S.B. No. 1318

	AN ACT
	relating to the regulation of adult day-care facilities and certain
	long-term care facilities, including the establishment of late fees
	and changes to administrative penalties, and relating to the office
	of the state long-term care ombudsman.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subsection (m), Section 32.021, Human Resources
	Code, is amended to read as follows:
	(m)  Notwithstanding any provision of law to the contrary,
	the department 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.  The executive commissioner of the Health and Human
	Services Commission by rule shall establish criteria under which
	the requirement to terminate the provider agreement may be waived
	[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.  Subdivision (2), Section 101.051, 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.  Subsection (b), Section 103.006, 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.  Subsection (b), Section 142.006, 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.  Subsection (c), Section 142.009, Health and
	Safety Code, is amended to read as follows:
	(c)  The department or its authorized representative shall
	investigate each complaint received regarding the provision of home
	health, hospice, or personal assistance services, including any
	allegation of abuse, neglect, or exploitation of a child under the
	age of 18, and may, as a part of the investigation:
	(1)  conduct an unannounced survey of a place of
	business, including an inspection of medical and personnel records,
	if the department has reasonable cause to believe that the place of
	business is in violation of this chapter or a rule adopted under
	this chapter;
	(2)  conduct an interview with a recipient of home
	health, hospice, or personal assistance services, which may be
	conducted in the recipient's home if the recipient consents;
	(3)  conduct an interview with a family member of a
	recipient of home health, hospice, or personal assistance services
	who is deceased or other person who may have knowledge of the care
	received by the deceased recipient of the home health, hospice, or
	personal assistance services; or
	(4)  interview a physician or other health care
	practitioner, including a member of the personnel of a home and
	community support services agency, who cares for a recipient of
	home health, hospice, or personal assistance services.
	SECTION 7.  Subsection (a), Section 142.010, 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 8.  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 9.  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 10.  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 11.  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 12.  Subsection (a), Section 242.066, 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 13.  Subsection (b), Section 242.0665, 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 14.  Subsections (a) and (b), Section 247.023,
	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 15.  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 is
	subject to a late fee in accordance with department rules.
	SECTION 16.  Subsection (a), Section 247.0451, 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 17.  Subsection (b), Section 247.0452, 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 18.  Section 247.069, Health and Safety Code, is
	amended to read as follows:
	Sec. 247.069.  CONSUMER CHOICE FOR ASSISTED LIVING IN
	COMMUNITY CARE PROGRAMS.  The community based alternatives program
	and the residential care programs, which provide an assisted living
	option to consumers, shall provide a consumer the opportunity to
	choose an assisted living facility that meets the department's
	licensing standards relating to facility construction without
	regard to the number of units in the facility, if[:
	[(1)]  consumers are advised of all other community
	care options[; and
	[(2)  the facility:
	[(A)     has never been licensed by the department as
	anything other than an assisted living facility;
	[(B)     is not physically connected to a skilled
	nursing facility;
	[(C)     was constructed before September 1, 2005;
	and
	[(D)     otherwise meets all other community care
	program standards].
	SECTION 19.  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 is subject to a late fee in accordance with
	department rules.
	SECTION 20.  Subsections (a) and (e), Section 252.065,
	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 Subsections (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 21.  Subdivision (4), Section 253.001, Health and
	Safety Code, is amended to read as follows:
	(4)  "Facility" means:
	(A)  a facility licensed by the department; [or]
	(B)  an adult foster care provider that contracts
	with the department; or
	(C)  a home and community support services agency
	licensed by the department under Chapter 142.
	SECTION 22.  Section 253.008, Health and Safety Code, is
	amended to read as follows:
	Sec. 253.008.  VERIFICATION OF EMPLOYABILITY.  (a)  Before a
	facility[, an agency licensed under Chapter 142,] or a person
	exempt from licensing under Section 142.003(a)(19) may hire an
	employee, the facility[, agency,] or person shall search the
	employee misconduct registry under this chapter and the nurse aide
	registry maintained under the Omnibus Budget Reconciliation Act of
	1987 (Pub. L. No. 100-203) to determine whether the applicant for
	employment is designated in either registry as having abused,
	neglected, or exploited a resident or consumer of a facility or an
	individual receiving services from a facility [an agency licensed
	under Chapter 142] or from a person exempt from licensing under
	Section 142.003(a)(19).
	(b)  A facility[, agency licensed under Chapter 142,] or a
	person exempt from licensing under Section 142.003(a)(19) may not
	employ a person who is listed in either registry as having abused,
	neglected, or exploited a resident or consumer of a facility or an
	individual receiving services from a facility [an agency licensed
	under Chapter 142] or from a person exempt from licensing under
	Section 142.003(a)(19).
	SECTION 23.  Subsection (a), Section 253.009, Health and
	Safety Code, is amended to read as follows:
	(a)  Each facility[, each agency licensed under Chapter
	142,] and each person exempt from licensing under Section
	142.003(a)(19) shall notify its employees in a manner prescribed by
	the department:
	(1)  about the employee misconduct registry; and
	(2)  that an employee may not be employed if the
	employee is listed in the registry.
	SECTION 24.  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 25.  (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 26.  This Act takes effect September 1, 2007.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1318 passed the Senate on
	April 26, 2007, by the following vote: Yeas 31, Nays 0; and that
	the Senate concurred in House amendments on May 17, 2007, by the
	following vote: Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1318 passed the House, with
	amendments, on May 11, 2007, by the following vote: Yeas 130,
	Nays 0, two present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor