74R9956 DLF-F
          By Coleman, et al.                                    H.B. No. 1023
          Substitute the following for H.B. No. 1023:
          By Coleman                                        C.S.H.B. No. 1023
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to regulation of end stage renal disease facilities;
    1-3  providing penalties.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subtitle B, Title 4, Health and Safety Code, is
    1-6  amended by adding Chapter 251 to read as follows:
    1-7           CHAPTER 251.  END STAGE RENAL DISEASE FACILITIES
    1-8                   SUBCHAPTER A.  GENERAL PROVISIONS
    1-9        Sec. 251.001.  DEFINITIONS.  In this chapter:
   1-10              (1)  "Board" means the Texas Board of Health.
   1-11              (2)  "Commissioner" means the commissioner of public
   1-12  health.
   1-13              (3)  "Department" means the Texas Department of Health.
   1-14              (4)  "Dialysis" means a process by which dissolved
   1-15  substances are removed from a patient's body by diffusion from one
   1-16  fluid compartment to another across a semipermeable membrane.
   1-17              (5)  "Dialysis technician" means an individual who is
   1-18  not a registered nurse or physician and who provides dialysis care
   1-19  under the supervision of a registered nurse or physician.
   1-20              (6)  "End stage renal disease" means that stage of
   1-21  renal impairment that appears irreversible and permanent and that
   1-22  requires a regular course of dialysis or kidney transplantation to
   1-23  maintain life.
   1-24              (7)  "End stage renal disease facility" means a
    2-1  facility that provides dialysis treatment or dialysis training to
    2-2  individuals with end stage renal disease.
    2-3              (8)  "Medical review board" means a medical review
    2-4  board that:
    2-5                    (A)  is appointed by a renal disease network
    2-6  organization, including this state; and
    2-7                    (B)  has a contract with the Health Care
    2-8  Financing Administration of the United States Department of Health
    2-9  and Human Services under Section 1881, Title XVIII, Social Security
   2-10  Act (42 U.S.C. Section 1395rr).
   2-11              (9)  "Physician" means an individual who is licensed to
   2-12  practice medicine under the Medical Practice Act (Article 4495b,
   2-13  Vernon's Texas Civil Statutes).
   2-14        Sec. 251.002.  FEES.  (a)  The board shall set fees imposed
   2-15  by this chapter in amounts reasonable and necessary to defray the
   2-16  cost of administering this chapter.
   2-17        (b)  In setting fees under this section, the board shall
   2-18  consider setting a range of license and renewal fees based on the
   2-19  number of dialysis stations at each end stage renal disease
   2-20  facility and the patient census.
   2-21        (c)  An end stage renal disease facility owned or operated by
   2-22  a state agency is not required to pay fees imposed under this
   2-23  chapter.
   2-24        Sec. 251.003.  ADOPTION OF RULES.  The board shall adopt
   2-25  rules to implement this chapter, including requirements for the
   2-26  issuance, renewal, denial, suspension, and revocation of a license
   2-27  to operate an end stage renal disease facility.
    3-1           (Sections 251.004-251.010 reserved for expansion
    3-2    SUBCHAPTER B.  LICENSING OF END STAGE RENAL DISEASE FACILITIES
    3-3        Sec. 251.011.  LICENSE REQUIRED.  Except as provided by
    3-4  Section 251.012, a person may not operate an end stage renal
    3-5  disease facility without a license issued under this chapter.
    3-6        Sec. 251.012.  EXEMPTIONS FROM LICENSING REQUIREMENT.  The
    3-7  following facilities are not required to be licensed under this
    3-8  chapter:
    3-9              (1)  a home and community support services agency
   3-10  licensed under Chapter 142 with a home dialysis designation;
   3-11              (2)  a hospital licensed under Chapter 241 that
   3-12  provides dialysis only to individuals receiving inpatient services
   3-13  from the hospital; or
   3-14              (3)  the office of a physician  unless the office is
   3-15  used primarily as an end stage renal disease facility.
   3-16        Sec. 251.013.  ISSUANCE AND RENEWAL OF LICENSE.  (a)  An
   3-17  applicant for a license under this chapter must submit an
   3-18  application to the department on a form prescribed by the board.
   3-19        (b)  Each application must be accompanied by a nonrefundable
   3-20  license fee.
   3-21        (c)  Each application must contain evidence that there is at
   3-22  least one qualified physician on the staff of the facility  and
   3-23  that each dialysis technician on staff has completed the training
   3-24  program required by this chapter.
   3-25        (d)  The department may grant a temporary initial license to
   3-26  an applicant.  The temporary initial license expires on the earlier
   3-27  of:
    4-1              (1)  the date the department issues or denies the
    4-2  license; or
    4-3              (2)  the date six months after the date the temporary
    4-4  initial license was issued.
    4-5        (e)  The department shall issue a license if, after
    4-6  inspection and investigation, it finds the applicant meets the
    4-7  requirements of this chapter and the standards adopted under this
    4-8  chapter.
    4-9        (f)  The license is renewable annually after submission of:
   4-10              (1)  the renewal application and fee; and
   4-11              (2)  an annual report on a form prescribed by the
   4-12  board.
   4-13        (g)  The annual report required under Subsection (f) must
   4-14  include information related to the quality of care at the end stage
   4-15  renal disease facility.  The report must be in the form and
   4-16  documented by evidence as required by board rule.
   4-17        Sec. 251.014.  MINIMUM STANDARDS.    The rules adopted under
   4-18  Section 251.003 must contain minimum standards to protect the
   4-19  health and safety of a patient of an end stage renal disease
   4-20  facility, including standards for:
   4-21              (1)  the qualifications and supervision of the
   4-22  professional staff, including physicians, and other personnel;
   4-23              (2)  the equipment used by the facility that is
   4-24  essential to the health and safety of the patients;
   4-25              (3)  the sanitary and hygienic conditions in the
   4-26  facility;
   4-27              (4)  quality assurance for patient care;
    5-1              (5)  the provision and coordination of treatment and
    5-2  services by the facility;
    5-3              (6)  clinical and business records maintained by the
    5-4  facility;
    5-5              (7)  design and space requirements for the facility for
    5-6  safe access by patients and personnel and for ensuring patient
    5-7  privacy;
    5-8              (8)  the management, ownership, and organizational
    5-9  structure of the facility, including lines of authority and
   5-10  delegation of responsibility;
   5-11              (9)  indicators of the quality of care provided by the
   5-12  facility;
   5-13              (10)  water treatment and reuse by the facility; and
   5-14              (11)  any other aspect of end stage renal disease
   5-15  services necessary to protect the public.
   5-16        Sec. 251.015.  MEDICAL REVIEW BOARD.  (a)  A medical review
   5-17  board shall advise the board on minimum standards and rules to be
   5-18  adopted under this chapter.
   5-19        (b)  The medical review board shall review the information on
   5-20  quality of care provided in the annual report filed under Section
   5-21  251.013(f) and other appropriate information provided to or
   5-22  compiled by the department with respect to an end stage renal
   5-23  disease facility.  Based on the review, the medical review board
   5-24  may advise the department about the quality of care provided by a
   5-25  facility and recommend an appropriate corrective action plan under
   5-26  Section 251.061 or other enforcement proceedings against the
   5-27  facility.
    6-1        (c)  Information concerning quality of care provided to or
    6-2  compiled by the department or medical review board and a
    6-3  recommendation of the medical review board are confidential.  The
    6-4  information or recommendation may not be made available for public
    6-5  inspection, is not subject to disclosure under Chapter 552,
    6-6  Government Code, and is not subject to discovery, subpoena, or
    6-7  other compulsory legal process.
    6-8        (d)  The department, in its discretion, may release to a
    6-9  facility information relating to that facility that is made
   6-10  confidential under Subsection (c).  Release of information to a
   6-11  facility under this subsection does not waive the confidentiality
   6-12  of that information or the privilege from compulsory legal process.
   6-13           (Sections 251.016-251.030 reserved for expansion
   6-14                  SUBCHAPTER C.  DIALYSIS TECHNICIANS
   6-15        Sec. 251.031.  TRAINING REQUIRED.  An individual may not act
   6-16  as a dialysis technician employed by or working in an end stage
   6-17  renal disease facility unless that individual is trained and
   6-18  competent under this subchapter.
   6-19        Sec. 251.032.  MINIMUM REQUIREMENTS; TRAINING.  The rules
   6-20  adopted by the board under Section 251.003 shall establish:
   6-21              (1)  minimum standards for the curricula and
   6-22  instructors used to train individuals to act as dialysis
   6-23  technicians;
   6-24              (2)  minimum standards for the determination of the
   6-25  competency of individuals who have been trained as dialysis
   6-26  technicians;
   6-27              (3)  minimum requirements for documentation that an
    7-1  individual has been trained and determined to be competent as a
    7-2  dialysis technician and the acceptance of that documentation by
    7-3  another end stage renal disease facility that may later employ the
    7-4  individual; and
    7-5              (4)  the acts and practices that are allowed or
    7-6  prohibited for dialysis technicians.
    7-7           (Sections 251.033-251.050 reserved for expansion
    7-8                      SUBCHAPTER D.  INSPECTIONS
    7-9        Sec. 251.051.  INSPECTIONS.  (a)  The department may conduct
   7-10  an inspection of  an end stage renal disease facility to verify
   7-11  compliance with this chapter, rules adopted under this chapter, or
   7-12  a corrective action plan under Section 251.061.
   7-13        (b)  An inspection conducted under this section may be
   7-14  unannounced.
   7-15        Sec. 251.052.  DISCLOSURE OF UNANNOUNCED INSPECTION; CRIMINAL
   7-16  PENALTY.  (a)  A person commits an offense if the person
   7-17  intentionally, knowingly, or recklessly discloses to an
   7-18  unauthorized person the date or time of or any other fact about an
   7-19  unannounced inspection of an end stage renal disease facility
   7-20  before the inspection occurs.
   7-21        (b)  In this section, "unauthorized person" does not include:
   7-22              (1)  the department;
   7-23              (2)  the office of the attorney general; or
   7-24              (3)  any other person authorized by law to make an
   7-25  inspection or to accompany an inspector.
   7-26        (c)  An offense under this section is a Class B misdemeanor.
   7-27        (d)  A person convicted under this section is not eligible
    8-1  for state employment.
    8-2           (Sections 251.053-251.060 reserved for expansion
    8-3                      SUBCHAPTER E.  ENFORCEMENT
    8-4        Sec. 251.061.  CORRECTIVE ACTION PLAN.  (a)  The department
    8-5  may use a corrective action plan as an alternative to enforcement
    8-6  action under this subchapter.
    8-7        (b)  Before taking enforcement action under this subchapter,
    8-8  the department shall consider whether the use of a corrective
    8-9  action plan under this section is appropriate.  In determining
   8-10  whether to use a corrective action plan, the department shall
   8-11  consider whether:
   8-12              (1)  the end stage renal disease facility has violated
   8-13  this chapter or a rule adopted under this chapter and the violation
   8-14  has resulted in an adverse patient result;
   8-15              (2)  the facility has a previous history of lack of
   8-16  compliance with this chapter, rules adopted under this chapter, or
   8-17  a corrective action plan; or
   8-18              (3)  the facility fails to agree to a corrective action
   8-19  plan.
   8-20        (c)  The department may use a level one, level two, or level
   8-21  three corrective action plan, as determined by the department in
   8-22  accordance with this section, after inspection of the end stage
   8-23  renal disease facility.
   8-24        (d)  A level one corrective action plan is appropriate if the
   8-25  department finds that the end stage renal disease facility is not
   8-26  in compliance with this chapter or rules adopted under this
   8-27  chapter, but the circumstances are not serious or life-threatening.
    9-1  Under a level one corrective action plan, the department shall
    9-2  require the facility to develop and implement a corrective action
    9-3  plan approved by the department.  The department or a monitor may
    9-4  supervise the implementation of the plan.
    9-5        (e)  A level two corrective action plan is appropriate if the
    9-6  department finds that the end stage renal disease facility is not
    9-7  in compliance with this chapter or rules adopted under this chapter
    9-8  and the circumstances are potentially serious or life-threatening
    9-9  or if the department finds that the facility failed to implement or
   9-10  comply with a level one corrective action plan.  Under a level two
   9-11  corrective action plan, the department shall require the facility
   9-12  to develop and implement a corrective action plan approved by the
   9-13  department.  The department or a monitor shall supervise the
   9-14  implementation of the plan.  Supervision of the implementation of
   9-15  the plan may include on-site supervision, observation, and
   9-16  direction.
   9-17        (f)  A level three corrective action plan is appropriate if
   9-18  the department finds that the end stage renal disease facility is
   9-19  not in compliance with this chapter or rules adopted under this
   9-20  chapter and the circumstances are serious or life-threatening or if
   9-21  the department finds that the facility failed to comply with a
   9-22  level two corrective action plan or to cooperate with the
   9-23  department in connection with that plan.  Under a level three
   9-24  corrective action plan, the department shall require the facility
   9-25  to develop and implement a corrective action plan approved by the
   9-26  department.  In connection with requiring a level three corrective
   9-27  action plan, the department may seek the appointment of a temporary
   10-1  manager under Subchapter F.
   10-2        (g)  A corrective action plan is not confidential.
   10-3  Information contained in the plan may be excepted from required
   10-4  disclosure under Chapter 552, Government Code, in accordance with
   10-5  that chapter or other applicable law.
   10-6        (h)  The department shall select the monitor for a corrective
   10-7  action plan.  The monitor shall be an individual or team of
   10-8  individuals and may include a professional with end stage renal
   10-9  disease experience or a member of the medical review board.  The
  10-10  monitor may not be or include individuals who are current or former
  10-11  employees of the facility that is the subject of the corrective
  10-12  action plan or of an affiliated facility.  The purpose of the
  10-13  monitor is to observe, supervise, consult, and educate the facility
  10-14  and the employees of the facility under a corrective action plan.
  10-15  The facility shall pay the cost of the monitor.
  10-16        Sec. 251.062.  DENIAL, SUSPENSION, OR REVOCATION OF LICENSE.
  10-17  (a)  The department may deny, suspend, or revoke a license issued
  10-18  under this chapter for a violation of this chapter or a rule
  10-19  adopted under this chapter.
  10-20        (b)  The denial, suspension, or revocation of a license by
  10-21  the department and the appeal from that action are governed by the
  10-22  procedures for a contested case hearing under Chapter 2001,
  10-23  Government Code.
  10-24        Sec. 251.063.  INJUNCTION.  (a)  The department may petition
  10-25  a district court for a temporary restraining order to restrain a
  10-26  continuing violation of this chapter or a rule adopted under this
  10-27  chapter if the department finds that the violation creates an
   11-1  immediate threat to the health and safety of patients of an end
   11-2  stage renal disease facility.
   11-3        (b)  A district court, on petition of the department and on a
   11-4  finding that a person is violating this chapter or a rule adopted
   11-5  under this chapter, may by injunction:
   11-6              (1)  prohibit a person from continuing the violation;
   11-7              (2)  restrain or prevent the operation of an end stage
   11-8  renal disease facility without a license issued under this chapter;
   11-9  or
  11-10              (3)  grant other injunctive relief warranted by the
  11-11  facts.
  11-12        (c)  The attorney general may institute and conduct a suit
  11-13  authorized by this section at the request of the department.
  11-14        (d)  Venue for a suit brought under this section is in the
  11-15  county in which the end stage renal disease facility is located or
  11-16  in Travis County.
  11-17        Sec. 251.064.  CRIMINAL PENALTY.  (a)  A person commits an
  11-18  offense if the person violates Section 251.011 or 251.031.
  11-19        (b)  An offense under this section is a Class C misdemeanor.
  11-20        (c)  Each day of a continuing violation constitutes a
  11-21  separate offense.
  11-22        Sec. 251.065.  CIVIL PENALTY.  (a)  A person who knowingly
  11-23  violates this chapter or who knowingly fails to comply with a rule
  11-24  adopted under this chapter is liable for a civil penalty of not
  11-25  more than $1,000 for each violation if the department finds that
  11-26  the violation threatens the health and safety of a patient of an
  11-27  end stage renal disease facility.
   12-1        (b)  Each day of a continuing violation constitutes a
   12-2  separate ground for recovery.
   12-3        Sec. 251.066.  ADMINISTRATIVE PENALTY.  (a)  The department
   12-4  may assess an administrative penalty against a person who violates
   12-5  this chapter or a rule adopted under this chapter.
   12-6        (b)  The penalty may not exceed $1,000 for each violation.
   12-7  Each day of a continuing violation constitutes a separate
   12-8  violation.
   12-9        (c)  In determining the amount of an administrative penalty
  12-10  assessed under this section, the department shall consider:
  12-11              (1)  the seriousness of the violation;
  12-12              (2)  the history of previous violations;
  12-13              (3)  the amount necessary to deter future violations;
  12-14              (4)  efforts made to correct the violation; and
  12-15              (5)  any other matters that justice may require.
  12-16        (d)  All proceedings for the assessment of an administrative
  12-17  penalty under this chapter are subject to Chapter 2001, Government
  12-18  Code.
  12-19        Sec. 251.067.  REPORT RECOMMENDING ADMINISTRATIVE PENALTY.
  12-20  (a)  If after investigation of a possible violation and the facts
  12-21  surrounding that possible violation the department determines that
  12-22  a violation has occurred, the department shall give written notice
  12-23  of the violation to the person alleged to have committed the
  12-24  violation.  The notice shall include:
  12-25              (1)  a brief summary of the alleged violation;
  12-26              (2)  a statement of the amount of the proposed penalty,
  12-27  based on the factors listed in Section 251.066(c); and
   13-1              (3)  a statement of the person's right to a hearing on
   13-2  the occurrence of the violation, the amount of the penalty, or both
   13-3  the occurrence of the violation and the amount of the penalty.
   13-4        (b)  Not later than the 20th day after the date the notice is
   13-5  received, the person notified may accept the determination of the
   13-6  department made under this section, including the recommended
   13-7  penalty, or make a written request for a hearing on that
   13-8  determination.
   13-9        (c)  If the person notified of the violation accepts the
  13-10  determination of the department, the commissioner or the
  13-11  commissioner's designee shall issue an order approving the
  13-12  determination and ordering that the person pay the recommended
  13-13  penalty.
  13-14        Sec. 251.068.  HEARING; ORDER.  (a)  If the person notified
  13-15  fails to respond in a timely manner to the notice under Section
  13-16  251.067(b) or if the person requests a hearing, the commissioner or
  13-17  the commissioner's designee shall:
  13-18              (1)  set a hearing;
  13-19              (2)  give written notice of the hearing to the person;
  13-20  and
  13-21              (3)  designate a hearings examiner to conduct the
  13-22  hearing.
  13-23        (b)  The hearings examiner shall make findings of fact and
  13-24  conclusions of law and shall promptly issue to the commissioner a
  13-25  proposal for decision as to the occurrence of the violation and a
  13-26  recommendation as to the amount of the proposed penalty if a
  13-27  penalty is determined to be warranted.
   14-1        (c)  Based on the findings of fact and conclusions of law and
   14-2  the recommendations of the hearings examiner, the commissioner by
   14-3  order may find that a violation has occurred and may assess a
   14-4  penalty, or may find that no violation has occurred.
   14-5        Sec. 251.069.  NOTICE AND PAYMENT OF ADMINISTRATIVE PENALTY;
   14-6  JUDICIAL REVIEW; REFUND.  (a)  The commissioner or the
   14-7  commissioner's designee shall give notice of the commissioner's
   14-8  order under Section 251.068(c) to the person notified.  The notice
   14-9  must include:
  14-10              (1)  separate statements of the findings of fact and
  14-11  conclusions of law;
  14-12              (2)  the amount of any penalty assessed; and
  14-13              (3)  a statement of the right of the person to judicial
  14-14  review of the commissioner's order.
  14-15        (b)  Not later than the 30th day after the date the decision
  14-16  is final as provided by Chapter 2001, Government Code, the person
  14-17  shall:
  14-18              (1)  pay the penalty in full;
  14-19              (2)  pay the amount of the penalty and file a petition
  14-20  for judicial review contesting the occurrence of the violation, the
  14-21  amount of the penalty, or both the occurrence of the violation and
  14-22  the amount of the penalty; or
  14-23              (3)  without paying the amount of the penalty, file a
  14-24  petition for judicial review contesting the occurrence of the
  14-25  violation, the amount of the penalty, or both the occurrence of the
  14-26  violation and the amount of the penalty.
  14-27        (c)  Within the 30-day period, a person who acts under
   15-1  Subsection (b)(3) may:
   15-2              (1)  stay enforcement of the penalty by:
   15-3                    (A)  paying the amount of the penalty to the
   15-4  court for placement in an escrow account; or
   15-5                    (B)  giving to the court a supersedeas bond that
   15-6  is approved by the court for the amount of the penalty and that is
   15-7  effective until all judicial review of the board's order is final;
   15-8  or
   15-9              (2)  request the court to stay enforcement of the
  15-10  penalty by:
  15-11                    (A)  filing with the court a sworn affidavit of
  15-12  the person stating that the person is financially unable to pay the
  15-13  amount of the penalty and is financially unable to give the
  15-14  supersedeas bond; and
  15-15                    (B)  giving a copy of the affidavit to the
  15-16  department by certified mail.
  15-17        (d)  If the department receives a copy of an affidavit under
  15-18  Subsection (c)(2), the department may file with the court, within
  15-19  five days after the date the copy is received, a contest to the
  15-20  affidavit.  The court shall hold a hearing on the facts alleged in
  15-21  the affidavit as soon as practicable and shall stay the enforcement
  15-22  of the penalty on finding that the alleged facts are true.  The
  15-23  person who files an affidavit has the burden of proving that the
  15-24  person is financially unable to pay the amount of the penalty and
  15-25  to give a supersedeas bond.
  15-26        (e)  If the person does not pay the amount of the penalty and
  15-27  the enforcement of the penalty is not stayed, the department may
   16-1  refer the matter to the attorney general for collection of the
   16-2  amount of the penalty.
   16-3        (f)  Judicial review of the order of the board:
   16-4              (1)  is instituted by filing a petition as provided by
   16-5  Subchapter G, Chapter 2001, Government Code; and
   16-6              (2)  is under the substantial evidence rule.
   16-7        (g)  If the court sustains the occurrence of the violation,
   16-8  the court may uphold or reduce the amount of the penalty and order
   16-9  the person to pay the full or reduced amount of the penalty.  If
  16-10  the court does not sustain the occurrence of the violation, the
  16-11  court shall order that no penalty is owed.
  16-12        (h)  When the judgment of the court becomes final, the court
  16-13  shall proceed under this subsection.  If the person paid the amount
  16-14  of the penalty and if that amount is reduced or is not upheld by
  16-15  the court, the court shall order that the appropriate amount plus
  16-16  accrued interest be remitted to the person.  The rate of the
  16-17  interest is the rate charged on loans to depository institutions by
  16-18  the New York Federal Reserve Bank, and the interest shall be paid
  16-19  for the period beginning on the date the penalty was paid and
  16-20  ending on the date the penalty is remitted.  If the person gave a
  16-21  supersedeas bond and if the amount of the penalty is not upheld by
  16-22  the court, the court shall order the release of the bond.  If the
  16-23  person gave a supersedeas bond and if the amount of the penalty is
  16-24  reduced, the court shall order the release of the bond after the
  16-25  person pays the amount.
  16-26        Sec. 251.070.  PENALTY DEPOSITED TO STATE TREASURY.  A civil
  16-27  or administrative penalty collected under this chapter shall be
   17-1  deposited in the state treasury to the credit of the general
   17-2  revenue fund.
   17-3        Sec. 251.071.  RECOVERY OF COSTS.  (a)  The department may
   17-4  assess reasonable expenses and costs against a person in an
   17-5  administrative hearing if, as a result of the hearing, the person's
   17-6  license is denied, suspended, or revoked or if administrative
   17-7  penalties are assessed against the person.  The person shall pay
   17-8  expenses and costs assessed under this subsection not later than
   17-9  the 30th day after the date of a board order requiring the payment
  17-10  of expenses and costs is final.  The department may refer the
  17-11  matter to the attorney general for collection of the expenses and
  17-12  costs.
  17-13        (b)  If the attorney general brings an action against a
  17-14  person under Section 251.063 or 251.065 or to enforce an
  17-15  administrative penalty assessed under Section 251.066, and an
  17-16  injunction is granted against the person or the person is found
  17-17  liable for a civil or administrative penalty, the attorney general
  17-18  may recover, on behalf of the attorney general and the department,
  17-19  reasonable expenses and costs.
  17-20        (c)  For purposes of this section, "reasonable expenses and
  17-21  costs" include expenses incurred by the department and the attorney
  17-22  general in the investigation, initiation, or prosecution of an
  17-23  action, including reasonable investigative costs, court costs,
  17-24  attorney's fees, witness fees, and deposition expenses.
  17-25           (Sections 251.072-251.090 reserved for expansion)
  17-26                    SUBCHAPTER F. TEMPORARY MANAGER
  17-27        Sec. 251.091.  APPOINTMENT BY AGREEMENT.  (a)  A person
   18-1  holding a controlling interest in an end stage renal disease
   18-2  facility may, at any time, request the department to assume the
   18-3  management of the facility through the appointment of a temporary
   18-4  manager under this subchapter.
   18-5        (b)  After receiving the request, the department may enter
   18-6  into an agreement providing for the appointment of a temporary
   18-7  manager to manage the facility under conditions considered
   18-8  appropriate by both parties if the department considers the
   18-9  appointment desirable.
  18-10        (c)  An agreement under this section must:
  18-11              (1)  specify all terms and conditions of the temporary
  18-12  manager's appointment and authority; and
  18-13              (2)  preserve all rights of the individuals served by
  18-14  the facility granted by law.
  18-15        (d)  The primary duty of the temporary manager is to ensure
  18-16  that adequate and safe services are provided to patients until
  18-17  temporary management ceases.
  18-18        (e)  The appointment terminates at the time specified by the
  18-19  agreement.
  18-20        Sec. 251.092.  INVOLUNTARY APPOINTMENT.  (a)  The department
  18-21  may request the attorney general to bring an action in the name and
  18-22  on behalf of the state for the appointment of a temporary manager
  18-23  to manage an end stage renal disease facility if:
  18-24              (1)  the facility is operating without a license;
  18-25              (2)  the department has denied, suspended, or revoked
  18-26  the facility's license but the facility continues to operate;
  18-27              (3)  license denial, suspension, or revocation
   19-1  proceedings against the facility are pending and the department
   19-2  determines that an imminent or reasonably foreseeable threat to the
   19-3  health and safety of a patient of the facility exists;
   19-4              (4)  the department determines that an emergency exists
   19-5  that presents an immediate threat to the health and safety of a
   19-6  patient of the facility;
   19-7              (5)  the facility is closing and arrangements for the
   19-8  care of patients by other licensed facilities have not been made
   19-9  before closure; or
  19-10              (6)  the department determines a level three corrective
  19-11  action plan under Section 251.061 that includes appointment of a
  19-12  temporary manager is necessary to address serious or
  19-13  life-threatening conditions at the facility.
  19-14        (b)  After a hearing, a court shall appoint a temporary
  19-15  manager to manage a facility if the court finds that the
  19-16  appointment of the manager is necessary.
  19-17        (c)  The court order shall address the duties and authority
  19-18  of the temporary manager, which may include management of the
  19-19  facility and the provision of dialysis services to facility
  19-20  patients until specified circumstances occur, such as new ownership
  19-21  of the facility, compliance with this chapter and rules adopted
  19-22  under this chapter, or closure of the facility.
  19-23        (d)  If possible, the court shall appoint as temporary
  19-24  manager an individual whose background includes administration of
  19-25  end stage renal disease facilities or similar facilities.
  19-26        (e)  Venue for an action under this section is in Travis
  19-27  County.
   20-1        Sec. 251.093.  FEE; RELEASE OF FUNDS.  (a)  A temporary
   20-2  manager appointed under Section 251.092 is entitled to a reasonable
   20-3  fee as determined by the court.  The fee shall be paid by the
   20-4  facility.
   20-5        (b)  The temporary manager may petition the court to order
   20-6  the release to the manager of any payment owed the manager for care
   20-7  and services provided to patients of the facility if the payment
   20-8  has been withheld.
   20-9        (c)  Withheld payments that may be released under Subsection
  20-10  (b) may include payments withheld by a governmental agency or other
  20-11  entity before or during the appointment of the temporary manager,
  20-12  including:
  20-13              (1)  Medicaid, Medicare, or insurance payments; or
  20-14              (2)  payments from another third party.
  20-15        SECTION 2.  (a)  Except as provided by Subsection (b) of this
  20-16  section and Section 3, this Act takes effect September 1, 1995.
  20-17        (b)  Sections 251.011 and 251.031 and Subchapter E, Chapter
  20-18  251, Health and Safety Code, as added by this Act, take effect
  20-19  September 1, 1996.
  20-20        SECTION 3.  A person is not required to obtain a license
  20-21  under Subchapter B, Chapter 251, Health and Safety Code, as added
  20-22  by this Act, and an individual is not required to be trained and
  20-23  competent under Subchapter C, Chapter 251, Health and Safety Code,
  20-24  as added by this Act, until September 1, 1996.
  20-25        SECTION 4.  The importance of this legislation and the
  20-26  crowded condition of the calendars in both houses create an
  20-27  emergency and an imperative public necessity that the
   21-1  constitutional rule requiring bills to be read on three several
   21-2  days in each house be suspended, and this rule is hereby suspended.