Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By: Madla S.B. No. 1246
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the establishment of the statewide rural community
1-2 health system to allow for the delivery of certain health care
1-3 services pursuant to the Texas Insurance Code.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The Texas Insurance Code is amended by adding
1-6 Chapter 20C to read as follows:
1-7 CHAPTER 20C. DELIVERY OF HEALTH CARE SERVICES
1-8 BY STATEWIDE RURAL COMMUNITY HEALTH SYSTEM
1-9 Art. 20C.01. SHORT TITLE. This chapter may be cited as the
1-10 Statewide Rural Health Care System Act.
1-11 Art. 20C.02. DEFINITIONS. For purposes of this Act:
1-12 (1) "Commissioner" means the Commissioner of
1-13 Insurance.
1-14 (2) "Enrollee" means a consumer of health care service
1-15 provided pursuant to a health care plan arranged for or provided by
1-16 the Statewide Rural Health Care System.
1-17 (3) "Rural area" means:
1-18 (A) a county with a population of 50,000 or
1-19 less;
1-20 (B) those portions of extended municipalities
1-21 that the federal census bureau has determined to be rural;
1-22 (C) an area that is not delineated as an
1-23 urbanized area by the federal census bureau; or
2-1 (D) any other areas designated as rural by the
2-2 Commissioner by rule.
2-3 (4) "Department" means the Texas Department of
2-4 Insurance.
2-5 (5) "Hospital Provider" means a county hospital,
2-6 county hospital authority, hospital district, municipal hospital,
2-7 or municipal hospital authority.
2-8 (6) "Local health care provider" means a person duly
2-9 licensed by the State of Texas to provide health care services
2-10 which resides in or is located in the rural area in which such
2-11 services are provided.
2-12 (7) "Member" means a hospital provider that is a
2-13 member of the Statewide Rural Health Care System.
2-14 (8) "Person" means an individual, professional
2-15 association, professional corporation, non-profit health
2-16 corporation, partnership, limited liability corporation, limited
2-17 liability partnership, or non-profit corporation.
2-18 (9) "Primary Care Physician" means general practice
2-19 physicians and those physicians specializing in Family Practice,
2-20 Pediatrics, and Internal Medicine.
2-21 (10) "Territorial jurisdiction" means the geographical
2-22 area to which the members of the Statewide Rural Health Care System
2-23 are obligated by law to provide services.
2-24 Art. 20C.03. ESTABLISHMENT. The Statewide Rural Health Care
2-25 System is hereby established to arrange for or provide a health
3-1 care plan to enrollees residing in rural areas on a prepaid basis.
3-2 Art. 20C.04. ORGANIZATION. (a) The Statewide Rural Health
3-3 Care System shall be a corporation organized under the Texas
3-4 Non-Profit Corporation Act (Article 1396-1.01, Vernon's Texas Civil
3-5 Statutes); and a membership corporation formed by a combination of
3-6 two or more hospital authorities.
3-7 (b) The Statewide Rural Health Care System is:
3-8 (1) a unit of local government as defined and
3-9 specified by Chapters 101 and 102, Civil Practice and Remedies
3-10 Code; and
3-11 (2) a local government, as defined by Section 791.003,
3-12 Government Code.
3-13 (c) Hospital Providers may become members of the membership
3-14 corporation as provided in Article 20C.04(2) of this Act.
3-15 Art. 20C.05. BOARD OF DIRECTORS FOR RURAL HEALTH CARE
3-16 SYSTEM. (a) The board of directors of the Statewide Rural Health
3-17 Care System shall be composed of 18 directors.
3-18 (b) The members shall appoint six directors.
3-19 (c) The governor shall appoint six directors from among the
3-20 qualified voters located within the territorial jurisdictions of
3-21 the members of which two directors shall represent employers, two
3-22 directors shall be local government officials, and two directors
3-23 shall be consumers of health care services; provided, however, that
3-24 no more than one director under this subsection shall be appointed
3-25 from the territorial jurisdiction of any single participating
4-1 member.
4-2 (d) The governor shall appoint six directors from among the
4-3 licensed local physicians residing within the territorial
4-4 jurisdiction of the members; provided, however, no more than one
4-5 director shall be appointed from the territorial jurisdiction of
4-6 any single participating member and three of such physicians shall
4-7 be primary care physicians.
4-8 Art. 20C.06. QUALIFICATIONS FOR DESIGNATION. The
4-9 Commissioner shall designate as the Statewide Rural Health Care
4-10 System one organization created under Article 20C.04 that meets
4-11 each requirement for a certificate of authority as a health
4-12 maintenance organization imposed by the Texas Health Maintenance
4-13 Organization Act (Chapter 20A, Vernon's Texas Insurance Code) as if
4-14 the Statewide Rural Health Care System were a health maintenance
4-15 organization; provided, however, that the Statewide Rural Health
4-16 Care System may meet all reserve requirements required by the
4-17 Commissioner through the purchase of reinsurance from insurance
4-18 companies approved for such purpose by the Commissioner.
4-19 Art. 20C.07. LIMITATION ON AUTHORITY OF MEMBERS. The powers
4-20 of the members of the Statewide Rural Health Care System shall be
4-21 limited to the following:
4-22 (a) electing by a majority of the members six directors of
4-23 the Statewide Rural Health Care System;
4-24 (b) authorizing by a two-thirds vote of the members the sale
4-25 of the Statewide Rural Health Care System or substantially all the
5-1 assets of the Statewide Rural Health Care System; and
5-2 (c) removing by a two-thirds vote of the members any
5-3 director of the Statewide Rural Health Care System board which the
5-4 members elected.
