```

[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3632 Enrolled Bill (ENR)]

        H.R.3632

                       One Hundred Fourth Congress

                                 of the

                        United States of America

                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
   the third day of January, one thousand nine hundred and ninety-six

                                 An Act

 
To amend title XIX of the Social Security Act to repeal the requirement 
  for annual resident review for nursing facilities under the Medicaid 
  program and to require resident reviews for mentally ill or mentally 
  retarded residents when there is a significant change in physical or 
                            mental condition.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. REPEAL OF REQUIREMENT FOR ANNUAL RESIDENT REVIEW FOR 
              MENTALLY ILL AND MENTALLY RETARDED NURSING FACILITY 
              RESIDENTS.

    (a) In General.--Section 1919(e)(7) of the Social Security Act (42 
U.S.C. 1396r(e)(7)) is amended--
        (1) in subparagraph (B)--
            (A) by striking ``annual'' in the heading, and
            (B) by striking clause (iii); and
        (2) in subparagraph (D)(i), by striking ``annual'' in the 
    heading.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this Act.

SEC. 2. REQUIREMENT FOR REVIEW IN CASE OF SIGNIFICANT CHANGE IN 
              PHYSICAL OR MENTAL CONDITION OF MENTALLY ILL OR MENTALLY 
              RETARDED NURSING FACILITY RESIDENTS.

    (a) Requirement for Notification of State Authority.--Section 
1919(b)(3)(E) of the Social Security Act (42 U.S.C. 1396r(b)(3)(E)) is 
amended by adding at the end the following: ``In addition, a nursing 
facility shall notify the State mental health authority or State mental 
retardation or developmental disability authority, as applicable, 
promptly after a significant change in the physical or mental condition 
of a resident who is mentally ill or mentally retarded.''.
    (b) Requirement for Review.--Section 1919(e)(7)(B) of such Act (42 
U.S.C. 1396r(e)(7)(B)), as amended by section 1(a)(1), is amended by 
inserting after clause (ii) the following new clause:
                ``(iii) Review required upon change in resident's 
            condition.--A review and determination under clause (i) or 
            (ii) must be conducted promptly after a nursing facility 
            has notified the State mental health authority or State 
            mental retardation or developmental disability authority, 
            as applicable, under subsection (b)(3)(E) with respect to a 
            mentally ill or mentally retarded resident, that there has 
            been a significant change in the resident's physical or 
            mental condition.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to changes in physical or mental condition occurring on or after 
the date of the enactment of this Act.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
```