SRC-CTC S.B. 37 77(R)BILL ANALYSIS


Senate Research CenterS.B. 37
By: Zaffirini
Health & Human Services
6/8/2001
Enrolled


DIGEST AND PURPOSE 

Currently, new operators who agree to take over a nursing facility must
address prior deficiencies before Medicaid reimbursement payments will
resume.  A temporary license, which will convert to a conventional license
upon a successful survey inspection, will restore Medicaid reimbursements
to a new owner and provide time to address prior deficiencies.  S.B. 37
establishes a temporary license for facility operators going through the
change of ownership process. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 242B, Health and Safety Code, by adding Section
242.0335, as follows: 

Sec. 242.0335. TEMPORARY CHANGE OF OWNERSHIP LICENSE.  (a) Defines
"temporary change of ownership license."   

(b) Requires that the Texas Department of Human Services (department) issue
a temporary license to an applicant, provided that the applicant and any
other person described by Section 242.032(c) meet the requirements and
standards of the department under Sections 242.032 (c), (d) and (e).   

(c) Requires the department to issue or deny a temporary license not later
than the 30th day after the date of receipt of the completed application. 

(d) Requires the department to conduct an inspection or survey of the
nursing facility after the issuance of the temporary change of ownership
license and prohibits the department from placing a hold on vendor payments
to the temporary license holder until the inspection or survey is
completed.   

(e) Requires the department to issue a license under Section 242.033 to the
temporary license holder if the nursing facility passes the inspection or
survey, and meets the requirements of Section 242.033.  Authorizes the
department to place a hold on payments to the temporary license holder or
take other actions authorized under this chapter if the nursing facility
fails to pass the inspection or meet requirements under Section 242.033.   

(f) Provides that the license issued under Section 242.033 is considered
effective on the date requested in the application for a temporary change
of ownership under certain conditions. 
  
 (g) Provides that a temporary license issued under Subsection (b) expires
90 days from its issuance. 

SECTION 2. Effective date: September 1, 2001.
                      Makes application of this Act prospective to January
1, 2002.