By Naishtat                                           H.B. No. 1237
         76R2770 CMR-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to suits for retaliation against nonemployees and
 1-3     employees of nursing homes.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 242.133, Health and Safety Code, is
 1-6     amended to read as follows:
 1-7           Sec. 242.133.  [SUIT FOR] RETALIATION AGAINST EMPLOYEES
 1-8     PROHIBITED.  (a)  An employee [A person] has a cause of action
 1-9     against an  institution, or the owner or another employee of the
1-10     institution, that suspends or terminates the employment of the
1-11     person or otherwise disciplines or discriminates or retaliates
1-12     against the employee [person] for reporting to the employee's
1-13     supervisor, an administrator of the institution, a state regulatory
1-14     agency, or a law enforcement agency a violation of law, including a
1-15     violation of this chapter or a rule adopted under this chapter
1-16     [making a report or complaint under this chapter to the department
1-17     or a law  enforcement agency, for reporting the abuse or neglect or
1-18     other complaint to the person's supervisors], or for initiating or
1-19     cooperating in any investigation or proceeding of a governmental
1-20     entity relating to care, services, or conditions at the
1-21     institution.
1-22           (b)  The petitioner may recover:
1-23                 (1)  the greater of $1,000 or actual damages, including
1-24     damages for mental anguish even if an injury other than mental
 2-1     anguish is not shown and damages for lost wages if the petitioner's
 2-2     employment was suspended or terminated;
 2-3                 (2)  exemplary damages;
 2-4                 (3)  court costs; and
 2-5                 (4)  reasonable attorney's fees.
 2-6           (c)  In addition to the amounts that may be recovered under
 2-7     Subsection (b), a person whose employment is suspended or
 2-8     terminated is entitled to, if applicable:
 2-9                 (1)  reinstatement in the person's former position; and
2-10                 (2)  reinstatement of lost fringe benefits or seniority
2-11     rights.
2-12           (d)  The petitioner, not later than the 180th [90th] day
2-13     after the date on which the person's employment is suspended or
2-14     terminated, must bring suit or notify the Texas Workforce
2-15     [Employment] Commission of the petitioner's intent to sue under
2-16     this section.  A petitioner who notifies the Texas Workforce
2-17     [Employment] Commission under this subsection must bring suit not
2-18     later than the 180th [90th] day after the date of the delivery of
2-19     the notice to the commission.  On receipt of the notice, the
2-20     commission shall notify the institution of the petitioner's intent
2-21     to bring suit under this section.
2-22           (e)  The petitioner has the burden of proof, except that
2-23     there is a rebuttable presumption that the person's employment was
2-24     suspended or terminated for reporting abuse or neglect if the
2-25     person is suspended or terminated within 60 days after the date on
2-26     which the person reported in good faith.
2-27           (f)  A suit under this section may be brought in the district
 3-1     court of the county in which:
 3-2                 (1)  the plaintiff resides;
 3-3                 (2)  the plaintiff was employed by the defendant; or
 3-4                 (3)  the defendant conducts business.
 3-5           (g)  Each institution shall require each employee of the
 3-6     institution, as a condition of employment with the institution, to
 3-7     sign a statement that the employee understands the employee's
 3-8     rights under this section.  The statement must be part of the
 3-9     statement required under Section 242.122.  If an institution does
3-10     not require an employee to read and sign the statement, the periods
3-11     under Subsection (d) do not apply, and the petitioner must bring
3-12     suit not later than the second anniversary of the date on which the
3-13     person's employment is suspended or terminated.
3-14           SECTION 2.  Section 242.1335, Health and Safety Code, is
3-15     amended to read as follows:
3-16           Sec. 242.1335.  [SUIT FOR] RETALIATION AGAINST NONEMPLOYEES
3-17     AND RESIDENTS [RESIDENT].  (a)  In this section, "nonemployee"
3-18     means any person who is not an employee of an institution,
3-19     including a contract laborer or volunteer.
3-20           (b)  An institution may not retaliate or discriminate against
3-21     a nonemployee or a resident because [if] the nonemployee, the
3-22     resident, the resident's guardian, or any other person:
3-23                 (1)  makes a complaint or files a grievance concerning
3-24     the facility;
3-25                 (2)  [or] reports a violation of law, including a
3-26     violation of this chapter or a rule adopted under this chapter; or
3-27                 (3)  initiates or cooperates in an investigation or
 4-1     proceeding of a governmental entity relating to care, services, or
 4-2     conditions at the institution [in accordance with this chapter].
 4-3           (c) [(b)]  A nonemployee or a resident who is retaliated or
 4-4     discriminated against in violation of Subsection (b) [(a)] is
 4-5     entitled to sue for:
 4-6                 (1)  injunctive relief;
 4-7                 (2)  the greater of $1,000 or actual damages,
 4-8     including:
 4-9                       (A)  damages for mental anguish even if an injury
4-10     other than mental anguish is not shown; and
4-11                       (B)  damages for lost wages if the nonemployee's
4-12     employment was suspended or terminated;
4-13                 (3)  exemplary damages;
4-14                 (4)  court costs; and
4-15                 (5)  reasonable attorney's fees.
4-16           (d) [(c)]  A nonemployee or resident who seeks relief under
4-17     this section must report the alleged violation not later than the
4-18     180th day after the date on which the alleged violation of this
4-19     section occurred or was discovered by the nonemployee or resident
4-20     through reasonable diligence.
4-21           (e) [(d)]  A suit under this section may be brought in the
4-22     district court of the county in which the institution is located or
4-23     in a district court of Travis County.
4-24           SECTION 3.  Section 242.042, Health and Safety Code, is
4-25     amended by amending Subsection (a) and adding Subsection (d) to
4-26     read as follows:
4-27           (a)  Each institution shall prominently and conspicuously
 5-1     post for display in a public area of the institution that is
 5-2     readily available to residents, employees, and visitors:
 5-3                 (1)  the license issued under this chapter;
 5-4                 (2)  a sign prescribed by the department that specifies
 5-5     complaint procedures established under this chapter or rules
 5-6     adopted under this chapter and that specifies how complaints may be
 5-7     registered with the department;
 5-8                 (3)  a notice in a form prescribed by the department
 5-9     stating that licensing inspection reports and other related reports
5-10     which show deficiencies cited by the department are available at
5-11     the institution for public inspection and providing the
5-12     department's toll-free telephone number that may be used to obtain
5-13     information concerning the institution;
5-14                 (4)  a concise summary of the most recent inspection
5-15     report relating to the institution;
5-16                 (5)  notice that the department can provide summary
5-17     reports relating to the quality of care, recent investigations,
5-18     litigation, and other aspects of the operation of the institution;
5-19                 (6)  notice that the Texas Board of Nursing Facility
5-20     Administrators can provide information about the nursing facility
5-21     administrator;
5-22                 (7)  any notice or written statement required to be
5-23     posted under Section 242.072(c); [and]
5-24                 (8)  notice that informational materials relating to
5-25     the compliance history of the institution are available for
5-26     inspection at a location in the institution specified by the sign;
5-27     and
 6-1                 (9)  notice that employees, other staff, and residents
 6-2     are protected from discrimination or retaliation as provided by
 6-3     Sections 242.133 and 242.1335.
 6-4           (d)  The notice required by Subsection (a)(9) must be posted
 6-5     in English and a second language as required by department rule.
 6-6           SECTION 4.  Sections 1 and 2 of this Act apply only to a
 6-7     cause of action that accrues on or after the effective date of this
 6-8     Act.  A cause of action that accrues before the effective date of
 6-9     this Act is governed by the law as it existed immediately before
6-10     the effective date of this Act, and that law is continued in effect
6-11     for this purpose.
6-12           SECTION 5.  This Act takes effect September 1, 1999.
6-13           SECTION 6.  The importance of this legislation and the
6-14     crowded condition of the calendars in both houses create an
6-15     emergency and an imperative public necessity that the
6-16     constitutional rule requiring bills to be read on three several
6-17     days in each house be suspended, and this rule is hereby suspended.