(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:
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(g) Group Two:
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(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 has failed to comply with the requirements of subsection (j) of this section, the council may do one or more of the following:
  (1) instruct the director to provide the hospital district written notice of the alleged failure to comply;
  (2) provide the hospital district with an opportunity to respond;
  (3) require the hospital district to cure the failure to comply to the satisfaction of the council;
  (4) require the hospital district to refund to the council all or a portion of the money received by the hospital district under this section; and
  (5) exercise any other legal remedies available at law.
(o) Money refunded to the council under subsection (n) of this section shall be retained by the council for future allocation to hospital districts under this section.
(p) 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).

Source Note: The provisions of this §16.222 adopted to be effective March 18, 2024, 49 TexReg 1735