1-1  By:  Hirschi (Senate Sponsor - Carriker)              H.B. No. 2790
    1-2        (In the Senate - Received from the House May 17, 1993;
    1-3  May 19, 1993, read first time and referred to Committee on
    1-4  Intergovernmental Relations; May 25, 1993, reported adversely, with
    1-5  favorable Committee Substitute by the following vote:  Yeas 7, Nays
    1-6  0; May 25, 1993, sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Armbrister         x                               
   1-10        Leedom             x                               
   1-11        Carriker           x                               
   1-12        Henderson                                     x    
   1-13        Madla                                         x    
   1-14        Moncrief           x                               
   1-15        Patterson          x                               
   1-16        Rosson             x                               
   1-17        Shapiro                                       x    
   1-18        Wentworth          x                               
   1-19        Whitmire                                      x    
   1-20  COMMITTEE SUBSTITUTE FOR H.B. No. 2790                By:  Carriker
   1-21                         A BILL TO BE ENTITLED
   1-22                                AN ACT
   1-23  relating to county responsibility for indigent health care
   1-24  services.
   1-25        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-26        SECTION 1.  Section 61.028, Health and Safety Code, is
   1-27  amended to read as follows:
   1-28        Sec. 61.028.  MANDATORY AND OPTIONAL HEALTH CARE SERVICES.
   1-29  (a)  A county shall, in accordance with department rules adopted
   1-30  under Section 61.006, provide:
   1-31              (1)  inpatient and outpatient hospital services;
   1-32              (2)  rural health clinics;
   1-33              (3)  laboratory and X-ray services;
   1-34              (4)  family planning services;
   1-35              (5)  physician services;
   1-36              (6)  payment for not more than three prescription drugs
   1-37  a month; and
   1-38              (7)  skilled nursing facility services, regardless of
   1-39  the patient's age.
   1-40        (b)  A county may provide the following optional health care
   1-41  services and credit the assistance toward eligibility for state
   1-42  assistance:
   1-43              (1)  durable medical supplies and equipment; and
   1-44              (2)  primary health care services as defined under
   1-45  Section 31.002(a).
   1-46        (c)  The county may provide <additional> health care services
   1-47  in addition to the mandatory and optional services, but may not
   1-48  credit the assistance toward eligibility for state assistance.
   1-49        SECTION 2.  Sections 61.037(a), (b), and (d), Health and
   1-50  Safety Code, are amended to read as follows:
   1-51        (a)  The department may distribute funds as provided by this
   1-52  subchapter to eligible counties to assist the counties in providing
   1-53  mandatory and optional health care services to their eligible
   1-54  county residents.
   1-55        (b)  Except as provided by Subsection (c) or (d), to be
   1-56  eligible for state assistance, a county must:
   1-57              (1)  spend in a state fiscal year at least 10 percent
   1-58  of the county general revenue levy for that year to administer a
   1-59  county indigent health care program and provide mandatory and
   1-60  optional health care services to its eligible county residents who
   1-61  qualify for assistance under Section 61.006; and
   1-62              (2)  notify the department, not later than the seventh
   1-63  day after the date on which the county reaches the expenditure
   1-64  level, that the county has spent at least eight percent of the
   1-65  applicable county general revenue levy for that year to provide
   1-66  mandatory and optional health care services to its eligible county
   1-67  residents who qualify for assistance under Section 61.006.
   1-68        (d)  If a hospital district is located in part but not all of
    2-1  a county, that county's appraisal district shall determine the
    2-2  taxable value of the property located inside the county but outside
    2-3  the hospital district.  In determining eligibility for state
    2-4  assistance, that county shall consider only the county general
    2-5  revenue levy resulting from the property located outside the
    2-6  hospital district.  A county is eligible for state assistance if:
    2-7              (1)  the county spends in a state fiscal year at least
    2-8  10 percent of the county general revenue levy for that year
    2-9  resulting from the property located outside the hospital district
   2-10  to provide mandatory and optional health care services to its
   2-11  eligible county residents who qualify for assistance under Section
   2-12  61.006; and
   2-13              (2)  the county complies with the other requirements of
   2-14  this subchapter.
   2-15        SECTION 3.  Section 61.038(b), Health and Safety Code, is
   2-16  amended to read as follows:
   2-17        (b)  State funds provided under this section to a county must
   2-18  be equal to at least 80 percent of the actual payment for mandatory
   2-19  and optional health care services for the county's eligible
   2-20  residents during the remainder of the state fiscal year after the
   2-21  10 percent expenditure level is reached.
   2-22        SECTION 4.  Section 61.041(b), Health and Safety Code, is
   2-23  amended to read as follows:
   2-24        (b)  The department shall establish requirements relating to:
   2-25              (1)  documentation required to verify the eligibility
   2-26  of residents to whom the county provides assistance; and
   2-27              (2)  county expenditures for mandatory and optional
   2-28  health care services.
   2-29        SECTION 5.  Subchapter B, Chapter 61, Health and Safety Code,
   2-30  is amended by adding Sections 61.042-61.044 to read as follows:
   2-31        Sec. 61.042.  EMPLOYMENT SERVICES PROGRAM.  (a)  A county may
   2-32  establish procedures consistent with those used by the department
   2-33  under Chapter 31, Human Resources Code, for administering an
   2-34  employment services program and requiring an applicant or eligible
   2-35  resident to register for work with the Texas Employment Commission.
   2-36        (b)  The county shall notify all persons with pending
   2-37  applications and eligible residents of the employment service
   2-38  program requirements not less than 30 days before the program is
   2-39  established.
   2-40        Sec. 61.043.  PREVENTION AND DETECTION OF FRAUD.  (a)  The
   2-41  county may adopt reasonable procedures for minimizing the
   2-42  opportunity for fraud, for establishing and maintaining methods for
   2-43  detecting and identifying situations in which a question of fraud
   2-44  may exist, and for administrative hearings to be conducted on the
   2-45  possibility of disqualifying a person if fraud is found.
   2-46        (b)  Procedures established by a county for administrative
   2-47  hearings conducted under this section shall provide for appropriate
   2-48  due process, including procedures for appeals.
   2-49        Sec. 61.044.  SUBROGATION.  (a)  The filing of an application
   2-50  for or receipt of services constitutes an assignment of the
   2-51  applicant's or recipient's right of recovery from:
   2-52              (1)  personal insurance;
   2-53              (2)  other sources; or
   2-54              (3)  another person for personal injury caused by the
   2-55  other person's negligence or wrong.
   2-56        (b)  A person who applies for or receives services shall
   2-57  inform the county, at the time of application or at any time during
   2-58  eligibility, of any unsettled tort claim that may affect medical
   2-59  needs and of any private accident or sickness insurance coverage
   2-60  that is or may become available.  An applicant or eligible resident
   2-61  shall inform the county of any injury that is caused by the act or
   2-62  failure to act of some other person.  An applicant or eligible
   2-63  resident shall inform the county as required by this subsection
   2-64  within 10 days of the date the person learns of the person's
   2-65  insurance coverage, tort claim, or potential cause of action.
   2-66        (c)  A claim for damages for personal injury does not
   2-67  constitute grounds for denying or discontinuing services under this
   2-68  chapter.
   2-69        (d)  A separate and distinct cause of action in favor of the
   2-70  county is hereby created, and the county may, without written
    3-1  consent, take direct civil action in any court of competent
    3-2  jurisdiction.  A suit brought under this section need not be
    3-3  ancillary to or dependent on any other action.
    3-4        (e)  The county's right of recovery is limited to the amount
    3-5  of the cost of services paid by the county.  Other subrogation
    3-6  rights granted under this section are limited to the cost of the
    3-7  services provided.
    3-8        (f)  An applicant or eligible resident who knowingly and
    3-9  intentionally fails to disclose the information required by
   3-10  Subsection (b) commits a Class C misdemeanor.
   3-11        (g)  An applicant or eligible resident is subject to denial
   3-12  of services under this chapter following an administrative hearing.
   3-13        SECTION 6.  This Act takes effect September 1, 1993, and
   3-14  applies to services provided on or after that date.
   3-15        SECTION 7.  The importance of this legislation and the
   3-16  crowded condition of the calendars in both houses create an
   3-17  emergency and an imperative public necessity that the
   3-18  constitutional rule requiring bills to be read on three several
   3-19  days in each house be suspended, and this rule is hereby suspended.
   3-20                               * * * * *
   3-21                                                         Austin,
   3-22  Texas
   3-23                                                         May 25, 1993
   3-24  Hon. Bob Bullock
   3-25  President of the Senate
   3-26  Sir:
   3-27  We, your Committee on Intergovernmental Relations to which was
   3-28  referred H.B. No. 2790, have had the same under consideration, and
   3-29  I am instructed to report it back to the Senate with the
   3-30  recommendation that it do not pass, but that the Committee
   3-31  Substitute adopted in lieu thereof do pass and be printed.
   3-32                                                         Armbrister,
   3-33  Chairman
   3-34                               * * * * *
   3-35                               WITNESSES
   3-36                                                  FOR   AGAINST  ON
   3-37  ___________________________________________________________________
   3-38  Name:  John H. Dombroski                                       x
   3-39  Representing:  Tx Department of Health
   3-40  City:  Austin
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   3-42  Name:  Karen Norris                              x
   3-43  Representing:  Tx Assoc. of Counties
   3-44  City:  Austin
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   3-46  Name:  Jim Allison                               x
   3-47  Representing:  County Judges & Commis. Assoc
   3-48  City:  Austin
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