1-1 By: Zaffirini, Ellis S.B. No. 18
1-2 (In the Senate - Filed November 9, 1998; January 26, 1999,
1-3 read first time and referred to Committee on Health Services;
1-4 February 1, 1999, rereferred to Committee on Human Services;
1-5 February 15, 1999, reported adversely, with favorable Committee
1-6 Substitute by the following vote: Yeas 4, Nays 0;
1-7 February 15, 1999, sent to printer.)
1-8 COMMITTEE SUBSTITUTE FOR S.B. No. 18 By: Zaffirini
1-9 A BILL TO BE ENTITLED
1-10 AN ACT
1-11 relating to the representation of the state by the attorney general
1-12 in certain cases involving nursing facilities.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Section 242.065, Health and Safety Code, is
1-15 amended by relettering existing Subsections (f), (g), and (h) as
1-16 Subsections (g), (h), and (i) and adding a new Subsection (f) to
1-17 read as follows:
1-18 (f) On request by the department, the attorney general may
1-19 institute an action in a district court to collect a civil penalty
1-20 under this section.
1-21 (g) A payment made to satisfy an obligation under this
1-22 section is not an allowable cost for reimbursement under the state
1-23 Medicaid program.
1-24 (h) [(g)] A civil penalty awarded under this section
1-25 constitutes a fine, penalty, or forfeiture payable to and for the
1-26 benefit of a government unit and is not compensation for actual
1-27 pecuniary loss.
1-28 (i) [(h)] In this section, "affiliate" means:
1-29 (1) with respect to a partnership other than a limited
1-30 partnership, each partner of the partnership;
1-31 (2) with respect to a corporation:
1-32 (A) an officer;
1-33 (B) a director;
1-34 (C) a stockholder who owns, holds, or has the
1-35 power to vote at least 10 percent of any class of securities issued
1-36 by the corporation, regardless of whether the power is of record or
1-37 beneficial; and
1-38 (D) a controlling individual;
1-39 (3) with respect to an individual:
1-40 (A) each partnership and each partner in the
1-41 partnership in which the individual or any other affiliate of the
1-42 individual is a partner; and
1-43 (B) each corporation or other business entity in
1-44 which the individual or another affiliate of the individual is:
1-45 (i) an officer;
1-46 (ii) a director;
1-47 (iii) a stockholder who owns, holds, or
1-48 has the power to vote at least 10 percent of any class of
1-49 securities issued by the corporation, regardless of whether the
1-50 power is of record or beneficial; and
1-51 (iv) a controlling individual;
1-52 (4) with respect to a limited partnership:
1-53 (A) a general partner; and
1-54 (B) a limited partner who is a controlling
1-55 individual;
1-56 (5) with respect to a limited liability company:
1-57 (A) an owner who is a manager as described by
1-58 the Texas Limited Liability Company Act (Article 1528n, Vernon's
1-59 Texas Civil Statutes); and
1-60 (B) each owner who is a controlling individual;
1-61 and
1-62 (6) with respect to any other business entity, a
1-63 controlling individual.
1-64 SECTION 2. Section 242.253, Health and Safety Code, is
2-1 amended by adding Subsection (e) to read as follows:
2-2 (e) On request by the department, the attorney general may
2-3 represent the department in the arbitration.
2-4 SECTION 3. The importance of this legislation and the
2-5 crowded condition of the calendars in both houses create an
2-6 emergency and an imperative public necessity that the
2-7 constitutional rule requiring bills to be read on three several
2-8 days in each house be suspended, and this rule is hereby suspended,
2-9 and that this Act take effect and be in force from and after its
2-10 passage, and it is so enacted.
2-11 * * * * *