83R16952 CAE-F
 
  By: Menendez H.B. No. 33
 
  Substitute the following for H.B. No. 33:
 
  By:  Raymond C.S.H.B. No. 33
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to alternative methods of dispute resolution in certain
  disputes between the Department of Aging and Disability Services
  and an assisted living facility licensed by the department.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 247.051, Health and Safety Code, is
  amended to read as follows:
         Sec. 247.051.  INFORMAL DISPUTE RESOLUTION. (a) The Health
  and Human Services Commission by rule shall establish an informal
  dispute resolution process to address disputes between a facility
  and the department concerning a statement of violations prepared by
  the department in accordance with this section. The process must
  provide for adjudication by an appropriate disinterested person of
  disputes relating to a statement of violations [a proposed
  enforcement action or related proceeding under this chapter]. The
  informal dispute resolution process must require:
               (1)  the assisted living facility to request informal
  dispute resolution not later than the 10th day after the date of
  notification by the department of the violation of a standard or
  standards;
               (2)  the Health and Human Services Commission to
  complete the process not later than the 90th [30th] day after the
  date of receipt of a request from the assisted living facility for
  informal dispute resolution; [and]
               (3)  that, not later than the 10th business day after
  the date an assisted living facility requests an informal dispute
  resolution, the department forward to the assisted living facility
  a copy of all information that is referred to in the disputed
  statement of violations or on which a citation is based in
  connection with the survey, inspection, investigation, or other
  visit, excluding:
                     (A)  the name of any complainant, witness, or
  informant;
                     (B)  any information that would reasonably lead to
  the identification of a complainant, witness, or informant;
                     (C)  information obtained from or contained in the
  records of the facility;
                     (D)  information that is publicly available; or
                     (E)  information that is confidential by law;
               (4)  the Health and Human Services Commission to give
  full consideration to all factual arguments raised during the
  informal dispute resolution process that:
                     (A)  are supported by references to specific
  information that the facility or department relies on to dispute or
  support findings in the statement of violations; and
                     (B)  are provided by the proponent of the argument
  to the Health and Human Services Commission and the opposing party;
               (5)  that informal dispute resolution staff give full
  consideration to the information provided by the assisted living
  facility and the department;
               (6)  that ex parte communications concerning the
  substance of any argument relating to a survey, inspection,
  investigation, visit, or statement of violations under
  consideration not occur between the informal dispute resolution
  staff and the assisted living facility or the department; and
               (7)  that the assisted living facility and the
  department be given a reasonable opportunity to submit arguments
  and information supporting the position of the assisted living
  facility or the department and to respond to arguments and
  information presented against them.
         (b)  [any individual representing an assisted living
  facility in an informal dispute resolution process to register with
  the Health and Human Services Commission and disclose the
  following:
                     [(A)     the individual's employment history during
  the preceding five years, including employment in regulatory
  agencies of this state and other states;
                     [(B)     ownership, including the identity of the
  controlling person or persons, of the assisted living facility the
  individual is representing before the Health and Human Services
  Commission; and
                     [(C)     the identity of other entities the
  individual represents or has represented before the Health and
  Human Services Commission during the preceding 24 months.
         [(b)     The Health and Human Services Commission shall adopt
  rules to adjudicate claims in contested cases.
         [(c)]  The Health and Human Services Commission may not
  delegate its responsibility to administer the informal dispute
  resolution process established by this section to another state
  agency.
         (c)  An assisted living facility requesting an informal
  dispute resolution under this section must reimburse the department
  for any costs associated with the department's preparation,
  copying, and delivery of information requested by the facility.
         (d)  A statement of violations prepared by the department
  following a survey, inspection, investigation, or visit is
  confidential pending the outcome of the informal dispute resolution
  process. Information concerning the outcome of a survey,
  inspection, investigation, or visit may be posted on any website
  maintained by the department while the dispute is pending if the
  posting clearly notes each finding that is in dispute.
