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.