By Lucio                                              S.B. No. 1523
         77R7480 KKA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to nursing facility bed certification under the state
 1-3     Medicaid program.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 32.0213, Human Resources Code, is amended
 1-6     to read as follows:
 1-7           Sec. 32.0213.  NURSING FACILITY BED CERTIFICATION AND
 1-8     DECERTIFICATION. (a)  The department by rule shall establish
 1-9     procedures for:
1-10                 (1)  controlling the number of Medicaid beds in nursing
1-11     facilities;
1-12                 (2)  decertification of unused Medicaid beds in nursing
1-13     facilities; and
1-14                 (3)  reallocation of nursing home beds decertified
1-15     under Subdivision (2) to other nursing facilities.
1-16           (b)  The department may establish and modify the procedures
1-17     through negotiated rulemaking.
1-18           (c)  The procedures established under this section must:
1-19                 (1)  take into account the occupancy rate of the
1-20     nursing facility; and
1-21                 (2)  encourage nursing facility competition for
1-22     Medicaid beds.
1-23           (d) [(c)]  The department may exempt a nursing facility from
1-24     the procedures established under this section if the facility:
 2-1                 (1)  is affiliated with a state-supported medical
 2-2     school;
 2-3                 (2)  is located on land owned or controlled by the
 2-4     state-supported medical school; and
 2-5                 (3)  serves as a teaching facility for physicians and
 2-6     related health care professionals.
 2-7           SECTION 2. (a)  The legislature approves the procedures
 2-8     established through negotiated rulemaking by the Texas Department
 2-9     of Human Services in compliance with Section 32.0213, Human
2-10     Resources Code, including any amendments to those procedures with
2-11     an effective date before April 1, 2001.
2-12           (b)  The legislature ratifies any waiver issued by the
2-13     commissioner of human services on or after September 1, 1997, and
2-14     before April 1, 2001, to a nursing facility relating to the number
2-15     of certified Medicaid beds at the facility, provided that the
2-16     facility complies with all applicable requirements for licensure
2-17     and certification.
2-18           SECTION 3.  This Act takes effect immediately if it receives
2-19     a vote of two-thirds of all the members elected to each house, as
2-20     provided by Section 39, Article III, Texas Constitution.  If this
2-21     Act does not receive the vote necessary for immediate effect, this
2-22     Act takes effect September 1, 2001.