89R9797 SRA-F

By: Hinojosa of Hidalgo S.B. No. 1934

A BILL TO BE ENTITLED

AN ACT

relating to the operation of certain health care provider participation programs in this state.

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

SECTION 1. Subtitle D, Title 4, Health and Safety Code, is amended by adding Chapter 300B to read as follows:

CHAPTER 300B. PROVISIONS GENERALLY APPLICABLE TO HEALTH CARE

PROVIDER PARTICIPATION PROGRAMS

Sec. 300B.0001. DEFINITION. In this chapter, "qualifying local government" means:

(1) a county, municipality, or hospital district that is participating in a health care provider participation program authorized by another chapter of this subtitle;

(2) a health care funding district created under Chapter 288; or

(3) a health care provider participation district created under Chapter 300A.

Sec. 300B.0002. PERMISSIVE POWERS; LIMITATIONS. (a) A qualifying local government is not required to exercise the powers granted by this chapter.

(b) A qualifying local government may only exercise the powers granted by this chapter for the health care provider participation program that the qualifying local government administers.

(c) Before a qualifying local government exercises a power granted by this chapter, the qualifying local government must comply with procedural requirements relating to the setting of the amount of mandatory payments applicable to the health care provider participation program administered by the qualifying local government, including all applicable public notice and hearing requirements.

Sec. 300B.0003. MANDATORY PAYMENTS. (a) The governing body of a qualifying local government may require mandatory payments to be assessed against each institutional health care provider located in the qualifying local government. Mandatory payments must be assessed in a manner that complies with 42 C.F.R. Section 433.68(f)(3)(i)(A) and may not be assessed at a rate or in an amount that would generate an amount of revenue that exceeds the greater of:

(1) the amount of revenue the qualifying local government is authorized to generate under the chapter of this subtitle applicable to the health care provider participation program administered by that qualifying local government; or

(2) the amount of revenue that, when added to the amount of revenue generated by all other mandatory payments assessed against all hospitals in this state, equals an amount that does not exceed six percent of the aggregate net patient revenue attributable to hospital services provided by all hospitals in this state.

(b) If the governing body of a qualifying local government requires a mandatory payment to be assessed in the manner authorized by Subsection (a)(2) and the resulting amount of the mandatory payment exceeds the amount of the mandatory payment authorized by Subsection (a)(1), not later than the 20th day before the date of a hearing regarding the amount of mandatory payments the governing body intends to require or, if no hearing is required, not later than the 20th day before the date the governing body requires the mandatory payments to be assessed, the governing body shall notify the Health and Human Services Commission of the amount of any mandatory payments that the governing body intends to require during the year.

(c) The Health and Human Services Commission:

(1) shall determine whether the amount of any mandatory payments that the governing body intends to require under Subsection (b) complies with federal law; and

(2) not later than the 19th day after the date the commission receives notice under Subsection (b), may require the governing body to:

(A) reduce the amount of any mandatory payments the governing body intends to require during the year; or

(B) make other procedural changes to the operations of the health care provider participation program for purposes of ensuring the program complies with federal law.

Sec. 300B.0004. COMMISSION MAY REFUSE INTERGOVERNMENTAL TRANSFERS. The Health and Human Services Commission may refuse to accept all or any part of an intergovernmental transfer attributable to mandatory payments from a qualifying local government that fails to comply with a reduction or procedural change required by the commission under Section 300B.0003(c)(2).

Sec. 300B.0005. CONSTRUCTION OF CHAPTER. (a) This chapter may not be construed to affect the authority of a qualifying local government to use mandatory payments in the manner authorized by the laws applicable to the health care provider participation program administered by the qualifying local government.

(b) This chapter does not authorize a qualifying local government to:

(1) assess a mandatory payment that would qualify as a bed tax or any other tax under the laws of this state; or

(2) require payment of a mandatory payment by a public hospital, unless authorized under the chapter of this subtitle applicable to the health care provider participation program administered by that qualifying local government.

(c) This chapter does not authorize a statewide assessment on hospitals in this state.

SECTION 2. 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, 2025.