1-1     By:  Zaffirini, Nelson                                  S.B. No. 19
 1-2           (In the Senate - Filed November 9, 1998; January 26, 1999,
 1-3     read first time and referred to Committee on Health Services;
 1-4     February 1, 1999, rereferred to Committee on Human Services;
 1-5     February 15, 1999, reported adversely, with favorable Committee
 1-6     Substitute by the following vote:  Yeas 3, Nays 0;
 1-7     February 15, 1999, sent to printer.)
 1-8     COMMITTEE SUBSTITUTE FOR S.B. No. 19                 By:  Zaffirini
 1-9                            A BILL TO BE ENTITLED
1-10                                   AN ACT
1-11     relating to the issuance and renewal of certain initial
1-12     probationary licenses granted for a nursing or convalescent home or
1-13     related institution.
1-14           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-15           SECTION 1.  Section 242.033, Health and Safety Code, is
1-16     amended by amending Subsection (d) and adding Subsection (f) to
1-17     read as follows:
1-18           (d)  Except as provided by Subsection (f), a [A] license is
1-19     renewable every two years after:
1-20                 (1)  an inspection, unless an inspection is not
1-21     required as provided by Section 242.047;
1-22                 (2)  payment of the license fee; and
1-23                 (3)  department approval of the report filed every two
1-24     years by the licensee.
1-25           (f)  The initial license issued to a license holder who has
1-26     not previously held a license under this subchapter is a
1-27     probationary license.  A probationary license is valid for only one
1-28     year.  At the end of the one-year period, a license under
1-29     Subsection (a) may be issued only after:
1-30                 (1)  the department finds that the license holder and
1-31     any other person described by Section 242.032(d) continue to meet
1-32     the requirements established under each provision of this chapter
1-33     and any rule or standard adopted under this chapter;
1-34                 (2)  an inspection, unless an inspection is not
1-35     required as provided by Section 242.047;
1-36                 (3)  payment of the license fee; and
1-37                 (4)  department approval of the report required for
1-38     license renewal that complies with rules adopted under Subsection
1-39     (e).
1-40           SECTION 2.  Section 242.034, Health and Safety Code, is
1-41     amended to read as follows:
1-42           Sec. 242.034.  LICENSE FEES.  (a)  The board may establish by
1-43     rule license fees for institutions licensed by the department under
1-44     this chapter.  The license fee may not exceed $250 plus:
1-45                 (1)  $10 for each unit of capacity or bed space for
1-46     which a license is sought; and
1-47                 (2)  a background examination fee imposed under
1-48     Subsection (d) [(c)].
1-49           (b)  The license fee for a probationary license issued under
1-50     Section 242.033(f) may not exceed $125 plus:
1-51                 (1)  $5 for each unit of capacity or bed space for
1-52     which the license is sought; and
1-53                 (2)  a background examination fee imposed under
1-54     Subsection (d).
1-55           (c)  An additional license fee may be charged as provided by
1-56     Section 242.097.
1-57           (d) [(c)]  The board may establish a background examination
1-58     fee in an amount necessary to defray the department's expenses in
1-59     administering its duties under Sections 242.032(d) and (e).
1-60           (e) [(d)]  The applicable license fee must be paid with each
1-61     application for a probationary license, an initial license, a
1-62     renewal license, or a change of ownership license.
1-63           (f) [(e)]  The state is not required to pay the license fee.
1-64           (g) [(f)]  An approved increase in bed space is subject to an
 2-1     additional fee.
 2-2           (h) [(g)]  The license fees established under this chapter
 2-3     are an allowable cost for reimbursement under the medical
 2-4     assistance program administered by the Texas Department of Human
 2-5     Services under Chapter 32, Human Resources Code.  Any fee increases
 2-6     shall be reflected in reimbursement rates prospectively.
 2-7           SECTION 3.  This Act takes effect September 1, 1999.  The
 2-8     change in law made by this Act applies only to the issuance, term,
 2-9     and renewal of an initial probationary license described by
2-10     Subsection (f), Section 242.033, Health and Safety Code, as added
2-11     by this Act, that is first issued on or after that date.  The
2-12     issuance, term, and renewal of an initial license described by
2-13     Subsection (f), Section 242.033, Health and Safety Code, as added
2-14     by this Act, that is first issued before that date is governed by
2-15     the law in effect immediately before the effective date of this
2-16     Act, and that law is continued in effect for that purpose.
2-17           SECTION 4.  The importance of this legislation and the
2-18     crowded condition of the calendars in both houses create an
2-19     emergency and an imperative public necessity that the
2-20     constitutional rule requiring bills to be read on three several
2-21     days in each house be suspended, and this rule is hereby suspended.
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