AN ACT
 1-1     relating to the issuance and renewal of certain initial
 1-2     probationary licenses granted for a nursing or convalescent home or
 1-3     related institution.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 242.033, Health and Safety Code, is
 1-6     amended by amending Subsection (d) and adding Subsection (f) to
 1-7     read as follows:
 1-8           (d)  Except as provided by Subsection (f), a [A] license is
 1-9     renewable every two years after:
1-10                 (1)  an inspection, unless an inspection is not
1-11     required as provided by Section 242.047;
1-12                 (2)  payment of the license fee; and
1-13                 (3)  department approval of the report filed every two
1-14     years by the licensee.
1-15           (f)  The initial license issued to a license holder who has
1-16     not previously held a license under this subchapter is a
1-17     probationary license.  A probationary license is valid for only one
1-18     year.  At the end of the one-year period, a license under
1-19     Subsection (a) shall be issued but only after:
1-20                 (1)  the department finds that the license holder and
1-21     any other person described by Section 242.032(d) continue to meet
1-22     the requirements established under each provision of this chapter
1-23     and any rule or standard adopted under this chapter;
1-24                 (2)  an inspection, unless an inspection is not
 2-1     required as provided by Section 242.047;
 2-2                 (3)  payment of the license fee; and
 2-3                 (4)  department approval of the report required for
 2-4     license renewal that complies with rules adopted under Subsection
 2-5     (e).
 2-6           SECTION 2.  Section 242.034, Health and Safety Code, is
 2-7     amended to read as follows:
 2-8           Sec. 242.034.  LICENSE FEES.  (a)  The board may establish by
 2-9     rule license fees for institutions licensed by the department under
2-10     this chapter.  The license fee may not exceed $250 plus:
2-11                 (1)  $10 for each unit of capacity or bed space for
2-12     which a license is sought; and
2-13                 (2)  a background examination fee imposed under
2-14     Subsection (d) [(c)].
2-15           (b)  The license fee for a probationary license issued under
2-16     Section 242.033(f) may not exceed $125 plus:
2-17                 (1)  $5 for each unit of capacity or bed space for
2-18     which the license is sought; and
2-19                 (2)  a background examination fee imposed under
2-20     Subsection (d).
2-21           (c)  An additional license fee may be charged as provided by
2-22     Section 242.097.
2-23           (d) [(c)]  The board may establish a background examination
2-24     fee in an amount necessary to defray the department's expenses in
2-25     administering its duties under Sections 242.032(d) and (e).
2-26           (e) [(d)]  The applicable license fee must be paid with each
 3-1     application for a probationary license, an initial license, a
 3-2     renewal license, or a change of ownership license.
 3-3           (f) [(e)]  The state is not required to pay the license fee.
 3-4           (g) [(f)]  An approved increase in bed space is subject to an
 3-5     additional fee.
 3-6           (h) [(g)]  The license fees established under this chapter
 3-7     are an allowable cost for reimbursement under the medical
 3-8     assistance program administered by the Texas Department of Human
 3-9     Services under Chapter 32, Human Resources Code.  Any fee increases
3-10     shall be reflected in reimbursement rates prospectively.
3-11           SECTION 3.  This Act takes effect September 1, 1999.  The
3-12     change in law made by this Act applies only to the issuance, term,
3-13     and renewal of an initial probationary license described by
3-14     Subsection (f), Section 242.033, Health and Safety Code, as added
3-15     by this Act, that is first issued on or after that date.  The
3-16     issuance, term, and renewal of an initial license described by
3-17     Subsection (f), Section 242.033, Health and Safety Code, as added
3-18     by this Act, that is first issued before that date is governed by
3-19     the law in effect immediately before the effective date of this
3-20     Act, and that law is continued in effect for that purpose.
3-21           SECTION 4.  The importance of this legislation and the
3-22     crowded condition of the calendars in both houses create an
3-23     emergency and an imperative public necessity that the
3-24     constitutional rule requiring bills to be read on three several
3-25     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 19 passed the Senate on
         February 23, 1999, by a viva-voce vote; and that the Senate
         concurred in House amendment on May 21, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 19 passed the House, with
         amendment, on May 19, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor