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A BILL TO BE ENTITLED
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AN ACT
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relating to the enforcement of civil penalties against certain |
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assisted living facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. 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 2. The change in law made by this Act applies only |
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to a violation that occurs on or after the effective date of this |
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Act. A violation occurs before the effective date of this Act if |
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any element of the violation occurs before that date. A violation |
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that occurs before the effective date of this Act is covered by the |
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law in effect when the violation occurred, and the former law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2007. |