By: Moncrief S.B. No. 1221 99S0735/1 A BILL TO BE ENTITLED AN ACT 1-1 relating to dispute resolution procedures involving certain nursing 1-2 facilities. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Section 242.061, Health and Safety Code, is 1-5 amended to read as follows: 1-6 Sec. 242.061. Denial, Suspension, or Revocation of License. 1-7 (a) The department, after providing notice and opportunity for a 1-8 hearing to the applicant or license holder, may deny, suspend, or 1-9 revoke a license if the department finds that the applicant, the 1-10 license holder, or any other person described by Section 242.032(d) 1-11 has: 1-12 (1) violated this chapter or a rule, standard, or 1-13 order adopted or license issued under this chapter in either a 1-14 repeated or substantial manner; or 1-15 (2) committed any act described by Sections 1-16 242.066(a)(2)-(6). 1-17 (b) The status of a person as an applicant for a license or 1-18 a license holder is preserved until final disposition of the 1-19 contested matter, except as the court having jurisdiction of a 1-20 judicial review of the matter may order in the public interest for 1-21 the welfare and safety of the residents. A court having 1-22 jurisdiction of a judicial review of the matter may not order 1-23 arbitration, whether upon motion of any party or upon the court's 1-24 own motion, as a means to resolve any dispute involving an alleged 2-1 violation under this section. 2-2 (c) The department may deny, suspend, or revoke the license 2-3 of an institution if any person described by Section 242.032(d) has 2-4 been excluded from holding a license under Section 242.0615. 2-5 SECTION 2. Section 242.062, Health and Safety Code, is 2-6 amended to read as follows: 2-7 Sec. 242.062. Emergency Suspension or Closing Order. 2-8 (a) The department shall suspend an institution's license or order 2-9 an immediate closing of part of the institution if: 2-10 (1) the department finds the institution is operating 2-11 in violation of the standards prescribed by this chapter; and 2-12 (2) the violation creates an immediate threat to the 2-13 health and safety of a resident. 2-14 (b) The board by rule shall provide for the placement of 2-15 residents during the institution's suspension or closing to ensure 2-16 their health and safety. 2-17 (c) An order suspending a license or closing a part of an 2-18 institution under this section is immediately effective on the date 2-19 on which the license holder receives written notice or a later date 2-20 specified in the order. 2-21 (d) An order suspending a license or ordering an immediate 2-22 closing of a part of an institution is valid for 10 days after the 2-23 effective date of the order. 2-24 (e) A court having jurisdiction of a judicial review of an 2-25 order suspending a license or ordering an immediate closing of a 2-26 part of an institution may not order arbitration, whether upon 3-1 motion of any party or upon the court's own motions: 3-2 (1) as a means to resolve any dispute involving an 3-3 alleged violation under this section; or 3-4 (2) in an instance in which an action under Section 3-5 242.094 has already commenced involving the assessment of a civil 3-6 penalty to be determined by a court in the county in which the 3-7 action under Section 242.094 was filed. 3-8 SECTION 3. Section 242.072, Health and Safety Code, is 3-9 amended to read as follows: 3-10 Sec. 242.072. Other Remedies. (a) If the commissioner 3-11 finds that an institution has committed an act for which a civil 3-12 penalty may be imposed under Section 242.065, the commissioner may, 3-13 as appropriate under the circumstances, order the institution to 3-14 immediately suspend admissions. 3-15 (b) A suspension of admissions ordered under Subsection (a) 3-16 is effective on the date a representative of the institution 3-17 receives notice of the order and of the manner in which the order 3-18 may be appealed. The department must provide an opportunity for a 3-19 hearing with respect to an appeal of the order not later than the 3-20 14th day after the date the suspension becomes effective. 3-21 (c) During the period that an institution is ordered to 3-22 suspend admissions, the institution shall post a notice of the 3-23 suspension on all doors providing ingress to and egress from the 3-24 institution. The notice shall be posted in the form required by 3-25 the department. 3-26 (d) A person commits an offense if the person knowingly: 4-1 (1) violates Subsection (c); or 4-2 (2) removes a notice posted under Subsection (c) 4-3 before the facility is allowed to admit residents. 4-4 (e) An offense under Subsection (d) is a Class C 4-5 misdemeanor. 4-6 (f) A court having jurisdiction of a judicial review of an 4-7 ordering suspending admissions may not order arbitration, whether 4-8 upon motion of any party or upon the court's own motion, as a means 4-9 to resolve any dispute involving an alleged violation under this 4-10 section. 4-11 SECTION 4. The changes in law made by this Act apply only to 4-12 a cause of action that accrues on or after the effective date of 4-13 this Act. A cause of action that accrues before the effective date 4-14 of this Act is governed by the law in effect on the date the cause 4-15 of action accrues, and that law is continued in effect for that 4-16 purpose. 4-17 SECTION 5. This Act takes effect September 1, 1999. 4-18 SECTION 6. The importance of this legislation and the 4-19 crowded condition of the calendars in both houses create an 4-20 emergency and an imperative public necessity that the 4-21 constitutional rule requiring bills to be read on three several 4-22 days in each house be suspended, and this rule is hereby suspended.