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.