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.