By: Price (Senate Sponsor - Nelson) H.B. No. 3196
         (In the Senate - Received from the House May 8, 2013;
  May 9, 2013, read first time and referred to Committee on Health
  and Human Services; May 15, 2013, reported favorably by the
  following vote:  Yeas 8, Nays 0; May 15, 2013, sent to printer.)
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to licensing and certification requirements for certain
  health facilities and to the allocation of Medicaid beds in certain
  of those facilities; increasing fees.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 242.034(a), Health and Safety Code, is
  amended to read as follows:
         (a)  The board may establish by rule license fees for
  institutions licensed by the department under this chapter. The
  license fee may not exceed $375 [$250] plus:
               (1)  $15 [$10] for each unit of capacity or bed space
  for which a license is sought; and
               (2)  a background examination fee imposed under
  Subsection (d).
         SECTION 2.  Section 242.040, Health and Safety Code, is
  amended by amending Subsection (c) and adding Subsection (f) to
  read as follows:
         (c)  The board by rule may adopt standards for the
  specialized care and treatment of persons with Alzheimer's disease
  and related disorders and provide procedures for institutions
  applying for certification under this section. The rules must
  provide for a three-year certification period [annual
  certification].
         (f)  The executive commissioner by rule shall adopt a system
  under which an appropriate number of certifications issued by the
  department expire on staggered dates occurring in each three-year
  period. If the expiration date of a certification changes as a
  result of this subsection, the department shall prorate the
  certification fee relating to that certification as appropriate.
         SECTION 3.  Section 32.0213, Human Resources Code, is
  amended by adding Subsections (d), (e), and (f) to read as follows:
         (d)  The executive commissioner of the Health and Human
  Services Commission by rule may require an applicant for Medicaid
  beds in a nursing facility under a Medicaid bed waiver application
  to provide a performance bond in the amount of $500,000 or other
  financial security as determined by the department to ensure that
  the applicant provides the Medicaid beds granted to the applicant
  under the waiver within the time frame required by the department.  
  A performance bond provided under this subsection must:
               (1)  be executed by a corporate entity in accordance
  with Subchapter A, Chapter 3503, Insurance Code;
               (2)  be in a form approved by the department; and
               (3)  clearly and prominently display on the face of the
  bond or on an attachment to the bond:
                     (A)  the name, mailing address, physical address,
  and telephone number, including the area code, of the surety
  company to which any notice of claim should be sent; or
                     (B)  the toll-free telephone number maintained by
  the Texas Department of Insurance under Subchapter B, Chapter 521,
  Insurance Code, and a statement that the address of the surety
  company to which any notice of claim should be sent may be obtained
  from the Texas Department of Insurance by calling the toll-free
  telephone number.
         (e)  The department may not require an applicant for Medicaid
  beds in a nursing facility to obtain a performance bond from a
  specific insurance or surety agency, agent, or broker.
         (f)  The executive commissioner by rule shall adopt criteria
  to exempt certain applicants for Medicaid beds from the
  requirements of Subsection (d), including applicants that are
  licensed facilities with existing Medicaid bed allocations,
  criminal justice facilities, teaching facilities, and state
  veterans homes, and any other applicants that the executive
  commissioner finds good cause to exempt. The executive
  commissioner may modify the criteria for granting exemptions under
  this subsection as necessary to meet the objectives of Subsection
  (d).
         SECTION 4.  (a)  Section 242.034(a), Health and Safety Code,
  as amended by this Act, applies only to a license application,
  including a renewal application, filed on or after the effective
  date of this Act. A license application, including a renewal
  application, filed before that date is governed by the law in effect
  on the date the application was filed, and the former law is
  continued in effect for that purpose.
         (b)  Sections 32.0213(d), (e), and (f), Human Resources
  Code, as added by this Act, apply only to an application filed on or
  after the effective date of this Act for Medicaid beds in a nursing
  facility. An application filed before that date is governed by the
  law in effect on the date the application was filed, and the former
  law is continued in effect for that purpose.
         SECTION 5.  This Act takes effect September 1, 2013.
 
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