2017 -- H 5429

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LC001245

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO TAXATION -- NURSING FACILITY PROVIDER ASSESSMENT ACT

     Introduced By: Representatives Winfield, Fogarty, Ucci, Corvese, and Costantino

     Date Introduced: February 08, 2017

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-51-3 of the General Laws in Chapter 44-51 entitled "Nursing

Facility Provider Assessment Act" is hereby amended to read as follows:

     44-51-3. Imposition of assessment -- Nursing facilities.

     (a) For purposes of this section, a "nursing facility" means a person or governmental unit

licensed in accordance with chapter 17 of title 23 to establish, maintain, and operate a nursing

facility.

     (b) An assessment is imposed upon the gross patient revenue received by every nursing

facility in each month beginning January 1, 2008, at a rate of five and one-half percent (5.5%) for

services provided on or after January 1, 2008. Every provider shall pay the monthly assessment

no later than the twenty-fifth (25th) day of each month following the month of receipt of gross

patient revenue.

     (c) The assessment imposed by this section shall be repealed on the effective date of the

repeal or a restricted amendment of those provisions of the Medicaid Voluntary Contribution and

Provider-Specific Tax Amendments of 1991 (P.L. 102-234) that permit federal financial

participation to match state funds generated by taxes.

     (d) If, after applying the applicable federal law and/or rules, regulations, or standards

relating to health care providers, the tax administrator determines that the assessment rate

established in subsection (b) of this section exceeds the maximum rate of assessment that federal

law will allow without reduction in federal financial participation, then the tax administrator is

directed to reduce the assessment to a rate equal to the maximum rate which the federal law will

allow without reduction in federal participation. Provided, however, that the authority of the tax

administrator to lower the assessment rate established in subsection (b) of this section shall be

limited solely to such determination.

     (e) In order that the tax administrator may properly carry out his/her responsibilities

under this section, the director of the department of human services shall notify the tax

administrator of any damages in federal law and/or any rules, regulations, or standards which

affect any rates for health care provider assessments.

     (f) Notwithstanding the provisions of this section, any assessment imposed and payment

required pursuant to subsection (b) of this section shall be suspended during any period of time

that the department of human services is unable to distribute federal or state funds due and owing

to the nursing facility provider due to any inability to make distribution as a result of a

malfunction of the computer system or computer network of the department of human services

for a period in excess of thirty (30) days.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- NURSING FACILITY PROVIDER ASSESSMENT ACT

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     This act would suspend any assessment imposed and tax payment required by a nursing

facility provider during any failure of the department of human services to distribute federal or

state funds to the facility resulting from a malfunction of its computer system or computer

network for a period in excess of thirty (30) days.

     This act would take effect upon passage.

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