79R15451 KEG-F
By: Pitts H.B. No. 3540
Substitute the following for H.B. No. 3540:
By: Pitts C.S.H.B. No. 3540
A BILL TO BE ENTITLED
AN ACT
relating to certain fiscal matters affecting governmental
entities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. DELAYED ELIGIBILITY FOR MEMBERSHIP IN EMPLOYEES
RETIREMENT SYSTEM OF TEXAS
SECTION 1.01. Section 812.003(e), Government Code, is
amended to read as follows:
(e) Membership [For persons whose employment or office
holding begins before September 1, 2005, membership] in the
employee class begins on the 91st day after the first day a person
is employed or holds office.
SECTION 1.02. Sections 812.003(d) and (h), Government Code,
are repealed.
ARTICLE 2. WAIVER OF AND SUPPLEMENTAL HEALTH COVERAGE
FOR STATE EMPLOYEES
SECTION 2.01. Section 1551.104(a), Insurance Code, is
amended to read as follows:
(a) Subject to Sections 1551.101 and 1551.102, each
full-time employee is covered automatically by the basic coverage
plan for employees and each annuitant is covered by the basic
coverage plan for annuitants unless:
(1) participation is specifically waived as provided
by Section 1551.1045;
(2) the employee or annuitant is expelled from the
program under Section 1551.351; or
(3) eligibility is otherwise limited by this chapter.
SECTION 2.02. Subchapter C, Chapter 1551, Insurance Code,
is amended by adding Section 1551.1045 to read as follows:
Sec. 1551.1045. WAIVER. (a) Subject to Subsections (b) and
(c), an employee or annuitant may waive in writing any coverage
provided under this chapter.
(b) To waive coverage under the basic coverage plan for
employees, a full-time employee must demonstrate, in the manner
required by the board of trustees, that the employee is:
(1) covered by another health benefit plan that
provides substantially equivalent coverage, as determined by the
board of trustees, to the coverage provided to employees by the
basic coverage plan; or
(2) eligible for benefits under the TRICARE Military
Health System.
(c) To waive coverage under the basic coverage plan for
annuitants for the purpose of eligibility for an incentive payment
under Section 1551.222, an annuitant must demonstrate, in the
manner required by the board of trustees, that the annuitant is:
(1) covered by another health benefit plan that
provides substantially equivalent coverage, as determined by the
board of trustees, to the coverage provided to annuitants by the
basic coverage plan; or
(2) eligible for benefits under the TRICARE Military
Health System.
SECTION 2.03. Subchapter E, Chapter 1551, Insurance Code,
is amended by adding Sections 1551.221 and 1551.222 to read as
follows:
Sec. 1551.221. OPTIONAL SUPPLEMENTAL HEALTH COVERAGE FOR
INDIVIDUALS ELIGIBLE UNDER TRICARE MILITARY HEALTH SYSTEM. (a)
The board of trustees shall offer, as an optional coverage under the
group benefits program, a supplemental health coverage program.
(b) Under the supplemental health coverage program, an
employee or annuitant who is eligible to participate in the group
benefits program and who is also eligible for benefits under the
TRICARE Military Health System may elect to receive primary
coverage under the TRICARE Military Health System. An employee or
annuitant participating in the supplemental health coverage
program must waive basic coverage through the group benefits
program, but receives supplemental health coverage under this
section.
(c) The cost of supplemental health coverage provided under
this section may be paid in the same manner as the cost of other
optional coverage is paid under Subchapter G.
(d) The board of trustees shall contract to purchase the
supplemental health coverage in accordance with Sections
1551.213-1551.216.
(e) The board of trustees may adopt rules to implement this
section.
Sec. 1551.222. INCENTIVE PAYMENTS. (a) The board of
trustees may allow an incentive payment under this section to an
employee or annuitant who elects to waive coverage under the basic
coverage plan for employees or annuitants as provided by Section
1551.1045(b) or (c).
(b) The incentive payment authorized by this section is in
the amount authorized by the General Appropriations Act and may be
used by the employee or annuitant, in the manner prescribed by the
board of trustees, only to pay for other group coverage plans
provided under the group benefits program, including the
supplemental health coverage offered under Section 1551.221.
(c) The board of trustees, at the time of initial enrollment
in the group benefits program and during subsequent open-enrollment
periods, shall inform employees and annuitants that they may make
an election described by Subsection (a), if eligible, and receive
any authorized incentive payment.
SECTION 2.04. Subchapter G, Chapter 1551, Insurance Code,
is amended by adding Section 1551.324 to read as follows:
Sec. 1551.324. REDUCTION IN CONTRIBUTION FOR CERTAIN ACTIVE
EMPLOYEES AND ANNUITANTS; INCENTIVE PAYMENTS. (a) Notwithstanding
any other provision of this subchapter, the state contribution for
an employee's coverage or an annuitant's coverage under this
chapter may be reduced, as provided in the General Appropriations
Act, to reflect the reduced cost of coverage for an employee or
annuitant who elects to waive basic coverage as provided by Section
1551.1045(b) or (c).
(b) Instead of the full state contribution for an employee
or annuitant who makes an election described by Subsection (a), the
state may contribute, as specified by the General Appropriations
Act, an amount for the incentive payment authorized by Section
1551.222.
ARTICLE 3. COMPENSATION FOR CERTAIN STATE EMPLOYEES WHO RETURN TO
STATE EMPLOYMENT
SECTION 3.01. Section 659.042, Government Code, is amended
to read as follows:
Sec. 659.042. EXCLUSIONS. The following are not entitled
to longevity pay under this subchapter:
(1) a member of the legislature;
(2) an individual who holds a statewide office that is
normally filled by vote of the people;
(3) an independent contractor or an employee of an
independent contractor;
(4) a temporary employee;
(5) an officer or employee of a public junior college;
[or]
(6) an academic employee of a state institution of
higher education; or
(7) a state employee who receives an annuity based
wholly or partly on service as a state officer or state employee in
a public retirement system, as defined by Section 802.001, that was
credited to the state employee.
SECTION 3.02. Section 659.126, Government Code, is amended
to read as follows:
Sec. 659.126. LOSS OF ELIGIBILITY TO RECEIVE BENEFIT
REPLACEMENT PAY. (a) An eligible state employee who leaves state
employment after August 31, 1995, for at least 30 consecutive days
[12 consecutive months], on returning to state employment or on
assuming a state office, is ineligible to receive benefit
replacement pay.
(b) An eligible state-paid judge who leaves office after
August 31, 1995, for at least 30 consecutive days [12 consecutive
months], on return to state office or on accepting a state
employment, is ineligible to receive benefit replacement pay.
(c) For purposes of Subsection (a), a state employee is not
considered to have left state employment:
(1) while the state employee is on an unpaid leave of
absence as provided by Section 661.909; or
(2) during a period of time the employee is not working
for the state because the employee's employment with the state
customarily does not include that period of time, such as a teacher
whose employment does not invariably include the summer months.
(d) An eligible state employee who receives an annuity based
wholly or partly on service as a state officer or state employee in
a public retirement system, as defined by Section 802.001, that was
credited to the state employee is ineligible to receive benefit
replacement pay.
SECTION 3.03. Section 661.152, Government Code, is amended
by adding Subsection (l) to read as follows:
(l) For purposes of computing vacation leave under
Subsection (d) for a state employee who receives an annuity based
wholly or partly on service as a state officer or state employee in
a public retirement system, as defined by Section 802.001, that was
credited to the state employee, years of total state employment
includes only the length of state employment after the date the
state employee retired.
SECTION 3.04. This article takes effect September 1, 2005.
ARTICLE 4. EXTENDING STATE REIMBURSEMENT PROGRAM: PETROLEUM
STORAGE TANKS
SECTION 4.01. Section 26.351(f), Water Code, is amended to
read as follows:
(f) The person performing corrective action under this
section, if the release was reported to the commission on or before
December 22, 1998, shall meet the following deadlines:
(1) a complete site assessment and risk assessment
(including, but not limited to, risk-based criteria for
establishing target concentrations), as determined by the
executive director, must be received by the agency no later than
September 1, 2002;
(2) a complete corrective action plan, as determined
by the executive director and including, but not limited to,
completion of pilot studies and recommendation of a cost-effective
and technically appropriate remediation methodology, must be
received by the agency no later than September 1, 2003. The person
may, in lieu of this requirement, submit by this same deadline a
demonstration that a corrective action plan is not required for the
site in question under commission rules. Such demonstration must
be to the executive director's satisfaction;
(3) for those sites found under Subdivision (2) to
require a corrective action plan, that plan must be initiated and
proceeding according to the requirements and deadlines in the
approved plan no later than March 1, 2004;
(4) for sites which require either a corrective action
plan or groundwater monitoring, a comprehensive and accurate annual
status report concerning those activities must be submitted to the
agency;
(5) for sites which require either a corrective action
plan or groundwater monitoring, all deadlines set by the executive
director concerning the corrective action plan or approved
groundwater monitoring plan shall be met; and
(6) for sites that require either a corrective action
plan or groundwater monitoring, have met all other deadlines under
this subsection, and have submitted annual progress reports that
demonstrate progress toward meeting closure requirements, a site
closure request must be submitted to [requests for all sites where]
the executive director [agreed in writing that no corrective action
plan was required must be received by the agency] no later than
September 1, 2007 [2005]. The request must be complete, as judged
by the executive director.
SECTION 4.02. Section 26.355(b), Water Code, is amended to
read as follows:
(b) An owner or operator of an underground or aboveground
storage tank from which a regulated substance is released is liable
to the state unless:
(1) the release was caused by:
(A) [(1)] an act of God;
(B) [(2)] an act of war;
(C) [(3)] the negligence of the State of
Texas or the United States; or
(D) [(4)] an act or omission of a third
party; or
(2) the site at which the release occurred has been
admitted into the petroleum storage tank state-lead program under
Section 26.3573(r-1).
SECTION 4.03. Section 26.3573, Water Code, is amended by
amending Subsections (d), (r), and (s) and adding Subsection (r-1)
to read as follows:
(d) The commission may use the money in the petroleum
storage tank remediation account to pay:
(1) necessary expenses associated with the
administration of the petroleum storage tank remediation account
and the groundwater protection cleanup program[, not to exceed an
amount equal to: 11.8 percent of the gross receipts of that account
for FY02/03; 16.40 percent of the gross receipts of that account for
FY04/05; and 21.1 percent of the gross receipts of that account for
FY06/07];
(2) expenses associated with investigation, cleanup,
or corrective action measures performed in response to a release or
threatened release from a petroleum storage tank, whether those
expenses are incurred by the commission or pursuant to a contract
between a contractor and an eligible owner or operator as
authorized by this subchapter; and
(3) subject to the conditions of Subsection (e) [of
this section], expenses associated with investigation, cleanup, or
corrective action measures performed in response to a release or
threatened release of hydraulic fluid or spent oil from hydraulic
lift systems or tanks located at a vehicle service and fueling
facility and used as part of the operations of that facility.
(r) Except as provided by Subsection (r-1), the [The]
petroleum storage tank remediation account may not be used to
reimburse any person for corrective action performed after
September 1, 2005.
(r-1) In this subsection, "state-lead program" means the
petroleum storage tank state-lead program administered by the
commission. The executive director shall grant an extension for
corrective action reimbursement to a person who is an eligible
owner or operator under Section 26.3571. The petroleum storage
tank remediation account may be used to reimburse an eligible owner
or operator for corrective action performed under an extension
before August 31, 2007. Not later than July 1, 2007, an eligible
owner or operator who is granted an extension under this subsection
may apply to the commission in writing using a form provided by the
commission to have the site subject to corrective action placed in
the state-lead program. The eligible owner or operator must agree
in the application to allow site access to state personnel and state
contractors as a condition of placement in the state-lead program
under this subsection. On receiving the application for placement
in the state-lead program under this subsection, the executive
director by order shall place the site in the state-lead program
until the corrective action is completed to the satisfaction of the
commission. An eligible owner or operator of a site that is placed
in the state-lead program under this subsection is not liable to the
commission for any costs related to the corrective action.
(s) The petroleum storage tank remediation account may not
be used to reimburse any person for corrective action contained in a
reimbursement claim filed with the commission after March 1, 2008
[2006].
SECTION 4.04. Section 26.3574(b), Water Code, is amended to
read as follows:
(b) A fee is imposed on the delivery of a petroleum product
on withdrawal from bulk of that product as provided by this
subsection. Each operator of a bulk facility on withdrawal from
bulk of a petroleum product shall collect from the person who orders
the withdrawal a fee in an amount determined as follows:
(1) $12.50 for each delivery into a cargo tank having a
capacity of less than 2,500 gallons for the state fiscal year
beginning September 1, 2001, and the state fiscal year beginning
September 1, 2002 [FY 02 and FY 03]; and $10.00 for each delivery
into a cargo tank having a capacity of less than 2,500 gallons for
the state fiscal year beginning September 1, 2003, through the
state fiscal year ending August 31, 2007 [FY 04 and FY 05; $5.00 for
each delivery into a cargo tank having a capacity of less than 2,500
gallons for FY 06; and $2.00 for each delivery into a cargo tank
having a capacity of less than 2,500 gallons for FY 07];
(2) $25.00 for each delivery into a cargo tank having a
capacity of 2,500 gallons or more but less than 5,000 gallons for
the state fiscal year beginning September 1, 2001, and the state
fiscal year beginning September 1, 2002 [FY 02 and FY 03]; and
$20.00 for each delivery into a cargo tank having a capacity of
2,500 gallons or more but less than 5,000 gallons for the state
fiscal year beginning September 1, 2003, through the state fiscal
year ending August 31, 2007 [FY 04 and FY 05; $10.00 for each
delivery into a cargo tank having a capacity of 2,500 gallons or
more but less than 5,000 gallons for FY 06; and $4.00 for each
delivery into a cargo tank having a capacity of 2,500 gallons or
more but less than 5,000 gallons for FY 07];
(3) $37.50 for each delivery into a cargo tank having a
capacity of 5,000 gallons or more but less than 8,000 gallons for
the state fiscal year beginning September 1, 2001, and the state
fiscal year beginning September 1, 2002 [FY 02 and FY 03]; and
$30.00 for each delivery into a cargo tank having a capacity of
5,000 gallons or more but less than 8,000 gallons for the state
fiscal year beginning September 1, 2003, through the state fiscal
year ending August 31, 2007 [FY 04 and FY 05; $15.00 for each
delivery into a cargo tank having a capacity of 5,000 gallons or
more but less than 8,000 gallons for FY 06; and $6.00 for each
delivery into a cargo tank having a capacity of 5,000 gallons or
more but less than 8,000 gallons for FY 07];
(4) $50.00 for each delivery into a cargo tank having a
capacity of 8,000 gallons or more but less than 10,000 gallons for
the state fiscal year beginning September 1, 2001, and the state
fiscal year beginning September 1, 2002 [FY 02 and FY 03]; and
$40.00 for each delivery into a cargo tank having a capacity of
8,000 gallons or more but less than 10,000 gallons for the state
fiscal year beginning September 1, 2003, through the state fiscal
year ending August 31, 2007 [FY 04 and FY 05; $20.00 for each
delivery into a cargo tank having a capacity of 8,000 gallons or
more but less than 10,000 gallons for FY 06; and $8.00 for each
delivery into a cargo tank having a capacity of 8,000 gallons or
more but less than 10,000 gallons for FY 07]; and
(5) a $25.00 fee for each increment of 5,000 gallons or
any part thereof delivered into a cargo tank having a capacity of
10,000 gallons or more for the state fiscal year beginning
September 1, 2001, and the state fiscal year beginning September 1,
2002 [FY 02 and FY 03]; and $20.00 for each increment of 5,000
gallons or any part thereof delivered into a cargo tank having a
capacity of 10,000 gallons or more for the state fiscal year
beginning September 1, 2003, through the state fiscal year ending
August 31, 2007 [FY 04 and FY 05; $10.00 for each increment of 5,000
gallons or any part thereof delivered into a cargo tank having a
capacity of 10,000 gallons or more for FY 06; and $4.00 for each
increment of 5,000 gallons or any part thereof delivered into a
cargo tank having a capacity of 10,000 gallons or more for FY 07].
SECTION 4.05. Section 26.361, Water Code, is amended to
read as follows:
Sec. 26.361. EXPIRATION OF REIMBURSEMENT PROGRAM.
Notwithstanding any other provision of this subchapter, the
reimbursement program established under this subchapter expires
September 1, 2008 [2006]. On or after September 1, 2008 [2006], the
commission may not use money from the petroleum storage tank
remediation account to reimburse an eligible owner or operator for
any expenses of corrective action or to pay the claim of a person
who has contracted with an eligible owner or operator to perform
corrective action.
SECTION 4.06. This article takes effect September 1, 2005.
ARTICLE 5. RESTRICTIONS ON PROPERTY
VALUATION AND STATE AID TO
SCHOOL DISTRICTS
SECTION 5.01. Section 11.431(a), Tax Code, is amended to
read as follows:
(a) The chief appraiser shall accept and approve or deny an
application for a residence homestead exemption after the deadline
for filing the application [it] has passed if the application [it]
is filed not later than [one year after] the delinquency date for
the taxes on the homestead.
SECTION 5.02. Section 22.23(b), Tax Code, is amended to
read as follows:
(b) On written request by the property owner, the chief
appraiser [shall extend a deadline for filing a rendition statement
or property report to May 15. The chief appraiser] may [further]
extend a deadline for filing a rendition statement or property
report for a single period not to exceed [the deadline an
additional] 15 days upon good cause shown in writing by the property
owner.
SECTION 5.03. Section 25.25, Tax Code, is amended by
amending Subsections (c), (e), (l), and (m) and adding Subsection
(c-1) to read as follows:
(c) The appraisal review board, on motion of the chief
appraiser or of a property owner, may direct by written order
changes in the appraisal roll for any of the five preceding years to
correct:
(1) clerical errors relating to the qualification of
property for an exemption under Section 11.13 that affect a
property owner's liability for a tax imposed in that tax year;
(2) multiple appraisals of a property in that tax
year; or
(3) the inclusion of property that does not exist in
the form or at the location described in the appraisal roll.
(c-1) The appraisal review board, on motion of the chief
appraiser or of a property owner, may direct by written order
changes in the appraisal roll to correct clerical errors that
affect a property owner's liability for a tax imposed on the owner's
residence homestead other than clerical errors described by
Subsection (c)(1). A motion under this subsection must be filed
before the first anniversary of the deadline under Section 41.12(a)
for approval by the appraisal review board of the appraisal records
for the year in which the tax is imposed.
(e) If the chief appraiser and the property owner do not
agree to the correction before the 15th day after the date the
motion is filed, a party bringing a motion under Subsection (c),
(c-1), or (d) is entitled on request to a hearing on and a
determination of the motion by the appraisal review board. A party
bringing a motion under this section must describe the error or
errors that the motion is seeking to correct. Not later than 15
days before the date of the hearing, the board shall deliver written
notice of the date, time, and place of the hearing to the chief
appraiser, the property owner, and the presiding officer of the
governing body of each taxing unit in which the property is located.
The chief appraiser, the property owner, and each taxing unit are
entitled to present evidence and argument at the hearing and to
receive written notice of the board's determination of the motion.
A property owner who files the motion must comply with the payment
requirements of Section 42.08 or forfeit the right to a final
determination of the motion.
(l) A motion may be filed under Subsection (c) or (c-1)
regardless of whether, for a tax year to which the motion relates,
the owner of the property protested under Chapter 41 an action
relating to the value of the property that is the subject of the
motion.
(m) The hearing on a motion under Subsection (c), (c-1), or
(d) shall be conducted in the manner provided by Subchapter C,
Chapter 41.
SECTION 5.04. Section 42.29, Tax Code, is amended by
amending Subsection (b) and adding Subsection (c) to read as
follows:
(b) Notwithstanding Subsection (a), the amount of an award
of attorney's fees to a property owner may not exceed the lesser of:
(1) $100,000; or
(2) the total amount by which the property owner's tax
liability is reduced as a result of the appeal.
(c) An appraisal district, an appraisal review board, or a
chief appraiser that substantially prevails in an appeal by a
property owner based on a claim of excessive appraisal or unequal
appraisal of property that the owner does not claim as the owner's
residence homestead and that has an appraised value of more than $1
million according to the appraisal roll shall be awarded reasonable
attorney's fees in an amount to be determined by the court.
SECTION 5.05. Section 42.253(i), Education Code, is amended
to read as follows:
(i) Not later than March 1 each year, the commissioner shall
determine the actual amount of state funds to which each school
district is entitled under the allocation formulas in this chapter
for the current school year and shall compare that amount with the
amount of the warrants issued to each district for that year.
Except as provided by Section 42.257(b), if [If] the amount of the
warrants differs from the amount to which a district is entitled
because of variations in the district's tax rate, student
enrollment, or taxable value of property, the commissioner shall
adjust the district's entitlement for the next fiscal year
accordingly.
SECTION 5.06. Section 42.257(b), Education Code, is amended
to read as follows:
(b) If the district would have received a greater amount
from the foundation school fund for the applicable school year
using the adjusted value, the commissioner shall add the difference
to subsequent distributions to the district from the foundation
school fund. If the final determination is made after the last day
of the state fiscal year corresponding to the tax year for which the
determination is made, the commissioner shall add one-fifth of the
difference to the September payment to the district of the current
year entitlement from the foundation school fund for each of the
next five years. An adjustment does not affect the local fund
assignment of any other district.
SECTION 5.07. Section 42.259(f), Education Code, is amended
to read as follows:
(f) Except as provided by Section 42.257(b) or by Subsection
(c)(8) or (d)(3) of this section, any previously unpaid additional
funds from prior years owed to a district shall be paid to the
district together with the September payment of the current year
entitlement.
SECTION 5.08. Section 403.302(h), Government Code, is
amended to read as follows:
(h) On request of the commissioner of education or a school
district, the comptroller may audit the total taxable value of
property in a school district and may revise the annual study
findings. The request for audit is limited to corrections and
changes in a school district's appraisal roll that occurred after
preliminary certification of the annual study findings by the
comptroller. The [Except as otherwise provided by this subsection,
the] request for audit must be filed with the comptroller not later
than the first [third] anniversary of the date of the final
certification of the annual study findings. [The request for audit
may be filed not later than the first anniversary of the date the
chief appraiser certifies a change to the appraisal roll if the
chief appraiser corrects the appraisal roll under Section 25.25 or
42.41, Tax Code, and the change results in a material reduction in
the total taxable value of property in the school district.] The
comptroller shall certify the findings of the audit to the
commissioner of education.
SECTION 5.09. (a) The change in law made by this Act to
Section 11.431, Tax Code, applies only to an application for a
residence homestead exemption for the 2005 and subsequent tax
years. Section 11.431, Tax Code, as that section existed
immediately before the effective date of this Act, applies to an
application for a residence homestead exemption for the 2004 tax
year and is continued in effect for that purpose.
(b) The change in law made by this Act to Section 25.25, Tax
Code, does not affect a motion filed under that section before the
effective date of this Act.
(c) The change in law made by this Act to Section 42.29, Tax
Code, applies only to an appeal filed under Chapter 42, Tax Code, on
or after the effective date of this Act. An appeal filed under
Chapter 42, Tax Code, before the effective date of this Act is
governed by the law in effect when the appeal was filed, and the
former law is continued in effect for that purpose.
ARTICLE 6. LOTTERY TICKET SALES
SECTION 6.01. The Texas Lottery Commission shall study and
recommend to the legislature methods by which lottery tickets may
be sold in a more cost-effective and convenient manner than the
methods currently in use.
ARTICLE 7. JOINT PRESCRIPTION DRUG PURCHASING FOR STATE AGENCIES
SECTION 7.01. Subchapter B, Chapter 531, Government Code,
is amended by adding Section 531.080 to read as follows:
Sec. 531.080. JOINT PURCHASING OF PRESCRIPTION DRUGS AND
OTHER MEDICATIONS. (a) Subject to Subsection (b), the commission
and each health and human services agency authorized by the
executive commissioner shall enter into an agreement with one or
more other states for the joint bulk purchasing of prescription
drugs and other medications to be used in the Medicaid program, the
state child health plan, or another program under the authority of
the commission.
(b) An agreement under this section may not be entered into
until:
(1) the commission determines that entering into the
agreement would be feasible and cost-effective; and
(2) if appropriated money would be spent under the
proposed agreement, the governor and the Legislative Budget Board
grant prior approval to expend appropriated money under the
proposed agreement.
(c) The commission shall adopt procedures applicable to an
agreement and joint purchase required by this section. The
procedures must ensure that this state receives:
(1) all prescription drugs and other medications
purchased with money provided by this state; and
(2) an equitable share of any price benefits resulting
from the joint bulk purchase.
(d) In determining the feasibility and cost-effectiveness
of entering into an agreement under this section, the commission
shall identify:
(1) the most cost-effective existing joint bulk
purchasing agreement; and
(2) any potential groups of states with which this
state could enter into a new cost-effective joint bulk purchasing
agreement.
SECTION 7.02. Not later than January 15, 2006, the Health
and Human Services Commission shall determine the feasibility and
cost-effectiveness of entering into an agreement under Section
531.080, Government Code, as added by this article. If the
commission determines that such action is feasible and
cost-effective, the commission shall take action to enter into an
agreement that takes effect March 1, 2006.
SECTION 7.03. If before implementing any provision of this
article a state agency determines that a waiver or authorization
from a federal agency is necessary for implementation of that
provision, the agency affected by the provision shall request the
waiver or authorization and may delay implementing that provision until the waiver or authorization is granted.
ARTICLE 8. QUALITY ASSURANCE FEES
SECTION 8.01. Chapter 242, Health and Safety Code, is
amended by adding Subchapter P to read as follows:
SUBCHAPTER P. QUALITY ASSURANCE FEE
Sec. 242.801. DEFINITIONS. In this subchapter:
(1) "Commission" means the Health and Human Services
Commission.
(2) "Department" means the Department of Aging and
Disability Services.
(3) "Executive commissioner" means the executive
commissioner of the Health and Human Services Commission.
(4) "Gross receipts" means money paid as compensation
for services provided to residents, including client
participation. The term does not include charitable contributions
to an institution.
Sec. 242.802. APPLICABILITY. This subchapter does not
apply to:
(1) a state-owned veterans' nursing facility; or
(2) a continuing care retirement community.
Sec. 242.803. COMPUTING QUALITY ASSURANCE FEE. (a) A
quality assurance fee is imposed on each institution subject to
this subchapter for which a license fee must be paid under Section
242.034. The quality assurance fee:
(1) is an amount established under Subsection (b)
multiplied by the number of patient days as determined in
accordance with Section 242.804;
(2) is payable monthly; and
(3) is in addition to other fees imposed under this
chapter.
(b) The commission shall establish a quality assurance fee
for each patient day in an amount that will produce annual revenues
of not more than six percent of the institution's total annual gross
receipts in this state. The fee is subject to adjustment as
necessary. The amount of the quality assurance fee may vary
according to the number of patient days provided by an institution
as necessary to obtain a waiver under federal regulations at 42
C.F.R. Section 433.68(e).
(c) The amount of the quality assurance fee must be
determined using patient days and gross receipts:
(1) reported to the commission or to the department at
the direction of the commission; and
(2) covering a period of at least six months.
(d) The quality assurance fee is an allowable cost for
reimbursement under the state Medicaid program.
(e) A nursing facility may not list the quality assurance
fee as a separate charge on a patient's or resident's billing
statement or otherwise directly or indirectly attempt to charge the
quality assurance fee to a patient or resident.
Sec. 242.804. PATIENT DAYS. For each calendar day, an
institution shall determine the number of patient days by adding
the following:
(1) the number of patients occupying an institution
bed immediately before midnight of that day plus the number of
patients admitted that day less the number of patients discharged
that day, except that a patient is included in the count under this
subdivision if:
(A) the patient is admitted and discharged on the
same day; or
(B) the patient is discharged that day because of
the patient's death; and
(2) the number of beds that are on hold that day and
that have been placed on hold for a period not to exceed three
consecutive calendar days during which a patient is:
(A) in the hospital; or
(B) on therapeutic home leave.
Sec. 242.805. REPORTING AND COLLECTION. (a) The
commission or the department as directed by the executive
commissioner shall collect the quality assurance fee.
(b) Each institution shall, not later than the 25th day
after the last day of a month:
(1) file with the commission a report stating the
total patient days for the month; and
(2) pay the quality assurance fee.
Sec. 242.806. RULES; ADMINISTRATIVE PENALTY. (a) The
executive commissioner shall adopt rules for the administration of
this subchapter, including rules related to the imposition and
collection of the quality assurance fee.
(b) The executive commissioner may adopt rules granting
exceptions from the quality assurance fee, including an exception
for units of service reimbursed through Medicare Part A, if the
commission obtains all waivers necessary under federal law,
including 42 C.F.R. Section 433.68(e).
(c) An administrative penalty assessed under this
subchapter in accordance with Section 242.066 may not exceed
one-half of the amount of the outstanding quality assurance fee or
$20,000, whichever is greater.
Sec. 242.807. NURSING HOME QUALITY ASSURANCE FEE ACCOUNT.
(a) The nursing home quality assurance fee account is a dedicated
account in the general revenue fund. Interest earned on money in
the account shall be credited to the account.
(b) The comptroller shall deposit money collected under
this subchapter to the credit of the account.
(c) Subject to legislative appropriation and this
subchapter, money in the account together with federal matching
money shall be used to support or maintain an increase in Medicaid
reimbursement for institutions.
Sec. 242.808. REIMBURSEMENT OF INSTITUTIONS. (a) Subject
to legislative appropriation, the commission may use money in the
nursing home quality assurance fee account, together with any
federal money available to match that money, to:
(1) offset allowable expenses under the state Medicaid
program; or
(2) increase reimbursement rates paid under the
Medicaid program to institutions.
(b) The commission shall devise the formula by which amounts
received under this subchapter increase the reimbursement rates
paid to institutions under the state Medicaid program.
Sec. 242.809. INVALIDITY; FEDERAL FUNDS. If any portion of
this subchapter is held invalid by a final order of a court that is
not subject to appeal, or if the commission determines that the
imposition of the fee and the expenditure as prescribed by this
subchapter of amounts collected will not entitle the state to
receive additional federal funds under the Medicaid program, the
commission shall stop collection of the quality assurance fee and,
not later than the 30th day after the date collection is stopped,
shall return to the institutions that paid the fees, in proportion
to the total amount paid by those institutions, any money deposited
to the credit of the nursing home quality assurance fee account but
not spent.
Sec. 242.810. REVISION IN CASE OF DISAPPROVAL. If the
Centers for Medicare and Medicaid Services disapproves the quality
assurance fee plan established under this subchapter, the
commission shall revise the associated state plan amendments and
waiver requests as necessary to comply with federal regulations
provided by 42 C.F.R. Section 433.68(e). The revisions must be
completed as soon as practicable after the date the commission
receives notice of the disapproval.
Sec. 242.811. AUTHORITY TO ACCOMPLISH PURPOSES OF
SUBCHAPTER. The executive commissioner by rule may adopt a
definition, a method of computation, or a rate that differs from
those expressly provided by or expressly authorized by this
subchapter to the extent the difference is necessary to accomplish
the purposes of this subchapter.
SECTION 8.02. Subchapter B, Chapter 531, Government Code,
is amended by adding Section 531.078 to read as follows:
Sec. 531.078. QUALITY ASSURANCE FEES; GENERAL AUTHORITY.
(a) The executive commissioner by rule may impose a quality
assurance fee on any health care provider or facility providing
health care services. The executive commissioner may determine the
amount and manner of payment of the fee and the revenues of the
provider or facility subject to the fee. The executive
commissioner may require recordkeeping and reports related to the
imposition or collection of the fee. Fee money collected must be
used in accordance with commission rules.
(b) The executive commissioner shall seek federal approval
of a quality assurance fee for the home and community-based
services waiver program.
SECTION 8.03. Section 252.202(b), Health and Safety Code,
is amended to read as follows:
(b) The Health and Human Services Commission or the
department at the direction of the commission shall set the quality
assurance fee for each day in an [the] amount that will produce
[necessary to produce] annual revenues of [equal to an amount that
is] not more than six percent of the facility's total annual gross
receipts in this state. The fee is subject to a prospective
adjustment as necessary.
SECTION 8.04. Section 252.209, Health and Safety Code, is
repealed.
SECTION 8.05. (a) Notwithstanding Section 242.803, Health
and Safety Code, as added by this article, the executive
commissioner of the Health and Human Services Commission shall
establish the initial quality assurance fee imposed under
Subchapter P, Chapter 242, Health and Safety Code, as added by this
article, based on available revenue and patient day information.
The initial quality assurance fee established under this section
remains in effect until the Health and Human Services Commission
obtains the information necessary to set the fee under Section
242.803, Health and Safety Code, as added by this article.
(b) As soon as practicable after the effective date of this
Act, the executive commissioner of the Health and Human Services
Commission shall adopt rules as necessary to implement Subchapter
P, Chapter 242, Health and Safety Code, and Section 531.078,
Government Code, as added by this article.
(c) If before implementing any provision of this article a
state agency determines a waiver or authorization from a federal
agency is necessary for implementation of that provision, the
agency affected by the provision shall request the waiver or
authorization and may delay implementing that provision until the
waiver or authorization is granted.
ARTICLE 9. REDUCTION IN NUMBER OF LICENSE PLATES ISSUED
SECTION 9.01. Subchapter A, Chapter 502, Transportation
Code, is amended by adding Section 502.010 to read as follows:
Sec. 502.010. ISSUANCE AND DISPLAY OF LICENSE PLATE. (a)
Notwithstanding anything in this code to the contrary, including
Section 502.180, the department shall issue only one license plate
for attachment at the rear of the vehicle for which the plate is
issued.
(b) Notwithstanding anything in this code to the contrary,
including Section 502.404(a), a person is entitled to operate on a
public highway a vehicle that displays only one license plate if the
plate is attached at the rear of the vehicle. A person may operate
on a public highway a vehicle that displays two license plates if
both plates were assigned by the department for the registration
period as a set of plates.
(c) In any provision of this code that relates to the
issuance or display of "license plates," "plates," or a "set of
plates," the term means only one license plate.
SECTION 9.02. The change in law made by this article
regarding the issuance of license plates by the Texas Department of
Transportation applies only to the issuance of license plates by
the department for a registration period beginning on or after the
effective date of this article. For a registration period that
begins before the effective date of this article, the department
shall issue license plates as required by the law in effect
immediately before the effective date of this article, and the
former law is continued in effect for that purpose.
SECTION 9.03. This article takes effect September 1, 2005.
ARTICLE 10. TRANSPORTATION FEES AND FISCAL MATTERS
SECTION 10.01. Subchapter A, Chapter 222, Transportation
Code, is amended by adding Section 222.0021 to read as follows:
Sec. 222.0021. TRANSFERS TO GENERAL REVENUE FUND. Each
month, out of money in the state highway fund that is not dedicated
by the Texas Constitution, the comptroller shall transfer the
amount of $5,666,667 from the state highway fund to the general
revenue fund.
SECTION 10.02. Section 502.161(a), Transportation Code, is
amended to read as follows:
(a) The fee for a registration year for registration of a
passenger car, a municipal bus, or a private bus that weighs 6,000
pounds or less is[:
[(1) $40.50 for a vehicle the model year of which is
more than six years before the year in which the registration year
begins;
[(2) $50.50 for a vehicle the model year of which is
more than three years but is six years or less before the year in
which the registration year begins; or
[(3)] $58.50 [for a vehicle the model year of which is
three years or less before the year in which the registration year
begins].
SECTION 10.03. Section 502.162(a), Transportation Code, is
amended to read as follows:
(a) The fee for a registration year for registration of a
commercial motor vehicle or truck-tractor that weighs 6,000 pounds
or less is $58.50. The fee for a registration year for registration
of all other commercial motor vehicles or truck-tractors is $25
plus an amount determined according to the vehicle's total gross
weight and tire equipment, as follows:Gross weight Fee for each 100 pounds or
in pounds fraction of 100 pounds
Equipped with Equipped with
pneumatic tires solid tires
each fee] collected by the department under this
subchapter shall be deposited as follows:
(1) during each state fiscal year the comptroller
shall deposit the first $68 million of money received from the fees
to the credit of the general revenue fund; and
(2) if during a state fiscal year the amount of money
received from the fees exceeds $68 million, the comptroller shall
deposit the additional amount to the credit of the Texas mobility
fund.
ARTICLE 11. EFFECTIVE DATE
SECTION 11.01. Except as otherwise provided by this Act,
this Act takes effect immediately if it receives a vote of
two–thirds of all the members elected to each house, as provided by
Section 39, Article III, Texas Constitution. If this Act does not
receive the vote necessary for immediate effect, except as
otherwise provided by this Act, this Act takes effect on the 91st
day after the last day of the legislative session.