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.