By Palmer, Wohlgemuth H.B. No. 2321 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to nursing home bed certification and decertification and 1-3 creation of an advisory committee to address nursing facility 1-4 reimbursement. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Subchapter B, Chapter 32, Human Resources Code, 1-7 is amended by adding Section 32.0213 to read as follows: 1-8 Sec. 32.0213. NURSING HOME BED CERTIFICATION AND 1-9 DECERTIFICATION. (a) The department by rule shall establish 1-10 procedures to certify and decertify unoccupied nursing home beds in 1-11 accordance with this section. 1-12 (b) Except as provided by other law, to be eligible for 1-13 certification of additional nursing home beds, a nursing facility 1-14 must maintain for those beds an annual average occupancy rate of at 1-15 least 80 percent during the one year preceding the date of the 1-16 request for certification. 1-17 (c) The department may decertify nursing home beds under 1-18 this section if the nursing facility fails to maintain for those 1-19 beds an annual average occupancy rate of at least 80 percent during 1-20 the one year preceding the date on which the decertification is 1-21 effective. 1-22 (d) The department may waive for a newly certified Medicaid 1-23 nursing facility the occupancy rate requirement prescribed by 1-24 Subsection (b) or (c). 2-1 SECTION 2. ADVISORY COMMITTEE. (a) An advisory committee 2-2 to the Texas Department of Human Services is created to develop an 2-3 alternative system of reimbursing nursing facilities under the 2-4 state Medicaid program that more effectively promotes and rewards 2-5 quality care. 2-6 (b) The alternative reimbursement system must be: 2-7 (1) based on a specific set of measurable outcomes; 2-8 and 2-9 (2) designed to ensure that quality nursing facility 2-10 service is recognized and appropriately compensated. 2-11 (c) The advisory committee is composed of: 2-12 (1) 10 members appointed by the Texas Board of Human 2-13 Services as follows: 2-14 (A) two members must be representatives of 2-15 nonprofit nursing facilities; 2-16 (B) three members must be representatives of 2-17 nursing facilities operated for profit; 2-18 (C) three members must represent advocacy groups 2-19 for persons who receive services in nursing facilities; and 2-20 (D) two members must be professionals who 2-21 represent the concerns of the elderly or persons who are disabled; 2-22 and 2-23 (2) the presiding officer of the Texas Board of Human 2-24 Services or a person designated under Subsection (e) of this 2-25 section. 2-26 (d) A person may not be appointed to the advisory committee 2-27 under Subsection (c)(1)(D) of this section if the person or the 3-1 person's spouse: 3-2 (1) is employed by or participates in the management 3-3 of a nursing facility; or 3-4 (2) owns or controls, directly or indirectly, more 3-5 than a 10 percent interest in a nursing facility. 3-6 (e) The presiding officer of the Texas Board of Human 3-7 Services may designate another individual to serve on the advisory 3-8 committee on behalf and under the direction of the presiding 3-9 officer of the board. 3-10 (f) The presiding officer of the Texas Board of Human 3-11 Services or the person designated by the presiding officer under 3-12 Subsection (e) of this section may vote on advisory committee 3-13 action only if necessary to break a tie vote. 3-14 (g) A member of the advisory committee appointed by the 3-15 Texas Board of Human Services serves at the will of the board. 3-16 (h) The members of the advisory committee shall elect a 3-17 presiding officer and any other necessary officers for the 3-18 committee. 3-19 (i) The advisory committee shall meet at the call of the 3-20 presiding officer of the committee. 3-21 (j) A member of the advisory committee receives no 3-22 compensation for serving on the committee, and is not entitled to 3-23 receive reimbursement of expenses incurred while serving on the 3-24 committee. 3-25 (k) The advisory committee is not subject to Article 3-26 6252-33, Revised Statutes. 3-27 SECTION 3. DEADLINE AND REPORT. Not later than November 15, 4-1 1998, the advisory committee created under Section 2 of this Act 4-2 shall: 4-3 (1) complete development of the alternative 4-4 reimbursement system; and 4-5 (2) prepare and deliver a report concerning the 4-6 alternative reimbursement system to the governor, lieutenant 4-7 governor, and clerks of the standing committees of the senate and 4-8 house of representatives with primary jurisdiction over 4-9 reimbursements to nursing facilities under the state Medicaid 4-10 program. 4-11 SECTION 4. APPOINTMENT OF ADVISORY COMMITTEE MEMBERS. Not 4-12 later than November 15, 1997, the Texas Board of Human Services 4-13 shall appoint the members of the advisory committee created under 4-14 Section 2 of this Act. 4-15 SECTION 5. IMPACT ON OTHER REIMBURSEMENT PROPOSALS. 4-16 Sections 2 and 3 of this Act do not prohibit or otherwise affect 4-17 implementation of a modification to the current system of 4-18 reimbursing nursing facilities under the state Medicaid program 4-19 that is: 4-20 (1) proposed before the advisory committee created 4-21 under Section 2 of this Act completes development of an alternative 4-22 reimbursement system; and 4-23 (2) designed to promote and reward quality care. 4-24 SECTION 6. This Act takes effect September 1, 1997. 4-25 SECTION 7. The importance of this legislation and the 4-26 crowded condition of the calendars in both houses create an 4-27 emergency and an imperative public necessity that the 5-1 constitutional rule requiring bills to be read on three several 5-2 days in each house be suspended, and this rule is hereby suspended.