HBA-CCH H.B. 480 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 480 By: Naishtat Human Services 2/12/2001 Introduced BACKGROUND AND PURPOSE 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. RULEMAKING AUTHORITY 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. ANALYSIS 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 issued. EFFECTIVE DATE 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.