By Naishtat                                           H.B. No. 3627
         76R8546 MCK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to monitoring the financial condition of certain nursing
 1-3     facilities licensed by the Texas Department of Human Services.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter C, Chapter 242, Health and Safety
 1-6     Code, is amended by adding Section 242.074 to read as follows:
 1-7           Sec. 242.074.  FINANCIAL STATEMENTS.  (a)  Not later than
 1-8     April 1 of each year, an institution licensed under this chapter
 1-9     shall submit to the department an audited financial statement for
1-10     the preceding calendar year prepared in accordance with generally
1-11     accepted accounting principles.  An independent certified public
1-12     accountant must certify the financial statement.
1-13           (b)  The institution shall notify the department of any
1-14     change in the institution's financial condition that could
1-15     adversely affect the institution's ability to provide services to
1-16     its customers.
1-17           (c)  The department may investigate the financial soundness
1-18     of an institution licensed under this chapter.  As part of its
1-19     investigation, the department may issue a subpoena to obtain the
1-20     financial records of the institution.
1-21           (d)  A person that files a false financial statement may be
1-22     prosecuted under the Penal Code.
1-23           SECTION 2.  This Act takes effect September 1, 1999.
1-24           SECTION 3.  The importance of this legislation and the
 2-1     crowded condition of the calendars in both houses create an
 2-2     emergency and an imperative public necessity that the
 2-3     constitutional rule requiring bills to be read on three several
 2-4     days in each house be suspended, and this rule is hereby suspended.