HBA-NIK H.B. 3451 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3451 By: Hilderbran Civil Practices 4/19/1999 Introduced BACKGROUND AND PURPOSE Currently, 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, courts have ordered arbitration in just such situations. These orders have the effect of undermining the evident intent of the legislature when it enacted 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 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 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 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 the court's own motion, to resolve a dispute involving the appointment of a trustee, assessment of a civil penalty under Section 242.065 (Civil Penalty), Health and Safety Code, in the same proceeding and arising out of the same conduct with respect to which the appointment of a trustee is sought, or conduct with respect to which the appointment of a trustee or assessment of the civil penalty is sought. SECTION 5. Effective date: September 1, 1999. SECTION 6. Makes application of this Act prospective. SECTION 7. Emergency clause.