AN ACT

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

 1-2     imposing civil and criminal penalties.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subtitle B, Title 4, Health and Safety Code, is

 1-5     amended by adding Chapter 252 to read as follows:

 1-6         CHAPTER 252.  INTERMEDIATE CARE FACILITIES FOR THE MENTALLY

 1-7                                  RETARDED

 1-8                      SUBCHAPTER A.  GENERAL PROVISIONS

 1-9           Sec. 252.001.  PURPOSE.  The purpose of this chapter is to

1-10     promote the public health, safety, and welfare by providing for the

1-11     development, establishment, and enforcement of standards for the

1-12     provision of services to individuals residing in intermediate care

1-13     facilities for the mentally retarded and the establishment,

1-14     construction, maintenance, and operation of facilities providing

1-15     this service that, in light of advancing knowledge, will promote

1-16     quality in the delivery of services and treatment of residents.

1-17           Sec. 252.002.  DEFINITIONS.  In this chapter:

1-18                 (1)  "Board" means the Texas Board of Human Services.

1-19                 (2)  "Department" means the Texas Department of Human

1-20     Services.

1-21                 (3)  "Designee" means a state agency or entity with

1-22     which the department contracts to perform specific, identified

1-23     duties related to the fulfillment of a responsibility prescribed by

 2-1     this chapter.

 2-2                 (4)  "Facility" means a home or an establishment that:

 2-3                       (A)  furnishes food, shelter, and treatment or

 2-4     services to four or more persons unrelated to the owner;

 2-5                       (B)  is primarily for the diagnosis, treatment,

 2-6     or rehabilitation of persons with mental retardation or related

 2-7     conditions; and

 2-8                       (C)  provides in a protected setting continuous

 2-9     evaluation, planning, 24-hour supervision, coordination, and

2-10     integration of health or rehabilitative services to help each

2-11     resident function at the resident's greatest ability.

2-12                 (5)  "Governmental unit" means the state or a political

2-13     subdivision of the state, including a county or municipality.

2-14                 (6)  "Person" means an individual, firm, partnership,

2-15     corporation, association, or joint stock company and includes a

2-16     legal successor of those entities.

2-17                 (7)  "Resident" means an individual, including a

2-18     client, with mental retardation or a related condition who is

2-19     residing in a facility licensed under this chapter.

2-20           Sec. 252.003.  EXEMPTIONS.  Except as otherwise provided by

2-21     this chapter, this chapter does not apply to an establishment that:

2-22                 (1)  provides training, habilitation, rehabilitation,

2-23     or education to individuals with mental retardation or a related

2-24     condition;

2-25                 (2)  is operated under the jurisdiction of a state or

 3-1     federal agency, including the department, the Texas Rehabilitation

 3-2     Commission, the Texas Department of Mental Health and Mental

 3-3     Retardation, the Texas Commission for the Blind, the Texas

 3-4     Commission on Alcohol and Drug Abuse, the institutional division of

 3-5     the Texas Department of Criminal Justice, or the Veterans'

 3-6     Administration;

 3-7                 (3)  is certified through inspection or evaluation as

 3-8     meeting the standards established by the state or federal agency;

 3-9     and

3-10                 (4)  is conducted by or for the adherents of a

3-11     well-recognized church or religious denomination for the purpose of

3-12     providing facilities for the care or treatment of the sick who

3-13     depend exclusively on prayer or spiritual means for healing,

3-14     without the use of any drug or material remedy, if the

3-15     establishment complies with safety, sanitary, and quarantine laws

3-16     and rules.

3-17           Sec. 252.004.  ALLOCATED FEDERAL MONEY.  The department may

3-18     accept and use any money allocated by the federal government to the

3-19     department for administrative expenses.

3-20           Sec. 252.005.  LANGUAGE REQUIREMENTS PROHIBITED.  A facility

3-21     may not prohibit a resident or employee from communicating in the

3-22     person's native language with another resident or employee for the

3-23     purpose of acquiring or providing care, training, or treatment.

3-24           Sec. 252.006.  RIGHTS OF RESIDENTS.  Each facility shall

3-25     implement and enforce Chapter 102, Human Resources Code.

 4-1           Sec. 252.007.  PAPERWORK REDUCTION RULES.  (a)  The

 4-2     department and any designee of the department shall:

 4-3                 (1)  adopt rules to reduce the amount of paperwork a

 4-4     facility must complete and retain; and

 4-5                 (2)  attempt to reduce the amount of paperwork to the

 4-6     minimum amount required by state and federal law unless the

 4-7     reduction would jeopardize resident safety.

 4-8           (b)  The department, any designee of the department, and each

 4-9     facility shall work together to review rules and propose changes in

4-10     paperwork requirements so that additional time is available for

4-11     direct resident care.

4-12           Sec. 252.008.  RULES GENERALLY.  The department shall adopt

4-13     rules related to the administration and implementation of this

4-14     chapter.

4-15           Sec. 252.009.  CONSULTATION AND COORDINATION.  (a)  Whenever

4-16     possible, the department shall:

4-17                 (1)  use the services of and consult with state and

4-18     local agencies in carrying out the department's functions under

4-19     this chapter; and

4-20                 (2)  use the facilities of the department or a designee

4-21     of the department, particularly in establishing and maintaining

4-22     standards relating to the humane treatment of residents.

4-23           (b)  The department may cooperate with local public health

4-24     officials of a municipality or county in carrying out this chapter

4-25     and may delegate to those officials the power to make inspections

 5-1     and recommendations to the department under this chapter.

 5-2           (c)  The department may coordinate its personnel and

 5-3     facilities with a local agency of a municipality or county and may

 5-4     provide advice to the municipality or county if the municipality or

 5-5     county decides to supplement the state program with additional

 5-6     rules required to meet local conditions.

 5-7           Sec. 252.010.  CHANGE OF ADMINISTRATORS; FEE.  A facility

 5-8     that hires a new administrator or other person designated as the

 5-9     chief management officer for the facility shall:

5-10                 (1)  notify the department in writing of the change not

5-11     later than the 30th day after the date on which the change becomes

5-12     effective; and

5-13                 (2)  pay a $20 administrative fee to the department.

5-14           Sec. 252.011.  PROHIBITION OF REMUNERATION.  (a)  A facility

5-15     may not receive monetary or other remuneration from a person or

5-16     agency that furnishes services or materials to the facility or

5-17     residents for a fee.

5-18           (b)  The department may revoke the license of a facility that

5-19     violates Subsection (a).

5-20              (Sections 252.012-252.030 reserved for expansion

5-21               SUBCHAPTER B.  LICENSING, FEES, AND INSPECTIONS

5-22           Sec. 252.031.  LICENSE REQUIRED.  A person or governmental

5-23     unit, acting severally or jointly with any other person or

5-24     governmental unit, may not establish, conduct, or maintain a

5-25     facility in this state without a license issued under this chapter.

 6-1           Sec. 252.032.  LICENSE APPLICATION.  (a)  An application for

 6-2     a license is made to the department on a form provided by the

 6-3     department and must be accompanied by the license fee adopted under

 6-4     Section 252.034.

 6-5           (b)  The application must contain information that the

 6-6     department requires.  The department may require affirmative

 6-7     evidence of ability to comply with the standards and rules adopted

 6-8     under this chapter.

 6-9           Sec. 252.033.  ISSUANCE AND RENEWAL OF LICENSE.  (a)  After

6-10     receiving the application, the department shall issue a license if,

6-11     after inspection and investigation, it finds that the applicant and

6-12     facility meet the requirements established under this chapter.

6-13           (b)  The department may issue a license only for:

6-14                 (1)  the premises and persons or governmental unit

6-15     named in the application; and

6-16                 (2)  the maximum number of beds specified in the

6-17     application.

6-18           (c)  A license may not be transferred or assigned.

6-19           (d)  A license is renewable on the second anniversary of

6-20     issuance or renewal of the license after:

6-21                 (1)  an inspection;

6-22                 (2)  filing and approval of a renewal report; and

6-23                 (3)  payment of the renewal fee.

6-24           (e)  The renewal report required under Subsection (d)(2) must

6-25     be filed in accordance with rules adopted by the department that

 7-1     specify the form of the report, the date it must be submitted, and

 7-2     the information it must contain.

 7-3           (f)  The department may not issue a license for new beds or

 7-4     an expansion of an existing facility under this chapter unless the

 7-5     addition of new beds or the expansion is included in the plan

 7-6     approved by the Health and Human Services Commission in accordance

 7-7     with Section 533.062.

 7-8           (g)  A license or renewal fee imposed under this chapter is

 7-9     an allowable cost for reimbursement under the state Medicaid

7-10     program.  An increase in the amount of a fee shall be reflected in

7-11     reimbursement rates prospectively.

7-12           Sec. 252.034.  LICENSE FEES.  (a)  The board by rule may

7-13     adopt a fee for a license issued under this chapter.  The fee may

7-14     not exceed $150 plus $5 for each unit of capacity or bed space for

7-15     which the license is sought.

7-16           (b)  The license fee must be paid with each application for

7-17     an initial license or for a renewal or change of ownership of a

7-18     license.

7-19           (c)  A facility operated by the state is not required to pay

7-20     a license fee.

7-21           (d)  The board may adopt an additional fee for the approval

7-22     of an increase in bed space.

7-23           (e)  All license fees collected under this section shall be

7-24     deposited in the state treasury to the credit of the department and

7-25     may be appropriated to the department to administer and enforce

 8-1     this chapter.

 8-2           Sec. 252.035.  DENIAL, SUSPENSION, OR REVOCATION OF LICENSE.

 8-3     (a)  The department, after providing notice and opportunity for a

 8-4     hearing to the applicant or license holder, may deny, suspend, or

 8-5     revoke a license if the department finds that the applicant or

 8-6     license holder has substantially failed to comply with the

 8-7     requirements established under this chapter.

 8-8           (b)  The status of an applicant for a license or a license

 8-9     holder is preserved until final disposition of the contested

8-10     matter, except as the court having jurisdiction of a judicial

8-11     review of the matter may order in the public interest for the

8-12     welfare and safety of the residents.

8-13           Sec. 252.036.  MINIMUM STANDARDS.  The board may adopt,

8-14     publish, and enforce minimum standards relating to:

8-15                 (1)  the construction or remodeling of a facility,

8-16     including plumbing, heating, lighting, ventilation, and other

8-17     housing conditions, to ensure the residents' health, safety,

8-18     comfort, and protection from fire hazard;

8-19                 (2)  sanitary and related conditions in a facility and

8-20     its surroundings, including water supply, sewage disposal, food

8-21     handling, and general hygiene in order to ensure the residents'

8-22     health, safety, and comfort;

8-23                 (3)  equipment essential to the residents' health and

8-24     welfare;

8-25                 (4)  the reporting and investigation of injuries,

 9-1     incidents, and unusual accidents and the establishment of other

 9-2     policies and procedures necessary to ensure resident safety;

 9-3                 (5)  behavior management, including use of seclusion

 9-4     and physical restraints;

 9-5                 (6)  policies and procedures for the control of

 9-6     communicable diseases in employees and residents;

 9-7                 (7)  the use and administration of medication in

 9-8     conformity with applicable law and rules for pharmacy services;

 9-9                 (8)  specialized nutrition support such as delivery of

9-10     enteral feedings and parenteral nutrients;

9-11                 (9)  requirements for in-service education of each

9-12     employee who has any contact with residents;

9-13                 (10)  the regulation of the number and qualification of

9-14     all personnel, including management and professional support

9-15     personnel, responsible for any part of the care given to residents;

9-16     and

9-17                 (11)  the quality of life  and the provision of active

9-18     treatment to residents.

9-19           Sec. 252.037.  REASONABLE TIME TO COMPLY.  The board by rule

9-20     shall give a facility that is in operation when a rule or standard

9-21     is adopted under this chapter a reasonable time to comply with the

9-22     rule or standard.

9-23           Sec. 252.038.  FIRE SAFETY REQUIREMENTS.  (a)  A facility

9-24     shall comply with fire safety requirements established under this

9-25     section.

 10-1          (b)  The board by rule shall adopt the fire safety standards

 10-2    applicable to the facility.  The fire safety standards must be the

 10-3    same as the fire safety standards established by an edition of the

 10-4    Life Safety Code of the National Fire Protection Association.  If

 10-5    required by federal law or regulation, the edition selected may be

 10-6    different for facilities or portions of facilities operated or

 10-7    approved for construction at different times.

 10-8          (c)  A facility that is licensed under applicable law on

 10-9    September 1, 1997, must comply with the fire safety standards,

10-10    including fire safety standards imposed by municipal ordinance,

10-11    applicable to the facility on that date.

10-12          (d)  The rules adopted under this section do not prevent a

10-13    facility licensed under this chapter from voluntarily conforming to

10-14    fire safety standards that are compatible with, equal to, or more

10-15    stringent than those adopted by the board.

10-16          (e)  Notwithstanding any other provision of this section, a

10-17    municipality may enact additional and more stringent fire safety

10-18    standards applicable to new construction begun on or after

10-19    September 1, 1997.

10-20          Sec. 252.039.  POSTING.  Each facility shall prominently and

10-21    conspicuously post for display in a public area of the facility

10-22    that is readily available to residents, employees, and visitors:

10-23                (1)  the license issued under this chapter;

10-24                (2)  a sign prescribed by the department that specifies

10-25    complaint procedures established under this chapter or rules

 11-1    adopted under this chapter and that specifies how complaints may be

 11-2    registered with the department;

 11-3                (3)  a notice in a form prescribed by the department

 11-4    stating that inspection and related reports are available at the

 11-5    facility for public inspection and providing the department's

 11-6    toll-free telephone number that may be used to obtain information

 11-7    concerning the facility; and

 11-8                (4)  a concise summary of the most recent inspection

 11-9    report relating to the facility.

11-10          Sec. 252.040.  INSPECTIONS.  (a)  The department or the

11-11    department's designee may make any inspection, survey, or

11-12    investigation that it considers necessary and may enter the

11-13    premises of a facility at reasonable times to make an inspection,

11-14    survey, or investigation in accordance with board rules.

11-15          (b)  The department is entitled to access to books, records,

11-16    and other documents maintained by or on behalf of a facility to the

11-17    extent necessary to enforce this chapter and the rules adopted

11-18    under this chapter.

11-19          (c)  A license holder or an applicant for a license is

11-20    considered to have consented to entry and inspection of the

11-21    facility by a representative of the department in accordance with

11-22    this chapter.

11-23          (d)  The department shall establish procedures to preserve

11-24    all relevant evidence of conditions the department finds during an

11-25    inspection, survey, or investigation that the department reasonably

 12-1    believes threaten the health and safety of a resident.  The

 12-2    procedures may include photography or photocopying of relevant

 12-3    documents, such as license holder's notes, physician's orders, and

 12-4    pharmacy records, for use in any legal proceeding.

 12-5          (e)  When photographing a resident, the department:

 12-6                (1)  shall respect the privacy of the resident to the

 12-7    greatest extent possible; and

 12-8                (2)  may not make public the identity of the resident.

 12-9          (f)  A facility, an officer or employee of a facility, and a

12-10    resident's attending physician are not civilly liable for

12-11    surrendering confidential or private material under this section,

12-12    including physician's orders, pharmacy records, notes and memoranda

12-13    of a state office, and resident files.

12-14          (g)  The department shall establish in clear and concise

12-15    language a form to summarize each inspection report and complaint

12-16    investigation report.

12-17          (h)  The department shall establish proper procedures to

12-18    ensure that copies of all forms and reports under this section are

12-19    made available to consumers, service recipients, and the relatives

12-20    of service recipients as the department considers proper.

12-21          Sec. 252.041.  UNANNOUNCED INSPECTIONS.  (a)  Each licensing

12-22    period, the department shall conduct at least two unannounced

12-23    inspections of each facility.

12-24          (b)  In order to ensure continuous compliance, the department

12-25    shall randomly select a sufficient percentage of facilities for

 13-1    unannounced inspections to be conducted between 5 p.m. and 8 a.m.

 13-2    Those inspections must be cursory to avoid to the greatest extent

 13-3    feasible any disruption of the residents.

 13-4          (c)  The department may require additional inspections.

 13-5          (d)  As considered appropriate and necessary by the

 13-6    department, the department may invite at least one person as a

 13-7    citizen advocate to participate in inspections.  The invited

 13-8    advocate must be an individual who has an interest in or who is

 13-9    employed by or affiliated with an organization or entity that

13-10    represents, advocates for, or serves individuals with mental

13-11    retardation or a related condition.

13-12          Sec. 252.042.  DISCLOSURE OF UNANNOUNCED INSPECTIONS;

13-13    CRIMINAL PENALTY.  (a)  Except as expressly provided by this

13-14    chapter, a person commits an offense if the person intentionally,

13-15    knowingly, or recklessly discloses to an unauthorized person the

13-16    date, time, or any other fact about an unannounced inspection of a

13-17    facility before the inspection occurs.

13-18          (b)  In this section, "unauthorized person" does not include:

13-19                (1)  the department;

13-20                (2)  the office of the attorney general;

13-21                (3)  a representative of an agency or organization when

13-22    a Medicaid survey is made concurrently with a licensing inspection;

13-23    or

13-24                (4)  any other person or entity authorized by law to

13-25    make an inspection or to accompany an inspector.

 14-1          (c)  An offense under this section is a Class B misdemeanor.

 14-2          (d)  A person convicted under this section is not eligible

 14-3    for state employment.

 14-4          Sec. 252.043.  LICENSING SURVEYS.  The department shall

 14-5    provide a team to conduct surveys to validate findings of licensing

 14-6    surveys.  The purpose of a validation survey is to assure that

 14-7    survey teams throughout the state survey in a fair and consistent

 14-8    manner.  A facility subjected to a validation survey must correct

 14-9    deficiencies cited by the validation team but is not subject to

14-10    punitive action for those deficiencies.

14-11             (Sections 252.044-252.060 reserved for expansion

14-12                    SUBCHAPTER C.  GENERAL ENFORCEMENT

14-13          Sec. 252.061.  EMERGENCY SUSPENSION OR CLOSING ORDER.

14-14    (a)  The department shall suspend a facility's license or order an

14-15    immediate closing of part of the facility if:

14-16                (1)  the department finds the facility is operating in

14-17    violation of the standards prescribed by this chapter; and

14-18                (2)  the violation creates an immediate threat to the

14-19    health and safety of a resident.

14-20          (b)  The board by rule shall provide for the placement of

14-21    residents during the facility's suspension or closing to ensure

14-22    their health and safety.

14-23          (c)  An order suspending a license or closing a part of a

14-24    facility under this section is immediately effective on the date on

14-25    which the license holder receives written notice or a later date

 15-1    specified in the order.

 15-2          (d)  An order suspending a license or ordering an immediate

 15-3    closing of a part of a facility is valid for 10 days after the

 15-4    effective date of the order.

 15-5          Sec. 252.062.  INJUNCTION.  (a)  The department may petition

 15-6    a district court for a temporary restraining order to restrain a

 15-7    person from continuing a violation of the standards prescribed by

 15-8    this chapter if the department finds that the violation creates an

 15-9    immediate threat to the health and safety of the facility's

15-10    residents.

15-11          (b)  A district court, on petition of the department, may by

15-12    injunction:

15-13                (1)  prohibit a person from continuing a violation of

15-14    the standards or licensing requirements prescribed by this chapter;

15-15                (2)  restrain or prevent the establishment, conduct,

15-16    management, or operation of a facility without a license issued

15-17    under this chapter; or

15-18                (3)  grant the injunctive relief warranted by the facts

15-19    on a finding by the court that a person is violating the standards

15-20    or licensing requirements prescribed by this chapter.

15-21          (c)  The attorney general, on request by the department,

15-22    shall bring and conduct on behalf of the state a suit authorized by

15-23    this section.

15-24          (d)  A suit for a temporary restraining order or other

15-25    injunctive relief must be brought in the county in which the

 16-1    alleged violation occurs.

 16-2          Sec. 252.063.  LICENSE REQUIREMENTS; CRIMINAL PENALTY.

 16-3    (a)  A person commits an offense if the person violates Section

 16-4    252.031.

 16-5          (b)  An offense under this section is punishable by a fine of

 16-6    not more than $1,000 for the first offense and not more than $500

 16-7    for each subsequent offense.

 16-8          (c)  Each day of a continuing violation after conviction is a

 16-9    separate offense.

16-10          Sec. 252.064.  CIVIL PENALTY.  (a)  A person who violates

16-11    this chapter or a rule adopted under this chapter is liable for a

16-12    civil penalty of not less than $100 or more than $10,000 for each

16-13    violation if the department determines the violation threatens the

16-14    health and safety of a resident.

16-15          (b)  Each day of a continuing violation constitutes a

16-16    separate ground for recovery.

16-17          (c)  The attorney general, on request of the department,

16-18    shall bring and conduct a suit to collect a civil penalty.  Any

16-19    amount collected shall be remitted to the comptroller for deposit

16-20    to the credit of the general revenue fund.

16-21          Sec. 252.065.  ADMINISTRATIVE PENALTY.  (a)  The department

16-22    may assess an administrative penalty against a facility that

16-23    violates this chapter or a rule adopted under this chapter as

16-24    specified by this section.

16-25          (b)  The department by rule shall establish gradations and

 17-1    amounts of penalties.

 17-2          (c)  In determining the amount of a penalty, the department

 17-3    shall consider:

 17-4                (1)  the gradations of penalties established under

 17-5    Subsection (b);

 17-6                (2)  the seriousness of the violation, including the

 17-7    nature, circumstances, extent, and gravity of the violation;

 17-8                (3)  the hazard or potential hazard created by the

 17-9    violation to the public health and safety;

17-10                (4)  any previous violations;

17-11                (5)  the amount necessary to deter future violations;

17-12                (6)  efforts made to correct the violation;

17-13                (7)  the size of the facility; and

17-14                (8)  any other matter justice may require.

17-15          (d)  The penalty may not exceed $5,000 for each violation.

17-16    Each day of a continuing violation constitutes a separate

17-17    violation.

17-18          (e)  The department may not assess a penalty under both this

17-19    subchapter and Section 32.021, Human Resources Code, for a

17-20    violation arising out of the same act or failure to act.

17-21          Sec. 252.066.  RULES REGARDING ADMINISTRATIVE PENALTY.

17-22    (a)  The board shall adopt rules governing the assessment of

17-23    administrative penalties under this chapter, including rules

17-24    providing procedures for:

17-25                (1)  giving notice of a violation to a facility;

 18-1                (2)  payment and refund of a penalty; and

 18-2                (3)  hearings and appeals.

 18-3          (b)  Rules adopted under this section shall include specific

 18-4    and objective criteria that describe the scope and severity of a

 18-5    violation that results in a recommendation for each specific

 18-6    penalty.  A penalty must be appropriate to the violation.

 18-7          (c)  The rules must establish a system to ensure standard and

 18-8    consistent application of penalties by local surveyors and across

 18-9    different areas of the state.

18-10          (d)  The department may prescribe a per diem penalty.  The

18-11    per diem penalty ceases on the date a violation is corrected.  The

18-12    per diem penalty ceases only if the facility notifies the

18-13    department in writing that the violation has been corrected and of

18-14    the date of the correction and shows later that the violation was

18-15    corrected.

18-16          (e)  For purposes of this section, "immediate and serious

18-17    threat" means a situation in which there is a high probability that

18-18    serious harm or injury to residents could occur at any time or has

18-19    already occurred and may occur again if residents are not protected

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

18-21             (Sections 252.067-252.090 reserved for expansion

18-22                  SUBCHAPTER D.  TRUSTEES FOR FACILITIES

18-23          Sec. 252.091.  FINDINGS AND PURPOSE.  (a)  The legislature

18-24    finds that, under some circumstances, closing a facility for a

18-25    violation of a law or rule may:

 19-1                (1)  have an adverse effect on the facility's residents

 19-2    and their families; and

 19-3                (2)  result in a lack of readily available financial

 19-4    resources to meet the basic needs of the residents for food,

 19-5    shelter, medication, and personal services.

 19-6          (b)  The purpose of this subchapter is to provide for:

 19-7                (1)  the appointment of a trustee to assume the

 19-8    operations of the facility in a manner that emphasizes resident

 19-9    care and reduces resident trauma; and

19-10                (2)  a fund to assist a court-appointed trustee in

19-11    meeting the basic needs of the residents.

19-12          Sec. 252.092.  APPOINTMENT BY AGREEMENT.  (a)  A person who

19-13    holds a controlling interest in a facility may request the

19-14    department to assume the operation of the facility through the

19-15    appointment of a trustee under this subchapter.

19-16          (b)  After receiving the request, the department may enter

19-17    into an agreement providing for the appointment of a trustee to

19-18    take charge of the facility under conditions both parties consider

19-19    appropriate if the department considers the appointment desirable.

19-20          (c)  An agreement under this section must:

19-21                (1)  specify the terms and conditions of the trustee's

19-22    appointment and authority; and

19-23                (2)  preserve the rights of the residents as granted by

19-24    law.

19-25          (d)  The agreement terminates at the time:

 20-1                (1)  specified by the parties; or

 20-2                (2)  either party notifies the other in writing that

 20-3    the party is terminating the appointment agreement.

 20-4          Sec. 252.093.  INVOLUNTARY APPOINTMENT.  (a)  The department

 20-5    may request the attorney general to bring an action on behalf of

 20-6    the state for the appointment of a trustee to operate a facility

 20-7    if:

 20-8                (1)  the facility is operating without a license;

 20-9                (2)  the department has suspended or revoked the

20-10    facility's license;

20-11                (3)  license suspension or revocation procedures

20-12    against the facility are pending and the department determines that

20-13    an imminent threat to the health and safety of the residents

20-14    exists;

20-15                (4)  the department determines that an emergency exists

20-16    that presents an immediate threat to the health and safety of the

20-17    residents; or

20-18                (5)  the facility is closing and arrangements for

20-19    relocation of the residents to other licensed facilities have not

20-20    been made before closure.

20-21          (b)  A trustee appointed under Subsection (a)(5) may only

20-22    ensure an orderly and safe relocation of the facility's residents

20-23    as quickly as possible.

20-24          (c)  After a hearing, a court shall appoint a trustee to take

20-25    charge of a facility if the court finds that involuntary

 21-1    appointment of a trustee is necessary.

 21-2          (d)  If possible, the court shall appoint as trustee an

 21-3    individual whose background includes mental retardation service

 21-4    administration.

 21-5          (e)  An action under this section must be brought in Travis

 21-6    County.

 21-7          Sec. 252.094.  FEE; RELEASE OF MONEY.  (a)  A trustee

 21-8    appointed under this subchapter is entitled to a reasonable fee as

 21-9    determined by the court.

21-10          (b)  The trustee may petition the court to order the release

21-11    to the trustee of any payment owed the trustee for care and

21-12    services provided to the residents if the payment has been

21-13    withheld, including a payment withheld by a governmental agency or

21-14    other entity during the appointment of the trustee, such as

21-15    payments:

21-16                (1)  for Medicaid or insurance;

21-17                (2)  by a third party; or

21-18                (3)  for medical expenses borne by the residents.

21-19          Sec. 252.095.  EMERGENCY ASSISTANCE FEE.  (a)  In addition to

21-20    the licensing and renewal fee collected under Section 252.034, the

21-21    department may collect an annual fee to be used to make emergency

21-22    assistance money available to a facility licensed under this

21-23    chapter.

21-24          (b)  The fee collected under this section shall be in the

21-25    amount prescribed by Section 242.097(b) and shall be deposited to

 22-1    the credit of the nursing and convalescent home trust fund

 22-2    established under Section 242.096.

 22-3          (c)  The department may disburse money to a trustee for a

 22-4    facility licensed under this chapter to alleviate an immediate

 22-5    threat to the health or safety of the facility's residents.

 22-6    Payments under this section may include payments described by

 22-7    Section 242.096(b).

 22-8          (d)  A court may order the department to disburse emergency

 22-9    assistance money to a trustee for a facility licensed under this

22-10    chapter if the court makes the findings provided by Section

22-11    242.096(c).

22-12          Sec. 252.096.  REIMBURSEMENT.  (a)  A facility that receives

22-13    emergency assistance money under this subchapter shall reimburse

22-14    the department for the amounts received, including interest.

22-15          (b)  Interest on unreimbursed amounts begins to accrue on the

22-16    date on which the money is disbursed to the facility.  The rate of

22-17    interest is the rate determined under Section 2, Article 1.05,

22-18    Title 79, Revised Statutes (Article 5069-1.05, Vernon's Texas Civil

22-19    Statutes), to be applicable to judgments rendered during the month

22-20    in which the money is disbursed to the facility.

22-21          (c)  The owner of the facility when the trustee is appointed

22-22    is responsible for the reimbursement.

22-23          (d)  The amount that remains unreimbursed on the first

22-24    anniversary of the date on which the money is received is

22-25    delinquent and the Texas Department of Mental Health and Mental

 23-1    Retardation may determine that the facility is ineligible for a

 23-2    Medicaid provider contract.

 23-3          (e)  The department shall deposit the reimbursement and

 23-4    interest received under this section to the credit of the nursing

 23-5    and convalescent home trust fund.

 23-6          (f)  The attorney general shall institute an action to

 23-7    collect money due under this section at the request of the

 23-8    department.   An action under this section must be brought in

 23-9    Travis County.

23-10          Sec. 252.097.  NOTIFICATION OF CLOSURE.  (a)  A facility that

23-11    is closing temporarily or permanently, voluntarily or

23-12    involuntarily, shall notify the residents of the closing and make

23-13    reasonable efforts to notify in writing each resident's nearest

23-14    relative or the person responsible for the resident's support

23-15    within a reasonable time before the facility closes.

23-16          (b)  If the department orders a facility to close or the

23-17    facility's closure is in any other way involuntary, the facility

23-18    shall make the notification, orally or in writing, immediately on

23-19    receiving notice of the closing.

23-20          (c)  If the facility's closure is voluntary, the facility

23-21    shall make the notification not later than one week after the date

23-22    on which the decision to close is made.

23-23          Sec. 252.098.  CRIMINAL PENALTY FOR FAILURE TO NOTIFY.

23-24    (a)  A facility commits an offense if the facility knowingly fails

23-25    to comply with Section 252.097.

 24-1          (b)  An offense under this section is a Class A misdemeanor.

 24-2             (Sections 252.099-252.120 reserved for expansion

 24-3                SUBCHAPTER E.  REPORTS OF ABUSE AND NEGLECT

 24-4          Sec. 252.121.  DEFINITION.  In this subchapter, "designated

 24-5    agency" means an agency designated by a court to be responsible for

 24-6    the protection of a resident who is the subject of a report of

 24-7    abuse or neglect.

 24-8          Sec. 252.122.  REPORTING OF ABUSE AND NEGLECT.  (a)  A

 24-9    person, including an owner or employee of a facility, who has cause

24-10    to believe that the physical or mental health or welfare of a

24-11    resident has been or may be adversely affected by abuse or neglect

24-12    caused by another person shall report the abuse or neglect to the

24-13    department, to a designated agency, or to both the department and

24-14    the designated agency, as specified in department rules.

24-15          (b)  Each facility shall require each employee of the

24-16    facility, as a condition of employment with the facility, to sign a

24-17    statement that the employee realizes that the employee may be

24-18    criminally liable for failure to report abuse or neglect.

24-19          (c)  A person shall make an oral report immediately on

24-20    learning of abuse or neglect and shall make a written report to the

24-21    same agency not later than the fifth day after the oral report is

24-22    made.

24-23          Sec. 252.123.  CONTENTS OF REPORT.  (a)  A report of abuse or

24-24    neglect is nonaccusatory and reflects the reporting person's belief

24-25    that a resident has been or will be abused or neglected or has died

 25-1    of abuse or neglect.

 25-2          (b)  The report must contain:

 25-3                (1)  the name and address of the resident;

 25-4                (2)  the name and address of the person responsible for

 25-5    the care of the resident, if available; and

 25-6                (3)  other relevant information.

 25-7          Sec. 252.124.  ANONYMOUS REPORTS OF ABUSE OR NEGLECT.

 25-8    (a)  An anonymous report of abuse or neglect, although not

 25-9    encouraged, shall be received and acted on in the same manner as an

25-10    acknowledged report.

25-11          (b)  A local or state law enforcement agency that receives a

25-12    report of abuse or neglect shall refer the report to the department

25-13    or the designated agency.

25-14          Sec. 252.125.  INVESTIGATION AND REPORT OF RECEIVING AGENCY.

25-15    (a)  The department or the designated agency shall make a thorough

25-16    investigation promptly after receiving either the oral or written

25-17    report.

25-18          (b)  The primary purpose of the investigation is the

25-19    protection of the resident.

25-20          (c)  In the investigation, the department or the designated

25-21    agency shall determine:

25-22                (1)  the nature, extent, and cause of the abuse or

25-23    neglect;

25-24                (2)  the identity of the person responsible for the

25-25    abuse or neglect;

 26-1                (3)  the names and conditions of the other residents;

 26-2                (4)  an evaluation of the persons responsible for the

 26-3    care of the residents;

 26-4                (5)  the adequacy of the facility environment; and

 26-5                (6)  any other information required by the department.

 26-6          (d)  The investigation may include a visit to the resident's

 26-7    facility and an interview with the resident, if considered

 26-8    appropriate by the department.

 26-9          (e)  If the department attempts to carry out an on-site

26-10    investigation and it is shown that admission to the facility or any

26-11    place where a resident is located cannot be obtained, a probate or

26-12    county court shall order the person responsible for the care of the

26-13    resident or the person in charge of a place where the resident is

26-14    located to allow admission for the investigation and any interview

26-15    with the resident.

26-16          (f)  Before the completion of the investigation, the

26-17    department shall file a petition for temporary care and protection

26-18    of the resident if the department determines that immediate removal

26-19    is necessary to protect the resident from further abuse or neglect.

26-20          (g)  The department or the designated agency shall make a

26-21    complete written report of the investigation and submit the report

26-22    and its recommendations to the district attorney and the

26-23    appropriate law enforcement agency and, if necessary, to the

26-24    department on the department's request.

26-25          Sec. 252.126.  CONFIDENTIALITY.  A report, record, or working

 27-1    paper used or developed in an investigation made under this

 27-2    subchapter is confidential and may be disclosed only for purposes

 27-3    consistent with the rules adopted by the board or the designated

 27-4    agency.

 27-5          Sec. 252.127.  IMMUNITY.  (a)  Except as provided by Section

 27-6    252.131, a person who reports an act of abuse or neglect as

 27-7    provided by this subchapter is immune from civil or criminal

 27-8    liability that, in the absence of the immunity, might result from

 27-9    making the report.

27-10          (b)  The immunity provided by this section extends to

27-11    participation in any judicial proceeding that results from the

27-12    report.

27-13          Sec. 252.128.  PRIVILEGED COMMUNICATIONS.  In a proceeding

27-14    regarding the abuse or neglect of a resident or the cause of any

27-15    abuse or neglect, evidence may not be excluded on the ground of

27-16    privileged communication except in the case of a communication

27-17    between an attorney and client.

27-18          Sec. 252.129.  CENTRAL REGISTRY.  (a)  The department shall

27-19    maintain in the city of Austin a central registry of reported cases

27-20    of resident abuse or neglect.  The department shall include the

27-21    registry in the registry maintained under Section 242.130.

27-22          (b)  The board may adopt rules necessary to carry out this

27-23    section.

27-24          (c)  The rules shall provide for cooperation with hospitals

27-25    and clinics in the exchange of reports of resident abuse or

 28-1    neglect.

 28-2          Sec. 252.130.  FAILURE TO REPORT; CRIMINAL PENALTY.  (a)  A

 28-3    person commits an offense if the person has cause to believe that a

 28-4    resident's physical or mental health or welfare has been or may be

 28-5    further adversely affected by abuse or neglect and knowingly fails

 28-6    to report in accordance with Section 252.122.

 28-7          (b)  An offense under this section is a Class A misdemeanor.

 28-8          Sec. 252.131.  BAD FAITH, MALICIOUS, OR RECKLESS REPORTING;

 28-9    CRIMINAL PENALTY.  (a)  A person commits an offense if the person

28-10    reports under this subchapter in bad faith, maliciously, or

28-11    recklessly.

28-12          (b)  An offense under this section is a Class A misdemeanor.

28-13          (c)  The criminal penalty provided by this section is in

28-14    addition to any civil penalties for which the person may be liable.

28-15          Sec. 252.132.  SUIT FOR RETALIATION.  (a)  A facility may not

28-16    suspend or terminate the employment of, or discipline or otherwise

28-17    discriminate against, an employee for reporting to the employee's

28-18    supervisor, an administrator of the facility, a state regulatory

28-19    agency, or a law enforcement agency the abuse or neglect of a

28-20    resident.

28-21          (b)  A facility that violates Subsection (a) is liable to the

28-22    person against whom the facility discriminated.  A person against

28-23    whom a facility discriminates in violation of Subsection (a) may

28-24    sue for injunctive relief, damages, or both.

28-25          (c)  A plaintiff who prevails in a suit under this section

 29-1    may recover:

 29-2                (1)  the greater of $1,000 or actual damages, including

 29-3    damages for mental anguish even if an injury other than mental

 29-4    anguish is not shown and damages for lost wages if the petitioner's

 29-5    employment was suspended or terminated;

 29-6                (2)  exemplary damages;

 29-7                (3)  court costs; and

 29-8                (4)  reasonable attorney's fees.

 29-9          (d)  In addition to the amounts that may be recovered under

29-10    Subsection (c), a person whose employment is suspended or

29-11    terminated is entitled to reinstatement in the person's former

29-12    position.

29-13          (e)  The petitioner, not later than the 90th day after the

29-14    date on which the person's employment is suspended or terminated,

29-15    must bring suit or notify the Texas Workforce Commission of the

29-16    petitioner's intent to sue under this section.  A petitioner who

29-17    notifies the Texas Workforce Commission under this subsection must

29-18    bring suit not later than the 90th day after the date of the

29-19    delivery of the notice to the commission.  On receipt of the

29-20    notice, the commission shall notify the facility of the

29-21    petitioner's intent to bring suit under this section.

29-22          (f)  The petitioner has the burden of proof, except that

29-23    there is a rebuttable presumption that the person's employment was

29-24    suspended or terminated for reporting abuse or neglect if the

29-25    person is suspended or terminated within 60 days after the date on

 30-1    which the person reported in good faith.

 30-2          (g)  A suit under this section may be brought in the district

 30-3    court of the county in which:

 30-4                (1)  the plaintiff resides;

 30-5                (2)  the plaintiff was employed by the defendant; or

 30-6                (3)  the defendant conducts business.

 30-7          (h)  Each facility shall require each employee of the

 30-8    facility, as a condition of employment with the facility, to sign a

 30-9    statement that the employee understands the employee's rights under

30-10    this section.  The statement must be part of the statement required

30-11    under Section 252.122(b).  If a facility does not require an

30-12    employee to read and sign the statement, the periods prescribed by

30-13    Subsection (e) do not apply, and the petitioner must bring suit not

30-14    later than the second anniversary of the date on which the person's

30-15    employment is suspended or terminated.

30-16          Sec. 252.133.  SUIT FOR RETALIATION AGAINST RESIDENT.  (a)  A

30-17    facility may not retaliate or discriminate against a resident if

30-18    the resident, the resident's guardian, or any other person reports

30-19    abuse or neglect in accordance with this subchapter.

30-20          (b)  A resident against whom a facility retaliates or

30-21    discriminates in violation of Subsection (a) is entitled to sue

30-22    for:

30-23                (1)  injunctive relief;

30-24                (2)  actual damages;

30-25                (3)  exemplary damages;

 31-1                (4)  court costs; and

 31-2                (5)  reasonable attorney's fees.

 31-3          (c)  A resident who seeks relief under this section must

 31-4    report the alleged violation not later than the 180th day after the

 31-5    date on which the alleged violation of this section occurred or was

 31-6    discovered by the resident through reasonable diligence.

 31-7          (d)  A suit under this section may be brought in the district

 31-8    court of the county in which the facility is located or in a

 31-9    district court of Travis County.

31-10          Sec. 252.134.  REPORTS RELATING TO RESIDENT DEATHS;

31-11    STATISTICAL INFORMATION.  (a)  A facility licensed under this

31-12    chapter shall submit a report to the department concerning the

31-13    death of:

31-14                (1)  a resident of the facility; and

31-15                (2)  a former resident that occurs 24 hours or less

31-16    after the former resident is transferred from the facility to a

31-17    hospital.

31-18          (b)  The report must be submitted not later than the 10th

31-19    working day after the last day of each month in which a resident of

31-20    the facility dies.  The facility must make the report on a form

31-21    prescribed by the department.  The report must contain the name and

31-22    social security number of the deceased.

31-23          (c)  The department shall correlate reports under this

31-24    section with death certificate information to develop data relating

31-25    to the:

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

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

 32-3    certificate;

 32-4                (3)  date, time, and place of death; and

 32-5                (4)  name and address of the facility in which the

 32-6    deceased resided.

 32-7          (d)  Unless specified by board rule, a record under this

 32-8    section is confidential and not subject to the provisions of

 32-9    Chapter 552, Government Code.

32-10          (e)  The department shall develop statistical information on

32-11    official causes of death to determine patterns and trends of

32-12    incidents of death among persons with mental retardation and

32-13    related conditions and in specific facilities. Information

32-14    developed under this subsection is not confidential.

32-15          (f)  A licensed facility shall make available on the request

32-16    of an applicant or an applicant's representative historical

32-17    statistics on all required information.

32-18             (Sections 252.135-252.150 reserved for expansion

32-19                        SUBCHAPTER F.  MEDICAL CARE

32-20          Sec. 252.151.  ADMINISTRATION OF MEDICATION.  The department

32-21    shall adopt rules relating to the administration of medication in

32-22    facilities.

32-23          Sec. 252.152.  REQUIRED MEDICAL EXAMINATION.  (a)  The

32-24    department shall require each resident to be given at least one

32-25    medical examination each year.

 33-1          (b)  The department shall specify the details of the

 33-2    examination.

 33-3          Sec. 252.153.  EMERGENCY MEDICATION KIT.  (a)  A facility

 33-4    licensed under this chapter is entitled to maintain a supply of

 33-5    controlled substances in an emergency medication kit for a

 33-6    resident's emergency medication needs.

 33-7          (b)  The controlled substances shall be labeled in accordance

 33-8    with all applicable state and federal food and drug laws, including

 33-9    Chapter 481 (Texas Controlled Substances Act).

33-10          (c)  The board shall adopt rules governing the amount, type,

33-11    and procedure for use of the controlled substances in the emergency

33-12    medication kit.  The storage of the controlled substances in the

33-13    kit is under the supervision of the consultant pharmacist.

33-14          (d)  The administration of the controlled substances in the

33-15    emergency medication kit shall comply with all applicable laws.

33-16             (Sections 252.154-252.180 reserved for expansion

33-17                        SUBCHAPTER G.  RESPITE CARE

33-18          Sec. 252.181.  DEFINITIONS.  In this subchapter:

33-19                (1)  "Plan of care" means a written description of the

33-20    care, training, and treatment needed by a person during respite

33-21    care.

33-22                (2)  "Respite care" means the provision by a facility

33-23    to a person, for not more than two weeks for each stay in the

33-24    facility, of:

33-25                      (A)  room and board; and

 34-1                      (B)  care at the level ordinarily provided for

 34-2    permanent residents.

 34-3          Sec. 252.182.  RESPITE CARE.  (a)  A facility licensed under

 34-4    this chapter may provide respite care for an individual who has a

 34-5    diagnosis of mental retardation or a related condition without

 34-6    regard to whether the individual is eligible to receive

 34-7    intermediate care services under federal law.

 34-8          (b)  The board may adopt rules for the regulation of respite

 34-9    care provided by a facility licensed under this chapter.

34-10          Sec. 252.183.  PLAN OF CARE.  (a)  The facility and the

34-11    person arranging the care must agree on the plan of care and the

34-12    plan must be filed at the facility before the facility admits the

34-13    person for the care.

34-14          (b)  The plan of care must be signed by:

34-15                (1)  a licensed physician if the person for whom the

34-16    care is arranged needs medical care or treatment; or

34-17                (2)  the person arranging for the respite care if

34-18    medical care or treatment is not needed.

34-19          (c)  The facility may keep an agreed plan of care for a

34-20    person for not longer than six months from the date on which it is

34-21    received.  After each admission, the facility shall review and

34-22    update the plan of care.  During that period, the facility may

34-23    admit the person as frequently as is needed and as accommodations

34-24    are available.

34-25          Sec. 252.184.  NOTIFICATION.  A facility that offers respite

 35-1    care shall notify the department in writing that it offers respite

 35-2    care.

 35-3          Sec. 252.185.  INSPECTIONS.  The department, at the time of

 35-4    an ordinary licensing inspection or at other times determined

 35-5    necessary by the department, shall inspect a facility's records of

 35-6    respite care services, physical accommodations available for

 35-7    respite care, and the plan of care records to ensure that the

 35-8    respite care services comply with the licensing standards of this

 35-9    chapter and with any rules the board may adopt to regulate respite

35-10    care services.

35-11          Sec. 252.186.  SUSPENSION.  (a)  The department may require a

35-12    facility to cease providing respite care if the department

35-13    determines that the respite care does not meet the standards

35-14    required by this chapter and that the facility cannot comply with

35-15    those standards in the respite care it provides.

35-16          (b)  The department may suspend the license of a facility

35-17    that continues to provide respite care after receiving a written

35-18    order from the department to cease.

35-19          SECTION 2.  Subdivision (6), Section 242.002, Health and

35-20    Safety Code, is amended to read as follows:

35-21                (6)  "Institution" means[:]

35-22                      [(A)]  an establishment that:

35-23                      (A) [(i)]  furnishes, in one or more facilities,

35-24    food and shelter to four or more persons who are unrelated to the

35-25    proprietor of the establishment; and

 36-1                      (B) [(ii)]  provides minor treatment under the

 36-2    direction and supervision of a physician licensed by the Texas

 36-3    State Board of Medical Examiners, or other services that meet some

 36-4    need beyond the basic provision of food, shelter, and laundry[; or]

 36-5                      [(B)  a foster care type residential facility

 36-6    that provides room and board to fewer than five persons who:]

 36-7                            [(i)  are not related within the second

 36-8    degree of consanguinity or affinity, as determined under Chapter

 36-9    573, Government Code, to the proprietor; and]

36-10                            [(ii)  because of their physical or mental

36-11    limitation, or both, require a level of care and services suitable

36-12    to their needs that contributes to their health, comfort, and

36-13    welfare].

36-14          SECTION 3.  Section 242.003, Health and Safety Code, is

36-15    amended to read as follows:

36-16          Sec. 242.003.  EXEMPTIONS.  [(a)]  Except as otherwise

36-17    provided, this chapter does not apply to:

36-18                (1)  a hotel or other similar place that furnishes only

36-19    food, lodging, or both, to its guests;

36-20                (2)  a hospital;

36-21                (3)  an establishment conducted by or for the adherents

36-22    of a well-recognized church or religious denomination for the

36-23    purpose of providing facilities for the care or treatment of the

36-24    sick who depend exclusively on prayer or spiritual means for

36-25    healing, without the use of any drug or material remedy, if the

 37-1    establishment complies with safety, sanitary, and quarantine laws

 37-2    and rules;

 37-3                (4)  an establishment that furnishes, in addition to

 37-4    food, shelter, and laundry, only baths and massages;

 37-5                (5)  an institution operated by a person licensed by

 37-6    the Texas Board of Chiropractic Examiners;

 37-7                (6)  a facility that:

 37-8                      (A)  primarily engages in training, habilitation,

 37-9    rehabilitation, or education of clients or residents;

37-10                      (B)  is operated under the jurisdiction of a

37-11    state or federal agency, including the Texas Rehabilitation

37-12    Commission, Texas Department of Mental Health and Mental

37-13    Retardation, Texas Department of Human Services, Texas Commission

37-14    for the Blind, Texas Commission on Alcohol and Drug Abuse,

37-15    institutional division of the Texas Department of Criminal Justice,

37-16    and the Veteran's Administration; and

37-17                      (C)  is certified through inspection or

37-18    evaluation as meeting the standards established by the state or

37-19    federal agency; [and]

37-20                (7)  a foster care type residential facility that

37-21    serves fewer than five persons and operates under rules adopted by

37-22    the Texas Department of Human Services; and

37-23                (8)  a facility licensed under Chapter 252 or exempt

37-24    from licensure under Section 252.003.

37-25          [(b)  An institution described by Section 242.002(6)(C) is

 38-1    subject to licensing under this chapter only if written application

 38-2    is made for participation in the intermediate care program under

 38-3    federal law.]

 38-4          SECTION 4.  (a)  Except as provided by Subsection (b) of this

 38-5    section, this Act takes effect September 1, 1997.

 38-6          (b)  Section 2 of this Act takes effect January 1, 1998.

 38-7          SECTION 5.  (a)  Notwithstanding Sections 252.031 and

 38-8    252.063, Health and Safety Code, as added by this Act:

 38-9                (1)  a facility is not required to be licensed under

38-10    Chapter 252, Health and Safety Code, as added by this Act, before

38-11    January 1, 1998; and

38-12                (2)  a facility that is required to be licensed under

38-13    that chapter and that is, on the effective date of this Act,

38-14    licensed under Chapter 242, Health and Safety Code, may continue to

38-15    operate under the license issued under Chapter 242 until the later

38-16    of:

38-17                      (A)  December 31, 1997; or

38-18                      (B)  the date on which the license is subject to

38-19    renewal.

38-20          (b)  A license issued under Chapter 242, Health and Safety

38-21    Code, to an institution that is required to be licensed as a

38-22    facility under Chapter 252, Health and Safety Code, as added by

38-23    this Act, may not be renewed after December 1, 1997.

38-24          (c)  A facility licensed under Chapter 252, Health and Safety

38-25    Code, as added by this Act, is not subject to Chapter 48, Human

 39-1    Resources Code.

 39-2          SECTION 6.  The importance of this legislation and the

 39-3    crowded condition of the calendars in both houses create an

 39-4    emergency and an imperative public necessity that the

 39-5    constitutional rule requiring bills to be read on three several

 39-6    days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 1248 passed the Senate on

         April 14, 1997, by a viva-voce vote; and that the Senate concurred

         in House amendment on May 19, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 1248 passed the House, with

         amendment, on May 16, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor