74R10238 DLF-D
          By Hochberg                                            H.B. No. 299
          Substitute the following for H.B. No. 299:
          By McDonald                                        C.S.H.B. No. 299
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to violations of rules or statutes applicable to personal
    1-3  care facilities.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 247.002, Health and Safety Code, is
    1-6  amended to read as follows:
    1-7        Sec. 247.002.  DEFINITIONS.  In this chapter:
    1-8              (1)  "Board" means the Texas Board of Human Services
    1-9  <Health>.
   1-10              (2)  "Department" means the Texas Department of Human
   1-11  Services <Health>.
   1-12              (3)  "Commissioner" means the commissioner of human
   1-13  services.
   1-14              (4)  "Personal care facility" means an establishment,
   1-15  including a board and care home, that:
   1-16                    (A)  furnishes, in one or more facilities, food
   1-17  and shelter to four or more persons who are unrelated to the
   1-18  proprietor of the establishment; and
   1-19                    (B)  provides personal care services.
   1-20              (5) <(4)>  "Personal care services" means:
   1-21                    (A)  assistance with meals, dressing, movement,
   1-22  bathing, or other personal needs or maintenance;
   1-23                    (B)  the administration of medication by a person
   1-24  licensed to administer medication or the assistance with or
    2-1  supervision of medication; or
    2-2                    (C)  general supervision or oversight of the
    2-3  physical and mental well-being of a person who needs assistance to
    2-4  maintain a private and independent residence in a personal care
    2-5  facility or who needs assistance to manage the person's personal
    2-6  life, regardless of whether a guardian has been appointed for the
    2-7  person.
    2-8              (6) <(5)>  "Qualified religious society" means a
    2-9  church, synagogue, or other organization or association that is
   2-10  organized primarily for religious purposes and that:
   2-11                    (A)  has been in existence in this state for at
   2-12  least 35 years; and
   2-13                    (B)  does not distribute any of its income to its
   2-14  members, officers, or governing body other than as reasonable
   2-15  compensation for services or reimbursement of expenses.
   2-16        SECTION 2.  Section 247.027, Health and Safety Code, is
   2-17  amended to read as follows:
   2-18        Sec. 247.027.  Inspections.  (a)  In addition to the
   2-19  inspection required under Section 247.023(a), the department may
   2-20  inspect a personal care facility at reasonable times as necessary
   2-21  to assure compliance with this chapter.
   2-22        (b)  The department shall develop an inspection checklist
   2-23  based on the minimum standards that describes the matters subject
   2-24  to inspection.  The department shall use the inspection checklist
   2-25  in conducting inspections under this section and under Section
   2-26  247.023(a).  The department shall provide the inspection checklist
   2-27  to a facility on request and, if the inspection checklist is
    3-1  modified, the department shall provide a copy of the modified
    3-2  inspection checklist to each facility when the facility renews its
    3-3  license.
    3-4        SECTION 3.  Subchapter B, Chapter 247, Health and Safety
    3-5  Code, is amended by adding Section 247.0275 to read as follows:
    3-6        Sec. 247.0275.  INSPECTION EXIT CONFERENCE; INFORMAL REVIEW.
    3-7  (a)  After any inspection under Section 247.023(a) or 247.027
    3-8  performed by the department or another entity under contract with
    3-9  the department, the inspector shall conduct an exit conference to:
   3-10              (1)  advise the personal care facility of the findings
   3-11  resulting from the inspection;
   3-12              (2)  permit the facility to provide appropriate
   3-13  information to the department; and
   3-14              (3)  permit the facility to correct any deficiencies
   3-15  that can be corrected immediately.
   3-16        (b)  At the exit conference, the inspector shall provide a
   3-17  copy of the inspection checklist and list each violation discovered
   3-18  during the inspection, with specific reference to the standard
   3-19  violated.
   3-20        (c)  An inspector who decides, after the exit conference,
   3-21  that the personal care facility may be committing a violation not
   3-22  listed at the exit conference shall contact the management of the
   3-23  personal care facility and provide an opportunity for another exit
   3-24  conference.  A subsequent exit conference may be conducted by
   3-25  telephone.
   3-26        (d)  If, after the initial exit conference, the personal care
   3-27  facility had been requested or required to take action within a
    4-1  specified period and a subsequent exit conference is conducted
    4-2  under Subsection (c), the period begins on the date of the
    4-3  subsequent exit conference.
    4-4        (e)  At the request of a personal care facility that does not
    4-5  agree with an inspector's findings, the regional director with
    4-6  supervisory authority over the inspector who conducted the
    4-7  inspection shall conduct an informal review with respect to the
    4-8  findings.  The informal review may be conducted by another person
    4-9  who has supervisory authority over the inspector and who is
   4-10  designated by the regional director to conduct the review.
   4-11        (f)  At the request of the personal care facility, an
   4-12  informal review under Subsection (e) may be conducted in person at
   4-13  an office of the department.  The department may not unreasonably
   4-14  deny a request made under this subsection.
   4-15        (g)  The right to an exit conference and informal review
   4-16  granted by this section is in addition to the rights granted by
   4-17  Section 247.041(b).
   4-18        SECTION 4.  Subchapter C, Chapter 247, Health and Safety
   4-19  Code, is amended by adding Sections 247.0451-247.0453 to read as
   4-20  follows:
   4-21        Sec. 247.0451.  ADMINISTRATIVE PENALTY.  (a)  The department,
   4-22  after notice and an opportunity for hearing, may assess an
   4-23  administrative penalty against a person who violates this chapter
   4-24  or a rule adopted under this chapter, including  a person who
   4-25  violates Section 247.021.
   4-26        (b)  The department shall establish an advisory committee of
   4-27  consumer advocates and personal care providers to develop a
    5-1  schedule of maximum penalties to be applied to separate categories
    5-2  of violations of this chapter or of rules adopted under this
    5-3  chapter.  In establishing the maximum penalty for a category of
    5-4  violation, the committee shall consider the seriousness of the
    5-5  violation and the amount necessary to deter future violations.  The
    5-6  board by rule shall adopt a schedule of maximum penalties after
    5-7  considering the recommendations of the advisory committee.  A
    5-8  penalty established under this subsection may not exceed $1,000.
    5-9        (c)  For purposes of assessing a penalty, each day of a
   5-10  continuing violation constitutes a separate violation.
   5-11        (d)  An administrative penalty assessed against a person for
   5-12  a violation may not exceed the amount specified for that category
   5-13  of violation in the schedule adopted by the board.  In determining
   5-14  the amount of the penalty assessed under this section, the
   5-15  department shall consider:
   5-16              (1)  the history of previous violations;
   5-17              (2)  efforts made to correct the violation;
   5-18              (3)  whether the facility made a good faith effort to
   5-19  abide by the inspection checklist developed by the department under
   5-20  Section 247.027; and
   5-21              (4)  any other matters that justice may require.
   5-22        (e)  All proceedings for the assessment of an administrative
   5-23  penalty under this chapter are subject to Chapter 2001, Government
   5-24  Code.
   5-25        Sec. 247.0452.  PAYMENT OF ADMINISTRATIVE PENALTY; JUDICIAL
   5-26  REVIEW; REFUND.  (a)  Not later than the 30th day after the date on
   5-27  which the decision requiring payment of an administrative penalty
    6-1  under this chapter is final as provided by Chapter 2001, Government
    6-2  Code, the person shall:
    6-3              (1)  pay the penalty;
    6-4              (2)  pay the penalty and file a petition for judicial
    6-5  review contesting the occurrence of the violation, the amount of
    6-6  the penalty, or both the occurrence of the violation and the amount
    6-7  of the penalty; or
    6-8              (3)  without paying the penalty, file a petition for
    6-9  judicial review contesting the occurrence of the violation, the
   6-10  amount of the penalty, or both the occurrence of the violation and
   6-11  the amount of the penalty.
