1-1     By:  Zaffirini, Moncrief                                S.B. No. 37
 1-2           (In the Senate - Filed November 13, 2000; January 10, 2001,
 1-3     read first time and referred to Committee on Health and Human
 1-4     Services; February 5, 2001, reported favorably by the following
 1-5     vote:  Yeas 9, Nays 0; February 5, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to establishing a temporary nursing facility license.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1.  Subchapter B, Chapter 242, Health and Safety
1-11     Code, is amended by adding Section 242.0335 to read as follows:
1-12           Sec. 242.0335.  TEMPORARY CHANGE OF OWNERSHIP LICENSE.
1-13     (a)  For purposes of this section, a temporary change of ownership
1-14     license is a temporary license issued to an applicant who proposes
1-15     to become the new operator of an institution existing on the date
1-16     the application is filed.
1-17           (b)  After receiving an application for a temporary change of
1-18     ownership license, the department shall issue a temporary license
1-19     to the applicant if, after investigation, the department finds that
1-20     the applicant and any other person described by Section 242.032(d)
1-21     meet:
1-22                 (1)  the requirements established under Section
1-23     242.032(c); and
1-24                 (2)  the department's standards for background and
1-25     qualifications under Sections 242.032(d) and (e).
1-26           (c)  After the department issues a temporary change of
1-27     ownership license to the applicant, the department shall conduct an
1-28     inspection or survey of the nursing facility under Section 242.043
1-29     as soon as reasonably possible.  During the period between the
1-30     issuance of the temporary license and the inspection or survey of
1-31     the nursing facility, the department may not place a hold on vendor
1-32     payments to the temporary license holder.
1-33           (d)  After conducting an inspection or survey under
1-34     Subsection (c), the department shall issue a license under Section
1-35     242.033 to the temporary license holder if the nursing facility
1-36     passes the inspection or survey and meets the requirements of
1-37     Section 242.033.  If the nursing facility fails to pass the
1-38     inspection or survey or meet the requirements of Section 242.033,
1-39     the department may:
1-40                 (1)  place a hold on vendor payments to the temporary
1-41     license holder; and
1-42                 (2)  take any other action authorized under this
1-43     chapter.
1-44           (e)  A temporary license issued under Subsection (b) expires
1-45     on the 91st day after the date the license was issued.
1-46           SECTION 2.  This Act takes effect September 1, 2001.  The
1-47     change in law made by this Act applies only in relation to an
1-48     application for a change of ownership license submitted on or after
1-49     January 1, 2002.  An application for a change of ownership license
1-50     submitted before January 1, 2002, is governed by the law in effect
1-51     immediately before September 1, 2001, and that law is continued in
1-52     effect for that purpose.
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