BILL REQ. #:  H-2316.2 

READ FIRST TIME 03/07/05.   

     AN ACT Relating to the quality maintenance fee on nursing facility operators; amending RCW 74.46.091; and creating a new section.

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

Sec. 1   RCW 74.46.091 and 2003 1st sp.s. c 16 s 4 are each amended to read as follows:
     (1) By July 1st of each year, each nursing facility operator shall file a report with the department of social and health services listing the patient days and the gross income for the prior calendar year for each nursing facility that he or she operates.
     (2) By August 1, 2003, the department of social and health services shall submit for approval to the federal department of health and human services a request for a waiver pursuant to 42 C.F.R. 433.68. The waiver shall identify the nursing facilities that the department proposes to exempt from the quality maintenance fee. Those facilities shall include at least:
     (a) Nursing facilities operated by any agency of the state of Washington;
     (b) Nursing facilities operated by a public hospital district; and
     (c) As many nursing facilities with no or disproportionately low numbers of medicaid-funded residents as, within the judgment of the department, may be exempted from the fee pursuant to 42 C.F.R. 433.68.
     (3) By August 1, 2005, the department of social and health services shall submit for approval to the federal department of health and human services a waiver amendment pursuant to 42 C.F.R. 433.68. The amendment shall, within the judgment of the department, attempt to designate nursing facilities identified as institutions for mental disease with state-funded contracts as exempt from the quality maintenance fee.
     (4) The department of social and health services shall notify the department of revenue and the nursing facility operator of the nursing facilities that would be exempted from the quality maintenance fee pursuant to the waiver request submitted to the federal department of health and human services. The nursing facilities included in the waiver request may withhold payment of the fee pending final action by the federal government on the request for waiver.
     (((4))) (5) If the request for waiver is approved, the department of social and health services shall notify the department of revenue and the nursing facility operator that no quality maintenance fee is due from the facility. If the request for waiver is denied, nursing facility operators who have withheld payment of the fee shall pay all such fees as have been withheld. No interest or penalties shall be due upon such withheld payments for the period during which final federal action was pending.
     (((5))) (6) The department of social and health services shall take whatever action is necessary to continue the waiver from the federal government.
     (((6))) (7) The department of social and health services may adopt such rules, in accordance with chapter 34.05 RCW, as necessary to provide for effective administration of this section and RCW 74.46.535.

NEW SECTION.  Sec. 2   Section 1 of this act applies retroactively to July 1, 2003, unless the federal department of health and human services disapproves the department of social and health services' amended waiver request.