CERTIFICATION OF ENROLLMENT
SUBSTITUTE HOUSE BILL 2024
Chapter 350, Laws of 2019
66TH LEGISLATURE
2019 REGULAR SESSION
BUSINESS AND OCCUPATION TAX EXEMPTION--CERTAIN MEDICAID DEMONSTRATION PROJECT INCENTIVE PAYMENTS
EFFECTIVE DATE: July 28, 2019
Passed by the House March 12, 2019
  Yeas 97  Nays 1
FRANK CHOPP

Speaker of the House of Representatives
Passed by the Senate April 25, 2019
  Yeas 48  Nays 0
CYRUS HABIB

President of the Senate
CERTIFICATE
I, Bernard Dean, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is SUBSTITUTE HOUSE BILL 2024 as passed by the House of Representatives and the Senate on the dates hereon set forth.
BERNARD DEAN

Chief Clerk
Chief Clerk
Approved May 9, 2019 3:24 PM
FILED
May 13, 2019
JAY INSLEE

Governor of the State of Washington
Secretary of State
State of Washington

SUBSTITUTE HOUSE BILL 2024

Passed Legislature - 2019 Regular Session
State of Washington
66th Legislature
2019 Regular Session
ByHouse Finance (originally sponsored by Representatives Robinson and Cody)
READ FIRST TIME 02/28/19.
AN ACT Relating to deductions of incentive payments under the medicaid program established within 42 C.F.R. 438.6(b)(2) and Sec. 1115 medicaid demonstration project number 11-W-00304/0; amending RCW 82.04.43395; and creating new sections.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 82.04.43395 and 2018 c 102 s 2 are each amended to read as follows:
(1) An accountable community of health may deduct from the measure of tax delivery system reform incentive payments distributed by the Washington state health care authority, as described in Sec. 1115 medicaid demonstration project number 11-W-00304/0, approved by the centers for medicare and medicaid services in accordance with Sec. 1115(a) of the social security act.
(2) A hospital that is owned by a municipal corporation or political subdivision, or a hospital that is affiliated with a state institution, may deduct from the measure of tax either or both of the following:
(a) Incentive payments received through the medicaid quality improvement program established through 42 C.F.R. 438.6(b)(2), as existing on the effective date of this section;
(b) Delivery system reform incentive payments received through the project described in Sec. 1115 medicaid demonstration project number 11-W-00304/0, approved by the centers for medicare and medicaid services in accordance with Sec. 1115(a) of the social security act.
(3) ((For the purpose of this section,))Managed care organizations may deduct from the measure of tax the incentive payments received for achieving quality performance standards established through 42 C.F.R. 438.6(b)(2), as existing on the effective date of this section.
(4) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Accountable community of health" means an entity designated by the health care authority as a community of health under RCW 41.05.800 and any additional accountable communities of health authorized by the health care authority as part of ((its federal innovation waiver))Sec. 1115 medicaid demonstration project number 11-W-00304/0.
(b) "Managed care organization" has the same meaning as provided in RCW 74.60.010.
NEW SECTION.  Sec. 2. The deductions in section 1 of this act apply only with respect to amounts received on or after the effective date of this section by a hospital that is owned by a municipal corporation or political subdivision, a hospital that is affiliated with a state institution, or a managed care organization.
NEW SECTION.  Sec. 3. The provisions of RCW 82.32.805 and 82.32.808 do not apply to this act.
Passed by the House March 12, 2019.
Passed by the Senate April 25, 2019.
Approved by the Governor May 9, 2019.
Filed in Office of Secretary of State May 13, 2019.
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