HBA-CCH C.S.H.B. 480 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 480 By: Naishtat Human Services 2/23/2001 Committee Report (Substituted) 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. C.S.H.B. 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 C.S.H.B. 480 amends the Health and Safety Code to set forth provisions regarding 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 investigation of the new operator and the issuance of the temporary license. The bill requires the Department of Human Services (DHS) to issue or deny a temporary license no later than the 30th day after the date of receipt of the completed application. After DHS issues a temporary license, DHS is required to conduct an inspection or survey of the nursing facility as soon as reasonably possible. During the time between the issuance of the temporary license and the inspection or survey of the facility, 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 the 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. If the applicant meets the requirements and passes an initial inspection or a subsequent inspection before the temporary license expires, the standard license is considered effective on the date requested in the application for a temporary license. 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. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute differs from the original by requiring DHS to issue or deny a temporary license no later than the 30th day after the date of receipt of the completed application. The substitute also provides for the effective date of the standard license if an applicant meets the requirements and passes inspection before the temporary license expires.