BILL ANALYSIS

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Senior advocates report that long-term care facilities such as nursing homes, assisted living facilities, and intermediate care facilities have confiscated federal stimulus checks meant for residents. While federal law prohibits this practice since the stimulus checks were not intended to be considered as income for purposes of Medicaid eligibility, there is currently no statewide prohibition against this practice that protects these vulnerable individuals. H.B. 1290 seeks to address this issue by establishing an administrative penalty for nursing facilities that confiscate or misappropriate certain payments to residents.

H.B. 1290 amends current law relating to the confiscation or misappropriation by a nursing facility of certain federal payments to a Medicaid recipient and increases an administrative penalty.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter C, Chapter 242, Health and Safety Code, by adding Section 242.0661, as follows:

Sec. 242.0661. ADMINISTRATIVE PENALTY FOR CONFISCATION OR MISAPPROPRIATION OF FEDERAL PAYMENTS. (a) Defines "eligible federal payment," �"Medicaid," and "misappropriate."

(b) Prohibits a facility from confiscating or misappropriating an eligible federal payment made to a resident who is a recipient of Medicaid. Provides that a facility that violates this section, notwithstanding Section 242.066(b) (relating to prohibiting an administrative penalty from exceeding $10,000 a day for each violation), is subject to an administrative penalty in the amount equal to $25,000 for each violation. Provides that each day the facility fails to return confiscated or misappropriated money to the resident constitutes a separate violation.

SECTION 2. Makes application of Section 242.0661, Health and Safety Code, as added by this Act, prospective.

SECTION 3. Effective date: September 1, 2023.