1-1        By:  Coleman, Maxey (Senate Sponsor - Madla)    H.B. No. 3118
    1-2        (In the Senate - Received from the House May 15, 1995;
    1-3  May 18, 1995, read first time and referred to Committee on Health
    1-4  and Human Services; May 25, 1995, reported adversely, with
    1-5  favorable Committee Substitute by the following vote:  Yeas 5, Nays
    1-6  0; May 25, 1995, sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR H.B. No. 3118                   By:  Madla
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to intermediate care facilities for the mentally retarded;
   1-11  imposing civil and criminal penalties.
   1-12        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-13        SECTION 1.  Subtitle B, Title 4, Health and Safety Code, is
   1-14  amended by adding Chapter 251 to read as follows:
   1-15      CHAPTER 251.  INTERMEDIATE CARE FACILITIES FOR THE MENTALLY
   1-16                               RETARDED
   1-17                   SUBCHAPTER A.  GENERAL PROVISIONS
   1-18        Sec. 251.001.  PURPOSE.  The purpose of this chapter is to
   1-19  promote the public health, safety, and welfare by providing for the
   1-20  development, establishment, and enforcement of standards for the
   1-21  provision of services to individuals residing in intermediate care
   1-22  facilities for the mentally retarded and the establishment,
   1-23  construction, maintenance, and operation of facilities providing
   1-24  this service that, in light of advancing knowledge, will promote
   1-25  quality in the delivery of services and treatment of residents.
   1-26        Sec. 251.002.  DEFINITIONS.  In this chapter:
   1-27              (1)  "Board" means the Texas Board of Human Services.
   1-28              (2)  "Department" means the Texas Department of Human
   1-29  Services.
   1-30              (3)  "Designee" means another state agency or entity
   1-31  with which the department contracts to perform specific, identified
   1-32  duties related to the fulfillment of responsibilities prescribed by
   1-33  this chapter.
   1-34              (4)  "Facility" means a home or other establishment
   1-35  that provides, on a regular basis, intermediate care services for
   1-36  individuals with mental retardation or a related condition in
   1-37  accordance with federal law.
   1-38              (5)  "Governmental unit" means the state or a political
   1-39  subdivision of the state, including a county or municipality.
   1-40              (6)  "Person" means an individual, firm, partnership,
   1-41  corporation, association, or joint stock company, and includes a
   1-42  legal successor of those entities.
   1-43              (7)  "Resident" means an individual, including a
   1-44  client, with mental retardation or a related condition who is
   1-45  receiving services in a facility licensed under this chapter.
   1-46        Sec. 251.003.  EXEMPTIONS.  Except as otherwise provided by
   1-47  this chapter, this chapter does not apply to an establishment that:
   1-48              (1)  provides training, habilitation, rehabilitation,
   1-49  or education to individuals with mental retardation or a related
   1-50  condition;
   1-51              (2)  is operated under the jurisdiction of a state or
   1-52  federal agency, including the department, the Texas Rehabilitation
   1-53  Commission, the Texas Department of Mental Health and Mental
   1-54  Retardation, the Texas Commission for the Blind, the Texas
   1-55  Commission on Alcohol and Drug Abuse, the institutional division of
   1-56  the Texas Department of Criminal Justice, or the Veterans
   1-57  Administration; and
   1-58              (3)  is certified through inspection or evaluation as
   1-59  meeting the standards established by the state or federal agency.
   1-60        Sec. 251.004.  FEDERAL FUNDS.  The department may accept and
   1-61  use any funds allocated by the federal government to the department
   1-62  for administrative expenses.
   1-63        Sec. 251.005.  LANGUAGE REQUIREMENTS PROHIBITED.  A facility
   1-64  may not prohibit a resident or employee from communicating in the
   1-65  person's native language with another resident or employee for the
   1-66  purpose of acquiring care, training, or treatment.
   1-67        Sec. 251.006.  RIGHTS OF RESIDENTS.  Each facility shall
   1-68  implement and enforce Chapter 102, Human Resources Code.
    2-1        Sec. 251.007.  PAPERWORK REDUCTION RULES.  (a)  The
    2-2  department and any designee of the department shall:
    2-3              (1)  adopt rules to reduce the amount of paperwork a
    2-4  facility must complete and retain; and
    2-5              (2)  attempt to reduce the amount of paperwork to the
    2-6  minimum amount required by state and federal law unless the
    2-7  reduction would jeopardize resident safety.
    2-8        (b)  The department, any designee of the department, and
    2-9  facilities shall work together to review rules and propose changes
   2-10  in paperwork requirements so that additional time is available for
   2-11  direct resident care.
   2-12        Sec. 251.008.  RULES.  The department shall adopt rules
   2-13  related to the administration and implementation of this chapter,
   2-14  including rules necessary to implement:
   2-15              (1)  Sections 251.031-251.033, including requirements
   2-16  for related fees and denial, suspension, or revocation of a
   2-17  license; and
   2-18              (2)  Sections 251.038-251.041.
   2-19        Sec. 251.009.  CONSULTATION AND COORDINATION.  (a)  Whenever
   2-20  possible, the department shall:
   2-21              (1)  use the services of and consult with state and
   2-22  local agencies in carrying out the department's functions under
   2-23  this chapter; and
   2-24              (2)  use the facilities of the department or a designee
   2-25  of the department, particularly in establishing and maintaining
   2-26  standards relating to the humane treatment of residents.
   2-27        (b)  The department may cooperate with local public health
   2-28  officials of a county or municipality in carrying out this chapter
   2-29  and may delegate to those officials the power to make inspections
   2-30  and recommendations to the department under this chapter.
   2-31        (c)  The department may coordinate its personnel and
   2-32  facilities with a local agency of a municipality and may provide
   2-33  advice to the municipality or county if the municipality or county
   2-34  decides to supplement the state program with additional rules
   2-35  required to meet local conditions.
   2-36        Sec. 251.010.  CHANGE OF ADMINISTRATORS.  A facility that
   2-37  hires a new administrator or other person designated as the chief
   2-38  management officer for the facility shall:
   2-39              (1)  notify the department of the change not later than
   2-40  the 30th day after the date on which the change becomes effective;
   2-41  and
   2-42              (2)  pay a $20 administrative fee to the department.
   2-43           (Sections 251.011-251.030 reserved for expansion
   2-44            SUBCHAPTER B.  LICENSING, FEES, AND INSPECTIONS
   2-45        Sec. 251.031. LICENSE REQUIRED.  A person or governmental
   2-46  unit, acting severally or jointly with any other person or
   2-47  governmental unit, may not establish, conduct, or maintain a
   2-48  facility in this state without a license issued under this chapter.
   2-49        Sec. 251.032.  LICENSE APPLICATION.  (a)  An application for
   2-50  a license is made to the department on a form provided by the
   2-51  department and must be accompanied by the license fee.
   2-52        (b)  The application must contain information that the
   2-53  department requires, which may include affirmative evidence of
   2-54  ability to comply with the standards and rules adopted under this
   2-55  chapter.
   2-56        Sec. 251.033.  ISSUANCE AND RENEWAL OF LICENSE.  (a)  After
   2-57  receiving an application for a license, the department shall issue
   2-58  the license if, after inspection and investigation, it finds that
   2-59  the applicant and facility meet the requirements established under
   2-60  this chapter.
   2-61        (b)  The department may issue a license only for:
   2-62              (1)  the premises and persons or governmental unit
   2-63  named in the application; and
   2-64              (2)  the maximum number of beds specified in the
   2-65  application.
   2-66        (c)  A license may not be transferred or assigned.
   2-67        (d)  A license is renewable on the second anniversary of
   2-68  issuance or renewal of the license, after:
   2-69              (1)  an inspection;
   2-70              (2)  filing and approval of a renewal report; and
    3-1              (3)  payment of the renewal fee.
    3-2        (e)  The renewal report required under Subsection (d)(2) must
    3-3  be filed in accordance with rules adopted by the department that
    3-4  specify the form of the report and the date it must be submitted.
    3-5        (f)  The department may not issue a license under this
    3-6  chapter unless the beds provided under the license are approved
    3-7  under the state's plan on long-term care facilities for persons
    3-8  with mental retardation, as described by Section 533.062.
    3-9        (g)  A license or renewal fee imposed under this chapter is
   3-10  an allowable cost for reimbursement under the state Medicaid
   3-11  program.  An increase in the amount of a fee shall be reflected in
   3-12  reimbursement rates prospectively.
   3-13        Sec. 251.034.  MINIMUM STANDARDS.  The board may adopt,
   3-14  publish, and enforce minimum standards relating to:
   3-15              (1)  the construction or remodeling of a facility,
   3-16  including plumbing, heating, lighting, ventilation, and other
   3-17  housing conditions, to ensure the residents' health, safety,
   3-18  comfort, and protection from fire hazard;
   3-19              (2)  sanitary and related conditions in a facility and
   3-20  its surroundings, including water supply, sewage disposal, food
   3-21  handling, and general hygiene in order to ensure the residents'
   3-22  health, safety, and comfort;
   3-23              (3)  equipment essential to the residents' health and
   3-24  welfare;
   3-25              (4)  the reporting and investigation of injuries,
   3-26  accidents, and unusual accidents and the establishment of other
   3-27  policies and procedures necessary to ensure resident safety;
   3-28              (5)  behavior management, including use of seclusion
   3-29  and physical restraints;
   3-30              (6)  policies and procedures for the control of
   3-31  communicable diseases in employees and residents;
   3-32              (7)  the use and administration of medication in
   3-33  conformity with applicable law and rules;
   3-34              (8)  specialized nutrition support such as delivery of
   3-35  enteral feedings and parenteral nutrients;
   3-36              (9)  requirements for in-service education of each
   3-37  employee who has any contact with residents;
   3-38              (10)  the regulation of the number and qualification of
   3-39  all personnel, including management and professional support
   3-40  personnel, responsible for any part of the care given to residents;
   3-41  and
   3-42              (11)  the quality of life of residents.
   3-43        A facility that is certified as being in compliance with each
   3-44  standard of participation in the state Medicaid program that
   3-45  relates to the same subject matter as a minimum standard
   3-46  established under this section is not required to satisfy the
   3-47  minimum standard established under this section.
   3-48        Sec. 251.035.  REASONABLE TIME TO COMPLY.  The board by rule
   3-49  shall give a facility that is in operation when a rule or standard
   3-50  is adopted under this chapter a reasonable time to comply with the
   3-51  rule or standard.
   3-52        Sec. 251.036.  FIRE SAFETY REQUIREMENTS.  (a)  A facility
   3-53  shall comply with fire safety requirements established under this
   3-54  section.
   3-55        (b)  The board, by rule, shall adopt the fire safety
   3-56  standards applicable to the facility.  The fire safety standards
   3-57  must be the same as the fire safety standards established by an
   3-58  edition of the Life Safety Code of the National Fire Protection
   3-59  Association.  The edition selected by the board must be the same as
   3-60  that designated by any federal law or regulation applicable to a
   3-61  facility or a portion of a facility.  If required by federal law or
   3-62  regulation, the edition selected may be different for facilities or
   3-63  portions of facilities operated or approved for construction at
   3-64  different times.
   3-65        (c)  The board may not require more stringent fire safety
   3-66  standards than those required by federal law and regulation.
   3-67        (d)  A facility that is licensed under applicable law on
   3-68  September 1, 1995, must comply with the fire safety standards,
   3-69  including fire safety standards imposed by municipal ordinance,
   3-70  applicable to the facility on that date.
    4-1        (e)  The rules adopted under this section do not prevent a
    4-2  facility licensed under this chapter from voluntarily conforming to
    4-3  fire safety standards that are compatible with, equal to, or more
    4-4  stringent than those adopted by the board.
    4-5        (f)  Notwithstanding any other provision of this section, a
    4-6  municipality may enact additional and more stringent fire safety
    4-7  standards applicable to new construction begun on or after
    4-8  September 1, 1995.
    4-9        Sec. 251.037.  POSTING.  Each facility shall prominently and
   4-10  conspicuously post for display in a public area of the facility
   4-11  that is readily available to residents, employees, and visitors:
   4-12              (1)  the license issued under this chapter;
   4-13              (2)  a sign prescribed by the department that specifies
   4-14  complaint procedures established under this chapter or rules
   4-15  adopted under this chapter and that specifies how complaints may be
   4-16  registered with the department;
   4-17              (3)  a notice in a form prescribed by the department
   4-18  stating that inspection and related reports are available at the
   4-19  facility for public inspection and providing the department's
   4-20  toll-free telephone number that may be used to obtain information
   4-21  concerning the facility; and
   4-22              (4)  a concise summary of the most recent inspection
   4-23  report relating to the facility.
   4-24        Sec. 251.038.  INSPECTIONS.  (a)  The department or the
   4-25  department's designee may make any inspection, survey, or
   4-26  investigation that it considers necessary and may enter the
   4-27  premises of a facility at reasonable times to make an inspection,
   4-28  survey, or investigation in accordance with board rules.
   4-29        (b)  The department is entitled to access to books, records,
   4-30  and other documents maintained by or on behalf of a facility to the
   4-31  extent necessary to enforce this chapter and the rules adopted
   4-32  under this chapter.
   4-33        (c)  A license holder or an applicant for a license is
   4-34  considered to have consented to entry and inspection of the
   4-35  facility by a representative of the department in accordance with
   4-36  this chapter.
   4-37        (d)  The department shall establish procedures to preserve
   4-38  all relevant evidence of conditions the department finds during an
   4-39  inspection, survey, or investigation that the department reasonably
   4-40  believes threaten the health and safety of a resident.  The
   4-41  procedures may include photography or photocopying of relevant
   4-42  documents, such as a license holder's notes, a physician's orders,
   4-43  and pharmacy records, for use in any legal proceeding.
   4-44        (e)  When photographing a resident, the department:
   4-45              (1)  shall respect the privacy of the resident to the
   4-46  greatest extent possible; and
   4-47              (2)  may not make public the identity of the resident.
   4-48        (f)  A facility, an officer or employee of a facility, and a
   4-49  resident's attending physician are not civilly liable for
   4-50  surrendering confidential or private material under this section,
   4-51  including physician's orders, pharmacy records, notes and memoranda
   4-52  of a state office, and resident files.
   4-53        (g)  The department shall establish in clear and concise
   4-54  language a form to summarize each inspection report and complaint
   4-55  investigation report.
   4-56        (h)  The department shall establish proper procedures to
   4-57  ensure that copies of all forms and reports under this section are
   4-58  made available to consumers, service recipients, and the relatives
   4-59  of service recipients as the department considers proper.
   4-60        Sec. 251.039.  UNANNOUNCED INSPECTIONS.  (a)  Each licensing
   4-61  period, the department shall conduct at least two unannounced
   4-62  inspections of each facility.
   4-63        (b)  In order to ensure continuous compliance, the department
   4-64  shall randomly select a sufficient percentage of facilities for
   4-65  unannounced inspections to be conducted between 5 p.m. and 8 a.m.
   4-66  Those inspections must be cursory to avoid to the greatest extent
   4-67  feasible any disruption of the residents.
   4-68        (c)  The department may require additional inspections.
   4-69        (d)  As deemed appropriate and necessary by the department,
   4-70  the department may invite at least one person as a citizen advocate
    5-1  to participate in inspections.  The invited advocate must be an
    5-2  individual who has an interest in or who is employed by or
    5-3  affiliated with an organization or entity that represents,
    5-4  advocates for, or serves individuals with mental retardation or a
    5-5  related condition.
    5-6        Sec. 251.040.  DISCLOSURE OF UNANNOUNCED INSPECTIONS;
    5-7  CRIMINAL PENALTY.  (a)  Except as expressly provided by this
    5-8  chapter, a person commits an offense if the person intentionally,
    5-9  knowingly, or recklessly discloses to an unauthorized person the
   5-10  date, time, or any other fact about an unannounced inspection of a
   5-11  facility before the inspection occurs.
   5-12        (b)  In this section, "unauthorized person" does not include:
   5-13              (1)  the department;
   5-14              (2)  the office of the attorney general;
   5-15              (3)  a representative of an agency or organization when
   5-16  a Medicaid survey is made concurrently with a licensing inspection;
   5-17  or
   5-18              (4)  any other person or entity authorized by law to
   5-19  make an inspection or to accompany an inspector.
   5-20        (c)  An offense under this section is a Class B misdemeanor.
   5-21        (d)  A person convicted under this section is not eligible
   5-22  for state employment.
   5-23        Sec. 251.041.  LICENSING SURVEYS.  The department shall
   5-24  provide a team to conduct surveys to validate findings of licensing
   5-25  surveys.  The purpose of a validation survey is to assure that
   5-26  survey teams throughout the state survey in a fair and consistent
   5-27  manner.  A facility subjected to a validation survey must correct
   5-28  deficiencies cited by the validation team but is not subject to
   5-29  punitive action for those deficiencies.
   5-30           (Sections 251.042-251.060 reserved for expansion
   5-31                  SUBCHAPTER C.  GENERAL ENFORCEMENT
   5-32        Sec. 251.061. EMERGENCY SUSPENSION OR CLOSING ORDER.  (a)
   5-33  The department shall suspend a facility's license or order an
   5-34  immediate closing of part of the facility if:
   5-35              (1)  the department finds the facility is operating in
   5-36  violation of the standards prescribed by this chapter; and
   5-37              (2)  the violation creates an immediate threat to the
   5-38  health and safety of a resident.
   5-39        (b)  The board by rule shall provide for the placement of
   5-40  residents during the facility's suspension or closing to ensure
   5-41  their health and safety.
   5-42        (c)  An order suspending a license or closing a part of a
   5-43  facility under this section is immediately effective on the date on
   5-44  which the license holder receives written notice or a later date
   5-45  specified in the order.
   5-46        (d)  An order suspending a license or ordering an immediate
   5-47  closing of a part of a facility is valid for 10 days after the
   5-48  effective date of the order.
   5-49        Sec. 251.062. INJUNCTION.  (a)  The department may petition a
   5-50  district court for a temporary restraining order to restrain a
   5-51  person from continuing a violation of the standards prescribed by
   5-52  this chapter if the department finds that the violation creates an
   5-53  immediate threat to the health and safety of the facility's
   5-54  residents.
   5-55        (b)  A district court, on petition of the department, may by
   5-56  injunction:
   5-57              (1)  prohibit a person from continuing a violation of
   5-58  the standards or licensing requirements prescribed by this chapter;
   5-59              (2)  restrain or prevent the establishment, conduct,
   5-60  management, or operation of a facility without a license issued
   5-61  under this chapter; or
   5-62              (3)  grant the injunctive relief warranted by the facts
   5-63  on a finding by the court that a person is violating the standards
   5-64  or licensing requirements prescribed by this chapter.
   5-65        (c)  The attorney general, on request by the department,
   5-66  shall institute and conduct in the name of the state a suit
   5-67  authorized by this section.
   5-68        (d)  A suit for a temporary restraining order or other
   5-69  injunctive relief must be brought in the county in which the
   5-70  alleged violation occurs.
    6-1        Sec. 251.063.  LICENSE REQUIREMENTS; CRIMINAL PENALTY.  (a)
    6-2  A person commits an offense if the person violates Section 251.031.
    6-3        (b)  An offense under this section is punishable by a fine of
    6-4  not more than $1,000 for the first offense and not more than $500
    6-5  for each subsequent offense.
    6-6        (c)  Each day of a continuing violation after conviction is a
    6-7  separate offense.
    6-8        Sec. 251.064. CIVIL PENALTY.  (a)  A person who violates this
    6-9  chapter or a rule adopted under this chapter is liable for a civil
   6-10  penalty of not less than $100 or more than $10,000 for each
   6-11  violation if the department determines the violation threatens the
   6-12  health and safety of a resident.
   6-13        (b)  Each day of a continuing violation constitutes a
   6-14  separate ground for recovery.
   6-15        Sec. 251.065.  ADMINISTRATIVE PENALTY.  (a)  The department
   6-16  may assess an administrative penalty against a facility that
   6-17  violates this chapter or a rule adopted under this chapter as
   6-18  specified by this section.
   6-19        (b)  The department shall establish gradations of penalties
   6-20  and amounts of penalties in accordance with the relative
   6-21  seriousness of the violations.
   6-22        (c)  In determining the amount of a penalty, the department
   6-23  shall consider any matter justice may require, including:
   6-24              (1)  the gradations of penalties established under
   6-25  Subsection (b);
   6-26              (2)  the seriousness of the violation, including the
   6-27  nature, circumstances, extent, and gravity of the prohibited act
   6-28  and the hazard or potential hazard created by the act to the health
   6-29  and safety of the public;
   6-30              (3)  the history of previous violations;
   6-31              (4)  the amount necessary to deter future violations;
   6-32  and
   6-33              (5)  efforts made to correct the violation.
   6-34        (d)  The penalty may not exceed $5,000 a day for each
   6-35  violation.  Each day of a continuing violation constitutes a
   6-36  separate violation.
   6-37        (e)  The department shall establish rules governing the
   6-38  assessment of administrative penalties, including rules
   6-39  establishing the manner in which a facility is notified of the
   6-40  violation, establishing an appeal and hearing process, and
   6-41  governing payment and refund of the penalty.
   6-42           (Sections 251.066-251.090 reserved for expansion
   6-43                SUBCHAPTER D.  TRUSTEES FOR FACILITIES
   6-44        Sec. 251.091.  FINDINGS AND PURPOSE.  (a)  The legislature
   6-45  finds that the closing of an intermediate care facility for
   6-46  violations of laws and rules may:
   6-47              (1)  in certain circumstances, have an adverse effect
   6-48  on both the facility's residents and their families; and
   6-49              (2)  in some cases, result in a lack of readily
   6-50  available funds to meet the basic needs of the residents for food,
   6-51  shelter, medication, and personal services.
   6-52        (b)  The purpose of this subchapter is to provide for:
   6-53              (1)  the appointment of a trustee to assume the
   6-54  operations of the facility in a manner that emphasizes resident
   6-55  care and reduces resident trauma; and
   6-56              (2)  a fund to assist a court-appointed trustee in
   6-57  meeting the basic needs of the residents.
   6-58        Sec. 251.092.  APPOINTMENT BY AGREEMENT.  (a)  A person
   6-59  holding a controlling interest in a facility may, at any time,
   6-60  request the department to assume the operation of the facility
   6-61  through the appointment of a trustee under this subchapter.
   6-62        (b)  After receiving the request, the department may enter
   6-63  into an agreement providing for the appointment of a trustee to
   6-64  take charge of the facility under conditions considered appropriate
   6-65  by both parties if the department considers the appointment
   6-66  desirable.
   6-67        (c)  An agreement under this section must:
   6-68              (1)  specify all terms and conditions of the trustee's
   6-69  appointment and authority; and
   6-70              (2)  preserve all rights of the residents as granted by
    7-1  law.
    7-2        (d)  The agreement terminates at the time specified by the
    7-3  parties or when either party notifies the other in writing that the
    7-4  party wishes to terminate the appointment agreement.
    7-5        Sec. 251.093.  INVOLUNTARY APPOINTMENT.  (a)  The department
    7-6  may request the attorney general to bring an action in the name and
    7-7  on behalf of the state for the appointment of a trustee to operate
    7-8  a facility if:
    7-9              (1)  the facility is operating without a license;
   7-10              (2)  the department has suspended or revoked the
   7-11  facility's license;
   7-12              (3)  license suspension or revocation procedures
   7-13  against the facility are pending and the department determines that
   7-14  an imminent threat to the health and safety of the residents
   7-15  exists;
   7-16              (4)  the department determines that an emergency exists
   7-17  that presents an immediate threat to the health and safety of the
   7-18  residents; or
   7-19              (5)  the facility is closing and arrangements for
   7-20  relocation of the residents to other licensed facilities have not
   7-21  been made before closure.
   7-22        (b)  A trustee appointed under Subsection (a)(5) may only
   7-23  ensure an orderly and safe relocation of the facility's residents
   7-24  as quickly as possible.
   7-25        (c)  After a hearing, a court shall appoint a trustee to take
   7-26  charge of a facility if the court finds that involuntary
   7-27  appointment of a trustee is necessary.
   7-28        (d)  If possible, the court shall appoint as trustee an
   7-29  individual whose background includes mental retardation service
   7-30  administration.
   7-31        (e)  Venue for an action brought under this section is in
   7-32  Travis County.
   7-33        Sec. 251.094.  FEE; RELEASE OF FUNDS.  (a)  A trustee
   7-34  appointed under this subchapter is entitled to a reasonable fee as
   7-35  determined by the court.
   7-36        (b)  The trustee may petition the court to order the release
   7-37  to the trustee of any payment owed the trustee for care and
   7-38  services provided to the residents if the payment has been
   7-39  withheld, including a payment withheld by the department.
   7-40        (c)  Withheld payments may include payments withheld by a
   7-41  governmental agency or other entity during the appointment of the
   7-42  trustee, such as payments:
   7-43              (1)  for Medicaid or insurance;
   7-44              (2)  by a third party; or
   7-45              (3)  for medical expenses borne by the residents.
   7-46        Sec. 251.095.  EMERGENCY ASSISTANCE FUNDS; ADDITIONAL
   7-47  LICENSING FEE.  (a)  In addition to the licensing and renewal fee
   7-48  collected under Subchapter B, the department may collect an annual
   7-49  fee to be used to make emergency assistance funds available to a
   7-50  facility licensed under this chapter.
   7-51        (b)  The fee collected under this section shall be in the
   7-52  amount prescribed by Section 242.097(b) and shall be deposited to
   7-53  the credit of the nursing and convalescent home trust fund
   7-54  established under Section 242.096.
   7-55        (c)  The department may disburse funds from the nursing and
   7-56  convalescent home trust fund to a facility licensed under this
   7-57  chapter for the purposes and in the manner a disbursement may be
   7-58  made under Section 242.096.
   7-59        (d)  A court may order the department to disburse emergency
   7-60  assistance funds to a facility licensed under this chapter in
   7-61  accordance with Section 242.096(c).
   7-62        Sec. 251.096.  REIMBURSEMENT.  (a)  A facility that receives
   7-63  emergency assistance funds under this subchapter shall reimburse
   7-64  the department for the amounts received, including interest.
   7-65        (b)  Interest on unreimbursed amounts begins to accrue on the
   7-66  date on which the funds are disbursed to the facility.  The rate of
   7-67  interest is the rate determined under Article 1.05, Title 79,
   7-68  Revised Statutes (Article 5069-1.05, Vernon's Texas Civil
   7-69  Statutes), to be applicable to judgments rendered during the month
   7-70  in which the money is disbursed to the facility.
    8-1        (c)  The owner of the facility when the trustee is appointed
    8-2  is responsible for the reimbursement.
    8-3        (d)  The amount that remains unreimbursed on the first
    8-4  anniversary of the date on which the funds are received is
    8-5  delinquent and the department may determine that the facility is
    8-6  ineligible for a Medicaid provider contract.
    8-7        (e)  The department shall deposit the reimbursement and
    8-8  interest received under this section to the credit of the nursing
    8-9  and convalescent home trust fund.
   8-10        (f)  The attorney general shall institute an action to
   8-11  collect the funds due under this section at the request of the
   8-12  department.  Venue for an action brought under this section is in
   8-13  Travis County.
   8-14        Sec. 251.097.  NOTIFICATION OF CLOSING.  (a)  A facility that
   8-15  is closing temporarily or permanently, voluntarily or
   8-16  involuntarily, shall notify the residents of the closing and make
   8-17  reasonable efforts to notify in writing each resident's nearest
   8-18  relative or the person responsible for the resident's support
   8-19  within a reasonable time before the closing.
   8-20        (b)  If the closing of a facility is ordered by the
   8-21  department or is in any other way involuntary, the facility shall
   8-22  make the notification, orally or in writing, immediately on
   8-23  receiving notice of the closing.
   8-24        (c)  If the closing of a facility is voluntary, the facility
   8-25  shall make the notification not later than one week after the date
   8-26  on which the decision to close is made.
   8-27           (Sections 251.098-251.120 reserved for expansion
   8-28              SUBCHAPTER E.  REPORTS OF ABUSE AND NEGLECT
   8-29        Sec. 251.121.  DEFINITION.  In this subchapter, "designated
   8-30  agency" means an agency designated by a court to be responsible for
   8-31  the protection of a resident who is the subject of a report of
   8-32  abuse or neglect.
   8-33        Sec. 251.122.  REPORTING OF ABUSE AND NEGLECT.  (a)  A
   8-34  person, including an owner or employee of a facility, who has cause
   8-35  to believe that the physical or mental health or welfare of a
   8-36  resident has been or may be adversely affected by abuse or neglect
   8-37  caused by another person shall report the abuse or neglect to the
   8-38  department, to a designated agency, or to both the department and
   8-39  the designated agency, as specified in rules adopted by the
   8-40  department.
   8-41        (b)  Each facility shall require each employee of the
   8-42  facility, as a condition of employment with the facility, to sign a
   8-43  statement that the employee realizes that the employee may be
   8-44  criminally liable for failure to report abuse or neglect.
   8-45        (c)  A person shall make an oral report immediately on
   8-46  learning of abuse or neglect and shall make a written report to the
   8-47  same agency not later than the fifth day after the oral report is
   8-48  made.
   8-49        (d)  A local or state law enforcement agency that receives a
   8-50  report of abuse or neglect shall refer the report to the department
   8-51  or the designated agency.
   8-52        Sec. 251.123.  CONTENTS OF REPORT.  (a)  A report of abuse or
   8-53  neglect is nonaccusatory and reflects the reporting person's belief
   8-54  that a resident has been or will be abused or neglected or has died
   8-55  of abuse or neglect.
   8-56        (b)  The report must contain:
   8-57              (1)  the name and address of the resident;
   8-58              (2)  the name and address of the person responsible for
   8-59  the care of the resident, if available; and
   8-60              (3)  other relevant information.
   8-61        Sec. 251.124.  ANONYMOUS REPORTS OF ABUSE OR NEGLECT.  An
   8-62  anonymous report of abuse or neglect, although not encouraged,
   8-63  shall be received and acted on in the same manner as an
   8-64  acknowledged report.
   8-65        Sec. 251.125.  INVESTIGATION AND REPORT OF RECEIVING AGENCY.
   8-66  (a)  The department or the designated agency shall make a thorough
   8-67  investigation promptly after receiving either the oral or written
   8-68  report.
   8-69        (b)  The primary purpose of the investigation is the
   8-70  protection of the resident.
    9-1        (c)  In the investigation, the department or the designated
    9-2  agency shall determine:
    9-3              (1)  the nature, extent, and cause of the abuse or
    9-4  neglect;
    9-5              (2)  the identity of the person responsible for the
    9-6  abuse or neglect;
    9-7              (3)  the names and conditions of the other residents;
    9-8              (4)  an evaluation of the persons responsible for the
    9-9  care of the residents;
   9-10              (5)  the adequacy of the facility environment; and
   9-11              (6)  any other information required by the department.
   9-12        (d)  The investigation may include a visit to the resident's
   9-13  facility and an interview with the resident, if considered
   9-14  appropriate by the department.
   9-15        (e)  If the department attempts to carry out an on-site
   9-16  investigation and it is shown that admission to the facility or any
   9-17  place where a resident is located cannot be obtained, a probate or
   9-18  county court shall order the person responsible for the care of the
   9-19  resident or the person in charge of a place where the resident is
   9-20  located to allow admission for the investigation and any interview
   9-21  with the resident.
   9-22        (f)  Before the completion of the investigation, the
   9-23  department shall file a petition for temporary care and protection
   9-24  of the resident if the department determines that immediate removal
   9-25  is necessary to protect the resident from further abuse or neglect.
   9-26        (g)  The department or the designated agency shall make a
   9-27  complete written report of the investigation and submit the report
   9-28  and its recommendations to the district attorney and the
   9-29  appropriate law enforcement agency.
   9-30        Sec. 251.126.  CONFIDENTIALITY.  A report, record, or working
   9-31  paper used or developed in an investigation made under this
   9-32  subchapter is confidential and may be disclosed only for purposes
   9-33  consistent with the rules adopted by the board or the designated
   9-34  agency.
   9-35        Sec. 251.127.  IMMUNITY.  (a)  A person who reports an act of
   9-36  abuse or neglect as provided by this subchapter is immune from
   9-37  civil or criminal liability that, in the absence of the immunity,
   9-38  might result from making the report.
   9-39        (b)  The immunity provided by this section extends to
   9-40  participation in any judicial proceeding that results from the
   9-41  report.
   9-42        (c)  This section does not apply to a person who reports in
   9-43  violation of Section 251.131.
   9-44        Sec. 251.128.  PRIVILEGED COMMUNICATIONS.  In a proceeding
   9-45  regarding the abuse or neglect of a resident or the cause of any
   9-46  abuse or neglect, evidence may not be excluded on the ground of
   9-47  privileged communication except in the case of a communication
   9-48  between an attorney and client.
   9-49        Sec. 251.129.  CENTRAL REGISTRY.  (a)  The department shall
   9-50  maintain in the city of Austin a central registry of reported cases
   9-51  of resident abuse or neglect.  This registry shall be included in
   9-52  the registry maintained under Section 242.130.
   9-53        (b)  The board may adopt rules necessary to carry out this
   9-54  section.
   9-55        (c)  The rules shall provide for cooperation with hospitals
   9-56  and clinics in the exchange of reports of resident abuse or
   9-57  neglect.
   9-58        Sec. 251.130.  FAILURE TO REPORT; CRIMINAL PENALTY.  (a)  A
   9-59  person commits an offense if the person has cause to believe that a
   9-60  resident's physical or mental health or welfare has been or may be
   9-61  further adversely affected by abuse or neglect and knowingly fails
   9-62  to report in accordance with Section 251.122.
   9-63        (b)  An offense under this section is a Class A misdemeanor.
   9-64        Sec. 251.131.  BAD FAITH, MALICIOUS, OR RECKLESS REPORTING;
   9-65  CRIMINAL PENALTY.  (a)  A person commits an offense if the person
   9-66  reports under this subchapter in bad faith, maliciously, or
   9-67  recklessly.
   9-68        (b)  An offense under this section is a Class A misdemeanor.
   9-69        (c)  The criminal penalty provided by this section is in
   9-70  addition to any civil penalties for which the person may be liable.
   10-1        Sec. 251.132.  SUIT FOR RETALIATION.  (a)  A person has a
   10-2  cause of action against a facility, or the owner or an employee of
   10-3  a facility, that suspends or terminates the employment of the
   10-4  person or otherwise disciplines or discriminates against the person
   10-5  for reporting the abuse or neglect of a resident to the person's
   10-6  supervisors, the department, or a law enforcement agency.
   10-7        (b)  The petitioner may recover:
   10-8              (1)  the greater of $1,000 or actual damages, including
   10-9  damages for mental anguish even if an injury other than mental
  10-10  anguish is not shown and damages for lost wages if the petitioner's
  10-11  employment was suspended or terminated;
  10-12              (2)  exemplary damages;
  10-13              (3)  court costs; and
  10-14              (4)  reasonable attorney's fees.
  10-15        (c)  In addition to the amounts that may be recovered under
  10-16  Subsection (b), a person whose employment is suspended or
  10-17  terminated is entitled to reinstatement in the person's former
  10-18  position.
  10-19        (d)  The petitioner, not later than the 90th day after the
  10-20  date on which the person's employment is suspended or terminated,
  10-21  must bring suit or notify the Texas Employment Commission of the
  10-22  petitioner's intent to sue under this section.  A petitioner who
  10-23  notifies the Texas Employment Commission under this subsection must
  10-24  bring suit not later than the 90th day after the date of the
  10-25  delivery of the notice to the commission.  On receipt of the
  10-26  notice, the commission shall notify the facility of the
  10-27  petitioner's intent to bring suit under this section.
  10-28        (e)  The petitioner has the burden of proof, except that
  10-29  there is a rebuttable presumption that the person's employment was
  10-30  suspended or terminated for reporting abuse or neglect if the
  10-31  person is suspended or terminated within 60 days after the date on
  10-32  which the person reported in good faith.
  10-33        (f)  A suit under this section may be brought in the district
  10-34  court of the county in which:
  10-35              (1)  the plaintiff resides;
  10-36              (2)  the plaintiff was employed by the defendant; or
  10-37              (3)  the defendant conducts business.
  10-38        (g)  Each facility shall require each employee of the
  10-39  facility, as a condition of employment with the facility, to sign a
  10-40  statement that the employee understands the employee's rights under
  10-41  this section.  The statement must be part of the statement required
  10-42  under Section 251.122(b).  If a facility does not require an
  10-43  employee to read and sign the statement, the periods prescribed by
  10-44  Subsection (d) do not apply, and the petitioner must bring suit not
  10-45  later than the second anniversary of the date on which the person's
  10-46  employment is suspended or terminated.
  10-47        Sec. 251.133.  REPORTS RELATING TO RESIDENT DEATHS.  (a)  A
  10-48  facility licensed under this chapter shall submit a report to the
  10-49  department concerning deaths of residents of the facility.  The
  10-50  report must be submitted not later than the 10th working day after
  10-51  the last day of each month in which a resident of the facility
  10-52  dies.  The facility must also report a death of a resident
  10-53  occurring within 24 hours after the resident is transferred from
  10-54  the facility to a hospital.
  10-55        (b)  The facility must make the report on a form prescribed
  10-56  by the department.  The report must contain the name and social
  10-57  security number of the deceased.
  10-58        (c)  The department shall correlate reports under this
  10-59  section with death certificate information to develop data relating
  10-60  to the:
  10-61              (1)  name and age of the deceased;
  10-62              (2)  official cause of death listed on the death
  10-63  certificate;
  10-64              (3)  date, time, and place of death; and
  10-65              (4)  name and address of the facility in which the
  10-66  deceased resided.
  10-67        (d)  Unless specified by board rule, and except as provided
  10-68  by Subsection (e), a record under this section is confidential and
  10-69  not subject to the provisions of Chapter 552, Government Code.
  10-70        (e)  The department shall develop statistical information on
   11-1  official causes of death to determine patterns and trends of
   11-2  incidents of death among the persons with mental retardation and
   11-3  related conditions and in specific facilities.  Information
   11-4  developed under this subsection is public.
   11-5        (f)  A licensed facility shall make available historical
   11-6  statistics on all required information on request of an applicant
   11-7  or applicant's representative.
   11-8           (Sections 251.134-251.150 reserved for expansion
   11-9                      SUBCHAPTER F.  MEDICAL CARE
  11-10        Sec. 251.151.  APPLICATION OF OTHER LAW.  (a)  Except as
  11-11  provided by Subsection (c), Subchapter F, Chapter 242, applies to a
  11-12  facility.
  11-13        (b)  In applying Subchapter F, Chapter 242, to a facility,
  11-14  the term "resident" has the meaning assigned by Section 251.002 and
  11-15  the term "institution" means a facility.
  11-16        (c)  Section 242.160 does not apply to a facility.
  11-17           (Sections 251.152-251.180 reserved for expansion
  11-18                      SUBCHAPTER G.  RESPITE CARE
  11-19        Sec. 251.181.  DEFINITIONS.  In this subchapter:
  11-20              (1)  "Plan of care" means a written description of the
  11-21  care, training, and treatment needed by a person during respite
  11-22  care.
  11-23              (2)  "Respite care" means the provision by a facility
  11-24  to a person, for not more than two weeks for each stay in the
  11-25  facility, of:
  11-26                    (A)  room and board; and
  11-27                    (B)  care at the level ordinarily provided for
  11-28  residents.
  11-29        Sec. 251.182.  RESPITE CARE.  (a)  A facility licensed under
  11-30  this chapter may provide respite care for an individual who has a
  11-31  diagnosis of mental retardation or a related condition without
  11-32  regard to whether the individual is eligible to receive
  11-33  intermediate care services under federal law.
  11-34        (b)  The board may adopt rules for the regulation of respite
  11-35  care provided by a facility licensed under this chapter.
  11-36        Sec. 251.183.  PLAN OF CARE.  (a)  The facility and the
  11-37  person arranging the care must agree on the plan of care and the
  11-38  plan must be filed at the facility before the facility admits the
  11-39  person for the care.
  11-40        (b)  The plan of care must be signed by:
  11-41              (1)  a licensed physician if the person for whom the
  11-42  care is arranged needs medical care or treatment; or
  11-43              (2)  the person arranging for the respite care if
  11-44  medical care or treatment is not needed.
  11-45        (c)  The facility may keep an agreed plan of care for a
  11-46  person for not longer than six months from the date on which it is
  11-47  received.  During that period, the facility may admit the person as
  11-48  frequently as is needed and as accommodations are available.
  11-49        Sec. 251.184.  NOTIFICATION.  A facility that offers respite
  11-50  care shall notify the department in writing that it offers respite
  11-51  care.
  11-52        Sec. 251.185.  INSPECTIONS.  The department, at the time of
  11-53  an ordinary licensing inspection or at other times determined
  11-54  necessary by the department, shall inspect a facility's records of
  11-55  respite care services, physical accommodations available for
  11-56  respite care, and the plan of care records to ensure that the
  11-57  respite care services comply with the licensing standards of this
  11-58  chapter and with any rules the board may adopt to regulate respite
  11-59  care services.
  11-60        Sec. 251.186.  SUSPENSION.  (a)  The department may require a
  11-61  facility to cease providing respite care if the department
  11-62  determines that the respite care does not meet the standards
  11-63  required by this chapter and that the facility cannot comply with
  11-64  those standards in the respite care it provides.
  11-65        (b)  The department may suspend the license of a facility
  11-66  that continues to provide respite care after receiving a written
  11-67  order from the department to cease.
  11-68           (Sections 251.187-251.250 reserved for expansion
  11-69            SUBCHAPTER H.  ARBITRATION OF CERTAIN DISPUTES
  11-70        Sec. 251.251.  SCOPE OF SUBCHAPTER.  This subchapter applies
   12-1  to any dispute between a facility licensed under this chapter and
   12-2  the department relating to:
   12-3              (1)  renewal of a license under Section 251.033;
   12-4              (2)  suspension of a license or closing of a facility
   12-5  under Section 251.061;
   12-6              (3)  assessment of a civil penalty under Section
   12-7  251.064; or
   12-8              (4)  assessment of a monetary penalty under Section
   12-9  251.065.
  12-10        Sec. 251.252.  ELECTION OF ARBITRATION.  (a)  An affected
  12-11  facility may elect binding arbitration of any dispute to which this
  12-12  subchapter applies.  Arbitration under this subchapter is an
  12-13  alternative to a contested case hearing or to a judicial proceeding
  12-14  relating to the assessment of a civil penalty.
  12-15        (b)  An affected facility may elect arbitration under this
  12-16  subchapter by filing the election with the department not later
  12-17  than the 10th day after a notice of hearing relating to any dispute
  12-18  described by Section 251.251 is received by the facility.
  12-19        (c)  The department may elect arbitration under this
  12-20  subchapter by notifying the facility of the election not later than
  12-21  the date that the facility may elect arbitration under Subsection
  12-22  (b).
  12-23        (d)  An election to engage in arbitration under this
  12-24  subchapter is irrevocable and binding on the facility and the
  12-25  department.
  12-26        Sec. 251.253.  ARBITRATION PROCEDURES.  (a)  The arbitration
  12-27  shall be conducted by an arbitrator.
  12-28        (b)  The arbitration and the appointment of the arbitrator
  12-29  shall be conducted in accordance with rules adopted by the chief
  12-30  administrative law judge of the State Office of Administrative
  12-31  Hearings.  Before adopting rules under this subsection, the chief
  12-32  administrative law judge shall consult with the department and
  12-33  shall consider appropriate rules developed by any nationally
  12-34  recognized association that performs arbitration services.
  12-35        (c)  The cost of the arbitration shall be shared equally by
  12-36  the department and the facility.  The total fees and expenses paid
  12-37  for an arbitrator for a day may not exceed $500.
  12-38        (d)  The State Office of Administrative Hearings may
  12-39  designate a nationally recognized association that performs
  12-40  arbitration services to conduct arbitrations under this subchapter
  12-41  and may, after consultation with the department, contract with that
  12-42  association for the arbitrations.
  12-43        Sec. 251.254.  ARBITRATOR:  QUALIFICATIONS.  Each arbitrator
  12-44  must be on an approved list of a nationally recognized association
  12-45  that performs arbitration services or be otherwise qualified as
  12-46  provided in the rules adopted under Section 251.253(b).
  12-47        Sec. 251.255.  ARBITRATOR:  SELECTION.  The arbitrator shall
  12-48  be appointed in accordance with the rules adopted under Section
  12-49  251.253(b).
  12-50        Sec. 251.256.  DUTIES OF ARBITRATOR.  The arbitrator shall:
  12-51              (1)  protect the interests of the department and the
  12-52  facility;
  12-53              (2)  ensure that all relevant evidence has been
  12-54  disclosed to the arbitrator, department, and facility; and
  12-55              (3)  render an order consistent with this chapter and
  12-56  the rules adopted under this chapter.
  12-57        Sec. 251.257.  SCHEDULING OF ARBITRATION.  (a)  The
  12-58  arbitrator conducting the arbitration shall schedule arbitration to
  12-59  be held not later than the 90th day after the date the arbitrator
  12-60  is selected and shall notify the department and the facility of the
  12-61  scheduled date.
  12-62        (b)  The arbitrator may grant a continuance of the
  12-63  arbitration at the request of the department or facility.  The
  12-64  arbitrator may not unreasonably deny a request for a continuance.
  12-65        Sec. 251.258.  EXCHANGE AND FILING OF INFORMATION.   Not
  12-66  later than the seventh day before the first day of arbitration, the
  12-67  department and the facility shall exchange and file with the
  12-68  arbitrator:
  12-69              (1)  all documentary evidence not previously exchanged
  12-70  and filed that is relevant to the dispute; and
   13-1              (2)  information relating to a proposed resolution of
   13-2  the dispute.
   13-3        Sec. 251.259.  ATTENDANCE REQUIRED.  (a)  The arbitrator may
   13-4  proceed in the absence of any party or representative of a party
   13-5  who, after notice of the proceeding, fails to be present or to
   13-6  obtain a postponement.
   13-7        (b)  An arbitrator may not make an order solely on the
   13-8  default of a party and shall require the party who is present to
   13-9  submit evidence, as required by the arbitrator, before making an
  13-10  award.
  13-11        Sec. 251.260.  TESTIMONY; RECORD.  (a)  The arbitrator may
  13-12  require witnesses to testify under oath and shall require testimony
  13-13  under oath if requested by the department or the facility.
  13-14        (b)  The department shall make an electronic recording of the
  13-15  proceeding.
  13-16        (c)  An official stenographic record of the proceeding is not
  13-17  required, but the department or the facility may make a
  13-18  stenographic record.  The party that makes the stenographic record
  13-19  shall pay the expense of having the record made.
  13-20        Sec. 251.261.  EVIDENCE.  (a)  The department or the facility
  13-21  may offer evidence as they desire and shall produce additional
  13-22  evidence as the arbitrator considers necessary to understand and
  13-23  resolve the dispute.
  13-24        (b)  The arbitrator is the judge of the relevance and
  13-25  materiality of the evidence offered.  Strict conformity to rules
  13-26  applicable to judicial proceedings is not required.
  13-27        Sec. 251.262.  CLOSING STATEMENTS; BRIEFS.  The department
  13-28  and the facility may present closing statements as they desire, but
  13-29  the record may not remain open for written briefs unless requested
  13-30  by the arbitrator.
  13-31        Sec. 251.263.  EX PARTE CONTACTS PROHIBITED.  (a)  Except as
  13-32  provided by Subsection (b), the department and the facility may not
  13-33  communicate with an arbitrator other than at an oral hearing unless
  13-34  the parties and the arbitrator agree otherwise.
  13-35        (b)  Any oral or written communication, other than a
  13-36  communication authorized under Subsection (a), from the parties to
  13-37  an arbitrator shall be directed to the association that is
  13-38  conducting the arbitration or, if there is no association
  13-39  conducting the arbitration, to the State Office of Administrative
  13-40  Hearings, for transmittal to the arbitrator.
  13-41        Sec. 251.264.  ORDER.  (a)  The arbitrator may enter any
  13-42  order that may be entered by the department, board, commissioner,
  13-43  or court under this chapter in relation to a dispute described by
  13-44  Section 251.251.
  13-45        (b)  The arbitrator shall enter the order not later than the
  13-46  60th day after the last day of the arbitration.
  13-47        (c)  The arbitrator shall base the order on the facts
  13-48  established at arbitration, including stipulations of the parties,
  13-49  and on the law as properly applied to those facts.
  13-50        (d)  The order must:
  13-51              (1)  be in writing;
  13-52              (2)  be signed and dated by the arbitrator; and
  13-53              (3)  include a statement of the arbitrator's decision
  13-54  on the contested issues and the department's and facility's
  13-55  stipulations on uncontested issues.
  13-56        (e)  The arbitrator shall file a copy of the order with the
  13-57  department and shall notify the department and the facility in
  13-58  writing of the decision.
  13-59        Sec. 251.265.  EFFECT OF ORDER.  An order of an arbitrator
  13-60  under this subchapter is final and binding on all parties.  Except
  13-61  as provided by Section 251.267, there is no right to appeal.
  13-62        Sec. 251.266.  CLERICAL ERROR.  For the purpose of correcting
  13-63  a clerical error, an arbitrator retains jurisdiction of the award
  13-64  for 20 days after the date of the award.
  13-65        Sec. 251.267.  COURT VACATING ORDER.  (a)  On application of
  13-66  the facility, a court shall vacate an arbitrator's order with
  13-67  respect to an arbitration conducted at the election of the
  13-68  department on a finding that:
  13-69              (1)  the order was procured by corruption, fraud, or
  13-70  misrepresentation;
   14-1              (2)  the decision of the arbitrator was arbitrary or
   14-2  capricious and against the weight of the evidence; or
   14-3              (3)  the order exceeded the jurisdiction of the
   14-4  arbitrator under Section 251.264(a).
   14-5        (b)  If the order is vacated, the dispute shall be remanded
   14-6  to the department for another arbitration proceeding.
   14-7        (c)  A suit to vacate an arbitrator's order must be filed not
   14-8  later than the 30th day after:
   14-9              (1)  the date of the award; or
  14-10              (2)  the date the facility knew or should have known of
  14-11  a basis for suit under this section, but in no event later than the
  14-12  first anniversary of the date of the order.
  14-13        (d)  Venue for a suit to vacate an arbitrator's order is in
  14-14  the county in which the arbitration was conducted.
  14-15        Sec. 251.268.  NO ARBITRATION OF EMERGENCY ORDER OR CLOSING
  14-16  ORDER.  This subchapter does not apply to an order issued under
  14-17  Section 251.062.
  14-18        SECTION 2.  Section 242.002(6), Health and Safety Code, is
  14-19  amended to read as follows:
  14-20              (6)  "Institution" means<:>
  14-21                    <(A)>  an establishment that:
  14-22                    (A) <(i)>  furnishes, in one or more facilities,
  14-23  food and shelter to four or more persons who are unrelated to the
  14-24  proprietor of the establishment; and
  14-25                    (B) <(ii)>  provides minor treatment under the
  14-26  direction and supervision of a physician licensed by the Texas
  14-27  State Board of Medical Examiners, or other services that meet some
  14-28  need beyond the basic provision of food, shelter, and laundry<; or>
  14-29                    <(B)  a foster care type residential facility
  14-30  that provides room and board to fewer than five persons who:>
  14-31                          <(i)  are not related within the second
  14-32  degree of consanguinity or affinity, as determined under Article
  14-33  5996h, Revised Statutes, to the proprietor; and>
  14-34                          <(ii)  because of their physical or mental
  14-35  limitation, or both, require a level of care and services suitable
  14-36  to their needs that contributes to their health, comfort, and
  14-37  welfare>.
  14-38        SECTION 3.  Section 242.003, Health and Safety Code, is
  14-39  amended to read as follows:
  14-40        Sec. 242.003.  EXEMPTIONS.  <(a)>  Except as otherwise
  14-41  provided, this chapter does not apply to:
  14-42              (1)  a hotel or other similar place that furnishes only
  14-43  food, lodging, or both, to its guests;
  14-44              (2)  a hospital;
  14-45              (3)  an establishment conducted by or for the adherents
  14-46  of a well-recognized church or religious denomination for the
  14-47  purpose of providing facilities for the care or treatment of the
  14-48  sick who depend exclusively on prayer or spiritual means for
  14-49  healing, without the use of any drug or material remedy, if the
  14-50  establishment complies with safety, sanitary, and quarantine laws
  14-51  and rules;
  14-52              (4)  an establishment that furnishes, in addition to
  14-53  food, shelter, and laundry, only baths and massages;
  14-54              (5)  an institution operated by a person licensed by
  14-55  the Texas Board of Chiropractic Examiners;
  14-56              (6)  a facility that:
  14-57                    (A)  primarily engages in training, habilitation,
  14-58  rehabilitation, or education of clients or residents;
  14-59                    (B)  is operated under the jurisdiction of a
  14-60  state or federal agency, including the Texas Rehabilitation
  14-61  Commission, Texas Department of Mental Health and Mental
  14-62  Retardation, Texas Department of Human Services, Texas Commission
  14-63  for the Blind, Texas Commission on Alcohol and Drug Abuse,
  14-64  institutional division of the Texas Department of Criminal Justice,
  14-65  and the Veteran's Administration; and
  14-66                    (C)  is certified through inspection or
  14-67  evaluation as meeting the standards established by the state or
  14-68  federal agency; <and>
  14-69              (7)  a foster care type residential facility that
  14-70  serves fewer than five persons and operates under rules adopted by
   15-1  the Texas Department of Human Services; and
   15-2              (8)  a facility licensed under Chapter 251 or exempt
   15-3  from licensure under Section 251.003.
   15-4        <(b)  An institution described by Section 242.002(6)(C) is
   15-5  subject to licensing under this chapter only if written application
   15-6  is made for participation in the intermediate care program under
   15-7  federal law.>
   15-8        SECTION 4.  (a)  Except as provided by Subsection (b) of this
   15-9  section, this Act takes effect September 1, 1995.
  15-10        (b)  Section 2 of this Act takes effect January 1, 1996.
  15-11        SECTION 5.  (a)  Notwithstanding Sections 251.031 and
  15-12  251.063, Health and Safety Code, as added by this Act:
  15-13              (1)  a facility is not required to be licensed under
  15-14  Chapter 251, Health and Safety Code, as added by this Act, before
  15-15  January 1, 1996; and
  15-16              (2)  a facility that is required to be licensed under
  15-17  that chapter and that is, on the effective date of this Act,
  15-18  licensed under Chapter 242, Health and Safety Code, may continue to
  15-19  operate under the license issued under Chapter 242 until the later
  15-20  of:
  15-21                    (A)  December 31, 1995; or
  15-22                    (B)  the date on which the license is subject to
  15-23  renewal.
  15-24        (b)  A license issued under Chapter 242, Health and Safety
  15-25  Code, to an institution that is required to be licensed as a
  15-26  facility under Chapter 251, Health and Safety Code, as added by
  15-27  this Act, may not be renewed after December 1, 1995.
  15-28        SECTION 6.  Subchapter H, Chapter 251, Health and Safety
  15-29  Code, as added by this Act, applies only to a dispute described by
  15-30  Section 251.251, Health and Safety Code, as added by this Act, with
  15-31  respect to which formal proceedings are commenced on or after
  15-32  January 1, 1996.
  15-33        SECTION 7.  The importance of this legislation and the
  15-34  crowded condition of the calendars in both houses create an
  15-35  emergency and an imperative public necessity that the
  15-36  constitutional rule requiring bills to be read on three several
  15-37  days in each house be suspended, and this rule is hereby suspended.
  15-38                               * * * * *