By Maxey                                              H.B. No. 1615
         77R323 MCK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the regulation and reimbursement of telemedicine
 1-3     medical services.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 531.0216, Government Code, is amended to
 1-6     read as follows:
 1-7           Sec. 531.0216.  PARTICIPATION AND REIMBURSEMENT OF
 1-8     TELEMEDICINE MEDICAL SERVICE PROVIDERS UNDER MEDICAID. (a)  The
 1-9     commission by rule shall develop and implement a system to
1-10     reimburse providers of services under the state Medicaid program
1-11     for services performed using telemedicine medical services.
1-12           (b)  In developing the system, the commission shall:
1-13                 (1)  review programs and pilot projects in other states
1-14     to determine the most effective method for reimbursement;
1-15                 (2)  establish billing codes and a fee schedule for
1-16     services;  [and]
1-17                 (3)  provide for an approval process before a provider
1-18     can receive reimbursement for services; and
1-19                 (4)  consult with the Texas Department of Health and
1-20     the telemedicine advisory committee to develop a procedure to deny
1-21     reimbursement for a health care service that, based on credible,
1-22     clinical evidence, is shown to be medically inappropriate for
1-23     delivery using a telecommunications system.
1-24           (c)  The commission shall encourage teaching hospitals, small
 2-1     rural hospitals, federally qualified health centers, and
 2-2     state-owned health care facilities to participate as telemedicine
 2-3     medical services [service] providers in the health care delivery
 2-4     system.  The commission may not require that a service be provided
 2-5     to a patient through telemedicine medical services when the service
 2-6     can reasonably be provided by a physician through a face-to-face
 2-7     consultation with the patient in the community in which the patient
 2-8     resides or works.  This subsection does not prohibit the
 2-9     authorization of the provision of any service to a patient through
2-10     telemedicine medical services at the patient's request.
2-11           (d)  Subject to Section 153.004, Occupations Code [5.11,
2-12     Medical Practice Act (Article 4495b, Vernon's Texas Civil
2-13     Statutes)], the commission may adopt rules as necessary to
2-14     implement this section.
2-15           (e)  The commission may not reimburse a health care facility
2-16     for telemedicine medical services provided to a Medicaid recipient
2-17     unless the facility complies with the minimum standards adopted
2-18     under Section 531.02161.
2-19           (f)  Not later than December 1 of each even-numbered year,
2-20     the commission shall report to the speaker of the house of
2-21     representatives and the lieutenant governor on the effects of
2-22     telemedicine medical services on the Medicaid program in the state,
2-23     including the number of physicians and health professionals using
2-24     telemedicine medical services, the geographic and demographic
2-25     disposition of the physicians and health professionals, the number
2-26     of patients receiving telemedicine medical services, and the cost
2-27     and utilization of telemedicine medical services on the program.
 3-1           (g)  In this section, "telemedicine medical service" has the
 3-2     meaning assigned by Section 57.042, Utilities Code.
 3-3           SECTION 2. Subchapter B, Chapter 531, Government Code, is
 3-4     amended by adding Section 531.02161 to read as follows:
 3-5           Sec. 531.02161.  TELEMEDICINE TECHNOLOGY STANDARDS. (a)  In
 3-6     this section, "telemedicine medical service" has the meaning
 3-7     assigned by Section 57.042, Utilities Code.
 3-8           (b)  The commission and the telecommunications infrastructure
 3-9     fund board by joint rule shall establish and adopt minimum
3-10     standards for an operating system used in the provision of
3-11     telemedicine medical services by a health care facility
3-12     participating in the state Medicaid program, including standards
3-13     for electronic transmission, software, and hardware.
3-14           (c)  In developing standards under this section, the
3-15     commission and the telecommunications infrastructure fund board
3-16     shall address:
3-17                 (1)  authentication and authorization of users;
3-18                 (2)  authentication of the origin of information;
3-19                 (3)  the prevention of unauthorized access to the
3-20     system or information;
3-21                 (4)  system security, including the integrity of
3-22     information that is collected, program integrity, and system
3-23     integrity;
3-24                 (5)  maintenance of  documentation about system and
3-25     information usage; and
3-26                 (6)  information storage, maintenance, and
3-27     transmission.
