HBA-NLM S.B. 1292 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1292 By: Zaffirini Human Services 4/19/1999 Engrossed BACKGROUND AND PURPOSE Currently, the Texas Department of Human Services (department) lacks the authority to obtain financial information which would provide advance notice of significant changes in a nursing home's financial condition; this could adversely affect the delivery of services essential to the health and safety of residents. Some nursing homes have experienced heavy revenue losses resulting in their inability to meet payroll expenses. S.B. 1292 sets forth provisions regarding the monitoring of the financial condition of certain nursing facilities licensed by the department and provisions regarding the monitoring of the financial condition of certain nursing facilities licensed by the department. 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 242.074, Health and Safety Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 242.061(a), Health and Safety Code, to make conforming changes. SECTION 2. Amends Subchapter C, Chapter 242, Health and Safety Code, by adding Section 242.074, as follows: Sec. 242.074. NOTIFICATION OF CHANGE IN FINANCIAL CONDITION. (a)Requires an institution providing nursing home facilities (institution) to notify the Texas Department of Human Services (department) of a significant change in the institution's financial position, cash flow, or operation results that could adversely affect the institution's delivery of certain essential services to residents of the institution. (b) Authorizes the department to verify the financial condition of an institution. (c) Provides that a person who knowingly files false information under this section may be prosecuted under the Penal Code. (d) Requires the department to adopt rules to implement this section. Requires the rules to include the conditions that constitute a significant change in an institutions's financial condition that are required to be reported. (e) Provides that the information obtained by the department under this section is confidential and is not subject to disclosure under Chapter 552 (Public Information), Government Code. Authorizes the department to release information to the institution or to specified persons. (f) Provides that a person who knowingly discloses confidential information provided by this section commits a Class A misdemeanor. (g) Provides that the provisions of subsection (e) do not apply to an institution whose license has been revoked or suspended, or to the use of information in an administrative proceeding initiated by the department or in a judicial proceeding. SECTION 3.(a) Effective date: September 1, 1999. (b) Provides that Section 242.074(a), Health and Safety Code, as added by this Act, takes effect January 1, 2000. (c) Requires the department to adopt the rules required under Section 242.074(d), Health and Safety Code, as added by this Act, not later than December 31,1999. SECTION 4.Emergency clause.