HBA-NLM S.B. 1292 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1292
By: Zaffirini
Human Services
4/19/1999
Engrossed



BACKGROUND AND PURPOSE 

Currently, the Texas Department of Human Services (department) lacks the
authority to obtain financial information which would provide advance
notice of significant changes in a nursing home's financial condition; this
could adversely affect the delivery of services essential to the health and
safety of residents. Some nursing homes have experienced heavy revenue
losses resulting in their inability to meet payroll expenses.   S.B. 1292
sets forth provisions regarding the monitoring of the financial condition
of certain nursing facilities licensed by the department and  provisions
regarding the monitoring of the financial condition of certain nursing
facilities licensed by the department. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Department of Human Services
in SECTION 1 (Section 242.074, Health and Safety Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 242.061(a), Health and Safety Code, to make
conforming changes. 

SECTION 2.  Amends Subchapter C, Chapter 242, Health and Safety Code, by
adding Section 242.074, as follows: 

Sec. 242.074.  NOTIFICATION OF CHANGE IN FINANCIAL CONDITION.  (a)Requires
an institution providing nursing home facilities (institution) to notify
the Texas Department of Human Services (department) of a significant change
in the institution's financial position, cash flow, or operation results
that could adversely affect the institution's delivery of certain essential
services to residents of the institution. 

(b) Authorizes the department to verify the financial condition of an
institution.  

(c) Provides that a person who knowingly files false information under this
section may be prosecuted under the Penal Code.  

(d) Requires the department to adopt rules to implement this section.
Requires the rules to include the conditions that constitute a significant
change in an institutions's financial condition that are required to be
reported. 

(e)  Provides that the information obtained by the department under this
section is confidential and is not subject to disclosure under Chapter 552
(Public Information), Government Code.  Authorizes the department to
release information to the institution or to specified persons.   

(f) Provides that a person who knowingly discloses confidential information
provided by this section commits a Class A misdemeanor.  

(g) Provides that the provisions of subsection (e) do not apply to an
institution whose license has been revoked or suspended, or to the use of
information in an administrative  proceeding initiated by the department or
in a judicial proceeding. 

SECTION 3.(a)  Effective date: September 1, 1999.

(b) Provides that Section 242.074(a), Health and Safety Code, as added by
this Act, takes effect January 1, 2000. 

(c) Requires the department to adopt the rules required under Section
242.074(d), Health and Safety Code, as added by this Act, not later than
December 31,1999. 

SECTION 4.Emergency clause.