80R22319 YDB-F
 
  By: Davis of Harris H.R. No. 2588
 
 
R E S O L U T I O N
 
         BE IT RESOLVED by the House of Representatives of the State of
  Texas, 80th Legislature, Regular Session, 2007, That House Rule 13,
  Section 9(a), be suspended in part as provided by House Rule 13,
  Section 9(f), to enable the conference committee appointed to
  resolve the differences on Senate Bill 344 (additional exit
  conference required following inspection, survey, or investigation
  of, and temporary change of ownership licenses for, certain
  facilities) to consider and take action on the following matter:
         House Rule 13, Sections 9(a)(3) and (4), are suspended to
  permit the committee to add the following:
         SECTION 2.  Section 242.0336, Health and Safety Code, is
  amended by amending Subsections (a) and (c) through (g) and adding
  Subsections (b-1) through (b-5), (c-1), 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)  notification, in writing, of the intent of the
  institution's existing license holder to transfer operation of the
  institution to the applicant beginning on a date specified by the
  applicant.
         (b-2)  Notwithstanding Section 242.0335, the department
  shall establish criteria under which the department may waive the
  30-day requirement or the notification requirement of Subsection
  (b-1). The criteria may include the occurrence of forcible entry
  and detainer, death, or divorce or other events that affect the
  ownership of the institution by the existing license holder.
         (b-3)  After receipt of an application or written
  notification described by Subsection (b-1), the department may
  place a hold on payments to the existing license holder in an amount
  not to exceed the average of the monthly vendor payments paid to the
  facility, as determined by the department. The department shall
  release funds to the previous license holder not later than the
  120th day after the date on which the final reporting requirements
  are met and any resulting informal reviews or formal appeals are
  resolved. The department may reduce the amount of funds released to
  the previous license holder by the amount owed to the department or
  the Health and Human Services Commission under the previous license
  holder's Medicaid contract or license.
         (b-4)  The executive commissioner of the Health and Human
  Services Commission shall adopt rules for the department that
  define a change of ownership. In adopting the rules, the executive
  commissioner shall consider:
               (1)  the proportion of ownership interest that is being
  transferred to another person;
               (2)  the addition or removal of a stockholder, partner,
  owner, or other controlling person;
               (3)  the reorganization of the license holder into a
  different type of business entity; and
               (4)  the death or incapacity of a stockholder, partner,
  or owner.
         (b-5)  The executive commissioner may adopt rules for the
  department that require a license holder to notify the department
  of any change, including a change that is not a change of ownership,
  as that term is defined by rules adopted under Subsection (b-4).
  Nothing in this section prevents the department from acting under
  Section 242.061 or any other provision of this chapter.
         (c)  The department shall issue or deny a temporary change of
  ownership license not later than the 31st [30th] day after the date
  of receipt of the completed application. The effective date of a
  temporary change of ownership license issued under this section is
  the date requested in the application unless:
               (1)  the department does not receive the application
  and written notification described by Subsection (b-1) at least 30
  days before that date; and
               (2)  no waiver under Subsection (b-2) applies.
         (c-1)  If the department does not receive the application and
  written notification required by Subsection (b-1) at least 30 days
  before the effective date requested in the application and
  Subsection (b-2) does not apply, the effective date of the
  temporary change of ownership license is the 31st day after the date
  the department receives both the application and the notification.
         (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 or desk
  review under Subsection (d-1), 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) or (c-1) [requested in the
  application for a temporary change of ownership].
         (g)  A temporary change of ownership license issued under
  Subsection (b) expires on the 90th [91st] day after the effective
  date established under Subsection (c) or (c-1) [date the license
  was issued].
         Explanation: The addition of the SECTION to the bill is
  necessary to address a temporary change of ownership licenses for
  certain facilities.
         House Rule 13, Sections 9(a)(3) and (4), are suspended to
  permit the committee to add the following:
         SECTION 7.  (a) As soon as practicable after the effective
  date of this Act, the executive commissioner of the Health and Human
  Services Commission shall adopt the rules required by Section
  242.0336, Health and Safety Code, as amended by this Act.
         (b)  The changes in law made by this Act to Section 242.0336,
  Health and Safety Code, apply 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.
         Explanation: The addition of this provision is necessary to
  properly implement the addition of SECTION 2 to the conference
  committee report.