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