By:  Maxey                                            H.B. No. 1715
       73R6071 DLF-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the responsibility of certain counties to provide
    1-3  health care services to eligible indigent residents.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Chapter 121, Health and Safety Code, is amended
    1-6  by adding Subchapter F to read as follows:
    1-7     SUBCHAPTER F.  COUNTY HEALTH DEPARTMENTS IN CERTAIN COUNTIES
    1-8        Sec. 121.061.  APPLICATION OF SUBCHAPTER.  This subchapter
    1-9  applies only to a county with a population of at least 450,000 and
   1-10  in which a hospital district is not located.
   1-11        Sec. 121.062.  COUNTY HEALTH DEPARTMENT; ASSUMPTION OF DUTIES
   1-12  OF MUNICIPALITY.  (a)  A county subject to this subchapter may
   1-13  establish a county health department to coordinate and provide
   1-14  health care services to eligible indigent residents throughout the
   1-15  county, including any portion of the county located within the
   1-16  boundaries of a municipality, in accordance with an agreement made
   1-17  under this section.
   1-18        (b)  The county and any municipality that is located in whole
   1-19  or in part within the boundaries of the county and that provides
   1-20  health care services may agree through negotiation and after a
   1-21  majority vote of the governing body of the municipality and the
   1-22  county commissioners court, for the county to provide any or all of
   1-23  the health services previously provided by the municipality.
   1-24        Sec. 121.063.  PROVISION OF HEALTH CARE.  (a)  The county may
    2-1  furnish, directly through the county health department or by
    2-2  contract or other arrangement, medical and hospital care for the
    2-3  county's eligible indigent residents.  The county may, but is not
    2-4  required to, provide mental health, mental retardation, or public
    2-5  health services other than public health education services.
    2-6        (b)  The county may provide, finance, organize, and arrange
    2-7  for the provision of health care to eligible indigent residents and
    2-8  to other individuals, groups, or government entities who contract
    2-9  with the county for health care services.
   2-10        (c)  The county may:
   2-11              (1)  authorize the county health department to perform
   2-12  its powers and duties under this subchapter directly;
   2-13              (2)  contract or enter into an interlocal agreement
   2-14  with a political subdivision or with a public or private provider,
   2-15  without regard to the provider's location;
   2-16              (3)  purchase or provide insurance; and
   2-17              (4)  administer or enter into an agreement for the
   2-18  administration of one or more managed care programs.
   2-19        (d)  This section does not affect the duty of a
   2-20  nongovernmental entity in the county to provide medical or hospital
   2-21  care to county residents.  This section does not supersede or
   2-22  contradict a provision of the Medical Practice Act (Article 4495b,
   2-23  Vernon's Texas Civil Statutes).
   2-24        Sec. 121.064.  HEALTH CARE PRIORITY.  In performing its
   2-25  powers and duties under this subchapter, a county shall place
   2-26  highest priority on the provision of primary care and public health
   2-27  education  services and on prevention of sickness and accidents in
    3-1  the county.
    3-2        Sec. 121.065.  ELIGIBLE INDIGENT RESIDENTS.  (a)  The county
    3-3  shall adopt eligibility standards for determining whether an
    3-4  individual is an eligible indigent resident and shall adopt
    3-5  application, documentation, and verification procedures.
    3-6        (b)  If a county resident would qualify as an eligible
    3-7  indigent resident if the resident was not covered by government or
    3-8  private health insurance coverage, the county shall furnish health
    3-9  care to the resident to the extent the health care is not covered
   3-10  by the health insurance coverage.
   3-11        (c)  The county may implement a sliding scale requiring
   3-12  payment of a portion of the cost of health care provided to an
   3-13  eligible indigent resident or other individual.  The sliding scale
   3-14  must be based on the individual's income and may not be set at a
   3-15  level that would prevent an eligible indigent resident from
   3-16  obtaining medical or hospital care.
   3-17        Sec. 121.066.  PAYMENT FOR HEALTH CARE SERVICES.  (a)  The
   3-18  county may collect from a patient who is not an eligible indigent
   3-19  resident, from a person liable for the patient's support, or from a
   3-20  person liable for the patient's illness or injury the cost of
   3-21  medical, hospital, or other health care provided to the patient by
   3-22  the county under this subchapter.
   3-23        (b)  The county may not collect directly from an eligible
   3-24  indigent patient an amount in excess of the amount due for the
   3-25  service provided under a sliding scale adopted under Section
   3-26  121.065.
   3-27        (c)  If the county finances or provides health care to a sick
    4-1  or injured patient who does not reside in the county but for whom
    4-2  there is a county, municipality, or public hospital that is
    4-3  responsible for the patient's care under Chapter 61, the
    4-4  responsible county, municipality, or public hospital shall
    4-5  reimburse the county for the health care provided.
    4-6        (d)  If the county finances or provides health care to a sick
    4-7  or injured patient who is confined in a jail facility and who is
    4-8  not a resident of the county, the sheriff or police chief of the
    4-9  county or municipality that operates the jail facility shall
   4-10  reimburse the county for the health care provided.
   4-11        Sec. 121.067.  RESPONSIBILITY OF MUNICIPALITY.  If an
   4-12  agreement between a county and a municipality is made under Section
   4-13  121.062(b), the municipality may not, except as provided by that
   4-14  agreement, provide health care services to county residents,
   4-15  regardless of whether the individuals are also residents of the
   4-16  municipality.
   4-17        Sec. 121.068.  TRANSFER OF FUNCTIONS.  (a)  Not later than
   4-18  the 90th day after the date a county determines that it has become
   4-19  subject to this subchapter and initiates negotiations under Section
   4-20  121.062(b), the county and each municipality located in the county
   4-21  shall identify all money the municipality expends on health-related
   4-22  matters within that portion of the municipality located in the
   4-23  county.
   4-24        (b)  Not later than the 90th day after the initiation of
   4-25  negotiations and at 90-day intervals thereafter, the county shall
   4-26  report to the municipality and the municipality shall report to the
   4-27  county their respective positions with respect to the negotiations.
    5-1        (c)  If the county and the municipality do not agree on the
    5-2  amount of money expended by the municipality on health-related
    5-3  matters, the county and municipality shall submit the dispute to
    5-4  binding arbitration.  Either party may compel the arbitration in
    5-5  accordance with Article 225, Revised Statutes.
    5-6        (d)  After an agreement has been reached under Section
    5-7  121.062(b), the county and the municipality may provide for the
    5-8  transfer to the county of municipal employees engaged in the
    5-9  provision of health care or related services in that part of the
   5-10  municipality.  Municipal employees transferred to a county under
   5-11  this subsection are entitled, on transfer, to at least the same
   5-12  wages paid by the municipality and to comparable employment
   5-13  benefits.
   5-14        (e)  Each municipality may transfer to the county any real
   5-15  property that is:
   5-16              (1)  owned by the municipality;
   5-17              (2)  located in the county; and
   5-18              (3)  predominantly dedicated to the provision of health
   5-19  care or related services to county residents.
   5-20        (f)  To the extent permitted by the terms of a lease
   5-21  contract, the municipality may also transfer to the county the
   5-22  rights of the municipality under any lease relating to real
   5-23  property that is:
   5-24              (1)  located in the county; and
   5-25              (2)  predominantly dedicated to the provision of health
   5-26  care or related services to county residents.
   5-27        (g)  If an agreement between a county and a municipality is
    6-1  made under Section 121.062(b), the municipality may not, except as
    6-2  provided by that agreement, enter into or renew a contract with any
    6-3  person for the provision of health care and related services for
    6-4  county residents after the date of the agreement.  If each party to
    6-5  the contract agrees, the municipality's rights under a contract may
    6-6  be transferred to the county.
    6-7        Sec. 121.069.  MUNICIPAL TAX ROLLBACK.  (a)  If an agreement
    6-8  between a county and a municipality is made under Section
    6-9  121.062(b), the municipality shall designate a portion of the
   6-10  amount identified under Section 121.068(a) as attributable to any
   6-11  sales and use taxes imposed by the municipality and the remaining
   6-12  portion as attributable to property tax revenues.
   6-13        (b)  Notwithstanding Chapter 321, Tax Code, the municipality
   6-14  shall reduce its sales and use tax rate as necessary to reduce the
   6-15  municipality's tax collections in an amount equal to the amount
   6-16  attributed to its sales and use taxes under Subsection (a).  The
   6-17  municipality shall send notice of the tax change to the comptroller
   6-18  in accordance with Section 321.405(b), Tax Code.  The change takes
   6-19  effect as provided by Section 321.102(a), Tax Code.
   6-20        (c)  The municipality shall reduce its property tax rate to
   6-21  reduce the municipality's tax collections in an amount equal to the
   6-22  amount attributed to its property tax revenue under Subsection (a).
   6-23  Section 26.041(a), Tax Code, governs the reduction of the property
   6-24  tax rate under this subsection.  For purposes of determining the
   6-25  "sales tax gain rate" under Section 26.041(a), Tax Code, the
   6-26  municipality shall treat the amount designated as attributable to
   6-27  property tax revenues under Subsection (a) as "the revenue that
    7-1  will be generated by the additional sales and use tax."
    7-2        Sec. 121.070.  TIMELY AGREEMENT.  An agreement under Section
    7-3  121.062(b) must be made before September 1, 1994.  An agreement
    7-4  made under Section 121.062(b) after September 1, 1994, has no force
    7-5  or effect.
    7-6        SECTION 2.  Subtitle C, Title 3, Tax Code, is amended by
    7-7  adding Chapter 325 to read as follows:
    7-8          CHAPTER 325.  HEALTH SERVICES SALES AND USE TAX FOR
    7-9                           CERTAIN COUNTIES
   7-10                   SUBCHAPTER A.  GENERAL PROVISIONS
   7-11        Sec. 325.001.  COUNTY SALES AND USE TAX ACT APPLICABLE;
   7-12  EXCEPTION.  (a)  Except to the extent that a provision of this
   7-13  chapter applies, Chapter 323 applies to the tax authorized by this
   7-14  chapter in the same manner as that chapter applies to the tax
   7-15  authorized by that chapter.
   7-16                   SUBCHAPTER B.  IMPOSITION OF TAX
   7-17        Sec. 325.021.  APPLICATION.  This chapter applies to a county
   7-18  with a population of at least 450,000 in which a hospital district
   7-19  is not located and that has entered into an agreement with a
   7-20  municipality under Subchapter F, Chapter 121, Health and Safety
   7-21  Code.
   7-22        Sec. 325.022.  TAX AUTHORIZED.  The commissioners court of a
   7-23  county to which this chapter applies may adopt or abolish the sales
   7-24  and use tax authorized by this chapter by order or resolution.
   7-25        Sec. 325.023.  TAX RATE.  (a)  The rate of the tax authorized
   7-26  by this chapter is the rate prescribed by the resolution or order
   7-27  of the county commissioners court.
    8-1        (b)  Section 323.101(d) does not apply to the tax authorized
    8-2  by this chapter.
    8-3        Sec. 325.024.  SALES AND USE TAX EFFECTIVE DATE.  (a)  The
    8-4  adoption or abolition of the tax takes effect on the first day of
    8-5  the first calendar quarter occurring after the expiration of the
    8-6  first complete calendar quarter occurring after the date on which
    8-7  the comptroller receives a notice of the order or resolution of the
    8-8  county commissioners court.
    8-9        (b)  If the comptroller determines that the effective date
   8-10  provided by Subsection (a) will occur before the comptroller can
   8-11  reasonably take the action required to begin collecting the tax or
   8-12  to implement the abolition of the tax, the effective date may be
   8-13  extended by the comptroller until the first day of the next
   8-14  succeeding calendar quarter.
   8-15        Sec. 325.025.  EFFECT ON OTHER TAXES.   Notwithstanding any
   8-16  other law, the imposition or abolition of a sales and use tax under
   8-17  this chapter does not affect the validity or rate of any other tax
   8-18  imposed by another political subdivision that has jurisdiction over
   8-19  territory located within the boundaries of the county.
   8-20                   SUBCHAPTER C.  USE OF TAX REVENUE
   8-21        Sec. 324.061.  USE OF TAX REVENUE.  Revenue from a tax
   8-22  imposed under this chapter may be used only to provide health
   8-23  services in the county.  The county imposing the tax may allocate
   8-24  part of the revenue to carrying out the county's duties under an
   8-25  agreement made with a municipality under Subchapter F, Chapter 121,
   8-26  Health and Safety Code.
   8-27        SECTION 3.  The importance of this legislation and the
    9-1  crowded condition of the calendars in both houses create an
    9-2  emergency and an imperative public necessity that the
    9-3  constitutional rule requiring bills to be read on three several
    9-4  days in each house be suspended, and this rule is hereby suspended,
    9-5  and that this Act take effect and be in force from and after its
    9-6  passage, and it is so enacted.