1-1                                   AN ACT
 1-2     relating to certain Medicaid costs incurred in relation to Medicaid
 1-3     recipients who are residents of long-term care facilities.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 32.024(v), Human Resources Code, as added
 1-6     by Chapter 1333, Acts of the 76th Legislature, Regular Session,
 1-7     1999, is amended to read as follows:
 1-8           (v)  The department shall set a [is authorized to increase
 1-9     the] personal needs allowance of not less than $60 [above the
1-10     minimum of $30] a month[, subject to the availability of funds,]
1-11     for a resident of a convalescent or nursing home or related
1-12     institution licensed under Chapter 242, Health and Safety Code,
1-13     personal care facility, ICF-MR facility, or other similar long-term
1-14     care facility who receives medical assistance.  The department may
1-15     send the personal needs allowance directly to a resident who
1-16     receives Supplemental Security Income (SSI) (42 U.S.C. Section 1381
1-17     et seq.). This subsection does not apply to a resident who is
1-18     participating in a medical assistance waiver program administered
1-19     by the department.
1-20           SECTION 2.  Section 32.021, Human Resources Code, is amended
1-21     by adding Subsection (p) to read as follows:
1-22           (p)  In order to increase the personal needs allowance under
1-23     Section 32.024(v), as added by Chapter 1333, Acts of the 76th
1-24     Legislature, Regular Session, 1999, the department shall develop an
 2-1     early warning system to detect fraud in the handling of the
 2-2     personal needs allowance and other funds of residents of long-term
 2-3     care facilities.
 2-4           SECTION 3.  Section 32.028, Human Resources Code, is amended
 2-5     by adding Subsection (h) to read as follows:
 2-6           (h)  The Health and Human Services Commission shall ensure
 2-7     that the rules governing the determination of rates paid for
 2-8     nursing home services provide for the rate component derived from
 2-9     reported liability insurance costs to be paid only to those homes
2-10     that purchase liability insurance acceptable to the  commission.
2-11           SECTION 4.  This Act takes effect September 1, 2001, and
2-12     applies only to a personal needs allowance paid on or after that
2-13     date.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 154 was passed by the House on May 8,
         2001, by a non-record vote; that the House refused to concur in
         Senate amendments to H.B. No. 154 on May 23, 2001, and requested
         the appointment of a conference committee to consider the
         differences between the two houses; and that the House adopted the
         conference committee report on H.B. No. 154 on May 27, 2001, by a
         non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 154 was passed by the Senate, with
         amendments, on May 21, 2001, by a viva-voce vote; at the request of
         the House, the Senate appointed a conference committee to consider
         the differences between the two houses; and that the Senate adopted
         the conference committee report on H.B. No. 154 on May 27, 2001, by
         a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor