Misuse of State Money or Property
Payments to Companies That Perform or Assist With Certain Medical Procedures

Limitation on Funding

A state agency may not distribute appropriated funds to any individual or entity that (during the period for which the funds are appropriated):

• Performs certain medical procedures (as specified in the GAA, Article IX, Sec. 6.24) that are not reimbursable under the state’s Medicaid program.
• Is commonly owned, managed or controlled by an entity that performs certain medical procedures (as specified in the GAA, Article IX, Section 6.24) that are not reimbursable under the state’s Medicaid program.
• Is a franchisee or affiliate of an entity that performs certain medical procedures (as specified in the GAA, Article IX, Section 6.24) that are not reimbursable under the state’s Medicaid program.

This GAA provision does not apply to a:

• Hospital (licensed under Health & Safety Code, Chapter 241)
• State hospital
• Teaching hospital
• Residency program accredited for medical education.
  –or–
• State office exempt under Health & Safety Code, Section 254.004(2)

Public money may not (directly or indirectly) be used, granted, paid or distributed to any entity, organization or individual that provides (or facilitates) the provision of a procedure (or treatment) to a child that is prohibited under Texas Government Code, Section 161.702. These entities include:

• Health care providers
• Medical schools
• Hospitals
• Physicians

Logistical Support Prohibited

A state agency may not enter into a taxpayer resource transaction (i.e. logistical support) with a provider or affiliate of a provider that performs certain medical procedures described in the section above. A state agency also may not enter into a taxpayer resource transaction with an entity providing assistance to a provider or affiliate of a provider performing certain medical procedures described in the section above.

This section does not apply to an entity described by Texas Government Code, Section 2273.002 and 2273.003(b).

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