By Coleman                                            H.B. No. 3583
         77R6789 KLA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to required contract provisions and sanctions for ICF-MR
 1-3     program providers.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Subchapter C, Chapter 533, Health and Safety Code,
 1-6     is amended by adding Sections 533.061 and 533.0611 to read as
 1-7     follows:
 1-8           Sec. 533.061.  REQUIRED CONTRACT PROVISIONS. (a)  The
 1-9     department shall include in a contract with an ICF-MR program
1-10     provider a provision stating that the contract terminates if the
1-11     department imposes a vendor hold on payments made to the facility
1-12     under the medical assistance program under Chapter 32, Human
1-13     Resources Code, three times during an 18-month period.
1-14           (b)  The department shall ensure that each provision of a
1-15     contract with an ICF-MR program provider is consistent with
1-16     department and Texas Department of Human Services rules that govern
1-17     the program.
1-18           Sec. 533.0611.  SANCTIONS. If the Texas Department of Human
1-19     Services recommends that a vendor hold be imposed on payments made
1-20     to an ICF-MR program provider or that the contract with the ICF-MR
1-21     program provider be terminated, the Texas Department of Mental
1-22     Health and Mental Retardation shall immediately impose the vendor
1-23     hold or terminate the contract, as appropriate, without conducting
1-24     a further investigation or providing the program provider an
 2-1     opportunity to take corrective action.
 2-2           SECTION 2. (a)  A rule adopted by the Texas Board of Mental
 2-3     Health and Mental Retardation before September 1, 2001, relating to
 2-4     the imposition of a vendor hold on payments made to an ICF-MR
 2-5     program provider or the cancellation of a contract with an ICF-MR
 2-6     program provider after the imposition of vendor holds, is repealed
 2-7     on September 1, 2001.
 2-8           (b)  The change in law made by Section 533.061, Health and
 2-9     Safety Code, as added by this Act, applies only to a contract
2-10     entered into with an ICF-MR program provider on or after the
2-11     effective date of this Act.  A contract entered into with an ICF-MR
2-12     program provider before the effective date of this Act is governed
2-13     by the law in effect on the date the contract was entered into, and
2-14     the former law is continued in effect for that purpose.
2-15           SECTION 3. If before implementing any provision of this Act a
2-16     state agency determines that a waiver or authorization from a
2-17     federal agency is necessary for implementation of that provision,
2-18     the agency affected by the provision shall request the waiver or
2-19     authorization and may delay implementing that provision until the
2-20     waiver or authorization is granted.
2-21           SECTION 4. This Act takes effect September 1, 2001.