1-1                                   AN ACT
 1-2     relating to sanctions imposed against, and confidential information
 1-3     regarding, certain facilities regulated by the Texas Department of
 1-4     Health.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 241.051, Health and Safety Code, is
 1-7     amended by adding Subsection (f) to read as follows:
 1-8           (f)  Information obtained or compiled by the department in
 1-9     connection with a complaint or investigation that is confidential
1-10     by law remains confidential and is not subject to disclosure under
1-11     Chapter 552, Government Code.
1-12           SECTION 2.  Section 241.053, Health and Safety Code, is
1-13     amended to read as follows:
1-14           Sec. 241.053.  DENIAL OF APPLICATION, SUSPENSION, REVOCATION,
1-15     PROBATION, OR REISSUANCE OF LICENSE.  (a)  The department, after
1-16     providing notice and an opportunity for a hearing to the applicant
1-17     or license holder, may deny, suspend, or revoke a hospital's
1-18     license if the department finds that the hospital:
1-19                 (1)  failed to comply with:
1-20                       (A)  a provision of this chapter;
1-21                       (B)  a rule adopted under this chapter;
1-22                       (C)  a special license condition;
1-23                       (D)  an order or emergency order by the
1-24     commissioner of health; or
1-25                       (E)  another enforcement procedure permitted
 2-1     under this chapter;
 2-2                 (2)  has a history of noncompliance with the rules
 2-3     adopted under this chapter relating to patient health, safety, and
 2-4     rights which reflects more than nominal noncompliance; or
 2-5                 (3)  has aided, abetted, or permitted the commission of
 2-6     an illegal act.
 2-7           (b)  A hospital whose license is suspended or revoked may
 2-8     apply to the department for the reissuance of a license.  The
 2-9     department may reissue the license if the department determines
2-10     that the hospital has corrected the conditions that led to the
2-11     suspension or revocation of the hospital's license, the initiation
2-12     of enforcement action against the hospital, the assessment of
2-13     administrative penalties, or the issuance of a court order
2-14     enjoining the hospital from violations or assessing civil penalties
2-15     against the hospital.  A hospital whose license is suspended or
2-16     revoked may not admit new patients until the license is reissued.
2-17           (c)  A hospital must apply for reissuance in the form and
2-18     manner required in the rules adopted under this chapter.
2-19           (d)  Administrative hearings required under this section
2-20     shall be conducted under the board's formal hearing rules and the
2-21     contested case provisions of Chapter 2001, Government Code.
2-22           (e)  Judicial review of a final decision by the department is
2-23     by trial de novo in the same manner as a case appealed from the
2-24     justice court to the county court.  The substantial evidence rule
2-25     does not apply.
2-26           (f)  If the department finds that a hospital is in repeated
 3-1     noncompliance under Subsection (a) but that the noncompliance does
 3-2     not endanger public health and safety, the department may schedule
 3-3     the hospital for probation rather than suspending or revoking the
 3-4     hospital's license.  The department shall provide notice to the
 3-5     hospital of the probation and of the items of noncompliance not
 3-6     later than the 10th day before the date the probation period
 3-7     begins.  The department shall designate a period of not less than
 3-8     30 days during which the hospital will remain under probation.
 3-9     During the probation period, the hospital must correct the items
3-10     that were in noncompliance and report the corrections to the
3-11     department for approval.
3-12           (g)  The department may suspend or revoke the license of a
3-13     hospital that does not correct items that were in noncompliance or
3-14     that does not comply with the applicable requirements within the
3-15     applicable probation period.
3-16           SECTION 3.  Section 243.011, Health and Safety Code, is
3-17     amended to read as follows:
3-18           Sec. 243.011.  DENIAL, SUSPENSION, PROBATION, OR REVOCATION
3-19     OF LICENSE.  (a)  The department may deny, suspend, or revoke a
3-20     license for a violation of this chapter or a rule adopted under
3-21     this chapter.
3-22           (b)  The denial, suspension, or revocation of a license by
3-23     the department and the appeal from that action are governed by the
3-24     procedures for a contested case hearing under Chapter 2001,
3-25     Government Code.
