Bill Summary – FastDemocracy

LEGISLATIVE GENERAL COUNSEL                                            H.B. 59
Approved for Filing: A. Houston 6                            2nd Sub. (Gray)
          6 01-23-24 1:28 PM 6
                    Representative Marsha Judkins proposes the following substitute bill:
                     FEDERAL FUNDS CONTINGENCY PLANNING
                                      2024 GENERAL SESSION
                                          STATE OF UTAH
                                   Chief Sponsor: Ken Ivory
                              Senate Sponsor: Michael S. Kennedy
 6
 LONG TITLE
 General Description:
        This bill addresses contingency planning related to federal funds.
 Highlighted Provisions:
        This bill:
        < through July 1, 2027, requires a state agency to provide a contingency analysis and
 plan, and a state sovereignty evaluation, when submitting a federal funds
 reauthorization or a new federal funds request;
        < requires a state agency that meets certain thresholds for federal funding to create a
 contingency plan related to that funding and provides a sunset date for this
 requirement;
        < repeals provisions regarding federal receipts reporting requirements; and
        < makes technical and conforming changes.
 Money Appropriated in this Bill:                                                                 2nd Sub. H.B. 59
        None
 Other Special Clauses:
        None
 Utah Code Sections Affected:
 AMENDS:
     *HB0059S02*
       2nd Sub. (Gray) H.B. 59                                                    01-23-24 1:28 PM
           26B-3-130, as last amended by Laws of Utah 2023, Chapter 16 and renumbered and
 amended by Laws of Utah 2023, Chapter 306
           63I-1-263, as last amended by Laws of Utah 2023, Chapters 33, 47, 104, 109, 139, 155,
 212, 218, 249, 270, 448, 489, and 534
           63J-5-102, as last amended by Laws of Utah 2018, Chapter 467
           63J-5-103, as last amended by Laws of Utah 2017, Chapter 247
           63J-5-204, as last amended by Laws of Utah 2016, Chapter 272
 ENACTS:
           63J-5-301, Utah Code Annotated 1953
           63J-5-302, Utah Code Annotated 1953
 REPEALS:
           63J-1-219, as last amended by Laws of Utah 2022, Chapter 447
           63J-5-101, as enacted by Laws of Utah 2008, Chapter 382
39
 Be it enacted by the Legislature of the state of Utah:
           Section 1. Section 26B-3-130 is amended to read:
           26B-3-130. Medicaid intergovernmental transfer report -- Approval
 requirements.
           (1) As used in this section:
           (a) (i) "Intergovernmental transfer" means the transfer of public funds from:
           (A) a local government entity to another nonfederal governmental entity; or
           (B) from a nonfederal, government owned health care facility regulated under Chapter
 2, Part 2, Health Care Facility Licensing and Inspection, to another nonfederal governmental
 entity.
           (ii) "Intergovernmental transfer" does not include:
           (A) the transfer of public funds from one state agency to another state agency; or
           (B) a transfer of funds from the University of Utah Hospitals and Clinics.
           (b) (i) "Intergovernmental transfer program" means a federally approved
 reimbursement program or category that is authorized by the Medicaid state plan or waiver
 authority for intergovernmental transfers.
           (ii) "Intergovernmental transfer program" does not include the addition of a provider to
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       01-23-24 1:28 PM                                                     2nd Sub. (Gray) H.B. 59
 an existing intergovernmental transfer program.
         (c) "Local government entity" means a county, city, town, special service district,
 special district, or local education agency as that term is defined in Section 63J-5-102.
         (d) "Non-state government entity" means a hospital authority, hospital district, health
 care district, special service district, county, or city.
         (2) (a) An entity that receives federal Medicaid dollars from the department as a result
 of an intergovernmental transfer shall, on or before August 1, 2017, and on or before August 1
 each year thereafter, provide the department with:
         (i) information regarding the payments funded with the intergovernmental transfer as
 authorized by and consistent with state and federal law;
         (ii) information regarding the entity's ability to repay federal funds, to the extent
 required by the department in the contract for the intergovernmental transfer; and
         (iii) other information reasonably related to the intergovernmental transfer that may be
 required by the department in the contract for the intergovernmental transfer.
         (b) On or before October 15, 2017, and on or before October 15 each subsequent year,
 the department shall prepare a report for the Executive Appropriations Committee that
 includes:
         (i) the amount of each intergovernmental transfer under Subsection (2)(a);
         (ii) a summary of changes to CMS regulations and practices that are known by the
 department regarding federal funds related to an intergovernmental transfer program; and
         (iii) other information the department gathers about the intergovernmental transfer
 under Subsection (2)(a).
         (3) The department shall not create a new intergovernmental transfer program after
 July 1, 2017, unless the department reports to the Executive Appropriations Committee, in
 accordance with Section 63J-5-206, before submitting the new intergovernmental transfer
 program for federal approval. The report shall include information required by Subsection
 [63J-5-102(1)(d)] 63J-5-102(1)(e) and the analysis required in Subsections (2)(a) and (b).
         (4) (a) The department shall enter into new Nursing Care Facility Non-State
 Government-Owned Upper Payment Limit program contracts and contract amendments adding
 new nursing care facilities and new non-state government entity operators in accordance with
 this Subsection (4).
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        2nd Sub. (Gray) H.B. 59                                                       01-23-24 1:28 PM
         (b) (i) If the nursing care facility expects to receive less than $1,000,000 in federal
 funds each year from the Nursing Care Facility Non-State Government-Owned Upper Payment
 Limit program, excluding seed funding and administrative fees paid by the non-state
 government entity, the department shall enter into a Nursing Care Facility Non-State
 Government-Owned Upper Payment Limit program contract with the non-state government
 entity operator of the nursing care facility.
         (ii) If the nursing care facility expects to receive between $1,000,000 and $10,000,000
 in federal funds each year from the Nursing Care Facility Non-State Government-Owned
 Upper Payment Limit program, excluding seed funding and administrative fees paid by the
 non-state government entity, the department shall enter into a Nursing Care Facility Non-State
 Government-Owned Upper Payment Limit program contract with the non-state government
 entity operator of the nursing care facility after receiving the approval of the Executive
 Appropriations Committee.
         (iii) If the nursing care facility expects to receive more than $10,000,000 in federal
 funds each year from the Nursing Care Facility Non-State Government-Owned Upper Payment
 Limit program, excluding seed funding and administrative fees paid by the non-state
 government entity, the department may not approve the application without obtaining approval
 from the Legislature and the governor.
         (c) A non-state government entity may not participate in the Nursing Care Facility
 Non-State Government-Owned Upper Payment Limit program unless the non-state government
 entity is a special service district, county, or city that operates a hospital or holds a license
 under Chapter 2, Part 2, Health Care Facility Licensing and Inspection.
         (d) Each non-state government entity that participates in the Nursing Care Facility
 Non-State Government-Owned Upper Payment Limit program shall certify to the department
 that:
         (i) the non-state government entity is a local government entity that is able to make an
 intergovernmental transfer under applicable state and federal law;
         (ii) the non-state government entity has sufficient public funds or other permissible
 sources of seed funding that comply with the requirements in 42 C.F.R. Part 433, Subpart B;
         (iii) the funds received from the Nursing Care Facility Non-State Government-Owned
 Upper Payment Limit program are:
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         (A) for each nursing care facility, available for patient care until the end of the
 non-state government entity's fiscal year; and
         (B) used exclusively for operating expenses for nursing care facility operations, patient
 care, capital expenses, rent, royalties, and other operating expenses; and
         (iv) the non-state government entity has completed all licensing, enrollment, and other
 forms and documents required by federal and state law to register a change of ownership with
 the department and with CMS.
         (5) The department shall add a nursing care facility to an existing Nursing Care Facility
 Non-State Government-Owned Upper Payment Limit program contract if:
         (a) the nursing care facility is managed by or affiliated with the same non-state
 government entity that also manages one or more nursing care facilities that are included in an
 existing Nursing Care Facility Non-State Government-Owned Upper Payment Limit program
 contract; and
         (b) the non-state government entity makes the certification described in Subsection
 (4)(d)(ii).
         (6) The department may not increase the percentage of the administrative fee paid by a
 non-state government entity to the department under the Nursing Care Facility Non-State
 Government-Owned Upper Payment Limit program.
         (7) The department may not condition participation in the Nursing Care Facility
 Non-State Government-Owned Upper Payment Limit program on:
         (a) a requirement that the department be allowed to direct or determine the types of
 patients that a non-state government entity will treat or the course of treatment for a patient in a
 non-state government nursing care facility; or
         (b) a requirement that a non-state government entity or nursing care facility post a
 bond, purchase insurance, or create a reserve account of any kind.
         (8) The non-state government entity shall have the primary responsibility for ensuring
 compliance with Subsection (4)(d)(ii).
         (9) (a) The department may not enter into a new Nursing Care Facility Non-State
 Government-Owned Upper Payment Limit program contract before January 1, 2019.
         (b) Subsection (9)(a) does not apply to:
         (i) a new Nursing Care Facility Non-State Government-Owned Upper Payment Limit
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       2nd Sub. (Gray) H.B. 59                                                   01-23-24 1:28 PM
 program contract that was included in the federal funds request summary under Section
 63J-5-201 for fiscal year 2018; or
         (ii) a nursing care facility that is operated or managed by the same company as a
 nursing care facility that was included in the federal funds request summary under Section
 63J-5-201 for fiscal year 2018.
         Section 2. Section 63I-1-263 is amended to read:
         63I-1-263. Repeal dates: Titles 63A to 63N.
         (1) Subsection 63A-5b-405(5), relating to prioritizing and allocating capital
 improvement funding, is repealed July 1, 2024.
         (2) Section 63A-5b-1003, State Facility Energy Efficiency Fund, is repealed July 1,
 2023.
         (3) Sections 63A-9-301 and 63A-9-302, related to the Motor Vehicle Review
 Committee, are repealed July 1, 2023.
         (4) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July
 1, 2028.
         (5) Title 63C, Chapter 6, Utah Seismic Safety Commission, is repealed January 1,
 2025.
         (6) Title 63C, Chapter 12, Snake Valley Aquifer Advisory Council, is repealed July 1,
 2024.
         (7) Title 63C, Chapter 17, Point of the Mountain Development Commission Act, is
 repealed July 1, 2023.
         (8) Title 63C, Chapter 18, Behavioral Health Crisis Response Commission, is repealed
 December 31, 2026.
         (9) Title 63C, Chapter 23, Education and Mental Health Coordinating Council, is
 repealed July 1, 2026.
         (10) Title 63C, Chapter 27, Cybersecurity Commission, is repealed July 1, 2032.
         (11) Title 63C, Chapter 28, Ethnic Studies Commission, is repealed July 1, 2026.
         (12) Title 63C, Chapter 29, Domestic Violence Data Task Force, is repealed December
 31, 2024.
         (13) Title 63C, Chapter 31, State Employee Benefits Advisory Commission, is
 repealed on July 1, 2028.
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       01-23-24 1:28 PM                                                   2nd Sub. (Gray) H.B. 59
         (14) Section 63G-6a-805, which creates the Purchasing from Persons with Disabilities
 Advisory Board, is repealed July 1, 2026.
         (15) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed July 1,
 2028.
         (16) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
 2024.
         (17) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1, 2026.
         (18) Subsection 63J-1-602.2(25), related to the Utah Seismic Safety Commission, is
 repealed January 1, 2025.
         (19) Title 63J, Chapter 5, Part 3, Federal Funds Contingency Plan, is repealed July 1,
 2027.
         [(19)] (20) Section 63L-11-204, creating a canyon resource management plan to Provo
 Canyon, is repealed July 1, 2025.
         [(20)] (21) Title 63L, Chapter 11, Part 4, Resource Development Coordinating
 Committee, is repealed July 1, 2027.
         [(21)] (22) In relation to the Utah Substance Use and Mental Health Advisory Council,
 on January 1, 2033:
         (a) Sections 63M-7-301, 63M-7-302, 63M-7-303, 63M-7-304, and 63M-7-306 are
 repealed;
         (b) Section 63M-7-305, the language that states "council" is replaced with
 "commission";
         (c) Subsection 63M-7-305(1)(a) is repealed and replaced with:
         "(1) "Commission" means the Commission on Criminal and Juvenile Justice."; and
         (d) Subsection 63M-7-305(2) is repealed and replaced with:
         "(2) The commission shall:
         (a) provide ongoing oversight of the implementation, functions, and evaluation of the
 Drug-Related Offenses Reform Act; and
         (b) coordinate the implementation of Section 77-18-104 and related provisions in
 Subsections 77-18-103(2)(c) and (d).".
         [(22)] (23) The Crime Victim Reparations and Assistance Board, created in Section
 63M-7-504, is repealed July 1, 2027.
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       2nd Sub. (Gray) H.B. 59                                                    01-23-24 1:28 PM
         [(23)] (24) Title 63M, Chapter 7, Part 8, Sex Offense Management Board, is repealed
 July1, 2026.
         [(24)] (25) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1,
 2026.
         [(25)] (26) Title 63N, Chapter 1b, Part 4, Women in the Economy Subcommittee, is
 repealed January 1, 2025.
         [(26)] (27) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2028.
         [(27)] (28) Section 63N-2-512, related to the Hotel Impact Mitigation Fund, is repealed
 July 1, 2028.
         [(28)] (29) Title 63N, Chapter 3, Part 9, Strategic Innovation Grant Pilot Program, is
 repealed July 1, 2027.
         [(29)] (30) Title 63N, Chapter 3, Part 11, Manufacturing Modernization Grant
 Program, is repealed July 1, 2025.
         [(30)] (31) In relation to the Rural Employment Expansion Program, on July 1, 2028:
         (a) Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program, is repealed;
 and
         (b) Subsection 63N-4-805(5)(b), referring to the Rural Employment Expansion
 Program, is repealed.
         [(31)] (32) In relation to the Board of Tourism Development, on July 1, 2025:
         (a) Subsection 63N-2-511(1)(b), which defines "tourism board," is repealed;
         (b) Subsections 63N-2-511(3)(a) and (5), the language that states "tourism board" is
 repealed and replaced with "Utah Office of Tourism";
         (c) Subsection 63N-7-101(1), which defines "board," is repealed;
         (d) Subsection 63N-7-102(3)(c), which requires the Utah Office of Tourism to receive
 approval from the Board of Tourism Development, is repealed; and
         (e) Title 63N, Chapter 7, Part 2, Board of Tourism Development, is repealed.
         [(32)] (33) Subsection 63N-8-103(3)(c), which allows the Governor's Office of
 Economic Opportunity to issue an amount of tax credit certificates only for rural pr