SB1342 - Relating to the regulation of psychiatric residential treatment facilities and Medicaid reimbursement for the provision of treatment by those facilities; requiring an occupational license.

  89R6114 RAL-F     By: Johnson S.B. No. 1342       A BILL TO BE ENTITLED   AN ACT   relating to the regulation of psychiatric residential treatment   facilities and Medicaid reimbursement for the provision of   treatment by those facilities; requiring an occupational license.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 577.002(b), Health and Safety Code, is   amended to read as follows:          (b)  This chapter does not apply to a psychiatric residential   [ youth ] treatment facility licensed [ certified ] under Chapter   577A.          SECTION 2.  The heading to Chapter 577A, Health and Safety   Code, is amended to read as follows:   CHAPTER 577A. PSYCHIATRIC RESIDENTIAL [ YOUTH ] TREATMENT   FACILITIES          SECTION 3.  Section 577A.001(3), Health and Safety Code, is   amended to read as follows:                (3)  "Psychiatric residential [ youth ] treatment   facility" means a private facility that provides psychiatric health   treatments and services in a residential, nonhospital setting   exclusively to individuals who are 21 years of age or younger [ and   is licensed as a general residential operation under Chapter 42,   Human Resources Code ]. The term includes a facility that provides   room and board.          SECTION 4.  The heading to Subchapter B, Chapter 577A,   Health and Safety Code, is amended to read as follows:   SUBCHAPTER B. LICENSURE [ CERTIFICATION ], FEES, AND INSPECTIONS          SECTION 5.  Section 577A.051, Health and Safety Code, is   amended to read as follows:          Sec. 577A.051.   LICENSE REQUIRED [ VOLUNTARY QUALITY   STANDARDS CERTIFICATION ]. A person may not operate a psychiatric   residential treatment facility without a license issued by the   commission [ The commission shall, using existing resources to the   extent feasible, develop and implement a voluntary quality   standards certification process to certify a psychiatric   residential youth treatment facility that meets standards for   certification ] under this chapter.          SECTION 6.  The heading to Section 577A.052, Health and   Safety Code, is amended to read as follows:          Sec. 577A.052.   LICENSE [ CERTIFICATE ] APPLICATION.          SECTION 7.  Section 577A.052(a), Health and Safety Code, is   amended to read as follows:          (a)  To obtain a license [ certificate ] under this chapter, an   applicant must submit to the commission an application in the form   and manner prescribed by the commission.          SECTION 8.  Section 577A.053, Health and Safety Code, is   amended to read as follows:          Sec. 577A.053.  FEES. The executive commissioner by rule   shall establish a nonrefundable license [ certificate ] application   fee and a nonrefundable license [ certificate ] renewal fee in   amounts necessary to cover the costs of administering this chapter.          SECTION 9.  Section 577A.054, Health and Safety Code, is   amended to read as follows:          Sec. 577A.054.  ISSUANCE AND RENEWAL OF LICENSE   [ CERTIFICATE ]. (a) The commission shall issue a license   [ certificate ] to an applicant if on inspection and investigation   the commission determines the applicant meets the requirements of   this chapter and commission rules. [ The commission may not issue to   an applicant a certificate under this chapter unless the applicant   is licensed as a general residential operation under Chapter 42,   Human Resources Code. ]          (b)  A license [ certificate ] issued under this chapter   expires on the second anniversary of the date the license   [ certificate ] is issued or renewed.          (c)  The commission shall renew a license [ certificate ] if:                (1)  the license [ certificate ] holder submits to the   commission a fee established by the executive commissioner under   Section 577A.053; and                (2)  on inspection and investigation the commission   determines the license [ certificate ] holder meets the requirements   of this chapter and commission rules.          SECTION 10.  Section 577A.055, Health and Safety Code, is   amended to read as follows:          Sec. 577A.055.  INSPECTIONS. In addition to the inspections   required under Section 577A.054, the commission shall conduct an   inspection not later than the first anniversary of the date a   license [ certificate ] is issued or renewed to ensure the license   [ certificate ] holder remains in compliance with the requirements of   this chapter and commission rules.          SECTION 11.  The heading to Subchapter C, Chapter 577A,   Health and Safety Code, is amended to read as follows:   SUBCHAPTER C. REGULATION OF LICENSED [ CERTIFIED ] PSYCHIATRIC   RESIDENTIAL [ YOUTH ] TREATMENT FACILITIES          SECTION 12.  Section 577A.101, Health and Safety Code, is   amended to read as follows:          Sec. 577A.101.  MINIMUM STANDARDS. The executive   commissioner by rule shall establish minimum standards for the   licensing [ certification ] of psychiatric residential [ youth ]   treatment facilities under this chapter. The minimum standards   must require a facility to:                (1)  obtain accreditation by The Joint Commission, the   Commission on Accreditation of Rehabilitation Facilities, the   Council on Accreditation, or another accrediting organization   approved by the commission; [ and ]                (2)  provide and prescribe guidelines for the provision   of the following activities, treatments, and services:                      (A)  development and implementation of individual   plans of care, including the provision of services provided by a   licensed psychiatrist or physician to develop individual plans of   care;                      (B)  individual therapy;                      (C)  family engagement activities;                      (D)  consultation services with qualified   professionals, including case managers, primary care   professionals, community-based mental health providers, school   staff, and other support planners;                      (E)  24-hour nursing services; and                      (F)  direct care and supervision services,   supportive services for daily living and safety, and positive   behavior management services ;                 (3)     satisfy federal requirements for a psychiatric   residential treatment facility under 42 C.F.R. Section 441.151 et   seq. and 42 C.F.R. Section 483.350 et seq.; and                 (4)     satisfy all requirements to be licensed as a   general residential operation under Chapter 42, Human Resources   Code, and comply with rules adopted under that chapter .          SECTION 13.  Section 577A.102, Health and Safety Code, is   amended to read as follows:          Sec. 577A.102.  ADMISSION CRITERIA. A facility licensed   [ certified ] under this chapter may not admit or provide treatments   or services to an individual unless the individual:                (1)  is 21 years of age or younger;                (2)  has been diagnosed with a severe emotional   disturbance by a licensed mental health professional;                (3)  requires residential psychiatric treatment under   the direction of a licensed physician to improve the individual's   condition; and                (4)  was referred for treatments or services in a   psychiatric residential [ youth ] treatment facility by a licensed   mental health professional.          SECTION 14.  Section 577A.151, Health and Safety Code, is   amended to read as follows:          Sec. 577A.151.  PENALTIES. A facility licensed [ certified ]   under this chapter is subject to a civil penalty under Section   571.023 or an administrative penalty under Section 571.025, as   applicable, for a violation of this chapter or a rule adopted under   this chapter.          SECTION 15.  Section 32.024, Human Resources Code, is   amended by adding Subsection (ss) to read as follows:           (ss) The commission in the commission's rules and standards   governing the scope of services provided under the medical   assistance program shall include psychiatric treatment and related   services provided by a psychiatric residential treatment facility   licensed under Chapter 577A, Health and Safety Code, to the extent   permitted by federal law.          SECTION 16.  Section 42.041(b), Human Resources Code, is   amended to read as follows:          (b)  This section does not apply to:                (1)  a state-operated facility;                (2)  an agency foster home;                (3)  a facility that is operated in connection with a   shopping center, business, religious organization, or   establishment where children are cared for during short periods   while parents or persons responsible for the children are attending   religious services, shopping, or engaging in other activities,   including retreats or classes for religious instruction, on or near   the premises, that does not advertise as a child-care facility or   day-care center, and that informs parents that it is not licensed by   the state;                (4)  a school or class for religious instruction that   does not last longer than two weeks and is conducted by a religious   organization during the summer months;                (5)  a youth camp licensed by the Department of State   Health Services;                (6)  a facility licensed, operated, certified, or   registered by another state agency;                (7)  an educational facility that is accredited by the   Texas Education Agency, the Southern Association of Colleges and   Schools, or an accreditation body that is a member of the Texas   Private School Accreditation Commission and that operates   primarily for educational purposes for prekindergarten and above, a   before-school or after-school program operated directly by an   accredited educational facility, or a before-school or   after-school program operated by another entity under contract with   the educational facility, if the Texas Education Agency, the   Southern Association of Colleges and Schools, or the other   accreditation body, as applicable, has approved the curriculum   content of the before-school or after-school program operated under   the contract;                (8)  an educational facility that operates solely for   educational purposes for prekindergarten through at least grade   two, that does not provide custodial care for more than one hour   during the hours before or after the customary school day, and th [Text truncated for display. 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