1-1                                   AN ACT
 1-2     relating to requiring the Texas Department of Human Services to
 1-3     establish criteria for designating nursing facility operators with
 1-4     excellent operating records as eligible to acquire a license to
 1-5     operate another existing nursing facility on an expedited basis.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7           SECTION 1.  Subchapter B, Chapter 242, Health and Safety
 1-8     Code, is amended by adding Section 242.0335 to read as follows:
 1-9           Sec. 242.0335.  EXPEDITED ISSUANCE OF CHANGE OF OWNERSHIP
1-10     LICENSE TO CERTAIN CURRENT LICENSE HOLDERS.  (a)  The department
1-11     shall maintain, and keep current, a list of license holders that
1-12     operate an institution in this state and that have excellent
1-13     operating records according to the information available to the
1-14     department.  The department by rule shall establish specific
1-15     criteria for designating a license holder as eligible for the list.
1-16           (b)  The department shall establish a procedure under which a
1-17     listed license holder may be granted expedited approval in
1-18     obtaining a change of ownership license to operate another existing
1-19     institution in this state.  The procedure may involve allowing a
1-20     listed license holder to submit an affidavit demonstrating that the
1-21     license holder continues to meet the criteria for being listed and
1-22     continues to meet the requirements described by Subsection (c).
1-23           (c)  An applicant for a change of ownership license must meet
1-24     all applicable requirements that an applicant for renewal of a
1-25     license must meet under this subchapter, including under Section
 2-1     242.032(d), and under rules that the department has adopted under
 2-2     this subchapter.  Any requirement relating to inspections or to an
 2-3     accreditation review applies only to institutions operated by the
 2-4     license holder at the time the application is made for the change
 2-5     of ownership license.
 2-6           SECTION 2.  (a)  This Act takes effect September 1, 2001.
 2-7           (b)  The Texas Department of Human Services shall adopt rules
 2-8     under Section 242.0335, Health and Safety Code, as added by this
 2-9     Act, on or before March 1, 2002.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 772 passed the Senate on
         April 18, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 772 passed the House on
         May 16, 2001, by a non-record vote.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor