CHAPTER 290. COUNTY HEALTH CARE FUNDING DISTRICTS IN CERTAIN COUNTIES WITH POPULATION OF 1.4 MILLION OR LESS
HEALTH AND SAFETY CODE
TITLE 4. HEALTH FACILITIES
SUBTITLE D. HOSPITAL DISTRICTS
CHAPTER 290. COUNTY HEALTH CARE FUNDING DISTRICTS IN CERTAIN
COUNTIES WITH POPULATION OF 1.4 MILLION OR LESS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 290.001. DEFINITIONS. In this chapter:
(1) "Commission" means the commission of a district created
under this chapter.
(2) "District" means a county health care funding district
created by this chapter.
(3) "District taxpayer" means a person or entity who has paid a
tax imposed under this chapter.
(4) "Institutional health care provider" means a nonpublic
hospital licensed under Chapter 241.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.002. CREATION OF DISTRICT. A district is created in
each county that has a population of 1.4 million or less and in
which a municipality with a population of 1.1 million or more is
predominantly located.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.003. DURATION OF DISTRICT. (a) Unless continued in
existence by the legislature, a district created by this chapter
is abolished September 1, 2007.
(b) Any money held by a district at the time the district is
abolished shall be used to pay any outstanding administrative
expenses of the district, and the commission shall direct the
secretary of the commission to return the pro rata share of any
remaining district money to each district taxpayer.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.004. POLITICAL SUBDIVISION. A district created by this
chapter is a political subdivision of this state.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.005. DISTRICT TERRITORY. The boundaries of each
district are coextensive with the boundaries of the county in
which the district is created.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 290.051. COMMISSION; APPOINTMENT. (a) Each district is
governed by a commission 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 290.052 to
serve on the commission. The county judge of the county shall
appoint any remaining members who meet the qualifications
prescribed by Section 290.052 to serve on the commission.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.052. QUALIFICATION OF MEMBERS OF COMMISSION. To be
eligible to serve as a member of the commission, a person must:
(1) be a United States citizen;
(2) be 18 years of age or older on the first day of the term
that the person is appointed to fill;
(3) have not been determined mentally incompetent by a final
judgment of a court;
(4) have not been finally convicted of a felony from which the
person has not been pardoned or otherwise released from the
resulting disabilities;
(5) have resided continuously in this state for 12 months and in
the county in which the district is located for six months
immediately preceding the date of the appointment; and
(6) be a person knowledgeable in the field of health care.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.053. TERM OF MEMBERS OF COMMISSION. The members of the
commission serve staggered two-year terms.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.054. VACANCY. (a) If a vacancy occurs on the
commission, the commissioners court of the county in which the
district is located shall appoint a qualified person to fill the
vacancy not later than the 30th day after the date the vacancy
occurs.
(b) If the commissioners court of the county in which the
district is located does not appoint a member to the commission
to fill a vacancy by the 30th day after the date the vacancy
occurs, the remaining members of the commission may, by vote of
the commission, appoint a replacement.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.055. OFFICERS. (a) Each commission shall elect a
chairperson and a secretary from among its members.
(b) The chairperson and secretary shall each serve in that
office until the expiration of their term as a member of the
commission.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.056. COMPENSATION; EXPENSES. A member of the
commission serves without compensation but may, on the approval
of the entire commission, be reimbursed for actual expenses
incurred in the performance of the member's official duties.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.057. EMPLOYEES AND INDEPENDENT CONTRACTORS. The
commission may employ an attorney, financial advisor, and
bookkeeper for the district or contract for those services.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.058. MAINTENANCE OF RECORDS; PUBLIC INSPECTION. Except
as otherwise provided by law, all district records, including
books, accounts, notices, minutes, and all other matters of the
district and the operation of its facilities, shall be:
(1) maintained at the district office; and
(2) open to public inspection at the district office during
reasonable hours.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 290.101. LIMITATION ON TAXING AUTHORITY. Each district may
impose taxes only in the manner provided by this chapter.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.102. MAJORITY VOTE REQUIRED. (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.
(b) Before imposing a tax under this chapter in any one year,
the commission must obtain the affirmative vote required by
Subsection (a).
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.103. ELECTION REQUIRED FOR CERTAIN EXPENDITURES. (a)
In addition to the majority vote required under Section 290.102,
a district may not spend any money of the district unless the
district receives the approval of at least 95 percent of the
district taxpayers.
(b) This section does not apply to expenditures related to the
administrative matters of the district.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.104. RULES AND PROCEDURES. (a) The commission may
adopt rules governing the operation of the district, including
rules relating to the administration of a tax authorized by this
chapter.
