76R12234 DLF-D                           
         By Coleman, Farabee, et al.                           H.B. No. 1398
         Substitute the following for H.B. No. 1398:
         By Coleman                                        C.S.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.
3-12           (c)  If the department determines that another governmental
3-13     entity or hospital district may be involved in the dispute, the
3-14     department shall notify the governmental entity or hospital
3-15     district and allow the governmental entity or hospital district to
3-16     respond.
3-17           (d)  From the information submitted, the department shall
3-18     determine the person's residence or whether the person is eligible
3-19     for assistance under this chapter, as appropriate, and shall notify
3-20     each governmental entity or hospital district and the provider of
3-21     assistance of the decision and the reasons for the decision.
3-22           (e)  If a governmental entity, hospital district, or provider
3-23     of assistance does not agree with the department's decision, the
3-24     governmental entity, hospital district, or provider of assistance
3-25     may file an appeal with the department.  The appeal must be filed
3-26     not later than the 30th day after the date on which the
3-27     governmental entity, hospital district, or provider of assistance
 4-1     receives notice of the decision.
 4-2           (f)  The department shall issue a final decision not later
 4-3     than the 21st day after the date on which the appeal is filed.
 4-4           (g)  A governmental entity, hospital district, or provider of
 4-5     assistance may appeal the final order of the department under
 4-6     Chapter 2001, Government Code, using the substantial evidence rule
 4-7     on appeal.
 4-8           (h)  Service may not be denied pending an administrative or
 4-9     judicial review of residence.
4-10           SECTION 1.03.  Subchapter A, Chapter 61, Health and Safety
4-11     Code, is amended by adding Section 61.0045 to read as follows:
4-12           Sec. 61.0045.  INFORMATION NECESSARY TO DETERMINE
4-13     ELIGIBILITY.  (a)  Any provider, including a mandated provider,
4-14     public hospital, or hospital district, that delivers health care
4-15     services to a patient who the provider suspects is an eligible
4-16     resident of the service area of a county, hospital district, or
4-17     public hospital under this chapter may require the patient to:
4-18                 (1)  provide any information necessary to establish
4-19     that the patient is an eligible resident of the service area of the
4-20     county, hospital district, or public hospital; and
4-21                 (2)  authorize the release of any information relating
4-22     to the patient, including medical information and information
4-23     obtained under Subdivision (1), to permit the provider to submit a
4-24     claim to the county, hospital district, or public hospital that is
4-25     liable for payment for the services as described by Section 61.033
4-26     or 61.060.
4-27           (b)  A county, hospital district, or public hospital  that
 5-1     receives information obtained under Subsection (a) shall use the
 5-2     information to determine whether the patient to whom services were
 5-3     provided is an eligible resident of the service area of the county,
 5-4     hospital district, or public hospital and, if so, shall pay the
 5-5     claim made by the provider in accordance with this chapter.
 5-6           (c)  The application, documentation, and verification
 5-7     procedures established by the department for counties under Section
 5-8     61.006 may include a standard format for obtaining information
 5-9     under Subsection (a) to facilitate eligibility and residence
5-10     determinations.
5-11           SECTION 1.04.  Sections 61.006 and 61.007, Health and Safety
5-12     Code, are amended to read as follows:
5-13           Sec. 61.006.  STANDARDS AND PROCEDURES.  (a)  The department
5-14     shall establish minimum eligibility standards and application,
5-15     documentation, and verification procedures for counties to use in
5-16     determining eligibility under this chapter.
5-17           (b)  The minimum eligibility standards must incorporate a net
5-18     income eligibility level equal to 25 percent of the federal poverty
5-19     level based on the federal Office of Management and Budget poverty
5-20     index [and procedures must be consistent with the standards and
5-21     procedures used by the Texas Department of Human Services to
5-22     determine eligibility in the AFDC-Medicaid program].
5-23           (b-1)  Notwithstanding Subsection (b), effective January 1,
5-24     2000, the minimum eligibility standards must incorporate a net
5-25     income eligibility level equal to 22 percent of the federal poverty
5-26     level based on the federal Office of Management and Budget poverty
5-27     index. This subsection expires December 31, 2000.
 6-1           (c)  The department shall also define the services and
 6-2     establish the payment standards for the categories of services
 6-3     listed in Sections [Section] 61.028(a) and 61.0285 in accordance
 6-4     with Texas Department of Human Services rules relating to the
 6-5     Temporary Assistance for Needy Families-Medicaid [AFDC-Medicaid]
 6-6     program.
 6-7           (d)  The department shall establish application,
 6-8     documentation, and verification procedures that are consistent with
 6-9     the analogous procedures used to determine eligibility in the
6-10     Temporary Assistance for Needy Families-Medicaid program.  The
6-11           [(b)  The department may simplify the AFDC-Medicaid standards
6-12     and procedures used by the Texas Department of Human Services as
6-13     necessary to provide efficient county administration.  In
6-14     establishing simplified standards and procedures for county
6-15     administration, the] department may not adopt a standard or
6-16     procedure that is more restrictive than the Temporary Assistance
6-17     for Needy Families-Medicaid program [AFDC-Medicaid standards] or
6-18     procedures.
6-19           (e) [(c)]  The department shall ensure that each person who
6-20     meets the basic income and resources requirements for Temporary
6-21     Assistance for Needy Families program [AFDC] payments but who is
6-22     categorically ineligible for Temporary Assistance for Needy
6-23     Families [AFDC]  will be eligible for assistance under Subchapter
6-24     B. Except as provided by Section 61.023(b), the [The] department by
6-25     rule  shall also provide that a person who receives or is eligible
6-26     to receive Temporary Assistance for Needy Families, Supplemental
6-27     Security Income [AFDC, SSI], or Medicaid  benefits is not eligible
 7-1     for assistance under Subchapter B even if the person has exhausted
 7-2     a part or all of that person's [AFDC, SSI, or Medicaid] benefits.
 7-3           (f) [(d)]  The department shall notify each county and public
 7-4     hospital of any change to department rules [AFDC or Medicaid
 7-5     guidelines] that affect the provision of services under this
 7-6     chapter [and shall amend the rules adopted under this chapter to
 7-7     reflect the changes made in the AFDC or Medicaid programs].
 7-8           (g) [(e)]  Notwithstanding Subsection (a), (b), or (c) or any
 7-9     other provision of law, the department shall permit payment to a
7-10     licensed dentist for services provided under Sections 61.028(a)(4)
7-11     and (6) [61.028(a)(3) and (a)(5) to the extent that these  services
7-12     are required by Section 61.028(a)(5)] if the dentist can provide
7-13     those services within the scope of the dentist's license.
7-14           (h) [(f)]  Notwithstanding Subsection (a), (b), or (c), the
7-15     department shall permit payment to a licensed podiatrist for
7-16     services provided under Sections 61.028(a)(4) and (6) [61.028(a)(3)
7-17     and (a)(5) to the extent that the services are required by Section
7-18     61.028(a)(5)], if the podiatrist can provide the services within
7-19     the scope of the podiatrist's license.
7-20           Sec. 61.007.  INFORMATION PROVIDED BY APPLICANT.  The
7-21     department by rule shall require each applicant to provide at least
7-22     the following information:
7-23                 (1)  the applicant's full name and address;
7-24                 (2)  the applicant's social security number, if
7-25     available;
7-26                 (3)  the number of persons in the applicant's
7-27     household, excluding persons receiving Temporary Assistance for
 8-1     Needy Families, Supplemental Security Income [AFDC, SSI], or
 8-2     Medicaid benefits;
 8-3                 (4)  the applicant's county of residence;
 8-4                 (5)  the existence of insurance coverage or other
 8-5     hospital or health care benefits for which the applicant is
 8-6     eligible;
 8-7                 (6)  any transfer of title to real property that the
 8-8     applicant has made in the preceding 24 months;
 8-9                 (7)  the applicant's annual household income, excluding
8-10     the income of any household member receiving Temporary Assistance
8-11     for Needy Families, Supplemental Security Income [AFDC, SSI], or
8-12     Medicaid benefits; and
8-13                 (8)  the amount of the applicant's liquid assets and
8-14     the equity value of the applicant's car and real property.
8-15           SECTION 1.05.  Section 61.023(b), Health and Safety Code, is
8-16     amended to read as follows:
8-17           (b)  A county may use a less restrictive standard of
8-18     eligibility for residents than prescribed by Subsection (a) and may
8-19     credit the services provided to all persons who are eligible
8-20     residents under that standard toward eligibility for state
8-21     assistance under this subchapter.
8-22           SECTION 1.06.  Subchapter B, Chapter 61, Health and Safety
8-23     Code, is amended by adding Section 61.0235 to read as follows:
8-24           Sec. 61.0235.  COUNTY JAIL INMATES.  (a)  A county may elect
8-25     to treat as eligible county residents the inmates of a county jail
8-26     in the county who satisfy the eligibility requirements applicable
8-27     in the county under Sections 61.023(a)(2) and (3) or (b), but who:
 9-1                 (1)  do not reside in the county; or
 9-2                 (2)  reside in the service area of a public hospital or
 9-3     hospital district in the county.
 9-4           (b)  A county that elects to treat inmates as eligible county
 9-5     residents under Subsection (a) must waive any right to
 9-6     reimbursement from other counties or from public hospitals or
 9-7     hospital districts in whose service areas the inmates reside.
 9-8           (c)  A county may credit the services provided to each inmate
 9-9     who is treated as an eligible county resident under Subsection (a)
9-10     toward eligibility for state assistance under this subchapter.
9-11           SECTION 1.07.  Section 61.025(d), Health and Safety Code, is
9-12     amended to read as follows:
9-13           (d)  Expenditures made by the county under Subsection (b) may
9-14     be credited toward eligibility for state assistance under this
9-15     subchapter if the person who received the health care services
9-16     meets the eligibility standards established under Section 61.052
9-17     [Sections 61.006 and 61.008] and would have been eligible for
9-18     assistance under the county program if the person had not resided
9-19     in a public hospital's service area.
9-20           SECTION 1.08.  Section 61.028, Health and Safety Code, is
9-21     amended to read as follows:
9-22           Sec. 61.028.  BASIC [MANDATORY] HEALTH CARE SERVICES.  (a)  A
9-23     county shall, in accordance with department rules adopted under
9-24     Section 61.006, provide the following basic health care services:
9-25                 (1)  primary and preventative services designed to meet
9-26     the needs of the community, including:
9-27                       (A)  immunizations;
 10-1                      (B)  medical screening services; and
 10-2                      (C)  annual physical examinations;
 10-3                (2)  inpatient and outpatient hospital services;
 10-4                (3)  health clinics, including [(2)]  rural health
 10-5    clinics, if appropriate;
 10-6                (4) [(3)]  laboratory and X-ray services;
 10-7                (5) [(4)]  family planning services;
 10-8                (6) [(5)]  physician services;
 10-9                (7) [(6)]  payment for not more than three prescription
10-10    drugs a month; and
10-11                (8) [(7)]  skilled nursing facility services,
10-12    regardless of the patient's age.
10-13          (b)  The county may provide additional health care services,
10-14    but may not credit the assistance toward eligibility for state
10-15    assistance, except as provided by Section 61.0285.
10-16          SECTION 1.09.  Subchapter B, Chapter 61, Health and Safety
10-17    Code, is amended by adding Section 61.0285 to read as follows:
10-18          Sec. 61.0285.  OPTIONAL HEALTH CARE SERVICES.  (a)  In
10-19    addition to basic health care services provided  under Section
10-20    61.028, a county may, in accordance with department rules adopted
10-21    under Section 61.006, provide other medically necessary services or
10-22    supplies that the county determines to be cost-effective,
10-23    including:
10-24                (1)  ambulatory surgical center services;
10-25                (2)  diabetic and colostomy medical supplies and
10-26    equipment;
10-27                (3)  durable medical equipment;
 11-1                (4)  home and community health care services;
 11-2                (5)  services provided by licensed master medical
 11-3    social workers--advanced clinical practitioners;
 11-4                (6)  psychological counseling services;
 11-5                (7)  services provided by physician assistants, nurse
 11-6    practitioners, certified nurse midwives, clinical nurse
 11-7    specialists, and certified registered nurse anesthetists;
 11-8                (8)  dental care;
 11-9                (9)  vision care, including eyeglasses; and
11-10                (10)  any other appropriate health care service
11-11    identified by board rule that may be determined to be
11-12    cost-effective.
11-13          (b)  A county must notify the department of the county's
11-14    intent to provide services specified by Subsection (a).  If the
11-15    services are approved by the department under Section 61.006, or if
11-16    the department fails to notify the county of the department's
11-17    disapproval before the 31st day after the date the county notifies
11-18    the department of its intent to provide the services, the county
11-19    may credit the services toward eligibility for state assistance
11-20    under this subchapter.
11-21          (c)  A county may provide health care services that are not
11-22    specified in Subsection (a), or may provide the services specified
11-23    in Subsection (a) without actual or constructive approval of the
11-24    department, but may not credit the services toward eligibility for
11-25    state assistance.
11-26          SECTION 1.10.  Section 61.031(b), Health and Safety Code, is
11-27    amended to read as follows:
 12-1          (b)  If the county does not require prior approval and a
 12-2    provider delivers or will deliver nonemergency health care services
 12-3    to a patient who the provider suspects may be eligible for
 12-4    assistance under this subchapter, the provider shall notify the
 12-5    patient's county of residence that health care services have been
 12-6    or will be provided to the patient.  The notice shall be made:
 12-7                (1)  by telephone not later than the 72nd hour [as soon
 12-8    as  possible] after the provider determines the patient's county of
 12-9    residence; and
12-10                (2)  by mail postmarked not later than the fifth
12-11    [third] working day after the date on which the provider determines
12-12    the patient's county of residence.
12-13          SECTION 1.11.  Section 61.032(a), Health and Safety Code, is
12-14    amended to read as follows:
12-15          (a)  If a nonmandated provider delivers emergency services to
12-16    a patient who the provider suspects might be eligible for
12-17    assistance under this subchapter, the provider shall notify the
12-18    patient's county of residence that emergency services have been or
12-19    will be provided to the patient.  The notice shall be made:
12-20                (1)  by telephone not later than the 72nd hour [as soon
12-21    as possible] after the provider determines the patient's county of
12-22    residence; and
12-23                (2)  by mail postmarked not later than the fifth
12-24    [third] working day after the date on which the provider determines
12-25    the patient's county of residence.
12-26          SECTION 1.12.  Section 61.034, Health and Safety Code, is
12-27    amended to read as follows:
 13-1          Sec. 61.034.  PAYMENT STANDARDS FOR [MANDATORY] HEALTH CARE
 13-2    SERVICES.  (a)  A county is not liable for the cost of a
 13-3    [mandatory] health  care  service provided under Section 61.028 or
 13-4    61.0285 that is in excess of the payment standards for that service
 13-5    established by the  department under Section 61.006.
 13-6          (b)  A county may contract with a provider of assistance to
 13-7    provide a health care service at a rate below the payment standard
 13-8    set by the department.
 13-9          SECTION 1.13.  Section 61.036(b), Health and Safety Code, is
13-10    amended to read as follows:
13-11          (b)  Except as provided by Section 61.023(b), a [A] county
13-12    may not credit an expenditure for an applicant toward eligibility
13-13    for state assistance if the applicant does not meet the
13-14    department's eligibility standards.
13-15          SECTION 1.14.  Sections 61.037, 61.038, and 61.039, Health
13-16    and Safety Code, are amended to read as follows:
13-17          Sec. 61.037.  COUNTY ELIGIBILITY FOR STATE ASSISTANCE.  (a)
13-18    The department may distribute funds as provided by this subchapter
13-19    to eligible counties to assist the counties in providing
13-20    [mandatory] health care services under Sections 61.028 and 61.0285
13-21    to their eligible county residents.
