By: Madden (Senate Sponsor - Deuell) H.B. No. 2392
         (In the Senate - Received from the House May 9, 2007;
  May 10, 2007, read first time and referred to Committee on Health
  and Human Services; May 18, 2007, reported adversely, with
  favorable Committee Substitute by the following vote:  Yeas 7,
  Nays 0; May 18, 2007, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 2392 By:  Deuell
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to escrow fees required for the construction and leasing
  of certain health facilities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter D, Chapter 246, Health and Safety
  Code, is amended by adding Sections 246.0735 and 246.0736 to read as
  follows:
         Sec. 246.0735.  PHASE-IN FACILITIES.  The commissioner may
  create requirements for escrow release different from those under
  Section 246.073 for facilities that obtain a certificate of
  authority issued under this subchapter before the commencement of
  facility construction.  A facility that meets the commissioner's
  requirements under this section is not required to satisfy Section
  246.073.
         Sec. 246.0736.  CONTINUING RELEASE OF ESCROW. (a) After the
  initial release of an entrance fee by an escrow agent for a specific
  facility, the commissioner shall authorize an escrow agent to
  continue to release escrowed entrance fees for that facility to the
  provider without further proof of satisfying the requirements of
  Section 246.073 if:
               (1)  the provider provides a monthly report to the
  department on marketing activities for living units of the
  facility; and
               (2)  the provider immediately informs the department of
  any problems, issues, or irregularities encountered in its
  marketing activities for the facility.
         (b)  If the provider fails to meet the requirements of
  Subsection (a), the commissioner may require the provider to
  satisfy the requirements of Section 246.073 before the commissioner
  authorizes the escrow agent to continue releasing escrowed entrance
  fees to the provider.
         (c)  The commissioner shall adopt rules to implement this
  section.
         SECTION 2.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2007.
 
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