83R10095 KKR-F
 
  By: Price H.B. No. 3196
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to licensing, certification, and arbitration requirements
  for certain health facilities and to the allocation of Medicaid
  beds in those facilities; increasing fees.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 242.034(a), Health and Safety Code, is
  amended to read as follows:
         (a)  The board may establish by rule license fees for
  institutions licensed by the department under this chapter. The
  license fee may not exceed $375 [$250] plus:
               (1)  $15 [$10] for each unit of capacity or bed space
  for which a license is sought; and
               (2)  a background examination fee imposed under
  Subsection (d).
         SECTION 2.  Section 242.040, Health and Safety Code, is
  amended by amending Subsection (c) and adding Subsection (f) to
  read as follows:
         (c)  The board by rule may adopt standards for the
  specialized care and treatment of persons with Alzheimer's disease
  and related disorders and provide procedures for institutions
  applying for certification under this section. The rules must
  provide for a three-year certification period [annual
  certification].
         (f)  The executive commissioner by rule shall adopt a system
  under which an appropriate number of certifications issued by the
  department expire on staggered dates occurring in each three-year
  period. If the expiration date of a certification changes as a
  result of this subsection, the department shall prorate the
  certification fee relating to that certification as appropriate.
         SECTION 3.  Section 242.252(a), Health and Safety Code, is
  amended to read as follows:
         (a)  Except as provided by Subsection (d), an affected
  institution or the department may elect binding arbitration of any
  dispute to which this subchapter applies. Arbitration under this
  subchapter is an alternative to a contested case hearing or to a
  judicial proceeding relating to the assessment of a civil penalty.
         SECTION 4.  Section 32.0213, Human Resources Code, is
  amended by adding Subsections (d) and (e) to read as follows:
         (d)  The department by rule may require an applicant for
  additional Medicaid beds in a nursing facility to provide a
  performance bond payable to the department in the amount of
  $500,000 conditioned on the applicant providing the Medicaid beds
  granted to the applicant within the time frame required by the
  department.  The performance bond must:
               (1)  be executed by a corporate entity in accordance
  with Subchapter A, Chapter 3503, Insurance Code;
               (2)  be in a form approved by the attorney general; and
               (3)  clearly and prominently display on the face of the
  bond or on an attachment to the bond:
                     (A)  the name, mailing address, physical address,
  and telephone number, including the area code, of the surety
  company to which any notice of claim should be sent; or
                     (B)  the toll-free telephone number maintained by
  the Texas Department of Insurance under Subchapter B, Chapter 521,
  Insurance Code, and a statement that the address of the surety
  company to which any notice of claim should be sent may be obtained
  from the Texas Department of Insurance by calling the toll-free
  telephone number.
         (e)  The department may not require an applicant for
  additional Medicaid beds in a nursing home to obtain a performance
  bond from a specific insurance or surety agency, agent, or broker.
         SECTION 5.  (a)  Section 242.034(a), Health and Safety Code,
  as amended by this Act, applies only to a license application,
  including a renewal application, filed on or after the effective
  date of this Act. A license application, including a renewal
  application, filed before the effective date of this Act is
  governed by the law in effect when the application was filed, and
  the former law is continued in effect for that purpose.
         (b)  Sections 32.0213(d) and (e), Human Resources Code, as
  added by this Act, apply only to an application for additional
  nursing home beds filed on or after the effective date of this Act.
  An application filed before that date is governed by the law in
  effect on the date the application is filed, and that law is
  continued in effect for that purpose.
         SECTION 6.  This Act takes effect September 1, 2013.