By:  Zaffirini, Moncrief                                S.B. No. 37
                                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
 1-5     Code, is amended by adding Section 242.0335 to read as follows:
 1-6           Sec. 242.0335.  TEMPORARY CHANGE OF OWNERSHIP LICENSE.
 1-7     (a)  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)  After the department issues a temporary change of
1-21     ownership license to the applicant, the department shall conduct an
1-22     inspection or survey of the nursing facility under Section 242.043
1-23     as soon as reasonably possible.  During the period between the
1-24     issuance of the temporary license and the inspection or survey of
1-25     the nursing facility, the department may not place a hold on vendor
 2-1     payments to the temporary license holder.
 2-2           (d)  After conducting an inspection or survey under
 2-3     Subsection (c), the department shall issue a license under Section
 2-4     242.033 to the temporary license holder if the nursing facility
 2-5     passes the inspection or survey and meets the requirements of
 2-6     Section 242.033.  If the nursing facility fails to pass the
 2-7     inspection or survey or meet the requirements of Section 242.033,
 2-8     the department may:
 2-9                 (1)  place a hold on vendor payments to the temporary
2-10     license holder; and
2-11                 (2)  take any other action authorized under this
2-12     chapter.
2-13           (e)  A temporary license issued under Subsection (b) expires
2-14     on the 91st day after the date the license was issued.
2-15           SECTION 2.  This Act takes effect September 1, 2001.  The
2-16     change in law made by this Act applies only in relation to an
2-17     application for a change of ownership license submitted on or after
2-18     January 1, 2002.  An application for a change of ownership license
2-19     submitted before January 1, 2002, is governed by the law in effect
2-20     immediately before September 1, 2001, and that law is continued in
2-21     effect for that purpose.