By Naishtat                                           H.B. No. 3625
         76R8545 JRD-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to requiring certain convalescent and nursing homes to
 1-3     execute a surety bond.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 242, Health and Safety
 1-6     Code, is amended by adding Section 242.0325 to read as follows:
 1-7           Sec. 242.0325.  SURETY BOND REQUIREMENT.  (a)  If three or
 1-8     more institutions that are licensed or required to be licensed
 1-9     under this chapter are owned by the same owner or controlled by the
1-10     same controlling person, each of the institutions must execute a
1-11     surety bond issued by a surety company authorized to do business in
1-12     this state as a condition of obtaining or renewing a license.
1-13           (b)  The bond must be payable to the department and
1-14     conditioned on the institution's compliance with this chapter and
1-15     rules adopted under this chapter.
1-16           (c)  The board shall set the amount of the bond by rule.  The
1-17     board shall determine the amount based on the costs incurred by the
1-18     department when it is necessary to close an institution, arrange
1-19     for the placement of a trustee, transfer residents, or take other
1-20     regulatory actions in connection with a violation of this chapter
1-21     or rules adopted under this chapter.
1-22           SECTION 2.  This Act takes effect September 1, 1999.
1-23           SECTION 3.  The importance of this legislation and the
1-24     crowded condition of the calendars in both houses create an
 2-1     emergency and an imperative public necessity that the
 2-2     constitutional rule requiring bills to be read on three several
 2-3     days in each house be suspended, and this rule is hereby suspended.