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SENATE ENGROSSED
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HOUSE COMMITTEE
SUBSTITUTE
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SECTION 1. The heading to
Chapter 288, Health and Safety Code, is amended.
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SECTION 1. Same as engrossed
version.
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SECTION 2. Subdivision (3),
Section 288.001, Health and Safety Code, is amended to read as follows:
(3) "District
taxpayer" means an institutional health care provider required to pay
the [a person or entity who has paid a] tax imposed by [under] this chapter.
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SECTION 2. Sections
288.001(2) and (3), Health and Safety Code, are amended to read as follows:
(2)
"District" means a county health care funding district created under
[by] this chapter.
(3) "Paying hospital [District
taxpayer]" means an institutional health care provider
required to make a mandatory payment
[a person or entity who has paid a tax
imposed] under this
chapter.
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SECTION 3. Section 288.002,
Health and Safety Code, is amended to read as follows:
Sec. 288.002. CREATION OF
DISTRICT. A district is created in each county located on the Texas-Mexico
border that has a population of:
(1) 500,000 or more
and is adjacent to two or more counties each of which has a population of
50,000 or more;
(2) 350,000 or more and
is adjacent to a county described by Subdivision (1); or
(3) less than 300,000 and
contains one or more municipalities with a population of 200,000 or more.
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SECTION 3. Section 288.002,
Health and Safety Code, is amended to read as follows:
Sec. 288.002. CREATION OF
DISTRICT. A district may be [is] created by order of the commissioners court of [in] each county located on the
Texas-Mexico border that has a population of:
(1) 500,000 or more
and is adjacent to two or more counties each of which has a population of
50,000 or more;
(2) 350,000 or more and
is adjacent to a county described by Subdivision (1); or
(3) less than 300,000 and
contains one or more municipalities with a population of 200,000 or more.
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SECTION 4. Subchapter A,
Chapter 288, Health and Safety Code, is amended by adding Section 288.0031
to read as follows:
Sec. 288.0031.
DISSOLUTION.
No
equivalent provision.
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SECTION 4. Subchapter A,
Chapter 288, Health and Safety Code, is amended by adding Sections 288.0031
and 288.0032 to read as follows:
Sec. 288.0031.
DISSOLUTION.
Sec. 288.0032. EXPIRATION
OF CHAPTER; DISTRIBUTION OF FUNDS ON EXPIRATION. (a) A district created
under this chapter is abolished and this chapter expires on December 31,
2016.
(b) The commissioners
court of a county in which a district is created shall refund to each
paying hospital the proportionate share of any money remaining in the local
provider participation fund created by the district under Section 288.155
at the time the district is abolished.
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No
equivalent provision.
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SECTION 5. The heading to
Section 288.051, Health and Safety Code, is amended to read as follows:
Sec. 288.051. COMMISSION; DISTRICT
GOVERNANCE [APPOINTMENT].
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SECTION 5. Section 288.051,
Health and Safety Code, is amended to read as follows:
Sec. 288.051. COMMISSION[;
APPOINTMENT].
(a) Each district is
governed by a commission of five members [appointed as provided by this
section].
(b)
Each county commissioner on the commissioners court of the county in which
the district is located serves as a member of [shall appoint one
member who meets the qualifications prescribed by Section 288.052 to serve
on] the commission. The county judge of the county in which the
district is located serves as a member of [shall appoint any
remaining members who meet the qualifications prescribed by Section 288.052
to serve on] the commission.
(c) Service on the
commission by a county commissioner or county judge is an additional duty
of that person's office.
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SECTION 6. Section 288.051,
Health and Safety Code, is amended by amending Subsection (a) and adding
Subsections (c) and (d) to read as follows:
(a) Each district created under Section 288.002 is
governed by a commission consisting of the
commissioners court of the county in which the district is created [of five members appointed as provided
by this section].
(Repealed in SECTION 19,
below.)
(c) Service on the
commission by a county commissioner or county judge is an additional duty
of that person's office.
(d) A district is a component of county government and is not a separate
political subdivision of this state.
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No
equivalent provision.
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SECTION 7. Section 288.101,
Health and Safety Code, is amended to read as follows:
Sec. 288.101. LIMITATION ON
[TAXING] AUTHORITY TO REQUIRE MANDATORY PAYMENT. Each
district may require a mandatory payment [impose taxes] only
in the manner provided by this chapter.
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SECTION 6. Subsection (a),
Section 288.102, Health and Safety Code, is amended to read as follows:
(a) A district may not impose any tax
authorized by this chapter[, spend any
money, including for the administrative expenses of the district, or
conduct any other business of the commission] without an
affirmative vote of a majority of the members of the commission.
No
equivalent provision.
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SECTION 8. Section 288.102,
Health and Safety Code, is amended to read as follows:
Sec. 288.102. MAJORITY VOTE
REQUIRED.
(a) A district may not require [impose]
any mandatory payment [tax] authorized by this chapter, spend any money, including for the administrative
expenses of the district, or conduct any other business of the commission
without an affirmative vote of a majority of the members of the
commission.
(b) Before requiring a
mandatory payment [imposing a tax] under this chapter in any one
year, the commission must obtain the affirmative vote required by
Subsection (a).
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No
equivalent provision.
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SECTION 9. Section
288.104(a), Health and Safety Code, is amended to read as follows:
(a) The commission may adopt
rules governing the operation of the district, including rules relating to
the administration of a mandatory payment [tax] authorized by
this chapter.
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SECTION 7. Section 288.151,
Health and Safety Code, is amended to read as follows:
Sec. 288.151. HEARING
[BUDGET]. (a) Each year, the commission shall hold a public
hearing on [prepare a budget for the following fiscal year that
includes:
[(1) proposed
expenditures and disbursements;
[(2) estimated receipts
and collections; and
[(3)] the rates and amounts of any taxes that the commission intends to impose during the year and how the
revenue derived from those taxes is to
be spent.
(b) [The commission shall
hold a public hearing on the proposed budget.] Not later than the 10th
day before the date of the hearing, the commission shall publish at least
once notice of the hearing in a newspaper of general circulation in the
county in which the district is located.
(c) Any district taxpayer is
entitled to appear at the time and place designated in the public notice
and to be heard regarding any matter related to the taxes imposed by the district [item
shown in the proposed budget].
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SECTION 10. Section 288.151,
Health and Safety Code, is amended to read as follows:
Sec. 288.151. HEARING
[BUDGET]. (a) Each year, the commission of a district shall hold a public hearing on [prepare
a budget for the following fiscal year that includes:
[(1) proposed
expenditures and disbursements;
[(2) estimated receipts
and collections; and
[(3)] the [rates and] amounts of any mandatory payments [taxes] that the commission intends
to require [impose] during the year and how
the revenue derived from those payments
is to be spent.
(b) [The commission shall
hold a public hearing on the proposed budget.] Not later than the 10th
day before the date of the hearing, the commission shall publish at least
once notice of the hearing in a newspaper of general circulation in the
county in which the district is located.
(c) A representative of a paying hospital [Any district taxpayer] is entitled
to appear at the time and place designated in the public notice and to be
heard regarding any matter related to the mandatory
payments required by the district under
this chapter [item shown in the proposed budget].
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SECTION 8. Subsection (b),
Section 288.154, Health and Safety Code, is amended to read as follows:
(b) All income received by a
district, including tax revenue after
deducting discounts and fees for assessing and collecting the taxes, shall be deposited with the district
depository as provided by Section 288.203 and may be withdrawn only
as provided by this chapter.
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SECTION 11. Section
288.154(b), Health and Safety Code, is amended to read as follows:
(b) All income received by a
district, including the [tax] revenue from mandatory payments remaining after [deducting] discounts and fees for assessing and
collecting the payments are deducted [taxes],
shall be deposited with the district depository as provided by Section
288.203 and may be withdrawn only as provided by this chapter.
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SECTION 9. Subchapter D,
Chapter 288, Health and Safety Code, is amended by adding Sections 288.155
and 288.156 to read as follows:
Sec. 288.155. LOCAL
PROVIDER PARTICIPATION FUND; AUTHORIZED USES OF MONEY. (a) Each district
shall create a local provider participation fund.
(b) The local provider
participation fund consists of:
(1) all revenue from the tax imposed by this chapter, including any
penalties and interest from delinquent taxes;
(2) money received from
the Health and Human Services Commission as a refund of an
intergovernmental transfer from the district to the state for the purpose
of providing the nonfederal share of Medicaid supplemental payment program
payments, provided that the intergovernmental transfer does not receive a
federal matching payment; and
(3) the earnings of the
fund.
(c) Money deposited to
the local provider participation fund may be used only to:
(1) provide the
nonfederal share of a Medicaid supplemental payment program;
(2) subsidize indigent
programs;
(3) pay the
administrative expenses of the district;
(4) refund an amount of tax collected in error from a district taxpayer; and
(5) refund to district taxpayers the proportionate share
of the money received by the district from the Health and Human Services
Commission that is not used to fund the nonfederal share of Medicaid
supplemental payment program payments.
(d) Money in the local provider participation fund
may not be used to expand Medicaid eligibility.
No
equivalent provision.
(e) A local provider
participation fund created under this section shall be abolished on the
expiration of a waiver under Section 1115 of the federal Social Security
Act (42 U.S.C. Section 1315) in connection with the fund.
Sec. 288.156. ALLOCATION
OF CERTAIN FUNDS.
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SECTION 12. Subchapter D,
Chapter 288, Health and Safety Code, is amended by adding Sections 288.155
and 288.156 to read as follows:
Sec. 288.155. LOCAL
PROVIDER PARTICIPATION FUND; AUTHORIZED USES OF MONEY. (a) Each district shall
create a local provider participation fund.
(b) The local provider
participation fund consists of:
(1) all revenue from the mandatory payment required by this chapter,
including any penalties and interest attributable to delinquent payments;
(2) money received from
the Health and Human Services Commission as a refund of an
intergovernmental transfer from the district to the state for the purpose
of providing the nonfederal share of Medicaid supplemental payment program
payments, provided that the intergovernmental transfer does not receive a
federal matching payment; and
(3) the earnings of the
fund.
(c) Money deposited to
the local provider participation fund may be used only to:
(1) fund intergovernmental transfers from the district
to the state to provide the nonfederal share of a Medicaid
supplemental payment program authorized under
the state Medicaid plan, the Texas Healthcare Transformation and Quality
Improvement Program waiver issued under Section 1115 of the federal Social
Security Act (42 U.S.C. Section 1315), or a successor waiver program
authorizing similar Medicaid supplemental payment programs;
(2) subsidize indigent
programs;
(3) pay the
administrative expenses of the district;
(4) refund a portion of a
mandatory payment collected in error
from a paying hospital; and
(5) refund to paying hospitals the proportionate share of
the money received by the district from the Health and Human Services
Commission that is not used to fund the nonfederal share of Medicaid
supplemental payment program payments.
(e) An intergovernmental transfer of funds described by
Subsection (c)(1) and any funds received by the district as a result of an
intergovernmental transfer described by that subdivision may not be
used by the district, the county in which the
district is located, or any other entity to expand Medicaid
eligibility under the Patient Protection and
Affordable Care Act (Pub. L. No. 111-148) as amended by the Health Care and
Education Reconciliation Act of 2010 (Pub. L. No. 111-152).
(d) Money in the local
provider participation fund may not be commingled with other county funds.
No
equivalent provision.
Sec. 288.156. ALLOCATION
OF CERTAIN FUNDS.
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No
equivalent provision.
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SECTION 13. The heading to
Subchapter E, Chapter 288, Health and Safety Code, is amended to read as
follows:
SUBCHAPTER E. MANDATORY
PAYMENTS [TAXES]
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SECTION 10. Subsections (a)
and (c), Section 288.201, Health and Safety Code, are amended to read as
follows:
(a) The commission of a
district may impose an annual tax to
be assessed quarterly on all outpatient
hospital visits to an institutional health care provider located in
the district. In the first year in which the tax
is imposed, the tax is assessed on the
total number of outpatient hospital visits
of an institutional health care provider reported to the Department of
State Health Services under Sections 311.032 and 311.033 in the fiscal year
ending in 2010 [2003]. The district shall update this tax basis with
the number of outpatient hospital visits reported on a biennial
basis.
No
equivalent provision.
(c) The commission shall set
the rate of the tax imposed under this
section. The rate may not exceed the lesser of:
(1) $100 for each outpatient hospital visit; or
(2) six percent of the aggregate net patient revenue of all district
taxpayers in the district.
No
equivalent provision.
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SECTION 14. Section 288.201,
Health and Safety Code, is amended to read as follows:
Sec. 288.201. MANDATORY
PAYMENT BASED [TAX] ON [OUTPATIENT] HOSPITAL NET
PATIENT REVENUE [SERVICES]. (a) Except as provided by Subsection (e), the [The]
commission of a district may require [impose] an annual mandatory payment [tax] to be assessed quarterly on the net patient revenue of [all outpatient hospital visits to]
an institutional health care provider located in the district. In the first
year in which the mandatory payment [tax] is required [imposed],
the mandatory payment [tax] is assessed on the net patient revenue [total number of outpatient hospital visits]
of an institutional health care provider as
determined by the data reported to the Department of State
Health Services under Sections 311.032 and 311.033 in the fiscal year
ending in 2010 [2003]. The district shall update the amount of the mandatory payment [this tax basis with the number of outpatient
hospital visits reported] on a biennial basis.
(b) The amount of a
mandatory payment required under this chapter must be proportionate with
the amount of net patient revenue generated by a paying hospital. [A
tax imposed under this section must be imposed uniformly on each
institutional health care provider of outpatient hospital services located
in the district.] A mandatory payment required [tax imposed]
under this section [also] may not hold harmless any institutional
health care provider [of outpatient hospital services], as required
under 42 U.S.C. Section 1396b(w).
(c) The commission of a district shall set the amount [rate] of the mandatory payment required [tax imposed] under this
section. The amount of the mandatory
payment required of each paying hospital [rate] may not exceed an
amount that, when added to the amount of the mandatory payments required
from all other paying hospitals in the district, equals an amount of revenue
that exceeds six percent of the aggregate net patient revenue of all paying
hospitals in the district [$100
for each outpatient hospital visit].
(d) Subject to the maximum amount
[tax rate] prescribed by Subsection (c), the commission shall set
the mandatory payments in amounts [rate of the tax at a rate]
that in the aggregate will generate sufficient revenue to cover the
administrative expenses of the district, to fund the nonfederal share of a
Medicaid supplemental payment program, and to pay for indigent programs,
except that the amount of [tax] revenue from mandatory payments
used for administrative expenses of the district in a year may not exceed
the lesser of four percent of the total revenue generated from the mandatory
payment [tax] or $20,000.
(e) An institutional health
care provider may not add a mandatory payment required [tax
imposed] under this section as a surcharge to a patient.
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SECTION 11. Subsection (a),
Section 288.202, Health and Safety Code, is amended to read as follows:
(a) Except as provided by
Subsection (b), the county tax assessor-collector shall collect a tax imposed under this subchapter [unless
the commission employs a tax assessor and collector for the district].
The county tax assessor-collector shall charge and deduct from taxes collected for the district a fee for
collecting the tax in an amount
determined by the commission, not to exceed the county tax
assessor-collector's usual and customary charges for the collection of similar taxes.
No
equivalent provision.
