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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation of county health care funding districts in |
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certain counties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle D, Title 4, Health and Safety Code, is |
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amended by adding Chapter 296 to read as follows: |
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CHAPTER 296. COUNTY HEALTH CARE FUNDING DISTRICT IN CERTAIN |
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COUNTIES |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 296.001. DEFINITIONS. In this chapter: |
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(1) "Commission" means the commission of a district |
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created under this chapter. |
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(2) "District" means a county health care funding |
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district created under this chapter. |
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(3) "Institutional health care provider" means a |
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nonpublic hospital licensed under Chapter 241. |
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(4) "Paying hospital" means an institutional health |
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care provider required to make a mandatory payment under this |
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chapter. |
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Sec. 296.002. CREATION OF DISTRICT. A district may be |
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created by order of the commissioners court of each county that: |
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(1) is not served by a hospital district or a public |
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hospital; and |
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(2) has a population of less than 200,000 and contains |
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two municipalities both with populations of 75,000 or more. |
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Sec. 296.003. 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. 296.004. DISTRICT TERRITORY. The boundaries of each |
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district are coextensive with the boundaries of the county in which |
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the district is created. |
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SUBCHAPTER B. DISTRICT ADMINISTRATION |
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Sec. 296.051. COMMISSION; DISTRICT GOVERNANCE. (a) Each |
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district created under Section 296.002 is governed by a commission |
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consisting of the commissioners court of the county in which the |
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district is created. |
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(b) 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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(c) 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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SUBCHAPTER C. POWERS AND DUTIES |
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Sec. 296.101. LIMITATION ON AUTHORITY TO REQUIRE MANDATORY |
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PAYMENT. Each district may require a mandatory payment only in the |
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manner provided by this chapter. |
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Sec. 296.102. MAJORITY VOTE REQUIRED. (a) A district may |
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not require any mandatory payment authorized under this chapter, |
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spend any money, including for the administrative expenses of the |
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district, or conduct any other business without an affirmative vote |
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of a majority of the members of the commission. |
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(b) Before requiring a mandatory payment under this chapter |
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in any one year, the commission must obtain the affirmative vote |
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required by Subsection (a). |
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Sec. 296.103. RULES AND PROCEDURES. After the commission |
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has voted to require a mandatory payment authorized under this |
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chapter, the commission may adopt rules governing the operation of |
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the district, including rules relating to the administration of a |
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mandatory payment authorized under this chapter. |
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Sec. 296.104. INSTITUTIONAL HEALTH CARE PROVIDER |
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REPORTING; INSPECTION OF RECORDS. (a) A district shall require |
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each institutional health care provider to submit to the district a |
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copy of any financial and utilization data required by and reported |
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to the Department of State Health Services under Sections 311.032 |
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and 311.033 and any rules adopted by the executive commissioner of |
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the Health and Human Services Commission to implement those |
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sections. |
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(b) A district may inspect the records of an institutional |
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health care provider to the extent necessary to ensure compliance |
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with the requirements of Subsection (a). |
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SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS |
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Sec. 296.151. HEARING. (a) Each year, the commission of a |
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district shall hold a public hearing on the amounts of any |
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mandatory payments that the commission intends to require during |
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the year and how the revenue derived from those payments is to be |
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spent. |
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(b) Not later than the 10th day before the date of the |
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hearing required under Subsection (a), the commission shall publish |
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notice of the hearing in a newspaper of general circulation in the |
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county in which the district is located. |
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(c) A representative of a paying hospital is entitled to |
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appear at the time and place designated in the public notice and to |
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be heard regarding any matter related to the mandatory payments |
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authorized under this chapter. |
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Sec. 296.152. FISCAL YEAR. Each district's fiscal year |
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begins on September 1 and ends on August 31 of each year. |
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Sec. 296.153. DEPOSITORY. (a) Each commission by |
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resolution shall designate one or more banks located in the |
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district as the depository for the district. A bank designated as a |
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depository serves for two years or until a successor is designated. |
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(b) All income received by a district, including the revenue |
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from mandatory payments remaining after discounts and fees for |
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assessing and collecting the payments are deducted, shall be |
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deposited with the district depository in the district's local |
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provider participation fund and may be withdrawn only as provided |
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by this chapter. |
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(c) All district funds shall be secured in the manner |
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provided for securing county funds. |
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Sec. 296.154. 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 payments authorized |
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under this chapter, including any penalties and interest |
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attributable to 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 money received by the district from the Health and Human Services |
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Commission that is not used to fund the nonfederal share of Medicaid |
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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 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 subsection 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. |
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No. 111-148) as amended by the Health Care and Education |
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Reconciliation Act of 2010 (Pub. L. No. 111-152). |
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Sec. 296.155. 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 296.154(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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SUBCHAPTER E. MANDATORY PAYMENTS |
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Sec. 296.201. MANDATORY PAYMENTS BASED ON PAYING HOSPITAL |
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NET PATIENT REVENUE. (a) Except as provided by Subsection (e), the |
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commission of a district may require an annual mandatory payment to |
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be assessed quarterly on the net patient revenue of each |
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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 is required, the |
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mandatory payment is assessed on the net patient revenue 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 2014. The district |
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shall update the amount of the mandatory payment on a biennial |
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basis. |
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(b) The amount of a mandatory payment authorized 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 mandatory payment authorized under this chapter may not hold |
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harmless any institutional health care provider, as required under |
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42 U.S.C. Section 1396b(w). |
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(c) The commission of a district that collects a mandatory |
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payment authorized under this chapter shall set the amount of the |
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mandatory payment. The amount of the mandatory payment required of |
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each paying hospital may not exceed an amount that, when added to |
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the 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. |
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(d) Subject to the maximum amount prescribed by Subsection |
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(c), the commission shall set the mandatory payments in amounts |
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that in the aggregate will generate sufficient revenue to cover the |
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administrative expenses of the district, to fund the nonfederal |
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share of a Medicaid supplemental payment program, and to pay for |
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indigent programs, except that the amount of revenue from mandatory |
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payments used for administrative expenses of the district in a year |
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may not exceed the lesser of four percent of the total revenue |
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generated from the mandatory payment or $20,000. |
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(e) A paying hospital may not add a mandatory payment |
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required under this section as a surcharge to a patient. |
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Sec. 296.202. ASSESSMENT AND COLLECTION OF MANDATORY |
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PAYMENTS. (a) Except as provided by Subsection (b), the county tax |
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assessor-collector shall collect the mandatory payment authorized |
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under this chapter. The county tax assessor-collector shall charge |
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and deduct from mandatory payments collected for the district a fee |
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for collecting the mandatory payment 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. |
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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 in the manner provided by Title 1, Tax Code, for |
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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 shall be |
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deposited in the county general fund and, if appropriate, shall be |
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reported as fees of the county tax assessor-collector. |
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Sec. 296.203. INTEREST, PENALTIES, AND DISCOUNTS. |
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Interest, penalties, and discounts on mandatory payments required |
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under this chapter are governed by the law applicable to county ad |
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valorem taxes. |
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Sec. 296.204. 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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by collecting from institutional health care providers a mandatory |
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payment to be used to provide the nonfederal share of a Medicaid |
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supplemental payment program. |
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(b) To the extent any provision or procedure under this |
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chapter causes a mandatory payment authorized under this chapter to |
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be ineligible for federal matching funds, the district may provide |
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by rule for an alternative provision or procedure that conforms to |
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the requirements of the federal Centers for Medicare and Medicaid |
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Services. |
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SECTION 2. If before implementing any provision of this Act |
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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 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2015. |