Texas 2015 - 84th Regular

Texas Senate Bill SB1255 Compare Versions

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11 84R9807 MEW-D
22 By: Birdwell S.B. No. 1255
33
44
55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the creation and operations of health care provider
88 participation programs in certain counties.
99 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1010 SECTION 1. Subtitle D, Title 4, Health and Safety Code, is
1111 amended by adding Chapter 294 to read as follows:
1212 CHAPTER 294. COUNTY HEALTH CARE PROVIDER PARTICIPATION PROGRAM IN
1313 CERTAIN COUNTIES CONTAINING A PRIVATE UNIVERSITY
1414 SUBCHAPTER A. GENERAL PROVISIONS
1515 Sec. 294.001. DEFINITIONS. In this chapter:
1616 (1) "Institutional health care provider" means a
1717 nonpublic hospital licensed under Chapter 241.
1818 (2) "Paying hospital" means an institutional health
1919 care provider required to make a mandatory payment under this
2020 chapter.
2121 (3) "Program" means the county health care provider
2222 participation program authorized by this chapter.
2323 Sec. 294.002. APPLICABILITY. This chapter applies only to
2424 a county that:
2525 (1) is not served by a hospital district or a public
2626 hospital;
2727 (2) contains a private institution of higher education
2828 with a student enrollment of more than 12,000; and
2929 (3) has a population of less than 250,000.
3030 Sec. 294.003. COUNTY HEALTH CARE PROVIDER PARTICIPATION
3131 PROGRAM; PARTICIPATION IN PROGRAM. (a) A county health care
3232 provider participation program authorizes a county to collect a
3333 mandatory payment from each institutional health care provider
3434 located in the county to be deposited in a local provider
3535 participation fund established by the county. Money in the fund may
3636 be used by the county to fund certain intergovernmental transfers
3737 and indigent care programs as provided by this chapter.
3838 (b) The commissioners court may adopt an order authorizing a
3939 county to participate in the program, subject to the limitations
4040 provided by this chapter.
4141 SUBCHAPTER B. POWERS AND DUTIES OF COMMISSIONERS COURT
4242 Sec. 294.051. LIMITATION ON AUTHORITY TO REQUIRE MANDATORY
4343 PAYMENT. The commissioners court of a county may require a
4444 mandatory payment authorized under this chapter by an institutional
4545 health care provider in the county only in the manner provided by
4646 this chapter.
4747 Sec. 294.052. MAJORITY VOTE REQUIRED. The commissioners
4848 court of a county may not authorize the county to collect a
4949 mandatory payment authorized under this chapter without an
5050 affirmative vote of a majority of the members of the commissioners
5151 court.
5252 Sec. 294.053. RULES AND PROCEDURES. After the
5353 commissioners court has voted to require a mandatory payment
5454 authorized under this chapter, the commissioners court may adopt
5555 rules relating to the administration of the mandatory payment.
5656 Sec. 294.054. INSTITUTIONAL HEALTH CARE PROVIDER
5757 REPORTING; INSPECTION OF RECORDS. (a) The commissioners court of a
5858 county that collects a mandatory payment authorized under this
5959 chapter shall require each institutional health care provider to
6060 submit to the county a copy of any financial and utilization data
6161 required by and reported to the Department of State Health Services
6262 under Sections 311.032 and 311.033 and any rules adopted by the
6363 executive commissioner of the Health and Human Services Commission
6464 to implement those sections.
6565 (b) The commissioners court of a county that collects a
6666 mandatory payment authorized under this chapter may inspect the
6767 records of an institutional health care provider to the extent
6868 necessary to ensure compliance with the requirements of Subsection
6969 (a).
7070 SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS
7171 Sec. 294.101. HEARING. (a) Each year, the commissioners
7272 court of a county that collects a mandatory payment authorized
7373 under this chapter shall hold a public hearing on the amounts of any
7474 mandatory payments that the commissioners court intends to require
7575 during the year and how the revenue derived from those payments is
7676 to be spent.
