MD
Maryland Senate Bill SB917

Maryland 2022 Regular Session

Maryland Senate Bill SB917 Compare Versions

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1- LAWRENCE J. HOGAN, JR., Governor Ch. 697
21
3-– 1 –
4-Chapter 697
5-(Senate Bill 917)
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+ *sb0917*
89
9-Health Care Facilities – Health Services Cost Review Commission – User Fee
10-Assessment
10+SENATE BILL 917
11+J3 2lr3119
12+ CF HB 510
13+By: Senator Augustine
14+Introduced and read first time: February 11, 2022
15+Assigned to: Rules
16+Re–referred to: Finance, February 21, 2022
17+Committee Report: Favorable with amendments
18+Senate action: Adopted
19+Read second time: March 8, 2022
1120
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.
21+CHAPTER ______
1622
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)
23+AN ACT concerning 1
2224
23- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
24-That the Laws of Maryland read as follows:
25+Health Care Facilities – Health Services Cost Review Commission – User Fee 2
26+Assessment 3
2527
26-Article – Health – General
28+FOR the purpose of altering the maximum amount of total user fees that may be assessed 4
29+on hospitals and related institutions by the Health Services Cost Review 5
30+Commission; and generally relating to fees assessed by the Health Services Cost 6
31+Review Commission. 7
2732
28-19–213.
33+BY repealing and reenacting, with amendments, 8
34+Article – Health – General 9
35+Section 19–213 10
36+Annotated Code of Maryland 11
37+(2019 Replacement Volume and 2021 Supplement) 12
2938
30- (a) (1) In this section the following words have the meanings indicated.
39+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
40+That the Laws of Maryland read as follows: 14
3141
32- (2) “Facilities” means hospitals and related institutions whose rates have
33-been approved by the Commission.
42+Article – Health – General 15
3443
35- (b) The Commission shall assess and collect user fees on facilities as defined in
36-this section.
44+19–213. 16
3745
38- (c) (1) The total fees assessed by the Commission may not exceed
39-[$16,000,000] THE GREATER OF :
46+ (a) (1) In this section the following words have the meanings indicated. 17
47+ 2 SENATE BILL 917
4048
41- (I) 0.1% OF THE IMMEDIATELY P RECEDING FISCAL YEAR ’S
42-BUDGETED, REGULATED , GROSS HOSPITAL REVEN UE; OR
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. 697 2022 LAWS OF MARYLAND
50+ (2) “Facilities” means hospitals and related institutions whose rates have 1
51+been approved by the Commission. 2
4852
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%.
53+ (b) The Commission shall assess and collect user fees on facilities as defined in 3
54+this section. 4
5255
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.
56+ (c) (1) The total fees assessed by the Commission may not exceed 5
57+[$16,000,000] THE GREATER OF : 6
5758
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.
59+ (I) 0.1% OF THE IMMEDIATELY P RECEDING FISCAL YEAR ’S 7
60+BUDGETED, REGULATED , GROSS HOSPITAL REVENUE ; OR 8
6061
61- (5) The user fees assessed by the Commission may be expended only for
62-purposes authorized by the provisions of this subtitle.
62+ (II) THE LARGEST AMOUNT DE TERMINED UNDER THIS 9
63+PARAGRAPH FOR A FISC AL YEAR DURING THE I MMEDIATELY PRECEDING 5 FISCAL 10
64+YEARS. 11
6365
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.
66+ (2) The total user fees assessed by the Commission may not exceed the 12
67+Special Fund appropriation for the Commission by more than 20%. 13
6668
67- (d) (1) There is a Health Services Cost Review Commission Fund.
69+ (3) The user fees assessed by the Commission shall be used exclusively to 14
70+cover the actual documented direct costs of fulfilling the statutory and regulatory duties of 15
71+the Commission in accordance with the provisions of this subtitle and any administrative 16
72+costs for services to the Commission provided by the Department. 17
6873
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.
74+ (4) The Commission shall pay all funds collected from fees assessed in 18
75+accordance with this section into the Health Services Cost Review Commission Fund. 19
7176
72- (3) The Treasurer shall separately hold, and the Comptroller shall account
73-for, the Fund.
77+ (5) The user fees assessed by the Commission may be expended only for 20
78+purposes authorized by the provisions of this subtitle. 21
7479
75- (4) The Fund shall be invested and reinvested in the same manner as other
76-State funds.
80+ (6) The amount specified in paragraph (1) of this subsection limits only the 22
81+total user fees the Commission may assess in a fiscal year. 23
7782
78- (5) Any investment earnings shall be retained to the credit of the Fund.
83+ (d) (1) There is a Health Services Cost Review Commission Fund. 24
7984
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.
85+ (2) The Fund is a special continuing, nonlapsing fund that is not subject to 25
86+§ 7–302 of the State Finance and Procurement Article. 26
8287
83- (7) This section may not be construed to prohibit the Fund from receiving
84-funds from any other source.
88+ (3) The Treasurer shall separately hold, and the Comptroller shall account 27
89+for, the Fund. 28
8590
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.
91+ (4) The Fund shall be invested and reinvested in the same manner as other 29
92+State funds. 30
8993
90- (e) The Commission shall:
94+ (5) Any investment earnings shall be retained to the credit of the Fund. 31
95+ SENATE BILL 917 3
9196
92- (1) Assess user fees for each facility equal to the sum of:
9397
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. 697
98+ (6) The Fund shall be subject to an audit by the Office of Legislative Audits 1
99+as provided for in § 2–1220 of the State Government Article. 2
96100
97-– 3 –
101+ (7) This section may not be construed to prohibit the Fund from receiving 3
102+funds from any other source. 4
98103
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;
104+ (8) The Fund shall be used only to provide funding for the Commission and 5
105+for the purposes authorized under this subtitle. The costs of the Commission include the 6
106+administrative costs incurred by the Department on behalf of the Commission. 7
101107
102- (2) Establish minimum and maximum assessments; and
108+ (e) The Commission shall: 8
103109
104- (3) Assess each facility on or before June 30 of each year.
110+ (1) Assess user fees for each facility equal to the sum of: 9
105111
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.
112+ (i) The amount equal to one half of the total user fees times the ratio 10
113+of admissions of the facility to total admissions of all facilities; and 11
109114
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.
115+ (ii) The amount equal to one half of the total user fees times the ratio 12
116+of gross operating revenue of each facility to total gross operating revenues of all facilities; 13
112117
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.
118+ (2) Establish minimum and maximum assessments; and 14
116119
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.
120+ (3) Assess each facility on or before June 30 of each year. 15
122121
123- SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
124-as follows:
122+ (f) On or before September 1 of each year, each facility assessed under this 16
123+section shall make payment to the Commission. The Commission shall make provision for 17
124+partial payments. 18
125125
126-Article – Health – General
126+ (g) Any bill not paid within 30 days of an agreed payment date may be subject to 19
127+an interest penalty to be determined by the Commission. 20
127128
128-19–213.
129+ (h) (1) This section shall terminate and be of no effect on the first day of July 21
130+following the cessation of a waiver by law or agreement for Medicare and Medicaid between 22
131+the State of Maryland and the federal government. 23
129132
130- (a) (1) In this section the following words have the meanings indicated.
133+ (2) If notice of intent to terminate is made by the federal government to 24
134+this State prior to the first day of an intervening session of the Maryland General Assembly, 25
135+this section shall expire June 30 of the following calendar year. However, under no 26
136+circumstances shall less than seven calendar months occur between notice of termination 27
137+and expiration of this section. 28
131138
132- (2) “Facilities” means hospitals and related institutions whose rates have
133-been approved by the Commission.
139+ SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 29
140+as follows: 30
134141
135- (b) The Commission shall assess and collect user fees on facilities as defined in
136-this section.
142+Article – Health – General 31
137143
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-SUBSECTION FOR FISCAL YEARS 2023, 2024, AND 2025.
144+19–213. 32 4 SENATE BILL 917
141145
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. 697 2022 LAWS OF MARYLAND
144146
145-– 4 –
146147
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.
148+ (a) (1) In this section the following words have the meanings indicated. 1
151149
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.
150+ (2) “Facilities” means hospitals and related institutions whose rates have 2
151+been approved by the Commission. 3
154152
155- (5) The user fees assessed by the Commission may be expended only for
156-purposes authorized by the provisions of this subtitle.
153+ (b) The Commission shall assess and collect user fees on facilities as defined in 4
154+this section. 5
157155
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.
156+ (c) (1) The total fees assessed by the Commission may not exceed 6
157+[$16,000,000] THE AVERAGE OF THE A MOUNTS DETERMINED UN DER THIS 7
158+SUBSECTION FOR FISCAL YEARS 2023, 2024, AND 2025. 8
160159
161- (d) (1) There is a Health Services Cost Review Commission Fund.
160+ (2) The total user fees assessed by the Commission may not exceed the 9
161+Special Fund appropriation for the Commission by more than 20%. 10
162162
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.
163+ (3) The user fees assessed by the Commission shall be used exclusively to 11
164+cover the actual documented direct costs of fulfilling the statutory and regulatory duties of 12
165+the Commission in accordance with the provisions of this subtitle and any administrative 13
166+costs for services to the Commission provided by the Department. 14
165167
166- (3) The Treasurer shall separately hold, and the Comptroller shall account
167-for, the Fund.
168+ (4) The Commission shall pay all funds collected from fees assessed in 15
169+accordance with this section into the Health Services Cost Review Commission Fund. 16
168170
169- (4) The Fund shall be invested and reinvested in the same manner as other
170-State funds.
171+ (5) The user fees assessed by the Commission may be expended only for 17
172+purposes authorized by the provisions of this subtitle. 18
171173
172- (5) Any investment earnings shall be retained to the credit of the Fund.
174+ (6) The amount specified in paragraph (1) of this subsection limits only the 19
175+total user fees the Commission may assess in a fiscal year. 20
173176
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.
177+ (d) (1) There is a Health Services Cost Review Commission Fund. 21
176178
177- (7) This section may not be construed to prohibit the Fund from receiving
178-funds from any other source.
179+ (2) The Fund is a special continuing, nonlapsing fund that is not subject to 22
180+§ 7–302 of the State Finance and Procurement Article. 23
179181
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.
182+ (3) The Treasurer shall separately hold, and the Comptroller shall account 24
183+for, the Fund. 25
183184
184- (e) The Commission shall:
185+ (4) The Fund shall be invested and reinvested in the same manner as other 26
186+State funds. 27
185187
186- (1) Assess user fees for each facility equal to the sum of:
188+ (5) Any investment earnings shall be retained to the credit of the Fund. 28
187189
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. 697
190+ (6) The Fund shall be subject to an audit by the Office of Legislative Audits 29
191+as provided for in § 2–1220 of the State Government Article. 30
192+ SENATE BILL 917 5
191193
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;
195194
196- (2) Establish minimum and maximum assessments; and
195+ (7) This section may not be construed to prohibit the Fund from receiving 1
196+funds from any other source. 2
197197
198- (3) Assess each facility on or before June 30 of each year.
198+ (8) The Fund shall be used only to provide funding for the Commission and 3
199+for the purposes authorized under this subtitle. The costs of the Commission include the 4
200+administrative costs incurred by the Department on behalf of the Commission. 5
199201
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.
202+ (e) The Commission shall: 6
203203
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.
204+ (1) Assess user fees for each facility equal to the sum of: 7
206205
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.
206+ (i) The amount equal to one half of the total user fees times the ratio 8
207+of admissions of the facility to total admissions of all facilities; and 9
210208
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.
209+ (ii) The amount equal to one half of the total user fees times the ratio 10
210+of gross operating revenue of each facility to total gross operating revenues of all facilities; 11
216211
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.
212+ (2) Establish minimum and maximum assessments; and 12
221213
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.
214+ (3) Assess each facility on or before June 30 of each year. 13
226215
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.
216+ (f) On or before September 1 of each year, each facility assessed under this 14
217+section shall make payment to the Commission. The Commission shall make provision for 15
218+partial payments. 16
229219
230-Enacted under Article II, § 17(c) of the Maryland Constitution, May 29, 2022.
220+ (g) Any bill not paid within 30 days of an agreed payment date may be subject to 17
221+an interest penalty to be determined by the Commission. 18
222+
223+ (h) (1) This section shall terminate and be of no effect on the first day of July 19
224+following the cessation of a waiver by law or agreement for Medicare and Medicaid between 20
225+the State of Maryland and the federal government. 21
226+
227+ (2) If notice of intent to terminate is made by the federal government to 22
228+this State prior to the first day of an intervening session of the Maryland General Assembly, 23
229+this section shall expire June 30 of the following calendar year. However, under no 24
230+circumstances shall less than seven calendar months occur between notice of termination 25
231+and expiration of this section. 26
232+
233+ SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall take 27
234+effect July 1, 2022. Section 1 of this Act shall remain effective for a period of 3 years and, 28
235+at the end of June 30, 2025, Section 1 of this Act, with no further action required by the 29
236+General Assembly, shall be abrogated and of no further force and effect. 30
237+
238+ SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 31
239+effect on the taking effect of the termination provision specified in Section 3 of this Act. If 32
240+that termination provision takes effect, Section 1 of this Act, with no further action required 33
241+by the General Assembly, shall be abrogated and of no further force and effect. 34 6 SENATE BILL 917
242+
243+
244+
245+ SECTION 2. 5. AND BE IT FURTHER ENACTED, That , except as provided in 1
246+Sections 3 and 4 of this Act, this Act shall take effect July 1, 2022. 2
247+
248+
249+
250+
251+Approved:
252+________________________________________________________________________________
253+ Governor.
254+________________________________________________________________________________
255+ President of the Senate.
256+________________________________________________________________________________
257+ Speaker of the House of Delegates.