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                                                                  S.B. No. 1378




AN ACT

relating to the certification of certain nonprofit hospitals and 
hospital systems for limited liability.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subsections (a), (c), and (d), Section 311.0456, 
Health and Safety Code, are amended to read as follows:
	(a)  In this section:                                                   
		(1)  "Department"[, "department"] means the [Texas] 
Department of State Health Services.
		(2)  "Nonprofit hospital" has the meaning assigned by 
Section 311.042(9)(A).
	(c)  To be eligible for certification under Subsection (d), a 
nonprofit hospital or hospital system must provide:
		(1)  charity care in an amount equal to at least eight 
percent of the net patient revenue of the hospital or hospital 
system during the most recent [preceding] fiscal year of the 
hospital or system; and
		(2)  at least 40 percent of the charity care provided in 
the county in which the hospital is located.
	(d)  To be certified under this subsection, a nonprofit 
hospital or hospital system must submit a written request for 
certification [a report based on its most recent completed and 
audited prior fiscal year] to the department not later than May 31 
[April 30] of each year stating that the hospital or system is 
eligible for certification.  The department must determine 
eligibility for certification [verify the information in the 
report] not later than December [May] 31 of the year in which the 
department receives the request [report] by checking  [the 
information against] the report submitted [filed] by the hospital 
or system under Section 311.033 and the statement of community 
benefits and charity care submitted by the nonprofit hospital or 
hospital system under Section 311.045.  If a report under Section 
311.033 is not available for all hospitals in a county in which a 
nonprofit hospital meeting the requirement of Subsection (c)(1) is 
requesting certification, the department shall determine the 
eligibility of the hospital or hospital system using other sources 
of verified charity care information available at the time of 
certification [311.046].  The [After the department has verified 
the information in the report, the] department shall certify that 
the hospital or hospital system has met the requirements for 
certification.  The certification issued under this subsection to a 
nonprofit hospital or hospital system takes effect on December 
[May] 31 of that year and expires on the anniversary of that date.
	SECTION 2.  (a)  Notwithstanding Subsection (b), Section 
311.0456, Health and Safety Code, if this Act takes effect:
		(1)  before September 1, 2005, a certification issued 
by the Texas Department of Health or the Department of State Health 
Services in 2004 continues in effect until December 31, 2005; or
		(2)  on September 1, 2005, a certification issued by 
the Texas Department of Health or the Department of State Health 
Services that takes effect May 31, 2005, continues in effect until 
December 31, 2006.
	(b)  The change in law made by this Act to Section 311.0456, 
Health and Safety Code, applies only to a certification that occurs 
on or after the effective date of this Act.  A certification that 
occurs before the effective date of this Act is governed by the law 
in effect when the certification occurred, and the former law is 
continued in effect for that purpose.
	SECTION 3.  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, 2005.

                                                                              




______________________________    ______________________________
President of the Senate             Speaker of the House
	I hereby certify that S.B. No. 1378 passed the Senate on 
April 14, 2005, by the following vote:  Yeas 31, Nays 0.




______________________________ 
   Secretary of the Senate             
	I hereby certify that S.B. No. 1378 passed the House on 
May 23, 2005, by the following vote:  Yeas 143, Nays 0, two 
present not voting.




______________________________ 
   Chief Clerk of the House            



Approved:


______________________________ 
            Date



______________________________ 
          Governor