1-1 By: Hunter (Senate Sponsor - Shapleigh) H.B. No. 587
1-2 (In the Senate - Received from the House April 27, 1997;
1-3 April 27, 1997, read first time and referred to Committee on Health
1-4 and Human Services; May 17, 1997, reported adversely, with
1-5 favorable Committee Substitute by the following vote: Yeas 8, Nays
1-6 0; May 17, 1997, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 587 By: Moncrief
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to certain community centers.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Sections 534.001(c) and (f), Health and Safety
1-13 Code, are amended to read as follows:
1-14 (c) A community center is:
1-15 (1) an agency of the state, a governmental unit, and a
1-16 unit of local government, as defined and specified by Chapters 101
1-17 and 102, Civil Practice and Remedies Code; [and]
1-18 (2) a local government, as defined by Section 791.003,
1-19 Government Code;
1-20 (3) a local government for the purposes of Chapter
1-21 1084, Acts of the 70th Legislature, Regular Session, 1987 (Article
1-22 715c, Vernon's Texas Civil Statutes); and
1-23 (4) a political subdivision for the purposes of
1-24 Chapter 172, Local Government Code.
1-25 (f) Each function performed by a community center under this
1-26 title is a governmental function if the function is required or
1-27 affirmatively approved by any statute of this state or of the
1-28 United States or by a regulatory agency of this state or of the
1-29 United States duly acting under any constitutional or statutory
1-30 authority vesting the agency with such power. Notwithstanding any
1-31 other law, a community center is subject to Chapter 554, Government
1-32 Code.
1-33 SECTION 2. Chapter 534, Health and Safety Code, is amended
1-34 by adding Subchapter C to read as follows:
1-35 SUBCHAPTER C. HEALTH MAINTENANCE ORGANIZATIONS
1-36 Sec. 534.101. HEALTH MAINTENANCE ORGANIZATION CERTIFICATE OF
1-37 AUTHORITY. (a) One or more community centers may create or
1-38 operate a nonprofit corporation pursuant to the laws of this state
1-39 for the purpose of accepting capitated or other at-risk payment
1-40 arrangements for the provision of services designated in a plan
1-41 approved by the department under Subchapter A.
1-42 (b) Before a nonprofit corporation organized or operating
1-43 under Subsection (a) accepts or enters into any capitated or other
1-44 at-risk payment arrangement for services designated in a plan
1-45 approved by the department under Subchapter A, the nonprofit
1-46 corporation must obtain the appropriate certificate of authority
1-47 from the Texas Department of Insurance to operate as a health
1-48 maintenance organization pursuant to the Texas Health Maintenance
1-49 Organization Act (Chapter 20A, Vernon's Texas Insurance Code).
1-50 (c) Before submitting any bids, a nonprofit corporation
1-51 operating under this subchapter shall disclose in writing to the
1-52 department the services to be provided by the community center
1-53 through any capitated or other at-risk payment arrangement by the
1-54 nonprofit corporation. The department shall verify that the
1-55 services provided under any capitated or other at-risk payment
1-56 arrangement are within the scope of services approved by the
1-57 department in each community center's plan required under
1-58 Subchapter A.
1-59 (d) The board shall:
1-60 (1) provide for public notice of the nonprofit
1-61 corporation's intent to submit a bid to provide or arrange services
1-62 through a capitated or other at-risk payment arrangement through
1-63 placement as a board agenda item on the next regularly scheduled
1-64 board meeting that allows at least 15 days' public review of the
2-1 plan; and
2-2 (2) provide an opportunity for public comment on the
2-3 services to be provided through such arrangements and on the
2-4 consideration of local input into the plan.
2-5 (e) The nonprofit corporation shall provide:
2-6 (1) public notice before verification and disclosure
2-7 of services to be provided by the community center through any
2-8 capitated or other at-risk payment arrangements by the nonprofit
2-9 corporation;
2-10 (2) an opportunity for public comment on the community
2-11 center services within the capitated or other at-risk payment
2-12 arrangements offered by the nonprofit corporation;
2-13 (3) published summaries of all relevant documentation
2-14 concerning community center services arranged through the nonprofit
2-15 corporation, including summaries of any similar contracts the
2-16 nonprofit corporation has entered into; and
2-17 (4) public access and review of all relevant
2-18 documentation.
2-19 (f) A nonprofit corporation operating under this subchapter:
2-20 (1) is subject to the requirements of Chapters 551 and
2-21 552, Government Code;
2-22 (2) shall solicit public input on the operations of
2-23 the nonprofit corporation and allow public access to information on
2-24 the operations, including services, administration, governance,
2-25 revenues, and expenses, on request unless disclosure is expressly
2-26 prohibited by law or the information is confidential under law; and
2-27 (3) shall publish an annual report detailing the
2-28 services, administration, governance, revenues, and expenses of the
2-29 nonprofit corporation, including the disposition of any excess
2-30 revenues.
2-31 Sec. 534.102. LAWS AND RULES. A nonprofit corporation
2-32 created or operated under this subchapter that obtains and holds a
2-33 valid certificate of authority as a health maintenance organization
2-34 may exercise the powers and authority and is subject to the
2-35 conditions and limitations provided by this subchapter, the Texas
2-36 Health Maintenance Organization Act (Chapter 20A, Vernon's Texas
2-37 Insurance Code), the Texas Non-Profit Corporation Act (Article
2-38 1396-1.01 et seq., Vernon's Texas Civil Statutes), and rules of the
2-39 Texas Department of Insurance.
2-40 Sec. 534.103. APPLICATION OF LAWS AND RULES. A health
2-41 maintenance organization created and operating under this
2-42 subchapter is governed as, and is subject to the same laws and
2-43 rules of the Texas Department of Insurance as, any other health
2-44 maintenance organization of the same type.
2-45 Sec. 534.104. APPLICATION OF SPECIFIC LAWS. (a) A health
2-46 maintenance organization created and operating under this
2-47 subchapter is a governmental unit and a unit of local government,
2-48 for purposes of Chapters 101 and 102, Civil Practice and Remedies
2-49 Code, respectively, and a local government for purposes of Chapter
2-50 791, Government Code.
2-51 (b) Nothing in this subchapter precludes one or more
2-52 community centers from forming a nonprofit corporation under
2-53 Section 5.01, Medical Practice Act (Article 4495b, Vernon's Texas
2-54 Civil Statutes), to provide services on a risk-sharing or capitated
2-55 basis as permitted under Article 21.52F, Insurance Code.
2-56 SECTION 3. The Texas Department of Insurance shall adopt
2-57 rules by September 1, 1997, that describe the procedures an entity
2-58 must follow and the standards an entity must meet to obtain a
2-59 certificate of authority as a single health care service plan
2-60 providing behavioral health care services.
2-61 SECTION 4. This Act takes effect September 1, 1997.
2-62 SECTION 5. The importance of this legislation and the
2-63 crowded condition of the calendars in both houses create an
2-64 emergency and an imperative public necessity that the
2-65 constitutional rule requiring bills to be read on three several
2-66 days in each house be suspended, and this rule is hereby suspended.
2-67 * * * * *