HBA-ATS, NIK H.B. 3451 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3451
By: Hilderbran
Civil Practices
6/21/1999
Enrolled



BACKGROUND AND PURPOSE 

Under Section 242.268 (No Arbitration in Case of Emergency Order or Closing
Order), Health and Safety Code, neither the state nor a nursing home may
elect to resolve disputes using arbitration if the disputes are subject to
Section 242.061 (Denial, Suspension, or Revocation of License), 242.062
(Emergency Suspension or Closing Order), or 242.072 (Other Remedies),
Health and Safety Code. However, prior to the 76th Legislature, courts had
ordered arbitration in just such situations.  These orders had the effect
of undermining the evident intent of the legislature in enacting Section
242.268, Health and Safety Code. 

H.B. 3451 prohibits courts from ordering arbitration in cases in which
violations of those provisions are alleged and provides that in instances
in which arbitration is improperly ordered, the arbitration process must be
dismissed and the court in which the underlying dispute was filed must
retain jurisdiction. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 242.061, Health and Safety Code, by adding
Subsection (d), to prohibit a court having jurisdiction of a judicial
review of the matter from ordering arbitration, whether on motion of any
party or on the court's own motion, to resolve a dispute involving the
denial, suspension, or revocation of a license under this section (Denial,
Suspension, or Revocation of License), or the conduct with respect to which
the denial, suspension, or revocation of the license is sought. 

SECTION 2. Amends Section 242.062, Health and Safety Code, by adding
Subsection (e), to prohibit a court having jurisdiction of a judicial
review of the matter from ordering arbitration, whether on motion of any
party or on the court's own motion, to resolve a dispute involving an
emergency suspension or closing order under this section (Emergency
Suspension or Closing Order) or the conduct with respect to which the
emergency suspension or closing order is sought. 

SECTION 3. Amends Section 242.072, Health and Safety Code, by adding
Subsection (f), to prohibit a court having jurisdiction of a judicial
review of the matter from ordering arbitration, whether on motion of any
party or on the court's own motion, to resolve a dispute involving an order
suspending admissions under this section (Other Remedies) or the conduct
with respect to which the order suspending admissions is sought. 

SECTION 4. Amends Section 242.094, Health and Safety Code, by adding
Subsection (f), to prohibit a court having jurisdiction of a judicial
review of the matter from ordering arbitration, whether on motion of any
party or on the court's own motion, to resolve the legal issues of a
dispute involving the appointment of a trustee under this section
(Involuntary Appointment), or the conduct with respect to which the
appointment of trustee is sought. 

SECTION 5. Effective date: September 1, 1999.
 
SECTION 6. Makes application of this Act prospective.

SECTION 7. Emergency clause.