80R4731 JLL-D

By: Davis of Harris H.B. No. 3513

A BILL TO BE ENTITLED

AN ACT

relating to temporary change of ownership licenses for nursing home facilities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 242.0336, Health and Safety Code, is amended by amending Subsections (a) and (c) through (g) and by adding Subsections (b-1), (b-2), (c-1), (c-2), and (d-1) to read as follows:

(a) For purposes of this section, a temporary change of ownership license is a temporary 90-day license issued to an applicant who proposes to become the new operator of an institution existing on the date the application is filed.

(b-1) Except as provided by Subsection (b-2), the department may not issue a temporary change of ownership license before the 31st day after the date the department has received both:

(1) the application for the license; and

(2) the written consent of the institution's existing license holder to the issuance of a temporary change of ownership license.

(b-2) Notwithstanding Section 242.0335, the department shall establish criteria under which the department may waive the 30-day requirement of Subsection (b-1) if the department finds application of the requirement is impractical under the circumstances, including circumstances involving legal proceedings or other events that affect the ownership of the institution by the existing license holder.

(c) The department shall issue or deny a temporary change of ownership license not later than the 30th day after the date of receipt of the completed application.

(c-1) After receipt of the application and written consent described by Subsection (b-1), the department may place a 30-day hold on vendor payments to the existing license holder. The department shall establish criteria for the release of withheld vendor payments to the existing license holder.

(c-2) The effective date of a temporary change of ownership license issued under this section is the date requested in the application unless the department does not receive the application and written consent described by Subsection (b-1) at least 30 days before that date, in which case the department may issue the temporary change of ownership license effective on a date that allows the department to place a 30-day hold on vendor payments to the existing license holder.

(d) Except as provided in Subsection (d-1), after [After] the department issues a temporary change of ownership license to the applicant, the department shall conduct an inspection or survey of the nursing facility under Section 242.043 as soon as reasonably possible. During the period between the issuance of the temporary license and the inspection or survey of the nursing facility, the department may not place a hold on vendor payments to the temporary license holder.

(d-1) The department shall establish criteria under which a desk review of the facility's compliance with applicable requirements may be substituted for the on-site inspection or survey under Subsection (d).

(e) After conducting an inspection or survey under Subsection (d) or a desk review under Subsection (d-1), the department shall issue a license under Section 242.033 to the temporary change of ownership license holder if the nursing facility passes the desk review, inspection, or survey and the applicant meets the requirements of Section 242.033. If the nursing facility fails to pass the desk review, inspection, or survey or the applicant fails to meet the requirements of Section 242.033, the department may:

(1) place a hold on vendor payments to the temporary change of ownership license holder; and

(2) take any other action authorized under this chapter.

(f) If the applicant meets the requirements of Section 242.033 and the nursing facility passes a desk review, [an] initial inspection, or [a] subsequent inspection before the temporary change of ownership license expires, the license issued under Section 242.033 is considered effective on the date the department determines under Subsection (c-2) [requested in the application for a temporary change of ownership].

(g) A temporary change of ownership license issued under Subsection (b) expires on the 91st day after the effective date established under Subsection (c-2) [date the license was issued].

SECTION 2. This Act applies only to a temporary change of ownership license application received by the Department of Aging and Disability Services on or after September 1, 2007. An application received by the department before September 1, 2007, is governed by the law in effect at the time the application is received and the former law is continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2007.