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SECTION 15. Section 288.202,
Health and Safety Code, is amended to read as follows:
Sec. 288.202. ASSESSMENT AND
COLLECTION OF MANDATORY PAYMENTS [TAXES]. (a) Except as
provided by Subsection (b), the county tax assessor-collector shall collect
a mandatory payment required [tax imposed] under this
subchapter [unless the commission employs a tax assessor and collector
for the district]. The county tax assessor-collector shall charge and
deduct from mandatory payments [taxes] collected for the district a
fee for collecting the mandatory payment [tax] in an amount determined by the
commission, not to exceed the county tax assessor-collector's usual and
customary charges [for the collection of
similar taxes].
(b) If determined by the
commission to be appropriate, the commission may contract for the
assessment and collection of mandatory payments [taxes] in
the manner provided by Title 1, Tax Code, for the assessment and collection
of ad valorem taxes.
(c) Revenue from a fee
charged by a county tax assessor-collector for collecting the mandatory
payment [tax] shall be deposited in the county general fund and,
if appropriate, shall be reported as fees of the county tax
assessor-collector.
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SECTION 12. Section 288.203,
Health and Safety Code, is amended to read as follows:
Sec. 288.203. DEPOSIT
[USE] OF TAX REVENUE. Revenue [generated by a district] from
the [a] tax imposed by
[under] this chapter shall be deposited in the district's local
provider participation fund [subchapter may be used only to:
[(1) provide the
nonfederal share of a Medicaid supplemental payment program;
[(2) subsidize indigent
programs; and
[(3) pay administrative
expenses of the district].
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SECTION 16. Section 288.203,
Health and Safety Code, is amended to read as follows:
Sec. 288.203. DEPOSIT
[USE] OF [TAX] REVENUE FROM MANDATORY PAYMENTS.
Revenue [generated by a district] from the mandatory payment required by [a tax imposed under] this chapter shall
be deposited in the district's local provider participation fund [subchapter
may be used only to:
[(1) provide the
nonfederal share of a Medicaid supplemental payment program;
[(2) subsidize indigent
programs; and
[(3) pay administrative
expenses of the district].
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No
equivalent provision.
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SECTION 17. Section 288.204,
Health and Safety Code, is amended to read as follows:
Sec. 288.204. INTEREST,
PENALTIES, AND DISCOUNTS. Interest, penalties, and discounts on mandatory
payments required [taxes imposed] under this subchapter are
governed by the law applicable to county ad valorem taxes.
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No
equivalent provision.
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SECTION 18. Section 288.205,
Health and Safety Code, is amended to read as follows:
Sec. 288.205. PURPOSE;
CORRECTION OF INVALID PROVISION OR PROCEDURE. (a) The purpose of this
chapter is to generate revenue from a mandatory payment required [tax
imposed] by the district to provide the nonfederal share of a Medicaid
supplemental payment program.
(b) To the extent any
provision or procedure under this chapter causes a mandatory payment
[tax] under this chapter to be ineligible for federal matching
funds, the district may provide by rule for an alternative provision or
procedure that conforms to the requirements of the federal Centers for
Medicare and Medicaid Services.
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SECTION 13. Sections
288.003, 288.004, 288.052, 288.053, 288.054, 288.055, 288.056, 288.057,
288.058, and 288.103, Subsection (b), Section 288.104, and Sections
288.105, 288.107, 288.153, and 288.206, Health and Safety Code, are
repealed.
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SECTION 19. Sections
288.003, 288.004, 288.051(b), 288.052,
288.053, 288.054, 288.055, 288.056, 288.057, 288.058, 288.103, 288.104(b), 288.105, 288.107, 288.153, and 288.206,
Health and Safety Code, are repealed.
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SECTION 14. If before
implementing any provision of this Act 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.
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SECTION 20. Same as engrossed
version.
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SECTION 15. This Act takes
effect September 1, 2013.
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SECTION 21. 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, this Act takes effect
September 1, 2013.
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