By Naishtat H.B. No. 154
76R244 SKB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the representation of the state by the attorney general
1-3 in certain cases involving nursing facilities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 242.065, Health and Safety Code, is
1-6 amended by relettering Subsections (f), (g), and (h) as Subsections
1-7 (g), (h), and (i) and adding a new Subsection (f) to read as
1-8 follows:
1-9 (f) On request by the department, the attorney general shall
1-10 institute an action in a district court to collect a civil penalty
1-11 under this section.
1-12 (g) [(f)] A payment made to satisfy an obligation under this
1-13 section is not an allowable cost for reimbursement under the state
1-14 Medicaid program.
1-15 (h) [(g)] A civil penalty awarded under this section
1-16 constitutes a fine, penalty, or forfeiture payable to and for the
1-17 benefit of a government unit and is not compensation for actual
1-18 pecuniary loss.
1-19 (i) [(h)] In this section, "affiliate" means:
1-20 (1) with respect to a partnership other than a limited
1-21 partnership, each partner of the partnership;
1-22 (2) with respect to a corporation:
1-23 (A) an officer;
1-24 (B) a director;
2-1 (C) a stockholder who owns, holds, or has the
2-2 power to vote at least 10 percent of any class of securities issued
2-3 by the corporation, regardless of whether the power is of record or
2-4 beneficial; and
2-5 (D) a controlling individual;
2-6 (3) with respect to an individual:
2-7 (A) each partnership and each partner in the
2-8 partnership in which the individual or any other affiliate of the
2-9 individual is a partner; and
2-10 (B) each corporation or other business entity in
2-11 which the individual or another affiliate of the individual is:
2-12 (i) an officer;
2-13 (ii) a director;
2-14 (iii) a stockholder who owns, holds, or
2-15 has the power to vote at least 10 percent of any class of
2-16 securities issued by the corporation, regardless of whether the
2-17 power is of record or beneficial; and
2-18 (iv) a controlling individual;
2-19 (4) with respect to a limited partnership:
2-20 (A) a general partner; and
2-21 (B) a limited partner who is a controlling
2-22 individual;
2-23 (5) with respect to a limited liability company:
2-24 (A) an owner who is a manager as described by
2-25 the Texas Limited Liability Company Act (Article 1528n, Vernon's
2-26 Texas Civil Statutes); and
2-27 (B) each owner who is a controlling individual;
3-1 and
3-2 (6) with respect to any other business entity, a
3-3 controlling individual.
3-4 SECTION 2. Section 242.253, Health and Safety Code, is
3-5 amended by adding Subsection (e) to read as follows:
3-6 (e) On request by the department, the attorney general shall
3-7 represent the department in the arbitration.
3-8 SECTION 3. The importance of this legislation and the
3-9 crowded condition of the calendars in both houses create an
3-10 emergency and an imperative public necessity that the
3-11 constitutional rule requiring bills to be read on three several
3-12 days in each house be suspended, and this rule is hereby suspended,
3-13 and that this Act take effect and be in force from and after its
3-14 passage, and it is so enacted.