13-22          (b)  Except as provided by Subsection (c), (d), [or] (e), or
13-23    (g), to be eligible for state assistance, a county must:
13-24                (1)  spend in a state fiscal year at least eight [10]
13-25    percent of the county general revenue levy for that year to provide
13-26    [mandatory] health care services described by Subsection (a) to its
13-27    eligible county residents who qualify for assistance under Section
 14-1    61.023 [61.006]; and
 14-2                (2)  notify the department, not later than the seventh
 14-3    day after the date on which the county reaches the expenditure
 14-4    level, that the county has spent at least six [eight] percent of
 14-5    the applicable 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].
 14-9          (c)  If a county and a health care provider signed a contract
14-10    on or before January 1, 1985, under which the provider agrees to
14-11    furnish a certain level of health care services to indigent
14-12    persons, the value of services furnished in a state fiscal year
14-13    under the contract is included as part of the computation of a
14-14    county expenditure under this section if the value of services does
14-15    not exceed the payment rate established by the department under
14-16    Section 61.006.
14-17          (d)  If a hospital district is located in part but not all of
14-18    a county, that county's appraisal district shall determine the
14-19    taxable value of the property located inside the county but outside
14-20    the hospital district.  In determining eligibility for state
14-21    assistance, that county shall consider only the county general
14-22    revenue levy resulting from the property located outside the
14-23    hospital district.  A county is eligible for state assistance if:
14-24                (1)  the county spends in a state fiscal year at least
14-25    eight [10] percent of the county general revenue levy for that year
14-26    resulting from the property located outside the hospital district
14-27    to provide [mandatory] health care services described by Subsection
 15-1    (a) to its eligible county residents who qualify for assistance
 15-2    under Section 61.023 [61.006]; and
 15-3                (2)  the county complies with the other requirements of
 15-4    this subchapter.
 15-5          (e)  A county that provides [mandatory] health care services
 15-6    described by Subsection (a) to its eligible residents through a
 15-7    hospital established by a board of managers jointly appointed by a
 15-8    county and a municipality under Section 265.011 is eligible for
 15-9    state assistance if:
15-10                (1)  the county spends in a state fiscal year at least
15-11    eight  [10] percent of the county general revenue levy for the year
15-12    to provide the [mandatory] health care services to its eligible
15-13    county residents who qualify for assistance under Section 61.052
15-14    [61.006]; and
15-15                (2)  the county complies with the requirements of this
15-16    subchapter.
15-17          (f)  If a county anticipates that it will reach the eight
15-18    [10] percent expenditure level, the county must notify the
15-19    department as soon as possible before the anticipated date on which
15-20    the county will reach the level.
15-21          (g)  The department may waive the requirement that the county
15-22    meet the minimum expenditure level imposed by Subsection (b), (d),
15-23    or (e) and provide state assistance under this chapter at a lower
15-24    level determined by the department if the county demonstrates that
15-25    the county is unable to satisfy the eight percent expenditure
15-26    level:
15-27                (1)  because, although the county's general revenue tax
 16-1    levy has increased significantly, expenditures for health care
 16-2    services described by Subsection (a) have not increased by the same
 16-3    percentage;
 16-4                (2)  because the county is at the maximum allowable ad
 16-5    valorem tax rate, has a small population, or has insufficient
 16-6    taxable property; or
 16-7                (3)  because of a similar reason.
 16-8          (h)  The department shall adopt rules governing the
 16-9    circumstances under which a waiver may be granted under Subsection
16-10    (g) and the procedures to be used by a county to apply for the
16-11    waiver. The procedures must provide that the department shall make
16-12    a determination with respect to an application for a waiver not
16-13    later than the 90th day after the date the application is submitted
16-14    to the department in accordance with the procedures established by
16-15    the department. To be eligible for state assistance under
16-16    Subsection (g), a county must submit monthly financial reports, in
16-17    the form required by the department, covering the 12-month period
16-18    preceding the date on which the assistance is sought.
16-19          (i)  The county must give the department all necessary
16-20    information so that the department can determine if the county
16-21    meets the requirements of Subsection (b), (d), [or] (e), or (g).
16-22          Sec. 61.038.  DISTRIBUTION OF ASSISTANCE FUNDS.  (a)  If the
16-23    department determines that a county is eligible for assistance, the
16-24    department shall distribute funds appropriated to the department
16-25    from the indigent health care assistance fund or any other
16-26    available fund to the county to assist the county in providing
16-27    [mandatory] health care services under Sections 61.028 and 61.0285
 17-1    to its eligible county residents who qualify for assistance as
 17-2    described by Section 61.037 [under Section 61.006].
 17-3          (b)  State funds provided under this section to a county must
 17-4    be equal to at least 90 [80] percent of the actual payment for the
 17-5    [mandatory] health care services for the county's eligible
 17-6    residents during the remainder of the state fiscal year after the
 17-7    eight [10] percent expenditure level is reached.
 17-8          Sec. 61.039.  FAILURE TO PROVIDE STATE ASSISTANCE.  If the
 17-9    department fails to provide assistance to an eligible county as
17-10    prescribed by Section 61.038, the county is not liable for payments
17-11    for health care services provided to its eligible county residents
17-12    after the county reaches the eight [10] percent expenditure level.
