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provider or the cancellation of a contract with an ICF-MR 2-6 program provider after the imposition of vendor holds, is repealed 2-7 on September 1, 2001. 2-8 (b) The change in law made by Section 533.061, Health and 2-9 Safety Code, as added by this Act, applies only to a contract 2-10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.