77R6624 YDB-D                           
         By Naishtat                                            H.B. No. 480
         Substitute the following for H.B. No. 480:
         By Naishtat                                        C.S.H.B. No. 480
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to establishing a temporary nursing facility license.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Subchapter B, Chapter 242, Health and Safety Code,
 1-5     is amended by adding Section 242.0335 to read as follows:
 1-6           Sec. 242.0335.  TEMPORARY CHANGE OF OWNERSHIP LICENSE. (a)
 1-7     For purposes of this section, a temporary change of ownership
 1-8     license is a temporary license issued to an applicant who proposes
 1-9     to become the new operator of an institution existing on the date
1-10     the application is filed.
1-11           (b)  After receiving an application for a temporary change of
1-12     ownership license, the department shall issue a temporary license
1-13     to the applicant if, after investigation, the department finds that
1-14     the applicant and any other person described by Section 242.032(d)
1-15     meet:
1-16                 (1)  the requirements established under Section
1-17     242.032(c); and
1-18                 (2)  the department's standards for background and
1-19     qualifications under Sections 242.032(d) and (e).
1-20           (c)  The department shall issue or deny a temporary license
1-21     not later than the 30th day after the date of receipt of the
1-22     completed application.
1-23           (d)  After the department issues a temporary change of
1-24     ownership license to the applicant, the department shall conduct an
 2-1     inspection or survey of the nursing facility under Section 242.043
 2-2     as soon as reasonably possible.  During the period between the
 2-3     issuance of the temporary license and the inspection or survey of
 2-4     the nursing facility, the department may not place a hold on vendor
 2-5     payments to the temporary license holder.
 2-6           (e)  After conducting an inspection or survey under
 2-7     Subsection (d), the department shall issue a license under Section
 2-8     242.033 to the temporary license holder if the nursing facility
 2-9     passes the inspection or survey and meets the requirements of
2-10     Section 242.033.  If the nursing facility fails to pass the
2-11     inspection or survey or meet the requirements of Section 242.033,
2-12     the department may:
2-13                 (1)  place a hold on vendor payments to the temporary
2-14     license holder; and
2-15                 (2)  take any other action authorized under this
2-16     chapter.
2-17           (f)  If the applicant meets the requirements of Section
2-18     242.033 and passes an initial inspection or a subsequent inspection
2-19     before the temporary license expires, the license issued under
2-20     Section 242.033 is considered effective on the date requested in
2-21     the application for a temporary change of ownership.
2-22           (g)  A temporary license issued under Subsection (b) expires
2-23     on the 91st day after the date the license was issued.
2-24           SECTION 2. This Act takes effect September 1, 2001.  The
2-25     change in law made by this Act applies only in relation to an
2-26     application for a change of ownership license submitted on or after
2-27     January 1, 2002.  An application for a change of ownership license
 3-1     submitted before January 1, 2002, is governed by the law in effect
 3-2     immediately before September 1, 2001, and that law is continued in
 3-3     effect for that purpose.