By Coleman, Farabee, et al.                           H.B. No. 1398
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to indigent health care.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4       ARTICLE 1. DELIVERY OF INDIGENT HEALTH CARE BY COUNTIES, PUBLIC
 1-5                      HOSPITALS, AND HOSPITAL DISTRICTS
 1-6           SECTION 1.01.  Section 61.002, Health and Safety Code, is
 1-7     amended to read as follows:
 1-8           Sec. 61.002.  DEFINITIONS.  In this chapter:
 1-9                 (1)  ["AFDC" means the Aid to Families with Dependent
1-10     Children program administered by the Texas Department of Human
1-11     Services under Chapter 31, Human Resources Code.]
1-12                 [(2)]  "Department" means the Texas Department of
1-13     Health.
1-14                 (2) [(3)]  "Eligible county resident" means an eligible
1-15     resident of a county who does not reside in the service area of a
1-16     public hospital or  hospital district.
1-17                 (3) [(4)]  "Eligible resident" means a person who meets
1-18     the income and resources requirements established by this chapter
1-19     or by the  governmental entity, public hospital, or hospital
1-20     district in whose jurisdiction the person resides.
1-21                 (4) [(5)]  "Emergency services" has the meaning
1-22     assigned by Chapter 773.
1-23                 (5) [(6)]  "General revenue levy" means:
1-24                       (A)  the property taxes imposed by a county that
 2-1     are not dedicated to the construction and maintenance of
 2-2     farm-to-market roads or to flood control under Article VIII,
 2-3     Section 1-a, of the Texas Constitution or that are not dedicated to
 2-4     the further maintenance of the public roads under Article VIII,
 2-5     Section 9, of the Texas Constitution; and
 2-6                       (B)  the sales and use tax revenue to be received
 2-7     by the county during the calendar year in which the state fiscal
 2-8     year begins under Chapter 323, Tax Code, as determined under
 2-9     Section 26.041(d), Tax Code.
2-10                 (6) [(7)]  "Governmental entity" includes a county,
2-11     municipality, or other political subdivision of the state, but does
2-12     not include a  hospital district or hospital authority.
2-13                 (7) [(8)]  "Hospital district" means a hospital
2-14     district created under the authority of Article IX, Sections 4-11,
2-15     of the Texas Constitution.
2-16                 (8) [(9)]  "Mandated provider" means a person who
2-17     provides health care services, is selected by a county, public
2-18     hospital, or hospital  district, and agrees to provide health care
2-19     services to eligible residents.
2-20                 (9) [(10)]  "Medicaid" means the medical assistance
2-21     program provided under Chapter 32, Human Resources Code.
2-22                 (10) [(11)]  "Public hospital" means a hospital owned,
2-23     operated, or leased by a governmental entity, except as provided by
2-24     Section 61.051.
2-25                 (11) [(12)]  "Service area" means the geographic region
2-26     in which a governmental entity, public hospital, or hospital
2-27     district has a legal obligation to provide health care services.
 3-1           SECTION 1.02.  Section 61.004, Health and Safety Code, is
 3-2     amended to read as follows:
 3-3           Sec. 61.004.  RESIDENCE OR ELIGIBILITY DISPUTE.  (a)  If a
 3-4     provider of assistance and a governmental entity or hospital
 3-5     district cannot agree on a person's residence or whether a person
 3-6     is eligible for assistance under this chapter, the provider or the
 3-7     governmental entity or hospital district may submit the matter to
 3-8     the department.
 3-9           (b)  The provider of assistance and the governmental entity
3-10     or hospital district shall submit all relevant information to the
3-11     department in accordance with the application, documentation, and
3-12     verification procedures established by the department under Section
3-13     61.006.
3-14           (c)  If the department determines that another governmental
3-15     entity or hospital district may be involved in the dispute, the
3-16     department shall notify the governmental entity or hospital
3-17     district and allow the governmental entity or hospital district to
3-18     respond.
3-19           (d)  From the information submitted, the department shall
3-20     determine the person's residence or whether the person is eligible
3-21     for assistance under this chapter, as appropriate, and shall notify
3-22     each governmental entity or hospital district and the provider of
3-23     assistance of the decision and the reasons for the decision.
3-24           (e)  If a governmental entity, hospital district, or provider
3-25     of assistance does not agree with the department's decision, the
3-26     governmental entity, hospital district, or provider of assistance
3-27     may file an appeal with the department.  The appeal must be filed
 4-1     not later than the 30th day after the date on which the
 4-2     governmental entity, hospital district, or provider of assistance
 4-3     receives notice of the decision.
 4-4           (f)  The department shall issue a final decision not later
 4-5     than the 45th [21st] day after the date on which the appeal is
 4-6     filed.
 4-7           (g)  A governmental entity, hospital district, or provider of
 4-8     assistance may appeal the final order of the department under
 4-9     Chapter 2001, Government Code, using the substantial evidence rule
4-10     on appeal.
4-11           (h)  Service may not be denied pending an administrative or
4-12     judicial review of residence.
4-13           SECTION 1.03.  Subchapter A, Chapter 61, Health and Safety
4-14     Code, is amended by adding Section 61.0045 to read as follows:
4-15           Sec. 61.0045.  INFORMATION NECESSARY TO DETERMINE
4-16     ELIGIBILITY.  (a)  Any provider, including a mandated provider,
4-17     public hospital, or hospital district, that delivers health care
4-18     services to a patient who the provider suspects is an eligible
4-19     resident of the service area of a county, hospital district, or
4-20     public hospital under this chapter may require the patient to:
4-21                 (1)  provide any information necessary to establish
4-22     that the patient is an eligible resident of the service area of the
4-23     county, hospital district, or public hospital; and
4-24                 (2)  authorize the release of any information relating
4-25     to the patient, including medical information and information
4-26     obtained under Subdivision (1), to permit the provider to submit a
4-27     claim to the county, hospital district, or public hospital that is
 5-1     liable for payment for the services as described by Section 61.033
 5-2     or 61.060.
 5-3           (b)  A county, hospital district, or public hospital  that
 5-4     receives information obtained under Subsection (a) shall use the
 5-5     information to determine whether the patient to whom services were
 5-6     provided is an eligible resident of the service area of the county,
 5-7     hospital district, or public hospital and, if so, shall pay the
 5-8     claim made by the provider in accordance with this chapter.
 5-9           (c)  The application, documentation, and verification
5-10     procedures established by the department for counties under Section
5-11     61.006 may include a standard format for obtaining information
5-12     under Subsection (a) to facilitate eligibility and residence
5-13     determinations.
5-14           SECTION 1.04.  Sections 61.006 and 61.007, Health and Safety
5-15     Code, are amended to read as follows:
5-16           Sec. 61.006.  STANDARDS AND PROCEDURES.  (a)  The department
5-17     shall establish minimum eligibility standards and application,
5-18     documentation, and verification procedures for counties to use in
5-19     determining eligibility under this chapter.
5-20           (b)  The minimum eligibility standards must incorporate a net
5-21     income eligibility level equal to 25 percent of the federal poverty
5-22     level based on the federal Office of Management and Budget poverty
5-23     index [and procedures must be consistent with the standards and
5-24     procedures used by the Texas Department of Human Services to
5-25     determine eligibility in the AFDC-Medicaid program].
5-26           (b-1)  Notwithstanding Subsection (b), effective January 1,
5-27     2000, the minimum eligibility standards must incorporate a net
 6-1     income eligibility level equal to 17 percent of the federal poverty
 6-2     level based on the federal Office of Management and Budget poverty
 6-3     index. This subsection expires December 31, 2000.
 6-4           (b-2)  Notwithstanding Subsection (b), effective January 1,
 6-5     2001, the minimum eligibility standards must incorporate a net
 6-6     income eligibility level equal to 21 percent of the federal poverty
 6-7     level based on the federal Office of Management and Budget poverty
 6-8     index.  This subsection expires December 31, 2001.
 6-9           (c)  The department shall also define the services and
6-10     establish the payment standards for the categories of services
6-11     listed in Sections [Section] 61.028(a) and 61.0285 in accordance
6-12     with Texas Department of Human Services rules relating to the
6-13     Temporary Assistance for Needy Families-Medicaid [AFDC-Medicaid]
6-14     program.
6-15           (d)  The department shall establish application,
6-16     documentation, and verification procedures that are consistent with
6-17     the analogous procedures used to determine eligibility in the
6-18     Temporary Assistance for Needy Families-Medicaid program.  The
6-19           [(b)  The department may simplify the AFDC-Medicaid standards
6-20     and procedures used by the Texas Department of Human Services as
6-21     necessary to provide efficient county administration.  In
6-22     establishing simplified standards and procedures for county
6-23     administration, the] department may not adopt a standard or
6-24     procedure that is more restrictive than the Temporary Assistance
6-25     for Needy Families-Medicaid program [AFDC-Medicaid standards] or
6-26     procedures.
6-27           (e) [(c)]  The department shall ensure that each person who
 7-1     meets the basic income and resources requirements for Temporary
 7-2     Assistance for Needy Families program [AFDC] payments but who is
 7-3     categorically ineligible for Temporary Assistance for Needy
 7-4     Families [AFDC]  will be eligible for assistance under Subchapter
 7-5     B. Except as provided by Section 61.023(b), the [The] department by
 7-6     rule  shall also provide that a person who receives or is eligible
 7-7     to receive Temporary Assistance for Needy Families, Supplemental
 7-8     Security Income [AFDC, SSI], or Medicaid  benefits is not eligible
 7-9     for assistance under Subchapter B even if the person has exhausted
7-10     a part or all of that person's [AFDC, SSI, or Medicaid] benefits.
7-11           (f) [(d)]  The department shall notify each county and public
7-12     hospital of any change to department rules [AFDC or Medicaid
7-13     guidelines] that affect the provision of services under this
7-14     chapter [and shall amend the rules adopted under this chapter to
7-15     reflect the changes made in the AFDC or Medicaid programs].
7-16           (g) [(e)]  Notwithstanding Subsection (a), (b), or (c) or any
7-17     other provision of law, the department shall permit payment to a
7-18     licensed dentist for services provided under Sections 61.028(a)(4)
7-19     and (6) [61.028(a)(3) and (a)(5) to the extent that these  services
7-20     are required by Section 61.028(a)(5)] if the dentist can provide
7-21     those services within the scope of the dentist's license.
7-22           (h) [(f)]  Notwithstanding Subsection (a), (b), or (c), the
7-23     department shall permit payment to a licensed podiatrist for
7-24     services provided under Sections 61.028(a)(4) and (6) [61.028(a)(3)
7-25     and (a)(5) to the extent that the services are required by Section
7-26     61.028(a)(5)], if the podiatrist can provide the services within
7-27     the scope of the podiatrist's license.
 8-1           Sec. 61.007.  INFORMATION PROVIDED BY APPLICANT.  The
 8-2     department by rule shall require each applicant to provide at least
 8-3     the following information:
 8-4                 (1)  the applicant's full name and address;
 8-5                 (2)  the applicant's social security number, if
 8-6     available;
 8-7                 (3)  the number of persons in the applicant's
 8-8     household, excluding persons receiving Temporary Assistance for
 8-9     Needy Families, Supplemental Security Income [AFDC, SSI], or
8-10     Medicaid benefits;
8-11                 (4)  the applicant's county of residence;
8-12                 (5)  the existence of insurance coverage or other
8-13     hospital or health care benefits for which the applicant is
8-14     eligible;
8-15                 (6)  any transfer of title to real property that the
8-16     applicant has made in the preceding 24 months;
8-17                 (7)  the applicant's annual household income, excluding
8-18     the income of any household member receiving Temporary Assistance
8-19     for Needy Families, Supplemental Security Income [AFDC, SSI], or
8-20     Medicaid benefits; and
8-21                 (8)  the amount of the applicant's liquid assets and
8-22     the equity value of the applicant's car and real property.
8-23           SECTION 1.05.  Section 61.023(b), Health and Safety Code, is
8-24     amended to read as follows:
8-25           (b)  A county may use a less restrictive standard of
8-26     eligibility for residents than prescribed by Subsection (a).  A
8-27     county may credit toward eligibility for state assistance under
 9-1     this subchapter the services provided to each person who is an
 9-2     eligible resident under a standard that incorporates a net income
 9-3     eligibility level that is less than 50 percent of the federal
 9-4     poverty level based on the federal Office of Management and Budget
 9-5     poverty index.
 9-6           SECTION 1.06.  Section 61.025(d), Health and Safety Code, is
 9-7     amended to read as follows:
 9-8           (d)  Expenditures made by the county under Subsection (b) may
 9-9     be credited toward eligibility for state assistance under this
9-10     subchapter if the person who received the health care services
9-11     meets the eligibility standards established under Section 61.052
9-12     [Sections 61.006 and 61.008] and would have been eligible for
9-13     assistance under the county program if the person had not resided
9-14     in a public hospital's service area.
9-15           SECTION 1.07.  Section 61.028, Health and Safety Code, is
9-16     amended to read as follows:
9-17           Sec. 61.028.  BASIC [MANDATORY] HEALTH CARE SERVICES.  (a)  A
9-18     county shall, in accordance with department rules adopted under
9-19     Section 61.006, provide the following basic health care services:
9-20                 (1)  primary and preventative services designed to meet
9-21     the needs of the community, including:
9-22                       (A)  immunizations;
9-23                       (B)  medical screening services; and
9-24                       (C)  annual physical examinations;
9-25                 (2)  inpatient and outpatient hospital services;
9-26                 (3) [(2)]  rural health clinics;
9-27                 (4) [(3)]  laboratory and X-ray services;
 10-1                (5) [(4)]  family planning services;
 10-2                (6) [(5)]  physician services;
 10-3                (7) [(6)]  payment for not more than three prescription
 10-4    drugs a month; and
 10-5                (8) [(7)]  skilled nursing facility services,
 10-6    regardless of the patient's age.
 10-7          (b)  The county may provide additional health care services,
 10-8    but may not credit the assistance toward eligibility for state
 10-9    assistance, except as provided by Section 61.0285.
10-10          SECTION 1.08.  Subchapter B, Chapter 61, Health and Safety
10-11    Code, is amended by adding Section 61.0285 to read as follows:
10-12          Sec. 61.0285.  OPTIONAL HEALTH CARE SERVICES.  (a)  In
10-13    addition to basic health care services provided  under Section
10-14    61.028, a county may, in accordance with department rules adopted
10-15    under Section 61.006, provide other medically necessary services or
10-16    supplies that the county determines to be cost-effective,
10-17    including:
10-18                (1)  ambulatory surgical center services;
10-19                (2)  diabetic and colostomy medical supplies and
10-20    equipment;
10-21                (3)  durable medical equipment;
10-22                (4)  home and community health care services;
10-23                (5)  services provided by licensed master medical
10-24    social workers--advanced clinical practitioners;
10-25                (6)  psychological counseling services;
10-26                (7)  services provided by physician assistants, nurse
10-27    practitioners, certified nurse midwives, clinical nurse
 11-1    specialists, and certified registered nurse anesthetists;
 11-2                (8)  dental care;
 11-3                (9)  vision care, including eyeglasses; and
 11-4                (10)  any other appropriate health care service
 11-5    identified by board rule that may be determined to be
 11-6    cost-effective.
 11-7          (b)  A county must notify the department of the county's
 11-8    intent to provide services specified by Subsection (a).  If the
 11-9    services are approved by the department under Section 61.006, or if
11-10    the department fails to notify the county of the department's
11-11    disapproval before the 31st day after the date the county notifies
11-12    the department of its intent to provide the services, the county
11-13    may credit the services toward eligibility for state assistance
11-14    under this subchapter.
11-15          (c)  A county may provide health care services that are not
11-16    specified in Subsection (a), or may provide the services specified
11-17    in Subsection (a) without actual or constructive approval of the
11-18    department, but may not credit the services toward eligibility for
11-19    state assistance.
11-20          SECTION 1.09.  Section 61.031(b), Health and Safety Code, is
11-21    amended to read as follows:
11-22          (b)  If the county does not require prior approval and a
11-23    provider delivers or will deliver nonemergency health care services
11-24    to a patient who the provider suspects may be eligible for
11-25    assistance under this subchapter, the provider shall notify the
11-26    patient's county of residence that health care services have been
11-27    or will be provided to the patient.  The notice shall be made:
 12-1                (1)  by telephone not later than the 72nd hour [as soon
 12-2    as  possible] after the provider determines the patient's county of
 12-3    residence; and
 12-4                (2)  by mail postmarked not later than the fifth
 12-5    [third] working day after the date on which the provider determines
 12-6    the patient's county of residence.
 12-7          SECTION 1.10.  Section 61.032(a), Health and Safety Code, is
 12-8    amended to read as follows:
 12-9          (a)  If a nonmandated provider delivers emergency services to
12-10    a patient who the provider suspects might be eligible for
12-11    assistance under this subchapter, the provider shall notify the
12-12    patient's county of residence that emergency services have been or
12-13    will be provided to the patient.  The notice shall be made:
12-14                (1)  by telephone not later than the 72nd hour [as soon
12-15    as possible] after the provider determines the patient's county of
12-16    residence; and
12-17                (2)  by mail postmarked not later than the fifth
12-18    [third] working day after the date on which the provider determines
12-19    the patient's county of residence.
12-20          SECTION 1.11.  Section 61.034, Health and Safety Code, is
12-21    amended to read as follows:
12-22          Sec. 61.034.  PAYMENT STANDARDS FOR [MANDATORY] HEALTH CARE
12-23    SERVICES.  (a)  A county is not liable for the cost of a
12-24    [mandatory] health  care  service provided under Section 61.028 or
12-25    61.0285 that is in excess of the payment standards for that service
12-26    established by the  department under Section 61.006.
12-27          (b)  A county may contract with a provider of assistance to
 13-1    provide a health care service at a rate below the payment standard
 13-2    set by the department.
 13-3          SECTION 1.12.  Section 61.036(b), Health and Safety Code, is
 13-4    amended to read as follows:
 13-5          (b)  Except as provided by Section 61.023(b), a [A] county
 13-6    may not credit an expenditure for an applicant toward eligibility
 13-7    for state assistance if the applicant does not meet the
 13-8    department's eligibility standards.
 13-9          SECTION 1.13.  Sections 61.037, 61.038, and 61.039, Health
13-10    and Safety Code, are amended to read as follows:
13-11          Sec. 61.037.  COUNTY ELIGIBILITY FOR STATE ASSISTANCE.  (a)
13-12    The department may distribute funds as provided by this subchapter
13-13    to eligible counties to assist the counties in providing
13-14    [mandatory] health care services under Sections 61.028 and 61.0285
13-15    to their eligible county residents.
13-16          (b)  Except as provided by Subsection (c), (d), [or] (e), or
13-17    (g), to be eligible for state assistance, a county must:
13-18                (1)  spend in a state fiscal year at least eight [10]
13-19    percent of the county general revenue levy for that year to provide
13-20    [mandatory] health care services described by Subsection (a) to its
13-21    eligible county residents who qualify for assistance under Section
13-22    61.023 [61.006]; and
13-23                (2)  notify the department, not later than the seventh
13-24    day after the date on which the county reaches the expenditure
13-25    level, that the county has spent at least six [eight] percent of
13-26    the applicable county general revenue levy for that year to provide
13-27    [mandatory] health care services described by Subsection (a) to its
 14-1    eligible county residents who qualify for assistance under Section
 14-2    61.023 [61.006].
 14-3          (c)  If a county and a health care provider signed a contract
 14-4    on or before January 1, 1985, under which the provider agrees to
 14-5    furnish a certain level of health care services to indigent
 14-6    persons, the value of services furnished in a state fiscal year
 14-7    under the contract is included as part of the computation of a
 14-8    county expenditure under this section if the value of services does
 14-9    not exceed the payment rate established by the department under
14-10    Section 61.006.
14-11          (d)  If a hospital district is located in part but not all of
14-12    a county, that county's appraisal district shall determine the
14-13    taxable value of the property located inside the county but outside
14-14    the hospital district.  In determining eligibility for state
14-15    assistance, that county shall consider only the county general
14-16    revenue levy resulting from the property located outside the
14-17    hospital district.  A county is eligible for state assistance if:
14-18                (1)  the county spends in a state fiscal year at least
14-19    eight [10] percent of the county general revenue levy for that year
14-20    resulting from the property located outside the hospital district
14-21    to provide [mandatory] health care services described by Subsection
14-22    (a) to its eligible county residents who qualify for assistance
14-23    under Section 61.023 [61.006]; and
14-24                (2)  the county complies with the other requirements of
14-25    this subchapter.
14-26          (e)  A county that provides [mandatory] health care services
14-27    described by Subsection (a) to its eligible residents through a
 15-1    hospital established by a board of managers jointly appointed by a
 15-2    county and a municipality under Section 265.011 is eligible for
 15-3    state assistance if:
 15-4                (1)  the county spends in a state fiscal year at least
 15-5    eight  [10] percent of the county general revenue levy for the year
 15-6    to provide the [mandatory] health care services to its eligible
 15-7    county residents who qualify for assistance under Section 61.052
 15-8    [61.006]; and
 15-9                (2)  the county complies with the requirements of this
15-10    subchapter.
15-11          (f)  If a county anticipates that it will reach the eight
15-12    [10] percent expenditure level, the county must notify the
15-13    department as soon as possible before the anticipated date on which
15-14    the county will reach the level.
15-15          (g)  The department may waive the requirement that the county
15-16    meet the minimum expenditure level imposed by Subsection (b), (d),
15-17    or (e) and provide state assistance under this chapter at a lower
15-18    level determined by the department if the county demonstrates,
15-19    through an appropriate actuarial analysis, that the county is
15-20    unable to satisfy the eight percent expenditure level:
15-21                (1)  because, although the county's general revenue tax
15-22    levy has increased significantly, expenditures for health care
15-23    services described by Subsection (a) have not increased by the same
15-24    percentage;
15-25                (2)  because the county is at the maximum allowable ad
15-26    valorem tax rate, has a small population, or has insufficient
15-27    taxable property; or
 16-1                (3)  because of a similar reason.
 16-2          (h)  The department shall adopt rules governing the
 16-3    circumstances under which a waiver may be granted under Subsection
 16-4    (g) and the procedures to be used by a county to apply for the
 16-5    waiver. The procedures must provide that the department shall make
 16-6    a determination with respect to an application for a waiver not
 16-7    later than the 90th day after the date the application is submitted
 16-8    to the department in accordance with the procedures established by
 16-9    the department. To be eligible for state assistance under
16-10    Subsection (g), a county must submit monthly financial reports, in
16-11    the form required by the department, covering the 12-month period
16-12    preceding the date on which the assistance is sought.
16-13          (i)  The county must give the department all necessary
16-14    information so that the department can determine if the county
16-15    meets the requirements of Subsection (b), (d), [or] (e), or (g).
16-16          (j)  Notwithstanding Subsections (b), (d), (e), and (f), the
16-17    minimum expenditure level imposed under those subsections is 10
16-18    percent of the county general revenue levy for the year and the
16-19    notice required to be made to the department under Subsection
16-20    (b)(2) is not required to be made before the county has spent at
16-21    least eight percent of the applicable county general revenue for
16-22    that year. The department may adopt rules as necessary to implement
16-23    the transition contemplated by this subsection. This subsection
16-24    expires August 31, 2001.
16-25          Sec. 61.038.  DISTRIBUTION OF ASSISTANCE FUNDS.  (a)  If the
16-26    department determines that a county is eligible for assistance, the
16-27    department shall distribute funds appropriated to the department
 17-1    from the indigent health care assistance fund or any other
 17-2    available fund to the county to assist the county in providing
 17-3    [mandatory] health care services under Sections 61.028 and 61.0285
 17-4    to its eligible county residents who qualify for assistance as
 17-5    described by Section 61.037 [under Section 61.006].
 17-6          (b)  State funds provided under this section to a county must
 17-7    be equal to at least 90 [80] percent of the actual payment for the
 17-8    [mandatory] health care services for the county's eligible
 17-9    residents during the remainder of the state fiscal year after the
17-10    eight [10] percent expenditure level is reached.
17-11          Sec. 61.039.  FAILURE TO PROVIDE STATE ASSISTANCE.  If the
17-12    department fails to provide assistance to an eligible county as
17-13    prescribed by Section 61.038, the county is not liable for payments
17-14    for health care services provided to its eligible county residents
17-15    after the county reaches the eight [10] percent expenditure level.
17-16          SECTION 1.14.  Section 61.041, Health and Safety Code, is
17-17    amended by amending Subsections (a) and (b) and adding Subsection
17-18    (d) to read as follows:
17-19          (a)  The department shall establish monthly reporting
17-20    requirements for a county seeking state assistance and establish
17-21    procedures necessary to determine if the county is eligible for
17-22    state assistance.
17-23          (b)  The department shall establish requirements relating to:
17-24                (1)  documentation required to verify the eligibility
17-25    of residents to whom  the county provides assistance; and
17-26                (2)  county expenditures for [mandatory] health care
17-27    services under Sections 61.028 and 61.0285.
 18-1          (d)  The department shall establish annual reporting
 18-2    requirements for each county that is required to provide indigent
 18-3    health care under this chapter but that is not required to report
 18-4    under Subsection (a).  A county satisfies the annual reporting
 18-5    requirement of this subsection if the county submits information to
 18-6    the department as required by law to obtain an annual distribution
 18-7    under the Agreement Regarding Disposition of Settlement Proceeds
 18-8    filed on July 24, 1998,  in  the United  States  District  Court,
 18-9    Eastern District of Texas, in the case styled The State of Texas v.
18-10    The American Tobacco Co., et al., No. 5-96CV-91.
18-11          SECTION 1.15.  Section 61.052, Health and Safety Code, is
18-12    amended by adding Subsection (g) to read as follows:
18-13          (g)  A county that provides health care services to its
18-14    eligible residents through a hospital established by a board of
18-15    managers jointly appointed by a county and a municipality under
18-16    Section 265.011 and that establishes an income and resources
18-17    standard in accordance with Subsection (a)(2) may credit the
18-18    services provided to all persons who are eligible under that
18-19    standard toward eligibility for state assistance as described by
18-20    Section 61.037(e).
18-21          SECTION 1.16.  Section 61.054, Health and Safety Code, is
18-22    amended to read as follows:
18-23          Sec. 61.054.  BASIC [MANDATORY] HEALTH CARE SERVICES PROVIDED
18-24    BY A PUBLIC HOSPITAL.  (a)  Except as provided by Subsection (c), a
18-25    [A] public hospital shall endeavor to provide the basic health care
18-26    [inpatient and outpatient hospital] services a county is required
18-27    to provide under Section 61.028 [61.028(a)(1)].
 19-1          (b)  If a public hospital provided additional health care
 19-2    services to eligible residents during the operating year that ended
 19-3    before January 1, 1985, the hospital shall continue to provide
 19-4    those services.
 19-5          (c)  A public hospital shall coordinate the delivery of basic
 19-6    health care services to eligible residents and may provide any
 19-7    basic health care services the hospital was not providing on
 19-8    January 1, 1999, but only to the extent the hospital is financially
 19-9    able to do so.
19-10          (d)  A public hospital may provide [additional] health care
19-11    services in addition to basic health care services.
19-12          SECTION 1.17.  Section 61.055, Health and Safety Code, is
19-13    amended to read as follows:
19-14          Sec. 61.055.  BASIC HEALTH CARE SERVICES PROVIDED BY HOSPITAL
19-15    DISTRICTS.  (a) Except as provided by Subsection (b), a [A]
19-16    hospital district shall endeavor to provide the basic health care
19-17    services a county is required to provide under Section 61.028,
19-18    together with any other services required under the Texas
19-19    Constitution and the statute creating the district.
19-20          (b)  A hospital district shall coordinate the delivery of
19-21    basic health care services to eligible residents and may provide
19-22    any basic health care services the district was not providing on
19-23    January 1, 1999, but only to the extent the district is financially
19-24    able to do so.
19-25          (c)  This section may not be construed to discharge a
19-26    hospital district from its obligation to provide the health care
19-27    services required under the Texas Constitution and the statute
 20-1    creating the district.
 20-2          SECTION 1.18.  Section 61.058(b), Health and Safety Code, is
 20-3    amended to read as follows:
 20-4          (b)  If the public hospital does not require prior approval
 20-5    and a provider delivers or will deliver nonemergency health care
 20-6    services to a patient who the provider suspects might be eligible
 20-7    for assistance under this subchapter, the provider shall notify the
 20-8    hospital that health care services have been or will be provided to
 20-9    the patient.  The notice shall be made:
20-10                (1)  by telephone not later than the 72nd hour [as soon
20-11    as possible] after the provider determines that the patient resides
20-12    in the hospital's service area; and
20-13                (2)  by mail postmarked not later than the fifth
20-14    [third] working day after the date on which the provider determines
20-15    that the patient resides in the hospital's service area.
20-16          SECTION 1.19.  Section 61.059(a), Health and Safety Code, is
20-17    amended to read as follows:
20-18          (a)  If a nonmandated provider delivers emergency services to
20-19    a patient who the provider suspects might be eligible for
20-20    assistance under this subchapter, the provider shall notify the
20-21    hospital that emergency services have been or will be provided to
20-22    the patient.  The notice shall be made:
20-23                (1)  by telephone not later than the 72nd hour [as soon
20-24    as possible] after the provider determines that the patient resides
20-25    in the hospital's service area; and
20-26                (2)  by mail postmarked not later than the fifth
20-27    [third] working day after the date on which the provider determines
 21-1    that the patient resides in the hospital's service area.
 21-2          SECTION 1.20.  Section 61.062, Health and Safety Code, is
 21-3    amended to read as follows:
 21-4          Sec. 61.062.  RESPONSIBILITY OF GOVERNMENTAL ENTITY.  A
 21-5    governmental entity that owns, operates, or leases a public
 21-6    hospital shall provide sufficient funding to the hospital to
 21-7    provide basic [mandatory] health care services [assistance].
 21-8          SECTION 1.21.  Section 61.064(a), Health and Safety Code, is
 21-9    amended to read as follows:
21-10          (a)  A governmental entity that owns, operates, or leases a
21-11    public hospital and that closes, sells, or leases the hospital:
21-12                (1)  has the obligation to provide basic [mandatory]
21-13    health care services [assistance] under this chapter;
21-14                (2)  shall adopt the eligibility standards that the
21-15    hospital was or would have been required to adopt; and
21-16                (3)  shall provide the same services the hospital was
21-17    or would have been required to provide under this chapter on the
21-18    date of the closing, sale, or lease.
21-19          SECTION 1.22.  Subchapter C, Chapter 281, Health and Safety
21-20    Code, is amended by adding Section 281.0514 to read as follows:
21-21          Sec. 281.0514.  HARRIS COUNTY HOSPITAL DISTRICT; CONTRACT
21-22    WITH CERTAIN HOSPITALS.  (a)  The Harris County Hospital District
21-23    shall contract for indigent health care services with at least one
21-24    hospital that is:
21-25                (1)  located in the district;
21-26                (2)  exempt from federal income tax under Section
21-27    501(a), Internal Revenue Code of 1986, and its subsequent
 22-1    amendments, by being listed as an exempt entity under any
 22-2    subdivision of Section 501(c) of that code; and
 22-3                (3)  substantially devoted to providing hospital
 22-4    services to socially and economically disadvantaged individuals in
 22-5    the geographical area of the district.
 22-6          (b)  A contract under this section is subject to Section
 22-7    281.051(a).
 22-8          SECTION 1.23.  Section 531.204(b), Government Code, is
 22-9    amended to read as follows:
22-10          (b)  The report must include:
22-11                (1)  identification of significant problems in the
22-12    Texas Integrated Enrollment Services, with recommendations for
22-13    action by the commissioner;
22-14                (2)  the status of the effectiveness of the Texas
22-15    Integrated Enrollment Services in providing necessary services to
22-16    the people of this state, with recommendations for any necessary
22-17    research;
22-18                (3)  an analysis of the feasibility of including
22-19    indigent health care programs provided by counties, public
22-20    hospitals, and hospital districts in the Texas Integrated
22-21    Enrollment Services, a schedule for inclusion of these programs,
22-22    and a statement of how the Texas Integrated Enrollment Services may
22-23    be structured to address the wide variation in information systems
22-24    used by counties, public hospitals, and hospital districts; and
22-25                (4) [(3)]  recommendations for legislative action.
22-26          SECTION 1.24.  Chapter 26, Tax Code, is amended by adding
22-27    Section 26.0441 to read as follows:
 23-1          Sec. 26.0441.  TAX RATE ADJUSTMENT FOR INDIGENT HEALTH CARE.
 23-2    (a)  In the first tax year in which a taxing unit adopts a tax rate
 23-3    after January 1, 2000, and in which the enhanced minimum
 23-4    eligibility standards for indigent health care established under
 23-5    Section 61.006, Health and Safety Code, apply to the taxing unit,
 23-6    the effective maintenance and operations rate for the taxing unit
 23-7    is increased by the rate computed according to the following
 23-8    formula:
 23-9                             Enhanced Indigent Health Care Expenditures
23-10    Amount of Increase =     __________________________________________
23-11                             (Current Total Value - New Property Value)
23-12          (b)  In each subsequent tax year, if the taxing unit's
23-13    enhanced indigent health care expenses exceed the amount of those
23-14    expenses for the preceding year, the effective maintenance and
23-15    operations rate for the taxing unit is increased by the rate
23-16    computed according to the following formula:
23-17                             (Current  Tax  Year's   Enhanced  Indigent
23-18                             Health  Care  Expenditures - Preceding Tax
23-19                             Year's Indigent  Health Care Expenditures)
23-20    Amount of Increase =     __________________________________________
23-21                             (Current Total Value - New Property Value)
23-22          (c)  The taxing unit shall include a notice of the increase
23-23    in its effective maintenance and operations rate provided by this
23-24    section, including a brief description and the amount of the
23-25    enhanced indigent health care expenditures, in the information
23-26    published under Section 26.04(e) and, if applicable, Section
23-27    26.06(b).
 24-1          (d)  In this section, "enhanced indigent health care
 24-2    expenditures" for a tax year means the amount spent by the taxing
 24-3    unit for the maintenance and operation costs of providing indigent
 24-4    health care at the increased minimum eligibility standards
 24-5    established under Section 61.006, Health and Safety Code, effective
 24-6    on or after January 1, 2000, in the period beginning on July 1 of
 24-7    the year preceding the tax year for which the tax is adopted and
 24-8    ending on June 30 of the tax year for which the tax is adopted,
 24-9    less the amount of state assistance received by the taxing unit in
24-10    accordance with Chapter 61, Health and Safety Code, that is
24-11    attributable to those costs.
24-12          (e)  In the 2000 and 2001 tax years, a taxing unit's enhanced
24-13    indigent health care expenditures for the 2000 tax year are
24-14    computed under Subsection (d) using the taxing unit's expenditures
24-15    for the maintenance and operation costs of providing indigent
24-16    health care at the increased minimum eligibility standards
24-17    described by Subsection (d) for the period beginning on January 1,
24-18    2000, and ending on June 30, 2000, instead of for the period
24-19    described by Subsection (d).  This subsection expires January 1,
24-20    2002.
24-21          SECTION 1.25.  (a)  The change in law made by this article to
24-22    Chapter 61, Health and Safety Code, applies only to:
24-23                (1)  health care services under Chapter 61, Health and
24-24    Safety Code, as amended by this article, that are delivered on or
24-25    after January 1, 2000; and
24-26                (2)  state assistance under Chapter 61, Health and
24-27    Safety Code, as amended by this article, for the services described
 25-1    by Subdivision (1) of this subsection.
 25-2          (b)  Health care services under Chapter 61, Health and Safety
 25-3    Code, as amended by this article, that are delivered before January
 25-4    1, 2000, and state assistance for those services are governed by
 25-5    the law as it existed immediately before that date and that law is
 25-6    continued in effect for this purpose.
 25-7          SECTION 1.26.  The Texas Department of Health shall study the
 25-8    feasibility of requiring or permitting a county, public hospital,
 25-9    and hospital district to issue a uniform identification card to an
25-10    eligible county resident or eligible service area resident, as
25-11    appropriate, that identifies the resident as eligible for health
25-12    care assistance under Chapter 61, Health and Safety Code.  Not
25-13    later than December 15, 2000, the department shall report the
25-14    results of its study to the governor, lieutenant governor, and
25-15    speaker of the house of representatives.
25-16                         ARTICLE 2.  TERTIARY CARE
25-17          SECTION 2.01.  Subtitle B, Title 2, Health and Safety Code,
25-18    is amended by adding Chapter 46 to read as follows:
25-19                    CHAPTER 46.  TERTIARY MEDICAL CARE
25-20          Sec. 46.001.  DEFINITIONS.  In this chapter:
25-21                (1)  "Tertiary care facility" means a:
25-22                      (A)  primary teaching hospital of a medical
25-23    school;
25-24                      (B)  level 1 trauma center;
25-25                      (C)  level 2 trauma center; or
25-26                      (D)  level 3 trauma center.
25-27                (2)  "Tertiary medical services" includes services
 26-1    provided by burn centers and neonatology Level III units, pediatric
 26-2    and trauma surgery, neurosurgery, cardiothoracic and vascular
 26-3    surgery, organ transplant, services provided for a life-threatening
 26-4    dermatologic illness, services provided to a person with a high
 26-5    risk pregnancy or cancer, and radiation oncology.
 26-6                (3)  "Unreimbursed tertiary medical service" means a
 26-7    tertiary medical service for which a tertiary care facility has not
 26-8    received from any public or private source any payment that is
 26-9    directly attributable to the particular service.
26-10          Sec. 46.002.  RULES.  The board may adopt rules to implement
26-11    this chapter.
26-12          Sec. 46.003.  TERTIARY CARE FACILITY ACCOUNT.  (a)  The
26-13    tertiary care facility account is an account in the state treasury.
26-14    Money in the account may be appropriated only to the department for
26-15    the purposes of this chapter.
26-16          (b)  The account is composed of money appropriated to the
26-17    account and any other funds required to be put in the account.
26-18          (c)  The department may seek and accept gifts, grants, and
26-19    donations from any public or private entity on behalf of the
26-20    account.
26-21          (d)  Section 403.095, Government Code, does not apply to the
26-22    account.
26-23          (e)  For each fiscal year, five percent of the total amount
26-24    in the account shall be held in reserve and may be used only to pay
26-25    for unreimbursed tertiary medical services provided as a result of
26-26    extraordinary emergencies occurring during that year in accordance
26-27    with this chapter.  Of the amount remaining, not more than five
 27-1    percent may be used for the costs of administering the account.
 27-2          (f)  Except as provided by Subsection (e), the account shall
 27-3    be allocated for payment to tertiary facilities for the facilities'
 27-4    unreimbursed tertiary medical services.
 27-5          (g)  This chapter may not be construed to authorize the
 27-6    department to use funds to provide reimbursement to tertiary care
 27-7    facilities under this subchapter other than funds appropriated for
 27-8    that purpose in the General Appropriations Act.
 27-9          Sec. 46.004.  COLLECTION OF INFORMATION.  (a)  A tertiary
27-10    care facility that seeks payment under this chapter shall submit to
27-11    the department, in the manner and at the time required by the
27-12    department, information that relates to the unreimbursed tertiary
27-13    medical services provided to persons who reside outside the service
27-14    area of the county, public hospital, or hospital district that is
27-15    responsible for indigent health care under Chapter 61 in the area
27-16    in which the tertiary care facility is located.
27-17          (b)  The board shall adopt rules governing the collection of
27-18    the information under Subsection (a).
27-19          Sec. 46.005.  CERTIFICATION TO COMPTROLLER.  (a)  The
27-20    department shall certify to the comptroller for each tertiary care
27-21    facility the cost of unreimbursed tertiary medical services
27-22    provided by the facility to persons who reside outside the service
27-23    area of the county, public hospital, or hospital district that is
27-24    responsible for indigent health care under Chapter 61 in the area
27-25    in which the tertiary care facility is located.
27-26          (b)  Each year the department shall make, for a facility that
27-27    operated as a tertiary care facility during the previous year, an
 28-1    initial certification to the comptroller under Subsection (a) in an
 28-2    amount that equals 80 percent of the amount certified under this
 28-3    section for the facility in the previous year. The department shall
 28-4    make a subsequent certification of the cost of additional
 28-5    unreimbursed tertiary medical services provided by the facility on
 28-6    receipt from the facility of the information required to be
 28-7    submitted under Section 46.004.
 28-8          (c)  Except as provided by Subsection (d), each year the
 28-9    comptroller shall pay a tertiary care facility the certified amount
28-10    declared under Subsection (a) from the funds specified under
28-11    Section 46.003(f).
28-12          (d)  If in any year the total cost of unreimbursed tertiary
28-13    medical services certified under Subsection (a) for all tertiary
28-14    care facilities exceeds the amount available for payment to the
28-15    facilities under Section 46.003(f), the department shall allocate
28-16    the amount available under Section 46.003(f) to each facility based
28-17    on the percentages computed by dividing the cost of the facility's
28-18    unreimbursed tertiary medical services by the total cost of all
28-19    facilities' unreimbursed tertiary medical services.  The
28-20    comptroller shall pay each tertiary care facility based on the
28-21    allocation made under this subsection.
28-22          (e)  For purposes of this section and Section 46.006, the
28-23    cost of each unreimbursed tertiary medical service provided is the
28-24    average amount payable under Medicare for services for the
28-25    Medicare diagnosis related groups applicable to the tertiary
28-26    medical services provided by a tertiary care facility.
28-27          Sec. 46.006.  CERTIFICATION OF EMERGENCIES.  (a)  For
 29-1    purposes of reimbursing extraordinary emergencies under this
 29-2    chapter, the department shall certify an extraordinary emergency:
 29-3                (1)  if the governor issues an executive order or a
 29-4    proclamation under Chapter 418, Government Code;
 29-5                (2)  if a disaster is declared by the president of the
 29-6    United States under the Robert T. Stafford Disaster Relief and
 29-7    Emergency Assistance Act (42 U.S.C. Section 5121 et seq.); or
 29-8                (3)  for another similar disaster the department finds
 29-9    has resulted in an extraordinary cost to a tertiary care facility.
29-10          (b)  If an extraordinary emergency is declared under
29-11    Subsection (a), the department shall certify to the comptroller the
29-12    amount of unreimbursed tertiary medical services incurred by a
29-13    tertiary care facility during the emergency.
29-14          (c)  Except as provided by Subsection (d), the comptroller
29-15    shall pay the tertiary care facility the certified amount declared
29-16    under Subsection (b) from allocated funds specified under Section
29-17    46.003(e).
29-18          (d)  If in any year the total cost of unreimbursed tertiary
29-19    medical services certified under Subsection (b) for all tertiary
29-20    care facilities exceeds the amount available for payment to the
29-21    facilities under Section 46.003(e), the department shall allocate
29-22    the amount available under Section 46.003(e) to each facility based
29-23    on the percentages computed by dividing the cost of the facility's
29-24    unreimbursed tertiary medical services incurred during emergencies
29-25    by the total cost of all facilities' unreimbursed tertiary medical
29-26    services incurred during emergencies.  The comptroller shall pay
29-27    each tertiary care facility based on the allocation made under this
 30-1    subsection.
 30-2       ARTICLE 3.  FEDERAL AUTHORIZATION FOR STATE MEDICAID PROGRAM
 30-3          SECTION 3.01.  FEDERAL AUTHORIZATION.  It is the intent of
 30-4    the 76th Legislature that:
 30-5                (1)  the Health and Human Services Commission or an
 30-6    appropriate health and human services agency continue to pursue the
 30-7    waiver or other authorization described by Section 4, Chapter 444,
 30-8    Acts of the 74th Legislature, Regular Session, 1995;
 30-9                (2)  the waiver or other authorization apply to
30-10    expansion of Medicaid eligibility, as described by Section 532.102,
30-11    Government Code, for both children and their families and other
30-12    adults; and
30-13                (3)  the Health and Human Services Commission take any
30-14    other appropriate action authorized under law to accomplish the
30-15    expansion of Medicaid eligibility, as described by Section 532.102,
30-16    Government Code, for children and their families and for other
30-17    adults.
30-18         ARTICLE 4.  STUDY RELATING TO BASIC HEALTH CARE SERVICES
30-19                           AND STATE ASSISTANCE
30-20          SECTION 4.01.  STUDY.  The Texas Department of Health shall:
30-21                (1)  study the provision of basic health care services
30-22    by counties, hospital districts, and public hospitals under Chapter
30-23    61, Health and Safety Code, and the cost of providing those
30-24    services;
30-25                (2)  study the threshold for eligibility for state
30-26    assistance to a county established under Section 61.037, Health and
30-27    Safety Code, and develop a threshold to replace that threshold that
 31-1    is stated as a formula and that reflects:
 31-2                      (A)  a county's fiscal capacity;
 31-3                      (B)  a county's health care resources; and
 31-4                      (C)  the relevant characteristics of the county's
 31-5    residents, including the percentage of the county's residents
 31-6    living below the federal poverty level; and
 31-7                (3)  study the financing of basic health care services
 31-8    by counties, hospital districts, and public hospitals under Chapter
 31-9    61, Health and Safety Code, including the use of:
31-10                      (A)  local, state, and federal funds; and
31-11                      (B)  the funds distributed to political
31-12    subdivisions under the Agreement Regarding Disposition of
31-13    Settlement Proceeds filed on July 24, 1998, in the United States
31-14    District Court, Eastern District of Texas, in the case styled The
31-15    State of Texas vs. The American Tobacco Co., et al., No. 5-96CV-91.
31-16          SECTION 4.02.  REPORT.  Not later than December 1, 2000, the
31-17    Texas Department of Health shall submit a written report of the
31-18    study conducted under this article to the governor, lieutenant
31-19    governor, and speaker of the house of representatives.  The report
31-20    must include the recommendations of the department, together with
31-21    the proposed eligibility threshold described by Section 4.01(2) of
31-22    this article.
31-23          SECTION 4.03.  EXPIRATION.  This article expires August 31,
31-24    2001.
31-25            ARTICLE 5.  PILOT PROGRAM FOR REGIONAL HEALTH CARE
31-26                              DELIVERY SYSTEM
31-27          SECTION 5.01.  DEFINITIONS.  In this article:
 32-1                (1)  "Commissioner" means the commissioner of health
 32-2    and human services.
 32-3                (2)  "Pilot program" means the regional health care
 32-4    delivery system pilot program established under this article.
 32-5          SECTION 5.02.  PILOT PROGRAM.  (a)  Not later than January 1,
 32-6    2000, the commissioner shall establish a regional health care
 32-7    delivery system pilot program to coordinate the use of health care
 32-8    resources in a region of the state.  The pilot program must:
 32-9                (1)  emphasize prevention services, continuity of care,
32-10    and the provision of a medical home for clients;
32-11                (2)  maximize the use of local and state funds by
32-12    obtaining any available federal matching funds;
32-13                (3)  be designed to result in long-term cost savings to
32-14    the participating entities;
32-15                (4)  simplify eligibility criteria and streamline
32-16    eligibility determinations; and
32-17                (5)  improve accountability of indigent health care
32-18    dollars.
32-19          (b)  The commissioner may adopt rules as necessary to
32-20    implement the pilot program. The rules may provide an alternative
32-21    funding structure to the funding structure established under
32-22    Chapter 61, Health and Safety Code.
32-23          (c)  The commissioner may not require a county, public
32-24    hospital, hospital district, or other entity to participate in the
32-25    pilot program.
32-26          SECTION 5.03.  REPORT.  (a)  Not later than January 1, 2003,
32-27    the commissioner shall submit a written report relating to the
 33-1    pilot program to the governor, lieutenant governor, and speaker of
 33-2    the house of representatives.
 33-3          (b)  The report must include:
 33-4                (1)  an analysis of:
 33-5                      (A)  the quality of health care services provided
 33-6    under the pilot program; and
 33-7                      (B)  the cost-effectiveness of providing health
 33-8    care services through the pilot program; and
 33-9                (2)  recommendations for legislation for implementing
33-10    regional health care delivery systems in this state, including
33-11    recommendations relating to:
33-12                      (A)  the structure of a regional entity to
33-13    administer a regional health care delivery system;
33-14                      (B)  the manner in which state assistance money
33-15    may most effectively be distributed to support a regional health
33-16    care delivery system; and
33-17                      (C)  any other matter necessary to implement
33-18    effective and efficient regional health care delivery systems in
33-19    this state.
33-20          SECTION 5.04.  EXPIRATION; TERMINATION OF PILOT PROGRAM.
33-21    This section expires and the pilot program is terminated August 31,
33-22    2003.
33-23                   ARTICLE 6.  EFFECTIVE DATE; EMERGENCY
33-24          SECTION 6.01.  EFFECTIVE DATE.  This Act takes effect
33-25    September 1, 1999.
33-26          SECTION 6.02.  EMERGENCY.  The importance of this legislation
33-27    and the crowded condition of the calendars in both houses create an
 34-1    emergency and an imperative public necessity that the
 34-2    constitutional rule requiring bills to be read on three several
 34-3    days in each house be suspended, and this rule is hereby suspended.