By:  Moncrief                                         S.B. No. 1050
         99S0757/1                           
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the use of arbitration to resolve certain disputes
 1-2     involving nursing facilities.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 242.252, Health and Safety Code, is
 1-5     amended to read as follows:
 1-6           Sec. 242.252.  Election of Arbitration.  (a)  Except as
 1-7     provided by Subsection (d), an [An] affected institution may elect
 1-8     binding arbitration of any dispute to which this subchapter
 1-9     applies.  Arbitration under this subchapter is an alternative to a
1-10     contested case hearing or to a judicial proceeding relating to the
1-11     assessment of a civil penalty.
1-12           (b)  An affected institution may elect arbitration under this
1-13     subchapter by filing the election with the court in which the
1-14     dispute is pending, with notice sent to both the department and the
1-15     office of the attorney general, not later than the 10th day after
1-16     the date on which an answer is due or the date on which an answer
1-17     is filed, whichever is sooner,  [a notice of hearing] relating to
1-18     any dispute described by Section 242.251 is received by the
1-19     institution.
1-20           (c)  The department may elect arbitration under this
1-21     subchapter by filing the election with the court in which the
1-22     dispute is pending and by notifying the institution of the election
1-23     not later than the date that the institution may elect arbitration
1-24     under Subsection (b).
 2-1           (d)  An affected institution may not elect arbitration under
 2-2     this subchapter to resolve a dispute in which death, serious bodily
 2-3     injury, sexual abuse, physical abuse, or neglect resulting in death
 2-4     or serious bodily injury of a resident is alleged.  The department
 2-5     may elect arbitration under this subsection with the approval of
 2-6     the affected institution.  The affected institution must notify the
 2-7     department regarding approval of the election under this subsection
 2-8     no later than the 10th day after the date the department files its
 2-9     notice of election.
2-10           (e) (1)  If an election of arbitration is not permitted under
2-11     this subchapter, whether because the filing of the notice of the
2-12     election is not timely or because the filing is not permitted under
2-13     Subsection (d), the court with which the election is filed shall
2-14     dismiss the election and retain jurisdiction of the dispute.
2-15                 (2)  If an election of arbitration is not permitted
2-16     under this subchapter, whether because the filing of the notice of
2-17     election is not timely or because the filing is not permitted under
2-18     Subsection (d), the State Office of Administrative Hearings shall
2-19     not have jurisdiction over the matter and shall dismiss the
2-20     arbitration.  The court in which the suit was filed shall retain
2-21     jurisdiction over the matter.
2-22           (f)  An election to engage in arbitration under this
2-23     subchapter is irrevocable and binding on the institution and the
2-24     department.
2-25           SECTION 2.  The changes in law made by this Act apply only to
2-26     a cause of action that accrues on or after the effective date of
 3-1     this Act.  A cause of action that accrues before the effective date
 3-2     of this Act is governed by the law in effect on the date the cause
 3-3     of action accrues, and that law is continued in effect for that
 3-4     purpose.
 3-5           SECTION 3.  This Act takes effect September 1, 1999.
 3-6           SECTION 4.  The importance of this legislation and the
 3-7     crowded condition of the calendars in both houses create an
 3-8     emergency and an imperative public necessity that the
 3-9     constitutional rule requiring bills to be read on three several
3-10     days in each house be suspended, and this rule is hereby suspended.