3-26           (c)  If the department finds that an ambulatory surgical
 4-1     center is in repeated noncompliance with this chapter or rules
 4-2     adopted under this chapter but that the noncompliance does not
 4-3     endanger public health and safety, the department may schedule the
 4-4     center for probation rather than suspending or revoking the
 4-5     center's license.  The department shall provide notice to the
 4-6     center of the probation and of the items of noncompliance not later
 4-7     than the 10th day before the date the probation period begins.  The
 4-8     department shall designate a period of not less than 30 days during
 4-9     which the center will remain under probation.  During the probation
4-10     period, the center must correct the items that were in
4-11     noncompliance and report the corrections to the department for
4-12     approval.
4-13           (d)  The department may suspend or revoke the license of an
4-14     ambulatory surgical center that does not correct items that were in
4-15     noncompliance or that does not comply with this chapter or the
4-16     rules adopted under this chapter within the applicable probation
4-17     period.
4-18           SECTION 4.  Section 244.011, Health and Safety Code, is
4-19     amended to read as follows:
4-20           Sec. 244.011.  DENIAL, SUSPENSION, PROBATION, OR REVOCATION
4-21     OF LICENSE.  (a)  The department may deny, suspend, or revoke a
4-22     license for:
4-23                 (1)  a violation of this chapter or a rule adopted
4-24     under this chapter; or
4-25                 (2)  a history of continuing noncompliance with this
4-26     chapter or the rules adopted under this chapter.
 5-1           (b)  The denial, suspension, or revocation of a license by
 5-2     the department and the appeal from that action are governed by the
 5-3     procedures for a contested case hearing under Chapter 2001,
 5-4     Government Code.
 5-5           (c)  If the department finds that a birthing center is in
 5-6     repeated noncompliance under Subsection (a) but that the
 5-7     noncompliance does not endanger public health and safety, the
 5-8     department may schedule the center for probation rather than
 5-9     suspending or revoking the center's license.  The department shall
5-10     provide notice to the center of the probation and of the items of
5-11     noncompliance not later than the 10th day before the date the
5-12     probation period begins.  The department shall designate a period
5-13     of not less than 30 days during which the center will remain under
5-14     probation.  During the probation period, the center must correct
5-15     the items that were in noncompliance and report the corrections to
5-16     the department for approval.
5-17           (d)  The department may suspend or revoke the license of a
5-18     birthing center that does not correct items that were in
5-19     noncompliance or that does not comply with the applicable
5-20     requirements within the applicable probation period.
5-21           SECTION 5.  Section 245.012, Health and Safety Code, is
5-22     amended to read as follows:
5-23           Sec. 245.012.  DENIAL, SUSPENSION, PROBATION, OR REVOCATION
5-24     OF LICENSE.  (a)  The department may deny, suspend, or revoke a
5-25     license for a violation of this chapter or a rule adopted under
5-26     this chapter.
 6-1           (b)  The denial, suspension, or revocation of a license by
 6-2     the department and the appeal from that action are governed by the
 6-3     procedures for a contested case hearing under Chapter 2001,
 6-4     Government Code.
 6-5           (c)  The department may immediately suspend or revoke a
 6-6     license when the health and safety of persons are threatened.  If
 6-7     the department issues an order of immediate suspension or
 6-8     revocation, the department shall immediately give the chief
 6-9     executive officer of the abortion facility adequate notice of the
6-10     action and the procedure governing appeal of the action.  A person
6-11     whose license is suspended or revoked under this subsection is
6-12     entitled to a hearing not later than the 14th day after the
6-13     effective date of the suspension or revocation.
6-14           (d)  If the department finds that an abortion facility is in
6-15     repeated noncompliance with this chapter or rules adopted under
6-16     this chapter but that the noncompliance does not endanger public
6-17     health and safety, the department may schedule the facility for
6-18     probation rather than suspending or revoking the facility's
6-19     license.  The department shall provide notice to the facility of
6-20     the probation and of the items of noncompliance not later than the
6-21     10th day before the date the probation period begins.  The
6-22     department shall designate a period of not less than 30 days during
6-23     which the facility will remain under probation.  During the
6-24     probation period, the facility must correct the items that were in
6-25     noncompliance and report the corrections to the department for
6-26     approval.
 7-1           (e)  The department may suspend or revoke the license of an
 7-2     abortion facility that does not correct items that were in
 7-3     noncompliance or that does not comply with this chapter or the
 7-4     rules adopted under this chapter within the applicable probation
 7-5     period.
 7-6           SECTION 6.  Section 248.051, Health and Safety Code, is
 7-7     amended to read as follows:
 7-8           Sec. 248.051.  [LICENSE] DENIAL, SUSPENSION, PROBATION, OR
 7-9     REVOCATION OF LICENSE.  (a)  The department may deny, revoke, or
7-10     suspend a license issued under this chapter for a violation of this
7-11     chapter or the rules adopted under this chapter.
7-12           (b)  Except as provided by Section 248.052, the procedures by
7-13     which the department denies, revokes, or suspends a license and by
7-14     which those actions are appealed are governed by the department's
7-15     rules for a contested case hearing and by Chapter 2001, Government
7-16     Code.
7-17           (c)  If the department finds that a special care facility is
7-18     in repeated noncompliance with this chapter or rules adopted under
7-19     this chapter but that the noncompliance does not endanger public
7-20     health and safety, the department may schedule the facility for
7-21     probation rather than suspending or revoking the facility's
7-22     license.  The department shall provide notice to the facility of
7-23     the probation and of the items of noncompliance not later than the
7-24     10th day before the date the probation period begins.  The
7-25     department shall designate a period of not less than 30 days during
7-26     which the facility will remain under probation.  During the
 8-1     probation period, the facility must correct the items that were in
 8-2     noncompliance and report the corrections to the department for
 8-3     approval.
 8-4           (d)  The department may suspend or revoke the license of a
 8-5     special care facility that does not correct items that were in
 8-6     noncompliance or that does not comply with this chapter or the
 8-7     rules adopted under this chapter within the applicable probation
 8-8     period.
 8-9           SECTION 7.  Section 251.062, Health and Safety Code, is
8-10     amended to read as follows:
8-11           Sec. 251.062.  DENIAL, SUSPENSION, PROBATION, OR REVOCATION
8-12     OF LICENSE.  (a)  The department may deny, suspend, or revoke a
8-13     license issued under this chapter for a violation of this chapter
8-14     or a rule adopted under this chapter.
8-15           (b)  The denial, suspension, or revocation of a license by
8-16     the department and the appeal from that action are governed by the
8-17     procedures for a contested case hearing under Chapter 2001,
8-18     Government Code.
8-19           (c)  If the department finds that an end stage renal disease
8-20     facility is in repeated noncompliance with this chapter or rules
8-21     adopted under this chapter but that the noncompliance does not
8-22     endanger public health and safety, the department may schedule the
8-23     facility for probation rather than suspending or revoking the
8-24     facility's license.  The department shall provide notice to the
8-25     facility of the probation and of the items of noncompliance not
8-26     later than the 10th day before the date the probation period
 9-1     begins.  The department shall designate a period of not less than
 9-2     30 days during which the facility will remain under probation.
 9-3     During the probation period, the facility must correct the items
 9-4     that were in noncompliance and report the corrections to the
 9-5     department for approval.
 9-6           (d)  The department may suspend or revoke the license of an
 9-7     end stage renal disease facility that does not correct items that
 9-8     were in noncompliance or that does not comply with this chapter or
 9-9     the rules adopted under this chapter within the applicable
9-10     probation period.
9-11           SECTION 8.  Subchapter E, Chapter 251, Health and Safety
9-12     Code, is amended by adding Section 251.0621 to read as follows:
9-13           Sec. 251.0621.  EMERGENCY SUSPENSION.  The department may
9-14     issue an emergency order to suspend a license issued under this
9-15     chapter if the department has reasonable cause to believe that the
9-16     conduct of a license holder creates an immediate danger to the
9-17     public health and safety.  An emergency suspension is effective
9-18     immediately without a hearing on notice to the license holder.  On
9-19     written request of the license holder, the department shall conduct
9-20     a hearing not earlier than the 10th day or later than the 30th day
9-21     after the date the hearing request is received to determine if the
9-22     emergency suspension is to be continued, modified, or rescinded.
9-23     The hearing and any appeal are governed by the department's rules
9-24     for a contested case hearing and Chapter 2001, Government Code.
9-25           SECTION 9.  Section 577.013, Health and Safety Code, is
9-26     amended by adding Subsection (f) to read as follows:
 10-1          (f)  Information obtained or compiled by the department in
 10-2    connection with a complaint or investigation that is confidential
 10-3    by law remains confidential and is not subject to disclosure under
 10-4    Chapter 552, Government Code.
 10-5          SECTION 10.  Section 577.016, Health and Safety Code, is
 10-6    amended to read as follows:
 10-7          Sec. 577.016.  DENIAL, SUSPENSION, PROBATION, OR REVOCATION
 10-8    OF LICENSE.  (a)  The department may deny, suspend, or revoke a
 10-9    license if the department finds that the applicant or licensee has
10-10    substantially failed to comply with:
10-11                (1)  department rules;
10-12                (2)  this subtitle; or
10-13                (3)  Chapters 104 and 225.
10-14          (b)  The department must give the applicant or license holder
10-15    notice of the proposed action, an opportunity to demonstrate or
10-16    achieve compliance, and an opportunity for a hearing before taking
10-17    the action.
10-18          (c)  The department may suspend a license for 10 days pending
10-19    a hearing if after an investigation the department finds that there
10-20    is an immediate threat to the health or safety of the patients or
10-21    employees of a private mental hospital or mental health facility
10-22    licensed under this chapter.  The department may issue necessary
10-23    orders for the patients' welfare.
10-24          (d)  The department shall send the license holder or
10-25    applicant a copy of the department's decision by registered mail.
10-26    If the department denies, suspends, or revokes a license, the
 11-1    department shall include the findings and conclusions on which the
 11-2    department based its decision.
 11-3          (e)  A license holder whose license is suspended or revoked
 11-4    may not admit new patients until the license is reissued.
 11-5          (f)  If the department finds that a private mental hospital
 11-6    or mental health facility is in repeated noncompliance under
 11-7    Subsection (a) but that the noncompliance does not endanger public
 11-8    health and safety, the department may schedule the hospital or
 11-9    facility for probation rather than suspending or revoking the
11-10    license of the hospital or facility.  The department shall provide
11-11    notice to the hospital or facility of the probation and of the
11-12    items of noncompliance not later than the 10th day before the date
11-13    the probation period begins.  The department shall designate a
11-14    period of not less than 30 days during which the hospital or
11-15    facility will remain under probation.  During the probation period,
11-16    the hospital or facility must correct the items that were in
11-17    noncompliance and report the corrections to the department for
11-18    approval.
11-19          (g)  The department may suspend or revoke the license of a
11-20    private mental hospital or mental health facility that does not
11-21    comply with the applicable requirements within the applicable
11-22    probation period.
11-23          SECTION 11.  Subsections (d) and (e), Section 241.051, and
11-24    Subsections (d) and (e), Section 577.013, Health and Safety Code,
11-25    are repealed.
11-26          SECTION 12.  (a)  Except as provided by this section, this
 12-1    Act takes effect immediately if it receives a vote of two-thirds of
 12-2    all the members elected to each house, as provided by Section 39,
 12-3    Article III, Texas Constitution.  If this Act does not receive the
 12-4    vote necessary for immediate effect, this Act takes effect
 12-5    September 1, 2001.
 12-6          (b)  The changes in law made by this Act to Sections 241.051
 12-7    and 577.013, Health and Safety Code, take effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 279 passed the Senate on
         March 1, 2001, by the following vote:  Yeas 30, Nays 0, one present
         not voting; and that the Senate concurred in House amendment on
         May 26, 2001, by the following vote:  Yeas 30, Nays 0, one present
         not voting.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 279 passed the House, with
         amendment, on May 23, 2001, by the following vote:  Yeas 145,
         Nays 0, two present not voting.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor