By Coleman                                            H.B. No. 1398
         76R2554 DLF-D                           
                                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           SECTION 1.02.  Subchapter A, Chapter 61, Health and Safety
2-21     Code, is amended by adding Section 61.0055 to read as follows:
2-22           Sec. 61.0055.  ADMINISTRATION AND ENFORCEMENT; RULES.  The
2-23     department shall administer and enforce this chapter and the board
2-24     may adopt rules as necessary to administer and enforce this
2-25     chapter.
2-26           SECTION 1.03.  Sections 61.006 and 61.007, Health and Safety
2-27     Code, are amended to read as follows:
 3-1           Sec. 61.006.  STANDARDS AND PROCEDURES.  (a)  The department
 3-2     shall establish minimum eligibility standards and application,
 3-3     documentation, and verification procedures for counties to use in
 3-4     determining eligibility under this chapter.
 3-5           (b)  The minimum eligibility standards may not be more
 3-6     restrictive than [and procedures must be consistent with] the
 3-7     eligibility standards [and procedures] used by the Texas Department
 3-8     of Human Services to determine eligibility in the Temporary
 3-9     Assistance for Needy Families-Medicaid [AFDC-Medicaid] program.
3-10           (c)  The department shall also define the services and
3-11     establish the payment standards for the categories of services
3-12     listed in Sections [Section] 61.028(a) and 61.0285. To the extent
3-13     applicable, the department may consider [in accordance with] Texas
3-14     Department  of Human Services rules relating to the Temporary
3-15     Assistance for Needy Families-Medicaid [AFDC-Medicaid] program.
3-16           (d)  The department may establish application, documentation,
3-17     and verification procedures that are different from and less
3-18     restrictive than the procedures used to determine eligibility in
3-19     the Temporary Assistance for Needy Families-Medicaid program. The
3-20     [(b)  The department may simplify the AFDC-Medicaid standards and
3-21     procedures used by the Texas Department of Human Services as
3-22     necessary to provide efficient county administration.  In
3-23     establishing simplified standards and procedures for county
3-24     administration, the] department may not adopt a standard or
3-25     procedure that is more restrictive than the Temporary Assistance
3-26     for Needy Families-Medicaid program [AFDC-Medicaid standards] or
3-27     procedures.
 4-1           (e) [(c)]  The department shall ensure that each person who
 4-2     meets the basic income and resources requirements for Temporary
 4-3     Assistance for Needy Families program [AFDC] payments but who is
 4-4     categorically ineligible for Temporary Assistance for Needy
 4-5     Families [AFDC]  will be eligible for assistance under Subchapter
 4-6     B. Except as provided by Subsection (f) and Section 61.023(b), the
 4-7     [The] department by rule  shall also provide that a person who
 4-8     receives or is eligible to receive Temporary Assistance for Needy
 4-9     Families, Supplemental Security Income [AFDC, SSI], or Medicaid
4-10     benefits is not eligible for assistance under Subchapter B even if
4-11     the person has exhausted a part or all of that person's [AFDC, SSI,
4-12     or Medicaid] benefits.
4-13           (f)  The department shall ensure that each person who is
4-14     entitled to receive federal Social Security Disability Income
4-15     payments but who is ineligible for Medicare because of a waiting
4-16     period applicable under federal law will be eligible for assistance
4-17     under Subchapter B during the period the person is ineligible for
4-18     Medicare. This subsection applies without regard to whether the
4-19     individual would otherwise meet the basic income and resources
4-20     requirements for the Temporary Assistance for Needy Families or
4-21     Medicaid program.
4-22           (g) [(d)]  The department shall notify each county and public
4-23     hospital of any change to department rules [AFDC or Medicaid
4-24     guidelines] that affect the provision of services under this
4-25     chapter [and shall amend the rules adopted under this chapter to
4-26     reflect the changes made in the AFDC or Medicaid programs].
