An Act To Align Costs Recognized for Transfer of Nursing Facilities and Residential Care Facilities with Ordinary Commercial and Government Contracting Standards
Maine Legislature, Session 126, LD 0538
Committee Amendment CA_B_H837 (House)
Amends: 22 MRSA §3175-D, 22 MRSA §7861

COMMITTEE AMENDMENT ·B" to H.P. 357, L.D. 538, Bill, "An Act To Align 
Costs Recognized for Transfer of Nursing Facilities and Residential Care Facilities with 
Ordinary Commercial and Government Contracting Standards" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 22 MRSA §3175-D, sub-§2 is enacted to read: 
2. Methodology. Beginning with the sale of a nursing facility that occurs on or after 
July 1, 2014, or such other date as approved by the United States Department of Health 
and Human Services, Centers for Medicare and Medicaid Services, the department shall 
calculate depreciation recapture using a methodology that provides percentage credits for 
buildings, fixed equipment and moveable equipment based on the number of years of 
operation by the owner of the nursing facility that is consistent with the following: 
A. F or the purposes of determining depreciation recapture for buildings and fixed 
equipment, the methodology must determine the number of years of operation by 
reference to the date on which the owner began operating with the original license; 
B. For the purposes of determining depreciation recapture for moveable equipment, 
the methodology must enable percentage credits to reach 100% after the first 6 years 
of the assigned useful life; and 
C. The methodology must treat as equivalent to the owner of the nursing facility any 
person or entity that owns or controls the entity that owns the nursing facility and any 
entity that is owned or controlled by the owner of the nursing facility. 
Sec. 2. 22 MRSA §7861, sub-§§2 and 3, as enacted by PL 2001, c. 596, Pt. A, 
§ 1 and affected by Pt. B, §25, are amended to read: 
2. 
Compliance with standards and guidelines. 
Reviewing the compliance of 
assisted housing programs with standards and guidelines established for the programs; 
and 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ,:i;" to H.P. 357, L.D. 538 
3. Awarding of grants. Awarding of grants, when available and necessary, to 
subsidize the cost of assisted housing programs for eligible clients. 
For the purposes of this subsection, "eligible clients" means adults who have been 
determined through an approved assessment by the department to be functionally or 
cognitively impaired and in need of financial assistance to access assisted housing 
programs~; and 
Sec. 3. 22 MRSA §7861, suh-§4 is enacted to read: 
4. Residential care facility depreciation. Calculating depreciation recapture for a 
residential care facility, as defined in section 7852, subsection 14, that is reimbursed by 
the department under the rules of reimbursement for room and board costs, including 
depreciation, when the facility is sold on or after July 1, 2013, using a methodology that 
provides percentage credits for buildings, fixed equipment and moveable equipment 
based on the number of years of operation of the residential care facility by the owner that 
is consistent with the following: 
A. For the purposes of determining depreciation recapture for buildings and fixed 
equipment, the methodology must determine the number of years of operation by 
reference to the date on which the owner began operating with the original license; 
B. For the purposes of detennining depreciation recapture for moveable equipment, 
the methodology must enable percentage credits to reach 100% after the first 6 years 
of the assigned useful life; and 
C. The methodology must treat as equivalent to the owner of the residential care 
facility any person or entity that owns or controls the entity that owns the residential 
care facility and any entity that is owned or controlled by the owner of the residential 
care facility. 
Sec. 4. Application for state plan amendment. By October 1, 2014 the 
Department of Health and Human Services shall submit to the United States Department 
of Health and Human Services, Centers for Medicare and Medicaid Services an 
application for approval of a state plan amendment for the MaineCare program to 
authorize the methodology for calculating recapture of depreciation in the sale of nursing 
facilities as enacted in the Maine Revised Statutes, Title 22, section 3175-D, subsection 2 
to apply to sales occurring on or after July 1, 2014. 
Sec. 5. Contingent effective date. That section of this Act that enacts the Maine 
Revised Statutes, Title 22, section 3175-D, subsection 2 does not take effect unless the 
United States Department of Health and Human Services, Centers for Medicare and 
Medicaid Services approves an application for a state plan amendment for the MaineCare 
program submitted under this Act. The Commissioner of Health and Human Services 
shall notify the Secretary of State, the Secretary of the Senate, the Clerk of the House and 
the Revisor of Statutes when the commissioner has received approval of the state plan 
amendment submitted under this Act from the Centers for Medicare and Medicaid 
Services.' 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ,.,B "to H.P. 357, L.D. 538 
SUMMARY 
This amendment provides a new methodology under the MaineCare program for 
calculating recapture of depreciation upon the sale of a nursing facility. The amendment 
requires the Department of Health and Human Services to apply for a state plan 
amendment to enable the use of the new methodology and makes the effective date of the 
provision of law that establishes the new methodology contingent upon the approval by 
the United States Department of Health and Human Services, Centers for Medicare and 
Medicaid Services of the state plan amendment. The amendment also provides a new 
methodology for recapturing depreciation upon the sale of residential care facilities for 
which reimbursement for room and board costs, including depreciation, is provided by 
the Department of Health and Human Services. 
The methodology is similar to the 
methodology used for nursing facilities. 
FISCAL NOTE RE(Jl Jj(tU 
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COMMITTEE AMENDMENT 
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Approved: 04114114 ;tvac 
LD538 
LR 980(04) 
An Act To Align Costs Recognized for Transfer of Nursing Facilities and Residential Care Facilities 
with Ordinary Commercial and Government Contracting Standards 
-"I '\ 
Fiscal Note for Bill as Amended by Committee Amendment 'B' C H 
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Committee: Appropriations and Financial Affairs 
Fiscal Note Required: Yes 
Fiscal Note 
Potential current biennium cost increase - General Fund 
Fiscal Detail and Notes 
The costs to the Department of Health and Human Services from changing the rules for depreciation recapture upon 
the sale of nursing facilities and/or residential care facilities will depend on the timing and details of federal approval 
and on the timing and number of facility sales. The fiscal impact cannot be determined at this time. 
LR0980(04) - Fiscal Note - Page 1 of 1