1-1     By:  Zaffirini                                        S.B. No. 1292
 1-2           (In the Senate - Filed March 11, 1999; March 15, 1999, read
 1-3     first time and referred to Committee on Human Services;
 1-4     April 6, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 4, Nays 0; April 6, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1292               By:  Zaffirini
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to monitoring the financial condition of certain nursing
1-11     facilities licensed by the Texas Department of Human Services;
1-12     providing a penalty.
1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14           SECTION 1.  Subsection (a), Section 242.061, Health and
1-15     Safety Code, is amended to read as follows:
1-16           (a)  The department, after providing notice and opportunity
1-17     for a hearing to the applicant or license holder, may deny,
1-18     suspend, or revoke a license if the department finds that the
1-19     applicant, the license holder, or any other person described by
1-20     Section 242.032(d) has:
1-21                 (1)  violated this chapter or a rule, standard, or
1-22     order adopted or license issued under this chapter in either a
1-23     repeated or substantial manner; [or]
1-24                 (2)  committed any act described by Sections
1-25     242.066(a)(2)-(6); or
1-26                 (3)  failed to comply with Section 242.074.
1-27           SECTION 2.  Subchapter C, Chapter 242, Health and Safety
1-28     Code, is amended by adding Section 242.074 to read as follows:
1-29           Sec. 242.074.  NOTIFICATION OF CHANGE IN FINANCIAL CONDITION.
1-30     (a)  An institution shall notify the department of a significant
1-31     change in the institution's financial position, cash flow, or
1-32     results of operation that could adversely affect the institution's
1-33     delivery of essential services, including nursing services, dietary
1-34     services, and utilities, to residents of the institution.
1-35           (b)  The department may investigate the financial soundness
1-36     of an institution.  As part of its investigation, the department
1-37     may issue a subpoena to obtain the financial records of the
1-38     institution.
1-39           (c)  A person that knowingly files false information under
1-40     this section may be prosecuted under the Penal Code.
1-41           SECTION 3.  This Act takes effect September 1, 1999.
1-42           SECTION 4.  The importance of this legislation and the
1-43     crowded condition of the calendars in both houses create an
1-44     emergency and an imperative public necessity that the
1-45     constitutional rule requiring bills to be read on three several
1-46     days in each house be suspended, and this rule is hereby suspended.
1-47                                  * * * * *