72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
Enrolled
House Bill 2747
Sponsored by Representative DINGFELDER, Senator RINGO;
Representatives BARNHART, BATES, HASS, NOLAN, TOMEI
CHAPTER ................
AN ACT
Relating to taxation; creating new provisions; amending sections
4, 5 and 31, chapter ___, Oregon Laws 2003 (Enrolled House Bill
2152); repealing sections 72, 73, 74, 75, 76, 77, 78, 79, 80,
81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96,
97, 98, 99, 100, 101, 102, 103, 104, 105, 106, 107, 108 and
109, chapter ___, Oregon Laws 2003 (Enrolled House Bill 2152);
appropriating money; prescribing an effective date; and
providing for revenue raising that requires approval by a
three-fifths majority.
Be It Enacted by the People of the State of Oregon:
{ +
HOSPITAL TAXES + }
SECTION 1. { + As used in sections 1 to 9 of this 2003 Act:
(1) 'Charity care' means costs for providing inpatient or
outpatient care services free of charge or at a reduced charge
because of the indigence or lack of health insurance of the
patient receiving the care services.
(2) 'Contractual adjustments' means the difference between the
amounts charged based on the hospital's full established charges
and the amount received or due from the payor.
(3) 'Hospital' has the meaning given that term in ORS 442.015
but does not include special inpatient care facilities.
(4) 'Net revenue':
(a) Means the total amount of charges for inpatient or
outpatient care provided by the hospital to patients, less
charity care, bad debts and contractual adjustments;
(b) Does not include revenue derived from sources other than
inpatient or outpatient operations, including but not limited to
interest and guest meals; and
(c) Does not include any revenue that is taken into account in
computing a long term care facility assessment under sections 15
to 22 of this 2003 Act. + } { +
(5) 'Waivered hospital' means a type A or type B hospital, as
described in ORS 442.470, a hospital that provides only
psychiatric care or a hospital identified by the Department of
Human Services as appropriate for inclusion in the application
described in section 4 of this 2003 Act. + }
SECTION 2. { + (1) An assessment is imposed on each hospital
in this state that is not a waivered hospital. The assessment
Enrolled House Bill 2747 (HB 2747-C) Page 1
shall be imposed at a rate determined by the Director of Human
Services by rule that is the director's best estimate of the rate
needed to fund the services and costs identified in section 9 of
this 2003 Act. The rate of assessment shall be imposed on the net
revenue of each hospital subject to assessment. The director
shall consult with representatives of hospitals before setting
the assessment.
(2) Notwithstanding subsection (1) of this section, the rate of
assessment may not exceed three percent.
(3) The assessment shall be reported on a form prescribed by
the Department of Human Services and shall contain the
information required to be reported by the department. The
assessment form shall be filed with the department on or before
the 75th day following the end of the calendar quarter for which
the assessment is being reported. The hospital shall pay the
assessment at the time the hospital files the assessment report.
The payment shall accompany the report.
(4) A hospital is not guaranteed that any additional moneys
paid to the hospital in the form of payments for services shall
equal or exceed the amount of the assessment paid by the
hospital.
(5) Hospitals operated by the United States Department of
Veterans Affairs and pediatric specialty hospitals providing care
to children at no charge are exempt from the assessment imposed
under this section. + }
SECTION 3. { + Notwithstanding section 2 of this 2003 Act, the
Director of Human Services shall reduce the rate of assessment
imposed under section 2 of this 2003 Act to the maximum rate
allowed under federal law if the reduction is required to comply
with federal law. + }
SECTION 4. { + (1) On or before January 1, 2004, the
Department of Human Services shall submit an application to the
Centers for Medicare and Medicaid Services to request a waiver of
the broad-based tax requirement pursuant to 42 C.F.R. 433.68(e)
to exempt waivered facilities from the assessment imposed under
section 2 of this 2003 Act. The department shall ensure that the
application requesting a waiver meets the requirements of 42
C.F.R. 433.68(e)(1).
(2) The Director of Human Services may include in the
application requesting a waiver any hospital operated exclusively
for a prepaid group practice health plan that serves at least
200,000 members in this state and that has been issued a
certificate of authority by the Department of Consumer and
Business Services as a health care service contractor if the
application requesting a waiver meets the requirements of 42
C.F.R. 433.68(e)(1).
(3) The department shall notify waivered facilities that the
department has submitted the application to the Centers for
Medicare and Medicaid Services to request a waiver of the
broad-based tax requirement pursuant to 42 C.F.R. 433.68(e) to
exempt waivered facilities from the assessment imposed under
section 2 of this 2003 Act.
(4) If an application to the Centers for Medicare and Medicaid
Services for a waiver of the broad-based tax requirement pursuant
to 42 C.F.R. 433.68(e) is denied, the Director of Human Services
may resubmit the application with appropriate changes to receive
a waiver of the broad-based tax requirement. + }
SECTION 5. { + (1) A hospital that fails to file a report or
pay an assessment under section 2 of this 2003 Act by the date
the report or payment is due shall be subject to a penalty of
Enrolled House Bill 2747 (HB 2747-C) Page 2
$500 per day of delinquency. The total amount of penalties
imposed under this section for each reporting period may not
exceed five percent of the assessment for the reporting period
for which penalties are being imposed.
(2) Penalties imposed under this section shall be collected by
the Department of Human Services and deposited in the Department
of Human Services Account established under ORS 409.060.
(3) Penalties paid under this section are in addition to and
not in lieu of the assessment imposed under section 2 of this
2003 Act. + }
SECTION 6. { + (1) Any hospital that has paid an amount that
is not required under sections 1 to 9 of this 2003 Act may file a
claim for refund with the Department of Human Services.
(2) Any hospital that is aggrieved by an action of the
Department of Human Services or by an action of the Director of
Human Services taken pursuant to subsection (1) of this section
shall be entitled to notice and an opportunity for a contested
case hearing under ORS 183.310 to 183.550. + }
SECTION 7. { + The Department of Human Services may audit the
records of any hospital in this state to determine compliance
with sections 1 to 9 of this 2003 Act. The department may audit
records at any time for a period of five years following the date
an assessment is due to be reported and paid under section 2 of
this 2003 Act. + }
SECTION 8. { + Amounts collected by the Department of Human
Services from the assessments imposed under section 2 of this
2003 Act shall be deposited in a suspense account established
under ORS 293.445. Amounts necessary to pay refunds are
continuously appropriated to the department from the suspense
account. After the payment of refunds, the net amount of revenue
shall be transferred to the Hospital Quality Assurance Fund
established under section 9 of this 2003 Act. + }
SECTION 9. { + (1) The Hospital Quality Assurance Fund is
established in the State Treasury, separate and distinct from the
General Fund. Interest earned by the Hospital Quality Assurance
Fund shall be credited to the Hospital Quality Assurance Fund.
(2) Amounts in the Hospital Quality Assurance Fund are
continuously appropriated to the Department of Human Services for
the purpose of funding health services under ORS 414.705 to
414.750, including but not limited to:
(a) Increasing reimbursement rates for inpatient and outpatient
hospital services under ORS 414.705 to 414.750;
(b) Expanding, continuing or modifying hospital services for
persons 19 years of age or older with incomes below 100 percent
of the federal poverty guidelines who do not have federal
Medicare coverage under ORS 414.705 to 414.750; and
(c) Administrative costs incurred by the department to
administer the assessments imposed under section 2 of this 2003
Act. + }
SECTION 10. { + Sections 1 to 9 of this 2003 Act apply to net
revenues earned by hospitals on or after January 1, 2004, and
before January 1, 2008. + }
SECTION 11. { + (1) Sections 1 to 9 of this 2003 Act become
operative on the day after the date of receipt of all necessary
federal approvals, including the waiver of the broad-based tax
requirement pursuant to 42 C.F.R. 433.68(e), by the Centers for
Medicare and Medicaid Services.
(2) The Director of Human Services shall notify the Legislative
Counsel upon receipt of the necessary federal approvals or denial
of the federal approvals. + }
Enrolled House Bill 2747 (HB 2747-C) Page 3
SECTION 12. { + Sections 1 to 9 of this 2003 Act are repealed
on January 2, 2010. + }
SECTION 13. { + Nothing in the repeal of sections 1 to 9 of
this 2003 Act by section 12 of this 2003 Act affects the
imposition and collection of a hospital assessment under sections
1 to 9 of this 2003 Act for a calendar quarter beginning before
January 1, 2008. + }
SECTION 14. { + Any moneys remaining in the Hospital Quality
Assurance Fund on December 31, 2009, are transferred to the
General Fund. + }
{ +
LONG TERM CARE FACILITY TAXES + }
SECTION 15. { + As used in sections 15 to 22 of this 2003 Act:
(1) 'Assessment rate' means the rate established by the
Director of Human Services under section 17 of this 2003 Act.
(2) 'Gross revenue':
(a) Means the revenue paid to a long term care facility for
patient care, room, board and services, less contractual
adjustments; and
(b) Does not include revenue derived from sources other than
operations, including but not limited to interest and guest
meals.
(3) 'Long term care facility' has the meaning given that term
in ORS 442.015, but does not include an intermediate care
facility for the mentally retarded.
(4) 'Patient days' means the total number of patients occupying
beds in a long term care facility, determined as of 12:01 a.m. of
each day, for all days in the calendar period for which an
assessment is being reported and paid. For purposes of this
subsection, if a long term care facility patient is admitted and
discharged on the same day, the patient shall be deemed present
on 12:01 a.m. of that day. + }
SECTION 16. { + (1) A long term care facility assessment is
imposed on each long term care facility in this state.
(2) The amount of the assessment equals the assessment rate
times the number of patient days at the long term care facility
for a calendar quarter.
(3) The assessment shall be reported on a form prescribed by
the Department of Human Services and shall contain the
information required to be reported by the department. The
assessment form shall be filed with the department on or before
the 30th day of the month following the end of the calendar
quarter for which the assessment is being reported. The long term
care facility shall pay the assessment at the time the facility
files the assessment report. The payment shall accompany the
report.
(4) A long term care facility is not guaranteed that any
additional moneys paid to the facility in the form of
reimbursements calculated according to the methodology described
in section 24 (4) of this 2003 Act shall equal or exceed the
amount of the long term care facility assessment paid by the
facility. + }
SECTION 17. { + (1) The Director of Human Services shall
establish an annual assessment rate for long term care facilities
that applies for a 12-month period beginning July 1. The
assessment rate shall be a rate that will raise an amount equal
to six percent of the annual gross revenue of all long term care
facilities in this state, excluding the annual gross revenue of
Enrolled House Bill 2747 (HB 2747-C) Page 4
long term care facilities that are exempt from the assessment
under section 16 of this 2003 Act, for the 12-month period
beginning July 1 preceding the 12-month period for which the
assessment is being imposed.
(2) At the time the annual assessment rate is established, the
director may adjust the assessment rate determined under
subsection (1) of this section to account for overages and
underages in the aggregate amount actually collected during
previous assessment periods.
(3) The director shall establish the assessment rate on or
before June 15th preceding the 12-month period for which the rate
applies. + }
SECTION 18. { + The Oregon Veterans' Home is exempt from the
assessment imposed under section 16 of this 2003 Act. + }
SECTION 19. { + (1) A long term care facility that fails to
file a report or pay an assessment under section 16 of this 2003
Act by the date the report or payment is due shall be subject to
a penalty of $500 per day of delinquency. The total amount of
penalties imposed under this section for each reporting period
may not exceed five percent of the assessment for the reporting
period for which penalties are being imposed.
(2) Penalties imposed under this section shall be collected by
the Department of Human Services and deposited in the Department
of Human Services Account established under ORS 409.060.
(3) Penalties paid under this section are in addition to and
not in lieu of the assessment imposed under section 16 of this
2003 Act. + }
SECTION 20. { + (1) A long term care facility that has paid an
amount that is not required under sections 15 to 22 of this 2003
Act may file a claim for refund with the Department of Human
Services.
(2) Any long term care facility aggrieved by an action of the
Department of Human Services or by an action of the Director of
Human Services taken under sections 15 to 22 of this 2003 Act
shall be entitled to notice and an opportunity for a contested
case hearing under ORS 183.310 to 183.550. + }
SECTION 21. { + (1) Each long term care facility subject to
assessment under section 16 of this 2003 Act shall maintain
records sufficient to determine the amount of the assessment
under section 16 of this 2003 Act.
(2) Unless otherwise exempt, a long term care facility shall
report the payment of the assessment as an allowable cost for
Medicaid reimbursement purposes.
(3) The Department of Human Services may audit the records of
any long term care facility in this state to determine compliance
with sections 15 to 22 of this 2003 Act. The department may audit
records at any time for a period of three years following the
date an assessment is due to be reported and paid under section
16 of this 2003 Act. + }
SECTION 22. { + Amounts collected by the Department of Human
Services from the assessment under section 16 of this 2003 Act
shall be deposited in a suspense account established under ORS
293.445. Amounts necessary to pay refunds are continuously
appropriated to the department from the suspense account. After
the payment of refunds, the net amount of revenue shall be
transferred to the Long Term Care Facility Quality Assurance Fund
established under section 24 of this 2003 Act. + }
SECTION 23. { + Sections 15 to 22 of this 2003 Act apply to
long term care facility assessments imposed in calendar quarters
Enrolled House Bill 2747 (HB 2747-C) Page 5
beginning on or after the effective date of this 2003 Act and
before July 1, 2007. + }
SECTION 24. { + (1) The Long Term Care Facility Quality
Assurance Fund is established in the State Treasury, separate and
distinct from the General Fund. Interest earned by the Long Term
Care Facility Quality Assurance Fund shall be credited to the
fund.
(2) Amounts in the Long Term Care Facility Quality Assurance
Fund are continuously appropriated to the Department of Human
Services for the purposes of funding long term care facilities,
as defined in section 15 of this 2003 Act, that are a part of the
Oregon Medicaid reimbursement system.
(3) Funds in the Long Term Care Facility Quality Assurance Fund
and the matching federal financial participation under Title XIX
of the Social Security Act may be used to fund Medicaid-certified
long term care facilities using only the reimbursement
methodology described in subsection (4) of this section to
achieve a rate of reimbursement greater than the rate in effect
on July 1, 2003.
(4) The reimbursement methodology used to make additional
payments to Medicaid-certified long term care facilities includes
but is not limited to:
(a) Rebasing biennially, beginning on July 1 of each
odd-numbered year;
(b) Adjusting for inflation in the nonrebasing year;
(c) Continuing the use of the pediatric rate;
(d) Continuing the use of the complex medical needs additional
payment;
(e) Discontinuing the use of the relationship percentage,
except when calculating the pediatric rate in paragraph (c) of
this subsection; and
(f) Requiring the Department of Human Services to reimburse
costs at a rate not lower than the 63rd percentile ceiling of
allowable costs for the 2003-2005 biennium and the 70th
percentile ceiling of allowable costs for the 2005-2007
biennium. + }
SECTION 25. { + Notwithstanding section 24 of this 2003 Act:
(1) On or before March 15, 2004, $6.25 million shall be
transferred from the Long Term Care Facility Quality Assurance
Fund to the General Fund; and
(2) On or before March 15, 2005, $6.25 million shall be
transferred from the Long Term Care Facility Quality Assurance
Fund to the General Fund. + }
SECTION 26. { + Notwithstanding ORS 410.555, during the
2003-2005 biennium and the 2005-2007 biennium, the Department of
Human Services shall periodically adjust reimbursement rates to
reflect the increase between the long term care facility caseload
approved and funded in the legislatively adopted budget for the
department for the 2003-2005 biennium and the long term care
facility caseload at the time of the adjustment. + }
SECTION 27. { + (1) Notwithstanding section 17 (1) of this
2003 Act and ORS 410.555, the assessment under section 16 of this
2003 Act for calendar quarters beginning on or after the
effective date of this 2003 Act and before July 1, 2004, shall be
determined using an assessment rate of $8.25.
(2) An assessment in a calendar quarter may be adjusted as
provided in section 17 (2) of this 2003 Act to take into account
overages or underages raised under the assessment rate set under
subsection (1) of this section, including but not limited to
overages and underages caused by an approval or denial by the
Enrolled House Bill 2747 (HB 2747-C) Page 6
Centers for Medicare and Medicaid Services of an application to
request a waiver made pursuant to section 33 of this 2003 Act. An
adjustment under this subsection may be made at any time. + }
SECTION 28. { + (1) Notwithstanding section 23 of this 2003
Act and ORS 410.555, a long term care facility assessment is
imposed on long term care facilities for patient days on or after
July 1, 2003, and before the first day of the calendar quarter
that begins on or after the effective date of this 2003 Act.
(2) The assessment rate for the period described in subsection
(1) of this section is $8.25.
(3) The assessment shall be computed and reported as described
in section 16 of this 2003 Act and shall be paid to the
Department of Human Services on or before the 30th day of the
first month of the calendar quarter that begins on or after the
effective date of this 2003 Act.
(4) The department shall deposit assessments collected under
this section, and penalties associated with those assessments, in
the suspense account described in section 22 of this 2003 Act.
(5) Unless the context requires otherwise, sections 15 to 22 of
this 2003 Act apply to the assessments imposed under this
section. + }
SECTION 29. { + Notwithstanding sections 15 to 22 of this 2003
Act, an assessment under sections 15 to 22 of this 2003 Act may
be imposed only in a calendar quarter for which the long term
care facility reimbursement rate that is part of the Oregon
Medicaid reimbursement system was calculated according to the
methodology described in section 24 (4) of this 2003 Act. The
department may make retroactive increases in payments for the
first six months the assessment is imposed. + }
SECTION 30. { + Notwithstanding ORS 410.555 and section 28 of
this 2003 Act, an assessment under section 28 of this 2003 Act
may be imposed only in a calendar quarter for which the long term
care facility reimbursement rate that is part of the Oregon
Medicaid reimbursement system was calculated according to the
methodology described in section 24 (4) of this 2003 Act. + }
SECTION 31. { + Sections 15 to 22 and 24 of this 2003 Act are
repealed on January 2, 2008. + }
SECTION 32. { + (1) Nothing in the repeal of sections 15 to 22
and 24 of this 2003 Act by section 31 of this 2003 Act affects
the imposition and collection of a long term care facility
assessment under sections 15 to 22 of this 2003 Act for a
calendar quarter beginning before July 1, 2007.
(2) Any moneys remaining in the Long Term Care Facility Quality
Assurance Fund on January 1, 2008, are transferred to the General
Fund. + }
SECTION 33. { + (1) As used in this section, 'waivered long
term care facilities' means continuing care retirement
communities, as defined in ORS 101.020, long term care facilities
that have been identified by the Department of Human Services as
having a Medicaid recipient census that exceeds the census level
established by the department and the Oregon Veterans' Home.
(2) On or before the effective date of this 2003 Act, the
department shall submit an application to the Centers for
Medicare and Medicaid Services to request a waiver of the
broad-based tax requirement pursuant to 42 C.F.R. 433.68(e) to
exempt waivered long term care facilities from the long term care
facility assessment imposed under section 16 of this 2003 Act.
The department shall ensure that the application requesting a
waiver meets the requirements of 42 C.F.R. 433.68(e)(1).
Enrolled House Bill 2747 (HB 2747-C) Page 7
(3) The department shall notify waivered long term care
facilities that the department has submitted the application to
the Centers for Medicare and Medicaid Services to request a
waiver of the broad-based tax requirement pursuant to 42 C.F.R.
433.68(e) to exempt waivered long term care facilities from the
long term care facility assessment imposed under section 16 of
this 2003 Act. While a decision on an application to request a
waiver is pending, the department may extend the period in which
a waivered long term care facility is required to file a return
and pay a long term care facility assessment. The period of
extension may not continue beyond a date that is 90 days
following the date of the denial of a waiver by the Centers for
Medicare and Medicaid Services.
(4) If an application to the Centers for Medicare and Medicaid
Services for a waiver of the broad-based tax requirement pursuant
to 42 C.F.R. 433.68(e) is denied, the Director of Human Services
may:
(a) Resubmit the application with appropriate changes to
receive a waiver of the broad-based tax requirements; or
(b) Submit an application to the Centers for Medicare and
Medicaid Services for a waiver of uniform tax requirements
pursuant to 42 C.F.R. 433.68(e). + }
SECTION 34. Section 18 of this 2003 Act is amended to read:
{ + Sec. 18. + } { + (1) + } The Oregon Veterans' Home is
exempt from the assessment imposed under section 16 of this 2003
Act.
{ + (2) A waivered long term care facility, as defined in
section 33 of this 2003 Act, is exempt from the long term care
facility assessment imposed under section 16 of this 2003
Act. + }
SECTION 35. { + (1) The amendments to section 18 of this 2003
Act by section 34 of this 2003 Act become operative on the day
after the date of receipt of the approval by the Centers for
Medicare and Medicaid Services of the waiver of the broad-based
tax requirement pursuant to 42 C.F.R. 433.68(e).
(2) The Director of Human Services shall notify the Legislative
Counsel upon receipt of the waiver or denial of the waiver
request. + }
SECTION 36. { + Section 33 of this 2003 Act is repealed on
January 2, 2008. + }
{ +
MEDICAID MANAGED CARE TAXES + }
SECTION 37. { + As used in sections 37 to 44 of this 2003 Act:
(1) 'Managed care premiums' means premium payments paid to a
prepaid managed care health services organization, but does not
include Medicare premiums.
(2) 'Prepaid managed care health services organization' or '
organization' means a managed health, dental, mental health or
chemical dependency organization that contracts with the
Department of Human Services on a prepaid capitated basis under
ORS 414.725. A prepaid managed care health services organization
may be a dental care organization, fully capitated health plan,
physician care organization, mental health organization or
chemical dependency organization. + }
SECTION 38. { + (1) An assessment is imposed on each prepaid
managed care health services organization in this state. The
assessment shall be imposed at a rate set by the Director of
Enrolled House Bill 2747 (HB 2747-C) Page 8
Human Services. The rate may not exceed six percent of managed
care premiums paid to an organization.
(2) The assessment shall be reported on a form prescribed by
the Department of Human Services and shall contain the
information required to be reported by the department. The
assessment form shall be filed with the department on or before
the 75th day following the end of the calendar quarter for which
the assessment is being reported. The organization shall pay the
assessment at the time the organization files the assessment
report. The payment shall accompany the report.
(3) A prepaid managed care health services organization is not
guaranteed that any additional moneys paid to the organization
shall equal or exceed the amount of the assessment paid by the
organization. + }
SECTION 39. { + Notwithstanding section 38 of this 2003 Act,
the Director of Human Services may reduce the rate of assessment
imposed under section 38 of this 2003 Act to the maximum rate
allowed under federal law if the reduction is required to comply
with federal law. + }
SECTION 40. { + (1) A prepaid managed care health services
organization that fails to file a report or pay an assessment
under section 38 of this 2003 Act by the date the report or
payment is due shall be subject to a penalty of $500 per day of
delinquency. The total amount of penalties imposed under this
section for each reporting period may not exceed five percent of
the assessment for the reporting period for which penalties are
being imposed.
(2) Penalties imposed under this section shall be collected by
the Department of Human Services and deposited in the Department
of Human Services Account established under ORS 409.060.
(3) Penalties paid under this section are in addition to and
not in lieu of the assessment imposed under section 38 of this
2003 Act. + }
SECTION 41. { + (1) A prepaid managed care health services
organization that has paid an amount that is not required under
sections 37 to 44 of this 2003 Act may file a claim for refund
with the Department of Human Services.
(2) Any organization that is aggrieved by an action of the
Department of Human Services or by an action of the Director of
Human Services taken pursuant to subsection (1) of this section
shall be entitled to notice and an opportunity for a contested
case hearing under ORS 183.310 to 183.550. + }
SECTION 42. { + The Department of Human Services may audit the
records of any organization in this state to determine compliance
with sections 37 to 44 of this 2003 Act. The department may audit
the records at any time for a period of five years following the
date an assessment is due to be reported and paid under section
38 of this 2003 Act. + }
SECTION 43. { + Amounts collected by the Department of Human
Services from the assessments under section 38 of this 2003 Act
shall be deposited in a suspense account established under ORS
293.445. Amounts necessary to pay refunds are continuously
appropriated to the department from the suspense account. After
the payment of refunds, the net amount of revenue shall be
transferred to the Medical Care Quality Assurance Fund
established under section 44 of this 2003 Act. + }
SECTION 44. { + (1) The Medical Care Quality Assurance Fund is
established in the State Treasury, separate and distinct from the
General Fund. Interest earned by the Medical Care Quality
Enrolled House Bill 2747 (HB 2747-C) Page 9
Assurance Fund shall be credited to the Medical Care Quality
Assurance Fund.
(2) Amounts in the Medical Care Quality Assurance Fund are
continuously appropriated to the Department of Human Services for
the purpose of funding the state medical assistance program,
including but not limited to health services provided by prepaid
managed care health services organizations. + }
SECTION 45. { + Sections 37 to 44 of this 2003 Act apply to
managed care premiums received by prepaid managed care health
services organizations on or after January 1, 2004, and before
January 1, 2008. + }
SECTION 46. { + (1) Section 38 of this 2003 Act becomes
operative on the day after the date of receipt of all necessary
federal approvals by the Centers for Medicare and Medicaid
Services.
(2) The Director of Human Services shall notify the Legislative
Counsel upon receipt of the necessary federal approvals or denial
of the federal approvals. + }
{ + NOTE: + } Section 47 was deleted by amendment. Subsequent
sections were not renumbered.
SECTION 48. { + Notwithstanding section 38 of this 2003 Act,
an assessment under section 38 of this 2003 Act need not be
reported and paid until 75 days after the date section 38 of this
2003 Act becomes operative under section 46 of this 2003 Act or
the date on which an assessment report and payment is due under
section 38 of this 2003 Act, whichever is later. + }
SECTION 49. { + Sections 37 to 44 of this 2003 Act are
repealed on January 2, 2010. + }
SECTION 50. { + Nothing in the repeal of sections 37 to 44 of
this 2003 Act by section 49 of this 2003 Act affects the
imposition and collection of a prepaid managed care health
services organization assessment under sections 37 to 44 of this
2003 Act for a calendar quarter beginning before January 1,
2008. + }
SECTION 51. { + Any moneys remaining in the Medical Care
Quality Assurance Fund on December 31, 2009, are transferred to
the General Fund. + }
{ +
TAXES ON PROGRAMS OF ALL-INCLUSIVE + }
{ +
CARE FOR ELDERLY PERSONS + }
SECTION 52. { + As used in sections 52 to 59 of this 2003 Act,
' program of all-inclusive care for elderly persons' or '
program' means a program offering long term care services and
medical, dental, mental health and social services to persons 55
years of age and older on a capitated basis that features a
comprehensive service delivery system and integrated Medicare and
Medicaid financing. + }
SECTION 53. { + (1) An assessment is imposed on each program
of all-inclusive care for elderly persons in this state. The
assessment shall equal five percent of the total capitation rate
paid by the Department of Human Services under a program
contract.
(2) The assessment shall be reported on a form prescribed by
the Department of Human Services and shall contain the
information required to be reported by the department. The
assessment form shall be filed with the department on or before
the 75th day following the end of the calendar quarter for which
Enrolled House Bill 2747 (HB 2747-C) Page 10
the assessment is being reported. The program provider shall pay
the assessment at the time the provider files the assessment
report. The payment shall accompany the report. + }
SECTION 54. { + Notwithstanding section 53 of this 2003 Act,
the Director of Human Services may reduce the rate of assessment
imposed under section 53 of this 2003 Act to the maximum rate
allowed under federal law if the reduction is required to comply
with federal law. + }
SECTION 55. { + (1) A provider of a program of all-inclusive
care for elderly persons that fails to file a report or pay an
assessment under section 53 of this 2003 Act by the date the
report or payment is due shall be subject to a penalty of $500
per day of delinquency. The total amount of penalties imposed
under this section for each reporting period may not exceed five
percent of the assessment for the reporting period for which
penalties are being imposed.
(2) Penalties imposed under this section shall be collected by
the Department of Human Services and deposited in the Department
of Human Services Account established under ORS 409.060. + }
SECTION 56. { + (1) A provider of a program of all-inclusive
care for elderly persons that has paid an amount that is not
required under sections 52 to 59 of this 2003 Act may file a
claim for refund with the Department of Human Services.
(2) Any provider of a program that is aggrieved by an action of
the Department of Human Services or by an action of the Director
of Human Services taken under sections 52 to 59 of this 2003 Act
shall be entitled to notice and an opportunity for a contested
case hearing under ORS 183.310 to 183.550. + }
SECTION 57. { + (1) Unless otherwise exempt, a provider of a
program of all-inclusive care for elderly persons shall report
the payment of the assessment as an allowable cost for Medicaid
reimbursement purposes.
(2) The Department of Human Services may audit the records of
any program of all-inclusive care for elderly persons in this
state to determine compliance with sections 52 to 59 of this 2003
Act. The department may audit records at any time for a period of
five years following the date an assessment is due to be reported
and paid under section 53 of this 2003 Act. + }
SECTION 58. { + Amounts collected by the Department of Human
Services from the assessment under section 53 of this 2003 Act
shall be deposited in a suspense account established under ORS
293.445. Amounts necessary to pay refunds are continuously
appropriated to the department from the suspense account. After
the payment of refunds, the net amount of revenue shall be
transferred to the PACE Quality Assurance Fund established under
section 62 of this 2003 Act. + }
SECTION 59. { + Sections 52 to 59 of this 2003 Act apply to
capitation rates paid for programs of all-inclusive care for
elderly persons for calendar months beginning on or after the
effective date of this 2003 Act and before July 1, 2007. + }
SECTION 60. { + Sections 52 to 59 of this 2003 Act are
repealed on January 2, 2008. + }
SECTION 61. { + Nothing in the repeal of sections 52 to 59 of
this 2003 Act by section 60 of this 2003 Act affects the
imposition and collection of a program of all-inclusive care for
elderly persons assessment under sections 52 to 59 of this 2003
Act for a calendar month beginning before July 1, 2007. + }
SECTION 62. { + (1) The PACE Quality Assurance Fund is
established in the State Treasury, separate and distinct from the
Enrolled House Bill 2747 (HB 2747-C) Page 11
General Fund. Interest earned by the PACE Quality Assurance Fund
shall be credited to the PACE Quality Assurance Fund.
(2) Amounts in the PACE Quality Assurance Fund are continuously
appropriated to the Department of Human Services for the purpose
of funding programs of all-inclusive care for elderly persons, as
defined in section 52 of this 2003 Act, that are a part of the
Oregon Medicaid reimbursement system. + }
SECTION 62a. { + Any moneys remaining in the PACE Quality
Assurance Fund on December 31, 2009, are transferred to the
General Fund. + }
SECTION 63. { + (1) Section 53 of this 2003 Act becomes
operative on the day after the date of receipt of all necessary
federal approvals by the Centers for Medicare and Medicaid
Services.
(2) The Director of Human Services shall notify the Legislative
Counsel upon receipt of the necessary federal approvals or denial
of the federal approvals. + }
{ +
CONFLICTS + }
SECTION 64. If House Bill 2152 become law, sections 72, 73, 74,
75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90,
91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103, 104, 105,
106, 107, 108 and 109, chapter ___, Oregon Laws 2003 (Enrolled
House Bill 2152), are repealed.
SECTION 64a. { + Notwithstanding section 27, chapter ___,
Oregon Laws 2003 (Enrolled Senate Bill 231) (amending section 96,
chapter ___, Oregon Laws 2003 (Enrolled House Bill 2152)), if
Senate Bill 231 becomes law, section 96, chapter ___, Oregon Laws
2003 (Enrolled House Bill 2152), is repealed. + }
SECTION 64b. { + Notwithstanding section 28, chapter ___,
Oregon Laws 2003 (Enrolled Senate Bill 231) (amending section 97,
chapter ___, Oregon Laws 2003 (Enrolled House Bill 2152)), if
Senate Bill 231 becomes law, section 97, chapter ___, Oregon Laws
2003 (Enrolled House Bill 2152), is repealed. + }
SECTION 64c. { + Notwithstanding section 29, chapter ___,
Oregon Laws 2003 (Enrolled Senate Bill 231) (amending section
106, chapter ___, Oregon Laws 2003 (Enrolled House Bill 2152)),
if Senate Bill 231 becomes law, section 106, chapter ___, Oregon
Laws 2003 (Enrolled House Bill 2152), is repealed. + }
SECTION 64d. { + Notwithstanding section 30, chapter ___,
Oregon Laws 2003 (Enrolled Senate Bill 231) (amending section
101, chapter ___, Oregon Laws 2003 (Enrolled House Bill 2152)),
if Senate Bill 231 becomes law, section 101, chapter ___, Oregon
Laws 2003 (Enrolled House Bill 2152), is repealed. + }
{ + NOTE: + } Sections 65 through 74 were deleted by
amendment. Subsequent sections were not renumbered.
{ +
INCOME TAXES + }
{ +
(Film Production Development Contribution Credit) + }
SECTION 75. { + Section 76 of this 2003 Act is added to and
made a part of ORS chapter 315. + }
SECTION 76. { + (1) A credit against the taxes that are
otherwise due under ORS chapter 316 or, if the taxpayer is a
corporation, under ORS chapter 317 or 318, is allowed to a
taxpayer for certified film production development contributions
Enrolled House Bill 2747 (HB 2747-C) Page 12
made by the taxpayer during the tax year to the Oregon Production
Investment Fund established under section 79 of this 2003 Act.
(2)(a) The amount of the tax credit shall equal the amount
certified for credit by the Oregon Film and Video Office, except
that a contribution must equal at least 90 percent of the tax
credit.
(b) The Oregon Film and Video Office shall adopt rules for
determining the amount of tax credit to be certified by the
office. The rules shall be adopted in order to achieve the
following goals:
(A) Subject to paragraph (a) of this subsection, generate
contributions for which tax credits of $1 million are certified
for each fiscal year;
(B) Maximize income and excise tax revenues that are retained
by the State of Oregon for state operations; and
(C) Provide the necessary financial incentives for taxpayers to
make contributions, taking into consideration the impact of
granting a credit upon a taxpayer's federal income tax liability.
(3) A taxpayer seeking a tax credit under this section shall
apply for tax credit certification to the Oregon Film and Video
Office on a form supplied by the office. The taxpayer shall
include payment of the contribution at the time of application.
(4) Contributions made under this section shall be deposited in
the Oregon Production Investment Fund.
(5)(a) Upon receipt of a contribution, the Oregon Film and
Video Office shall issue to the taxpayer written certification of
the amount certified for tax credit under this section to the
extent the amount certified for tax credit, when added to all
amounts previously certified for tax credit under this section,
does not exceed $1 million for the fiscal year in which
certification is made.
(b) The Oregon Film and Video Office is not liable, and a
refund of a contributed amount need not be made, if a taxpayer
who has received tax credit certification is unable to use all or
a portion of the tax credit to offset the tax liability of the
taxpayer.
(6) To the extent the Oregon Film and Video Office does not
certify contributed amounts as eligible for a tax credit under
this section, the taxpayer may request a refund of the amount the
taxpayer contributed, and the office shall refund that amount.
(7)(a) Except as provided in paragraph (b) of this subsection,
a tax credit claimed under this section may not exceed the tax
liability of the taxpayer and may not be carried over to another
tax year.
(b) Any tax credit otherwise allowable under this section that
is not used by the taxpayer in a particular tax year may be
carried forward and offset against the taxpayer's tax liability
for the next succeeding tax year. Any credit remaining unused in
the next succeeding tax year may be carried forward and used in
the second succeeding tax year, and likewise, any credit not used
in that second succeeding tax year may be carried forward and
used in the third succeeding tax year but may not be carried
forward for any tax year thereafter.
(8) If a tax credit is claimed under this section by a
nonresident or part-year resident taxpayer, the amount shall be
allowed without proration under ORS 316.117.
(9) A taxpayer who has received a tax credit certificate under
this section may sell the certificate to another taxpayer. The
sale is effective only if a notice of tax credit certificate sale
is filed with the Department of Revenue. The notice shall be
Enrolled House Bill 2747 (HB 2747-C) Page 13
filed on a form prescribed by the department on or before the
date on which the income or corporate excise tax return of the
buyer for the first year for which the credit could be claimed is
filed or due, whichever is earlier. The notice form shall include
the following information:
(a) The name and taxpayer identification number of the seller;
(b) The name and taxpayer identification number of the buyer;
(c) The amount of the tax credit certificate that is being sold
to the buyer;
(d) The amount of the tax credit certificate that is being
retained by the seller; and
(e) Any other information required by the department.
(10) If requested by the Department of Revenue, the Oregon Film
and Video Office shall supply a list of taxpayers that have
obtained tax credit certification under this section, and for
each listed taxpayer disclose:
(a) The amount of contribution made by the taxpayer; and
(b) The amount certified for tax credit under this section.
(11) If the amount of contribution for which a tax credit
certification is made is allowed as a deduction for federal tax
purposes, the amount of the contribution shall be added to
federal taxable income for Oregon tax purposes. + }
SECTION 77. { + Section 76 of this 2003 Act applies to tax
years beginning on or after January 1, 2005, and to tax credit
certifications issued by the Oregon Film and Video Office on or
after July 1, 2005. + }
SECTION 78. { + Sections 79 to 81 of this 2003 Act are added
to and made a part of ORS 284.300 to 284.375. + }
SECTION 79. { + (1) The Oregon Production Investment Fund is
established in the State Treasury, separate and distinct from the
General Fund. Interest earned by the Oregon Production Investment
Fund shall be credited to the fund.
(2) Moneys in the Oregon Production Investment Fund shall
consist of:
(a) Amounts donated to the fund;
(b) Amounts appropriated or otherwise transferred to the fund
by the Legislative Assembly;
(c) Other amounts deposited in the fund from any source; and
(d) Interest earned by the fund.
(3) All moneys in the fund are continuously appropriated to the
Economic and Community Development Department for the purposes of
making:
(a) Reimbursements authorized under section 80 of this 2003
Act;
(b) Payments to a tax credit marketer for marketing services
provided by the marketer as described in section 81 of this 2003
Act; and
(c) Refunds described in section 76 (6) of this 2003 Act.
(4) Expenditures from the fund are not subject to ORS 291.232
to 291.260. + }
SECTION 80. { + (1) As used in this section:
(a) 'Actual expenses' means the costs paid in Oregon for
principal photography, production or postproduction in Oregon of
a film, including but not limited to the purchase or rental cost
of equipment, food, lodging, real property and permits and
payments made for salaries, wages and benefits for work in
Oregon. + } { +
(b) 'Film' means a television movie or one or more episodes of
a single television series, or a movie produced for release to
theaters, video or the Internet. 'Film' does not include the
Enrolled House Bill 2747 (HB 2747-C) Page 14
production of a commercial or one or more segments of a newscast
or sporting event.
(2)(a) The Economic and Community Development Department may
reimburse a bona fide television or film production company for a
portion of the actual expenses paid in Oregon by the television
or film production company to produce a film.
(b) Maximum reimbursement for a single film, other than a
television series, shall be 10 percent of actual expenses paid or
$250,000, whichever is less. Maximum reimbursement for one or
more episodes of a television series shall be 10 percent of
actual expenses paid or $30,000 per episode produced in Oregon,
whichever is less.
(c) In order to qualify for reimbursement under this section,
total actual expenses paid for the film must equal or exceed $1
million.
(d) Reimbursement under this section shall be made from moneys
credited to or deposited in the Oregon Production Investment Fund
during the biennium in which the actual expenses were paid or any
prior biennium. A reimbursement may not be made to the extent
funds are not available in the fund to make the reimbursement.
(3)(a) Total actual expenses supporting a claim for
reimbursement under this section must be verified by the Oregon
Film and Video Office. The production company must submit to the
office proof of the actual expenses paid in Oregon to produce the
film. The proof must include any documentation that may be
required by the office in its discretion to verify the actual
expenses.
(b) The office may charge the production company for costs
reasonably incurred to verify the actual expenses, including but
not limited to the cost for a review or audit of the supporting
documentation by an accountant or auditor. The office may require
the department to deduct the costs incurred by the office in
performing its review or audit from any reimbursement made to the
production company under this section.
(c) The office may adopt rules that establish a procedure for
the submission and verification of actual expenses. + }
SECTION 81. { + The Oregon Film and Video Office may hire or
contract with a marketer to market the tax credits described in
section 76 of this 2003 Act to taxpayers. + }
SECTION 82. { + Reimbursement may be made under section 80 of
this 2003 Act only for actual expenses paid by a television or
film production company on or after January 1, 2005. + }
{ +
(Miscellaneous) + }
SECTION 83. If House Bill 2152 becomes law, section 4, chapter
___, Oregon Laws 2003 (Enrolled House Bill 2152), is amended to
read:
{ + Sec. 4. + }(1) For tax years beginning on or after
January 1, 2003, and before January 1, 2005, each person subject
to tax under this chapter shall compute and pay an assessment.
The assessment shall be a percentage of the tax liability of the
taxpayer and shall be added to the tax otherwise imposed under
this chapter for the tax year. The rate of the assessment is as
follows:
(a) If the federal adjusted gross income of the taxpayer for
the tax year is less than $10,000, an assessment may not be
imposed.
Enrolled House Bill 2747 (HB 2747-C) Page 15
(b) If the federal adjusted gross income of the taxpayer for
the tax year is $10,000 or more, but less than $20,000, the
assessment shall equal 1 percent of the tax liability of the
taxpayer.
(c) If the federal adjusted gross income of the taxpayer for
the tax year is $20,000 or more, but less than $25,000, the
assessment shall equal 2 percent of the tax liability of the
taxpayer.
(d) If the federal adjusted gross income of the taxpayer for
the tax year is $25,000 or more, but less than $30,000, the
assessment shall equal 3 percent of the tax liability of the
taxpayer.
(e) If the federal adjusted gross income of the taxpayer for
the tax year is $30,000 or more, but less than $35,000, the
assessment shall equal 4 percent of the tax liability of the
taxpayer.
(f) If the federal adjusted gross income of the taxpayer for
the tax year is $35,000 or more, but less than $50,000, the
assessment shall equal 5 percent of the tax liability of the
taxpayer.
(g) If the federal adjusted gross income of the taxpayer for
the tax year is $50,000 or more, but less than $70,000, the
assessment shall equal 6 percent of the tax liability of the
taxpayer.
(h) If the federal adjusted gross income of the taxpayer for
the tax year is $70,000 or more, but less than $90,000, the
assessment shall equal 7 percent of the tax liability of the
taxpayer.
(i) If the federal adjusted gross income of the taxpayer for
the tax year is $90,000 or more, but less than $120,000, the
assessment shall equal 8 percent of the tax liability of the
taxpayer.
(j) If the federal adjusted gross income of the taxpayer for
the tax year is $120,000 or more, the assessment shall equal 9
percent of the tax liability of the taxpayer.
(2) The assessment is in addition to and not in lieu of any
other tax. For all purposes of administration, collection and
enforcement, the assessment imposed under this section shall be
considered a tax imposed on income.
(3) For purposes of subsection (1) of this section:
(a) The amounts of the federal adjusted gross income brackets
are doubled for a taxpayer who files a joint return, a return as
a head of household or a return as a surviving spouse.
(b) The tax liability of the taxpayer is the tax computed for
the tax year under this chapter before application of this
section less credits allowed for purposes of this chapter except
that no reduction is made for the credit allowed under ORS
{ + 315.068 or + } 315.262.
SECTION 84. If House Bill 2152 becomes law, section 5, chapter
___, Oregon Laws 2003 (Enrolled House Bill 2152), is amended to
read:
{ + Sec. 5. + }(1) This section applies only if the
projected ending fund balance for the General Fund for the
biennium beginning July 1, 2003, as estimated by the Office of
Economic Analysis of the Oregon Department of Administrative
Services in the December 2004 quarterly economic and revenue
forecast, is less than four percent of the total amount of
General Fund appropriations for the biennium beginning July 1,
2003.
Enrolled House Bill 2747 (HB 2747-C) Page 16
(2) For tax years beginning on or after January 1, 2005, and
before January 1, 2006, each person subject to tax under this
chapter shall compute and pay an assessment. The assessment shall
be a percentage of the tax liability of the taxpayer, and shall
be added to the tax otherwise imposed under this chapter for the
tax year. The rate of the assessment is as follows:
(a) If the federal adjusted gross income of the taxpayer for
the tax year is less than $10,000, an assessment may not be
imposed.
(b) If the federal adjusted gross income of the taxpayer for
the tax year is $10,000 or more, but less than $20,000, the
assessment shall equal 1 percent of the tax liability of the
taxpayer.
(c) If the federal adjusted gross income of the taxpayer for
the tax year is $20,000 or more, but less than $25,000, the
assessment shall equal 2 percent of the tax liability of the
taxpayer.
(d) If the federal adjusted gross income of the taxpayer for
the tax year is $25,000 or more, but less than $30,000, the
assessment shall equal 3 percent of the tax liability of the
taxpayer.
(e) If the federal adjusted gross income of the taxpayer for
the tax year is $30,000 or more, but less than $35,000, the
assessment shall equal 4 percent of the tax liability of the
taxpayer.
(f) If the federal adjusted gross income of the taxpayer for
the tax year is $35,000 or more, but less than $50,000, the
assessment shall equal 5 percent of the tax liability of the
taxpayer.
(g) If the federal adjusted gross income of the taxpayer for
the tax year is $50,000 or more, but less than $70,000, the
assessment shall equal 6 percent of the tax liability of the
taxpayer.
(h) If the federal adjusted gross income of the taxpayer for
the tax year is $70,000 or more, but less than $90,000, the
assessment shall equal 7 percent of the tax liability of the
taxpayer.
(i) If the federal adjusted gross income of the taxpayer for
the tax year is $90,000 or more, but less than $120,000, the
assessment shall equal 8 percent of the tax liability of the
taxpayer.
(j) If the federal adjusted gross income of the taxpayer for
the tax year is $120,000 or more, the assessment shall equal 9
percent of the tax liability of the taxpayer.
(3) The assessment is in addition to and not in lieu of any
other tax. For all purposes of administration, collection and
enforcement, the assessment imposed under this section shall be
considered a tax imposed on income.
(4) For purposes of subsection (2) of this section:
(a) The amounts of the federal adjusted gross income brackets
are doubled for a taxpayer who files a joint return, a return as
a head of household or a return as a surviving spouse.
(b) The tax liability of the taxpayer is the tax computed for
the tax year under this chapter before application of this
section less credits allowed for purposes of this chapter except
that no reduction is made for the credit allowed under ORS
{ + 315.068 or + } 315.262.
SECTION 85. If House Bill 2152 becomes law, section 31, chapter
___, Oregon Laws 2003 (Enrolled House Bill 2152), is amended to
read:
Enrolled House Bill 2747 (HB 2747-C) Page 17
{ + Sec. 31. + }(1) Every S corporation doing business in
this state shall pay annually to the state, for the privilege of
carrying on or doing business within this state, a minimum tax as
follows:
(a) If the S corporation has Oregon sales for the tax year of
less than $1 million, $250.
(b) If the S corporation has Oregon sales for the tax year of
$1 million or more, $500.
(2) The minimum tax is not apportionable, except in the case of
a change of accounting periods. The minimum tax is payable in
full for any part of a year during which an S corporation
conducts business in this state.
(3) The minimum tax shall be due and payable on or before the
15th day of the month following the { - close of - } { + due
date of the federal return of the S corporation for + } the tax
year, and shall be reported and paid in the manner prescribed by
the Department of Revenue by rule.
(4) The minimum tax shall be considered a tax imposed on
taxable income for all purposes of collection and enforcement.
(5) As used in this section, 'Oregon sales' means:
(a) If the S corporation apportions business income under ORS
314.650 to 314.665 for Oregon tax purposes, the total sales of
the taxpayer during the tax year, as determined for purposes of
ORS 314.665;
(b) If the S corporation does not apportion business income for
Oregon tax purposes, the total sales the taxpayer would have had,
as determined for purposes of ORS 314.665, if the taxpayer were
required to apportion business income for Oregon tax purposes; or
(c) If the S corporation apportions income using a method
different than that prescribed by ORS 314.650 to 314.665, Oregon
sales as defined by the Department of Revenue by rule.
{ +
CAPTIONS + }
SECTION 86. { + The unit captions used in this 2003 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2003 Act. + }
{ +
EFFECTIVE DATE + }
SECTION 87. { + This 2003 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-second
Legislative Assembly adjourns sine die. + }
----------
Enrolled House Bill 2747 (HB 2747-C) Page 18
Passed by House June 6, 2003
Repassed by House August 27, 2003
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate August 26, 2003
...........................................................
President of Senate
Enrolled House Bill 2747 (HB 2747-C) Page 19
Received by Governor:
......M.,............., 2003
Approved:
......M.,............., 2003
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2003
...........................................................
Secretary of State
Enrolled House Bill 2747 (HB 2747-C) Page 20