84R18671 MEW-F
By: Deshotel H.B. No. 3048
Substitute the following for H.B. No. 3048:
By: Crownover C.S.H.B. No. 3048
A BILL TO BE ENTITLED
AN ACT
relating to the creation and operations of health care provider
participation programs in certain municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle D, Title 4, Health and Safety Code, is
amended by adding Chapter 295 to read as follows:
CHAPTER 295. MUNICIPAL HEALTH CARE PROVIDER PARTICIPATION PROGRAM
IN CERTAIN MUNICIPALITIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 295.001. DEFINITIONS. In this chapter:
(1) "Institutional health care provider" means a
nonpublic hospital that provides inpatient hospital services.
(2) "Paying hospital" means an institutional health
care provider required to make a mandatory payment under this
chapter.
(3) "Program" means the municipal health care provider
participation program authorized by this chapter.
Sec. 295.002. APPLICABILITY. This chapter applies only to
a municipality that:
(1) is not served by a hospital district or a public
hospital;
(2) is located on the Gulf of Mexico or on a channel,
canal, bay, or inlet connected to the Gulf of Mexico; and
(3) has a population of more than 117,000 and less than
145,000.
Sec. 295.003. MUNICIPAL HEALTH CARE PROVIDER PARTICIPATION
PROGRAM; PARTICIPATION IN PROGRAM. (a) A municipal health care
provider participation program authorizes a municipality to
collect a mandatory payment from each institutional health care
provider located in the municipality to be deposited in a local
provider participation fund established by the municipality. Money
in the fund may be used by the municipality to fund certain
intergovernmental transfers and indigent care programs as provided
by this chapter.
(b) The governing body of a municipality may adopt an
ordinance authorizing a municipality to participate in the program,
subject to the limitations provided by this chapter.
SUBCHAPTER B. POWERS AND DUTIES OF GOVERNING BODY OF MUNICIPALITY
Sec. 295.051. LIMITATION ON AUTHORITY TO REQUIRE MANDATORY
PAYMENT. The governing body of a municipality may require a
mandatory payment authorized under this chapter by an institutional
health care provider in the municipality only in the manner
provided by this chapter.
Sec. 295.052. MAJORITY VOTE REQUIRED. The governing body
of a municipality may not authorize the municipality to collect a
mandatory payment authorized under this chapter without an
affirmative vote of a majority of the members of the governing body.
Sec. 295.053. RULES AND PROCEDURES. After the governing
body of a municipality has voted to require a mandatory payment
authorized under this chapter, the governing body may adopt rules
relating to the administration of the mandatory payment.
Sec. 295.054. INSTITUTIONAL HEALTH CARE PROVIDER
REPORTING; INSPECTION OF RECORDS. (a) The governing body of a
municipality that collects a mandatory payment authorized under
this chapter shall require each institutional health care provider
to submit to the municipality a copy of any financial and
utilization data required by and reported to the Department of
State Health Services under Sections 311.032 and 311.033 and any
rules adopted by the executive commissioner of the Health and Human
Services Commission to implement those sections.
(b) The governing body of a municipality that collects a
mandatory payment authorized under this chapter may inspect the
records of an institutional health care provider to the extent
necessary to ensure compliance with the requirements of Subsection
(a).
SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS
Sec. 295.101. HEARING. (a) Each year, the governing body
of a municipality that collects a mandatory payment authorized
under this chapter shall hold a public hearing on the amounts of any
mandatory payments that the governing body intends to require
during the year and how the revenue derived from those payments is
to be spent.
(b) Not later than the 10th day before the date of the
hearing required under Subsection (a), the governing body of the
municipality shall publish notice of the hearing in a newspaper of
general circulation in the municipality.
(c) A representative of a paying hospital is entitled to
appear at the time and place designated in the public notice and to
be heard regarding any matter related to the mandatory payments
authorized under this chapter.
Sec. 295.102. DEPOSITORY. (a) The governing body of each
municipality that collects a mandatory payment authorized under
this chapter by resolution shall designate one or more banks
located in the municipality as the depository for mandatory
payments received by the municipality. A bank designated as a
depository serves for two years or until a successor is designated.
(b) All income received by a municipality under this
chapter, including the revenue from mandatory payments remaining
after discounts and fees for assessing and collecting the payments
are deducted, shall be deposited with the designated depository in
the municipality's local provider participation fund and may be
withdrawn only as provided by this chapter.
(c) All funds under this chapter shall be secured in the
manner provided for securing municipal funds.
Sec. 295.103. LOCAL PROVIDER PARTICIPATION FUND;
AUTHORIZED USES OF MONEY. (a) Each municipality that collects a
mandatory payment authorized under this chapter shall create a
local provider participation fund.
(b) The local provider participation fund of a municipality
consists of:
(1) all revenue received by the municipality
attributable to mandatory payments authorized under this chapter,
including any penalties and interest attributable to delinquent
payments;
(2) money received from the Health and Human Services
Commission as a refund of an intergovernmental transfer from the
municipality to the state for the purpose of providing the
nonfederal share of Medicaid supplemental payment program
payments, provided that the intergovernmental transfer does not
receive a federal matching payment; and
(3) the earnings of the fund.
(c) Money deposited to the local provider participation
fund may be used only to:
(1) fund intergovernmental transfers from the
municipality to the state to provide the nonfederal share of a
Medicaid supplemental payment program authorized under the state
Medicaid plan, the Texas Healthcare Transformation and Quality
Improvement Program waiver issued under Section 1115 of the federal
Social Security Act (42 U.S.C. Section 1315), or a successor waiver
program authorizing similar Medicaid supplemental payment
programs;
(2) subsidize indigent programs;
(3) pay the administrative expenses of the
municipality solely for activities under this chapter;
(4) refund a portion of a mandatory payment collected
in error from a paying hospital; and
(5) refund to paying hospitals the proportionate share
of money received by the municipality from the Health and Human
Services Commission that is not used to fund the nonfederal share of
Medicaid supplemental payment program payments.
(d) Money in the local provider participation fund may not
be commingled with other municipal funds.
(e) An intergovernmental transfer of funds described by
Subsection (c)(1) and any funds received by the municipality as a
result of an intergovernmental transfer described by that
subsection may not be used by the municipality or any other entity
to expand Medicaid eligibility under the Patient Protection and
Affordable Care Act (Pub. L. No. 111-148) as amended by the Health
Care and Education Reconciliation Act of 2010 (Pub. L.
No. 111-152).
SUBCHAPTER D. MANDATORY PAYMENTS
Sec. 295.151. MANDATORY PAYMENTS BASED ON PAYING HOSPITAL
NET PATIENT REVENUE. (a) Except as provided by Subsection (e), the
governing body of a municipality that collects a mandatory payment
authorized under this chapter may require an annual mandatory
payment to be assessed on the net patient revenue of each
institutional health care provider located in the municipality. The
governing body may provide for the mandatory payment to be assessed
quarterly. In the first year in which the mandatory payment is
required, the mandatory payment is assessed on the net patient
revenue of an institutional health care provider as determined by
the data reported to the Department of State Health Services under
Sections 311.032 and 311.033 in the fiscal year ending in 2013 or,
if the institutional health care provider did not report any data
under those sections in that fiscal year, as determined by the
institutional health care provider's Medicare cost report
submitted for the 2013 fiscal year or for the closest subsequent
fiscal year for which the provider submitted the Medicare cost
report. The municipality shall update the amount of the mandatory
payment on an annual basis.
(b) The amount of a mandatory payment authorized under this
chapter must be uniformly proportionate with the amount of net
patient revenue generated by each paying hospital in the
municipality. A mandatory payment authorized under this chapter
may not hold harmless any institutional health care provider, as
required under 42 U.S.C. Section 1396b(w).
(c) The governing body of a municipality that collects a
mandatory payment authorized under this chapter shall set the
amount of the mandatory payment. The amount of the mandatory
payment required of each paying hospital may not exceed an amount
that, when added to the amount of the mandatory payments required
from all other paying hospitals in the municipality, equals an
amount of revenue that exceeds six percent of the aggregate net
patient revenue of all paying hospitals in the municipality.
(d) Subject to the maximum amount prescribed by Subsection
(c), the governing body of a municipality that collects a mandatory
payment authorized under this chapter shall set the mandatory
payments in amounts that in the aggregate will generate sufficient
revenue to cover the administrative expenses of the municipality
for activities under this chapter, to fund the nonfederal share of a
Medicaid supplemental payment program, and to pay for indigent
programs, except that the amount of revenue from mandatory payments
used for administrative expenses of the municipality for activities
under this chapter in a year may not exceed the lesser of four
percent of the total revenue generated from the mandatory payment
or $20,000.
(e) A paying hospital may not add a mandatory payment
required under this section as a surcharge to a patient.
Sec. 295.152. ASSESSMENT AND COLLECTION OF MANDATORY
PAYMENTS. (a) Except as provided by Subsection (b), the municipal
tax assessor-collector shall collect the mandatory payment
authorized under this chapter. The municipal tax
assessor-collector shall charge and deduct from mandatory payments
collected for the municipality a fee for collecting the mandatory
payment in an amount determined by the governing body of the
municipality, not to exceed the municipal tax assessor-collector's
usual and customary charges.
(b) If determined by the governing body to be appropriate,
the governing body may contract for the assessment and collection
of mandatory payments in the manner provided by Title 1, Tax Code,
for the assessment and collection of ad valorem taxes.
(c) Revenue from a fee charged by a municipal tax
assessor-collector for collecting the mandatory payment shall be
deposited in the municipal general fund and, if appropriate, shall
be reported as fees of the municipal tax assessor-collector.
Sec. 295.153. INTEREST, PENALTIES, AND DISCOUNTS.
Interest, penalties, and discounts on mandatory payments required
under this chapter are governed by the law applicable to municipal
ad valorem taxes.
Sec. 295.154. PURPOSE; CORRECTION OF INVALID PROVISION OR
PROCEDURE. (a) The purpose of this chapter is to generate revenue
by collecting from institutional health care providers a mandatory
payment to be used to provide the nonfederal share of a Medicaid
supplemental payment program.
(b) To the extent any provision or procedure under this
chapter causes a mandatory payment authorized under this chapter to
be ineligible for federal matching funds, the municipality may
provide by rule for an alternative provision or procedure that
conforms to the requirements of the federal Centers for Medicare
and Medicaid Services.
SECTION 2. If before implementing any provision of this Act
a state agency determines that a waiver or authorization from a
federal agency is necessary for implementation of that provision,
the agency affected by the provision shall request the waiver or
authorization and may delay implementing that provision until the
waiver or authorization is granted.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.