1 | 1 | | 84R9807 MEW-D |
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2 | 2 | | By: Birdwell S.B. No. 1255 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the creation and operations of health care provider |
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8 | 8 | | participation programs in certain counties. |
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9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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10 | 10 | | SECTION 1. Subtitle D, Title 4, Health and Safety Code, is |
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11 | 11 | | amended by adding Chapter 294 to read as follows: |
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12 | 12 | | CHAPTER 294. COUNTY HEALTH CARE PROVIDER PARTICIPATION PROGRAM IN |
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13 | 13 | | CERTAIN COUNTIES CONTAINING A PRIVATE UNIVERSITY |
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14 | 14 | | SUBCHAPTER A. GENERAL PROVISIONS |
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15 | 15 | | Sec. 294.001. DEFINITIONS. In this chapter: |
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16 | 16 | | (1) "Institutional health care provider" means a |
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17 | 17 | | nonpublic hospital licensed under Chapter 241. |
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18 | 18 | | (2) "Paying hospital" means an institutional health |
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19 | 19 | | care provider required to make a mandatory payment under this |
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20 | 20 | | chapter. |
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21 | 21 | | (3) "Program" means the county health care provider |
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22 | 22 | | participation program authorized by this chapter. |
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23 | 23 | | Sec. 294.002. APPLICABILITY. This chapter applies only to |
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24 | 24 | | a county that: |
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25 | 25 | | (1) is not served by a hospital district or a public |
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26 | 26 | | hospital; |
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27 | 27 | | (2) contains a private institution of higher education |
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28 | 28 | | with a student enrollment of more than 12,000; and |
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29 | 29 | | (3) has a population of less than 250,000. |
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30 | 30 | | Sec. 294.003. COUNTY HEALTH CARE PROVIDER PARTICIPATION |
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31 | 31 | | PROGRAM; PARTICIPATION IN PROGRAM. (a) A county health care |
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32 | 32 | | provider participation program authorizes a county to collect a |
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33 | 33 | | mandatory payment from each institutional health care provider |
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34 | 34 | | located in the county to be deposited in a local provider |
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35 | 35 | | participation fund established by the county. Money in the fund may |
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36 | 36 | | be used by the county to fund certain intergovernmental transfers |
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37 | 37 | | and indigent care programs as provided by this chapter. |
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38 | 38 | | (b) The commissioners court may adopt an order authorizing a |
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39 | 39 | | county to participate in the program, subject to the limitations |
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40 | 40 | | provided by this chapter. |
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41 | 41 | | SUBCHAPTER B. POWERS AND DUTIES OF COMMISSIONERS COURT |
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42 | 42 | | Sec. 294.051. LIMITATION ON AUTHORITY TO REQUIRE MANDATORY |
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43 | 43 | | PAYMENT. The commissioners court of a county may require a |
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44 | 44 | | mandatory payment authorized under this chapter by an institutional |
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45 | 45 | | health care provider in the county only in the manner provided by |
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46 | 46 | | this chapter. |
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47 | 47 | | Sec. 294.052. MAJORITY VOTE REQUIRED. The commissioners |
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48 | 48 | | court of a county may not authorize the county to collect a |
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49 | 49 | | mandatory payment authorized under this chapter without an |
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50 | 50 | | affirmative vote of a majority of the members of the commissioners |
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51 | 51 | | court. |
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52 | 52 | | Sec. 294.053. RULES AND PROCEDURES. After the |
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53 | 53 | | commissioners court has voted to require a mandatory payment |
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54 | 54 | | authorized under this chapter, the commissioners court may adopt |
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55 | 55 | | rules relating to the administration of the mandatory payment. |
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56 | 56 | | Sec. 294.054. INSTITUTIONAL HEALTH CARE PROVIDER |
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57 | 57 | | REPORTING; INSPECTION OF RECORDS. (a) The commissioners court of a |
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58 | 58 | | county that collects a mandatory payment authorized under this |
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59 | 59 | | chapter shall require each institutional health care provider to |
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60 | 60 | | submit to the county a copy of any financial and utilization data |
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61 | 61 | | required by and reported to the Department of State Health Services |
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62 | 62 | | under Sections 311.032 and 311.033 and any rules adopted by the |
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63 | 63 | | executive commissioner of the Health and Human Services Commission |
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64 | 64 | | to implement those sections. |
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65 | 65 | | (b) The commissioners court of a county that collects a |
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66 | 66 | | mandatory payment authorized under this chapter may inspect the |
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67 | 67 | | records of an institutional health care provider to the extent |
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68 | 68 | | necessary to ensure compliance with the requirements of Subsection |
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69 | 69 | | (a). |
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70 | 70 | | SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS |
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71 | 71 | | Sec. 294.101. HEARING. (a) Each year, the commissioners |
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72 | 72 | | court of a county that collects a mandatory payment authorized |
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73 | 73 | | under this chapter shall hold a public hearing on the amounts of any |
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74 | 74 | | mandatory payments that the commissioners court intends to require |
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75 | 75 | | during the year and how the revenue derived from those payments is |
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76 | 76 | | to be spent. |
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77 | 77 | | (b) Not later than the 10th day before the date of the |
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78 | 78 | | hearing required under Subsection (a), the commissioners court of |
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79 | 79 | | the county shall publish notice of the hearing in a newspaper of |
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80 | 80 | | general circulation in the county. |
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81 | 81 | | (c) A representative of a paying hospital is entitled to |
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82 | 82 | | appear at the time and place designated in the public notice and to |
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83 | 83 | | be heard regarding any matter related to the mandatory payments |
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84 | 84 | | authorized under this chapter. |
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85 | 85 | | Sec. 294.102. DEPOSITORY. (a) The commissioners court of |
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86 | 86 | | each county that collects a mandatory payment authorized under this |
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87 | 87 | | chapter by resolution shall designate one or more banks located in |
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88 | 88 | | the county as the depository for mandatory payments received by the |
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89 | 89 | | county. A bank designated as a depository serves for two years or |
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90 | 90 | | until a successor is designated. |
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91 | 91 | | (b) All income received by a county under this chapter, |
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92 | 92 | | including the revenue from mandatory payments remaining after |
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93 | 93 | | discounts and fees for assessing and collecting the payments are |
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94 | 94 | | deducted, shall be deposited with the county depository in the |
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95 | 95 | | county's local provider participation fund and may be withdrawn |
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96 | 96 | | only as provided by this chapter. |
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97 | 97 | | (c) All funds under this chapter shall be secured in the |
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98 | 98 | | manner provided for securing county funds. |
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99 | 99 | | Sec. 294.103. LOCAL PROVIDER PARTICIPATION FUND; |
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100 | 100 | | AUTHORIZED USES OF MONEY. (a) Each county that collects a |
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101 | 101 | | mandatory payment authorized under this chapter shall create a |
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102 | 102 | | local provider participation fund. |
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103 | 103 | | (b) The local provider participation fund of a county |
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104 | 104 | | consists of: |
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105 | 105 | | (1) all revenue received by the county attributable to |
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106 | 106 | | mandatory payments authorized under this chapter, including any |
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107 | 107 | | penalties and interest attributable to delinquent payments; |
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108 | 108 | | (2) money received from the Health and Human Services |
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109 | 109 | | Commission as a refund of an intergovernmental transfer from the |
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110 | 110 | | county to the state for the purpose of providing the nonfederal |
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111 | 111 | | share of Medicaid supplemental payment program payments, provided |
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112 | 112 | | that the intergovernmental transfer does not receive a federal |
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113 | 113 | | matching payment; and |
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114 | 114 | | (3) the earnings of the fund. |
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115 | 115 | | (c) Money deposited to the local provider participation |
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116 | 116 | | fund may be used only to: |
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117 | 117 | | (1) fund intergovernmental transfers from the county |
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118 | 118 | | to the state to provide the nonfederal share of a Medicaid |
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119 | 119 | | supplemental payment program authorized under the state Medicaid |
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120 | 120 | | plan, the Texas Healthcare Transformation and Quality Improvement |
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121 | 121 | | Program waiver issued under Section 1115 of the federal Social |
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122 | 122 | | Security Act (42 U.S.C. Section 1315), or a successor waiver |
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123 | 123 | | program authorizing similar Medicaid supplemental payment |
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124 | 124 | | programs; |
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125 | 125 | | (2) subsidize indigent programs; |
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126 | 126 | | (3) pay the administrative expenses of the county |
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127 | 127 | | solely for activities under this chapter; |
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128 | 128 | | (4) refund a portion of a mandatory payment collected |
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129 | 129 | | in error from a paying hospital; and |
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130 | 130 | | (5) refund to paying hospitals the proportionate share |
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131 | 131 | | of money received by the county from the Health and Human Services |
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132 | 132 | | Commission that is not used to fund the nonfederal share of Medicaid |
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133 | 133 | | supplemental payment program payments. |
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134 | 134 | | (d) Money in the local provider participation fund may not |
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135 | 135 | | be commingled with other county funds. |
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136 | 136 | | (e) An intergovernmental transfer of funds described by |
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137 | 137 | | Subsection (c)(1) and any funds received by the county as a result |
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138 | 138 | | of an intergovernmental transfer described by that subsection may |
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139 | 139 | | not be used by the county or any other entity to expand Medicaid |
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140 | 140 | | eligibility under the Patient Protection and Affordable Care Act |
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141 | 141 | | (Pub. L. No. 111-148) as amended by the Health Care and Education |
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142 | 142 | | Reconciliation Act of 2010 (Pub. L. No. 111-152). |
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143 | 143 | | SUBCHAPTER D. MANDATORY PAYMENTS |
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144 | 144 | | Sec. 294.151. MANDATORY PAYMENTS BASED ON PAYING HOSPITAL |
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145 | 145 | | NET PATIENT REVENUE. (a) Except as provided by Subsection (e), the |
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146 | 146 | | commissioners court of a county that collects a mandatory payment |
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147 | 147 | | authorized under this chapter may require an annual mandatory |
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148 | 148 | | payment to be assessed quarterly on the net patient revenue of each |
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149 | 149 | | institutional health care provider located in the county. In the |
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150 | 150 | | first year in which the mandatory payment is required, the |
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151 | 151 | | mandatory payment is assessed on the net patient revenue of an |
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152 | 152 | | institutional health care provider as determined by the data |
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153 | 153 | | reported to the Department of State Health Services under Sections |
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154 | 154 | | 311.032 and 311.033 in the fiscal year ending in 2014. The county |
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155 | 155 | | shall update the amount of the mandatory payment on an annual basis. |
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156 | 156 | | (b) The amount of a mandatory payment authorized under this |
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157 | 157 | | chapter must be uniformly proportionate with the amount of net |
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158 | 158 | | patient revenue generated by each paying hospital in the county. A |
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159 | 159 | | mandatory payment authorized under this chapter may not hold |
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160 | 160 | | harmless any institutional health care provider, as required under |
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161 | 161 | | 42 U.S.C. Section 1396b(w). |
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162 | 162 | | (c) The commissioners court of a county that collects a |
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163 | 163 | | mandatory payment authorized under this chapter shall set the |
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164 | 164 | | amount of the mandatory payment. The amount of the mandatory |
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165 | 165 | | payment required of each paying hospital may not exceed an amount |
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166 | 166 | | that, when added to the amount of the mandatory payments required |
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167 | 167 | | from all other paying hospitals in the county, equals an amount of |
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168 | 168 | | revenue that exceeds six percent of the aggregate net patient |
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169 | 169 | | revenue of all paying hospitals in the county. |
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170 | 170 | | (d) Subject to the maximum amount prescribed by Subsection |
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171 | 171 | | (c), the commissioners court of a county that collects a mandatory |
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172 | 172 | | payment authorized under this chapter shall set the mandatory |
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173 | 173 | | payments in amounts that in the aggregate will generate sufficient |
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174 | 174 | | revenue to cover the administrative expenses of the county for |
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175 | 175 | | activities under this chapter, to fund the nonfederal share of a |
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176 | 176 | | Medicaid supplemental payment program, and to pay for indigent |
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177 | 177 | | programs, except that the amount of revenue from mandatory payments |
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178 | 178 | | used for administrative expenses of the county for activities under |
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179 | 179 | | this chapter in a year may not exceed the lesser of four percent of |
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180 | 180 | | the total revenue generated from the mandatory payment or $20,000. |
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181 | 181 | | (e) A paying hospital may not add a mandatory payment |
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182 | 182 | | required under this section as a surcharge to a patient. |
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183 | 183 | | Sec. 294.152. ASSESSMENT AND COLLECTION OF MANDATORY |
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184 | 184 | | PAYMENTS. (a) Except as provided by Subsection (b), the county tax |
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185 | 185 | | assessor-collector shall collect the mandatory payment authorized |
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186 | 186 | | under this chapter. The county tax assessor-collector shall charge |
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187 | 187 | | and deduct from mandatory payments collected for the county a fee |
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188 | 188 | | for collecting the mandatory payment in an amount determined by the |
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189 | 189 | | commissioners court of the county, not to exceed the county tax |
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190 | 190 | | assessor-collector's usual and customary charges. |
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191 | 191 | | (b) If determined by the commissioners court to be |
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192 | 192 | | appropriate, the commissioners court may contract for the |
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193 | 193 | | assessment and collection of mandatory payments in the manner |
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194 | 194 | | provided by Title 1, Tax Code, for the assessment and collection of |
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195 | 195 | | ad valorem taxes. |
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196 | 196 | | (c) Revenue from a fee charged by a county tax |
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197 | 197 | | assessor-collector for collecting the mandatory payment shall be |
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198 | 198 | | deposited in the county general fund and, if appropriate, shall be |
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199 | 199 | | reported as fees of the county tax assessor-collector. |
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200 | 200 | | Sec. 294.153. INTEREST, PENALTIES, AND DISCOUNTS. |
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201 | 201 | | Interest, penalties, and discounts on mandatory payments required |
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202 | 202 | | under this chapter are governed by the law applicable to county ad |
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203 | 203 | | valorem taxes. |
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204 | 204 | | Sec. 294.154. PURPOSE; CORRECTION OF INVALID PROVISION OR |
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205 | 205 | | PROCEDURE. (a) The purpose of this chapter is to generate revenue |
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206 | 206 | | by collecting from institutional health care providers a mandatory |
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207 | 207 | | payment to be used to provide the nonfederal share of a Medicaid |
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208 | 208 | | supplemental payment program. |
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209 | 209 | | (b) To the extent any provision or procedure under this |
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210 | 210 | | chapter causes a mandatory payment authorized under this chapter to |
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211 | 211 | | be ineligible for federal matching funds, the county may provide by |
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212 | 212 | | rule for an alternative provision or procedure that conforms to the |
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213 | 213 | | requirements of the federal Centers for Medicare and Medicaid |
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214 | 214 | | Services. |
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215 | 215 | | SECTION 2. If before implementing any provision of this Act |
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216 | 216 | | a state agency determines that a waiver or authorization from a |
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217 | 217 | | federal agency is necessary for implementation of that provision, |
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218 | 218 | | the agency affected by the provision shall request the waiver or |
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219 | 219 | | authorization and may delay implementing that provision until the |
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220 | 220 | | waiver or authorization is granted. |
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221 | 221 | | SECTION 3. This Act takes effect immediately if it receives |
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222 | 222 | | a vote of two-thirds of all the members elected to each house, as |
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223 | 223 | | provided by Section 39, Article III, Texas Constitution. If this |
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224 | 224 | | Act does not receive the vote necessary for immediate effect, this |
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225 | 225 | | Act takes effect September 1, 2015. |
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