1-1                                   AN ACT

 1-2     relating to access to nursing facilities in rural counties.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subchapter B, Chapter 32, Human Resources Code,

 1-5     is amended by adding Section 32.0246 to read as follows:

 1-6           Sec. 32.0246.  NURSING HOME BEDS IN CERTAIN COUNTIES.  (a)

 1-7     At the request of the commissioners court of a county in which not

 1-8     more than two nursing facilities are certified to participate in

 1-9     the state Medicaid program, and subject to Subsection (d), the

1-10     department may contract for additional nursing home beds under the

1-11     state Medicaid program in the county without regard to the

1-12     occupancy rate of available Medicaid beds.

1-13           (b)  A commissioners court that intends to make a request

1-14     under Subsection (a) shall publish notice of its intent in the

1-15     Texas Register and in a newspaper of general circulation in the

1-16     county.  The notice must request:

1-17                 (1)  comments on whether the request should be made;

1-18     and

1-19                 (2)  proposals from persons interested in providing

1-20     additional Medicaid beds in the county, including persons providing

1-21     Medicaid beds in a nursing facility with a high occupancy rate.

1-22           (c)  A commissioners court shall determine whether to proceed

1-23     with a request after considering all comments and proposals

1-24     received in response to the notices provided under Subsection (b).

 2-1     If the commissioners court proceeds with the request, the court may

 2-2     recommend that the department contract with a specific nursing

 2-3     facility that submitted a proposal.  In determining whether to

 2-4     proceed with the request and whether to recommend a specific

 2-5     nursing facility, the commissioners court shall consider:

 2-6                 (1)  the demographic and economic needs of the county;

 2-7                 (2)  the quality of existing nursing facility services

 2-8     under the state Medicaid program in the county;

 2-9                 (3)  the quality of the proposals submitted; and

2-10                 (4)  the degree of community support for additional

2-11     nursing facility services.

2-12           (d)  The department may not contract under this section for

2-13     more than 120 additional nursing home beds per county per year and

2-14     may not exceed 500 additional nursing home beds statewide in a

2-15     calendar year.

2-16           SECTION 2.  If, before implementing Section 32.0246, Human

2-17     Resources Code, as added by this Act, the Texas Department of Human

2-18     Services determines that a waiver or authorization from a federal

2-19     agency is necessary for implementation, the department shall

2-20     request the waiver or authorization and may delay implementing that

2-21     section until the waiver or authorization is granted.

2-22           SECTION 3.  The importance of this legislation and the

2-23     crowded condition of the calendars in both houses create an

2-24     emergency and an imperative public necessity that the

2-25     constitutional rule requiring bills to be read on three several

2-26     days in each house be suspended, and this rule is hereby suspended,

2-27     and that this Act take effect and be in force from and after its

 3-1     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 606 was passed by the House on April

         11, 1997, by a non-record vote; and that the House concurred in

         Senate amendments to H.B. No. 606 on May 14, 1997, by the following

         vote:  Yeas 143, Nays 0, 1 present, not voting; and that the House

         adopted H.C.R. No. 271 authorizing certain corrections in H.B. No.

         606 on May 16, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 606 was passed by the Senate, with

         amendments, on May 12, 1997, by the following vote:  Yeas 31, Nays

         0; and that the Senate adopted H.C.R. No. 271 authorizing certain

         corrections in H.B. No. 606 on May 19, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor