SENATE BILL REPORT

ESB 6519

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

Senate Hearing Date(s):February 4, 1988; February 5, 1988

Majority Report:  Do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Bauer, Cantu, Deccio, Johnson, Lee, Newhouse, Saling, Vognild, Warnke, Williams, Wojahn, Zimmerman.

Senate Staff:Jan Sharar (786-7715)

                  March 5, 1988

House Committe on Ways & Means/Appropriations

AS PASSED SENATE, FEBRUARY 16, 1988

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.  If funds are not provided specifically for this act in the operating budget by June 1988, the act shall be null and void.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Dr. Harlan McNutt (for); Lauren Fasset (for)

HOUSE AMENDMENT:

A technical correction relating to depreciation involving lessee operated nursing homes is made.  The reference to the 1988 supplemental operating budget is deleted.