By Berlanga H.B. No. 3
75R3850 DLF-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to establishing the Texas Healthy Kids Corporation to
1-3 increase access to health care for children.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle E, Title 2, Health and Safety Code, is
1-6 amended by adding Chapter 109 to read as follows:
1-7 CHAPTER 109. TEXAS HEALTHY KIDS CORPORATION
1-8 SUBCHAPTER A. GENERAL PROVISIONS
1-9 Sec. 109.001. DEFINITIONS. In this chapter:
1-10 (1) "Board" means the board of directors of the
1-11 corporation.
1-12 (2) "Child" means an individual younger than 18 years
1-13 of age.
1-14 (3) "Corporation" means the Texas Healthy Kids
1-15 Corporation established under this chapter.
1-16 (4) "Eligible coverage provider" means an entity that
1-17 meets the requirements for providing coverage under the program
1-18 established by the corporation under Section 109.061.
1-19 (5) "Executive director" means the executive director
1-20 of the corporation.
1-21 (6) "Program" means the health benefit program
1-22 provided by the corporation under this chapter.
1-23 Sec. 109.002. TEXAS HEALTHY KIDS FUND. (a) The Texas
1-24 healthy kids fund is a fund with the comptroller. The fund is
2-1 composed of money appropriated to the fund, and the comptroller
2-2 shall transfer to the fund money appropriated to the fund from the
2-3 state treasury.
2-4 (b) The comptroller may invest money in the fund in the same
2-5 manner as the comptroller may invest money in the state treasury.
2-6 (c) The comptroller shall draw warrants from the fund on
2-7 receipt of a voucher signed by an authorized representative of the
2-8 corporation. The board shall file with the comptroller a verified
2-9 copy of a board resolution that designates the authorized
2-10 representatives of the corporation who have authority to sign
2-11 vouchers for payment from the fund.
2-12 Sec. 109.003. BIENNIAL REPORT. Not later than January 1 of
2-13 each odd-numbered year, the corporation shall submit a written
2-14 report to the governor, the lieutenant governor, and the speaker of
2-15 the house of representatives. The report must state the program's
2-16 status and must include a statement of the corporation's financial
2-17 condition for the two years preceding the date of the report.
2-18 Sec. 109.004. IMMUNITY FROM LIABILITY. (a) The corporation
2-19 is immune from liability for damages that arise:
2-20 (1) in the course of the good faith execution of the
2-21 corporation's powers and duties under this chapter; or
2-22 (2) from an error or omission of:
2-23 (A) an eligible coverage provider; or
2-24 (B) a physician or other health services
2-25 provider under contract to the corporation or to an eligible
2-26 coverage provider.
2-27 (b) A member of the board, the executive director, an
3-1 employee of the corporation, or any consultant or advisor retained
3-2 by the corporation is immune from liability for damages that arise:
3-3 (1) in the course of the good faith execution of the
3-4 person's duties to the corporation; or
3-5 (2) from an error or omission of:
3-6 (A) an eligible coverage provider; or
3-7 (B) a physician or other health services
3-8 provider under contract to the corporation or to an eligible
3-9 coverage provider.
3-10 (c) This section does not apply to an act or omission of the
3-11 corporation or a member of the board, the executive director, an
3-12 employee, or a consultant or advisor that is intentional or
3-13 wilfully or wantonly negligent.
3-14 (Sections 109.005-109.030 reserved for expansion
3-15 SUBCHAPTER B. CORPORATE STRUCTURE
3-16 Sec. 109.031. TEXAS HEALTHY KIDS CORPORATION. (a) The
3-17 Texas Healthy Kids Corporation is created and has the powers that
3-18 are necessary and convenient to carry out its duties. The
3-19 corporation is a nonprofit corporation and shall comply with the
3-20 Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
3-21 Vernon's Texas Civil Statutes).
3-22 (b) The corporation is not subject to the franchise tax
3-23 imposed by Chapter 171, Tax Code.
3-24 (c) Subject to this chapter, the board shall take any step
3-25 necessary to maintain an exemption from federal income tax under
3-26 Section 501(a) of the Internal Revenue Code of 1986 (26 U.S.C.
3-27 Section 501(a)) by being listed as an exempt organization under
4-1 Section 501(c)(3) or 501(c)(4) of that code (26 U.S.C. Section
4-2 501(c)(3) or (c)(4)).
4-3 Sec. 109.032. BOARD OF DIRECTORS. (a) The corporation
4-4 shall operate subject to the general supervision of a board of
4-5 directors. Notwithstanding the Texas Non-Profit Corporation Act
4-6 (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes), the
4-7 board is composed of:
4-8 (1) six members appointed by the governor with the
4-9 advice and consent of the senate;
4-10 (2) the commissioner of health and human services or
4-11 the commissioner's designee, who serves as a nonvoting ex officio
4-12 member; and
4-13 (3) the commissioner of insurance or the
4-14 commissioner's designee, who serves as a nonvoting ex officio
4-15 member.
4-16 (b) Notwithstanding the Texas Non-Profit Corporation Act
4-17 (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes), the
4-18 appointed members of the board serve staggered six-year terms. The
4-19 terms of two appointed members expire on February 1 of each
4-20 odd-numbered year.
4-21 (c) A member of the board may not serve more than two terms,
4-22 without regard to whether the terms are consecutive.
4-23 (d) Members of the board serve without compensation, but are
4-24 entitled to reimbursement of their travel expenses as provided for
4-25 in the General Appropriations Act for state board or commission
4-26 members. Money appropriated to the Texas Department of Insurance
4-27 or to the Health and Human Services Commission may be spent,
5-1 consistent with the General Appropriations Act, in connection with
5-2 the work or expenses of the ex officio members of the board.
5-3 (e) A person is not eligible for appointment to the board if
5-4 the person or the person's spouse is employed by, represents in any
5-5 capacity, owns, or controls any ownership interest in a business or
5-6 organization:
5-7 (1) that may obtain a pecuniary or another favorable
5-8 interest in the course of a business activity with the corporation;
5-9 or
5-10 (2) from whom the corporation receives funds.
5-11 (f) A person is not eligible for appointment to the board if
5-12 the person is or has been an adverse party in litigation against
5-13 the board.
5-14 Sec. 109.033. POWERS AND DUTIES OF BOARD. (a) The board is
5-15 the oversight and governing entity of the corporation and has any
5-16 power necessary and convenient to carry out its duties under this
5-17 chapter, including the power to adopt bylaws and rules governing
5-18 the operations of the board and the corporation. The board has
5-19 complete fiscal control over the corporation and is responsible for
5-20 all corporate operations.
5-21 (b) The board may request and accept grants and gifts of
5-22 money, property, or services. The corporation may use a grant or
5-23 gift for any purpose of the corporation, including paying the
5-24 corporation's business expenses and the salaries or wages of the
5-25 corporation's employees.
5-26 Sec. 109.034. EXECUTIVE DIRECTOR. (a) The board shall
5-27 employ an executive director to help the board perform its duties.
6-1 The executive director shall act on behalf of and subject to
6-2 authorization and consent of the board to carry out the duties of
6-3 the corporation.
6-4 (b) The corporation shall pay the executive director a
6-5 salary in an amount established by the board.
6-6 (c) The executive director must make and file a surety bond
6-7 in an amount determined by the board for the faithful performance
6-8 of the executive director's duties and the proper safekeeping and
6-9 disbursement of corporate money.
6-10 Sec. 109.035. EMPLOYEES; CONSULTANTS. The executive
6-11 director may employ employees and retain consultants as necessary
6-12 to administer the duties of the corporation.
6-13 Sec. 109.036. PUBLIC INPUT. The board shall develop and
6-14 implement policies that provide the public with a reasonable
6-15 opportunity to appear before the board and to speak on any issue
6-16 related to the corporation or the program.
6-17 Sec. 109.037. OPEN MEETINGS; OPEN RECORDS. The board and
6-18 the corporation are not subject to the open meetings law, Chapter
6-19 551, Government Code, or the open records law, Chapter 552,
6-20 Government Code.
6-21 Sec. 109.038. COOPERATION OF STATE AGENCIES. A health and
6-22 human services agency, as that term is defined by Section 531.001,
6-23 Government Code, the Texas Department of Insurance, and the
6-24 comptroller shall cooperate with the corporation to assist the
6-25 corporation in performing its duties.
6-26 (Sections 109.039-109.060 reserved for expansion
7-1 SUBCHAPTER C. HEALTH BENEFIT PROGRAM
7-2 Sec. 109.061. HEALTH BENEFIT PROGRAM. (a) The corporation
7-3 shall:
7-4 (1) establish a program to provide, through eligible
7-5 coverage providers, health benefits for eligible children in this
7-6 state who:
7-7 (A) are not covered by insurance or another type
7-8 of health benefit plan;
7-9 (B) are not covered by insurance or another type
7-10 of health benefit plan for a specified medical condition; or
7-11 (C) are not covered by insurance or another type
7-12 of health benefit plan that, in the opinion of the board, provides
7-13 adequate coverage;
7-14 (2) develop the design, actuarial, and benefits
7-15 structure of the health benefit program offered by the corporation
7-16 through eligible coverage providers;
7-17 (3) determine eligibility criteria that children and
7-18 their family members must meet before the children may participate
7-19 in the program;
7-20 (4) develop participation criteria for authorized
7-21 insurers, health service organizations, health maintenance
7-22 organizations, and other entities eligible to provide coverage
7-23 under the health benefit program;
7-24 (5) develop and implement a public awareness program
7-25 to educate the public about the program;
7-26 (6) establish participation objectives for the program
7-27 and develop a plan to require any participating eligible coverage
8-1 provider to market the program;
8-2 (7) contract for or otherwise obtain third-party
8-3 administration services for the corporation;
8-4 (8) negotiate premiums for coverage under the program
8-5 and applicable copayments, coinsurance, or deductibles to be paid
8-6 under Subsection (c) on behalf of a covered child; and
8-7 (9) contract for the provision of health benefit
8-8 coverage under the program.
8-9 (b) In developing the program, the corporation may consult
8-10 with appropriate professional organizations, coverage providers,
8-11 agency officials, and consultants.
8-12 (c) The parent, managing conservator, or guardian of a
8-13 child, or another person sponsoring coverage for the child, is
8-14 responsible for premiums for coverage under the program and for
8-15 applicable copayments, coinsurance, or deductibles, as determined
8-16 by the corporation. The corporation may develop a premium
8-17 structure that varies according to ability to pay and may require,
8-18 in accordance with the premium structure, that the parent,
8-19 conservator, guardian, or sponsor pay the full cost of the child's
8-20 coverage. If the child is eligible for medical assistance under
8-21 the state Medicaid program, the corporation shall require that the
8-22 parent, conservator, guardian, or sponsor pay the full cost of the
8-23 child's coverage. The corporation may terminate a child's coverage
8-24 if the required premium is not paid.
8-25 (d) The corporation may require that the parent, managing
8-26 conservator, or guardian of a child, or another person sponsoring
8-27 coverage for the child, pay to the corporation a reasonable
9-1 enrollment fee, in an amount set by the corporation, before the
9-2 child is enrolled in coverage under the program.
9-3 (e) The health benefit coverage provided under the
9-4 corporation's program is secondary to any other available private
9-5 coverage covering a child or a family member, and the corporation
9-6 shall ensure that benefits provided by the program are the payor of
9-7 last resort.
9-8 Sec. 109.062. CORPORATE OPERATIONS; LICENSING REQUIREMENTS.
9-9 (a) The corporation is not an insurer. The board and employees of
9-10 the corporation are not agents of an insurer. The corporation, the
9-11 board, and the employees of the corporation are not subject to any
9-12 licensing requirement imposed under the Insurance Code or another
9-13 insurance law of this state.
9-14 (b) The corporation shall use prudent business practices in
9-15 the procurement of goods and services. A law governing the
9-16 procurement of goods or services by a state agency, including
9-17 Chapter 2054 or 2254, Government Code, or Subtitle D, Title 10,
9-18 Government Code, does not apply to the procurement of goods or
9-19 services by the corporation. This subsection applies without
9-20 regard to whether the goods or services are procured with money
9-21 provided to the corporation under a state grant or under
9-22 appropriation.
9-23 Sec. 109.063. OPERATIONS OF ELIGIBLE COVERAGE PROVIDER. (a)
9-24 Except as provided by this section, an eligible coverage provider
9-25 must satisfy any applicable requirement of the Insurance Code or
9-26 another insurance law of this state.
9-27 (b) A health benefits plan provider under the program is not
10-1 subject to a law that requires coverage or the offer of coverage of
10-2 a health care service or benefit.
