Texas 2015 - 84th Regular

Texas Senate Bill SB1387 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Creighton S.B. No. 1387
2		-	(Deshotel)
	1	+	S.B. No. 1387
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to the creation and operations of health care provider
8	6		participation programs in certain municipalities.
9	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	8		SECTION 1. Subtitle D, Title 4, Health and Safety Code, is
11	9		amended by adding Chapter 295 to read as follows:
12	10		CHAPTER 295. MUNICIPAL HEALTH CARE PROVIDER PARTICIPATION PROGRAM
13	11		IN CERTAIN MUNICIPALITIES
14	12		SUBCHAPTER A. GENERAL PROVISIONS
15	13		Sec. 295.001. DEFINITIONS. In this chapter:
16	14		(1) "Institutional health care provider" means a
17	15		nonpublic hospital that provides inpatient hospital services.
18	16		(2) "Paying hospital" means an institutional health
19	17		care provider required to make a mandatory payment under this
20	18		chapter.
21	19		(3) "Program" means the municipal health care provider
22	20		participation program authorized by this chapter.
23	21		Sec. 295.002. APPLICABILITY. This chapter applies only to
24	22		a municipality that:
25	23		(1) is not served by a hospital district or a public
26	24		hospital;
27	25		(2) is located on the Gulf of Mexico or on a channel,
28	26		canal, bay, or inlet connected to the Gulf of Mexico; and
29	27		(3) has a population of more than 117,000 and less than
30	28		145,000.
31	29		Sec. 295.003. MUNICIPAL HEALTH CARE PROVIDER PARTICIPATION
32	30		PROGRAM; PARTICIPATION IN PROGRAM. (a) A municipal health care
33	31		provider participation program authorizes a municipality to
34	32		collect a mandatory payment from each institutional health care
35	33		provider located in the municipality to be deposited in a local
36	34		provider participation fund established by the municipality. Money
37	35		in the fund may be used by the municipality to fund certain
38	36		intergovernmental transfers and indigent care programs as provided
39	37		by this chapter.
40	38		(b) The governing body of a municipality may adopt an
41	39		ordinance authorizing a municipality to participate in the program,
42	40		subject to the limitations provided by this chapter.
43	41		SUBCHAPTER B. POWERS AND DUTIES OF GOVERNING BODY OF MUNICIPALITY
44	42		Sec. 295.051. LIMITATION ON AUTHORITY TO REQUIRE MANDATORY
45	43		PAYMENT. The governing body of a municipality may require a
46	44		mandatory payment authorized under this chapter by an institutional
47	45		health care provider in the municipality only in the manner
48	46		provided by this chapter.
49	47		Sec. 295.052. MAJORITY VOTE REQUIRED. The governing body
50	48		of a municipality may not authorize the municipality to collect a
51	49		mandatory payment authorized under this chapter without an
52	50		affirmative vote of a majority of the members of the governing body.
53	51		Sec. 295.053. RULES AND PROCEDURES. After the governing
54	52		body of a municipality has voted to require a mandatory payment
55	53		authorized under this chapter, the governing body may adopt rules
56	54		relating to the administration of the mandatory payment.
57	55		Sec. 295.054. INSTITUTIONAL HEALTH CARE PROVIDER
58	56		REPORTING; INSPECTION OF RECORDS. (a) The governing body of a
59	57		municipality that collects a mandatory payment authorized under
60	58		this chapter shall require each institutional health care provider
61	59		to submit to the municipality a copy of any financial and
62	60		utilization data required by and reported to the Department of
63	61		State Health Services under Sections 311.032 and 311.033 and any
64	62		rules adopted by the executive commissioner of the Health and Human
65	63		Services Commission to implement those sections.
66	64		(b) The governing body of a municipality that collects a
67	65		mandatory payment authorized under this chapter may inspect the
68	66		records of an institutional health care provider to the extent
69	67		necessary to ensure compliance with the requirements of Subsection
70	68		(a).
71	69		SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS
72	70		Sec. 295.101. HEARING. (a) Each year, the governing body
73	71		of a municipality that collects a mandatory payment authorized
74	72		under this chapter shall hold a public hearing on the amounts of any
75	73		mandatory payments that the governing body intends to require
76	74		during the year and how the revenue derived from those payments is
77	75		to be spent.
78	76		(b) Not later than the 10th day before the date of the
79	77		hearing required under Subsection (a), the governing body of the
80	78		municipality shall publish notice of the hearing in a newspaper of
81	79		general circulation in the municipality.
82	80		(c) A representative of a paying hospital is entitled to
83	81		appear at the time and place designated in the public notice and to
84	82		be heard regarding any matter related to the mandatory payments
85	83		authorized under this chapter.
86	84		Sec. 295.102. DEPOSITORY. (a) The governing body of each
87	85		municipality that collects a mandatory payment authorized under
88	86		this chapter by resolution shall designate one or more banks
89	87		located in the municipality as the depository for mandatory
90	88		payments received by the municipality. A bank designated as a
91	89		depository serves for two years or until a successor is designated.
92	90		(b) All income received by a municipality under this
93	91		chapter, including the revenue from mandatory payments remaining
94	92		after discounts and fees for assessing and collecting the payments
95	93		are deducted, shall be deposited with the designated depository in
96	94		the municipality's local provider participation fund and may be
97	95		withdrawn only as provided by this chapter.
98	96		(c) All funds under this chapter shall be secured in the
99	97		manner provided for securing municipal funds.
100	98		Sec. 295.103. LOCAL PROVIDER PARTICIPATION FUND;
101	99		AUTHORIZED USES OF MONEY. (a) Each municipality that collects a
102	100		mandatory payment authorized under this chapter shall create a
103	101		local provider participation fund.
104	102		(b) The local provider participation fund of a municipality
105	103		consists of:
106	104		(1) all revenue received by the municipality
107	105		attributable to mandatory payments authorized under this chapter,
108	106		including any penalties and interest attributable to delinquent
109	107		payments;
110	108		(2) money received from the Health and Human Services
111	109		Commission as a refund of an intergovernmental transfer from the
112	110		municipality to the state for the purpose of providing the
113	111		nonfederal share of Medicaid supplemental payment program
114	112		payments, provided that the intergovernmental transfer does not
115	113		receive a federal matching payment; and
116	114		(3) the earnings of the fund.
117	115		(c) Money deposited to the local provider participation
118	116		fund may be used only to:
119	117		(1) fund intergovernmental transfers from the
120	118		municipality to the state to provide the nonfederal share of a
121	119		Medicaid supplemental payment program authorized under the state
122	120		Medicaid plan, the Texas Healthcare Transformation and Quality
123	121		Improvement Program waiver issued under Section 1115 of the federal
124	122		Social Security Act (42 U.S.C. Section 1315), or a successor waiver
125	123		program authorizing similar Medicaid supplemental payment
126	124		programs;
127	125		(2) subsidize indigent programs;
128	126		(3) pay the administrative expenses of the
129	127		municipality solely for activities under this chapter;
130	128		(4) refund a portion of a mandatory payment collected
131	129		in error from a paying hospital; and
132	130		(5) refund to paying hospitals the proportionate share
133	131		of money received by the municipality from the Health and Human
134	132		Services Commission that is not used to fund the nonfederal share of
135	133		Medicaid supplemental payment program payments.
136	134		(d) Money in the local provider participation fund may not
137	135		be commingled with other municipal funds.
138	136		(e) An intergovernmental transfer of funds described by
139	137		Subsection (c)(1) and any funds received by the municipality as a
140	138		result of an intergovernmental transfer described by that
141	139		subsection may not be used by the municipality or any other entity
142	140		to expand Medicaid eligibility under the Patient Protection and
143	141		Affordable Care Act (Pub. L. No. 111-148) as amended by the Health
144	142		Care and Education Reconciliation Act of 2010 (Pub. L.
145	143		No. 111-152).
146	144		SUBCHAPTER D. MANDATORY PAYMENTS
147	145		Sec. 295.151. MANDATORY PAYMENTS BASED ON PAYING HOSPITAL
148	146		NET PATIENT REVENUE. (a) Except as provided by Subsection (e),
149	147		the governing body of a municipality that collects a mandatory
150	148		payment authorized under this chapter may require an annual
151	149		mandatory payment to be assessed on the net patient revenue of each
152	150		institutional health care provider located in the municipality.
153	151		The governing body may provide for the mandatory payment to be
154	152		assessed quarterly. In the first year in which the mandatory
155	153		payment is required, the mandatory payment is assessed on the net
156	154		patient revenue of an institutional health care provider as
157	155		determined by the data reported to the Department of State Health
158	156		Services under Sections 311.032 and 311.033 in the fiscal year
159	157		ending in 2013 or, if the institutional health care provider did not
160	158		report any data under those sections in that fiscal year, as
161	159		determined by the institutional health care provider's Medicare
162	160		cost report submitted for the 2013 fiscal year or for the closest
163	161		subsequent fiscal year for which the provider submitted the
164	162		Medicare cost report. The municipality shall update the amount of
165	163		the mandatory payment on an annual basis.
166	164		(b) The amount of a mandatory payment authorized under this
167	165		chapter must be uniformly proportionate with the amount of net
168	166		patient revenue generated by each paying hospital in the
169	167		municipality. A mandatory payment authorized under this chapter
170	168		may not hold harmless any institutional health care provider, as
171	169		required under 42 U.S.C. Section 1396b(w).
