SLS 13RS-304 ENGROSSED
Page 1 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2013
SENATE BILL NO. 44
BY SENATOR NEVERS
HOSPITALS. Authorizes the city of Bogalusa to levy a provider fee on the operation of
hospitals within the city that may provide to DHH funding for state expenses for the
Medicaid program within the city. (gov sig)
AN ACT1
To enact R.S. 33:2740.18, relative to the city of Bogalusa; to authorize the city to levy a2
provider fee upon hospitals in the city and for use and distribution of the proceeds;3
and to provide for related matters.4
Notice of intention to introduce this Act has been published.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 33:2740.18 is hereby enacted to read as follows:7
ยง2740.18. City of Bogalusa provider fee; fund8
A. As used in this Section the following words and terms have the9
meaning ascribed to them in this Subsection, unless the context clearly indicates10
a different meaning:11
(a) "City" means the city of Bogalusa.12
(b) "Collector" means the agency of the city designated in the ordinance13
levying the provider fee provided for in this Section as the collector of the14
provider fee or another entity of state or local government which contractually15
agrees to collect such fee.16
(c) "Department" means the Department of Health and Hospitals.17 SB NO. 44
SLS 13RS-304 ENGROSSED
Page 2 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(d) "Fund" means the Bogalusa Health Services Fund.1
(e) "Hospital" means any hospital licensed by the state under R.S.2
40:2100 et seq., which is owned or operated by any entity except the state or a3
department of state government.4
(f) "Medicaid program" means the medical assistance program as5
established in Title XIX of the Social Security Act and as administered in the6
state of Louisiana by the Department of Health and Hospitals.7
(g) "Provider fee" or "fee" means the provider fee imposed by the city8
as provided for in this Section and all interest, penalty, or other charges related9
to such fee.10
(h) "Secretary" means the secretary of the Department of Health and11
Hospitals.12
(i) "State" means the state of Louisiana.13
B. Pursuant to the authority provided to the legislature by Article VI,14
Section 30(A) of the Constitution of Louisiana, in addition to all other taxes and15
fees, the governing authority of the city of Bogalusa may levy and collect a16
provider fee on the operation of all hospitals within the city as provided for in17
this Section. The fee so levied shall be imposed by an ordinance of the governing18
authority of the city of Bogalusa.19
C. In addition to any other powers and authority, the city may:20
(1) Enter into a cooperative endeavor agreement with the Department21
of Health and Hospitals in which the department agrees to undertake or22
continue programs or incur expenses for the performance of services under the23
federal Medicaid program within the city in an amount satisfactory to the24
governing authority of the city, limited to those programs and expenses for25
which federal financial participation under Title XIX of the Social Security Act26
is available.27
(2) Levy and collect within the city a provider fee on the operation of all28
hospitals within the city as provided for in this Section.29 SB NO. 44
SLS 13RS-304 ENGROSSED
Page 3 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
D.(1)(a) The amount of the provider fee to be collected for the operation1
of a hospital within the city shall be equal to the gross receipts from the2
operation of the hospital multiplied by a rate that shall not exceed six percent,3
or at such maximum rate that the city determines is authorized by federal law4
or regulations governing provider fee or other tax proceeds which may be used5
as a match for federal Medicaid program assistance. The fee shall be paid in6
equal quarterly installments due on the twentieth day of the third month of each7
calendar quarter.8
(b) The provider fee shall be imposed and collected uniformly9
throughout the city.10
(c) Any such provider fee collected shall be considered an allowable cost11
for purposes of Medicare and Medicaid cost reporting and reimbursement.12
(2) Except where inapplicable, the procedure established by the Uniform13
Local Sales Tax Code shall be followed in the imposition, collection, and14
enforcement of the provider fee, and procedural details necessary to be15
established to supplement the provisions of those Sections and to make such16
provisions applicable to the provider fee authorized in this Section shall be fixed17
in the ordinance adopted by the governing authority of the city.18
(3) The ordinance may provide for a contract with the designated sales19
tax collector of Washington Parish for administration and collection of the20
provider fee, or with such other agency of the city or state as the governing21
authority of the city deems appropriate and necessary, with a reasonable22
amount to be paid to such collector for such administration and collection.23
E. After paying the necessary and reasonable expenses of collecting and24
administering the provider fee, the remainder of the provider fee may be used25
as provided for in Subsection F of this Section, or may be used for the purposes26
set forth in the ordinance adopted by the governing authority of the city, or may27
be used for both.28
F.(1)(a) The governing authority of the city of Bogalusa may provide that29 SB NO. 44
SLS 13RS-304 ENGROSSED
Page 4 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
the city or the collector of the fee as provided for in this Section may forward1
all or a portion of the provider fee, and interest, penalty, or other charges2
related to such fee, to the treasurer of the state to be used solely as provided for3
in this Subsection.4
(b) After compliance with the requirements of Article VII, Section 9(B)5
of the Constitution of Louisiana relative to the Bond Security and Redemption6
Fund and prior to any money being placed into the general fund or any other7
fund, the amount received by the treasurer shall be deposited immediately upon8
receipt in the state treasury and shall be credited by the treasurer to a special9
fund hereby created in the state treasury to be known as the Bogalusa Health10
Services Fund. The money in the fund shall be appropriated by the legislature11
to be used solely as provided for in this Subsection.12
(c)(i) The money in the fund shall be invested by the treasurer in the13
same manner as money in the state general fund and interest earned on the14
investment of the money shall be credited to the fund after compliance with the15
requirements of Article VII, Section 9(B) relative to the Bond Security and16
Redemption Fund.17
(ii) All unexpended and unencumbered money in the fund at the end of18
the year shall remain in the fund.19
(d) The money in the Bogalusa Health Services Fund shall be20
appropriated by the legislature only to the Department of Health and Hospitals21
to be used solely for state expenses for the Medicaid program within the city of22
Bogalusa as provided for in the cooperative endeavor agreement between the23
department and the city, limited to those programs and expenses for which24
federal financial participation under Title XIX of the Social Security Act is25
available.26
G.(1)(a) No hospital subject to the provider fee provided for in this27
Section shall pass on the cost of the provider fee or include the provider fee as28
an itemized and separately listed amount on any statement sent to any patient,29 SB NO. 44
SLS 13RS-304 ENGROSSED
Page 5 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
responsible party, insurer, or self-insured employer program. If such a violation1
occurs, it shall be considered a violation of hospital minimum standards by the2
Department of Health and Hospitals. If any such party has reason to believe3
that the provider fee has been passed on to him, or an attempt was made to do4
so, he may submit in writing to the collector a request for an investigation along5
with evidence that the fee has been passed on or that an attempt was made to6
pass on the fee. The collector shall have an affirmative duty to protect such7
parties from any violation of this Subsection.8
(b) Upon receipt of a written request for an investigation by an affected9
party, the collector shall conduct a full investigation in a timely manner. Upon10
completion of the investigation, the collector shall conduct a hearing in the same11
manner as such hearings are provided for in the provisions of the12
Administrative Procedure Act if the collector believes sufficient cause has been13
shown to warrant such hearing. If the collector declines to conduct a hearing,14
the collector shall explain in writing to the requesting party the reasons for not15
further acting upon the complaint.16
(c) Upon any finding by the collector of a violation of this Subsection, the17
collector shall order full restitution to the affected party, including judicial18
interest computed from the time that the violation occurred until payment of19
the restitution. Furthermore, the collector shall forward the collector's findings20
to the Department of Health and Hospitals, which shall conduct a hearing in the21
matter to determine the sanctions applicable thereto, which may include22
suspension or revocation of the violating hospital's license.23
(2) Any bill or statement sent to a patient, responsible party, insurer, or24
self-insured employer program after the initial effective date of this Subsection25
shall contain a statement that, "This bill does not contain any cost of the26
provider fee levied by the city of Bogalusa".27
Section 2. In the event of a judgment by a court of competent jurisdiction that the28
imposition of the provider fee in this Act is invalid or illegal because it lacks any statutory29 SB NO. 44
SLS 13RS-304 ENGROSSED
Page 6 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
or constitutional requirement for its lawful levy and collection, the court shall provide in its1
judgment that such provider fee may be levied and collected by the city of Bogalusa after2
the city fulfills such statutory or constitutional requirement.3
Section 3. This Act shall become effective upon signature by the governor or, if not4
signed by the governor, upon expiration of the time for bills to become law without signature5
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If6
vetoed by the governor and subsequently approved by the legislature, this Act shall become7
effective on the day following such approval.8
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Nevers (SB 44)
Proposed law authorizes the governing authority of the city of Bogalusa to levy a provider
fee on the operation of all hospitals within the city.
Proposed law specifically authorizes the city to:
(1)Enter into a cooperative endeavor agreement with the Department of Health and
Hospitals (DHH) in which the department agrees to undertake or continue programs
or incur expenses for the performance of services under the federal Medicaid
program within the city in an amount satisfactory to the governing authority of the
city, limited to those programs and expenses for which a federal match under Title
XIX of the Social Security Act is available.
(2)Levy and collect within the city a provider fee on the operation of all hospitals within
the city. "Hospital" is defined as any hospital licensed by the state under R.S.
40:2100 et seq., which is owned or operated by any entity except the state or a
department of state government.
Proposed law requires the provider fee to be equal to the gross receipts from the operation
of the hospital multiplied by a rate that cannot exceed 6%, or at such maximum provider fee
rate that the city determines is authorized by federal law or regulations governing provider
fee proceeds which may be used as a match for federal Medicaid program assistance.
Proposed law, after the necessary and reasonable expenses of collecting and administering
the provider fee are paid, authorizes the remainder of the provider fee to be used by DHH
as provided below, to be used for the purposes set forth in the ordinance adopted by the
governing authority of the city, or to be used for both.
Authorizes the governing authority of the city to provide that the city or the collector of the
fee may forward all or a portion of the provider fee, and interest, penalty, or other charges
related to such fee, to the treasurer of the state to be used solely as follows provided for in
proposed law.
The treasurer is required to deposit the proceeds forwarded in the Bogalusa Health Services
Fund, a special fund created by the proposed law in the state treasury. The money in the fund
must be appropriated by the legislature only to DHH to be used solely for state expenses for SB NO. 44
SLS 13RS-304 ENGROSSED
Page 7 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
the Medicaid program within the city as provided for in the cooperative endeavor agreement
between the department and the city, limited to those programs and expenses for which a
federal match under Title XIX of the Social Security Act is available.
The money in the fund must be invested by the treasurer in the same manner as money in the
state general fund and interest earned on the investment of the money is credited to the fund.
All unexpended and unencumbered money in the fund at the end of the year must remain in
the fund.
Proposed law provides that the fee is to be paid in equal quarterly installments due on the
20
th
day of the 3
rd
month of each calendar quarter. The provider fee must be considered an
allowable cost for purposes of Medicare and Medicaid cost reporting and reimbursement.
Requires the procedure established by the Uniform Local Sales Tax Code to be followed in
the imposition, collection, and enforcement of the provider fee, except where inapplicable,
and procedural details necessary to be established to supplement the provisions of the code
and to make such provisions applicable to the provider are to be fixed in the ordinance
adopted by the city.
The ordinance may also provide for a contract with the designated sales tax collector of
Washington Parish for administration and collection of the provider fee, or with such other
agency of the city or state as the governing authority of the city deems appropriate and
necessary, with a reasonable amount to be paid to the collector.
Proposed law prohibits a hospital subject to the provider fee from passing on the cost of the
provider fee or including it as an itemized and separately listed amount on any statement sent
to any patient, responsible party, insurer, or self-insured employer program. If such a
violation occurs, it must be considered a violation of hospital minimum standards by DHH.
If any such party has reason to believe that the provider fee has been passed on to him, or
an attempt was made to do so, he may submit in writing to the collector a request for an
investigation along with evidence. The collector has an "affirmative duty" to protect the
parties against any such violation.
Upon receipt of a written request for an investigation, the collector must conduct a full
investigation in a timely manner and conduct a hearing in the same manner as such hearings
are provided for in the provisions of the APA if the collector believes sufficient cause has
been shown to warrant such hearing. If the collector declines to conduct a hearing, it must
explain in writing to the requesting party its reasons for not further acting upon the
complaint.
Upon any finding by the collector of a violation, the collector must order full restitution to
the affected party, including judicial interest computed from the time that the violation
occurred until payment of the restitution. Furthermore, the collector must forward his
findings to DHH, which is required to conduct a hearing to determine the sanctions
applicable thereto, which may include suspension or revocation of the violating hospital's
license.
Requires any bill or statement sent to contain a statement that, "This bill does not contain
any cost of the provider fee levied by the city of Bogalusa".
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 33:2740.18)