Texas 2013 - 83rd Regular

Texas House Bill HB3793 Compare Versions

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1	1	By: Coleman (Senate Sponsor - Hinojosa) H.B. No. 3793
2	2	(In the Senate - Received from the House May 13, 2013;
3	3	May 13, 2013, read first time and referred to Committee on
4	4	Intergovernmental Relations; May 17, 2013, reported adversely,
5	5	with favorable Committee Substitute by the following vote: Yeas 4,
6	6	Nays 0; May 17, 2013, sent to printer.)
7	7	COMMITTEE SUBSTITUTE FOR H.B. No. 3793 By: Hinojosa
8	8
9	9
10	10	A BILL TO BE ENTITLED
11	11	AN ACT
12	12	relating to powers, duties, and services of entities serving
13	13	counties.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. The heading to Chapter 288, Health and Safety
16	16	Code, is amended to read as follows:
17	17	CHAPTER 288. HEALTH CARE FUNDING DISTRICTS IN CERTAIN COUNTIES
18	18	LOCATED ON TEXAS-MEXICO BORDER [THAT ARE ADJACENT TO COUNTIES WITH
19	19	POPULATION OF 50,000 OR MORE]
20	20	SECTION 2. Sections 288.001(2) and (3), Health and Safety
21	21	Code, are amended to read as follows:
22	22	(2) "District" means a county health care funding
23	23	district created under [by] this chapter.
24	24	(3) "Paying hospital [District taxpayer]" means an
25	25	institutional health care provider required to make a mandatory
26	26	payment [a person or entity who has paid a tax imposed] under this
27	27	chapter.
28	28	SECTION 3. Section 288.002, Health and Safety Code, is
29	29	amended to read as follows:
30	30	Sec. 288.002. CREATION OF DISTRICT. A district may be [is]
31	31	created by order of the commissioners court of [in] each county
32	32	located on the Texas-Mexico border that has a population of:
33	33	(1) 500,000 or more and is adjacent to two or more
34	34	counties each of which has a population of 50,000 or more;
35	35	(2) 350,000 or more and is adjacent to a county
36	36	described by Subdivision (1); or
37	37	(3) less than 300,000 and contains one or more
38	38	municipalities with a population of 200,000 or more.
39	39	SECTION 4. Subchapter A, Chapter 288, Health and Safety
40	40	Code, is amended by adding Sections 288.0031 and 288.0032 to read as
41	41	follows:
42	42	Sec. 288.0031. DISSOLUTION. A district created under this
43	43	chapter may be dissolved in the manner provided for the dissolution
44	44	of a hospital district under Subchapter E, Chapter 286.
45	45	Sec. 288.0032. EXPIRATION OF CHAPTER; DISTRIBUTION OF FUNDS
46	46	ON EXPIRATION. (a) A district created under this chapter is
47	47	abolished and this chapter expires on December 31, 2016.
48	48	(b) The commissioners court of a county in which a district
49	49	is created shall refund to each paying hospital the proportionate
50	50	share of any money remaining in the local provider participation
51	51	fund created by the district under Section 288.155 at the time the
52	52	district is abolished.
53	53	SECTION 5. The heading to Section 288.051, Health and
54	54	Safety Code, is amended to read as follows:
55	55	Sec. 288.051. COMMISSION; DISTRICT GOVERNANCE
56	56	[APPOINTMENT].
57	57	SECTION 6. Section 288.051, Health and Safety Code, is
58	58	amended by amending Subsection (a) and adding Subsections (c) and
59	59	(d) to read as follows:
60	60	(a) Each district created under Section 288.002 is governed
61	61	by a commission consisting of the commissioners court of the county
62	62	in which the district is created [of five members appointed as
63	63	provided by this section].
64	64	(c) Service on the commission by a county commissioner or
65	65	county judge is an additional duty of that person's office.
66	66	(d) A district is a component of county government and is
67	67	not a separate political subdivision of this state.
68	68	SECTION 7. Section 288.101, Health and Safety Code, is
69	69	amended to read as follows:
70	70	Sec. 288.101. LIMITATION ON [TAXING] AUTHORITY TO REQUIRE
71	71	MANDATORY PAYMENT. Each district may require a mandatory payment
72	72	[impose taxes] only in the manner provided by this chapter.
