By: Barrientos S.B. No. 710
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the responsibility of certain counties to provide
1-2 health care services to eligible residents and to transfers of
1-3 health care functions from municipalities to counties.
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. (a) This
1-9 subchapter applies only to a county with a population of at least
1-10 450,000 in which a hospital district is not located.
1-11 (b) The provisions of this subchapter shall not be construed
1-12 to alter the obligations of any municipality, county, public
1-13 hospital, or hospital district under Chapter 61 or other state or
1-14 federal law, except as provided in an agreement made by a county
1-15 and a municipality under Section 121.063(b), or to alter the
1-16 obligations of any hospital under any state or federal laws that
1-17 relate to the provision of emergency services.
1-18 Sec. 121.062. DEFINITION. In this subchapter, "county
1-19 residents" means individuals living throughout the county, even if
1-20 the individuals are also residents of a municipality within the
1-21 county.
1-22 Sec. 121.063. COUNTY HEALTH DEPARTMENT: ASSUMPTION OF
1-23 SERVICES OF MUNICIPALITY. (a) A county subject to this subchapter
1-24 may establish a county health department to coordinate and provide
2-1 health care services to eligible county residents.
2-2 (b) The county and each municipality that is located in
2-3 whole or in part within the boundaries of the county and that
2-4 provides health care services may agree through negotiation and
2-5 after a majority vote of the governing body of the municipality and
2-6 a majority vote of the county commissioners court for the county to
2-7 provide any or all of the health services previously provided by
2-8 the municipality, without regard to whether the municipality is
2-9 obligated to provide those services or is voluntarily providing
2-10 them.
2-11 Sec. 121.064. PROVISION OF HEALTH CARE. (a) The county may
2-12 furnish, directly through the county health department or by
2-13 contract or other arrangement, medical and hospital care for the
2-14 eligible county residents. The county may provide mental health,
2-15 mental retardation, or public health services including public
2-16 health education services.
2-17 (b) The county may provide, finance, organize, and arrange
2-18 for the provision of health care to eligible county residents and
2-19 to other individuals, groups, or government entities who contract
2-20 with the county for health care services.
2-21 (c) The county may:
2-22 (1) authorize the county health department to perform
2-23 its powers and duties under this subchapter directly;
2-24 (2) contract or enter into an interlocal agreement
2-25 with a political subdivision or with a public or private provider,
2-26 without regard to the provider's location;
2-27 (3) purchase or provide insurance; and
3-1 (4) administer or enter into an agreement for the
3-2 administration of one or more managed care programs.
3-3 (d) This section does not affect the duty of any
3-4 nongovernmental entity in the county to provide medical or hospital
3-5 care to county residents. This section shall be construed so that
3-6 it does not supersede or contradict any provision of the Medical
3-7 Practice Act (Article 4495b, Vernon's Texas Civil Statutes).
3-8 Sec. 121.065. HEALTH CARE PRIORITY. In performing its
3-9 powers and duties under this subchapter, a county shall place
3-10 highest priority on the provision of primary care, public health
3-11 education services, and prevention of sickness and accidents in the
3-12 county.
3-13 Sec. 121.066. ELIGIBLE COUNTY RESIDENTS. (a) If an
3-14 agreement between a county and a municipality is made under Section
3-15 121.063(b), the county shall adopt eligibility standards for
3-16 determining whether an individual is an eligible county resident
3-17 for receipt of health care services and shall adopt application,
3-18 documentation, and verification procedures. These eligibility
3-19 standards shall not exclude from eligibility nor reduce service
3-20 levels to any individual who would have been eligible for health
3-21 care services from that municipality or that county prior to an
3-22 agreement that is made under Section 121.063(b).
3-23 (b) If a county resident who is covered by governmental or
3-24 private health insurance would qualify as an eligible county
3-25 resident if the resident was not covered by government or private
3-26 health insurance coverage, the county may furnish health care to
3-27 the resident to the extent the health care is not covered by the
4-1 health insurance coverage if an agreement between a county and a
4-2 municipality is made under Section 121.063(b).
4-3 (c) The county may implement a sliding scale requiring
4-4 payment of a portion of the cost of health care provided to an
4-5 eligible resident or other individual. The sliding scale must be
4-6 based on the individual's family income and may not be set at a
4-7 level that could prevent an eligible indigent county resident from
4-8 obtaining medical or hospital care. A county may contract with a
4-9 municipality, another county, or another political subdivision to
4-10 provide health care services for individuals residing outside that
4-11 county but residing within the boundaries of that municipality,
4-12 county, or political subdivision.
4-13 Sec. 121.067. PAYMENT FOR HEALTH CARE SERVICES. (a) The
4-14 county may collect the charges for medical, hospital, or other
4-15 health care provided to the individual by the county under this
4-16 subchapter from an individual who is not an eligible county
4-17 resident, from a person liable for the individual's support, or
4-18 from a person liable for the individual's illness or injury.
4-19 (b) The county may not collect directly from an eligible
4-20 individual an amount in excess of the amount due for the service
4-21 provided under a sliding scale adopted under Section 121.066.
4-22 (c) If the county finances or provides health care to a sick
4-23 or injured individual who does not reside in the county but for
4-24 whom there is another county, municipality, or public hospital that
4-25 is responsible for the individual's care under Chapter 61, the
4-26 responsible county, municipality, or public hospital shall
4-27 reimburse the county for the health care provided.
5-1 (d) If the county finances or provides health care to a sick
5-2 or injured individual who is confined in a jail facility that is
5-3 not operated by the county and who was not a resident of the county
5-4 before the confinement, the official that operates the jail
5-5 facility shall reimburse the county for the charges for the health
5-6 care services provided. If the county finances or provides health
5-7 care to a sick or injured individual who is confined in a jail
5-8 facility that is operated by the county and who was not a resident
5-9 of the county before the confinement, the official that operates
5-10 the jail facility may collect and shall reimburse the county for
5-11 any health care charges that the official collects from other
5-12 jurisdictions for these individuals.
5-13 Sec. 121.068. RESPONSIBILITY OF MUNICIPALITY. If an
5-14 agreement between a county and a municipality is made under Section
5-15 121.063(b), except as provided by that agreement, the municipality
5-16 may not provide health care services as defined in that agreement
5-17 to eligible county residents even if the individuals are also
5-18 residents of the municipality. Unless specifically provided by the
5-19 agreement, a municipality is not prohibited from receiving funds
5-20 for and providing hospital care through funding a municipal
5-21 hospital authority that provides hospital care to county residents.
5-22 Sec. 121.069. TRANSFER OF FUNCTIONS. (a) Not later than
5-23 the 90th day after the date on which a county to which this
5-24 subchapter applies initiates negotiations under Section 121.063(b),
5-25 the county and each municipality that is located in the county and
5-26 provides health care services shall identify all money the
5-27 municipality expends on health-related matters within that portion
6-1 of the municipality to be covered by the agreement with the county
6-2 made under Section 121.063(b) and all money the county expends on
6-3 health-related matters within the county.
6-4 (b) Not later than the 90th day after the initiation of
6-5 negotiations and at 90-day intervals thereafter, the county shall
6-6 report to the municipality and the municipality shall report to the
6-7 county their respective positions with respect to the negotiations.
6-8 (c) If the county and the municipality do not agree on the
6-9 amount of money expended by the county and the municipality on
6-10 health-related matters, the county and municipality shall submit
6-11 the dispute to binding arbitration. Either party may compel the
6-12 arbitration in accordance with the Texas General Arbitration Act,
6-13 Part 1, Title 10, Revised Statutes (Article 224 et seq., Revised
6-14 Statutes), as amended, as if the dispute were an agreement
6-15 described in Article 224, Revised Statutes, as amended.
6-16 (d) After an agreement has been reached under Section
6-17 121.063(b), the county and the municipality may provide for the
6-18 transfer to the county of municipal employees engaged in the
6-19 provision of health care or related services in that part of the
6-20 municipality. Municipal employees transferred to a county under
6-21 this subsection are entitled, on transfer, to at least the same
6-22 wages paid by the municipality and to comparable employment
6-23 benefits.
6-24 (e) Each municipality may transfer to the county any real or
6-25 personal property that is:
6-26 (1) owned by the municipality;
6-27 (2) located in the county; and
7-1 (3) predominantly dedicated to the provision of health
7-2 care or related services to county residents.
7-3 (f) If the terms of the lease permit assignment and the
7-4 county agrees to the assignment, the municipality may also transfer
7-5 to the county the rights and obligations of the municipality under
7-6 any lease relating to real property that is:
7-7 (1) located in the county; and
7-8 (2) predominantly dedicated to the provision of health
7-9 care or related services to county residents.
7-10 (g) If each party to the contract and assignment agrees,
7-11 each municipality may assign its rights and obligations under any
7-12 contract to which the municipality is a party and which is
7-13 predominantly dedicated to the provision of health care or related
7-14 supplies or services to the residents of the municipality if the
7-15 municipality complied with Chapter 252, Local Government Code, in
7-16 awarding the contract, and the county may accept the rights and
7-17 obligations under these contracts without complying with Chapter
7-18 262, Local Government Code.
7-19 (h) If an agreement between a county and a municipality is
7-20 made under Section 121.063(b), the municipality may not, except as
7-21 provided by that agreement, enter into or renew any contract with
7-22 any person for the provision of health care and related supplies or
7-23 services for county residents after the commencement date of the
7-24 agreement.
7-25 Sec. 121.070. MUNICIPAL TAX ROLLBACK. (a) If an agreement
7-26 between a county and a municipality is made under Section
7-27 121.063(b), the municipality shall designate in the agreement the
8-1 portion of the amount identified under Section 121.069(a) as
8-2 attributable to any sales and use taxes imposed by the municipality
8-3 and the remaining portion as attributable to property tax revenues.
8-4 (b) As an alternative to the municipality reducing its sales
8-5 and use tax and the county enacting a sales and use tax, the
8-6 municipality may pay from its sales and use tax collections for the
8-7 county to perform health services. The amount attributable to any
8-8 sales and use taxes pursuant to Subsection (a) shall be divided by
8-9 the total sales and use tax collections of the municipality to
8-10 calculate a sales and use tax reimbursement rate. The time period
8-11 for such calculation of sales and use taxes shall be the same time
8-12 period for which the amount of health-related expenditures was
8-13 determined pursuant to Section 121.069(a). An agreement between a
8-14 county and a municipality made under Section 121.063(b) shall
8-15 contain a condition requiring that the municipality pay to the
8-16 county from its sales and use tax collections the amount of such
8-17 sales and use taxes which resulted from the application of the
8-18 sales and use tax reimbursement rate to the municipality's total
8-19 sales and use tax collections. The county may use such payments of
8-20 sales and use taxes only for the provision of health care services
8-21 to eligible county residents.
8-22 (c) Notwithstanding Chapter 321, Tax Code, within 30 days
8-23 after approval of an agreement between a county and a municipality
8-24 is made under Section 121.063(b) by both the county and the
8-25 municipality, the municipality shall pass a resolution or order
8-26 that reduces its sales and use tax rate by the same rate increment
8-27 as the county proposes to adopt under Chapter 325, Tax Code, so
9-1 that the reduction takes effect on a date agreed on and specified
9-2 in the agreement made under Section 121.063(b). A resolution or
9-3 order under this subsection shall state the date of the approval of
9-4 the agreement under Section 121.063(b), the date of the resolution,
9-5 the amount of the reduction in the sales and use tax rate, if any,
9-6 the effective date of the sales and use tax reduction, if any, and
9-7 that the reduction, if any, results from the requirement for a
9-8 reduction in tax collections under this subsection. If the
9-9 resolution results in a reduction in the sales and use tax rate,
9-10 the municipal clerk shall send a copy of the resolution or order
9-11 along with a map of the municipality that clearly shows its
9-12 boundaries to the comptroller by United States certified or
9-13 registered mail within seven days after the resolution or order is
9-14 approved by the municipality.
9-15 (d) The municipality shall reduce its last year's
9-16 maintenance and operations expense in calculating its property
9-17 rollback tax rate to reduce the municipality's maximum potential
9-18 tax collections in an amount equal to the amount attributed to its
9-19 property tax revenue under Subsection (a). Section 26.041(a), Tax
9-20 Code, governs the reduction of the property rollback tax rate under
9-21 this subsection.
9-22 Sec. 121.071. DEDICATION OF COUNTY TAX INCREASE. If an
9-23 agreement between a county and a municipality is made under Section
9-24 121.063(b), during the first year of the agreement, the county
9-25 shall dedicate a portion of its total tax revenues for the
9-26 provision of health care services to eligible county residents that
9-27 is at least equal to the amount that the county and the
10-1 municipality identified under Section 121.069(a).
10-2 Sec. 121.072. TIMELY AGREEMENT. An agreement under Section
10-3 121.063(b) must be made before January 1, 1995. An agreement made
10-4 under Section 121.063(b) after January 1, 1995, has no force or
10-5 effect.
10-6 Sec. 121.073. EXPIRATION OF SUBCHAPTER. If an agreement has
10-7 not been made before January 1, 1995, this subchapter shall expire
10-8 January 2, 1995.
10-9 SECTION 2. Subtitle C, Title 3, Tax Code, is amended by
10-10 adding Chapter 325 to read as follows:
10-11 CHAPTER 325. HEALTH SERVICES SALES AND USE TAX FOR
10-12 CERTAIN COUNTIES
10-13 SUBCHAPTER A. GENERAL PROVISIONS
10-14 Sec. 325.001. COUNTY SALES AND USE TAX ACT
10-15 APPLICABLE: EXCEPTION. Subchapters A, C, D, and F, Chapter 323,
10-16 and Section 323.101(d) apply to the tax authorized by this chapter
10-17 in the same manner as that chapter applies to the tax authorized by
10-18 that chapter.
10-19 SUBCHAPTER B. IMPOSITION OF TAX
10-20 Sec. 325.021. APPLICATION. This chapter applies to a county
10-21 with a population of at least 450,000 in which a hospital district
10-22 is not located and that has entered into an agreement with a
10-23 municipality under Subchapter F, Chapter 121, Health and Safety
10-24 Code.
10-25 Sec. 325.022. TAX AUTHORIZED. The commissioners court of a
10-26 county to which this chapter applies may adopt or abolish the sales
10-27 and use tax authorized by this chapter by order or resolution.
11-1 Sec. 325.023. TAX RATE. The rate prescribed for the tax
11-2 authorized under this chapter shall be a multiple of one-fourth of
11-3 one percent and shall be prescribed by a resolution or order of the
11-4 county commissioners court.
11-5 Sec. 325.024. SALES AND USE TAX EFFECTIVE DATE. (a) The
11-6 adoption or abolition of the tax takes effect on the first day of
11-7 the first calendar quarter occurring after the expiration of the
11-8 first complete calendar quarter occurring after the date on which
11-9 the comptroller receives a notice of the order or resolution of the
11-10 county commissioners court.
11-11 (b) If the comptroller determines that the effective date
11-12 provided by Subsection (a) will occur before the comptroller can
11-13 reasonably take the action required to begin collecting the tax or
11-14 to implement the abolition of the tax, the effective date may be
11-15 extended by the comptroller until the first day of the next
11-16 succeeding calendar quarter.
11-17 Sec. 325.025. EFFECT ON OTHER TAXES. Notwithstanding any
11-18 other law, the imposition or abolition of a sales and use tax under
11-19 this chapter does not affect the validity or rate of any other tax
11-20 imposed by another political subdivision that has jurisdiction over
11-21 territory located within the boundaries of the county.
11-22 SUBCHAPTER C. USE OF TAX REVENUE
11-23 Sec. 325.061. USE OF TAX REVENUE. Revenue from a tax
11-24 imposed under this chapter may be used only to provide health
11-25 services to county residents. The county imposing the tax may
11-26 allocate part of the revenue to carrying out the county's duties
11-27 under an agreement made with a municipality under Subchapter F,
12-1 Chapter 121, Health and Safety Code.
12-2 SECTION 3. Section 26.04, Tax Code, is amended by adding
12-3 Subsections (k) and (l) to read as follows:
12-4 (k) This subsection applies to a taxing unit that has agreed
12-5 by written contract to transfer a distinct department, function, or
12-6 activity to another taxing unit and that discontinues operating
12-7 that distinct department, function, or activity if the operation of
12-8 that department, function, or activity in all or a majority of the
12-9 territory of the taxing unit is continued by another existing
12-10 taxing unit or by a new taxing unit. The rollback tax rate of a
12-11 taxing unit to which this subsection applies in the first tax year
12-12 in which a budget is adopted that does not allocate revenue to the
12-13 discontinued department, function, or activity is calculated as
12-14 otherwise provided by this section, except that last year's levy
12-15 used to calculate the effective maintenance and operations rate of
12-16 the unit is reduced by the amount of maintenance and operations tax
12-17 revenue spent by the taxing unit to operate the department,
12-18 function, or activity for the 12 months preceding the month in
12-19 which the calculations required by this chapter are made and in
12-20 which the unit operated the discontinued department, function, or
12-21 activity. If the unit did not operate that department, function,
12-22 or activity for the full 12 months preceding the month in which the
12-23 calculations required by this chapter are made, the unit shall
12-24 reduce last year's levy used for calculating the effective
12-25 maintenance and operations rate of the unit by the amount of the
12-26 revenue spent in the last full fiscal year in which the unit
12-27 operated the discontinued department, function, or activity.
13-1 (l) This subsection applies to a taxing unit that has agreed
13-2 by written contract to accept the transfer of a distinct
13-3 department, function, or activity from another taxing unit and that
13-4 operates a distinct department, function, or activity if the
13-5 operation of a substantially similar department, function, or
13-6 activity in all or a majority of the territory of the taxing unit
13-7 has been discontinued by another taxing unit, including a dissolved
13-8 taxing unit. The rollback tax rate of a taxing unit to which this
13-9 subsection applies in the first tax year after the other taxing
13-10 unit discontinued the substantially similar department, function,
13-11 or activity in which a budget is adopted that allocates revenue to
13-12 the department, function, or activity is calculated as otherwise
13-13 provided by this section, except that last year's levy used to
13-14 calculate the effective maintenance and operations rate of the unit
13-15 is increased by the amount of maintenance and operations tax
13-16 revenue spent by the taxing unit that discontinued operating the
13-17 substantially similar department, function, or activity for the 12
13-18 months preceding the month in which the calculations required by
13-19 this chapter are made and in which the unit operated the
13-20 discontinued department, function, or activity. If the unit did
13-21 not operate the discontinued department, function, or activity for
13-22 the full 12 months preceding the month in which the calculations
13-23 required by this chapter are made, the unit may increase last
13-24 year's levy used to calculate the effective maintenance and
13-25 operations rate by an amount not to exceed the amount of property
13-26 tax revenue spent by the discontinuing unit to operate the
13-27 discontinued department, function, or activity in the last full
14-1 fiscal year in which the discontinuing unit operated the
14-2 department, function, or activity.
14-3 SECTION 4. Subsection (e), Section 26.04, Tax Code, is
14-4 amended to read as follows:
14-5 (e) By August 7 or as soon thereafter as practicable, the
14-6 designated officer or employee shall submit the rates to the
14-7 governing body. He shall publish in a newspaper in the form
14-8 prescribed by the comptroller:
14-9 (1) the effective tax rate, the rollback tax rate, and
14-10 an explanation of how they were calculated;
14-11 (2) the estimated amount of interest and sinking fund
14-12 balances and the estimated amount of maintenance and operation or
14-13 general fund balances remaining at the end of the current fiscal
14-14 year that are not encumbered with or by corresponding existing debt
14-15 obligation, except that for a school district, estimated funds
14-16 necessary for the operation of the district prior to the receipt of
14-17 the first state education aid payment in the succeeding school year
14-18 shall be subtracted from the estimated fund balances;
14-19 (3) a schedule of the unit's debt obligations showing:
14-20 (A) the amount of principal and interest that
14-21 will be paid to service the unit's debts in the next year from
14-22 property tax revenue, including payments of lawfully incurred
14-23 contractual obligations providing security for the payment of the
14-24 principal of and interest on bonds and other evidences of
14-25 indebtedness issued on behalf of the unit by another political
14-26 subdivision;
14-27 (B) the amount by which taxes imposed for debt
15-1 are to be increased because of the unit's anticipated collection
15-2 rate; and
15-3 (C) the total of the amounts listed in
15-4 Paragraphs (A)-(B), less any amount collected in excess of the
15-5 previous year's anticipated collections certified as provided in
15-6 Subsection (b) of this section; <and>
15-7 (4) the amount of additional sales and use tax revenue
15-8 anticipated in calculations under Section 26.041 of this code;
15-9 (5) in the year that a taxing unit calculates an adjustment
15-10 under Subsection (k) or (l), a schedule that includes the following
15-11 elements:
15-12 (A) the name of the unit discontinuing the department,
15-13 function, or activity;
15-14 (B) the amount of property tax revenue spent by the
15-15 unit listed under Paragraph (A) to operate the discontinued
15-16 department, function, or activity in the 12 months preceding the
15-17 month in which the calculations required by this chapter are made;
15-18 and
15-19 (C) the name of the unit that operates a distinct
15-20 department, function, or activity in all or a majority of the
15-21 territory of a taxing unit that has discontinued operating the
15-22 distinct department, function, or activity; and
15-23 (6) in the year following the year in which a taxing unit
15-24 raised its rollback rate as required by Subsection (k), a schedule
15-25 that includes the following elements:
15-26 (A) the amount of property tax revenue spent by the
15-27 unit to operate the department, function, or activity for which the
16-1 taxing unit raised the rollback rate as required by Subsection (k)
16-2 for the 12 months preceding the month in which the calculations
16-3 required by this chapter are made; and
16-4 (B) the amount published by the unit in the preceding
16-5 tax year under Subdivision (5)(B).
16-6 SECTION 5. The change in law made by this Act applies only
16-7 to a taxing unit that adopts its tax rate on or after the effective
16-8 date of this Act.
16-9 SECTION 6. The importance of this legislation and the
16-10 crowded condition of the calendars in both houses create an
16-11 emergency and an imperative public necessity that the
16-12 constitutional rule requiring bills to be read on three several
16-13 days in each house be suspended, and this rule is hereby suspended,
16-14 and that this Act take effect and be in force from and after its
16-15 passage, and it is so enacted.