17-13          SECTION 1.15.  Section 61.041, Health and Safety Code, is
17-14    amended by amending Subsections (a) and (b) and adding Subsection
17-15    (d) to read as follows:
17-16          (a)  The department shall establish monthly reporting
17-17    requirements for a county seeking state assistance and establish
17-18    procedures necessary to determine if the county is eligible for
17-19    state assistance.
17-20          (b)  The department shall establish requirements relating to:
17-21                (1)  documentation required to verify the eligibility
17-22    of residents to whom  the county provides assistance; and
17-23                (2)  county expenditures for [mandatory] health care
17-24    services under Sections 61.028 and 61.0285.
17-25          (d)  The department shall establish annual reporting
17-26    requirements for each county that is required to provide indigent
17-27    health care under this chapter but that is not required to report
 18-1    under Subsection (a).  A county satisfies the annual reporting
 18-2    requirement of this subsection if the county submits information to
 18-3    the department as required by law to obtain an annual distribution
 18-4    under the Agreement Regarding Disposition of Settlement Proceeds
 18-5    filed on July 24, 1998,  in  the United  States  District  Court,
 18-6    Eastern District of Texas, in the case styled The State of Texas v.
 18-7    The American Tobacco Co., et al., No. 5-96CV-91.
 18-8          SECTION 1.16.  Section 61.052, Health and Safety Code, is
 18-9    amended by adding Subsection (g) to read as follows:
18-10          (g)  A county that provides health care services to its
18-11    eligible residents through a hospital established by a board of
18-12    managers jointly appointed by a county and a municipality under
18-13    Section 265.011 and that establishes an income and resources
18-14    standard in accordance with Subsection (a)(2) may credit the
18-15    services provided to all persons who are eligible under that
18-16    standard toward eligibility for state assistance as described by
18-17    Section 61.037(e).
18-18          SECTION 1.17.  Section 61.054(a), Health and Safety Code, is
18-19    amended to read as follows:
18-20          (a)  A public hospital shall provide the basic health care
18-21    [inpatient and outpatient hospital] services a county is required
18-22    to provide under Section 61.028 [61.028(a)(1)].
18-23          SECTION 1.18.  Section 61.055, Health and Safety Code, is
18-24    amended to read as follows:
18-25          Sec. 61.055.  SERVICES PROVIDED BY HOSPITAL DISTRICTS.  A
18-26    hospital district shall provide the basic health care services a
18-27    county is required to provide under Section 61.028, together with
 19-1    any other services required under the Texas Constitution and the
 19-2    statute creating the district.
 19-3          SECTION 1.19.  Section 61.058(b), Health and Safety Code, is
 19-4    amended to read as follows:
 19-5          (b)  If the public hospital does not require prior approval
 19-6    and a provider delivers or will deliver nonemergency health care
 19-7    services to a patient who the provider suspects might be eligible
 19-8    for assistance under this subchapter, the provider shall notify the
 19-9    hospital that health care services have been or will be provided to
19-10    the patient.  The notice shall be made:
19-11                (1)  by telephone not later than the 72nd hour [as soon
19-12    as possible] after the provider determines that the patient resides
19-13    in the hospital's service area; and
19-14                (2)  by mail postmarked not later than the fifth
19-15    [third] working day after the date on which the provider determines
19-16    that the patient resides in the hospital's service area.
19-17          SECTION 1.20.  Section 61.059(a), Health and Safety Code, is
19-18    amended to read as follows:
19-19          (a)  If a nonmandated provider delivers emergency services to
19-20    a patient who the provider suspects might be eligible for
19-21    assistance under this subchapter, the provider shall notify the
19-22    hospital that emergency services have been or will be provided to
19-23    the patient.  The notice shall be made:
19-24                (1)  by telephone not later than the 72nd hour [as soon
19-25    as possible] after the provider determines that the patient resides
19-26    in the hospital's service area; and
19-27                (2)  by mail postmarked not later than the fifth
 20-1    [third] working day after the date on which the provider determines
 20-2    that the patient resides in the hospital's service area.
 20-3          SECTION 1.21.  Section 61.062, Health and Safety Code, is
 20-4    amended to read as follows:
 20-5          Sec. 61.062.  RESPONSIBILITY OF GOVERNMENTAL ENTITY.  A
 20-6    governmental entity that owns, operates, or leases a public
 20-7    hospital shall provide sufficient funding to the hospital to
 20-8    provide basic [mandatory] health care services [assistance].
 20-9          SECTION 1.22.  Section 61.064(a), Health and Safety Code, is
20-10    amended to read as follows:
20-11          (a)  A governmental entity that owns, operates, or leases a
20-12    public hospital and that closes, sells, or leases the hospital:
20-13                (1)  has the obligation to provide basic [mandatory]
20-14    health care services [assistance] under this chapter;
20-15                (2)  shall adopt the eligibility standards that the
20-16    hospital was or would have been required to adopt; and
20-17                (3)  shall provide the same services the hospital was
20-18    or would have been required to provide under this chapter on the
20-19    date of the closing, sale, or lease.
20-20          SECTION 1.23.  Section 531.204(b), Government Code, is
20-21    amended to read as follows:
20-22          (b)  The report must include:
20-23                (1)  identification of significant problems in the
20-24    Texas Integrated Enrollment Services, with recommendations for
20-25    action by the commissioner;
20-26                (2)  the status of the effectiveness of the Texas
20-27    Integrated Enrollment Services in providing necessary services to
 21-1    the people of this state, with recommendations for any necessary
 21-2    research;
 21-3                (3)  an analysis of the feasibility of including
 21-4    indigent health care programs provided by counties, public
 21-5    hospitals, and hospital districts in the Texas Integrated
 21-6    Enrollment Services, a schedule for inclusion of these programs,
 21-7    and a statement of how the Texas Integrated Enrollment Services may
 21-8    be structured to address the wide variation in information systems
 21-9    used by counties, public hospitals, and hospital districts; and
21-10                (4) [(3)]  recommendations for legislative action.
21-11          SECTION 1.24.  Chapter 26, Tax Code, is amended by adding
21-12    Section 26.0441 to read as follows:
21-13          Sec. 26.0441.  TAX RATE ADJUSTMENT FOR INDIGENT HEALTH CARE.
21-14    (a)  In the first tax year in which a taxing unit adopts a tax rate
21-15    after January 1, 2000, and in which the enhanced minimum
21-16    eligibility standards for indigent health care established under
21-17    Section 61.006, Health and Safety Code, apply to the taxing unit,
21-18    the effective maintenance and operations rate for the taxing unit
21-19    is increased by the rate computed according to the following
21-20    formula:
21-21                             Enhanced Indigent Health Care Expenditures
21-22    Amount of Increase =     __________________________________________
21-23                             (Current Total Value - New Property Value)
21-24          (b)  In each subsequent tax year, if the taxing unit's
21-25    enhanced indigent health care expenses exceed the amount of those
21-26    expenses for the preceding year, the effective maintenance and
21-27    operations rate for the taxing unit is increased by the rate
 22-1    computed according to the following formula:
 22-2                             (Current  Tax  Year's   Enhanced  Indigent
 22-3                             Health  Care  Expenditures - Preceding Tax
 22-4                             Year's Indigent  Health Care Expenditures)
 22-5    Amount of Increase =     __________________________________________
 22-6                             (Current Total Value - New Property Value)
 22-7          (c)  The taxing unit shall include a notice of the increase
 22-8    in its effective maintenance and operations rate provided by this
 22-9    section, including a brief description and the amount of the
22-10    enhanced indigent health care expenditures, in the information
22-11    published under Section 26.04(e) and, if applicable, Section
22-12    26.06(b).
22-13          (d)  In this section, "enhanced indigent health care
22-14    expenditures" for a tax year means the amount spent by the taxing
22-15    unit for the maintenance and operation costs of providing indigent
22-16    health care at the increased minimum eligibility standards
22-17    established under Section 61.006, Health and Safety Code, effective
22-18    on or after January 1, 2000, in the period beginning on July 1 of
22-19    the year preceding the tax year for which the tax is adopted and
22-20    ending on June 30 of the tax year for which the tax is adopted,
22-21    less the amount of state assistance received by the taxing unit in
22-22    accordance with Chapter 61, Health and Safety Code, that is
22-23    attributable to those costs.
22-24          (e)  In the 2000 and 2001 tax years, a taxing unit's enhanced
22-25    indigent health care expenditures for the 2000 tax year are
22-26    computed under Subsection (d) using the taxing unit's expenditures
22-27    for the maintenance and operation costs of providing indigent
 23-1    health care at the increased minimum eligibility standards
 23-2    described by Subsection (d) for the period beginning on January 1,
 23-3    2000, and ending on June 30, 2000, instead of for the period
 23-4    described by Subsection (d).  This subsection expires January 1,
 23-5    2002.
 23-6          SECTION 1.25.  (a)  The change in law made by this article to
 23-7    Chapter 61, Health and Safety Code, applies only to:
 23-8                (1)  health care services under Chapter 61, Health and
 23-9    Safety Code, as amended by this article, that are delivered on or
23-10    after January 1, 2000; and
23-11                (2)  state assistance under Chapter 61, Health and
23-12    Safety Code, as amended by this article, for the services described
23-13    by Subdivision (1) of this subsection.
23-14          (b)  Health care services under Chapter 61, Health and Safety
23-15    Code, as amended by this article, that are delivered before January
23-16    1, 2000, and state assistance for those services are governed by
23-17    the law as it existed immediately before that date and that law is
23-18    continued in effect for this purpose.
23-19          SECTION 1.26.  The Texas Department of Health shall study the
23-20    feasibility of requiring or permitting a county, public hospital,
23-21    and hospital district to issue a uniform identification card to an
23-22    eligible county resident or eligible service area resident, as
23-23    appropriate, that identifies the resident as eligible for health
23-24    care assistance under Chapter 61, Health and Safety Code.  Not
23-25    later than December 15, 2000, the department shall report the
23-26    results of its study to the governor, lieutenant governor, and
23-27    speaker of the house of representatives.
 24-1                         ARTICLE 2.  TERTIARY CARE
 24-2          SECTION 2.01.  Subtitle B, Title 2, Health and Safety Code,
 24-3    is amended by adding Chapter 46 to read as follows:
 24-4                    CHAPTER 46.  TERTIARY MEDICAL CARE
 24-5          Sec. 46.001.  DEFINITIONS.  In this chapter:
 24-6                (1)  "Tertiary care facility" means a:
 24-7                      (A)  primary teaching hospital of a medical
 24-8    school;
 24-9                      (B)  level 1 trauma center;
24-10                      (C)  level 2 trauma center; or
24-11                      (D)  level 3 trauma center.
24-12                (2)  "Tertiary medical services" includes services
24-13    provided by burn centers and neonatology Level III units, pediatric
24-14    and trauma surgery, neurosurgery, cardiothoracic and vascular
24-15    surgery, organ transplant, services provided for a life-threatening
24-16    dermatologic illness, services provided to a person with a high
24-17    risk pregnancy or cancer, and radiation oncology.
24-18                (3)  "Unreimbursed tertiary medical service" means a
24-19    tertiary medical service for which a tertiary care facility has not
24-20    received from any public or private source any payment that is
24-21    directly attributable to the particular service.
24-22          Sec. 46.002.  RULES.  The board may adopt rules to implement
24-23    this chapter.
24-24          Sec. 46.003.  TERTIARY CARE FACILITY ACCOUNT.  (a)  The
24-25    tertiary care facility account is an account in the state treasury.
24-26    Money in the account may be appropriated only to the department for
24-27    the purposes of this chapter.
 25-1          (b)  The account is composed of money appropriated to the
 25-2    account and any other funds required to be put in the account.
 25-3          (c)  The department may seek and accept gifts, grants, and
 25-4    donations from any public or private entity on behalf of the
 25-5    account.
 25-6          (d)  Section 403.095, Government Code, does not apply to the
 25-7    account.
 25-8          (e)  For each fiscal year, five percent of the total amount
 25-9    in the account shall be held in reserve and may be used only to pay
25-10    for unreimbursed tertiary medical services provided as a result of
25-11    extraordinary emergencies occurring during that year in accordance
25-12    with this chapter.  Of the amount remaining, not more than five
25-13    percent may be used for the costs of administering the account.
25-14          Sec. 46.004.  COLLECTION OF INFORMATION.  (a)  A tertiary
25-15    care facility that seeks payment under this chapter shall submit to
25-16    the department, in the manner and at the time required by the
25-17    department, information that relates to the unreimbursed tertiary
25-18    medical services provided to persons who reside outside the service
25-19    area of the county, public hospital, or hospital district that is
25-20    responsible for indigent health care under Chapter 61 in the area
25-21    in which the tertiary care facility is located.
25-22          (b)  The board shall adopt rules governing the collection of
25-23    the information under Subsection (a).
25-24          Sec. 46.005.  CERTIFICATION TO COMPTROLLER.  (a)  The
25-25    department shall certify to the comptroller for each tertiary care
25-26    facility the cost of unreimbursed tertiary medical services
25-27    provided by the facility to persons who reside outside the service
 26-1    area of the county, public hospital, or hospital district that is
 26-2    responsible for indigent health care under Chapter 61 in the area
 26-3    in which the tertiary care facility is located.
 26-4          (b)  Each year the department shall make, for a facility that
 26-5    was a designated tertiary care facility during the previous year,
 26-6    an initial certification to the comptroller under Subsection (a) in
 26-7    an amount that equals 80 percent of the amount certified under this
 26-8    section for the facility in the previous year. The department shall
 26-9    make a subsequent certification of the cost of additional
26-10    unreimbursed tertiary medical services provided by the facility on
26-11    receipt from the facility of the information required to be
26-12    submitted under Section 46.004.
26-13          (c)  If in any year the total cost of unreimbursed tertiary
26-14    medical services certified under Subsection (a) for all tertiary
26-15    care facilities exceeds the amount available for payment to the
26-16    facilities under Section 46.003(e), the department shall allocate
26-17    the amount available under Section 46.003(e) to each facility based
26-18    on the percentages computed by dividing the cost of the facility's
26-19    unreimbursed tertiary medical services by the total cost of all
26-20    facilities' unreimbursed tertiary medical services.
26-21          (d)  For purposes of this section and Section 46.006, the
26-22    cost of each unreimbursed tertiary medical service provided is the
26-23    average amount payable under Medicare for services for the
26-24    Medicare diagnosis related groups applicable to the tertiary
26-25    medical services provided by a tertiary care facility.
26-26          Sec. 46.006.  CERTIFICATION OF EMERGENCIES.  (a)  For
26-27    purposes of reimbursing extraordinary emergencies under this
 27-1    chapter, the department shall certify an extraordinary emergency:
 27-2                (1)  if the governor issues an executive order or a
 27-3    proclamation under Chapter 418, Government Code;
 27-4                (2)  if a disaster is declared by the president of the
 27-5    United States under the Robert T. Stafford Disaster Relief and
 27-6    Emergency Assistance Act (42 U.S.C. Section 5121 et seq.); or
 27-7                (3)  for another similar disaster the department finds
 27-8    has resulted in an extraordinary cost to a tertiary care facility.
 27-9          (b)  If an extraordinary emergency is declared under
27-10    Subsection (a), the department shall certify to the comptroller the
27-11    amount of unreimbursed tertiary medical services incurred by a
27-12    tertiary care facility during the emergency.
27-13          (c)  The comptroller shall pay the tertiary care facility.
