AN ACT
1-1 relating to the representation of the state by the attorney general
1-2 in certain cases involving nursing facilities.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 242.065, Health and Safety Code, is
1-5 amended by relettering existing Subsections (f), (g), and (h) as
1-6 Subsections (g), (h), and (i) and adding a new Subsection (f) to
1-7 read as follows:
1-8 (f) On request by the department, the attorney general may
1-9 institute an action in a district court to collect a civil penalty
1-10 under this section.
1-11 (g) A payment made to satisfy an obligation under this
1-12 section is not an allowable cost for reimbursement under the state
1-13 Medicaid program.
1-14 (h) [(g)] A civil penalty awarded under this section
1-15 constitutes a fine, penalty, or forfeiture payable to and for the
1-16 benefit of a government unit and is not compensation for actual
1-17 pecuniary loss.
1-18 (i) [(h)] In this section, "affiliate" means:
1-19 (1) with respect to a partnership other than a limited
1-20 partnership, each partner of the partnership;
1-21 (2) with respect to a corporation:
1-22 (A) an officer;
1-23 (B) a director;
1-24 (C) a stockholder who owns, holds, or has the
2-1 power to vote at least 10 percent of any class of securities issued
2-2 by the corporation, regardless of whether the power is of record or
2-3 beneficial; and
2-4 (D) a controlling individual;
2-5 (3) with respect to an individual:
2-6 (A) each partnership and each partner in the
2-7 partnership in which the individual or any other affiliate of the
2-8 individual is a partner; and
2-9 (B) each corporation or other business entity in
2-10 which the individual or another affiliate of the individual is:
2-11 (i) an officer;
2-12 (ii) a director;
2-13 (iii) a stockholder who owns, holds, or
2-14 has the power to vote at least 10 percent of any class of
2-15 securities issued by the corporation, regardless of whether the
2-16 power is of record or beneficial; and
2-17 (iv) a controlling individual;
2-18 (4) with respect to a limited partnership:
2-19 (A) a general partner; and
2-20 (B) a limited partner who is a controlling
2-21 individual;
2-22 (5) with respect to a limited liability company:
2-23 (A) an owner who is a manager as described by
2-24 the Texas Limited Liability Company Act (Article 1528n, Vernon's
2-25 Texas Civil Statutes); and
2-26 (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 may
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.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 18 passed the Senate on
February 22, 1999, by the following vote: Yeas 31, Nays 0.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 18 passed the House on
April 16, 1999, by the following vote: Yeas 136, Nays 0, two
present not voting.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor