Current Status Introducing Body:
SenateBill Number: 474Ratification Number: 170Act Number: 105Primary Sponsor: HayesType of Legislation: GBSubject: Hospitals licensed by DHEC, taxation ofCompanion Bill Number: 3611Date Bill Passed both Bodies: May 08, 1991Computer Document Number: 474Governor's Action: SDate of Governor's Action: May 31, 1991Introduced Date: Jan 15, 1991Date of Last Amendment: May 07, 1991Last History Body: ------Last History Date: May 31, 1991Last History Type: Act No. 105Scope of Legislation: StatewideAll Sponsors: HayesType of Legislation: General Bill
Bill Body Date Action Description CMN ---- ------ ------------ ------------------------------ --- 474 ------ May 31, 1991 Act No. 105 474 ------ May 31, 1991 Signed by Governor 474 ------ May 27, 1991 Ratified R 170 474 Senate May 08, 1991 Concurred in House amendment, enrolled for ratification 474 House May 08, 1991 Read third time, returned with amendment 474 House May 07, 1991 Amended, read second time 474 House May 02, 1991 Committee Report: Favorable 30 with amendment 474 House Apr 25, 1991 Committed to Committee, 30 retaining its place on the Calendar 474 House Apr 17, 1991 Committee Report: Favorable 27 474 House Mar 13, 1991 Introduced, read first time, 27 referred to Committee 474 Senate Mar 12, 1991 Read third time, sent to House 474 Senate Mar 07, 1991 Read second time 474 Senate Mar 06, 1991 Committee Report: Favorable 06 474 Senate Jan 15, 1991 Introduced, read first time, 06 referred to CommitteeView additional legislative information at the LPITS web site.
(A105, R170, S474)
AN ACT TO AMEND SECTION 12-23-810, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TAXATION OF HOSPITALS LICENSED BY THE SOUTH CAROLINA DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO FUND MEDICAID EXPANSION, SO AS TO REVISE THE BASIS FOR THE TAX FOR SOUTH CAROLINA HOSPITALS CALCULATING IT BASED ON THE NUMBER OF MEDICAID PATIENT DAYS, TO REQUIRE THAT HOSPITALS LICENSED IN ANOTHER STATE AND DOING BUSINESS IN SOUTH CAROLINA ARE SUBJECT TO THIS TAX AS OF JULY 1, 1992, TO PROVIDE THE BASIS FOR DOING BUSINESS IN SOUTH CAROLINA AND FOR CALCULATING THE TAX, AND TO INCREASE THE TOTAL REVENUE TO BE GENERATED BY THIS TAX FROM SEVEN AND ONE-HALF TO TWENTY-ONE AND ONE-HALF MILLION DOLLARS; TO AMEND SECTION 12-23-830, AS AMENDED, RELATING TO PAYMENT OF HOSPITAL TAXES, SO AS TO REMOVE THE GRACE PERIOD AND PENALTIES FOR LATE PAYMENT; TO AMEND SECTION 44-6-170, AS AMENDED, RELATING TO HOSPITAL DATA REPORTING UNDER THE SOUTH CAROLINA MEDICALLY INDIGENT ASSISTANCE ACT, SO AS TO CLARIFY INFORMATION TO BE REPORTED AND TO REQUIRE HOSPITALS LICENSED IN ANOTHER STATE AND DOING BUSINESS IN SOUTH CAROLINA AS OF JULY 1, 1991, TO COMPLY WITH THESE REPORTING REQUIREMENTS; TO AMEND SECTION 44-6-155, AS AMENDED, RELATING TO THE MEDICAID EXPANSION FUND, SO AS TO PROVIDE THAT THESE FUNDS ARE SUPPLEMENTARY AND EXEMPT FROM BUDGET REDUCTIONS, TO SET THE FUND FOR AT LEAST FORTY-FOUR MILLION DOLLARS FOR ADJUSTING MEDICAID REIMBURSEMENT FOR ALL HOSPITALS, AND TO ALLOW THE FUNDS TO CARRY FORWARD.
Be it enacted by the General Assembly of the State of South Carolina:
Revises basis for calculating South Carolina hospital license tax basis and includes out-of-state hospitals
SECTION 1. Section 12-23-810 of the 1976 Code, as added by Section 35 I, Part II, Act 189 of 1989, is amended to read:
"Section 12-23-810. (A) Every hospital licensed as a general hospital by the Department of Health and Environmental Control is subject to the payment of an excise, license, or privilege tax. Each hospital's tax must be based on its number of Medicaid patient days from the prior year as a percentage of total statewide Medicaid days.
(B) Effective July 1, 1992, every hospital licensed as a general hospital in another state is subject to the payment of an excise, license, or privilege tax if the hospital does business in South Carolina. A hospital is considered to be doing business in this State if the hospital, or the firm, corporation, association, or partnership which owns or operates the hospital, either directly or through a subsidiary corporation, establishes a physical presence in the State by owning, leasing, subleasing, or by any other means arranges to provide space to engage in or transact activity for financial profit or gain. Each hospital's tax must be based on the total number of patient days from the prior year attributed to South Carolina residents, excluding Medicaid patient days, adjusted by the hospital's ratio of total net to gross patient revenue. Net patient revenue for purposes of this formula is defined as gross patient revenue less contractual allowances, bad debts, uncompensated indigent care, property taxes, and state and federal income taxes.
(C) Total annual revenues from the tax, exclusive of penalties and interest, in subsection (A) of this section must equal twenty-one and one-half million dollars."
Removal of grace period and penalty for late payment from hospital taxes
SECTION 2. Section 12-23-830 of the 1976 Code, as last amended by Act 189 of 1989, is further amended to read:
"Section 12-23-830. On the first day of each quarter each general hospital shall remit one-fourth of its annual tax to the Tax Commission."
Revises hospital data reporting requirements
SECTION 3. Section 44-6-170 of the 1976 Code, as last amended by Section 35 F, Part II, Act 189 of 1989, is amended by adding:
"(D) In addition to hospitals licensed by the Department of Health and Environmental Control, effective July 1, 1991, the provisions of this section apply to a hospital licensed in another state if the hospital does business in South Carolina. Information required by subsection (A)(1) through (9) of this section must be submitted for all patients. Information required by subsection (A)(7) of this section also must identify total patient days attributed to South Carolina residents. Information required by subsection (A)(10) of this section must be submitted only for residents of South Carolina. A hospital is considered to be doing business in this State if the hospital, or the firm, corporation, association, or partnership which owns or operates the hospital, either directly or through a subsidiary corporation, establishes a physical presence in this State by owning, leasing, subleasing, or by any other means arranges to provide space to engage in or transact activity for financial profit or gain."
Budgetary protections for Medicaid expansion fund
SECTION 4. Section 44-6-155(A) of the 1976 Code, as added by Section 35 D, Part II, Act 189 of 1989, is amended to read:
"(A) There is created the Medicaid Expansion Fund into which must be deposited:
(1) funds collected pursuant to Section 44-6-146;
(2) funds collected pursuant to Section 12-23-810; and
(3) funds appropriated pursuant to subsection (B) of this section.
This fund must be separate and distinct from the general fund. These funds are supplementary and may not be used to replace general funds appropriated by the General Assembly or other funds used to support Medicaid. These funds and the programs specified in subsection (C) are exempt from any budgetary cuts, reductions, or eliminations caused by the lack of general fund revenues. Earnings on investments from this fund must remain part of the separate fund and must not be deposited in the general fund."
Revision to hospital Medicaid reimbursement purposes
SECTION 5. Section 44-6-155(C)(6) of the 1976 Code, as added by Section 35 D, Part II, Act 189 of 1989, is amended to read:
"(6) to provide a pool of at least forty-four million dollars for the sole purpose of adjusting Medicaid reimbursement for hospitals as provided in Section 44-6-140(A)(1). Funds in the pool not immediately used for this purpose must be carried forward for eventual use for this purpose;".
SECTION 6. This act takes effect upon approval by the Governor.
Approved the 31st day of May, 1991.