By: Guerra H.B. No. 3710

A BILL TO BE ENTITLED

AN ACT

relating to districts in certain counties located on the Texas-Mexico border and amending Chapter 288 of the Health and Safety Code.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The title of Chapter 288, Health and Safety Code, is amended to read as follows:

CHAPTER 288. [HEALTH CARE FUNDING] DISTRICTS IN CERTAIN COUNTIES

LOCATED ON TEXAS-MEXICO BORDER [THAT ARE ADJACENT TO COUNTIES WITH

POPULATION OF 50,000 OR MORE]

SECTION 2. Section 288.001(2), Health and Safety Code, is amended to read as follows:

(2) "District" means a county [health care funding district created by this chapter] designated by Section 288.002 as a district under this chapter.

SECTION 3. Section 288.001(3), 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.

SECTION 4. 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:

(1) a population of 500,000 or more and is adjacent to two or more counties each of which has a population of 50,000 or more;

(2) a population of 50,000 or more and is adjacent to a county described in Subsection 1;

(3) a population of less than 300,000 and contains one or more municipalities with a population of 200,000 or more; and

(4) a population less than 75,000 and is adjacent to the county described in Subsection 2.

SECTION 5. Subchapter A, Chapter 288, Health and Safety Code, is amended by adding Section 288.0031 to read as follows:

Sec. 288.0031. DISSOLUTION. A district created by this chapter may be dissolved in the manner provided for the dissolution of a hospital district under Subchapter E, Chapter 286.

SECTION 6. 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, the membership of which is the same as the commissioner's court for the county which comprises the district [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 shall appoint one member who meets the qualifications prescribed by Section 288.052 to serve on the commission. The county judge of the county shall appoint any remaining members who meet the qualifications prescribed by Section 288.052 to serve on the commission].

SECTION 7. Section 288.102(a), 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.

SECTION 8. 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].

SECTION 9. Section 288.154(b), 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.

SECTION 10. 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 that is directly related to an intergovernmental transfer from the district to the state for the purpose of providing the nonfederal share of Medicaid supplemental payment program payments; 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) pay to district taxpayers the proportionate share of the money received by the district from the Health and Human Services Commission that is directly related to an intergovernmental transfer from the district to the state for the purpose of providing the nonfederal share of Medicaid supplemental payment program payments to which the district taxpayer is entitled.

(d) A commission may use money in the local provider participation fund for the purposes described by Subsection (c)(1) only after the commission receives an assurance from the Health and Human Services Commission that the nonfederal share of Medicaid supplemental payment program payments transferred under that subdivision will be returned to the district.

(e) Money in the local provider participation fund may not be used to expand Medicaid eligibility.

Sec. 288.156. ALLOCATION OF CERTAIN FUNDS. Not later than the 15th day after the date the district receives a payment described by Section 288.155(c)(5), the district shall transfer to each district taxpayer an amount equal to the proportionate share of those funds to which the taxpayer is entitled.

SECTION 11. Section 288.201(a), Health and Safety Code, is 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.

SECTION 12. Section 288.202(a), 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.

SECTION 13. 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].

SECTION 14. Sections 288.003, 288.004, 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.

SECTION 12. 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.

SECTION 13. This Act takes effect September 1, 2013.