Texas 2019 - 86th Regular

Texas Senate Bill SB1621 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 1621
	1	+	By: Kolkhorst, et al. S.B. No. 1621
	2	+	(Price)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5		-	relating to certain rural medical ~~facilities; requiring a license;~~
6		-	authorizing fees ~~and taxes~~.
	7	+	relating to creating a license for certain rural medical
	8	+	facilities; requiring a license; authorizing fees.
7	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	10		SECTION 1. Chapter 241, Health and Safety Code, is amended
9	11		by adding Subchapter K to read as follows:
10	12		SUBCHAPTER K. LIMITED SERVICES RURAL HOSPITAL
11	13		Sec. 241.301. DEFINITION. In this subchapter, "limited
12	14		services rural hospital" means a general or special hospital that
13	15		is or was licensed under this chapter and that:
14	16		(1) is:
15	17		(A) located in a rural area, as defined by:
16	18		(i) commission rule; or
17	19		(ii) 42 U.S.C. Section 1395ww(d)(2)(D); or
18	20		(B) designated by the Centers for Medicare and
19	21		Medicaid Services as a critical access hospital, rural referral
20	22		center, or sole community hospital; and
21	23		(2) otherwise meets the requirements to be designated
22	24		as a limited services rural hospital or a similarly designated
23	25		hospital under federal law for purposes of a payment program
24	26		described by Section 241.302(a)(1).
25	27		Sec. 241.302. LICENSE REQUIRED. (a) A person may not
26	28		establish, conduct, or maintain a limited services rural hospital
27	29		unless:
28	30		(1) the United States Congress passes a bill creating
29	31		a payment program specifically for limited services rural hospitals
30	32		or similarly designated hospitals that becomes law; and
31	33		(2) the commission issues a license to the person to
32	34		establish, conduct, or maintain a limited services rural hospital
33	35		under this subchapter.
34	36		(b) If the United States Congress enacts a bill described by
35	37		Subsection (a)(1) that becomes law, the executive commissioner
36	38		shall adopt rules:
37	39		(1) establishing minimum standards for the
38	40		facilities; and
39	41		(2) implementing this section.
40	42		(c) The standards adopted under Subsection (b) must be at
41	43		least as stringent as the standards established in the law
42	44		described by Subsection (a) for eligibility to qualify for a
43	45		payment program established by the law.
44	46		(d) An applicant for a license under this section must:
45	47		(1) submit an application for the license to the
46	48		commission in a form and manner prescribed by the commission; and
47	49		(2) pay any required fee.
48	50		(e) The commission shall issue a license to act as a limited
49	51		services rural hospital under this subchapter if the applicant
50	52		complies with the rules and standards adopted under this section.
51	53		(f) The commission by order may waive or modify the
52	54		requirement of a particular provision of this chapter or a standard
53	55		adopted under this section if the commission determines that the
54	56		waiver or modification will facilitate the creation or operation of
55	57		the facility and that the waiver or modification is in the best
56	58		interests of the individuals served or to be served by the facility.
57	59		Sections 241.026(d) and (e) apply to a waiver or modification under
58	60		this section for a limited services rural hospital in the same
59	61		manner as the subsections apply to a waiver or modification for a
60	62		hospital.
61	63		(g) A provision of this chapter related to the enforcement
62	64		authority of the commission applies to a limited services rural
63	65		hospital.
64	66		Sec. 241.303. LICENSING FEE. (a) The executive
65	67		commissioner by rule shall establish and the commission shall
66	68		collect a fee for issuing and renewing a license under this
67	69		subchapter that is in an amount reasonable and necessary to cover
68	70		the costs of administering and enforcing this subchapter.
69	71		(b) All fees collected under this section shall be deposited
70	72		in the state treasury to the credit of the commission to administer
71	73		and enforce this subchapter.
72		-	SECTION 2. Chapter 531, Government Code, is amended by
73		-	adding Subchapter G to read as follows:
74		-	SUBCHAPTER G. RURAL HOSPITALS
75		-	Sec. 531.201. STRATEGIC PLAN; REPORT. (a) The commission
76		-	shall develop and implement a strategic plan to ensure that the
77		-	citizens of this state residing in rural areas have access to
78		-	hospital services.
79		-	(b) The strategic plan must include:
80		-	(1) a proposal for using at least one of the following
81		-	methods to ensure access to hospital services in the rural areas of
82		-	this state:
83		-	(A) an enhanced cost reimbursement methodology
84		-	for the payment of rural hospitals participating in the Medicaid
85		-	managed care program in conjunction with a supplemental payment
86		-	program for rural hospitals to cover costs incurred in providing
87		-	services to recipients;
88		-	(B) a hospital rate enhancement program that
89		-	applies only to rural hospitals;
90		-	(C) a reduction of punitive actions under the
91		-	Medicaid program that require reimbursement for Medicaid payments
92		-	made to the provider, if the provider is a rural hospital, a
93		-	reduction of the frequency of payment reductions under the Medicaid
94		-	program made to rural hospitals, and an enhancement of payments
95		-	made under merit-based programs or similar programs for rural
96		-	hospitals;
97		-	(D) a reduction of state regulatory-related
98		-	costs related to the commission's review of rural hospitals; or
99		-	(E) in accordance with rules adopted by the
100		-	Centers for Medicare and Medicaid Services, the establishment of a
101		-	minimum fee schedule that applies to payments made by managed care
102		-	organizations to rural hospitals; and
103		-	(2) target dates for achieving goals related to the
104		-	proposal described by Subdivision (1).
105		-	(c) Not later than January 1, 2020, the commission shall
106		-	submit the strategic plan developed under Subsection (b) to the
107		-	Legislative Budget Board for review and comment. The commission
108		-	may not begin implementation of the proposal contained in the
109		-	strategic plan until the strategic plan is approved by the
110		-	Legislative Budget Board.
111		-	(d) Not later than November 1 of each even-numbered year,
112		-	the commission shall submit a report regarding the commission's
113		-	development and implementation of the strategic plan described by
114		-	Subsection (b) to:
115		-	(1) the legislature;
116		-	(2) the governor; and
117		-	(3) the Legislative Budget Board.
118		-	Sec. 531.202. ADVISORY COMMITTEE ON RURAL HOSPITALS.
119		-	(a) The commission shall establish the Rural Hospital Advisory
120		-	Committee, either as another advisory committee or as a
121		-	subcommittee of the Hospital Payment Advisory Committee, to advise
122		-	the commission on issues relating specifically to rural hospitals.
123		-	(b) The Rural Hospital Advisory Committee is composed of
124		-	interested persons appointed by the executive commissioner.
125		-	Section 2110.002 does not apply to the advisory committee.
126		-	(c) A member of the advisory committee serves without
127		-	compensation.
128		-	Sec. 531.203. COLLABORATION WITH OFFICE OF RURAL AFFAIRS.
129		-	The commission shall collaborate with the Office of Rural Affairs
130		-	to ensure that this state is pursuing to the fullest extent possible
131		-	federal grants, funding opportunities, and support programs
132		-	available to rural hospitals as administered by the Health
133		-	Resources and Services Administration and the Office of Minority
134		-	Health in the United States Department of Health and Human
135		-	Services.
136		-	SECTION 3. The heading to Subchapter F, Chapter 1061,
137		-	Special District Local Laws Code, is amended to read as follows:
138		-	SUBCHAPTER F. AD VALOREM TAXES
139		-	SECTION 4. Chapter 1061, Special District Local Laws Code,
140		-	is amended by adding Subchapter G to read as follows:
	74	+	SECTION 2. This Act takes effect September 1, 2019.
	75	+	COMMITTEE AMENDMENT NO. 1
	76	+	Amend S.B. No. 1621
	77	+	by adding the following appropriately
	78	+	numbered SECTIONS to the bill and renumbering subsequent SECTIONS
	79	+	of the bill accordingly:
	80	+	SECTION ____. Chapter 1061, Special District Local Laws
	81	+	Code, is amended by adding Subchapter G to read as follows:
141	82		SUBCHAPTER G. SALES AND USE TAX
142		-	Sec. 1061.301. TAX AUTHORIZED. (a) The district may
143		-	~~adopt,~~ change the rate of, or abolish a sales and use tax at an
144		-	~~election~~ held in the district.
	83	+	Sec. 1061.301. TAX AUTHORIZED. (a) The district may adopt,
	84	+	change the rate of, or abolish a sales and use tax at an election
	85	+	held in the district.
145	86		(b) The district may not adopt a tax under this subchapter
146	87		or increase the rate of the tax if as a result of the adoption of the
147	88		tax or the tax increase the combined rate of all sales and use taxes
148	89		imposed by the district and all other political subdivisions of
149	90		this state having territory in the district would exceed two
150	91		percent in any location in the district.
151	92		Sec. 1061.302. APPLICABILITY OF OTHER LAW. Except to the
152	93		extent that a provision of this subchapter applies, Chapter 323,
153	94		Tax Code, applies to a tax authorized by this subchapter in the same
154	95		manner as that chapter applies to the tax authorized by that
155	96		chapter.
156	97		Sec. 1061.303. TAX RATE; CHANGE IN RATE. (a) The district
157	98		may impose a tax authorized by this subchapter in increments of
158	99		one-eighth of one percent, with a minimum rate of one-eighth of one
159	100		percent and a maximum rate of two percent.
160	101		(b) The district may increase the rate of a tax authorized
161	102		by this subchapter to a maximum of two percent or decrease the rate
162	103		of the tax to a minimum of one-eighth of one percent if the change is
163	104		approved by a majority of the voters of the district at an election
164	105		called for that purpose.
165	106		Sec. 1061.304. ELECTION PROCEDURE. An election to adopt,
166	107		change the rate of, or abolish a tax authorized by this subchapter
167	108		is called by the adoption of an order of the board. The board may
168	109		call an election on its own motion and shall call an election if a
169	110		number of qualified voters in the district equal to at least five
170	111		percent of the number of registered voters in the district
171	112		petitions the board to call the election.
172	113		Sec. 1061.305. ELECTION IN OTHER TAXING AUTHORITY. (a) In
173	114		this section, "taxing authority" means any entity authorized to
174	115		impose a local sales and use tax.
175	116		(b) If the district is included within the boundaries of
176	117		another taxing authority and the adoption or increase in the rate of
177	118		a tax under this subchapter would result in a combined tax rate by
178	119		the district and other political subdivisions of this state of more
179	120		than two percent at any location in the district, an election to
180	121		approve or increase the rate of the tax has no effect unless:
181	122		(1) one or more of the other taxing authorities holds
182	123		an election in accordance with the law governing that authority on
183	124		the same date as the election under this subchapter to reduce the
184	125		tax rate of that authority to a rate that will result in a combined
185	126		tax rate by the district and other political subdivisions of not
186	127		more than two percent at any location in the district; and
187	128		(2) the combined tax rate is reduced to not more than
188	129		two percent as a result of that election.
189	130		(c) This section does not permit a taxing authority to
190	131		impose taxes at differential tax rates within the territory of the
191	132		authority.
192	133		Sec. 1061.306. TAX EFFECTIVE DATE. (a) The adoption,
193	134		change in the rate of, or abolition of a tax under this subchapter
194	135		takes effect on the first day of the first calendar quarter
195	136		occurring after the expiration of the first complete calendar
196	137		quarter occurring after the date on which the comptroller receives
197	138		notice of the results of an election to adopt, change the rate of,
198	139		or abolish the tax.
199	140		(b) If the comptroller determines that an effective date
200	141		provided by Subsection (a) will occur before the comptroller can
201	142		reasonably take the action required to begin collecting the tax or
202	143		to implement the change in the rate of the tax or the abolition of
203	144		the tax, the effective date may be extended by the comptroller until
204	145		the first day of the next calendar quarter.
205	146		Sec. 1061.307. USE OF TAX REVENUE. Revenue from a tax
206	147		imposed under this subchapter may be used by the district for any
207	148		purpose of the district authorized by law.
208		-	SECTION 5. Section 1061.151(b), Special District Local ~~Laws~~
209		-	Code, is amended to read as follows:
	149	+	SECTION ____. Section 1061.151(b), Special District Local
	150	+	Laws Code, is amended to read as follows:
210	151		(b) The proposed budget must contain a complete financial
211	152		statement of:
212	153		(1) the outstanding obligations of the district;
213	154		(2) the cash on hand in each district fund;
214	155		(3) the money received by the district from all
215	156		sources during the previous year;
216	157		(4) the money available to the district from all
217	158		sources during the ensuing year;
218	159		(5) the balances expected at the end of the year in
219	160		which the budget is being prepared;
220	161		(6) the estimated revenue and balances available to
221	162		cover the proposed budget;
222	163		(7) the estimated ad valorem tax rate required; and
223	164		(8) the proposed expenditures and disbursements and
224	165		the estimated receipts and collections for the following fiscal
225	166		year.
226		-	SECTION 6. Section 1088.104, Special District Local Laws
227		-	Code, is amended by amending Subsection (c) and adding Subsection
228		-	(d) to read as follows:
229		-	(c) The hospital system may include:
230		-	(1) facilities for domiciliary care of the sick,
231		-	injured, or geriatric;
232		-	(2) outpatient clinics;
233		-	(3) dispensaries;
234		-	(4) convalescent home facilities;
235		-	(5) necessary nurses;
236		-	(6) domiciliaries and training centers;
237		-	(7) blood banks;
238		-	(8) community mental health centers;
239		-	(9) research centers or laboratories; and
240		-	(10) any other facilities the board considers
241		-	necessary for medical care, [and] hospital care, and public safety
242		-	and health.
243		-	(d) A facility for public safety and health described by
244		-	Subsection (c)(10) may only be:
245		-	(1) constructed by the district using private money;
246		-	and
247		-	(2) used by the district, or any governmental entity
248		-	to which the district leases the facility, for public safety and
249		-	health purposes.
250		-	SECTION 7. Section 26.012(1), Tax Code, is amended to read
251		-	as follows:
	167	+	SECTION ____. The heading to Subchapter F, Chapter 1061,
	168	+	Special District Local Laws Code, is amended to read as follows:
	169	+	SUBCHAPTER F. AD VALOREM TAXES
	170	+	SECTION ____. Section 26.012(1), Tax Code, is amended to
	171	+	read as follows:
252	172		(1) "Additional sales and use tax" means an additional
253	173		sales and use tax imposed by:
254	174		(A) a city under Section 321.101(b);
255	175		(B) a county under Chapter 323; or
256	176		(C) a hospital district, other than a hospital
257	177		district:
258	178		(i) created on or after September 1, 2001,
259	179		that:
260	180		(a) [(i)] imposes the sales and use
261	181		tax under Subchapter I, Chapter 286, Health and Safety Code; or
262	182		(b) [(ii)] imposes the sales and use
263	183		tax under Subchapter L, Chapter 285, Health and Safety Code; or
264	184		(ii) that imposes the sales and use tax
265	185		under Subchapter G, Chapter 1061, Special District Local Laws Code.
266		-	SECTION 8. This Act takes effect September 1, 2019.
267		-	______________________________ ______________________________
268		-	President of the Senate Speaker of the House
269		-	I hereby certify that S.B. No. 1621 passed the Senate on
270		-	April 11, 2019, by the following vote: Yeas 31, Nays 0; and that
271		-	the Senate concurred in House amendments on May 24, 2019, by the
272		-	following vote: Yeas 28, Nays 3.
273		-	______________________________
274		-	Secretary of the Senate
275		-	I hereby certify that S.B. No. 1621 passed the House, with
276		-	amendments, on May 21, 2019, by the following vote: Yeas 140,
277		-	Nays 6, one present not voting.
278		-	______________________________
279		-	Chief Clerk of the House
280		-	Approved:
281		-	______________________________
282		-	Date
283		-	______________________________
284		-	Governor
	186	+	Price