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 as required to perform the 1-13 duties of a trustee; and 1-14 (2) available on call to appropriate staff at the 1-15 home, the department, and the court as necessary during the time 1-16 the trustee is not present at the home. 1-17 (b) A trustee shall report to the court in the event that 1-18 the trustee is unable to satisfy the requirements of Subsection 1-19 (a)(1) or (2). 1-20 (c) On the motion of any party or on the court's own motion, 1-21 the court may replace a trustee who is unable to satisfy the 1-22 requirements of Subsection (a)(1) or (2). 1-23 (d) A trustee's charges must separately identify personal 1-24 hours worked for which compensation is claimed. A trustee's claim 2-1 for personal compensation may include only compensation for 2-2 activities related to the trusteeship and performed in or on behalf 2-3 of the home. 2-4 Sec. 242.0946. NEPOTISM PROHIBITION. A person serving as a 2-5 trustee under this subchapter may not employ or otherwise appoint 2-6 an individual to work with the trustee in the home who is related 2-7 to the trustee within the third degree of consanguinity or 2-8 affinity, as determined under Chapter 573, Government Code. 2-9 SECTION 2. Subsection (a), Section 242.095, Health and 2-10 Safety Code, is amended to read as follows: 2-11 (a) A trustee appointed under this subchapter is entitled to 2-12 a reasonable fee as determined by the court. In determining the 2-13 trustee's personal compensation for nursing facility administrator 2-14 activities, the court shall consider reasonable a rate that is 2-15 equal to 150 percent of the maximum allowable rate for an 2-16 owner-administrator under the state's Medicaid reimbursement rules. 2-17 The court shall determine the reasonableness of the trustee's 2-18 personal compensation for other duties. On the motion of any 2-19 party, the court shall review the reasonableness of the trustee's 2-20 fees. The court shall reduce the amount if the court determines 2-21 that the fees are not reasonable. 2-22 SECTION 3. Subchapter D, Chapter 242, Health and Safety 2-23 Code, is amended by adding Section 242.102 to read as follows: 2-24 Sec. 242.102. INELIGIBILITY FOR LICENSE. (a) A license 2-25 holder or controlling person who operates a home for which a 2-26 trustee is appointed under this subchapter and with respect to 3-1 which emergency assistance funds, other than funds used to pay the 3-2 expenses of the trustee, are used under this subchapter is subject 3-3 to exclusion from eligibility for: 3-4 (1) issuance of an original license for a home for 3-5 which the person has not previously held a license; or 3-6 (2) renewal of the license for the home for which the 3-7 trustee is appointed. 3-8 (b) Exclusion under this section is governed by Section 3-9 242.0615. 3-10 SECTION 4. Subchapter D, Chapter 12, Penal Code, is amended 3-11 by adding Section 12.48 to read as follows: 3-12 Sec. 12.48. CERTAIN OFFENSES RESULTING IN LOSS TO NURSING 3-13 AND CONVALESCENT HOMES. If it is shown on the trial of an offense 3-14 under Chapter 31 or 32 that, as a result of a loss incurred because 3-15 of the conduct charged, a trustee was appointed and emergency 3-16 assistance funds, other than funds used to pay the expenses of the 3-17 trustee, were used for a nursing or convalescent home under 3-18 Subchapter D, Chapter 242, Health and Safety Code, the punishment 3-19 for the offense is increased to the punishment prescribed for the 3-20 next higher category of offense except that a felony of the first 3-21 degree is punished as a felony of the first degree. 3-22 SECTION 5. This Act takes effect September 1, 1999. 3-23 SECTION 6. (a) The change in law made by this Act applies 3-24 only to the punishment for an offense committed on or after the 3-25 effective date of this Act. For purposes of this section, an 3-26 offense is committed before the effective date of this Act if any 4-1 element of the offense occurs before the effective date. 4-2 (b) An offense committed before the effective date of this 4-3 Act is covered by the law in effect when the offense was committed, 4-4 and the former law is continued in effect for this purpose. 4-5 SECTION 7. The importance of this legislation and the 4-6 crowded condition of the calendars in both houses create an 4-7 emergency and an imperative public necessity that the 4-8 constitutional rule requiring bills to be read on three several 4-9 days in each house be suspended, and this rule is hereby suspended. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1197 passed the Senate on March 31, 1999, by the following vote: Yeas 29, Nays 0; and that the Senate concurred in House amendment on May 25, 1999, by a viva-voce vote. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 1197 passed the House, with amendment, on May 22, 1999, by a non-record vote. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor