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ARIZONA HOUSE OF REPRESENTATIVESFifty-fourth Legislature Second Regular Session |
Senate:
3rd Read 16-14-0-0
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SB 1688: health; budget reconciliation; 2020-2021. (Substituted for HB 2905)
Sponsor: Senator Fann, LD 1
Transmitted to Governor
Overview
Contains budget reconciliation provisions relating to health needed for implementing the FY 2021 budget.
History
The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations. Article IV, Section 20, Part 2, Constitution of Arizona, requires the General Appropriations Act (feed bill) to contain only appropriations for the different state departments, state institutions, public schools and interest on public debt. Statutory changes necessary to reconcile the appropriations made in the feed bill and other changes are drafted into separate bills known as Budget Reconciliation Bills (BRBs). These BRBs are prepared according to the subject area.
Provisions
Arizona Department of Health Services (DHS)
1. Exempts county expenditures for restoration to competency treatment from the county expenditure limitation. (Sec. 6)
2. Allows the Director of DHS to increase fees in FY 2021 for services provided by the Bureau of Radiation Control.
a. It is the intent of the Legislature that the revenue generated by the fees not exceed $1,900,000.
b. DHS must deposit monies received from any fees increased in the Health Services Licensing Fund.
c. Exempts DHS from the rule making requirement for the purpose of increasing fees. (Sec. 8)
3. Allows monies in the Health Services Lottery Monies Fund be used for the purposes specified in the FY 2021 general appropriations act. (Sec. 9)
Arizona Health Care Cost Containment System (AHCCCS)
5. Continues the rate contingency risk setting for all managed care organizations at the funding levels that were imposed for contract year beginning October 1, 2010 and ending September 30, 2011. (Sec. 7)
6. States it is the intent of the Legislature that AHCCCS implement a program within the available appropriation. (Sec. 10)
Counties
7. 
Sets the annual county Arizona Long Term
Care System (ALTCS) contributions for FY 2021 at $305,872,000.
a. Outlines each county's contribution.
b. Requires the State Treasurer to recover the cost of any funding that was not provided.
c. Requires the State Treasurer to deposit monies received into the ALTCS fund. (Sec. 1)
8. Sets the county acute care contributions at $45,819,000 and states it is the intent of the Legislature that the Maricopa County contribution be reduced in each subsequent year according to the changes in the GDP price deflator.
a. Outlines each county's contribution.
b. Requires the State Treasurer to recover the cost of any funding that was not provided by a county from other funds owed to that county, excluding the Highway User Revenue Fund.
c. Specifies payment processes and requirements. (Sec. 4)
9. Continues to exclude the Proposition 204 administration costs from the county expenditure limitations. (Sec. 5)
Disproportionate Share Hospital (DSH) Payments
10. Sets the annual DSH payment allotment for the Maricopa County Special Health Care District (District) at $113,818,500.
a. Requires the District to provide a certified public expense form for the amount of qualifying DSH expenditures made to AHCCCS by May 1, 2021 for all state plan years as required by the AHCCCS Section 1115 waiver.
b. States that if the certification is equal to or less than $113,818,500 and AHCCCS determines the amount is correct they must:
i. Notify the Governor and the Legislature; and
ii. Distribute $4,202,300 to the District and deposit the balance in the state GF.
c. Provides that if the certification is less than $113,818,500 and AHCCCS determines the amount is not correct they must:
i. Notify the Governor and the Legislature; and
ii. Deposit the total amount into the state GF.
d. Stipulates that if the certification is greater than $113,818,500, AHCCCS must distribute $4,202,300 to the District and deposit $75,493,400 in the state GF.
e. Permits AHCCCS to make additional DSH payments to the District pursuant to statute. (Sec. 2)
11. Allots $28,474,900 of the DSH payments to the Arizona State Hospital (ASH) in FY 2021.
a. Requires ASH to provide a certified public expense form for the amount of qualifying DSH expenditures to AHCCCS by March 31, 2021.
b. Requires AHCCCS to assist ASH in determining the amount of qualifying DSH expenditures.
c. Requires AHCCCS to deposit the entire amount in the state GF.
d. Provides that if the certification is less than $28,474,900, AHCCCS must:
i. Notify the Governor and the Legislature; and
ii. Distribute the entire amount in the state GF.
e. States that the certified public expense form must contain the total amount of qualifying DSH expenditures and the amount limited by federal law. (Sec. 2)
12. Provides $884,800 for private qualifying DSH hospitals consistent with the appropriation and the terms of the Section 1115 waiver; however, payments are limited to those hospitals that either:
a. Meet the mandatory definition of DSH qualifying hospital under Section 1923 of the Social Security Act; or
b. Are located in Yuma County and contain at least 300 beds. (Sec. 2)
13. States that once the DSH distributions are made, further distributions must be made available first to qualifying private hospitals located outside of Phoenix and Tucson metropolitan statistical areas before being made available to qualifying hospitals within the Phoenix and Tucson metropolitan statistical areas. (Sec. 2)
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SB 1688
Initials IG Page 0 Transmitted
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