(b) In order to implement the requirements of Sections 290.102
and 290.103, the commission shall adopt any necessary procedures.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.105. PURCHASING AND ACCOUNTING PROCEDURES. (a) The
commission may prescribe the method and manner for making
purchases and expenditures by the district.
(b) The commission shall prescribe:
(1) all accounting and control procedures; and
(2) the method of purchasing necessary supplies, materials, and
equipment.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.106. INSTITUTIONAL HEALTH CARE PROVIDER REPORTING;
INSPECTION OF RECORDS. (a) A district shall require an
institutional health care provider to submit to the district a
copy of any financial and utilization data required by and
reported to the Department of State Health Services under
Sections 311.032 and 311.033 and any rules adopted by the
department to implement those sections.
(b) A district may inspect the records of an institutional
health care provider to the extent necessary to ensure that the
provider has submitted all required data under this section.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.107. AUTHORITY TO SUE AND BE SUED. Each district may
sue and be sued in its own name in any court of this state as a
governmental agency.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 290.151. BUDGET. (a) Each year, the commission shall
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.
(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 item shown in the proposed budget.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.152. FISCAL YEAR. Each district's fiscal year begins
on September 1 and ends on August 31 of each year.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.153. ANNUAL AUDIT. (a) For each fiscal year, each
commission shall have an independent audit made of the district's
books and records.
(b) Not later than December 31 of each year, the audit made for
a district shall be filed with the comptroller and at the office
of the district.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.154. DEPOSITORY. (a) Each commission by resolution
shall designate one or more banks located in the district as the
depository for the district. A bank designated as depository
serves for two years or until a successor is designated.
(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 and
may be withdrawn only as provided by this chapter.
(c) All district funds shall be secured in the manner provided
for securing county funds.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
SUBCHAPTER E. TAXES
Sec. 290.201. TAX ON EMERGENCY ROOM SERVICES. (a) The
commission of a district may impose an annual tax to be assessed
quarterly on all emergency room 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 emergency room 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 2003.
The district shall update this tax basis with the number of
emergency room visits reported on a biennial basis.
(b) A tax imposed under this section must be imposed uniformly
on each institutional health care provider of emergency room
services located in the district. A tax imposed under this
section also may not hold harmless any institutional health care
provider of emergency room services, as required under 42 U.S.C.
Section 1396b(w).
(c) The commission shall set the rate of the tax imposed under
this section. The rate may not exceed $100 for each emergency
room visit.
(d) Subject to the maximum tax rate prescribed by Subsection
(c), the commission shall set the rate of the tax at a rate that
will generate sufficient revenue to cover the administrative
expenses of the district, to fund the nonfederal share of a
Medicaid supplemental payment program, and to pay for indigent
programs, except that the amount of tax revenue used for
administrative expenses of the district in a year may not exceed
the lesser of four percent of the total revenue generated from
the tax or $20,000.
(e) An institutional health care provider may not add a tax
imposed under this section as a surcharge to a patient.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.202. ASSESSMENT AND COLLECTION OF TAXES. (a) Except
as provided by Subsection (b), the county tax assessor-collector
shall collect any 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.
(b) If determined by the commission to be appropriate, the
commission may contract for the assessment and collection of
taxes in the manner provided by Title 1, Tax Code, for the
assessment and collection of ad valorem taxes.
(c) Revenue from a fee charged by a county tax
assessor-collector for collecting the tax shall be deposited in
the county general fund and, if appropriate, shall be reported as
fees of the county tax assessor-collector.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.203. USE OF TAX REVENUE. Revenue generated by a
district from a tax imposed under this 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.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.204. INTEREST, PENALTIES, AND DISCOUNTS. Interest,
penalties, and discounts on taxes imposed under this subchapter
are governed by the law applicable to county ad valorem taxes.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.205. PURPOSE; CORRECTION OF INVALID PROVISION OR
PROCEDURE. (a) The purpose of this chapter is to generate
revenue from a tax imposed by the district to provide the
nonfederal share of a Medicaid supplemental payment program.
(b) To the extent any provision or procedure under this chapter
causes a tax under this chapter to be ineligible for federal
matching funds, the district may provide by rule for an
alternative provision or procedure that conforms to the
requirements of the federal Centers for Medicare and Medicaid
Services.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.
Sec. 290.206. ELECTION REQUIRED FOR CERTAIN PROVISIONS OR
PROCEDURES. (a) In order to amend any provision or procedure
set out in this chapter, the district must obtain the approval of
at least 95 percent of the institutional health care providers
potentially subject to the tax.
(b) This section does not apply to rules or procedures related
to the daily administrative matters of the district.
Added by Acts 2005, 79th Leg., Ch.
1367, Sec. 1, eff. June 18, 2005.