By:  Moncrief                                           S.B. No. 90

         97S0013/1 09/13/96                             

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the imposition of administrative penalties for certain

 1-3     violations by personal care facilities regulated by the Texas

 1-4     Department of Human Services.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Section 247.002, Health and Safety Code, is

 1-7     amended to read as follows:

 1-8           Sec. 247.002.  Definitions.  In this chapter:

 1-9                 (1)  "Board" means the Texas Board of Human Services.

1-10                 (2)  "Commissioner" means the Commissioner of Human

1-11     Services.

1-12                 (3)  "Department" means the Texas Department of Human

1-13     Services.

1-14                 (4)[(3)]  "Personal care facility" means an

1-15     establishment, including a board and care home, that:

1-16                       (A)  furnishes, in one or more facilities, food

1-17     and shelter to four or more persons who are unrelated to the

1-18     proprietor of the establishment; and

1-19                       (B)  provides personal care services.

1-20                 (5)[(4)]  "Personal care services" means:

1-21                       (A)  assistance with meals, dressing, movement,

1-22     bathing, or other personal needs or maintenance;

1-23                       (B)  the administration of medication by a person

1-24     licensed to administer medication or the assistance with or

 2-1     supervision of medication; or

 2-2                       (C)  general supervision or oversight of the

 2-3     physical and mental well-being of a person who needs assistance to

 2-4     maintain a private and independent residence in a personal care

 2-5     facility or who needs assistance to manage the person's personal

 2-6     life, regardless of whether a guardian has been appointed for the

 2-7     person.

 2-8                 (6)[(5)]  "Qualified religious society" means a church,

 2-9     synagogue, or other organization or association that is organized

2-10     primarily for religious purposes and that:

2-11                       (A)  has been in existence in this state for at

2-12     least 35 years; and

2-13                       (B)  does not distribute any of its income to its

2-14     members, officers, or governing body other than as reasonable

2-15     compensation for services or reimbursement of expenses.

2-16           SECTION 2.  Subchapter C, Chapter 247, Health and Safety

2-17     Code, is amended by adding Sections 247.0451, 247.0452, 247.0453,

2-18     and 247.0454 to read as follows:

2-19           Sec. 247.0451.  ADMINISTRATIVE PENALTY.  (a)  The department

2-20     may assess an administrative penalty against a person who violates

2-21     this chapter or a rule or order adopted or license issued under

2-22     this chapter.

2-23           (b)  The penalty may not exceed $10,000 a day for each

2-24     violation.

2-25           (c)  Each day of a continuing violation constitutes a

 3-1     separate violation.

 3-2           (d)  The board shall establish gradations of penalties in

 3-3     accordance with the relative seriousness of the violation.

 3-4           (e)  In determining the amount of an administrative penalty

 3-5     assessed under this section, the department shall consider any

 3-6     matter that justice may require, including:

 3-7                 (1)  the gradations of penalties established under

 3-8     Subsection (d);

 3-9                 (2)  the seriousness of the violation, including the

3-10     nature, circumstances, extent, and gravity of the prohibited act

3-11     and the hazard or potential hazard to the health or safety of the

3-12     public created by the act;

3-13                 (3)  the history of previous violations;

3-14                 (4)  deterrence of future violations; and

3-15                 (5)  efforts to correct the violation.

3-16           Sec.  247.0452.  REPORT RECOMMENDING ADMINISTRATIVE PENALTY.

3-17     (a)  The department may issue a preliminary report stating the

3-18     facts on which it concludes that a violation of this chapter or of

3-19     a rule or order adopted or license issued under this chapter has

3-20     occurred if it has:

3-21                 (1)  examined the possible violation and facts

3-22     surrounding the possible violation; and

3-23                 (2)  concluded that a violation has occurred.

3-24           (b)  The report may recommend a penalty under Section

3-25     247.0451 and the amount of the penalty.

 4-1           (c)  The department shall give written notice of the report

 4-2     to the person charged with the violation not later than the 10th

 4-3     day after the date on which the report is issued.  The notice must

 4-4     include:

 4-5                 (1)  a brief summary of the charges;

 4-6                 (2)  a statement of the amount of penalty recommended;

 4-7     and

 4-8                 (3)  a statement that the person charged has a right to

 4-9     a hearing on the occurrence of the violation, the amount of the

4-10     penalty, or both.

4-11           (d)  Not later than the 20th day after the date on which the

4-12     notice is sent, the person charged may:

4-13                 (1)  give to the department written consent to the

4-14     department's report, including the recommended penalty; or

4-15                 (2)  make a written request for a hearing.

4-16           (e)  If the person charged with the violation consents to the

4-17     administrative penalty recommended by the department or does not

4-18     timely respond to the notice, the commissioner or the

4-19     commissioner's designee shall:

4-20                 (1)  assess the administrative penalty recommended by

4-21     the department; or

4-22                 (2)  order a hearing to be held on the findings and

4-23     recommendations in the department's report.

4-24           (f)  If the commissioner or the commissioner's designee

4-25     assesses the recommended penalty, the department shall give written

 5-1     notice to the person charged of the decision and the person shall

 5-2     pay the penalty.

 5-3           Sec. 247.0453.  HEARING.  (a)  The commissioner shall set a

 5-4     date for a hearing and give notice of the hearing if:

 5-5                 (1)  a person charged requests a hearing; or

 5-6                 (2)  the commissioner or the commissioner's designee

 5-7     orders a hearing.

 5-8           (b)  The hearing shall be held by a hearing examiner

 5-9     designated by the commissioner.

5-10           (c)  The hearing examiner shall make findings of fact and

5-11     promptly issue to the commissioner a written decision regarding the

5-12     occurrence of a violation of this chapter or of a rule or order

5-13     adopted or license issued under this chapter and a recommendation

5-14     regarding the amount of the proposed penalty if a penalty is

5-15     warranted.

5-16           (d)  Based on the findings of fact and recommendations of the

5-17     hearing examiner, the commissioner by order may:

5-18                 (1)  find that a violation has occurred and assess an

5-19     administrative penalty; or

5-20                 (2)  find that a violation has not occurred.

5-21           (e)  Proceedings under this section are subject to Chapter

5-22     2001, Government Code.

5-23           Sec. 247.0454.  NOTICE AND PAYMENT OF ADMINISTRATIVE PENALTY;

5-24     REFUND.  (a)  The commissioner shall give notice of the decision

5-25     taken under Section 247.0453(d) to the person charged.  If the

 6-1     commissioner finds that a violation has occurred and assesses an

 6-2     administrative penalty, the commissioner shall give written notice

 6-3     to the person charged of the findings, the amount of the penalty,

 6-4     and the person's right to judicial review of the order.

 6-5           (b)  Except as provided by Subsection (c), not later than the

 6-6     30th day after the date on which the commissioner's order is final,

 6-7     the person charged with the penalty shall pay the full amount of

 6-8     the penalty.

 6-9           (c)  If the person seeks judicial review of the violation,

6-10     the amount of the penalty, or both, the person, within the time

6-11     provided by Subsection (b), shall:

6-12                 (1)  send the amount of the penalty to the commissioner

6-13     for placement in an escrow account; or

6-14                 (2)  post with the commissioner a supersedeas bond in a

6-15     form approved by the commissioner for the amount of the penalty,

6-16     the bond to be effective until the judicial review of the order or

6-17     decision is final.

6-18           (d)  A person who fails to comply with Subsection (c) waives

6-19     the right to judicial review, and the commissioner may request

6-20     enforcement by the attorney general.

6-21           (e)  If a penalty is reduced or not assessed, the

6-22     commissioner shall:

6-23                 (1)  remit to the person charged the appropriate amount

6-24     of any penalty payment plus accrued interest; or

6-25                 (2)  execute a release of the supersedeas bond if one

 7-1     has been posted.

 7-2           (f)  Accrued interest on amounts remitted by the commissioner

 7-3     under Subsection (e)(1) shall be paid:

 7-4                 (1)  at a rate equal to the rate charged on loans to

 7-5     depository institutions by the New York Federal Reserve Bank; and

 7-6                 (2)  for the period beginning on the date the penalty

 7-7     is paid to the commissioner under Subsection (c) and ending on the

 7-8     date the penalty is remitted.

 7-9           (g)  A penalty collected under this section shall be

7-10     deposited in the state treasury to the credit of the general

7-11     revenue fund.

7-12           SECTION 3.  This Act takes effect September 1, 1997.

7-13           SECTION 4.  The importance of this legislation and the

7-14     crowded condition of the calendars in both houses create an

7-15     emergency and an imperative public necessity that the

7-16     constitutional rule requiring bills to be read on three several

7-17     days in each house be suspended, and this rule is hereby suspended.