FINAL BILL REPORT

SB 6519

                                  C 221 L 88

BYSenators Anderson, Smitherman, Deccio, Rasmussen, Hayner, Conner, Zimmerman, Craswell, Gaspard, Wojahn, Stratton, Johnson, Kiskaddon, von Reichbauer and Garrett

Changing provisions relating to the method of determining the depreciation base of certain nursing homes.

Senate Committee on Ways & Means

House Committe on Ways & Means/Appropriations

SYNOPSIS AS ENACTED

BACKGROUND:

The federal government, effective July 18, 1984, changed the method used to determine the depreciation base for nursing homes.  A nursing home which changed ownership at this time was negatively affected.

SUMMARY:

Nursing home contractors who can prove they purchased a nursing home prior to August 1, 1984 and submitted necessary documentation to the Department of Social and Health Services prior to January 1, 1988, will have their depreciation base set not to exceed the fair market value of the assets at the date of purchase.  The Department of General Administration will determine the fair market value through an appraisal process.

VOTES ON FINAL PASSAGE:

      Senate    45     3

      House 92   2 (House amended)

      Senate    34     6 (Senate concurred)

EFFECTIVE:June 9, 1988