By Maxey                                               H.B. No. 955
          Substitute the following for H.B. No. 955:
          By Maxey                                           C.S.H.B. No. 955
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the duty of non-profit, tax-exempt hospitals to provide
    1-3  charity care.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5  SECTION 1.  Chapter 311, Subchapter C, Section 311.031, Health and
    1-6  Safety Code, is amended to read as follows:
    1-7  Section 311.031.  Definitions
    1-8  In this subchapter:
    1-9  (1)  "Board" means the Texas Board of Health.
   1-10  (2)  "Charity care" means the unreimbursed cost to the hospital of:
   1-11        (a)  providing, funding, or otherwise financially supporting
   1-12  health care services on an inpatient or outpatient basis to persons
   1-13  classified by the hospital as "financially indigent" or "medically
   1-14  indigent"; and/or
   1-15        (b)  providing health care services to recipients of Medicaid
   1-16  and other federal, state, or local indigent health care programs.
   1-17  (3)  "Contractual allowances" means the difference between revenue
   1-18  at established rates and amounts realizable from third-party payors
   1-19  under contractual agreements.
   1-20  (4) <(2)>  "Department" means the Texas Department of Health.
   1-21  (5)  "Donations" means the unreimbursed cost of providing cash and
   1-22  in-kind gifts to charitable or public entities that support the
   1-23  charitable purposes of the hospital.
   1-24  (6)  "Education related costs" means the unreimbursed cost to the
    2-1  hospital of providing, funding, or otherwise financially supporting
    2-2  educational benefits, services, and programs in response to
    2-3  community needs, including:
    2-4        (a)  education of physicians, nurses, technicians, and other
    2-5  medical professionals and health care providers;
    2-6        (b)  provision of scholarships and funding to medical
    2-7  schools, colleges and universities for health professions
    2-8  education;
    2-9        (c)  education of patients concerning diseases and home care;
   2-10  and
   2-11        (d)  community health education through informational
   2-12  programs, publications, and outreach activities.
   2-13  (7)  "Financially indigent" means an uninsured or underinsured
   2-14  person who is accepted for care with no obligation or a discounted
   2-15  obligation to pay for the services rendered based on the
   2-16  "hospital's eligibility system".
   2-17  (8) <(3)>  "Hospital" means a general or special hospital licensed
   2-18  under Chapter 241 (Texas Hospital Licensing Law).
   2-19  (9)  "Hospital eligibility system" means the financial criteria and
   2-20  procedure used by the hospital to determine if a patient is
   2-21  eligible for charity care.  Such system shall include income levels
   2-22  and means testing indexed to the federal poverty guidelines;
   2-23  provided, however, that a hospital may not establish an eligibility
   2-24  system which sets the income eligibility level for charity care
   2-25  lower than required by counties under the Indigent Health Care and
   2-26  Treatment Act, Health and Safety Code, Section 61.023.  A hospital
   2-27  may determine that a person is financially or medically indigent
    3-1  pursuant to the hospital's eligibility system after health care
    3-2  services are provided.
    3-3  (10)  "Medically indigent" means a person whose medical or hospital
    3-4  bills after payment by third-party payors exceed a specified
    3-5  percentage of the patient's annual gross income, in accordance with
    3-6  the "hospital's eligibility system", and the person is financially
    3-7  unable to pay the remaining bill.
    3-8  (11)  "Research related costs" means the unreimbursed costs to the
    3-9  hospital of providing, funding, or otherwise financially supporting
   3-10  facilities, equipment, and personnel for medical and clinical
   3-11  research conducted in response to community needs.
   3-12  (12)  "Subsidized health services" means those services provided by
   3-13  a hospital in response to community needs for which the
   3-14  reimbursement is less than the hospital's cost for providing the
   3-15  services, and which must be subsidized by other hospital revenue
   3-16  sources.  Subsidized health services may include, but are not
   3-17  limited to:
   3-18        (a)  emergency and trauma care;
   3-19        (b)  neonatal intensive care;
   3-20        (c)  free-standing community clinics; and
   3-21        (d)  collaborative efforts with local government or private
   3-22  agencies in preventive medicine, such as immunization programs.
   3-23  (13)  "Unreimbursed Costs" means the costs the hospital incurs for
   3-24  providing services after subtracting payments received from any
   3-25  source for such services including, but not limited to, the
   3-26  following:  third-party insurance payments; Medicare payments;
   3-27  Medicaid payments; Medicare education reimbursements; state
    4-1  reimbursements for education; payments from drug companies to
    4-2  pursue research; grant funds for research and disproportionate
    4-3  share payments.  For purposes of this definition, the term "costs"
    4-4  shall be calculated by applying the cost to charge ratios derived
    4-5  from the hospital's Medicare cost report to billed charges.
    4-6  SECTION 2.  Chapter 311, Subchapter C, Section 311.033, Health and
    4-7  Safety Code, is amended to read as follows:
    4-8  Sec. 311.033.  Financial and Utilization Data Required
    4-9  (a)  A hospital shall submit to the department financial and
   4-10  utilization data for that hospital, including data relating to the
   4-11  hospital's:
   4-12        (1)  total gross revenue, including:
   4-13              (A)  Medicare gross revenue;
   4-14              (B)  Medicaid gross revenue;
   4-15              (C)  other revenue from other state programs;
   4-16              (D)  revenue from local government programs;
   4-17              (E)  local tax support;
   4-18              (F)  charitable contributions;
   4-19              (G)  other third party payments;
   4-20              (H)  gross inpatient revenue; and
   4-21              (I)  gross outpatient revenue;
   4-22        (2)  total deductions from gross revenue, including:
   4-23              <(A)  charity care;>
   4-24              <(B)  bad debt;>
   4-25              <(C)> (A)  contractual allowance; and
   4-26              <(D)> (B)  any other deductions;
   4-27        (3)  charity care;
    5-1        (4)  bad debt expense;
    5-2        <(3)> (5)  total admissions, including:
    5-3              (A)  Medicare admissions;
    5-4              (B)  Medicaid admissions;
    5-5              (C)  admissions under a local government program;
    5-6              (D)  charity care admissions; and
    5-7              (E)  any other type of admission;
    5-8        <(4)> (6)  total discharges;
    5-9        <(5)> (7)  total patient days;
   5-10        <(6)> (8)  average length of stay;
   5-11        <(7)> (9)  total outpatient visits;
   5-12        <(8)> (10)  total assets;
   5-13        <(9)> (11)  total liabilities;
   5-14        <(10)  total cost of reimbursed and unreimbursed care for
   5-15  indigent patients; and>
   5-16        (12)  estimates of unreimbursed costs of subsidized health
   5-17  services reported separately in the following categories:
   5-18              (a)  emergency care and trauma care;
   5-19              (b)  neonatal intensive care;
   5-20              (c)  free-standing community clinics;
   5-21              (d)  collaborative efforts with local government or
   5-22  private agencies in preventive medicine, such as immunization
   5-23  programs; and
   5-24              (e)  other services that satisfy the definition of
   5-25  "subsidized health services" contained in Section 311.031(7).
   5-26        (13)  donations;
   5-27        (14)  total cost of reimbursed and unreimbursed research;
    6-1        (15) <(11)>  total cost of reimbursed and unreimbursed
    6-2  <medical> education separated into the following categories:
    6-3              (a)  education of physicians, nurses, technicians, and
    6-4  other medical professionals and health care providers;
    6-5              (b)  scholarships and funding to medical schools,
    6-6  colleges and universities for health professions education;
    6-7              (c)  education of patients concerning diseases and home
    6-8  care;
    6-9              (d)  community health education through informational
   6-10  programs, publications, and outreach activities; and
   6-11              (e)  other educational costs that meet the definition
   6-12  of "education related costs" contained in Section 311.031(10).
   6-13  SECTION 3.  Chapter 311, Subchapter C, Section 311.037, Health and
   6-14  Safety Code, is amended to read as follows:
   6-15  Sec. 311.037.  Confidential Data; Criminal Penalty
   6-16  (a)  The following data reported or submitted to the department
   6-17  under this subchapter is confidential:
   6-18        (1)  data regarding a specific patient. <or>
   6-19        <(2)  financial data regarding a provider or facility.>
   6-20  (b)  Before the department may disclose confidential data under
   6-21  this subchapter, the department must remove any information that
   6-22  identifies a specific patient<, provider, or facility>.
   6-23  (c)  A person commits an offense if the person:
   6-24        (1)  discloses, distributes, or sells confidential data
   6-25  obtained under this subchapter; or
   6-26        (2)  violates Subsection (b).
   6-27  (d)  An offense under Subsection (c) is a Class B misdemeanor.
    7-1  SECTION 4.  Chapter 311, Health and Safety Code, is amended to add
    7-2  Subchapter D to read as follows:
    7-3  SUBCHAPTER D.  DUTIES OF NON-PROFIT, TAX-EXEMPT HOSPITALS.
    7-4  Section 311.039.  Policy Statement.  It is the purpose of this
    7-5  subchapter to clarify the duties and responsibilities of non-profit
    7-6  hospitals for providing community benefits that include charity
    7-7  care.
    7-8  Section 311.040.  Definitions.
    7-9  (1)  "Charity care" means those amounts defined as charity care in
   7-10  Subchapter C, Section 311.031(2), Health and Safety Code.
   7-11  (2)  "Community benefits" means the unreimbursed cost to the
   7-12  hospital of providing charity care, donations, education,
   7-13  government sponsored program services, research, and subsidized
   7-14  health services.  "Community benefits" does not include the cost to
   7-15  the hospital of paying any taxes or other governmental assessments.
   7-16  (3)  "Contributions" means the dollar value of cash donations and
   7-17  the fair market value at the time of donation of in-kind donations
   7-18  to the hospital from individuals, organizations, or other entities.
   7-19  "Contributions" does not include the value of a donation designated
   7-20  or otherwise restricted by the donor for purposes other than
   7-21  charity care.
   7-22  (4)  "Donations" means those amounts defined as donations in
   7-23  Subchapter C, Section 311.031(5), Health and Safety Code.
   7-24  (5)  "Education related costs" means those amounts defined as
   7-25  education related costs in Subchapter C, Section 311.031(6), Health
   7-26  and Safety Code.
   7-27  (6)  "Government sponsored program unreimbursed costs" means the
    8-1  unreimbursed cost to the hospital of providing health care services
    8-2  to the beneficiaries of Medicare, the Civilian Health and Medical
    8-3  Program of the Uniformed Services, and other federal, state or
    8-4  local government health care programs.
    8-5  (7)  "Net patient revenue" is an accounting term and shall be
    8-6  calculated in accordance with generally accepted accounting
    8-7  principles and practices for hospitals.
    8-8  (8)  "Non-profit Hospital" means a hospital that is:
    8-9        (a)  eligible for tax-exempt bond financing;
   8-10        (b)  exempt from state franchise, sales, ad valorem, or other
   8-11  state or local taxes; and
   8-12        (c)  organized as a non-profit corporation under the laws of
   8-13  this state or any other state or country.
   8-14        For purposes of this Subchapter, a "non-profit hospital"
   8-15  shall not include a hospital that:
   8-16              (i)  is exempt from state franchise, sales, ad valorem,
   8-17  or other state or local taxes;
   8-18              (ii)  does not receive payment for providing health
   8-19  care services to any inpatients or outpatients from any source
   8-20  including, but not limited to the patient or any person legally
   8-21  obligated to support the patient, third party payors, Medicare,
   8-22  Medicaid, or any other federal, state or local indigent care
   8-23  program;
   8-24              (iii)  provides services to patients without regard to
   8-25  the patient's ability to pay or to medically or financially
   8-26  indigent patients; and
   8-27              (iv)  does not discriminate on the basis of race,
    9-1  color, creed, religion, or gender in its provision of services.
    9-2  (9)  "Non-profit supporting entities" means non-profit entities
    9-3  created by the hospital or its parent entity to further the
    9-4  charitable purposes of the hospital and that are owned or
    9-5  controlled by the hospital or its parent entity.
    9-6  (10)  "Research related costs" means those amounts defined as
    9-7  research related costs in Subchapter C, Section 311.031(11), Health
    9-8  and Safety Code.
    9-9  (11)  "Tax-exempt benefits" means all of the following, calculated
   9-10  in accordance with generally accepted accounting principles and
   9-11  practices for hospitals for tax purposes:
   9-12        (a)  the dollar amount of federal, state, and local taxes
   9-13  foregone by a non-profit hospital and its non-profit supporting
   9-14  entities.  For purposes of this definition, federal, state, and
   9-15  local taxes includes income, franchise, ad valorem, and sales tax;
   9-16        (b)  the dollar amount of contributions received by a
   9-17  non-profit hospital and its non-profit supporting entities; and
   9-18        (c)  the value of tax-exempt bond financing received by a
   9-19  non-profit hospital and its non-profit supporting entities.
   9-20  (12)  "Subsidized health services" means those amounts defined as
   9-21  subsidized health services in Subchapter C, Section 331.031(12),
   9-22  Health and Safety Code.
   9-23  (13)  "Unreimbursed costs" means costs as defined in Subchapter C,
   9-24  Section 311.031(13), Health and Safety Code.
   9-25  Section 311.041.  Duty of Non-Profit Hospitals to Provide Community
   9-26  Benefits.
   9-27  (a)  A non-profit hospital shall provide health care services to
   10-1  the community and shall comply with all federal, state and local
   10-2  government requirements for tax exemption.  These health care
   10-3  services to the community shall include charity care and may
   10-4  include other components of community benefits as those terms are
   10-5  defined in Section 311.031 and 311.040 of the Health and Safety
   10-6  Code.
   10-7  (b)  In order to qualify as a charitable organization under Section
   10-8  11.18, Section 151.310, and Section 171.063 of the Tax Code and to
   10-9  satisfy the requirements of this Subchapter, a non-profit hospital
  10-10  shall provide community benefits, which includes charity care, in
  10-11  an amount that satisfies the requirements of Section 311.043 of
  10-12  this Subchapter.  A determination of the amount of charity care
  10-13  provided by a hospital shall be based upon the most recently
  10-14  completed and audited prior fiscal year of the hospital.
  10-15  (c)  Reductions in the amount of community benefits, which includes
  10-16  charity care, provided by a non-profit hospital shall be considered
  10-17  reasonable when the financial reserves of the hospital are reduced
  10-18  to a level that the hospital would be in violation of any
  10-19  applicable bond requirements, when necessary to prevent the
  10-20  hospital from endangering its ability to continue operations, or if
  10-21  the hospital, as a result of a natural or other disaster, is
  10-22  required to substantially curtail its operations.
  10-23  (d)  A hospital's admissions policy must provide for the admission
  10-24  of financially indigent and medically indigent persons pursuant to
  10-25  its charity care requirements as set forth in this Subchapter.
  10-26  Section 311.042.  Community Benefits Planning by Non-Profit
  10-27  Hospitals.
   11-1  (a)  A non-profit hospital shall develop:
   11-2        (1)  an organizational mission statement that identifies the
   11-3  hospital's commitment to serving the health care needs of the
   11-4  community; and
   11-5        (2)  a community benefits plan defined as an operational plan
   11-6  for serving the community's health care needs that sets out goals
   11-7  and objectives for providing community benefits that include
   11-8  charity care, as both the terms community benefits and charity care
   11-9  are defined by Section 311.040, and that identifies the population
  11-10  and communities served by the hospital.
  11-11  (b)  When developing the community benefits plan, the hospital
  11-12  shall consider the health care needs of the community as determined
  11-13  by community-wide needs assessments.  For purposes of this
  11-14  subsection, "community" means the primary geographic area and
  11-15  patient categories for which the hospital provides health care
  11-16  services; provided, however, that the primary geographic area shall
  11-17  at least encompass the entire county in which the hospital is
  11-18  located.
  11-19  (c)  The hospital shall include at least the following elements in
  11-20  the community benefits plan:
  11-21        (1)  mechanisms to evaluate the plan's effectiveness,
  11-22  including but not limited to, a method for soliciting the views of
  11-23  the communities served by the hospital;
  11-24        (2)  measurable objectives to be achieved within a specified
  11-25  timeframe; and
  11-26        (3)  a budget for the plan.
  11-27  Section 311.043.  Community Benefits and Charity Care Requirements
   12-1        (a)  A non-profit hospital shall make a determination each
   12-2  year concerning the standard by which the hospital will satisfy the
   12-3  requirements of Section 11.18, Section 151.310, and Section 171.063
   12-4  of the Tax Code and this Subchapter to provide community benefits,
   12-5  which includes charity care.  This determination shall be made no
   12-6  later than the 30th day after the date on which the hospital's
   12-7  fiscal year begins, by filing a statement of election with the
   12-8  Bureau of State Health Policy and Data Analysis at the department
   12-9  and with the Chief Appraiser of the local appraisal district.
  12-10        (b)  A non-profit hospital may elect to provide community
  12-11  benefits, which includes charity care, according to any of the
  12-12  following standards:
  12-13              (1)  charity care is provided at a level which is
  12-14  reasonable in relation to the community needs, as determined
  12-15  through the community needs assessment, the available resources of
  12-16  the hospital, and the federal and state tax-exempt benefits
  12-17  received by the hospital;
  12-18              (2)  charity care is provided in an amount equal to
  12-19  four per cent of the hospital's net patient revenue; or
  12-20              (3)  charity care is provided in an amount equal to one
  12-21  hundred per cent of the hospital's tax-exempt benefits, excluding
  12-22  federal income tax.
  12-23        (c)  The providing of charity care in accordance with
  12-24  subsection (b)(1) of this Section shall be guided by the prudent
  12-25  business judgment of the board of directors who will ultimately
  12-26  determine the appropriate level of charity care based upon the
  12-27  community needs, the available resources of the hospital, the
   13-1  tax-exempt benefits received by the hospital, and other factors
   13-2  that may be unique to the hospital.  These criterium shall not be
   13-3  determinative factors, but shall be guidelines contributing to the
   13-4  board of director's decision, along with other factors which may be
   13-5  unique to the hospital.  The formulas contained in (b)(2) and
   13-6  (b)(3) shall also not be considered determinative of a reasonable
   13-7  amount of charity care.
   13-8  Section 311.044.  Annual Report of Community Benefits Plan.
   13-9  (a)  A non-profit hospital shall prepare an annual report of the
  13-10  community benefits plan and shall include in the report the
  13-11  following information:
  13-12        (1)  the hospital's mission statement;
  13-13        (2)  a disclosure of the health care needs of the community
  13-14  that were considered in developing the hospital's community
  13-15  benefits plan pursuant to Section 311.042(b); and
  13-16        (3)  a disclosure of the amount and types of community
  13-17  benefits, including charity care, actually provided.  Charity care
  13-18  shall be reported as a separate item from other community benefits.
  13-19  (b)  A non-profit hospital shall file the annual report of the
  13-20  community benefits plan with the Bureau of State Health Policy and
  13-21  Data Analysis at the department.  The report shall be filed no
  13-22  later than 120 days after the end of the hospital's fiscal year;
  13-23  provided, however, that the first report shall be filed no later
  13-24  than March 30, 1995.
  13-25  (c)  A non-profit hospital shall prepare a statement that notifies
  13-26  the public that the annual report of the community benefits plan is
  13-27  public information; that it is filed with the department; and that
   14-1  it is available to the public upon request from the department.
   14-2  The statement shall be posted in prominent places throughout the
   14-3  hospital, including but not limited to the emergency room waiting
   14-4  area and the admissions office waiting area.  The statement shall
   14-5  also be printed in the hospital patient guide or other material
   14-6  that provides the patient with information about the admissions
   14-7  criteria of the hospital.
   14-8  Section 311.045.  Remedies.
   14-9  The department may assess a civil penalty against a non-profit
  14-10  hospital that fails to make a report of the community benefits plan
  14-11  as required under this subchapter.
  14-12        (a)  The penalty may not exceed $1000 for each day the report
  14-13  is delinquent after the date upon which such reports are due.
  14-14        (b)  No penalty will be assessed against a hospital under
  14-15  Subsection (a) until 10 business days have elapsed after written
  14-16  notification to the hospital of its failure to file a report.
  14-17  Section 311.046.  Rights and Remedies.
  14-18  The rights and remedies provided for in this Subchapter shall not
  14-19  limit, affect, change, or repeal any other statutory or common-law
  14-20  rights or remedies available to the state or a non-profit hospital.
  14-21  SECTION 5.  Chapter 11, Subchapter B, Section 11.18(d)(1), Tax
  14-22  Code, is amended to read as follows:
  14-23        (1)  providing medical care without regard to the
  14-24  beneficiaries ability to pay<;>, which in the case of a non-profit
  14-25  hospital means providing charity care and community benefits as set
  14-26  forth in (d)(1)(A), (B) or (C) below:
  14-27        (A)  charity care is provided at a level which is reasonable
   15-1  in relation to the community needs, as determined through the
   15-2  community needs assessment, the available resources of the
   15-3  hospital, and the tax-exempt benefits received by the hospital;
   15-4        (B)  charity care is provided in an amount equal to four per
   15-5  cent of the hospital's net patient revenue; or
   15-6        (C)  charity care is provided in an amount equal to one
   15-7  hundred per cent of the hospital's tax-exempt benefits, excluding
   15-8  federal income tax.
   15-9        For purposes of this subsection, the terms "charity care",
  15-10  "net patient revenues", "non-profit hospital", and "tax-exempt
  15-11  benefits" have the meanings set forth in Section 311.031 and
  15-12  311.040 of the Health and Safety Code.  A determination of the
  15-13  amount of community benefits and charity care provided by a
  15-14  hospital and the hospital's compliance with the requirements of
  15-15  Section 311.043 of the Health and Safety Code shall be based upon
  15-16  the most recently completed and audited prior fiscal year of the
  15-17  hospital.
  15-18        The requirements of this subsection shall not apply to the
  15-19  extent a hospital demonstrates that reductions in the amount of
  15-20  community benefits or charity care are necessary to maintain
  15-21  financial reserves at a level required by a bond covenant, are
  15-22  necessary to prevent the hospital from endangering its ability to
  15-23  continue operations, or if the hospital, as a result of a natural
  15-24  or other disaster, is required to substantially curtail its
  15-25  operations.
  15-26  SECTION 6.  Chapter 151, Subchapter H, Section 151.310, Tax Code,
  15-27  is amended by adding a new subsection (e) to read as follows:
   16-1  (e)  A non-profit hospital that qualifies for an exemption under
   16-2  subsection (A)(2) of this section shall provide charity care and
   16-3  community benefits as set forth in (e)(1), (2), or (3) below:
   16-4        (1)  charity care is provided at a level which is reasonable
   16-5  in relation to the community needs assessment, the available
   16-6  resources of the hospital, and the tax-exempt benefits received by
   16-7  the hospital;
   16-8        (2)  charity care is provided in an amount equal to four
   16-9  percent of the hospital's net patient revenue; or
  16-10        (3)  charity care is provided in an amount equal to one
  16-11  hundred percent of the hospital's tax-exempt benefits, excluding
  16-12  federal income tax.
  16-13        For purposes of this subsection, the terms "charity care",
  16-14  "net patient revenues", "non-profit hospital", and "tax-exempt
  16-15  benefits" have the meaning set forth in Section 311.031 and 311.040
  16-16  of the Health and Safety Code.  A determination of the amount of
  16-17  community benefits and charity care provided by a hospital and the
  16-18  hospital's compliance with the requirements of this subsection and
  16-19  Section 311.043 of the Health and Safety Code shall be based upon
  16-20  the most recently completed and audited prior fiscal year of the
  16-21  hospital.
  16-22        The requirement of this subsection shall not apply to the
  16-23  extent a hospital demonstrates that reductions in the amount of
  16-24  community benefits or charity care are necessary to maintain
  16-25  financial reserves at a level required by a bond covenant, are
  16-26  necessary to prevent the hospital from endangering its ability to
  16-27  continue operations, or if the hospital, as a result of a natural
   17-1  or other disaster, is required to substantially curtail its
   17-2  operations.
   17-3  SECTION 7.  Chapter 171, Subchapter B, Section 171.063(a)(1), Tax
   17-4  Code, is amended to read as follows:
   17-5  (1)  a nonprofit corporation exempted from the federal tax under
   17-6  Section 501(c)(3), (4), (5), (6), or (7) of the Internal Revenue
   17-7  Code of 1954, as it existed on January 1, 1975; which in the case
   17-8  of a non-profit hospital means a hospital providing charity care
   17-9  and community benefits as set forth in (a)(1)(A), (B), or (C)
  17-10  below:
  17-11        (A)  charity care is provided at a level which is reasonable
  17-12  in relation to the community needs, as determined through the
  17-13  community needs assessment, the available resources of the
  17-14  hospital, and the tax-exempt benefits received by the hospital;
  17-15        (B)  charity care is provided in an amount equal to four
  17-16  percent of the hospital's net patient revenue; or
  17-17        (C)  charity care is provided in an amount equal to one
  17-18  hundred percent of the hospital's tax-exempt benefits, excluding
  17-19  federal income tax.
  17-20        For purposes of this subsection, the terms "charity care",
  17-21  "net patient revenues", "non-profit hospital", and "tax-exempt
  17-22  benefits" have the meaning set forth in Section 311.031 and 311.040
  17-23  of the Health and Safety Code.  A determination of the amount of
  17-24  community benefits and charity care provided by a hospital and the
  17-25  hospital's compliance with the requirements of this subsection and
  17-26  Section 311.043 of the Health and Safety Code shall be based upon
  17-27  the most recently completed and audited prior fiscal year of the
   18-1  hospital.
   18-2        The requirement of this subsection shall not apply to the
   18-3  extent a hospital demonstrates that reductions in the amount of
   18-4  community benefits or charity care are necessary to maintain
   18-5  financial reserves at a level required by a bond covenant,
   18-6  necessary to prevent the hospital from endangering its ability to
   18-7  continue operations, or if the hospital, as a result of a natural
   18-8  or other disaster, is required to substantially curtail its
   18-9  operations.
  18-10  SECTION 8.  If any provisions of the amendments made to Subchapter
  18-11  C, or of Subchapter D, are or become invalid, illegal, or
  18-12  unenforceable in any respect, the remaining provisions shall not be
  18-13  in any way affected or impaired.
  18-14  SECTION 9.  This Act takes effect September 1, 1993.
  18-15  SECTION 10.  The importance of this legislation and the crowded
  18-16  condition of the calendars in both houses create an emergency and
  18-17  an imperative public necessity that the constitutional rule
  18-18  requiring bills to be read on three several days in each house be
  18-19  suspended, and this rule is hereby suspended.