HB3505 - Relating to the continuation and operation of a health care provider participation district created by certain local governments to administer a health care provider participation program.

      H.B. No. 3505         AN ACT   relating to the continuation and operation of a health care   provider participation district created by certain local   governments to administer a health care provider participation   program.          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 300C to read as follows:   CHAPTER 300C.   HEALTH CARE PROVIDER PARTICIPATION DISTRICTS CREATED   BY CERTAIN LOCAL GOVERNMENTS   SUBCHAPTER A.   GENERAL PROVISIONS           Sec.   300C.0001.     PURPOSE. The purpose of this chapter is to   authorize a health care provider participation district created by   certain local governments to administer a health care provider   participation program to provide additional compensation to   certain hospitals in the district by collecting mandatory payments   from each of those hospitals in the district to be used to provide   the nonfederal share of a Medicaid supplemental payment program and   for other purposes as authorized under this chapter.           Sec. 300C.0002.  DEFINITIONS. In this chapter:                 (1)     "Board" means the board of directors of a   district.                 (2)  "Director" means a member of the board.                 (3)     "District" means a health care provider   participation district created under Chapter 300A and operating   under this chapter.                 (4)     "Institutional health care provider" means a   nonpublic hospital that provides inpatient hospital services.                 (5)     "Local government" means a hospital district,   county, or municipality to which this chapter applies.                 (6)     "Paying hospital" means an institutional health   care provider required to make a mandatory payment under this   chapter.                 (7)     "Program" means a health care provider   participation program authorized by this chapter.           Sec.   300C.0003.     APPLICABILITY. This chapter applies only   to a local government that jointly created a health care provider   participation district by concurrent order under Chapter 300A and   is:                 (1)     a county with a population of more than 80,000 and   less than 90,000 that borders the Trinity River;                 (2)     a county with a population of more than 45,000 and   less than 55,000 that borders Oklahoma; or                 (3)     a hospital district located in a county that has a   population of more than 30,000 and contains a portion of Jim Chapman   Lake.   SUBCHAPTER B. OPERATION AND DISSOLUTION OF DISTRICT           Sec.   300C.0021.     OPERATION. (a)   A health care provider   participation district created under Chapter 300A may operate under   and be governed by the provisions of this chapter instead of Chapter   300A if:                 (1)     each local government that jointly created the   district adopts a concurrent order authorizing the district to   operate under and be governed by the provisions of this chapter; and                 (2)     the district's board ratifies the concurrent order   adopted by each participating local government.           (b)     A concurrent order authorizing a district to operate   under this chapter must:                 (1)     be approved by the governing body of each   participating local government;                 (2)     contain provisions that are identical to the   provisions of the concurrent order adopted by each other   participating local government;                 (3)     affirm that the district's territory is the area   contained within the boundaries of each participating local   government; and                 (4)     provide that the district begins to operate under   this chapter immediately on the expiration of the district's   authority to administer and operate a program under Chapter 300A.           Sec.   300C.0022.     POWERS. (a) A district may authorize and   administer a health care provider participation program in   accordance with this chapter.           (b)     Notwithstanding Section 300A.0155, a district that   complies with the provisions of this chapter may administer and   operate a health care provider participation program under this   chapter after its authority to administer and operate a program   under Chapter 300A has expired.           Sec.   300C.0023.     BOARD OF DIRECTORS. (a) If three or more   local governments adopt concurrent orders authorizing a health care   provider participation district to operate under this chapter, the   presiding officer of the governing body of each local government   that created the district shall appoint one director.           (b)     If two local governments adopt concurrent orders   described by Subsection (a):                 (1)     the presiding officer of the governing body of the   most populous local government shall appoint two directors; and                 (2)     the presiding officer of the governing body of the   local government not described by Subdivision (1) shall appoint one   director.           (c)     Directors serve staggered two-year terms, with as near   as possible to one-half of the directors' terms expiring each year.           (d)     A vacancy in the office of director shall be filled for   the unexpired term in the same manner as the original appointment.           (e)     The board shall elect from among its members a president   and a vice president.           (f)     The president may vote and may cast an additional vote   to break a tie.           (g)     The board shall appoint a secretary, who need not be a   director.           (h)  Each officer of the board serves for a term of one year.           (i)     The board shall fill a vacancy in a board office for the   unexpired term.           (j)     A majority of the members of the board voting must   concur in a matter relating to the business of the district.           Sec.   300C.0024.     QUALIFICATIONS FOR OFFICE. (a) To be   eligible to serve as a director, a person must be a resident of the   local government that appoints the person.           (b)  An employee of the district may not serve as a director.           Sec.   300C.0025.     COMPENSATION. (a) Directors and officers   serve without compensation but may be reimbursed for actual   expenses incurred in the performance of official duties.           (b)  Expenses reimbursed under this section must be:                 (1)     reported in the district's minute book or other   district records; and                 (2)  approved by the board.           Sec.   300C.0026.     AUTHORITY TO SUE AND BE SUED. The board may   sue and be sued on behalf of the district.           Sec.   300C.0027.     DISTRICT FINANCES. (a) Except as   otherwise provided by this section, Subchapter F, Chapter 287,   applies to a district in the same manner that the provisions of that   subchapter apply to a health services district created under   Chapter 287.           (b)  Sections 287.129 and 287.130 do not apply to a district.           (c)     This section does not authorize a district to issue   bonds.           Sec.   300C.0028.     DISSOLUTION. A district shall be dissolved   if the local governments that created the district adopt concurrent   orders to dissolve the district and the concurrent orders contain   identical provisions.           Sec.   300C.0029.     ADMINISTRATION OF PROPERTY, DEBTS, AND   ASSETS AFTER DISSOLUTION. (a) After dissolution of a district   under Section 300C.0028, the board shall continue to control and   administer any property, debts, and assets of the district until   all of the district's property and assets have been disposed of and   all of the district's debts have been paid or settled.           (b)     As soon as practicable after the dissolution of the   district, the board shall transfer to each institutional health   care provider in the district the provider's proportionate share of   any remaining money in any local provider participation fund   created by the district.           (c)     If, after administering the district's property and   assets, the board determines that the property and assets are   insufficient to pay the debts of the district, the district shall   transfer the remaining debts to the local governments that created   the district in proportion to the money contributed to the district   by each local government, including a paying hospital in the local   government.           (d)     If, after complying with Subsections (b) and (c) and   administering the district's property and assets, the board   determines that unused money remains, the board shall transfer the   unused money to the local governments that created the district in   proportion to the money contributed to the district by each local   government, including a paying hospital in the local government.           Sec.   300C.0030.     ACCOUNTING AFTER DISSOLUTION. After the   district has paid or settled all its debts and has disposed of all   its property and assets, including money, as prescribed by Section   300C.0029, the board shall provide an accounting to each local   government that created the district. The accounting must show the   manner in which the property, assets, and debts of the district were   distributed.   SUBCHAPTER C. HEALTH CARE PROVIDER PARTICIPATION PROGRAM; POWERS   AND DUTIES OF DISTRICT BOARD           Sec.   300C.0051.     HEALTH CARE PROVIDER PARTICIPATION   PROGRAM. The board of a district may authorize the district to   participate in a health care provider participation program on the   affirmative vote of a majority of the board, subject to the   provisions of this chapter.           Sec.   300C.0052.     LIMITATION ON AUTHORITY OF BOARD TO REQUIRE   MANDATORY PAYMENT. (a) The board may require a mandatory payment   authorized under this chapter by an institutional health care   provider in the district only in the manner provided by this   chapter.           (b)     The board may not require a mandatory payment under this   chapter during a period for which the board requires a mandatory   payment under Chapter 300A.           Sec.   300C.0053.     RULES AND PROCEDURES. The board may adopt   rules relating to the administration of the health care provider   participation program in the district, including collection of the   mandatory payments, expenditures, audits, and any other   administrative aspects of the program.           Sec.   300C.0054.     INSTITUTIONAL HEALTH CARE PROVIDER   REPORTING. (a)   If the board authorizes the district to participate   in a health care provider participation program under this chapter,   the board sha [Text truncated for display. Full text available on Congress.gov.]