Bill Summary – FastDemocracy

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                                    _____________ BILL NO. _____________
                                          (Primary Sponsor)
                           INTRODUCED BY _________________________________________________
                      BY REQUEST OF THE ECONOMIC AFFAIRS INTERIM COMMITTEE
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 A BILL FOR AN ACT ENTITLED: “AN ACT ESTABLISHING AN AMBULANCE PROVIDER ASSESSMENT
 FEE; ESTABLISHING PROCEDURES FOR COLLECTING AND DISTRIBUTING THE ASSESSMENT FEE;
 ALLOWING AUDITING OF AMBULANCE PROVIDER REPORTS AND PAYMENTS; ALLOWING FOR
 PENALTIES AND INTEREST; REQUIRING REVENUES GENERATED BY THE ASSESSMENT FEE TO BE
 USED FOR SUPPLEMENTING AMBULANCE PROVIDER MEDICAID PAYMENTS; PROVIDING
 DEFINITIONS; PROVIDING RULEMAKING AUTHORITY; AMENDING SECTION 17-7-502, MCA; PROVIDING
 FOR CONTINGENT VOIDNESS.”
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 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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          NEW SECTION. Section 1.       Definitions. As used in [sections 1 through 13], the following definitions
 apply:
          (1)     (a) "Ambulance provider" means a person licensed pursuant to 50-6-306 to provide ground
 ambulance transport, including transport for a municipal fire or police department or other government entity.
          (b)     The term does not include:
          (i)     an entity that exclusively provides air ambulance services; or
          (ii)    an entity operated by the United States, an Indian tribe, or any facility authorized under the
 Indian Health Care Improvement Act.
          (2)     "Assessment fee" means the ambulance provider assessment fee as provided in [section 2].
          (3)     "Department" means the department of revenue provided for in 2-15-1301.
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         (4)      "Emergency ambulance services" means any service delivered by an ambulance provider other
 than air ambulance services.
         (5)      (a) "Net operating revenue" means gross revenue collected by ambulance providers for the
 delivery of emergency ambulance services, minus amounts deducted for bad debt, charity care, and payer
 discounts.
         (b)      The term does not include nonpatient service-related revenue.
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         NEW SECTION. Section 2.        Ambulance provider assessment fee. (1) Each ambulance provider
 shall pay to the department a uniform assessment fee of 5.75% of net operating revenues.
         (2)      The department shall deposit the proceeds from collection of the assessment fee in the
 ambulance provider special revenue account provided for in [section 14].
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         NEW SECTION. Section 3.        Relation to other taxes and fees. The assessment fee imposed under
 [section 2] is, in addition to any other taxes and fees, required to be paid by ambulance providers.
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         NEW SECTION. Section 4.        Rulemaking authority. The department may adopt rules necessary to
 administer [sections 1 through 13].
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         NEW SECTION. Section 5.        Reporting and collection of assessment fee. (1) On or before March
 31 each year, an ambulance provider shall file with the department a report of its net operating revenue
 received during the previous calendar year. The report must be:
         (a)      in the form prescribed by the department; and
         (b)      accompanied by a payment in an amount equal to the assessment fee required to be paid
 under [section 2].
         (2)      Revenue received for all emergency ambulance services provided during the calendar year
 must be included in the calculation of the ambulance provider's net operating revenue regardless of the source
 of payment for the services rendered, including services covered under fee-for-service and managed care
 arrangements.
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           (3)    In the case of a transfer of ownership, the successor in interest to the ambulance provider
 assumes the liability for the assessment fee.
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           NEW SECTION. Section 6.        Audit -- records. (1) The department may audit the records and other
 documents of an ambulance provider to ensure that the proper assessment fee has been collected.
           (2)    The department may require the ambulance provider to provide records and other
 documentation, including books, ledgers, and registers, necessary for the department to verify the proper
 amount of the assessment fee paid.
           (3)    An ambulance provider shall maintain and make available for inspection by the department
 sufficient records and other documentation to demonstrate how the ambulance provider's net operating revenue
 was calculated. The ambulance provider shall maintain the records for at least 5 years from the date the report
 is due.
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           NEW SECTION. Section 7.        Periods of limitation. (1) Except as otherwise provided in this section, a
 deficiency may not be assessed or collected with respect to the year for which a report is filed unless the notice
 of additional fees proposed to be assessed is mailed within 5 years from the date the report was filed. For the
 purposes of this section, a report filed before the last day prescribed for filing is considered filed on the last day.
 If, before the expiration of the period prescribed for the assessment of the fees, the ambulance provider
 consents in writing to an assessment after the 5-year period, the fees may be assessed at any time prior to the
 expiration of the period agreed on.
           (2)    A refund or credit may not be paid or allowed with respect to the year for which a report is filed
 after 5 years from the last day prescribed for filing the report or after 1 year from the date of the overpayment,
 whichever period expires later, unless before the expiration of the period, the ambulance provider files a claim
 or the department has determined the existence of the overpayment and has approved the refund or credit. If
 the ambulance provider has agreed in writing under the provisions of subsection (1) to extend the time within
 which the department may propose an additional assessment, the period for filing a claim for a refund or credit
 or for allowing a refund or credit if no claim is filed, is automatically extended.
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           NEW SECTION. Section 8.       Penalty and interest for delinquent fee. If an ambulance provider does
 not pay the required assessment fee on or before the due date of the report as provided in [section 5], penalty
 and interest, as provided in 15-1-216, must be added to the assessment fee.
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           NEW SECTION. Section 9.       Estimated assessment fee on failure to file. For the purposes of
 ascertaining the correctness of any report, the department may:
           (1)    examine or cause to have examined by A designated agent or representative any books,
 papers, records, or memoranda bearing on the information required to be included in the report;
           (2)    require the attendance of any officer or employee of the ambulance provider making the report
 or the attendance of any other persons having relevant knowledge; and
           (3)    take testimony and require the production of any other material for its information.
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           NEW SECTION. Section 10.       Deficiency assessment -- penalty and interest -- hearing. (1) (a) If
 the department determines that the amount of the assessment fee due is greater than the amount disclosed by
 the report, it shall mail the ambulance provider a notice of the additional fees proposed to be assessed. Within
 30 days after the mailing of the notice, the ambulance provider may file with the department a written protest
 against the proposed additional fees stating the grounds on which the protest is based. The ambulance
 provider may request in its protest an oral hearing or an opportunity to present additional evidence relating to its
 fee liability.
           (b)    If a protest is not filed, the amount of the additional fees proposed to be assessed becomes
 final on the expiration of the 30-day period.
           (c)    If a protest is filed, the department shall reconsider the proposed assessment and, if the
 ambulance provider has requested, shall grant the provider an oral hearing. After consideration of the protest
 and the evidence presented at an oral hearing, the department's action on the protest is final when it mails
 notice of its action to the ambulance provider.
           (2)    When a deficiency is determined and the fees become final, the department shall mail      A   notice
 and demand to the ambulance provider for payment. Penalty and interest may be added to any deficiency
 assessment as provided in 15-1-216.
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          NEW SECTION. Section 11.             Closing agreements. (1) The director of the department or a person
 authorized in writing by the director may enter into an agreement with an ambulance provider relating to the
 liability of the provider in respect to fees imposed by [sections 1 through 13].
          (2)      An agreement under this section is final and conclusive, and, except on a showing of fraud,
 malfeasance, or misrepresentation of a material fact:
          (a)      the case may not be reopened as to matters agreed on or the agreement modified by         AN
 officer, employee, or agent of this state; and
          (b)      in A suit, action, or proceeding under the agreement or   A   determination, assessment, collection,
 payment, abatement, refund, or credit made in accordance with the agreement, the agreement may not be
 annulled, modified, set aside, or disregarded.
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          NEW SECTION. Section 12.             Credit for overpayment -- interest on overpayment. (1) If the
 department determines that the amount of fees, penalty, or interest due for any year is less than the amount
 paid, the amount of the overpayment must be credited against any fees, penalty, or interest then due from the
 ambulance provider and the balance must be refunded to the ambulance provider or its successor through
 reorganization, merger, or consolidation or to its shareholders on dissolution.
          (2)      Except as provided in subsection (3), interest is allowed on overpayments at the same rate as
 is charged on unpaid taxes, as provided in 15-1-216. Interest is due from the due date of the report or from the
 date of overpayment, whichever date is later, to the date the department approves refunding or crediting of the
 overpayment. Interest does not accrue during A period during which the processing of a claim for refund is
 delayed more than 30 days by reason of failure of the ambulance provider to furnish information requested by
 the department for the purpose of verifying the amount of the overpayment.
          (3)      Interest is not allowed:
          (a)      if the overpayment is refunded within 6 months from the date the report is due or from the date
 the return is filed, whichever is later; or
          (b)      if the amount of interest is less than $1.
          (4)      A payment not made incident to a discharge of actual ambulance provider assessment fee
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 liability or payment reasonably assumed to be imposed under [sections 1 through 13] is not considered an
 overpayment with respect to which interest is allowable.
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         NEW SECTION. Section 13.        Warrant for distraint. If the assessment fee is not paid when due, the
 department may issue a warrant for distraint as provided in Title 15, chapter 1, part 7.
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         NEW SECTION. Section 14.        Ambulance medicaid reimbursement special revenue account --
 statutory appropriation. (1) There is an ambulance medicaid reimbursement account in the state special
 revenue account provided for in 17-2-102 to the credit of the department of public health and human services.
         (2)      The account consists of:
         (a)      money from the assessment fee provided for in [section 2];
         (b)      any penalties and interest on penalties collected pursuant to [sections 1 through 13];
         (c)      other money authorized by the legislature to be credited to the account; and
         (d)      income earned on the account.
         (3)      Money in the account must be used by the department of public health and human services to
 provide funding no later than June 30 of each year for increases in medicaid payments to emergency
 ambulance services up to the average commercial rate for the service and for the cost of collection of the fees
 and other administrative activities associated with the implementation of increases in the medicaid payments to
 ambulance providers.
         (4)      Money remaining in the account at the end of a fiscal year may not be expended or transferred
 for any other purpose.
         (5)      Money in the account is statutorily appropriated, as provided in 17-7-502, for the purposes
 provided for in this section.
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         Section 15. Section 17-7-502, MCA, is amended to read:
         "17-7-502. Statutory appropriations -- definition -- requisites for validity. (1) A statutory
 appropriation is an appropriation made by permanent law that authorizes spending by a state agency without
 the need for a biennial legislative appropriation or budget amendment.
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         (2)      Except as provided in subsection (4), to be effective, a statutory appropriation must comply with
 both of the following provisions:
         (a)      The law containing the statutory authority must be listed in subsection (3).
         (b)      The law or portion of the law making a statutory appropriation must specifically state that a
 statutory appropriation is made as provided in this section.
         (3)      The following laws are the only laws containing statutory appropriations: 2-17-105; 5-11-120; 5-
 11-407; 5-13-403; 5-13-404; 7-4-2502; 7-4-2924; 7-32-236; 10-1-108; 10-1-1202; 10-1-1303; 10-2-603; 10-2-
 807; 10-3-203; 10-3-310; 10-3-312; 10-3-314; 10-3-316; 10-3-802; 10-3-1304; 10-4-304; 10-4-310; 15-1-121;
 15-1-142; 15-1-143; 15-1-218; 15-1-2302; 15-31-165; 15-31-1004; 15-31-1005; 15-35-108; 15-36-332; 15-37-
 117; 15-39-110; 15-65-121; 15-70-128; 15-70-131; 15-70-132; 15-70-433; 16-11-119; 16-11-509; 17-3-106; 17-
 3-212; 17-3-222; 17-3-241; 17-6-101; 17-6-214; 17-7-133; 17-7-215; 18-11-112; 19-3-319; 19-3-320; 19-6-410;
 19-9-702; 19-13-604; 19-17-301; 19-18-512; 19-19-305; 19-19-506; 19-20-604; 19-20-607; 19-21-203; 20-3-
 369; 20-7-1709; 20-8-107; 20-9-250; 20-9-534; 20-9-622; [ 20-15-328]; 20-26-617; 20-26-1503; 22-1-327; 22-3-
 116; 22-3-117; [ 22-3-1004]; 23-4-105; 23-5-306; 23-5-409; 23-5-612; 23-7-301; 23-7-402; 30-10-1004; 37-43-
 204; 37-50-209; 37-54-113; 39-71-503; 41-5-2011; 42-2-105; 44-4-1101; 44-4-1506; 44-12-213; 44-13-102; 50-
 1-115; 53-1-109; [section 14]; 53-6-148; 53-9-113; 53-24-108; 53-24-206; 60-5-530; 60-11-115; 61-3-321; 61-3-
 415; 67-1-309; 69-3-870; 69-4-527; 75-1-1101; 75-5-1108; 75-6-214; 75-11-313; 75-26-308; 76-13-150; 76-13-
 151; 76-13-417; 76-17-103; 77-1-108; 77-2-362; 80-2-222; 80-4-416; 80-11-518; 80-11-1006; 81-1-112; 81-1-
 113; 81-2-203; 81-7-106; 81-7-123; 81-10-103; 82-11-161; 85-20-1504; 85-20-1505; [ 85-25-102]; 87-1-603;
 87-5-909; 90-1-115; 90-1-205; 90-1-504; 90-6-331; and 90-9-306.
         (4)      There is a statutory appropriation to pay the principal, interest, premiums, and any costs or fees
 associated with issuing, paying, securing, redeeming, or defeasing all bonds, notes, or other obligations, as due
 in the ordinary course or when earlier called for redemption or defeased, that have been authorized and issued
 pursuant to the laws of Montana. Agencies that have entered into agreements authorized by the laws of
 Montana to pay the state treasurer, for deposit in accordance with 17-2-101 through 17-2-107, as determined
 by the state treasurer, an amount sufficient