Texas 2015 - 84th Regular

Texas House Bill HB2697 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Galindo, et al. (Senate Sponsor - Menéndez) H.B. No. 2697
2		-	(In the Senate - Received from the House May 4, 2015;
3		-	May 5, 2015, read first time and referred to Committee on Health
4		-	and Human Services; May 22, 2015, reported favorably by the
5		-	following vote: Yeas 9, Nays 0; May 22, 2015, sent to printer.)
6		-	Click here to see the committee vote
	1	+	H.B. No. 2697
7	2
8	3
9		-	A BILL TO BE ENTITLED
10	4		AN ACT
11	5		relating to services provided by continuing care facilities.
12	6		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	7		SECTION 1. Section 246.002(3), Health and Safety Code, is
14	8		redesignated as Section 246.0025, Health and Safety Code, and
15	9		amended to read as follows:
16	10		Sec. 246.0025. DEFINITION OF CONTINUING CARE. (a) In this
17	11		chapter, "continuing [(3) "Continuing] care" means the furnishing
18	12		of a living unit, together with personal care services, nursing
19	13		services, medical services, or other health-related services,
20	14		regardless of whether the services and the living unit are provided
21	15		at the same location:
22	16		(1) [(A)] to an individual who is not related by
23	17		consanguinity or affinity, as determined under Chapter 573,
24	18		Government Code, to the person furnishing the care; and
25	19		(2) [(B)] under a continuing care contract.
26	20		(b) The term "continuing care" includes the furnishing of
27	21		services described by Subsection (a) to an individual in the
28	22		individual's residence or otherwise enabling the individual to
29	23		remain in the individual's residence.
30	24		SECTION 2. Sections 246.002(5), (6), (10), and (12), Health
31	25		and Safety Code, are amended to read as follows:
32	26		(5) "Entrance fee" means an initial or deferred
33	27		transfer of money or other property valued at an amount exceeding
34	28		three months' payments for rent or services, made, or promised to be
35	29		made, as full or partial consideration for acceptance by a provider
36	30		of a specified individual entitled to receive continuing care under
37	31		a continuing care contract [as a resident]. The term does not
38	32		include a deposit made under a reservation agreement.
39	33		(6) "Facility" means an establishment that [a place in
40	34		which a person] provides continuing care to an individual. The term
41	35		does not include an individual's residence if the residence is not a
42	36		living unit provided by a provider.
43	37		(10) "Provider" means a person who undertakes to
44	38		provide continuing care under a continuing care contract to a
45	39		resident [in a facility].
46	40		(12) "Resident" means an individual entitled to
47	41		receive continuing care under this chapter [in a facility].
48	42		SECTION 3. Section 246.041(a), Health and Safety Code, is
49	43		amended to read as follows:
50	44		(a) A provider shall file with the board a current
51	45		disclosure statement that meets the requirements of this subchapter
52	46		and shall file copies of the agreements establishing the escrows
53	47		under Subchapter D or a verified statement explaining that an
54	48		escrow is not required before the provider:
55	49		(1) contracts to provide continuing care to a resident
56	50		[in a facility located or to be located] in this state;
57	51		(2) extends the term of an existing continuing care
58	52		contract with a resident [in a facility that is located or to be
59	53		located] in this state [and] that requires or allows an entrance fee
60	54		from any person, regardless of whether the extended contract
61	55		requires an entrance fee; or
62	56		(3) including a person acting on the provider's
63	57		behalf, solicits for an individual who is a resident of this state a
64	58		continuing care contract in this state.
65	59		SECTION 4. Section 246.048, Health and Safety Code, is
66	60		amended to read as follows:
67	61		Sec. 246.048. CONTENTS OF DISCLOSURE STATEMENT: CONTRACTS
68	62		AND FEES. The disclosure statement must describe:
69	63		(1) the services provided [at the facility] under a
70	64		continuing care contract, including:
71	65		(A) the extent to which medical care is
72	66		furnished; and
73	67		(B) those services that are included for
74	68		specified basic fees for continuing care and those services that
75	69		are made available at extra charge;
76	70		(2) all fees required of residents, including the
77	71		entrance fee and any periodic charges;
78	72		(3) the conditions under which a continuing care
79	73		contract [at the facility] may be canceled by the provider or the
80	74		resident;
81	75		(4) any conditions under which all or part of the
82	76		entrance fee is refundable on cancellation of the contract by the
83	77		provider or the resident, or by the death of the resident before or
84	78		during the occupancy of a living unit or otherwise before or during
85	79		the term of the contract; and
86	80		(5) the manner by which the provider may adjust
87	81		periodic charges or other recurring fees and any limitations on
88	82		those adjustments.
89	83		SECTION 5. Section 246.049, Health and Safety Code, is
90	84		amended to read as follows:
91	85		Sec. 246.049. CONTENTS OF DISCLOSURE STATEMENT: CHANGE OF
92	86		CIRCUMSTANCES. The disclosure statement for a continuing care
93	87		contract to provide continuing care in a living unit of a facility
94	88		must state:
95	89		(1) the policy of the facility regarding changes in
96	90		the number of people residing in a living unit because of marriage
97	91		or other relationships;
98	92		(2) the policy of the facility relating to the
99	93		admission of a spouse to the facility and the consequences if the
100	94		spouse does not meet the requirements for admission;
101	95		(3) the conditions under which a living unit occupied
102	96		by a resident may be made available by the facility to a different
103	97		resident other than on the death of the previous resident; and
104	98		(4) the health and financial conditions required for
105	99		acceptance as a resident and for continuation as a resident,
106	100		including the effect of any change in the health or financial
107	101		condition of an individual between the date of the continuing care
108	102		contract and the date on which the individual initially occupies a
109	103		living unit.
110	104		SECTION 6. Section 246.050(a), Health and Safety Code, is
111	105		amended to read as follows:
112	106		(a) The disclosure statement must:
113	107		(1) describe any provisions made or to be made to
114	108		provide reserve funding or security to enable the provider to fully
115	109		perform its obligations under a continuing care contract [at a
116	110		facility], including:
117	111		(A) the establishment of escrow accounts,
118	112		trusts, or reserve funds and the manner in which those funds will be
119	113		invested; and
120	114		(B) the name and experience of any individual in
121	115		the direct employment of the provider who will make the investment
122	116		decisions; and
123	117		(2) provide financial statements of the provider,
124	118		including:
125	119		(A) a balance sheet as of the end of the most
126	120		recent fiscal year; and
127	121		(B) income statements and a statement of cash
128	122		flow for each of the three most recent fiscal years that the
129	123		provider has been in existence.
130	124		SECTION 7. Section 246.056(b), Health and Safety Code, is
131	125		amended to read as follows:
132	126		(b) A resident who executes a continuing care contract to
133	127		provide continuing care in a living unit of a facility may not be
134	128		required to move into the facility before the expiration of the
135	129		period during which the contract may be rescinded.
136	130		SECTION 8. Section 246.057(a), Health and Safety Code, is
137	131		amended to read as follows:
138	132		(a) A continuing care contract to provide continuing care in
139	133		a living unit in a facility is canceled if the resident:
140	134		(1) dies before occupying a living unit in the
141	135		facility; or
142	136		(2) is precluded under the terms of the contract from
143	137		occupying a living unit in the facility because of illness, injury,
144	138		or incapacity.
145	139		SECTION 9. Subchapter D, Chapter 246, Health and Safety
146	140		Code, is amended by adding Section 246.0737 to read as follows:
147	141		Sec. 246.0737. CARE IN RESIDENCE. The commissioner by rule
148	142		shall establish requirements for escrow release different from
149	143		those under Section 246.073 for money received as an entrance fee in
150	144		connection with a continuing care contract in circumstances in
151	145		which a living unit is not furnished to the resident.
152	146		SECTION 10. Section 246.111(a), Health and Safety Code, is
153	147		amended to read as follows:
154	148		(a) To secure the obligations of the provider under any
155	149		continuing care contract, a lien attaches on the date a resident
156	150		first occupies a facility or receives services under a continuing
157	151		care contract. The lien covers the real and personal property of the
158	152		provider located at the facility. The provider shall prepare a
159	153		written notice sworn to by an officer of the provider for each
160	154		county where the provider has a facility. The notice must contain
161	155		the name of the provider, the legal description of each facility of
162	156		the provider, and a statement that the facility is subject to this
163	157		chapter and the lien provided by this section. The provider shall
164	158		file for record the notice in the real property records of each
165	159		county where the provider has a facility on or before the later of
166	160		January 1, 1994, or the date of the execution of the first
167	161		continuing care contract relating to the facility.
168	162		SECTION 11. Not later than December 1, 2015, the
169	163		commissioner of insurance shall adopt rules necessary to implement
170	164		the changes in law made by this Act.
171	165		SECTION 12. This Act takes effect immediately if it
172	166		receives a vote of two-thirds of all the members elected to each
173	167		house, as provided by Section 39, Article III, Texas Constitution.
174	168		If this Act does not receive the vote necessary for immediate
175	169		effect, this Act takes effect September 1, 2015.
176		-	* * * * *
	170	+	______________________________ ______________________________
	171	+	President of the Senate Speaker of the House
	172	+	I certify that H.B. No. 2697 was passed by the House on April
	173	+	30, 2015, by the following vote: Yeas 138, Nays 1, 1 present, not
	174	+	voting.
	175	+	______________________________
	176	+	Chief Clerk of the House
	177	+	I certify that H.B. No. 2697 was passed by the Senate on May
	178	+	27, 2015, by the following vote: Yeas 31, Nays 0.
	179	+	______________________________
	180	+	Secretary of the Senate
	181	+	APPROVED: _____________________
	182	+	Date
	183	+	_____________________
	184	+	Governor