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2-6 program provider after the imposition of vendor holds, is repealed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.