Amend CSSB 1 (house committee report) by adding the following appropriately numbered ARTICLE to the bill and renumbering subsequent ARTICLES and SECTIONS of the bill accordingly:

ARTICLE ____.  TEXAS HEALTH OPPORTUNITY POOL TRUST FUND.

(a)  Sections 531.502(b) and (d), Government Code, are amended to read as follows:

(b)  The executive commissioner may include the following federal money in the waiver:

(1)  [all] money provided under the disproportionate share hospitals or [and] upper payment limit supplemental payment program, or both [programs];

(2)  money provided by the federal government in lieu of some or all of the payments under one or both of the those programs;

(3)  any combination of funds authorized to be pooled by Subdivisions (1) and (2); and

(4)  any other money available for that purpose, including:

(A)  federal money and money identified under Subsection (c);

(B)  gifts, grants, or donations for that purpose;

(C)  local funds received by this state through intergovernmental transfers; and

(D)  if approved in the waiver, federal money obtained through the use of certified public expenditures.

(d)  The terms of a waiver approved under this section must:

(1)  include safeguards to ensure that the total amount of federal money provided under the disproportionate share hospitals or [and] upper payment limit supplemental payment program [programs] that is deposited as provided by Section 531.504 is, for a particular state fiscal year, at least equal to the greater of the annualized amount provided to this state under those supplemental payment programs during state fiscal year 2007, excluding amounts provided during that state fiscal year that are retroactive payments, or the state fiscal years during which the waiver is in effect; and

(2)  allow for the development by this state of a methodology for allocating money in the fund to:

(A)  offset, in part, the uncompensated health care costs incurred by hospitals;

(B)  reduce the number of persons in this state who do not have health benefits coverage; and

(C)  maintain and enhance the community public health infrastructure provided by hospitals.

(b)  Section 531.504, Government Code, is amended to read as follows:

Sec. 531.504. DEPOSITS TO FUND. (a) The comptroller shall deposit in the fund:

(1)  [all] federal money provided to this state under the disproportionate share hospitals supplemental payment program or [and] the hospital upper payment limit supplemental payment program, or both, other than money provided under those programs to state-owned and operated hospitals, and all other non-supplemental payment program federal money provided to this state that is included in the waiver authorized by Section 531.502; and

(2)  state money appropriated to the fund.

(b)  The commission and comptroller may accept gifts, grants, and donations from any source, and receive intergovernmental transfers, for purposes consistent with this subchapter and the terms of the waiver. The comptroller shall deposit a gift, grant, or donation made for those purposes in the fund.

(c)  Section 531.508, Government Code, is amended by adding Subsection (d) to read as follows:

(d)  Money from the fund may not be used to finance the construction, improvement, or renovation of a building or land unless the construction, improvement, or renovation is approved by the commission, according to rules adopted by the executive commissioner for that purpose.

(d)  Section 531.502(g), Government Code, is repealed.