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S.B. 267

             1     

REPEAL OF HOSPITAL PROVIDERS

             2     
ASSESSMENT

             3     
2000 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Howard C. Nielson

             6      AN ACT RELATING TO HEALTH; REPEALING THE HOSPITAL PROVIDER
             7      ASSESSMENT; ANNUALLY APPROPRIATING $5,500,000 FROM THE TOBACCO
             8      SETTLEMENT ACCOUNT FOR THE CHILDREN'S HEALTH INSURANCE PROGRAM;
             9      AND PROVIDING AN EFFECTIVE DATE.
             10      This act affects sections of Utah Code Annotated 1953 as follows:
             11      AMENDS:
             12          26-40-102, as enacted by Chapter 360, Laws of Utah 1998
             13          26-40-103, as last amended by Chapters 21 and 61, Laws of Utah 1999
             14          63-97-102, as enacted by Chapter 78, Laws of Utah 1999
             15      REPEALS:
             16          26-40-111, as enacted by Chapter 360, Laws of Utah 1998
             17          26-40-112, as last amended by Chapter 78, Laws of Utah 1999
             18          26-40-113, as enacted by Chapter 360, Laws of Utah 1998
             19          26-40-114, as enacted by Chapter 360, Laws of Utah 1998
             20      Be it enacted by the Legislature of the state of Utah:
             21          Section 1. Section 26-40-102 is amended to read:
             22           26-40-102. Definitions.
             23          As used in this chapter:
             24          [(1) "Assessment" means the hospital provider assessment established in Section
             25      26-40-111 .]
             26          [(2)] (1) "Child" means a person who is under 19 years of age.
             27          [(3)] (2) "Eligible child" means a child who qualifies for enrollment in the program as


             28      provided in Section 26-40-105 .
             29          [(4)] (3) "Enrollee" means any child enrolled in the program.
             30          [(5) "Freestanding ambulatory surgical facility" means an urban or rural nonhospital-based
             31      or nonhospital-affiliated licensed facility, as defined in Section 26-21-2 , as an ambulatory surgical
             32      facility, with an organized professional staff that provides surgical services to patients who do not
             33      require an inpatient bed.]
             34          [(6) (a) "Hospital" means any general acute hospital, as defined in Section 26-21-2 ,
             35      operating in this state.]
             36          [(b) "Hospital" does not include:]
             37          [(i) a residential care or treatment facility, as defined in Subsections 62A-2-101 (16), (17),
             38      and (19);]
             39          [(ii) the Utah State Hospital;]
             40          [(iii) any rural hospital that operates outside of a metropolitan statistical area, a
             41      metropolitan area, or an urbanized area as designated by the U.S. Bureau of Census; or]
             42          [(iv) any specialty hospital operating in this state, as defined in Section 26-21-2 , that is
             43      engaged exclusively in rendering psychiatric or other mental health treatment.]
             44          [(7) "Hospital-based ambulatory surgical facility" means an urban or rural on-hospital
             45      campus or hospital-affiliated licensed facility with an organized professional staff that provides
             46      surgical services to patients who do not require an inpatient bed.]
             47          [(8)] (4) "Plan" means the department's plan submitted to the United States Department
             48      of Health and Human Services pursuant to 42 U.S.C. Sec. 1397ff.
             49          [(9)] (5) "Program" means the Utah Children's Health Insurance Program created by this
             50      chapter.
             51          Section 2. Section 26-40-103 is amended to read:
             52           26-40-103. Creation and administration of the Utah Children's Health Insurance
             53      Program.
             54          (1) There is created the Utah Children's Health Insurance Program to be administered by
             55      the department in accordance with the provisions of:
             56          (a) this chapter; and
             57          (b) the State Children's Health Insurance Program, 42 U.S.C. Sec. 1397aa et seq.
             58          (2) The department shall:


             59          (a) prepare and submit the state's children's health insurance plan before May 1, 1998, and
             60      any amendments to the federal Department of Health and Human Services in accordance with 42
             61      U.S.C. Sec. 1397ff; and
             62          (b) make rules in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             63      Act regarding:
             64          (i) eligibility requirements consistent with Subsection 26-18-3 (6);
             65          (ii) program benefits;
             66          (iii) the level of coverage for each program benefit;
             67          (iv) cost-sharing requirements for enrollees, which may not:
             68          (A) exceed the guidelines set forth in 42 U.S.C. Sec. 1397ee; or
             69          (B) impose deductible, copayment, or coinsurance requirements on an enrollee for
             70      well-child, well-baby, and immunizations; and
             71          (v) the administration of the program[; and].
             72          [(vi) the provider assessment, including:]
             73          [(A) the factor for the assessment;]
             74          [(B) the administration, collection, and enforcement of the assessment, including:]
             75          [(I) auditing a provider's records; and]
             76          [(II) imposing penalties for failure to pay the assessment as required; and]
             77          [(C) reducing the amount of the assessment to the extent funds are deposited into the
             78      Hospital Provider Assessment Account created in Section 26-40-112 as a result of private
             79      contributions to the program.]
             80          (3) Before July 1, 2001, the Governor's Office of Planning and Budget shall study the
             81      effectiveness of the department's administration of the program and report any findings to:
             82          (a) the Health and Human Services Interim Committee of the Legislature;
             83          (b) the Health Policy Commission; and
             84          (c) the department.
             85          Section 3. Section 63-97-102 is amended to read:
             86           63-97-102. Creation of restricted account.
             87          (1) There is created within the General Fund a restricted account known as the Tobacco
             88      Settlement Account.
             89          (2) The account shall consist of all funds received by the state that are related to the


             90      settlement agreement that the state entered into with leading tobacco manufacturers on November
             91      23, 1998.
             92          (3) Funds in the account [may only be used] shall be used as follows:
             93          (a) the first $5,500,000 to the Department of Health for the Children's Health Insurance
             94      Program created in Section 26-40-103 ; and
             95          (b) the remaining funds as directed by the Legislature through appropriation.
             96          Section 4. Repealer.
             97          This act repeals:
             98          Section 26-40-111, Provider assessment.
             99          Section 26-40-112, Hospital Provider Assessment Account.
             100          Section 26-40-113, Intergovernmental transfers.
             101          Section 26-40-114, Repeal of assessment.
             102          Section 5. Appropriation.
             103          There is appropriated $5,500,000 from the Tobacco Settlement Account within the General
             104      Fund for fiscal year 2000-01 to the Department of Health for the Children's Health Insurance
             105      Program created in Section 26-40-103 .
             106          Section 6. Effective date.
             107          This act takes effect on July 1, 2000.




Legislative Review Note
    as of 1-31-00 6:08 PM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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