76R14573 SMJ-D                           
         By Coleman                                            H.B. No. 3302
         Substitute the following for H.B. No. 3302:
         By Hilderbran                                     C.S.H.B. No. 3302
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain private facilities that provide behavioral or
 1-3     mental health care services; imposing civil, criminal, and
 1-4     administrative penalties.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subtitle B, Title 4, Health and Safety Code, is
 1-7     amended by adding Chapter 253 to read as follows:
 1-8                CHAPTER 253.  BEHAVIORAL HEALTH CARE CENTERS
 1-9                      SUBCHAPTER A.  GENERAL PROVISIONS
1-10           Sec. 253.001.  DEFINITIONS.  In this chapter:
1-11                 (1)  "Board" means the Texas Board of Health.
1-12                 (2)  "Center" means a private behavioral or mental
1-13     health care center that provides partial hospitalization services.
1-14                 (3)  "Department" means the Texas Department of Health.
1-15                 (4)  "Partial hospitalization services" means distinct
1-16     and organized outpatient psychiatric treatment that is:
1-17                       (A)  comprehensive, intensive, individualized,
1-18     and multidisciplinary;
1-19                       (B)  administered daily for less than 24 hours;
1-20                       (C)  not available in a regular outpatient
1-21     setting; and
1-22                       (D)  provided to clients with profound or
1-23     disabling mental health conditions who would otherwise require
1-24     inpatient care.
 2-1           Sec. 253.002.  APPLICABILITY.  This chapter does not apply
 2-2     to:
 2-3                 (1)  a community center established under Subchapter A,
 2-4     Chapter 534;
 2-5                 (2)  a state mental health facility or other program
 2-6     operated by the Texas Department of Mental Health and Mental
 2-7     Retardation or a federal agency;
 2-8                 (3)  a private mental health facility licensed under
 2-9     Chapter 577 or a hospital licensed under Chapter 241; or
2-10                 (4)  an individual provider of behavioral or mental
2-11     health care services, including a mental health professional as
2-12     defined by Section 164.003.
2-13           Sec. 253.003.  APPLICABILITY OF OTHER LAW.  Subchapter A,
2-14     Chapter 534, does not apply to a center licensed under this
2-15     chapter.
2-16           Sec. 253.004.  RULES.  (a)  The board shall adopt rules
2-17     necessary to implement this chapter, including requirements for the
2-18     issuance, renewal, denial, suspension, and revocation of a license
2-19     to operate a center.
2-20           (b)  The board may adopt rules for the issuance of a
2-21     temporary or probationary license to operate a center.
2-22              (Sections 253.005-253.010 reserved for expansion
2-23               SUBCHAPTER B.  LICENSING, FEES, AND INSPECTION
2-24           Sec. 253.011.  LICENSE REQUIRED.  A person may not operate a
2-25     center unless the person holds a license issued under this chapter.
2-26           Sec. 253.012.  LICENSE APPLICATION.  (a)  An applicant for a
2-27     license under this chapter must submit an application to the
 3-1     department in accordance with board rules.
 3-2           (b)  Each application must be accompanied by a nonrefundable
 3-3     license fee in an amount set by the board.
 3-4           Sec. 253.013.  ISSUANCE OF LICENSE.  (a)  The department
 3-5     shall issue a license to an applicant if it finds that the
 3-6     applicant and the center meet the requirements of this chapter and
 3-7     rules adopted under this chapter.
 3-8           (b)  A license issued under this chapter may be transferred
 3-9     or assigned only if the department approves the transfer or
3-10     assignment in writing.
3-11           Sec. 253.014.  LICENSE POSTING.  A person who holds a license
3-12     issued under this chapter shall post the license in a conspicuous
3-13     place at the center for which it is issued.
3-14           Sec. 253.015.  LICENSE FEES.  The board shall impose fees for
3-15     licensure under this chapter in amounts reasonable and necessary to
3-16     defray the cost of administering this chapter.
3-17           Sec. 253.016.  INSPECTIONS.  The department may inspect a
3-18     center and its records at reasonable times as necessary to ensure
3-19     compliance with this chapter and rules adopted under this chapter.
3-20           Sec. 253.017.  GENERAL STANDARDS.  (a)  The board by rule
3-21     shall adopt minimum standards applicable to a center regarding:
3-22                 (1)  the number, qualifications, and duties of the
3-23     professional staff, including physicians and nurses, and other
3-24     personnel;
3-25                 (2)  the organizational structure, including lines of
3-26     authority and delegation of responsibility;
3-27                 (3)  the rights of clients;
 4-1                 (4)  a quality assurance program for the care of
 4-2     clients;
 4-3                 (5)  client accommodations, fire prevention, and safety
 4-4     and sanitary conditions of the center and its surroundings;
 4-5                 (6)  the reporting and investigation of injuries,
 4-6     incidents, and accidents;
 4-7                 (7)  the maintenance, disposal, and destruction of
 4-8     records of care and services provided at the center; and
 4-9                 (8)  any other aspect of center facilities, staff, or
4-10     services necessary to protect the center's clients or the public.
4-11           (b)  This chapter does not authorize the board to:
4-12                 (1)  establish the qualifications of a licensed
4-13     practitioner; or
4-14                 (2)  permit a person to provide behavioral or mental
4-15     health services if the person is not authorized to provide those
4-16     services in this state.
4-17           Sec. 253.018.  MENTAL HEALTH CARE STANDARDS.  (a)  The care
4-18     and treatment of a client receiving mental health services,
4-19     including partial hospitalization, in a center licensed under this
4-20     chapter are governed by standards adopted by the Texas Department
4-21     of Mental Health and Mental Retardation to the same extent as if
4-22     the standards adopted by that department were rules adopted by the
4-23     board under this chapter.
4-24           (b)  The department shall enforce the standards provided by
4-25     Subsection (a).  A violation of a standard is subject to the same
4-26     consequence as a violation of a rule adopted by the board under
4-27     this chapter.  The department is not required to enforce a standard
 5-1     if the enforcement violates a federal law, rule, or regulation.
 5-2           Sec. 253.019.  NOTICE IN ADVERTISING AND CONTRACTS FOR
 5-3     SERVICES.  (a)  This section applies only to a center licensed
 5-4     under this chapter that does not have a contract with:
 5-5                 (1)  the Texas Department of Mental Health and Mental
 5-6     Retardation as a service provider;
 5-7                 (2)  a local mental health authority designated under
 5-8     Section 533.035; or
 5-9                 (3)  a community center established under Chapter 534.
5-10           (b)  A center shall include in its advertising or written
5-11     contracts for services a notice containing the following words:
5-12     "This facility is a private behavioral health care center licensed
5-13     by the state.  This facility is not affiliated with the state
5-14     mental health and mental retardation system."
5-15              (Sections 253.020-253.030 reserved for expansion
5-16                         SUBCHAPTER C.  ENFORCEMENT
5-17           Sec. 253.031.  DENIAL, SUSPENSION, OR REVOCATION OF LICENSE.
5-18     (a)  The department may deny, suspend, or revoke a license for a
5-19     violation of this chapter or a rule adopted under this chapter.
5-20           (b)  Except as provided by Section 253.032, the denial,
5-21     suspension, or revocation of a license by the department and an
5-22     appeal from that action are governed by the procedures for a
5-23     contested case hearing under Chapter 2001, Government Code.
5-24           Sec. 253.032.  EMERGENCY SUSPENSION ORDER.  (a)  The
5-25     department, without a hearing, may issue an emergency order to
5-26     suspend a license issued under this chapter if the department has
5-27     reasonable cause to believe that the conduct of a license holder
 6-1     creates an immediate danger to the health and safety of a client or
 6-2     the public.
 6-3           (b)  An emergency suspension is effective immediately on
 6-4     notice to the license holder.
 6-5           (c)  On written request of the holder of a license suspended
 6-6     under this section, the department shall conduct a hearing to
 6-7     determine whether there is cause to continue the suspension.  The
 6-8     hearing must be held not earlier than the 10th day and not later
 6-9     than the 30th day after the date the request is received.
6-10           Sec. 253.033.  INJUNCTION.  (a)  The department may petition
6-11     a district court for a temporary restraining order to restrain a
6-12     continuing violation of the standards or licensing requirements
6-13     provided under this chapter if the department finds that the
6-14     violation creates an immediate threat to the health and safety of
6-15     the public or of a client of a center.
6-16           (b)  A district court, on petition of the department and on a
6-17     finding by the court that a person is violating the standards or
6-18     licensing requirements provided under this chapter, may by
6-19     injunction:
6-20                 (1)  prohibit a person from continuing a violation of
6-21     the standards or licensing requirements provided under this
6-22     chapter;
6-23                 (2)  restrain or prevent the establishment or operation
6-24     of a center without a license issued under this chapter; or
6-25                 (3)  grant any other injunctive relief warranted by the
6-26     facts.
6-27           (c)  The attorney general shall institute and conduct a suit
 7-1     authorized by this section at the request of the department.
 7-2           (d)  Venue for a suit brought under this section is in the
 7-3     county in which the center is located or in Travis County.
 7-4           Sec. 253.034.  CIVIL PENALTY.  (a)  A person who violates
 7-5     this chapter or a rule adopted under this chapter is liable for a
 7-6     civil penalty of not less than $100 or more than $500 for each
 7-7     violation if the department determines the violation threatens the
 7-8     health and safety of a client or the public.
 7-9           (b)  Each day of a continuing violation constitutes a
7-10     separate ground for recovery.
7-11           (c)  The attorney general may sue to collect the penalty.
7-12           Sec. 253.035.  CRIMINAL PENALTY.  (a)  A person commits an
7-13     offense if the person operates a center without a license.
7-14           (b)  An offense under this section is a Class C misdemeanor.
7-15           (c)  Each day of a continuing violation constitutes a
7-16     separate offense.
7-17           Sec. 253.036.  ADMINISTRATIVE PENALTY.  (a)  The board may
7-18     impose an administrative penalty against a person who violates this
7-19     chapter or a rule adopted under this chapter.
7-20           (b)  The amount of the penalty may not exceed $5,000.  Each
7-21     day a violation continues or occurs is a separate violation for the
7-22     purpose of imposing a penalty.
7-23           (c)  Subject to the limitation provided by Subsection (b),
7-24     the board shall impose a penalty in accordance with the procedures
7-25     provided by Section 241.060 as if the person had violated Chapter
7-26     241 or a rule adopted under that chapter.
7-27              (Sections 253.037-253.050 reserved for expansion
 8-1                           SUBCHAPTER D.  SERVICES
 8-2           Sec. 253.051.  PARTIAL HOSPITALIZATION SERVICES.  (a)  A
 8-3     center licensed under this chapter may provide partial
 8-4     hospitalization services to a client who exhibits a severe or
 8-5     disabling condition related to:
 8-6                 (1)  an acute psychiatric or psychological condition;
 8-7     or
 8-8                 (2)  an acute exacerbation of a severe and persistent
 8-9     mental disorder.
8-10           (b)  The partial hospitalization services provided must be:
8-11                 (1)  reasonable and necessary for the diagnosis or
8-12     active treatment of the client's condition; and
8-13                 (2)  reasonably expected to improve or maintain the
8-14     client's condition and functional level to prevent relapse or
8-15     hospitalization.
8-16           (c)  The partial hospitalization services may include:
8-17                 (1)  diagnostic services;
8-18                 (2)  individual, group, occupational, or family
8-19     therapy;
8-20                 (3)  activity therapy that is not primarily
8-21     recreational or diversionary; or
8-22                 (4)  education or training.
8-23           (d)  A client may be admitted for partial hospitalization
8-24     services only by the order of a physician trained in the diagnosis
8-25     and treatment of psychiatric illness following the physician's
8-26     evaluation of the client in person.  Partial hospitalization
8-27     services must be furnished under the supervision of a physician.
 9-1           SECTION 2.  Section 250.001(3), Health and Safety Code, is
 9-2     amended to read as follows:
 9-3                 (3)  "Facility" means:
 9-4                       (A)  a nursing home, custodial care home, or
 9-5     other institution licensed by the Texas Department of Human
 9-6     Services under Chapter 242;
 9-7                       (B)  a personal care facility licensed by the
 9-8     Texas Department of Human Services under Chapter 247;
 9-9                       (C)  a home health agency licensed by the Texas
9-10     Department of Health under Chapter 142;
9-11                       (D)  an adult day care facility or adult day
9-12     health care facility licensed by the Texas Department of Human
9-13     Services under Chapter 103, Human Resources Code;
9-14                       (E)  a facility for persons with mental
9-15     retardation licensed or certified by the Texas Department of Human
9-16     Services;
9-17                       (F)  an unlicensed attendant care agency that
9-18     contracts with the Texas Department of Human Services;
9-19                       (G)  an intermediate care facility for persons
9-20     with mental retardation that is certified by the Texas Department
9-21     of Human Services to participate in the Medicaid program under
9-22     Title XIX of the Social Security Act (42 U.S.C. Section 1396 et
9-23     seq.);
9-24                       (H)  an adult foster care provider that contracts
9-25     with the Texas Department of Human Services; [or]
9-26                       (I)  a facility that provides mental health
9-27     services and that is operated by or contracts with the Texas
 10-1    Department of Mental Health and Mental Retardation; or
 10-2                      (J)  a center that provides behavioral or mental
 10-3    health care services and is licensed under Chapter 253 by the Texas
 10-4    Department of Health.
 10-5          SECTION 3.  (a)  A private behavioral or mental health care
 10-6    center is not required to be licensed under Chapter 253, Health and
 10-7    Safety Code, as added by this Act, before January 1, 2000.
 10-8          (b)  The Texas Board of Health shall adopt rules as necessary
 10-9    to implement Chapter 253, Health and Safety Code, as added by this
10-10    Act, so that the Texas Department of Health may issue licenses
10-11    under and enforce that chapter on or before January 1, 2000.
10-12          SECTION 4.  This Act takes effect September 1, 1999.
10-13          SECTION 5.  The importance of this legislation and the
10-14    crowded condition of the calendars in both houses create an
10-15    emergency and an imperative public necessity that the
10-16    constitutional rule requiring bills to be read on three several
10-17    days in each house be suspended, and this rule is hereby suspended.