172	170		(c) The governing body of a municipality that collects a
173	171		mandatory payment authorized under this chapter shall set the
174	172		amount of the mandatory payment. The amount of the mandatory
175	173		payment required of each paying hospital may not exceed an amount
176	174		that, when added to the amount of the mandatory payments required
177	175		from all other paying hospitals in the municipality, equals an
178	176		amount of revenue that exceeds six percent of the aggregate net
179	177		patient revenue of all paying hospitals in the municipality.
180	178		(d) Subject to the maximum amount prescribed by Subsection
181	179		(c), the governing body of a municipality that collects a mandatory
182	180		payment authorized under this chapter shall set the mandatory
183	181		payments in amounts that in the aggregate will generate sufficient
184	182		revenue to cover the administrative expenses of the municipality
185	183		for activities under this chapter, to fund the nonfederal share of a
186	184		Medicaid supplemental payment program, and to pay for indigent
187	185		programs, except that the amount of revenue from mandatory payments
188	186		used for administrative expenses of the municipality for activities
189	187		under this chapter in a year may not exceed the lesser of four
190	188		percent of the total revenue generated from the mandatory payment
191	189		or $20,000.
192	190		(e) A paying hospital may not add a mandatory payment
193	191		required under this section as a surcharge to a patient.
194	192		Sec. 295.152. ASSESSMENT AND COLLECTION OF MANDATORY
195	193		PAYMENTS. (a) Except as provided by Subsection (b), the municipal
196	194		tax assessor-collector shall collect the mandatory payment
197	195		authorized under this chapter. The municipal tax
198	196		assessor-collector shall charge and deduct from mandatory payments
199	197		collected for the municipality a fee for collecting the mandatory
200	198		payment in an amount determined by the governing body of the
201	199		municipality, not to exceed the municipal tax assessor-collector's
202	200		usual and customary charges.
203	201		(b) If determined by the governing body to be appropriate,
204	202		the governing body may contract for the assessment and collection
205	203		of mandatory payments in the manner provided by Title 1, Tax Code,
206	204		for the assessment and collection of ad valorem taxes.
207	205		(c) Revenue from a fee charged by a municipal tax
208	206		assessor-collector for collecting the mandatory payment shall be
209	207		deposited in the municipal general fund and, if appropriate, shall
210	208		be reported as fees of the municipal tax assessor-collector.
211	209		Sec. 295.153. INTEREST, PENALTIES, AND DISCOUNTS.
212	210		Interest, penalties, and discounts on mandatory payments required
213	211		under this chapter are governed by the law applicable to municipal
214	212		ad valorem taxes.
215	213		Sec. 295.154. PURPOSE; CORRECTION OF INVALID PROVISION OR
216	214		PROCEDURE. (a) The purpose of this chapter is to generate revenue
217	215		by collecting from institutional health care providers a mandatory
218	216		payment to be used to provide the nonfederal share of a Medicaid
219	217		supplemental payment program.
220	218		(b) To the extent any provision or procedure under this
221	219		chapter causes a mandatory payment authorized under this chapter to
222	220		be ineligible for federal matching funds, the municipality may
223	221		provide by rule for an alternative provision or procedure that
224	222		conforms to the requirements of the federal Centers for Medicare
225	223		and Medicaid Services.
226	224		SECTION 2. If before implementing any provision of this Act
227	225		a state agency determines that a waiver or authorization from a
228	226		federal agency is necessary for implementation of that provision,
229	227		the agency affected by the provision shall request the waiver or
230	228		authorization and may delay implementing that provision until the
231	229		waiver or authorization is granted.
232	230		SECTION 3. This Act takes effect immediately if it receives
233	231		a vote of two-thirds of all the members elected to each house, as
234	232		provided by Section 39, Article III, Texas Constitution. If this
235	233		Act does not receive the vote necessary for immediate effect, this
236	234		Act takes effect September 1, 2015.
	235	+	______________________________ ______________________________
	236	+	President of the Senate Speaker of the House
	237	+	I hereby certify that S.B. No. 1387 passed the Senate on
	238	+	May 5, 2015, by the following vote: Yeas 31, Nays 0.
	239	+	______________________________
	240	+	Secretary of the Senate
	241	+	I hereby certify that S.B. No. 1387 passed the House on
	242	+	May 13, 2015, by the following vote: Yeas 145, Nays 0, two
	243	+	present not voting.
	244	+	______________________________
	245	+	Chief Clerk of the House
	246	+	Approved:
	247	+	______________________________
	248	+	Date
	249	+	______________________________
	250	+	Governor