By Nelson                                              S.B. No. 279
         77R3394 YDB-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to sanctions imposed against certain facilities regulated
 1-3     by the Texas Department of Health.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 241.053, Health and Safety Code, is
 1-6     amended to read as follows:
 1-7           Sec. 241.053.  DENIAL OF APPLICATION, SUSPENSION, REVOCATION,
 1-8     PROBATION, OR REISSUANCE OF LICENSE. (a)  The department, after
 1-9     providing notice and an opportunity for a hearing to the applicant
1-10     or license holder, may deny, suspend, or revoke a hospital's
1-11     license if the department finds that the hospital:
1-12                 (1)  failed to comply with:
1-13                       (A)  a provision of this chapter;
1-14                       (B)  a rule adopted under this chapter;
1-15                       (C)  a special license condition;
1-16                       (D)  an order or emergency order by the
1-17     commissioner of health; or
1-18                       (E)  another enforcement procedure permitted
1-19     under this chapter;
1-20                 (2)  has a history of noncompliance with the rules
1-21     adopted under this chapter relating to patient health, safety, and
1-22     rights which reflects more than nominal noncompliance; or
1-23                 (3)  has aided, abetted, or permitted the commission of
1-24     an illegal act.
 2-1           (b)  A hospital whose license is suspended or revoked may
 2-2     apply to the department for the reissuance of a license.  The
 2-3     department may reissue the license if the department determines
 2-4     that the hospital has corrected the conditions that led to the
 2-5     suspension or revocation of the hospital's license, the initiation
 2-6     of enforcement action against the hospital, the assessment of
 2-7     administrative penalties, or the issuance of a court order
 2-8     enjoining the hospital from violations or assessing civil penalties
 2-9     against the hospital.  A hospital whose license is suspended or
2-10     revoked may not admit new patients until the license is reissued.
2-11           (c)  A hospital must apply for reissuance in the form and
2-12     manner required in the rules adopted under this chapter.
2-13           (d)  Administrative hearings required under this section
2-14     shall be conducted under the board's formal hearing rules and the
2-15     contested case provisions of Chapter 2001, Government Code.
2-16           (e)  Judicial review of a final decision by the department is
2-17     by trial de novo in the same manner as a case appealed from the
2-18     justice court to the county court.  The substantial evidence rule
2-19     does not apply.
2-20           (f)  If the department finds that a hospital is in repeated
2-21     noncompliance under Subsection (a) but that the noncompliance does
2-22     not endanger public health and safety, the department may schedule
2-23     the hospital for probation rather than suspending or revoking the
2-24     hospital's license.  The department shall provide notice to the
2-25     hospital of the probation and of the items of noncompliance not
2-26     later than the 10th day before the date the probation period
2-27     begins.  The department shall designate a period of not less than
 3-1     30 days during which the hospital will remain under probation.
 3-2     During the probation period, the hospital must correct the items
 3-3     that were in noncompliance and report the corrections to the
 3-4     department for approval.
 3-5           (g)  The department may suspend or revoke the license of a
 3-6     hospital that does not correct items that were in noncompliance or
 3-7     that does not comply with the applicable requirements within the
 3-8     applicable probation period.
 3-9           SECTION 2. Section 243.011, Health and Safety Code, is
3-10     amended to read as follows:
3-11           Sec. 243.011.  DENIAL, SUSPENSION, PROBATION, OR REVOCATION
3-12     OF LICENSE. (a)  The department may deny, suspend, or revoke a
3-13     license for a violation of this chapter or a rule adopted under
3-14     this chapter.
3-15           (b)  The denial, suspension,  or revocation of a license by
3-16     the department and the appeal from that action are governed by the
3-17     procedures for a contested case hearing under Chapter 2001,
3-18     Government Code.
3-19           (c)  If the department finds that an ambulatory surgical
3-20     center is in repeated noncompliance with this chapter or rules
3-21     adopted under this chapter but that the noncompliance does not
3-22     endanger public health and safety, the department may schedule the
3-23     center for probation rather than suspending or revoking the
3-24     center's license.  The department shall provide notice to the
3-25     center of the probation and of the items of noncompliance not later
3-26     than the 10th day before the date the probation period begins.  The
3-27     department shall designate a period of not less than 30 days during
 4-1     which the center will remain under probation.  During the probation
 4-2     period, the center must correct the items that were in
 4-3     noncompliance and report the corrections to the department for
 4-4     approval.
 4-5           (d)  The department may suspend or revoke the license of an
 4-6     ambulatory surgical center that does not correct items that were in
 4-7     noncompliance or that does not comply with this chapter or the
 4-8     rules adopted under this chapter within the applicable probation
 4-9     period.
4-10           SECTION 3. Section 244.011, Health and Safety Code, is
4-11     amended to read as follows:
4-12           Sec. 244.011.  DENIAL, SUSPENSION, PROBATION, OR REVOCATION
4-13     OF LICENSE. (a)  The department may deny, suspend, or revoke a
4-14     license for:
4-15                 (1)  a violation of this chapter or a rule adopted
4-16     under this chapter; or
4-17                 (2)  a history of continuing noncompliance with this
4-18     chapter or the rules adopted under this chapter.
4-19           (b)  The denial, suspension, or revocation of a license by
4-20     the department and the appeal from that action are governed by the
4-21     procedures for a contested case hearing under Chapter 2001,
4-22     Government Code.
4-23           (c)  If the department finds that a birthing center is in
4-24     repeated noncompliance under Subsection (a) but that the
4-25     noncompliance does not endanger public health and safety, the
4-26     department may schedule the center for probation rather than
4-27     suspending or revoking the center's license.  The department shall
 5-1     provide notice to the center of the probation and of the items of
 5-2     noncompliance not later than the 10th day before the date the
 5-3     probation period begins.  The department shall designate a period
 5-4     of not less than 30 days during which the center will remain under
 5-5     probation.  During the probation period, the center must correct
 5-6     the items that were in noncompliance and report the corrections to
 5-7     the department for approval.
 5-8           (d)  The department may suspend or revoke the license of a
 5-9     birthing center that does not correct items that were in
5-10     noncompliance or that does not comply with the applicable
5-11     requirements within the applicable probation period.
5-12           SECTION 4. Section 245.012, Health and Safety Code, is
5-13     amended to read as follows:
5-14           Sec. 245.012.  DENIAL, SUSPENSION, PROBATION, OR REVOCATION
5-15     OF LICENSE. (a)  The department may deny, suspend, or revoke a
5-16     license for a violation of this chapter or a rule adopted under
5-17     this chapter.
5-18           (b)  The denial, suspension, or revocation of a license by
5-19     the department and the appeal from that action are governed by the
5-20     procedures for a contested case hearing under Chapter 2001,
5-21     Government Code.
5-22           (c)  The department may immediately suspend or revoke a
5-23     license when the health and safety of persons are threatened.  If
5-24     the department issues an order of immediate suspension or
5-25     revocation, the department shall immediately give the chief
5-26     executive officer of the abortion facility adequate notice of the
5-27     action and the procedure governing appeal of the action.  A person
 6-1     whose license is suspended or revoked under this subsection is
 6-2     entitled to a hearing not later than the 14th day after the
 6-3     effective date of the suspension or revocation.
 6-4           (d)  If the department finds that an abortion facility is in
 6-5     repeated noncompliance with this chapter or rules adopted under
 6-6     this chapter but that the noncompliance does not endanger public
 6-7     health and safety, the department may schedule the facility for
 6-8     probation rather than suspending or revoking the facility's
 6-9     license.  The department shall provide notice to the facility of
6-10     the probation and of the items of noncompliance not later than the
6-11     10th day before the date the probation period begins.  The
6-12     department shall designate a period of not less than 30 days during
6-13     which the facility will remain under probation.  During the
6-14     probation period, the facility must correct the items that were in
6-15     noncompliance and report the corrections to the department for
6-16     approval.
6-17           (e)  The department may suspend or revoke the license of an
6-18     abortion facility that does not correct items that were in
6-19     noncompliance or that does not comply with this chapter or the
6-20     rules adopted under this chapter within the applicable probation
6-21     period.
6-22           SECTION 5. Section 248.051, Health and Safety Code, is
6-23     amended to read as follows:
6-24           Sec. 248.051.  [LICENSE] DENIAL, SUSPENSION, PROBATION, OR
6-25     REVOCATION OF LICENSE. (a)  The department may deny, revoke, or
6-26     suspend a license issued under this chapter for a violation of this
6-27     chapter or the rules adopted under this chapter.
 7-1           (b)  Except as provided by Section 248.052, the procedures by
 7-2     which the department denies, revokes, or suspends a license and by
 7-3     which those actions are appealed are governed by the department's
 7-4     rules for a contested case hearing and by Chapter 2001, Government
 7-5     Code.
 7-6           (c)  If the department finds that a special care facility is
 7-7     in repeated noncompliance with this chapter or rules adopted under
 7-8     this chapter but that the noncompliance does not endanger public
 7-9     health and safety, the department may schedule the facility for
7-10     probation rather than suspending or revoking the facility's
7-11     license.  The department shall provide notice to the facility of
7-12     the probation and of the items of noncompliance not later than the
7-13     10th day before the date the probation period begins.  The
7-14     department shall designate a period of not less than 30 days during
7-15     which the facility will remain under probation.  During the
7-16     probation period, the facility must correct the items that were in
7-17     noncompliance and report the corrections to the department for
7-18     approval.
7-19           (d)  The department may suspend or revoke the license of a
7-20     special care facility that does not correct items that were in
7-21     noncompliance or that does not comply with this chapter or the
7-22     rules adopted under this chapter within the applicable probation
7-23     period.
7-24           SECTION 6. Section 251.062, Health and Safety Code, is
7-25     amended to read as follows:
7-26           Sec. 251.062.  DENIAL, SUSPENSION, PROBATION, OR REVOCATION
7-27     OF LICENSE. (a)  The department may deny, suspend, or revoke a
 8-1     license issued under this chapter for a violation of this chapter
 8-2     or a rule adopted under this chapter.
 8-3           (b)  The denial, suspension, or revocation of a license by
 8-4     the department and the appeal from that action are governed by the
 8-5     procedures for a contested case hearing under Chapter 2001,
 8-6     Government Code.
 8-7           (c)  If the department finds that an end stage renal disease
 8-8     facility is in repeated noncompliance with this chapter or rules
 8-9     adopted under this chapter but that the noncompliance does not
8-10     endanger public health and safety, the department may schedule the
8-11     facility for probation rather than suspending  or revoking the
8-12     facility's license.  The department shall provide notice to the
8-13     facility of the probation and of the items of noncompliance not
8-14     later than the 10th day before the date the probation period
8-15     begins.  The department shall designate a period of not less than
8-16     30 days during which the facility will remain under probation.
8-17     During the probation period, the facility must correct the items
8-18     that were in noncompliance and report the corrections to the
8-19     department for approval.
8-20           (d)  The department may suspend or revoke the license of an
8-21     end stage renal disease facility that does not correct items that
8-22     were in noncompliance or that does not comply with this chapter or
8-23     the rules adopted under this chapter within the applicable
8-24     probation period.
8-25           SECTION 7. Subchapter E, Chapter 251, Health and Safety Code,
8-26     is amended by adding Section 251.0621 to read as follows:
8-27           Sec. 251.0621.  EMERGENCY SUSPENSION. The department may
 9-1     issue an emergency order to suspend a license issued under this
 9-2     chapter if the department has reasonable cause to believe that the
 9-3     conduct of a license holder creates an immediate danger to the
 9-4     public health and safety.  An emergency suspension is effective
 9-5     immediately without a hearing on notice to the license holder.  On
 9-6     written request of the license holder, the department shall conduct
 9-7     a hearing not earlier than the 10th day or later than the 30th day
 9-8     after the date the hearing request is received to determine if the
 9-9     emergency suspension is to be continued, modified, or rescinded.
9-10     The hearing and any appeal are governed by the department's rules
9-11     for a contested case hearing and Chapter 2001, Government Code.
9-12           SECTION 8. Section 577.016, Health and Safety Code, is
9-13     amended to read as follows:
9-14           Sec. 577.016.  DENIAL, SUSPENSION, PROBATION, OR REVOCATION
9-15     OF LICENSE. (a)  The department may deny, suspend, or revoke a
9-16     license if the department finds that the applicant or licensee has
9-17     substantially failed to comply with:
9-18                 (1)  department rules;
9-19                 (2)  this subtitle; or
9-20                 (3)  Chapters 104 and 225.
9-21           (b)  The department must give the applicant or license holder
9-22     notice of the proposed action, an opportunity to demonstrate or
9-23     achieve compliance, and an opportunity for a hearing before taking
9-24     the action.
9-25           (c)  The department may suspend a license for 10 days pending
9-26     a hearing if after an investigation the department finds that there
9-27     is an immediate threat to the health or safety of the patients or
 10-1    employees of a private mental hospital or mental health facility
 10-2    licensed under this chapter.  The department may issue necessary
 10-3    orders for the patients' welfare.
 10-4          (d)  The department shall send the license holder or
 10-5    applicant a copy of the department's decision by registered mail.
 10-6    If the department denies, suspends, or revokes a license, the
 10-7    department shall include the findings and conclusions on which the
 10-8    department based its decision.
 10-9          (e)  A license holder whose license is suspended or revoked
10-10    may not admit new patients until the license is reissued.
10-11          (f)  If the department finds that a private mental hospital
10-12    or mental health facility is in repeated noncompliance under
10-13    Subsection (a) but that the noncompliance does not endanger public
10-14    health and safety, the department may schedule the hospital or
10-15    facility for probation rather than suspending or revoking the
10-16    license of the hospital or facility.  The department shall provide
10-17    notice to the hospital or facility of the probation and of the
10-18    items of noncompliance not later than the 10th day before the date
10-19    the probation period begins.  The department shall designate a
10-20    period of not less than 30 days during which the hospital or
10-21    facility will remain under probation.  During the probation period,
10-22    the hospital or facility must correct the items that were in
10-23    noncompliance and report the corrections to the department for
10-24    approval.
10-25          (g)  The department may suspend or revoke the license of a
10-26    private mental hospital or mental health facility that does not
10-27    comply with the applicable requirements within the applicable
 11-1    probation period.
 11-2          SECTION 9.  This Act takes effect immediately if it receives
 11-3    a vote of two-thirds of all the members elected to each house, as
 11-4    provided by Section 39, Article III, Texas Constitution.  If this
 11-5    Act does not receive the vote necessary for immediate effect, this
 11-6    Act takes effect September 1, 2001.