SRC-CDH S.B. 618 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 618
By: Moncrief
Health & Human Services
3-11-97
As Filed


DIGEST 

Currently, as the aging population expands and the state attempts to
control its Medicaid budget, growth industries which represent an
alternative to nursing facilities are outpacing the state's ability to
ensure health and safety.  Facilities which provide food and shelter and
either provide personal care services or supportive services represent one
such industry.  Problems arise because customers are often unaware of
which facilities are licensed and what services are provided, and the
Department of Human Services has little statutory regulatory authority.
This legislation requires establishments not licensed as personal care
facilities to execute contracts with their residents and disclose their
licensure status in advertisements and promotional material in order to
better inform consumers.  In addition, S.B. 618 sets forth remedies and
civil penalties for violations in an attempt to better ensure quality care
in a rapidly expanding industry. 

PURPOSE

As proposed, S.B. 618 establishes the regulation of certain residential
facilities and provides civil penalties for violations.   

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Department of Human Services
in SECTION 5 (Section 247.047, Health and Safety Code) of this bill.   

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 6, Human Resources Code, by adding Chapter 105, as
follows: 

CHAPTER 105.  RESIDENTIAL FACILITIES FOR THE ELDERLY

Sec. 105.001.  DEFINITIONS.  Defines "establishment," "qualifying adult
resident," and "supportive services." 

Sec. 105.002.  EXEMPT FACILITIES.  Provides that certain nursing
facilities, continuing care facilities, and housing with supportive
services are exempt from the application of this chapter.   

Sec. 105.003.  DISCLOSURE REQUIRED IN CONTRACT.  Sets forth the terms by
which an establishment that is not licensed as a personal care facility
under Chapter 247, Health and Safety Code, is required to execute a
contract with each of its residents that contains certain information.   

Sec. 105.004.  ADVERTISING DISCLOSURE.  Requires any advertisement or
promotional material distributed to the public for an establishment to
disclose whether the establishment is licensed as a personal care facility
under Chapter 247, Health and Safety Code. 

Sec. 105.005.  REMEDIES.  Authorizes a resident of an establishment that
has violated Section 105.003 or 105.004 to obtain or exercise one or more
of the remedies available to a tenant under Section 92.205, Property Code.

 SECTION 2. Amends Section 247.002(3), Health and Safety Code, to amend
the definition of "personal care facility."  

SECTION 3. Amends Section 247.021, Health and Safety Code, to prohibit a
person from establishing or operating a personal care facility without
possessing a license under this chapter for each such facility the person
establishes or operates, rather than from doing so without a license
issued under this chapter. 

SECTION 4. Amends Section 247.045, Health and Safety Code, to provide that
a person who does not possess a license for a personal care facility as
required by Section 247.021 is subject to a civil penalty of not less than
$1,000 or more than $10,000 for each act of violation, with each day of a
continuing violation constituting a separate ground for recovery.  Makes
conforming changes. 

SECTION 5. Amends Chapter 247C, Health and Safety Code, by adding Section
247.047, as follows: 

Sec. 247.047.  AUTHORITY TO DEVELOP ALTERNATIVE REMEDIES.  Authorizes the
Texas Department of Human Services, by rule, and in addition to the
enforcement provisions authorized by this chapter, to develop alternative
remedies as necessary to administer this chapter, including, but not
limited to, the remedies authorized in Chapter 242. 

SECTION 6. Makes application of this Act prospective.

SECTION 7. Effective date:  September 1, 1997.

SECTION 8. Emergency clause.