   6-12        (b)  Within the 30-day period, a person who acts under
   6-13  Subsection (a)(3) may:
   6-14              (1)  stay enforcement of the penalty by:
   6-15                    (A)  paying the penalty to the court for
   6-16  placement in an escrow account; or
   6-17                    (B)  giving to the court a supersedeas bond that
   6-18  is approved by the court for the amount of the penalty and that is
   6-19  effective until all judicial review of the order is final; or
   6-20              (2)  request the court to stay enforcement of the
   6-21  penalty by:
   6-22                    (A)  filing with the court a sworn affidavit of
   6-23  the person stating that the person is financially unable to pay the
   6-24  amount of the penalty and is financially unable to give the
   6-25  supersedeas bond; and
   6-26                    (B)  giving a copy of the affidavit to the
   6-27  department by certified mail.
    7-1        (c)  If the department receives a copy of an affidavit under
    7-2  Subsection (b)(2), the department may file with the court, within
    7-3  five days after the date the copy is received, a contest to the
    7-4  affidavit.  The court shall hold a hearing on the facts alleged in
    7-5  the affidavit as soon as practicable and shall stay the enforcement
    7-6  of the penalty on finding that the alleged facts are true.  The
    7-7  person who files an affidavit has the burden of proving that the
    7-8  person is financially unable to pay the penalty and to give a
    7-9  supersedeas bond.
   7-10        (d)  If the person does not pay the penalty and the
   7-11  enforcement of the penalty is not stayed, the department may refer
   7-12  the matter to the attorney general for collection of the penalty.
   7-13        (e)  Judicial review of the order:
   7-14              (1)  is instituted by filing a petition as provided by
   7-15  Subchapter G, Chapter 2001, Government Code; and
   7-16              (2)  is under the substantial evidence rule.
   7-17        (f)  If the court sustains the occurrence of the violation,
   7-18  the court may uphold or reduce the amount of the penalty and order
   7-19  the person to pay the full or reduced amount of the penalty.  If
   7-20  the court does not sustain the occurrence of the violation, the
   7-21  court shall order that no penalty is owed.
   7-22        (g)  When the judgment of the court becomes final, the court
   7-23  shall proceed under this subsection.  If the person paid the amount
   7-24  of the penalty under Subsection (a)(2) and if that amount is
   7-25  reduced or is not upheld by the court, the court shall order that
   7-26  the department pay the appropriate amount plus accrued interest to
   7-27  the person.  The rate of the interest is the rate charged on loans
    8-1  to depository institutions by the New York Federal Reserve Bank,
    8-2  and the interest shall be paid for the period beginning on the date
    8-3  the penalty was paid and ending on the date the penalty is
    8-4  remitted.  If the person paid the penalty under Subsection
    8-5  (b)(1)(A), or gave a supersedeas bond and if the amount of the
    8-6  penalty is not upheld by the court, the court shall order the
    8-7  release of the escrow account or bond.  If the person paid the
    8-8  penalty under Subsection (b)(1)(A) and the amount of the penalty is
    8-9  reduced, the court shall order that the amount of the penalty be
   8-10  paid to the department from the escrow account and that the
   8-11  remainder of the account be released.  If the person gave a
   8-12  supersedeas bond and if the amount of the penalty is reduced, the
   8-13  court shall order the release of the bond after the person pays the
   8-14  amount.
   8-15        Sec. 247.0453.  PENALTY DEPOSITED IN STATE TREASURY.  A civil
   8-16  or administrative penalty collected under this chapter shall be
   8-17  deposited in the state treasury to the credit of the general
   8-18  revenue fund.
   8-19        SECTION 5.  (a)  This Act takes effect September 1, 1995.
   8-20        (b)  An administrative penalty assessed under Sections
   8-21  247.0451 and 247.0452, Health and Safety Code, as added by this
   8-22  Act, may be assessed only for a violation of Chapter 247, Health
   8-23  and Safety Code, or a rule adopted under that chapter that occurs
   8-24  on or after March 1, 1996.
   8-25        (c)  The Texas Board of Human Services shall adopt the
   8-26  schedule of maximum penalties required by Section 247.0451(b),
   8-27  Health and Safety Code, as added by this Act, not later than
    9-1  February 29, 1996.
    9-2        SECTION 6.  The importance of this legislation and the
    9-3  crowded condition of the calendars in both houses create an
    9-4  emergency and an imperative public necessity that the
    9-5  constitutional rule requiring bills to be read on three several
    9-6  days in each house be suspended, and this rule is hereby suspended.