AN ACT
1-1 relating to monitoring the financial condition of certain nursing
1-2 facilities licensed by the Texas Department of Human Services;
1-3 providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subsection (a), Section 242.061, Health and
1-6 Safety Code, is amended to read as follows:
1-7 (a) The department, after providing notice and opportunity
1-8 for a hearing to the applicant or license holder, may deny,
1-9 suspend, or revoke a license if the department finds that the
1-10 applicant, the license holder, or any other person described by
1-11 Section 242.032(d) has:
1-12 (1) violated this chapter or a rule, standard, or
1-13 order adopted or license issued under this chapter in either a
1-14 repeated or substantial manner; [or]
1-15 (2) committed any act described by Sections
1-16 242.066(a)(2)-(6); or
1-17 (3) failed to comply with Section 242.074.
1-18 SECTION 2. Subchapter C, Chapter 242, Health and Safety
1-19 Code, is amended by adding Section 242.074 to read as follows:
1-20 Sec. 242.074. NOTIFICATION OF CHANGE IN FINANCIAL CONDITION.
1-21 (a) An institution shall notify the department of a significant
1-22 change in the institution's financial position, cash flow, or
1-23 results of operation that could adversely affect the institution's
1-24 delivery of essential services, including nursing services, dietary
2-1 services, and utilities, to residents of the institution.
2-2 (b) The department may verify the financial condition of an
2-3 institution in order to identify any risk to the institution's
2-4 ability to deliver essential services.
2-5 (c) A person that knowingly files false information under
2-6 this section may be prosecuted under the Penal Code.
2-7 (d) The department shall adopt rules to implement this
2-8 section. The rules shall include the conditions that constitute a
2-9 significant change in an institution's financial condition that are
2-10 required to be reported under Subsection (a).
2-11 (e) The information obtained by the department under this
2-12 section is confidential and is not subject to disclosure under
2-13 Chapter 552, Government Code. The department may release the
2-14 information to:
2-15 (1) the institution; or
2-16 (2) a person other than the institution if the
2-17 institution consents in writing to the disclosure.
2-18 (f) A person who knowingly discloses information in
2-19 violation of Subsection (e) commits an offense. An offense under
2-20 this subsection is a Class A misdemeanor.
2-21 (g) The provisions in Subsection (e) relating to the
2-22 confidentiality of records do not apply to:
2-23 (1) an institution whose license has been revoked or
2-24 suspended; or
2-25 (2) the use of information in an administrative
2-26 proceeding initiated by the department or in a judicial proceeding.
3-1 SECTION 3. (a) Except as provided by Subsection (b) of this
3-2 section, this Act takes effect September 1, 1999.
3-3 (b) Subsection (a), Section 242.074, Health and Safety Code,
3-4 as added by this Act, takes effect January 1, 2000.
3-5 (c) The Texas Department of Human Services shall adopt the
3-6 rules required under Subsection (d), Section 242.074, Health and
3-7 Safety Code, as added by this Act, not later than December 31,
3-8 1999.
3-9 SECTION 4. The importance of this legislation and the
3-10 crowded condition of the calendars in both houses create an
3-11 emergency and an imperative public necessity that the
3-12 constitutional rule requiring bills to be read on three several
3-13 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. 1292 passed the Senate on
April 13, 1999, by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1292 passed the House on
May 22, 1999, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor