By Garcia                                              H.B. No. 841
         76R703 DLF-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain penalties imposed on convalescent and nursing
 1-3     homes and related institutions.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter C, Chapter 242, Health and Safety
 1-6     Code, is amended by adding Section 242.0661 to read as follows:
 1-7           Sec. 242.0661.  MINIMUM AMOUNT OF CIVIL OR ADMINISTRATIVE
 1-8     PENALTY.  (a)  The minimum amount of a civil or administrative
 1-9     penalty assessed under this subchapter is $5,000 a day for each
1-10     violation if the department or court, as applicable, finds that,
1-11     within one year before the date of the violation for which the
1-12     penalty is to be assessed, the institution had committed a separate
1-13     violation with respect to which:
1-14                 (1)  the institution's license was denied, suspended,
1-15     or revoked under Section 242.061;
1-16                 (2)  an injunction was issued under Section 242.063;
1-17                 (3)  an administrative or civil penalty was assessed
1-18     under Section 242.065 or 242.066;
1-19                 (4)  the institution exercised a right to correct under
1-20     Section 242.0665; or
1-21                 (5)  another remedy was imposed against the institution
1-22     under Section 242.071.
1-23           (b)  Each day of a continuing violation constitutes a
1-24     separate violation.  However, a violation is not subject to
 2-1     enhancement of the minimum amount of a civil or administrative
 2-2     penalty under this section solely because the conduct continues for
 2-3     a period that exceeds one day.
 2-4           (c)  The enhancement of the minimum amount of a penalty under
 2-5     this section applies without regard to whether the previous
 2-6     violation or the violation for which the penalty is being assessed:
 2-7                 (1)  is subject to Section 242.066(f); or
 2-8                 (2)  is or would have otherwise been subject to a right
 2-9     to correct under Section 242.0665.
2-10           SECTION 2.  Section 242.065(a), Health and Safety Code, is
2-11     amended to read as follows:
2-12           (a)  A person who violates or causes a violation of this
2-13     chapter or a rule adopted under this chapter is liable for a civil
2-14     penalty of not less than $1,000 or more than $20,000 for each act
2-15     of violation if the department determines the violation threatens
2-16     the health and safety of a resident. The penalty is subject to
2-17     enhancement of the minimum amount of the penalty under Section
2-18     242.0661, if applicable.
2-19           SECTION 3.  Section 242.066(b), Health and Safety Code, is
2-20     amended to read as follows:
2-21           (b)  Except as provided by Subsection (f) and Section
2-22     242.0665(c), the penalty may not exceed $10,000 a day for each
2-23     violation.  The penalty is subject to enhancement of the minimum
2-24     amount of the penalty under Section 242.0661, if applicable.
2-25           SECTION 4.  Section 242.0665(b), Health and Safety Code, is
2-26     amended to read as follows:
2-27           (b)  Subsection (a)  does not apply:
 3-1                 (1)  to a violation that the department determines:
 3-2                       (A)  results in serious harm to or death of a
 3-3     resident;
 3-4                       (B)  constitutes a serious threat to the health
 3-5     or safety of a resident; or
 3-6                       (C)  substantially limits the institution's
 3-7     capacity to provide care;
 3-8                 (2)  to a violation described by Sections
 3-9     242.066(a)(2)-(6);
3-10                 (3)  to a violation subject to enhancement of the
3-11     minimum amount of the penalty under Section 242.0661;
3-12                 (4)  to a violation of a rule adopted under Section
3-13     242.1225 or of Section 242.133 or 242.1335; or
3-14                 (5) [(4)]  to a violation of a right of a resident
3-15     adopted under Subchapter L.
3-16           SECTION 5.  (a)  This Act takes effect September 1, 1999.
3-17           (b)  This Act applies only to a civil or administrative
3-18     penalty assessed for conduct that occurs on or after the effective
3-19     date of this Act. A civil or administrative penalty assessed for
3-20     conduct that occurred before the effective date of this Act is
3-21     governed by the law as it existed immediately before the effective
3-22     date of this Act, and that law is continued in effect for that
3-23     purpose.
3-24           (c)  A violation described by Sections 242.0661(a)(1)-(5),
3-25     Health and Safety Code, as added by this Act, may not be the basis
3-26     for enhancing the minimum amount of a civil or administrative
3-27     penalty under Section 242.0661, Health and Safety Code, as added by
 4-1     this Act, if the violation occurred before the effective date of
 4-2     this Act.
 4-3           SECTION 6.  The importance of this legislation and the
 4-4     crowded condition of the calendars in both houses create an
 4-5     emergency and an imperative public necessity that the
 4-6     constitutional rule requiring bills to be read on three several
 4-7     days in each house be suspended, and this rule is hereby suspended.