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.