Sec. 11. Nursing facilities assessment Other Special Revenue Funds program. There is created in the Department of Human Services an Other Special Revenue Funds program to be known as the "Nursing Facilities Assessment," which is composed of the revenues received from the tax imposed on nursing homes by the Maine Revised Statutes, Title 36, section 2872. Funds in the Nursing Facilities Assessment must be expended only for nursing facility services and may be expended only upon allocation by the Legislature. Any unexpended funds remaining at the end of each fiscal year may not lapse but must be carried forward to be used for the same purposes.

Notwithstanding the requirements of this section, $9,500,000 must be allocated annually to the General Fund, adjusted for inflation using the same economic trend factor methodology employed by the Department of Human Services for purposes of the Maine Revised Statutes, Title 22, section 1708, subsection 3-A.

Sec. 12. Retroactivity. This Act applies retroactively to July 1, 2002.

Rules adopted pursuant to the Maine Revised Statutes, Title 22, section 1708, subsection 3-A take effect retroactively to ensure that the increases required by Title 22, section 1708, subsection 3-A, paragraph C are applicable to all services rendered by all nursing facilities on or after July 1, 2002. To the extent necessary or expedient to accomplish this objective, the department shall provide in its rules for one- time, lump-sum payments to provide increased reimbursement for the period of time between July 1, 2002 and the effective date of any prospective rate changes established under Title 22, section 1708, subsection 3-A.

Rules amended pursuant to the Maine Revised Statutes, Title 22, section 7853, subsection 7 are retroactive to July 1, 2002.

Sec. 13. Effective date. This Act takes effect when the provisions in Public Law 2001, chapter 714, Part CC, section 8 are met.

SUMMARY

This bill ensures that enhanced reimbursement that is essential to the long-term care industry will be made possible by revenue generated through the recently enacted provider tax and be timely implemented by the Department of Human Services.