CS/HB 7115 Summary

• Creates section 189.056 establishing capital recovery requirements for tax-supported hospital districts, requiring submission of annual capital recovery reports detailing claims submitted and denials to an approved provider within 90 days after fiscal year end.

• Defines "approved provider" as a business generating at least 85 percent of revenues from denied claims management, in existence for 5+ years, and employing at least 30 certified claims specialists; Department of Financial Services must maintain list of at least five approved providers.

• Hospital districts may levy increased ad valorem tax revenues only if their claim denial rate meets specified thresholds: 10 percent or less for fiscal years 2017-2018 through 2019-2020, and 7 percent or less for years after 2019-2020, or if they demonstrate 33 percent reduction within 3 years and 66 percent reduction within 5 years.

• Prohibits hospital districts from levying increased tax revenues if they fail to timely submit a complete capital recovery report; districts have 15 business days to cure incomplete reports after notification.

• Appropriates $400,000 in recurring funds and $60,000 in nonrecurring funds for fiscal year 2015-2016 to the Department of Financial Services for implementation; takes effect July 1, 2015.