MD
Maryland House Bill HB510

Maryland 2022 Regular Session

Maryland House Bill HB510 Compare Versions

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1- LAWRENCE J. HOGAN, JR., Governor Ch. 696
21
3-– 1 –
4-Chapter 696
5-(House Bill 510)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *hb0510*
89
9-Health Care Facilities – Health Services Cost Review Commission – User Fee
10-Assessment
10+HOUSE BILL 510
11+J3 2lr2389
12+ CF SB 917
13+By: Delegate Pendergrass
14+Introduced and read first time: January 21, 2022
15+Assigned to: Health and Government Operations
16+Committee Report: Favorable with amendments
17+House action: Adopted
18+Read second time: March 2, 2022
1119
12-FOR the purpose of altering the maximum amount of total user fees that may be assessed
13-on hospitals and related institutions by the Health Services Cost Review
14-Commission; and generally relating to fees assessed by the Health Services Cost
15-Review Commission.
20+CHAPTER ______
1621
17-BY repealing and reenacting, with amendments,
18-Article – Health – General
19-Section 19–213
20-Annotated Code of Maryland
21-(2019 Replacement Volume and 2021 Supplement)
22+AN ACT concerning 1
2223
23- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
24-That the Laws of Maryland read as follows:
24+Health Care Facilities – Health Services Cost Review Commission – User Fee 2
25+Assessment 3
2526
26-Article – Health – General
27+FOR the purpose of altering the maximum amount of total user fees that may be assessed 4
28+on hospitals and related institutions by the Health Services Cost Review 5
29+Commission; and generally relating to fees assessed by the Health Services Cost 6
30+Review Commission. 7
2731
28-19–213.
32+BY repealing and reenacting, with amendments, 8
33+Article – Health – General 9
34+Section 19–213 10
35+Annotated Code of Maryland 11
36+(2019 Replacement Volume and 2021 Supplement) 12
2937
30- (a) (1) In this section the following words have the meanings indicated.
38+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
39+That the Laws of Maryland read as follows: 14
3140
32- (2) “Facilities” means hospitals and related institutions whose rates have
33-been approved by the Commission.
41+Article – Health – General 15
3442
35- (b) The Commission shall assess and collect user fees on facilities as defined in
36-this section.
43+19–213. 16
3744
38- (c) (1) The total fees assessed by the Commission may not exceed
39-[$16,000,000] THE GREATER OF :
45+ (a) (1) In this section the following words have the meanings indicated. 17
4046
41- (I) 0.1% OF THE IMMEDIATELY P RECEDING FISCAL YEAR ’S
42-BUDGETED, REGULATED , GROSS HOSPITAL REVEN UE; OR
47+ (2) “Facilities” means hospitals and related institutions whose rates have 18
48+been approved by the Commission. 19 2 HOUSE BILL 510
4349
44- (II) THE LARGEST AMOUNT DE TERMINED UNDER THIS
45-PARAGRAPH FOR A FISC AL YEAR DURING THE I MMEDIATELY PRECEDING 5 FISCAL
46-YEARS.
47- Ch. 696 2022 LAWS OF MARYLAND
4850
49-– 2 –
50- (2) The total user fees assessed by the Commission may not exceed the
51-Special Fund appropriation for the Commission by more than 20%.
5251
53- (3) The user fees assessed by the Commission shall be used exclusively to
54-cover the actual documented direct costs of fulfilling the statutory and regulatory duties of
55-the Commission in accordance with the provisions of this subtitle and any administrative
56-costs for services to the Commission provided by the Department.
52+ (b) The Commission shall assess and collect user fees on facilities as defined in 1
53+this section. 2
5754
58- (4) The Commission shall pay all funds collected from fees assessed in
59-accordance with this section into the Health Services Cost Review Commission Fund.
55+ (c) (1) The total fees assessed by the Commission may not exceed 3
56+[$16,000,000] THE GREATER OF : 4
6057
61- (5) The user fees assessed by the Commission may be expended only for
62-purposes authorized by the provisions of this subtitle.
58+ (I) 0.1% OF THE IMMEDIATELY P RECEDING FISCAL YEAR ’S 5
59+BUDGETED, REGULATED , GROSS HOSPITAL REVENUE ; OR 6
6360
64- (6) The amount specified in paragraph (1) of this subsection limits only the
65-total user fees the Commission may assess in a fiscal year.
61+ (II) THE LARGEST AMOUNT DE TERMINED UNDER THIS 7
62+PARAGRAPH FOR A FISC AL YEAR DURING THE I MMEDIATELY PRECEDING 5 FISCAL 8
63+YEARS. 9
6664
67- (d) (1) There is a Health Services Cost Review Commission Fund.
65+ (2) The total user fees assessed by the Commission may not exceed the 10
66+Special Fund appropriation for the Commission by more than 20%. 11
6867
69- (2) The Fund is a special continuing, nonlapsing fund that is not subject to
70-§ 7–302 of the State Finance and Procurement Article.
68+ (3) The user fees assessed by the Commission shall be used exclusively to 12
69+cover the actual documented direct costs of fulfilling the statutory and regulatory duties of 13
70+the Commission in accordance with the provisions of this subtitle and any administrative 14
71+costs for services to the Commission provided by the Department. 15
7172
72- (3) The Treasurer shall separately hold, and the Comptroller shall account
73-for, the Fund.
73+ (4) The Commission shall pay all funds collected from fees assessed in 16
74+accordance with this section into the Health Services Cost Review Commission Fund. 17
7475
75- (4) The Fund shall be invested and reinvested in the same manner as other
76-State funds.
76+ (5) The user fees assessed by the Commission may be expended only for 18
77+purposes authorized by the provisions of this subtitle. 19
7778
78- (5) Any investment earnings shall be retained to the credit of the Fund.
79+ (6) The amount specified in paragraph (1) of this subsection limits only the 20
80+total user fees the Commission may assess in a fiscal year. 21
7981
80- (6) The Fund shall be subject to an audit by the Office of Legislative Audits
81-as provided for in § 2–1220 of the State Government Article.
82+ (d) (1) There is a Health Services Cost Review Commission Fund. 22
8283
83- (7) This section may not be construed to prohibit the Fund from receiving
84-funds from any other source.
84+ (2) The Fund is a special continuing, nonlapsing fund that is not subject to 23
85+§ 7–302 of the State Finance and Procurement Article. 24
8586
86- (8) The Fund shall be used only to provide funding for the Commission and
87-for the purposes authorized under this subtitle. The costs of the Commission include the
88-administrative costs incurred by the Department on behalf of the Commission.
87+ (3) The Treasurer shall separately hold, and the Comptroller shall account 25
88+for, the Fund. 26
8989
90- (e) The Commission shall:
90+ (4) The Fund shall be invested and reinvested in the same manner as other 27
91+State funds. 28
9192
92- (1) Assess user fees for each facility equal to the sum of:
93+ (5) Any investment earnings shall be retained to the credit of the Fund. 29
9394
94- (i) The amount equal to one half of the total user fees times the ratio
95-of admissions of the facility to total admissions of all facilities; and LAWRENCE J. HOGAN, JR., Governor Ch. 696
95+ (6) The Fund shall be subject to an audit by the Office of Legislative Audits 30
96+as provided for in § 2–1220 of the State Government Article. 31 HOUSE BILL 510 3
9697
97-– 3 –
9898
99- (ii) The amount equal to one half of the total user fees times the ratio
100-of gross operating revenue of each facility to total gross operating revenues of all facilities;
10199
102- (2) Establish minimum and maximum assessments; and
100+ (7) This section may not be construed to prohibit the Fund from receiving 1
101+funds from any other source. 2
103102
104- (3) Assess each facility on or before June 30 of each year.
103+ (8) The Fund shall be used only to provide funding for the Commission and 3
104+for the purposes authorized under this subtitle. The costs of the Commission include the 4
105+administrative costs incurred by the Department on behalf of the Commission. 5
105106
106- (f) On or before September 1 of each year, each facility assessed under this
107-section shall make payment to the Commission. The Commission shall make provision for
108-partial payments.
107+ (e) The Commission shall: 6
109108
110- (g) Any bill not paid within 30 days of an agreed payment date may be subject to
111-an interest penalty to be determined by the Commission.
109+ (1) Assess user fees for each facility equal to the sum of: 7
112110
113- (h) (1) This section shall terminate and be of no effect on the first day of July
114-following the cessation of a waiver by law or agreement for Medicare and Medicaid between
115-the State of Maryland and the federal government.
111+ (i) The amount equal to one half of the total user fees times the ratio 8
112+of admissions of the facility to total admissions of all facilities; and 9
116113
117- (2) If notice of intent to terminate is made by the federal government to
118-this State prior to the first day of an intervening session of the Maryland General Assembly,
119-this section shall expire June 30 of the following calendar year. However, under no
120-circumstances shall less than seven calendar months occur between notice of termination
121-and expiration of this section.
114+ (ii) The amount equal to one half of the total user fees times the ratio 10
115+of gross operating revenue of each facility to total gross operating revenues of all facilities; 11
122116
123- SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read as
124-follows:
117+ (2) Establish minimum and maximum assessments; and 12
125118
126-Article – Health – General
119+ (3) Assess each facility on or before June 30 of each year. 13
127120
128-19–213.
121+ (f) On or before September 1 of each year, each facility assessed under this 14
122+section shall make payment to the Commission. The Commission shall make provision for 15
123+partial payments. 16
129124
130- (a) (1) In this section the following words have the meanings indicated.
125+ (g) Any bill not paid within 30 days of an agreed payment date may be subject to 17
126+an interest penalty to be determined by the Commission. 18
131127
132- (2) “Facilities” means hospitals and related institutions whose rates have
133-been approved by the Commission.
128+ (h) (1) This section shall terminate and be of no effect on the first day of July 19
129+following the cessation of a waiver by law or agreement for Medicare and Medicaid between 20
130+the State of Maryland and the federal government. 21
134131
135- (b) The Commission shall assess and collect user fees on facilities as defined in
136-this section.
132+ (2) If notice of intent to terminate is made by the federal government to 22
133+this State prior to the first day of an intervening session of the Maryland General Assembly, 23
134+this section shall expire June 30 of the following calendar year. However, under no 24
135+circumstances shall less than seven calendar months occur between notice of termination 25
136+and expiration of this section. 26
137137
138- (c) (1) The total fees assessed by the Commission may not exceed
139-[$16,000,000] THE AVERAGE OF THE A MOUNTS DETERMINED UN DER THIS
140-PARAGRAPH FOR FISCAL YEARS 2023, 2024, AND 2025.
138+ SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read as 27
139+follows: 28
141140
142- (2) The total user fees assessed by the Commission may not exceed the
143-Special Fund appropriation for the Commission by more than 20%. Ch. 696 2022 LAWS OF MARYLAND
141+Article – Health – General 29
144142
145-– 4 –
143+19–213. 30
146144
147- (3) The user fees assessed by the Commission shall be used exclusively to
148-cover the actual documented direct costs of fulfilling the statutory and regulatory duties of
149-the Commission in accordance with the provisions of this subtitle and any administrative
150-costs for services to the Commission provided by the Department.
145+ (a) (1) In this section the following words have the meanings indicated. 31 4 HOUSE BILL 510
151146
152- (4) The Commission shall pay all funds collected from fees assessed in
153-accordance with this section into the Health Services Cost Review Commission Fund.
154147
155- (5) The user fees assessed by the Commission may be expended only for
156-purposes authorized by the provisions of this subtitle.
157148
158- (6) The amount specified in paragraph (1) of this subsection limits only the
159-total user fees the Commission may assess in a fiscal year.
149+ (2) “Facilities” means hospitals and related institutions whose rates have 1
150+been approved by the Commission. 2
160151
161- (d) (1) There is a Health Services Cost Review Commission Fund.
152+ (b) The Commission shall assess and collect user fees on facilities as defined in 3
153+this section. 4
162154
163- (2) The Fund is a special continuing, nonlapsing fund that is not subject to
164-§ 7–302 of the State Finance and Procurement Article.
155+ (c) (1) The total fees assessed by the Commission may not exceed 5
156+[$16,000,000] THE AVERAGE OF THE A MOUNTS DETERMINED UN DER THIS 6
157+PARAGRAPH FOR FISCAL YEARS 2023, 2024, AND 2025. 7
165158
166- (3) The Treasurer shall separately hold, and the Comptroller shall account
167-for, the Fund.
159+ (2) The total user fees assessed by the Commission may not exceed the 8
160+Special Fund appropriation for the Commission by more than 20%. 9
168161
169- (4) The Fund shall be invested and reinvested in the same manner as other
170-State funds.
162+ (3) The user fees assessed by the Commission shall be used exclusively to 10
163+cover the actual documented direct costs of fulfilling the statutory and regulatory duties of 11
164+the Commission in accordance with the provisions of this subtitle and any administrative 12
165+costs for services to the Commission provided by the Department. 13
171166
172- (5) Any investment earnings shall be retained to the credit of the Fund.
167+ (4) The Commission shall pay all funds collected from fees assessed in 14
168+accordance with this section into the Health Services Cost Review Commission Fund. 15
173169
174- (6) The Fund shall be subject to an audit by the Office of Legislative Audits
175-as provided for in § 2–1220 of the State Government Article.
170+ (5) The user fees assessed by the Commission may be expended only for 16
171+purposes authorized by the provisions of this subtitle. 17
176172
177- (7) This section may not be construed to prohibit the Fund from receiving
178-funds from any other source.
173+ (6) The amount specified in paragraph (1) of this subsection limits only the 18
174+total user fees the Commission may assess in a fiscal year. 19
179175
180- (8) The Fund shall be used only to provide funding for the Commission and
181-for the purposes authorized under this subtitle. The costs of the Commission include the
182-administrative costs incurred by the Department on behalf of the Commission.
176+ (d) (1) There is a Health Services Cost Review Commission Fund. 20
183177
184- (e) The Commission shall:
178+ (2) The Fund is a special continuing, nonlapsing fund that is not subject to 21
179+§ 7–302 of the State Finance and Procurement Article. 22
185180
186- (1) Assess user fees for each facility equal to the sum of:
181+ (3) The Treasurer shall separately hold, and the Comptroller shall account 23
182+for, the Fund. 24
187183
188- (i) The amount equal to one half of the total user fees times the ratio
189-of admissions of the facility to total admissions of all facilities; and
190- LAWRENCE J. HOGAN, JR., Governor Ch. 696
184+ (4) The Fund shall be invested and reinvested in the same manner as other 25
185+State funds. 26
191186
192-– 5 –
193- (ii) The amount equal to one half of the total user fees times the ratio
194-of gross operating revenue of each facility to total gross operating revenues of all facilities;
187+ (5) Any investment earnings shall be retained to the credit of the Fund. 27
195188
196- (2) Establish minimum and maximum assessments; and
189+ (6) The Fund shall be subject to an audit by the Office of Legislative Audits 28
190+as provided for in § 2–1220 of the State Government Article. 29
197191
198- (3) Assess each facility on or before June 30 of each year.
192+ (7) This section may not be construed to prohibit the Fund from receiving 30
193+funds from any other source. 31
194+ HOUSE BILL 510 5
199195
200- (f) On or before September 1 of each year, each facility assessed under this
201-section shall make payment to the Commission. The Commission shall make provision for
202-partial payments.
203196
204- (g) Any bill not paid within 30 days of an agreed payment date may be subject to
205-an interest penalty to be determined by the Commission.
197+ (8) The Fund shall be used only to provide funding for the Commission and 1
198+for the purposes authorized under this subtitle. The costs of the Commission include the 2
199+administrative costs incurred by the Department on behalf of the Commission. 3
206200
207- (h) (1) This section shall terminate and be of no effect on the first day of July
208-following the cessation of a waiver by law or agreement for Medicare and Medicaid between
209-the State of Maryland and the federal government.
201+ (e) The Commission shall: 4
210202
211- (2) If notice of intent to terminate is made by the federal government to
212-this State prior to the first day of an intervening session of the Maryland General Assembly,
213-this section shall expire June 30 of the following calendar year. However, under no
214-circumstances shall less than seven calendar months occur between notice of termination
215-and expiration of this section.
203+ (1) Assess user fees for each facility equal to the sum of: 5
216204
217- SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall take
218-effect July 1, 2022. Section 1 of this Act shall remain effective for a period of 3 years and,
219-at the end of June 30, 2025, Section 1 of this Act, with no further action required by the
220-General Assembly, shall be abrogated and of no further force and effect.
205+ (i) The amount equal to one half of the total user fees times the ratio 6
206+of admissions of the facility to total admissions of all facilities; and 7
221207
222- SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take
223-effect on the taking effect of the termination provision specified in Section 3 of this Act. If
224-that termination provision takes effect, Section 1 of this Act, with no further action required
225-by the General Assembly, shall be abrogated and of no further force and effect.
208+ (ii) The amount equal to one half of the total user fees times the ratio 8
209+of gross operating revenue of each facility to total gross operating revenues of all facilities; 9
226210
227- SECTION 2. 5. AND BE IT FURTHER ENACTED, That , except as provided in
228-Sections 3 and 4 of this Act, this Act shall take effect July 1, 2022.
211+ (2) Establish minimum and maximum assessments; and 10
229212
230-Enacted under Article II, § 17(c) of the Maryland Constitution, May 29, 2022.
213+ (3) Assess each facility on or before June 30 of each year. 11
214+
215+ (f) On or before September 1 of each year, each facility assessed under this 12
216+section shall make payment to the Commission. The Commission shall make provision for 13
217+partial payments. 14
218+
219+ (g) Any bill not paid within 30 days of an agreed payment date may be subject to 15
220+an interest penalty to be determined by the Commission. 16
221+
222+ (h) (1) This section shall terminate and be of no effect on the first day of July 17
223+following the cessation of a waiver by law or agreement for Medicare and Medicaid between 18
224+the State of Maryland and the federal government. 19
225+
226+ (2) If notice of intent to terminate is made by the federal government to 20
227+this State prior to the first day of an intervening session of the Maryland General Assembly, 21
228+this section shall expire June 30 of the following calendar year. However, under no 22
229+circumstances shall less than seven calendar months occur between notice of termination 23
230+and expiration of this section. 24
231+
232+ SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall take 25
233+effect July 1, 2022. Section 1 of this Act shall remain effective for a period of 3 years and, 26
234+at the end of June 30, 2025, Section 1 of this Act, with no further action required by the 27
235+General Assembly, shall be abrogated and of no further force and effect. 28
236+
237+ SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 29
238+effect on the taking effect of the termination provision specified in Section 3 of this Act. If 30
239+that termination provision takes effect, Section 1 of this Act, with no further action required 31
240+by the General Assembly, shall be abrogated and of no further force and effect. 32
241+
242+ SECTION 2. 5. AND BE IT FURTHER ENACTED, That , except as provided in 33
243+Sections 3 and 4 of this Act, this Act shall take effect July 1, 2022. 34