8 | 4 | | AN ACT |
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9 | 5 | | relating to the authorization of the imposition of administrative |
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10 | 6 | | penalties on providers participating in certain Medicaid waiver |
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11 | 7 | | programs. |
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12 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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13 | 9 | | SECTION 1. Subchapter D, Chapter 161, Human Resources Code, |
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14 | 10 | | is amended by adding Section 161.088 to read as follows: |
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15 | 11 | | Sec. 161.088. ADMINISTRATIVE PENALTIES. (a) This section |
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16 | 12 | | applies to the following waiver programs established under Section |
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17 | 13 | | 1915(c), Social Security Act (42 U.S.C. Section 1396n(c)), and |
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18 | 14 | | administered by the department to serve persons with an |
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19 | 15 | | intellectual or developmental disability: |
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20 | 16 | | (1) the home and community-based services (HCS) waiver |
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21 | 17 | | program; and |
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22 | 18 | | (2) the Texas home living (TxHmL) waiver program. |
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23 | 19 | | (b) The department may assess and collect an administrative |
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24 | 20 | | penalty against a provider who participates in a program to which |
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25 | 21 | | this section applies for a violation of a law or rule relating to |
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26 | 22 | | the program. If the department assesses an administrative penalty |
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27 | 23 | | against a provider for a violation of a law or rule, the department |
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28 | 24 | | may not impose a payment hold against or otherwise withhold |
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29 | 25 | | contract payments from the provider for the same violation of a law |
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30 | 26 | | or rule. |
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31 | 27 | | (c) After consulting with appropriate stakeholders, the |
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32 | 28 | | executive commissioner shall develop and adopt rules regarding the |
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33 | 29 | | imposition of administrative penalties under this section. The |
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34 | 30 | | rules must: |
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35 | 31 | | (1) specify the types of violations that warrant |
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36 | 32 | | imposition of an administrative penalty; |
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37 | 33 | | (2) establish a schedule of progressive |
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38 | 34 | | administrative penalties in accordance with the relative type, |
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39 | 35 | | frequency, and seriousness of a violation; |
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40 | 36 | | (3) prescribe reasonable amounts to be imposed for |
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41 | 37 | | each violation giving rise to an administrative penalty, subject to |
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42 | 38 | | Subdivision (4); |
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43 | 39 | | (4) authorize the imposition of an administrative |
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44 | 40 | | penalty in an amount not to exceed $5,000 for each violation; |
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45 | 41 | | (5) provide that a provider commits a separate |
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46 | 42 | | violation each day the provider continues to violate the law or |
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47 | 43 | | rule; |
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48 | 44 | | (6) ensure standard and consistent application of |
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49 | 45 | | administrative penalties throughout the state; and |
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50 | 46 | | (7) provide for an administrative appeals process to |
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51 | 47 | | adjudicate claims and appeals relating to the imposition of an |
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52 | 48 | | administrative penalty under this section that is in accordance |
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53 | 49 | | with Chapter 2001, Government Code. |
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54 | 50 | | (d) In specifying the types of violations that warrant |
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55 | 51 | | imposition of an administrative penalty under Subsection (c), the |
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56 | 52 | | executive commissioner shall specify the types of minor violations |
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57 | 53 | | that allow a provider an opportunity to take corrective action |
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58 | 54 | | before a penalty is imposed. |
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59 | 55 | | (e) In establishing the schedule of progressive |
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60 | 56 | | administrative penalties and penalty amounts under Subsection (c), |
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61 | 57 | | the executive commissioner must consider: |
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62 | 58 | | (1) the seriousness of a violation, including: |
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63 | 59 | | (A) the nature, circumstances, extent, and |
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64 | 60 | | gravity of the violation; and |
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65 | 61 | | (B) the hazard to the health or safety of |
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66 | 62 | | recipients resulting from the violation; |
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67 | 63 | | (2) the provider's history of previous violations; |
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68 | 64 | | (3) whether the provider: |
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69 | 65 | | (A) had prior knowledge of the violation, |
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70 | 66 | | including whether the provider identified the violation through the |
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71 | 67 | | provider's internal quality assurance process; and |
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72 | 68 | | (B) made any efforts to mitigate or correct the |
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73 | 69 | | identified violation; |
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74 | 70 | | (4) the penalty amount necessary to deter future |
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75 | 71 | | violations; and |
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76 | 72 | | (5) any other matter justice may require. |
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77 | 73 | | (f) In lieu of imposing an administrative penalty under this |
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78 | 74 | | section, the department shall allow a provider found to have |
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79 | 75 | | committed a minor violation specified by rule in accordance with |
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80 | 76 | | Subsection (d) to have a reasonable period of time that is not less |
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81 | 77 | | than 45 days after the date the department sends notice to the |
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82 | 78 | | provider of the violation to take corrective action regarding the |
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83 | 79 | | violation. The department may not allow time for corrective action |
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84 | 80 | | for any violation that is not a minor violation. |
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85 | 81 | | SECTION 2. The Department of Aging and Disability Services |
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86 | 82 | | may impose an administrative penalty in accordance with Section |
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87 | 83 | | 161.088, Human Resources Code, as added by this Act, only for |
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88 | 84 | | conduct that occurs on or after the effective date of this Act. |
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89 | 85 | | SECTION 3. If before implementing any provision of this Act |
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90 | 86 | | a state agency determines that a waiver or authorization from a |
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91 | 87 | | federal agency is necessary for implementation of that provision, |
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92 | 88 | | the agency affected by the provision shall request the waiver or |
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93 | 89 | | authorization and may delay implementing that provision until the |
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94 | 90 | | waiver or authorization is granted. |
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95 | 91 | | SECTION 4. This Act takes effect September 1, 2015. |
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