An Act To Ensure Equal Tax Treatment for Private-pay and MaineCare-participating Providers of Residential Care to Persons Who Are Elderly or Disabled
Maine Legislature, Session 125, LD 1641
Committee: Taxation
Sponsors: HARMON, RAYE, CUSHING, NUTTING, STRANG BURGESS, COURTNEY, CRAVEN, SNOWE-MELLO, THIBODEAU
Amends: 36 MRSA §2551

Legislative Document 
No. 1641 
H.P. 1231 
House of Representatives, December 20, 2011 
An Act To Ensure Equal Tax Treatment for Private-pay and 
MaineCare-participating Providers of Residential Care to Persons 
Who Are Elderly or Disabled 
(EMERGENCY) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Received by the Clerk of the House on December 16, 2011.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative HARMON of Palermo. 
Cosponsored by President RAYE of Washington and 
Representatives: CUSHING of Hampden, Speaker NUTTING of Oakland, STRANG 
BURGESS of Cumberland, Senators: COURTNEY of York, CRAVEN of Androscoggin, 
McCORMICK of Kennebec, SNOWE-MELLO of Androscoggin, THIBODEAU of Waldo. 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, facilities that provide residential care services to persons who are elderly 
or disabled that do not participate in the MaineCare program are not subject to the State's 
service provider tax; and 
Whereas, the service provider tax is imposed on providers of residential care 
services to persons who are elderly or disabled that do participate in the MaineCare 
program and those providers are therefore classified as private nonmedical institutions 
both for MaineCare purposes and for determining whether the service provider tax 
applies; and 
Whereas, the result of this taxation arrangement is that those providers of residential 
care services to persons who are elderly or disabled without certain specific diagnoses 
that participate in the MaineCare program are subjected to a tax that increases their 
operating costs as compared to the costs of similar facilities that do not accept 
MaineCare-eligible residents and interferes with their ability to provide needed services; 
and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §2551, sub-§10, as amended by PL 2007, c. 438, §53, is 
further amended to read: 
10.  Private nonmedical institution.  "Private nonmedical institution" means a 
person licensed by the Department of Health and Human Services to provide private 
nonmedical institution services to 4 or more MaineCare-eligible and other residents in 
single or multiple facilities under a written agreement with the Department of Health and 
Human Services on a noncase mix basis that specializes in the treatment of specific 
diagnoses such as acquired brain injury, human immunodeficiency virus, Acquired 
Immune Deficiency Syndrome, mental retardation or blindness.  "Private nonmedical 
institution" does not include a health insurance organization, hospital, nursing home or 
community health care center. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill excludes from the service provider tax private nonmedical institutions that 
provide services reimbursed under MaineCare for persons who are elderly or disabled 
without specializing in a particular diagnosis.