1-1                                   AN ACT

 1-2     relating to eligibility for state assistance under the Indigent

 1-3     Health Care and Treatment Act for certain hospitals.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 61.037, Health and Safety Code, is

 1-6     amended to read as follows:

 1-7           Sec. 61.037.  COUNTY ELIGIBILITY FOR STATE ASSISTANCE.

 1-8     (a)  The department may distribute funds as provided by this

 1-9     subchapter to eligible counties to assist the counties in providing

1-10     mandatory health care services to their eligible county residents.

1-11           (b)  Except as provided by Subsection (c), [or] (d), or (e),

1-12     to be eligible for state assistance, a county must:

1-13                 (1)  spend in a state fiscal year at least 10 percent

1-14     of the county general revenue levy for that year to provide

1-15     mandatory health care services to its eligible county residents who

1-16     qualify for assistance under Section 61.006; and

1-17                 (2)  notify the department, not later than the seventh

1-18     day after the date on which the county reaches the expenditure

1-19     level, that the county has spent at least eight percent of the

1-20     applicable county general revenue levy for that year to provide

1-21     mandatory health care services to its eligible county residents who

1-22     qualify for assistance under Section 61.006.

1-23           (c)  If a county and a health care provider signed a contract

1-24     on or before January 1, 1985, under which the provider agrees to

 2-1     furnish a certain level of health care services to indigent

 2-2     persons, the value of services furnished in a state fiscal year

 2-3     under the contract is included as part of the computation of a

 2-4     county expenditure under this section if the value of services does

 2-5     not exceed the payment rate established by the department under

 2-6     Section 61.006.

 2-7           (d)  If a hospital district is located in part but not all of

 2-8     a county, that county's appraisal district shall determine the

 2-9     taxable value of the property located inside the county but outside

2-10     the hospital district.  In determining eligibility for state

2-11     assistance, that county shall consider only the county general

2-12     revenue levy resulting from the property located outside the

2-13     hospital district.  A county is eligible for state assistance if:

2-14                 (1)  the county spends in a state fiscal year at least

2-15     10 percent of the county general revenue levy for that year

2-16     resulting from the property located outside the hospital district

2-17     to provide mandatory health care services to its eligible county

2-18     residents who qualify for assistance under Section 61.006; and

2-19                 (2)  the county complies with the other requirements of

2-20     this subchapter.

2-21           (e)  A county that provides mandatory health care services to

2-22     its eligible residents through a hospital established by a board of

2-23     managers jointly appointed by a county and a municipality under

2-24     Section 265.011 is eligible for state assistance if:

2-25                 (1)  the county spends in a state fiscal year at least

2-26     10 percent of the county general revenue levy for the year to

2-27     provide mandatory health care services to its eligible county

 3-1     residents who qualify for assistance under Section 61.006; and

 3-2                 (2)  the county complies with the requirements of this

 3-3     subchapter.

 3-4           (f)  If a county anticipates that it will reach the 10

 3-5     percent expenditure level, the county must notify the department as

 3-6     soon as possible before the anticipated date on which the county

 3-7     will reach the level.

 3-8           (g) [(f)]  The county must give the department all necessary

 3-9     information so that the department can determine if the county

3-10     meets the requirements of Subsection (b), [or] (d), or (e).

3-11           SECTION 2.  The importance of this legislation and the

3-12     crowded condition of the calendars in both houses create an

3-13     emergency and an imperative public necessity that the

3-14     constitutional rule requiring bills to be read on three several

3-15     days in each house be suspended, and this rule is hereby suspended,

3-16     and that this Act take effect and be in force from and after its

3-17     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 2556 was passed by the House on May

         7, 1997, by the following vote:  Yeas 139, Nays 0, 2 present, not

         voting.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 2556 was passed by the Senate on May

         21, 1997, by the following vote:  Yeas 30, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor