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


Senate Research CenterC.S.S.B. 1198
76R8545 JRD-DBy: Moncrief
Health Services
3/24/1999
Committee Report (Substituted)


DIGEST 

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

PURPOSE

As proposed, C.S.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 providing
there are two or more companies willing to provide these services to the
above institutions, 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 amounts of bonds under
this section according to a schedule adopted by rule. Requires the board to
schedule the amount based on the number of residents in an institution and
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. Requires the department on
behalf of the board to attempt to engage in negotiated rulemaking to assist
the board in drafting the proposed rule by following the procedures
prescribed by Chapter 2008, Government Code, as added by Chapter 1315, Acts
of the 75th Legislature, Regular Session, 1997.  

SECTION 2. Effective date: September 1, 1999.

SECTION 3. Emergency clause.
 

SUMMARY OF COMMITTEE CHANGES

SECTION 1. 

Amends Section 242.0325, Health and Safety Code, by amending Subsection (a)
and (c) and adding Subsection (d), to require 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 providing there
are two or more companies willing to provide these services to the above
institutions, 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.  Require the board to set the amounts of bonds under
this section according to a schedule adopted by rule. Requires the board to
schedule the amounts based on the number of residents in an institution and
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. Requires the department on
behalf of the board to attempt to engage in negotiated rulemaking to assist
the board in drafting the proposed rule by following the procedures
prescribed by Chapter 2008, Government Code. Deletes text requiring the
board to set the amount of the bond by rule. Deletes text requiring 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.