AN ACT

 1-1     relating to the licensing and inspection of certain hospitals.

 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-3           SECTION 1.  Section 222.024, Health and Safety Code, is

 1-4     amended to read as follows:

 1-5           Sec. 222.024.  CERTIFICATION OR ACCREDITATION INSTEAD OF

 1-6     INSPECTION.  (a)  Except as provided by Subsection (c), a [A]

 1-7     hospital licensed by the Texas Department of Health [or the Texas

 1-8     Department of Mental Health and Mental Retardation] is not subject

 1-9     to additional annual licensing inspections before the department

1-10     [agency] issues the hospital a license [under Chapter 241 (Texas

1-11     Hospital Licensing Law) or by the licensing agency] while the

1-12     hospital maintains:

1-13                 (1)  certification under Title XVIII of the Social

1-14     Security Act (42 U.S.C. Section 1395 et seq.); or

1-15                 (2)  accreditation from the Joint Commission on

1-16     Accreditation of Healthcare Organizations, the American Osteopathic

1-17     Association, or other national accreditation organization for the

1-18     offered services.

1-19           (b)  [If the Texas Department of Mental Health and Mental

1-20     Retardation licenses a hospital exempt from a licensing inspection

1-21     under Subsection (a), that agency shall issue a renewal license to

1-22     the hospital if the hospital annually remits any applicable fees

1-23     and submits a copy of the most recent inspection results report

 2-1     from the certification or accreditation body.]

 2-2           [(c)]  If the department [Texas Department of Health]

 2-3     licenses a hospital exempt from an annual [a] licensing inspection

 2-4     under Subsection (a), the department [that agency] shall issue a

 2-5     renewal license to the hospital if the hospital annually:

 2-6                 (1)  submits a complete application required by the

 2-7     department;

 2-8                 (2)  remits any applicable fees;

 2-9                 (3)  submits a copy of documentation from the

2-10     certification or accreditation body showing that the hospital is

2-11     certified or accredited; and

2-12                 (4)  submits a copy of the most recent fire safety

2-13     inspection report from the fire marshal in whose jurisdiction the

2-14     hospital is located.

2-15           (c)  The department may conduct an inspection of a hospital

2-16     exempt from an annual licensing inspection under Subsection (a)

2-17     before issuing a renewal license to the hospital if the

2-18     certification or accreditation body has not conducted an on-site

2-19     inspection of the hospital in the preceding three years and the

2-20     department determines that an inspection of the hospital by the

2-21     certification or accreditation body is not scheduled within 60

2-22     days.

2-23           SECTION 2.  This Act takes effect September 1, 1997.

2-24           SECTION 3.  The importance of this legislation and the

2-25     crowded condition of the calendars in both houses create an

 3-1     emergency and an imperative public necessity that the

 3-2     constitutional rule requiring bills to be read on three several

 3-3     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 908 passed the Senate on

         April 17, 1997, by the following vote:  Yeas 31, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 908 passed the House on

         May 7, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor