1 | 1 | | 86R5582 JCG-D |
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2 | 2 | | By: Kolkhorst S.B. No. 2257 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the authority of certain entities to create and operate |
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8 | 8 | | health care provider participation programs in counties not served |
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9 | 9 | | by a hospital district or a public hospital. |
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10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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11 | 11 | | SECTION 1. Subtitle D, Title 4, Health and Safety Code, is |
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12 | 12 | | amended by adding Chapter 299 to read as follows: |
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13 | 13 | | CHAPTER 299. HEALTH CARE PROVIDER PARTICIPATION PROGRAM IN |
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14 | 14 | | MULTI-COUNTY DISTRICT |
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15 | 15 | | SUBCHAPTER A. GENERAL PROVISIONS |
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16 | 16 | | Sec. 299.0001. PURPOSE. The purpose of this chapter is to |
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17 | 17 | | authorize certain counties not served by a hospital district or a |
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18 | 18 | | public hospital to create a district to administer a health care |
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19 | 19 | | provider participation program to provide additional compensation |
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20 | 20 | | to hospitals in the district by collecting mandatory payments from |
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21 | 21 | | each hospital in the district to be used to provide the nonfederal |
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22 | 22 | | share of a Medicaid supplemental payment program and for other |
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23 | 23 | | purposes as authorized under this chapter. |
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24 | 24 | | Sec. 299.0002. DEFINITIONS. In this chapter: |
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25 | 25 | | (1) "Board" means the board of directors of a |
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26 | 26 | | district. |
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27 | 27 | | (2) "Director" means a member of the board. |
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28 | 28 | | (3) "District" means a health care provider |
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29 | 29 | | participation district created under this chapter. |
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30 | 30 | | (4) "Institutional health care provider" means a |
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31 | 31 | | nonpublic hospital that provides inpatient hospital services. |
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32 | 32 | | (5) "Paying hospital" means an institutional health |
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33 | 33 | | care provider required to make a mandatory payment under this |
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34 | 34 | | chapter. |
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35 | 35 | | (6) "Program" means a health care provider |
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36 | 36 | | participation program authorized by this chapter. |
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37 | 37 | | Sec. 299.0003. APPLICABILITY. This chapter applies only to |
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38 | 38 | | a county that: |
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39 | 39 | | (1) is not participating in a health care provider |
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40 | 40 | | participation program authorized under this subtitle; |
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41 | 41 | | (2) is not served by a hospital district or public |
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42 | 42 | | hospital; and |
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43 | 43 | | (3) has only one hospital that is located in the |
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44 | 44 | | county. |
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45 | 45 | | SUBCHAPTER B. CREATION, OPERATION, AND DISSOLUTION OF DISTRICT |
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46 | 46 | | Sec. 299.0021. CREATION BY CONCURRENT ORDERS. (a) Except |
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47 | 47 | | as provided by Subsection (b), a county and one or more other |
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48 | 48 | | counties may create a district by adopting concurrent orders. |
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49 | 49 | | (b) A county or portion of a county that is in the boundaries |
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50 | 50 | | of a hospital district may not be a party to the creation of a |
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51 | 51 | | district. |
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52 | 52 | | (c) A concurrent order to create a district must: |
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53 | 53 | | (1) be approved by the governing body of each creating |
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54 | 54 | | county; |
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55 | 55 | | (2) contain identical provisions; and |
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56 | 56 | | (3) define the boundaries of the district to be |
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57 | 57 | | coextensive with the combined boundaries of each creating county. |
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58 | 58 | | Sec. 299.0022. POWERS. A district may authorize and |
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59 | 59 | | administer a health care provider participation program in |
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60 | 60 | | accordance with this chapter. |
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61 | 61 | | Sec. 299.0023. BOARD OF DIRECTORS. (a) If three or more |
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62 | 62 | | counties create a district, the county judge of each county that |
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63 | 63 | | creates the district shall appoint one director. |
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64 | 64 | | (b) If two counties create a district: |
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65 | 65 | | (1) the county judge of the most populous county shall |
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66 | 66 | | appoint two directors; and |
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67 | 67 | | (2) the county judge of the other county shall appoint |
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68 | 68 | | one director. |
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69 | 69 | | (c) Directors serve staggered two-year terms, with as near |
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70 | 70 | | as possible to one-half of the directors' terms expiring each year. |
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71 | 71 | | (d) A vacancy in the office of director shall be filled for |
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72 | 72 | | the unexpired term in the same manner as the original appointment. |
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73 | 73 | | (e) The board shall elect from among its members a |
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74 | 74 | | president. The president may vote and may cast an additional vote |
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75 | 75 | | to break a tie. |
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76 | 76 | | (f) The board shall also elect from among its members a vice |
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77 | 77 | | president. |
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78 | 78 | | (g) The board shall appoint a secretary, who need not be a |
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79 | 79 | | director. |
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80 | 80 | | (h) Each officer of the board serves for a term of one year. |
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81 | 81 | | (i) The board shall fill a vacancy in a board office for the |
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82 | 82 | | unexpired term. |
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83 | 83 | | (j) A majority of the members of the board voting must |
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84 | 84 | | concur in a matter relating to the business of the district. |
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85 | 85 | | Sec. 299.0024. QUALIFICATIONS FOR OFFICE. (a) To be |
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86 | 86 | | eligible to serve as a director, a person must be a resident of the |
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87 | 87 | | county that appoints the person under Section 299.0023. |
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88 | 88 | | (b) An employee of the district may not serve as a director. |
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89 | 89 | | Sec. 299.0025. COMPENSATION. (a) Directors and officers |
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90 | 90 | | serve without compensation but may be reimbursed for actual |
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91 | 91 | | expenses incurred in the performance of official duties. |
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92 | 92 | | (b) Expenses reimbursed under this section must be: |
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93 | 93 | | (1) reported in the district's minute book or other |
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94 | 94 | | district records; and |
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95 | 95 | | (2) approved by the board. |
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96 | 96 | | Sec. 299.0026. AUTHORITY TO SUE AND BE SUED. The board may |
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97 | 97 | | sue and be sued on behalf of the district. |
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98 | 98 | | Sec. 299.0027. DISTRICT FINANCES. Subchapter F, Chapter |
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99 | 99 | | 287, other than Sections 287.129 and 287.130, applies to the |
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100 | 100 | | district in the same manner that those provisions apply to a health |
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101 | 101 | | services district created under Chapter 287. This section does not |
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102 | 102 | | authorize the district to issue bonds. |
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103 | 103 | | Sec. 299.0028. DISSOLUTION. A district shall be dissolved |
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104 | 104 | | if the counties that created the district adopt concurrent orders |
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105 | 105 | | to dissolve the district and the concurrent orders contain |
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106 | 106 | | identical provisions. |
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107 | 107 | | Sec. 299.0029. ADMINISTRATION OF PROPERTY, DEBTS, AND |
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108 | 108 | | ASSETS AFTER DISSOLUTION. (a) After dissolution of a district |
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109 | 109 | | under Section 299.0028, the board shall continue to control and |
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110 | 110 | | administer any property, debts, and assets of the district until |
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111 | 111 | | all funds have been disposed of and all district debts have been |
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112 | 112 | | paid or settled. |
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113 | 113 | | (b) As soon as practicable after the dissolution of the |
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114 | 114 | | district, the board shall transfer to each institutional health |
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115 | 115 | | care provider in the district the provider's proportionate share of |
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116 | 116 | | any remaining funds in any local provider participation fund |
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117 | 117 | | created by the district under Section 299.0102. |
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118 | 118 | | (c) If, after administering any property and assets, the |
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119 | 119 | | board determines that the district's property and assets are |
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120 | 120 | | insufficient to pay the debts of the district, the district shall |
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121 | 121 | | transfer the remaining debts to the counties that created the |
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122 | 122 | | district in proportion to the funds contributed to the district by |
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123 | 123 | | each county, including a paying hospital in the county. |
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124 | 124 | | (d) If, after complying with Subsections (b) and (c) and |
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125 | 125 | | administering the property and assets, the board determines that |
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126 | 126 | | unused funds remain, the board shall transfer the unused funds to |
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127 | 127 | | the counties that created the district in proportion to the funds |
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128 | 128 | | contributed to the district by each county, including a paying |
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129 | 129 | | hospital in the county. |
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130 | 130 | | Sec. 299.0030. ACCOUNTING AFTER DISSOLUTION. After the |
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131 | 131 | | district has paid all its debts and has disposed of all its assets |
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132 | 132 | | and funds as prescribed by Section 299.0029, the board shall |
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133 | 133 | | provide an accounting to each county that created the district. The |
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134 | 134 | | accounting must show the manner in which the assets and debts of the |
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135 | 135 | | district were distributed. |
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136 | 136 | | SUBCHAPTER C. HEALTH CARE PROVIDER PARTICIPATION PROGRAM; POWERS |
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137 | 137 | | AND DUTIES OF DISTRICT BOARD |
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138 | 138 | | Sec. 299.0051. HEALTH CARE PROVIDER PARTICIPATION PROGRAM. |
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139 | 139 | | The board may authorize the district to participate in a health care |
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140 | 140 | | provider participation program on the affirmative vote of a |
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141 | 141 | | majority of the board, subject to the provisions of this chapter. |
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142 | 142 | | Sec. 299.0052. LIMITATION ON AUTHORITY TO REQUIRE MANDATORY |
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143 | 143 | | PAYMENT. The board may require a mandatory payment authorized |
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144 | 144 | | under this chapter by an institutional health care provider in the |
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145 | 145 | | district only in the manner provided by this chapter. |
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146 | 146 | | Sec. 299.0053. RULES AND PROCEDURES. The board may adopt |
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147 | 147 | | rules relating to the administration of the health care provider |
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148 | 148 | | participation program in the district, including collection of the |
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149 | 149 | | mandatory payments, expenditures, audits, and any other |
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150 | 150 | | administrative aspects of the program. |
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151 | 151 | | Sec. 299.0054. INSTITUTIONAL HEALTH CARE PROVIDER |
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152 | 152 | | REPORTING. If the board authorizes the district to participate in a |
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153 | 153 | | health care provider participation program under this chapter, the |
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154 | 154 | | board shall require each institutional health care provider located |
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155 | 155 | | in the district to submit to the district a copy of any financial |
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156 | 156 | | and utilization data required by and reported to the Department of |
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157 | 157 | | State Health Services under Sections 311.032 and 311.033 and any |
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158 | 158 | | rules adopted by the executive commissioner of the Health and Human |
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159 | 159 | | Services Commission to implement those sections. |
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160 | 160 | | SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS |
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161 | 161 | | Sec. 299.0101. HEARING. (a) In each year that the board |
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162 | 162 | | authorizes a health care provider participation program under this |
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163 | 163 | | chapter, the board shall hold a public hearing on the amounts of any |
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164 | 164 | | mandatory payments that the board intends to require during the |
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165 | 165 | | year and how the revenue derived from those payments is to be spent. |
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166 | 166 | | (b) Not later than the fifth day before the date of the |
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167 | 167 | | hearing required under Subsection (a), the board shall publish |
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168 | 168 | | notice of the hearing in a newspaper of general circulation in each |
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169 | 169 | | county that creates the district and provide written notice of the |
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170 | 170 | | hearing to the chief operating officer of each institutional health |
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171 | 171 | | care provider in the district. |
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172 | 172 | | Sec. 299.0102. LOCAL PROVIDER PARTICIPATION FUND; |
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173 | 173 | | DEPOSITORY. (a) If the board collects a mandatory payment |
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174 | 174 | | authorized under this chapter, the board shall create a local |
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175 | 175 | | provider participation fund in one or more banks designated by the |
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176 | 176 | | district as a depository for the mandatory payments received by the |
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177 | 177 | | district. |
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178 | 178 | | (b) The board may withdraw or use money in the local |
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179 | 179 | | provider participation fund of the district only for a purpose |
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180 | 180 | | authorized under this chapter. |
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181 | 181 | | (c) All funds collected under this chapter shall be secured |
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182 | 182 | | in the manner provided for securing county funds. |
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183 | 183 | | Sec. 299.0103. DEPOSITS TO FUND; AUTHORIZED USES OF MONEY. |
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184 | 184 | | (a) The local provider participation fund established under |
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185 | 185 | | Section 299.0102 consists of: |
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186 | 186 | | (1) all revenue received by the district attributable |
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187 | 187 | | to mandatory payments authorized under this chapter, including any |
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188 | 188 | | penalties and interest attributable to delinquent payments; |
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189 | 189 | | (2) money received from the Health and Human Services |
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190 | 190 | | Commission as a refund of an intergovernmental transfer from the |
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191 | 191 | | district to the state for the purpose of providing the nonfederal |
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192 | 192 | | share of Medicaid supplemental payment program payments, provided |
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193 | 193 | | that the intergovernmental transfer does not receive a federal |
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194 | 194 | | matching payment; and |
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195 | 195 | | (3) the earnings of the fund. |
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196 | 196 | | (b) Money deposited to the local provider participation |
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197 | 197 | | fund may be used only to: |
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198 | 198 | | (1) fund intergovernmental transfers from the |
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199 | 199 | | district to the state to provide: |
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200 | 200 | | (A) the nonfederal share of a Medicaid |
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201 | 201 | | supplemental payment program authorized under the state Medicaid |
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202 | 202 | | plan, the Texas Healthcare Transformation and Quality Improvement |
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203 | 203 | | Program waiver issued under Section 1115 of the federal Social |
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204 | 204 | | Security Act (42 U.S.C. Section 1315), or a successor waiver |
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205 | 205 | | program authorizing similar Medicaid supplemental payment |
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206 | 206 | | programs; or |
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207 | 207 | | (B) payments to Medicaid managed care |
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208 | 208 | | organizations that are dedicated for payment to hospitals; |
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209 | 209 | | (2) subsidize indigent programs in the district; |
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210 | 210 | | (3) pay the administrative expenses of the district |
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211 | 211 | | solely for activities under this chapter; |
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212 | 212 | | (4) refund a portion of a mandatory payment collected |
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213 | 213 | | in error from a paying hospital; and |
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214 | 214 | | (5) refund to paying hospitals the proportionate share |
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215 | 215 | | of money received by the district that is not used to fund the |
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216 | 216 | | nonfederal share of Medicaid supplemental payment program |
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217 | 217 | | payments. |
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218 | 218 | | (c) Money in the local provider participation fund may not |
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219 | 219 | | be commingled with other district funds or other funds of a county |
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220 | 220 | | that creates the district. |
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221 | 221 | | (d) An intergovernmental transfer of funds described by |
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222 | 222 | | Subsection (b)(1) and any funds received by the district as a result |
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223 | 223 | | of an intergovernmental transfer described by that subsection may |
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224 | 224 | | not be used by the district, a county that created the district, or |
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225 | 225 | | any other entity to expand Medicaid eligibility under the Patient |
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226 | 226 | | Protection and Affordable Care Act (Pub. L. No. 111-148) as amended |
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227 | 227 | | by the Health Care and Education Reconciliation Act of 2010 (Pub. L. |
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228 | 228 | | No. 111-152). |
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229 | 229 | | Sec. 299.0104. ACCOUNTING OF FUNDS. The district shall |
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230 | 230 | | maintain an accounting of the funds received from each county that |
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231 | 231 | | creates the district, including a paying hospital in the county. |
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232 | 232 | | SUBCHAPTER E. MANDATORY PAYMENTS |
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233 | 233 | | Sec. 299.0151. MANDATORY PAYMENTS BASED ON PAYING HOSPITAL |
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234 | 234 | | NET PATIENT REVENUE. (a) Except as provided by Subsection (e), if |
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235 | 235 | | the board authorizes a health care provider participation program |
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236 | 236 | | under this chapter, the district may require an annual mandatory |
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237 | 237 | | payment to be assessed on the net patient revenue of each |
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238 | 238 | | institutional health care provider located in the district. The |
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239 | 239 | | board may provide for the mandatory payment to be assessed |
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240 | 240 | | quarterly. In the first year in which the mandatory payment is |
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241 | 241 | | required, the mandatory payment is assessed on the net patient |
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242 | 242 | | revenue of an institutional health care provider located in the |
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243 | 243 | | district as determined by the data reported to the Department of |
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244 | 244 | | State Health Services under Sections 311.032 and 311.033 in the |
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245 | 245 | | fiscal year ending in 2017 or, if the institutional health care |
