Current Status Bill Number:1201 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19980421 Primary Sponsor:J. Verne Smith All Sponsors:J. Verne Smith Drafted Document Number:jic\5488htc.98 Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Hospital license tax, assessment information, Medicaid Expansion Fund; Medical, Taxation
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
Senate 19980421 Introduced, read first time, 06 SF
referred to Committee
View additional legislative information at the LPITS web site.
TO AMEND SECTIONS 12-23-810 AND 12-23-815, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LICENSE TAX ON HOSPITALS, SO AS TO DELETE PROVISIONS RELATING TO THE APPLICATION OF THE TAX TO A LICENSED HOSPITAL IN ANOTHER STATE WHICH DOES BUSINESS IN THIS STATE AND TO DELETE AN OBSOLETE REFERENCE APPLICABLE TO THE INFORMATION NEEDED TO ISSUE TAX ASSESSMENTS AND ASSIGN THE DUTY TO THE OFFICE OF RESEARCH AND STATISTICS OF THE STATE BUDGET AND CONTROL BOARD; AND TO AMEND SECTION 44-6-155, AS AMENDED, RELATING TO THE MEDICAID EXPANSION FUND, SO AS TO DELETE VARIOUS USES OF THE MONIES IN THE FUND AND TO CORRECT AN OBSOLETE AGENCY REFERENCE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-23-810(B) of the 1976 Code, as added by Act 105 of 1991, is amended to read:
"(B) Reserved Effective July 1, 1992, every hospital licensed as a general hospital in another state is subject to the payment of an excise, license, or privilege tax if the hospital does business in South Carolina. A hospital is considered to be doing business in this State if the hospital, or the firm, corporation, association, or partnership which owns or operates the hospital, either directly or through a subsidiary corporation, establishes a physical presence in the State by owning, leasing, subleasing, or by any other means arranges to provide space to engage in or transact activity for financial profit or gain. Each hospital's tax must be based on the total number of patient days from the prior year attributed to South Carolina residents, excluding Medicaid patient days, adjusted by the hospital's ratio of total net to gross patient revenue. Net patient revenue for purposes of this formula is defined as gross patient revenue less contractual allowances, bad debts, uncompensated indigent care, property taxes, and state and federal income taxes."
SECTION 2. Section 12-23-815 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"Section 12-23-815. The Department of Revenue shall issue assessments for the tax provided by this article based on information provided by the Department of Health and Environmental Control and the Health and Human Services Finance Commission Office of Research and Statistics of the State Budget and Control Board."
SECTION 3. Section 44-6-155(C) of the 1976 Code, as last amended by Act 105 of 1991, is further amended to read:
"(C) Monies in the fund must be used to:
(1) provide Medicaid coverage to pregnant women and infants with family incomes above one hundred percent but below one hundred eighty-five percent of the federal poverty guidelines;
(2) provide Medicaid coverage to children aged one through six with family income below federal poverty guidelines;
(3) provide Medicaid coverage to aged and disabled persons with family income below federal poverty guidelines;
(4) reserved provide Medicaid coverage through a medically-needy program to eligible persons in families with medical expenses which reduce the net family income below state and federal standards;
(5) reserved provide Medicaid reimbursement for hospital patients in need of subacute care, including patients in swing beds;
(6) reserved provide a pool of at least forty-four million dollars for the sole purpose of adjusting Medicaid reimbursement for hospitals as provided in Section 44-6-140(A)(1). Funds in the pool not immediately used for this purpose must be carried forward for eventual use for this purpose;
(7) provide up to two hundred forty thousand dollars to reimburse the Division Office of Research and Statistical Services Statistics of the State Budget and Control Board and hospitals for the cost of collecting and reporting data pursuant to Section 44-6-170; and
(8) reserved supplement state funds needed to administer items (3) and (4), not to exceed $700,000."
SECTION 4. This act takes effect upon approval by the Governor.