S.B. No. 1462
AN ACT
relating to the creation and operation of certain local health care
provider participation programs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 288.151(b), Health and Safety Code, is
amended to read as follows:
(b) Not later than the fifth [10th] day before the date of
the hearing, the commission shall publish at least once notice of
the hearing in a newspaper of general circulation in the county in
which the district is located.
SECTION 2. Section 288.155(c), Health and Safety Code, is
amended to read as follows:
(c) Money deposited to the local provider participation
fund may be used only to:
(1) fund intergovernmental transfers from the
district to the state to provide:
(A) the nonfederal share of a Medicaid
supplemental payment program authorized under the state Medicaid
plan, the Texas Healthcare Transformation and Quality Improvement
Program waiver issued under Section 1115 of the federal Social
Security Act (42 U.S.C. Section 1315), or a successor waiver
program authorizing similar Medicaid supplemental payment
programs; or
(B) payments to Medicaid managed care
organizations that are dedicated for payment to hospitals;
(2) subsidize indigent programs;
(3) pay the administrative expenses of the district;
(4) refund a portion of a mandatory payment collected
in error from a paying hospital; [and]
(5) refund to paying hospitals the proportionate share
of the money received by the district from the Health and Human
Services Commission that is not used to fund the nonfederal share of
Medicaid supplemental payment program payments; and
(6) refund to paying hospitals the proportionate share
of money that the district determines cannot be used to fund the
nonfederal share of Medicaid supplemental payment program
payments.
SECTION 3. Section 288.202, Health and Safety Code, is
amended to read as follows:
Sec. 288.202. ASSESSMENT AND COLLECTION OF MANDATORY
PAYMENTS. The district may collect or, using a competitive bidding
process, contract for the assessment and collection of mandatory
payments required under this chapter [(a) Except as provided by
Subsection (b), the county tax assessor-collector shall collect a
mandatory payment required under this subchapter. The county tax
assessor-collector shall charge and deduct from mandatory payments
collected for the district a fee for collecting the mandatory
payment in an amount determined by the commission, not to exceed the
county tax assessor-collector's usual and customary charges.
[(b) If determined by the commission to be appropriate, the
commission may contract for the assessment and collection of
mandatory payments in the manner provided by Title 1, Tax Code, for
the assessment and collection of ad valorem taxes.
[(c) Revenue from a fee charged by a county tax
assessor-collector for collecting the mandatory payment shall be
deposited in the county general fund and, if appropriate, shall be
reported as fees of the county tax assessor-collector].
SECTION 4. Section 291.101(b), Health and Safety Code, is
amended to read as follows:
(b) Not later than the fifth [10th] day before the date of
the hearing required under Subsection (a), the commissioners court
of the county shall publish notice of the hearing in a newspaper of
general circulation in the county.
SECTION 5. Section 291.103(c), Health and Safety Code, is
amended to read as follows:
(c) Money deposited to the local provider participation
fund may be used only to:
(1) fund intergovernmental transfers from the county
to the state to provide:
(A) the nonfederal share of a Medicaid
supplemental payment program authorized under the state Medicaid
plan, the Texas Healthcare Transformation and Quality Improvement
Program waiver issued under Section 1115 of the federal Social
Security Act (42 U.S.C. Section 1315), or a successor waiver
program authorizing similar Medicaid supplemental payment
programs; or
(B) payments to Medicaid managed care
organizations that are dedicated for payment to hospitals;
(2) subsidize indigent programs;
(3) pay the administrative expenses of the county
solely for activities under this chapter;
(4) refund a portion of a mandatory payment collected
in error from a paying hospital; [and]
(5) refund to paying hospitals the proportionate share
of money received by the county from the Health and Human Services
Commission that is not used to fund the nonfederal share of Medicaid
supplemental payment program payments; and
(6) refund to paying hospitals the proportionate share
of money that the county determines cannot be used to fund the
nonfederal share of Medicaid supplemental payment program
payments.
SECTION 6. Section 291.152, Health and Safety Code, is
amended to read as follows:
Sec. 291.152. ASSESSMENT AND COLLECTION OF MANDATORY
PAYMENTS. The county may collect or, using a competitive bidding
process, contract for the assessment and collection of mandatory
payments authorized under this chapter [(a) Except as provided by
Subsection (b), the county tax assessor-collector shall collect the
mandatory payment authorized under this chapter. The county tax
assessor-collector shall charge and deduct from mandatory payments
collected for the county a fee for collecting the mandatory payment
in an amount determined by the commissioners court of the county,
not to exceed the county tax assessor-collector's usual and
customary charges.
[(b) If determined by the commissioners court to be
appropriate, the commissioners court may contract for the
assessment and collection of mandatory payments in the manner
provided by Title 1, Tax Code, for the assessment and collection of
ad valorem taxes.
[(c) Revenue from a fee charged by a county tax
assessor-collector for collecting the mandatory payment shall be
deposited in the county general fund and, if appropriate, shall be
reported as fees of the county tax assessor-collector].
SECTION 7. Section 292.101(b), Health and Safety Code, is
amended to read as follows:
(b) Not later than the fifth [10th] day before the date of
the hearing required under Subsection (a), the commissioners court
of the county shall publish notice of the hearing in a newspaper of
general circulation in the county.
SECTION 8. Section 292.103(c), Health and Safety Code, is
amended to read as follows:
(c) Money deposited to the local provider participation
fund may be used only to:
(1) fund intergovernmental transfers from the county
to the state to provide:
(A) the nonfederal share of a Medicaid
supplemental payment program authorized under the state Medicaid
plan, the Texas Healthcare Transformation and Quality Improvement
Program waiver issued under Section 1115 of the federal Social
Security Act (42 U.S.C. Section 1315), or a successor waiver
program authorizing similar Medicaid supplemental payment
programs; or
(B) payments to Medicaid managed care
organizations that are dedicated for payment to hospitals;
(2) subsidize indigent programs;
(3) pay the administrative expenses of the county
solely for activities under this chapter;
(4) refund a portion of a mandatory payment collected
in error from a paying hospital; [and]
(5) refund to paying hospitals the proportionate share
of money received by the county from the Health and Human Services
Commission that is not used to fund the nonfederal share of Medicaid
supplemental payment program payments; and
(6) refund to paying hospitals the proportionate share
of money that the county determines cannot be used to fund the
nonfederal share of Medicaid supplemental payment program
payments.
SECTION 9. Section 292.152, Health and Safety Code, is
amended to read as follows:
Sec. 292.152. ASSESSMENT AND COLLECTION OF MANDATORY
PAYMENTS. The county may collect or, using a competitive bidding
process, contract for the assessment and collection of mandatory
payments authorized under this chapter [(a) Except as provided by
Subsection (b), the county tax assessor-collector shall collect the
mandatory payment authorized under this chapter. The county tax
assessor-collector shall charge and deduct from mandatory payments
collected for the county a fee for collecting the mandatory payment
in an amount determined by the commissioners court of the county,
not to exceed the county tax assessor-collector's usual and
customary charges.
[(b) If determined by the commissioners court to be
appropriate, the commissioners court may contract for the
assessment and collection of mandatory payments in the manner
provided by Title 1, Tax Code, for the assessment and collection of
ad valorem taxes.
[(c) Revenue from a fee charged by a county tax
assessor-collector for collecting the mandatory payment shall be
deposited in the county general fund and, if appropriate, shall be
reported as fees of the county tax assessor-collector].
SECTION 10. Section 293.001(1), Health and Safety Code, is
amended to read as follows:
(1) "Institutional health care provider" means a
nonpublic hospital that provides inpatient hospital services
[licensed under Chapter 241].
SECTION 11. Section 293.101(b), Health and Safety Code, is
amended to read as follows:
(b) Not later than the fifth [10th] day before the date of
the hearing required under Subsection (a), the commissioners court
of the county shall publish notice of the hearing in a newspaper of
general circulation in the county.
SECTION 12. Section 293.103(c), Health and Safety Code, is
amended to read as follows:
(c) Money deposited to the local provider participation
fund may be used only to:
(1) fund intergovernmental transfers from the county
to the state to provide:
(A) the nonfederal share of a Medicaid
supplemental payment program authorized under the state Medicaid
plan, the Texas Healthcare Transformation and Quality Improvement
Program waiver issued under Section 1115 of the federal Social
Security Act (42 U.S.C. Section 1315), or a successor waiver
program authorizing similar Medicaid supplemental payment
programs; or
(B) payments to Medicaid managed care
organizations that are dedicated for payment to hospitals;
(2) subsidize indigent programs;
(3) pay the administrative expenses of the county
solely for activities under this chapter;
(4) refund a portion of a mandatory payment collected
in error from a paying hospital; [and]
(5) refund to paying hospitals the proportionate share
of money received by the county from the Health and Human Services
Commission that is not used to fund the nonfederal share of Medicaid
supplemental payment program payments; and
(6) refund to paying hospitals the proportionate share
of money that the county determines cannot be used to fund the
nonfederal share of Medicaid supplemental payment program
payments.
SECTION 13. Section 293.152, Health and Safety Code, is
amended to read as follows:
Sec. 293.152. ASSESSMENT AND COLLECTION OF MANDATORY
PAYMENTS. The county may collect or, using a competitive bidding
process, contract for the assessment and collection of mandatory
payments authorized under this chapter [(a) Except as provided by
Subsection (b), the county tax assessor-collector shall collect the
mandatory payment authorized under this chapter. The county tax
assessor-collector shall charge and deduct from mandatory payments
collected for the county a fee for collecting the mandatory payment
in an amount determined by the commissioners court of the county,
not to exceed the county tax assessor-collector's usual and
customary charges.
[(b) If determined by the commissioners court to be
appropriate, the commissioners court may contract for the
assessment and collection of mandatory payments in the manner
provided by Title 1, Tax Code, for the assessment and collection of
ad valorem taxes.
[(c) Revenue from a fee charged by a county tax
assessor-collector for collecting the mandatory payment shall be
deposited in the county general fund and, if appropriate, shall be
reported as fees of the county tax assessor-collector].
SECTION 14. Section 294.001(1), Health and Safety Code, is
amended to read as follows:
(1) "Institutional health care provider" means a
nonpublic hospital that provides inpatient hospital services
[licensed under Chapter 241].
SECTION 15. Section 294.101(b), Health and Safety Code, is
amended to read as follows:
(b) Not later than the fifth [10th] day before the date of
the hearing required under Subsection (a), the commissioners court
of the county shall publish notice of the hearing in a newspaper of
general circulation in the county.
SECTION 16. Section 294.103(c), Health and Safety Code, is
amended to read as follows:
(c) Money deposited to the local provider participation
fund may be used only to:
(1) fund intergovernmental transfers from the county
to the state to provide:
(A) the nonfederal share of a Medicaid
supplemental payment program authorized under the state Medicaid
plan, the Texas Healthcare Transformation and Quality Improvement
Program waiver issued under Section 1115 of the federal Social
Security Act (42 U.S.C. Section 1315), or a successor waiver
program authorizing similar Medicaid supplemental payment
programs; or
(B) payments to Medicaid managed care
organizations that are dedicated for payment to hospitals;
(2) subsidize indigent programs;
(3) pay the administrative expenses of the county
solely for activities under this chapter;
(4) refund a portion of a mandatory payment collected
in error from a paying hospital; [and]
(5) refund to paying hospitals the proportionate share
of money received by the county from the Health and Human Services
Commission that is not used to fund the nonfederal share of Medicaid
supplemental payment program payments; and
(6) refund to paying hospitals the proportionate share
of money that the county determines cannot be used to fund the
nonfederal share of Medicaid supplemental payment program
payments.
SECTION 17. Section 294.152, Health and Safety Code, is
amended to read as follows:
Sec. 294.152. ASSESSMENT AND COLLECTION OF MANDATORY
PAYMENTS. The county may collect or, using a competitive bidding
process, contract for the assessment and collection of mandatory
payments authorized under this chapter [(a) Except as provided by
Subsection (b), the county tax assessor-collector shall collect the
mandatory payment authorized under this chapter. The county tax
assessor-collector shall charge and deduct from mandatory payments
collected for the county a fee for collecting the mandatory payment
in an amount determined by the commissioners court of the county,
not to exceed the county tax assessor-collector's usual and
customary charges.
[(b) If determined by the commissioners court to be
appropriate, the commissioners court may contract for the
assessment and collection of mandatory payments in the manner
provided by Title 1, Tax Code, for the assessment and collection of
ad valorem taxes.
[(c) Revenue from a fee charged by a county tax
assessor-collector for collecting the mandatory payment shall be
deposited in the county general fund and, if appropriate, shall be
reported as fees of the county tax assessor-collector].
SECTION 18. Section 295.101(b), Health and Safety Code, is
amended to read as follows:
(b) Not later than the fifth [10th] day before the date of
the hearing required under Subsection (a), the governing body of
the municipality shall publish notice of the hearing in a newspaper
of general circulation in the municipality.
SECTION 19. Section 295.103(c), Health and Safety Code, is
amended to read as follows:
(c) Money deposited to the local provider participation
fund may be used only to:
(1) fund intergovernmental transfers from the
municipality to the state to provide:
(A) the nonfederal share of a Medicaid
supplemental payment program authorized under the state Medicaid
plan, the Texas Healthcare Transformation and Quality Improvement
Program waiver issued under Section 1115 of the federal Social
Security Act (42 U.S.C. Section 1315), or a successor waiver
program authorizing similar Medicaid supplemental payment
programs; or
(B) payments to Medicaid managed care
organizations that are dedicated for payment to hospitals;
(2) subsidize indigent programs;
(3) pay the administrative expenses of the
municipality solely for activities under this chapter;
(4) refund a portion of a mandatory payment collected
in error from a paying hospital; [and]
(5) refund to paying hospitals the proportionate share
of money received by the municipality from the Health and Human
Services Commission that is not used to fund the nonfederal share of
Medicaid supplemental payment program payments; and
(6) refund to paying hospitals the proportionate share
of money that the governing body of the municipality determines
cannot be used to fund the nonfederal share of Medicaid
supplemental payment program payments.
SECTION 20. Section 295.152, Health and Safety Code, is
amended to read as follows:
Sec. 295.152. ASSESSMENT AND COLLECTION OF MANDATORY
PAYMENTS. The municipality may collect or, using a competitive
bidding process, contract for the assessment and collection of
mandatory payments authorized under this chapter [(a) Except as
provided by Subsection (b), the municipal tax assessor-collector
shall collect the mandatory payment authorized under this chapter.
The municipal tax assessor-collector shall charge and deduct from
mandatory payments collected for the municipality a fee for
collecting the mandatory payment in an amount determined by the
governing body of the municipality, not to exceed the municipal tax
assessor-collector's usual and customary charges.
[(b) If determined by the governing body to be appropriate,
the governing body may contract for the assessment and collection
of mandatory payments in the manner provided by Title 1, Tax Code,
for the assessment and collection of ad valorem taxes.
[(c) Revenue from a fee charged by a municipal tax
assessor-collector for collecting the mandatory payment shall be
deposited in the municipal general fund and, if appropriate, shall
be reported as fees of the municipal tax assessor-collector].
SECTION 21. Section 296.101(b), Health and Safety Code, is
amended to read as follows:
(b) Not later than the fifth [10th] day before the date of
the hearing required under Subsection (a), the commissioners court
of the county shall publish notice of the hearing in a newspaper of
general circulation in the county.
SECTION 22. Section 296.103(c), Health and Safety Code, is
amended to read as follows:
(c) Money deposited to the local provider participation
fund may be used only to:
(1) fund intergovernmental transfers from the county
to the state to provide:
(A) the nonfederal share of a Medicaid
supplemental payment program authorized under the state Medicaid
plan, the Texas Healthcare Transformation and Quality Improvement
Program waiver issued under Section 1115 of the federal Social
Security Act (42 U.S.C. Section 1315), or a successor waiver
program authorizing similar Medicaid supplemental payment
programs; or
(B) payments to Medicaid managed care
organizations that are dedicated for payment to hospitals;
(2) subsidize indigent programs;
(3) pay the administrative expenses of the county
solely for activities under this chapter;
(4) refund a portion of a mandatory payment collected
in error from a paying hospital; [and]
(5) refund to paying hospitals the proportionate share
of money received by the county from the Health and Human Services
Commission that is not used to fund the nonfederal share of Medicaid
supplemental payment program payments; and
(6) refund to paying hospitals the proportionate share
of money that the county determines cannot be used to fund the
nonfederal share of Medicaid supplemental payment program
payments.
SECTION 23. Section 296.152, Health and Safety Code, is
amended to read as follows:
Sec. 296.152. ASSESSMENT AND COLLECTION OF MANDATORY
PAYMENTS. The county may collect or, using a competitive bidding
process, contract for the assessment and collection of mandatory
payments authorized under this chapter [(a) Except as provided by
Subsection (b), the county tax assessor-collector shall collect the
mandatory payment authorized under this chapter. The county tax
assessor-collector shall charge and deduct from mandatory payments
collected for the county a fee for collecting the mandatory payment
in an amount determined by the commissioners court of the county,
not to exceed the county tax assessor-collector's usual and
customary charges.
[(b) If determined by the commissioners court to be
appropriate, the commissioners court may contract for the
assessment and collection of mandatory payments in the manner
provided by Title 1, Tax Code, for the assessment and collection of
ad valorem taxes.
[(c) Revenue from a fee charged by a county tax
assessor-collector for collecting the mandatory payment shall be
deposited in the county general fund and, if appropriate, shall be
reported as fees of the county tax assessor-collector].
SECTION 24. Section 297.001(1), Health and Safety Code, is
amended to read as follows:
(1) "Institutional health care provider" means a
nonpublic hospital that provides inpatient hospital services
[licensed under Chapter 241].
SECTION 25. Section 297.101(b), Health and Safety Code, is
amended to read as follows:
(b) Not later than the fifth [10th] day before the date of
the hearing required under Subsection (a), the commissioners court
of the county shall publish notice of the hearing in a newspaper of
general circulation in the county.
SECTION 26. Section 297.103(c), Health and Safety Code, is
amended to read as follows:
(c) Money deposited to the local provider participation
fund may be used only to:
(1) fund intergovernmental transfers from the county
to the state to provide:
(A) the nonfederal share of a Medicaid
supplemental payment program authorized under the state Medicaid
plan, the Texas Healthcare Transformation and Quality Improvement
Program waiver issued under Section 1115 of the federal Social
Security Act (42 U.S.C. Section 1315), or a successor waiver
program authorizing similar Medicaid supplemental payment
programs; or
(B) payments to Medicaid managed care
organizations that are dedicated for payment to hospitals;
(2) subsidize indigent programs;
(3) pay the administrative expenses of the county
solely for activities under this chapter;
(4) refund a portion of a mandatory payment collected
in error from a paying hospital; [and]
(5) refund to paying hospitals the proportionate share
of money received by the county from the Health and Human Services
Commission that is not used to fund the nonfederal share of Medicaid
supplemental payment program payments; and
(6) refund to paying hospitals the proportionate share
of money that the county determines cannot be used to fund the
nonfederal share of Medicaid supplemental payment program
payments.
SECTION 27. Section 297.152, Health and Safety Code, is
amended to read as follows:
Sec. 297.152. ASSESSMENT AND COLLECTION OF MANDATORY
PAYMENTS. The county may collect or, using a competitive bidding
process, contract for the assessment and collection of mandatory
payments authorized under this chapter [(a) Except as provided by
Subsection (b), the county tax assessor-collector shall collect the
mandatory payment authorized under this chapter. The county tax
assessor-collector shall charge and deduct from mandatory payments
collected for the county a fee for collecting the mandatory payment
in an amount determined by the commissioners court of the county,
not to exceed the county tax assessor-collector's usual and
customary charges.
[(b) If determined by the commissioners court to be
appropriate, the commissioners court may contract for the
assessment and collection of mandatory payments in the manner
provided by Title 1, Tax Code, for the assessment and collection of
ad valorem taxes.
[(c) Revenue from a fee charged by a county tax
assessor-collector for collecting the mandatory payment shall be
deposited in the county general fund and, if appropriate, shall be
reported as fees of the county tax assessor-collector].
SECTION 28. Subtitle D, Title 4, Health and Safety Code, is
amended by adding Chapter 298B to read as follows:
CHAPTER 298B. TARRANT COUNTY HOSPITAL DISTRICT HEALTH CARE
PROVIDER PARTICIPATION PROGRAM
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 298B.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of hospital managers of
the district.
(2) "District" means the Tarrant County Hospital
District.
(3) "Institutional health care provider" means a
nonpublic hospital located in the district that provides inpatient
hospital services.
(4) "Paying provider" means an institutional health
care provider required to make a mandatory payment under this
chapter.
(5) "Program" means the health care provider
participation program authorized by this chapter.
Sec. 298B.002. APPLICABILITY. This chapter applies only to
the Tarrant County Hospital District.
Sec. 298B.003. HEALTH CARE PROVIDER PARTICIPATION PROGRAM;
PARTICIPATION IN PROGRAM. The board may authorize the district to
participate in a health care provider participation program on the
affirmative vote of a majority of the board, subject to the
provisions of this chapter.
Sec. 298B.004. EXPIRATION OF AUTHORITY. (a) Subject to
Sections 298B.153(d) and 298B.154, the authority of the district to
administer and operate a program under this chapter expires
December 31, 2019.
(b) Subsection (a) does not affect the authority of the
district to require and collect a mandatory payment under Section
298B.154 after December 31, 2019, if necessary.
SUBCHAPTER B. POWERS AND DUTIES OF BOARD
Sec. 298B.051. LIMITATION ON AUTHORITY TO REQUIRE MANDATORY
PAYMENT. The board may require a mandatory payment authorized
under this chapter by an institutional health care provider in the
district only in the manner provided by this chapter.
Sec. 298B.052. RULES AND PROCEDURES. The board may adopt
rules relating to the administration of the program, including
collection of the mandatory payments, expenditures, audits, and any
other administrative aspects of the program.
Sec. 298B.053. INSTITUTIONAL HEALTH CARE PROVIDER
REPORTING. If the board authorizes the district to participate in a
program under this chapter, the board shall require each
institutional health care provider to submit to the district a copy
of any financial and utilization data required by and reported to
the Department of State Health Services under Sections 311.032 and
311.033 and any rules adopted by the executive commissioner of the
Health and Human Services Commission to implement those sections.
SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS
Sec. 298B.101. HEARING. (a) In each year that the board
authorizes a program under this chapter, the board shall hold a
public hearing on the amounts of any mandatory payments that the
board intends to require during the year and how the revenue derived
from those payments is to be spent.
(b) Not later than the fifth day before the date of the
hearing required under Subsection (a), the board shall publish
notice of the hearing in a newspaper of general circulation in the
district and provide written notice of the hearing to each
institutional health care provider in the district.
Sec. 298B.102. DEPOSITORY. (a) If the board requires a
mandatory payment authorized under this chapter, the board shall
designate one or more banks as a depository for the district's local
provider participation fund.
(b) All funds collected under this chapter shall be secured
in the manner provided for securing other district funds.
Sec. 298B.103. LOCAL PROVIDER PARTICIPATION FUND;
AUTHORIZED USES OF MONEY. (a) If the district requires a
mandatory payment authorized under this chapter, the district shall
create a local provider participation fund.
(b) The local provider participation fund consists of:
(1) all revenue received by the district attributable
to mandatory payments authorized under this chapter;
(2) money received from the Health and Human Services
Commission as a refund of an intergovernmental transfer under the
program, provided that the intergovernmental transfer does not
receive a federal matching payment; and
(3) the earnings of the fund.
(c) Money deposited to the local provider participation
fund of the district may be used only to:
(1) fund intergovernmental transfers from the
district to the state to provide the nonfederal share of Medicaid
payments for:
(A) uncompensated care payments to nonpublic
hospitals affiliated with the district, if those payments are
authorized under the Texas Healthcare Transformation and Quality
Improvement Program waiver issued under Section 1115 of the federal
Social Security Act (42 U.S.C. Section 1315);
(B) uniform rate enhancements for nonpublic
hospitals in the Medicaid managed care service area in which the
district is located;
(C) payments available under another waiver
program authorizing payments that are substantially similar to
Medicaid payments to nonpublic hospitals described by Paragraph (A)
or (B); or
(D) any reimbursement to nonpublic hospitals for
which federal matching funds are available;
(2) subject to Section 298B.151(d), pay the
administrative expenses of the district in administering the
program, including collateralization of deposits;
(3) refund a mandatory payment collected in error from
a paying provider;
(4) refund to paying providers a proportionate share
of the money that the district:
(A) receives from the Health and Human Services
Commission that is not used to fund the nonfederal share of Medicaid
supplemental payment program payments; or
(B) determines cannot be used to fund the
nonfederal share of Medicaid supplemental payment program
payments;
(5) transfer funds to the Health and Human Services
Commission if the district is legally required to transfer the
funds to address a disallowance of federal matching funds with
respect to programs for which the district made intergovernmental
transfers described by Subdivision (1); and
(6) reimburse the district if the district is required
by the rules governing the uniform rate enhancement program
described by Subdivision (1)(B) to incur an expense or forego
Medicaid reimbursements from the state because the balance of the
local provider participation fund is not sufficient to fund that
rate enhancement program.
(d) Money in the local provider participation fund may not
be commingled with other district funds.
(e) Notwithstanding any other provision of this chapter,
with respect to an intergovernmental transfer of funds described by
Subsection (c)(1) made by the district, any funds received by the
state, district, or other entity as a result of that transfer may
not be used by the state, district, or any other entity to:
(1) expand Medicaid eligibility under the Patient
Protection and Affordable Care Act (Pub. L. No. 111-148) as amended
by the Health Care and Education Reconciliation Act of 2010 (Pub. L.
No. 111-152); or
(2) fund the nonfederal share of payments to nonpublic
hospitals available through the Medicaid disproportionate share
hospital program or the delivery system reform incentive payment
program.
SUBCHAPTER D. MANDATORY PAYMENTS
Sec. 298B.151. MANDATORY PAYMENTS BASED ON PAYING PROVIDER
NET PATIENT REVENUE. (a) Except as provided by Subsection (e), if
the board authorizes a health care provider participation program
under this chapter, the board may require an annual mandatory
payment to be assessed on the net patient revenue of each
institutional health care provider located in the district. The
board may provide for the mandatory payment to be assessed
quarterly. In the first year in which the mandatory payment is
required, the mandatory payment is assessed on the net patient
revenue of an institutional health care provider as determined by
the data reported to the Department of State Health Services under
Sections 311.032 and 311.033 in the most recent fiscal year for
which that data was reported. If the institutional health care
provider did not report any data under those sections, the
provider's net patient revenue is the amount of that revenue as
contained in the provider's Medicare cost report submitted for the
previous fiscal year or for the closest subsequent fiscal year for
which the provider submitted the Medicare cost report. If the
mandatory payment is required, the district shall update the amount
of the mandatory payment on an annual basis.
(b) The amount of a mandatory payment authorized under this
chapter must be uniformly proportionate with the amount of net
patient revenue generated by each paying provider in the district
as permitted under federal law. A health care provider
participation program authorized under this chapter may not hold
harmless any institutional health care provider, as required under
42 U.S.C. Section 1396b(w).
(c) If the board requires a mandatory payment authorized
under this chapter, the board shall set the amount of the mandatory
payment, subject to the limitations of this chapter. The aggregate
amount of the mandatory payments required of all paying providers
in the district may not exceed six percent of the aggregate net
patient revenue from hospital services provided by all paying
providers in the district.
(d) Subject to Subsection (c), if the board requires a
mandatory payment authorized under this chapter, the board shall
set the mandatory payments in amounts that in the aggregate will
generate sufficient revenue to cover the administrative expenses of
the district for activities under this chapter and to fund an
intergovernmental transfer described by Section 298B.103(c)(1).
The annual amount of revenue from mandatory payments that shall be
paid for administrative expenses by the district is $150,000, plus
the cost of collateralization of deposits, regardless of actual
expenses.
(e) A paying provider may not add a mandatory payment
required under this section as a surcharge to a patient.
(f) A mandatory payment assessed under this chapter is not a
tax for hospital purposes for purposes of Section 4, Article IX,
Texas Constitution, or Section 281.045.
Sec. 298B.152. ASSESSMENT AND COLLECTION OF MANDATORY
PAYMENTS. (a) The district may designate an official of the
district or contract with another person to assess and collect the
mandatory payments authorized under this chapter.
(b) The person charged by the district with the assessment
and collection of mandatory payments shall charge and deduct from
the mandatory payments collected for the district a collection fee
in an amount not to exceed the person's usual and customary charges
for like services.
(c) If the person charged with the assessment and collection
of mandatory payments is an official of the district, any revenue
from a collection fee charged under Subsection (b) shall be
deposited in the district general fund and, if appropriate, shall
be reported as fees of the district.
Sec. 298B.153. PURPOSE; CORRECTION OF INVALID PROVISION OR
PROCEDURE; LIMITATION OF AUTHORITY. (a) The purpose of this
chapter is to authorize the district to establish a program to
enable the district to collect mandatory payments from
institutional health care providers to fund the nonfederal share of
a Medicaid supplemental payment program or the Medicaid managed
care rate enhancements for nonpublic hospitals to support the
provision of health care by institutional health care providers to
district residents in need of health care.
(b) This chapter does not authorize the district to collect
mandatory payments for the purpose of raising general revenue or
any amount in excess of the amount reasonably necessary to fund the
nonfederal share of a Medicaid supplemental payment program or
Medicaid managed care rate enhancements for nonpublic hospitals and
to cover the administrative expenses of the district associated
with activities under this chapter.
(c) To the extent any provision or procedure under this
chapter causes a mandatory payment authorized under this chapter to
be ineligible for federal matching funds, the board may provide by
rule for an alternative provision or procedure that conforms to the
requirements of the federal Centers for Medicare and Medicaid
Services. A rule adopted under this section may not create, impose,
or materially expand the legal or financial liability or
responsibility of the district or an institutional health care
provider in the district beyond the provisions of this chapter.
This section does not require the board to adopt a rule.
(d) The district may only assess and collect a mandatory
payment authorized under this chapter if a waiver program, uniform
rate enhancement, or reimbursement described by Section
298B.103(c)(1) is available to the district.
Sec. 298B.154. FEDERAL DISALLOWANCE. Notwithstanding any
other provision of this chapter, if the Centers for Medicare and
Medicaid Services issues a disallowance of federal matching funds
for a purpose for which intergovernmental transfers described by
Section 298B.103(c)(1) were made and the Health and Human Services
Commission demands repayment from the district of federal funds
paid to the district for that purpose, the district may require and
collect mandatory payments from each paying provider that received
those federal funds in an amount sufficient to satisfy the
repayment demand made by the commission. The percentage limitation
prescribed by Section 298B.151(c) does not apply to a mandatory
payment required under this section.
SECTION 29. As soon as practicable after the expiration of
the authority of the Tarrant County Hospital District to administer
and operate a health care provider participation program under
Chapter 298B, Health and Safety Code, as added by this Act, the
board of hospital managers of the Tarrant County Hospital District
shall transfer to each institutional health care provider in the
district that provider's proportionate share of any remaining funds
in any local provider participation fund created by the district
under Section 298B.103, Health and Safety Code, as added by this
Act.
SECTION 30. If before implementing any provision of Chapter
298B, Health and Safety Code, as added by this Act, a state agency
determines that a waiver or authorization from a federal agency is
necessary for implementation of that provision, the agency affected
by the provision shall request the waiver or authorization and may
delay implementing that provision until the waiver or authorization
is granted.
SECTION 31. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2017.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1462 passed the Senate on
May 2, 2017, by the following vote: Yeas 28, Nays 3;
May 25, 2017, Senate refused to concur in House amendments and
requested appointment of Conference Committee; May 26, 2017, House
granted request of the Senate; May 28, 2017, Senate adopted
Conference Committee Report by the following vote: Yeas 26,
Nays 4.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1462 passed the House, with
amendments, on May 22, 2017, by the following vote: Yeas 123,
Nays 22, one present not voting; May 26, 2017, House granted
request of the Senate for appointment of Conference Committee;
May 28, 2017, House adopted Conference Committee Report by the
following vote: Yeas 134, Nays 12, one present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor