Texas 2015 - 84th Regular

Texas House Bill HB3048 Compare Versions

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Version 2 (New)

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1	1	84R18671 MEW-F
2	2	By: Deshotel H.B. No. 3048
3	3	Substitute the following for H.B. No. 3048:
4	4	By: Crownover C.S.H.B. No. 3048
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the creation and operations of health care provider
10	10	participation programs in certain municipalities.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subtitle D, Title 4, Health and Safety Code, is
13	13	amended by adding Chapter 295 to read as follows:
14	14	CHAPTER 295. MUNICIPAL HEALTH CARE PROVIDER PARTICIPATION PROGRAM
15	15	IN CERTAIN MUNICIPALITIES
16	16	SUBCHAPTER A. GENERAL PROVISIONS
17	17	Sec. 295.001. DEFINITIONS. In this chapter:
18	18	(1) "Institutional health care provider" means a
19	19	nonpublic hospital that provides inpatient hospital services.
20	20	(2) "Paying hospital" means an institutional health
21	21	care provider required to make a mandatory payment under this
22	22	chapter.
23	23	(3) "Program" means the municipal health care provider
24	24	participation program authorized by this chapter.
25	25	Sec. 295.002. APPLICABILITY. This chapter applies only to
26	26	a municipality that:
27	27	(1) is not served by a hospital district or a public
28	28	hospital;
29	29	(2) is located on the Gulf of Mexico or on a channel,
30	30	canal, bay, or inlet connected to the Gulf of Mexico; and
31	31	(3) has a population of more than 117,000 and less than
32	32	145,000.
33	33	Sec. 295.003. MUNICIPAL HEALTH CARE PROVIDER PARTICIPATION
34	34	PROGRAM; PARTICIPATION IN PROGRAM. (a) A municipal health care
35	35	provider participation program authorizes a municipality to
36	36	collect a mandatory payment from each institutional health care
37	37	provider located in the municipality to be deposited in a local
38	38	provider participation fund established by the municipality. Money
39	39	in the fund may be used by the municipality to fund certain
40	40	intergovernmental transfers and indigent care programs as provided
41	41	by this chapter.
42	42	(b) The governing body of a municipality may adopt an
43	43	ordinance authorizing a municipality to participate in the program,
44	44	subject to the limitations provided by this chapter.
45	45	SUBCHAPTER B. POWERS AND DUTIES OF GOVERNING BODY OF MUNICIPALITY
46	46	Sec. 295.051. LIMITATION ON AUTHORITY TO REQUIRE MANDATORY
47	47	PAYMENT. The governing body of a municipality may require a
48	48	mandatory payment authorized under this chapter by an institutional
49	49	health care provider in the municipality only in the manner
50	50	provided by this chapter.
51	51	Sec. 295.052. MAJORITY VOTE REQUIRED. The governing body
52	52	of a municipality may not authorize the municipality to collect a
53	53	mandatory payment authorized under this chapter without an
54	54	affirmative vote of a majority of the members of the governing body.
55	55	Sec. 295.053. RULES AND PROCEDURES. After the governing
56	56	body of a municipality has voted to require a mandatory payment
57	57	authorized under this chapter, the governing body may adopt rules
58	58	relating to the administration of the mandatory payment.
59	59	Sec. 295.054. INSTITUTIONAL HEALTH CARE PROVIDER
60	60	REPORTING; INSPECTION OF RECORDS. (a) The governing body of a
61	61	municipality that collects a mandatory payment authorized under
62	62	this chapter shall require each institutional health care provider
63	63	to submit to the municipality a copy of any financial and
64	64	utilization data required by and reported to the Department of
65	65	State Health Services under Sections 311.032 and 311.033 and any
66	66	rules adopted by the executive commissioner of the Health and Human
67	67	Services Commission to implement those sections.
68	68	(b) The governing body of a municipality that collects a
69	69	mandatory payment authorized under this chapter may inspect the
70	70	records of an institutional health care provider to the extent
71	71	necessary to ensure compliance with the requirements of Subsection
72	72	(a).
73	73	SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS
74	74	Sec. 295.101. HEARING. (a) Each year, the governing body
75	75	of a municipality that collects a mandatory payment authorized
76	76	under this chapter shall hold a public hearing on the amounts of any
77	77	mandatory payments that the governing body intends to require
78	78	during the year and how the revenue derived from those payments is
79	79	to be spent.
80	80	(b) Not later than the 10th day before the date of the
81	81	hearing required under Subsection (a), the governing body of the
82	82	municipality shall publish notice of the hearing in a newspaper of
83	83	general circulation in the municipality.
84	84	(c) A representative of a paying hospital is entitled to
85	85	appear at the time and place designated in the public notice and to
86	86	be heard regarding any matter related to the mandatory payments
87	87	authorized under this chapter.
88	88	Sec. 295.102. DEPOSITORY. (a) The governing body of each
89	89	municipality that collects a mandatory payment authorized under
90	90	this chapter by resolution shall designate one or more banks
91	91	located in the municipality as the depository for mandatory
92	92	payments received by the municipality. A bank designated as a
93	93	depository serves for two years or until a successor is designated.
94	94	(b) All income received by a municipality under this
95	95	chapter, including the revenue from mandatory payments remaining
96	96	after discounts and fees for assessing and collecting the payments
97	97	are deducted, shall be deposited with the designated depository in
98	98	the municipality's local provider participation fund and may be
99	99	withdrawn only as provided by this chapter.
100	100	(c) All funds under this chapter shall be secured in the
101	101	manner provided for securing municipal funds.
102	102	Sec. 295.103. LOCAL PROVIDER PARTICIPATION FUND;
103	103	AUTHORIZED USES OF MONEY. (a) Each municipality that collects a
104	104	mandatory payment authorized under this chapter shall create a
105	105	local provider participation fund.
106	106	(b) The local provider participation fund of a municipality
107	107	consists of:
108	108	(1) all revenue received by the municipality
109	109	attributable to mandatory payments authorized under this chapter,
110	110	including any penalties and interest attributable to delinquent
111	111	payments;
112	112	(2) money received from the Health and Human Services
113	113	Commission as a refund of an intergovernmental transfer from the
114	114	municipality to the state for the purpose of providing the
115	115	nonfederal share of Medicaid supplemental payment program
116	116	payments, provided that the intergovernmental transfer does not
117	117	receive a federal matching payment; and
118	118	(3) the earnings of the fund.
119	119	(c) Money deposited to the local provider participation
120	120	fund may be used only to:
121	121	(1) fund intergovernmental transfers from the
122	122	municipality to the state to provide the nonfederal share of a
123	123	Medicaid supplemental payment program authorized under the state
124	124	Medicaid plan, the Texas Healthcare Transformation and Quality
125	125	Improvement Program waiver issued under Section 1115 of the federal
126	126	Social Security Act (42 U.S.C. Section 1315), or a successor waiver
127	127	program authorizing similar Medicaid supplemental payment
128	128	programs;
129	129	(2) subsidize indigent programs;
130	130	(3) pay the administrative expenses of the
131	131	municipality solely for activities under this chapter;
132	132	(4) refund a portion of a mandatory payment collected
133	133	in error from a paying hospital; and
134	134	(5) refund to paying hospitals the proportionate share
135	135	of money received by the municipality from the Health and Human
136	136	Services Commission that is not used to fund the nonfederal share of
137	137	Medicaid supplemental payment program payments.
138	138	(d) Money in the local provider participation fund may not
139	139	be commingled with other municipal funds.
140	140	(e) An intergovernmental transfer of funds described by
141	141	Subsection (c)(1) and any funds received by the municipality as a
142	142	result of an intergovernmental transfer described by that
143	143	subsection may not be used by the municipality or any other entity
144	144	to expand Medicaid eligibility under the Patient Protection and
145	145	Affordable Care Act (Pub. L. No. 111-148) as amended by the Health
146	146	Care and Education Reconciliation Act of 2010 (Pub. L.
147	147	No. 111-152).
148	148	SUBCHAPTER D. MANDATORY PAYMENTS
149	149	Sec. 295.151. MANDATORY PAYMENTS BASED ON PAYING HOSPITAL
150	150	NET PATIENT REVENUE. (a) Except as provided by Subsection (e), the
151	151	governing body of a municipality that collects a mandatory payment
152	152	authorized under this chapter may require an annual mandatory
153	153	payment to be assessed on the net patient revenue of each
154	154	institutional health care provider located in the municipality. The
155	155	governing body may provide for the mandatory payment to be assessed
156	156	quarterly. In the first year in which the mandatory payment is
157	157	required, the mandatory payment is assessed on the net patient
158	158	revenue of an institutional health care provider as determined by
159	159	the data reported to the Department of State Health Services under
160	160	Sections 311.032 and 311.033 in the fiscal year ending in 2013 or,
161	161	if the institutional health care provider did not report any data
162	162	under those sections in that fiscal year, as determined by the
163	163	institutional health care provider's Medicare cost report
164	164	submitted for the 2013 fiscal year or for the closest subsequent
165	165	fiscal year for which the provider submitted the Medicare cost
166	166	report. The municipality shall update the amount of the mandatory
167	167	payment on an annual basis.
168	168	(b) The amount of a mandatory payment authorized under this
169	169	chapter must be uniformly proportionate with the amount of net
170	170	patient revenue generated by each paying hospital in the
171	171	municipality. A mandatory payment authorized under this chapter
172	172	may not hold harmless any institutional health care provider, as
173	173	required under 42 U.S.C. Section 1396b(w).
174	174	(c) The governing body of a municipality that collects a
175	175	mandatory payment authorized under this chapter shall set the
176	176	amount of the mandatory payment. The amount of the mandatory
177	177	payment required of each paying hospital may not exceed an amount
178	178	that, when added to the amount of the mandatory payments required
179	179	from all other paying hospitals in the municipality, equals an
180	180	amount of revenue that exceeds six percent of the aggregate net
181	181	patient revenue of all paying hospitals in the municipality.
182	182	(d) Subject to the maximum amount prescribed by Subsection
183	183	(c), the governing body of a municipality that collects a mandatory
184	184	payment authorized under this chapter shall set the mandatory
185	185	payments in amounts that in the aggregate will generate sufficient
186	186	revenue to cover the administrative expenses of the municipality
187	187	for activities under this chapter, to fund the nonfederal share of a
188	188	Medicaid supplemental payment program, and to pay for indigent
189	189	programs, except that the amount of revenue from mandatory payments
190	190	used for administrative expenses of the municipality for activities
191	191	under this chapter in a year may not exceed the lesser of four
192	192	percent of the total revenue generated from the mandatory payment
193	193	or $20,000.
194	194	(e) A paying hospital may not add a mandatory payment
195	195	required under this section as a surcharge to a patient.
196	196	Sec. 295.152. ASSESSMENT AND COLLECTION OF MANDATORY
197	197	PAYMENTS. (a) Except as provided by Subsection (b), the municipal
198	198	tax assessor-collector shall collect the mandatory payment
199	199	authorized under this chapter. The municipal tax
200	200	assessor-collector shall charge and deduct from mandatory payments
201	201	collected for the municipality a fee for collecting the mandatory
202	202	payment in an amount determined by the governing body of the
203	203	municipality, not to exceed the municipal tax assessor-collector's
204	204	usual and customary charges.
205	205	(b) If determined by the governing body to be appropriate,
206	206	the governing body may contract for the assessment and collection
207	207	of mandatory payments in the manner provided by Title 1, Tax Code,
208	208	for the assessment and collection of ad valorem taxes.
209	209	(c) Revenue from a fee charged by a municipal tax
210	210	assessor-collector for collecting the mandatory payment shall be
211	211	deposited in the municipal general fund and, if appropriate, shall
212	212	be reported as fees of the municipal tax assessor-collector.
213	213	Sec. 295.153. INTEREST, PENALTIES, AND DISCOUNTS.
214	214	Interest, penalties, and discounts on mandatory payments required
215	215	under this chapter are governed by the law applicable to municipal
216	216	ad valorem taxes.
217	217	Sec. 295.154. PURPOSE; CORRECTION OF INVALID PROVISION OR
218	218	PROCEDURE. (a) The purpose of this chapter is to generate revenue
219	219	by collecting from institutional health care providers a mandatory
220	220	payment to be used to provide the nonfederal share of a Medicaid
221	221	supplemental payment program.
222	222	(b) To the extent any provision or procedure under this
223	223	chapter causes a mandatory payment authorized under this chapter to
224	224	be ineligible for federal matching funds, the municipality may
225	225	provide by rule for an alternative provision or procedure that
226	226	conforms to the requirements of the federal Centers for Medicare
227	227	and Medicaid Services.
228	228	SECTION 2. If before implementing any provision of this Act
229	229	a state agency determines that a waiver or authorization from a
230	230	federal agency is necessary for implementation of that provision,
231	231	the agency affected by the provision shall request the waiver or
232	232	authorization and may delay implementing that provision until the
233	233	waiver or authorization is granted.
234	234	SECTION 3. This Act takes effect immediately if it receives
235	235	a vote of two-thirds of all the members elected to each house, as
236	236	provided by Section 39, Article III, Texas Constitution. If this
237	237	Act does not receive the vote necessary for immediate effect, this
238	238	Act takes effect September 1, 2015.