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.