By: Kolkhorst S.B. No. 401
(In the Senate - Filed January 12, 2023; February 15, 2023,
read first time and referred to Committee on Health & Human
Services; March 20, 2023, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 9, Nays 0;
March 20, 2023, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 401 By: Blanco
A BILL TO BE ENTITLED
AN ACT
relating to prices charged by a medical staffing services agency
during certain designated public health disaster periods;
providing a civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle D, Title 2, Health and Safety Code, is
amended by adding Chapter 81B to read as follows:
CHAPTER 81B. PRICE GOUGING OF MEDICAL STAFFING SERVICES DURING
DESIGNATED PUBLIC HEALTH DISASTER PERIOD
Sec. 81B.001. DEFINITIONS. In this chapter:
(1) "Designated public health disaster period" means a
period:
(A) based on a threat to the public health,
including a threat from:
(i) a chemical, biological, explosive,
nuclear, or radiological attack or incident; or
(ii) a communicable disease, epidemic, or
pandemic;
(B) beginning on the earlier of the date:
(i) the governor issues a proclamation or
executive order declaring a state of disaster under Chapter 418,
Government Code, for any area of this state;
(ii) the president of the United States
declares a state of disaster that includes an area of this state as
part of the federally declared disaster area; or
(iii) a disaster described by Subparagraph
(i) or (ii) occurs; and
(C) ending on the 30th day after the date the
disaster declaration expires or is terminated.
(2) "Exorbitant or excessive price" means a price
that:
(A) increases by more than 10 percent over the
price charged for medical staffing services provided immediately
before the designated public health disaster period;
(B) increases by more than 10 percent over the
tax-adjusted price charged for medical staffing services provided
in any area outside the geographic area subject to the designated
public health disaster period;
(C) increases by more than 10 percent over the
sum of:
(i) the higher of acquisition or
replacement cost for medical staffing services; and
(ii) the markup customarily applied by the
medical staffing services agency for medical staffing services in
the usual course of business immediately before the designated
public health disaster period;
(D) is not attributable to fluctuations in
applicable regional or national markets for medical staffing
services; or
(E) is not a contract price or price formula for
medical staffing services agreed to before the designated public
health disaster period.
Sec. 81B.002. APPLICABILITY. This chapter applies only to
a medical staffing services agency that provides the following
health care professionals to fill vacancies or address temporary
staffing needs during a designated public health disaster period:
(1) physician assistants licensed under Chapter 204,
Occupations Code;
(2) surgical assistants licensed under Chapter 206,
Occupations Code;
(3) nurses licensed under Chapter 301, Occupations
Code; or
(4) nurse aides listed in the nurse aide registry
under Chapter 250.
Sec. 81B.003. PROHIBITED PRICE GOUGING DURING DESIGNATED
PUBLIC HEALTH DISASTER PERIOD. During a designated public health
disaster period, a medical staffing services agency to which this
chapter applies may not demand or charge an exorbitant or excessive
price to provide medical staffing services to a health care
organization or other entity in this state in an area subject to a
declared state of disaster.
Sec. 81B.004. CIVIL PENALTY; INJUNCTION. (a) A medical
staffing services agency that violates this chapter is subject to a
civil penalty in an amount not to exceed $10,000 for each violation.
(b) The attorney general may bring an action in the name of
the state to:
(1) recover a civil penalty under this section; or
(2) restrain or enjoin the person from violating this
chapter.
(c) The attorney general may recover reasonable expenses
incurred in obtaining a civil penalty under this section, including
court costs, reasonable attorney's fees, expert witness fees,
deposition expenses, and investigatory costs.
SECTION 2. The changes in law made by this Act apply only to
an act that occurs on or after the effective date of this Act. An
act that occurs before the effective date of this Act is governed by
the law in effect on the date the act occurred, and the former law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2023.
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