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S.B. 45

             1     

TOBACCO SETTLEMENT ACCOUNT

             2     
APPROPRIATION

             3     
2000 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Robert F. Montgomery

             6      AN ACT RELATING TO STATE AFFAIRS IN GENERAL; REQUIRING THAT THE
             7      HOSPITAL PROVIDER ASSESSMENT BE REDUCED TO THE EXTENT TOBACCO
             8      SETTLEMENT MONIES ARE APPROPRIATED FOR THE CHILDREN'S HEALTH
             9      INSURANCE PROGRAM; APPROPRIATING FUNDS FROM THE TOBACCO
             10      SETTLEMENT ACCOUNT FOR FISCAL YEAR 2000-01; AND PROVIDING AN EFFECTIVE
             11      DATE.
             12      This act affects sections of Utah Code Annotated 1953 as follows:
             13      AMENDS:
             14          26-40-103, as last amended by Chapters 21 and 61, Laws of Utah 1999
             15          26-40-111, as enacted by Chapter 360, Laws of Utah 1998
             16          26-40-112, as last amended by Chapter 78, Laws of Utah 1999
             17      Be it enacted by the Legislature of the state of Utah:
             18          Section 1. Section 26-40-103 is amended to read:
             19           26-40-103. Creation and administration of the Utah Children's Health Insurance
             20      Program.
             21          (1) There is created the Utah Children's Health Insurance Program to be administered by
             22      the department in accordance with the provisions of:
             23          (a) this chapter; and
             24          (b) the State Children's Health Insurance Program, 42 U.S.C. Sec. 1397aa et seq.
             25          (2) The department shall:
             26          (a) prepare and submit the state's children's health insurance plan before May 1, 1998, and
             27      any amendments to the federal Department of Health and Human Services in accordance with 42


             28      U.S.C. Sec. 1397ff; and
             29          (b) make rules in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             30      Act regarding:
             31          (i) eligibility requirements consistent with Subsection 26-18-3 (6);
             32          (ii) program benefits;
             33          (iii) the level of coverage for each program benefit;
             34          (iv) cost-sharing requirements for enrollees, which may not:
             35          (A) exceed the guidelines set forth in 42 U.S.C. Sec. 1397ee; or
             36          (B) impose deductible, copayment, or coinsurance requirements on an enrollee for
             37      well-child, well-baby, and immunizations;
             38          (v) the administration of the program; and
             39          (vi) the provider assessment, including:
             40          (A) the factor for the assessment;
             41          (B) the administration, collection, and enforcement of the assessment, including:
             42          (I) auditing a provider's records; and
             43          (II) imposing penalties for failure to pay the assessment as required; and
             44          (C) reducing the amount of the assessment [to the extent funds are deposited into the
             45      Hospital Provider Assessment Account created in Section 26-40-112 as a result of private
             46      contributions to the program] in accordance with Section 26-40-111 .
             47          (3) Before July 1, 2001, the Governor's Office of Planning and Budget shall study the
             48      effectiveness of the department's administration of the program and report any findings to:
             49          (a) the Health and Human Services Interim Committee of the Legislature;
             50          (b) the Health Policy Commission; and
             51          (c) the department.
             52          Section 2. Section 26-40-111 is amended to read:
             53           26-40-111. Provider assessment.
             54          (1) Other than for the imposition of the assessment described in and utilized for the
             55      purposes of the chapter, nothing in this chapter affects the nonprofit or tax exempt status of any
             56      nonprofit charitable, religious, or educational health care provider under 26 U.S.C. Sec. 501(c),
             57      as amended, or other applicable federal law, or under any state law, or any activities of or property
             58      owned by any such provider with respect to exemption from ad valorem property taxes, income


             59      or franchise taxes, sales or use taxes, or any other taxes, fees, or assessments whatever, whether
             60      imposed or sought to be imposed by the state or any political subdivision, county, municipality,
             61      district, authority, or any agency or department thereof.
             62          (2) For providers subject to the assessment imposed by this chapter, and also subject to
             63      the corporate franchise or income tax under Title 59, Chapter 7, Corporate Franchise and Income
             64      Taxes, all assessments paid under this chapter shall be allowed as a deductible expense under Title
             65      59, Chapter 7.
             66          (3) Beginning on July 1, 1998, a uniform, broad-based, quarterly rate of assessment is
             67      imposed on each hospital, hospital-based ambulatory surgical facility, and freestanding ambulatory
             68      surgical facility in accordance with department rule, which assessment:
             69          (a) may not exceed $5,500,000 in the aggregate in any fiscal year; and
             70          (b) shall be reduced [to the extent that funds are deposited into the Hospital Provider
             71      Assessment Account created in Section 26-40-112 as a result of private contributions to the
             72      program. (4) A reduction in assessment that occurs as a result of Subsection (3)(b) shall apply to
             73      as many subsequent fiscal years as is possible based on the total amount of funds deposited into
             74      the restricted account.] each fiscal year by the amount of funds that are:
             75          (i) appropriated to the department to reduce the assessment for that fiscal year; and
             76          (ii) available in the Hospital Provider Assessment Account at the start of the fiscal year
             77      to fund the program.
             78          (4) The department may not impose the assessment in any fiscal year in which the amount
             79      of the assessment has been reduced to zero as a result of Subsection (3)(b).
             80          (5) The department shall forward proceeds from the assessment imposed by this chapter
             81      to the state treasurer for deposit into the Hospital Provider Assessment Account created in Section
             82      26-40-112 .
             83          Section 3. Section 26-40-112 is amended to read:
             84           26-40-112. Hospital Provider Assessment Account.
             85          (1) There is created within the General Fund a restricted account known as the "Hospital
             86      Provider Assessment Account."
             87          (2) The account shall be nonlapsing and consist of:
             88          (a) proceeds from the assessment imposed in accordance with Section 26-40-111 ;
             89          (b) funds transferred from the Medicaid Hospital Provider Temporary Assessment


             90      Account;
             91          (c) private contributions; [and]
             92          (d) interest earned on monies in the account[.]; and
             93          (e) funds that are appropriated to the account from the Tobacco Settlement Account
             94      established in Section 63-97-102 .
             95          (3) Funds in the account shall be appropriated by the Legislature to fund:
             96          (a) the program; and
             97          (b) if funds remain after Subsection (3)(a), the Medicaid program.
             98          (4) No more than $5,500,000 may be appropriated from the account in any fiscal year.
             99          (5) Any funds remaining in the account at the end of a fiscal year shall be used to reduce
             100      the next fiscal year's provider assessment in the manner provided for in Section 26-40-111 .
             101          Section 4. Appropriation.
             102          (1) There is appropriated for fiscal year 2000-01 from the Tobacco Settlement Account
             103      within the General Fund:
             104          (a) $5,500,000 to the Department of Heath for the Children's Health Insurance Program
             105      and the reduction of the provider assessment established in Section 26-40-111 to zero for fiscal
             106      year 2000-01;
             107          (b) $4,100,000 to the Department of Health for tobacco prevention, reduction, and control
             108      programs;
             109          (c) $650,000 to the Administrative Office of the Courts and $4,350,000 to the Department
             110      of Human Services for the statewide expansion of the drug court and tobacco court programs; and
             111          (d) $160,000 to the Department of Corrections, $80,000 to the Board of Pardons and
             112      Parole, and $560,000 to the Department of Human Services for the creation and operation of a
             113      Drug Board Pilot Program for substance abuse offenders in the Ogden and Farmington Regions
             114      of Adult Probation and Parole.
             115          (2) Nothing in this section may be construed as restricting the ability of the Legislature to
             116      appropriate for fiscal year 2000-01:
             117          (a) any amount remaining in the Tobacco Settlement Account following the appropriation
             118      required by Subsection (1); or
             119          (b) any amount anticipated to be received in tobacco settlement monies during fiscal year
             120      2000-01.


             121          Section 5. Effective date.
             122          This act takes effect on July 1, 2000.




Legislative Review Note
    as of 12-13-99 3:10 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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