5-5 Art. 20C.08. TERMS; VACANCIES. (a) Appointed directors of
5-6 the board of directors serve staggered three-year terms. In
5-7 appointing the initial directors, the appointing authority shall
5-8 designate one-third of the directors to serve one-year terms,
5-9 one-third of the directors to serve two-year terms, and the
5-10 remaining directors to serve three-year terms. No director may
5-11 serve more than two full consecutive three-year terms.
5-12 (b) A vacancy on the board of directors for the remainder of
5-13 the unexpired term is filled by appointment by the same authority
5-14 that appointed the former director filling such position.
5-15 Art. 20C.09. ADMINISTRATION BY BOARD. (a) The board of
5-16 directors shall administer the Statewide Rural Health Care System.
5-17 (b) The board of directors shall make policies and
5-18 procedures that are consistent with the purposes of the Statewide
5-19 Rural Health Care System.
5-20 (c) The board of directors may utilize an executive
5-21 committee and other committees of the board as required to conduct
5-22 the business of the board. The board of directors may delegate to
5-23 the executive committee any authority deemed reasonable to the
5-24 board of directors. The executive committee of the board shall
5-25 reflect the composition of the board. The board shall elect
6-1 officers as it deems appropriate.
6-2 (d) The board of directors may contract for administrative
6-3 services or hire an executive director of the Statewide Rural
6-4 Health Care System, and consultants, attorneys, professionals,
6-5 clerks, administrators and other persons as may be found necessary,
6-6 with a majority vote of the board. If an executive director is
6-7 hired, the board shall delegate the authority to the executive
6-8 director to hire the clerks, administrators, and other employees of
6-9 the Statewide Rural Health Care System.
6-10 Art. 20C.10. MEETING. (a) The board of directors shall
6-11 adopt rules for the holding of regular and special meetings.
6-12 (b) Board meetings are open to the public to the extent
6-13 required by and in accordance with Chap. 551, Government Code;
6-14 provided, however, this Article does not require the board of
6-15 directors of Rural Health Care System to conduct an open meeting to
6-16 deliberate:
6-17 (1) pricing or financial planning information relating
6-18 to a bid or negotiation for arranging or providing services or
6-19 product lines to another person if disclosure of the information
6-20 would give the advantage to competitors; or
6-21 (2) information relating to a proposed new service,
6-22 product line, or marketing strategy;
6-23 (3) patient information made confidential by Art.
6-24 4495b Sec. 5.08 V.A.T.S. and by Sec. 241.051 and the Health and
6-25 Safety Code, V.A.T.S.
7-1 (4) information relating to the credentialing of
7-2 health care professionals or peer review made confidential by Art.
7-3 4495b Sec. 5.06 V.A.T.S. and by Sec. 241.051 and the Health and
7-4 Safety Code, V.A.T.S.
7-5 (c) The board of directors shall keep a record of its
7-6 proceedings in accordance with Chapter 551, Government Code.
7-7 Art. 20C.11. PROVISION OF ADMINISTRATIVE SERVICES. (a) The
7-8 board of directors may adopt rules to regulate the provision of
7-9 administrative services by the Statewide Rural Health Care System.
7-10 (b) The Statewide Rural Health Care System may contract, or
7-11 enter into joint ventures to provide administrative services under
7-12 this Act.
7-13 (c) The Statewide Rural Health Care System may enter into
7-14 intergovernmental and/or interlocal agreements.
7-15 (d) The Statewide Rural Health Care System may provide the
7-16 technical assistance and management services to the local health
7-17 care providers necessary to deliver health care services.
7-18 Art. 20C.12 PROVISION OF HEALTH CARE SERVICES. (a) The
7-19 board of directors may adopt rules to regulate the provision of
7-20 health care services by the Statewide Rural Health Care System.
7-21 (b) The Statewide Rural Health Care System shall contract
7-22 with or arrange for local health care providers to deliver health
7-23 care services to the enrollees located in the rural areas of the
7-24 territorial jurisdiction of the members unless such local health
7-25 care providers are unable to provide the type and quality of
8-1 services needed by the enrollees.
8-2 Art. 20C.13. GIFTS AND GRANTS. The Statewide Rural Health
8-3 Care System may accept gifts and grants of money, personal
8-4 property, and real property to use in providing the Statewide Rural
8-5 Health Care System's programs and services.
8-6 Art. 20C.14. AUTHORIZE STATE CONTRACTS. The Statewide Rural
8-7 Health Care System shall be awarded any contract by the State to
8-8 provide health care services to beneficiaries of any governmental
8-9 health program to the rural areas within the territorial
8-10 jurisdiction of its members; provided, however, that this Act
8-11 20C.14 shall not be applicable to any contract which expands the
8-12 coverage of the Texas Medical Assistance Program to certain
8-13 children implemented in the 1997-98 state biennium.
8-14 Art. 20C.15. RULES. The Commissioner may adopt rules as
8-15 necessary to implement this Act.
8-16 SECTION 2. EMERGENCY. The importance of this legislation
8-17 and the crowded condition of the calendars in both houses create an
8-18 emergency and an imperative public necessity that the
8-19 constitutional rule requiring bills to be read on three several
8-20 days in each house be suspended, and this rule is hereby suspended,
8-21 and that this Act take effect and be in force from and after its
8-22 passage, and it is so enacted.