Proposed Rules Title 34

TITLE 34. PUBLIC FINANCE

PART 1. COMPTROLLER OF PUBLIC ACCOUNTS

CHAPTER 16. COMPTROLLER GRANT PROGRAMS

SUBCHAPTER C. TEXAS OPIOID ABATEMENT FUND PROGRAM

The Comptroller of Public Accounts proposes the repeal of §16.222, concerning references, because this section is no longer needed.

This section, which specifies which statutes apply to the statewide opioid settlement agreement, was included in this subchapter because the statutes relating to the statewide opioid settlement agreement and the statutes relating to infrastructure and broadband funding originally used some of the same section numbers and were contained in subchapters that were both entitled "Subchapter R." However, in 2023, the legislature cleared up this issue by renumbering the statutes relating to infrastructure and broadband funding and placing them in new Subchapter S, while keeping the statutes relating to the statewide opioid settlement agreement in Subchapter R.

Brad Reynolds, Chief Revenue Estimator, has determined that during the first five years that the proposed rule repeal is in effect, the repeal: will not create or eliminate a government program; will not require the creation or elimination of employee positions; will not require an increase or decrease in future legislative appropriations to the agency; will not require an increase or decrease in fees paid to the agency; will not increase or decrease the number of individuals subject to the rules' applicability; and will not positively or adversely affect this state's economy.

Mr. Reynolds also has determined that the proposed rule repeal would have no significant fiscal impact on the state government, units of local government, or individuals. The proposed rule repeal would benefit the public by improving the clarity of the chapter. There would be no anticipated significant economic cost to the public. The proposed rule repeal would have no significant fiscal impact on small businesses or rural communities.

You may submit comments on the proposal to Amanda Lopez, Director, Opioid Abatement Fund Council, P.O. Box 13528 Austin, Texas 78711 or to the email address: OAFC.Public@cpa.texas.gov. The comptroller must receive your comments no later than 30 days from the date of publication of the proposal in the Texas Register.

The repeal is proposed under Government Code, §403.511, which authorizes the comptroller to adopt rules necessary to implement Government Code, Chapter 403, Subchapter R, concerning statewide opioid settlement agreements.

The repeal implements Government Code, Chapter 403, Subchapter R.

§16.222.References.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 15, 2023.

TRD-202304834

Victoria North

General Counsel for Fiscal and Agency Affairs

Comptroller of Public Accounts

Earliest possible date of adoption: January 28, 2024

For further information, please call: (512) 475-2220

34 TAC §16.222

The Comptroller of Public Accounts proposes new §16.222, concerning hospital district allocations.

The new section governs the Texas Opioid Abatement Council's allocation and distribution of money received from statewide opioid settlement agreements to all hospital districts in Texas under Government Code, §403.508(a)(2), as enacted by Senate Bill 1827, 87th Legislature, R.S., 2021.

Subsection (a) requires the council to make periodic distributions of money allocated to hospital districts.

Subsection (b) describes when money will be distributed to hospital districts by the council.

Subsection (c) provides that the total amount of each distribution of money to hospital districts will be determined by the council.

Subsection (d) explains how the initial distribution of money will be allocated to hospital districts.

Subsection (e) describes how subsequent distributions of money will be allocated to hospital districts.

Subsection (f) lists the specific hospital districts that will be distributed money only from the initial distribution by the council and the amount of money each of the listed hospital districts will receive from the initial distribution.

Subsection (g) lists the specific hospital districts that will be distributed money during the initial and subsequent distributions by the council and the percentage that will be used to calculate the distribution to each of the listed hospital districts.

Subsection (h) allows the council to round amounts of money allocated to individual hospital districts down to the nearest whole dollar. It also requires the council to retain any remaining money caused by rounding for future allocation to hospital districts.

Subsection (i) sets forth the requirements for hospital districts to receive a distribution of money from the council.

Subsection (j) requires money received by a hospital district to be used by the hospital district to remediate the opioid crisis, including providing assistance in one or more of the categories described in §16.201(b) of this subchapter (treatment and coordination of care, prevention and public safety; recovery support services; or workforce development and training); or if a court order or settlement agreement requires the money to be used for one or more specific purposes, for a permissible use provided by that court order or settlement agreement.

Subsection (k) allows the council to cancel a distribution of money to a hospital district and retain the money for future allocation to hospital districts if the hospital district does not satisfy the requirements to receive a distribution of money from the council under subsection (i).

Subsection (l) requires a hospital district that receives a distribution of money from the council to submit periodic reports to the council's director to ensure compliance with the permitted uses of the money distributed. It also allows the council's director to determine the frequency, format, and requirements of the reports.

Subsection (m) allows the council to monitor a hospital district that receives money under this section to ensure compliance with the permissible uses of the money distributed.

Subsection (n) allows the council to require a hospital district to refund to the council all or a portion of the money received by the hospital district under this section and to retain the refunded money for future allocation to hospital districts if the council finds that the hospital district that received a distribution of money under this section failed to comply with the requirements of this section.

Subsection (o) provides that, except as otherwise provided in this section, this section and §16.200 of this subchapter are the only provisions in this subchapter that apply to the allocation of money to hospital districts under Government Code, §403.508(a)(2).

Brad Reynolds, Chief Revenue Estimator, has determined that during the first five years that the proposed new rule is in effect, the rule: will not create or eliminate a government program; will not require the creation or elimination of employee positions; will not require an increase or decrease in future legislative appropriations to the agency; will not require an increase or decrease in fees paid to the agency; will not increase or decrease the number of individuals subject to the rule's applicability; and will not positively or adversely affect this state's economy.

Mr. Reynolds also has determined that the proposed new rule would have no significant fiscal impact on the state government, units of local government in the aggregate, or individuals. The proposed new rule would benefit the public by implementing the current statute. There would be no significant anticipated economic cost to the public. The proposed new rule would have no significant fiscal impact on small businesses or rural communities.

The new section is proposed under Government Code, §403.511, which authorizes the comptroller to adopt rules necessary to implement Government Code, Chapter 403, Subchapter R, concerning statewide opioid settlement agreements.

The new section implements Government Code, Chapter 403, Subchapter R.

§16.222.Hospital District Allocations.

(a) The council shall make periodic distributions of money allocated to hospital districts under Government Code, §403.508(a)(2).

(b) The council shall distribute money under subsection (a) of this section when, based on the total amount of money to be distributed, the smallest amount of the money that would be allocated to an individual hospital district equals at least $1,000. Additionally, the council may, at the council's discretion, distribute money under subsection (a) of this section when, based on the total amount of money to be distributed, an individual hospital district would receive less than $1000.

(c) The total amount of each distribution of money under subsection (a) of this section shall be determined by the council.

(d) The initial distribution of money under subsection (a) of this section shall be allocated as follows:

(1) to the hospital districts listed in subsection (f) of this section in the dollar amounts listed in that subsection; and

(2) the remainder to the hospital districts listed in subsection (g) of this section in amounts determined by multiplying the percentages listed in that subsection by the remaining amount to be distributed.

(e) Any subsequent distributions of money under subsection (a) of this section shall be allocated to the hospital districts listed in subsection (g) of this section in amounts determined by multiplying the percentages listed in that subsection by the amount to be distributed.

(f) Group One:

Figure: 34 TAC §16.222(f) (.pdf)

(g) Group Two:

Figure: 34 TAC §16.222(g) (.pdf)

(h) Amounts allocated under subsections (d)(2) and (e) of this section may be rounded down to the nearest whole dollar. Any remaining money caused by rounding shall be retained for future allocation to hospital districts under this section.

(i) Prior to, and as a condition of, receiving a distribution of money under subsection (a) of this section, a hospital district listed in subsection (f) or (g) of this section must, for each distribution:

(1) submit to the director a resolution from the hospital district's governing body that:

(A) designates, by name and title, an authorized official who has the authority to act on behalf of the hospital district in all matters related to the distribution, including the authority to sign all official documents related to the distribution;

(B) affirms that the hospital district will use all money received by the hospital district under this section:

(i) to remediate the opioid crisis, including providing assistance in one or more of the categories described in §16.201(b) of this subchapter; or

(ii) if a court order or settlement agreement requires the money to be used for one or more specific purposes, for a permissible use provided by that court order or settlement agreement; and

(C) affirms that, in the event of loss or misuse of grant funds, the hospital district shall return all funds to the council;

(2) submit to the director in a form acceptable to the director:

(A) the authorized official's title, mailing address, telephone number, and email address;

(B) the hospital district's physical address; and

(C) any other documents or information required by the director, including any documents or information required for the secure transfer of money to the hospital district or required by a court order or settlement agreement that applies to all or a portion of the money being distributed;

(3) if there is a change of authorized official, submit to the director a new resolution from the hospital district's governing body that contains the information required under paragraph (1) of this subsection;

(4) notify the director as soon as practicable of any change in the information provided under paragraph (2) of this subsection;

(5) be in compliance with subsection (j) of this section for any prior distributions; and

(6) be in compliance with the reporting requirements in subsection (l) of this section for any prior distributions.

(j) Money received by a hospital district under this section must be used by the hospital district for the purposes described in subsection (i)(1)(B) of this section.

(k) If a hospital district does not satisfy the requirements to receive a distribution under subsection (i) of this section, the distribution to that hospital district may be cancelled and, if cancelled, the money shall be retained by the council for future allocation to hospital districts under this section.

(l) A hospital district that receives a distribution of money under this section must submit periodic reports to the director to ensure that the hospital district complies with subsection (j) of this section. The frequency, format, and requirements of the reports shall be determined at the discretion of the director.

(m) The council may monitor a hospital district that receives money under this section to ensure that the hospital district complies with subsection (j) of this section.

(n) If the council finds that a hospital district that receives a distribution of money under this section has failed to comply with the requirements of this section, the council may require the hospital district to refund to the council all or a portion of the money received by the hospital district under this section. Money refunded to the council under this subsection shall be retained by the council for future allocation to hospital districts under this section.

(o) Except as otherwise provided in this section, this section and §16.200 of subchapter title are the only provisions in this subchapter that apply to the allocation of money to hospital districts under Government Code, §403.508(a)(2).