7777 (b) Not later than the 10th day before the date of the
7878 hearing required under Subsection (a), the commissioners court of
7979 the county shall publish notice of the hearing in a newspaper of
8080 general circulation in the county.
8181 (c) A representative of a paying hospital is entitled to
8282 appear at the time and place designated in the public notice and to
8383 be heard regarding any matter related to the mandatory payments
8484 authorized under this chapter.
8585 Sec. 294.102. DEPOSITORY. (a) The commissioners court of
8686 each county that collects a mandatory payment authorized under this
8787 chapter by resolution shall designate one or more banks located in
8888 the county as the depository for mandatory payments received by the
8989 county. A bank designated as a depository serves for two years or
9090 until a successor is designated.
9191 (b) All income received by a county under this chapter,
9292 including the revenue from mandatory payments remaining after
9393 discounts and fees for assessing and collecting the payments are
9494 deducted, shall be deposited with the county depository in the
9595 county's local provider participation fund and may be withdrawn
9696 only as provided by this chapter.
9797 (c) All funds under this chapter shall be secured in the
9898 manner provided for securing county funds.
9999 Sec. 294.103. LOCAL PROVIDER PARTICIPATION FUND;
100100 AUTHORIZED USES OF MONEY. (a) Each county that collects a
101101 mandatory payment authorized under this chapter shall create a
102102 local provider participation fund.
103103 (b) The local provider participation fund of a county
104104 consists of:
105105 (1) all revenue received by the county attributable to
106106 mandatory payments authorized under this chapter, including any
107107 penalties and interest attributable to delinquent payments;
108108 (2) money received from the Health and Human Services
109109 Commission as a refund of an intergovernmental transfer from the
110110 county to the state for the purpose of providing the nonfederal
111111 share of Medicaid supplemental payment program payments, provided
112112 that the intergovernmental transfer does not receive a federal
113113 matching payment; and
114114 (3) the earnings of the fund.
115115 (c) Money deposited to the local provider participation
116116 fund may be used only to:
117117 (1) fund intergovernmental transfers from the county
118118 to the state to provide the nonfederal share of a Medicaid
119119 supplemental payment program authorized under the state Medicaid
120120 plan, the Texas Healthcare Transformation and Quality Improvement
121121 Program waiver issued under Section 1115 of the federal Social
122122 Security Act (42 U.S.C. Section 1315), or a successor waiver
123123 program authorizing similar Medicaid supplemental payment
124124 programs;
125125 (2) subsidize indigent programs;
126126 (3) pay the administrative expenses of the county
127127 solely for activities under this chapter;
128128 (4) refund a portion of a mandatory payment collected
129129 in error from a paying hospital; and
130130 (5) refund to paying hospitals the proportionate share
131131 of money received by the county from the Health and Human Services
132132 Commission that is not used to fund the nonfederal share of Medicaid
133133 supplemental payment program payments.
134134 (d) Money in the local provider participation fund may not
135135 be commingled with other county funds.
136136 (e) An intergovernmental transfer of funds described by
137137 Subsection (c)(1) and any funds received by the county as a result
138138 of an intergovernmental transfer described by that subsection may
139139 not be used by the county or any other entity to expand Medicaid
140140 eligibility under the Patient Protection and Affordable Care Act
141141 (Pub. L. No. 111-148) as amended by the Health Care and Education
142142 Reconciliation Act of 2010 (Pub. L. No. 111-152).
143143 SUBCHAPTER D. MANDATORY PAYMENTS
144144 Sec. 294.151. MANDATORY PAYMENTS BASED ON PAYING HOSPITAL
145145 NET PATIENT REVENUE. (a) Except as provided by Subsection (e), the
146146 commissioners court of a county that collects a mandatory payment
147147 authorized under this chapter may require an annual mandatory
148148 payment to be assessed quarterly on the net patient revenue of each
149149 institutional health care provider located in the county. In the
150150 first year in which the mandatory payment is required, the
151151 mandatory payment is assessed on the net patient revenue of an
152152 institutional health care provider as determined by the data
153153 reported to the Department of State Health Services under Sections
154154 311.032 and 311.033 in the fiscal year ending in 2014. The county
155155 shall update the amount of the mandatory payment on an annual basis.
156156 (b) The amount of a mandatory payment authorized under this
157157 chapter must be uniformly proportionate with the amount of net
158158 patient revenue generated by each paying hospital in the county. A
159159 mandatory payment authorized under this chapter may not hold
160160 harmless any institutional health care provider, as required under
161161 42 U.S.C. Section 1396b(w).
162162 (c) The commissioners court of a county that collects a
163163 mandatory payment authorized under this chapter shall set the
164164 amount of the mandatory payment. The amount of the mandatory
165165 payment required of each paying hospital may not exceed an amount
166166 that, when added to the amount of the mandatory payments required
167167 from all other paying hospitals in the county, equals an amount of
168168 revenue that exceeds six percent of the aggregate net patient
169169 revenue of all paying hospitals in the county.
170170 (d) Subject to the maximum amount prescribed by Subsection
171171 (c), the commissioners court of a county that collects a mandatory
172172 payment authorized under this chapter shall set the mandatory
173173 payments in amounts that in the aggregate will generate sufficient
174174 revenue to cover the administrative expenses of the county for
175175 activities under this chapter, to fund the nonfederal share of a
176176 Medicaid supplemental payment program, and to pay for indigent
177177 programs, except that the amount of revenue from mandatory payments
178178 used for administrative expenses of the county for activities under
179179 this chapter in a year may not exceed the lesser of four percent of
180180 the total revenue generated from the mandatory payment or $20,000.
181181 (e) A paying hospital may not add a mandatory payment
182182 required under this section as a surcharge to a patient.
183183 Sec. 294.152. ASSESSMENT AND COLLECTION OF MANDATORY
184184 PAYMENTS. (a) Except as provided by Subsection (b), the county tax
185185 assessor-collector shall collect the mandatory payment authorized
186186 under this chapter. The county tax assessor-collector shall charge
187187 and deduct from mandatory payments collected for the county a fee
188188 for collecting the mandatory payment in an amount determined by the
189189 commissioners court of the county, not to exceed the county tax
190190 assessor-collector's usual and customary charges.
191191 (b) If determined by the commissioners court to be
192192 appropriate, the commissioners court may contract for the
193193 assessment and collection of mandatory payments in the manner
194194 provided by Title 1, Tax Code, for the assessment and collection of
195195 ad valorem taxes.
196196 (c) Revenue from a fee charged by a county tax
197197 assessor-collector for collecting the mandatory payment shall be
198198 deposited in the county general fund and, if appropriate, shall be
199199 reported as fees of the county tax assessor-collector.
200200 Sec. 294.153. INTEREST, PENALTIES, AND DISCOUNTS.
201201 Interest, penalties, and discounts on mandatory payments required
202202 under this chapter are governed by the law applicable to county ad
203203 valorem taxes.
204204 Sec. 294.154. PURPOSE; CORRECTION OF INVALID PROVISION OR
205205 PROCEDURE. (a) The purpose of this chapter is to generate revenue
206206 by collecting from institutional health care providers a mandatory
207207 payment to be used to provide the nonfederal share of a Medicaid
208208 supplemental payment program.
209209 (b) To the extent any provision or procedure under this
210210 chapter causes a mandatory payment authorized under this chapter to
211211 be ineligible for federal matching funds, the county may provide by
212212 rule for an alternative provision or procedure that conforms to the
213213 requirements of the federal Centers for Medicare and Medicaid
214214 Services.
215215 SECTION 2. If before implementing any provision of this Act
216216 a state agency determines that a waiver or authorization from a
217217 federal agency is necessary for implementation of that provision,
218218 the agency affected by the provision shall request the waiver or
219219 authorization and may delay implementing that provision until the
220220 waiver or authorization is granted.
221221 SECTION 3. This Act takes effect immediately if it receives
222222 a vote of two-thirds of all the members elected to each house, as
223223 provided by Section 39, Article III, Texas Constitution. If this
224224 Act does not receive the vote necessary for immediate effect, this
225225 Act takes effect September 1, 2015.