SRC-ARR S.B. 1198 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1198
76R8545 JRD-DBy: Moncrief
Health Services
3/15/1999
As Filed


DIGEST 

Currently, Texas law does not require  certain convalescent and nursing
homes to execute a surety bond. S.B. 1198 requires certain convalescent and
nursing homes to execute a surety bond. 

PURPOSE

As proposed, S.B. 1198 requires certain convalescent and nursing homes to
execute a surety bond. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Board of Health in SECTION 1
(Section 242.0325(c), Chapter 242B, Health and Safety Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 242, Health and Safety Code, by adding Section
242.0325 as follows: 

Sec. 242.0325. SURETY BOND REQUIREMENT. Requires each institution to
execute a  surety bond issued by a surety company authorized to do business
in this state as a condition of obtaining or renewing a licensed, if three
or more institutions that are licensed or required to be licensed under
this chapter are owned by the same owner or controlled by the same person.
Requires the bond to be payable to the Texas Department of Health
(department) and conditioned on the institution's compliance with this
chapter and rules adopted under this chapter. Requires the Texas Board of
Heath (board) to set the amount of the bond by rule. Requires the board to
determine the amount based on the costs incurred by the department when it
is necessary to close an institution, arrange for the placement of a
trustee, transfer residents, or take other regulatory actions in connection
with a violation of this chapter or rules adopted under this chapter. 

SECTION 2. Effective date: September 1, 1999.

SECTION 3. Emergency clause.