85R2473 EES-F
 
  By: Clardy H.B. No. 2570
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to Medicaid beds in nursing facilities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 32.0213, Human Resources Code, is
  amended by adding Subsections (g) through (u) to read as follows:
         (g)  Notwithstanding Subsection (f), the commission may not
  exempt applicants for Medicaid beds from the requirements of
  Subsection (d) on or after September 1, 2017, and before September
  1, 2021.
         (h)  Except as provided in Subsection (i), the commission may
  not contract for new nursing facility beds under Medicaid unless
  the statewide occupancy rate of certified Medicaid beds is more
  than 90 percent, as determined by the commission annually on
  September 1. 
         (i)  Notwithstanding Subsection (h), the commission may
  contract for new Medicaid beds in the following types of nursing
  facilities:
               (1)  subject to Subsection (k), that is under
  development on September 1, 2017, and for which there has been filed
  with the commission an application for Medicaid beds;
               (2)  subject to Subsections (m), (n), (o), and (p), a
  small house nursing facility;
               (3)  subject to Subsections (q) and (r), a replacement
  nursing facility, without regard to whether the nursing facility is
  under development or has been constructed on September 1, 2017; 
               (4)  subject to Subsection (s), a nursing facility
  located in a county where the occupancy rate of certified Medicaid
  beds is more than 85 percent, as determined by the commission on
  September 1 and March 1 of a particular year; and
               (5)  subject to Subsection (t), a nursing facility
  without any unoccupied Medicaid beds for the purpose of providing a
  temporary Medicaid bed for a resident of the nursing facility who
  has exhausted the resident's resources and, as a result, is newly
  eligible for Medicaid.
         (j)  Deadlines and any other time limitations relating to the
  commission's allocation or certification of Medicaid beds for
  nursing facilities not yet under development on September 1, 2017,
  and prohibited under Subsection (h) are tolled until September 1,
  2021.
         (k)  For purposes of Subsections (i)(1) and (j):
               (1)  a nursing facility is considered under development
  if:
                     (A)  funding to construct the nursing facility has
  been secured and is being used to construct the nursing facility;
                     (B)  any zoning requirements relating to the
  construction of the nursing facility have been met;
                     (C)  complete construction design plans for the
  nursing facility have been submitted to the appropriate
  governmental entities regulating fire and building safety not later
  than September 1, 2017; and
                     (D)  ongoing construction activities are
  occurring at the nursing facility site; and
               (2)  the commission, in the commission's sole
  discretion, shall determine whether an applicant for Medicaid beds
  meets the requirements of this subsection.
         (l)  The construction design plans described in Subsection
  (k)(1)(c) must be an accurate and true depiction of the nursing
  facility that is being constructed but may be modified in order to
  make technical changes, correct errors and omissions, or comply
  with zoning or other requirements of a governmental entity. 
         (m)  The executive commissioner by rule shall define "small
  house nursing facility" for purposes of this section.
         (n)  The commission may not contract under Subsection (i)(2)
  for more than:
               (1)  50 Medicaid beds per small house nursing facility
  per year; and
               (2)  a total of 100 new Medicaid beds for small house
  nursing facilities statewide per year.
         (o)  The commission shall approve completed applications for
  Medicaid beds by or on behalf of small house nursing facilities
  under Subsection (i)(2) in the order in which the applications are
  received by the commission.
         (p)  The commission shall rescind approval of an application
  described by Subsection (o) if:
               (1)  the small house nursing facility is not
  operational on the anniversary of the date the facility's
  application was approved; and
               (2)  the commission has previously denied an
  application for additional Medicaid beds by or on behalf of another
  small house nursing facility because of the limitation on the total
  number of Medicaid beds contained in Subsection (n)(2). 
         (q)  The commission may contract for Medicaid beds in a
  replacement nursing facility under Subsection (i)(3) only if:
               (1)  the replacement nursing facility:
                     (A)  is licensed under Chapter 242, Health and
  Safety Code; and
                     (B)  is located in the same county as the nursing
  facility that is being replaced; and
               (2)  the nursing facility that is being replaced:
                     (A)  is licensed under Chapter 242, Health and
  Safety Code, on September 1, 2017; and
                     (B)  surrenders the license described by
  Paragraph (A) not later than the 60th day after the date the
  replacement nursing facility is licensed under Chapter 242, Health
  and Safety Code.
         (r)  The commission may not contract for more Medicaid beds
  for a replacement nursing facility under Subsection (i)(3) than
  were contracted for the nursing facility that the replacement
  nursing facility replaced.
         (s)  The commission may not contract under Subsection (i)(4)
  for:
               (1)  more than 50 Medicaid beds per nursing facility;
  or
               (2)  a number of Medicaid beds that would result in a
  countywide occupancy rate of certified Medicaid beds that is below
  the statewide occupancy rate. 
         (t)  The executive commissioner by rule shall develop a
  process for contracting for temporary Medicaid beds under
  Subsection (i)(5).
         (u)  Subsections (g) through (t) and this subsection expire
  September 1, 2021.
         SECTION 2.  Section 32.0244, Human Resources Code, is
  amended by adding Subsection (e) to read as follows:
         (e)  Notwithstanding Subsections (a) through (d), the
  commission may not contract for new nursing facility beds under
  this section on or after September 1, 2017, and before September 1,
  2021. This subsection expires September 1, 2021.
         SECTION 3.  Section 32.0245, Human Resources Code, is
  amended to read as follows:
         Sec. 32.0245.  NURSING FACILITY BEDS FOR CERTAIN FACILITIES
  TREATING ALZHEIMER'S DISEASE.  (a) The commission shall waive for a
  nursing facility a restriction imposed by state law on the
  authority to contract under the state Medicaid program for nursing
  facility beds based on the percentage of beds that are occupied in a
  geographical area if the facility:
               (1)  is affiliated with a medical school operated by
  the state;
               (2)  is participating in a research program for the
  care and treatment of persons with Alzheimer's disease; and
               (3)  is designed to separate and treat Alzheimer's
  disease by stage or functional level.
         (b)  Notwithstanding Subsection (a), the commission may not
  waive a restriction on the commission's authority to contract for
  nursing facility beds under this section on or after September 1,
  2017, and before September 1, 2021. This subsection expires
  September 1, 2021.
         SECTION 4.  If before implementing any provision of this Act
  a state agency determines that a waiver or authorization from a
  federal agency is necessary for implementation of that provision,
  the agency affected by the provision shall request the waiver or
  authorization and may delay implementing that provision until the
  waiver or authorization is granted.
         SECTION 5.  This Act takes effect September 1, 2017.