10-3 (c) An eligible coverage provider is not subject to the
10-4 premium tax imposed by Article 4.11, Insurance Code, or the tax on
10-5 revenues imposed under Section 33, Texas Health Maintenance
10-6 Organization Act (Section 20A.33, Vernon's Texas Insurance Code),
10-7 with respect to money received for coverage provided under this
10-8 chapter.
10-9 Sec. 109.064. ACCESS TO RECORDS; CONFIDENTIALITY. (a)
10-10 Notwithstanding any other law, the corporation may obtain the
10-11 medical records of a child covered by the program or applying to be
10-12 covered by the program on receipt of written consent executed by
10-13 the child's parent, managing conservator, or guardian.
10-14 (b) Information in the possession of the corporation that
10-15 identifies an individual, including medical records and family
10-16 financial information, is confidential and exempt from disclosure
10-17 and discovery in a civil action. Subject to any requirement of
10-18 federal law, the corporation or an employee or agent of the
10-19 corporation may not release confidential information to any person,
10-20 including a state or federal agency, without the written consent of
10-21 a parent, managing conservator, or guardian of the participating
10-22 child.
10-23 Sec. 109.065. GRIEVANCES AND APPEALS. The corporation shall
10-24 develop a plan for the receipt and disposition of complaints
10-25 regarding participating eligible coverage providers to ensure
10-26 appropriate delivery of health care services to participating
10-27 children.
11-1 (Sections 109.066-109.100 reserved for expansion
11-2 SUBCHAPTER D. COVERAGE UNDER ORDER OF MEDICAL SUPPORT FOR CHILD
11-3 Sec. 109.101. APPLICATION. (a) A parent of a child who is
11-4 the subject of an order issued under Section 154.182(c), Family
11-5 Code, shall apply for coverage for the child under the health
11-6 benefit plan provided through the corporation.
11-7 (b) As part of the application made under Subsection (a),
11-8 the corporation may require that the parent provide:
11-9 (1) a copy of an order issued under Section 158.0065,
11-10 Family Code; and
11-11 (2) the name and address of the employer of an obligor
11-12 under an order described by Subdivision (1).
11-13 Sec. 109.102. DUTIES OF CORPORATION OR DESIGNEE. (a) The
11-14 corporation, or an eligible provider designated by the corporation,
11-15 shall review the application and, if the corporation or the
11-16 designee finds that the child is eligible for coverage under the
11-17 health benefit plan, the corporation or designee shall:
11-18 (1) issue coverage to the child in accordance with the
11-19 program; and
11-20 (2) if an order for withholding of the amount of
11-21 premium has been issued under Section 158.0065, Family Code, notify
11-22 the employer of the obligor of:
11-23 (A) the amount of premium to be paid;
11-24 (B) whether the premium is to be paid to the
11-25 corporation or the corporation's designee; and
11-26 (C) the address of the corporation, or the
11-27 corporation's designee, as appropriate.
12-1 (b) The corporation or the corporation's designee shall
12-2 notify the employer of an obligor of any increase in the premium
12-3 for coverage of the child under the health benefit plan.
12-4 SECTION 2. Section 154.182, Family Code, is amended by
12-5 adding Subsection (c) to read as follows:
12-6 (c) A court that orders health insurance under Subsection
12-7 (b)(3) may order that health insurance or substantially equivalent
12-8 coverage be provided through the Texas Healthy Kids Corporation
12-9 established by Chapter 109, Health and Safety Code, if it appears
12-10 that the child is eligible for coverage through the corporation.
12-11 SECTION 3. Subchapter A, Chapter 158, Family Code, is
12-12 amended by adding Section 158.0065 to read as follows:
12-13 Sec. 158.0065. WITHHOLDING FOR HEALTH BENEFIT PLAN COVERAGE
12-14 PROVIDED THROUGH TEXAS HEALTHY KIDS CORPORATION. In a case in
12-15 which the court orders that income be withheld under this chapter
12-16 and in which the court orders that health insurance or
12-17 substantially similar coverage be provided for a child through the
12-18 Texas Healthy Kids Corporation under Section 154.182(c), the court
12-19 shall order that the amount of premium required for any coverage
12-20 issued through the corporation be withheld from the disposable
12-21 earnings of the obligor.
12-22 SECTION 4. Sections 158.103 and 158.203, Family Code, are
12-23 amended to read as follows:
12-24 Sec. 158.103. CONTENTS OF ORDER OF WITHHOLDING. (a) An
12-25 order of withholding shall state:
12-26 (1) the style, cause number, and court having
12-27 continuing jurisdiction of the suit;
13-1 (2) the name, address, and, if available, the social
13-2 security number of the obligor;
13-3 (3) the amount and duration of the child support
13-4 payments;
13-5 (4) the name, address, and, if available, the social
13-6 security numbers of the child and the obligee;
13-7 (5) the name and address of the person or agency to
13-8 whom the payments shall be made;
13-9 (6) that the obligor is required to notify the court
13-10 promptly of any change affecting the order; and
13-11 (7) that the ordered amount shall be paid to a local
13-12 registry or the Title IV-D agency.
13-13 (b) If the order applies to the amount of premium under
13-14 Section 158.0065, the order must also state that the payment for
13-15 the premium must be paid to the Texas Healthy Kids Corporation or
13-16 the designee of the corporation, in the amount and as required by
13-17 the corporation.
13-18 Sec. 158.203. REMITTING WITHHELD PAYMENTS. (a) The
13-19 employer shall remit the amount to be withheld to the person or
13-20 office named in the order or writ on each pay date. The payment
13-21 must include the date on which the withholding occurred.
13-22 (b) If the order or writ applies to the amount of premium
13-23 under Section 158.0065, the employer shall remit the amount of
13-24 premium to be withheld to the Texas Healthy Kids Corporation or the
13-25 corporation's designee, as directed by the corporation.
13-26 SECTION 5. Section 171.063(a), Tax Code, is amended to read
13-27 as follows:
14-1 (a) The following corporations are exempt from the franchise
14-2 tax:
14-3 (1) a nonprofit corporation exempted from the federal
14-4 income tax under Section 501(c)(3), (4), (5), (6), (7), (8), (10),
14-5 or (19), Internal Revenue Code, which in the case of a nonprofit
14-6 hospital means a hospital providing charity care and community
14-7 benefits as set forth in Paragraph (A), (B), (C), (D), (E), (F), or
14-8 (G):
14-9 (A) charity care and government-sponsored
14-10 indigent health care are provided at a level which is reasonable in
14-11 relation to the community needs, as determined through the
14-12 community needs assessment, the available resources of the hospital
14-13 or hospital system, and the tax-exempt benefits received by the
14-14 hospital or hospital system;
14-15 (B) charity care and government-sponsored
14-16 indigent health care are provided in an amount equal to at least
14-17 four percent of the hospital's or hospital system's net patient
14-18 revenue;
14-19 (C) charity care and government-sponsored
14-20 indigent health care are provided in an amount equal to at least
14-21 100 percent of the hospital's or hospital system's tax-exempt
14-22 benefits, excluding federal income tax;
14-23 (D) for tax periods beginning before January 1,
14-24 1996, charity care and community benefits are provided in a
14-25 combined amount equal to at least five percent of the hospital's
14-26 net patient revenue, provided that charity care and
14-27 government-sponsored indigent health care are provided in an amount
15-1 equal to at least three percent of net patient revenue;
15-2 (E) for tax periods beginning after December 31,
15-3 1995, charity care and community benefits are provided in a
15-4 combined amount equal to at least five percent of the hospital's or
15-5 hospital system's net patient revenue, provided that charity care
15-6 and government-sponsored indigent health care are provided in an
15-7 amount equal to at least four percent of net patient revenue;
15-8 (F) a nonprofit hospital that has been
15-9 designated as a disproportionate share hospital under the state
15-10 Medicaid program in the current year or in either of the previous
15-11 two fiscal years is considered to have provided a reasonable amount
15-12 of charity care and government-sponsored indigent health care and
15-13 is considered in compliance with the standards provided by this
15-14 subsection; or
15-15 (G) a hospital operated on a nonprofit basis
15-16 that is located in a county with a population of less than 50,000
15-17 and in which the entire county or the population of the entire
15-18 county has been designated as a health professionals shortage area
15-19 is considered in compliance with the standards provided by this
15-20 subsection;
15-21 (2) a corporation exempted under Section 501(c)(2) or
15-22 (25), Internal Revenue Code, if the corporation or corporations for
15-23 which it holds title to property is either exempt from or not
15-24 subject to the franchise tax;
15-25 (3) a corporation exempted from federal income tax
15-26 under Section 501(c)(16), Internal Revenue Code; and
15-27 (4) a nonprofit corporation exempted from the federal
16-1 income tax under Section 501(c)(3), Internal Revenue Code, that
16-2 does not receive any payment for providing health care services to
16-3 inpatients or outpatients from any source including but not limited
16-4 to the patient or person legally obligated to support the patient,
16-5 third-party payors, Medicare, Medicaid, or any other state or local
16-6 indigent care program. Payment for providing health care services
16-7 does not include charitable donations, legacies, bequests, or
16-8 grants or payments for research.
16-9 For purposes of satisfying Paragraph (E) of Subdivision (1),
16-10 a hospital or hospital system may not change its existing fiscal
16-11 year unless the hospital or hospital system changes its ownership
16-12 or corporate structure as a result of a sale or merger.
16-13 For purposes of this subsection, a hospital that satisfies
16-14 Paragraph (A), (F), or (G) of Subdivision (1) shall be excluded in
16-15 determining a hospital system's compliance with the standards
16-16 provided by Paragraph (B), (C), (D), or (E) of Subdivision (1).
16-17 For purposes of this subsection, the terms "charity care,"
16-18 "government-sponsored indigent health care," "health care
16-19 organization," "hospital system," "net patient revenue," "nonprofit
16-20 hospital," and "tax-exempt benefits" have the meanings set forth in
16-21 Sections 311.031 and 311.042, Health and Safety Code. A
16-22 determination of the amount of community benefits and charity care
16-23 and government-sponsored indigent health care provided by a
16-24 hospital or hospital system and the hospital's or hospital system's
16-25 compliance with the requirements of Section 311.045, Health and
16-26 Safety Code, shall be based on the most recently completed and
16-27 audited prior fiscal year of the hospital or hospital system.
17-1 For purposes of this subsection, "community benefits"
17-2 includes a donation of money to the Texas Healthy Kids Corporation
17-3 established by Chapter 109, Health and Safety Code, to be used for
17-4 any purpose of the corporation.
17-5 The providing of charity care and government-sponsored
17-6 indigent health care in accordance with Paragraph (A) of
17-7 Subdivision (1) shall be guided by the prudent business judgment of
17-8 the hospital which will ultimately determine the appropriate level
17-9 of charity care and government-sponsored indigent health care based
17-10 on the community needs, the available resources of the hospital,
17-11 the tax-exempt benefits received by the hospital, and other factors
17-12 that may be unique to the hospital, such as the hospital's volume
17-13 of Medicare and Medicaid patients. These criteria shall not be
17-14 determinative factors, but shall be guidelines contributing to the
17-15 hospital's decision along with other factors which may be unique to
17-16 the hospital. The formulas contained in Paragraphs (B), (C), (D),
17-17 and (E) of Subdivision (1) shall also not be considered
17-18 determinative of a reasonable amount of charity care and
17-19 government-sponsored indigent health care.
17-20 The requirements of this subsection shall not apply to the
17-21 extent a hospital or hospital system demonstrates that reductions
17-22 in the amount of community benefits, charity care, and
17-23 government-sponsored indigent health care are necessary to maintain
17-24 financial reserves at a level required by a bond covenant, are
17-25 necessary to prevent the hospital or hospital system from
17-26 endangering its ability to continue operations, or if the hospital,
17-27 as a result of a natural or other disaster, is required
18-1 substantially to curtail its operations.
18-2 In any fiscal year that a hospital or hospital system,
18-3 through unintended miscalculation, fails to meet any of the
18-4 standards in Subdivision (1), the hospital or hospital system shall
18-5 not lose its tax-exempt status without the opportunity to cure the
18-6 miscalculation in the fiscal year following the fiscal year the
18-7 failure is discovered by both meeting one of the standards and
18-8 providing an additional amount of charity care and
18-9 government-sponsored indigent health care that is equal to the
18-10 shortfall from the previous fiscal year. A hospital or hospital
18-11 system may apply this provision only once every five years.
18-12 SECTION 6. As soon as practicable after the effective date
18-13 of this Act, the governor shall appoint the initial board of
18-14 directors of the Texas Healthy Kids Corporation. In appointing the
18-15 initial board of directors, the governor shall appoint two persons
18-16 to terms expiring on February 1, 1999, two persons to terms
18-17 expiring on February 1, 2001, and two persons to terms expiring on
18-18 February 1, 2003.
18-19 SECTION 7. (a) Not later than November 1, 1997, the
18-20 commissioner of insurance, acting as incorporator, shall take the
18-21 steps necessary to create the Texas Healthy Kids Corporation as a
18-22 nonprofit corporation under the Texas Non-Profit Corporation Act
18-23 (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes).
18-24 (b) Not later than December 1, 1997, the commissioner of
18-25 insurance, acting on behalf of the Texas Healthy Kids Corporation,
18-26 shall employ an acting executive director for the corporation. The
18-27 acting executive director may:
19-1 (1) develop a proposed business plan for the
19-2 corporation;
19-3 (2) solicit alternative funding for the corporation
19-4 and for the health benefit plan program to be established by the
19-5 corporation; and
19-6 (3) develop, to the extent possible, a proposed health
19-7 benefit plan program for the consideration of the board.
19-8 (c) The commissioner of insurance, on behalf of the
19-9 corporation, may accept grants and gifts of money, property, or
19-10 services to assist the acting executive director appointed under
19-11 Subsection (b) of this section in carrying out the acting executive
19-12 director's powers. The commissioner's authority under this section
19-13 expires on the date all of the appointed members of the board of
19-14 directors have been appointed by the governor and have qualified
19-15 for office.
19-16 (d) The acting executive director appointed under this
19-17 section serves until the earlier of:
19-18 (1) the date the acting executive director is
19-19 dismissed by the commissioner of insurance;
19-20 (2) the date the acting executive director is
19-21 dismissed by the board of directors of the Texas Healthy Kids
19-22 Corporation; or
19-23 (3) the date the board of directors of the corporation
19-24 employs an executive director for the corporation.
19-25 (e) Notwithstanding Subsection (b) of this section, the
19-26 commissioner of insurance may not employ an acting executive
19-27 director on or after the date all of the appointed members of the
20-1 board of directors of the Texas Healthy Kids Corporation have been
20-2 appointed and have qualified for office.
20-3 SECTION 8. (a) The Texas Healthy Kids Corporation may not
20-4 offer a health benefit plan under Chapter 109, Health and Safety
20-5 Code, as added by this Act, before January 1, 1999.
20-6 (b) Not later than January 1, 1999, the board of directors
20-7 of the Texas Healthy Kids Corporation shall:
20-8 (1) establish general administrative and accounting
20-9 procedures for the corporation;
20-10 (2) develop the design, actuarial, and benefits
20-11 structure of any health benefit plan that may be offered by the
20-12 corporation through eligible coverage providers in accordance with
20-13 Chapter 109, Health and Safety Code, as added by this Act; and
20-14 (3) develop a plan for the receipt and disposition of
20-15 complaints as required by Section 109.065, Health and Safety Code,
20-16 as added by this Act.
20-17 (c) The board of directors of the Texas Healthy Kids
20-18 Corporation shall determine whether it is feasible, considering the
20-19 resources available, to initially offer the health benefit plan
20-20 required under Chapter 109, Health and Safety Code, as added by
20-21 this Act, in each region of the state. If the board determines
20-22 that it is not feasible to initially offer the health benefit plan
20-23 on a statewide basis, the board shall develop and the corporation
20-24 shall implement a schedule to stagger implementation of the health
20-25 benefit program in different regions of the state.
20-26 SECTION 9. (a) Except as provided by Subsections (b) and
20-27 (c) of this section, this Act takes effect September 1, 1997.
21-1 (b) Sections 2, 3, and 4 of this Act take effect January 1,
21-2 1999.
21-3 (c) Section 5 of this Act takes effect January 1, 1998, and
21-4 applies to a report originally due on or after that date.
21-5 SECTION 10. The importance of this legislation and the
21-6 crowded condition of the calendars in both houses create an
21-7 emergency and an imperative public necessity that the
21-8 constitutional rule requiring bills to be read on three several
21-9 days in each house be suspended, and this rule is hereby suspended.