BILL ANALYSIS


                                                        H.B. 3120
                                          By: Hunter, B. (Bivins)
                                        Health and Human Services
                                                         05-17-95
                              Senate Committee Report (Unamended)
BACKGROUND

The number of Medicaid-paid beds in nursing facilities has remained
fairly constant since the mid-1980s when a rider was inserted in
the General Appropriations Bill effectively placing a moratorium on
the construction of new facilities.  Concerns have been raised that
areas where the need for such facilities has been demonstrated must
forego development of new beds until another facility agrees to
relinquish some or all of its Medicaid nursing bed allotment.

PURPOSE

As proposed, H.B. 3120 requires the Department of Human Services to
waive a restriction on a nursing home to contract under the state
Medicaid program for nursing home beds if the facility is
participating in research and treatment of Alzheimer's disease.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 32B, Human Resources Code, by adding
Section 32.0245, as follows:

     Sec. 32.0245.  NURSING HOME BEDS FOR CERTAIN FACILITIES
     TREATING ALZHEIMER'S DISEASE.  Requires the Department of
     Human Services (department) to waive for a nursing facility a
     restriction imposed by state law on the authority to contract
     under the state Medicaid program for nursing home beds based
     on the percentage of beds that are occupied in a geographical
     area, if the facility is affiliated with a medical school
     operated by the state, is participating in a research program
     for the care and treatment of persons with Alzheimer's
     disease, and is designed to separate and treat Alzheimer's
     disease by stage or functional level.
     
     SECTION 2.     Requires the department, if it determines that a waiver
or authorization is necessary for the implementation of Section
32.0245, Human Resources Code, to request the waiver or
authorization, and authorizes the department to delay implementing
that section until the waiver or authorization is granted.

SECTION 3. Emergency clause.
           Effective date: upon passage.