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AN ACT
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relating to the creation and operations of health care funding |
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districts in certain counties located on the Texas-Mexico border. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Chapter 288, Health and Safety |
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Code, is amended to read as follows: |
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CHAPTER 288. HEALTH CARE FUNDING DISTRICTS IN CERTAIN COUNTIES |
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LOCATED ON TEXAS-MEXICO BORDER [THAT ARE ADJACENT TO COUNTIES WITH
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POPULATION OF 50,000 OR MORE] |
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SECTION 2. Subdivisions (2) and (3), Section 288.001, |
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Health and Safety Code, are amended to read as follows: |
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(2) "District" means a county health care funding |
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district created under [by] this chapter. |
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(3) "Paying hospital [District taxpayer]" means an |
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institutional health care provider required to make a mandatory |
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payment [a person or entity who has paid a tax imposed] under this |
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chapter. |
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SECTION 3. Section 288.002, Health and Safety Code, is |
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amended to read as follows: |
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Sec. 288.002. CREATION OF DISTRICT. A district may be [is] |
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created by order of the commissioners court of [in] each county |
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located on the Texas-Mexico border that has a population of: |
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(1) 500,000 or more and is adjacent to two or more |
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counties each of which has a population of 50,000 or more; |
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(2) 350,000 or more and is adjacent to a county |
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described by Subdivision (1); or |
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(3) less than 300,000 and contains one or more |
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municipalities with a population of 200,000 or more. |
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SECTION 4. Subchapter A, Chapter 288, Health and Safety |
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Code, is amended by adding Sections 288.0031 and 288.0032 to read as |
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follows: |
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Sec. 288.0031. DISSOLUTION. A district created under this |
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chapter may be dissolved in the manner provided for the dissolution |
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of a hospital district under Subchapter E, Chapter 286. |
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Sec. 288.0032. EXPIRATION OF CHAPTER; DISTRIBUTION OF FUNDS |
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ON EXPIRATION. (a) A district created under this chapter is |
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abolished and this chapter expires on December 31, 2016. |
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(b) The commissioners court of a county in which a district |
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is created shall refund to each paying hospital the proportionate |
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share of any money remaining in the local provider participation |
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fund created by the district under Section 288.155 at the time the |
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district is abolished. |
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SECTION 5. The heading to Section 288.051, Health and |
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Safety Code, is amended to read as follows: |
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Sec. 288.051. COMMISSION; DISTRICT GOVERNANCE |
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[APPOINTMENT]. |
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SECTION 6. Section 288.051, Health and Safety Code, is |
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amended by amending Subsection (a) and adding Subsections (c) and |
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(d) to read as follows: |
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(a) Each district created under Section 288.002 is governed |
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by a commission consisting of the commissioners court of the county |
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in which the district is created [of five members appointed as
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provided by this section]. |
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(c) Service on the commission by a county commissioner or |
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county judge is an additional duty of that person's office. |
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(d) A district is a component of county government and is |
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not a separate political subdivision of this state. |
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SECTION 7. Section 288.101, Health and Safety Code, is |
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amended to read as follows: |
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Sec. 288.101. LIMITATION ON [TAXING] AUTHORITY TO REQUIRE |
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MANDATORY PAYMENT. Each district may require a mandatory payment |
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[impose taxes] only in the manner provided by this chapter. |
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SECTION 8. Section 288.102, Health and Safety Code, is |
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amended to read as follows: |
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Sec. 288.102. MAJORITY VOTE REQUIRED. (a) A district may |
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not require [impose] any mandatory payment [tax] authorized by this |
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chapter, spend any money, including for the administrative expenses |
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of the district, or conduct any other business of the commission |
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without an affirmative vote of a majority of the members of the |
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commission. |
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(b) Before requiring a mandatory payment [imposing a tax] |
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under this chapter in any one year, the commission must obtain the |
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affirmative vote required by Subsection (a). |
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SECTION 9. Subsection (a), Section 288.104, Health and |
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Safety Code, is amended to read as follows: |
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(a) The commission may adopt rules governing the operation |
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of the district, including rules relating to the administration of |
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a mandatory payment [tax] authorized by this chapter. |
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SECTION 10. Section 288.151, Health and Safety Code, is |
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amended to read as follows: |
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Sec. 288.151. HEARING [BUDGET]. (a) Each year, the |
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commission of a district shall hold a public hearing on [prepare a
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budget for the following fiscal year that includes:
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[(1) proposed expenditures and disbursements;
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[(2) estimated receipts and collections; and
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[(3)] the [rates and] amounts of any mandatory |
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payments [taxes] that the commission intends to require [impose] |
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during the year and how the revenue derived from those payments is |
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to be spent. |
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(b) [The commission shall hold a public hearing on the
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proposed budget.] Not later than the 10th day before the date of |
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the hearing, the commission shall publish at least once notice of |
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the hearing in a newspaper of general circulation in the county in |
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which the district is located. |
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(c) A representative of a paying hospital [Any district
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taxpayer] is entitled to appear at the time and place designated in |
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the public notice and to be heard regarding any matter related to |
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the mandatory payments required by the district under this chapter |
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[item shown in the proposed budget]. |
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SECTION 11. Subsection (b), Section 288.154, Health and |
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Safety Code, is amended to read as follows: |
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(b) All income received by a district, including the [tax] |
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revenue from mandatory payments remaining after [deducting] |
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discounts and fees for assessing and collecting the payments are |
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deducted [taxes], shall be deposited with the district depository |
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as provided by Section 288.203 and may be withdrawn only as provided |
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by this chapter. |
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SECTION 12. Subchapter D, Chapter 288, Health and Safety |
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Code, is amended by adding Sections 288.155 and 288.156 to read as |
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follows: |
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Sec. 288.155. LOCAL PROVIDER PARTICIPATION FUND; |
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AUTHORIZED USES OF MONEY. (a) Each district shall create a local |
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provider participation fund. |
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(b) The local provider participation fund consists of: |
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(1) all revenue from the mandatory payment required by |
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this chapter, including any penalties and interest attributable to |
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delinquent payments; |
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(2) money received from the Health and Human Services |
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Commission as a refund of an intergovernmental transfer from the |
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district to the state for the purpose of providing the nonfederal |
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share of Medicaid supplemental payment program payments, provided |
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that the intergovernmental transfer does not receive a federal |
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matching payment; and |
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(3) the earnings of the fund. |
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(c) Money deposited to the local provider participation |
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fund may be used only to: |
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(1) fund intergovernmental transfers from the |
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district to the state to provide the nonfederal share of a Medicaid |
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supplemental payment program authorized under the state Medicaid |
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plan, the Texas Healthcare Transformation and Quality Improvement |
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Program waiver issued under Section 1115 of the federal Social |
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Security Act (42 U.S.C. Section 1315), or a successor waiver |
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program authorizing similar Medicaid supplemental payment |
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programs; |
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(2) subsidize indigent programs; |
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(3) pay the administrative expenses of the district; |
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(4) refund a portion of a mandatory payment collected |
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in error from a paying hospital; and |
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(5) refund to paying hospitals the proportionate share |
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of the money received by the district from the Health and Human |
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Services Commission that is not used to fund the nonfederal share of |
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Medicaid supplemental payment program payments. |
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(d) Money in the local provider participation fund may not |
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be commingled with other county funds. |
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(e) An intergovernmental transfer of funds described by |
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Subsection (c)(1) and any funds received by the district as a result |
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of an intergovernmental transfer described by that subdivision may |
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not be used by the district, the county in which the district is |
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located, or any other entity to expand Medicaid eligibility under |
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the Patient Protection and Affordable Care Act (Pub. L. No. |
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111-148) as amended by the Health Care and Education Reconciliation |
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Act of 2010 (Pub. L. No. 111-152). |
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Sec. 288.156. ALLOCATION OF CERTAIN FUNDS. Not later than |
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the 15th day after the date the district receives a payment |
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described by Section 288.155(c)(5), the district shall transfer to |
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each paying hospital an amount equal to the proportionate share of |
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those funds to which the hospital is entitled. |
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SECTION 13. The heading to Subchapter E, Chapter 288, |
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Health and Safety Code, is amended to read as follows: |
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SUBCHAPTER E. MANDATORY PAYMENTS [TAXES] |
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SECTION 14. Section 288.201, Health and Safety Code, is |
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amended to read as follows: |
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Sec. 288.201. MANDATORY PAYMENT BASED [TAX] ON [OUTPATIENT] |
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HOSPITAL NET PATIENT REVENUE [SERVICES]. (a) Except as provided |
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by Subsection (e), the [The] commission of a district may require |
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[impose] an annual mandatory payment [tax] to be assessed quarterly |
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on the net patient revenue of [all outpatient hospital visits to] an |
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institutional health care provider located in the district. In the |
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first year in which the mandatory payment [tax] is required |
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[imposed], the mandatory payment [tax] is assessed on the net |
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patient revenue [total number of outpatient hospital visits] of an |
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institutional health care provider as determined by the data |
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reported to the Department of State Health Services under Sections |
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311.032 and 311.033 in the fiscal year ending in 2010 [2003]. The |
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district shall update the amount of the mandatory payment [this tax
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basis with the number of outpatient hospital visits reported] on a |
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biennial basis. |
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(b) The amount of a mandatory payment required under this |
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chapter must be uniformly proportionate with the amount of net |
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patient revenue generated by each paying hospital in the district. |
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[A tax imposed under this section must be imposed uniformly on each
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institutional health care provider of outpatient hospital services
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located in the district.] A mandatory payment required [tax
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imposed] under this section [also] may not hold harmless any |
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institutional health care provider [of outpatient hospital
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services], as required under 42 U.S.C. Section 1396b(w). |
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(c) The commission of a district shall set the amount [rate] |
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of the mandatory payment required [tax imposed] under this section. |
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The amount of the mandatory payment required of each paying |
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hospital [rate] may not exceed an amount that, when added to the |
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amount of the mandatory payments required from all other paying |
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hospitals in the district, equals an amount of revenue that exceeds |
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six percent of the aggregate net patient revenue of all paying |
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hospitals in the district [$100 for each outpatient hospital
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visit]. |
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(d) Subject to the maximum amount [tax rate] prescribed by |
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Subsection (c), the commission shall set the mandatory payments in |
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amounts [rate of the tax at a rate] that in the aggregate will |
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generate sufficient revenue to cover the administrative expenses of |
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the district, to fund the nonfederal share of a Medicaid |
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supplemental payment program, and to pay for indigent programs, |
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except that the amount of [tax] revenue from mandatory payments |
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used for administrative expenses of the district in a year may not |
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exceed the lesser of four percent of the total revenue generated |
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from the mandatory payment [tax] or $20,000. |
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(e) An institutional health care provider may not add a |
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mandatory payment required [tax imposed] under this section as a |
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surcharge to a patient. |
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SECTION 15. Section 288.202, Health and Safety Code, is |
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amended to read as follows: |
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Sec. 288.202. ASSESSMENT AND COLLECTION OF MANDATORY |
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PAYMENTS [TAXES]. (a) Except as provided by Subsection (b), the |
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county tax assessor-collector shall collect a mandatory payment |
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required [tax imposed] under this subchapter [unless the commission
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employs a tax assessor and collector for the district]. The county |
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tax assessor-collector shall charge and deduct from mandatory |
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payments [taxes] collected for the district a fee for collecting |
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the mandatory payment [tax] in an amount determined by the |
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commission, not to exceed the county tax assessor-collector's usual |
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and customary charges [for the collection of similar taxes]. |
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(b) If determined by the commission to be appropriate, the |
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commission may contract for the assessment and collection of |
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mandatory payments [taxes] in the manner provided by Title 1, Tax |
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Code, for the assessment and collection of ad valorem taxes. |
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(c) Revenue from a fee charged by a county tax |
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assessor-collector for collecting the mandatory payment [tax] |
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shall be deposited in the county general fund and, if appropriate, |
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shall be reported as fees of the county tax assessor-collector. |
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SECTION 16. Section 288.203, Health and Safety Code, is |
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amended to read as follows: |
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Sec. 288.203. DEPOSIT [USE] OF [TAX] REVENUE FROM MANDATORY |
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PAYMENTS. Revenue [generated by a district] from the mandatory |
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payment required by [a tax imposed under] this chapter shall be |
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deposited in the district's local provider participation fund |
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[subchapter may be used only to:
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[(1)
provide the nonfederal share of a Medicaid
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supplemental payment program;
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[(2) subsidize indigent programs; and
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[(3) pay administrative expenses of the district]. |
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SECTION 17. Section 288.204, Health and Safety Code, is |
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amended to read as follows: |
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Sec. 288.204. INTEREST, PENALTIES, AND DISCOUNTS. |
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Interest, penalties, and discounts on mandatory payments required |
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[taxes imposed] under this subchapter are governed by the law |
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applicable to county ad valorem taxes. |
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SECTION 18. Section 288.205, Health and Safety Code, is |
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amended to read as follows: |
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Sec. 288.205. PURPOSE; CORRECTION OF INVALID PROVISION OR |
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PROCEDURE. (a) The purpose of this chapter is to generate revenue |
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from a mandatory payment required [tax imposed] by the district to |
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provide the nonfederal share of a Medicaid supplemental payment |
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program. |
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(b) To the extent any provision or procedure under this |
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chapter causes a mandatory payment [tax] under this chapter to be |
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ineligible for federal matching funds, the district may provide by |
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rule for an alternative provision or procedure that conforms to the |
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requirements of the federal Centers for Medicare and Medicaid |
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Services. |
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SECTION 19. Sections 288.003 and 288.004; Subsection (b), |
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Section 288.051; Sections 288.052, 288.053, 288.054, 288.055, |
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288.056, 288.057, 288.058, and 288.103; Subsection (b), Section |
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288.104; and Sections 288.105, 288.107, 288.153, and 288.206, |
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Health and Safety Code, are repealed. |
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SECTION 20. If before implementing any provision of this |
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Act a state agency determines that a waiver or authorization from a |
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federal agency is necessary for implementation of that provision, |
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the agency affected by the provision shall request the waiver or |
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authorization and may delay implementing that provision until the |
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waiver or authorization is granted. |
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SECTION 21. This Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2013. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1623 passed the Senate on |
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April 11, 2013, by the following vote: Yeas 28, Nays 3; and that |
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the Senate concurred in House amendments on May 24, 2013, by the |
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following vote: Yeas 28, Nays 3. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1623 passed the House, with |
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amendments, on May 21, 2013, by the following vote: Yeas 142, |
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Nays 4, two present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |