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


Senate Research CenterC.S.S.B. 1292
76R10562  MCK-DBy: Zaffirini
Human Services
4/8/1999
Committee Report (Substituted - REVISED)


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.  C.S.S.B. 1292 would
set forth provisions regarding the monitoring of the financial condition of
certain nursing facilities licensed by the Texas Department of Human
Services. 


PURPOSE

As proposed, C.S.S.B. 1292 sets forth provisions regarding the monitoring
of the financial condition of 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 Section 242.061(a), Health and Safety Code, to make
conforming changes. 

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

Sec. 242.074.  NOTIFICATION OF CHANGE IN FINANCIAL CONDITION.  Requires an
establishment that furnishes food or shelter to four or more persons
unrelated to the proprietor and provides minor treatment under the
direction and supervision of a physician or other services that meet some
need beyond the basic provision of food, shelter, and laundry (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.  Authorizes the
department to investigate the financial soundness of an institution, and as
part of its investigation, to issue a subpoena to obtain financial records
of the institution.  Authorizes a person who knowingly files false
information under this section to be prosecuted under the Penal Code. 

SECTION 3.Effective date: September 1, 1999.

SECTION 4.Emergency clause.  

SUMMARY OF COMMITTEE CHANGES

SECTION 1.

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

SECTION 2.

 Redesignated from proposed SECTION 1, which was deleted.  Amends Section
242.074, Health and Safety Code, by deleting proposed Subsection (a), and
redesignating Subsection (b) as Subsection (a), amended to require an
institution to notify the department of a significant change in the
institution's financial position, cash flow, or results of operation that
could adversely affect the institution's delivery of essential services.
Redesignates proposed Subsection (c) as Subsection (b), amended to make a
nonsubstantive change.  Redesignates proposed Subsection (d) as Subsection
(c), amended to authorize a person who knowingly files false information,
rather than false financial information, to be prosecuted. 

SECTIONS 3 - 4.  

 Redesignated from existing SECTIONS 2 - 3.