         SECTION 2.  Chapter 247, Health and Safety Code, is amended
  by adding Subchapter E to read as follows:
  SUBCHAPTER E. ARBITRATION
         Sec. 247.081.  SCOPE OF SUBCHAPTER. This subchapter applies
  to any dispute between a facility licensed under this chapter and
  the department relating to:
               (1)  renewal of a license under Section 247.023;
               (2)  suspension, revocation, or denial of a license
  under Section 247.041;
               (3)  assessment of a civil penalty under Section
  247.045; or
               (4)  assessment of an administrative penalty under
  Section 247.0451.
         Sec. 247.082.  ELECTION OF ARBITRATION. (a) Except as
  provided by Subsection (d), an affected facility may elect binding
  arbitration of any dispute to which this subchapter applies.
  Arbitration under this subchapter is an alternative to a contested
  case hearing or to a judicial proceeding relating to the assessment
  of a civil penalty.
         (b)  An affected facility may elect arbitration under this
  subchapter by filing the election with the court in which the
  lawsuit is pending and sending notice of the election to the
  department and the office of the attorney general. The election
  must be filed not later than the 10th day after the date on which the
  answer is due or the date on which the answer is filed, whichever is
  earlier. If a civil penalty is requested after the initial filing of
  a Section 242.094 action through the filing of an amended or
  supplemental pleading, an affected facility must elect arbitration
  not later than the 10th day after the date on which the amended or
  supplemental pleading is served on the affected facility or the
  facility's counsel.
         (c)  The department may elect arbitration under this
  subchapter by filing the election with the court in which the
  lawsuit is pending and by notifying the facility of the election not
  later than the date on which the facility may elect arbitration
  under Subsection (b).
         (d)  Arbitration may not be used to resolve a dispute related
  to an affected facility that has had an arbitration award levied
  against it in the previous five years.
         (e)  If arbitration is not permitted under this subchapter or
  the election of arbitration is not timely filed:
               (1)  the court shall dismiss the arbitration election
  and retain jurisdiction of the lawsuit; and
               (2)  the State Office of Administrative Hearings shall
  dismiss the arbitration and does not have jurisdiction over the
  lawsuit.
         (f)  An election to engage in arbitration under this
  subchapter is irrevocable and binding on the facility and the
  department.
         Sec. 247.083.  ARBITRATION PROCEDURES. (a)  The arbitration
  shall be conducted by an arbitrator.
         (b)  The arbitration and the appointment of the arbitrator
  shall be conducted in accordance with rules adopted by the chief
  administrative law judge of the State Office of Administrative
  Hearings. Before adopting rules under this subsection, the chief
  administrative law judge shall consult with the department and
  shall consider appropriate rules developed by any nationally
  recognized association that performs arbitration services.
         (c)  The party that elects arbitration shall pay the cost of
  the arbitration. The total fees and expenses paid for an arbitrator
  for a day may not exceed $1,000.
         (d)  The State Office of Administrative Hearings may
  designate a nationally recognized association that performs
  arbitration services to conduct arbitrations under this subchapter
  and may, after consultation with the department, contract with that
  association for the arbitrations.
         (e)  On request by the department, the attorney general may
  represent the department in the arbitration.
         Sec. 247.084.  ARBITRATOR QUALIFICATIONS. Each arbitrator
  must be on an approved list of a nationally recognized association
  that performs arbitration services or be otherwise qualified as
  provided in the rules adopted under Section 247.083(b).
         Sec. 247.085.  ARBITRATOR SELECTION. The arbitrator shall
  be appointed in accordance with the rules adopted under Section
  247.083(b).
         Sec. 247.086.  ARBITRATOR DUTIES. The arbitrator shall:
               (1)  protect the interests of the department and the
  facility;
               (2)  ensure that all relevant evidence has been
  disclosed to the arbitrator, department, and facility; and
               (3)  render an order consistent with this chapter and
  the rules adopted under this chapter.
         Sec. 247.087.  SCHEDULING OF ARBITRATION. (a)  The
  arbitrator conducting the arbitration shall schedule arbitration
  to be held not later than the 90th day after the date the arbitrator
  is selected and shall notify the department and the facility of the
  scheduled date.
         (b)  The arbitrator may grant a continuance of the
  arbitration at the request of the department or facility. The
  arbitrator may not unreasonably deny a request for a continuance.
         Sec. 247.088.  EXCHANGE AND FILING OF INFORMATION. Not
  later than the seventh day before the first day of arbitration, the
  department and the facility shall exchange and file with the
  arbitrator:
               (1)  all documentary evidence not previously exchanged
  and filed that is relevant to the dispute; and
               (2)  information relating to a proposed resolution of
  the dispute.
         Sec. 247.089.  ATTENDANCE. (a)  The arbitrator may proceed
  in the absence of any party or representative of a party who, after
  notice of the proceeding, fails to be present or to obtain a
  postponement.
         (b)  An arbitrator may not make an order solely on the
  default of a party and shall require the party who is present to
  submit evidence, as required by the arbitrator, before making an
  award.
         Sec. 247.090.  TESTIMONY; RECORD. (a)  The arbitrator may
  require witnesses to testify under oath and shall require testimony
  under oath if requested by the department or the facility.
         (b)  The department shall make an electronic recording of the
  proceeding.
         (c)  An official stenographic record of the proceeding is not
  required, but the department or the facility may make a
  stenographic record. The party that makes the stenographic record
  shall pay the expense of having the record made.
         Sec. 247.091.  EVIDENCE. (a)  The department or the facility
  may offer evidence and shall produce additional evidence as the
  arbitrator considers necessary to understand and resolve the
  dispute.
         (b)  The arbitrator is the judge of the relevance and
  materiality of the evidence offered. Strict conformity to rules
  applicable to judicial proceedings is not required.
         Sec. 247.092.  CLOSING STATEMENTS; BRIEFS. The department
  and the facility may present closing statements, but the record
  does not remain open for written briefs unless required by the
  arbitrator.
         Sec. 247.093.  EX PARTE CONTACTS PROHIBITED. (a)  Except as
  provided by Subsection (b), the department and the facility may not
  communicate with an arbitrator other than at an oral hearing unless
  the parties and the arbitrator agree otherwise.
         (b)  Any oral or written communication, other than a
  communication authorized under Subsection (a), from the parties to
  an arbitrator shall be directed to the association that is
  conducting the arbitration or, if there is no association
  conducting the arbitration, to the State Office of Administrative
  Hearings for transmittal to the arbitrator.
         Sec. 247.094.  ORDER. (a)  The arbitrator may enter any
  order that may be entered by the department, board, commissioner,
  or court under this chapter in relation to a dispute described by
  Section 247.081.
         (b)  The arbitrator shall enter the order not later than the
  60th day after the last day of the arbitration.
         (c)  The arbitrator shall base the order on the facts
  established at arbitration, including stipulations of the parties,
  and on the law as properly applied to those facts.
         (d)  The order must:
               (1)  be in writing;
               (2)  be signed and dated by the arbitrator; and
               (3)  include a statement of the arbitrator's decision
  on the contested issues and the department's and facility's
  stipulations on uncontested issues.
         (e)  The arbitrator shall file a copy of the order with the
  department and shall notify the department and the facility in
  writing of the decision.
         Sec. 247.095.  EFFECT OF ORDER. An order of an arbitrator
  under this subchapter is final and binding on all parties. Except
  as provided by Section 247.097, there is no right to appeal.
         Sec. 247.096.  CLERICAL ERROR. For the purpose of
  correcting a clerical error, an arbitrator retains jurisdiction of
  the award until the 20th day after the date of the award.
         Sec. 247.097.  COURT VACATING ORDER. (a)  On a finding
  described by Subsection (b), a court shall:
               (1)  on application of a facility, vacate an
  arbitrator's order with respect to an arbitration conducted at the
  election of the department; or
               (2)  on application of the department, vacate an
  arbitrator's order with respect to an arbitration conducted at the
  election of a facility.
         (b)  A court shall vacate an arbitrator's order under
  Subsection (a) only on a finding that:
               (1)  the order was procured by corruption, fraud, or
  misrepresentation;
               (2)  the decision of the arbitrator was arbitrary or
  capricious and against the weight of the evidence; or
               (3)  the order exceeded the jurisdiction of the
  arbitrator under Section 247.094(a).
         (c)  If the order is vacated, the dispute shall be remanded
  to the department for another arbitration proceeding.
         (d)  A suit to vacate an arbitrator's order must be filed not
  later than the 30th day after:
               (1)  the date of the award; or
               (2)  the date the facility or department knew or should
  have known of a basis for suit under this section, but in no event
  later than the first anniversary of the date of the order.
         (e)  Venue for a suit to vacate an arbitrator's order is in
  the county in which the arbitration was conducted.
         Sec. 247.098.  ENFORCEMENT OF CERTAIN ARBITRATION ORDERS FOR
  CIVIL PENALTIES. (a) This section applies only to a suit for the
  assessment of a civil penalty under Section 247.045 in which
  binding arbitration has been elected under this subchapter as an
  alternative to the judicial proceeding.
         (b)  On application of a party to the suit, the district
  court in which the underlying suit has been filed shall enter a
  judgment in accordance with the arbitrator's order unless, within
  the time limit prescribed by Section 247.097(d)(2), a motion is
  made to the court to vacate the arbitrator's order in accordance
  with Section 247.097.
         (c)  A judgment filed under Subsection (b) is enforceable in
  the same manner as any other judgment of the court. The court may
  award costs for an application made under Subsection (b) and for any
  proceedings held after the application is made.
         (d)  Subsection (b) does not affect the right of a party, in
  accordance with Section 247.097 and within the time limit
  prescribed by Section 247.097(d)(2), if applicable, to make a
  motion to the court or initiate a proceeding in court as provided by
  law to vacate the arbitrator's order or to vacate a judgment of the
  court entered in accordance with the arbitrator's order.
         SECTION 3.  Section 531.058, Government Code, is amended by
  amending Subsection (a) and adding Subsection (d) to read as
  follows:
         (a)  The commission by rule shall establish an informal
  dispute resolution process in accordance with this section. The
  process must provide for adjudication by an appropriate
  disinterested person of disputes relating to a proposed enforcement
  action or related proceeding of the Texas Department of Human
  Services under Section 32.021(d), Human Resources Code, or Chapter
  242, 247, or 252, Health and Safety Code. The informal dispute
  resolution process must require:
               (1)  an [the] institution or facility to request
  informal dispute resolution not later than the 10th calendar day
  after notification by the department of the violation of a standard
  or standards; and
               (2)  the commission to complete the process not later
  than:
                     (A)  the 30th calendar day after receipt of a
  request from an [the] institution or facility, other than an
  assisted living facility, for informal dispute resolution; or
                     (B)  the 90th calendar day after receipt of a
  request from an assisted living facility for informal dispute
  resolution[; and
               [(3)     any individual representing an institution or
  facility in an informal dispute resolution process to register with
  the commission and disclose the following:
                     [(A)     the individual's employment history during
  the preceding five years, including employment in regulatory
  agencies of this state and other states;
                     [(B)     ownership, including the identity of the
  controlling person or persons, of the institution or facility the
  individual is representing before the commission; and
                     [(C)     the identity of other entities the
  individual represents or has represented before the commission
  during the previous 24 months].
         (d)  The commission shall use a negotiated rulemaking
  process and engage a qualified impartial third party as provided by
  Section 2009.053, with the goal of adopting rules that are fair and
  impartial to all parties not later than January 1, 2015. This
  subsection expires September 1, 2015.
         SECTION 4.  Section 247.051, Health and Safety Code, as
  amended by this Act, and Section 247.081, Health and Safety Code, as
  added by this Act, apply only to disputes described by those
  sections, as amended or added, that occur on or after the effective
  date of this Act. A dispute that occurs before the effective date
  of this Act is governed by the law applicable to the dispute
  immediately before the effective date of this Act, and that law is
  continued in effect for that purpose.
         SECTION 5.  This Act takes effect September 1, 2013.