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


Senate Research Center   S.B. 37
77R525 PAM-DBy: Zaffirini
Health & Human Services
1/26/2001
As Filed


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.  As
proposed, 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.  Defines "temporary
change of ownership license."  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(d)
meet the requirements and standards of the department under Sections
242.032 (c), (d) and (e).  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.  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. 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.