BILL ANALYSIS C.S.S.B. 158 By: Truan (Luna) 04-19-95 Committee Report (Substituted) BACKGROUND The current disciplinary process of the Texas Commission on Alcohol and Drug Abuse (commission) does not allow the agency to take immediate action against a licensed treatment facility that violates the rules and standards of the commission or threatens the health and safety of a client. The commission can conduct an investigation or inspection of a treatment facility as it considers necessary. If the facility violates the rules, standards, or licensing requirements, the commission has to request that the attorney general file for a temporary restraining order, followed by an injunction to close the facility. After a court hearing is scheduled, a judge must then issue the temporary restraining order that has to be served on the treatment facility. PURPOSE S.B. 158, as substituted, would authorize the executive director of the commission to issue a cease and desist order under certain circumstances. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter A of Chapter 464, Health and Safety code, by adding Section 464.0151 as follows: Sec. 464.0151. CEASE AND DESIST ORDERS. (a) Authorizes the executive director of the commission, after an investigation under Section 464.006, to issue a cease and desist order directing treatment facility to stop certain practices, cease operations or surrender its management to the commission's control after finding that part of this chapter is being violated or a threat to the facility's clients exists. (b) Requires the executive director to obtain approval to issue the order from at least three commissioners at a scheduled or called meeting. The meeting may be by interactive video or telephone conference using procedures under Section 551.121, Government Code. (c) States that an order issued under this secton is effective immediately and continues in effect pending the outcome of the hearing required by this section, and requires the order to give notice of the date and time of a hearing. (d) Requires the commission to hold a hearing not earlier than 11 days or later than 30 days following the issuance of the order unless more time is requested by the facility. A hearing and an appeal of a hearing under this section is governed by Chapter 2001, Government Code. (e) Requires the executive director to continue, modify, or revoke the order in accordance with the results of the hearing. SECTION 2. Amends Sections 464.015(a) and (c), Health and Safety Code, as follows: (a) Adds reference of cease and desist orders to a provision which allows the commission to petition a district court to restrain a person or facility that fails to comply with an order or with rules, standards, or licensing requirements provided under this subchapter. Deletes the qualification that the violation is "in a manner that causes immediate threat to the health and safety of individual clients." (c) Adds reference of cease and desist orders to a provision requiring a district court to grant any prohibitory or mandatory injunctive relief warranted by the facts if a person or facility violates a cease and desist order, in addition to any standard adopted under this subchapter. SECTION 3. Emergency clause. Effective date: upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute for S.B. 158 adds breech of contract with the commission as a ground for issuing a cease and desist order against a facility, after an investigation is conducted. The substitute also adds a fourth option to the remedies the executive director may take in issuing a cease and desist order. In addition to the three actions outlined in the original bill, the substitute states that the exectuive director may issue a cease and desist order directing that the facility surrender its management to the direction and control of the commission. The substitute also adds the provision that the executive director must obtain from at least three commissioners ratification of the decision to issue the order before it is issued. SUMMARY OF COMMITTEE ACTION S.B. 158 was heard by the Public Health Committee in a public hearing on March 7, 1995. The following persons testified in favor of the bill: Representative Luna, sponsor of the bill. Cynthia Humphrey, representing Association of Substance Abuse Service Providers. The bill was left pending in committee. S.B. 158 was considered by the committee in a public hearing on April 19, 1995, as pending business. The committee considered a complete substitute to S.B. 158. The substitute was adopted without objection. The bill was reported favorably as substituted, with the recommendaton that it do pass and be printed, by a record vote of 7 Ayes, 0 Nays, 0 PNV, and 2 Absent.