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246 | 246 | | provider did not report any data under those sections in that fiscal |
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247 | 247 | | year, as determined by the institutional health care provider's |
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248 | 248 | | Medicare cost report submitted for the 2017 fiscal year or for the |
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249 | 249 | | closest subsequent fiscal year for which the provider submitted the |
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250 | 250 | | Medicare cost report. The district shall update the amount of the |
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251 | 251 | | mandatory payment on an annual basis. |
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252 | 252 | | (b) The amount of a mandatory payment authorized under this |
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253 | 253 | | chapter must be uniformly proportionate with the amount of net |
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254 | 254 | | patient revenue generated by each paying hospital in the district. |
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255 | 255 | | A mandatory payment authorized under this chapter may not hold |
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256 | 256 | | harmless any institutional health care provider, as required under |
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257 | 257 | | 42 U.S.C. Section 1396b(w). |
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258 | 258 | | (c) The board shall set the amount of a mandatory payment |
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259 | 259 | | authorized under this chapter. The amount of the mandatory payment |
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260 | 260 | | required of each paying hospital may not exceed six percent of the |
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261 | 261 | | paying hospital's net patient revenue. |
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262 | 262 | | (d) Subject to the maximum amount prescribed by Subsection |
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263 | 263 | | (c), the board shall set a mandatory payment authorized under this |
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264 | 264 | | chapter in amounts that in the aggregate will generate sufficient |
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265 | 265 | | revenue to cover the administrative expenses of the district for |
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266 | 266 | | activities under this chapter, to fund an intergovernmental |
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267 | 267 | | transfer described by Section 299.0103(b)(1), and to pay for |
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268 | 268 | | indigent programs in the district, except that the amount of |
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269 | 269 | | revenue from mandatory payments used for administrative expenses of |
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270 | 270 | | the district for activities under this chapter in a year may not |
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271 | 271 | | exceed four percent of the total revenue generated from the |
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272 | 272 | | mandatory payment. |
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273 | 273 | | (e) A paying hospital may not add a mandatory payment |
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274 | 274 | | required under this section as a surcharge to a patient. |
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275 | 275 | | Sec. 299.0152. ASSESSMENT AND COLLECTION OF MANDATORY |
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276 | 276 | | PAYMENTS. The district may collect or contract for the assessment |
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277 | 277 | | and collection of mandatory payments authorized under this chapter. |
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278 | 278 | | Sec. 299.0153. INTEREST, PENALTIES, AND DISCOUNTS. |
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279 | 279 | | Interest, penalties, and discounts on mandatory payments required |
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280 | 280 | | under this chapter are governed by the law applicable to county ad |
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281 | 281 | | valorem taxes. |
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282 | 282 | | Sec. 299.0154. CORRECTION OF INVALID PROVISION OR |
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283 | 283 | | PROCEDURE. To the extent any provision or procedure under this |
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284 | 284 | | chapter causes a mandatory payment authorized under this chapter to |
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285 | 285 | | be ineligible for federal matching funds, the board may provide by |
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286 | 286 | | rule for an alternative provision or procedure that conforms to the |
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287 | 287 | | requirements of the federal Centers for Medicare and Medicaid |
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288 | 288 | | Services. |
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289 | 289 | | SECTION 2. Subtitle D, Title 4, Health and Safety Code, is |
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290 | 290 | | amended by adding Chapter 299A to read as follows: |
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291 | 291 | | CHAPTER 299A. COUNTY HEALTH CARE PROVIDER PARTICIPATION PROGRAM IN |
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292 | 292 | | COUNTY NOT SERVED BY HOSPITAL DISTRICT OR PUBLIC HOSPITAL |
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293 | 293 | | SUBCHAPTER A. GENERAL PROVISIONS |
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294 | 294 | | Sec. 299A.0001. PURPOSE. The purpose of this chapter is to |
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295 | 295 | | authorize a county not served by a hospital district or a public |
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296 | 296 | | hospital to administer a county health care provider participation |
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297 | 297 | | program to provide additional compensation to hospitals in the |
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298 | 298 | | county by collecting mandatory payments from each hospital in the |
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299 | 299 | | county to be used to provide the nonfederal share of a Medicaid |
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300 | 300 | | supplemental payment program and for other purposes as authorized |
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301 | 301 | | under this chapter. |
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302 | 302 | | Sec. 299A.0002. DEFINITIONS. In this chapter: |
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303 | 303 | | (1) "Institutional health care provider" means a |