27-14       ARTICLE 3.  FEDERAL AUTHORIZATION FOR STATE MEDICAID PROGRAM
27-15          SECTION 3.01.  FEDERAL AUTHORIZATION.  It is the intent of
27-16    the 76th Legislature that:
27-17                (1)  the Health and Human Services Commission or an
27-18    appropriate health and human services agency continue to pursue the
27-19    waiver or other authorization described by Section 4, Chapter 444,
27-20    Acts of the 74th Legislature, Regular Session, 1995;
27-21                (2)  the waiver or other authorization apply to
27-22    expansion of Medicaid eligibility, as described by Section 532.102,
27-23    Government Code, for both children and their families and other
27-24    adults; and
27-25                (3)  the Health and Human Services Commission take any
27-26    other appropriate action authorized under law to accomplish the
27-27    expansion of Medicaid eligibility, as described by Section 532.102,
 28-1    Government Code, for children and their families and for other
 28-2    adults.
 28-3         ARTICLE 4.  STUDY RELATING TO BASIC HEALTH CARE SERVICES
 28-4                           AND STATE ASSISTANCE
 28-5          SECTION 4.01.  STUDY.  The Texas Department of Health shall:
 28-6                (1)  study the provision of basic health care services
 28-7    by counties, hospital districts, and public hospitals under Chapter
 28-8    61, Health and Safety Code, and the cost of providing those
 28-9    services; and
28-10                (2)  study the threshold for eligibility for state
28-11    assistance to a county established under Section 61.037, Health and
28-12    Safety Code, and develop a threshold to replace that threshold that
28-13    is stated as a formula and that reflects:
28-14                      (A)  a county's fiscal capacity;
28-15                      (B)  a county's health care resources; and
28-16                      (C)  the relevant characteristics of the county's
28-17    residents, including the percentage of the county's residents
28-18    living below the federal poverty level.
28-19          SECTION 4.02.  REPORT.  Not later than December 1, 2000, the
28-20    Texas Department of Health shall submit a written report of the
28-21    study conducted under this article to the governor, lieutenant
28-22    governor, and speaker of the house of representatives.  The report
28-23    must include the recommendations of the department, together with
28-24    the proposed eligibility threshold described by Section 4.01(2) of
28-25    this article.
28-26          SECTION 4.03.  EXPIRATION.  This article expires August 31,
28-27    2001.
 29-1            ARTICLE 5.  PILOT PROGRAM FOR REGIONAL HEALTH CARE
 29-2                              DELIVERY SYSTEM
 29-3          SECTION 5.01.  DEFINITIONS.  In this article:
 29-4                (1)  "Commissioner" means the commissioner of health
 29-5    and human services.
 29-6                (2)  "Pilot program" means the regional health care
 29-7    delivery system pilot program established under this article.
 29-8          SECTION 5.02.  PILOT PROGRAM.  (a)  Not later than January 1,
 29-9    2000, the commissioner shall establish a regional health care
29-10    delivery system pilot program to coordinate the use of health care
29-11    resources in a region of the state.  The pilot program must:
29-12                (1)  emphasize prevention services, continuity of care,
29-13    and the provision of a medical home for clients;
29-14                (2)  maximize the use of local and state funds by
29-15    obtaining any available federal matching funds;
29-16                (3)  be designed to result in long-term cost savings to
29-17    the participating entities;
29-18                (4)  simplify eligibility criteria and streamline
29-19    eligibility determinations; and
29-20                (5)  improve accountability of indigent health care
29-21    dollars.
29-22          (b)  The commissioner may adopt rules as necessary to
29-23    implement the pilot program. The rules may provide an alternative
29-24    funding structure to the funding structure established under
29-25    Chapter 61, Health and Safety Code.
29-26          (c)  The commissioner may not require a county, public
29-27    hospital, hospital district, or other entity to participate in the
 30-1    pilot program.
 30-2          SECTION 5.03.  REPORT.  (a)  Not later than January 1, 2003,
 30-3    the commissioner shall submit a written report relating to the
 30-4    pilot program to the governor, lieutenant governor, and speaker of
 30-5    the house of representatives.
 30-6          (b)  The report must include:
 30-7                (1)  an analysis of:
 30-8                      (A)  the quality of health care services provided
 30-9    under the pilot program; and
30-10                      (B)  the cost-effectiveness of providing health
30-11    care services through the pilot program; and
30-12                (2)  recommendations for legislation for implementing
30-13    regional health care delivery systems in this state, including
30-14    recommendations relating to:
30-15                      (A)  the structure of a regional entity to
30-16    administer a regional health care delivery system;
30-17                      (B)  the manner in which state assistance money
30-18    may most effectively be distributed to support a regional health
30-19    care delivery system; and
30-20                      (C)  any other matter necessary to implement
30-21    effective and efficient regional health care delivery systems in
30-22    this state.
30-23          SECTION 5.04.  EXPIRATION; TERMINATION OF PILOT PROGRAM.
30-24    This section expires and the pilot program is terminated August 31,
30-25    2003.
30-26                   ARTICLE 6.  EFFECTIVE DATE; EMERGENCY
30-27          SECTION 6.01.  EFFECTIVE DATE.  This Act takes effect
 31-1    September 1, 1999.
 31-2          SECTION 6.02.  EMERGENCY.  The importance of this legislation
 31-3    and the crowded condition of the calendars in both houses create an
 31-4    emergency and an imperative public necessity that the
 31-5    constitutional rule requiring bills to be read on three several
 31-6    days in each house be suspended, and this rule is hereby suspended.