SB 1934

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
(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
(3)  a health care provider participation district
Sec. 300B.0002.  PERMISSIVE POWERS; LIMITATIONS. (a) A
qualifying local government is not required to exercise the powers
(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
(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
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
(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
(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
(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
(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
(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
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.