H.B. 331

1

HOSPITAL TAX AMENDMENTS
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: John L. Valentine
5 AN ACT RELATING TO HEALTH AND REVENUE AND TAXATION; EXTENDING THE
6 MEDICAID HOSPITAL PROVIDER TEMPORARY ASSESSMENT FOR A ONE-YEAR
7 PERIOD; MAKING TECHNICAL CHANGES; AND PROVIDING AN EFFECTIVE DATE.
8 This act affects sections of Utah Code Annotated 1953 as follows:
9 AMENDS:
10 26-36-105, as last amended by Chapter 209, Laws of Utah 1995
11 Be it enacted by the Legislature of the state of Utah:
12 Section 1. Section 26-36-105 is amended to read:
13 26-36-105. Assessment, collection, and payment of Medicaid Hospital Provider
14 Temporary Assessment.
15 (1) Beginning on May 1, or the effective date of this act, whichever is later, a uniform,
16 broad based, temporary assessment is imposed on each hospital, hospital-based ambulatory
17 surgical facility, and freestanding ambulatory surgical facility as follows:
18 (a) for hospitals, a quarterly rate of assessment times h :
18a (i) h the number of adjusted inpatient days
19 for the hospital; h OR
19a (ii) ANOTHER FACTOR ADOPTED BY RULE BY THE EXECUTIVE DIRECTOR; h and
20 (b) for freestanding ambulatory surgical facilities, and hospital-based ambulatory surgical
21 facilities, a quarterly rate of assessment times h :
21a (i) h the number of patient encounters for the facility h ; OR
21b (ii) ANOTHER FACTOR ADOPTED BY RULE BY THE EXECUTIVE DIRECTOR h .

lilac-February 26, 1997

22 h (c) h The rate of assessment imposed under h [this subsection ] SUBSECTION (1)(b) h
22a shall not exceed h THE EQUIVALENT OF h $1 per patient encounter.
23 (2) The quarterly rate of assessment imposed by Subsection (1) shall be determined as
24 follows:
25 (a) The executive director shall on a quarterly basis set an assessment rate that will
26 generate revenues for fiscal years 1995-96 [and], 1996-97, and 1997-98 in an amount not to exceed
27 h [$9,000,000 ] $6,500,000 h in each fiscal year.



















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lilac-February 26, 1997

H.B. 331

02-06-97 1:39 PM

1 (b) When setting the rate of assessment, the executive director shall consult with
2 representatives of health care providers, including hospitals and other informed persons. The
3 quarterly adjustment shall be such that within the restrictions of Subsection (2)(a), the total state
4 funding for the Medicaid program shall remain substantially constant after adjustments for
5 inflation, and increases in eligibility rolls or changes in benefits or services, as provided by law.
6 For purposes of this section, the funding from the General Fund and from any restricted accounts
7 created by this act or by Title 26, Chapter 35, Nursing Facility Assessment Act or any other
8 appropriations from state funds for Medicaid services shall not be less than the amount funded by
9 the state for Medicaid services for fiscal year ending June 30, 1993.
10 (3) (a) The assessment imposed by this act is due and payable on a quarterly basis on or
11 before the last day of the month next succeeding each quarterly period. The first quarterly period
12 for this act shall end on June 30, 1993.
13 (b) The collecting agent for the assessment shall be the department which is vested with
14 the administration and enforcement of this act, including the right to audit records of a hospital or
15 ambulatory surgical facility related to inpatient days and patient encounters as specified in Section
16 26-36-106.
17 (c) The department shall forward proceeds from the assessment imposed by this act to the
18 state treasurer for deposit into a restricted account of the General Fund known as the "Medicaid
19 Hospital Provider Temporary Assessment Account" created in Section 26-36-107.
20 Section 2. Effective date.
21 This act takes effect on July 1, 1997.




Legislative Review Note
as of 2-5-97 12:27 PM

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

Office of Legislative Research and General Counsel

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