H.B. No. 2972
 
 
 
 
AN ACT
  relating to licensing of certain health facilities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 242.0021, Health and Safety Code, is
  amended by adding Subsection (b-1) to read as follows:
         (b-1)  Notwithstanding any other provision of this section,
  for purposes of this chapter, a controlling person of an
  institution or of a management company or other business entity
  described by Subsection (b)(1) that is a publicly traded
  corporation or is controlled by a publicly traded corporation means
  an officer or director of the corporation. The term does not
  include a shareholder or lender of the publicly traded corporation.
         SECTION 2.  Section 242.039, Health and Safety Code, is
  amended by adding Subsection (g) to read as follows:
         (g)  The executive commissioner of the Health and Human
  Services Commission shall adopt rules to implement an expedited
  inspection process that allows an applicant for a license or for a
  renewal of a license to obtain a life safety code and physical plant
  inspection not later than the 15th day after the date the request is
  made. The department may charge a fee to recover the cost of the
  expedited inspection.  The rules must permit the department to set
  different fee amounts based on the size and type of institution.
         SECTION 3.  Section 247.005, Health and Safety Code, is
  amended by adding Subsection (b-1) to read as follows:
         (b-1)  Notwithstanding any other provision of this section,
  for purposes of this chapter, a controlling person of an assisted
  living facility or of a management company or other business entity
  described by Subsection (b)(1) that is a publicly traded
  corporation or is controlled by a publicly traded corporation means
  an officer or director of the corporation. The term does not
  include a shareholder or lender of the publicly traded corporation.
         SECTION 4.  Section 247.021, Health and Safety Code, is
  amended by amending Subsections (d), (g), and (h) and adding
  Subsections (d-1), (d-2), and (d-3) to read as follows:
         (d)  The department by rule shall establish procedures to
  issue a six-month provisional license to existing facilities with
  residents. The department may issue a provisional license [only]
  if:
               (1)  the facility is in compliance with resident care
  standards;
               (2)  the facility voluntarily discloses that the
  facility needs additional time to comply with life safety code and
  physical plant standards;
               (3)  the disclosure is made in writing by certified
  mail to the department;
               (4)  an investigation of the violation was not
  initiated and the violation was not independently detected by the
  department; and
               (5)  the disclosure is made promptly after knowledge of
  the information disclosed is obtained by the facility.
         (d-1)  A provisional license expires the earlier of:
               (1)  the 180th day after the effective date of the
  provisional license or the end of any extension period granted by
  the department, in the department's sole discretion; or
               (2)  the date a license is issued to the provisional
  license holder under Subsection (d-3).
         (d-2)  The department shall conduct a life safety code
  inspection of the facility as soon as reasonably possible after the
  department issues a provisional license.
         (d-3)  After conducting a life safety code inspection, the
  department shall issue a license under Section 247.023 to the
  provisional license holder if the facility passes the inspection
  and the applicant meets all requirements for a license. A license
  issued under this subsection has the same effective date as the
  provisional license.
         (g)  The [Notwithstanding Subsection (f), the] department
  shall, upon submission of a written request by the applicant, [may]
  automatically issue a provisional license to a newly constructed
  facility if:
               (1)  the facility is in compliance with resident care
  standards;
               (2)  all local approvals have been obtained;
               (3)  a complete license application is submitted within
  30 days of receipt of all local approvals; [and]
               (4)  the license fee has been paid;
               (5)  before beginning construction, the license
  applicant submits working drawings and specifications to the
  department for review; and
               (6)  the department determines that the license
  applicant constructed another facility in this state that complies
  with the department's life safety code standards.
         (h)  The [Notwithstanding Subsection (f), the] department
  may automatically issue a provisional license in the case of a
  corporate change of ownership of a facility.
         SECTION 5.  Subchapter B, Chapter 247, Health and Safety
  Code, is amended by adding Section 247.0211 to read as follows:
         Sec. 247.0211.  EXPEDITED LIFE SAFETY CODE INSPECTION. (a)
  The executive commissioner of the Health and Human Services
  Commission shall adopt rules to implement an expedited inspection
  process that allows an applicant for an assisted living facility
  license or for a renewal of a license to obtain a life safety code
  and physical plant inspection not later than the 15th day after the
  date the request is made.
         (b)  The department may charge a fee to recover the cost of
  the expedited inspection.
         SECTION 6.  Section 247.022, Health and Safety Code, is
  amended by adding Subsection (b-1) to read as follows:
         (b-1)  If the department conducts more than two life safety
  code inspections at the applicant's facility, the department may
  collect a fee in addition to the fee under Subsection (b) for the
  application for the license.
         SECTION 7.  Subchapter B, Chapter 247, Health and Safety
  Code, is amended by adding Section 247.0262 to read as follows:
         Sec. 247.0262.  REPORT ON LIFE SAFETY CODE SURVEYS. (a) The
  department shall annually report the number of life safety code
  surveys for an initial assisted living facility license with
  respect to which the department first visits the facility to
  conduct the survey more than 60 days after the date the applicant
  notifies the department that the applicant is ready for the initial
  survey.
         (b)  The department may report other data related to the
  timeliness of life safety code surveys or the processing time of
  license applications.
         (c)  The department may include the information described by
  Subsections (a) and (b) in any required annual regulatory report.
         SECTION 8.  Section 247.032(a), Health and Safety Code, is
  amended to read as follows:
         (a)  In this section, "accreditation commission" means the
  Commission on Accreditation of Rehabilitation Facilities, [or] the
  Joint Commission on Accreditation of Healthcare Organizations, or
  another organization approved by the executive commissioner of the
  Health and Human Services Commission.
         SECTION 9.  Sections 247.021(e) and (f), Health and Safety
  Code, are repealed.
         SECTION 10.  Not later than June 1, 2010, the executive
  commissioner of the Health and Human Services Commission shall
  adopt rules to implement the expedited inspection processes as
  required by Sections 242.039(g) and 247.0211, Health and Safety
  Code, as added by this Act.
         SECTION 11.  This Act takes effect September 1, 2009.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2972 was passed by the House on May 4,
  2009, by the following vote:  Yeas 142, Nays 0, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 2972 on May 23, 2009, by the following vote:  Yeas 144, Nays 0,
  1 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 2972 was passed by the Senate, with
  amendments, on May 19, 2009, by the following vote:  Yeas 30, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor