Texas 2019 - 86th Regular

Texas Senate Bill SB1622 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Kolkhorst, et al. S.B. No. 1622
2		-	(Price)
	1	+	By: Kolkhorst, Perry, Seliger S.B. No. 1622
3	2
4	3
5	4		A BILL TO BE ENTITLED
6	5		AN ACT
7	6		relating to rural hospitals and similar facilities; requiring a
8	7		license; authorizing fees.
9	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	9		SECTION 1. Chapter 531, Government Code, is amended by
11	10		adding Subchapter G to read as follows:
12	11		SUBCHAPTER G. RURAL HOSPITALS
13	12		Sec. 531.201. STRATEGIC PLAN; REPORT. (a) The commission
14	13		shall develop and implement a strategic plan to ensure that the
15	14		citizens of this state residing in rural areas have access to
16	15		hospital services.
17	16		(b) The strategic plan must include:
18	17		(1) a proposal for using at least one of the following
19	18		methods to ensure access to hospital services in the rural areas of
20	19		this state:
21	20		(A) an enhanced cost reimbursement methodology
22	21		for the payment of rural hospitals participating in the Medicaid
23	22		managed care program in conjunction with a supplemental payment
24	23		program for rural hospitals to cover costs incurred in providing
25	24		services to recipients;
26	25		(B) a hospital rate enhancement program that
27	26		applies only to rural hospitals;
28	27		(C) a reduction of punitive actions under the
29	28		Medicaid program that require reimbursement for Medicaid payments
30	29		made to the provider, if the provider is a rural hospital, a
31	30		reduction of the frequency of payment reductions under the Medicaid
32	31		program made to rural hospitals, and an enhancement of payments
33	32		made under merit-based programs or similar programs for rural
34	33		hospitals;
35	34		(D) a reduction of state regulatory-related
36	35		costs related to the commission's review of rural hospitals; or
37	36		(E) in accordance with rules adopted by the
38	37		Centers for Medicare and Medicaid Services, the establishment of a
39	38		minimum fee schedule that applies to payments made by managed care
40	39		organizations to rural hospitals; and
41	40		(2) target dates for achieving goals related to the
42	41		proposal described by Subdivision (1).
43	42		(c) Not later than January 1, 2020, the commission shall
44	43		submit the strategic plan developed under Subsection (b) to the
45	44		Legislative Budget Board for review and comment. The commission
46	45		may not begin implementation of the proposal contained in the
47	46		strategic plan until the strategic plan is approved by the
48	47		Legislative Budget Board.
49	48		(d) Not later than November 1 of each even-numbered year,
50	49		the commission shall submit a report regarding the commission's
51	50		development and implementation of the strategic plan described by
52	51		Subsection (b) to:
53	52		(1) the legislature;
54	53		(2) the governor; and
55	54		(3) the Legislative Budget Board.
56	55		Sec. 531.202. ADVISORY COMMITTEE ON RURAL HOSPITALS.
57	56		(a) The commission shall establish the Rural Hospital Advisory
58	57		Committee, either as another advisory committee or as a
59	58		subcommittee of the Hospital Payment Advisory Committee, to advise
60	59		the commission on issues relating specifically to rural hospitals.
61	60		(b) The Rural Hospital Advisory Committee is composed of
62	61		interested persons appointed by the executive commissioner.
63	62		Section 2110.002 does not apply to the advisory committee.
64	63		(c) A member of the advisory committee serves without
65	64		compensation.
66	65		Sec. 531.203. COLLABORATION WITH OFFICE OF RURAL AFFAIRS.
67	66		The commission shall collaborate with the Office of Rural Affairs
68	67		to ensure that this state is pursuing to the fullest extent possible
69	68		federal grants, funding opportunities, and support programs
70	69		available to rural hospitals as administered by the Health
71	70		Resources and Services Administration and the Office of Minority
72	71		Health in the United States Department of Health and Human
73	72		Services.
74	73		SECTION 2. Chapter 241, Health and Safety Code, is amended
75	74		by adding Subchapter K to read as follows:
76	75		SUBCHAPTER K. LIMITED SERVICES RURAL HOSPITAL
77	76		Sec. 241.301. DEFINITION. In this subchapter, "limited
78	77		services rural hospital" means a general or special hospital that
79	78		is or was licensed under this chapter and that:
80	79		(1) is:
81	80		(A) located in a rural area, as defined by:
82	81		(i) commission rule; or
83	82		(ii) 42 U.S.C. Section 1395ww(d)(2)(D); or
84	83		(B) designated by the Centers for Medicare and
85	84		Medicaid Services as a critical access hospital, rural referral
86	85		center, or sole community hospital; and
87	86		(2) otherwise meets the requirements to be designated
88	87		as a limited services rural hospital or a similarly designated
89	88		hospital under federal law for purposes of a payment program
90	89		described by Section 241.302(a)(1).
91	90		Sec. 241.302. LICENSE REQUIRED. (a) A person may not
92	91		establish, conduct, or maintain a limited services rural hospital
93	92		unless:
94	93		(1) the United States Congress passes a bill creating
95	94		a payment program specifically for limited services rural hospitals
96	95		or similarly designated hospitals that becomes law; and
97	96		(2) the commission issues a license to the person to
98	97		establish, conduct, or maintain a limited services rural hospital
99	98		under this subchapter.
100	99		(b) If the United States Congress enacts a bill described by
101	100		Subsection (a)(1) that becomes law, the executive commissioner
102	101		shall adopt rules:
103	102		(1) establishing minimum standards for the
104	103		facilities; and
105	104		(2) implementing this section.
106	105		(c) The standards adopted under Subsection (b) must be at
107	106		least as stringent as the standards established in the law
108	107		described by Subsection (a) for eligibility to qualify for a
109	108		payment program established by the law.
110	109		(d) An applicant for a license under this section must:
111	110		(1) submit an application for the license to the
112	111		commission in a form and manner prescribed by the commission; and
113	112		(2) pay any required fee.
114	113		(e) The commission shall issue a license to act as a limited
115	114		services rural hospital under this subchapter if the applicant
116	115		complies with the rules and standards adopted under this section.
117	116		(f) The commission by order may waive or modify the
118	117		requirement of a particular provision of this chapter or a standard
119	118		adopted under this section if the commission determines that the
120	119		waiver or modification will facilitate the creation or operation of
121	120		the facility and that the waiver or modification is in the best
122	121		interests of the individuals served or to be served by the facility.
123	122		Sections 241.026(d) and (e) apply to a waiver or modification under
124	123		this section for a limited services rural hospital in the same
125	124		manner as the subsections apply to a waiver or modification for a
126	125		hospital.
127	126		(g) A provision of this chapter related to the enforcement
128	127		authority of the commission applies to a limited services rural
129	128		hospital.
130	129		Sec. 241.303. LICENSING FEE. (a) The executive
131	130		commissioner by rule shall establish and the commission shall
132	131		collect a fee for issuing and renewing a license under this
133	132		subchapter that is in an amount reasonable and necessary to cover
134	133		the costs of administering and enforcing this subchapter.
135	134		(b) All fees collected under this section shall be deposited
136	135		in the state treasury to the credit of the commission to administer
137	136		and enforce this subchapter.
138	137		SECTION 3. This Act takes effect September 1, 2019.
139		-	COMMITTEE AMENDMENT NO. 1
140		-	Amend S.B. No. 1622 by adding the following appropriately
141		-	numbered SECTIONS to the bill and renumbering subsequent SECTIONS
142		-	of the bill accordingly:
143		-	SECTION ____. Chapter 1061, Special District Local Laws
144		-	Code, is amended by adding Subchapter G to read as follows:
145		-	SUBCHAPTER G. SALES AND USE TAX
146		-	Sec. 1061.301. TAX AUTHORIZED. (a) The district may adopt,
147		-	change the rate of, or abolish a sales and use tax at an election
148		-	held in the district.
149		-	(b) The district may not adopt a tax under this subchapter
150		-	or increase the rate of the tax if as a result of the adoption of the
151		-	tax or the tax increase the combined rate of all sales and use taxes
152		-	imposed by the district and all other political subdivisions of
153		-	this state having territory in the district would exceed two
154		-	percent in any location in the district.
155		-	Sec. 1061.302. APPLICABILITY OF OTHER LAW. Except to the
156		-	extent that a provision of this subchapter applies, Chapter 323,
157		-	Tax Code, applies to a tax authorized by this subchapter in the same
158		-	manner as that chapter applies to the tax authorized by that
159		-	chapter.
160		-	Sec. 1061.303. TAX RATE; CHANGE IN RATE. (a) The district
161		-	may impose a tax authorized by this subchapter in increments of
162		-	one-eighth of one percent, with a minimum rate of one-eighth of one
163		-	percent and a maximum rate of two percent.
164		-	(b) The district may increase the rate of a tax authorized
165		-	by this subchapter to a maximum of two percent or decrease the rate
166		-	of the tax to a minimum of one-eighth of one percent if the change is
167		-	approved by a majority of the voters of the district at an election
168		-	called for that purpose.
169		-	Sec. 1061.304. ELECTION PROCEDURE. An election to adopt,
170		-	change the rate of, or abolish a tax authorized by this subchapter
171		-	is called by the adoption of an order of the board. The board may
172		-	call an election on its own motion and shall call an election if a
173		-	number of qualified voters in the district equal to at least five
174		-	percent of the number of registered voters in the district
175		-	petitions the board to call the election.
176		-	Sec. 1061.305. ELECTION IN OTHER TAXING AUTHORITY. (a) In
177		-	this section, "taxing authority" means any entity authorized to
178		-	impose a local sales and use tax.
179		-	(b) If the district is included within the boundaries of
180		-	another taxing authority and the adoption or increase in the rate of
181		-	a tax under this subchapter would result in a combined tax rate by
182		-	the district and other political subdivisions of this state of more
183		-	than two percent at any location in the district, an election to
184		-	approve or increase the rate of the tax has no effect unless:
185		-	(1) one or more of the other taxing authorities holds
186		-	an election in accordance with the law governing that authority on
187		-	the same date as the election under this subchapter to reduce the
188		-	tax rate of that authority to a rate that will result in a combined
189		-	tax rate by the district and other political subdivisions of not
190		-	more than two percent at any location in the district; and
191		-	(2) the combined tax rate is reduced to not more than
192		-	two percent as a result of that election.
193		-	(c) This section does not permit a taxing authority to
194		-	impose taxes at differential tax rates within the territory of the
195		-	authority.
196		-	Sec. 1061.306. TAX EFFECTIVE DATE. (a) The adoption,
197		-	change in the rate of, or abolition of a tax under this subchapter
198		-	takes effect on the first day of the first calendar quarter
199		-	occurring after the expiration of the first complete calendar
200		-	quarter occurring after the date on which the comptroller receives
201		-	notice of the results of an election to adopt, change the rate of,
202		-	or abolish the tax.
203		-	(b) If the comptroller determines that an effective date
204		-	provided by Subsection (a) will occur before the comptroller can
205		-	reasonably take the action required to begin collecting the tax or
206		-	to implement the change in the rate of the tax or the abolition of
207		-	the tax, the effective date may be extended by the comptroller until
208		-	the first day of the next calendar quarter.
209		-	Sec. 1061.307. USE OF TAX REVENUE. Revenue from a tax
210		-	imposed under this subchapter may be used by the district for any
211		-	purpose of the district authorized by law.
212		-	SECTION ____. Section 1061.151(b), Special District Local
213		-	Laws Code, is amended to read as follows:
214		-	(b) The proposed budget must contain a complete financial
215		-	statement of:
216		-	(1) the outstanding obligations of the district;
217		-	(2) the cash on hand in each district fund;
218		-	(3) the money received by the district from all
219		-	sources during the previous year;
220		-	(4) the money available to the district from all
221		-	sources during the ensuing year;
222		-	(5) the balances expected at the end of the year in
223		-	which the budget is being prepared;
224		-	(6) the estimated revenue and balances available to
225		-	cover the proposed budget;
226		-	(7) the estimated ad valorem tax rate required; and
227		-	(8) the proposed expenditures and disbursements and
228		-	the estimated receipts and collections for the following fiscal
229		-	year.
230		-	SECTION ____. The heading to Subchapter F, Chapter 1061,
231		-	Special District Local Laws Code, is amended to read as follows:
232		-	SUBCHAPTER F. AD VALOREM TAXES
233		-	SECTION ____. Section 26.012(1), Tax Code, is amended to
234		-	read as follows:
235		-	(1) "Additional sales and use tax" means an additional
236		-	sales and use tax imposed by:
237		-	(A) a city under Section 321.101(b);
238		-	(B) a county under Chapter 323; or
239		-	(C) a hospital district, other than a hospital
240		-	district:
241		-	(i) created on or after September 1, 2001,
242		-	that:
243		-	(a) [(i)] imposes the sales and use
244		-	tax under Subchapter I, Chapter 286, Health and Safety Code; or
245		-	(b) [(ii)] imposes the sales and use
246		-	tax under Subchapter L, Chapter 285, Health and Safety Code; or
247		-	(ii) that imposes the sales and use tax
248		-	under Subchapter G, Chapter 1061, Special District Local Laws Code.
249		-	Price