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Regular Session, 2013 ENROLLED
SENATE BILL NO. 44
BY SENATOR NEVERS
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, subject to voter approval; to provide for the3
use and distribution of fee proceeds; 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
(1) "City" means the city of Bogalusa.12
(2) "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
(3) "Department" means the Department of Health and Hospitals.17
(4) "Fund" means the Bogalusa Health Services Fund.18
(5) "Hospital" means any hospital licensed by the state under R.S.19
40:2100 et seq., which is owned or operated by any entity except the state or a20
department of state government.21
(6) "Medicaid program" means the medical assistance program as22
established in Title XIX of the Social Security Act and as administered in the23
ACT No. 222 SB NO. 44 ENROLLED
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state of Louisiana by the Department of Health and Hospitals.1
(7) "Provider fee" or "fee" means the provider fee imposed by the city2
as provided for in this Section and all interest, penalties, or other charges3
related to such fee.4
(8) "Secretary" means the secretary of the Department of Health and5
Hospitals.6
(9) "State" means the state of Louisiana.7
B. Pursuant to the authority provided to the legislature by Article VI,8
Section 30(A) of the Constitution of Louisiana, in addition to all other taxes and9
fees, the governing authority of the city of Bogalusa may levy and collect a10
provider fee on the operation of all hospitals within the city as provided for in11
this Section. The fee so levied shall be imposed by an ordinance of the governing12
authority of the city of Bogalusa; however, the fee shall be imposed only after13
the question of its imposition has been approved by a majority of the qualified14
electors in the city of Bogalusa who vote on a proposition authorizing the fee at15
an election held for that purpose in accordance with the Louisiana Election16
Code.17
C. In addition to any other powers and authority, the city may:18
(1) Enter into a cooperative endeavor agreement with the Department19
of Health and Hospitals in which the department agrees to undertake or20
continue programs or incur expenses for the performance of services under the21
federal Medicaid program within the city in an amount satisfactory to the22
governing authority of the city, limited to those programs and expenses for23
which federal financial participation under Title XIX of the Social Security Act24
is available.25
(2) Levy and collect within the city a provider fee on the operation of all26
hospitals within the city as provided for in this Section.27
D.(1)(a) The amount of the provider fee to be collected for the operation28
of a hospital within the city shall be equal to the gross receipts from the29
operation of the hospital multiplied by a rate that shall not exceed six percent,30 SB NO. 44 ENROLLED
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or at such maximum rate that the city determines is authorized by federal law1
or regulations governing provider fee or other tax proceeds that may be used2
as a match for federal Medicaid program assistance. The fee shall be paid in3
equal quarterly installments due on the twentieth day of the third month of each4
calendar quarter.5
(b) The provider fee shall be imposed and collected uniformly6
throughout the city.7
(c) Any such provider fee collected shall be considered an allowable cost8
for purposes of Medicare and Medicaid cost reporting and reimbursement.9
(2) Except where inapplicable, the procedure established by the Uniform10
Local Sales Tax Code shall be followed in the imposition, collection, and11
enforcement of the provider fee, and procedural details necessary to be12
established to supplement the provisions of those Sections and to make such13
provisions applicable to the provider fee authorized in this Section shall be fixed14
in the ordinance adopted by the governing authority of the city.15
(3) The ordinance may provide for a contract with the designated sales16
tax collector of Washington Parish for administration and collection of the17
provider fee or with such other agency of the city or state as the governing18
authority of the city deems appropriate and necessary, with a reasonable19
amount to be paid to such collector for such administration and collection.20
E. After paying the necessary and reasonable expenses of collecting and21
administering the provider fee, the remainder of the provider fee may be used22
as provided for in Subsection F of this Section or may be used for the purposes23
set forth in the ordinance adopted by the governing authority of the city or may24
be used for both.25
F.(1)(a) The governing authority of the city of Bogalusa may provide that26
the city or the collector of the fee as provided for in this Section may forward27
all or a portion of the provider fee and interest, penalties, or other charges28
related to such fee to the treasurer of the state to be used solely as provided for29
in this Subsection.30 SB NO. 44 ENROLLED
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(b) After compliance with the requirements of Article VII, Section 9(B)1
of the Constitution of Louisiana relative to the Bond Security and Redemption2
Fund and prior to any money being placed into the general fund or any other3
fund, the amount received by the treasurer shall be deposited immediately upon4
receipt in the state treasury and shall be credited by the treasurer to a special5
fund hereby created in the state treasury to be known as the "Bogalusa Health6
Services Fund". The money in the fund shall be appropriated by the legislature7
to be used solely as provided for in this Subsection.8
(c)(i) The money in the fund shall be invested by the treasurer in the9
same manner as money in the state general fund and interest earned on the10
investment of the money shall be credited to the fund after compliance with the11
requirements of Article VII, Section 9(B) relative to the Bond Security and12
Redemption Fund.13
(ii) All unexpended and unencumbered money in the fund at the end of14
the year shall remain in the fund.15
(d) The money in the Bogalusa Health Services Fund shall be16
appropriated by the legislature only to the Department of Health and Hospitals17
to be used solely for state expenses for the Medicaid program within the city of18
Bogalusa as provided for in the cooperative endeavor agreement between the19
department and the city, limited to those programs and expenses for which20
federal financial participation under Title XIX of the Social Security Act is21
available.22
G.(1)(a) No hospital subject to the provider fee provided for in this23
Section shall pass on the cost of the provider fee or include the provider fee as24
an itemized and separately listed amount on any statement sent to any patient,25
responsible party, insurer, or self-insured employer program. If such a violation26
occurs, it shall be considered a violation of hospital minimum standards by the27
Department of Health and Hospitals. If any such party has reason to believe28
that the provider fee has been passed on to him or an attempt was made to do29
so, he may submit in writing to the collector a request for an investigation along30 SB NO. 44 ENROLLED
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with evidence that the fee has been passed on or that an attempt was made to1
pass on the fee. The collector shall have an affirmative duty to protect such2
parties from any violation of this Subsection.3
(b) Upon receipt of a written request for an investigation by an affected4
party, the collector shall conduct a full investigation in a timely manner. Upon5
completion of the investigation, the collector shall conduct a hearing in the same6
manner as such hearings are provided for in the provisions of the7
Administrative Procedure Act if the collector believes sufficient cause has been8
shown to warrant such hearing. If the collector declines to conduct a hearing,9
the collector shall explain in writing to the requesting party the reasons for not10
further acting upon the complaint.11
(c) Upon any finding by the collector of a violation of this Subsection, the12
collector shall order full restitution to the affected party, including judicial13
interest computed from the time that the violation occurred until payment of14
the restitution. Furthermore, the collector shall forward the collector's findings15
to the Department of Health and Hospitals, which shall conduct a hearing in the16
matter to determine the sanctions applicable thereto, which may include17
suspension or revocation of the violating hospital's license.18
(2) Any bill or statement sent to a patient, responsible party, insurer, or19
self-insured employer program after the initial effective date of this Subsection20
shall contain a statement that, "This bill does not contain any cost of the21
provider fee levied by the city of Bogalusa".22
Section 2. In the event of a judgment by a court of competent jurisdiction that the23
imposition of the provider fee in this Act is invalid or illegal because it lacks any statutory24
or constitutional requirement for its lawful levy and collection, the court shall provide in its25
judgment that such provider fee may be levied and collected by the city of Bogalusa after26
the city fulfills such statutory or constitutional requirement.27
Section 3. This Act shall become effective upon signature by the governor or, if not28
signed by the governor, upon expiration of the time for bills to become law without signature29
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If30 SB NO. 44 ENROLLED
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vetoed by the governor and subsequently approved by the legislature, this Act shall become1
effective on the day following such approval.2
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: