By:  Moncrief                                         S.B. No. 1197
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the appointment of a trustee and the expenditure of
 1-2     emergency assistance funds for a nursing or convalescent home;
 1-3     providing penalties.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter D, Chapter 242, Health and Safety
 1-6     Code, is amended by adding Sections 242.0945 and 242.0946 to read
 1-7     as follows:
 1-8           Sec. 242.0945.  QUALIFICATIONS OF TRUSTEES.  (a)  A court may
 1-9     appoint a person to serve as a trustee under this subchapter only
1-10     if the proposed trustee can demonstrate to the court that the
1-11     proposed trustee will be:
1-12                 (1)  present at the home at least 40 hours each week;
1-13     and
1-14                 (2)  available on call at all other times during the
1-15     appointment.
1-16           (b)  A court shall require a trustee to report to the court
1-17     in the event that the trustee is unable to satisfy the requirements
1-18     of Subsection (a)(1) or (2).
1-19           (c)  On the motion of any party or on the court's own motion,
1-20     the court shall replace a trustee who is unable to satisfy the
1-21     requirements of Subsection (a)(1) or (2).
1-22           Sec. 242.0946.  NEPOTISM PROHIBITION.  A person serving as a
1-23     trustee under this subchapter may not employ or otherwise appoint
1-24     an individual to work with the trustee in the home who is related
 2-1     to the trustee within the third degree of consanguinity or
 2-2     affinity, as determined under Chapter 573, Government Code.
 2-3           SECTION 2.  Subsection (a), Section 242.095, Health and
 2-4     Safety Code, is amended to read as follows:
 2-5           (a)  A trustee appointed under this subchapter is entitled to
 2-6     a reasonable fee as determined by the court.  The fee may not
 2-7     exceed an hourly rate equal to 150 percent of the median hourly
 2-8     rate paid to a nursing facility administrator in this state for a
 2-9     home of a comparable size.
2-10           SECTION 3.  Subchapter D, Chapter 242, Health and Safety
2-11     Code, is amended by adding Section 242.102 to read as follows:
2-12           Sec. 242.102.  INELIGIBILITY FOR LICENSE.  (a)  A person who
2-13     owns, controls, or operates a home for which a trustee is appointed
2-14     under this subchapter and with respect to which emergency
2-15     assistance funds, other than funds used to pay the expenses of the
2-16     trustee, are used under this subchapter is subject to exclusion
2-17     from eligibility for:
2-18                 (1)  issuance of an original license for a home for
2-19     which the person has not previously held a license; or
2-20                 (2)  renewal of the license for the home for which the
2-21     trustee is appointed.
2-22           (b)  Exclusion under this section is governed by Section
2-23     242.0615.
2-24           (c)  For purposes of this section, a person "controls" a home
2-25     if the person is any person described by Sections
2-26     242.032(d)(2)-(4).
 3-1           SECTION 4.  Subchapter D, Chapter 12, Penal Code, is amended
 3-2     by adding Section 12.48 to read as follows:
 3-3           Sec. 12.48.  CERTAIN OFFENSES RESULTING IN LOSS TO NURSING
 3-4     AND CONVALESCENT HOMES.  If it is shown on the trial of an offense
 3-5     under Chapter 31 or 32 that, as a result of a loss incurred because
 3-6     of the conduct charged, a trustee was appointed or emergency
 3-7     assistance funds were used for a nursing or convalescent home under
 3-8     Subchapter D, Chapter 242, Health and Safety Code, the punishment
 3-9     for the offense is increased to the punishment prescribed for the
3-10     next higher category of offense except that a felony of the first
3-11     degree is punished as a felony of the first degree.
3-12           SECTION 5.  This Act takes effect September 1, 1999.
3-13           SECTION 6.  (a)  The change in law made by this Act applies
3-14     only to the punishment for an offense committed on or after the
3-15     effective date of this Act.  For purposes of this section, an
3-16     offense is committed before the effective date of this Act if any
3-17     element of the offense occurs before the effective date.
3-18           (b)  An offense committed before the effective date of this
3-19     Act is covered by the law in effect when the offense was committed,
3-20     and the former law is continued in effect for this purpose.
3-21           SECTION 7.  The importance of this legislation and the
3-22     crowded condition of the calendars in both houses create an
3-23     emergency and an imperative public necessity that the
3-24     constitutional rule requiring bills to be read on three several
3-25     days in each house be suspended, and this rule is hereby suspended.