Texas 2015 - 84th Regular

Texas Senate Bill SB1587 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Eltife S.B. No. 1587
2		-	(VanDeaver, Simpson, Paddie, Clardy)
	1	+	S.B. No. 1587
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 counties.
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 292 to read as follows:
12	10		CHAPTER 292. COUNTY HEALTH CARE PROVIDER PARTICIPATION PROGRAM IN
13	11		CERTAIN COUNTIES
14	12		SUBCHAPTER A. GENERAL PROVISIONS
15	13		Sec. 292.001. 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 county health care provider
22	20		participation program authorized by this chapter.
23	21		Sec. 292.002. APPLICABILITY. This chapter applies only to
24	22		a county that is not served by a hospital district and:
25	23		(1) is located in the Texas-Louisiana border region,
26	24		as that region is defined by Section 2056.002, Government Code, and
27	25		has a population of more than 90,000 but less than 200,000; or
28	26		(2) has a population of less than 51,000 and is
29	27		adjacent to a county with a population of more than 200,000 but less
30	28		than 220,000.
31	29		Sec. 292.003. COUNTY HEALTH CARE PROVIDER PARTICIPATION
32	30		PROGRAM; PARTICIPATION IN PROGRAM. (a) A county health care
33	31		provider participation program authorizes a county to collect a
34	32		mandatory payment from each institutional health care provider
35	33		located in the county to be deposited in a local provider
36	34		participation fund established by the county. Money in the fund may
37	35		be used by the county to fund certain intergovernmental transfers
38	36		and indigent care programs as provided by this chapter.
39	37		(b) The commissioners court may adopt an order authorizing a
40	38		county to participate in the program, subject to the limitations
41	39		provided by this chapter.
42	40		SUBCHAPTER B. POWERS AND DUTIES OF COMMISSIONERS COURT
43	41		Sec. 292.051. LIMITATION ON AUTHORITY TO REQUIRE MANDATORY
44	42		PAYMENT. The commissioners court of a county may require a
45	43		mandatory payment authorized under this chapter by an institutional
46	44		health care provider in the county only in the manner provided by
47	45		this chapter.
48	46		Sec. 292.052. MAJORITY VOTE REQUIRED. The commissioners
49	47		court of a county may not authorize the county to collect a
50	48		mandatory payment authorized under this chapter without an
51	49		affirmative vote of a majority of the members of the commissioners
52	50		court.
53	51		Sec. 292.053. RULES AND PROCEDURES. After the
54	52		commissioners court has voted to require a mandatory payment
55	53		authorized under this chapter, the commissioners court may adopt
56	54		rules relating to the administration of the mandatory payment.
57	55		Sec. 292.054. INSTITUTIONAL HEALTH CARE PROVIDER
58	56		REPORTING; INSPECTION OF RECORDS. (a) The commissioners court of
59	57		a county that collects a mandatory payment authorized under this
60	58		chapter shall require each institutional health care provider to
61	59		submit to the county a copy of any financial and utilization data
62	60		required by and reported to the Department of State Health Services
63	61		under Sections 311.032 and 311.033 and any rules adopted by the
64	62		executive commissioner of the Health and Human Services Commission
65	63		to implement those sections.
66	64		(b) The commissioners court of a county 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. 292.101. HEARING. (a) Each year, the commissioners
73	71		court of a county 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 commissioners court 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 commissioners court of
80	78		the county shall publish notice of the hearing in a newspaper of
81	79		general circulation in the county.
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. 292.102. DEPOSITORY. (a) The commissioners court of
87	85		each county that collects a mandatory payment authorized under this
88	86		chapter by resolution shall designate one or more banks located in
89	87		the county as the depository for mandatory payments received by the
90	88		county. A bank designated as a depository serves for two years or
91	89		until a successor is designated.
92	90		(b) All income received by a county under this chapter,
93	91		including the revenue from mandatory payments remaining after
94	92		discounts and fees for assessing and collecting the payments are
95	93		deducted, shall be deposited with the county depository in the
96	94		county's local provider participation fund and may be withdrawn
97	95		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 county funds.
100	98		Sec. 292.103. LOCAL PROVIDER PARTICIPATION FUND;
101	99		AUTHORIZED USES OF MONEY. (a) Each county 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 county
105	103		consists of:
106	104		(1) all revenue received by the county attributable to
107	105		mandatory payments authorized under this chapter, including any
108	106		penalties and interest attributable to delinquent payments;
109	107		(2) money received from the Health and Human Services
110	108		Commission as a refund of an intergovernmental transfer from the
111	109		county to the state for the purpose of providing the nonfederal
112	110		share of Medicaid supplemental payment program payments, provided
113	111		that the intergovernmental transfer does not receive a federal
114	112		matching payment; and
115	113		(3) the earnings of the fund.
116	114		(c) Money deposited to the local provider participation
117	115		fund may be used only to:
118	116		(1) fund intergovernmental transfers from the county
119	117		to the state to provide the nonfederal share of a Medicaid
120	118		supplemental payment program authorized under the state Medicaid
121	119		plan, the Texas Healthcare Transformation and Quality Improvement
122	120		Program waiver issued under Section 1115 of the federal Social
123	121		Security Act (42 U.S.C. Section 1315), or a successor waiver
124	122		program authorizing similar Medicaid supplemental payment
125	123		programs;
126	124		(2) subsidize indigent programs;
127	125		(3) pay the administrative expenses of the county
128	126		solely for activities under this chapter;
129	127		(4) refund a portion of a mandatory payment collected
130	128		in error from a paying hospital; and
131	129		(5) refund to paying hospitals the proportionate share
132	130		of money received by the county from the Health and Human Services
133	131		Commission that is not used to fund the nonfederal share of Medicaid
134	132		supplemental payment program payments.
135	133		(d) Money in the local provider participation fund may not
136	134		be commingled with other county funds.
137	135		(e) An intergovernmental transfer of funds described by
138	136		Subsection (c)(1) and any funds received by the county as a result
139	137		of an intergovernmental transfer described by that subsection may
140	138		not be used by the county or any other entity to expand Medicaid
141	139		eligibility under the Patient Protection and Affordable Care Act
142	140		(Pub. L. No. 111-148) as amended by the Health Care and Education
143	141		Reconciliation Act of 2010 (Pub. L. No. 111-152).
144	142		SUBCHAPTER D. MANDATORY PAYMENTS
145	143		Sec. 292.151. MANDATORY PAYMENTS BASED ON PAYING HOSPITAL
146	144		NET PATIENT REVENUE. (a) Except as provided by Subsection (e),
147	145		the commissioners court of a county that collects a mandatory
148	146		payment authorized under this chapter may require an annual
149	147		mandatory payment to be assessed on the net patient revenue of each
150	148		institutional health care provider located in the county. The
151	149		commissioners court may provide for the mandatory payment to be
152	150		assessed quarterly. In the first year in which the mandatory
153	151		payment is required, the mandatory payment is assessed on the net
154	152		patient revenue of an institutional health care provider as
155	153		determined by the data reported to the Department of State Health
156	154		Services under Sections 311.032 and 311.033 in the fiscal year
157	155		ending in 2013 or, if the institutional health care provider did not
158	156		report any data under those sections in that fiscal year, as
159	157		determined by the institutional health care provider's Medicare
160	158		cost report submitted for the 2013 fiscal year or for the closest
161	159		subsequent fiscal year for which the provider submitted the
162	160		Medicare cost report. The county shall update the amount of the
163	161		mandatory payment on an annual basis.
164	162		(b) The amount of a mandatory payment authorized under this
165	163		chapter must be uniformly proportionate with the amount of net
166	164		patient revenue generated by each paying hospital in the county. A
167	165		mandatory payment authorized under this chapter may not hold
168	166		harmless any institutional health care provider, as required under
169	167		42 U.S.C. Section 1396b(w).
170	168		(c) The commissioners court of a county that collects a
171	169		mandatory payment authorized under this chapter shall set the
172	170		amount of the mandatory payment. The amount of the mandatory
173	171		payment required of each paying hospital may not exceed an amount
174	172		that, when added to the amount of the mandatory payments required
175	173		from all other paying hospitals in the county, equals an amount of
176	174		revenue that exceeds six percent of the aggregate net patient
177	175		revenue of all paying hospitals in the county.
178	176		(d) Subject to the maximum amount prescribed by Subsection
179	177		(c), the commissioners court of a county that collects a mandatory
180	178		payment authorized under this chapter shall set the mandatory
181	179		payments in amounts that in the aggregate will generate sufficient
182	180		revenue to cover the administrative expenses of the county for
183	181		activities under this chapter, to fund the nonfederal share of a
184	182		Medicaid supplemental payment program, and to pay for indigent
185	183		programs, except that the amount of revenue from mandatory payments
186	184		used for administrative expenses of the county for activities under
187	185		this chapter in a year may not exceed the lesser of four percent of
188	186		the total revenue generated from the mandatory payment or $20,000.
189	187		(e) A paying hospital may not add a mandatory payment
190	188		required under this section as a surcharge to a patient.
191	189		Sec. 292.152. ASSESSMENT AND COLLECTION OF MANDATORY
192	190		PAYMENTS. (a) Except as provided by Subsection (b), the county
193	191		tax assessor-collector shall collect the mandatory payment
194	192		authorized under this chapter. The county tax assessor-collector
195	193		shall charge and deduct from mandatory payments collected for the
196	194		county a fee for collecting the mandatory payment in an amount
197	195		determined by the commissioners court of the county, not to exceed
198	196		the county tax assessor-collector's usual and customary charges.
199	197		(b) If determined by the commissioners court to be
200	198		appropriate, the commissioners court may contract for the
201	199		assessment and collection of mandatory payments in the manner
202	200		provided by Title 1, Tax Code, for the assessment and collection of
203	201		ad valorem taxes.
204	202		(c) Revenue from a fee charged by a county tax
205	203		assessor-collector for collecting the mandatory payment shall be
206	204		deposited in the county general fund and, if appropriate, shall be
207	205		reported as fees of the county tax assessor-collector.
208	206		Sec. 292.153. INTEREST, PENALTIES, AND DISCOUNTS.
209	207		Interest, penalties, and discounts on mandatory payments required
210	208		under this chapter are governed by the law applicable to county ad
211	209		valorem taxes.
212	210		Sec. 292.154. PURPOSE; CORRECTION OF INVALID PROVISION OR
213	211		PROCEDURE. (a) The purpose of this chapter is to generate revenue
214	212		by collecting from institutional health care providers a mandatory
215	213		payment to be used to provide the nonfederal share of a Medicaid
216	214		supplemental payment program.
217	215		(b) To the extent any provision or procedure under this
218	216		chapter causes a mandatory payment authorized under this chapter to
219	217		be ineligible for federal matching funds, the county may provide by
220	218		rule for an alternative provision or procedure that conforms to the
221	219		requirements of the federal Centers for Medicare and Medicaid
222	220		Services.
223	221		SECTION 2. If before implementing any provision of this Act
224	222		a state agency determines that a waiver or authorization from a
225	223		federal agency is necessary for implementation of that provision,
226	224		the agency affected by the provision shall request the waiver or
227	225		authorization and may delay implementing that provision until the
228	226		waiver or authorization is granted.
229	227		SECTION 3. This Act takes effect immediately if it receives
230	228		a vote of two-thirds of all the members elected to each house, as
231	229		provided by Section 39, Article III, Texas Constitution. If this
232	230		Act does not receive the vote necessary for immediate effect, this
233	231		Act takes effect September 1, 2015.
	232	+	______________________________ ______________________________
	233	+	President of the Senate Speaker of the House
	234	+	I hereby certify that S.B. No. 1587 passed the Senate on
	235	+	April 30, 2015, by the following vote: Yeas 31, Nays 0.
	236	+	______________________________
	237	+	Secretary of the Senate
	238	+	I hereby certify that S.B. No. 1587 passed the House on
	239	+	May 19, 2015, by the following vote: Yeas 143, Nays 3, two
	240	+	present not voting.
	241	+	______________________________
	242	+	Chief Clerk of the House
	243	+	Approved:
	244	+	______________________________
	245	+	Date
	246	+	______________________________
	247	+	Governor