73	73	SECTION 8. Section 288.102, Health and Safety Code, is
74	74	amended to read as follows:
75	75	Sec. 288.102. MAJORITY VOTE REQUIRED. (a) A district may
76	76	not require [impose] any mandatory payment [tax] authorized by this
77	77	chapter, spend any money, including for the administrative expenses
78	78	of the district, or conduct any other business of the commission
79	79	without an affirmative vote of a majority of the members of the
80	80	commission.
81	81	(b) Before requiring a mandatory payment [imposing a tax]
82	82	under this chapter in any one year, the commission must obtain the
83	83	affirmative vote required by Subsection (a).
84	84	SECTION 9. Section 288.104(a), Health and Safety Code, is
85	85	amended to read as follows:
86	86	(a) The commission may adopt rules governing the operation
87	87	of the district, including rules relating to the administration of
88	88	a mandatory payment [tax] authorized by this chapter.
89	89	SECTION 10. Section 288.151, Health and Safety Code, is
90	90	amended to read as follows:
91	91	Sec. 288.151. HEARING [BUDGET]. (a) Each year, the
92	92	commission of a district shall hold a public hearing on [prepare a
93	93	budget for the following fiscal year that includes:
94	94	[(1) proposed expenditures and disbursements;
95	95	[(2) estimated receipts and collections; and
96	96	[(3)] the [rates and] amounts of any mandatory
97	97	payments [taxes] that the commission intends to require [impose]
98	98	during the year and how the revenue derived from those payments is
99	99	to be spent.
100	100	(b) [The commission shall hold a public hearing on the
101	101	proposed budget.] Not later than the 10th day before the date of
102	102	the hearing, the commission shall publish at least once notice of
103	103	the hearing in a newspaper of general circulation in the county in
104	104	which the district is located.
105	105	(c) A representative of a paying hospital [Any district
106	106	taxpayer] is entitled to appear at the time and place designated in
107	107	the public notice and to be heard regarding any matter related to
108	108	the mandatory payments required by the district under this chapter
109	109	[item shown in the proposed budget].
110	110	SECTION 11. Section 288.154(b), Health and Safety Code, is
111	111	amended to read as follows:
112	112	(b) All income received by a district, including the [tax]
113	113	revenue from mandatory payments remaining after [deducting]
114	114	discounts and fees for assessing and collecting the payments are
115	115	deducted [taxes], shall be deposited with the district depository
116	116	as provided by Section 288.203 and may be withdrawn only as provided
117	117	by this chapter.
118	118	SECTION 12. Subchapter D, Chapter 288, Health and Safety
119	119	Code, is amended by adding Sections 288.155 and 288.156 to read as
120	120	follows:
121	121	Sec. 288.155. LOCAL PROVIDER PARTICIPATION FUND;
122	122	AUTHORIZED USES OF MONEY. (a) Each district shall create a local
123	123	provider participation fund.
124	124	(b) The local provider participation fund consists of:
125	125	(1) all revenue from the mandatory payment required by
126	126	this chapter, including any penalties and interest attributable to
127	127	delinquent payments;
128	128	(2) money received from the Health and Human Services
129	129	Commission as a refund of an intergovernmental transfer from the
130	130	district to the state for the purpose of providing the nonfederal
131	131	share of Medicaid supplemental payment program payments, provided
132	132	that the intergovernmental transfer does not receive a federal
133	133	matching payment; and
134	134	(3) the earnings of the fund.
135	135	(c) Money deposited to the local provider participation
136	136	fund may be used only to:
137	137	(1) fund intergovernmental transfers from the
138	138	district to the state to provide the nonfederal share of a Medicaid
139	139	supplemental payment program authorized under the state Medicaid
140	140	plan, the Texas Healthcare Transformation and Quality Improvement
141	141	Program waiver issued under Section 1115 of the federal Social
142	142	Security Act (42 U.S.C. Section 1315), or a successor waiver
143	143	program authorizing similar Medicaid supplemental payment
144	144	programs;
145	145	(2) subsidize indigent programs;
146	146	(3) pay the administrative expenses of the district;
147	147	(4) refund a portion of a mandatory payment collected
148	148	in error from a paying hospital; and
149	149	(5) refund to paying hospitals the proportionate share
150	150	of the money received by the district from the Health and Human
151	151	Services Commission that is not used to fund the nonfederal share of
152	152	Medicaid supplemental payment program payments.
153	153	(d) Money in the local provider participation fund may not
154	154	be commingled with other county funds.
155	155	(e) An intergovernmental transfer of funds described by
156	156	Subsection (c)(1) and any funds received by the district as a result
157	157	of an intergovernmental transfer described by that subdivision may
158	158	not be used by the district, the county in which the district is
159	159	located, or any other entity to expand Medicaid eligibility under
160	160	the Patient Protection and Affordable Care Act (Pub. L. No.
161	161	111-148) as amended by the Health Care and Education Reconciliation
162	162	Act of 2010 (Pub. L. No. 111-152).
163	163	Sec. 288.156. ALLOCATION OF CERTAIN FUNDS. Not later than
164	164	the 15th day after the date the district receives a payment
165	165	described by Section 288.155(c)(5), the district shall transfer to
166	166	each paying hospital an amount equal to the proportionate share of
167	167	those funds to which the hospital is entitled.
168	168	SECTION 13. The heading to Subchapter E, Chapter 288,
169	169	Health and Safety Code, is amended to read as follows:
170	170	SUBCHAPTER E. MANDATORY PAYMENTS [TAXES]
171	171	SECTION 14. Section 288.201, Health and Safety Code, is
172	172	amended to read as follows:
173	173	Sec. 288.201. MANDATORY PAYMENT BASED [TAX] ON [OUTPATIENT]
174	174	HOSPITAL NET PATIENT REVENUE [SERVICES]. (a) Except as provided by
175	175	Subsection (e), the [The] commission of a district may require
176	176	[impose] an annual mandatory payment [tax] to be assessed quarterly
177	177	on the net patient revenue of [all outpatient hospital visits to] an
178	178	institutional health care provider located in the district. In the
179	179	first year in which the mandatory payment [tax] is required
180	180	[imposed], the mandatory payment [tax] is assessed on the net
181	181	patient revenue [total number of outpatient hospital visits] of an
182	182	institutional health care provider as determined by the data
183	183	reported to the Department of State Health Services under Sections
184	184	311.032 and 311.033 in the fiscal year ending in 2010 [2003]. The
185	185	district shall update the amount of the mandatory payment [this tax
186	186	basis with the number of outpatient hospital visits reported] on a
187	187	biennial basis.
188	188	(b) The amount of a mandatory payment required under this
189	189	chapter must be uniformly proportionate with the amount of net
190	190	patient revenue generated by each paying hospital. [A tax imposed
191	191	under this section must be imposed uniformly on each institutional
192	192	health care provider of outpatient hospital services located in the
193	193	district.] A mandatory payment required [tax imposed] under this
194	194	section [also] may not hold harmless any institutional health care
195	195	provider [of outpatient hospital services], as required under 42
196	196	U.S.C. Section 1396b(w).
197	197	(c) The commission of a district shall set the amount [rate]
198	198	of the mandatory payment required [tax imposed] under this section.
199	199	The amount of the mandatory payment required of each paying
200	200	hospital [rate] may not exceed an amount that, when added to the
201	201	amount of the mandatory payments required from all other paying
202	202	hospitals in the district, equals an amount of revenue that exceeds
203	203	six percent of the aggregate net patient revenue of all paying
204	204	hospitals in the district [$100 for each outpatient hospital
205	205	visit].
206	206	(d) Subject to the maximum amount [tax rate] prescribed by
207	207	Subsection (c), the commission shall set the mandatory payments in
208	208	amounts [rate of the tax at a rate] that in the aggregate will
209	209	generate sufficient revenue to cover the administrative expenses of
210	210	the district, to fund the nonfederal share of a Medicaid
211	211	supplemental payment program, and to pay for indigent programs,
212	212	except that the amount of [tax] revenue from mandatory payments
213	213	used for administrative expenses of the district in a year may not
214	214	exceed the lesser of four percent of the total revenue generated
215	215	from the mandatory payment [tax] or $20,000.
216	216	(e) An institutional health care provider may not add a
217	217	mandatory payment required [tax imposed] under this section as a
218	218	surcharge to a patient.
219	219	SECTION 15. Section 288.202, Health and Safety Code, is
220	220	amended to read as follows:
221	221	Sec. 288.202. ASSESSMENT AND COLLECTION OF MANDATORY
222	222	PAYMENTS [TAXES]. (a) Except as provided by Subsection (b), the
223	223	county tax assessor-collector shall collect a mandatory payment
224	224	required [tax imposed] under this subchapter [unless the commission
225	225	employs a tax assessor and collector for the district]. The county
226	226	tax assessor-collector shall charge and deduct from mandatory
227	227	payments [taxes] collected for the district a fee for collecting
228	228	the mandatory payment [tax] in an amount determined by the
229	229	commission, not to exceed the county tax assessor-collector's usual
230	230	and customary charges [for the collection of similar taxes].
231	231	(b) If determined by the commission to be appropriate, the
232	232	commission may contract for the assessment and collection of
233	233	mandatory payments [taxes] in the manner provided by Title 1, Tax
234	234	Code, for the assessment and collection of ad valorem taxes.
235	235	(c) Revenue from a fee charged by a county tax
236	236	assessor-collector for collecting the mandatory payment [tax]
237	237	shall be deposited in the county general fund and, if appropriate,
238	238	shall be reported as fees of the county tax assessor-collector.
239	239	SECTION 16. Section 288.203, Health and Safety Code, is
240	240	amended to read as follows:
241	241	Sec. 288.203. DEPOSIT [USE] OF [TAX] REVENUE FROM MANDATORY
242	242	PAYMENTS. Revenue [generated by a district] from the mandatory
243	243	payment required by [a tax imposed under] this chapter shall be
244	244	deposited in the district's local provider participation fund
245	245	[subchapter may be used only to:
246	246	[(1) provide the nonfederal share of a Medicaid
247	247	supplemental payment program;
248	248	[(2) subsidize indigent programs; and
249	249	[(3) pay administrative expenses of the district].
250	250	SECTION 17. Section 288.204, Health and Safety Code, is
251	251	amended to read as follows:
252	252	Sec. 288.204. INTEREST, PENALTIES, AND DISCOUNTS.
253	253	Interest, penalties, and discounts on mandatory payments required
254	254	[taxes imposed] under this subchapter are governed by the law
255	255	applicable to county ad valorem taxes.
256	256	SECTION 18. Section 288.205, Health and Safety Code, is
257	257	amended to read as follows:
258	258	Sec. 288.205. PURPOSE; CORRECTION OF INVALID PROVISION OR
259	259	PROCEDURE. (a) The purpose of this chapter is to generate revenue
260	260	from a mandatory payment required [tax imposed] by the district to
261	261	provide the nonfederal share of a Medicaid supplemental payment
262	262	program.
263	263	(b) To the extent any provision or procedure under this
264	264	chapter causes a mandatory payment [tax] under this chapter to be
265	265	ineligible for federal matching funds, the district may provide by
266	266	rule for an alternative provision or procedure that conforms to the
267	267	requirements of the federal Centers for Medicare and Medicaid
268	268	Services.
269	269	SECTION 19. Sections 288.003, 288.004, 288.051(b),
270	270	288.052, 288.053, 288.054, 288.055, 288.056, 288.057, 288.058,
271	271	288.103, 288.104(b), 288.105, 288.107, 288.153, and 288.206,
272	272	Health and Safety Code, are repealed.
273	273	SECTION 20. If before implementing any provision of Chapter
274	274	288, Health and Safety Code, as amended by this Act, a state agency
275	275	determines that a waiver or authorization from a federal agency is
276	276	necessary for implementation of that provision, the agency affected
277	277	by the provision shall request the waiver or authorization and may
278	278	delay implementing that provision until the waiver or authorization
279	279	is granted.
280	280	SECTION 21. This Act takes effect immediately if it
281	281	receives a vote of two-thirds of all the members elected to each
282	282	house, as provided by Section 39, Article III, Texas Constitution.
283	283	If this Act does not receive the vote necessary for immediate
284	284	effect, this Act takes effect September 1, 2013.
285	285	* * * * *