80R4732 ABC-D
 
  By: Davis of Harris H.B. No. 1715
 
 
 
   
 
 
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of certain long-term care facilities,
including the establishment of late fees and changes to
administrative penalties, and relating to the office of long-term
care ombudsman.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 32.021(m), Human Resources Code, is
amended to read as follows:
       (m)  Notwithstanding any provision of law to the contrary,
the department may [shall] terminate a nursing facility's provider
agreement if the department has imposed required Category 2 or
Category 3 remedies on the facility three times within a 24-month
period unless the department makes an affirmative finding that good
cause exists to waive this requirement to facilitate a change in
ownership to protect residents of a facility. In this subsection,
"Category 2 remedies" and "Category 3 remedies" have the meanings
assigned by 42 C.F.R. Section 488.408.
       SECTION 2.  Section 101.051(2), Human Resources Code, is
amended to read as follows:
             (2)  "Long-term care facility" means a facility that
serves persons who are 60 years of age or older and that is licensed
or regulated or that is required to be licensed or regulated by the
[Texas] Department of Aging and Disability [Human] Services under
Chapter 242 or 247, Health and Safety Code.
       SECTION 3.  Section 103.006(b), Human Resources Code, is
amended to read as follows:
       (b)  The license expires two years [one year] from the date
of its issuance. The executive commissioner of the Health and Human
Services Commission by rule may adopt a system under which licenses
expire on various dates during the two-year period. For the year in
which a license expiration date is changed, the department shall
prorate the license fee on a monthly basis.  Each license holder
shall pay only that portion of the license fee allocable to the
number of months for which the license is valid.  A license holder
shall pay the total license renewal fee at the time of renewal.
       SECTION 4.  Section 103.007, Human Resources Code, is
amended by amending Subsections (a) and (c) and adding Subsection
(d) to read as follows:
       (a)  An applicant for a license to operate an adult day-care
facility must file an application on a form prescribed by the
department together with a license fee of $50 [$25].
       (c)  A person who operates a facility that is licensed under
this chapter must file an application for a renewal license not
later than the 45th day before the expiration date of the current
license on a form prescribed by the department together with a
renewal fee of $50 [$25].
       (d)  An applicant for a license renewal who submits an
application later than the 45th day before the expiration date of
the license is subject to a late fee in accordance with department
rules.
       SECTION 5.  Section 142.006(b), Health and Safety Code, is
amended to read as follows:
       (b)  A license issued under this chapter expires two years
[one year] after the date of issuance. The executive commissioner
of the Health and Human Services Commission by rule may adopt a
system under which licenses expire on various dates during the
two-year period. For the year in which a license expiration date is
changed, the department shall prorate the license fee on a monthly
basis.  Each license holder shall pay only that portion of the
license fee allocable to the number of months for which the license
is valid.  A license holder shall pay the total license renewal fee
at the time of renewal. The department may issue an initial license
for a shorter term [of less than one year] to conform expiration
dates for a locality or an applicant. The department[, in
accordance with board rules,] may issue a temporary license to an
applicant for an initial license.
       SECTION 6.  Section 142.010(a), Health and Safety Code, is
amended to read as follows:
       (a)  The department [board] shall set license fees for home
and community support services agencies in amounts that are
reasonable to meet the costs of administering this chapter, except
that the fees may not be less than $600 [$300] or more than $2,000
[$1,000] for a license to provide home health, hospice, or personal
assistance services.
       SECTION 7.  Section 142.0105, Health and Safety Code, is
amended to read as follows:
       Sec. 142.0105.  LICENSE RENEWAL.  (a)  A person who is
otherwise eligible to renew a license may renew an unexpired
license by submitting a completed application for renewal and
paying the required renewal fee to the department not later than the
45th day before the expiration date of the license. A person whose
license has expired may not engage in activities that require a
license [until the license has been renewed].
       (b)  An applicant for a license renewal who submits an
application later than the 45th day before the expiration date of
the license is subject to a late fee in accordance with department
rules [A person whose license has been expired for 90 days or less
may renew the license by paying to the department a renewal fee that
is equal to 1-1/2 times the normally required renewal fee].
       (c)  [A person whose license has been expired for more than
90 days may obtain a new license by complying with the requirements
and procedures for obtaining an original license.
       [(d)]  Not later than the 120th [60th] day before the date a
person's license is scheduled to expire, the department shall send
written notice of the impending expiration to the person at the
person's last known address according to the records of the
department. The written notice must include an application for
license renewal and instructions for completing the application.
       SECTION 8.  Section 142.017, Health and Safety Code, is
amended by amending Subsection (e) and adding Subsection (j) to
read as follows:
       (e)  Except as provided by Subsection (j), the [The]
department by rule shall provide the home and community support
services agency with a reasonable period of time following the
first day of a violation to correct the violation before assessing
an administrative penalty if a plan of correction has been
implemented.
       (j)  The department may assess an administrative penalty
without providing a reasonable period of time to the agency to
correct the violation if the violation:
             (1)  results in serious harm or death;
             (2)  constitutes a serious threat to health or safety;
             (3)  substantially limits the agency's capacity to
provide care;
             (4)  is a violation in which a person:
                   (A)  makes a false statement that the person knows
or should know is false, of a material fact:
                         (i)  on an application for issuance or
renewal of a license or in an attachment to the application; or
                         (ii)  with respect to a matter under
investigation by the department;
                   (B)  refuses to allow a representative of the
department to inspect a book, record, or file required to be
maintained by an agency;
                   (C)  wilfully interferes with the work of a
representative of the department or the enforcement of this
chapter;
                   (D)  wilfully interferes with a representative of
the department preserving evidence of a violation of this chapter
or a rule, standard, or order adopted or license issued under this
chapter;
                   (E)  fails to pay a penalty assessed by the
department under this chapter not later than the 10th day after the
date the assessment of the penalty becomes final; or
                   (F)  fails to submit:
                         (i)  a plan of correction not later than the
10th day after the date the person receives a statement of licensing
violations; or
                         (ii)  an acceptable plan of correction not
later than the 30th day after the date the person receives
notification from the department that the previously submitted plan
of correction is not acceptable;
             (5)  is a violation of Section 142.0145; or
             (6)  involves the rights of the elderly under Chapter
102, Human Resources Code.
       SECTION 9.  Section 242.032, Health and Safety Code, is
amended by adding Subsection (f) to read as follows:
       (f)  Information obtained under this section regarding an
applicant's or license holder's financial condition is confidential
and may not be disclosed to the public.
       SECTION 10.  Section 242.034, Health and Safety Code, is
amended by adding Subsection (i) to read as follows:
       (i)  An applicant for license renewal who submits an
application later than the 45th day before the expiration date of a
current license is subject to a late fee in accordance with
department rules.
       SECTION 11.  Section 242.066(a), Health and Safety Code, is
amended to read as follows:
       (a)  The department may assess an administrative penalty
against a person who:
             (1)  violates this chapter or a rule, standard, or
order adopted or license issued under this chapter;
             (2)  makes a false statement, that the person knows or
should know is false, of a material fact:
                   (A)  on an application for issuance or renewal of
a license or in an attachment to the application; or
                   (B)  with respect to a matter under investigation
by the department;
             (3)  refuses to allow a representative of the
department to inspect:
                   (A)  a book, record, or file required to be
maintained by an institution; or
                   (B)  any portion of the premises of an
institution;
             (4)  wilfully interferes with the work of a
representative of the department or the enforcement of this
chapter;
             (5)  wilfully interferes with a representative of the
department preserving evidence of a violation of this chapter or a
rule, standard, or order adopted or license issued under this
chapter; [or]
             (6)  fails to pay a penalty assessed by the department
under this chapter not later than the 10th day after the date the
assessment of the penalty becomes final; or
             (7)  fails to notify the department of a change of
ownership before the effective date of the change of ownership.
       SECTION 12.  Section 242.0665(b), Health and Safety Code, is
amended to read as follows:
       (b)  Subsection (a) does not apply:
             (1)  to a violation that the department determines:
                   (A)  results in serious harm to or death of a
resident;
                   (B)  constitutes a serious threat to the health or
safety of a resident; or
                   (C)  substantially limits the institution's
capacity to provide care;
             (2)  to a violation described by Sections
242.066(a)(2)-(7) [242.066(a)(2)-(6)];
             (3)  to a violation of Section 242.133 or 242.1335; or
             (4)  to a violation of a right of a resident adopted
under Subchapter L.
       SECTION 13.  Sections 247.023(a) and (b), Health and Safety
Code, are amended to read as follows:
       (a)  The department shall issue a license if, after
inspection and investigation, it finds that the applicant, the
assisted living facility, and all controlling persons with respect
to the applicant or facility meet the requirements of this chapter
and the standards adopted under this chapter. The license expires
on the second anniversary of the date of its issuance. The
executive commissioner of the Health and Human Services Commission
by rule may adopt a system under which licenses expire on various
dates during the two-year period. For the year in which a license
expiration date is changed, the department shall prorate the
license fee on a monthly basis. Each license holder shall pay only
that portion of the license fee allocable to the number of months
during which the license is valid.  A license holder shall pay the
total license renewal fee at the time of renewal.
       (b)  To renew a license, the license holder must submit to
the department the [annual] license renewal fee.
       SECTION 14.  Section 247.024, Health and Safety Code, is
amended by amending Subsection (a) and adding Subsection (e) to
read as follows:
       (a)  The department [board] shall set license fees imposed by
this chapter:
             (1)  on the basis of the number of beds in assisted
living facilities required to pay the fee; and
             (2)  in amounts reasonable and necessary to defray the
cost of administering this chapter, but not to exceed $1,500
[$750].
       (e)  An applicant who submits a license renewal later than
the 45th day before the expiration date of a current license may be
subject to a late fee in accordance with department rules.
       SECTION 15.  Section 247.0451(a), Health and Safety Code, is
amended to read as follows:
       (a)  The department may assess an administrative penalty
against a person who:
             (1)  violates this chapter or a rule, standard, or
order adopted under this chapter or a term of a license issued under
this chapter;
             (2)  makes a false statement, that the person knows or
should know is false, of a material fact:
                   (A)  on an application for issuance or renewal of
a license or in an attachment to the application; or
                   (B)  with respect to a matter under investigation
by the department;
             (3)  refuses to allow a representative of the
department to inspect:
                   (A)  a book, record, or file required to be
maintained by an assisted living facility; or
                   (B)  any portion of the premises of an assisted
living facility;
             (4)  wilfully interferes with the work of a
representative of the department or the enforcement of this
chapter;
             (5)  wilfully interferes with a representative of the
department preserving evidence of a violation of this chapter or a
rule, standard, or order adopted under this chapter or a term of a
license issued under this chapter; [or]
             (6)  fails to pay a penalty assessed under this chapter
not later than the 30th day after the date the assessment of the
penalty becomes final; or
             (7)  fails to notify the department of a change of
ownership before the effective date of the change of ownership.
       SECTION 16.  Section 247.0452(b), Health and Safety Code, is
amended to read as follows:
       (b)  Subsection (a) does not apply:
             (1)  to a violation that the department determines
results in serious harm to or death of a resident;
             (2)  to a violation described by Sections
247.0451(a)(2)-(7) [247.0451(a)(2)-(6)];
             (3)  to a second or subsequent violation of:
                   (A)  a right of the same resident under Section
247.064; or
                   (B)  the same right of all residents under Section
247.064; or
             (4)  to a violation described by Section 247.066, which
contains its own right to correct provisions.
       SECTION 17.  Section 252.034, Health and Safety Code, is
amended by adding Subsection (f) to read as follows:
       (f)  An applicant who submits an application for license
renewal later than the 45th day before the expiration date of a
current license may be subject to a late fee in accordance with
department rules.
       SECTION 18.  Sections 252.065(a) and (e), Health and Safety
Code, are amended to read as follows:
       (a)  The department may assess an administrative penalty
against a person who:
             (1)  violates this chapter or a rule, standard, or
order adopted or license issued under this chapter;
             (2)  makes a false statement, that the person knows or
should know is false, of a material fact:
                   (A)  on an application for issuance or renewal of
a license or in an attachment to the application; or
                   (B)  with respect to a matter under investigation
by the department;
             (3)  refuses to allow a representative of the
department to inspect:
                   (A)  a book, record, or file required to be
maintained by the institution; or
                   (B)  any portion of the premises of an
institution;
             (4)  wilfully interferes with the work of a
representative of the department or the enforcement of this
chapter;
             (5)  wilfully interferes with a representative of the
department preserving evidence of a violation of this chapter or a
rule, standard, or order adopted or license issued under this
chapter;
             (6)  fails to pay a penalty assessed by the department
under this chapter not later than the 10th day after the date the
assessment of the penalty becomes final;
             (7)  fails to submit a plan of correction within 10 days
after receiving a statement of licensing violations; or
             (8)  fails to notify the department of a change in
ownership before the effective date of that change of ownership
[facility that violates this chapter or a rule adopted under this
chapter].
       (e)  The department by rule shall provide the facility with a
reasonable period of time, not less than 45 days, following the
first day of a violation to correct the violation before assessing
an administrative penalty if a plan of correction has been
implemented. This subsection does not apply to a violation
described by Subsection (a)(2)-(8) or to a violation that the
department determines:
             (1)  has resulted in serious harm to or the death of a
resident;
             (2)  [or] constitutes a serious threat to the health or
safety of a resident; or
             (3)  substantially limits the institution's capacity to
provide care.
       SECTION 19.  If before implementing any provision of this
Act a state agency determines that a waiver or authorization from a
federal agency is necessary for implementation of that provision,
the agency affected by the provision shall request the waiver or
authorization and may delay implementing that provision until the
waiver or authorization is granted.
       SECTION 20.  (a)  Except as provided by Subsection (b) of
this section, this Act applies only to a license issued or renewed
on or after September 1, 2007.  A license issued or renewed before
September 1, 2007, is governed by the law as it existed immediately
before the effective date of this Act, and that law is continued in
effect for that purpose.
       (b)  The changes in law made by this Act relating to the time
for filing an application for a license renewal and the
applicability of a late fee to an application for a license renewal
apply only to an application for a license renewal filed on or after
November 1, 2007.  An application for a license renewal filed before
November 1, 2007, is governed by the law as it existed immediately
before the effective date of this Act, and that law is continued in
effect for that purpose.
       SECTION 21.  This Act takes effect September 1, 2007.