SB699 - Relating to the licensing and regulation of inpatient rehabilitation facilities; imposing fees; providing civil and administrative penalties; creating criminal offenses.

  89R639 MPF-D     By: West S.B. No. 699       A BILL TO BE ENTITLED   AN ACT   relating to the licensing and regulation of inpatient   rehabilitation facilities; imposing fees; providing civil and   administrative penalties; creating criminal offenses.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  This Act shall be known as the Eddie Bernice   Johnson Inpatient Rehabilitation Facility Regulatory Act of 2025.          SECTION 2.  Section 166.004(a), Health and Safety Code, is   amended to read as follows:          (a)  In this section, "health care provider" means:                (1)  a hospital;                (2)  an institution licensed under Chapter 242,   including a skilled nursing facility;                (3)  a home and community support services agency;                (4)  an assisted living facility; [ and ]                (5)  a special care facility ; and                 (6)     an inpatient rehabilitation facility licensed   under Chapter 260E .          SECTION 3.  Section 241.003(15), Health and Safety Code, is   amended to read as follows:                (15)  "Special hospital" means an establishment , other   than an inpatient rehabilitation facility licensed under Chapter   260E, that:                      (A)  offers services, facilities, and beds for use   for more than 24 hours for two or more unrelated individuals who are   regularly admitted, treated, and discharged and who require   services more intensive than room, board, personal services, and   general nursing care;                      (B)  has clinical laboratory facilities,   diagnostic X-ray facilities, treatment facilities, or other   definitive medical treatment;                      (C)  has a medical staff in regular attendance;   and                      (D)  maintains records of the clinical work   performed for each patient.          SECTION 4.  Section 260A.001(5), Health and Safety Code, is   amended to read as follows:                (5)  "Facility" means:                      (A)  an institution as that term is defined by   Section 242.002;                      (B)  an assisted living facility as that term is   defined by Section 247.002; [ and ]                      (C)  a prescribed pediatric extended care center   as that term is defined by Section 248A.001 ; and                       (D)     an inpatient rehabilitation facility   licensed under Chapter 260E .          SECTION 5.  Subtitle B, Title 4, Health and Safety Code, is   amended by adding Chapter 260E to read as follows:   CHAPTER 260E.   INPATIENT REHABILITATION FACILITIES   SUBCHAPTER A.   GENERAL PROVISIONS           Sec. 260E.0101.  DEFINITIONS. In this chapter:                 (1)     "Assisted living facility" means a facility   licensed under Chapter 247.                 (2)     "Commission" means the Health and Human Services   Commission.                 (3)     "Controlling person" means a person described by   Section 260E.0102.                 (4)     "Executive commissioner" means the executive   commissioner of the commission.                 (5)     "Hospital" means a hospital licensed under Chapter   241.                 (6)     "Inpatient rehabilitation facility" means a   freestanding establishment or unit within an acute care hospital or   assisted living facility that primarily provides an intensive   rehabilitation program for patients and has the capacity to provide   three hours of intense rehabilitation services per day to patients   admitted to the facility.           Sec.   260E.0102.     CONTROLLING PERSON. (a)   A person is a   controlling person of an inpatient rehabilitation facility if the   person has the ability, acting alone or in concert with others, to   directly or indirectly influence, direct, or cause the direction of   the management, expenditure of money, or policies of the facility   or other person affiliated with the facility.           (b)     For purposes of this chapter, "controlling person"   includes:                 (1)     a management company, landlord, or other business   entity that operates, or enters into a contract with another person   for the operation of, an inpatient rehabilitation facility;                 (2)     any person who is a controlling person of a   management company or other business entity that operates the   facility or enters into a contract with another person for the   operation of the facility; and                 (3)     any other individual who, because of a personal,   familial, or other relationship with the owner, manager, landlord,   tenant, or health care provider of the facility, is in a position of   actual control or authority with respect to the facility, without   regard to whether the individual is formally named as an owner,   manager, director, officer, provider, consultant, contractor, or   employee of the facility.           (c)     Notwithstanding this section, for purposes of this   chapter, a controlling person of an inpatient rehabilitation   facility or of a management company or other business entity   described by Subsection (b)(1) that is a publicly traded   corporation or is controlled by a publicly traded corporation means   an officer or director of the corporation. The term does not   include a shareholder or lender of the corporation.           (d)     A controlling person described by Subsection (b)(3)   does not include an individual, including an employee, lender,   secured creditor, or landlord, who does not exercise any influence   or control, whether formal or actual, over the operation of an   inpatient rehabilitation facility.           (e)     The executive commissioner may adopt rules to define the   ownership interests and other relationships that qualify a person   as a controlling person of an inpatient rehabilitation facility.           Sec.   260E.0103.     ADMISSIBILITY OF CERTAIN EVIDENCE IN CIVIL   ACTIONS. (a)   The following information is not admissible as   evidence in a civil action:                 (1)     a commission determination that an inpatient   rehabilitation facility is in violation of this chapter or a rule   adopted under this chapter; or                 (2)     the assessment against or payment by the facility   of a penalty assessed under this chapter.           (b)     This section does not apply in an enforcement action in   which this state or an agency or political subdivision of this state   is a party.           (c)     Notwithstanding this section, evidence described by   Subsection (a) is admissible as evidence in a civil action only if:                 (1)     the evidence relates to a material violation of   this chapter or a rule adopted under this chapter or assessment of a   monetary penalty with respect to:                       (A)     the particular incident and the particular   individual whose personal injury is the basis of the civil action   claim; or                       (B)     a commission determination directly   involving substantially similar conduct that occurred at the   inpatient rehabilitation facility in the year preceding the date of   the particular incident on which the civil action claim is based;                 (2)     the evidence of a material violation has been   affirmed by a final adjudicated and unappealable commission order   after formal appeal; and                 (3)     the record is otherwise admissible under the Texas   Rules of Evidence.   SUBCHAPTER B.   LICENSING, FEES, AND INSPECTIONS           Sec.   260E.0201.     LICENSE REQUIRED. A person, acting   severally or jointly with any other person, may not establish,   conduct, or maintain an inpatient rehabilitation facility in this   state unless the person holds a license issued under this chapter.           Sec.   260E.0202.     APPLICATION FOR LICENSE OR LICENSE RENEWAL.   (a)   An applicant for a license or license renewal shall submit to   the commission in the form and manner the commission requires a   complete application accompanied by the license fee.           (b)     An applicant for a license or license renewal shall   provide with the application evidence that affirmatively   establishes the applicant's ability to comply with:                 (1)     minimum standards of medical care, rehabilitation   care, nursing care, and financial condition; and                 (2)  any other applicable state or federal standards.           (c)     In reviewing an application under this section, the   commission shall evaluate the background and qualifications of:                 (1)  the applicant;                 (2)     a partner, officer, director, or managing employee   of the applicant;                 (3)     a person who owns or who controls the owner of the   premises in which the inpatient rehabilitation facility operates or   is to operate; and                 (4)     a controlling person with respect to the inpatient   rehabilitation facility for which the application is submitted.           (d)     For purposes of the evaluation required by Subsection   (c), the commission shall require an applicant to file a sworn   affidavit of a satisfactory compliance history and any other   information the commission requires to substantiate a satisfactory   compliance history relating to each inpatient rehabilitation   facility the applicant or a person described by Subsection (c)   operated in this state or outside of this state at any time   preceding the date the application is submitted. The executive   commissioner by rule shall determine the requirements for a   satisfactory compliance history. The commission may:                 (1)     consider and evaluate the compliance history of   the applicant and each person described by Subsection (c) for any   period during which the applicant or person operated an inpatient   r [Text truncated for display. Full text available on LegiScan.]