LAWRENCE J. HOGAN, JR., Governor Ch. 697
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Chapter 697
(Senate Bill 917)
AN ACT concerning
Health Care Facilities – Health Services Cost Review Commission – User Fee
Assessment
FOR the purpose of altering the maximum amount of total user fees that may be assessed
on hospitals and related institutions by the Health Services Cost Review
Commission; and generally relating to fees assessed by the Health Services Cost
Review Commission.
BY repealing and reenacting, with amendments,
Article – Health – General
Section 19–213
Annotated Code of Maryland
(2019 Replacement Volume and 2021 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Health – General
19–213.
(a) (1) In this section the following words have the meanings indicated.
(2) “Facilities” means hospitals and related institutions whose rates have
been approved by the Commission.
(b) The Commission shall assess and collect user fees on facilities as defined in
this section.
(c) (1) The total fees assessed by the Commission may not exceed
[$16,000,000] THE GREATER OF :
(I) 0.1% OF THE IMMEDIATELY P RECEDING FISCAL YEAR ’S
BUDGETED, REGULATED , GROSS HOSPITAL REVEN UE; OR
(II) THE LARGEST AMOUNT DE TERMINED UNDER THIS
PARAGRAPH FOR A FISC AL YEAR DURING THE I MMEDIATELY PRECEDING 5 FISCAL
YEARS.
Ch. 697 2022 LAWS OF MARYLAND
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(2) The total user fees assessed by the Commission may not exceed the
Special Fund appropriation for the Commission by more than 20%.
(3) The user fees assessed by the Commission shall be used exclusively to
cover the actual documented direct costs of fulfilling the statutory and regulatory duties of
the Commission in accordance with the provisions of this subtitle and any administrative
costs for services to the Commission provided by the Department.
(4) The Commission shall pay all funds collected from fees assessed in
accordance with this section into the Health Services Cost Review Commission Fund.
(5) The user fees assessed by the Commission may be expended only for
purposes authorized by the provisions of this subtitle.
(6) The amount specified in paragraph (1) of this subsection limits only the
total user fees the Commission may assess in a fiscal year.
(d) (1) There is a Health Services Cost Review Commission Fund.
(2) The Fund is a special continuing, nonlapsing fund that is not subject to
§ 7–302 of the State Finance and Procurement Article.
(3) The Treasurer shall separately hold, and the Comptroller shall account
for, the Fund.
(4) The Fund shall be invested and reinvested in the same manner as other
State funds.
(5) Any investment earnings shall be retained to the credit of the Fund.
(6) The Fund shall be subject to an audit by the Office of Legislative Audits
as provided for in § 2–1220 of the State Government Article.
(7) This section may not be construed to prohibit the Fund from receiving
funds from any other source.
(8) The Fund shall be used only to provide funding for the Commission and
for the purposes authorized under this subtitle. The costs of the Commission include the
administrative costs incurred by the Department on behalf of the Commission.
(e) The Commission shall:
(1) Assess user fees for each facility equal to the sum of:
(i) The amount equal to one half of the total user fees times the ratio
of admissions of the facility to total admissions of all facilities; and LAWRENCE J. HOGAN, JR., Governor Ch. 697
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(ii) The amount equal to one half of the total user fees times the ratio
of gross operating revenue of each facility to total gross operating revenues of all facilities;
(2) Establish minimum and maximum assessments; and
(3) Assess each facility on or before June 30 of each year.
(f) On or before September 1 of each year, each facility assessed under this
section shall make payment to the Commission. The Commission shall make provision for
partial payments.
(g) Any bill not paid within 30 days of an agreed payment date may be subject to
an interest penalty to be determined by the Commission.
(h) (1) This section shall terminate and be of no effect on the first day of July
following the cessation of a waiver by law or agreement for Medicare and Medicaid between
the State of Maryland and the federal government.
(2) If notice of intent to terminate is made by the federal government to
this State prior to the first day of an intervening session of the Maryland General Assembly,
this section shall expire June 30 of the following calendar year. However, under no
circumstances shall less than seven calendar months occur between notice of termination
and expiration of this section.
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Article – Health – General
19–213.
(a) (1) In this section the following words have the meanings indicated.
(2) “Facilities” means hospitals and related institutions whose rates have
been approved by the Commission.
(b) The Commission shall assess and collect user fees on facilities as defined in
this section.
(c) (1) The total fees assessed by the Commission may not exceed
[$16,000,000] THE AVERAGE OF THE A MOUNTS DETERMINED UN DER THIS
SUBSECTION FOR FISCAL YEARS 2023, 2024, AND 2025.
(2) The total user fees assessed by the Commission may not exceed the
Special Fund appropriation for the Commission by more than 20%. Ch. 697 2022 LAWS OF MARYLAND
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(3) The user fees assessed by the Commission shall be used exclusively to
cover the actual documented direct costs of fulfilling the statutory and regulatory duties of
the Commission in accordance with the provisions of this subtitle and any administrative
costs for services to the Commission provided by the Department.
(4) The Commission shall pay all funds collected from fees assessed in
accordance with this section into the Health Services Cost Review Commission Fund.
(5) The user fees assessed by the Commission may be expended only for
purposes authorized by the provisions of this subtitle.
(6) The amount specified in paragraph (1) of this subsection limits only the
total user fees the Commission may assess in a fiscal year.
(d) (1) There is a Health Services Cost Review Commission Fund.
(2) The Fund is a special continuing, nonlapsing fund that is not subject to
§ 7–302 of the State Finance and Procurement Article.
(3) The Treasurer shall separately hold, and the Comptroller shall account
for, the Fund.
(4) The Fund shall be invested and reinvested in the same manner as other
State funds.
(5) Any investment earnings shall be retained to the credit of the Fund.
(6) The Fund shall be subject to an audit by the Office of Legislative Audits
as provided for in § 2–1220 of the State Government Article.
(7) This section may not be construed to prohibit the Fund from receiving
funds from any other source.
(8) The Fund shall be used only to provide funding for the Commission and
for the purposes authorized under this subtitle. The costs of the Commission include the
administrative costs incurred by the Department on behalf of the Commission.
(e) The Commission shall:
(1) Assess user fees for each facility equal to the sum of:
(i) The amount equal to one half of the total user fees times the ratio
of admissions of the facility to total admissions of all facilities; and
LAWRENCE J. HOGAN, JR., Governor Ch. 697
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(ii) The amount equal to one half of the total user fees times the ratio
of gross operating revenue of each facility to total gross operating revenues of all facilities;
(2) Establish minimum and maximum assessments; and
(3) Assess each facility on or before June 30 of each year.
(f) On or before September 1 of each year, each facility assessed under this
section shall make payment to the Commission. The Commission shall make provision for
partial payments.
(g) Any bill not paid within 30 days of an agreed payment date may be subject to
an interest penalty to be determined by the Commission.
(h) (1) This section shall terminate and be of no effect on the first day of July
following the cessation of a waiver by law or agreement for Medicare and Medicaid between
the State of Maryland and the federal government.
(2) If notice of intent to terminate is made by the federal government to
this State prior to the first day of an intervening session of the Maryland General Assembly,
this section shall expire June 30 of the following calendar year. However, under no
circumstances shall less than seven calendar months occur between notice of termination
and expiration of this section.
SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall take
effect July 1, 2022. Section 1 of this Act shall remain effective for a period of 3 years and,
at the end of June 30, 2025, Section 1 of this Act, with no further action required by the
General Assembly, shall be abrogated and of no further force and effect.
SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take
effect on the taking effect of the termination provision specified in Section 3 of this Act. If
that termination provision takes effect, Section 1 of this Act, with no further action required
by the General Assembly, shall be abrogated and of no further force and effect.
SECTION 2. 5. AND BE IT FURTHER ENACTED, That , except as provided in
Sections 3 and 4 of this Act, this Act shall take effect July 1, 2022.
Enacted under Article II, § 17(c) of the Maryland Constitution, May 29, 2022.