By:  Moncrief                                         S.B. No. 1763

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the authority of the Texas Department of Human Services

 1-2     to contract for Medicaid-certified beds in nursing facilities.

 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.  WAIVER OF RESTRICTIONS ON CONTRACTING FOR

 1-7     CERTIFIED NURSING FACILITY BEDS.  (a)  The department may waive any

 1-8     restriction imposed by state law on the authority to contract for

 1-9     Medicaid beds in a facility, regardless of the percentage of

1-10     Medicaid beds occupied in a geographic area, if:

1-11                 (1)  the facility requests a waiver; and

1-12                 (2)  the department has not imposed a Category II or

1-13     Category III remedy on the facility within the preceding 24-month

1-14     period.

1-15           (b)  The department shall waive any restriction imposed by

1-16     state law on the authority to contract for Medicaid beds in a

1-17     facility, regardless of the percentage of Medicaid beds occupied in

1-18     a geographic area, if:

1-19                 (1)  the facility meets the requirements of Subsections

1-20     (a)(1) and (2) of this section; and

1-21                 (2)  the contracted beds permitted by the waiver are

1-22     for residents who:

1-23                       (A)  were not eligible for Medicaid at the time

 2-1     they were admitted to the facility;

 2-2                       (B)  have been residents of the facility for at

 2-3     least six consecutive months before becoming eligible for Medicaid;

 2-4     and

 2-5                       (C)  become eligible for Medicaid.

 2-6           SECTION 2.  The Texas Department of Human Services shall

 2-7     adopt rules necessary to implement this Act no later than October

 2-8     1, 1997.

 2-9           SECTION 3.  The importance of this legislation and the

2-10     crowded condition of the calendars in both houses create an

2-11     emergency and an imperative public necessity that the

2-12     constitutional rule requiring bills to be read on three several

2-13     days in each house be suspended, and this rule is hereby suspended.