.001(a), Human Resources Code.
   4-30              (7)  "Mental health services" has the meaning assigned
   4-31  by Section 531.002.
   4-32              (8)  "Mental illness" has the meaning assigned by
   4-33  Section 571.003.
   4-34              (9)  "Referral source" means a person who is in a
   4-35  position to refer or who refers a person to a treatment facility.
   4-36  Referral source does not include a physician, an insurer, a health
   4-37  maintenance organization (HMO), a preferred provider arrangement
   4-38  (PPA), or other third party payor or discount provider organization
   4-39  (DPO) where the insurer, HMO, PPA, third party payor, or DPO pays
   4-40  in whole or in part for the treatment of mental illness or chemical
   4-41  dependency.
   4-42              (10)  "Treatment facility" means a chemical dependency
   4-43  facility and a mental health facility.
   4-44        Sec. 164.004.  EXEMPTIONS.  This chapter does not apply to:
   4-45              (1)  a treatment facility operated by the Texas
   4-46  Department of Mental Health and Mental Retardation, a federal
   4-47  agency, or a political subdivision;
   4-48              (2)  a community center established under Subchapter A,
   4-49  Chapter 534, or a facility operated by a community center; or
   4-50              (3)  a facility owned and operated by a nonprofit or
   4-51  not-for-profit organization offering counseling concerning family
   4-52  violence, help for runaway children, or rape.
   4-53        Sec. 164.005.  CONDITIONING EMPLOYEE OR AGENT RELATIONSHIPS
   4-54  ON PATIENT REVENUE.  A treatment facility may not permit or provide
   4-55  compensation or anything of value to its employees or agents,
   4-56  condition employment or continued employment of its employees or
   4-57  agents, set its employee or agent performance standards, or
   4-58  condition its employee or agent evaluations, based on:
   4-59              (1)  the number of patient admissions resulting from an
   4-60  employee's or agent's efforts;
   4-61              (2)  the number or frequency of telephone calls or
   4-62  other contacts with referral sources or patients if the purpose of
   4-63  the telephone calls or contacts is to solicit patients for the
   4-64  treatment facility; or
   4-65              (3)  the existence of or volume of determinations made
   4-66  respecting the length of patient stay.
   4-67        Sec. 164.006.  SOLICITING AND CONTRACTING WITH CERTAIN
   4-68  REFERRAL SOURCES.  A treatment facility or a person employed or
   4-69  under contract with a treatment facility, if acting on behalf of
   4-70  the treatment facility, may not:
    5-1              (1)  contact a referral source or potential client for
    5-2  the purpose of soliciting, directly or indirectly, a referral of a
    5-3  patient to the treatment facility without disclosing its soliciting
    5-4  agent's, employee's, or contractor's affiliation with the treatment
    5-5  facility;
    5-6              (2)  offer to provide or provide mental health or
    5-7  chemical dependency services to a public or private school in this
    5-8  state, on a part-time or full-time basis, the services of any of
    5-9  its employees or agents who make, or are in a position to make, a
   5-10  referral, if the services are provided on an individual basis to
   5-11  individual students or their families.  Nothing herein prohibits a
   5-12  treatment facility from:
   5-13                    (A)  offering or providing educational programs
   5-14  in group settings to public schools in this state if the
   5-15  affiliation between the educational program and the treatment
   5-16  facility is disclosed; or
   5-17                    (B)  providing counseling services to a public
   5-18  school in this state in an emergency or crisis situation if the
   5-19  services are provided in response to a specific request by a
   5-20  school; provided that, under no circumstances may a student be
   5-21  referred to the treatment facility offering the services;
   5-22              (3)  provide to an entity of state or local government,
   5-23  on a part-time or full-time basis, the mental health or chemical
   5-24  dependency services of any of its employees, agents, or contractors
   5-25  who make or are in a position to make referrals unless:
   5-26                    (A)  the treatment facility discloses to the
   5-27  governing authority of the entity:
   5-28                          (i)  the employee's, agent's, or
   5-29  contractor's relationship to the facility; and
   5-30                          (ii)  the fact that the employee, agent, or
   5-31  contractor might make a referral, if permitted, to the facility;
   5-32  and
   5-33                    (B)  the employee, agent, or contractor makes a
   5-34  referral only if:
   5-35                          (i)  the treatment facility obtains the
   5-36  governing authority's authorization in writing for the employee,
   5-37  agent, or contractor to make the referrals; and
   5-38                          (ii)  the employee, agent, or contractor
   5-39  discloses to the prospective patient the employee's, agent's, or
   5-40  contractor's relationship to the facility at initial contact; or
   5-41              (4)  in relation to intervention and assessment
   5-42  services, contract with, offer to remunerate, or remunerate a
   5-43  person who operates an intervention and assessment service that
   5-44  makes referrals to a treatment facility for inpatient treatment of
   5-45  mental illness or chemical dependency unless the intervention and
   5-46  assessment service is:
   5-47                    (A)  operated by a community mental health and
   5-48  mental retardation center funded by the Texas Department of Mental
   5-49  Health and Mental Retardation;
   5-50                    (B)  operated by a county or regional medical
   5-51  society;
   5-52                    (C)  a qualified mental health referral service
   5-53  as defined by Section 164.007; or
   5-54                    (D)  owned and operated by a nonprofit or
   5-55  not-for-profit organization offering counseling concerning family
   5-56  violence, help for runaway children, or rape.
   5-57        Sec. 164.007.  QUALIFIED MENTAL HEALTH REFERRAL SERVICE:
   5-58  DEFINITION AND STANDARDS.  (a)  A qualified mental health referral
   5-59  service means a service that conforms to all of the following
   5-60  standards:
   5-61              (1)  the referral service does not exclude as a
   5-62  participant in the referral service an individual who meets the
   5-63  qualifications for participation and qualifications for
   5-64  participation cannot be based in whole or in part on an
   5-65  individual's or entity's affiliation or nonaffiliation with other
   5-66  participants in the referral service;
   5-67              (2)  a payment the participant makes to the referral
   5-68  service is assessed equally against and collected equally from all
   5-69  participants, and is only based on the cost of operating the
   5-70  referral service and not on the volume or value of any referrals to
    6-1  or business otherwise generated by the participants of the referral
    6-2  service;
    6-3              (3)  the referral service imposes no requirements on
    6-4  the manner in which the participant provides services to a referred
    6-5  person, except that the referral service may require that the
    6-6  participant charge the person referred at the same rate as it
    6-7  charges other persons not referred by the referral service, or that
    6-8  these services be furnished free of charge or at a reduced charge;
    6-9              (4)  a referral made to a mental health professional or
   6-10  chemical dependency treatment facility is made only in accordance
   6-11  with Subdivision (1) and the referral service does not make
   6-12  referrals to mental health facilities other than facilities
   6-13  maintained or operated by the Texas Department of Mental Health and
   6-14  Mental Retardation, community mental health and mental retardation
   6-15  centers, or other political subdivisions, provided that a physician
   6-16  may make a referral directly to any mental health facility;
   6-17              (5)  the referral service is staffed by appropriately
   6-18  licensed and trained mental health professionals and a person who
   6-19  makes assessments for the need for treatment of mental illness or
   6-20  chemical dependency is a mental health professional as defined by
   6-21  this chapter;
   6-22              (6)  in response to each inquiry or after personal
   6-23  assessment, the referral service makes referrals, on a clinically
   6-24  appropriate, rotational basis, to at least three mental health
   6-25  professionals or chemical dependency treatment facilities whose
   6-26  practice addresses or facilities are located in the county of
   6-27  residence of the person seeking the referral or assessment, but if
   6-28  there are not three providers in the inquirer's county of
   6-29  residence, the referral service may include additional providers
   6-30  from other counties nearest the inquirer's county of residence;
   6-31              (7)  no information that identifies the person seeking
   6-32  a referral, such as name, address, or telephone number, is used,
   6-33  maintained, distributed, or provided for a purpose other than
   6-34  making the requested referral or for administrative functions
   6-35  necessary to operating the referral service;
   6-36              (8)  the referral service makes the following
   6-37  disclosures to each person seeking a referral:
   6-38                    (A)  the manner in which the referral service
   6-39  selects the group of providers participating in the referral
   6-40  service;
   6-41                    (B)  whether the provider participant has paid a
   6-42  fee to the referral service;
   6-43                    (C)  the manner in which the referral service
   6-44  selects a particular provider from its list of provider
   6-45  participants to which to make a referral;
   6-46                    (D)  the nature of the relationship or any
   6-47  affiliation between the referral service and the group of provider
   6-48  participants to whom it could make a referral; and
   6-49                    (E)  the nature of any restriction that would
   6-50  exclude a provider from continuing as a provider participant;
   6-51              (9)  the referral service maintains each disclosure in
   6-52  a written record certifying that the disclosure has been made and
   6-53  the record certifying that the disclosure has been made is signed
   6-54  by either the person seeking a referral or by the person making the
   6-55  disclosure on behalf of the referral service; and
   6-56              (10)  if the referral service refers callers to a 1-900
   6-57  telephone number or another telephone number that requires the
   6-58  payment of a toll or fee payable to or collected by the referral
   6-59  service, the referral service discloses the per minute charge.
   6-60        (b)  A qualified mental health referral service may not limit
   6-61  participation by a person for a reason other than:
   6-62              (1)  failure to have a current, valid license without
   6-63  limitation to practice in this state;
   6-64              (2)  failure to maintain professional liability
   6-65  insurance while participating in the service;
   6-66              (3)  a decision by a peer review committee that the
   6-67  person has failed to meet prescribed standards or has not acted in
   6-68  a professional or ethical manner;
   6-69              (4)  termination of the contract between the
   6-70  participant and the qualified mental health referral service by
    7-1  either party under the terms of the contract; or
    7-2              (5)  significant dissatisfaction of consumers that is
    7-3  documented and verifiable.
    7-4        Sec. 164.008.  OPERATING AN INTERVENTION AND ASSESSMENT
    7-5  SERVICE.  A treatment facility may not own, operate, manage, or
    7-6  control an intervention and assessment service that makes referrals
    7-7  to a treatment facility for inpatient treatment of mental illness
    7-8  or chemical dependency unless the intervention and assessment
    7-9  service:
   7-10              (1)  is a qualified mental health referral service
   7-11  under Section 164.007;
   7-12              (2)  discloses in all advertising the relationship
   7-13  between the treatment facility and the intervention and assessment
   7-14  service; and
   7-15              (3)  discloses to each person contacting the service,
   7-16  at the time of initial contact, the relationship between the
   7-17  treatment facility and the intervention and assessment service.
   7-18        Sec. 164.009.  DISCLOSURES AND REPRESENTATIONS.  (a)  A
   7-19  treatment facility may not admit a patient to its facilities
   7-20  without fully disclosing to the patient or, if the patient is a
   7-21  minor, the patient's parent, managing conservator, or guardian, in,
   7-22  if possible, the primary language of the patient, managing
   7-23  conservator, or guardian, as the case may be, the following
   7-24  information in writing before admission:
   7-25              (1)  the treatment facility's estimated average daily
   7-26  charge for inpatient treatment with an explanation that the patient
   7-27  may be billed separately for services provided by mental health
   7-28  professionals;
   7-29              (2)  the name of the attending physician, if the
   7-30  treatment facility is a mental health facility, or the name of the
   7-31  attending mental health professional, if the facility is a chemical
   7-32  dependency facility; and
   7-33              (3)  the current "patient's bill of rights" as adopted
   7-34  by the Texas Department of Mental Health and Mental Retardation,
   7-35  the Texas Commission on Alcohol and Drug Abuse, or the Texas
   7-36  Department of Health that sets out restrictions to the patient's
   7-37  freedom that may be imposed on the patient during the patient's
   7-38  stay in a treatment facility.
   7-39        (b)  A treatment facility may not misrepresent to a patient
   7-40  or the parent, guardian, managing conservator, or spouse of a
   7-41  patient, the availability or amount of insurance coverage available
   7-42  to the prospective patient or the amount and percentage of a charge
   7-43  for which the patient will be responsible.
   7-44        (c)  A treatment facility may not represent to a patient who
   7-45  requests to leave a treatment facility against medical advice that:
   7-46              (1)  the patient will be subject to an involuntary
   7-47  commitment proceeding or subsequent emergency detention unless that
   7-48  representation is made by a physician or on the written instruction
   7-49  of a physician who has evaluated the patient within 48 hours of the
   7-50  representation; or
   7-51              (2)  the patient's insurance company will refuse to pay
   7-52  all or any portion of the medical expenses previously incurred.
   7-53        (d)  A mental health facility may not represent or recommend
   7-54  that a prospective patient should be admitted for inpatient
   7-55  treatment unless the representation is made by a licensed physician
   7-56  or, subsequent to evaluation by a licensed physician, by a mental
   7-57  health professional.
   7-58        (e)  A chemical dependency facility may not represent or
   7-59  recommend that a prospective patient should be admitted to a
   7-60  facility for treatment unless and until:
   7-61              (1)  the prospective patient has been evaluated, in
   7-62  person, by a mental health professional; and
   7-63              (2)  the mental health professional determines that the
   7-64  patient meets the facility's admission standards.
   7-65        Sec. 164.010.  PROHIBITED ACTS.  It is a violation of this
   7-66  chapter, in connection with the marketing of mental health
   7-67  services, for a person to:
   7-68              (1)  advertise, expressly or impliedly, the services of
   7-69  a treatment facility through the use of:
   7-70                    (A)  promises of cure or guarantees of treatment
    8-1  results that cannot be substantiated; or
    8-2                    (B)  any unsubstantiated claims;
    8-3              (2)  advertise, expressly or impliedly, the
    8-4  availability of intervention and assessment services unless and
    8-5  until the services are available and are provided by mental health
    8-6  professionals licensed or certified to provide the particular
    8-7  service;
    8-8              (3)  fail to disclose before soliciting a referral
    8-9  source or prospective patient to induce a person to use the
   8-10  services of the treatment facility an affiliation between a
   8-11  treatment facility and its soliciting agents, employees, or
   8-12  contractors;
   8-13              (4)  obtain information considered confidential by
   8-14  state or federal law regarding a person for the purpose of
   8-15  soliciting that person to use the services of a treatment facility
   8-16  unless and until consent is obtained from the person or, in the
   8-17  case of a minor, the person's parent, managing conservator, or
   8-18  legal guardian or another person with authority to give that
   8-19  authorization; or
   8-20              (5)  represent that a referral service is a qualified
   8-21  mental health referral service unless and until the referral
   8-22  service complies with Section 164.007.
   8-23        Sec. 164.011.  INJUNCTION.  (a)  If it appears that a person
   8-24  is in violation of this chapter, the attorney general, a district
   8-25  attorney, or a county attorney may institute an action for
   8-26  injunctive relief to restrain the person from continuing the
   8-27  violation and for civil penalties of not less than $1,000 and not
   8-28  more than $25,000 per violation.
   8-29        (b)  A civil action filed under this section shall be filed
   8-30  in a district court in Travis County or in the county in which the
   8-31  defendant resides.
   8-32        (c)  The attorney general, a district attorney, or a county
   8-33  attorney may recover reasonable expenses incurred in obtaining
   8-34  injunctive relief, civil penalties, or both, under this section,
   8-35  including court costs, reasonable attorney fees, investigative
   8-36  costs, witness fees, and deposition expenses.
   8-37        (d)  A civil penalty recovered in a suit instituted by a
   8-38  local government under this chapter shall be paid to that local
   8-39  government.
   8-40        Sec. 164.012.  PENALTIES.  In addition to the penalties
   8-41  prescribed by this chapter, a violation of a provision of this
   8-42  chapter by an individual or treatment facility that is licensed by
   8-43  a state health care regulatory agency is subject to the same
   8-44  consequences as a violation of the licensing law applicable to the
   8-45  individual or treatment facility or of a rule adopted under that
   8-46  licensing law.
   8-47        Sec. 164.013.  DECEPTIVE TRADE PRACTICES.  A violation of
   8-48  this chapter constitutes a false, misleading, or deceptive act or
   8-49  practice within the meaning of Subchapter E, Chapter 17, Business &
   8-50  Commerce Code, and a public or private right or remedy prescribed
   8-51  by that subchapter may be used to enforce this chapter.
   8-52        Sec. 164.014.  RULE-MAKING AUTHORITY.  The Texas Commission
   8-53  on Alcohol and Drug Abuse and Texas Board of Mental Health and
   8-54  Mental Retardation may adopt rules interpreting the provisions of
   8-55  this chapter relating to the activities of a chemical dependency
   8-56  facility or mental health facility under its jurisdiction.
   8-57                               ARTICLE 3
   8-58        SECTION 3.01.  Subsection (b), Section 241.053, Health and
   8-59  Safety Code, is amended to read as follows:
   8-60        (b)  A hospital whose license is suspended or revoked may
   8-61  apply to the department for the reissuance of a license.  The
   8-62  department may reissue the license if the department determines
   8-63  that the hospital has corrected the conditions that led to the
   8-64  suspension or revocation.  A hospital whose license is suspended or
   8-65  revoked may not admit new patients until the license is reissued.
   8-66        SECTION 3.02.  Section 241.054, Health and Safety Code, is
   8-67  amended by amending Subsections (b), (d), and (e) and adding
   8-68  Subsections (f), (g), (h), and (i) to read as follows:
   8-69        (b)  After the notice and opportunity to comply, the
   8-70  commissioner of health <department> may request the attorney
    9-1  general or the appropriate district or county attorney to institute
    9-2  and conduct a suit for a violation of this chapter or a rule
    9-3  adopted under this chapter <petition a district court in the county
    9-4  in which a violation occurs for assessment and recovery of the
    9-5  civil penalty provided by Section  241.055, for injunctive relief,
    9-6  or both>.
    9-7        (d)  On his own initiative, the attorney general, a district
    9-8  attorney, or a county attorney may maintain an action in the name
    9-9  of the state for a violation of this chapter or a rule adopted
   9-10  under this chapter.
   9-11        (e)  The district court shall assess the civil penalty
   9-12  authorized by Section 241.055, grant <the> injunctive relief, or
   9-13  both, as warranted by the facts.  The injunctive relief may include
   9-14  any prohibitory or mandatory injunction warranted by the facts,
   9-15  including a temporary restraining order, temporary injunction, or
   9-16  permanent injunction.
   9-17        (f)  The department and the party bringing the suit may
   9-18  recover reasonable expenses incurred in obtaining injunctive
   9-19  relief, civil penalties, or both, including investigation costs,
   9-20  court costs, reasonable attorney fees, witness fees, and deposition
   9-21  expenses <(e)  The attorney general or the appropriate district or
   9-22  county attorney shall initiate and conduct the suit at the request
   9-23  of the commissioner of health>.
   9-24        (g)  Venue may be maintained in Travis County or in the
   9-25  county in which the violation occurred.
   9-26        (h)  Not later than the seventh day before the date on which
   9-27  the attorney general intends to bring suit on his own initiative,
   9-28  the attorney general shall provide to the department notice of the
   9-29  suit.  The attorney general is not required to provide notice of a
   9-30  suit if the attorney general determines that waiting to bring suit
   9-31  until the notice is provided will create an immediate threat to the
   9-32  health and safety of a patient.  This section does not create a
   9-33  requirement that the attorney general obtain the permission of a
   9-34  referral from the department before filing suit.
   9-35        (i)  The injunctive relief and civil penalty authorized by
   9-36  this section and Section 241.055 are in addition to any other
   9-37  civil, administrative, or criminal penalty provided by law.
   9-38        SECTION 3.03.  Section 241.055, Health and Safety Code, is
   9-39  amended by amending Subsections (b) and (c) and adding Subsection
   9-40  (d) to read as follows:
   9-41        (b)  A hospital that violates Subsection (a), another
   9-42  provision of this chapter, or a rule adopted or enforced under this
   9-43  chapter is liable for a civil penalty of not more than $25,000
   9-44  <$1,000> for each day of violation and for each act of violation.
   9-45        (c)  In determining the amount of the penalty, the district
   9-46  court shall consider:
   9-47              (1)  the hospital's previous violations;
   9-48              (2)  the seriousness of the violation, including the
   9-49  nature, circumstances, extent, and gravity of the violation;
   9-50              (3)  whether the health and safety of the public was
   9-51  threatened by the violation; <and>
   9-52              (4)  the demonstrated good faith of the hospital; and
   9-53              (5)  the amount necessary to deter future violations.
   9-54        (d)  A penalty collected under this section by the attorney
   9-55  general shall be deposited to the credit of the general revenue
   9-56  fund.  A penalty collected under this section by a district or
   9-57  county attorney shall be deposited to the credit of the general
   9-58  fund of the county in which the suit was heard.
   9-59        SECTION 3.04.  Subchapter C, Chapter 241, Health and Safety
   9-60  Code, is amended by  adding  Section 241.058  to  read  as
   9-61  follows:
   9-62        Sec. 241.058.  ADMINISTRATIVE PENALTY.  (a)  The board may
   9-63  impose an administrative penalty against a person licensed or
   9-64  regulated under this chapter who violates this chapter or a rule or
   9-65  order adopted under this chapter.
   9-66        (b)  The penalty for a violation may be in an amount not to
   9-67  exceed $25,000.  Each day a violation continues or occurs is a
   9-68  separate violation for purposes of imposing a penalty.
   9-69        (c)  The amount of the penalty shall be based on:
   9-70              (1)  the seriousness of the violation, including the
   10-1  nature, circumstances, extent, and gravity of any prohibited acts,
   10-2  and the hazard or potential hazard created to the health, safety,
   10-3  or economic welfare of the public;
   10-4              (2)  enforcement costs relating to the violation;
   10-5              (3)  the history of previous violations;
   10-6              (4)  the  amount  necessary  to  deter  future
   10-7  violations;
   10-8              (5)  efforts to correct the violation; and
   10-9              (6)  any other matter that justice may require.
  10-10        (d)  If  the  commissioner  determines  that  a  violation
  10-11  has occurred, the commissioner may issue to the board a report that
  10-12  states the facts on which the determination is based and the
  10-13  commissioner's recommendation  on  the imposition  of a penalty,
  10-14  including a recommendation on the amount of the penalty.
  10-15        (e)  Within 14 days after the date the report is issued, the
  10-16  commissioner shall give written notice of the report to the person.
  10-17  The notice may be given by certified mail.  The notice must include
  10-18  a brief summary of the alleged violation and a statement of the
  10-19  amount of the recommended penalty and must inform the person that
  10-20  the person has a right to a hearing on the occurrence of the
  10-21  violation, the amount of the penalty, or both the occurrence of the
  10-22  violation and the amount of the penalty.
  10-23        (f)  Within 20 days after the date the person receives the
  10-24  notice, the person in writing may accept the determination and
  10-25  recommended penalty of the commissioner or may make a written
  10-26  request for a hearing on the occurrence of the violation, the
  10-27  amount of the penalty, or both the occurrence of the violation and
  10-28  the amount of the penalty.
  10-29        (g)  If the person accepts the determination and recommended
  10-30  penalty of the commissioner, the board by order shall approve the
  10-31  determination and impose the recommended penalty.
  10-32        (h)  If the person requests a hearing or fails to respond
  10-33  timely to the notice, the commissioner shall set a hearing and give
  10-34  notice of the hearing to the person.  The administrative law judge
  10-35  shall make findings of fact and conclusions of law and promptly
  10-36  issue to the board a proposal for a decision about the occurrence
  10-37  of the violation and the amount of a proposed penalty.  Based on
  10-38  the findings of fact, conclusions of law, and proposal for a
  10-39  decision, the board by order may find that a violation has occurred
  10-40  and impose a penalty or may find that no violation occurred.
  10-41        (i)  The notice of the board's order given to the person
  10-42  under the Administrative Procedure and Texas Register Act (Article
  10-43  6252-13a, Vernon's Texas Civil Statutes) must include a statement
  10-44  of the right of the person to judicial review of the order.
  10-45        (j)  Within 30 days after the date the board's order is final
  10-46  as provided by Section 16(c), Administrative Procedure and Texas
  10-47  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes), the
  10-48  person shall:
  10-49              (1)  pay the amount of the penalty;
  10-50              (2)  pay the amount of the penalty and file a petition
  10-51  for judicial review contesting the occurrence of the violation, the
  10-52  amount of the penalty, or both the occurrence of the violation and
  10-53  the amount of the penalty; or
  10-54              (3)  without paying the amount of the penalty, file a
  10-55  petition for judicial review contesting the occurrence of the
  10-56  violation, the amount of the penalty, or both the occurrence of the
  10-57  violation and the amount of the penalty.
  10-58        (k)  Within the 30-day period, a person who acts under
  10-59  Subsection (j)(3) may:
  10-60              (1)  stay enforcement of the penalty by:
  10-61                    (A)  paying the amount of the penalty to the
  10-62  court for placement in an escrow account; or
  10-63                    (B)  giving to the court a supersedeas bond that
  10-64  is approved by the court for the amount of the penalty and that is
  10-65  effective until all judicial review of the board's order is final;
  10-66  or
  10-67              (2)  request the court to stay enforcement of the
  10-68  penalty by:
  10-69                    (A)  filing with the court a sworn affidavit of
  10-70  the person stating that the person is financially unable to pay the
   11-1  amount of the penalty and is financially unable to give the
   11-2  supersedeas bond; and
   11-3                    (B)  giving a copy of the affidavit to the
   11-4  commissioner by certified mail.
   11-5        (l)  The commissioner on receipt of a copy of an affidavit
   11-6  under Subsection (k)(2) may file with the court within five days
   11-7  after the date the copy is received a contest to the affidavit.
   11-8  The court shall hold a hearing on the facts alleged in the
   11-9  affidavit as soon as practicable and shall stay the enforcement of
  11-10  the penalty on finding that the alleged facts are true.  The person
  11-11  who files an affidavit has the burden of proving that the person is
  11-12  financially unable to pay the amount of the penalty and to give a
  11-13  supersedeas bond.
  11-14        (m)  If the person does not pay the amount of the penalty and
  11-15  the enforcement of the penalty is not stayed, the commissioner may
  11-16  refer the matter to the attorney general for collection of the
  11-17  amount of the penalty.
  11-18        (n)  Judicial review of the order of the board:
  11-19              (1)  is instituted by filing a petition as provided by
  11-20  Section 19, Administrative Procedure and Texas Register Act
  11-21  (Article 6252-13a, Vernon's Texas Civil Statutes); and
  11-22              (2)  is under the substantial evidence rule.
  11-23        (o)  If the court sustains the occurrence of the violation,
  11-24  the court may uphold or reduce the amount of the penalty and order
  11-25  the person to pay the full or reduced amount of the penalty.  If
  11-26  the court does not sustain the occurrence of the violation, the
  11-27  court shall order that no penalty is owed.
  11-28        (p)  When the judgment of the court becomes final, the court
  11-29  shall proceed under this subsection.  If the person paid the amount
  11-30  of the penalty and if that amount is reduced or is not upheld by
  11-31  the court, the court shall order that the appropriate amount plus
  11-32  accrued interest be remitted to the person.  The rate of the
  11-33  interest is the rate charged on loans to depository institutions by
  11-34  the New York Federal Reserve Bank, and the interest shall be paid
  11-35  for the period beginning on the date the penalty was paid and
  11-36  ending on the date the penalty is remitted.  If the person gave a
  11-37  supersedeas bond and if the amount of the penalty is not upheld by
  11-38  the court, the court shall order the release of the bond.  If the
  11-39  person gave a supersedeas bond and if the amount of the penalty is
  11-40  reduced, the court shall order the release of the bond after the
  11-41  person pays the amount.
  11-42        (q)  A penalty collected under this section shall be remitted
  11-43  to the comptroller for deposit in the general revenue fund.
  11-44        (r)  All proceedings under this section are subject to the
  11-45  Administrative Procedure and Texas Register Act (Article 6252-13a,
  11-46  Vernon's Texas Civil Statutes).
  11-47        SECTION 3.041.  Subchapter C, Chapter 241, Health and Safety
  11-48  Code, is amended by adding Section 241.0585 to read as follows:
  11-49        Sec. 241.0585.  RECOVERY OF COSTS.  If the attorney general
  11-50  brings an action to enforce an administrative penalty assessed
  11-51  under Section 241.058 and the court orders the payment of the
  11-52  penalty, the attorney general may recover reasonable expenses
  11-53  incurred in the investigation, initiation, or prosecution of the
  11-54  enforcement suit, including investigative costs, court costs,
  11-55  reasonable attorney fees, witness fees, and deposition expenses.
  11-56        SECTION 3.05.  Section 462.008, Health and Safety Code, is
  11-57  amended by amending Subsections (c) and (d) and adding Subsections
  11-58  (e) through (g) to read as follows:
  11-59        (c)  An individual who commits an offense under this section
  11-60  is subject on conviction to:
  11-61              (1)  a fine of not less than $50 or more than $25,000
  11-62  for each violation and each day of a continuing violation;
  11-63              (2)  confinement in jail for not more than two years
  11-64  for each violation and each day of a continuing violation; or
  11-65              (3)  both fine and confinement.
  11-66        (d)  A person other than an individual who commits an offense
  11-67  under this section is subject on conviction to a fine of not less
  11-68  than $500 or more than $100,000 for each violation and each day of
  11-69  a continuing violation.
  11-70        (e)  If it is shown on the trial of an individual that the
   12-1  individual has previously been convicted of an offense under this
   12-2  section, the offense is punishable by:
   12-3              (1)  a fine of not less than $100 or more than $50,000
   12-4  for each violation and each day of a continuing violation;
   12-5              (2)  confinement in jail for not more than four years
   12-6  for each violation and each day of a continuing violation; or
   12-7              (3)  both fine and confinement.
   12-8        (f)  If it is shown on the trial of a person other than an
   12-9  individual that the person previously has been convicted of an
  12-10  offense under this section, the offense is punishable by a fine of
  12-11  not less than $1,000 or more than $200,000 for each violation and
  12-12  each day of a continuing violation.
  12-13        (g)  <An offense under this section is a misdemeanor
  12-14  punishable by a fine of not more than $5,000, confinement in the
  12-15  county jail for not more than one year, or both.>
  12-16        <(d)>  The appropriate district or county attorney shall
  12-17  prosecute violations of this chapter.
  12-18        SECTION 3.06.  Section 464.014, Health and Safety Code, is
  12-19  amended to read as follows:
  12-20        Sec. 464.014.  Denial, Revocation, SUSPENSION, or Nonrenewal
  12-21  of License.  (a)  The executive director of the commission may
  12-22  deny, revoke, suspend, or refuse to renew a license if the
  12-23  applicant, license holder, or owner, director, administrator, or
  12-24  clinical staff member of the facility:
  12-25              (1)  has a documented history of client abuse or
  12-26  neglect; or
  12-27              (2)  fails to comply with this subchapter or with a
  12-28  rule of the commission adopted under this subchapter.
  12-29        (b)  The denial, revocation, suspension, or nonrenewal takes
  12-30  effect on the 30th day after the date on which the notice was
  12-31  mailed unless:
  12-32              (1)  the commission secures an injunction under Section
  12-33  464.015; or
  12-34              (2)  an administrative appeal is requested.
  12-35        (c)  If an administrative appeal is requested, the effective
  12-36  date of the commission's original decision must be postponed to
  12-37  allow the person whose license was denied, revoked, suspended, or
  12-38  not renewed to participate in the appeal.  The commission shall
  12-39  provide an opportunity for the affected person to present
  12-40  additional evidence or testimony to the commission.
  12-41        (d)  A person whose license is denied, revoked, suspended, or
  12-42  not renewed is entitled to:
  12-43              (1)  appeal that decision at a hearing before the
  12-44  commission or a hearings officer appointed by the commission; and
  12-45              (2)  receive notice of the date, time, and place of the
  12-46  hearing not later than the 15th day before the date of the hearing.
  12-47        (e)  A request for a hearing must be received by the
  12-48  commission not later than the 15th day after the date on which the
  12-49  notice of denial, revocation, suspension, or nonrenewal is mailed
  12-50  to the applicant or license holder.
  12-51        (f)  The commission may restrict attendance at an appeals
  12-52  hearing to the parties and their agents.
  12-53        (g)  If a license is denied, revoked, suspended, or not
  12-54  renewed after a hearing, the commission shall send to the applicant
  12-55  or license holder a copy of the commission's findings and grounds
  12-56  for the decision.
  12-57        (h)  An order denying, revoking, suspending, or refusing to
  12-58  renew a license takes effect on the 31st day after the date on
  12-59  which the applicant or license holder receives final notice of the
  12-60  denial, revocation, suspension, or nonrenewal.  A license holder
  12-61  whose license is suspended or revoked may not admit new clients
  12-62  until the license is reissued.
  12-63        (i)  The Administrative Procedure and Texas Register Act
  12-64  (Article 6252-13a, Vernon's Texas Civil Statutes) applies to a
  12-65  judicial review of a commission appeals hearing under this
  12-66  subchapter.
  12-67        SECTION 3.07.  Section 464.015, Health and Safety Code, is
  12-68  amended by amending Subsections (b) through (e) and adding
  12-69  Subsections (f) and (g) to read as follows:
  12-70        (b)  A suit for injunctive relief, civil penalties authorized
   13-1  by Section 464.017, or both, must be brought in Travis County or
   13-2  the county in which the violation occurs.
   13-3        (c)  A district court, on petition of the commission, the
   13-4  attorney general, or a district or county attorney, and on a
   13-5  finding by the court that a person or facility is violating or has
   13-6  violated this subchapter or a standard adopted under this
   13-7  subchapter, shall grant any prohibitory or mandatory injunctive
   13-8  relief warranted by the facts, including a temporary restraining
   13-9  order, temporary injunction, or permanent injunction.
  13-10        (d)  The court granting <the> injunctive relief shall order
  13-11  the person or facility to reimburse the commission and the party
  13-12  bringing the suit for all costs of investigation and litigation,
  13-13  including reasonable attorney's fees, reasonable investigative
  13-14  expenses, court costs, witness fees, deposition expenses, and civil
  13-15  administrative costs.
  13-16        (e)  At the request of the commission, the attorney general
  13-17  or the appropriate district or county attorney shall institute and
  13-18  conduct a suit authorized by Subsection (a) in the name of this
  13-19  state.
  13-20        (f)  On his own initiative, the attorney general or a
  13-21  district attorney or county attorney may maintain an action for
  13-22  injunctive relief in the name of the state for a violation of this
  13-23  subchapter or a standard adopted under this subchapter.
  13-24        (g)  The injunctive relief and civil penalty authorized by
  13-25  this section and Section 464.017 are in addition to any other
  13-26  civil, administrative, or criminal penalty provided by law.
  13-27        SECTION 3.08.  Section 464.017, Health and Safety Code, is
  13-28  amended by amending Subsections (a), (c), and (e) and adding
  13-29  Subsections (f) and (g) to read as follows:
  13-30        (a)  A person or facility is subject to a civil penalty of
  13-31  not <less than $10 or> more than $25,000 <$200> for each day of
  13-32  violation and for each act of violation of this subchapter or a
  13-33  rule adopted under this subchapter.  In determining the amount of
  13-34  the civil penalty, the court shall consider:
  13-35              (1)  the person or facility's previous violations;
  13-36              (2)  the seriousness of the violation, including the
  13-37  nature, circumstances, extent, and gravity of the violation;
  13-38              (3)  whether the health and safety of the public was
  13-39  threatened by the violation;
  13-40              (4)  the demonstrated good faith of the person or
  13-41  facility; and
  13-42              (5)  the amount necessary to deter future violations.
  13-43        (c)  At the request of the commission, the attorney general
  13-44  or the appropriate district or county attorney shall institute and
  13-45  conduct the suit authorized by Subsection (b) in the name of this
  13-46  state.  The commission and the party bringing the suit may recover
  13-47  reasonable expenses incurred in obtaining civil penalties,
  13-48  including investigation costs, court costs, reasonable attorney
  13-49  fees, witness fees, and deposition expenses.
  13-50        (e)  On his own initiative, the attorney general, a district
  13-51  attorney, or a county attorney may maintain an action for civil
  13-52  penalties in the name of the state for a violation of this
  13-53  subchapter or a standard adopted under this subchapter.
  13-54        (f)  Penalties collected under this section by the attorney
  13-55  general shall be deposited to the credit of the alcohol and drug
  13-56  abuse treatment licensure fund.  Penalties collected under this
  13-57  section by a district or county attorney shall be deposited to the
  13-58  credit of the general fund of the county in which the suit was
  13-59  heard.
  13-60        (g)  The commission and the party bringing the suit may
  13-61  recover reasonable expenses incurred in obtaining civil penalties,
  13-62  including investigation costs, court costs, reasonable attorney
  13-63  fees, witness fees, and deposition expenses.
  13-64        SECTION 3.09.  Subchapter A, Chapter 464, Health and Safety
  13-65  Code, is amended by adding Sections 464.018 and 464.019 to read as
  13-66  follows:
  13-67        Sec. 464.018.  NOTICE OF SUIT.  Not later than the seventh
  13-68  day before the date on which the attorney general intends to bring
  13-69  suit on his own initiative under Section 464.015 or 464.017, the
  13-70  attorney general shall provide to the commission notice of the
   14-1  suit.  The attorney general is not required to provide notice of a
   14-2  suit if the attorney general determines that waiting to bring suit
   14-3  until the notice is provided will create an immediate threat to the
   14-4  health and safety of a client.  This section does not create a
   14-5  requirement that the attorney general obtain the permission of or a
   14-6  referral from the commission before filing suit.
   14-7        Sec. 464.019.  ADMINISTRATIVE PENALTY.  (a)  The commission
   14-8  may impose an administrative penalty against a person licensed or
   14-9  regulated under this chapter who violates this chapter or a rule or
  14-10  order adopted under this chapter.
  14-11        (b)  The penalty for a violation may be in an amount not to
  14-12  exceed $25,000.  Each day a violation continues or occurs is a
  14-13  separate violation for purposes of imposing a penalty.
  14-14        (c)  The amount of the penalty shall be based on:
  14-15              (1)  the seriousness of the violation, including the
  14-16  nature, circumstances, extent, and gravity of any prohibited acts,
  14-17  and the hazard or potential hazard created to the health, safety,
  14-18  or economic welfare of the public;
  14-19              (2)  enforcement costs relating to the violation;
  14-20              (3)  the history of previous violations;
  14-21              (4)  the amount necessary to deter future violations;
  14-22              (5)  efforts to correct the violation; and
  14-23              (6)  any other matter that justice may require.
  14-24        (d)  If the executive director determines that a violation
  14-25  has occurred, the director may issue to the commission a report
  14-26  that states the facts on which the determination is based and the
  14-27  director's recommendation on the imposition of a penalty, including
  14-28  a recommendation on the amount of the penalty.
  14-29        (e)  Within 14 days after the date the report is issued, the
  14-30  executive director shall give written notice of the report to the
  14-31  person.  The notice may be given by certified mail.  The notice
  14-32  must include a brief summary of the alleged violation and a
  14-33  statement of the amount of the recommended penalty and must inform
  14-34  the person that the person has a right to a hearing on the
  14-35  occurrence of the violation, the amount of the penalty, or both the
  14-36  occurrence of the violation and the amount of the penalty.
  14-37        (f)  Within 20 days after the date the person receives the
  14-38  notice, the person in writing may accept the determination and
  14-39  recommended penalty of the commissioner or may make a written
  14-40  request for a hearing on the occurrence of the violation, the
  14-41  amount of the penalty, or both the occurrence of the violation and
  14-42  the amount of the penalty.
  14-43        (g)  If the person accepts the determination and recommended
  14-44  penalty of the commissioner, the board by order shall approve the
  14-45  determination and impose the recommended penalty.
  14-46        (h)  If the person requests a hearing or fails to respond
  14-47  timely to the notice, the commissioner shall set a hearing and give
  14-48  notice of the hearing to the person.  The administrative law judge
  14-49  shall make findings of fact and conclusions of law and promptly
  14-50  issue to the board a proposal for a decision about the occurrence
  14-51  of the violation and the amount of a proposed penalty.  Based on
  14-52  the findings of fact, conclusions of law, and proposal for a
  14-53  decision, the board by order may find that a violation has occurred
  14-54  and impose a penalty or may find that no violation occurred.
  14-55        (i)  The notice of the board's order given to the person
  14-56  under the Administrative Procedure and Texas Register Act (Article
  14-57  6252-13a, Vernon's Texas Civil Statutes) must include a statement
  14-58  of the right of the person to judicial review of the order.
  14-59        (j)  Within 30 days after the date the board's order is final
  14-60  as provided by Section 16(c), Administrative Procedure and Texas
  14-61  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes), the
  14-62  person shall:
  14-63              (1)  pay the amount of the penalty;
  14-64              (2)  pay the amount of the penalty and file a petition
  14-65  for judicial review contesting the occurrence of the violation, the
  14-66  amount of the penalty, or both the occurrence of the violation and
  14-67  the amount of the penalty; or
  14-68              (3)  without paying the amount of the penalty, file a
  14-69  petition for judicial review contesting the occurrence of the
  14-70  violation, the amount of the penalty, or both the occurrence of the
   15-1  violation and the amount of the penalty.
   15-2        (k)  Within the 30-day period, a person who acts under
   15-3  Subsection (j)(3) may:
   15-4              (1)  stay enforcement of the penalty by:
   15-5                    (A)  paying the amount of the penalty to the
   15-6  court for placement in an escrow account; or
   15-7                    (B)  giving to the court a supersedeas bond that
   15-8  is approved by the court for the amount of the penalty and that is
   15-9  effective until all judicial review of the board's order is final;
  15-10  or
  15-11              (2)  request the court to stay enforcement of the
  15-12  penalty by:
  15-13                    (A)  filing with the court a sworn affidavit of
  15-14  the person stating that the person is financially unable to pay the
  15-15  amount of the penalty and is financially unable to give the
  15-16  supersedeas bond; and
  15-17                    (B)  giving a copy of the affidavit to the
  15-18  commissioner by certified mail.
  15-19        (l)  The commissioner on receipt of a copy of an affidavit
  15-20  under Subsection (k)(2) may file with the court within five days
  15-21  after the date the copy is received a contest to the affidavit.
  15-22  The court shall hold a hearing on the facts alleged in the
  15-23  affidavit as soon as practicable and shall stay the enforcement of
  15-24  the penalty on finding that the alleged facts are true.  The person
  15-25  who files an affidavit has the burden of proving that the person is
  15-26  financially unable to pay the amount of the penalty and to give a
  15-27  supersedeas bond.
  15-28        (m)  If the person does not pay the amount of the penalty and
  15-29  the enforcement of the penalty is not stayed, the commissioner may
  15-30  refer the matter to the attorney general for collection of the
  15-31  amount of the penalty.
  15-32        (n)  Judicial review of the order of the board:
  15-33              (1)  is instituted by filing a petition as provided by
  15-34  Section 19, Administrative Procedure and Texas Register Act
  15-35  (Article 6252-13a, Vernon's Texas Civil Statutes); and
  15-36              (2)  is under the substantial evidence rule.
  15-37        (o)  If the court sustains the occurrence of the violation,
  15-38  the court may uphold or reduce the amount of the penalty and order
  15-39  the person to pay the full or reduced amount of the penalty.  If
  15-40  the court does not sustain the occurrence of the violation, the
  15-41  court shall order that no penalty is owed.
  15-42        (p)  When the judgment of the court becomes final, the court
  15-43  shall proceed under this subsection.  If the person paid the amount
  15-44  of the penalty and if that amount is reduced or is not upheld by
  15-45  the court, the court shall order that the appropriate amount plus
  15-46  accrued interest be remitted to the person.  The rate of the
  15-47  interest is the rate charged on loans to depository institutions by
  15-48  the New York Federal Reserve Bank, and the interest shall be paid
  15-49  for the period beginning on the date the penalty was paid and
  15-50  ending on the date the penalty is remitted.  If the person gave a
  15-51  supersedeas bond and if the amount of the penalty is not upheld by
  15-52  the court, the court shall order the release of the bond.  If the
  15-53  person gave a supersedeas bond and if the amount of the penalty is
  15-54  reduced, the court shall order the release of the bond after the
  15-55  person pays the amount.
  15-56        (q)  A penalty collected under this section shall be remitted
  15-57  to the comptroller for deposit in the general revenue fund.
  15-58        (r)  All proceedings under this section are subject to the
  15-59  Administrative Procedure and Texas Register Act (Article 6252-13a,
  15-60  Vernon's Texas Civil Statutes).
  15-61        SECTION 2.091.  Subchapter A, Chapter 464, Health and Safety
  15-62  Code, is amended by adding Section 464.0195 to read as follows:
  15-63        Sec. 464.0195.  RECOVERY OF COSTS.  If the attorney general
  15-64  brings an action to enforce an administrative penalty assessed
  15-65  under Section 464.019 and the court orders the payment of the
  15-66  penalty, the attorney general may recover reasonable expenses
  15-67  incurred in the investigation, initiation, or prosecution of the
  15-68  enforcement suit, including investigative costs, court costs,
  15-69  reasonable attorney fees, witness fees, and deposition expenses.
  15-70        SECTION 3.10.  (a)  Section 571.020, Health and Safety Code,
   16-1  is amended to read as follows:
   16-2        Sec. 571.020.  CRIMINAL PENALTIES.  (a)  A person commits an
   16-3  offense if the person intentionally causes, conspires with another
   16-4  to cause, or assists another to cause the unwarranted commitment of
   16-5  a person to a mental health facility.  <An offense under this
   16-6  subsection is a misdemeanor punishable by a fine of not more than
   16-7  $5,000, confinement in the county jail for not more than two years,
   16-8  or both.>
   16-9        (b)  A person commits an offense if the person knowingly
  16-10  violates a provision of this subtitle.  <An offense under this
  16-11  subsection is a misdemeanor punishable by a fine of not more than
  16-12  $5,000, confinement in the county jail for not more than one year,
  16-13  or both.>
  16-14        (c)  An individual who commits an offense under this section
  16-15  is subject on conviction to:
  16-16              (1)  a fine of not less than $50 or more than $25,000
  16-17  for each violation and each day of a continuing violation;
  16-18              (2)  confinement in jail for not more than two years
  16-19  for each violation and each day of a continuing violation; or
  16-20              (3)  both fine and confinement.
  16-21        (d)  A person other than an individual who commits an offense
  16-22  under this section is subject on conviction to a fine of not less
  16-23  than $500 or more than $100,000 for each violation and each day of
  16-24  a continuing violation.
  16-25        (e)  If it is shown on the trial of an individual that the
  16-26  individual has previously been convicted of an offense under this
  16-27  section, the offense is punishable by:
  16-28              (1)  a fine of not less than $100 or more than $50,000
  16-29  for each violation and each day of a continuing violation;
  16-30              (2)  confinement in jail for not more than four years
  16-31  for each violation and each day of a continuing violation; or
  16-32              (3)  both fine and confinement.
  16-33        (f)  If it is shown on the trial of a person other than an
  16-34  individual that the person previously has been convicted of an
  16-35  offense under this section, the offense is punishable by a fine of
  16-36  not less than $1,000 or more than $200,000 for each violation and
  16-37  each day of a continuing violation.
  16-38        (b)  Section 3, Chapter 567, Acts of the 72nd Legislature,
  16-39  Regular Session, 1991, is repealed.
  16-40        SECTION 3.11.  Chapter 571, Health and Safety Code, is
  16-41  amended by adding Sections 571.022, 571.023, 571.024, and 571.025
  16-42  to read as follows:
  16-43        Sec. 571.022.  INJUNCTION.  (a)  At the request of the
  16-44  department, the attorney general or the appropriate district or
  16-45  county attorney shall institute and conduct in the name of the
  16-46  state a suit for a violation of this subtitle or a rule adopted
  16-47  under this subtitle.
  16-48        (b)  On his own initiative, the attorney general or district
  16-49  or county attorney may maintain an action for a violation of this
  16-50  subtitle or a rule adopted under this subtitle in the name of the
  16-51  state.
  16-52        (c)  Venue may be maintained in Travis County or in the
  16-53  county in which the violation occurred.
  16-54        (d)  The district court may grant any prohibitory or
  16-55  mandatory injunctive relief warranted by the facts, including a
  16-56  temporary restraining order, temporary injunction, or permanent
  16-57  injunction.
  16-58        Sec. 571.023.  CIVIL PENALTY.  (a)  A person is subject to a
  16-59  civil penalty of not more than $25,000 for each day of violation
  16-60  and for each act of violation of this subtitle or a rule adopted
  16-61  under this subtitle.  In determining the amount of the civil
  16-62  penalty, the court shall consider:
  16-63              (1)  the person's or facility's previous violations;
  16-64              (2)  the seriousness of the violation, including the
  16-65  nature, circumstances, extent, and gravity of the violation;
  16-66              (3)  whether the health and safety of the public was
  16-67  threatened by the violation;
  16-68              (4)  the demonstrated good faith of the person or
  16-69  facility; and
  16-70              (5)  the amount necessary to deter future violations.
   17-1        (b)  The department or party bringing the suit may:
   17-2              (1)  combine a suit to assess and recover civil
   17-3  penalties with a suit for injunctive relief brought under Section
   17-4  571.022 or 577.019; or
   17-5              (2)  file a suit to assess and recover civil penalties
   17-6  independently of a suit for injunctive relief.
   17-7        (c)  At the request of the department, the attorney general
   17-8  or the appropriate district or county attorney shall institute and
   17-9  conduct the suit authorized by Subsection (b) in the name of the
  17-10  state.
  17-11        (d)  On his own initiative, the attorney general, district
  17-12  attorney, or county attorney may maintain an action as authorized
  17-13  by Subsection (b) for a violation of this subtitle or a rule
  17-14  adopted under this subtitle in the name of the state.
  17-15        (e)  The department and the party bringing the suit may
  17-16  recover reasonable expenses incurred in obtaining injunctive
  17-17  relief, civil penalties, or both, including investigation costs,
  17-18  court costs, reasonable attorney fees, witness fees, and deposition
  17-19  expenses.
  17-20        (f)  A penalty collected under this section by the attorney
  17-21  general shall be deposited to the credit of the general revenue
  17-22  fund.  A penalty collected under this section by a district or
  17-23  county attorney shall be deposited to the credit of the general
  17-24  fund of the county in which the suit was heard.
  17-25        (g)  The civil penalty and injunctive relief authorized by
  17-26  this section and Sections 571.022 and 577.019 are in addition to
  17-27  any other civil, administrative, or criminal remedies provided by
  17-28  law.
  17-29        Sec. 571.024.  NOTICE OF SUIT.  Not later than the seventh
  17-30  day before the date on which the attorney general intends to bring
  17-31  suit on his own initiative, the attorney general shall provide to
  17-32  the department notice of the suit.  The attorney general is not
  17-33  required to provide notice of a suit if the attorney general
  17-34  determines that waiting to bring suit until the notice is provided
  17-35  will create an immediate threat to the health and safety of a
  17-36  patient.  This section does not create a requirement that the
  17-37  attorney general obtain the permission of or a referral from the
  17-38  department before filing suit.
  17-39        Sec. 571.025.  ADMINISTRATIVE PENALTY.  (a)  The board may
  17-40  impose an administrative penalty against a person licensed or
  17-41  regulated under this subtitle who violates this subtitle or a rule
  17-42  or order adopted under this subtitle.
  17-43        (b)  The penalty for a violation may be in an amount not to
  17-44  exceed $25,000.  Each day a violation continues or occurs is a
  17-45  separate violation for purposes of imposing a penalty.
  17-46        (c)  The amount of the penalty shall be based on:
  17-47              (1)  the seriousness of the violation, including the
  17-48  nature, circumstances, extent, and gravity of any prohibited acts,
  17-49  and the hazard or potential hazard created to the health, safety,
  17-50  or economic welfare of the public;
  17-51              (2)  enforcement costs relating to the violation,
  17-52  including investigation costs, witness fees, and deposition
  17-53  expenses;
  17-54              (3)  the history of previous violations;
  17-55              (4)  the amount necessary to deter future violations;
  17-56              (5)  efforts to correct the violation; and
  17-57              (6)  any other matter that justice may require.
  17-58        (d)  If the commissioner determines that a violation has
  17-59  occurred, the commissioner may issue to the board a report that
  17-60  states the facts on which the determination is based and the
  17-61  commissioner's recommendation on the imposition of a penalty,
  17-62  including a recommendation on the amount of the penalty.
  17-63        (e)  Within 14 days after the date the report is issued, the
  17-64  commissioner shall give written notice of the report to the person.
  17-65  The notice may be given by certified mail.  The notice must include
  17-66  a brief summary of the alleged violation and a statement of the
  17-67  amount of the recommended penalty and must inform the person that
  17-68  the person has a right to a hearing on the occurrence of the
  17-69  violation, the amount of the penalty, or both the occurrence of the
  17-70  violation and the amount of the penalty.
   18-1        (f)  Within 20 days after the date the person receives the
   18-2  notice, the person in writing may accept the determination and
   18-3  recommended penalty of the commissioner or may make a written
   18-4  request for a hearing on the occurrence of the violation, the
   18-5  amount of the penalty, or both the occurrence of the violation and
   18-6  the amount of the penalty.
   18-7        (g)  If the person accepts the determination and recommended
   18-8  penalty of the commissioner, the board by order shall approve the
   18-9  determination and impose the recommended penalty.
  18-10        (h)  If the person requests a hearing or fails to respond
  18-11  timely to the notice, the commissioner shall set a hearing and give
  18-12  notice of the hearing to the person.  The administrative law judge
  18-13  shall make findings of fact and conclusions of law and promptly
  18-14  issue to the board a proposal for a decision about the occurrence
  18-15  of the violation and the amount of a proposed penalty.  Based on
  18-16  the findings of fact, conclusions of law, and proposal for a
  18-17  decision, the board by order may find that a violation has occurred
  18-18  and impose a penalty or may find that no violation occurred.
  18-19        (i)  The notice of the board's order given to the person
  18-20  under the Administrative Procedure and Texas Register Act (Article
  18-21  6252-13a, Vernon's Texas Civil Statutes) must include a statement
  18-22  of the right of the person to judicial review of the order.
  18-23        (j)  Within 30 days after the date the board's order is final
  18-24  as provided by Section 16(c), Administrative Procedure and Texas
  18-25  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes), the
  18-26  person shall:
  18-27              (1)  pay the amount of the penalty;
  18-28              (2)  pay the amount of the penalty and file a petition
  18-29  for judicial review contesting the occurrence of the violation, the
  18-30  amount of the penalty, or both the occurrence of the violation and
  18-31  the amount of the penalty; or
  18-32              (3)  without paying the amount of the penalty, file a
  18-33  petition for judicial review contesting the occurrence of the
  18-34  violation, the amount of the penalty, or both the occurrence of the
  18-35  violation and the amount of the penalty.
  18-36        (k)  Within the 30-day period, a person who acts under
  18-37  Subsection (j)(3) may:
  18-38              (1)  stay enforcement of the penalty by:
  18-39                    (A)  paying the amount of the penalty to the
  18-40  court for placement in an escrow account; or
  18-41                    (B)  giving to the court a supersedeas bond that
  18-42  is approved by the court for the amount of the penalty and that is
  18-43  effective until all judicial review of the board's order is final;
  18-44  or
  18-45              (2)  request the court to stay enforcement of the
  18-46  penalty by:
  18-47                    (A)  filing with the court a sworn affidavit of
  18-48  the person stating that the person is financially unable to pay the
  18-49  amount of the penalty and is financially unable to give the
  18-50  supersedeas bond; and
  18-51                    (B)  giving a copy of the affidavit to the
  18-52  commissioner by certified mail.
  18-53        (l)  The commissioner on receipt of a copy of an affidavit
  18-54  under Subsection (k)(2) may file with the court within five days
  18-55  after the date the copy is received a contest to the affidavit.
  18-56  The court shall hold a hearing on the facts alleged in the
  18-57  affidavit as soon as practicable and shall stay the enforcement of
  18-58  the penalty on finding that the alleged facts are true.  The person
  18-59  who files an affidavit has the burden of proving that the person is
  18-60  financially unable to pay the amount of the penalty and to give a
  18-61  supersedeas bond.
  18-62        (m)  If the person does not pay the amount of the penalty and
  18-63  the enforcement of the penalty is not stayed, the commissioner may
  18-64  refer the matter to the attorney general for collection of the
  18-65  amount of the penalty.
  18-66        (n)  Judicial review of the order of the board:
  18-67              (1)  is instituted by filing a petition as provided by
  18-68  Section 19, Administrative Procedure and Texas Register Act
  18-69  (Article 6252-13a, Vernon's Texas Civil Statutes); and
  18-70              (2)  is under the substantial evidence rule.
   19-1        (o)  If the court sustains the occurrence of the violation,
   19-2  the court may uphold or reduce the amount of the penalty and order
   19-3  the person to pay the full or reduced amount of the penalty.  If
   19-4  the court does not sustain the occurrence of the violation, the
   19-5  court shall order that no penalty is owed.
   19-6        (p)  When the judgment of the court becomes final, the court
   19-7  shall proceed under this subsection.  If the person paid the amount
   19-8  of the penalty and if that amount is reduced or is not upheld by
   19-9  the court, the court shall order that the appropriate amount plus
  19-10  accrued interest be remitted to the person.  The rate of the
  19-11  interest is the rate charged on loans to depository institutions by
  19-12  the New York Federal Reserve Bank, and the interest shall be paid
  19-13  for the period beginning on the date the penalty was paid and
  19-14  ending on the date the penalty is remitted.  If the person gave a
  19-15  supersedeas bond and if the amount of the penalty is not upheld by
  19-16  the court, the court shall order the release of the bond.  If the
  19-17  person gave a supersedeas bond and if the amount of the penalty is
  19-18  reduced, the court shall order the release of the bond after the
  19-19  person pays the amount.
  19-20        (q)  A penalty collected under this section shall be remitted
  19-21  to the comptroller for deposit in the general revenue fund.
  19-22        (r)  All proceedings under this section are subject to the
  19-23  Administrative Procedure and Texas Register Act (Article 6252-13a,
  19-24  Vernon's Texas Civil Statutes).
  19-25        SECTION 3.111.  Chapter 571, Health and Safety Code, is
  19-26  amended by adding Section 571.026 to read as follows:
  19-27        Sec. 571.026.  RECOVERY OF COSTS.  If the attorney general
  19-28  brings an action to enforce an administrative penalty assessed
  19-29  under this chapter and the court orders the payment of the penalty,
  19-30  the attorney general may recover reasonable expenses incurred in
  19-31  the investigation, initiation, or prosecution of the enforcement
  19-32  suit, including investigative costs, court costs, reasonable
  19-33  attorney fees, witness fees, and deposition expenses.
  19-34        SECTION 3.12.  Section 577.016, Health and Safety Code, is
  19-35  amended by adding Subsection (e) to read as follows:
  19-36        (e)  A license holder whose license is suspended or revoked
  19-37  may not admit new patients until the license is reissued.
  19-38        SECTION 3.13.  Section 577.019, Health and Safety Code, is
  19-39  amended to read as follows:
  19-40        Sec. 577.019.  INJUNCTION.  (a)  The department, in the name
  19-41  of the state, may maintain an action in a district court of Travis
  19-42  County or in the county in which the violation occurs for an
  19-43  injunction or other process against any person to restrain the
  19-44  person from operating a mental hospital or mental health facility
  19-45  that is not licensed as required by this chapter.
  19-46        (b)  The district court <of Travis County, for cause shown,>
  19-47  may grant any prohibitory or mandatory relief warranted by the
  19-48  facts, including a temporary restraining order, temporary
  19-49  injunction, or permanent injunction <restrain a violation of this
  19-50  chapter>.
  19-51        (c)  At the request of the department or on the initiative of
  19-52  the attorney general or district or county attorney, the attorney
  19-53  general or the appropriate district or county attorney shall
  19-54  institute and conduct a suit authorized by this section in the name
  19-55  of the state.  The attorney general may recover reasonable expenses
  19-56  incurred in instituting and conducting a suit authorized by this
  19-57  section, including investigative costs, court costs, reasonable
  19-58  attorney fees, witness fees, and deposition expenses.
  19-59                               ARTICLE 4
  19-60        SECTION 4.01.  Subsection (e), Section 572.001, Health and
  19-61  Safety Code, is amended to read as follows:
  19-62        (e)  A request for admission as a voluntary patient must
  19-63  state that the person for whom admission is requested agrees to
  19-64  voluntarily remain in the facility until the person's discharge and
  19-65  that the person consents to the diagnosis, observation, care, and
  19-66  treatment provided until the earlier of:
  19-67              (1)  the person's discharge; or
  19-68              (2)  the period prescribed <expiration of 96 hours
  19-69  after the time a written request for release is filed as provided>
  19-70  by Section 572.004.
   20-1        SECTION 4.02.  (a)  Section 572.004, Health and Safety Code,
   20-2  is amended to read as follows:
   20-3        Sec. 572.004.  DISCHARGE <OR RELEASE>.  (a)  A <Except as
   20-4  provided by Subsection (b), a> voluntary patient is entitled to
   20-5  leave an inpatient mental health facility in accordance with this
   20-6  section <within 96 hours> after <the time> a written request for
   20-7  discharge <release> is filed with the facility administrator or the
   20-8  administrator's designee.  The request must be signed, timed, and
   20-9  dated by the patient or a person legally responsible for the
  20-10  patient and must be made a part of the patient's clinical record.
  20-11  If a patient informs an employee of or person associated with the
  20-12  facility of the patient's desire to leave the facility, the
  20-13  employee or person shall, as soon as possible, assist the patient
  20-14  in creating the written request and present it to the patient for
  20-15  the patient's signature <patient's admission>.
  20-16        (b)  The facility shall, within four hours after a request
  20-17  for discharge is filed, notify the physician responsible for the
  20-18  patient's treatment.  If that physician is not available during
  20-19  that period, the facility shall notify any available physician of
  20-20  the request.
  20-21        (c)  The notified physician shall discharge the patient
  20-22  before the end of the four-hour period unless the physician has
  20-23  reasonable cause to believe that the patient might meet the
  20-24  criteria for court-ordered mental health services or emergency
  20-25  detention.
  20-26        (d)  A physician who has reasonable cause to believe that a
  20-27  patient might meet the criteria for court-ordered mental health
  20-28  services or emergency detention shall examine the patient as soon
  20-29  as possible within 24 hours after the time the request for
  20-30  discharge is filed.  The physician shall discharge the patient on
  20-31  completion of the examination unless the physician determines that
  20-32  the person meets the criteria for court-ordered mental health
  20-33  services or emergency detention.  If the physician makes a
  20-34  determination that the patient meets the criteria for court-ordered
  20-35  mental health services or emergency detention, the physician shall,
  20-36  not later than 4 p.m. on the next succeeding business day after the
  20-37  date on which the examination occurs, either discharge the patient
  20-38  or file an application for court-ordered mental health services or
  20-39  emergency detention and obtain a written order for further
  20-40  detention.  The physician shall notify the patient if the physician
  20-41  intends to detain the patient under this subsection or intends to
  20-42  file an application for court-ordered mental health services or
  20-43  emergency detention.  A decision to detain a patient under this
  20-44  subsection and the reasons for the decision shall be made a part of
  20-45  the patient's clinical record.
  20-46        (e)  If extremely hazardous weather conditions exist or a
  20-47  disaster occurs, the physician may request the judge of a court
  20-48  that has jurisdiction over proceedings brought under Chapter 574 to
  20-49  extend the period during which the patient may be detained.  The
  20-50  judge or a magistrate appointed by the judge may by written order
  20-51  made each day extend the period during which the patient may be
  20-52  detained until 4 p.m. on the first succeeding business day.  The
  20-53  written order must declare that an emergency exists because of the
  20-54  weather or the occurrence of a disaster.
  20-55        (f)  The patient is not entitled to leave the facility if
  20-56  before the end of the <96 hour> period prescribed by this section:
  20-57              (1)  a written withdrawal of the request for discharge
  20-58  <release> is filed; or
  20-59              (2)  an application for court-ordered mental health
  20-60  services or emergency detention is filed and the patient is
  20-61  detained in accordance with this subtitle.
  20-62        (g) <(c)>  A plan for continuing care shall be prepared in
  20-63  accordance with Section 574.081 for each patient discharged.  If
  20-64  sufficient time to prepare a continuing care plan before discharge
  20-65  is not available, the plan may be prepared and mailed to the
  20-66  appropriate person within 24 hours after the patient is discharged
  20-67  <or released if sufficient time is available before release>.
  20-68        (h) <(d)>  The patient or other person who files a request
  20-69  for discharge <release> of a patient shall be notified that the
  20-70  person filing the request assumes all responsibility for the
   21-1  patient on discharge.
   21-2        (b)  In addition to the substantive changes made by this
   21-3  section, this section conforms Section 572.004, Health and Safety
   21-4  Code, to Section 4, Chapter 567, Acts of the 72nd Legislature,
   21-5  Regular Session, 1991.
   21-6        (c)  Section 4, Chapter 567, Acts of the 72nd Legislature,
   21-7  Regular Session, 1991, is repealed.
   21-8        SECTION 4.03.  Chapter 572, Health and Safety Code, is
   21-9  amended by adding Section 572.0025 to read as follows:
  21-10        Sec. 572.0025.  INTAKE, ASSESSMENT, AND ADMISSION.  (a)  The
  21-11  board shall adopt rules governing the voluntary admission of a
  21-12  patient to an inpatient mental health facility, including rules
  21-13  governing the intake and assessment procedures of the admission
  21-14  process.
  21-15        (b)  The rules governing the intake process shall establish
  21-16  minimum standards for:
  21-17              (1)  reviewing a prospective patient's finances and
  21-18  insurance benefits;
  21-19              (2)  explaining to a prospective patient the patient's
  21-20  rights; and
  21-21              (3)  explaining to a prospective patient the facility's
  21-22  services and treatment process.
  21-23        (c)  The assessment provided for by the rules may be
  21-24  conducted only by a professional who meets the qualifications
  21-25  prescribed by board rules.
  21-26        (d)  The rules governing the assessment process shall
  21-27  prescribe:
  21-28              (1)  the types of professionals who may conduct an
  21-29  assessment;
  21-30              (2)  the minimum credentials each type of professional
  21-31  must have to conduct an assessment; and
  21-32              (3)  the type of assessment that professional may
  21-33  conduct.
  21-34        (e)  In accordance with board rule, a facility shall provide
  21-35  annually a minimum of eight hours of inservice training regarding
  21-36  intake and assessment for persons who will be conducting an intake
  21-37  or assessment for the facility.  A person may not conduct intake or
  21-38  assessments without having completed the initial and applicable
  21-39  annual inservice training.
  21-40        (f)  A prospective voluntary patient may not be formally
  21-41  accepted for treatment in a facility unless:
  21-42              (1)  the facility has a physician's signed order
  21-43  admitting the prospective patient; and
  21-44              (2)  the facility administrator or a person designated
  21-45  by the administrator has agreed to accept the prospective patient
  21-46  and has signed a statement to that effect.
  21-47        (g)  An assessment conducted as required by rules adopted
  21-48  under this section does not satisfy a statutory or regulatory
  21-49  requirement for a personal evaluation of a patient or a prospective
  21-50  patient by a physician before admission.
  21-51        (h)  In this section:
  21-52              (1)  "Admission" means the formal acceptance of a
  21-53  prospective patient to a facility.
  21-54              (2)  "Assessment" means the administrative process a
  21-55  facility uses to gather information from a prospective patient,
  21-56  including a medical history and the problem for which the patient
  21-57  is seeking treatment, to determine whether a prospective patient
  21-58  should be examined by a physician to determine if admission is
  21-59  clinically justified.
  21-60              (3)  "Intake" means the administrative process for
  21-61  gathering information about a prospective patient and giving a
  21-62  prospective patient information about the facility and the
  21-63  facility's treatment and services.
  21-64        SECTION 4.04.  Subsections (a), (b), and (d), Section
  21-65  574.081, Health and Safety Code, are amended to read as follows:
  21-66        (a)  The physician responsible for the patient's treatment
  21-67  <facility administrator> shall prepare a continuing care plan for a
  21-68  patient who is scheduled to be furloughed or discharged unless <if>
  21-69  the patient does not require <requires> continuing care.
  21-70        (b)  The physician <facility administrator> shall prepare the
   22-1  plan as prescribed by department rules and shall consult the
   22-2  patient and the mental health authority in the area in which the
   22-3  patient will reside before preparing the plan.  The mental health
   22-4  authority is not required to participate in preparing a plan for a
   22-5  patient furloughed or discharged from a private mental health
   22-6  facility.
   22-7        (d)  The physician <facility administrator> shall deliver the
   22-8  plan and other appropriate information to the community center or
   22-9  other provider that will deliver the services if:
  22-10              (1)  the services are provided by:
  22-11                    (A)  a community center or other provider that
  22-12  serves the county in which the patient will reside and that has
  22-13  been designated by the commissioner to perform continuing care
  22-14  services; or
  22-15                    (B)  any other provider that agrees to accept the
  22-16  referral; and
  22-17              (2)  the provision of care by the center or provider is
  22-18  appropriate.
  22-19        SECTION 4.05.  Section 574.081, Health and Safety Code, is
  22-20  amended by adding Subsection (f) to read as follows:
  22-21        (f)  A physician who believes that a patient does not require
  22-22  continuing care and who does not prepare a continuing care plan
  22-23  under this section shall document in the patient's treatment record
  22-24  the reasons for that belief.
  22-25        SECTION 4.06.  Section 576.008, Health and Safety Code, is
  22-26  amended to read as follows:
  22-27        Sec. 576.008.  NOTIFICATION OF PROTECTION AND ADVOCACY
  22-28  SYSTEM.  A patient shall be informed in writing, at the time of
  22-29  admission and <or> discharge, of the existence, purpose, telephone
  22-30  number, and address of the protection and advocacy system
  22-31  established in this state under the federal Protection and Advocacy
  22-32  for Mentally Ill Individuals Act of 1986 (42 U.S.C. Sec. 10801, et
  22-33  seq.).
  22-34        SECTION 4.07.  Chapter 577, Health and Safety Code, is
  22-35  amended by adding Section 577.0101 to read as follows:
  22-36        Sec. 577.0101.  NOTIFICATION OF TRANSFER OR REFERRAL.
  22-37  (a)  The board shall adopt rules governing the transfer or referral
  22-38  of a patient from a private mental hospital to an inpatient mental
  22-39  health facility.
  22-40        (b)  The rules must provide that before a private mental
  22-41  hospital may transfer or refer a patient, the hospital must:
  22-42              (1)  provide to the receiving inpatient mental health
  22-43  facility notice of the hospital's intent to transfer a patient;
  22-44              (2)  provide to the receiving inpatient mental health
  22-45  facility information relating to the patient's diagnosis and
  22-46  condition; and
  22-47              (3)  obtain verification from the receiving inpatient
  22-48  mental health facility that the facility has the space, personnel,
  22-49  and services necessary to provide appropriate care to the patient.
  22-50        (c)  The rules must also require that the private mental
  22-51  hospital send the patient's appropriate records, or a copy of the
  22-52  records, if any, to the receiving inpatient mental health facility.
  22-53        SECTION 4.08.  Subchapter B, Chapter 462, Health and Safety
  22-54  Code, is amended by adding Section 462.025 to read as follows:
  22-55        Sec. 462.025.  INTAKE, ASSESSMENT, AND ADMISSION.  (a)  The
  22-56  commission shall adopt rules governing the voluntary admission of a
  22-57  patient to a treatment facility, including rules governing the
  22-58  intake and assessment procedures of the admission process.
  22-59        (b)  The rules governing the intake process shall establish
  22-60  minimum standards for:
  22-61              (1)  reviewing a prospective patient's finances and
  22-62  insurance benefits;
  22-63              (2)  explaining to a prospective patient the patient's
  22-64  rights; and
  22-65              (3)  explaining to a prospective patient the facility's
  22-66  services and treatment process.
  22-67        (c)  The assessment provided for by the rules may be
  22-68  conducted only by a professional who meets the qualifications
  22-69  prescribed by commission rules.
  22-70        (d)  The rules governing the assessment process shall
   23-1  prescribe:
   23-2              (1)  the types of professionals who may conduct an
   23-3  assessment;
   23-4              (2)  the minimum credentials each type of professional
   23-5  must have to conduct an assessment; and
   23-6              (3)  the type of assessment that professional may
   23-7  conduct.
   23-8        (e)  In accordance with commission rule, a treatment facility
   23-9  shall provide annually a minimum of eight hours of inservice
  23-10  training regarding intake and assessment for persons who will be
  23-11  conducting an intake or assessment for the facility.  A person may
  23-12  not conduct intake or assessments without having completed the
  23-13  initial and applicable annual inservice training.
  23-14        (f)  A prospective voluntary patient may not be formally
  23-15  accepted for chemical dependency treatment in a treatment facility
  23-16  unless the facility's administrator or a person designated by the
  23-17  administrator has agreed to accept the prospective patient and has
  23-18  signed a statement to that effect.
  23-19        (g)  An assessment conducted as required by rules adopted
  23-20  under this section does not satisfy a statutory or regulatory
  23-21  requirement for a personal evaluation of a patient or a prospective
  23-22  patient by a qualified professional before admission.
  23-23        (h)  In this section:
  23-24              (1)  "Admission" means the formal acceptance of a
  23-25  prospective patient to a treatment facility.
  23-26              (2)  "Assessment" means the administrative process a
  23-27  treatment facility uses to gather information from a prospective
  23-28  patient, including a medical history and the problem for which the
  23-29  patient is seeking treatment, to determine whether a prospective
  23-30  patient should be admitted.
  23-31              (3)  "Intake" means the administrative process for
  23-32  gathering information about a prospective patient and giving a
  23-33  prospective patient information about the treatment facility and
  23-34  the facility's treatment and services.
  23-35        SECTION 4.09.  This article takes effect immediately.
  23-36                               ARTICLE 5
  23-37        SECTION 5.01.  Subtitle C, Title 7, Health and Safety Code,
  23-38  is amended by adding Chapter 578 to read as follows:
  23-39          CHAPTER 578.  ELECTROCONVULSIVE AND OTHER THERAPIES
  23-40        Sec. 578.001.  APPLICATION.  This chapter applies to the use
  23-41  of electroconvulsive therapy by any person, including a private
  23-42  physician who uses the therapy on an outpatient basis.
  23-43        Sec. 578.002.  USE OF ELECTROCONVULSIVE THERAPY.
  23-44  (a)  Electroconvulsive therapy may not be used on a person who is
  23-45  younger than 16 years of age.
  23-46        (b)  Unless the person consents to the use of the therapy in
  23-47  accordance with Section 578.003, electroconvulsive therapy may not
  23-48  be used on:
  23-49              (1)  a person who is 16 years of age or older and who
  23-50  is voluntarily receiving mental health services; or
  23-51              (2)  an involuntary patient who is 16 years of age or
  23-52  older and who has not been adjudicated by an appropriate court of
  23-53  law as incompetent to manage the patient's personal affairs.
  23-54        (c)  Electroconvulsive therapy may not be used on an
  23-55  involuntary patient who is 16 years of age or older and who has
  23-56  been adjudicated incompetent to manage the patient's personal
  23-57  affairs unless the patient's guardian of the person consents to the
  23-58  treatment in accordance with Section 578.003.  The decision of the
  23-59  guardian must be based on knowledge of what the patient would
  23-60  desire, if known.
  23-61        Sec. 578.003.  CONSENT TO THERAPY.  (a)  The board by rule
  23-62  shall adopt a standard written consent form to be used when
  23-63  electroconvulsive therapy is considered.  The board by rule shall
  23-64  also prescribe the information that must be contained in the
  23-65  written supplement required under Subsection (c).  In addition to
  23-66  the information required under this section, the form must include
  23-67  the information required by the Texas Medical Disclosure Panel for
  23-68  electroconvulsive therapy.  In developing the form, the board shall
  23-69  consider recommendations of the panel.  Use of the consent form
  23-70  prescribed by the board in the manner prescribed by this section
   24-1  creates a rebuttable presumption that the disclosure requirements
   24-2  of Sections 6.05 and 6.06, Medical Liability and Insurance
   24-3  Improvement Act of Texas (Article 4590i, Vernon's Texas Civil
   24-4  Statutes), have been met.
   24-5        (b)  The written consent form must clearly and explicitly
   24-6  state:
   24-7              (1)  the nature and purpose of the procedure;
   24-8              (2)  the nature, degree, duration, and probability of
   24-9  the side effects and significant risks of the treatment commonly
  24-10  known by the medical profession, especially noting the possible
  24-11  degree and duration of memory loss, the possibility of permanent
  24-12  irrevocable memory loss, and the remote possibility of death;
  24-13              (3)  that there is a division of opinion as to the
  24-14  efficacy of the procedure; and
  24-15              (4)  the probable degree and duration of improvement or
  24-16  remission expected with or without the procedure.
  24-17        (c)  Before a patient receives each electroconvulsive
  24-18  treatment, the hospital, facility, or physician administering the
  24-19  therapy shall ensure that:
  24-20              (1)  the patient and the patient's guardian of the
  24-21  person, if any, receives a written copy of the consent form that is
  24-22  in the person's primary language, if possible;
  24-23              (2)  the patient and the patient's guardian of the
  24-24  person, if any, receives a written supplement that contains related
  24-25  information that pertains to the particular patient being treated;
  24-26              (3)  the contents of the consent form and the written
  24-27  supplement are explained to the patient and the patient's guardian
  24-28  of the person, if any:
  24-29                    (A)  orally, in simple, nontechnical terms in the
  24-30  person's primary language, if possible; or
  24-31                    (B)  through the use of a means reasonably
  24-32  calculated to communicate with a hearing impaired or visually
  24-33  impaired person, if applicable;
  24-34              (4)  the patient or the patient's guardian of the
  24-35  person, as appropriate, signs a copy of the consent form stating
  24-36  that the person has read the consent form and the written
  24-37  supplement and understands the information included in the
  24-38  documents; and
  24-39              (5)  the signed copy is made a part of the patient's
  24-40  clinical record.
  24-41        (d)  Consent given under this section is not valid unless the
  24-42  person giving the consent understands the information presented and
  24-43  consents voluntarily and without coercion or undue influence.
  24-44        Sec. 578.004.  WITHDRAWAL OF CONSENT.  (a)  A patient or
  24-45  guardian who consents to the administration of electroconvulsive
  24-46  therapy may revoke the consent for any reason and at any time.
  24-47        (b)  Revocation of consent is effective immediately.
  24-48        Sec. 578.005.  PHYSICIAN REQUIREMENT.  (a)  Only a physician
  24-49  may administer electroconvulsive therapy.
  24-50        (b)  A physician may not delegate the act of administering
  24-51  the therapy.  A nonphysician who administers electroconvulsive
  24-52  therapy is considered to be practicing medicine in violation of the
  24-53  Medical Practice Act (Article 4495b, Vernon's Texas Civil
  24-54  Statutes).
  24-55        Sec. 578.006.  REGISTRATION OF EQUIPMENT.  (a)  A person may
  24-56  not administer electroconvulsive therapy unless the equipment used
  24-57  to administer the therapy is registered with the department.
  24-58        (b)  A mental hospital or facility administering
  24-59  electroconvulsive therapy or a private physician administering the
  24-60  therapy on an outpatient basis must file an application for
  24-61  registration under this section.  The applicant must submit the
  24-62  application to the department on a form prescribed by the
  24-63  department.
  24-64        (c)  The application must be accompanied by a nonrefundable
  24-65  application fee.  The board shall set the fee in a reasonable
  24-66  amount not to exceed the cost to the department to administer this
  24-67  section.
  24-68        (d)  The application must contain:
  24-69              (1)  the model, manufacturer, and age of each piece of
  24-70  equipment used to administer the therapy; and
   25-1              (2)  any other information required by the department.
   25-2        (e)  The department may conduct an investigation as
   25-3  considered necessary after receiving the proper application and the
   25-4  required fee.
   25-5        (f)  The board by rule may prohibit the registration and use
   25-6  of equipment of a type, model, or age the board determines is
   25-7  dangerous.
   25-8        (g)  The department may deny, suspend, or revoke a
   25-9  registration if the department determines that the equipment is
  25-10  dangerous.  The denial, suspension, or revocation of a registration
  25-11  is a contested case under the Administrative Procedure and Texas
  25-12  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes).
  25-13        Sec. 578.007.  REPORTS.  (a)  A mental hospital or facility
  25-14  administering electroconvulsive therapy, psychosurgery, pre-frontal
  25-15  sonic sound treatment, or any other convulsive or coma-producing
  25-16  therapy administered to treat mental illness or a physician
  25-17  administering the therapy on an outpatient basis shall submit to
  25-18  the department quarterly reports relating to the administration of
  25-19  the therapy in the hospital or facility or by the physician.
  25-20        (b)  A report must state for each quarter:
  25-21              (1)  the number of patients who received the therapy,
  25-22  including:
  25-23                    (A)  the number of persons voluntarily receiving
  25-24  mental health services who consented to the therapy;
  25-25                    (B)  the number of involuntary patients who
  25-26  consented to the therapy; and
  25-27                    (C)  the number of involuntary patients for whom
  25-28  a guardian of the person consented to the therapy;
  25-29              (2)  the age, sex, and race of the persons receiving
  25-30  the therapy;
  25-31              (3)  the source of the treatment payment;
  25-32              (4)  the average number of nonelectroconvulsive
  25-33  treatments;
  25-34              (5)  the average number of electroconvulsive treatments
  25-35  administered for each complete series of treatments, but not
  25-36  including maintenance treatments;
  25-37              (6)  the average number of maintenance
  25-38  electroconvulsive treatments administered per month;
  25-39              (7)  the number of fractures, reported memory losses,
  25-40  incidents of apnea, and cardiac arrests without death;
  25-41              (8)  autopsy findings if death followed within 14 days
  25-42  after the date of the administration of the therapy; and
  25-43              (9)  any other information required by the department.
  25-44        Sec. 578.008.  USE OF INFORMATION; REPORT.  (a)  The
  25-45  department shall use the information received under Sections
  25-46  578.006 and 578.007 to analyze, audit, and monitor the use of
  25-47  electroconvulsive therapy, psychosurgery, pre-frontal sonic sound
  25-48  treatment, or any other convulsive or coma-producing therapy
  25-49  administered to treat mental illness.
  25-50        (b)  The department shall file annually with the governor and
  25-51  the presiding officer of each house of the legislature a written
  25-52  report summarizing by facility the information received under
  25-53  Sections 578.006 and 578.007.  If the therapy is administered by a
  25-54  private physician on an outpatient basis, the report must include
  25-55  that information but may not identify the physician.  The
  25-56  department may not directly or indirectly identify in a report
  25-57  issued under this section a patient who received the therapy.
  25-58        SECTION 5.02.  This article takes effect September 1, 1993,
  25-59  except:
  25-60              (1)  Subsection (a), Section 578.002 and Section
  25-61  578.005, Health and Safety Code, as added by this article, take
  25-62  effect immediately;
  25-63              (2)  equipment in use to administer electroconvulsive
  25-64  therapy on the effective date of Section 578.006, Health and Safety
  25-65  Code, as added by this article, is not required to be registered
  25-66  under that section before January 1, 1994;
  25-67              (3)  a person administering electroconvulsive therapy
  25-68  shall file an initial report as prescribed by Section 578.007,
  25-69  Health and Safety Code, as added by this article, not later than
  25-70  September 15, 1993, for the period beginning June 1, 1993, and
   26-1  ending August 31, 1993; and
   26-2              (4)  the Texas Department of Mental Health and Mental
   26-3  Retardation shall file the initial report required under Subsection
   26-4  (b), Section 578.008, Health and Safety Code, as added by this
   26-5  article, not later than February 15, 1994, which report must
   26-6  summarize the information the department receives on or before
   26-7  January 1, 1994.
   26-8                               ARTICLE 6
   26-9        SECTION 6.01.  Subdivision (3), Section 311.031, Health and
  26-10  Safety Code, is amended to read as follows:
  26-11              (3)  "Hospital" means:
  26-12                    (A)  a general or special hospital licensed under
  26-13  Chapter 241;
  26-14                    (B)  a private mental hospital licensed under
  26-15  Chapter 577; and
  26-16                    (C)  a treatment facility licensed under Chapter
  26-17  464 <(Texas Hospital Licensing Law)>.
  26-18        SECTION 6.02.  Subchapter C, Chapter 311, Health and Safety
  26-19  Code, is amended by adding Section 311.0335 to read as follows:
  26-20        Sec. 311.0335.  MENTAL HEALTH AND CHEMICAL DEPENDENCY DATA.
  26-21  (a)  A hospital that provides mental health or chemical dependency
  26-22  services shall submit to the department financial and utilization
  26-23  data relating to the mental health and chemical dependency services
  26-24  provided by the hospital, including data for inpatient and
  26-25  outpatient services relating to:
  26-26              (1)  patient demographics, including race, ethnicity,
  26-27  age, gender, and county of residence;
  26-28              (2)  admissions;
  26-29              (3)  discharges, including length of inpatient
  26-30  treatment;
  26-31              (4)  specific diagnoses and procedures according to
  26-32  criteria prescribed by the Diagnostic and Statistical Manual of
  26-33  Mental Disorders, 3rd Edition, Revised, or a later version
  26-34  prescribed by the department;
  26-35              (5)  total charges and the components of the charges;
  26-36              (6)  payor sources; and
  26-37              (7)  use of mechanical restraints.
  26-38        (b)  The data must be submitted in the form and at the time
  26-39  established by the department.
  26-40        SECTION 6.03.  Section 311.035, Health and Safety Code, is
  26-41  amended by adding Subsection (c) to read as follows:
  26-42        (c)  The department shall enter into an interagency agreement
  26-43  with the Texas Department of Mental Health and Mental Retardation,
  26-44  Texas Commission on Alcohol and Drug Abuse, and Texas Department of
  26-45  Insurance relating to the mental health and chemical dependency
  26-46  hospital discharge data collected under Section 311.0335.  The
  26-47  agreement shall address the collection, analysis, and sharing of
  26-48  the data by the agencies.
  26-49        SECTION 6.04.  Subsection (b), Section 311.038, Health and
  26-50  Safety Code, is amended to read as follows:
  26-51        (b)  The advisory committee must include representatives
  26-52  from:
  26-53              (1)  the hospital industry, including private mental
  26-54  hospitals and chemical dependency treatment facilities;
  26-55              (2)  private business;
  26-56              (3)  the insurance industry;
  26-57              (4)  state agencies, such as the Texas Department of
  26-58  Human Services, <and> Employees Retirement System of Texas, Texas
  26-59  Department of Mental Health and Mental Retardation, Texas
  26-60  Commission on Alcohol and Drug Abuse, and Texas Department of
  26-61  Insurance;
  26-62              (5)  consumer organizations; and
  26-63              (6)  the Statewide Health Coordinating Council.
  26-64                               ARTICLE 7
  26-65        SECTION 7.01.  Section 11.52, Education Code, is amended by
  26-66  adding Subsections (p) and (q) to read as follows:
  26-67        (p)  The commissioner of education shall adopt rules
  26-68  governing the relationship between a school district and an outside
  26-69  counselor to whom a student may be referred for care or treatment
  26-70  of an emotional, psychological, or chemical dependency condition,
   27-1  including rules that:
   27-2              (1)  require the school district and the outside
   27-3  counselor to disclose to the student and the parent, managing
   27-4  conservator, or guardian of the student the relationship between
   27-5  the district and the outside counselor to whom the student is
   27-6  referred for care or treatment;
   27-7              (2)  require the school to inform the student and the
   27-8  parent, managing conservator, or guardian of the student, as
   27-9  appropriate, of any public and private alternative sources of care
  27-10  or treatment reasonably available in the area;
  27-11              (3)  require the approval of appropriate school
  27-12  district personnel before the counselor refers a student for care
  27-13  or treatment or suggests to or advises a student that a referral is
  27-14  warranted; and
  27-15              (4)  specifically prohibit the disclosure of student
  27-16  records if the disclosure violates state or federal law.
  27-17        (q)  The commissioner of education shall adopt rules that
  27-18  specify procedures to be followed in an emergency or crisis
  27-19  situation in which a district may request counseling services from
  27-20  a private treatment facility.
  27-21        SECTION 7.02.  Chapter 4, Education Code, is amended by
  27-22  adding Section 4.36 to read as follows:
  27-23        Sec. 4.36.  ILLEGAL REFERRAL FOR CARE OR TREATMENT.  A person
  27-24  who violates a rule adopted under Section 11.52(p) of this code:
  27-25              (1)  is subject to a civil penalty of not less than $50
  27-26  or more than $25,000 recoverable by an aggrieved student or parent
  27-27  or by the Central Education Agency in a court located in the county
  27-28  in which the student or defendant resides or in Travis County; and
  27-29              (2)  commits a misdemeanor offense punishable by a fine
  27-30  of not less than $50 or more than $25,000, confinement in jail for
  27-31  not more than one year, or both fine and confinement.
  27-32                               ARTICLE 8
  27-33        SECTION 8.01.  Except as otherwise provided by this Act, this
  27-34  Act takes effect September 1, 1993.
  27-35        SECTION 8.02.  (a)  The changes in law made by this Act apply
  27-36  only to an offense committed or a violation that occurs on or after
  27-37  the effective date of this Act.  For the purposes of this Act, an
  27-38  offense is committed or a violation occurs before the effective
  27-39  date of this Act if any element of the offense or violation occurs
  27-40  before that date.
  27-41        (b)  An offense committed or violation that occurs before the
  27-42  effective date of this Act is covered by the law in effect when the
  27-43  offense was committed or the violation occurred, and the former law
  27-44  is continued in effect for this purpose.
  27-45        SECTION 8.03.  The importance of this legislation and the
  27-46  crowded condition of the calendars in both houses create an
  27-47  emergency and an imperative public necessity that the
  27-48  constitutional rule requiring bills to be read on three several
  27-49  days in each house be suspended, and this rule is hereby suspended,
  27-50  and that this Act take effect and be in force according to its
  27-51  terms, and it is so enacted.
  27-52                               * * * * *
  27-53                                                         Austin,
  27-54  Texas
  27-55                                                         March 19, 1993
  27-56  Hon. Bob Bullock
  27-57  President of the Senate
  27-58  Sir:
  27-59  We, your Committee on Health and Human Services to which was
  27-60  referred S.B. No. 205, have had the same under consideration, and I
  27-61  am instructed to report it back to the Senate with the
  27-62  recommendation that it do not pass, but that the Committee
  27-63  Substitute adopted in lieu thereof do pass and be printed.
  27-64                                                         Zaffirini,
  27-65  Chair
  27-66                               * * * * *
  27-67                               WITNESSES
  27-68                                                  FOR   AGAINST  ON
  27-69  ___________________________________________________________________
  27-70  Name:  Dan Morales                                             x
   28-1  Representing:  State of Texas
   28-2  City:  Austin
   28-3  -------------------------------------------------------------------
   28-4  Name:  Dr. Charles Arnold                        x
   28-5  Representing:  Self
   28-6  City:  San Antonio
   28-7  -------------------------------------------------------------------
   28-8  Name:  John D. Son                               x             x
   28-9  Representing:  Self
  28-10  City:  Checotah
  28-11  -------------------------------------------------------------------
  28-12  Name:  Neva Duke                                               x
  28-13  Representing:  Self
  28-14  City:  Huntsville
  28-15  -------------------------------------------------------------------
  28-16  Name:  Orvie Nix                                               x
  28-17  Representing:  Xuest Professional Services
  28-18  City:  Amarillo
  28-19  -------------------------------------------------------------------
  28-20  Name:  David F. Briones, M.D.                                  x
  28-21  Representing:  TSPP & TMA
  28-22  City:  El Paso
  28-23  -------------------------------------------------------------------
  28-24  Name:  Karen Wagner                              x
  28-25  Representing:  TSPP & TMA
  28-26  City:  Galveston
  28-27  -------------------------------------------------------------------
  28-28  Name:  Douglas Gough Cameron                     x
  28-29  Representing:  Cmte for Truth in Psychiatry
  28-30  City:  San Marcos
  28-31  -------------------------------------------------------------------
  28-32  Name:  Florence Winn-Salmon                      x
  28-33  Representing:  Texas Alliance f/t Mentally
  28-34  City:  Austin
  28-35  -------------------------------------------------------------------
  28-36  Name:  Ben Marroquin                                           x
  28-37  Representing:  Texas Dept MHMR
  28-38  City:  Austin
  28-39  -------------------------------------------------------------------
  28-40  Name:  Venora B. Oliver                          x
  28-41  Representing:  Self
  28-42  City:  Dallas
  28-43  -------------------------------------------------------------------
  28-44  Name:  Maurice Shaw                                            x
  28-45  Representing:  TDH
  28-46  City:  Austin
  28-47  -------------------------------------------------------------------
  28-48  Name:  Jerry Boswell                             x
  28-49  Representing:  Citzen Comm. on Human Rights
  28-50  City:  Austin
  28-51  -------------------------------------------------------------------
  28-52  Name:  Matt Donaldson                            x
  28-53  Representing:  Consumer Health Services
  28-54  City:  Boulder
  28-55  -------------------------------------------------------------------
  28-56  Name:  Tom Wright                                              x
  28-57  Representing:  Citizens Comm on Human Rights
  28-58  City:  Houston
  28-59  -------------------------------------------------------------------
  28-60  Name:  Dianna Loper                              x
  28-61  Representing:  Self
  28-62  City:  Houston
  28-63  -------------------------------------------------------------------
  28-64  Name:  Mary Dees                                 x
  28-65  Representing:  Tx Mental Health Consumers
  28-66  City:  Austin
  28-67  -------------------------------------------------------------------
  28-68                                                  FOR   AGAINST  ON
  28-69  ___________________________________________________________________
  28-70  Name:  Wylie Jordon                              x
   29-1  Representing:  Self
   29-2  City:  Austin
   29-3  -------------------------------------------------------------------
   29-4  Name:  Dr. Alaire Lowry                                        x
   29-5  Representing:  Tx Psychological Asso.
   29-6  City:  Austin
   29-7  -------------------------------------------------------------------
   29-8  Name:  Don Cavness                                             x
   29-9  Representing:  Tx Psychological Asso.
  29-10  City:  Austin
  29-11  -------------------------------------------------------------------
  29-12  Name:  Nancy Sims                                x
  29-13  Representing:  Tx Business Group on Health
  29-14  City:  Houston
  29-15  -------------------------------------------------------------------
  29-16  Name:  Paul Mascot                                             x
  29-17  Representing:  TxMHMR
  29-18  City:  Austin
  29-19  -------------------------------------------------------------------
  29-20  Name:  Lacey Sloan                               x
  29-21  Representing:  Tx Assoc. Against Sexual Asslt
  29-22  City:  Austin
  29-23  -------------------------------------------------------------------
  29-24  Name:  Mike Ezzell                                             x
  29-25  Representing:  TCACA
  29-26  City:  Austin
  29-27  -------------------------------------------------------------------
  29-28  Name:  William Conrad Archer                             x
  29-29  Representing:  Self
  29-30  City:  Austin
  29-31  -------------------------------------------------------------------
  29-32  Name:  Valerie Arlitt-Mead                                     x
  29-33  Representing:  Tx Head Injury Asso
  29-34  City:  Austin
  29-35  -------------------------------------------------------------------
  29-36  Name:  Aaryce Hayes                              x
  29-37  Representing:  Advicacy, Inc
  29-38  City:  Austin
  29-39  -------------------------------------------------------------------
  29-40  Name:  Judy Cook                                               x
  29-41  Representing:  MHMR
  29-42  City:  Hughes Springs
  29-43  -------------------------------------------------------------------
  29-44  Name:  Joanne P. Hopkins                                       x
  29-45  Representing:  National Medical Enterprise
  29-46  City:  Austin
  29-47  -------------------------------------------------------------------
  29-48  Name:  Marcia Baum                               x
  29-49  Representing:  NASW
  29-50  City:  Austin
  29-51  -------------------------------------------------------------------
  29-52  Name:  Christine Devall                          x
  29-53  Representing:  Mental Health Assn in Tx
  29-54  City:  Austin
  29-55  -------------------------------------------------------------------
  29-56  Name:  Mark D. Chouteau                          x
  29-57  Representing:  AG's Office
  29-58  City:  Austin
  29-59  -------------------------------------------------------------------
  29-60  Name:  Julie Finan                                       x
  29-61  Representing:  Self
  29-62  City:  Houston
  29-63  -------------------------------------------------------------------
  29-64  Name:  William Johnson                           x
  29-65  Representing:  Self
  29-66  City:  Austin
  29-67  -------------------------------------------------------------------
  29-68                                                  FOR   AGAINST  ON
  29-69  ___________________________________________________________________
  29-70  Name:  Crandall Gage                                     x
   30-1  Representing:  Self
   30-2  City:  Houston
   30-3  -------------------------------------------------------------------
   30-4  Name:  Christopher Zientek                               x
   30-5  Representing:  Self
   30-6  City:  Houston
   30-7  -------------------------------------------------------------------
   30-8  Name:  G. K. Sprinkle                            x
   30-9  Representing:  Tx Counseling Assoc.
  30-10  City:  Austin
  30-11  -------------------------------------------------------------------
  30-12  Name:  Charles Stark                                           x
  30-13  Representing:  Healthsouth Rehab Fort Worth
  30-14  City:  North Richland Hills
  30-15  -------------------------------------------------------------------
  30-16  Name:  Susan Medlin                              x
  30-17  Representing:  Self
  30-18  City:  Austin
  30-19  -------------------------------------------------------------------
  30-20  Name:  Nicholas Weeks                            x
  30-21  Representing:  Self
  30-22  City:  Austin
  30-23  -------------------------------------------------------------------
  30-24  Name:  Karen Hale                                              x
  30-25  Representing:  MHMR
  30-26  City:  Austin
  30-27  -------------------------------------------------------------------
  30-28  Name:  Lisa McGiffert                            x
  30-29  Representing:  Consumers Union
  30-30  City:  Austin
  30-31  -------------------------------------------------------------------
  30-32  Name:  Kevin O'Hanlon                                          x
  30-33  Representing:  Texas Education Agency
  30-34  City:  Austin
  30-35  -------------------------------------------------------------------