SRC-DBM S.B. 1292 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1292
76R8546  MCK-DBy: Zaffirini
Human Services
3/26/1999
As Filed


DIGEST 

Currently, the Texas Department of Human Services (DHS) lacks ability 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.  In the past, some nursing homes experienced heavy
revenue losses resulting in their inability to meet payroll expenses; the
staff subsequently walked off the job, thus endangering the residents.  In
these situations, DHS was forced to run the nursing home operations and
seek emergency appropriations from the legislature.  S.B. 1292 would
require a nursing facility licensed by DHS, not later than April 1 of each
year, to submit audited financial statements from the  preceding calendar
year, prepared in accordance with generally accepted accounting principles
by an independent certified public accountant. 

PURPOSE

As proposed, S.B. 1292 sets forth financial reporting requirements for
certain nursing facilities licensed by the Texas Department of Human
Services. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

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

Sec. 242.074.  FINANCIAL STATEMENTS.  (a)  Requires an institution licensed
under this chapter, not later than April 1 of each year, to submit to the
Texas Department of Health (department), an audited financial statement for
the preceding calendar year prepared in accordance with generally accepted
accounting principles certified by an independent certified public
accountant. 

(b)  Requires the institution to notify the department of any change in the
institution's financial condition that could adversely affect the
institution's ability to provide services to its customers. 

(c)  Authorizes the department to investigate the financial soundness of an
institution licensed under this chapter and to issue a subpoena to obtain
the institution's financial records. 

(d)  Authorizes a person who files a false financial statement to be
prosecuted under the Penal Code. 

SECTION 2.Effective date: September 1, 1999.

SECTION 3.Emergency clause.