H.B. 331 Enrolled

HOSPITAL TAX AMENDMENTS
1997 GENERAL SESSION
STATE OF UTAH
Sponsor: John L. Valentine
AN ACT RELATING TO HEALTH AND REVENUE AND TAXATION; EXTENDING AND
REDUCING THE MEDICAID HOSPITAL PROVIDER TEMPORARY ASSESSMENT
FOR A ONE-YEAR PERIOD; MODIFYING THE MANNER IN WHICH THE RATE
OF ASSESSMENT MAY BE CALCULATED; MAKING TECHNICAL CHANGES;
AND PROVIDING AN EFFECTIVE DATE.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
26-36-105, as last amended by Chapter 209, Laws of Utah 1995
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 26-36-105 is amended to read:
26-36-105. Assessment, collection, and payment of Medicaid Hospital Provider
Temporary Assessment.
(1) Beginning on May 1, or the effective date of this act, whichever is later, a uniform,
broad based, temporary assessment is imposed on each hospital, hospital-based ambulatory
surgical facility, and freestanding ambulatory surgical facility as follows:
(a) for hospitals, a quarterly rate of assessment times:
(i) the number of adjusted inpatient days for the hospital; or
(ii) another factor adopted by rule by the executive director; and
(b) for freestanding ambulatory surgical facilities, and hospital-based ambulatory surgical
facilities, a quarterly rate of assessment times:
(i) the number of patient encounters for the facility; or
(ii) another factor adopted by rule by the executive director.
(c) The rate of assessment imposed under [this subsection] Subsection (1)(b) shall not
exceed the equivalent of $1 per patient encounter.
(2) The quarterly rate of assessment imposed by Subsection (1) shall be determined as

follows:
(a) The executive director shall on a quarterly basis set an assessment rate that will generate
revenues for fiscal years 1995-96 [and], 1996-97, and 1997-98 in an amount not to exceed
[$9,000,000] $6,500,000 in each fiscal year.
(b) When setting the rate of assessment, the executive director shall consult with
representatives of health care providers, including hospitals and other informed persons. The
quarterly adjustment shall be such that within the restrictions of Subsection (2)(a), the total state
funding for the Medicaid program shall remain substantially constant after adjustments for inflation,
and increases in eligibility rolls or changes in benefits or services, as provided by law. For purposes
of this section, the funding from the General Fund and from any restricted accounts created by this
act or by Title 26, Chapter 35, Nursing Facility Assessment Act or any other appropriations from
state funds for Medicaid services shall not be less than the amount funded by the state for Medicaid
services for fiscal year ending June 30, 1993.
(3) (a) The assessment imposed by this act is due and payable on a quarterly basis on or
before the last day of the month next succeeding each quarterly period. The first quarterly period for
this act shall end on June 30, 1993.
(b) The collecting agent for the assessment shall be the department which is vested with the
administration and enforcement of this act, including the right to audit records of a hospital or
ambulatory surgical facility related to inpatient days and patient encounters as specified in Section
26-36-106.
(c) The department shall forward proceeds from the assessment imposed by this act to the
state treasurer for deposit into a restricted account of the General Fund known as the "Medicaid
Hospital Provider Temporary Assessment Account" created in Section 26-36-107.
Section 2. Effective date.
This act takes effect on July 1, 1997.

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