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A BILL TO BE ENTITLED
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AN ACT
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relating to temporary change of ownership licenses for nursing home |
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facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 242.0336, Health and Safety Code, is |
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amended by amending Subsections (a) and (c) through (g) and by |
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adding Subsections (b-1), (b-2), (c-1), (c-2), and (d-1) to read as |
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follows: |
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(a) For purposes of this section, a temporary change of |
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ownership license is a temporary 90-day license issued to an |
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applicant who proposes to become the new operator of an institution |
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existing on the date the application is filed. |
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(b-1) Except as provided by Subsection (b-2), the |
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department may not issue a temporary change of ownership license |
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before the 31st day after the date the department has received both: |
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(1) the application for the license; and |
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(2) the written consent of the institution's existing |
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license holder to the issuance of a temporary change of ownership |
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license. |
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(b-2) Notwithstanding Section 242.0335, the department |
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shall establish criteria under which the department may waive the |
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30-day requirement of Subsection (b-1) if the department finds |
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application of the requirement is impractical under the |
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circumstances, including circumstances involving legal proceedings |
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or other events that affect the ownership of the institution by the |
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existing license holder. |
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(c) The department shall issue or deny a temporary change of |
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ownership license not later than the 30th day after the date of |
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receipt of the completed application. |
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(c-1) After receipt of the application and written consent |
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described by Subsection (b-1), the department may place a 30-day |
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hold on vendor payments to the existing license holder. The |
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department shall establish criteria for the release of withheld |
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vendor payments to the existing license holder. |
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(c-2) The effective date of a temporary change of ownership |
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license issued under this section is the date requested in the |
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application unless the department does not receive the application |
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and written consent described by Subsection (b-1) at least 30 days |
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before that date, in which case the department may issue the |
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temporary change of ownership license effective on a date that |
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allows the department to place a 30-day hold on vendor payments to |
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the existing license holder. |
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(d) Except as provided in Subsection (d-1), after [After] |
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the department issues a temporary change of ownership license to |
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the applicant, the department shall conduct an inspection or survey |
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of the nursing facility under Section 242.043 as soon as reasonably |
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possible. During the period between the issuance of the temporary |
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license and the inspection or survey of the nursing facility, the |
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department may not place a hold on vendor payments to the temporary |
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license holder. |
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(d-1) The department shall establish criteria under which a |
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desk review of the facility's compliance with applicable |
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requirements may be substituted for the on-site inspection or |
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survey under Subsection (d). |
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(e) After conducting an inspection or survey under |
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Subsection (d) or a desk review under Subsection (d-1), the |
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department shall issue a license under Section 242.033 to the |
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temporary change of ownership license holder if the nursing |
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facility passes the desk review, inspection, or survey and the |
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applicant meets the requirements of Section 242.033. If the |
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nursing facility fails to pass the desk review, inspection, or |
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survey or the applicant fails to meet the requirements of Section |
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242.033, the department may: |
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(1) place a hold on vendor payments to the temporary |
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change of ownership license holder; and |
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(2) take any other action authorized under this |
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chapter. |
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(f) If the applicant meets the requirements of Section |
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242.033 and the nursing facility passes a desk review, [an] initial |
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inspection, or [a] subsequent inspection before the temporary |
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change of ownership license expires, the license issued under |
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Section 242.033 is considered effective on the date the department |
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determines under Subsection (c-2) [requested in the application for
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a temporary change of ownership]. |
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(g) A temporary change of ownership license issued under |
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Subsection (b) expires on the 91st day after the effective date |
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established under Subsection (c-2) [date the license was issued]. |
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SECTION 2. This Act applies only to a temporary change of |
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ownership license application received by the Department of Aging |
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and Disability Services on or after September 1, 2007. An |
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application received by the department before September 1, 2007, is |
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governed by the law in effect at the time the application is |
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received and the former law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2007. |