 4-1           SECTION 3. Section 531.0217, Government Code, is amended to
 4-2     read as follows:
 4-3           Sec. 531.0217.  REIMBURSEMENT FOR CERTAIN MEDICAL
 4-4     CONSULTATIONS. (a)  In this section:
 4-5                 (1)  "Health professional" means a physician or an
 4-6     individual licensed in this state to perform health care services
 4-7     that are delegated and supervised by a physician [an advanced nurse
 4-8     practitioner, an allied health professional, a mental health
 4-9     professional, a physician, or a physician assistant who is licensed
4-10     in this state].
4-11                 (2)  "Physician" means a person licensed to practice
4-12     medicine in this state under Subtitle B, Title 3, Occupations Code
4-13     ["Rural county" means a county that:]
4-14                       [(A)  has a population of 50,000 or less; or]
4-15                       [(B)  contains an area that was not designated as
4-16     an urban area by the United States Bureau of the Census according
4-17     to the 1990 federal census and does not have within the boundaries
4-18     of the county a hospital that:]
4-19                             [(i)  is licensed under Chapter 241, Health
4-20     and Safety Code; and]
4-21                             [(ii)  has more than 100 beds].
4-22                 (3)  "Telemedicine medical service" has the meaning
4-23     assigned by Section 57.042, Utilities Code ["Rural health facility"
4-24     means a health facility that is located in a rural county and at
4-25     least 30 miles from any accredited medical school or any teaching
4-26     hospital affiliated with an accredited medical school and that is:]
4-27                       [(A)  a licensed, nonprofit hospital;]
 5-1                       [(B)  a health clinic that is affiliated with:]
 5-2                             [(i)  an accredited medical school;]
 5-3                             [(ii)  a teaching hospital that is
 5-4     affiliated with an accredited medical school;]
 5-5                             [(iii)  a hospital described by Paragraph
 5-6     (C);] or
 5-7                             [(iv)  a federally qualified health center,
 5-8     as defined by 42 U.S.C. Section 1396d(l)(2)(B), as amended; or]
 5-9                       [(C)  a hospital that:]
5-10                             [(i)  is licensed under Chapter 241, Health
5-11     and Safety Code;]
5-12                             [(ii)  is owned or operated by a
5-13     municipality, county, hospital district, or hospital authority; and]
5-14                             [(iii)  provides inpatient or outpatient
5-15     services.]
5-16                 [(4)  "Telemedical consultation" means a medical
5-17     consultation for purposes of patient diagnosis or treatment that
5-18     requires the use of advanced telecommunications technology,
5-19     including:]
5-20                       [(A)  compressed digital interactive video,
5-21     audio, or data transmission;]
5-22                       [(B)  clinical data transmission via computer
5-23     imaging for teleradiology or telepathology; and]
5-24                       [(C)  other technology that facilitates access in
5-25     rural counties to health care services or medical specialty
5-26     expertise].
5-27           (b)  The commission by rule shall require each health and
 6-1     human services agency that administers a part of the Medicaid
 6-2     program to provide Medicaid reimbursement for a telemedicine
 6-3     medical service initiated or [telemedical consultation] provided by
 6-4     a physician [licensed in this state who practices in:]
 6-5                 [(1)  a rural health facility;]
 6-6                 [(2)  an accredited medical school; or]
 6-7                 [(3)  a teaching hospital that is affiliated with an
 6-8     accredited medical school].
 6-9           (c)  The commission shall ensure that reimbursement is
6-10     provided only for a telemedicine medical service initiated or
6-11     [consultation] provided by a physician [described in Subsection (b)
6-12     to a health professional who practices in a rural county].
6-13           (d)  The commission shall require reimbursement for a
6-14     telemedicine medical service [telemedical consultation] at the same
6-15     rate as the Medicaid program reimburses for a comparable in-person
6-16     medical service [consultation].  A request for reimbursement may
6-17     not be denied solely because an in-person medical service
6-18     [consultation] between a physician or another health professional
6-19     who provides the telemedicine medical service and a patient did not
6-20     occur.
6-21           (e)  A health care facility that receives reimbursement under
6-22     this section for a telemedicine medical service [consultations]
6-23     provided by a physician [physicians] who practices [practice] in
6-24     that facility or [and] a health professional who participates in a
6-25     telemedicine medical service [obtains consultations] under this
6-26     section shall establish quality of care protocols and patient
6-27     confidentiality guidelines to ensure that the telemedicine medical
 7-1     service meets [telemedical consultations meet] legal requirements
 7-2     and acceptable patient care standards.
 7-3           (f)  The commission may not require a telemedicine medical
 7-4     service [telemedical consultation] if an in-person consultation
 7-5     with a physician is reasonably available where the patient resides
 7-6     or works.  The commission shall make a good faith effort to
 7-7     identify and coordinate with existing providers to preserve and
 7-8     protect existing health care systems and medical relationships in
 7-9     an area.
7-10           (g)  If a patient receiving a telemedicine medical service
7-11     has a primary care physician, the commission shall require that the
7-12     primary care physician be notified of the telemedicine medical
7-13     service for the purpose of sharing medical information.
7-14           (h)  The commission in consultation with the Texas State
7-15     Board of Medical Examiners shall monitor and regulate the use of
7-16     telemedicine medical services to ensure compliance with this
7-17     section.  In addition to any other method of enforcement, the
7-18     commission may use a corrective action plan to ensure compliance
7-19     with this section.
7-20           (i) [(g)]  The Texas State Board of Medical Examiners, in
7-21     consultation with the commission, as appropriate, may adopt rules
7-22     as necessary to:
7-23                 (1)  ensure that appropriate care, including quality of
7-24     care, is provided to patients who receive telemedicine medical
7-25     services [that are provided through a telemedical consultation];
7-26     [and]
7-27                 (2)  prevent abuse and fraud through the use of
 8-1     telemedicine medical services [telemedical consultations],
 8-2     including rules relating to filing of claims and records required
 8-3     to be maintained in connection with telemedicine;
 8-4                 (3)  ensure adequate supervision of health
 8-5     professionals who are not physicians and who provide telemedicine
 8-6     medical services;
 8-7                 (4)  establish the maximum  number of health
 8-8     professionals who are not physicians that a physician may supervise
 8-9     through a telemedicine medical service; and
8-10                 (5)  require a face-to-face consultation with a
8-11     physician within a certain number of days following a telemedicine
8-12     medical service.
8-13           (j) [(h)]  The commissioner shall establish an advisory
8-14     committee to coordinate state telemedicine efforts and assist the
8-15     commission in:
8-16                 (1)  evaluating [developing] policies for telemedicine
8-17     medical services under Section 531.0216 and this section;
8-18                 (2)  monitoring the types of programs receiving
8-19     reimbursement under this section; and
8-20                 (3)  coordinating the activities of state agencies
8-21     interested in the use of telemedicine medical services [telemedical
8-22     consultations under this section].
8-23           (k)  This section does not affect any requirement relating
8-24     to:
8-25                 (1)  a rural health clinic; or
8-26                 (2)  physician delegation of the authority to carry out
8-27     or sign prescription drug orders to an advanced practice nurse or
 9-1     physician assistant.
 9-2           SECTION 4. Subchapter D, Chapter 62, Health and Safety Code,
 9-3     is amended by adding Section 62.157 to read as follows:
 9-4           Sec. 62.157.  TELEMEDICINE MEDICAL SERVICES. (a)  In
 9-5     providing covered benefits to a child, a health plan provider must
 9-6     permit benefits to be provided through telemedicine medical
 9-7     services in accordance with policies developed by the commission.
 9-8           (b)  The policies must provide for:
 9-9                 (1)  the availability of covered benefits appropriately
9-10     provided through telemedicine medical services that are comparable
9-11     to the same types of covered benefits provided without the use of
9-12     telemedicine medical services; and
9-13                 (2)  the availability of covered benefits for different
9-14     services performed by multiple health care providers during a
9-15     single session of telemedicine medical services, if the commission
9-16     determines that delivery of the covered benefits in that manner is
9-17     cost-effective in comparison to the costs that would be involved in
9-18     obtaining the services from providers without the use of
9-19     telemedicine medical services, including the costs of
9-20     transportation and lodging and other direct costs.
9-21           (c)  In developing the policies required by Subsection (a),
9-22     the commission shall consult with:
9-23                 (1)  The University of Texas Medical Branch at
9-24     Galveston;
9-25                 (2)  the Texas Department of Health; and
9-26                 (3)  providers of telemedicine hub sites in this state.
9-27           (d)  In this section, "telemedicine medical service" has the
 10-1    meaning assigned by Section 57.042, Utilities Code.
 10-2          SECTION 5. Subchapter B, Chapter 32, Human Resources Code, is
 10-3    amended by adding Section 32.053 to read as follows:
 10-4          Sec. 32.053.  HOME TELEMEDICINE PILOT PROGRAM. (a)  The
 10-5    department shall establish a pilot program under which certain
 10-6    recipients of medical assistance receive home health care services
 10-7    through telemedicine in addition to other home health care services
 10-8    for which the recipients are eligible.
 10-9          (b)  The department shall adopt eligibility criteria for the
10-10    program.  The criteria must:
10-11                (1)  require that a program participant:
10-12                      (A)  be diagnosed with:
10-13                            (i)  depression and a chronic illness,
10-14    including hypertension, congestive heart failure, diabetes
10-15    mellitus, chronic obstructive pulmonary disease, or a chronic
10-16    wound; or
10-17                            (ii)  depression, if it is secondary to a
10-18    chronic illness;
10-19                      (B)  have telephone service in the participant's
10-20    home;
10-21                      (C)  be able to use telemedicine equipment or be
10-22    assisted by a regular caregiver who is willing and able to use
10-23    telemedicine equipment;
10-24                      (D)  provide written consent to receipt of home
10-25    health care services through telemedicine; and
10-26                      (E)  be under the care of a physician who
10-27    consents to the participant's receipt of home health care services
 11-1    through telemedicine; and
 11-2                (2)  prohibit a recipient of medical assistance from
 11-3    participating in the program if the recipient:
 11-4                      (A)  is diagnosed with a terminal condition and
 11-5    expected to live for less than six months; or
 11-6                      (B)  requires daily, in person, home health care
 11-7    visits or invasive procedures.
 11-8          (c)  The department shall determine home health care services
 11-9    to be provided to program participants through telemedicine.  Home
11-10    health care services provided through telemedicine may include:
11-11                (1)  educating a program participant regarding
11-12    self-care and preventive health;
11-13                (2)  monitoring a program participant's compliance with
11-14    medication requirements;
11-15                (3)  monitoring a program participant's vital signs;
11-16                (4)  providing a program participant with counseling
11-17    and social support; and
11-18                (5)  any other service the department determines is
11-19    appropriate.
11-20          (d)  In designing and implementing the program, the
11-21    department shall ensure that:
11-22                (1)  home health care services provided to a program
11-23    participant through telemedicine supplement necessary in-person
11-24    home visits by home health care providers and do not replace those
11-25    visits;
11-26                (2)  a program participant receives, for the duration
11-27    of services and at no cost to the participant, telemedicine
 12-1    equipment other than a telephone line and telephone that is
 12-2    necessary for receipt of home health care services through
 12-3    telemedicine;
 12-4                (3)  a program participant or the participant's regular
 12-5    caregiver receives personal training and written instructions in
 12-6    the use and maintenance of the telemedicine equipment;
 12-7                (4)  a program participant's satisfaction with home
 12-8    health care services provided through telemedicine is frequently
 12-9    monitored and evaluated; and
12-10                (5)  the quality of home health care services provided
12-11    through telemedicine to a program participant is frequently
12-12    monitored and evaluated.
12-13          (e)  The department shall adopt all rules necessary for
12-14    implementation of the program.
12-15          (f)  Not later than December 1, 2004, the department shall
12-16    submit a report to the legislature regarding the program that
12-17    includes:
12-18                (1)  an analysis of:
12-19                      (A)  the program's cost-effectiveness; and
12-20                      (B)  the program's effect on the quality of
12-21    health care received by program participants; and
12-22                (2)  recommendations regarding elimination,
12-23    continuation, or expansion of the program.
12-24          (g)  This section expires September 1, 2005.
12-25          SECTION 6. Section 1, Article 21.53F, Insurance Code, as
12-26    added by Section 1, Chapter 880, Acts of the 75th Legislature,
12-27    Regular Session, 1997,  is amended to read as follows:
 13-1          Sec. 1.  DEFINITIONS. In this article:
 13-2                (1)  "Health benefit plan" means a plan described by
 13-3    Section 2 of this article.
 13-4                (2)  "Health professional" means a physician or an
 13-5    individual licensed in this state to perform health care services
 13-6    that are delegated and supervised by a physician.
 13-7                (3)  "Physician" means a person licensed to practice
 13-8    medicine in this state under Subtitle B, Title 3, Occupations Code.
 13-9                (4)  "Telemedicine medical service" has the meaning
13-10    assigned by Section 57.042, Utilities Code ["Telemedicine" means
13-11    the use of interactive audio, video, or other electronic media to
13-12    deliver health care.  The term includes the use of electronic media
13-13    for diagnosis, consultation, treatment, transfer of medical data,
13-14    and medical education.  The term does not include services
13-15    performed using a telephone or facsimile machine].
13-16          SECTION 7. Section 3, Article 21.53F, Insurance Code, as
13-17    added by Section 1, Chapter 880, Acts of the 75th Legislature,
13-18    Regular Session, 1997, is amended to read as follows:
13-19          Sec. 3.  COVERAGE FOR TELEMEDICINE MEDICAL SERVICES. (a)  A
13-20    health benefit plan may not exclude a telemedicine medical service
13-21    from coverage under the plan solely because the service is
13-22    [provided through telemedicine and] not provided through a
13-23    face-to-face consultation.
13-24          (b)  Benefits [for a service provided through telemedicine]
13-25    required under this article may be made subject to a deductible,
13-26    copayment, or coinsurance requirement.  A deductible, copayment, or
13-27    coinsurance applicable to a particular service provided through
 14-1    telemedicine medical services may not exceed the deductible,
 14-2    copayment, or coinsurance required by the health benefit plan for a
 14-3    comparable [the same] service provided through a face-to-face
 14-4    consultation.
 14-5          SECTION 8. Section 4, Article 21.53F, Insurance Code, as
 14-6    added by Section 1, Chapter 880, Acts of the 75th Legislature,
 14-7    Regular Session, 1997, is amended to read as follows:
 14-8          Sec. 4.  INFORMED CONSENT. A treating physician or [other]
 14-9    health professional [care provider] who provides or facilitates the
14-10    use of telemedicine medical services shall ensure that the informed
14-11    consent of the patient, or another appropriate person with
14-12    authority to make health care treatment decisions for the patient,
14-13    is obtained before telemedicine medical services are provided
14-14    [through telemedicine].
14-15          SECTION 9. Section 5, Article 21.53F, Insurance Code, as
14-16    added by Section 1, Chapter 880, Acts of the 75th Legislature,
14-17    Regular Session, 1997, is amended to read as follows:
14-18          Sec. 5.  CONFIDENTIALITY. A treating physician or [other]
14-19    health professional [care provider] who provides or facilitates the
14-20    use of telemedicine medical services shall ensure that the
14-21    confidentiality of the patient's medical information is maintained
14-22    as required by Chapter 159, Occupations Code [Section 5.08, Medical
14-23    Practice Act (Article 4495b, Vernon's Texas Civil Statutes)], or
14-24    other applicable law.
14-25          SECTION 10. Section 6(b), Article 21.53F, Insurance Code, as
14-26    added by Section 1, Chapter 880, Acts of the 75th Legislature,
14-27    Regular Session, 1997, is amended to read as follows:
 15-1          (b)  The Texas State Board of Medical Examiners, in
 15-2    consultation with the commissioner, as appropriate, may adopt rules
 15-3    as necessary to:
 15-4                (1)  ensure that appropriate care, including quality of
 15-5    care, is provided to patients who receive telemedicine medical
 15-6    services [that are provided through telemedicine]; [and]
 15-7                (2)  prevent abuse and fraud through use of
 15-8    telemedicine medical services, including rules relating to filing
 15-9    of claims and records required to be maintained in connection with
15-10    telemedicine medical services;
15-11                (3)  ensure adequate supervision of health
15-12    professionals who are not physicians and who provide telemedicine
15-13    medical services;
15-14                (4)  establish the maximum  number of health
15-15    professionals who are not physicians that a physician may supervise
15-16    through a telemedicine medical service; and
15-17                (5)  require a face-to-face consultation with a
15-18    physician within a certain number of days following a telemedicine
15-19    medical service.
15-20          SECTION 11. Section 153.004, Occupations Code, is amended to
15-21    read as follows:
15-22          Sec. 153.004.  RULES REGARDING TELEMEDICINE MEDICAL SERVICES.
15-23    (a)  In consultation with the Health and Human Services Commission
15-24    and the commissioner of insurance, the board may adopt rules as
15-25    necessary to:
15-26                (1)  ensure that appropriate care is provided to
15-27    Medicaid and Medicare patients who receive telemedicine medical
 16-1    services [that are provided through telemedicine]; and
 16-2                (2)  prevent abuse and fraud in the use of telemedicine
 16-3    medical services for Medicaid and Medicare patients.
 16-4          (b)  The rules adopted under Section (a)(2) may include rules
 16-5    relating to filing of claims and records required to be maintained
 16-6    in relation to telemedicine medical services.
 16-7          SECTION 12. Section 57.042(11), Utilities Code, is amended to
 16-8    read as follows:
 16-9                (11)  "Telemedicine medical service" means a health
16-10    care service initiated by a physician or provided by a health
16-11    professional acting under physician delegation or supervision for
16-12    purposes of patient assessment by a health professional, diagnosis
16-13    or consultation by a physician, treatment, or the transfer of
16-14    medical data, that requires the use of advanced telecommunications
16-15    technology, other than by telephone or facsimile, including:
16-16                      (A)  compressed digital interactive video, audio,
16-17    or data transmission;
16-18                      (B)  clinical data transmission using computer
16-19    imaging by way of still image capture; and
16-20                      (C)  other technology that facilitates access to
16-21    health care services or medical specialty expertise[:]
16-22                      [(A)  means medical services delivered by
16-23    telecommunications technologies to rural or underserved public
16-24    not-for-profit health care facilities or primary health care
16-25    facilities in collaboration with an academic health center and an
16-26    associated teaching hospital or tertiary center or with another
16-27    public not-for-profit health care facility; and]
 17-1                      [(B)  includes consultive services, diagnostic
 17-2    services, interactive video consultation, teleradiology,
 17-3    telepathology, and distance education for working health care
 17-4    professionals].
 17-5          SECTION 13. Section 57.045, Utilities Code, is amended by
 17-6    adding Subsection (e) to read as follows:
 17-7          (e)  The board shall establish an assistance program to
 17-8    provide education concerning the telecommunications infrastructure
 17-9    fund and to facilitate access to funds and programs under this
17-10    subchapter by health care facilities and by physicians licensed to
17-11    practice medicine in this state.  The assistance program must
17-12    include a toll-free telephone number and provide access to
17-13    information through the Internet.
17-14          SECTION 14. Sections 57.047(a) and (b), Utilities Code, are
17-15    amended to read as follows:
17-16          (a)  The board may award a grant to a project or proposal
17-17    that:
17-18                (1)  provides equipment and infrastructure necessary
17-19    for:
17-20                      (A)  distance learning;
17-21                      (B)  an information sharing program of a library;
17-22    or
17-23                      (C) telemedicine medical services;
17-24                (2)  develops and implements the initial or
17-25    prototypical delivery of a course or other distance learning
17-26    material;
17-27                (3)  trains teachers, faculty, librarians, or
 18-1    technicians in the use of distance learning or information sharing
 18-2    materials and equipment;
 18-3                (4)  develops a curriculum or instructional material
 18-4    specially suited for telecommunications delivery;
 18-5                (5)  provides electronic information; or
 18-6                (6)  establishes or carries out an information sharing
 18-7    program.
 18-8          (b)  The board may award a loan to a project or proposal to
 18-9    acquire equipment needed for distance learning and telemedicine
18-10    medical service projects.
18-11          SECTION 15. Subchapter C, Chapter 57, Utilities Code, is
18-12    amended by adding Section 57.0475 to read as follows:
18-13          Sec. 57.0475.  ELIGIBILITY FOR GRANTS TO HEALTH CARE
18-14    FACILITIES. (a)  The board may award a grant under Section
18-15    57.047(a)(1)(C) only to a health care facility that:
18-16                (1)  is a hospital or other entity, including a health
18-17    clinic, that:
18-18                      (A)  is supported by local or regional tax
18-19    revenue;
18-20                      (B)  is a certified nonprofit health corporation
18-21    under federal law; or
18-22                      (C)  is an ambulatory surgical center; or
18-23                (2)  meets the criteria adopted by the board and the
18-24    Health and Human Services Commission under Subsection (b).
18-25          (b)  The board and the Health and Human Services Commission
18-26    shall jointly adopt rules prescribing the criteria a health care
18-27    facility not described by Subsection (a)(1) must meet to be
 19-1    eligible to receive a grant under Section 57.047(a)(1)(C).  In
 19-2    determining the criteria, the board and commission shall prioritize
 19-3    health care facilities based on:
 19-4                (1)  the amount of charity care provided by each
 19-5    facility during the year preceding the year in which the facility
 19-6    applies for a grant; and
 19-7                (2)  the number of Medicaid patients and patients
 19-8    enrolled in the state child health plan treated by each facility
 19-9    during the year preceding the year in which the facility applies
19-10    for a grant.
19-11          (c)  The criteria adopted under Subsection (b) must provide
19-12    that a health care facility is not eligible to receive a grant
19-13    under Section 57.047(a)(1)(C) if the health care facility did not
19-14    provide any charity care or treat any patients described by
19-15    Subdivision (b)(2) during the year preceding the year in which the
19-16    facility applies for a grant.
19-17          SECTION 16. Not later than October 1, 2001, the Health and
19-18    Human Services Commission and the telecommunications infrastructure
19-19    fund board shall adopt minimum standards for an operating system
19-20    used by a health care facility in providing telemedicine medical
19-21    services to a Medicaid recipient as required by Section 531.02161,
19-22    Government Code, as added by this Act.
19-23          SECTION 17. Not later than January 1, 2002, the Health and
19-24    Human Services Commission shall adopt rules required by Section
19-25    531.0217, Government Code, as amended by this Act.
19-26          SECTION 18.  (a)  If the Health and Human Services Commission
19-27    determines it is necessary, the commission, not later than
 20-1    September 15, 2001, shall submit for approval a plan amendment
 20-2    relating to the state child health plan under 42 U.S.C. Section
 20-3    1397ff, as amended, as necessary to comply with Section 62.157,
 20-4    Health and Safety Code, as added by this Act.
 20-5          (b)  The Health and Human Services Commission and the Texas
 20-6    Board of Health may delay, until approval of the amended state
 20-7    child health plan, implementation of Section 62.157, Health and
 20-8    Safety Code, as added by this Act.
 20-9          SECTION 19. If, before implementing any provision of this
20-10    Act, a state agency  determines that a waiver or authorization from
20-11    a federal agency is necessary for implementation of that provision,
20-12    the agency affected by the provision shall request the waiver or
20-13    authorization and may delay implementing that provision until the
20-14    waiver or authorization is granted.
20-15          SECTION 20.  This Act takes effect immediately if it receives
20-16    a vote of two-thirds of all the members elected to each house, as
20-17    provided by Section 39, Article III, Texas Constitution.  If this
20-18    Act does not receive the vote necessary for immediate effect, this
20-19    Act takes effect September 1, 2001.