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79S31337 CBH-F

By:  Delisi                                                       H.B. No. 141



A BILL TO BE ENTITLED

AN ACT

relating to the computation of franchise tax total revenue by a 
health care provider.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 171.1011, Tax Code, as added by H.B. No. 
3, Acts of the 79th Legislature, 3rd Called Session, 2006, is 
amended by adding Subsections (n), (n-1), and (o) to read as 
follows:
	(n)  Except as provided by Subsection (o), a taxable entity 
that is a health care provider shall exclude from its total revenue, 
to the extent included under Subsection (c)(1)(A), (c)(2)(A), or 
(c)(3):
		(1)  150 percent of the total amount of payments, from 
whatever source derived, the health care provider received under 
the Medicaid program and Children's Health Insurance Program 
(CHIP);
		(2)  100 percent of the total amount of payments, from 
whatever source derived, the health care provider received:
			(A)  under the Medicare program;                                      
			(B)  for services provided in relation to a 
workers' compensation claim under Title 5, Labor Code; and
			(C)  for services provided to a beneficiary 
rendered under the TRICARE military health system; and
		(3)  100 percent of the actual cost to the health care 
provider for any uncompensated care provided, but only if the 
provider maintains records of the uncompensated care for auditing 
purposes and, if the provider later receives payment for all or part 
of that care, the provider adjusts the amount excluded for the tax 
year in which the payment is received.
	(n-1)  The comptroller shall adopt rules governing:                     
		(1)  the computation of the actual cost to a health care 
provider of any uncompensated care provided under Subsection 
(n)(3); and
		(2)  the accounting, audit, and other requirements 
related to the computation of those costs.
	(o)  A health care provider that is a health care institution 
shall exclude from its total revenue, to the extent included under 
Subsection (c)(1)(A), (c)(2)(A), or (c)(3):
		(1)  75 percent of the total amount of payments 
described by Subsection (n)(1); and
		(2)  50 percent of the total amounts of payments 
described by Subsection (n)(2) and of the costs described by 
Subsection (n)(3).
	SECTION 2.  Subsections (n), (n-1), and (o), Section 
171.1011, Tax Code, as added by H.B. No. 3, Acts of the 79th 
Legislature, 3rd Called Session, 2006, have no effect.
	SECTION 3.  This Act takes effect only if H.B. No. 3, Acts of 
the 79th Legislature, 3rd Called Session, 2006, becomes law.  If 
H.B. No. 3, Acts of the 79th Legislature, 3rd Called Session, 2006, 
does not become law, this Act has no effect.
	SECTION 4.  To the extent of a conflict between a provision 
of this Act and a provision of any other Act of the 79th 
Legislature, 3rd Called Session, 2006, including H.B. No. 3, the 
provision of this Act prevails, regardless of relative dates of 
enactment.
	SECTION 5.  This Act takes effect January 1, 2008, and 
applies only to a report originally due on or after that date.