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.