HBA-BSM S.B. 772 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 772
By: Harris
Human Services
4/23/2001
Engrossed



BACKGROUND AND PURPOSE 

The Texas Department of Human Services (DHS) is responsible for reviewing
and approving an application to operate a nursing home in Texas.  Until the
application is approved, the facility cannot receive Medicaid and Medicare
funding.  There is currently no mechanism in place for DHS to gather and
use information on good nursing home operators to enable those operators to
expeditiously gain approval for a license to operate another existing
institution.  Senate Bill 772 requires DHS to list license holders that
have excellent operating records, and provides for the expedited approval
of a change of ownership license to current license holders that have
compiled excellent operating records according to information available to
DHS.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Department of Human Services
in SECTION 1 (Section 242.0335, Health and Safety Code) and SECTION 2 of
this bill. 

ANALYSIS

Senate Bill 772 amends the Health and Safety Code to require the Texas
Department of Human Services (DHS) to maintain and keep current a list of
license holders that operate a convalescent or nursing home or related
institution (institution) in Texas and that have excellent operating
records according to the information available to DHS.  The bill requires
DHS on or before March 1, 2002  to by rule establish specific criteria for
designating a license holder as eligible for the list.  S.B. 772  requires
DHS to establish a procedure under which a listed license holder may be
granted expedited approval in obtaining a change of ownership license to
operate another existing  institution in this state. The procedure is
authorized to involve allowing a listed license holder to submit an
affidavit demonstrating that the license holder continues to meet the
criteria for being listed and continues to meet all applicable requirements
that an applicant for renewal of a license must meet, including rules
adopted by DHS.  The bill specifies that any requirement relating to
inspections or an  accreditation review applies only to institutions
operated by the license holder at the time the application is made for the
change of ownership license.  

EFFECTIVE DATE

September 1, 2001.