By:  Moncrief                                         S.B. No. 1198
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to requiring certain convalescent and nursing homes to
 1-2     execute a surety bond.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter B, Chapter 242, Health and Safety
 1-5     Code, is amended by adding Section 242.0325 to read as follows:
 1-6           Sec. 242.0325.  SURETY BOND REQUIREMENT.  (a)  If three or
 1-7     more institutions that are licensed or required to be licensed
 1-8     under this chapter are owned by the same owner or controlled by the
 1-9     same controlling person, each of the institutions must execute a
1-10     surety bond issued by a surety company authorized to do business in
1-11     this state as a condition of obtaining or renewing a license,
1-12     provided that there are two or more companies willing to provide
1-13     this service to the institutions.
1-14           (b)  The bond must be payable to the department and
1-15     conditioned on the institution's compliance with this chapter and
1-16     rules adopted under this chapter.
1-17           (c)  The board shall set the amounts of bonds under this
1-18     section according to a schedule adopted by rule.  The board shall
1-19     schedule the amounts based on the number of residents in an
1-20     institution and on the costs incurred by the department when it is
1-21     necessary to close an institution, arrange for the placement of a
1-22     trustee, transfer residents, or take other regulatory actions in
1-23     connection with a violation of this chapter or rules adopted under
1-24     this chapter.
 2-1           (d)  Before the board adopts any rule under Subsection (c),
 2-2     the department on behalf of the board shall attempt to engage in
 2-3     negotiated rulemaking to assist the board in drafting the proposed
 2-4     rule by following the procedures prescribed by Chapter 2008,
 2-5     Government Code, as added by Chapter 1315, Acts of the 75th
 2-6     Legislature, Regular Session, 1997.
 2-7           SECTION 2.  This Act takes effect September 1, 1999.
 2-8           SECTION 3.  The importance of this legislation and the
 2-9     crowded condition of the calendars in both houses create an
2-10     emergency and an imperative public necessity that the
2-11     constitutional rule requiring bills to be read on three several
2-12     days in each house be suspended, and this rule is hereby suspended.