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304 | 304 | | nonpublic hospital that provides inpatient hospital services. |
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305 | 305 | | (2) "Paying hospital" means an institutional health |
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306 | 306 | | care provider required to make a mandatory payment under this |
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307 | 307 | | chapter. |
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308 | 308 | | (3) "Program" means a county health care provider |
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309 | 309 | | participation program authorized by this chapter. |
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310 | 310 | | Sec. 299A.0003. APPLICABILITY. This chapter applies only |
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311 | 311 | | to a county that is not served by a hospital district or a public |
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312 | 312 | | hospital. |
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313 | 313 | | Sec. 299A.0004. COUNTY HEALTH CARE PROVIDER PARTICIPATION |
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314 | 314 | | PROGRAM; COUNTY ORDER REQUIRED FOR PARTICIPATION. The |
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315 | 315 | | commissioners court of a county may adopt an order authorizing the |
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316 | 316 | | county to participate in a health care provider participation |
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317 | 317 | | program, subject to the limitations provided by this chapter. |
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318 | 318 | | SUBCHAPTER B. POWERS AND DUTIES OF COMMISSIONERS COURT |
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319 | 319 | | Sec. 299A.0051. LIMITATION ON AUTHORITY TO REQUIRE |
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320 | 320 | | MANDATORY PAYMENT. The commissioners court of a county may require |
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321 | 321 | | a mandatory payment authorized under this chapter by an |
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322 | 322 | | institutional health care provider in the county only in the manner |
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323 | 323 | | provided by this chapter. |
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324 | 324 | | Sec. 299A.0052. RULES AND PROCEDURES. The commissioners |
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325 | 325 | | court of a county may adopt rules relating to the administration of |
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326 | 326 | | the health care provider participation program in the county, |
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327 | 327 | | including collection of the mandatory payments, expenditures, |
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328 | 328 | | audits, and any other administrative aspects of the program. |
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329 | 329 | | Sec. 299A.0053. INSTITUTIONAL HEALTH CARE PROVIDER |
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330 | 330 | | REPORTING. If the commissioners court of a county authorizes the |
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331 | 331 | | county to participate in a health care provider participation |
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332 | 332 | | program under this chapter, the commissioners court shall require |
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333 | 333 | | each institutional health care provider to submit to the county a |
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334 | 334 | | copy of any financial and utilization data required by and reported |
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335 | 335 | | to the Department of State Health Services under Sections 311.032 |
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336 | 336 | | and 311.033 and any rules adopted by the executive commissioner of |
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337 | 337 | | the Health and Human Services Commission to implement those |
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338 | 338 | | sections. |
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339 | 339 | | SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS |
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340 | 340 | | Sec. 299A.0101. HEARING. (a) In each year that the |
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341 | 341 | | commissioners court of a county authorizes a health care provider |
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342 | 342 | | participation program under this chapter, the commissioners court |
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343 | 343 | | shall hold a public hearing on the amounts of any mandatory payments |
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344 | 344 | | that the commissioners court intends to require during the year and |
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345 | 345 | | how the revenue derived from those payments is to be spent. |
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346 | 346 | | (b) Not later than the fifth day before the date of the |
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347 | 347 | | hearing required under Subsection (a), the commissioners court |
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348 | 348 | | shall publish notice of the hearing in a newspaper of general |
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349 | 349 | | circulation in the county and provide written notice of the hearing |
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350 | 350 | | to the chief operating officer of each institutional health care |
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351 | 351 | | provider in the county. |
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352 | 352 | | Sec. 299A.0102. LOCAL PROVIDER PARTICIPATION FUND; |
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353 | 353 | | DEPOSITORY. (a) Each commissioners court of a county that collects |
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354 | 354 | | a mandatory payment authorized under this chapter shall create a |
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355 | 355 | | local provider participation fund in one or more banks designated |
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356 | 356 | | by the county as a depository for the mandatory payments received by |
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357 | 357 | | the county. |
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358 | 358 | | (b) The commissioners court of a county may withdraw or use |
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359 | 359 | | money in the local provider participation fund of the county only |
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360 | 360 | | for a purpose authorized under this chapter. |
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361 | 361 | | (c) All funds collected under this chapter shall be secured |
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362 | 362 | | in the manner provided for securing other county funds. |
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363 | 363 | | Sec. 299A.0103. DEPOSITS TO FUND; AUTHORIZED USES OF MONEY. |
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364 | 364 | | (a) The local provider participation fund established by a county |
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365 | 365 | | under Section 299A.0102 consists of: |
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366 | 366 | | (1) all revenue received by the county attributable to |
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367 | 367 | | mandatory payments authorized under this chapter, including any |
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368 | 368 | | penalties and interest attributable to delinquent payments; |
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369 | 369 | | (2) money received from the Health and Human Services |
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370 | 370 | | Commission as a refund of an intergovernmental transfer from the |
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371 | 371 | | county to the state for the purpose of providing the nonfederal |
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372 | 372 | | share of Medicaid supplemental payment program payments, provided |
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373 | 373 | | that the intergovernmental transfer does not receive a federal |
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374 | 374 | | matching payment; and |
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375 | 375 | | (3) the earnings of the fund. |
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376 | 376 | | (b) Money deposited to the local provider participation |
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377 | 377 | | fund of a county may be used only to: |
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378 | 378 | | (1) fund intergovernmental transfers from the county |
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379 | 379 | | to the state to provide: |
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380 | 380 | | (A) the nonfederal share of a Medicaid |
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381 | 381 | | supplemental payment program authorized under the state Medicaid |
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382 | 382 | | plan, the Texas Healthcare Transformation and Quality Improvement |
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383 | 383 | | Program waiver issued under Section 1115 of the federal Social |
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384 | 384 | | Security Act (42 U.S.C. Section 1315), or a successor waiver |
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385 | 385 | | program authorizing similar Medicaid supplemental payment |
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386 | 386 | | programs; or |
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387 | 387 | | (B) payments to Medicaid managed care |
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388 | 388 | | organizations that are dedicated for payment to hospitals; |
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389 | 389 | | (2) subsidize indigent programs in the county; |
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390 | 390 | | (3) pay the administrative expenses of the county |
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391 | 391 | | solely for activities under this chapter; |
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392 | 392 | | (4) refund a portion of a mandatory payment collected |
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393 | 393 | | in error from a paying hospital; and |
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394 | 394 | | (5) refund to paying hospitals the proportionate share |
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395 | 395 | | of money received by the county that is not used to fund the |
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396 | 396 | | nonfederal share of Medicaid supplemental payment program |
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397 | 397 | | payments. |
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398 | 398 | | (c) Money in the local provider participation fund of a |
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399 | 399 | | county may not be commingled with other county funds. |
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400 | 400 | | (d) An intergovernmental transfer of funds described by |
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401 | 401 | | Subsection (b)(1) and any funds received by the county as a result |
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402 | 402 | | of an intergovernmental transfer described by that subsection may |
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403 | 403 | | not be used by the county or any other entity to expand Medicaid |
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404 | 404 | | eligibility under the Patient Protection and Affordable Care Act |
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405 | 405 | | (Pub. L. No. 111-148) as amended by the Health Care and Education |
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406 | 406 | | Reconciliation Act of 2010 (Pub. L. No. 111-152). |
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407 | 407 | | SUBCHAPTER D. MANDATORY PAYMENTS |
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408 | 408 | | Sec. 299A.0151. MANDATORY PAYMENTS BASED ON PAYING HOSPITAL |
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409 | 409 | | NET PATIENT REVENUE. (a) Except as provided by Subsection (e), if |
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410 | 410 | | the commissioners court of a county authorizes a health care |
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411 | 411 | | provider participation program under this chapter, the |
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412 | 412 | | commissioners court may require an annual mandatory payment to be |
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413 | 413 | | assessed on the net patient revenue of each institutional health |
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414 | 414 | | care provider located in the county. The commissioners court may |
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415 | 415 | | provide for the mandatory payment to be assessed quarterly. In the |
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416 | 416 | | first year in which the mandatory payment is required, the |
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417 | 417 | | mandatory payment is assessed on the net patient revenue of an |
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418 | 418 | | institutional health care provider located in the county as |
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419 | 419 | | determined by the data reported to the Department of State Health |
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420 | 420 | | Services under Sections 311.032 and 311.033 in the fiscal year |
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421 | 421 | | ending in 2017 or, if the institutional health care provider did not |
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422 | 422 | | report any data under those sections in that fiscal year, as |
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423 | 423 | | determined by the institutional health care provider's Medicare |
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424 | 424 | | cost report submitted for the 2017 fiscal year or for the closest |
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425 | 425 | | subsequent fiscal year for which the provider submitted the |
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426 | 426 | | Medicare cost report. The county shall update the amount of the |
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427 | 427 | | mandatory payment on an annual basis. |
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428 | 428 | | (b) The amount of a mandatory payment authorized under this |
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429 | 429 | | chapter must be uniformly proportionate with the amount of net |
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430 | 430 | | patient revenue generated by each paying hospital in the county. A |
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431 | 431 | | mandatory payment authorized under this chapter may not hold |
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432 | 432 | | harmless any institutional health care provider, as required under |
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433 | 433 | | 42 U.S.C. Section 1396b(w). |
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434 | 434 | | (c) The commissioners court of a county that collects a |
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435 | 435 | | mandatory payment authorized under this chapter shall set the |
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436 | 436 | | amount of the mandatory payment. The amount of the mandatory |
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437 | 437 | | payment required of each paying hospital in the county may not |
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438 | 438 | | exceed six percent of the paying hospital's net patient revenue. |
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439 | 439 | | (d) Subject to the maximum amount prescribed by Subsection |
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440 | 440 | | (c), the commissioners court of a county that collects a mandatory |
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441 | 441 | | payment authorized under this chapter shall set the mandatory |
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442 | 442 | | payments in amounts that in the aggregate will generate sufficient |
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443 | 443 | | revenue to cover the administrative expenses of the county for |
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444 | 444 | | activities under this chapter, to fund an intergovernmental |
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445 | 445 | | transfer described by Section 299A.103(b)(1), and to pay for |
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446 | 446 | | indigent programs in the county, except that the amount of revenue |
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447 | 447 | | from mandatory payments used for administrative expenses of the |
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448 | 448 | | county for activities under this chapter in a year may not exceed |
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449 | 449 | | the lesser of four percent of the total revenue generated from the |
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450 | 450 | | mandatory payment or $20,000. |
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451 | 451 | | (e) A paying hospital may not add a mandatory payment |
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452 | 452 | | required under this section as a surcharge to a patient. |
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453 | 453 | | Sec. 299A.0152. ASSESSMENT AND COLLECTION OF MANDATORY |
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454 | 454 | | PAYMENTS. A county may collect or contract for the assessment and |
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455 | 455 | | collection of mandatory payments authorized under this chapter. |
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456 | 456 | | Sec. 299A.0153. INTEREST, PENALTIES, AND DISCOUNTS. |
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457 | 457 | | Interest, penalties, and discounts on mandatory payments required |
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458 | 458 | | under this chapter are governed by the law applicable to county ad |
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459 | 459 | | valorem taxes. |
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460 | 460 | | Sec. 299A.0154. CORRECTION OF INVALID PROVISION OR |
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461 | 461 | | PROCEDURE. To the extent any provision or procedure under this |
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462 | 462 | | chapter causes a mandatory payment authorized under this chapter to |
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463 | 463 | | be ineligible for federal matching funds, the county may provide by |
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464 | 464 | | rule for an alternative provision or procedure that conforms to the |
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465 | 465 | | requirements of the federal Centers for Medicare and Medicaid |
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466 | 466 | | Services. |
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467 | 467 | | SECTION 3. If before implementing any provision of this Act |
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468 | 468 | | a state agency determines that a waiver or authorization from a |
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469 | 469 | | federal agency is necessary for implementation of that provision, |
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470 | 470 | | the agency affected by the provision shall request the waiver or |
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471 | 471 | | authorization and may delay implementing that provision until the |
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472 | 472 | | waiver or authorization is granted. |
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473 | 473 | | SECTION 4. This Act takes effect immediately if it receives |
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474 | 474 | | a vote of two-thirds of all the members elected to each house, as |
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475 | 475 | | provided by Section 39, Article III, Texas Constitution. If this |
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476 | 476 | | Act does not receive the vote necessary for immediate effect, this |
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477 | 477 | | Act takes effect September 1, 2019. |
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