By Coleman                                      H.B. No. 1787

      75R4593 SKB-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to intermediate care facilities for the mentally retarded;

 1-3     imposing civil and criminal 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 252 to read as follows:

 1-7         CHAPTER 252.  INTERMEDIATE CARE FACILITIES FOR THE MENTALLY

 1-8                                  RETARDED

 1-9                      SUBCHAPTER A.  GENERAL PROVISIONS

1-10           Sec. 252.001.  PURPOSE.  The purpose of this chapter is to

1-11     promote the public health, safety, and welfare by providing for the

1-12     development, establishment, and enforcement of standards for the

1-13     provision of services to individuals residing in intermediate care

1-14     facilities for the mentally retarded and the establishment,

1-15     construction, maintenance, and operation of facilities providing

1-16     this service that, in light of advancing knowledge, will promote

1-17     quality in the delivery of services and treatment of residents.

1-18           Sec. 252.002.  DEFINITIONS.  In this chapter:

1-19                 (1)  "Board" means the Texas Board of Human Services.

1-20                 (2)  "Department" means the Texas Department of Human

1-21     Services.

1-22                 (3)  "Designee" means a state agency or entity with

1-23     which the department contracts to perform specific, identified

1-24     duties related to the fulfillment of a responsibility prescribed by

 2-1     this chapter.

 2-2                 (4)  "Facility" means a home or other establishment

 2-3     that provides, on a regular basis, intermediate care services to

 2-4     four or more individuals who are unrelated to the owner in

 2-5     accordance with 42 C.F.R. Section 435.1009.

 2-6                 (5)  "Governmental unit" means the state or a political

 2-7     subdivision of the state, including a county or municipality.

 2-8                 (6)  "Person" means an individual, firm, partnership,

 2-9     corporation, association, or joint stock company, and includes a

2-10     legal successor of those entities.

2-11                 (7)  "Resident" means an individual, including a

2-12     client, with mental retardation or a related condition who is

2-13     residing in a facility licensed under this chapter.

2-14           Sec. 252.003.  EXEMPTIONS.  Except as otherwise provided by

2-15     this chapter, this chapter does not apply to an establishment that:

2-16                 (1)  provides training, habilitation, rehabilitation,

2-17     or education to individuals with mental retardation or a related

2-18     condition;

2-19                 (2)  is operated under the jurisdiction of a state or

2-20     federal agency, including the department, the Texas Rehabilitation

2-21     Commission, the Texas Department of Mental Health and Mental

2-22     Retardation, the Texas Commission for the Blind, the Texas

2-23     Commission on Alcohol and Drug Abuse, the institutional division of

2-24     the Texas Department of Criminal Justice, or the Veterans

2-25     Administration; and

2-26                 (3)  is certified through inspection or evaluation as

2-27     meeting the standards established by the state or federal agency.

 3-1           Sec. 252.004.  ALLOCATED FEDERAL MONEY.  The department may

 3-2     accept and use any money allocated by the federal government to the

 3-3     department for administrative expenses.

 3-4           Sec. 252.005.  LANGUAGE REQUIREMENTS PROHIBITED.  A facility

 3-5     may not prohibit a resident or employee from communicating in the

 3-6     person's native language with another resident or employee for the

 3-7     purpose of acquiring care, training, or treatment.

 3-8           Sec. 252.006.  RIGHTS OF RESIDENTS.  Each facility shall

 3-9     implement and enforce Chapter 102, Human Resources Code.

3-10           Sec. 252.007.  PAPERWORK REDUCTION RULES.  (a)  The

3-11     department and any designee of the department shall:

3-12                 (1)  adopt rules to reduce the amount of paperwork a

3-13     facility must complete and retain; and

3-14                 (2)  attempt to reduce the amount of paperwork to the

3-15     minimum amount required by state and federal law unless the

3-16     reduction would jeopardize resident safety.

3-17           (b)  The department, any designee of the department, and each

3-18     facility shall work together to review rules and propose changes in

3-19     paperwork requirements so that additional time is available for

3-20     direct resident care.

3-21           Sec. 252.008.  RULES GENERALLY.  The department shall adopt

3-22     rules related to the administration and implementation of this

3-23     chapter.

3-24           Sec. 252.009.  CONSULTATION AND COORDINATION.  (a)  Whenever

3-25     possible, the department shall:

3-26                 (1)  use the services of and consult with state and

3-27     local agencies in carrying out the department's functions under

 4-1     this chapter; and

 4-2                 (2)  use the facilities of the department or a designee

 4-3     of the department, particularly in establishing and maintaining

 4-4     standards relating to the humane treatment of residents.

 4-5           (b)  The department may cooperate with local public health

 4-6     officials of a municipality or county in carrying out this chapter

 4-7     and may delegate to those officials the power to make inspections

 4-8     and recommendations to the department under this chapter.

 4-9           (c)  The department may coordinate its personnel and

4-10     facilities with a local agency of a municipality or county and may

4-11     provide advice to the municipality or county if the municipality or

4-12     county decides to supplement the state program with additional

4-13     rules required to meet local conditions.

4-14           Sec. 252.010.  CHANGE OF ADMINISTRATORS; FEE.  A facility

4-15     that hires a new administrator or other person designated as the

4-16     chief management officer for the facility shall:

4-17                 (1)  notify the department in writing of the change not

4-18     later than the 30th day after the date on which the change becomes

4-19     effective; and

4-20                 (2)  pay a $20 administrative fee to the department.

4-21           Sec. 252.011.  PROHIBITION OF REMUNERATION.  (a)  A facility

4-22     may not receive monetary or other remuneration from a person or

4-23     agency that furnishes services or materials to the facility or

4-24     residents for a fee.

4-25           (b)  The department may revoke the license of a facility that

4-26     violates Subsection (a).

4-27              (Sections 252.012-252.030 reserved for expansion

 5-1               SUBCHAPTER B.  LICENSING, FEES, AND INSPECTIONS

 5-2           Sec. 252.031. LICENSE REQUIRED.  A person or governmental

 5-3     unit, acting severally or jointly with any other person or

 5-4     governmental unit, may not establish, conduct, or maintain a

 5-5     facility in this state without a license issued under this chapter.

 5-6           Sec. 252.032.  LICENSE APPLICATION.  (a)  An application for

 5-7     a license is made to the department on a form provided by the

 5-8     department and must be accompanied by the license fee adopted under

 5-9     Section 252.034.

5-10           (b)  The application must contain information that the

5-11     department requires.  The department may require affirmative

5-12     evidence of ability to comply with the standards and rules adopted

5-13     under this chapter.

5-14           Sec. 252.033.  ISSUANCE AND RENEWAL OF LICENSE.  (a)   The

5-15     department shall issue a license if, after inspection and

5-16     investigation, it finds that the applicant and facility meet the

5-17     requirements established under this chapter.

5-18           (b)  The department may issue a license only for:

5-19                 (1)  the premises and persons or governmental unit

5-20     named in the application; and

5-21                 (2)  the maximum number of beds specified in the

5-22     application.

5-23           (c)  A license may not be transferred or assigned.

5-24           (d)  A license is renewable on the second anniversary of

5-25     issuance or renewal of the license, after:

5-26                 (1)  an inspection;

5-27                 (2)  filing and approval of a renewal report; and

 6-1                 (3)  payment of the renewal fee.

 6-2           (e)  The renewal report required under Subsection (d)(2) must

 6-3     be filed in accordance with rules adopted by the department that

 6-4     specify the form of the report, the date it must be submitted, and

 6-5     the information it must contain.

 6-6           (f)  The department may not issue a license under this

 6-7     chapter unless the beds provided under the license are approved

 6-8     under the state's plan on long-term care facilities for persons

 6-9     with mental retardation, as described by Section 533.062.

6-10           (g)  A license or renewal fee imposed under this chapter is

6-11     an allowable cost for reimbursement under the state Medicaid

6-12     program.  An increase in the amount of a fee shall be reflected in

6-13     reimbursement rates prospectively.

6-14           Sec. 252.034.  LICENSE FEES.  (a)  The board, by rule, may

6-15     adopt a fee for a license issued under this chapter.  The fee may

6-16     not exceed $150 plus $5 for each unit of capacity or bed space for

6-17     which the license is sought.

6-18           (b)  The license fee must be paid with each application for

6-19     an initial license or for a renewal or change of ownership of a

6-20     license.

6-21           (c)  A facility operated by the state is not required to pay

6-22     a license fee.

6-23           (d)  The board may adopt an additional fee for the approval

6-24     of an increase in bed space.

6-25           (e)  All license fees collected under this section shall be

6-26     deposited in the state treasury to the credit of the department.

6-27           Sec. 252.035.  DENIAL, SUSPENSION, OR REVOCATION OF LICENSE.

 7-1     (a)  The department, after providing notice and opportunity for a

 7-2     hearing to the applicant or license holder, may deny, suspend, or

 7-3     revoke a license if the department finds that the applicant or

 7-4     license holder has substantially failed to comply with the

 7-5     requirements established under this chapter.

 7-6           (b)  The status of an applicant for a license or a license

 7-7     holder is preserved until final disposition of the contested

 7-8     matter, except as the court having jurisdiction of a judicial

 7-9     review of the matter may order in the public interest for the

7-10     welfare and safety of the residents.

7-11           Sec. 252.036.  MINIMUM STANDARDS.  The board may adopt,

7-12     publish, and enforce minimum standards relating to:

7-13                 (1)  the construction or remodeling of a facility,

7-14     including plumbing, heating, lighting, ventilation, and other

7-15     housing conditions, to ensure the residents' health, safety,

7-16     comfort, and protection from fire hazard;

7-17                 (2)  sanitary and related conditions in a facility and

7-18     its surroundings, including water supply, sewage disposal, food

7-19     handling, and general hygiene in order to ensure the residents'

7-20     health, safety, and comfort;

7-21                 (3)  equipment essential to the residents' health and

7-22     welfare;

7-23                 (4)  the reporting and investigation of injuries,

7-24     incidents, and unusual accidents and the establishment of other

7-25     policies and procedures necessary to ensure resident safety;

7-26                 (5)  behavior management, including use of seclusion

7-27     and physical restraints;

 8-1                 (6)  policies and procedures for the control of

 8-2     communicable diseases in employees and residents;

 8-3                 (7)  the use and administration of medication in

 8-4     conformity with applicable law and rules for pharmacy services;

 8-5                 (8)  specialized nutrition support such as delivery of

 8-6     enteral feedings and parenteral nutrients;

 8-7                 (9)  requirements for in-service education of each

 8-8     employee who has any contact with residents;

 8-9                 (10)  the regulation of the number and qualification of

8-10     all personnel, including management and professional support

8-11     personnel, responsible for any part of the care given to residents;

8-12     and

8-13                 (11)  the quality of life  and the provision of active

8-14     treatment to residents.

8-15           Sec. 252.037.  REASONABLE TIME TO COMPLY.  The board, by

8-16     rule, shall give a facility that is in operation when a rule or

8-17     standard is adopted under this chapter a reasonable time to comply

8-18     with the rule or standard.

8-19           Sec. 252.038.  FIRE SAFETY REQUIREMENTS.  (a)  A facility

8-20     shall comply with fire safety requirements established under this

8-21     section.

8-22           (b)  The board, by rule, shall adopt the fire safety

8-23     standards applicable to the facility.  The fire safety standards

8-24     must be the same as the fire safety standards established by an

8-25     edition of the Life Safety Code of the National Fire Protection

8-26     Association.  If required by federal law or regulation, the edition

8-27     selected may be different for facilities or portions of facilities

 9-1     operated or approved for construction at different times.

 9-2           (c)  A facility that is licensed under applicable law on

 9-3     September 1, 1997, must comply with the fire safety standards,

 9-4     including fire safety standards imposed by municipal ordinance,

 9-5     applicable to the facility on that date.

 9-6           (d)  The rules adopted under this section do not prevent a

 9-7     facility licensed under this chapter from voluntarily conforming to

 9-8     fire safety standards that are compatible with, equal to, or more

 9-9     stringent than those adopted by the board.

9-10           (e)  Notwithstanding any other provision of this section, a

9-11     municipality may enact additional and more stringent fire safety

9-12     standards applicable to new construction begun on or after

9-13     September 1, 1997.

9-14           Sec. 252.039.  POSTING.  Each facility shall prominently and

9-15     conspicuously post for display in a public area of the facility

9-16     that is readily available to residents, employees, and visitors:

9-17                 (1)  the license issued under this chapter;

9-18                 (2)  a sign prescribed by the department that specifies

9-19     complaint procedures established under this chapter or rules

9-20     adopted under this chapter and that specifies how complaints may be

9-21     registered with the department;

9-22                 (3)  a notice in a form prescribed by the department

9-23     stating that inspection and related reports are available at the

9-24     facility for public inspection and providing the department's

9-25     toll-free telephone number that may be used to obtain information

9-26     concerning the facility; and

9-27                 (4)  a concise summary of the most recent inspection

 10-1    report relating to the facility.

 10-2          Sec. 252.040.  INSPECTIONS.  (a)  The department or the

 10-3    department's designee may make any inspection, survey, or

 10-4    investigation that it considers necessary and may enter the

 10-5    premises of a facility at reasonable times to make an inspection,

 10-6    survey, or investigation in accordance with board rules.

 10-7          (b)  The department is entitled to access to books, records,

 10-8    and other documents maintained by or on behalf of a facility to the

 10-9    extent necessary to enforce this chapter and the rules adopted

10-10    under this chapter.

10-11          (c)  A license holder or an applicant for a license is

10-12    considered to have consented to entry and inspection of the

10-13    facility by a representative of the department in accordance with

10-14    this chapter.

