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, including the primary teaching
2-20     hospital of a state medical school located in a county which does
2-21     not have a public hospital or hospital district, and the faculty
2-22     members practicing in both the inpatient and outpatient care
2-23     facilities affiliated with the teaching hospital.
2-24                 (9) [(10)]  "Medicaid" means the medical assistance
2-25     program provided under Chapter 32, Human Resources Code.
2-26                 (10) [(11)]  "Public hospital" means a hospital owned,
2-27     operated, or leased by a governmental entity, except as provided by
 3-1     Section 61.051.
 3-2                 (11) [(12)]  "Service area" means the geographic region
 3-3     in which a governmental entity, public hospital, or hospital
 3-4     district has a legal obligation to provide health care services.
 3-5           SECTION 1.02.  Section 61.004, Health and Safety Code, is
 3-6     amended to read as follows:
 3-7           Sec. 61.004.  RESIDENCE OR ELIGIBILITY DISPUTE.  (a)  If a
 3-8     provider of assistance and a governmental entity or hospital
 3-9     district cannot agree on a person's residence or whether a person
3-10     is eligible for assistance under this chapter, the provider or the
3-11     governmental entity or hospital district may submit the matter to
3-12     the department.
3-13           (b)  The provider of assistance and the governmental entity
3-14     or hospital district shall submit all relevant information to the
3-15     department in accordance with the application, documentation, and
3-16     verification procedures established by the department under Section
3-17     61.006.
3-18           (c)  If the department determines that another governmental
3-19     entity or hospital district may be involved in the dispute, the
3-20     department shall notify the governmental entity or hospital
3-21     district and allow the governmental entity or hospital district to
3-22     respond.
3-23           (d)  From the information submitted, the department shall
3-24     determine the person's residence or whether the person is eligible
3-25     for assistance under this chapter, as appropriate, and shall notify
3-26     each governmental entity or hospital district and the provider of
3-27     assistance of the decision and the reasons for the decision.
 4-1           (e)  If a governmental entity, hospital district, or provider
 4-2     of assistance does not agree with the department's decision, the
 4-3     governmental entity, hospital district, or provider of assistance
 4-4     may file an appeal with the department.  The appeal must be filed
 4-5     not later than the 30th day after the date on which the
 4-6     governmental entity, hospital district, or provider of assistance
 4-7     receives notice of the decision.
 4-8           (f)  The department shall issue a final decision not later
 4-9     than the 45th [21st] day after the date on which the appeal is
4-10     filed.
4-11           (g)  A governmental entity, hospital district, or provider of
4-12     assistance may appeal the final order of the department under
4-13     Chapter 2001, Government Code, using the substantial evidence rule
4-14     on appeal.
4-15           (h)  Service may not be denied pending an administrative or
4-16     judicial review of residence.
4-17           SECTION 1.03.  Subchapter A, Chapter 61, Health and Safety
4-18     Code, is amended by adding Section 61.0045 to read as follows:
4-19           Sec. 61.0045.  INFORMATION NECESSARY TO DETERMINE
4-20     ELIGIBILITY.  (a)  Any provider, including a mandated provider,
4-21     public hospital, or hospital district, that delivers health care
4-22     services to a patient who the provider suspects is an eligible
4-23     resident of the service area of a county, hospital district, or
4-24     public hospital under this chapter may require the patient to:
4-25                 (1)  provide any information necessary to establish
4-26     that the patient is an eligible resident of the service area of the
4-27     county, hospital district, or public hospital; and
 5-1                 (2)  authorize the release of any information relating
 5-2     to the patient, including medical information and information
 5-3     obtained under Subdivision (1), to permit the provider to submit a
 5-4     claim to the county, hospital district, or public hospital that is
 5-5     liable for payment for the services as described by Section 61.033
 5-6     or 61.060.
 5-7           (b)  A county, hospital district, or public hospital  that
 5-8     receives information obtained under Subsection (a) shall use the
 5-9     information to determine whether the patient to whom services were
5-10     provided is an eligible resident of the service area of the county,
5-11     hospital district, or public hospital and, if so, shall pay the
5-12     claim made by the provider in accordance with this chapter.
5-13           (c)  The application, documentation, and verification
5-14     procedures established by the department for counties under Section
5-15     61.006 may include a standard format for obtaining information
5-16     under Subsection (a) to facilitate eligibility and residence
5-17     determinations.
5-18           SECTION 1.04.  Sections 61.006 and 61.007, Health and Safety
5-19     Code, are amended to read as follows:
5-20           Sec. 61.006.  STANDARDS AND PROCEDURES.  (a)  The department
5-21     shall establish minimum eligibility standards and application,
5-22     documentation, and verification procedures for counties to use in
5-23     determining eligibility under this chapter.
5-24           (b)  The minimum eligibility standards must incorporate a net
5-25     income eligibility level equal to 25 percent of the federal poverty
5-26     level based on the federal Office of Management and Budget poverty
5-27     index [and procedures must be consistent with the standards and
 6-1     procedures used by the Texas Department of Human Services to
 6-2     determine eligibility in the AFDC-Medicaid program].
 6-3           (b-1)  Notwithstanding Subsection (b), effective January 1,
 6-4     2000, the minimum eligibility standards must incorporate a net
 6-5     income eligibility level equal to 17 percent of the federal poverty
 6-6     level based on the federal Office of Management and Budget poverty
 6-7     index. This subsection expires December 31, 2000.
 6-8           (b-2)  Notwithstanding Subsection (b), effective January 1,
 6-9     2001, the minimum eligibility standards must incorporate a net
6-10     income eligibility level equal to 21 percent of the federal poverty
6-11     level based on the federal Office of Management and Budget poverty
6-12     index.  This subsection expires December 31, 2001.
6-13           (c)  The department shall also define the services and
6-14     establish the payment standards for the categories of services
6-15     listed in Sections [Section] 61.028(a) and 61.0285 in accordance
6-16     with Texas Department of Human Services rules relating to the
6-17     Temporary Assistance for Needy Families-Medicaid [AFDC-Medicaid]
6-18     program.
6-19           (d)  The department shall establish application,
6-20     documentation, and verification procedures that are consistent with
6-21     the analogous procedures used to determine eligibility in the
6-22     Temporary Assistance for Needy Families-Medicaid program.  The
6-23           [(b)  The department may simplify the AFDC-Medicaid standards
6-24     and procedures used by the Texas Department of Human Services as
6-25     necessary to provide efficient county administration.  In
6-26     establishing simplified standards and procedures for county
6-27     administration, the] department may not adopt a standard or
 7-1     procedure that is more restrictive than the Temporary Assistance
 7-2     for Needy Families-Medicaid program [AFDC-Medicaid standards] or
 7-3     procedures.
 7-4           (e) [(c)]  The department shall ensure that each person who
 7-5     meets the basic income and resources requirements for Temporary
 7-6     Assistance for Needy Families program [AFDC] payments but who is
 7-7     categorically ineligible for Temporary Assistance for Needy
 7-8     Families [AFDC]  will be eligible for assistance under Subchapter
 7-9     B. Except as provided by Section 61.023(b), the [The] department by
7-10     rule  shall also provide that a person who receives or is eligible
7-11     to receive Temporary Assistance for Needy Families, Supplemental
7-12     Security Income [AFDC, SSI], or Medicaid  benefits is not eligible
7-13     for assistance under Subchapter B even if the person has exhausted
7-14     a part or all of that person's [AFDC, SSI, or Medicaid] benefits.
7-15           (f) [(d)]  The department shall notify each county and public
7-16     hospital of any change to department rules [AFDC or Medicaid
7-17     guidelines] that affect the provision of services under this
7-18     chapter [and shall amend the rules adopted under this chapter to
7-19     reflect the changes made in the AFDC or Medicaid programs].
7-20           (g) [(e)]  Notwithstanding Subsection (a), (b), or (c) or any
7-21     other provision of law, the department shall permit payment to a
7-22     licensed dentist for services provided under Sections 61.028(a)(4)
7-23     and (6) [61.028(a)(3) and (a)(5) to the extent that these  services
7-24     are required by Section 61.028(a)(5)] if the dentist can provide
7-25     those services within the scope of the dentist's license.
7-26           (h) [(f)]  Notwithstanding Subsection (a), (b), or (c), the
7-27     department shall permit payment to a licensed podiatrist for
 8-1     services provided under Sections 61.028(a)(4) and (6) [61.028(a)(3)
 8-2     and (a)(5) to the extent that the services are required by Section
 8-3     61.028(a)(5)], if the podiatrist can provide the services within
 8-4     the scope of the podiatrist's license.
 8-5           Sec. 61.007.  INFORMATION PROVIDED BY APPLICANT.  The
 8-6     department by rule shall require each applicant to provide at least
 8-7     the following information:
 8-8                 (1)  the applicant's full name and address;
 8-9                 (2)  the applicant's social security number, if
8-10     available;
8-11                 (3)  the number of persons in the applicant's
8-12     household, excluding persons receiving Temporary Assistance for
8-13     Needy Families, Supplemental Security Income [AFDC, SSI], or
8-14     Medicaid benefits;
8-15                 (4)  the applicant's county of residence;
8-16                 (5)  the existence of insurance coverage or other
8-17     hospital or health care benefits for which the applicant is
8-18     eligible;
8-19                 (6)  any transfer of title to real property that the
8-20     applicant has made in the preceding 24 months;
8-21                 (7)  the applicant's annual household income, excluding
8-22     the income of any household member receiving Temporary Assistance
8-23     for Needy Families, Supplemental Security Income [AFDC, SSI], or
8-24     Medicaid benefits; and
8-25                 (8)  the amount of the applicant's liquid assets and
8-26     the equity value of the applicant's car and real property.
8-27           SECTION 1.05.  Chapter 61, Health and Safety Code, is amended
 9-1     by adding Section 61.011 to read as follows:
 9-2           Sec. 61.011.  SERVICES BY STATE HOSPITAL OR CLINIC.  A state
 9-3     hospital or clinic shall be entitled to payment for services
 9-4     rendered to an eligible resident under the provisions of this
 9-5     chapter applicable to other providers.  The department may adopt
 9-6     rules as necessary to implement this section.
 9-7           SECTION 1.06.  Section 61.023(b), Health and Safety Code, is
 9-8     amended to read as follows:
 9-9           (b)  A county may use a less restrictive standard of
9-10     eligibility for residents than prescribed by Subsection (a).  A
9-11     county may credit toward eligibility for state assistance under
9-12     this subchapter the services provided to each person who is an
9-13     eligible resident under a standard that incorporates a net income
9-14     eligibility level that is less than 50 percent of the federal
9-15     poverty level based on the federal Office of Management and Budget
9-16     poverty index.
9-17           SECTION 1.07.  Section 61.025(d), Health and Safety Code, is
9-18     amended to read as follows:
9-19           (d)  Expenditures made by the county under Subsection (b) may
9-20     be credited toward eligibility for state assistance under this
9-21     subchapter if the person who received the health care services
9-22     meets the eligibility standards established under Section 61.052
9-23     [Sections 61.006 and 61.008] and would have been eligible for
9-24     assistance under the county program if the person had not resided
9-25     in a public hospital's service area.
9-26           SECTION 1.08.  Section 61.028, Health and Safety Code, is
9-27     amended to read as follows:
 10-1          Sec. 61.028.  BASIC [MANDATORY] HEALTH CARE SERVICES.  (a)  A
 10-2    county shall, in accordance with department rules adopted under
 10-3    Section 61.006, provide the following basic health care services:
 10-4                (1)  primary and preventative services designed to meet
 10-5    the needs of the community, including:
 10-6                      (A)  immunizations;
 10-7                      (B)  medical screening services; and
 10-8                      (C)  annual physical examinations;
 10-9                (2)  inpatient and outpatient hospital services;
10-10                (3) [(2)]  rural health clinics;
10-11                (4) [(3)]  laboratory and X-ray services;
10-12                (5) [(4)]  family planning services;
10-13                (6) [(5)]  physician services;
10-14                (7) [(6)]  payment for not more than three prescription
10-15    drugs a month; and
10-16                (8) [(7)]  skilled nursing facility services,
10-17    regardless of the patient's age.
10-18          (b)  The county may provide additional health care services,
10-19    but may not credit the assistance toward eligibility for state
10-20    assistance, except as provided by Section 61.0285.
10-21          SECTION 1.09.  Subchapter B, Chapter 61, Health and Safety
10-22    Code, is amended by adding Section 61.0285 to read as follows:
10-23          Sec. 61.0285.  OPTIONAL HEALTH CARE SERVICES.  (a)  In
10-24    addition to basic health care services provided  under Section
10-25    61.028, a county may, in accordance with department rules adopted
10-26    under Section 61.006, provide other medically necessary services or
10-27    supplies that the county determines to be cost-effective,
 11-1    including:
 11-2                (1)  ambulatory surgical center services;
 11-3                (2)  diabetic and colostomy medical supplies and
 11-4    equipment;
 11-5                (3)  durable medical equipment;
 11-6                (4)  home and community health care services;
 11-7                (5)  services provided by licensed master medical
 11-8    social workers--advanced clinical practitioners;
 11-9                (6)  psychological counseling services;
11-10                (7)  services provided by physician assistants, nurse
11-11    practitioners, certified nurse midwives, clinical nurse
11-12    specialists, and certified registered nurse anesthetists;
11-13                (8)  dental care;
11-14                (9)  vision care, including eyeglasses;
11-15                (10)  services provided by federally qualified health
11-16    centers, as defined by 42 U.S.C. Section 1396d(l)(2)(B); and
11-17                (11)  any other appropriate health care service
11-18    identified by board rule that may be determined to be
11-19    cost-effective.
11-20          (b)  A county must notify the department of the county's
11-21    intent to provide services specified by Subsection (a).  If the
11-22    services are approved by the department under Section 61.006, or if
11-23    the department fails to notify the county of the department's
11-24    disapproval before the 31st day after the date the county notifies
11-25    the department of its intent to provide the services, the county
11-26    may credit the services toward eligibility for state assistance
11-27    under this subchapter.
 12-1          (c)  A county may provide health care services that are not
 12-2    specified in Subsection (a), or may provide the services specified
 12-3    in Subsection (a) without actual or constructive approval of the
 12-4    department, but may not credit the services toward eligibility for
 12-5    state assistance.
 12-6          SECTION 1.10.  Section 61.031(b), Health and Safety Code, is
 12-7    amended to read as follows:
 12-8          (b)  If the county does not require prior approval and a
 12-9    provider delivers or will deliver nonemergency health care services
12-10    to a patient who the provider suspects may be eligible for
12-11    assistance under this subchapter, the provider shall notify the
12-12    patient's county of residence that health care services have been
12-13    or 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 61.032(a), Health and Safety Code, is
12-21    amended to read as follows:
12-22          (a)  If a nonmandated provider delivers emergency services to
12-23    a patient who the provider suspects might be eligible for
12-24    assistance under this subchapter, the provider shall notify the
12-25    patient's county of residence that emergency services have been or
12-26    will be provided to the patient.  The notice shall be made:
12-27                (1)  by telephone not later than the 72nd hour [as soon
 13-1    as possible] after the provider determines the patient's county of
 13-2    residence; and
 13-3                (2)  by mail postmarked not later than the fifth
 13-4    [third] working day after the date on which the provider determines
 13-5    the patient's county of residence.
 13-6          SECTION 1.12.  Section 61.034, Health and Safety Code, is
 13-7    amended to read as follows:
 13-8          Sec. 61.034.  PAYMENT STANDARDS FOR [MANDATORY] HEALTH CARE
 13-9    SERVICES.  (a)  A county is not liable for the cost of a
13-10    [mandatory] health  care  service provided under Section 61.028 or
13-11    61.0285 that is in excess of the payment standards for that service
13-12    established by the  department under Section 61.006.
13-13          (b)  A county may contract with a provider of assistance to
13-14    provide a health care service at a rate below the payment standard
13-15    set by the department.
13-16          SECTION 1.13.  Section 61.036(b), Health and Safety Code, is
13-17    amended to read as follows:
13-18          (b)  Except as provided by Section 61.023(b), a [A] county
13-19    may not credit an expenditure for an applicant toward eligibility
13-20    for state assistance if the applicant does not meet the
13-21    department's eligibility standards.
13-22          SECTION 1.14.  Sections 61.037, 61.038, and 61.039, Health
13-23    and Safety Code, are amended to read as follows:
13-24          Sec. 61.037.  COUNTY ELIGIBILITY FOR STATE ASSISTANCE.  (a)
13-25    The department may distribute funds as provided by this subchapter
13-26    to eligible counties to assist the counties in providing
13-27    [mandatory] health care services under Sections 61.028 and 61.0285
 14-1    to their eligible county residents.
 14-2          (b)  Except as provided by Subsection (c), (d), [or] (e), or
 14-3    (g), to be eligible for state assistance, a county must:
 14-4                (1)  spend in a state fiscal year at least eight [10]
 14-5    percent of the county general revenue levy for that year to provide
 14-6    [mandatory] health care services described by Subsection (a) to its
 14-7    eligible county residents who qualify for assistance under Section
 14-8    61.023 [61.006]; and
 14-9                (2)  notify the department, not later than the seventh
14-10    day after the date on which the county reaches the expenditure
14-11    level, that the county has spent at least six [eight] percent of
14-12    the applicable county general revenue levy for that year to provide
14-13    [mandatory] health care services described by Subsection (a) to its
14-14    eligible county residents who qualify for assistance under Section
14-15    61.023 [61.006].
14-16          (c)  If a county and a health care provider signed a contract
14-17    on or before January 1, 1985, under which the provider agrees to
14-18    furnish a certain level of health care services to indigent
14-19    persons, the value of services furnished in a state fiscal year
14-20    under the contract is included as part of the computation of a
14-21    county expenditure under this section if the value of services does
14-22    not exceed the payment rate established by the department under
14-23    Section 61.006.
14-24          (d)  If a hospital district is located in part but not all of
14-25    a county, that county's appraisal district shall determine the
14-26    taxable value of the property located inside the county but outside
14-27    the hospital district.  In determining eligibility for state
 15-1    assistance, that county shall consider only the county general
 15-2    revenue levy resulting from the property located outside the
 15-3    hospital district.  A county is eligible for 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 that year
 15-6    resulting from the property located outside the hospital district
 15-7    to provide [mandatory] health care services described by Subsection
 15-8    (a) to its eligible county residents who qualify for assistance
 15-9    under Section 61.023 [61.006]; and
15-10                (2)  the county complies with the other requirements of
15-11    this subchapter.
15-12          (e)  A county that provides [mandatory] health care services
15-13    described by Subsection (a) to its eligible residents through a
15-14    hospital established by a board of managers jointly appointed by a
15-15    county and a municipality under Section 265.011 is eligible for
15-16    state assistance if:
15-17                (1)  the county spends in a state fiscal year at least
15-18    eight  [10] percent of the county general revenue levy for the year
15-19    to provide the [mandatory] health care services to its eligible
15-20    county residents who qualify for assistance under Section 61.052
15-21    [61.006]; and
15-22                (2)  the county complies with the requirements of this
15-23    subchapter.
15-24          (f)  If a county anticipates that it will reach the eight
15-25    [10] percent expenditure level, the county must notify the
15-26    department as soon as possible before the anticipated date on which
15-27    the county will reach the level.
 16-1          (g)  The department may waive the requirement that the county
 16-2    meet the minimum expenditure level imposed by Subsection (b), (d),
 16-3    or (e) and provide state assistance under this chapter at a lower
 16-4    level determined by the department if the county demonstrates,
 16-5    through an appropriate actuarial analysis, that the county is
 16-6    unable to satisfy the eight percent expenditure level:
 16-7                (1)  because, although the county's general revenue tax
 16-8    levy has increased significantly, expenditures for health care
 16-9    services described by Subsection (a) have not increased by the same
16-10    percentage;
16-11                (2)  because the county is at the maximum allowable ad
16-12    valorem tax rate, has a small population, or has insufficient
16-13    taxable property; or
16-14                (3)  because of a similar reason.
16-15          (h)  The department shall adopt rules governing the
16-16    circumstances under which a waiver may be granted under Subsection
16-17    (g) and the procedures to be used by a county to apply for the
16-18    waiver. The procedures must provide that the department shall make
16-19    a determination with respect to an application for a waiver not
16-20    later than the 90th day after the date the application is submitted
16-21    to the department in accordance with the procedures established by
16-22    the department. To be eligible for state assistance under
16-23    Subsection (g), a county must submit monthly financial reports, in
16-24    the form required by the department, covering the 12-month period
16-25    preceding the date on which the assistance is sought.
16-26          (i)  The county must give the department all necessary
16-27    information so that the department can determine if the county
 17-1    meets the requirements of Subsection (b), (d), [or] (e), or (g).
 17-2          Sec. 61.038.  DISTRIBUTION OF ASSISTANCE FUNDS.  (a)  If the
 17-3    department determines that a county is eligible for assistance, the
 17-4    department shall distribute funds appropriated to the department
 17-5    from the indigent health care assistance fund or any other
 17-6    available fund to the county to assist the county in providing
 17-7    [mandatory] health care services under Sections 61.028 and 61.0285
 17-8    to its eligible county residents who qualify for assistance as
 17-9    described by Section 61.037 [under Section 61.006].
17-10          (b)  State funds provided under this section to a county must
17-11    be equal to at least 90 [80] percent of the actual payment for the
17-12    [mandatory] health care services for the county's eligible
17-13    residents during the remainder of the state fiscal year after the
17-14    eight [10] percent expenditure level is reached.
17-15          Sec. 61.039.  FAILURE TO PROVIDE STATE ASSISTANCE.  If the
17-16    department fails to provide assistance to an eligible county as
17-17    prescribed by Section 61.038, the county is not liable for payments
17-18    for health care services provided to its eligible county residents
17-19    after the county reaches the eight [10] percent expenditure level.
17-20          SECTION 1.15.  Subchapter B, Chapter 61, Health and Safety
17-21    Code, is amended by adding Section 61.0395 to read as follows:
17-22          Sec. 61.0395.  LIMITED TO APPROPRIATED FUNDS.  (a)  The total
17-23    amount of state assistance provided to counties under this chapter
17-24    for a fiscal year may not exceed the amount appropriated for that
17-25    purpose for that fiscal year.
17-26          (b)  The department shall adopt rules governing the
17-27    distribution of state assistance under this chapter that establish
 18-1    a maximum annual allocation for each county eligible for assistance
 18-2    under this chapter in compliance with Subsection (a).
 18-3          (c)  The rules adopted under this section:
 18-4                (1)  may consider the relative populations of the
 18-5    service areas of eligible counties and other appropriate factors;
 18-6    and
 18-7                (2)  notwithstanding Subsection (b), may provide for,
 18-8    at the end of each state fiscal year, the reallocation of all money
 18-9    that is allocated to a county under Subsection (b) but that the
18-10    county is not eligible to receive and the distribution of that
18-11    money to other eligible counties.
18-12          SECTION 1.16.  Section 61.041, Health and Safety Code, is
18-13    amended by amending Subsections (a) and (b) and adding Subsection
18-14    (d) to read as follows:
18-15          (a)  The department shall establish monthly reporting
18-16    requirements for a county seeking state assistance and establish
18-17    procedures necessary to determine if the county is eligible for
18-18    state assistance.
18-19          (b)  The department shall establish requirements relating to:
18-20                (1)  documentation required to verify the eligibility
18-21    of residents to whom  the county provides assistance; and
18-22                (2)  county expenditures for [mandatory] health care
18-23    services under Sections 61.028 and 61.0285.
18-24          (d)  The department shall establish annual reporting
18-25    requirements for each county that is required to provide indigent
18-26    health care under this chapter but that is not required to report
18-27    under Subsection (a).  A county satisfies the annual reporting
 19-1    requirement of this subsection if the county submits information to
 19-2    the department as required by law to obtain an annual distribution
 19-3    under the Agreement Regarding Disposition of Settlement Proceeds
 19-4    filed on July 24, 1998,  in  the United  States  District  Court,
 19-5    Eastern District of Texas, in the case styled The State of Texas v.
 19-6    The American Tobacco Co., et al., No. 5-96CV-91.
 19-7          SECTION 1.17.  Section 61.052, Health and Safety Code, is
 19-8    amended to read as follows:
 19-9          Sec. 61.052.  GENERAL ELIGIBILITY PROVISIONS.  (a)  A public
19-10    hospital or hospital district shall provide health care assistance
19-11    to each eligible resident in its service area who meets:
19-12                (1)  the basic income and resources requirements
19-13    established by the department under Sections 61.006 and 61.008 and
19-14    in effect when the assistance is requested; or
19-15                (2)  a less restrictive income and resources standard
19-16    adopted by the hospital or hospital district serving the area in
19-17    which the person resides.
19-18          (b)  If a public hospital used an income and resources
19-19    standard during the operating year that ended before January 1,
19-20    1985, that was less restrictive than the income and resources
19-21    requirements established by the department under Section 61.006,
19-22    the hospital shall adopt that standard to determine eligibility
19-23    under this subchapter.
19-24          (c)  If a public hospital did not use an income and resources
19-25    standard during the operating year that ended before January 1,
19-26    1985, but had a Hill-Burton obligation during part of that year,
19-27    the hospital shall adopt the standard the hospital used to meet the
 20-1    Hill-Burton obligation to determine eligibility under this
 20-2    subchapter.
 20-3          (d)  A public hospital established after September 1, 1985,
 20-4    shall provide health care services to each resident who meets the
 20-5    income and resources requirements established by the department
 20-6    under Sections 61.006 and 61.008, or the hospital may adopt a less
 20-7    restrictive income and resources standard.  The hospital may adopt
 20-8    a less restrictive income and resources standard at any time.
 20-9          (e)  If because of a change in the income and resources
20-10    requirements established by the department under Sections 61.006
20-11    and 61.008 the standard adopted by a public hospital or hospital
20-12    district becomes stricter than the requirements established by the
20-13    department, the hospital or hospital district shall change its
20-14    standard to at least comply with the requirements established by
20-15    the department.
20-16          (f)  A public hospital or hospital district may contract with
20-17    the department to perform eligibility determination services.
20-18          (g)  A county that provides health care services to its
20-19    eligible residents through a hospital established by a board of
20-20    managers jointly appointed by a county and a municipality under
20-21    Section 265.011 and that establishes an income and resources
20-22    standard in accordance with Subsection (a)(2) may credit the
20-23    services provided to all persons who are eligible under that
20-24    standard toward eligibility for state assistance as described by
20-25    Section 61.037(e).
20-26          SECTION 1.18.  Section 61.054, Health and Safety Code, is
20-27    amended to read as follows:
 21-1          Sec. 61.054.  BASIC [MANDATORY] HEALTH CARE SERVICES PROVIDED
 21-2    BY A PUBLIC HOSPITAL.  (a)  Except as provided by Subsection (c), a
 21-3    [A] public hospital shall endeavor to provide the basic health care
 21-4    [inpatient and outpatient hospital] services a county is required
 21-5    to provide under Section 61.028 [61.028(a)(1)].
 21-6          (b)  If a public hospital provided additional health care
 21-7    services to eligible residents during the operating year that ended
 21-8    before January 1, 1985, the hospital shall continue to provide
 21-9    those services.
21-10          (c)  A public hospital shall coordinate the delivery of basic
21-11    health care services to eligible residents and may provide any
21-12    basic health care services the hospital was not providing on
21-13    January 1, 1999, but only to the extent the hospital is financially
21-14    able to do so.
21-15          (d)  A public hospital may provide [additional] health care
21-16    services in addition to basic health care services.
21-17          SECTION 1.19.  Section 61.055, Health and Safety Code, is
21-18    amended to read as follows:
21-19          Sec. 61.055.  BASIC HEALTH CARE SERVICES PROVIDED BY HOSPITAL
21-20    DISTRICTS.  (a) Except as provided by Subsection (b), a [A]
21-21    hospital district shall endeavor to provide the basic health care
21-22    services a county is required to provide under Section 61.028,
21-23    together with any other services required under the Texas
21-24    Constitution and the statute creating the district.
21-25          (b)  A hospital district shall coordinate the delivery of
21-26    basic health care services to eligible residents and may provide
21-27    any basic health care services the district was not providing on
 22-1    January 1, 1999, but only to the extent the district is financially
 22-2    able to do so.
 22-3          (c)  This section may not be construed to discharge a
 22-4    hospital district from its obligation to provide the health care
 22-5    services required under the Texas Constitution and the statute
 22-6    creating the district.
 22-7          SECTION 1.20.  Section 61.058(b), Health and Safety Code, is
 22-8    amended to read as follows:
 22-9          (b)  If the public hospital does not require prior approval
22-10    and a provider delivers or will deliver nonemergency health care
22-11    services to a patient who the provider suspects might be eligible
22-12    for assistance under this subchapter, the provider shall notify the
22-13    hospital that health care services have been or will be provided to
22-14    the patient.  The notice shall be made:
22-15                (1)  by telephone not later than the 72nd hour [as soon
22-16    as possible] after the provider determines that the patient resides
22-17    in the hospital's service area; and
22-18                (2)  by mail postmarked not later than the fifth
22-19    [third] working day after the date on which the provider determines
22-20    that the patient resides in the hospital's service area.
22-21          SECTION 1.21.  Section 61.059(a), Health and Safety Code, is
22-22    amended to read as follows:
22-23          (a)  If a nonmandated provider delivers emergency services to
22-24    a patient who the provider suspects might be eligible for
22-25    assistance under this subchapter, the provider shall notify the
22-26    hospital that emergency services have been or will be provided to
22-27    the patient.  The notice shall be made:
 23-1                (1)  by telephone not later than the 72nd hour [as soon
 23-2    as possible] after the provider determines that the patient resides
 23-3    in the hospital's service area; and
 23-4                (2)  by mail postmarked not later than the fifth
 23-5    [third] working day after the date on which the provider determines
 23-6    that the patient resides in the hospital's service area.
 23-7          SECTION 1.22.  Section 61.062, Health and Safety Code, is
 23-8    amended to read as follows:
 23-9          Sec. 61.062.  RESPONSIBILITY OF GOVERNMENTAL ENTITY.  A
23-10    governmental entity that owns, operates, or leases a public
23-11    hospital shall provide sufficient funding to the hospital to
23-12    provide basic [mandatory] health care services [assistance].
23-13          SECTION 1.23.  Section 61.064(a), Health and Safety Code, is
23-14    amended to read as follows:
23-15          (a)  A governmental entity that owns, operates, or leases a
23-16    public hospital and that closes, sells, or leases the hospital:
23-17                (1)  has the obligation to provide basic [mandatory]
23-18    health care services [assistance] under this chapter;
23-19                (2)  shall adopt the eligibility standards that the
23-20    hospital was or would have been required to adopt; and
23-21                (3)  shall provide the same services the hospital was
23-22    or would have been required to provide under this chapter on the
23-23    date of the closing, sale, or lease.
23-24          SECTION 1.24.  Subchapter C, Chapter 281, Health and Safety
23-25    Code, is amended by adding Section 281.0514 to read as follows:
23-26          Sec. 281.0514.  HARRIS COUNTY HOSPITAL DISTRICT; CONTRACT
23-27    WITH CERTAIN HOSPITALS.  (a)  The Harris County Hospital District
 24-1    may contract for indigent health care services with at least one
 24-2    hospital that is:
 24-3                (1)  located in the district;
 24-4                (2)  exempt from federal income tax under Section
 24-5    501(a), Internal Revenue Code of 1986, and its subsequent
 24-6    amendments, by being listed as an exempt entity under any
 24-7    subdivision of Section 501(c) of that code; and
 24-8                (3)  substantially devoted to providing hospital
 24-9    services to socially and economically disadvantaged individuals in
24-10    the geographical area of the district.
24-11          (b)  A contract under this section is subject to Section
24-12    281.051(a).
24-13          SECTION 1.25.  Section 531.047, Government Code, as added by
24-14    Chapter 1251, Acts of the 75th Legislature, Regular Session, 1997,
24-15    is amended by amending Subsection (a) and adding Subsection (h) to
24-16    read as follows:
24-17          (a)  In this section:
24-18                (1)  "Health professional" means an advanced nurse
24-19    practitioner, an allied health professional, a mental health
24-20    professional, a physician, or a physician assistant who is licensed
24-21    in this state.
24-22                (2)  "Rural county" means a county that:
24-23                      (A)  has [with] a population of [less than]
24-24    50,000 or less; or
24-25                      (B)  contains an area that was not designated as
24-26    an urban area by the United States Bureau of the Census according
24-27    to the 1990 federal census and does not have within the boundaries
 25-1    of the county a hospital that:
 25-2                            (i)  is licensed under Chapter 241, Health
 25-3    and Safety Code; and
 25-4                            (ii)  has more than 100 beds.
 25-5                (3)  "Rural health facility" means a health facility
 25-6    that is located in a rural county and at least 30 miles from any
 25-7    accredited medical school or any teaching hospital affiliated with
 25-8    an accredited medical school and that is:
 25-9                      (A)  a licensed, nonprofit hospital; [or]
25-10                      (B)  a health clinic that is affiliated with:
25-11                            (i)  an accredited medical school; [or]
25-12                            (ii)  a teaching hospital that is
25-13    affiliated with an accredited medical school;
25-14                            (iii)  a hospital described by Paragraph
25-15    (C); or
25-16                            (iv)  a federally qualified health center,
25-17    as defined by 42 U.S.C.  Section 1396d(l)(2)(B), as amended; or
25-18                      (C)  a hospital that:
25-19                            (i)  is licensed under Chapter 241, Health
25-20    and Safety Code;
25-21                            (ii)  is owned or operated by a
25-22    municipality, county, hospital district, or hospital authority; and
25-23                            (iii)  provides inpatient or outpatient
25-24    services.
25-25                (4)  "Telemedical consultation" means a medical
25-26    consultation for purposes of patient diagnosis or treatment that
25-27    requires the use of advanced telecommunications technology,
 26-1    including:
 26-2                      (A)  compressed digital interactive video, audio,
 26-3    or data transmission;
 26-4                      (B)  clinical data transmission via computer
 26-5    imaging for teleradiology or telepathology; and
 26-6                      (C)  other technology that facilitates access in
 26-7    rural counties to health care services or medical specialty
 26-8    expertise.
 26-9          (h)  The commissioner shall establish an advisory committee
26-10    to assist the commission in developing policies for telemedical
26-11    consultations under this section.
26-12          SECTION 1.26.  Section 531.204(b), Government Code, is
26-13    amended to read as follows:
26-14          (b)  The report must include:
26-15                (1)  identification of significant problems in the
26-16    Texas Integrated Enrollment Services, with recommendations for
26-17    action by the commissioner;
26-18                (2)  the status of the effectiveness of the Texas
26-19    Integrated Enrollment Services in providing necessary services to
26-20    the people of this state, with recommendations for any necessary
26-21    research;
26-22                (3)  an analysis of the feasibility of including
26-23    indigent health care programs provided by counties, public
26-24    hospitals, and hospital districts in the Texas Integrated
26-25    Enrollment Services, a schedule for inclusion of these programs,
26-26    and a statement of how the Texas Integrated Enrollment Services may
26-27    be structured to address the wide variation in information systems
 27-1    used by counties, public hospitals, and hospital districts; and
 27-2                (4) [(3)]  recommendations for legislative action.
 27-3          SECTION 1.27.  Chapter 26, Tax Code, is amended by adding
 27-4    Section 26.0441 to read as follows:
 27-5          Sec. 26.0441.  TAX RATE ADJUSTMENT FOR INDIGENT HEALTH CARE.
 27-6    (a)  In the first tax year in which a taxing unit adopts a tax rate
 27-7    after January 1, 2000, and in which the enhanced minimum
 27-8    eligibility standards for indigent health care established under
 27-9    Section 61.006, Health and Safety Code, apply to the taxing unit,
27-10    the effective maintenance and operations rate for the taxing unit
27-11    is increased by the rate computed according to the following
27-12    formula:
27-13                             Enhanced Indigent Health Care Expenditures
27-14    Amount of Increase =     __________________________________________
27-15                             (Current Total Value - New Property Value)
27-16          (b)  In each subsequent tax year, if the taxing unit's
27-17    enhanced indigent health care expenses exceed the amount of those
27-18    expenses for the preceding year, the effective maintenance and
27-19    operations rate for the taxing unit is increased by the rate
27-20    computed according to the following formula:
27-21                             (Current  Tax  Year's   Enhanced  Indigent
27-22                             Health  Care  Expenditures - Preceding Tax
27-23                             Year's Indigent  Health Care Expenditures)
27-24    Amount of Increase =     __________________________________________
27-25                             (Current Total Value - New Property Value)
27-26          (c)  The taxing unit shall include a notice of the increase
27-27    in its effective maintenance and operations rate provided by this
 28-1    section, including a brief description and the amount of the
 28-2    enhanced indigent health care expenditures, in the information
 28-3    published under Section 26.04(e) and, if applicable, Section
 28-4    26.06(b).
 28-5          (d)  In this section, "enhanced indigent health care
 28-6    expenditures" for a tax year means the amount spent by the taxing
 28-7    unit for the maintenance and operation costs of providing indigent
 28-8    health care at the increased minimum eligibility standards
 28-9    established under Section 61.006, Health and Safety Code, effective
28-10    on or after January 1, 2000, in the period beginning on July 1 of
28-11    the year preceding the tax year for which the tax is adopted and
28-12    ending on June 30 of the tax year for which the tax is adopted,
28-13    less the amount of state assistance received by the taxing unit in
28-14    accordance with Chapter 61, Health and Safety Code, that is
28-15    attributable to those costs.
28-16          (e)  In the 2000 and 2001 tax years, a taxing unit's enhanced
28-17    indigent health care expenditures for the 2000 tax year are
28-18    computed under Subsection (d) using the taxing unit's expenditures
28-19    for the maintenance and operation costs of providing indigent
28-20    health care at the increased minimum eligibility standards
28-21    described by Subsection (d) for the period beginning on January 1,
28-22    2000, and ending on June 30, 2000, instead of for the period
28-23    described by Subsection (d).  This subsection expires January 1,
28-24    2002.
28-25          SECTION 1.28.  (a)  The change in law made by this article to
28-26    Chapter 61, Health and Safety Code, applies only to:
28-27                (1)  health care services under Chapter 61, Health and
 29-1    Safety Code, as amended by this article, that are delivered on or
 29-2    after January 1, 2000; and
 29-3                (2)  state assistance under Chapter 61, Health and
 29-4    Safety Code, as amended by this article, for the services described
 29-5    by Subdivision (1) of this subsection.
 29-6          (b)  Health care services under Chapter 61, Health and Safety
 29-7    Code, as amended by this article, that are delivered before January
 29-8    1, 2000, and state assistance for those services are governed by
 29-9    the law as it existed immediately before that date and that law is
29-10    continued in effect for this purpose.
29-11          SECTION 1.29.  The Texas Department of Health shall study the
29-12    feasibility of requiring or permitting a county, public hospital,
29-13    and hospital district to issue a uniform identification card to an
29-14    eligible county resident or eligible service area resident, as
29-15    appropriate, that identifies the resident as eligible for health
29-16    care assistance under Chapter 61, Health and Safety Code.  Not
29-17    later than December 15, 2000, the department shall report the
29-18    results of its study to the governor, lieutenant governor, and
29-19    speaker of the house of representatives.
29-20          SECTION 1.30.  For fiscal years 2000 and 2001, the rules
29-21    adopted under Section 61.0395(b), Health and Safety Code, as added
29-22    by this Act, must ensure that each county's annual allocation is
29-23    equal to at least the average estimated annual amount of state
29-24    assistance that the county would have been eligible to receive
29-25    during each of the state fiscal years ending on August 31, 1997,
29-26    August 31, 1998, and August 31, 1999, computed as if the
29-27    eligibility threshold established by Section 61.037, Health and
 30-1    Safety Code, as amended by this Act, and the state match rate
 30-2    established by Section 61.038, Health and Safety Code, as amended
 30-3    by this Act, had applied during those fiscal years.
 30-4                     ARTICLE 2.  TERTIARY MEDICAL CARE
 30-5          SECTION 2.01.  Subtitle B, Title 2, Health and Safety Code,
 30-6    is amended by adding Chapter 46 to read as follows:
 30-7                    CHAPTER 46.  TERTIARY MEDICAL CARE
 30-8          Sec. 46.001.  DEFINITIONS.  In this chapter:
 30-9                (1)  "Tertiary care facility" means a:
30-10                      (A)  primary teaching hospital of a medical
30-11    school;
30-12                      (B)  level I trauma center;
30-13                      (C)  level II trauma center; or
30-14                      (D)  level III trauma center.
30-15                (2)  "Tertiary medical services" includes, but is not
30-16    limited to, services provided by state-designated trauma centers,
30-17    burn center treatment, neonatology level III unit services,
30-18    pediatric surgery, trauma surgery, neurosurgery, cardiothoracic and
30-19    vascular surgery, organ transplant, services provided for a
30-20    life-threatening dermatologic illness, services provided to a
30-21    person with a high-risk pregnancy or cancer, and radiation
30-22    oncology.
30-23                (3)  "Stabilization services" means services provided
30-24    by a tertiary care facility or a level IV designated trauma center
30-25    that are necessary to assure, within reasonable medical
30-26    probability, that no material deterioration of a patient's medical
30-27    condition is likely to result from or occur during the transfer of
 31-1    the patient to a tertiary care facility.
 31-2                (4)  "Unreimbursed stabilization services" means
 31-3    stabilization services for which a tertiary care facility or level
 31-4    IV designated trauma facility has not received full payment from
 31-5    any public or private source.
 31-6                (5)  "Unreimbursed tertiary medical services" means
 31-7    tertiary care medical services for which a tertiary care facility
 31-8    has not received full payment from any public or private source.
 31-9          Sec. 46.002.  RULES.  (a)  The board may adopt rules to
31-10    implement a system that encourages hospitals to provide tertiary
31-11    medical services and stabilization services.
31-12          (b)  The rules must address:
31-13                (1)  coordination of tertiary medical services and
31-14    stabilization services  among health care facilities in the
31-15    delivery area;
31-16                (2)  pre-hospital care management guidelines for
31-17    triage, transfer, and transportation of patients and periodic
31-18    evaluation of tertiary care facilities' and level IV trauma
31-19    facilities' compliance with the guidelines and the trauma facility
31-20    rules, as appropriate;
31-21                (3)  requirements for data collection, including
31-22    patient outcomes;
31-23                (4)  assurances that tertiary care facilities will not
31-24    refuse to accept the transfer of a patient solely because of the
31-25    person's inability to pay for services or because of the person's
31-26    age, sex, race, religion, or national origin; and
31-27                (5)  enforcement of the rules.
 32-1          Sec. 46.003.  TERTIARY CARE ACCOUNT.  (a)  The tertiary care
 32-2    account is an account in the state treasury.  Money in the account
 32-3    may be appropriated only to the department for the purposes of this
 32-4    chapter.
 32-5          (b)  The account is composed of money appropriated to the
 32-6    account and any other funds required to be put in the account.
 32-7          (c)  The department may seek and accept gifts, grants, and
 32-8    donations from any public or private entity on behalf of the
 32-9    account.
32-10          (d)  Section 403.095, Government Code, does not apply to the
32-11    account.
32-12          (e)  For each fiscal year, five percent of the total amount
32-13    in the account shall be held in reserve and may be used only for
32-14    reimbursement of unpaid tertiary medical services and stabilization
32-15    services provided as a result of extraordinary emergencies
32-16    occurring during that year.  Of the amount remaining, not more than
32-17    five percent may be used for the costs of administering the
32-18    account.
32-19          (f)  Except as provided by Subsection (e), the account shall
32-20    be allocated for payment to tertiary care facilities and level IV
32-21    trauma centers for unreimbursed tertiary medical services and
32-22    stabilization services, as provided for in Sections 46.005 and
32-23    46.006.
32-24          Sec. 46.004.  COLLECTION OF INFORMATION.  (a)  Each tertiary
32-25    care facility or level IV trauma facility that seeks payment under
32-26    this chapter shall submit to the department, in the manner and at
32-27    the time required by the department, information that relates to
 33-1    the unreimbursed tertiary medical services or stabilization
 33-2    services provided to persons who reside outside the service area of
 33-3    the county, public hospital, or hospital district that is
 33-4    responsible for indigent health care under Chapter 61 in the area
 33-5    in which the tertiary care facility or level IV trauma facility is
 33-6    located.
 33-7          (b)  The board shall adopt rules governing the collection of
 33-8    the information under Subsection (a).
 33-9          Sec. 46.005.  CERTIFICATION TO COMPTROLLER OF UNREIMBURSED
33-10    TERTIARY MEDICAL SERVICES.  (a)  The department shall certify to
33-11    the comptroller for each tertiary care facility the cost of
33-12    unreimbursed tertiary medical services provided to persons who
33-13    reside outside the service area of the county, public hospital, or
33-14    hospital district that is responsible for indigent health care
33-15    under Chapter 61 in the area in which the tertiary care facility is
33-16    located.
33-17          (b)  In each fiscal year the department shall use at least 86
33-18    percent of the appropriated money in the tertiary care account to
33-19    compensate tertiary care facilities for unreimbursed tertiary
33-20    medical services.
33-21          (c)  Each year the department shall make, for a facility that
33-22    operated as a tertiary care facility during the previous year, an
33-23    initial certification to the comptroller under Subsection (a) in an
33-24    amount that equals 80 percent of the amount certified under this
33-25    section for the facility in the previous year.  The department
33-26    shall make a subsequent certification of the cost of additional
33-27    unreimbursed tertiary medical services provided by the facility on
 34-1    receipt from the facility of the information required to be
 34-2    submitted under Section 46.004.
 34-3          (d)  Except as provided by Subsection (e), each year the
 34-4    comptroller shall pay a tertiary care facility the certified amount
 34-5    determined under Subsection (a) from the funds specified under
 34-6    Section 46.003(f).
 34-7          (e)  If in any year the total cost of unreimbursed tertiary
 34-8    medical services certified under Subsection (a) for all tertiary
 34-9    care facilities exceeds the amount available for payment to all
34-10    facilities under Section 46.003(f), less the amount allocated for
34-11    stabilization services under Section 46.006(b), the department
34-12    shall allocate the amount available under Section 46.003(f) to each
34-13    facility based on the percentages computed by dividing the cost of
34-14    the facility's unreimbursed tertiary medical services by the total
34-15    cost of all facilities' unreimbursed tertiary medical services.
34-16    The comptroller shall pay each tertiary care facility based on the
34-17    allocation made under this subsection.
34-18          (f)  For purposes of this section and Section 46.007, the
34-19    cost of each service provided by a tertiary care facility is the
34-20    average amount payable under Medicare reimbursement policies for
34-21    that service.
34-22          Sec. 46.006.  CERTIFICATION TO COMPTROLLER OF UNREIMBURSED
34-23    STABILIZATION SERVICES.  (a)  The department shall certify to the
34-24    comptroller for each tertiary care facility or level IV trauma
34-25    facility the cost of unreimbursed stabilization services provided
34-26    to persons who reside outside the service area of the county,
34-27    public hospital, or hospital district that is responsible for
 35-1    indigent health care under Chapter 61 in the area in which the
 35-2    tertiary care facility or level IV trauma facility is located.
 35-3          (b)  In each fiscal year the department shall use no more
 35-4    than four percent of the appropriated money in the tertiary care
 35-5    account to compensate tertiary care facilities and level IV trauma
 35-6    facilities for unreimbursed stabilization services.
 35-7          (c)  Each year the department shall make, for a facility that
 35-8    operated as a tertiary care facility or level IV trauma facility
 35-9    during the previous year, an initial certification to the
35-10    comptroller under Subsection (a) in an amount that equals 80
35-11    percent of the amount certified under this section for the facility
35-12    in the previous year.  The department shall make a subsequent
35-13    certification of the cost of additional unreimbursed stabilization
35-14    services provided by the facility on receipt from the facility of
35-15    the information required to be submitted under Section 46.004.
35-16          (d)  Except as provided by Subsection (e), each year the
35-17    comptroller shall pay a tertiary care facility or level IV trauma
35-18    facility the certified amount determined under Subsection (a) from
35-19    the funds specified under Section 46.003(f).
35-20          (e)  If in any year the total cost of unreimbursed
35-21    stabilization services certified under Subsection (a) for all
35-22    tertiary care facilities or level IV trauma facilities exceeds the
35-23    amount available for payment to the facilities under Section
35-24    46.003(f), as limited by Subsection (b), the department shall
35-25    allocate the amount available to each facility based on the
35-26    percentages computed by dividing the cost of the facility's
35-27    unreimbursed stabilization services by the total cost of all
 36-1    facilities' unreimbursed stabilization services.  The comptroller
 36-2    shall pay each tertiary care facility or level IV trauma facility
 36-3    based on the allocation made under this subsection.
 36-4          (f)  For purposes of this section and Section 46.007, the
 36-5    cost of each service provided by a tertiary care facility or level
 36-6    IV trauma facility is the average amount payable under Medicare
 36-7    reimbursement policies for that service.
 36-8          Sec. 46.007.  CERTIFICATION OF EMERGENCIES.  (a)  For
 36-9    purposes of reimbursing extraordinary emergencies under this
36-10    chapter, the department shall certify an extraordinary emergency:
36-11                (1)  if the governor issues an executive order or a
36-12    proclamation under Chapter 418, Government Code;
36-13                (2)  if a disaster is declared by the president of the
36-14    United States under the Robert T. Stafford Disaster Relief and
36-15    Emergency Assistance Act (42 U.S.C. Section 5121 et seq.); or
36-16                (3)  for another similar disaster the department finds
36-17    has resulted in an extraordinary cost to a tertiary care facility
36-18    or level IV trauma facility.
36-19          (b)  If an extraordinary emergency is certified under
36-20    Subsection (a), the department shall certify to the comptroller the
36-21    amount of unreimbursed tertiary medical services or stabilization
36-22    services incurred by a tertiary care facility or level IV trauma
36-23    facility, as appropriate, during the emergency.
36-24          (c)  Except as provided by Subsection (d), each year the
36-25    comptroller shall pay a tertiary care facility or level IV trauma
36-26    facility the certified amount determined under Subsection (b) from
36-27    the funds specified under Section 46.003(e).
 37-1          (d)  If in any year the total cost of unreimbursed tertiary
 37-2    medical services or stabilization services certified under
 37-3    Subsection (b) for all facilities exceeds the amount available for
 37-4    payment to the facilities under Section 46.003(e), the department
 37-5    shall allocate the amount available under Section 46.003(e) to each
 37-6    facility based on the percentages computed by dividing the cost of
 37-7    the facility's unreimbursed services by the total cost of all
 37-8    facilities' unreimbursed services.  The comptroller shall pay each
 37-9    tertiary care facility or level IV trauma facility based on the
37-10    allocation made under this subsection.
37-11          SECTION 2.02.  Section 773.003, Health and Safety Code, is
37-12    amended by adding Subdivision (22) to read as follows:
37-13                (22)  "Trauma services" includes services provided to a
37-14    severely or seriously injured patient who has a principal diagnosis
37-15    listed in the Injuries and Poisonings Chapter of the International
37-16    Classification of Diseases, Clinical Modification.
37-17                    ARTICLE 3. MISCELLANEOUS PROVISIONS
37-18                         FOR INDIGENT HEALTH CARE
37-19          SECTION 3.01.  Subtitle C, Title 2, Health and Safety Code,
37-20    is amended by adding Chapter 64 to read as follows:
37-21                   CHAPTER 64.  MISCELLANEOUS PROVISIONS
37-22          Sec. 64.001.  TEACHING HOSPITAL ACCOUNT.  The Texas
37-23    Department of Health state-owned multi-categorical teaching
37-24    hospital account is an account in the general revenue fund.  Money
37-25    in the account may be appropriated only to the department to
37-26    provide funding for indigent health care.
37-27               ARTICLE 4.  DISSOLUTION OF HOSPITAL DISTRICTS
 38-1          SECTION 4.01.  Chapter 285, Health and Safety Code, is
 38-2    amended by adding Subchapter K to read as follows:
 38-3              SUBCHAPTER K.  DISSOLUTION OF HOSPITAL DISTRICT
 38-4          Sec. 285.151.  ASSETS TRANSFERRED ON DISSOLUTION.
 38-5    Notwithstanding any general or special law, if a hospital district
 38-6    is dissolved and the money or other assets of the district are
 38-7    transferred to a county or other governmental entity under a
 38-8    process established in accordance with Section 9, Article IX, Texas
 38-9    Constitution, the governmental entity shall use all transferred
38-10    assets to:
38-11                (1)  pay the outstanding debts and obligations of the
38-12    district relating to the assets at the time of the transfer, if
38-13    any; and
38-14                (2)  furnish medical and hospital care for indigent
38-15    persons who reside in the territory within the jurisdiction of the
38-16    governmental entity.
38-17       ARTICLE 5.  FEDERAL AUTHORIZATION FOR STATE MEDICAID PROGRAM
38-18          SECTION 5.01.  FEDERAL AUTHORIZATION.  It is the intent of
38-19    the 76th Legislature that:
38-20                (1)  the Health and Human Services Commission or an
38-21    appropriate health and human services agency continue to pursue the
38-22    waiver or other authorization described by Section 4, Chapter 444,
38-23    Acts of the 74th Legislature, Regular Session, 1995;
38-24                (2)  the waiver or other authorization apply to
38-25    expansion of Medicaid eligibility, as described by Section 532.102,
38-26    Government Code, for both children and their families and other
38-27    adults; and
 39-1                (3)  the Health and Human Services Commission take any
 39-2    other appropriate action authorized under law to accomplish the
 39-3    expansion of Medicaid eligibility, as described by Section 532.102,
 39-4    Government Code, for children and their families and for other
 39-5    adults.
 39-6         ARTICLE 6.  STUDY RELATING TO BASIC HEALTH CARE SERVICES
 39-7                           AND STATE ASSISTANCE
 39-8          SECTION 6.01.  STUDY.  The Texas Department of Health shall:
 39-9                (1)  study the provision of basic health care services
39-10    by counties, hospital districts, and public hospitals under Chapter
39-11    61, Health and Safety Code, and the cost of providing those
39-12    services;
39-13                (2)  study the threshold for eligibility for state
39-14    assistance to a county established under Section 61.037, Health and
39-15    Safety Code, and develop a threshold to replace that threshold that
39-16    is stated as a formula and that reflects:
39-17                      (A)  a county's fiscal capacity;
39-18                      (B)  a county's health care resources; and
39-19                      (C)  the relevant characteristics of the county's
39-20    residents, including the percentage of the county's residents
39-21    living below the federal poverty level; and
39-22                (3)  study the financing of basic health care services
39-23    by counties, hospital districts, and public hospitals under Chapter
39-24    61, Health and Safety Code, including the use of:
39-25                      (A)  local, state, and federal funds; and
39-26                      (B)  the funds distributed to political
39-27    subdivisions under the Agreement Regarding Disposition of
 40-1    Settlement Proceeds filed on July 24, 1998, in the United States
 40-2    District Court, Eastern District of Texas, in the case styled The
 40-3    State of Texas vs. The American Tobacco Co., et al., No. 5-96CV-91.
 40-4          SECTION 6.02.  REPORT.  Not later than December 1, 2000, the
 40-5    Texas Department of Health shall submit a written report of the
 40-6    study conducted under this article to the governor, lieutenant
 40-7    governor, and speaker of the house of representatives.  The report
 40-8    must include the recommendations of the department, together with
 40-9    the proposed eligibility threshold described by Section 6.01(2) of
40-10    this article.
40-11          SECTION 6.03.  EXPIRATION.  This article expires August 31,
40-12    2001.
40-13            ARTICLE 7.  PILOT PROGRAM FOR REGIONAL HEALTH CARE
40-14                              DELIVERY SYSTEM
40-15          SECTION 7.01.  DEFINITIONS.  In this article:
40-16                (1)  "Commissioner" means the commissioner of health
40-17    and human services.
40-18                (2)  "Pilot program" means the regional health care
40-19    delivery system pilot program established under this article.
40-20          SECTION 7.02.  PILOT PROGRAM.  (a)  Not later than January 1,
40-21    2000, the commissioner shall establish a regional health care
40-22    delivery system pilot program to coordinate the use of health care
40-23    resources in a region of the state.  The pilot program must:
40-24                (1)  emphasize prevention services, continuity of care,
40-25    and the provision of a medical home for clients;
40-26                (2)  maximize the use of local and state funds by
40-27    obtaining any available federal matching funds;
 41-1                (3)  be designed to result in long-term cost savings to
 41-2    the participating entities;
 41-3                (4)  simplify eligibility criteria and streamline
 41-4    eligibility determinations; and
 41-5                (5)  improve accountability of indigent health care
 41-6    dollars.
 41-7          (b)  The commissioner may adopt rules as necessary to
 41-8    implement the pilot program. The rules may provide an alternative
 41-9    funding structure to the funding structure established under
41-10    Chapter 61, Health and Safety Code.
41-11          (c)  The commissioner may not require a county, public
41-12    hospital, hospital district, or other entity to participate in the
41-13    pilot program.
41-14          SECTION 7.03.  REPORT.  (a)  Not later than January 1, 2003,
41-15    the commissioner shall submit a written report relating to the
41-16    pilot program to the governor, lieutenant governor, and speaker of
41-17    the house of representatives.
41-18          (b)  The report must include:
41-19                (1)  an analysis of:
41-20                      (A)  the quality of health care services provided
41-21    under the pilot program; and
41-22                      (B)  the cost-effectiveness of providing health
41-23    care services through the pilot program; and
41-24                (2)  recommendations for legislation for implementing
41-25    regional health care delivery systems in this state, including
41-26    recommendations relating to:
41-27                      (A)  the structure of a regional entity to
 42-1    administer a regional health care delivery system;
 42-2                      (B)  the manner in which state assistance money
 42-3    may most effectively be distributed to support a regional health
 42-4    care delivery system; and
 42-5                      (C)  any other matter necessary to implement
 42-6    effective and efficient regional health care delivery systems in
 42-7    this state.
 42-8          SECTION 7.04.  EXPIRATION; TERMINATION OF PILOT PROGRAM.
 42-9    This section expires and the pilot program is terminated August 31,
42-10    2003.
42-11                   ARTICLE 8.  EFFECTIVE DATE; EMERGENCY
42-12          SECTION 8.01.  EFFECTIVE DATE.  This Act takes effect
42-13    September 1, 1999.
42-14          SECTION 8.02.  EMERGENCY.  The importance of this legislation
42-15    and the crowded condition of the calendars in both houses create an
42-16    emergency and an imperative public necessity that the
42-17    constitutional rule requiring bills to be read on three several
42-18    days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1398 was passed by the House on May
         6, 1999, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 1398 on May 27, 1999, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1398 was passed by the Senate, with
         amendments, on May 25, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor