CHAPTER 290. COUNTY HEALTH CARE FUNDING DISTRICTS IN CERTAIN COUNTIES WITH POPULATION OF 1.4 MILLION OR LESS

State Codes and Statutes

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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.

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.

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).

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.

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.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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