An Act To Restore the Health Care Provider Tax for Nursing Homes to 6 Percent
Maine Legislature, Session 125, LD 1016
Committee Amendment CA_A_H649 (House)
Amends: 36 MRSA §2872, 36 MRSA §2873

COMMITTEE AMENDMENT "R" to H.P. 752, L.D. 1016, Bill, "An Act To 
Restore the Health Care Provider Tax for Nursing Homes to 6 Percent" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Restore the Health Care Provider Tax to 6 Percent' 
Amend the bill by inserting after the enacting clause and before section 1 the 
following: 
'Sec. 1. 36 MRSA §2872, sub-§l, ,C, as amended by PL 2007, c. 539, Pt. X, § 1, 
is further amended to read: 
C. 
For whole or partial facility fiscal years beginning on or after July 1,2003 and 
before January 1, 2008, the tax imposed against each residential treatment facility is 
equal to 6% of its annual gross patient services revenue for the corresponding whole 
or partial facility fiscal year; aad 
Sec. 2. 36 MRSA §2872, sub-§l,~, as enacted by PL 2007, c. 539, Pt. X, §1, is 
amended to read: 
D. Beginning For whole or partial facility fiscal years beginning on or after January 
1, 2008 for any partial faeility fiseal year and for whole faeility fiseal years beginning 
on or after January 1,2008 and before October 1, 2011, the tax imposed against each 
residential treatment facility is equal to 5.5% of its annual gross patient services 
revenue for the corresponding whole or partial facility fiscal year~; and 
Sec. 3. 36 MRSA §2872, sub-§l, ~ 
is enacted to read: 
E. Beginning October I, 2011 for any partial facility fiscal year and for whole 
facility fiscal years beginning on or after October 1, 2011, the tax imposed against 
each residential treatment facility is equal to 6% of its annual gross patient services 
revenue for the corresponding whole or partial facility fiscal year.' 
Amend the bill by striking out all of section 4 and inserting the following: 
COMMITTEE AMENDMENT 
.j. ~. 
~. 
COMMITTEE AMENDMENT" R" to H.P. 752, L.D. 1016 
'Sec. 4. 36 MRSA §2873, sub-§4, as enacted by PL 2001, c. 714, Pt. CC, §3 and 
affected by §8 and amended by PL 2003, c. 689, Pt. B, §§6 and 7, is further amended to 
read: 
4. Application of revenues. Revenues derived by the tax. imposed by this chapter 
must be credited to a General Fund suspense account. On the last day of each month, the 
State Controller shall make the following transfers: 
A. 
All revenues received by the assessor during the month pursuant to this chapter 
from nursing homes net of refunds must be credited to the Nursing Facilities Other 
Special Revenue funds account in the Department of Health and Human Services. 
The Commissioner of Health and Human Services is authorized to make nl'lenue 
transfers from the Nursing Facilities Other Special Revenue funds account to the 
Medical Care Payments to Providers Other Special Revenue funds account and the 
Long Term Care Human Services Other Special R~venue funds aCCOlH:lt in amounts 
not to exceed legislative allecations in any fiscal year Beginning October 1, 2011, the 
revenues received in each fiscal year that result from the increase in the tax rate from 
5.5% to 6% pursuant to section 2872, subsection 1, paragraph E must be applied first 
to reimburse nursing homes for the MaineCare portion of the increased tax expense, 
and all remaining revenue resulting from the increase must be applied to provide 
cost-of-living increases to MaineCare reimbursement to nursing homes and to 
medical and remedial private nonmedical institutions that are reimbursed room and 
board costs and certain other allowable costs under rules adopted by the Department 
of Health and Human Services. These rules must use a methodology that provides a 
cost-of-living increase that ensures that such nursing facilities and medical and 
remedial private nonmedical institutions receive a share of the revenues through 
MaineCare reimbursement of allowable costs; and 
B. 
All revenues received by the assessor during the month pursuant to this chapter 
from residential treatment facilities net of refunds must be credited to the Residential 
Treatment Facilities Assessment Other Special Revenue funds account in the 
Department of Health and Human Services. Beginning October 1,2011, a percentage 
equal to the State's annual Federal Medical Assistance percentage of the revenues 
generated by the increase in the tax. rate from 5.5% to 6% received by the assessor 
during the month must be credited to an Other Special Revenue Funds account in the 
Department of Health and Human Services, Developmental Services Waiver -
Supports program and all revenues credited to that account must be applied to 
providing services to individuals on the waiting list for the community support 
benefit provided under a federal 1915(c) waiver under the MaineCare Benefits 
Manual, Chapter II, Section 29. The balance must be credited to an Other Special 
Revenue Funds account in the Department of Health and Human Services, Medicaid 
Services - Developmental Services program. 
Notwithstanding the provisions of Public Law 2007, chapter 240, Part X, section 2, 
Public Law 2009, chapter 213, Part SSSS, section 1 or any other provision of law, any 
available balances in the accounts under this subsection may not be transferred between 
accounts by financial order or otherwise. 
Sec. 5. Appropriations and allocations. The following appropriations and 
allocations are made. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT"~ "to H.P. 752, L.D. 1016 
HEALTH AND HUMAN SERVICES, DEPARTMENT OF (FORMERLY DHS) 
Developmental Services Waiver - Supports Z006 
Initiative: Allocates funds from the increase in the residential treatment facilities 
assessment to be used for services to individuals on the waiting list for the waiver. 
FEDERAL EXPENDITURES FUND 
All Other 
FEDERAL EXPENDITURES FUND TOTAL 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
2011-12 
$139,230 
$139,230 
2011-12 
$80,376 
$80,376 
2012-13 
$184,225 
$184,225 
2012-13 
$106,948 
$106,948 
Medicaid Services - Developmental Services 0705 
Initiative: Allocates funds for increased costs resulting from the increase in the residential 
treatment facilities assessment. 
FEDERAL EXPENDITURES FUND 
All Other 
FEDERAL EXPENDITURES FUND TOTAL 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
Nursing Facilities 0148 
2011-12 
$80,376 
$80,376 
2011-12 
$46,400 
$46,400 
2012-13 
$106,948 
$106,948 
2012-13 
$62,086 
$62,086 
Initiative: Allocates funds for increased nursing facility costs resulting from the increase 
in the nursing facility tax. 
FEDERAL EXPENDITURES FUND 
All Other 
FEDERAL EXPENDITURES FUND TOTAL 
2011-12 
$1,400,717 
$1,400,717 
COMMITTEE AMENDMENT 
2012-13 
$1,863,793 
$1,863,793 
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I 
COMMITTEE AMENDMENT ,/1 "to H.P. 752, L.D. 1016 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
Nursing Facilities 0148 
2011-12 
$517,514 
$517,514 
2012-13 
$692,470 
$692,470 
Initiative: Allocates funds for cost-of-living increases to MaineCare reimbursement to 
nursing facilities and to medical and remedial private nonmedical institutions that are 
reimbursed room and board costs. 
FEDERAL EXPENDITURES FUND 
All Other 
FEDERAL EXPENDITURES FUND TOTAL 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
HEALTH AND HUMAN SERVICES, 
DEPARTMENT OF (FORMERLY DHS) 
DEPARTMENT TOTALS 
FEDERAL EXPENDITURES FUND 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL-ALL FUNDS 
2011-12 
$2,930,636 
$2,930,636 
2011-12 
$1,691,818 
$1,691,818 
2011-12 
$4,550,959 
$2,336,108 
$6,887,067 
2012-13 
$3,881,479 
$3,881,479 
2012-13 
$2,253,307 
$2,253,307 
2012-13 
$6,036,445 
$3,114,811 
$9,151,256 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutiVely. 
SUMMARY 
This amendment provides an increase in the provider tax rate applicable to residential 
treatment facilities from 5.5% to 6%, consistent with applicable federal requirements, in 
addition to the increase provided for nursing homes in the bill. It requires that the rules 
for the cost-of-living adjustment, to which all revenues related to the incremental increase 
for nursing homes must be applied, use a methodology that provides a cost-of-living 
increase that ensures that such nursing facilities and medical and remedial private 
nonmedical institutions receive a share of the revenues through MaineCare 
reimbursement of allowable costs. It requires that all revenues generated by the increase 
in the tax rate applicable to residential treatment facilities be applied to providing services 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 752, L.D. 1016 
to individuals on the waiting list for the community support benefit waiver under the 
MaineCare Benefits Manual, Chapter II, Section 29. 
The amendment also adds an 
appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 06/13111 
;:t!??ac 
LD 1016 
LR 920(02) 
An Act To Restore the Health Care Provider Tax for Nursing Homes to 6 Percent 
Fiscal Note for Bill as Amended by Committee Amendment '4" 
Committee: Taxation 
_ 
Appropriations/Allocations 
Federal Expenditures Fund 
Other Special Revenue Funds 
Revenue 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2011-12 
$4,550,959 
$2,336,108 
$2,336,108 
FY 2012-13 
$6,036,445 
$3,114,811 
$3,114,811 
Projections 
FY 2013-14 
$6,036,445 
$3,114,811 
$3,014,811 
Projections 
FY 2014-15 
$6,036,445 
$3,114,811 
$3,114,811 
Provides increased Other Special Revenue Funds and Federal Expenditure Fund allocations for MaineCare cost-of-
living increases for nursing facilities with the state share of the costs funded by revenue from an increase in the 
nursing facilities tax rate from 5.5 to 6.0% beginning October 1,2011. Provides increased allocations for MaineCare 
services to individuals on the waiting list for the Developmental Services Waiver - Supports program with the state 
share of the costs funded by revenue from an increase in the Residential Treatment Facilities tax rate from 5.5% to 
6.0% effective October 1, 2011. Also provides increased allocations for increased nursing facility and residential 
treatment facility costs resulting from the increase in the nursing facility and the residential treatment facilities tax 
rate. 
LR0920(02) - Fiscal Note - Page 1 of 1