S.B. 162 78(R)    BILL ANALYSIS
        
S.B. 162
By: Nelson
Public Health
Committee Report (Unamended)

BACKGROUND AND PURPOSE 
Currently, the Texas Department of Health (TDH) has the authority to deny,
revoke, and suspend the medical licenses of certain facilities found to be
in noncompliance with Texas laws. However, TDH cannot place these
facilities on probation and emergency suspension if the facilities do not
come into compliance with the law during the probationary period. The Act
would allow TDH to authorize license probation and emergency suspension in
certain cases for health facilities TDH is charged with regulating. 

RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS
SECTION 1. Amends the heading of Section 241.053, Health and Safety Code,
to read as follows: DENIAL OF APPLICATION, SUSPENSION, REVOCATION,
PROBATION, OR REISSUANCE OF LICENSE. 

SECTION 2. Amends Section 241.053, Health and Safety Code, by adding
Subsections (f) and (g), as follows: 
(f) Authorizes the Texas Department of Health (TDH) to schedule a hospital
for probation rather than suspending or revoking the hospital's license if
TDH finds that a hospital is in repeated noncompliance under Subsection
(a) but that the noncompliance does not endanger public health and safety.
Requires TDH to provide notice to the hospital of the probation and of the
items of noncompliance not later than the tenth day before the date the
probation period begins. Requires TDH to designate a period of not less
than 30 days during which a hospital will remain under probation. Requires
a hospital, during the probation period, to correct the items that were in
noncompliance and report the corrections to TDH for approval. (g)
Authorizes TDH to suspend or revoke the license of a hospital that does
not correct items that were in noncompliance or that does not comply with
the applicable requirements within the applicable probation period. 

SECTION 3. Amends the heading of Section 243.011, Health and Safety Code,
to read as follows: DENIAL, SUSPENSION, PROBATION, OR REVOCATION OF
LICENSE. 

SECTION 4. Amends Section 243.011, Health and Safety Code, by adding
Subsections (c) and (d), as follows: 
(c) Authorizes TDH to schedule an ambulatory surgical center for probation
rather than suspending or revoking the center's license if TDH finds the
center is in repeated noncompliance with this chapter or rules adopted
under this chapter but that the noncompliance does not endanger public
health or safety. Requires TDH to provide notice to the center of the
probation and of the items of noncompliance not later than the tenth day
before the date the probation period begins. Requires TDH to designate a
period of not less than 30 days during which a center will remain under
probation. Requires a center, during the probation period, to correct the
items that were in noncompliance and report the corrections to TDH for
approval. (d) Authorizes TDH to suspend or revoke the license of an
ambulatory surgical center that does not correct items that were in
noncompliance or that does not comply with the applicable requirements
within the applicable probation period. 

SECTION 5. Amends the heading of Section 244.011, Health and Safety Code,
to read as follows: DENIAL, SUSPENSION, PROBATION, OR REVOCATION OF
LICENSE. 

SECTION 6. Amends Section 244.011, Health and Safety Code, by adding
Subsections (c) and (d), as follows: 
(c) Authorizes TDH to schedule a birthing center for probation rather than
suspending or revoking the center's license if TDH finds the center is in
repeated noncompliance with this chapter or rules adopted under this
chapter but that the noncompliance does not endanger public health or
safety. Requires TDH to provide notice to the center of the probation and
of the items of noncompliance not later than the tenth day before the date
the probation period begins. Requires TDH to designate a period of not
less than 30 days during which a center will remain under probation.
Requires a center, during the probation period, to correct the items that
were in noncompliance and report the corrections to TDH for approval. (d)
Authorizes TDH to suspend or revoke the license of a birthing center that
does not correct items that were in noncompliance or that does not comply
with the applicable requirements within the applicable probation period.  

SECTION 7. Amends the heading of Section 245.012, Health and Safety Code,
to read as follows: DENIAL, SUSPENSION, PROBATION, OR REVOCATION OF
LICENSE. 

SECTION 8. Amends Section 245.012, Health and Safety Code, by adding
Subsections (d) and (e), as follows: 
(d) Authorizes TDH to schedule an abortion facility for probation rather
than suspending or revoking the facility's license if TDH finds the
facility is in repeated noncompliance with this chapters or rules adopted
under this chapter but that the noncompliance does not endanger public
health or safety. Requires TDH to provide notice to the facility  of the
probation and of the items of noncompliance not later than the tenth day
before the date the probation period begins. Requires TDH to designate a
period of not less than 30 days during which a facility will remain under
probation. Requires a facility, during the probation period, to correct
the items that were in noncompliance and report the corrections to TDH for
approval. (e) Authorizes TDH to suspend or revoke the license of an
abortion facility that does not correct items that were in noncompliance
or that does not comply with the applicable requirements within the
applicable probation period. 

SECTION 9. Amends the heading of Section 248.051, Health and Safety Code,
to read as follows: 
DENIAL, SUSPENSION, PROBATION, OR REVOCATION OF LICENSE.

SECTION 10. Amends Section 248.051, Health and Safety Code, by adding
Subsections (c) and (d), as follows: 
(c) Authorizes TDH to schedule a special care facility for probation
rather than suspending or revoking the facility's license if TDH finds the
facility is in repeated noncompliance with this chapter or rules adopted
under this chapter but that the noncompliance does not endanger public
health or safety. Requires TDH to provide notice to the facility of the
probation and of the items of noncompliance not later than the tenth day
before the date the probation period begins. Requires TDH to designate a
period of not less than 30 days during which a facility will remain under
probation. Requires a facility, during the probation period, to correct
the items that were in noncompliance and report the corrections to TDH for
approval. (d) Authorizes TDH to suspend or revoke the license of a special
care facility that does not correct items that were in noncompliance or
that does not comply with the applicable requirements within the
applicable probation period. 

SECTION 11. Amends the heading of Section 251.062, Health and Safety Code,
to read as follows: 
DENIAL, SUSPENSION, PROBATION, OR REVOCATION OF LICENSE.

SECTION 12. Amends Section 251.062, Health and Safety Code, by adding
Subsections (c) and (d), as follows: 
(c) Authorizes TDH to schedule an end stage renal disease facility for
probation rather than suspending or revoking the facility's license if TDH
finds the facility is in repeated noncompliance with this chapters or
rules adopted under this chapter but that the noncompliance does not
endanger public health or safety. Requires TDH to provide notice to the
facility of the probation and of the items of noncompliance not later than
the tenth day before the date the probation period begins. Requires TDH to
designate a period of not less than 30 days during which a facility will
remain under probation. Requires a facility, during the probation period,
to correct the items that were in noncompliance and report the corrections
to TDH for approval. (d) Authorizes TDH to suspend or revoke the license
of an end stage renal disease facility that does not correct items that
were in noncompliance or that does not comply with the applicable
requirements within the applicable probation period. 

SECTION 13. Amends Chapter 251E, Health and Safety Code, by adding Section
251.0621, as follows: 
Sec. 251.0621. EMERGENCY SUSPENSION. Authorizes TDH to issue an emergency
order to suspend a license issued under this chapter if TDH has reasonable
cause to believe that the conduct of a license holder creates an immediate
danger to public health and safety. Provides that an emergency suspension
is effective immediately without a hearing on notice to the license
holder. Requires TDH, on written request of the license holder, to conduct
a hearing not earlier than the tenth day or later than the thirtieth day
after the date the hearing request is received to determine if the
emergency suspension is to be continued, modified, or rescinded. Provides
that the hearing and any appeal are governed by TDH rules for a contested
case hearing and Chapter 2001, Government Code (Administrative Procedure). 

SECTION 14. Amends the heading of Section 577.016, Health and Safety Code,
to read as follows: 
DENIAL, SUSPENSION, PROBATION, OR REVOCATION OF LICENSE.

SECTION 15. Amends Section 577.016, Health and Safety Code, by adding
Subsections (f) and (g),as follows: 
(f) Authorizes TDH to schedule a private mental hospital or mental health
facility for probation rather than suspending or revoking the license of
the hospital or facility if TDH finds a hospital or facility is in
repeated noncompliance with this chapters or rules adopted under this
chapter but that the noncompliance does not endanger public health or
safety. Requires TDH to provide notice to a hospital or facility of the
probation and of the items of noncompliance not later than the tenth day
before the date the probation period begins. Requires TDH to designate a
period of not less than 30 days during which a hospital or facility will
remain under probation. Requires a hospital or facility, during the
probation period, to correct the items that were in noncompliance and
report the corrections to TDH for approval. (g) Authorizes TDH to suspend
or revoke the license of a private mental hospital or mental health
facility that does not correct items that were in noncompliance or that
does not comply with the applicable requirements within the applicable
probation period. 

SECTION 16. Effective date: upon passage or September 1, 2003.

EFFECTIVE DATE
Upon passage, or, if the act does not receive the necessary vote, the Act
takes effect September 1, 2003.