(a) The executive commissioner shall adopt rules providing for:
(1) a standard definition of “uncompensated hospital care”;
(2) a methodology to be used by hospitals in this state to compute the cost of that care that incorporates a standard set of adjustments to a hospital’s initial computation of the cost of uncompensated hospital care that account for all funding streams that:
(A) are not patient-specific; and
(B) are used to offset the hospital’s initially computed amount of uncompensated care; and
(3) procedures to be used by those hospitals to report the cost of that care to the commission and to analyze that cost.
(b) The rules adopted by the executive commissioner under Subsection (a)(3) may provide for procedures by which the commission may periodically verify the completeness and accuracy of the information reported by hospitals.

(c) The commission shall notify the attorney general of a hospital’s failure to report the cost of uncompensated care on or before the date the report was due in accordance with rules adopted under Subsection (a)(3). On receipt of the notice, the attorney general shall impose an administrative penalty on the hospital in the amount of $1,000 for each day after the date the report was due that the hospital has not submitted the report, not to exceed $10,000.
(d) If the commission determines through the procedures adopted under Subsection (b) that a hospital submitted a report with incomplete or inaccurate information, the commission shall notify the hospital of the specific information the hospital must submit and prescribe a date by which the hospital must provide that information. If the hospital fails to submit the specified information on or before the date prescribed by the commission, the commission shall notify the attorney general of that failure. On receipt of the notice, the attorney general shall impose an administrative penalty on the hospital in an amount not to exceed $10,000. In determining the amount of the penalty to be imposed, the attorney general shall consider:
(1) the seriousness of the violation;
(2) whether the hospital had previously committed a violation; and
(3) the amount necessary to deter the hospital from committing future violations.
(e) A report by the commission to the attorney general under Subsection (c) or (d) must state the facts on which the commission based its determination that the hospital failed to submit a report or failed to completely and accurately report information, as applicable.
(f) The attorney general shall give written notice of the commission’s report to the hospital alleged to have failed to comply with a requirement. The notice must include a brief summary of the alleged violation, a statement of the amount of the administrative penalty to be imposed, and a statement of the hospital’s right to a hearing on the alleged violation, the amount of the penalty, or both.
(g) Not later than the 20th day after the date the notice is sent under Subsection (f), the hospital must make a written request for a hearing or remit the amount of the administrative penalty to the attorney general. Failure to timely request a hearing or remit the amount of the administrative penalty results in a waiver of the right to a hearing under this section. If the hospital timely requests a hearing, the attorney general shall conduct the hearing in accordance with Chapter 2001, Government Code. If the hearing results in a finding that a violation has occurred, the attorney general shall:
(1) provide to the hospital written notice of:
(A) the findings established at the hearing; and
(B) the amount of the penalty; and
(2) enter an order requiring the hospital to pay the amount of the penalty.
(h) Not later than the 30th day after the date the hospital receives the order entered by the attorney general under Subsection (g), the hospital shall:
(1) pay the amount of the administrative penalty;
(2) remit the amount of the penalty to the attorney general for deposit in an escrow account and file a petition for judicial review contesting the occurrence of the violation, the amount of the penalty, or both; or
(3) without paying the amount of the penalty, file a petition for judicial review contesting the occurrence of the violation, the amount of the penalty, or both and file with the court a sworn affidavit stating that the hospital is financially unable to pay the amount of the penalty.
(i) The attorney general’s order is subject to judicial review as a contested case under Chapter 2001, Government Code.
(j) If the hospital paid the penalty and on review the court does not sustain the occurrence of the violation or finds that the amount of the administrative penalty should be reduced, the attorney general shall remit the appropriate amount to the hospital not later than the 30th day after the date the court’s judgment becomes final.
(k) If the court sustains the occurrence of the violation:
(1) the court:
(A) shall order the hospital to pay the amount of the administrative penalty; and
(B) may award to the attorney general the attorney’s fees and court costs incurred by the attorney general in defending the action; and
(2) the attorney general shall remit the amount of the penalty to the comptroller for deposit in the general revenue fund.
(l) If the hospital does not pay the amount of the administrative penalty after the attorney general’s order becomes final for all purposes, the attorney general may enforce the penalty as provided by law for legal judgments.

Text of section effective until April 01, 2025