Sec. CC-1. 22 MRSA §§3175-A and 3175-B are enacted to read:
§3175-A. Delinquent nursing home taxes to be withheld from Medicaid payments
Whenever the commissioner receives written notice from the State Tax Assessor that a nursing home is delinquent by more than 30 days in making a health care provider tax payment required by Title 36, section 2873, the commissioner shall, upon 10 days' written notice, withhold the outstanding amount of tax, together with any applicable interest and penalties, from the nursing home's Medicaid payments. All amounts withheld by the commissioner pursuant to this section are deemed to be health care provider tax payments by the nursing home and must be transferred within 30 days to the State Tax Assessor, who shall apply the amount in question to the nursing home's tax account.
§3175-B Delinquent residential treatment facility taxes to be withheld from Medicaid payments
Whenever the commissioner receives written notice from the State Tax Assessor that a residential treatment facility is delinquent by more than 30 days in making a health care provider tax payment required by Title 36, section 2873, the commissioner shall, upon 10 days' written notice, withhold the outstanding amount of tax, together with any applicable interest and penalties, from the residential treatment facility's Medicaid payments. All amounts withheld by the commissioner pursuant to this section are deemed to be health care provider tax payments by the residential treatment facility and must be transferred within 30 days to the State Tax Assessor, who shall apply the amount in question to the residential treatment facility's tax account.
Sec. CC-2. 36 MRSA §191, sub-§2, ¶R, as repealed and replaced by PL 1995, c. 625, Pt. A, §47, is amended to read:
R. The disclosure to the Department of Human Services or the Department of Behavioral and Developmental Services of information relating to the administration and collection of the tax imposed by chapter 373;
Sec. CC-3. 36 MRSA c. 373 is enacted to read:
CHAPTER 373
HEALTH CARE PROVIDER TAX
As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.
1. Annual gross patient services revenue. "Annual gross patient services revenue" means gross charges, excluding any grants, donations or research funding.
2. Annual net operating revenue. "Annual net operating revenue" means gross charges less any amounts allowable as bad debts, charity care or payer discounts.
3. Fiscal year. "Fiscal year" means the state fiscal year.
4. Nursing home. "Nursing home" means a facility providing nursing facility services and licensed under Title 22, chapter 405 to provide nursing facility services.
5. Nursing facility services. "Nursing facility services" means nursing care or rehabilitative services provided in a nursing home, by or under the direction of a physician, for the accommodation of convalescents or other persons who are not acutely ill and not in need of inpatient hospital care, but who do require skilled nursing care and related medical services.
6. Residential treatment facility. "Residential treatment facility" means an intermediate care facility for the mentally retarded, or a level I assisted living facility for the mentally retarded, that falls within the definitions provided by the United States Social Security Act, 42 United States Code, Section 1396(d) and that provides services to individuals with developmental disabilities and that is not state-operated. "Residential treatment facility" also means a community-based facility that provides similar services to the developmentally disabled under a waiver granted pursuant to the United States Social Security Act, 42 United States Code, Section 1396n(c) to the extent permitted by federal law and regulations.
7. Taxable revenues. "Taxable revenues" means annual gross patient services revenue in the case of a residential treatment facility and annual net operating revenue in the case of a nursing home.
§2872. Tax imposed; fiscal years beginning 2002
For fiscal years beginning on or after July 1, 2002, in addition to all other fees and taxes assessed or imposed by the Maine Revised Statutes, a tax is imposed annually against each residential treatment facility and nursing home located in the State calculated as follows.
1. Residential treatment facilities. The tax imposed against each residential treatment facility is equal to 6% of its annual gross patient services revenue for the fiscal year.
2. Nursing homes. The tax imposed against each nursing home is equal to 6% of its annual net operating revenue for the fiscal year attributable to the provision of nursing facility services.
The tax imposed by this section is an obligation of the provider pursuant to section 2873 and may not be billed to a patient as a separately stated charge.
§2873. Return and payment of tax; application of revenues
1. Monthly returns required; payment of estimated tax liability. On or before the 15th day of each month, each person subject to the tax imposed by this chapter shall submit to the assessor a return on a form prescribed and furnished by the assessor. Each return must be accompanied by a payment of an amount equal to 1/12 of the person's estimated tax liability for the entire current fiscal year. A person may estimate its tax liability for the current fiscal year by applying the tax rates provided by section 2872 to the most recent fiscal year for which relevant taxable revenues have been finally determined and are no longer open to audit adjustment or correction, provided that the fiscal year in question began no earlier than 3 years prior to the beginning of the current fiscal year. Once a taxpayer has made its first monthly payment for a fiscal year pursuant to this subsection, the monthly amount must remain fixed throughout the fiscal year unless the assessor authorizes a change. If the person's estimated annual tax liability as reported and paid pursuant to this subsection does not equal the tax imposed on that person by section 2872, any adjustments necessary to reconcile the estimated tax with the correct tax amount must be made pursuant to subsection 2.
2. Reconciliation return required. On or before October 15, 2003 and each October 15th thereafter, each person subject in a prior fiscal year or fiscal years to the tax imposed by the chapter shall submit a reconciliation return on a form prescribed and furnished by the assessor. The reconciliation return must account for any adjustments necessary to reconcile the annual tax for a prior fiscal year estimated pursuant to subsection 1 with the person's correct tax liability, and the person must submit with the reconciliation return payment of any amount due for the prior fiscal year or fiscal years. The taxpayer may also claim on the reconciliation return a refund or credit for any overpayment of tax. The determination of amounts due or overpaid is calculated by comparing the tax originally estimated and paid in the prior fiscal year or fiscal years with the tax imposed by section 2872 on taxable revenues actually received, together with any audit adjustments or corrections of which the person has knowledge on or before September 15th immediately preceding the due date of the return. The obligation to file a reconciliation return with respect to a particular fiscal year continues until the relevant taxable revenues for that fiscal year have been finally determined and are no longer open to audit adjustment or correction and the person has reported those revenues on a reconciliation return.
3. Audit period to remain open; accrual of penalties and interest. Notwithstanding any other provision of law, the tax imposed against a person by section 2872 for any fiscal year remains open to audit and further assessment by the assessor until the person's taxable revenues for that fiscal year have been finally determined. Any underestimates of tax liability reported and paid pursuant to subsection 1 are subject to an assessment of interest at the rate provided in section 186 from the date or dates of underpayment until payment is made, unless the estimated tax liability was calculated by applying the tax rates provided by section 2872 to the most recent fiscal year for which relevant taxable revenues have been finally determined, in which case no interest may accrue prior to the date on which the reconciliation return for the year is due. Any amount of tax that is reported on a reconciliation return required by subsection 2 but not paid at the time the reconciliation return is filed is subject to the accrual of interest as provided by section 186, as well as to any applicable provisions of section 187-B, including, without limitation, the penalty provided by section 187-B, subsection 2 for failure to pay a tax.
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 Human Services. The Commissioner of 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; 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 Behavioral and Developmental Services.
Sec. CC-4. Residential Treatment Facilities Assessment Other Special Revenue funds program. There is created in the Department of Behavioral and Developmental Services an Other Special Revenue funds program to be known as the "Residential Treatment Facilities Assessment," which is composed of a portion of the assessment set forth in the Maine Revised Statutes, Title 36, chapter 373. Funds in the Residential Treatment Facilities Assessment may be expended only for behavioral and developmental services and may be expended only upon allocation by the Legislature. Any unexpended funds remaining at the end of each fiscal year may not lapse but must be carried forward to be used for the same purposes.
Sec. CC-5. Appropriations and allocations. The following appropriations and allocations are made.
BEHAVIORAL AND DEVELOPMENTAL SERVICES,
DEPARTMENT OF 14
Residential Treatment Facilities
Assessment (New)
Initiative: Provides for the allocation of funds from revenue generated by the imposition of an assessment on residential treatment facilities for individuals with developmental disabilities.
Other Special Revenue Funds 2002-03
All Other $1,358,000
BEHAVIORAL AND DEVELOPMENTAL SERVICES,
DEPARTMENT OF 14
DEPARTMENT TOTALS 2002-03
OTHER SPECIAL REVENUE FUNDS 1,358,000
__________
DEPARTMENT TOTAL -
ALL FUNDS 1,358,000
SECTION TOTALS 2002-03
OTHER SPECIAL REVENUE FUNDS 1,358,000
__________
SECTION TOTALS - ALL FUNDS $1,358,000
Sec. CC-6. Appropriations and allocations. The following appropriations and allocations are made.
HUMAN SERVICES, DEPARTMENT OF 10A
Medical Care - Payments to Providers 0147
Initiative: Provides for the allocation of funds to increase payments for private duty nursing/personal care; elderly and adults with disabilities waiver; adult day health care; adult family home care; and medical and remedial private, nonmedical institution services.
Other Special Revenue Funds 2002-03
All Other $1,614,000
__________
Total 1,614,000
Federal Expenditures Fund 2002-03
All Other 1,900,000
__________
Total 1,900,000
Nursing Facilities 0148
Initiative: Allocates dedicated revenue from the nursing facility tax in the MaineCare Program for program expenses.
Other Special Revenue Funds 2002-03
All Other 9,500,000
Nursing Facilities 0148
Initiative: Provides for the allocation of funds required to make the payment of a nursing facility net operating revenue assessment an allowable cost under the MaineCare Program.
Other Special Revenue Funds 2002-03
All Other 5,111,000
__________
Total 5,111,000
Federal Expenditures Fund 2002-03
All Other 10,724,459
__________
Total 10,724,459
Nursing Facilities 0148
Initiative: Provides for the allocation of funds to increase recruitment and retention of direct care staff for nursing facilities.
Other Special Revenue Funds 2002-03
All Other 5,447,000
__________
Total 5,447,000
Federal Expenditures Fund 2002-03
All Other 9,821,558
__________
Total 9,821,558
Long Term Care - Human Services 0420
Initiative: Provides for the allocation of funds to increase payments to improve recruitment and retention of direct care staff in the Home Based Care Program for elders and adults with disabilities.
Other Special Revenue Funds 2002-03
All Other 486,000
HUMAN SERVICES, DEPARTMENT OF 10A
DEPARTMENT TOTALS 2002-03
OTHER SPECIAL REVENUE FUNDS 22,158,000
FEDERAL EXPENDITURES FUND 22,446,017
__________
DEPARTMENT TOTALS -
ALL FUNDS 44,604,017
SECTION TOTALS 2002-03
OTHER SPECIAL REVENUE FUNDS 22,158,000
FEDERAL EXPENDITURES FUND 22,446,017
__________
SECTION TOTALS - ALL FUNDS $44,604,017
Sec. CC-7. Rulemaking. The Commissioner of Human Services shall adopt rules necessary for the proper implementation of this Part. Rules adopted pursuant to this section are routine technical rules as defined in the Maine Revised Statutes, Title 5, chapter 375, subchapter 2-A.
Sec. CC-8. Application date; retroactivity. The sections of this Part that enact taxes on residential treatment facilities and nursing homes take effect with regard to each of those classes of facilities when the Commissioner of Human Services notifies the State Tax Assessor that, based on representations from the United States Department of Health and Human Services, the tax imposed by the Maine Revised Statutes, Title 36, section 2872 on that class of facilities is a permissible health care related tax as defined in Title 42, Part 433, Section 68 of the Code of Federal Regulations. Once effective, this Part applies retroactively to July 1, 2002. The first tax returns and payments required by this Part must be made on the first filing date that falls more than 45 days after the certification by the Commissioner of Human Services to the State Tax Assessor or on the first filing date that falls more than 45 days after the effective date of this Part, whichever occurs later. On the same filing date, persons subject to the health care provider tax required by Title 36, chapter 373 must file a return and make payment of all tax amounts for fiscal year 2002-03 that would otherwise have become due since July 1, 2002 had this Part been in effect at that time. If certification by the Commissioner of Human Services to the State Tax Assessor does not occur prior to June 30, 2003, this Part does not take effect.
Sec. CC-9. Effective dates. Section 5 of this Part takes effect when the Commissioner of Human Services notifies the State Tax Assessor that the tax on residential treatment facilities is a permissible health care related tax as specified in section 8 of this Part; and section 6 of this Part takes effect when the Commissioner of Human Services notifies the State Tax Assessor that the tax on nursing homes is a permissible health care related tax as specified in section 8 of this Part.
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