H-3850

AN ACT Relating to medicaid funding of intermediate care facilities; adding a new chapter to Title 82 RCW; creating a new section; making an appropriation; providing an expiration date; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. As used in this act, "expiration date" means the earliest of:

(1) The date that federal medicaid matching funds for the purposes specified in section 7 of this act become unavailable or are substantially reduced, as such date is certified by the secretary of social and health services; or

(2) The date that federal medicaid matching funds for the purposes specified in section 7 of this act become unavailable or are substantially reduced, as determined by a permanent injunction, court order, or final court decision.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Gross income" means all income from whatever source derived, including but not limited to gross income of the business as defined in RCW 82.04.080 and moneys received from state appropriations.

(2) "Intermediate care facility for the mentally retarded" means an intermediate care facility certified by the department of social and health services and the federal department of health and human services to provide residential care under 42 U.S.C. Sec. 1396d(d).

NEW SECTION. Sec. 3. In addition to any other tax, a tax is imposed on every intermediate care facility for the mentally retarded for the act or privilege of engaging in business within this state. The tax is equal to the gross income attributable to services for the mentally retarded, multiplied by the rate of fifteen percent.

NEW SECTION. Sec. 4. Chapter 82.32 RCW applies to the tax imposed in this chapter. The tax due dates, reporting periods, and return requirements applicable to chapter 82.04 RCW apply equally to the tax imposed in this chapter.

NEW SECTION. Sec. 5. Sections 2 through 4 of this act shall constitute a new chapter in Title 82 RCW.

NEW SECTION. Sec. 6. (1) Sections 2 through 4 of this act shall expire on the expiration date determined under section 1 of this act.

(2) The expiration of sections 2 through 4 of this act shall not be construed as affecting any existing right acquired or liability or obligation incurred under those sections or under any rule or order adopted under those sections, nor as affecting any proceeding instituted under those sections.

(3) Taxes that have been paid under sections 2 through 4 of this act, but are properly attributable to taxable events occurring after the expiration of those sections, shall be credited or refunded as provided in RCW 82.32.060.

NEW SECTION. Sec. 7. (1) The sum of seventeen million eighty-eight thousand dollars from the general fund‑-state and the sum of twenty million eight hundred eighty-six thousand dollars from the general fund‑-federal are appropriated for the biennium ending June 30, 1993, to the developmental disabilities program of the department of social and health services for prospective rate increases for intermediate care facilities for the mentally retarded to cover the medicaid share of the tax under section 3 of this act.

(2) The appropriations in this section shall lapse on the expiration date determined under section 1 of this act. Amounts that have been paid under this subsection, but are properly attributable to a period after that expiration date, shall be repaid or credited to the state as provided in rules of the department of revenue.

NEW SECTION. Sec. 8. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect April 1, 1992.