HP0752, LD 1016, item 2, 125th Maine State Legislature , Amendment C "A", Filing Number H-649, Sponsored by
‘An Act To Restore the Health Care Provider Tax to 6 Percent’

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Amend the bill by striking out the title and substituting the following:
‘An Act To Restore the Health Care Provider Tax to 6 Percent’
Amend the bill by inserting after the enacting clause and before section 1 the following:
‘Sec. 1. 36 MRSA §2872, sub-§1, ¶C, as amended by PL 2007, c. 539, Pt. X, §1, is further amended to read:
 
C.  For whole or partial facility fiscal years beginning on or after July 1, 2003 and before January 1, 2008, the tax imposed against each residential treatment facility is equal to 6% of its annual gross patient services revenue for the corresponding whole or partial facility fiscal year; ~~and~~
Sec. 2. 36 MRSA §2872, sub-§1, ¶D, as enacted by PL 2007, c. 539, Pt. X, §1, is amended to read:
 
D. ~~Beginning~~For whole or partial facility fiscal years beginning on or after January 1, 2008 ~~for any partial facility fiscal year and for whole facility fiscal years beginning on or after January 1, 2008~~and before October 1, 2011, the tax imposed against each residential treatment facility is equal to 5.5% of its annual gross patient services revenue for the corresponding whole or partial facility fiscal year~~.~~; and
Sec. 3.  36 MRSA §2872, sub-§1, ¶E  is enacted to read:
 
E. Beginning October 1, 2011 for any partial facility fiscal year and for whole facility fiscal years beginning on or after October 1, 2011, the tax imposed against each residential treatment facility is equal to 6% of its annual gross patient services revenue for the corresponding whole or partial facility fiscal year.’
Amend the bill by striking out all of section 4 and inserting the following:
‘Sec. 4. 36 MRSA §2873, sub-§4, as enacted by PL 2001, c. 714, Pt. CC, §3 and affected by §8 and amended by PL 2003, c. 689, Pt. B, §§6 and 7, is further amended to read:
 
4. Application of revenues.   Revenues derived by the tax imposed by this chapter must be credited to a General Fund suspense account. On the last day of each month, the State Controller shall make the following transfers:
 
A.  All revenues received by the assessor during the month pursuant to this chapter from nursing homes net of refunds must be credited to the Nursing Facilities Other Special Revenue funds account in the Department of Health and Human Services. ~~The Commissioner of Health and Human Services is authorized to make revenue transfers from the Nursing Facilities Other Special Revenue funds account to the Medical Care - Payments to Providers Other Special Revenue funds account and the Long Term Care - Human Services Other Special Revenue funds account in amounts not to exceed legislative allocations in any fiscal year~~Beginning October 1, 2011, the revenues received in each fiscal year that result from the increase in the tax rate from 5.5% to 6% pursuant to section 2872, subsection 1, paragraph E must be applied first to reimburse nursing homes for the MaineCare portion of the increased tax expense, and all remaining revenue resulting from the increase must be applied to provide cost-of-living increases to MaineCare reimbursement to nursing homes and to medical and remedial private nonmedical institutions that are reimbursed room and board costs and certain other allowable costs under rules adopted by the Department of Health and Human Services. These rules must use a methodology that provides a cost-of-living increase that ensures that such nursing facilities and medical and remedial private nonmedical institutions receive a share of the revenues through MaineCare reimbursement of allowable costs; and
 
B.  All revenues received by the assessor during the month pursuant to this chapter from residential treatment facilities net of refunds must be credited to the Residential Treatment Facilities Assessment Other Special Revenue funds account in the Department of Health and Human Services. Beginning October 1, 2011, a percentage equal to the State's annual Federal Medical Assistance percentage of the revenues generated by the increase in the tax rate from 5.5% to 6% received by the assessor during the month must be credited to an Other Special Revenue Funds account in the Department of Health and Human Services, Developmental Services Waiver - Supports program and all revenues credited to that account must be applied to providing services to individuals on the waiting list for the community support benefit provided under a federal 1915(c) waiver under the MaineCare Benefits Manual, Chapter II, Section 29. The balance must be credited to an Other Special Revenue Funds account in the Department of Health and Human Services, Medicaid Services - Developmental Services program.
 
Notwithstanding the provisions of Public Law 2007, chapter 240, Part X, section 2, Public Law 2009, chapter 213, Part SSSS, section 1 or any other provision of law, any available balances in the accounts under this subsection may not be transferred between accounts by financial order or otherwise.
Sec. 5. Appropriations and allocations. The following appropriations and allocations are made.
 
HEALTH AND HUMAN SERVICES, DEPARTMENT OF (FORMERLY DHS)
 
Developmental Services Waiver - Supports Z006
 
Initiative: Allocates funds from the increase in the residential treatment facilities assessment to be used for services to individuals on the waiting list for the waiver.

FEDERAL EXPENDITURES FUND | 2011-12 | 2012-13
All Other | $139,230 | $184,225
FEDERAL EXPENDITURES FUND TOTAL | $139,230 | $184,225

OTHER SPECIAL REVENUE FUNDS | 2011-12 | 2012-13
All Other | $80,376 | $106,948
OTHER SPECIAL REVENUE FUNDS TOTAL | $80,376 | $106,948

Medicaid Services - Developmental Services 0705
 
Initiative: Allocates funds for increased costs resulting from the increase in the residential treatment facilities assessment.

FEDERAL EXPENDITURES FUND | 2011-12 | 2012-13
All Other | $80,376 | $106,948
FEDERAL EXPENDITURES FUND TOTAL | $80,376 | $106,948

OTHER SPECIAL REVENUE FUNDS | 2011-12 | 2012-13
All Other | $46,400 | $62,086
OTHER SPECIAL REVENUE FUNDS TOTAL | $46,400 | $62,086

Nursing Facilities 0148
 
Initiative: Allocates funds for increased nursing facility costs resulting from the increase in the nursing facility tax.

FEDERAL EXPENDITURES FUND | 2011-12 | 2012-13
All Other | $1,400,717 | $1,863,793
FEDERAL EXPENDITURES FUND TOTAL | $1,400,717 | $1,863,793

OTHER SPECIAL REVENUE FUNDS | 2011-12 | 2012-13
All Other | $517,514 | $692,470
OTHER SPECIAL REVENUE FUNDS TOTAL | $517,514 | $692,470

Nursing Facilities 0148
 
Initiative: Allocates funds for cost-of-living increases to MaineCare reimbursement to nursing facilities and to medical and remedial private nonmedical institutions that are reimbursed room and board costs.

FEDERAL EXPENDITURES FUND | 2011-12 | 2012-13
All Other | $2,930,636 | $3,881,479
FEDERAL EXPENDITURES FUND TOTAL | $2,930,636 | $3,881,479

OTHER SPECIAL REVENUE FUNDS | 2011-12 | 2012-13
All Other | $1,691,818 | $2,253,307
OTHER SPECIAL REVENUE FUNDS TOTAL | $1,691,818 | $2,253,307

HEALTH AND HUMAN SERVICES, DEPARTMENT OF (FORMERLY DHS) | |
DEPARTMENT TOTALS | 2011-12 | 2012-13
FEDERAL EXPENDITURES FUND | $4,550,959 | $6,036,445
OTHER SPECIAL REVENUE FUNDS | $2,336,108 | $3,114,811
DEPARTMENT TOTAL - ALL FUNDS | $6,887,067 | $9,151,256
 
’
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section number to read consecutively.
 
SUMMARY
This amendment provides an increase in the provider tax rate applicable to residential treatment facilities from 5.5% to 6%, consistent with applicable federal requirements, in addition to the increase provided for nursing homes in the bill. It requires that the rules for the cost-of-living adjustment, to which all revenues related to the incremental increase for nursing homes must be applied, use a methodology that provides a cost-of-living increase that ensures that such nursing facilities and medical and remedial private nonmedical institutions receive a share of the revenues through MaineCare reimbursement of allowable costs. It requires that all revenues generated by the increase in the tax rate applicable to residential treatment facilities be applied to providing services to individuals on the waiting list for the community support benefit waiver under the MaineCare Benefits Manual, Chapter II, Section 29. The amendment also adds an appropriations and allocations section.
FISCAL NOTE REQUIRED
(See attached)

HP0752, Filing Number H-649, LR 920, item 2,First Regular Session - 125th Maine Legislature, page