10-15          (d)  The department shall establish procedures to preserve

10-16    all relevant evidence of conditions the department finds during an

10-17    inspection, survey, or investigation that the department reasonably

10-18    believes threaten the health and safety of a resident.  The

10-19    procedures may include photography or photocopying of relevant

10-20    documents, such as license holder's notes, physician's orders, and

10-21    pharmacy records, for use in any legal proceeding.

10-22          (e)  When photographing a resident, the department:

10-23                (1)  shall respect the privacy of the resident to the

10-24    greatest extent possible; and

10-25                (2)  may not make public the identity of the resident.

10-26          (f)  A facility, an officer or employee of a facility, and a

10-27    resident's attending physician are not civilly liable for

 11-1    surrendering confidential or private material under this section,

 11-2    including physician's orders, pharmacy records, notes and memoranda

 11-3    of a state office, and resident files.

 11-4          (g)  The department shall establish in clear and concise

 11-5    language a form to summarize each inspection report and complaint

 11-6    investigation report.

 11-7          (h)  The department shall establish proper procedures to

 11-8    ensure that copies of all forms and reports under this section are

 11-9    made available to consumers, service recipients, and the relatives

11-10    of service recipients as the department considers proper.

11-11          Sec. 252.041.  UNANNOUNCED INSPECTIONS.  (a)  Each licensing

11-12    period, the department shall conduct at least two unannounced

11-13    inspections of each facility.

11-14          (b)  In order to ensure continuous compliance, the department

11-15    shall randomly select a sufficient percentage of facilities for

11-16    unannounced inspections to be conducted between 5 p.m. and 8 a.m.

11-17    Those inspections must be cursory to avoid to the greatest extent

11-18    feasible any disruption of the residents.

11-19          (c)  The department may require additional inspections.

11-20          (d)  As considered appropriate and necessary by the

11-21    department, the department may invite at least one person as a

11-22    citizen advocate to participate in inspections.  The invited

11-23    advocate must be an individual who has an interest in or who is

11-24    employed by or affiliated with an organization or entity that

11-25    represents, advocates for, or serves individuals with mental

11-26    retardation or a related condition.

11-27          Sec. 252.042.  DISCLOSURE OF UNANNOUNCED INSPECTIONS;

 12-1    CRIMINAL PENALTY.  (a)  Except as expressly provided by this

 12-2    chapter, a person commits an offense if the person intentionally,

 12-3    knowingly, or recklessly discloses to an unauthorized person the

 12-4    date, time, or any other fact about an unannounced inspection of a

 12-5    facility before the inspection occurs.

 12-6          (b)  In this section, "unauthorized person" does not include:

 12-7                (1)  the department;

 12-8                (2)  the office of the attorney general;

 12-9                (3)  a representative of an agency or organization when

12-10    a Medicaid survey is made concurrently with a licensing inspection;

12-11    or

12-12                (4)  any other person or entity authorized by law to

12-13    make an inspection or to accompany an inspector.

12-14          (c)  An offense under this section is a Class B misdemeanor.

12-15          (d)  A person convicted under this section is not eligible

12-16    for state employment.

12-17          Sec. 252.043.  LICENSING SURVEYS.  The department shall

12-18    provide a team to conduct surveys to validate findings of licensing

12-19    surveys.  The purpose of a validation survey is to assure that

12-20    survey teams throughout the state survey in a fair and consistent

12-21    manner.  A facility subjected to a validation survey must correct

12-22    deficiencies cited by the validation team but is not subject to

12-23    punitive action for those deficiencies.

12-24             (Sections 252.044-252.060 reserved for expansion

12-25                    SUBCHAPTER C.  GENERAL ENFORCEMENT

12-26          Sec. 252.061. EMERGENCY SUSPENSION OR CLOSING ORDER.  (a)

12-27    The department shall suspend a facility's license or order an

 13-1    immediate closing of part of the facility if:

 13-2                (1)  the department finds the facility is operating in

 13-3    violation of the standards prescribed by this chapter; and

 13-4                (2)  the violation creates an immediate threat to the

 13-5    health and safety of a resident.

 13-6          (b)  The board by rule shall provide for the placement of

 13-7    residents during the facility's suspension or closing to ensure

 13-8    their health and safety.

 13-9          (c)  An order suspending a license or closing a part of a

13-10    facility under this section is immediately effective on the date on

13-11    which the license holder receives written notice or a later date

13-12    specified in the order.

13-13          (d)  An order suspending a license or ordering an immediate

13-14    closing of a part of a facility is valid for 10 days after the

13-15    effective date of the order.

13-16          Sec. 252.062. INJUNCTION.  (a)  The department may petition a

13-17    district court for a temporary restraining order to restrain a

13-18    person from continuing a violation of the standards prescribed by

13-19    this chapter if the department finds that the violation creates an

13-20    immediate threat to the health and safety of the facility's

13-21    residents.

13-22          (b)  A district court, on petition of the department, may by

13-23    injunction:

13-24                (1)  prohibit a person from continuing a violation of

13-25    the standards or licensing requirements prescribed by this chapter;

13-26                (2)  restrain or prevent the establishment, conduct,

13-27    management, or operation of a facility without a license issued

 14-1    under this chapter; or

 14-2                (3)  grant the injunctive relief warranted by the facts

 14-3    on a finding by the court that a person is violating the standards

 14-4    or licensing requirements prescribed by this chapter.

 14-5          (c)  The attorney general, on request by the department,

 14-6    shall bring and conduct on behalf of the state a suit authorized by

 14-7    this section.

 14-8          (d)  A suit for a temporary restraining order or other

 14-9    injunctive relief must be brought in the county in which the

14-10    alleged violation occurs.

14-11          Sec. 252.063.  LICENSE REQUIREMENTS; CRIMINAL PENALTY.  (a)

14-12    A person commits an offense if the person violates Section 252.031.

14-13          (b)  An offense under this section is punishable by a fine of

14-14    not more than $1,000 for the first offense and not more than $500

14-15    for each subsequent offense.

14-16          (c)  Each day of a continuing violation after conviction is a

14-17    separate offense.

14-18          Sec. 252.064. CIVIL PENALTY.  (a)  A person who violates this

14-19    chapter or a rule adopted under this chapter is liable for a civil

14-20    penalty of not less than $100 or more than $10,000 for each

14-21    violation if the department determines the violation threatens the

14-22    health and safety of a resident.

14-23          (b)  Each day of a continuing violation constitutes a

14-24    separate ground for recovery.

14-25          (c)  The attorney general, on request of the department,

14-26    shall bring and conduct a suit to collect a civil penalty.  Any

14-27    amount collected shall be remitted to the comptroller for deposit

 15-1    to the credit of the general revenue fund.

 15-2          Sec. 252.065.  ADMINISTRATIVE PENALTY.  (a)  The board may

 15-3    impose an administrative penalty against a person licensed under

 15-4    this chapter who violates this chapter or a rule or order adopted

 15-5    under this chapter.

 15-6          (b)  The penalty for a violation may be in an amount not to

 15-7    exceed $5,000.  Each day a violation continues or occurs is a

 15-8    separate violation for purposes of imposing a penalty.

 15-9          (c)  The amount of the penalty shall be based on:

15-10                (1)  the seriousness of the violation, including the

15-11    nature, circumstances, extent, and gravity of any prohibited acts,

15-12    and the hazard or potential hazard created to the health, safety,

15-13    or economic welfare of the public;

15-14                (2)  the economic harm to property or the environment

15-15    caused by the violation;

15-16                (3)  the history of previous violations;

15-17                (4)  the amount necessary to deter future violations;

15-18                (5)  efforts to correct the violation; and

15-19                (6)  any other matter that justice may require.

15-20          (d)  If the executive director determines that a violation

15-21    has occurred, the director  may issue a report to the board that

15-22    states the facts on which the determination is based and the

15-23    director's recommendation on the imposition of a penalty, including

15-24    a recommendation on the amount of the penalty.

15-25          (e)  Within 14 days after the date the report is issued, the

15-26    executive director shall give written notice of the report to the

15-27    person.  The notice may be given by certified mail.  The notice

 16-1    must include a brief summary of the alleged violation and a

 16-2    statement of the amount of the recommended penalty and must inform

 16-3    the person that the person has a right to a hearing on the

 16-4    occurrence of the violation, the amount of the penalty, or both the

 16-5    occurrence of the violation and the amount of the penalty.

 16-6          (f)  Within 20 days after the date the person receives the

 16-7    notice, the person in writing may accept the determination and

 16-8    recommended penalty of the executive director or may make a written

 16-9    request for a hearing on the occurrence of the violation, the

16-10    amount of the penalty, or both the occurrence of the violation and

16-11    the amount of the penalty.

16-12          (g)  If the person accepts the determination and recommended

16-13    penalty of the executive director, the board by order shall approve

16-14    the determination and impose the recommended penalty.

16-15          (h)  If the person requests a hearing or fails to respond

16-16    timely to the notice, the executive director shall set a hearing

16-17    and give notice of the hearing to the person.  The hearing shall be

16-18    held by an administrative law judge of the State Office of

16-19    Administrative Hearings.  The administrative law judge shall make

16-20    findings of fact and conclusions of law and promptly issue to the

16-21    board a proposal for a decision about the occurrence of the

16-22    violation and the amount of a proposed penalty.  Based on the

16-23    findings of fact, conclusions of law, and proposal for a decision,

16-24    the board by order may find that a violation has occurred and

16-25    impose a penalty or may find that no violation occurred.

16-26          (i)  The notice of the board's order given to the person

16-27    under Chapter 2001, Government Code, must include a statement of

 17-1    the right of the person to judicial review of the order.

 17-2          (j)  Within 30 days after the date the board's order becomes

 17-3    final as provided by Section 2001.144, Government Code, the person

 17-4    shall:

 17-5                (1)  pay the amount of the penalty;

 17-6                (2)  pay the amount of the penalty and file a petition

 17-7    for judicial review contesting the occurrence of the violation, the

 17-8    amount of the penalty, or both the occurrence of the violation and

 17-9    the amount of the penalty; or

17-10                (3)  without paying the amount of the penalty, file a

17-11    petition for judicial review contesting the occurrence of the

17-12    violation, the amount of the penalty, or both the occurrence of the

17-13    violation and the amount of the penalty.

17-14          (k)  Within the 30-day period, a person who acts under

17-15    Subsection (j)(3) of this section may:

17-16                (1)  stay enforcement of the penalty by:

17-17                      (A)  paying the amount of the penalty to the

17-18    court for placement in an escrow account; or

17-19                      (B)  giving to the court a supersedeas bond that

17-20    is approved by the court for the amount of the penalty and that is

17-21    effective until all judicial review of the board's order is final;

17-22    or

17-23                (2)  request the court to stay enforcement of the

17-24    penalty by:

17-25                      (A)  filing with the court a sworn affidavit of

17-26    the person stating that the person is financially unable to pay the

17-27    amount of the penalty and is financially unable to give the

 18-1    supersedeas bond; and

 18-2                      (B)  giving a copy of the affidavit to the

 18-3    executive director by certified mail.

 18-4          (l)  If the executive director receives a copy of an

 18-5    affidavit under Subsection (k)(2) of this section, the director may

 18-6    file with the court, within five days after the date the copy is

 18-7    received, a contest to the affidavit.  The court shall hold a

 18-8    hearing on the facts alleged in the affidavit as soon as

 18-9    practicable and shall stay the enforcement of the penalty on

18-10    finding that the alleged facts are true. The person who files an

18-11    affidavit has the burden of proving that the person is financially

18-12    unable to pay the amount of the penalty and to give a supersedeas

18-13    bond.

18-14          (m)  If the person does not pay the amount of the penalty and

18-15    the enforcement of the penalty is not stayed, the executive

18-16    director may refer the matter to the attorney general for

18-17    collection of the amount of the penalty.

18-18          (n)  Judicial review of the order of the board:

18-19                (1)  is instituted by filing a petition as provided by

18-20    Subchapter G, Chapter 2001, Government Code; and

18-21                (2)  is under the substantial evidence rule.

18-22          (o)  If the court sustains the occurrence of the violation,

18-23    the court may uphold or reduce the amount of the penalty and order

18-24    the person to pay the full or reduced amount of the penalty.  If

18-25    the court does not sustain the occurrence of the violation, the

18-26    court shall order that no penalty is owed.

18-27          (p)  When the judgment of the court becomes final, the court

 19-1    shall proceed under this subsection.  If the person paid the amount

 19-2    of the penalty and if that amount is reduced or is not upheld by

 19-3    the court, the court shall order that the appropriate amount plus

 19-4    accrued interest be remitted to the person.  The rate of the

 19-5    interest is the rate charged on loans to depository institutions by

 19-6    the New York Federal Reserve Bank, and the interest shall be paid

 19-7    for the period beginning on the date the penalty was paid and

 19-8    ending on the date the penalty is remitted.  If the person gave a

 19-9    supersedeas bond and if the amount of the penalty is not upheld by

19-10    the court, the court shall order the release of the bond.  If the

19-11    person gave a supersedeas bond and if the amount of the penalty is

19-12    reduced, the court shall order the release of the bond after the

19-13    person pays the amount.

19-14          (q)  A penalty collected under this section shall be remitted

19-15    to the comptroller for deposit in the general revenue fund.

19-16          (r)  All proceedings to impose a penalty under this section

19-17    are subject to Chapter 2001, Government Code.

19-18          Sec. 252.066.  RULES REGARDING ADMINISTRATIVE PENALTY.  (a)

19-19    The board shall adopt rules governing the assessment of

19-20    administrative penalties under this chapter, including rules:

19-21                (1)  providing for giving notice of a violation to a

19-22    facility; and

19-23                (2)  governing payment and refund of the penalty.

19-24          (b)  Rules adopted under this section shall include specific

19-25    and objective criteria for determining the scope and severity of a

19-26    violation and specific penalty ranges that correspond to

19-27    violations.  The range for a penalty must be appropriate to the

 20-1    violation, and the rules must provide that a penalty may be imposed

 20-2    only when a violation presents an immediate and serious threat to

 20-3    the health and safety of a resident.

 20-4          (c)  The rules must establish a system to ensure standard and

 20-5    consistent application of penalties.

 20-6          (d)  The department may prescribe a penalty for each day of a

 20-7    continuing violation.  If a facility notifies the department that a

 20-8    violation has been corrected, the notification is prima facie

 20-9    evidence that the violation has been corrected.  The department may

20-10    not assess a penalty for a continuing violation after the date on

20-11    which the department receives notification that the violation has

20-12    been corrected unless the department finds that the violation in

20-13    fact continued after that date.

20-14          (e)  For purposes of this section, "immediate and serious

20-15    threat" means a situation where there is a high probability that

20-16    serious harm or injury to residents could occur at any time or has

20-17    already occurred and may occur again if residents are not protected

20-18    effectively from the harm or if the threat is not removed.

20-19             (Sections 252.067-252.090 reserved for expansion

20-20                  SUBCHAPTER D.  TRUSTEES FOR FACILITIES

20-21          Sec. 252.091.  FINDINGS AND PURPOSE.  (a)  The legislature

20-22    finds that, under some circumstances, closing a facility for a

20-23    violation of a law or rule may:

20-24                (1)  have an adverse effect on the facility's residents

20-25    and their families; and

20-26                (2)  result in a lack of readily available financial

20-27    resources to meet the basic needs of the residents for food,

 21-1    shelter, medication, and personal services.

 21-2          (b)  The purpose of this subchapter is to provide for:

 21-3                (1)  the appointment of a trustee to assume the

 21-4    operations of the facility in a manner that emphasizes resident

 21-5    care and reduces resident trauma; and

 21-6                (2)  a fund to assist a court-appointed trustee in

 21-7    meeting the basic needs of the residents.

 21-8          Sec. 252.092.  APPOINTMENT BY AGREEMENT.  (a)  A person who

 21-9    holds a controlling interest in a facility may request the

21-10    department to assume the operation of the facility through the

21-11    appointment of a trustee under this subchapter.

21-12          (b)  After receiving the request, the department may enter

21-13    into an agreement providing for the appointment of a trustee to

21-14    take charge of the facility under conditions both parties consider

21-15    appropriate if the department considers the appointment desirable.

21-16          (c)  An agreement under this section must:

21-17                (1)  specify the terms and conditions of the trustee's

21-18    appointment and authority; and

21-19                (2)  preserve the rights of the residents as granted by

21-20    law.

21-21          (d)  The agreement terminates at the time:

21-22                (1)  specified by the parties; or

21-23                (2)  either party notifies the other in writing that

21-24    the party is terminating the appointment agreement.

21-25          Sec. 252.093.  INVOLUNTARY APPOINTMENT.  (a)  The department

21-26    may request the attorney general to bring an action on behalf of

21-27    the state for the appointment of a trustee to operate a facility

 22-1    if:

 22-2                (1)  the facility is operating without a license;

 22-3                (2)  the department has suspended or revoked the

 22-4    facility's license;

 22-5                (3)  license suspension or revocation procedures

 22-6    against the facility are pending and the department determines that

 22-7    an imminent threat to the health and safety of the residents

 22-8    exists;

 22-9                (4)  the department determines that an emergency exists

22-10    that presents an immediate threat to the health and safety of the

22-11    residents; or

22-12                (5)  the facility is closing and arrangements for

22-13    relocation of the residents to other licensed facilities have not

22-14    been made before closure.

22-15          (b)  A trustee appointed under Subsection (a)(5) may only

22-16    ensure an orderly and safe relocation of the facility's residents

22-17    as quickly as possible.

22-18          (c)  After a hearing, a court shall appoint a trustee to take

22-19    charge of a facility if the court finds that involuntary

22-20    appointment of a trustee is necessary.

22-21          (d)  If possible, the court shall appoint as trustee an

22-22    individual whose background includes mental retardation service

22-23    administration.

22-24          (e)  An action under this section must be brought in Travis

22-25    County.

22-26          Sec. 252.094.  FEE; RELEASE OF MONEY.  (a)  A trustee

22-27    appointed under this subchapter is entitled to a reasonable fee as

 23-1    determined by the court.

 23-2          (b)  The trustee may petition the court to order the release

 23-3    to the trustee of any payment owed the trustee for care and

 23-4    services provided to the residents if the payment has been

 23-5    withheld, including a payment:

 23-6                (1)  withheld by the department at the recommendation

 23-7    of the department; or

 23-8                (2)  withheld by a governmental agency or other entity

 23-9    during the appointment of the trustee, such as payments:

23-10                      (A)  for Medicaid or insurance;

23-11                      (B)  by a third party; or

23-12                      (C)  for medical expenses borne by the residents.

23-13          Sec. 252.095.  EMERGENCY ASSISTANCE FEE.  (a)  In addition to

23-14    the licensing and renewal fee collected under Section 252.034, the

23-15    department may collect an annual fee to be used to make emergency

23-16    assistance money available to a facility licensed under this

23-17    chapter.

23-18          (b)  The fee collected under this section shall be in the

23-19    amount prescribed by Section 242.097(b) and shall be deposited to

23-20    the credit of the nursing and convalescent home trust fund

23-21    established under Section 242.096.

23-22          (c)  The department may disburse money to a trustee for a

23-23    facility licensed under this chapter to alleviate an immediate

23-24    threat to the health or safety of the facility's residents.

23-25    Payments under this section may include payments described by

23-26    Section 242.096(b).

23-27          (d)  A court may order the department to disburse emergency

 24-1    assistance money to a trustee for a facility licensed under this

 24-2    chapter if the court makes the findings provided by Section

 24-3    242.096(c).

 24-4          Sec. 252.096.  REIMBURSEMENT.  (a)  A facility that receives

 24-5    emergency assistance money under this subchapter shall reimburse

 24-6    the department for the amounts received, including interest.

 24-7          (b)  Interest on unreimbursed amounts begins to accrue on the

 24-8    date on which the money is disbursed to the facility.  The rate of

 24-9    interest is the rate determined under Section 2, Article 1.05,

24-10    Title 79, Revised Statutes (Article 5069-1.05, Vernon's Texas Civil

24-11    Statutes), to be applicable to judgments rendered during the month

24-12    in which the money is disbursed to the facility.

24-13          (c)  The owner of the facility when the trustee is appointed

24-14    is responsible for the reimbursement.

24-15          (d)  The amount that remains unreimbursed on the first

24-16    anniversary of the date on which the money is received is

24-17    delinquent and the department may determine that the facility is

24-18    ineligible for a Medicaid provider contract.

24-19          (e)  The department shall deposit the reimbursement and

24-20    interest received under this section to the credit of the nursing

24-21    and convalescent home trust fund.

24-22          (f)  The attorney general shall institute an action to

24-23    collect money due under this section at the request of the

24-24    department.  An action under this section must be brought in Travis

24-25    County.

24-26          Sec. 252.097.  NOTIFICATION OF CLOSURE; CRIMINAL PENALTY.

24-27    (a)  A facility that is closing temporarily or permanently,

 25-1    voluntarily or involuntarily, shall notify the residents of the

 25-2    closing and make reasonable efforts to notify in writing each

 25-3    resident's nearest relative or the person responsible for the

 25-4    resident's support within a reasonable time before the facility

 25-5    closes.

 25-6          (b)  If the department orders a facility to close or the

 25-7    facility's closure is in any other way involuntary, the facility

 25-8    shall make the notification, orally or in writing, immediately on

 25-9    receiving notice of the closing.

25-10          (c)  If the facility's closure is voluntary, the facility

25-11    shall make the notification not later than one week after the date

25-12    on which the decision to close is made.

25-13          Sec. 252.098.  CRIMINAL PENALTY FOR FAILURE TO NOTIFY.  (a)

25-14    A facility commits an offense if the facility knowingly fails to

25-15    comply with Section 252.097.

25-16          (b)  An offense under this section is a Class A misdemeanor.

25-17             (Sections 252.099-252.120 reserved for expansion

25-18                SUBCHAPTER E.  REPORTS OF ABUSE AND NEGLECT

25-19          Sec. 252.121.  DEFINITION.  In this subchapter, "designated

25-20    agency" means an agency designated by a court to be responsible for

25-21    the protection of a resident who is the subject of a report of

25-22    abuse or neglect.

25-23          Sec. 252.122.  REPORTING OF ABUSE AND NEGLECT.  (a)  A

25-24    person, including an owner or employee of a facility, who has cause

25-25    to believe that the physical or mental health or welfare of a

25-26    resident has been or may be adversely affected by abuse or neglect

25-27    caused by another person shall report the abuse or neglect to the

 26-1    department, to a designated agency, or to both the department and

 26-2    the designated agency, as specified in department rules.

 26-3          (b)  Each facility shall require each employee of the

 26-4    facility, as a condition of employment with the facility, to sign a

 26-5    statement that the employee realizes that the employee may be

 26-6    criminally liable for failure to report abuse or neglect.

 26-7          (c)  A person shall make an oral report immediately on

 26-8    learning of abuse or neglect and shall make a written report to the

 26-9    same agency not later than the fifth day after the oral report is

26-10    made.

26-11          Sec. 252.123.  CONTENTS OF REPORT.  (a)  A report of abuse or

26-12    neglect is nonaccusatory and reflects the reporting person's belief

26-13    that a resident has been or will be abused or neglected or has died

26-14    of abuse or neglect.

26-15          (b)  The report must contain:

26-16                (1)  the name and address of the resident;

26-17                (2)  the name and address of the person responsible for

26-18    the care of the resident, if available; and

26-19                (3)  other relevant information.

26-20          Sec. 252.124.  ANONYMOUS REPORTS OF ABUSE OR NEGLECT.  (a)

26-21    An anonymous report of abuse or neglect, although not encouraged,

26-22    shall be received and acted on in the same manner as an

26-23    acknowledged report.

26-24          (b)  A local or state law enforcement agency that receives a

26-25    report of abuse or neglect shall refer the report to the department

26-26    or the designated agency.

26-27          Sec. 252.125.  INVESTIGATION AND REPORT OF RECEIVING AGENCY.

 27-1    (a)  The department or the designated agency shall make a thorough

 27-2    investigation promptly after receiving either the oral or written

 27-3    report.

 27-4          (b)  The primary purpose of the investigation is the

 27-5    protection of the resident.

 27-6          (c)  In the investigation, the department or the designated

 27-7    agency shall determine:

 27-8                (1)  the nature, extent, and cause of the abuse or

 27-9    neglect;

27-10                (2)  the identity of the person responsible for the

27-11    abuse or neglect;

27-12                (3)  the names and conditions of the other residents;

27-13                (4)  an evaluation of the persons responsible for the

27-14    care of the residents;

27-15                (5)  the adequacy of the facility environment; and

27-16                (6)  any other information required by the department.

27-17          (d)  The investigation may include a visit to the resident's

27-18    facility and an interview with the resident, if considered

27-19    appropriate by the department.

27-20          (e)  If the department attempts to carry out an on-site

27-21    investigation and it is shown that admission to the facility or any

27-22    place where a resident is located cannot be obtained, a probate or

27-23    county court shall order the person responsible for the care of the

27-24    resident or the person in charge of a place where the resident is

27-25    located to allow admission for the investigation and any interview

27-26    with the resident.

27-27          (f)  Before the completion of the investigation, the

 28-1    department shall file a petition for temporary care and protection

 28-2    of the resident if the department determines that immediate removal

 28-3    is necessary to protect the resident from further abuse or neglect.

 28-4          (g)  The department or the designated agency shall make a

 28-5    complete written report of the investigation and submit the report

 28-6    and its recommendations to the district attorney and the

 28-7    appropriate law enforcement agency and, if necessary, to the

 28-8    department on the department's request.

 28-9          Sec. 252.126.  CONFIDENTIALITY.  A report, record, or working

28-10    paper used or developed in an investigation made under this

28-11    subchapter is confidential and may be disclosed only for purposes

28-12    consistent with the rules adopted by the board or the designated

28-13    agency.

28-14          Sec. 252.127.  IMMUNITY.  (a)  Except as provided by Section

28-15    252.131, a person who reports an act of abuse or neglect as

28-16    provided by this subchapter is immune from civil or criminal

28-17    liability that, in the absence of the immunity, might result from

28-18    making the report.

28-19          (b)  The immunity provided by this section extends to

28-20    participation in any judicial proceeding that results from the

28-21    report.

28-22          Sec. 252.128.  PRIVILEGED COMMUNICATIONS.  In a proceeding

28-23    regarding the abuse or neglect of a resident or the cause of any

28-24    abuse or neglect, evidence may not be excluded on the ground of

28-25    privileged communication except in the case of a communication

28-26    between an attorney and client.

28-27          Sec. 252.129.  CENTRAL REGISTRY.  (a)  The department shall

 29-1    maintain in the city of Austin a central registry of reported cases

 29-2    of resident abuse or neglect.

 29-3          (b)  The board may adopt rules necessary to carry out this

 29-4    section.

 29-5          (c)  The rules shall provide for cooperation with hospitals

 29-6    and clinics in the exchange of reports of resident abuse or

 29-7    neglect.

 29-8          Sec. 252.130.  FAILURE TO REPORT; CRIMINAL PENALTY.  (a)  A

 29-9    person commits an offense if the person has cause to believe that a

29-10    resident's physical or mental health or welfare has been or may be

29-11    further adversely affected by abuse or neglect and knowingly fails

29-12    to report in accordance with Section 252.122.

29-13          (b)  An offense under this section is a Class A misdemeanor.

29-14          Sec. 252.131.  BAD FAITH, MALICIOUS, OR RECKLESS REPORTING;

29-15    CRIMINAL PENALTY.  (a)  A person commits an offense if the person

29-16    reports under this subchapter in bad faith, maliciously, or

29-17    recklessly.

29-18          (b)  An offense under this section is a Class A misdemeanor.

29-19          (c)  The criminal penalty provided by this section is in

29-20    addition to any civil penalties for which the person may be liable.

29-21          Sec. 252.132.  SUIT FOR RETALIATION.  (a)  A facility may not

29-22    suspend or terminate the employment of, or discipline or otherwise

29-23    discriminate against, an employee for reporting to the employee's

29-24    supervisor, an administrator of the facility, a state regulatory

29-25    agency, or a law enforcement agency the abuse or neglect of a

29-26    resident.

29-27          (b)  A facility that violates Subsection (a) is liable to the

 30-1    person against whom the facility discriminated.  A person against

 30-2    whom a facility discriminates in violation of Subsection (a) may

 30-3    sue for injunctive relief, damages, or both.

 30-4          (c)  A plaintiff who prevails in a suit under this section

 30-5    may recover:

 30-6                (1)  the greater of $1,000 or actual damages, including

 30-7    damages for mental anguish even if an injury other than mental

 30-8    anguish is not shown and damages for lost wages if the petitioner's

 30-9    employment was suspended or terminated;

30-10                (2)  exemplary damages;

30-11                (3)  court costs; and

30-12                (4)  reasonable attorney's fees.

30-13          (d)  In addition to the amounts that may be recovered under

30-14    Subsection (c), a person whose employment is suspended or

30-15    terminated is entitled to reinstatement in the person's former

30-16    position.

30-17          (e)  The petitioner, not later than the 90th day after the

30-18    date on which the person's employment is suspended or terminated,

30-19    must bring suit or notify the Texas Workforce Commission of the

30-20    petitioner's intent to sue under this section.  A petitioner who

30-21    notifies the Texas Workforce Commission under this subsection must

30-22    bring suit not later than the 90th day after the date of the

30-23    delivery of the notice to the commission.  On receipt of the

30-24    notice, the commission shall notify the facility of the

30-25    petitioner's intent to bring suit under this section.

30-26          (f)  The petitioner has the burden of proof, except that

30-27    there is a rebuttable presumption that the person's employment was

 31-1    suspended or terminated for reporting abuse or neglect if the

 31-2    person is suspended or terminated within 60 days after the date on

 31-3    which the person reported in good faith.

 31-4          (g)  A suit under this section may be brought in the district

 31-5    court of the county in which:

 31-6                (1)  the plaintiff resides;

 31-7                (2)  the plaintiff was employed by the defendant; or

 31-8                (3)  the defendant conducts business.

 31-9          (h)  Each facility shall require each employee of the

31-10    facility, as a condition of employment with the facility, to sign a

31-11    statement that the employee understands the employee's rights under

31-12    this section.  The statement must be part of the statement required

31-13    under Section 252.122(b).  If a facility does not require an

31-14    employee to read and sign the statement, the periods prescribed by

31-15    Subsection (e) do not apply, and the petitioner must bring suit not

31-16    later than the second anniversary of the date on which the person's

31-17    employment is suspended or terminated.

31-18          Sec. 252.133.  SUIT FOR RETALIATION AGAINST RESIDENT.  (a)  A

31-19    facility may not retaliate or discriminate against a resident if

31-20    the resident, the resident's guardian, or any other person reports

31-21    abuse or neglect in accordance with this subchapter.

31-22          (b)  A resident against whom a facility retaliates or

31-23    discriminates in violation of Subsection (a) is entitled to sue

31-24    for:

31-25                (1)  injunctive relief;

31-26                (2)  actual damages;

31-27                (3)  exemplary damages;

 32-1                (4)  court costs; and

 32-2                (5)  reasonable attorney's fees.

 32-3          (c)  A resident who seeks relief under this section must

 32-4    report the alleged violation not later than the 180th day after the

 32-5    date on which the alleged violation of this section occurred or was

 32-6    discovered by the resident through reasonable diligence.

 32-7          (d)  A suit under this section may be brought in the district

 32-8    court of the county in which the facility is located or in a

 32-9    district court of Travis County.

32-10          Sec. 252.134.  REPORTS RELATING TO RESIDENT DEATHS.  (a)  A

32-11    facility licensed under this chapter shall submit a report to the

32-12    department concerning the death of:

32-13                (1)  a resident of the facility; and

32-14                (2)  a former resident that occurs 24 hours or less

32-15    after the former resident is transferred from the facility to a

32-16    hospital.

32-17          (b)  The report must be submitted not later than the 10th

32-18    working day after the last day of each month in which a resident of

32-19    the facility dies.  The facility must make the report on a form

32-20    prescribed by the department.  The report must contain the name and

32-21    social security number of the deceased.

32-22          (c)  The department shall correlate reports under this

32-23    section with death certificate information to develop data relating

32-24    to the:

32-25                (1)  name and age of the deceased;

32-26                (2)  official cause of death listed on the death

32-27    certificate;

 33-1                (3)  date, time, and place of death; and

 33-2                (4)  name and address of the facility in which the

 33-3    deceased resided.

 33-4          (d)  Unless specified by board rule, a record under this

 33-5    section is confidential and not subject to the provisions of

 33-6    Chapter 552, Government Code.

 33-7             (Sections 252.135-252.150 reserved for expansion

 33-8                        SUBCHAPTER F.  MEDICAL CARE

 33-9          Sec. 252.151.  ADMINISTRATION OF MEDICATION.  The department

33-10    shall adopt rules relating to the administration of medication in

33-11    intermediate care facilities.

33-12          Sec. 252.152.  APPLICATION OF OTHER LAW.  (a)  Except as

33-13    provided by Subsection (c), Subchapter F, Chapter 242, applies to a

33-14    facility.

33-15          (b)  In applying Subchapter F, Chapter 242, to a facility,

33-16    the term "resident" has the meaning assigned by Section 252.002 and

33-17    the term "institution" means a facility.

33-18          (c)  Section 242.160 does not apply to a facility.

33-19             (Sections 252.153-252.180 reserved for expansion

33-20                        SUBCHAPTER G.  RESPITE CARE

33-21          Sec. 252.181.  DEFINITIONS.  In this subchapter:

33-22                (1)  "Plan of care" means a written description of the

33-23    care, training, and treatment needed by a person during respite

33-24    care.

33-25                (2)  "Respite care" means the provision by a facility

33-26    to a person, for not more than two weeks for each stay in the

33-27    facility, of:

 34-1                      (A)  room and board; and

 34-2                      (B)  care at the level ordinarily provided for

 34-3    permanent residents.

 34-4          Sec. 252.182.  RESPITE CARE.  (a)  A facility licensed under

 34-5    this chapter may provide respite care for an individual who has a

 34-6    diagnosis of mental retardation or a related condition without

 34-7    regard to whether the individual is eligible to receive

 34-8    intermediate care services under federal law.

 34-9          (b)  The board may adopt rules for the regulation of respite

34-10    care provided by a facility licensed under this chapter.

34-11          Sec. 252.183.  PLAN OF CARE.  (a)  The facility and the

34-12    person arranging the care must agree on the plan of care and the

34-13    plan must be filed at the facility before the facility admits the

34-14    person for the care.

34-15          (b)  The plan of care must be signed by:

34-16                (1)  a licensed physician if the person for whom the

34-17    care is arranged needs medical care or treatment; or

34-18                (2)  the person arranging for the respite care if

34-19    medical care or treatment is not needed.

34-20          (c)  The facility may keep an agreed plan of care for a

34-21    person for not longer than six months from the date on which it is

34-22    received.  After each admission, the facility shall review and

34-23    update the plan of care.  During that period, the facility may

34-24    admit the person as frequently as is needed and as accommodations

34-25    are available.

34-26          Sec. 252.184.  NOTIFICATION.  A facility that offers respite

34-27    care shall notify the department in writing that it offers respite

 35-1    care.

 35-2          Sec. 252.185.  INSPECTIONS.  The department, at the time of

 35-3    an ordinary licensing inspection or at other times determined

 35-4    necessary by the department, shall inspect a facility's records of

 35-5    respite care services, physical accommodations available for

 35-6    respite care, and the plan of care records to ensure that the

 35-7    respite care services comply with the licensing standards of this

 35-8    chapter and with any rules the board may adopt to regulate respite

 35-9    care services.

35-10          Sec. 252.186.  SUSPENSION.  (a)  The department may require a

35-11    facility to cease providing respite care if the department

35-12    determines that the respite care does not meet the standards

35-13    required by this chapter and that the facility cannot comply with

35-14    those standards in the respite care it provides.

35-15          (b)  The department may suspend the license of a facility

35-16    that continues to provide respite care after receiving a written

35-17    order from the department to cease.

35-18          SECTION 2.  Section 242.002(6), Health and Safety Code, is

35-19    amended to read as follows:

35-20                (6)  "Institution" means[:]

35-21                      [(A)]  an establishment that:

35-22                      (A) [(i)]  furnishes, in one or more facilities,

35-23    food and shelter to four or more persons who are unrelated to the

35-24    proprietor of the establishment; and

35-25                      (B) [(ii)]  provides minor treatment under the

35-26    direction and supervision of a physician licensed by the Texas

35-27    State Board of Medical Examiners, or other services that meet some

 36-1    need beyond the basic provision of food, shelter, and laundry[; or]

 36-2                      [(B)  a foster care type residential facility

 36-3    that provides room and board to fewer than five persons who:]

 36-4                            [(i)  are not related within the second

 36-5    degree of consanguinity or affinity, as determined under Chapter

 36-6    573, Government Code, to the proprietor; and]

 36-7                            [(ii)  because of their physical or mental

 36-8    limitation, or both, require a level of care and services suitable

 36-9    to their needs that contributes to their health, comfort, and

36-10    welfare].

36-11          SECTION 3.  Section 242.003, Health and Safety Code, is

36-12    amended to read as follows:

36-13          Sec. 242.003.  EXEMPTIONS.  [(a)]  Except as otherwise

36-14    provided, this chapter does not apply to:

36-15                (1)  a hotel or other similar place that furnishes only

36-16    food, lodging, or both, to its guests;

36-17                (2)  a hospital;

36-18                (3)  an establishment conducted by or for the adherents

36-19    of a well-recognized church or religious denomination for the

36-20    purpose of providing facilities for the care or treatment of the

36-21    sick who depend exclusively on prayer or spiritual means for

36-22    healing, without the use of any drug or material remedy, if the

36-23    establishment complies with safety, sanitary, and quarantine laws

36-24    and rules;

36-25                (4)  an establishment that furnishes, in addition to

36-26    food, shelter, and laundry, only baths and massages;

36-27                (5)  an institution operated by a person licensed by

 37-1    the Texas Board of Chiropractic Examiners;

 37-2                (6)  a facility that:

 37-3                      (A)  primarily engages in training, habilitation,

 37-4    rehabilitation, or education of clients or residents;

 37-5                      (B)  is operated under the jurisdiction of a

 37-6    state or federal agency, including the Texas Rehabilitation

 37-7    Commission, Texas Department of Mental Health and Mental

 37-8    Retardation, Texas Department of Human Services, Texas Commission

 37-9    for the Blind, Texas Commission on Alcohol and Drug Abuse,

37-10    institutional division of the Texas Department of Criminal Justice,

37-11    and the Veteran's Administration; and

37-12                      (C)  is certified through inspection or

37-13    evaluation as meeting the standards established by the state or

37-14    federal agency; [and]

37-15                (7)  a foster care type residential facility that

37-16    serves fewer than five persons and operates under rules adopted by

37-17    the Texas Department of Human Services; and

37-18                (8)  a facility licensed under Chapter 251 or exempt

37-19    from licensure under Section 251.003.

37-20          [(b)  An institution described by Section 242.002(6)(C) is

37-21    subject to licensing under this chapter only if written application

37-22    is made for participation in the intermediate care program under

37-23    federal law.]

37-24          SECTION 4.  (a)  Except as provided by Subsection (b) of this

37-25    section, this Act takes effect September 1, 1997.

37-26          (b)  Section 2 of this Act takes effect January 1, 1998.

37-27          SECTION 5.  (a)  Notwithstanding Sections 252.031 and

 38-1    252.063, Health and Safety Code, as added by this Act:

 38-2                (1)  a facility is not required to be licensed under

 38-3    Chapter 252, Health and Safety Code, as added by this Act, before

 38-4    January 1, 1998; and

 38-5                (2)  a facility that is required to be licensed under

 38-6    that chapter and that is, on the effective date of this Act,

 38-7    licensed under Chapter 242, Health and Safety Code, may continue to

 38-8    operate under the license issued under Chapter 242 until the later

 38-9    of:

38-10                      (A)  December 31, 1997; or

38-11                      (B)  the date on which the license is subject to

38-12    renewal.

38-13          (b)  A license issued under Chapter 242, Health and Safety

38-14    Code, to an institution that is required to be licensed as a

38-15    facility under Chapter 252, Health and Safety Code, as added by

38-16    this Act, may not be renewed after December 1, 1997.

38-17          (c)  A facility licensed under Chapter 252, Health and Safety

38-18    Code, as added by this Act, is not subject to Chapter 48, Human

38-19    Resources Code.

38-20          SECTION 6.  The importance of this legislation and the

38-21    crowded condition of the calendars in both houses create an

38-22    emergency and an imperative public necessity that the

38-23    constitutional rule requiring bills to be read on three several

38-24    days in each house be suspended, and this rule is hereby suspended.