By: Nelson  S.B. No. 78
         (In the Senate - Filed November 8, 2010; January 31, 2011,
  read first time and referred to Committee on Health and Human
  Services; March 7, 2011, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 7, Nays 0;
  March 7, 2011, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 78 By:  Nelson
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to adverse licensing, listing, or registration decisions
  by certain health and human services agencies.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 531, Government Code, is amended by
  adding Subchapter W to read as follows:
  SUBCHAPTER W.  ADVERSE LICENSING, LISTING, OR REGISTRATION
  DECISIONS
         Sec. 531.951.  APPLICABILITY. This subchapter applies only
  to the licensing, listing, or registration decisions of a health
  and human services agency with respect to a person under the law
  authorizing the agency to regulate the following types of persons:
               (1)  a youth camp licensed under Chapter 141, Health
  and Safety Code;
               (2)  a home and community support services agency
  licensed under Chapter 142, Health and Safety Code;
               (3)  a hospital licensed under Chapter 241, Health and
  Safety Code;
               (4)  an institution licensed under Chapter 242, Health
  and Safety Code;
               (5)  an assisted living facility licensed under Chapter
  247, Health and Safety Code;
               (6)  a special care facility licensed under Chapter
  248, Health and Safety Code;
               (7)  an intermediate care facility licensed under
  Chapter 252, Health and Safety Code;
               (8)  a chemical dependency treatment facility licensed
  under Chapter 464, Health and Safety Code;
               (9)  a mental hospital or mental health facility
  licensed under Chapter 577, Health and Safety Code;
               (10)  a child-care facility or child-placing agency
  licensed under or a family home listed or registered under Chapter
  42, Human Resources Code; or
               (11)  an adult day-care facility licensed under Chapter
  103, Human Resources Code.
         Sec. 531.952.  RECORD OF DECISION.  (a)  Each health and
  human services agency that regulates a person described by Section
  531.951 shall in accordance with this section and executive
  commissioner rule maintain a record of:
               (1)  each application for a license, including a
  renewal license or a license that does not expire, a listing, or a
  registration that is denied by the agency under the law authorizing
  the agency to regulate the person; and
               (2)  each license, listing, or registration that is
  revoked, suspended, or terminated by the agency under the
  applicable law.
         (b)  The record of an application required by Subsection
  (a)(1) must be maintained until the 10th anniversary of the date the
  application is denied.  The record of the license, listing, or
  registration required by Subsection (a)(2) must be maintained until
  the 10th anniversary of the date of the revocation, suspension, or
  termination.
         (c)  The record required under Subsection (a) must include:
               (1)  the name and address of the applicant for a
  license, listing, or registration that is denied as described by
  Subsection (a)(1);
               (2)  the name and address of each person listed in the
  application for a license, listing, or registration that is denied
  as described by Subsection (a)(1);
               (3)  the name of each person determined by the
  applicable regulatory agency to be a controlling person of an
  entity for which an application, license, listing, or registration
  is denied, revoked, suspended, or terminated as described by
  Section (a);
               (4)  the specific type of license, listing, or
  registration that was denied, revoked, suspended, or terminated by
  the agency;
               (5)  a summary of the terms of the denial, revocation,
  suspension, or termination; and
               (6)  the period the denial, revocation, suspension, or
  termination was effective.
         (d)  Each health and human services agency that regulates a
  person described by Section 531.951 each month shall provide a copy
  of the records maintained under this section to each other health
  and human services agency that regulates a person described by
  Section 531.951.
         Sec. 531.953.  DENIAL OF APPLICATION BASED ON ADVERSE AGENCY
  DECISION.  A health and human services agency that regulates a
  person described by Section 531.951 may deny an application for a
  license, including a renewal license or a license that does not
  expire, a listing, or a registration included in that section if:
               (1)  any of the following persons are listed in a record
  maintained under Section 531.952:
                     (A)  the applicant;
                     (B)  a person listed on the application; or
                     (C)  a person determined by the applicable
  regulating agency to be a controlling person of an entity for which
  the license, including a renewal license or a license that does not
  expire, the listing, or the registration is sought; and
               (2)  the agency's action that resulted in the person
  being listed in a record maintained under Section 531.952 is based
  on:
                     (A)  an act or omission that resulted in physical
  or mental harm to an individual in the care of the applicant or
  person;
                     (B)  a threat to the health, safety, or well-being
  of an individual in the care of the applicant or person;
                     (C)  the physical, mental, or financial
  exploitation of an individual in the care of the applicant or
  person; or
                     (D)  a determination by the agency that the
  applicant or person has committed an act or omission that renders
  the applicant unqualified or unfit to fulfill the obligations of
  the license, listing, or registration.
         Sec. 531.954.  REQUIRED APPLICATION INFORMATION. An
  applicant submitting an initial or renewal application for a
  license, including a renewal license or a license that does not
  expire, a listing, or a registration described under Section
  531.951 must include with the application a written statement of:
               (1)  the name of any person who is or will be a
  controlling person, as determined by the applicable agency
  regulating the person, of the entity for which the license,
  listing, or registration is sought; and
               (2)  any other relevant information required by
  executive commissioner rule.
         SECTION 2.  (a)  Not later than March 1, 2012, the executive
  commissioner of the Health and Human Services Commission shall
  adopt the rules necessary to implement Subchapter W, Chapter 531,
  Government Code, as added by this Act.
         (b)  Notwithstanding Section 531.952, Government Code, as
  added by this Act, a health and human services agency is not
  required to maintain the records as required under that section
  until March 1, 2012.
         SECTION 3.  This Act takes effect September 1, 2011.
 
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