1-1  By:  Zaffirini                                         S.B. No. 509
    1-2        (In the Senate - Filed February 8, 1995; February 9, 1995,
    1-3  read first time and referred to Committee on Health and Human
    1-4  Services; February 15, 1995, reported favorably by the following
    1-5  vote:  Yeas 9, Nays 0; February 15, 1995, sent to printer.)
    1-6                         A BILL TO BE ENTITLED
    1-7                                AN ACT
    1-8  relating to clarifying the authority of the Health and Human
    1-9  Services Commission to delegate to a health and human services
   1-10  agency the authority to operate all or part of the Medicaid program
   1-11  and to the powers and duties of that agency.
   1-12        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-13        SECTION 1.  CLARIFICATION OF EFFECT OF LEGISLATION.
   1-14  (a)  Chapter 15, Acts of the 72nd Legislature, 1st Called Session,
   1-15  1991 (H.B. 7), as amended by Chapter 747, Acts of the 73rd
   1-16  Legislature, 1993 (H.B. 1510), designated the Health and Human
   1-17  Services Commission as the single state agency to administer
   1-18  medical assistance (Medicaid) funds and authorized the commission
   1-19  to review programs and to implement the transfer of health and
   1-20  human services functions, programs, and activities among the
   1-21  state's health and human services agencies.  In making this
   1-22  designation and authorization, the legislature gave the commission
   1-23  the authority to delegate to any health and human services agency
   1-24  the authority to operate or assist in the operation of any Medicaid
   1-25  program.
   1-26        (b)  Pursuant to this authority, the commission implemented
   1-27  the transfer to various health and human services agencies of the
   1-28  functions, powers, duties, funds, and obligations related to the
   1-29  operation of various Medicaid programs, subject to the
   1-30  administrative authority of the commission.   Specifically, as that
   1-31  authority relates to the Texas Department of Mental Health and
   1-32  Mental Retardation, the commission implemented the transfer of the
   1-33  functions, powers, duties, funds, and obligations of the following
   1-34  Medicaid programs:
   1-35              (1)  case management for the mentally ill;
   1-36              (2)  case management for the mentally retarded;
   1-37              (3)  diagnostic services;
   1-38              (4)  home and community-based services for persons with
   1-39  mental retardation;
   1-40              (5)  home and community-based services--Omnibus Budget
   1-41  Reconciliation Act (OBRA), Pub. L. 100-203;
   1-42              (6)  rehabilitative services;
   1-43              (7)  intermediate care facilities for persons with
   1-44  mental retardation;
   1-45              (8)  intermediate care facilities for persons with
   1-46  related conditions; and
   1-47              (9)  intermediate care facilities dental program.
   1-48        (c)  The legislature declares that:
   1-49              (1)  the transfer of Medicaid programs and the related
   1-50  functions, powers, duties, funds, and obligations to various state
   1-51  agencies, including the Texas Department of Mental Health and
   1-52  Mental Retardation, were valid transfers;
   1-53              (2)  all actions taken in reliance on those transfers
   1-54  are valid; and
   1-55              (3)  the transfer of the powers and duties relating to
   1-56  the operation of a Medicaid program included a transfer of all
   1-57  applicable powers and duties provided by Chapters 21, 22, and 32,
   1-58  Human Resources Code, that relate to the operation of the Medicaid
   1-59  program, including the power and duty to set rates.
   1-60        SECTION 2.  CLARIFYING AMENDMENT.  Section 32.003, Human
   1-61  Resources Code, is amended to read as follows:
   1-62        Sec. 32.003.  DEFINITIONS <DEFINITION OF MEDICAL ASSISTANCE>.
   1-63  In this chapter:
   1-64              (1)  "Board" means the Health and Human Services
   1-65  Commission or the governing body of an agency operating part of the
   1-66  medical assistance program, as appropriate.
   1-67              (2)  "Commissioner" means the Health and Human Services
   1-68  Commission or the commissioner or executive director of an agency
    2-1  operating part of the medical assistance program, as appropriate.
    2-2              (3)  "Department" means the Health and Human Services
    2-3  Commission or an agency operating part of the medical assistance
    2-4  program, as appropriate.
    2-5              (4)  "Medical<, "medical> assistance" includes all of
    2-6  the health care and related services and benefits authorized or
    2-7  provided under federal law for needy individuals of this state.
    2-8        SECTION 3.  CLARIFYING AMENDMENT.  Subsection (o), Section
    2-9  32.024, Human Resources Code, is amended to read as follows:
   2-10        (o)  The department, in its rules and standards governing the
   2-11  scope of hospital and long-term services, shall establish a swing
   2-12  bed program in accordance with federal regulations to provide
   2-13  reimbursement for skilled nursing patients who are served in
   2-14  hospital settings provided that the length of stay is limited to 30
   2-15  days per year and the hospital is located in a county with a
   2-16  population of 100,000 or less.  If the swing beds are used for more
   2-17  than one 30-day length of stay per year, per patient, the hospital
   2-18  must comply with the Minimum Licensing Standards as mandated by
   2-19  Chapter 242, Health and Safety Code <413, Acts of the 53rd
   2-20  Legislature, Regular Session, 1953 (Article 4442(c), Vernon's Texas
   2-21  Civil Statutes)>, and the Medicaid standards for nursing home
   2-22  certification, as promulgated by the department <Texas Department
   2-23  of Human Services>.
   2-24        SECTION 4.  CLARIFYING AMENDMENT.  Subsection (c), Section
   2-25  32.029, Human Resources Code, is amended to read as follows:
   2-26        (c)  If the department elects to make direct vendor payments,
   2-27  the payments shall be made by vouchers and warrants drawn by the
   2-28  comptroller on the proper account <of the Texas Department of Human
   2-29  Services fund>.  The department shall furnish the comptroller with
   2-30  a list of those vendors entitled to payments and the amounts to
   2-31  which each is entitled.  When the warrants are drawn, they must be
   2-32  delivered to the department, which <commissioner, who> shall
   2-33  supervise the delivery to vendors.
   2-34        SECTION 5.  CLARIFYING AMENDMENT.  Subsections (a) and (c),
   2-35  Section 32.030, Human Resources Code, are amended to read as
   2-36  follows:
   2-37        (a)  The medical assistance fund is a special fund in the
   2-38  treasury and constitutes a separate account <in the Texas
   2-39  Department of Human Services fund>.  The fund may be expended only
   2-40  for the purpose of carrying out the provisions of this chapter.
   2-41        (c)  The disproportionate share fund is a <special fund and>
   2-42  separate account <in the Texas Department of Human Services fund>
   2-43  that provides reimbursement each year to hospitals that render a
   2-44  high volume of services to medically indigent persons in the state.
   2-45  Payments from the fund shall be not less than $5 million annually
   2-46  in state funds in excess of the amounts contained in the general
   2-47  appropriations bill as introduced for the 1990-1991 biennium.
   2-48        SECTION 6.  CLARIFYING AMENDMENT.  Subsection (e), Section
   2-49  32.031, Human Resources Code, is amended to read as follows:
   2-50        (e)  Public hospitals, including hospitals owned, operated,
   2-51  or leased by a governmental entity, including a municipality,
   2-52  county, hospital district, or this state, and specifically
   2-53  including a state teaching hospital, may transfer funds to the
   2-54  department <Texas Department of Human Services> for use as state
   2-55  share under the Medicaid disproportionate share program.
   2-56        SECTION 7.  CLARIFYING AMENDMENT.  Subsection (a), Section
   2-57  32.041, Human Resources Code, is amended to read as follows:
   2-58        (a)  Beginning September 1, 1991, the department <Texas
   2-59  Department of Human Services> in consultation with the Medicaid
   2-60  analysis and cost control unit of the Legislative Budget Board
   2-61  shall initiate the planning for a Medicaid managed care
   2-62  demonstration project.
   2-63        SECTION 8.  APPLICATION TO FUND OR ACCOUNT.  (a)  A fund or
   2-64  account, the existence of which is derived from a statute amended
   2-65  by this Act and which is abolished under Section 403.094,
   2-66  Government Code, before the effective date of this Act, is not
   2-67  revived or reenacted by this Act.
   2-68        (b)  The application of Sections 403.094 and 403.095,
   2-69  Government Code, to a fund or account or to the permissible uses of
   2-70  revenue of fund balances is not affected by this Act.
    3-1        SECTION 9.  EMERGENCY.  The importance of this legislation
    3-2  and the crowded condition of the calendars in both houses create an
    3-3  emergency and an imperative public necessity that the
    3-4  constitutional rule requiring bills to be read on three several
    3-5  days in each house be suspended, and this rule is hereby suspended,
    3-6  and that this Act take effect and be in force from and after its
    3-7  passage, and it is so enacted.
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