Office of House Bill AnalysisH.B. 480
By: Naishtat
Human Services


Under current law, when a new owner applies for a license to operate a
nursing facility already in operation in Texas the new owner may be
required to meet all the qualifications for a license before the Texas
Department of Human Services (DHS) will grant a nursing facility license.
If the facility has deficiencies, DHS has the authority to withhold
Medicaid reimbursements until the deficiencies are corrected. These
requirements discourage prospective buyers of nursing facilities and burden
new owners of facilities that are already experiencing financial
difficulties.  House Bill 480 requires DHS to issue a temporary license so
that new owners have more time to correct deficiencies, before receiving a
standard license.       


It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 


House Bill 480 amends the Health and Safety Code to establish a temporary
change of ownership license (temporary license) for a nursing facility.
The bill provides that the temporary  license  is issued  to an applicant
who proposes to become the new operator of a nursing facility on the date
the application is filed. The bill sets forth procedures for the issuance
of the temporary license, investigation of the new operator, and inspection
of the facility.  During the time between the issuance of the temporary
license and the inspection or survey of the facility, the Texas Department
of Human Services (DHS) is prohibited from placing a hold on vendor
payments to the temporary license holder. 

If the facility meets the requirements and passes inspection, DHS is
required to issue a standard license. If the facility fails to meet the
requirements for issuance and renewal of a standard license or fails
inspection, DHS is authorized to place a hold on vendor payments to the
temporary license holder and take other appropriate actions.  The temporary
license expires on the 91st day after the date the temporary license was


September 1, 2001.  This Act applies only in relation to an application for
a change of ownership license submitted on or after January 1, 2002.