1-1     By:  Moncrief                                         S.B. No. 1198
 1-2           (In the Senate - Filed March 10, 1999; March 11, 1999, read
 1-3     first time and referred to Committee on Health Services;
 1-4     March 25, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 5, Nays 0; March 25, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1198                By:  Moncrief
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to requiring certain convalescent and nursing homes to
1-11     execute a surety bond.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Subchapter B, Chapter 242, Health and Safety
1-14     Code, is amended by adding Section 242.0325 to read as follows:
1-15           Sec. 242.0325.  SURETY BOND REQUIREMENT.  (a)  If three or
1-16     more institutions that are licensed or required to be licensed
1-17     under this chapter are owned by the same owner or controlled by the
1-18     same controlling person, each of the institutions must execute a
1-19     surety bond issued by a surety company authorized to do business in
1-20     this state as a condition of obtaining or renewing a license,
1-21     provided that there are two or more companies willing to provide
1-22     this service to the institutions.
1-23           (b)  The bond must be payable to the department and
1-24     conditioned on the institution's compliance with this chapter and
1-25     rules adopted under this chapter.
1-26           (c)  The board shall set the amounts of bonds under this
1-27     section according to a schedule adopted by rule.  The board shall
1-28     schedule the amounts based on the number of residents in an
1-29     institution and on the costs incurred by the department when it is
1-30     necessary to close an institution, arrange for the placement of a
1-31     trustee, transfer residents, or take other regulatory actions in
1-32     connection with a violation of this chapter or rules adopted under
1-33     this chapter.
1-34           (d)  Before the board adopts any rule under Subsection (c),
1-35     the department on behalf of the board shall attempt to engage in
1-36     negotiated rulemaking to assist the board in drafting the proposed
1-37     rule by following the procedures prescribed by Chapter 2008,
1-38     Government Code, as added by Chapter 1315, Acts of the 75th
1-39     Legislature, Regular Session, 1997.
1-40           SECTION 2.  This Act takes effect September 1, 1999.
1-41           SECTION 3.  The importance of this legislation and the
1-42     crowded condition of the calendars in both houses create an
1-43     emergency and an imperative public necessity that the
1-44     constitutional rule requiring bills to be read on three several
1-45     days in each house be suspended, and this rule is hereby suspended.
1-46                                  * * * * *