4-27           (h) [(e)]  Notwithstanding Subsection (a), (b), or (c) or any
 5-1     other provision of law, the department shall permit payment to a
 5-2     licensed dentist for services provided under Sections 61.028(a)(1),
 5-3     (a)(4), and (a)(6) [61.028(a)(3) and (a)(5) to the extent that
 5-4     these  services are required by Section 61.028(a)(5)] if the
 5-5     dentist can provide those services within the scope of the
 5-6     dentist's license.
 5-7           (i) [(f)]  Notwithstanding Subsection (a), (b), or (c), the
 5-8     department shall permit payment to a licensed podiatrist for
 5-9     services provided under Sections 61.028(a)(1), (a)(4), and (a)(6)
5-10     [61.028(a)(3) and (a)(5) to the extent that the services are
5-11     required by Section 61.028(a)(5)], if the podiatrist can provide
5-12     the services within the scope of the podiatrist's license.
5-13           Sec. 61.007.  INFORMATION PROVIDED BY APPLICANT.  The
5-14     department by rule shall require each applicant to provide at least
5-15     the following information:
5-16                 (1)  the applicant's full name and address;
5-17                 (2)  the applicant's social security number, if
5-18     available;
5-19                 (3)  the number of persons in the applicant's
5-20     household, excluding persons receiving Temporary Assistance for
5-21     Needy Families, Supplemental Security Income [AFDC, SSI], or
5-22     Medicaid benefits;
5-23                 (4)  the applicant's county of residence;
5-24                 (5)  the existence of insurance coverage or other
5-25     hospital or health care benefits for which the applicant is
5-26     eligible;
5-27                 (6)  any transfer of title to real property that the
 6-1     applicant has made in the preceding 24 months;
 6-2                 (7)  the applicant's annual household income, excluding
 6-3     the income of any household member receiving Temporary Assistance
 6-4     for Needy Families, Supplemental Security Income [AFDC, SSI], or
 6-5     Medicaid benefits; and
 6-6                 (8)  the amount of the applicant's liquid assets and
 6-7     the equity value of the applicant's car and real property.
 6-8           SECTION 1.04.  Section 61.023(b), Health and Safety Code, is
 6-9     amended to read as follows:
6-10           (b)  A county may use a less restrictive standard of
6-11     eligibility for residents than prescribed by Subsection (a) and may
6-12     credit the services provided to all persons who are eligible
6-13     residents under that standard toward eligibility for state
6-14     assistance under this subchapter.
6-15           SECTION 1.05.  Section 61.025(d), Health and Safety Code, is
6-16     amended to read as follows:
6-17           (d)  Expenditures made by the county under Subsection (b) may
6-18     be credited toward eligibility for state assistance under this
6-19     subchapter if the person who received the health care services
6-20     meets the eligibility standards established under Section 61.023
6-21     [Sections 61.006 and 61.008] and would have been eligible for
6-22     assistance under the county program if the person had not resided
6-23     in a public hospital's service area.
6-24           SECTION 1.06.  Section 61.028, Health and Safety Code, is
6-25     amended to read as follows:
6-26           Sec. 61.028.  MANDATORY HEALTH CARE SERVICES.  (a)  A county
6-27     shall, in accordance with department rules adopted under Section
 7-1     61.006, provide:
 7-2                 (1)  primary and preventative services designed to meet
 7-3     the needs of the community, including:
 7-4                       (A)  immunizations;
 7-5                       (B)  medical screening services;
 7-6                       (C)  dental care;
 7-7                       (D)  annual physical examinations; and
 7-8                       (E)  any other appropriate primary or
 7-9     preventative health care service required by department rule;
7-10                 (2)  inpatient and outpatient hospital services;
7-11                 (3) [(2)]  rural health clinics;
7-12                 (4) [(3)]  laboratory and X-ray services;
7-13                 (5) [(4)]  family planning services;
7-14                 (6) [(5)]  physician services;
7-15                 (7) [(6)]  payment for not more than three prescription
7-16     drugs a month; and
7-17                 (8) [(7)]  skilled nursing facility services,
7-18     regardless of the patient's age.
7-19           (b)  The county may provide additional health care services,
7-20     but may not credit the assistance toward eligibility for state
7-21     assistance, except as provided by Sections 61.0285 and 61.0286.
7-22           SECTION 1.07.  Subchapter B, Chapter 61, Health and Safety
7-23     Code, is amended by adding Sections 61.0285 and 61.0286 to read as
7-24     follows:
7-25           Sec. 61.0285.  OPTIONAL HEALTH CARE SERVICES.  (a)  In
7-26     addition to mandatory services provided  under Section 61.028, a
7-27     county may, in accordance with department rules adopted under
 8-1     Section 61.006, provide other medically necessary services or
 8-2     supplies that the county determines to be cost-effective,
 8-3     including:
 8-4                 (1)  ambulatory surgical center services;
 8-5                 (2)  diabetic and colostomy medical supplies and
 8-6     equipment;
 8-7                 (3)  durable medical equipment;
 8-8                 (4)  home and community health care services;
 8-9                 (5)  medical social worker services;
8-10                 (6)  psychological counseling services;
8-11                 (7)  services provided by advanced nurse practitioners,
8-12     physician's assistants, and other licensed persons who are not
8-13     physicians;
8-14                 (8)  vision care, including eyeglasses; and
8-15                 (9)  any other appropriate health care service
8-16     identified by board rule that may be determined to be
8-17     cost-effective.
8-18           (b)  If the services are approved by the department under
8-19     Section 61.006, the county may credit the services toward
8-20     eligibility for state assistance under this subchapter.  A county
8-21     may provide health care services that are not specified in
8-22     Subsection (a), or may provide the services specified in Subsection
8-23     (a) without department approval, but may not credit the services
8-24     toward eligibility for state assistance.
8-25           Sec. 61.0286.  PREMIUM PAYMENTS FOR HEALTH BENEFIT PLAN
8-26     COVERAGE.  (a) A county may credit a payment for the purchase of
8-27     insurance or other health benefit plan coverage made by the county
 9-1     on behalf of an eligible resident under Section 157.006, Local
 9-2     Government Code, or Section 61.029(a) toward eligibility for state
 9-3     assistance under this subchapter if the county determines that the
 9-4     purchase of the coverage is cost-effective.
 9-5           (b)  A county that elects to provide health benefit plan
 9-6     coverage under this section may require an eligible resident to
 9-7     contribute to the premium cost, on an income-based sliding scale,
 9-8     in accordance with Section 61.005.
 9-9           SECTION 1.08.  Section 61.034(a), Health and Safety Code, is
9-10     amended to read as follows:
9-11           (a)  A county is not liable for the cost of a [mandatory]
9-12     health  care  service provided under Section 61.028 or 61.0285 that
9-13     is in excess of the payment standards for that service established
9-14     by the  department under Section 61.006.
9-15           SECTION 1.09.  Section 61.036(b), Health and Safety Code, is
9-16     amended to read as follows:
9-17           (b)  Except as provided by Section 61.023(b), a [A] county
9-18     may not credit an expenditure for an applicant toward eligibility
9-19     for state assistance if the applicant does not meet the
9-20     department's eligibility standards.
9-21           SECTION 1.10.  Sections 61.037, 61.038, and 61.039, Health
9-22     and Safety Code, are amended to read as follows:
9-23           Sec. 61.037.  COUNTY ELIGIBILITY FOR STATE ASSISTANCE.  (a)
9-24     The department may distribute funds as provided by this subchapter
9-25     to eligible counties to assist the counties in providing
9-26     [mandatory] health care services under Sections 61.028, 61.0285,
9-27     and 61.0286, to their eligible county residents.
 10-1          (b)  Except as provided by Subsection (c), (d), or (e), to be
 10-2    eligible for state assistance, a county must:
 10-3                (1)  spend in a state fiscal year at least eight [10]
 10-4    percent of the county general revenue levy for that year to provide
 10-5    [mandatory] health care services described by Subsection (a) to its
 10-6    eligible county residents who qualify for assistance under Section
 10-7    61.023 [61.006]; and
 10-8                (2)  notify the department, not later than the seventh
 10-9    day after the date on which the county reaches the expenditure
10-10    level, that the county has spent at least six [eight] percent of
10-11    the applicable county general revenue levy for that year to provide
10-12    [mandatory] health care services described by Subsection (a) to its
10-13    eligible county residents who qualify for assistance under Section
10-14    61.023 [61.006].
10-15          (c)  If a county and health care provider signed a contract
10-16    on or before January 1, 1985, under which the provider agrees to
10-17    furnish a certain level of health care services to indigent
10-18    persons, the value of services furnished in a state fiscal year
10-19    under the contract is included as part of the computation of a
10-20    county expenditure under this section if the value of services does
10-21    not exceed the payment rate established by the department under
10-22    Section 61.006.
10-23          (d)  If a hospital district is located in part but not all of
10-24    a county, that county's appraisal district shall determine the
10-25    taxable value of the property located inside the county but outside
10-26    the hospital district.  In determining eligibility for state
10-27    assistance, that county shall consider only the county general
 11-1    revenue levy resulting from the property located outside the
 11-2    hospital district.  A county is eligible for state assistance if:
 11-3                (1)  the county spends in a state fiscal year at least
 11-4    eight [10] percent of the county general revenue levy for that year
 11-5    resulting from the property located outside the hospital district
 11-6    to provide [mandatory] health care services described by Subsection
 11-7    (a) to  its eligible county residents who qualify for assistance
 11-8    under Section 61.023 [61.006]; and
 11-9                (2)  the county complies with the other requirements of
11-10    this subchapter.
11-11          (e)  A county that provides [mandatory] health care services
11-12    described by Subsection (a) to its eligible residents through a
11-13    hospital established by a board of managers jointly appointed by a
11-14    county and a municipality under Section 265.011 is eligible for
11-15    state assistance if:
11-16                (1)  the county spends in a state fiscal year at least
11-17    eight  [10] percent of the county general revenue levy for the year
11-18    to provide the [mandatory] health care services to its eligible
11-19    county residents who qualify for assistance under Section 61.023
11-20    [61.006]; and
11-21                (2)  the county complies with the requirements of this
11-22    subchapter.
11-23          (f)  If a county anticipates that it will reach the eight
11-24    [10] percent expenditure level, the county must notify the
11-25    department as soon as possible before the anticipated date on which
11-26    the county will reach the level.
11-27          (g)  The county must give the department all necessary
 12-1    information so that the department can determine if the county
 12-2    meets the requirements of Subsection (b), (d), or (e).
 12-3          Sec. 61.038.  DISTRIBUTION OF ASSISTANCE FUNDS.  (a)  If the
 12-4    department determines that a county is eligible for assistance, the
 12-5    department shall distribute funds appropriated to the department
 12-6    from the indigent health care assistance fund or any other
 12-7    available fund to the county to assist the county in providing
 12-8    [mandatory] health care services under Sections 61.028, 61.0285,
 12-9    and 61.0286 to its eligible county residents who qualify for
12-10    assistance under Section 61.023 [61.006].
12-11          (b)  State funds provided under this section to a county must
12-12    be equal to at least 90 [80] percent of the actual payment for the
12-13    [mandatory] health care services for the county's eligible
12-14    residents during the remainder of the state fiscal year after the
12-15    eight [10] percent expenditure level is reached.
12-16          Sec. 61.039.  FAILURE TO PROVIDE STATE ASSISTANCE.  If the
12-17    department fails to provide assistance to an eligible county as
12-18    prescribed by Section 61.038, the county is not liable for payments
12-19    for health care services provided to its eligible county residents
12-20    after the county reaches the eight [10] percent expenditure level.
12-21          SECTION 1.11. Subchapter B, Chapter 61, Health and Safety
12-22    Code, is amended by adding Section 61.0395 to read as follows:
12-23          Sec. 61.0395.  ADDITIONAL STATE ASSISTANCE FOR OUT-OF-COUNTY
12-24    TERTIARY CARE.  (a)  In addition to state assistance distributed
12-25    under Section 61.038, the department shall distribute assistance to
12-26    a county that is otherwise eligible for state assistance under this
12-27    subchapter and that provides a significant amount of tertiary care
 13-1    to eligible residents in a facility located outside of the
 13-2    boundaries of the county.
 13-3          (b)  The board shall adopt rules governing the determination
 13-4    of whether a county is eligible for additional state assistance
 13-5    under this section and the allocation of  money appropriated for
 13-6    the purposes of this section.
 13-7          SECTION 1.12.  Sections 61.041(a) and (b), Health and Safety
 13-8    Code, are amended to read as follows:
 13-9          (a)  The department shall establish monthly reporting
13-10    requirements for all counties required to provide indigent health
13-11    care under this chapter, including counties [a county] seeking
13-12    state assistance under this chapter and shall establish procedures
13-13    necessary to determine if a [the] county is  eligible for state
13-14    assistance.
13-15          (b)  The department shall establish requirements relating to:
13-16                (1)  documentation required to verify the eligibility
13-17    of residents to whom  the county provides assistance; and
13-18                (2)  county expenditures for [mandatory] health care
13-19    services under Sections 61.028 and 61.0285 and for health benefit
13-20    plan coverage under Section 61.0286.
13-21          SECTION 1.13. Subchapter B, Chapter 61, Health and Safety
13-22    Code, is amended by adding Section 61.0415 to read as follows:
13-23          Sec. 61.0415.  PERFORMANCE STANDARDS FOR PRIMARY AND
13-24    PREVENTATIVE CARE.  (a)  The department, in consultation with the
13-25    Legislative Budget Board, shall:
13-26                (1)  develop objective performance standards to measure
13-27    the level of services provided by a county under Section
 14-1    61.028(a)(1); and
 14-2                (2)  establish performance goals for these services.
 14-3          (b)  To the extent that money appropriated for state
 14-4    assistance under this subchapter is available for this purpose, the
 14-5    department may provide grants to counties that meet or exceed
 14-6    performance goals established under Subsection (a)(2).
 14-7          SECTION 1.14.  Section 61.054(a), Health and Safety Code, is
 14-8    amended to read as follows:
 14-9          (a)  A public hospital shall provide the mandatory health
14-10    care [inpatient and outpatient hospital] services a county is
14-11    required to provide under Section 61.028 [61.028(a)(1)].
14-12          SECTION 1.15.  Section 61.055, Health and Safety Code, is
14-13    amended to read as follows:
14-14          Sec. 61.055.  SERVICES PROVIDED BY HOSPITAL DISTRICTS.  A
14-15    hospital district shall provide the mandatory health care services
14-16    a county is required to provide under Section 61.028, together with
14-17    any other services required under the Texas Constitution and the
14-18    statute creating the district.
14-19          SECTION 1.16.  Section 157.006, Local Government Code, is
14-20    amended to read as follows:
14-21          Sec. 157.006.  PAYMENTS FOR CERTAIN HEALTH BENEFIT PLAN
14-22    [INSURANCE] COVERAGE.  (a)  A hospital district created under
14-23    Article IX of the Texas Constitution or a county may purchase and
14-24    pay the premiums for a conversion policy or other health benefit
14-25    plan [insurance] coverage for a person, without regard to whether
14-26    the person is  eligible for benefits under Chapter 32, Human
14-27    Resources Code, if the person:
 15-1                (1)  [who] is diagnosed as having HIV or AIDS, as [or]
 15-2    defined by Section 81.101, Health and Safety Code, or other
 15-3    terminal or chronic illness, [who] is unemployed, and has an
 15-4    [whose] income level [is] less than 200 percent of the federal
 15-5    poverty level, based on the federal Office of Management and Budget
 15-6    poverty index in effect at the time coverage is provided; or
 15-7                (2)  is otherwise an eligible resident of the hospital
 15-8    district or county under Chapter 61, Health and Safety Code [, even
 15-9    though that person may be eligible for benefits under Chapter 32,
15-10    Human Resources Code, or a medical assistance program of the county
15-11    or hospital district].
15-12          (b)  Health benefit plan [insurance] coverage for which
15-13    premiums may be paid under this section includes coverage purchased
15-14    from an insurance company authorized to do business in this state,
15-15    a group hospital services corporation operating under Chapter 20,
15-16    Insurance Code, a health maintenance organization operating under
15-17    the Texas Health Maintenance Organization Act (Chapter 20A,
15-18    Vernon's Texas Insurance Code), or an insurance pool created by the
15-19    federal or state government or a political subdivision of the
15-20    state.
15-21          (c)  The county or hospital district may provide for payment
15-22    of premiums from unencumbered money available to it for that
15-23    purpose.
15-24          (d)  A county or hospital by order may adopt necessary rules,
15-25    criteria, and plans and may enter into necessary contracts to carry
15-26    out this section.
15-27          SECTION 1.17.  Section 531.204(b), Government Code, is
 16-1    amended to read as follows:
 16-2          (b)  The report must include:
 16-3                (1)  identification of significant problems in the
 16-4    Texas Integrated Enrollment Services, with recommendations for
 16-5    action by the commissioner;
 16-6                (2)  the status of the effectiveness of the Texas
 16-7    Integrated Enrollment Services in providing necessary services to
 16-8    the people of this state, with recommendations for any necessary
 16-9    research;
16-10                (3)  an analysis of the feasibility of including
16-11    indigent health care programs provided by counties, public
16-12    hospitals, and hospital districts in the Texas Integrated
16-13    Enrollment Services, a schedule for inclusion of these programs,
16-14    and a statement of how the Texas Integrated Enrollment Services may
16-15    be structured to address the wide variation in information systems
16-16    used by counties, public hospitals, and hospital districts; and
16-17                (4) [(3)]  recommendations for legislative action.
16-18          SECTION 1.18.  (a)  The change in law made by this article to
16-19    Chapter 61, Health and Safety Code, applies only to:
16-20                (1)  health care services under Chapter 61, Health and
16-21    Safety Code, as amended by this article, that are delivered on or
16-22    after January 1, 2000; and
16-23                (2)  state assistance under Chapter 61, Health and
16-24    Safety Code, as amended by this article, for the services described
16-25    by Subdivision (1) of this subsection.
16-26          (b)  Health care services under Chapter 61, Health and Safety
16-27    Code, as amended by this article, that are delivered before January
 17-1    1, 2000, and state assistance for those services are governed by
 17-2    the law as it existed immediately before that date and that law is
 17-3    continued in effect for this purpose.
 17-4        ARTICLE 2. FEDERAL AUTHORIZATION FOR STATE MEDICAID PROGRAM
 17-5          SECTION 2.01.  FEDERAL AUTHORIZATION.  It is the intent of
 17-6    the 76th Legislature that:
 17-7                (1)  the Health and Human Services Commission or an
 17-8    appropriate health and human services agency continue to pursue the
 17-9    waiver or other authorization described by Section 4, Chapter 444,
17-10    Acts of the 74th Legislature, Regular Session, 1995; and
17-11                (2)  the waiver or other authorization apply to
17-12    expansion of Medicaid eligibility, as described by Section 532.102,
17-13    Government Code, for both children and their families and other
17-14    adults.
17-15           ARTICLE 3. THRESHOLD FOR STATE ASSISTANCE TO COUNTIES
17-16          SECTION 3.01.  STUDY.  The Texas Department of Health shall:
17-17                (1)  study the threshold for eligibility for state
17-18    assistance to a county established under Section 61.037, Health and
17-19    Safety Code; and
17-20                (2)  develop a threshold to replace the threshold
17-21    established under Section 61.037, Health and Safety Code, that is
17-22    stated as a formula and that reflects:
17-23                      (A)  a county's fiscal capacity;
17-24                      (B)  a county's health care resources; and
17-25                      (C)  the relevant characteristics of the county's
17-26    residents, including the percentage of the county's residents
17-27    living below the federal poverty level.
 18-1          SECTION 3.02.  WORK GROUP.  (a)  In developing the
 18-2    eligibility threshold under Section 3.01 of this article, the Texas
 18-3    Department of Health shall consult with:
 18-4                (1)  the Legislative Budget Board;
 18-5                (2)  the comptroller; and
 18-6                (3)  the legislative committees of the house of
 18-7    representatives and senate that have legislative oversight over the
 18-8    department.
 18-9          (b)  The Texas Department of Health shall form a work group
18-10    composed of representatives of the entities described by Subsection
18-11    (a)  of this section and may request the cooperation of other
18-12    persons.
18-13          SECTION 3.03.  REPORT.  Not later than December 1, 2000, the
18-14    Texas Department of Health shall submit a written report of the
18-15    study conducted under this article to the governor, lieutenant
18-16    governor, and speaker of the house of representatives. The report
18-17    must include the recommendations of the work group established
18-18    under Subsection 3.02 of this article, together with the proposed
18-19    eligibility threshold described by Section 3.01(2) of this article.
18-20          SECTION 3.04.  EXPIRATION.  This article expires August 31,
18-21    2001.
18-22             ARTICLE 4. PILOT PROGRAM FOR REGIONAL HEALTH CARE
18-23                              DELIVERY SYSTEM
18-24          SECTION 4.01.  DEFINITIONS.  In this article:
18-25                (1)  "Commissioner" means the commissioner of health
18-26    and human services.
18-27                (2)  "Fund" means the regional health care delivery
 19-1    system trust fund established under this article.
 19-2                (3)  "Hospital district" has the meaning assigned by
 19-3    Section 61.002, Health and Safety Code.
 19-4                (4)  "Pilot program" means the regional health care
 19-5    delivery system pilot program established under this article.
 19-6                (5)  "Public hospital" means an entity that is a public
 19-7    hospital for purposes of Chapter 61, Health and Safety Code.
 19-8                (6)  "Regional advisory committee" means a Medicaid
 19-9    managed care advisory committee for a region appointed under
19-10    Section 533.021, Government Code.
19-11          SECTION 4.02.  PILOT PROGRAM.  (a)  Not later than January 1,
19-12    2000, the commissioner shall establish a regional health care
19-13    delivery system pilot program in one region of this state.
19-14          (b)  The pilot program must be established in a region for
19-15    which a regional advisory committee has been appointed. The
19-16    commissioner may not establish the pilot program in a region unless
19-17    the governing body of each public hospital, hospital district, and
19-18    county in the region approves the establishment of the pilot
19-19    program.
19-20          (c)  During the pilot program, a county located in the region
19-21    selected for the pilot program may not receive state assistance
19-22    under Chapter 61, Health and Safety Code.
19-23          SECTION 4.03.  REGIONAL HEALTH CARE DELIVERY SYSTEM TRUST
19-24    FUND.  (a)  The regional health care delivery system trust fund is
19-25    a trust fund with the comptroller.
19-26          (b)  The fund is composed of money contributed to the fund
19-27    under this article. The money in the fund is not a part of the
 20-1    general funds of this state. The money in the fund may be used only
 20-2    to provide health care services through a regional health care
 20-3    delivery system under this article.
 20-4          (c)  The comptroller shall pay money from the fund on a
 20-5    warrant supported by a voucher signed by the commissioner or by
 20-6    another person designated by the commissioner.
 20-7          (d)  During the pilot program, each public hospital, hospital
 20-8    district, and county in the region selected for participation shall
 20-9    contribute to the fund the  revenue or other money designated for
20-10    the provision of indigent health care in the jurisdiction of the
20-11    public hospital, hospital district, or county. The amount paid
20-12    under this subsection may not be less than the amount used for
20-13    indigent health care by the public hospital, hospital district, or
20-14    county in the preceding calendar year.
20-15          (e)  The state may contribute money to the fund, including
20-16    amounts that would otherwise be provided as state assistance to a
20-17    county participating in the pilot program in accordance with
20-18    Chapter 61, Health and Safety Code. Subject to appropriation, the
20-19    state may contribute money to the fund at a higher matching rate
20-20    than the rate otherwise provided for state assistance in accordance
20-21    with Section 61.038, Health and Safety Code.
20-22          (f)  Not later than the 30th day after the date the pilot
20-23    program terminates, the comptroller shall return any money
20-24    remaining in the fund on that date to the entities that contributed
20-25    the money to the fund, in proportion to their total contributions.
20-26    The comptroller shall transfer the money to be returned to the
20-27    state under this subsection to the general revenue fund.
 21-1          SECTION 4.04.  REGIONAL HEALTH CARE DELIVERY SYSTEM.  (a)
 21-2    The regional advisory committee for the region participating in the
 21-3    pilot program shall develop a regional health care delivery system.
 21-4          (b)  The regional health care delivery system must provide at
 21-5    a minimum the mandatory health care services required by Section
 21-6    61.028, Health and Safety Code, in each public hospital, hospital
 21-7    district, and county participating in the pilot program. In each
 21-8    public hospital, hospital district, and county, the system must
 21-9    provide health care services at least comparable to the services
21-10    provided in the preceeding calendar year in that public hospital,
21-11    hospital district, and county.
21-12          (c)  On approval of the regional health care delivery system
21-13    by the commissioner, the commissioner, in consultation with the
21-14    regional advisory committee, shall implement the system in the
21-15    region.
21-16          SECTION 4.05.  RULES.  The commissioner may adopt rules as
21-17    necessary to implement the pilot program.
21-18          SECTION 4.06.  DELEGATION OF POWER OR DUTIES.  The
21-19    commissioner may delegate any power or duty of the commissioner
21-20    under this article to the Texas Department of Health or to the
21-21    commissioner of public health.
21-22          SECTION 4.07.  REPORT.  (a)  Not later than January 1, 2001,
21-23    the commissioner shall submit a written report relating to the
21-24    pilot program to the governor, lieutenant governor, and speaker of
21-25    the house of representatives.
21-26          (b)  The report must include:
21-27                (1)  an analysis of:
 22-1                      (A)  the quality of health care services provided
 22-2    under the regional health care delivery system operated under this
 22-3    article; and
 22-4                      (B)  the cost-effectiveness of providing health
 22-5    care services through the regional health care delivery system
 22-6    operated under this article; and
 22-7                (2)  recommendations for legislation for implementing
 22-8    regional health care delivery systems in other regions of this
 22-9    state, including recommendations relating to:
22-10                      (A)  the structure of a regional entity to
22-11    administer each regional health care delivery system;
22-12                      (B)  the manner in which state assistance money
22-13    may most effectively be distributed to support each regional health
22-14    care delivery system; and
22-15                      (C)  any other matter necessary to implement
22-16    effective and efficient regional health care delivery systems in
22-17    other regions of the state.
22-18          SECTION 4.08.  EXPIRATION; TERMINATION OF PILOT PROGRAM.
22-19    This section expires and the pilot program is terminated August 31,
22-20    2001.
22-21                   ARTICLE 5. EFFECTIVE DATE; EMERGENCY
22-22          SECTION 5.01.  EFFECTIVE DATE.  This Act takes effect
22-23    September 1, 1999.
22-24          SECTION 5.02.  EMERGENCY.  The importance of this legislation
22-25    and the crowded condition of the calendars in both houses create an
22-26    emergency and an imperative public necessity that the
22-27    constitutional rule requiring bills to be read on three several
 23-1    days in each house be suspended, and this rule is hereby suspended.