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AN ACT
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relating to licensing and regulation by a state agency. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Chapter 2005, Government Code, is |
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amended to read as follows: |
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CHAPTER 2005. MISCELLANEOUS PROVISIONS RELATING TO STATE LICENSES |
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AND PERMITS [PERMIT PROCESSING] |
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SECTION 2. Sections 2005.001 through 2005.007, Government |
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Code, are designated as Subchapter A, Chapter 2005, Government |
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Code, and a subchapter heading is added to read as follows: |
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SUBCHAPTER A. PERMIT PROCESSING |
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SECTION 3. Chapter 2005, Government Code, is amended by |
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adding Subchapter B to read as follows: |
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SUBCHAPTER B. DENIAL, SUSPENSION, OR REVOCATION FOR FALSE |
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STATEMENT, MISREPRESENTATION, OR REFUSAL TO PROVIDE INFORMATION |
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Sec. 2005.051. DEFINITIONS. In this subchapter: |
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(1) "License" means a license, certificate, |
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registration, permit, or other authorization: |
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(A) that is issued by a licensing authority; |
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(B) that is subject before expiration to |
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suspension, revocation, forfeiture, or termination by the issuing |
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licensing authority; and |
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(C) that a person must obtain to: |
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(i) practice or engage in a particular |
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business, occupation, or profession; or |
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(ii) engage in any other regulated |
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activity, including hunting, fishing, or other recreational |
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activity for which a license or permit is required. |
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(2) "Licensing authority" means an agency of the |
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executive, legislative, or judicial branch of state government that |
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issues a license. |
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Sec. 2005.052. DENIAL, SUSPENSION, OR REVOCATION FOR FALSE |
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STATEMENT, MISREPRESENTATION, OR REFUSAL TO PROVIDE INFORMATION. |
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(a) A licensing authority may deny a person's application for a |
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license or suspend or revoke a person's license if the licensing |
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authority determines, after notice and hearing, that the person |
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knowingly: |
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(1) made a false statement in connection with applying |
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for or renewing the license; |
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(2) made a material misrepresentation to the licensing |
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authority in connection with applying for or renewing the license; |
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(3) refused to provide information requested by the |
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licensing authority; or |
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(4) failed to provide all of the person's criminal |
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history information in response to the licensing authority's |
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request for the information. |
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(b) A denial, suspension, or revocation by a licensing |
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authority under this section is governed by the administrative |
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procedures that apply to other disciplinary actions taken by the |
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licensing authority. |
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Sec. 2005.053. CRIMINAL PROSECUTION. A person who |
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knowingly makes a false statement in connection with applying for |
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or renewing a license may be subject to criminal prosecution under |
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Section 37.10, Penal Code. |
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SECTION 4. Section 2005.001, Government Code, is amended to |
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read as follows: |
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Sec. 2005.001. DEFINITIONS. In this subchapter [chapter]: |
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(1) "Permit" means an authorization by a license, |
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certificate, registration, or other form that is required by law or |
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state agency rules to engage in a particular business. |
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(2) "State agency" means a department, board, bureau, |
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commission, division, office, council, or other agency of the |
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state. |
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SECTION 5. Section 2005.002, Government Code, is amended to |
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read as follows: |
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Sec. 2005.002. EXCEPTIONS. This subchapter [chapter] does |
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not apply to a permit: |
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(1) for which an agency's median time during the |
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preceding calendar year for processing a permit application from |
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receipt of the initial application to the final permit decision did |
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not exceed seven days; |
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(2) issued in connection with any form of gaming or |
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gambling; or |
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(3) issued under the Alcoholic Beverage Code. |
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SECTION 6. Section 2005.005, Government Code, is amended to |
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read as follows: |
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Sec. 2005.005. DUTY OF HEAD OF AGENCY. The head of each |
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state agency shall ensure that the agency complies with this |
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subchapter [chapter]. |
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SECTION 7. Section 2005.006(a), Government Code, is amended |
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to read as follows: |
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(a) A state agency subject to this subchapter [chapter] |
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shall establish by rule a complaint procedure through which a |
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permit applicant can: |
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(1) complain directly to the chief administrator of |
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the agency if the agency exceeds the established period for |
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processing permits; and |
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(2) request a timely resolution of any dispute arising |
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from the delay. |
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SECTION 8. Section 2005.007(b), Government Code, is amended |
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to read as follows: |
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(b) The report must include: |
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(1) a statement of the periods the agency has adopted |
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under this subchapter [chapter] for processing each type of permit |
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it issues, specifying any changes the agency made since the last |
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report; |
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(2) a statement of the minimum, maximum, and median |
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times for processing each type of permit during the period since the |
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last report from the date the agency receives the initial permit |
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application to the final permit decision; |
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(3) a description of the complaint procedure required |
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by Section 2005.006; |
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(4) a summary of the number and disposition of |
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complaints received by the agency under Section 2005.006 since the |
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last report; and |
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(5) a description of specific actions taken by the |
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agency since the last report to simplify and improve its permit |
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application, processing, and paperwork requirements. |
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SECTION 9. Section 247.045, Health and Safety Code, is |
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amended by amending Subsections (d) and (e) and adding Subsections |
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(h) and (i) to read as follows: |
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(d) The attorney general may institute and conduct a suit to |
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collect a penalty and fees under this section at the request of the |
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department. If the attorney general fails to notify the department |
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[take action] within 30 days of referral from the department that |
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the attorney general will accept the case, the department shall |
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refer the case to the local district attorney, county attorney, or |
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city attorney. The district attorney, county attorney, or city |
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attorney shall file suit in a district court to collect and retain |
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the penalty. |
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(e) Investigation and attorney's fees may not be assessed or |
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collected by or on behalf of the department or other state agency |
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unless [the department or other state agency assesses and collects] |
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a penalty described under this chapter is assessed. |
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(h) If a person who is liable under this section fails to pay |
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any amount the person is obligated to pay under this section, the |
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state may seek satisfaction from any owner, other controlling |
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person, or affiliate of the person found liable. The owner, other |
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controlling person, or affiliate may be found liable in the same |
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suit or in another suit on a showing by the state that the amount to |
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be paid has not been paid or otherwise legally discharged. The |
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department by rule may establish a method for satisfying an |
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obligation imposed under this section from an insurance policy, |
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letter of credit, or other contingency fund. |
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(i) In this section, "affiliate" means: |
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(1) with respect to a partnership other than a limited |
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partnership, each partner of the partnership; |
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(2) with respect to a corporation: |
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(A) an officer; |
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(B) a director; |
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(C) a stockholder who owns, holds, or has the |
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power to vote at least 10 percent of any class of securities issued |
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by the corporation, regardless of whether the power is of record or |
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beneficial; and |
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(D) a controlling individual; |
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(3) with respect to an individual: |
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(A) each partnership and each partner in the |
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partnership in which the individual or any other affiliate of the |
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individual is a partner; and |
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(B) each corporation or other business entity in |
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which the individual or another affiliate of the individual is: |
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(i) an officer; |
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(ii) a director; |
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(iii) a stockholder who owns, holds, or has |
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the power to vote at least 10 percent of any class of securities |
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issued by the corporation, regardless of whether the power is of |
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record or beneficial; and |
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(iv) a controlling individual; |
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(4) with respect to a limited partnership: |
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(A) a general partner; and |
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(B) a limited partner who is a controlling |
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individual; |
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(5) with respect to a limited liability company: |
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(A) an owner who is a manager as described by the |
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Texas Limited Liability Company Act (Article 1528n, Vernon's Texas |
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Civil Statutes); and |
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(B) each owner who is a controlling individual; |
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and |
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(6) with respect to any other business entity, a |
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controlling individual. |
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SECTION 10. (a) In this section: |
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(1) "Department" means the Department of Aging and |
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Disability Services. |
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(2) "Disabled person" has the meaning assigned by |
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Section 48.002, Human Resources Code. |
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(3) "Elderly person" has the meaning assigned by |
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Section 48.002, Human Resources Code. |
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(4) "Executive commissioner" means the executive |
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commissioner of the Health and Human Services Commission. |
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(5) "Boarding house" means an establishment that: |
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(A) provides services, including community |
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meals, light housework, meal preparation, transportation, grocery |
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shopping, money management, or laundry services to three or more |
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elderly persons or disabled persons residing in the boarding house |
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who are unrelated to the owner or proprietor of the establishment; |
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(B) is not: |
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(i) required to be licensed under Chapter |
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142, 242, 246, 247, or 252, Health and Safety Code; or |
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(ii) exempt from licensing under Section |
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142.003(a)(19) or 247.004(4), Health and Safety Code; and |
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(C) is not a: |
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(i) child-care facility as defined by |
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Section 42.002, Human Resources Code; |
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(ii) family violence center as defined by |
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Section 51.002, Human Resources Code; |
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(iii) hotel as defined by Section 156.001, |
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Tax Code; |
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(iv) retirement community; |
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(v) monastery or convent; or |
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(vi) sorority or fraternity house or other |
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dormitory affiliated with an institution of higher education. |
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(b) Subject to the appropriation of funds for the express |
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purpose of implementing the pilot program described by this |
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section, the executive commissioner by rule shall develop and |
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implement a pilot program in each county or municipality described |
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by Subsection (d) of this section. The pilot program must: |
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(1) require boarding houses to be licensed and |
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inspected; and |
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(2) enforce rules and regulations for licensed |
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boarding houses. |
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(c) In implementing the pilot program, the executive |
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commissioner shall adopt rules and regulations for boarding houses |
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that include: |
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(1) minimum standards to ensure the health and safety |
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of residents of boarding houses, including fire safety |
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requirements; |
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(2) a requirement that a boarding house may not allow |
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an individual required to register under Chapter 62, Code of |
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Criminal Procedure, to reside in the boarding house; |
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(3) required disclosures by boarding houses; |
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(4) reporting requirements regarding resident deaths, |
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injuries, or accidents; and |
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(5) administrative penalties for a boarding house of |
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not less than $100 or more than $1,000 for each violation by a |
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boarding house of a rule adopted or order issued under the pilot |
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program. |
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(d) Subject to the appropriation of funds for the express |
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purpose of implementing the pilot program described by this |
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section, not later than August 1, 2008, the executive commissioner |
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shall implement the pilot program in each county or municipality |
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that has adopted an order or ordinance regulating the operation of |
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boarding houses. |
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(e) Not later than January 1, 2009, the Health and Human |
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Services Commission shall submit a report to the governor, the |
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lieutenant governor, the speaker of the house of representatives, |
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and the presiding officer of each house and senate standing |
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committee having jurisdiction over adult protective services. The |
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report must include: |
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(1) if the pilot program has been developed and |
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implemented: |
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(A) the number of: |
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(i) boarding houses licensed through the |
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pilot program; |
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(ii) violations by boarding houses of rules |
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adopted under the pilot program; and |
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(iii) investigations of boarding houses |
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licensed under the pilot program related to alleged abuse, neglect, |
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or exploitation of a resident; |
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(B) a description of any penalties against a |
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boarding house licensed under the pilot program resulting from a |
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department investigation; and |
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(C) a recommendation regarding the advisability |
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of expanding the pilot program statewide; or |
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(2) if the pilot program has not been developed and |
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implemented, a study and recommendations regarding the most |
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effective method for regulating boarding houses, including |
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recommendations on whether clarifying the authority of and granting |
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additional authority to counties and municipalities to establish |
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health and safety standards for boarding houses is recommended. |
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(f) This section expires September 1, 2011. |
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SECTION 11. Subchapter B, Chapter 2005, Government Code, as |
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added by this Act, applies only to a statement, misrepresentation, |
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or refusal made, in connection with applying for or renewing a |
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license, on or after the effective date of this Act. |
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SECTION 12. The change in law made to Section 247.045, |
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Health and Safety Code, by this Act applies only to a violation that |
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occurs on or after the effective date of this Act. A violation |
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occurs before the effective date of this Act if any element of the |
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violation occurs before that date. A violation that occurs before |
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the effective date of this Act is covered by the law in effect when |
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the violation occurred, and the former law is continued in effect |
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for that purpose. |
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SECTION 13. This Act takes effect September 1, 2007. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 1168 was passed by the House on May |
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11, 2007, by the following vote: Yeas 138, Nays 0, 2 present, not |
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voting; that the House refused to concur in Senate amendments to |
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H.B. No. 1168 on May 25, 2007, and requested the appointment of a |
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conference committee to consider the differences between the two |
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houses; and that the House adopted the conference committee report |
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on H.B. No. 1168 on May 28, 2007, by the following vote: Yeas 143, |
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Nays 0, 2 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 1168 was passed by the Senate, with |
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amendments, on May 23, 2007, by the following vote: Yeas 30, Nays |
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1; at the request of the House, the Senate appointed a conference |
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committee to consider the differences between the two houses; and |
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that the Senate adopted the conference committee report on H.B. No. |
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1168 on May 27, 2007, by the following vote: Yeas 30, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |