House Bill No. 7030
House Bill No. 7030
PUBLIC ACT NO. 95-160
AN ACT CONCERNING HUMAN SERVICES BUDGET
IMPLEMENTATION AND MODIFYING CERTAIN TAXES
AFFECTING BUSINESSES AND INDIVIDUALS.
Section 1. Subsection (a) of section 17b-492
of the general statutes is repealed and the
following is substituted in lieu thereof:
(a) Eligibility for participation in the
program shall be limited to any resident (1) who
is sixty-five years of age or older or who is
disabled, (2) whose annual income, if unmarried,
is less than thirteen thousand eight hundred
dollars, or whose annual income, if married, when
combined with that of his spouse is less than
sixteen thousand six hundred dollars, (3) who is
not insured under a policy which provides full or
partial coverage for prescription drugs once a
deductible amount is met, and (4) on and after
September 15, 1991, who pays [a fifteen-dollar] AN
ANNUAL TWENTY-FIVE-DOLLAR registration fee to the
department of social services. On July 1, 1988,
and annually thereafter, the commissioner may, by
the adoption of regulations in accordance with
chapter 54, increase the income limits established
under this subsection over those of the previous
fiscal year to reflect the annual inflation
adjustment in Social Security income, if any. Each
such adjustment shall be determined to the nearest
one hundred dollars.
Sec. 2. Section 19a-535 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) [As used in this section, a "nursing
facility" means a chronic and convalescent nursing
home or rest home with nursing supervision, as
defined in section 19a-521. It does not include a
home for the aged.] FOR THE PURPOSES OF THIS
SECTION: (1) "FACILITY" MEANS THE ENTITY CERTIFIED
AS A NURSING FACILITY UNDER THE MEDICAID PROGRAM
OR THE ENTITY CERTIFIED AS A SKILLED NURSING
FACILITY UNDER THE MEDICARE PROGRAM OR WITH
RESPECT TO FACILITIES THAT DO NOT PARTICIPATE IN
THE MEDICAID OR MEDICARE PROGRAMS, A CHRONIC AND
CONVALESCENT NURSING HOME OR A REST HOME WITH
NURSING SUPERVISION AS DEFINED IN SECTION 19a-521;
(2) "MEDICARE DISTINCT PART" MEANS AN ENTITY
CERTIFIED AS A SKILLED NURSING FACILITY UNDER THE
MEDICARE PROGRAM WITHIN A FACILITY; (3) "TRANSFER"
MEANS THE TRANSFER OF A RESIDENT FROM A FACILITY
TO A SEPARATE FACILITY, INCLUDING A TRANSFER INTO
OR OUT OF A MEDICARE DISTINCT PART, BUT DOES NOT
INCLUDE THE TRANSFER OF A RESIDENT FROM ONE BED TO
ANOTHER BED WITHIN THE SAME FACILITY; (4)
"DISCHARGE" MEANS THE DISCHARGE OF A RESIDENT FROM
A FACILITY TO ANOTHER INSTITUTION OR A
NONINSTITUTIONAL SETTING.
(b) A [nursing] facility shall not transfer or
discharge a patient from the facility except to
meet the welfare of the patient which cannot be
met in the facility, or unless the patient no
longer needs the services of the facility due to
improved health, or the health or safety of
individuals in the facility is endangered, or in
the case of a self-pay patient, for his nonpayment
or arrearage of more than fifteen days of the per
diem [nursing] facility room rate, or the facility
ceases to operate. In each case the basis for
transfer or discharge shall be documented in the
patient's medical record by a physician. In each
case where the welfare, health or safety of the
patient is concerned the documentation shall be by
the patient's physician. A [nursing] facility
which is part of a continuing care facility which
guarantees life care for its residents, as defined
in subsection (b) of section 17b-354, may transfer
or discharge (1) a resident self-pay patient who
has intentionally transferred assets in a sum
which will render the patient unable to pay the
costs of [nursing] facility care in accordance
with the contract between the resident and the
facility or (2) a nonresident self-pay patient who
has intentionally transferred assets in a sum
which will render the patient unable to pay the
costs of a total of forty-two months of [nursing]
facility care from the date of initial admission
to the [nursing] facility.
(c) Before effecting a transfer or discharge
of a patient from the facility, the [nursing]
facility shall notify, in writing, the patient and
[, if known, his legally liable relative,] HIS
guardian or conservator, IF ANY, OR HIS LEGALLY
LIABLE RELATIVE OR OTHER RESPONSIBLE PARTY IF
KNOWN AND THE COMMISSIONER OF SOCIAL SERVICES of
the proposed transfer or discharge, [and] the
reasons therefor, ITS EFFECTIVE DATE, THE LOCATION
TO WHICH THE PATIENT IS TO BE TRANSFERRED OR
DISCHARGED and INFORMATION AS TO BED HOLD AND
HOSPITAL READMISSION POLICY WHEN APPROPRIATE. THE
NOTICE shall include [in the notice] the name,
mailing address and telephone number of the state
nursing home ombudsman. IF THE PATIENT IS, OR THE
FACILITY ALLEGES A PATIENT IS, MENTALLY ILL OR
DEVELOPMENTALLY DISABLED, THE NOTICE SHALL INCLUDE
THE NAME, MAILING ADDRESS AND TELEPHONE NUMBER OF
THE OFFICE OF PROTECTION AND ADVOCACY. THE NOTICE
TO THE COMMISSIONER SHALL INCLUDE THE NAME AND
ADDRESS OF THE PATIENT'S GUARDIAN OR CONSERVATOR,
IF ANY, OR HIS LEGALLY LIABLE RELATIVE OR OTHER
RESPONSIBLE PARTY IF KNOWN. The notice shall be
given at least thirty days and no more than sixty
days prior to the patient's transfer or discharge,
except where the health or safety of individuals
in the facility are endangered or where the
patient's health improves sufficiently to allow a
more immediate transfer or discharge, or where
immediate transfer or discharge is necessitated by
urgent medical needs or where a patient has not
resided in the facility for thirty days, in which
cases notice shall be given as many days before
the transfer or discharge as practicable. [For
transfers or discharges effected on or after
October 1, 1989, the] THE notice shall also
include notice of the right of the patient to
appeal a transfer or discharge by the facility
pursuant to subsection (h) of this section.
(d) No patient shall be transferred OR
DISCHARGED from any [nursing] facility as a result
of a change in his status from self-pay or
Medicare to Medicaid provided the facility offers
services to both categories of patients. Any such
patient who wishes to be transferred to another
facility which has agreed to accept him may do so
upon giving at least fifteen days written notice
to the administrator of the [nursing] facility
from which he is to be transferred and a copy
thereof to the appropriate advocate of such
patient. The patients' advocate may help the
patient complete all administrative procedures
relating to a transfer. As used in this section
"self-pay" patient means a patient who is not
receiving state or municipal assistance to pay for
the cost of care.
(e) Except in an emergency, no patient shall
be transferred or discharged from a [nursing]
facility unless a discharge plan has been
developed by the personal physician of the patient
or the medical director in conjunction with the
nursing director, social worker or other health
care provider. To minimize the disruptive effects
of the transfer or discharge on the patient the
person responsible for developing the plan shall
consider the feasibility of placement near the
patient's relatives, the acceptability of the
placement to the patient [or] AND his [legally
liable relative,] guardian or conservator, IF ANY,
OR HIS LEGALLY LIABLE RELATIVE OR OTHER
RESPONSIBLE PARTY, IF KNOWN, and any other
relevant factors which affect the patient's
adjustment to the move. The plan shall contain a
written evaluation of the effects of the transfer
or discharge on the patient and a statement of the
action taken to minimize such effects. In addition
the plan shall outline the care and kinds of
services which the patient shall receive upon
transfer or discharge. Not less than thirty days
prior to an involuntary transfer or discharge a
copy of the discharge plan shall be provided to
the patient's personal physician if the discharge
plan was prepared by the medical director, to the
patient [or his legally liable relative,] AND HIS
guardian or conservator, IF ANY, OR HIS LEGALLY
LIABLE RELATIVE OR OTHER RESPONSIBLE PARTY, IF
KNOWN, and to the department of social services if
the patient receives payments under Title XIX of
the federal Social Security Act, as amended.
(f) No patient shall be involuntarily
transferred or discharged from a [nursing]
facility if such transfer or discharge is
medically contraindicated.
(g) The [nursing] facility shall be
responsible for assisting the patient in finding
appropriate placement.
(h) (1) [For transfers or discharges effected
on or after October 1, 1989, a patient or his
legally liable relative, guardian or conservator
who has been notified by a nursing facility,
pursuant to subsection (c) of this section, that
he will be transferred or discharged from the
facility may appeal such transfer or discharge to
the commissioner of public health and addiction
services by filing a request for a hearing with
the commissioner within ten days of receipt of
such notice.] THE COMMISSIONER OF SOCIAL SERVICES
OR HIS DESIGNEE, WITHIN FIVE BUSINESS DAYS OF
RECEIPT OF A NOTICE OF PROPOSED TRANSFER OR
DISCHARGE PURSUANT TO SUBSECTION (c) OF THIS
SECTION, SHALL PROVIDE THE PATIENT AND HIS
GUARDIAN OR CONSERVATOR, IF ANY, OR HIS LEGALLY
LIABLE RELATIVE OR OTHER RESPONSIBLE PARTY, IF
KNOWN, WITH A WRITTEN NOTICE INFORMING SUCH
PATIENT, GUARDIAN OR CONSERVATOR, LEGALLY LIABLE
RELATIVE OR OTHER RESPONSIBLE PARTY (A) OF THE
ACTION THE FACILITY INTENDS TO TAKE; (B) OF THE
RIGHT TO APPEAL THE PROPOSED TRANSFER OR DISCHARGE
PURSUANT TO THIS SECTION AND THE PROCEDURES FOR
INITIATING SUCH AN APPEAL; (C) OF THE DATE BY
WHICH AN APPEAL MUST BE INITIATED IN ORDER TO STAY
A PROPOSED TRANSFER OR DISCHARGE WHICH DATE SHALL
BE TEN DAYS FROM RECEIPT OF THE NOTICE FROM THE
COMMISSIONER OR HIS DESIGNEE; AND (D) THAT THE
PATIENT MAY REPRESENT HIMSELF OR BE REPRESENTED BY
LEGAL COUNSEL, A RELATIVE, A FRIEND OR OTHER
SPOKESMAN. A COPY OF THE NOTICE SHALL BE SENT TO
THE FACILITY. NOTICE SHALL BE DEEMED TO HAVE BEEN
RECEIVED WITHIN FIVE DAYS OF THE DATE IT WAS
MAILED, UNLESS THE PATIENT OR HIS GUARDIAN,
CONSERVATOR, LEGALLY LIABLE RELATIVE OR OTHER
RESPONSIBLE PARTY PROVES OTHERWISE BY A
PREPONDERANCE OF THE EVIDENCE.
(2) Except as provided in subdivision [(3)]
(5) of this subsection, upon receipt of any such
request, the commissioner of [public health and
addiction] SOCIAL services or his designee shall
hold a hearing to determine whether the transfer
or discharge is being effected in accordance with
this section. Such a hearing shall be [held within
seven business days of] CONVENED NOT LESS THAN
TEN, BUT NOT MORE THAN THIRTY DAYS FROM THE
receipt of such request and a [determination]
WRITTEN DECISION made by the commissioner or his
designee within [twenty] SIXTY days of the
termination of the hearing OR WITHIN NINETY DAYS
OF THE DATE OF THE HEARING REQUEST, WHICHEVER
OCCURS SOONER. The hearing shall be conducted in
accordance with chapter 54. IN EACH CASE THE
FACILITY SHALL PROVE BY A PREPONDERANCE OF THE
EVIDENCE THAT IT HAS COMPLIED WITH THE PROVISIONS
OF THIS SECTION.
(3) THE PATIENT, HIS GUARDIAN, CONSERVATOR,
LEGALLY LIABLE RELATIVE OR OTHER RESPONSIBLE PARTY
SHALL HAVE AN OPPORTUNITY TO EXAMINE, DURING
REGULAR BUSINESS HOURS AT LEAST THREE BUSINESS
DAYS PRIOR TO A HEARING CONDUCTED PURSUANT TO THIS
SECTION, THE CONTENTS OF THE PATIENT'S FILE
MAINTAINED BY THE FACILITY AND ALL DOCUMENTS AND
RECORDS TO BE USED BY THE COMMISSIONER OR HIS
DESIGNEE OR THE FACILITY AT THE HEARING. THE
FACILITY SHALL HAVE AN OPPORTUNITY TO EXAMINE
DURING REGULAR BUSINESS HOURS AT LEAST THREE
BUSINESS DAYS PRIOR TO SUCH A HEARING, ALL
DOCUMENTS AND RECORDS TO BE USED BY THE PATIENT AT
THE HEARING.
(4) IF A HEARING CONDUCTED PURSUANT TO THIS
SECTION INVOLVES MEDICAL ISSUES, THE COMMISSIONER
OR HIS DESIGNEE MAY ORDER AN INDEPENDENT MEDICAL
ASSESSMENT OF THE PATIENT AT THE EXPENSE OF THE
DEPARTMENT OF SOCIAL SERVICES WHICH SHALL BE MADE
PART OF THE HEARING RECORD.
[(3)] (5) In an emergency the [facility may
request that the commissioner make a determination
as to the need for an immediate transfer or
discharge of a patient. Before making such a
determination, the commissioner shall notify the
patient and, if known, his legally liable
relative, guardian or conservator. The
commissioner shall issue such a determination no
later than seven days after receipt of the request
for such determination. If, as a result of such a
request, the commissioner or his designee
determines] NOTICE REQUIRED PURSUANT TO SUBSECTION
(c) OF THIS SECTION AND SUBDIVISION (1) OF THIS
SUBSECTION SHALL BE PROVIDED AS SOON AS
PRACTICABLE. FOR THE PURPOSES OF THIS SECTION
"EMERGENCY" MEANS that a failure to effect an
immediate transfer or discharge would endanger the
health, safety or welfare of the patient or other
patients. [, the commissioner or his designee
shall order the immediate transfer or discharge of
the patient from the facility.] A PATIENT WHO IS
TRANSFERRED OR DISCHARGED ON AN EMERGENCY BASIS OR
A PATIENT WHO RECEIVES NOTICE OF SUCH A TRANSFER
OR DISCHARGE MAY CONTEST THE ACTION BY REQUESTING
A HEARING IN WRITING WITHIN TEN DAYS OF RECEIPT OF
NOTICE FROM THE COMMISSIONER OR WITHIN TEN DAYS OF
THE TRANSFER OR DISCHARGE, WHICHEVER IS LATER. A
hearing shall be held in accordance with the
requirements of subdivision (2) of this subsection
within seven business days OF RECEIPT of the
[issuance of any determination issued pursuant to
this subdivision] REQUEST.
[(4)] (6) [Any] EXCEPT IN THE CASE OF A
TRANSFER OR DISCHARGE EFFECTED PURSUANT TO
SUBDIVISION (5) OF THIS SUBSECTION, (A) AN
involuntary transfer or discharge shall be stayed
pending a [determination] DECISION by the
commissioner or his designee, [. Notwithstanding
any provision of the general statutes, the
determination of the commissioner or his designee
after a hearing shall be final and binding upon
all parties and not subject to any further appeal]
AND (B) IF THE COMMISSIONER OR HIS DESIGNEE
DETERMINES THE TRANSFER OR DISCHARGE IS BEING
EFFECTED IN ACCORDANCE WITH THIS SECTION, THE
FACILITY MAY NOT TRANSFER OR DISCHARGE THE PATIENT
PRIOR TO FIFTEEN DAYS FROM THE RECEIPT OF THE
DECISION BY THE PATIENT AND HIS GUARDIAN OR
CONSERVATOR, IF ANY, OR HIS LEGALLY LIABLE
RELATIVE OR OTHER RESPONSIBLE PARTY IF KNOWN.
(7) A COPY OF A DECISION OF THE COMMISSIONER
OR HIS DESIGNEE SHALL BE SENT TO THE FACILITY. THE
DECISION SHALL BE DEEMED TO HAVE BEEN RECEIVED
WITHIN FIVE DAYS OF THE DATE IT WAS MAILED, UNLESS
THE PATIENT OR HIS GUARDIAN, CONSERVATOR, LEGALLY
LIABLE RELATIVE OR OTHER RESPONSIBLE PARTY PROVES
OTHERWISE BY A PREPONDERANCE OF THE EVIDENCE. THE
SUPERIOR COURT SHALL CONSIDER AN APPEAL FROM A
DECISION OF THE DEPARTMENT OF SOCIAL SERVICES
PURSUANT TO THIS SECTION AS A PRIVILEGED CASE IN
ORDER TO DISPOSE OF THE CASE WITH THE LEAST
POSSIBLE DELAY.
Sec. 3. Section 19a-537 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) As used in this section and section
19a-537a, AS AMENDED BY SECTION 4 OF THIS ACT:
(1) "Vacancy" means a bed that is available
for an admission;
(2) "Nursing home" means any chronic and
convalescent facility or any rest home with
nursing supervision, as defined in section
19a-521;
(3) "Level of care" means the level of care
that the person was assigned in the nursing home
at the time of discharge to the hospital;
(4) "Hospital" means a general short-term
hospital licensed by the department of public
health and addiction services or a hospital for
mental illness as defined in section 17a-495 or a
chronic disease hospital as defined in section
19-13-D1(a) of the public health code.
(b) A nursing home shall:
(1) Reserve the bed of a self-pay resident of
such facility who is absent from the facility due
to hospitalization whenever payment is available
to reserve the bed;
(2) Inform the self-pay resident and his
relatives or other responsible persons, upon
admission of a person to the facility and upon
transfer of a resident to a hospital, that the bed
of a resident will be reserved as long as payment
is available to the facility to reserve the bed
AND THAT IF PAYMENT IS NOT MADE, THE RESIDENT WILL
BE ADMITTED TO THE NEXT AVAILABLE BED;
(3) RESERVE THE BED OF A RESIDENT WHO IS A
RECIPIENT OF MEDICAL ASSISTANCE WHEN THE RESIDENT
IS ABSENT FROM THE FACILITY FOR HOME LEAVE DAYS
AUTHORIZED UNDER THE MEDICAID PROGRAM;
[(3)] (4) Inform the resident who is a
recipient of medical assistance and his relatives
or other responsible persons, upon admission of a
person to the nursing home and upon transfer of a
resident to a hospital of the conditions under
which the department of social services requires
the nursing home to reserve the bed of a resident
[;] and THAT IF THE HOME IS NOT REQUIRED TO
RESERVE THE BED, THE RESIDENT WILL BE ADMITTED TO
THE NEXT AVAILABLE BED; AND
[(4)] (5) Not make the bed reserved for a
hospitalized resident available for use by any
other person unless the nursing home records in
such resident's medical record the medical or
administrative reasons justifying the change in
such resident's bed, provided no resident's bed
shall be changed if the medical director of the
nursing home, in consultation with the treating
physician, reasonably anticipates that such change
would result in serious medical harm to the
resident.
(c) A nursing home shall reserve, for at least
fifteen days, the bed of a resident who is a
recipient of medical assistance and who is absent
from such home due to hospitalization unless the
nursing home documents that it has objective
information from the hospital confirming that the
patient will not return to the nursing home at the
same level of care within fifteen days of the
hospital admission including the day of
hospitalization.
(d) The department of social services shall
reimburse a nursing home at the per diem Medicaid
rate of the facility for each day that the
facility reserves the bed of a resident who is a
recipient of medical assistance in accordance with
the following conditions:
(1) A facility shall be reimbursed for
reserving the bed of a resident who is
hospitalized for a maximum of seven days including
the admission date of hospitalization, if on such
date the nursing home documents that (A) it has a
vacancy rate of not more than three beds or three
per cent of licensed capacity, whichever is
greater, at the same level of care as the
hospitalized person, and (B) it contacted the
hospital and the hospital failed to provide
objective information confirming that the person
would be unable to return to the nursing home at
the same level of care within fifteen days of the
date of hospitalization.
(2) The nursing home shall be reimbursed for a
maximum of eight additional days provided:
(A) On the seventh day of the person's
hospital stay, the nursing home has a vacancy rate
that is not more than three beds or three per cent
of licensed capacity, whichever is greater, at the
same level of care as the hospitalized person, and
(B) Within seven days of the hospitalization
of a resident who is a recipient of medical
assistance, the nursing home has contacted the
hospital for an update on the person's status and
the nursing home documents such contact in the
person's file and that the information obtained
through the contact does not indicate that the
person will be unable to return to the nursing
home at the same level of care within fifteen days
of hospitalization.
(3) A FACILITY SHALL BE REIMBURSED FOR
RESERVING THE BED OF A RESIDENT WHO IS ABSENT FOR
UP TO TWENTY-ONE DAYS OF HOME LEAVE AS AUTHORIZED
UNDER THE MEDICAID PROGRAM IF ON THE DAY OF SUCH
AN ABSENCE THE FACILITY DOCUMENTS THAT IT HAS A
VACANCY RATE OF NOT MORE THAN FOUR BEDS OR FOUR
PER CENT OF LICENSED CAPACITY, WHICHEVER IS
GREATER, AT THE SAME LEVEL OF CARE AS THE RESIDENT
SO ABSENT. NO FACILITY SHALL REQUIRE OR REQUEST A
RESIDENT WHO IS A RECIPIENT OF MEDICAL ASSISTANCE
TO PROVIDE PAYMENT FOR SUCH AUTHORIZED HOME LEAVE
DAYS, WHETHER OR NOT SUCH PAYMENT IS AVAILABLE
FROM THE DEPARTMENT.
(e) If a resident's hospitalization exceeds
the period of time that a nursing home is required
to reserve the resident's bed or the nursing home
is not required to reserve the resident's bed
under this section, the nursing home:
(1) Shall provide the resident with the first
bed available at the time the nursing home
receives notice of the resident's discharge from
the hospital;
(2) Shall grant the resident priority of
admission over applicants for first admission to
the nursing home;
(3) May charge a fee to reserve the bed, not
exceeding the [maximum allowable charge for the
accommodation being reserved as established by the
department of social services for persons who are
not recipients of medical assistance] FACILITY'S
SELF-PAY RATE FOR THE UNIT IN WHICH THAT RESIDENT
RESIDED, or not exceeding the per diem Medicaid
rate for recipients of medical assistance,
whichever charge is applicable, for the number of
days which the resident is absent from the
facility.
Sec. 4. Section 19a-537a of the general
statutes is repealed and the following is
substituted in lieu thereof:
Compliance with section 19a-537, AS AMENDED BY
SECTION 3 OF THIS ACT, shall be monitored by the
department on a post audit basis or whenever a
complaint is received and its provisions shall be
enforced as follows:
(1) The department of social services is
authorized to impose a penalty not greater than
eight thousand five hundred dollars for each
violation of said section 19a-537, AS AMENDED BY
SECTION 3 OF THIS ACT. [and]
(2) The department shall recoup payments made
to a nursing home for reserve-bed days when it is
determined that: The nursing home made the bed
assigned to a hospitalized resident available to
another person, or the nursing home was reimbursed
for reserve bed days after it had objective
information indicating that the hospitalized
person would not return to the nursing home at the
same level of care; or the nursing home failed to
provide a resident with the first available bed or
grant a resident priority of admission as required
by subsection (e) of said section 19a-537, AS
AMENDED BY SECTION 3 OF THIS ACT; or the nursing
home failed to document the appropriate vacancy
rate or hospital contact. If the payments have
already been made, the department may set off the
amount of the payments against any other payments
due to the nursing home.
(3) THE DEPARTMENT MAY IMPOSE A PENALTY UPON A
FACILITY PURSUANT TO SUBDIVISION (1) OF THIS
SECTION OR RECOUP ANY PAYMENTS FROM A FACILITY
PURSUANT TO SUBDIVISION (2) OF THIS SECTION,
REGARDLESS OF WHETHER A CHANGE IN OWNERSHIP OF THE
FACILITY HAS TAKEN PLACE SINCE THE TIME OF THE
VIOLATION, PROVIDED THE DEPARTMENT HAS ISSUED
NOTICE OF THE ALLEGED VIOLATION AND THE
ACCOMPANYING PENALTY OR RECOUPMENT PRIOR TO THE
EFFECTIVE DATE OF THE CHANGE IN OWNERSHIP AND
RECORD OF SUCH NOTICE IS READILY AVAILABLE IN A
CENTRAL REGISTRY MAINTAINED BY THE DEPARTMENT.
[(3)] (4) Prior to imposing any penalty
pursuant to subdivision (1) of this section or
recouping any payments pursuant to subdivision (2)
of this section, the department of social services
shall notify the nursing home of the alleged
violation and the accompanying penalty or
recoupment, and shall permit such facility to
request an administrative hearing, in accordance
with sections 4-177 to 4-181, inclusive. A
facility shall request such hearing within fifteen
days of receipt of the notice of violation from
the department of social services. The department
shall stay the imposition of any penalty or
recoupment pending the outcome of the
administrative hearing.
Sec. 5. There is hereby established a task
force to study state and federal long-term care
facility policies concerning (1) intrafacility
transfers, (2) bed reservation during a resident's
hospitalization and (3) costs associated with bed
reservation during a resident's home leave and the
allocation of such costs to determine how such
policies affect facilities and residents in such
facilities and whether any change in state policy
is warranted. The task force shall be composed of
two legislators, one to be appointed by the
president pro tempore of the senate and one to be
appointed by the speaker of the house of
representatives, the commissioners of social
services and public health and addiction services
or their designees, the state long-term care
ombudsman, the executive director of the
commission on aging, two representatives of
for-profit long-term care facilities, two
representatives of nonprofit long-term care
facilities, one representative of Neighborhood
Legal Services and one representative of the
American Association of Retired Persons. The
appointed legislators shall chair and convene the
task force. The task force shall report its
findings and recommendations, which shall include
recommendations concerning the allocation of the
costs of residents' home leave and implementation
of a policy concerning bed reservation during a
resident's hospitalization that ensures compliance
with applicable state and federal law, to the
joint standing committees of the general assembly
having cognizance of matters relating to human
services and public health on or before February
1, 1996.
Sec. 6. Section 17b-253 of the general
statutes is repealed and the following is
substituted in lieu thereof:
The department of social services shall seek
appropriate amendments to its Medicaid regulations
and state plan to allow protection of resources
and income pursuant to section 17b-252. Such
protection shall be provided, to the extent
approved by the federal Health Care Financing
Administration, for any purchaser of a
precertified long-term care policy and shall last
for the life of the purchaser. The department of
social services shall count insurance benefit
payments toward resource exclusion to the extent
such payments (1) are for services Medicaid
approves or covers for its recipients; (2) are for
the lower of the actual charge and the amount paid
by the insurance company; (3) are for nursing home
care, or formal services delivered to insureds in
the community as part of a care plan approved by
[a coordination, assessment and monitoring agency
licensed pursuant to chapter 368v] AN ACCESS
AGENCY APPROVED BY THE OFFICE OF POLICY AND
MANAGEMENT AND THE DEPARTMENT OF SOCIAL SERVICES
AS MEETING THE REQUIREMENTS FOR SUCH AGENCY AS
DEFINED IN REGULATIONS ADOPTED PURSUANT TO
SUBSECTION (e) OF SECTION 17b-342, AS AMENDED BY
THIS ACT; and (4) are for services provided after
the individual meets the coverage requirements for
long-term care benefits established by the
department of social services for this program.
The commissioner of social services shall adopt
regulations, in accordance with chapter 54, to
implement the provisions of this section and
sections 17b-251, 17b-252, 17b-254 and 38a-475, AS
AMENDED BY THIS ACT, relating to determining
eligibility of applicants for Medicaid and the
coverage requirements for long-term care benefits.
Sec. 7. Section 17b-342 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) The commissioner of social services shall
administer the Connecticut home-care program for
the elderly state-wide in order to prevent the
institutionalization of elderly persons (1) who
are recipients of medical assistance, (2) who are
eligible for such assistance, or (3) who meet the
criteria for the state-funded portion of the
program under subsection (i) of this section. For
purposes of this section, a long-term care
facility is a facility which has been federally
certified as a skilled nursing facility or
intermediate care facility. The commissioner shall
make any revisions in the state Medicaid plan
required by Title XIX of the Social Security Act
prior to implementing the program. The annualized
cost of the community-based services provided to
such persons under the program shall not exceed
sixty per cent of the weighted average cost of
care in skilled nursing facilities and
intermediate care facilities. The program shall be
structured so that the net cost to the state for
long-term facility care in combination with the
community-based services under the program shall
not exceed the net cost the state would have
incurred without the program. The commissioner
shall investigate the possibility of receiving
federal funds for the program and shall apply for
any necessary federal waivers. A recipient of
services under the program, and the estate and
legally liable relatives of the recipient, shall
be responsible for reimbursement to the state for
such services to the same extent required of a
recipient of assistance under sections 17b-22,
17b-75 to 17b-77, inclusive, 17b-79 to 17b-103,
inclusive, 17b-114, 17b-180 to 17b-183, inclusive,
17b-260 to 17b-262, inclusive, 17b-264 to 17b-285,
inclusive, 17b-357 to 17b-362, inclusive, 17b-600
to 17b-604, inclusive, 17b-807 and 17b-808.
(b) The commissioner shall solicit bids
through a competitive process and shall contract
with [coordination, assessment and monitoring
agencies, as defined in subsection (f) of section
19a-490] AN ACCESS AGENCY, APPROVED BY THE OFFICE
OF POLICY AND MANAGEMENT AND THE DEPARTMENT OF
SOCIAL SERVICES AS MEETING THE REQUIREMENTS FOR
SUCH AGENCY AS DEFINED BY REGULATIONS ADOPTED
PURSUANT TO SUBSECTION (e) OF THIS SECTION, that
submit proposals which meet or exceed the minimum
bid requirements. In addition to such contracts,
the commissioner may use department staff to
provide screening, coordination, assessment and
monitoring functions for the program.
(c) The community-based services covered under
the program shall include, but not be limited to,
the following services to the extent that they are
not available under the state Medicaid plan,
occupational therapy, homemaker services,
companion services, meals on wheels, adult day
care, transportation, mental health counseling,
case management and elderly foster care.
Recipients of state-funded services and persons
who are determined to be functionally eligible for
community-based services who have an application
for medical assistance pending shall have the cost
of home health and community-based services
covered by the program, provided they comply with
all medical assistance application requirements.
[The coordination assessment and monitoring]
ACCESS agencies shall not use department funds to
purchase community-based services or home health
services from themselves or any related parties.
(d) Physicians, hospitals, long-term care
facilities and other licensed health care
facilities may disclose, and, as a condition of
eligibility for the program, elderly persons,
their guardians, and relatives shall disclose,
upon request from the department of social
services, such financial, social and medical
information as may be necessary to enable the
department or any agency administering the program
on behalf of the department to provide services
under the program. Long-term care facilities shall
supply the department of social services with the
names and addresses of all applicants for
admission. Any information provided pursuant to
this subsection shall be confidential and shall
not be disclosed by the department or
administering agency.
(e) The commissioner shall adopt regulations,
in accordance with the provisions of chapter 54,
TO DEFINE "ACCESS AGENCY", to implement and
administer the program, to establish uniform
state-wide standards for the program and a uniform
assessment tool for use in the screening process
and to specify conditions of eligibility.
(f) The commissioner may require long-term
care facilities to inform applicants for admission
of the program established under this section and
to distribute such forms as he prescribes for the
program. Such forms shall be supplied by and be
returnable to the department.
(g) The commissioner shall report annually, by
[January] JUNE first, to the joint standing
committee of the general assembly having
cognizance of matters relating to human services
on the program in such detail, depth and scope as
said committee requires to evaluate the effect of
the program on the state and program participants.
Such report shall include information on (1) the
number of persons diverted from placement in a
long-term care facility as a result of the
program, (2) the number of persons screened, (3)
the average cost per person in the program, (4)
the administration costs, (5) the estimated
savings, and (6) a comparison between costs under
the different contracts.
(h) An individual who is otherwise eligible
for services pursuant to this section shall, as a
condition of participation in the program, apply
for medical assistance benefits pursuant to
section 17b-260 when requested to do so by the
department and shall accept such benefits if
determined eligible.
(i) (1) On and after July 1, 1992, the
commissioner of social services shall, within
available appropriations, administer a
state-funded portion of the program for persons
(A) who are sixty-five years of age and older; (B)
who are inappropriately institutionalized or at
risk of inappropriate institutionalization; (C)
whose income is less than or equal to the amount
allowed under the federally funded portion of the
program established pursuant to subsection (a) of
this section; and (D) whose assets, if single, do
not exceed the minimum community spouse protected
amount pursuant to section 4022.05 of the
department's uniform policy manual or, if married,
the couple's assets do not exceed one hundred
fifty per cent of said community spouse protected
amount.
(2) The commissioner shall establish a sliding
fee scale for required contributions to the cost
of services provided under the program for program
participants whose income is equal to or greater
than one hundred fifty per cent of the federal
poverty level. The sliding fee scale shall be
based on a formula which establishes the midpoint
of each twenty-five per cent income increase over
the poverty level and assesses a fee based on a
percentage of the midpoint for all eligible
persons whose income is within that range. The
percentage of the midpoint shall start at eleven
per cent and shall increase by one per cent for
each income range.
(3) On and after June 30, 1992, the program
shall serve persons receiving state-funded home
and community-based services from the department,
persons receiving services under the promotion of
independent living for the elderly program
operated by the department of social services,
regardless of age, and persons receiving services
on June 19, 1992, under the home care
demonstration project operated by the department
of social services. Such persons receiving
state-funded services whose income and assets
exceed the limits established pursuant to
subdivision (1) of this subsection may continue to
participate in the program, but shall be required
to pay the total cost of care, including case
management costs.
(4) Services shall not be increased for
persons who received services under the promotion
of independent living for the elderly program over
the limits in effect under said program in the
fiscal year ending June 30, 1992, unless a
person's needs increase and the person is eligible
for Medicaid.
(5) The annualized cost of services provided
to an individual under the state-funded portion of
the program shall not exceed fifty per cent of the
weighted average cost of care in nursing homes in
the state, except an individual who received
services costing in excess of such amount under
the department of social services in the fiscal
year ending June 30, 1992, may continue to receive
such services, provided the annualized cost of
such services does not exceed eighty per cent of
the weighted average cost of such nursing home
care. The commissioner may allow the cost of
services provided to an individual to exceed the
maximum cost established pursuant to this
subdivision in a case of extreme hardship, as
determined by the commissioner, provided in no
case shall such cost exceed that of the weighted
cost of such nursing home care.
[(6)] (j) The commissioner of social services
may implement revised criteria for the operation
of [the state-funded portion of] the program while
in the process of adopting such criteria in
regulation form, provided the commissioner prints
notice of intention to adopt the regulations in
the Connecticut Law Journal within twenty days of
implementing the policy. Such criteria shall be
valid until the time final regulations are
effective.
Sec. 8. Section 17b-343 of the general
statutes is repealed and the following is
substituted in lieu thereof:
The commissioner of social services shall
establish annually the maximum allowable rate to
be paid by said agencies for homemaker services,
chore person services, companion services, respite
care, meals on wheels, adult day care services,
case management and assessment services,
transportation, mental health counseling and
elderly foster care, except that the maximum
allowable rates in effect July 1, 1990, shall
remain in effect during the fiscal years ending
June 30, 1992, and June 30, 1993. [, and rates
established in subcontracts between coordination,
assessment and monitoring agencies and direct care
providers in effect February 1, 1991, shall remain
in effect during the fiscal year ending June 30,
1992. For the fiscal years ending June 30, 1993,
and June 30, 1994, any rate established in a
subcontract between coordination, assessment and
monitoring agencies and direct care providers
shall not exceed the rate in effect June thirtieth
of the preceding fiscal year increased by the most
recent annual increase in the consumer price index
for urban consumers.] The commissioner of social
services shall prescribe uniform forms on which
agencies providing such services shall report
their costs for such services. Such rates shall be
determined on the basis of a reasonable payment
for necessary services rendered. The maximum
allowable rates established by the commissioner of
social services for the Connecticut home-care
program for the elderly established under section
17b-342, AS AMENDED BY SECTION 7 OF THIS ACT,
shall constitute the rates required under this
section until revised in accordance with this
section. The commissioner of social services shall
establish a fee schedule, to be effective on and
after July 1, 1994, for homemaker services, chore
person services, companion services, respite care,
meals on wheels, adult day care services, case
management and assessment services,
transportation, mental health counseling and
elderly foster care. The commissioner may annually
increase any fee in the fee schedule based on an
increase in the cost of services. Nothing
contained in this section shall authorize a
payment by the state to any agency for such
services in excess of the amount charged by such
agency for such services to the general public.
Sec. 9. Subsection (g) of section 17b-354 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(g) (1) A continuing care facility which
guarantees life care for its residents, as defined
in subsection (b) of this section, (A) shall
arrange for a medical assessment to be conducted
by an independent physician or [a coordination,
assessment and monitoring agency licensed pursuant
to chapter 368v] OR AN ACCESS AGENCY APPROVED BY
THE OFFICE OF POLICY AND MANAGEMENT AND THE
DEPARTMENT OF SOCIAL SERVICES AS MEETING THE
REQUIREMENTS FOR SUCH AGENCY AS DEFINED BY
REGULATIONS ADOPTED PURSUANT TO SUBSECTION (e) OF
SECTION 17b-342, AS AMENDED BY SECTION 7 OF THIS
ACT, prior to the admission of any resident to the
nursing facility and shall document such
assessment in the resident's medical file and (B)
may transfer or discharge a resident who has
intentionally transferred assets in a sum which
will render the resident unable to pay the cost of
nursing facility care in accordance with the
contract between the resident and the facility.
(2) A continuing care facility which
guarantees life care for its residents, as defined
in subsection (b) of this section, may, for the
seven-year period immediately subsequent to
becoming operational, accept nonresidents directly
as nursing facility patients on a contractual
basis provided any such contract shall include,
but not be limited to, requiring the facility (A)
to document that placement of the patient in such
facility is medically appropriate; (B) to apply to
a potential nonresident patient the financial
eligibility criteria applied to a potential
resident of the facility pursuant to said
subsection (b); and (C) to at least annually
screen each nonresident patient to ensure the
maintenance of assets, income and insurance
sufficient to cover the cost of at least forty-two
months of nursing facility care. A facility may
transfer or discharge a nonresident patient upon
the patient exhausting assets sufficient to pay
the costs of his care or upon the facility
determining the patient has intentionally
transferred assets in a sum which will render the
patient unable to pay the costs of a total of
forty-two months of nursing facility care from the
date of initial admission to the nursing facility.
Any such transfer or discharge shall be conducted
in accordance with section 19a-535. The
commissioner may grant up to a three-year
extension of the period during which a facility
may accept nonresident patients, provided the
facility is in compliance with the provisions of
this section.
Sec. 10. Section 19a-490 of the general
statutes is repealed and the following is
substituted in lieu thereof:
As used in this chapter:
(a) "Institution" means a hospital, home for
the aged, health care facility for the
handicapped, nursing home, rest home, home health
care agency, homemaker-home health aide agency,
[coordination, assessment and monitoring] ACCESS
agency, mental health facility, substance abuse
treatment facility, an infirmary operated by an
educational institution for the care of students
enrolled, and faculty and employees of, such
institution; a facility engaged in providing
services for the prevention, diagnosis, treatment
or care of human health conditions, including
facilities operated and maintained by any state
agency, except facilities for the care or
treatment of mentally ill persons or persons with
substance abuse problems; and a residential
facility for the mentally retarded licensed
pursuant to section 17a-227 and certified to
participate in the Title XIX Medicaid program as
an intermediate care facility for the mentally
retarded.
(b) "Hospital" means an establishment for the
lodging, care and treatment of persons suffering
from disease or other abnormal physical or mental
conditions and includes inpatient psychiatric
services in general hospitals;
(c) "Home for the aged", "nursing home" or
"rest home" means an establishment which
furnishes, in single or multiple facilities, food
and shelter to two or more persons unrelated to
the proprietor and, in addition, provides services
which meet a need beyond the basic provisions of
food, shelter and laundry;
(d) "Home health care agency" means a public
or private organization, or a subdivision thereof,
engaged in providing professional nursing services
and the following services, available twenty-four
hours per day, in the patient's home or a
substantially equivalent environment:
Homemaker-home health aide services as defined in
this section, physical therapy, speech therapy,
occupational therapy or medical social services.
The agency shall provide professional nursing
services and at least one additional service
directly and all others directly or through
contract. An agency shall be available to enroll
new patients seven days a week, twenty-four hours
per day;
(e) "Homemaker-home health aide agency" means
a public or private organization, except a home
health care agency, which provides in the
patient's home or a substantially equivalent
environment supportive services which may include,
but are not limited to, assistance with personal
hygiene, dressing, feeding and incidental
household tasks essential to achieving adequate
household and family management. Such supportive
services shall be provided under the supervision
of a registered nurse and, if such nurse
determines appropriate, shall be provided by a
social worker, physical therapist, speech
therapist or occupational therapist. Such
supervision may be provided directly or through
contract;
(f) "Homemaker-home health aide services" as
defined in this section shall not include services
provided to assist individuals with activities of
daily living when such individuals have a disease
or condition that is chronic and stable as
determined by a physician licensed in the state of
Connecticut;
[(g) "Coordination, assessment and monitoring
agency" means a public or private organization
primarily engaged in providing assessment of
patients' needs, coordination of home health
services and development of plans used to provide
care to patients, except when performed by a
hospital in planning discharge of patients or
postdischarge care of patients. The agency shall
target patients eligible for medical assistance
with chronic health conditions;]
[(h)] (g) "Mental health facility" means any
facility for the care or treatment of mentally ill
or emotionally disturbed adults except that on and
after October 1, 1993, mental health facilities
shall not include family care homes for the
mentally ill;
[(i)] (h) "Alcohol or drug treatment facility"
means any facility for the care or treatment of
persons suffering from alcoholism or other drug
addiction;
[(j)] (i) "Person" means any individual, firm,
partnership, corporation or association;
[(k)] (j) "Commissioner" means the
commissioner of public health and addiction
services; and
[(l)] (k) "Home health agency" means an agency
licensed as a home health care agency [,] OR a
homemaker-home health aide agency. [or a
coordination assessment and monitoring agency.]
Sec. 11. Section 19a-490g of the general
statutes is repealed and the following is
substituted in lieu thereof:
The department of public health and addiction
services shall develop and produce a consumer
guide of bilingual information on home health care
agencies [,] AND homemaker-home health aide
agencies. [and coordination, assessment and
monitoring agencies.]
Sec. 12. Subsection (e) of section 19a-491 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(e) The commissioner may require as a
condition of the licensure of home health care
agencies [,] AND homemaker-home health aide
agencies [and coordination, assessment and
monitoring agencies] that each agency meet minimum
service quality standards. In the event the
commissioner requires such agencies to meet
minimum service quality standards as a condition
of their licensure, he shall adopt regulations in
accordance with the provisions of chapter 54 to
define such minimum service quality standards.
Sec. 13. Subsection (a) of section 19a-495 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) The department of public health and
addiction services shall, after consultation with
the appropriate public and voluntary hospital
planning agencies, establish classifications of
institutions. It shall, in its public health code,
adopt, amend, promulgate and enforce such
regulations based upon reasonable standards of
health, safety and comfort of patients and
demonstrable need for such institutions, with
respect to each classification of institutions to
be licensed under sections 19a-490 to 19a-503,
inclusive, AS AMENDED BY THIS ACT, including their
special facilities, as will further the
accomplishment of the purposes of said sections in
promoting safe, humane and adequate care and
treatment of individuals in institutions. Said
department shall adopt such regulations concerning
home health care agencies [,] AND homemaker-home
health aide agencies, [and coordination,
assessment and monitoring agencies,] as defined in
section 19a-490. [An entity that is licensed as a
coordination, assessment and monitoring agency may
be associated with an entity that is licensed as a
provider of direct patient care. Only those
coordination, assessment and monitoring agencies
which, as of January 1, 1986, are both based in a
licensed general hospital and licensed as a
coordination, assessment and monitoring agency may
contract with an associated entity to provide
direct care services to persons who are receiving
coordination, assessment and monitoring services
from such agency.]
Sec. 14. Section 38a-475 of the general
statutes is repealed and the following is
substituted in lieu thereof:
The department of insurance shall only
precertify long-term care insurance policies which
(1) alert the purchaser to the availability of
consumer information and public education provided
by the department of social services pursuant to
section 17a-307; (2) offer the option of home and
community-based services in addition to nursing
home care; (3) in all home care plans, include
case management services delivered by [a
coordination, assessment and monitoring agency,
licensed pursuant to chapter 368v, or by a home
health care agency separately licensed as a
coordination, assessment and monitoring agency
pursuant to said chapter] AN ACCESS AGENCY
APPROVED BY THE OFFICE OF POLICY AND MANAGEMENT
AND THE DEPARTMENT OF SOCIAL SERVICES AS MEETING
THE REQUIREMENTS FOR SUCH AGENCY AS DEFINED IN
REGULATIONS ADOPTED PURSUANT TO SUBSECTION (e) OF
SECTION 17b-342, AS AMENDED BY SECTION 7 OF THIS
ACT, which services shall include, but need not be
limited to, the development of a comprehensive
individualized assessment and care plan and, as
needed, the coordination of appropriate services
and the monitoring of the delivery of such
services; (4) provide inflation protection; (5)
provide for the keeping of records and an
explanation of benefit reports on insurance
payments which count toward Medicaid resource
exclusion; and (6) provide the management
information and reports necessary to document the
extent of Medicaid resource protection offered and
to evaluate the Connecticut Partnership for
Long-Term Care. No policy shall be precertified if
it requires prior hospitalization or a prior stay
in a nursing home as a condition of providing
benefits. The commissioner may adopt regulations,
in accordance with chapter 54, to carry out the
precertification provisions of this section.
Sec. 15. Subsection (a) of section 17b-354 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) Except for applications deemed complete as
of August 9, 1991, the department of social
services shall not accept or approve any requests
for additional nursing home beds or modify the
capital cost of any prior approval for the period
from September 4, 1991, through June 30, [1997]
2002, except (1) beds restricted to use by
patients with acquired immune deficiency syndrome
or traumatic brain injury; [and] (2) beds
associated with a continuing care facility which
guarantees life care for its residents; AND (3)
MEDICAID CERTIFIED BEDS TO BE RELOCATED FROM ONE
LICENSED NURSING FACILITY TO ANOTHER LICENSED
NURSING FACILITY OR TO A PROPOSED NURSING
FACILITY, PROVIDED (A) THE AVAILABILITY OF BEDS IN
AN AREA OF NEED WILL NOT BE ADVERSELY AFFECTED;
(B) NO SUCH RELOCATION SHALL RESULT IN AN INCREASE
IN STATE EXPENDITURES; AND (C) THE RELOCATION
RESULTS IN A REDUCTION IN THE NUMBER OF NURSING
FACILITY BEDS IN THE STATE. Notwithstanding the
provisions of this subsection, any provision of
the general statutes or any decision of the
Commission on Hospitals and Health Care, [(A)] (i)
the date by which construction shall begin for
each nursing home certificate of need in effect
August 1, 1991, shall be December 31, 1992, [(B)]
(ii) the date by which a nursing home shall be
licensed under each such certificate of need shall
be October 1, 1995, and [(C)] (iii) the imposition
of such dates shall not require action by the
commissioner of social services. Except as
provided in subsection (c) of this section, a
nursing home certificate of need in effect August
1, 1991, shall expire if construction has not
begun or licensure has not been obtained in
compliance with the dates set forth in
subparagraphs [(A)] (i) and [(B)] (ii) of this
subsection.
Sec. 16. Subsection (b) of section 17b-354 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(b) For the purposes of subsection (a) of this
section, "a continuing care facility which
guarantees life care for its residents" means: (1)
A facility which does not participate in the
Medicaid program; (2) a facility which establishes
its financial stability by submitting to the
commissioner documentation which (A) demonstrates
in financial statements compiled by certified
public accountants that the facility and its
direct or indirect owners have (i) on the date of
the certificate of need application and for five
years preceding such date, net assets or reserves
equal to or greater than the projected operating
revenues for the facility in its first two years
of operation or (ii) assets or other indications
of financial stability determined by the
commissioner to be sufficient to provide for the
financial stability of the facility based on its
proposed financial structure and operations, (B)
demonstrates in financial statements compiled by
certified public accountants that the facility, on
the date of the certificate of need application,
has a projected debt coverage ratio at ninety-five
per cent occupancy of at least one and twenty-five
one-hundredths, (C) details the financial
operation and projected cash flow of the facility
on the date of the certificate of need
application, to be updated every five years
thereafter, and demonstrates that fees payable by
residents and the assets, income and insurance
coverage of residents, in combination with other
sources of facility funding, are sufficient to
provide for the expenses of life care services for
the life of the residents to be made available
within a continuum of care which shall include the
provision of health services in the independent
living units, and (D) provides that any transfer
of ownership of the facility to take place within
a five-year period from the date of approval of
its certificate of need shall be subject to the
approval of the commissioner of social services in
accordance with the provisions of section 17b-355;
(3) a facility which establishes to the
satisfaction of the commissioner that it can
provide for the expenses of the continuum of care
to be made available to residents by complying
with the provisions of chapter 319f and
demonstrating sufficient assets, income, financial
reserves or long-term care insurance to provide
for such expenses and maintain financially viable
operation of the facility for a thirty-year period
based on generally accepted accounting practices
and actuarial principles, which demonstration (A)
may include making available to prospective
residents long-term care insurance policies which
are substantially equivalent in value and coverage
to policies precertified pursuant to section
38a-475, (B) shall include establishing
eligibility criteria and screening each resident
prior to admission and annually thereafter to
ensure that his assets, income and insurance
coverage are sufficient in combination with other
sources of facility funding to cover such
expenses, (C) shall include entering into
contracts with residents concerning monthly or
other periodic fees payable by residents for
services provided, and (D) allowing residents
whose expenses are not covered by insurance to
pledge or transfer income, assets or proceeds from
the sale of assets in amounts sufficient to cover
such expenses; (4) a facility which demonstrates
it will establish a contingency fund, prior to
becoming operational, in an initial amount of five
hundred thousand dollars which shall be increased
in equal annual increments to at least one million
dollars by the start of the facility's sixth year
of operation and which shall be replenished within
twelve months of any expenditure, provided the
amount to be replenished shall not exceed two
hundred fifty thousand dollars annually until one
million dollars is reached, to provide for the
expenses of the continuum of care to be made
available to residents which may not be covered by
residents' assets, income or insurance, provided
the commissioner may approve the establishment of
a contingency fund in a lesser amount upon the
application of a facility for which a lesser
amount is appropriate based on the size of the
facility; and (5) a facility which is operated by
management with demonstrated experience and
ability in the operation of similar facilities.
Notwithstanding the provisions of this subsection,
a facility may be deemed a continuing care
facility which guarantees life care for its
residents if (A) THE FACILITY MEETS THE CRITERIA
SET FORTH IN SUBDIVISIONS (2) TO (5), INCLUSIVE,
OF THIS SUBSECTION, WAS MEDICAID CERTIFIED PRIOR
TO OCTOBER 1, 1993, AND HAS BEEN DEEMED QUALIFIED
TO ENTER INTO A CONTINUING CARE CONTRACT UNDER
CHAPTER 319hh FOR AT LEAST TWO CONSECUTIVE YEARS
PRIOR TO FILING ITS CERTIFICATE OF NEED
APPLICATION UNDER THIS SECTION, PROVIDED (i) NO
ADDITIONAL BED APPROVED PURSUANT TO THIS SECTION
SHALL BE MEDICAID CERTIFIED; (ii) NO PATIENT IN
SUCH A BED SHALL BE INVOLUNTARILY TRANSFERRED TO
ANOTHER BED DUE TO HIS ELIGIBILITY FOR MEDICAID
and (iii) THE FACILITY SHALL PAY THE COST OF CARE
FOR A PATIENT IN SUCH A BED WHO IS MEDICAID
ELIGIBLE AND DOES NOT WISH TO BE TRANSFERRED TO
ANOTHER BED OR (B) the facility is operated
exclusively by and for a religious order which is
committed to the care and well-being of its
members for the duration of their lives and whose
members are bound thereto by the profession of
permanent vows. On and after July 1, 1997, the
department of social services shall give priority
to a request for modification of a certificate of
need from a continuing care facility which
guarantees life care for its residents pursuant to
the provisions of this subsection.
Sec. 17. Section 17b-355 of the general
statutes is repealed and the following is
substituted in lieu thereof:
In determining whether a request submitted
pursuant to sections 17b-352 to 17b-354,
inclusive, will be granted, modified or denied,
the commissioner of social services shall consider
the following: The relationship of the request to
the state health plan, the financial feasibility
of the request and its impact on the applicant's
rates and financial condition, the contribution of
the request to the quality, accessibility and
cost-effectiveness of health care delivery in the
region, whether there is clear public need for the
request, the relationship of any proposed change
to the applicant's current utilization statistics,
the business interests of all owners, partners,
associates, incorporators, directors, sponsors,
stockholders and operators and the personal
background of such persons, and any other factor
which the department deems relevant. Whenever the
granting, modification or denial of a request is
inconsistent with the state health plan, a written
explanation of the reasons for the inconsistency
shall be included in the decision. THE
COMMISSIONER SHALL NOT GRANT A REQUEST FOR
ADDITIONAL NURSING FACILITY BEDS UNLESS THERE IS A
DEMONSTRATED BED NEED IN THE TOWNS WITHIN TWENTY
MILES OF THE TOWN IN WHICH THE BEDS ARE PROPOSED
TO BE LOCATED, INCLUDING THE TOWN OF THE PROPOSED
LOCATION, AS LISTED IN THE MARCH 1, 1974, OFFICIAL
MILEAGE TABLE OF THE PUBLIC UTILITIES COMMISSION.
BED NEED SHALL BE PROJECTED NO MORE THAN FIVE
YEARS INTO THE FUTURE AT NINETY-SEVEN AND ONE-HALF
PER CENT OCCUPANCY USING THE LATEST OFFICIAL
POPULATION PROJECTIONS BY TOWN AND AGE AS
PUBLISHED BY THE OFFICE OF POLICY AND MANAGEMENT
AND THE LATEST AVAILABLE NURSING FACILITY
UTILIZATION STATISTICS BY AGE COHORT FROM THE
DEPARTMENT OF PUBLIC HEALTH AND ADDICTION
SERVICES.
Sec. 18. Section 17b-450 of the general
statutes is repealed and the following is
substituted in lieu thereof:
For purposes of sections 17b-450 to 17b-461,
inclusive:
(1) The term "elderly person" means any
resident of Connecticut who is sixty years of age
or older.
(2) An elderly person shall be deemed to be
"in need of protective services" if such person is
unable to perform or obtain services which are
necessary to maintain physical and mental health.
(3) The term "services which are necessary to
maintain physical and mental health" includes, but
is not limited to, the provision of medical care
for physical and mental health needs, the
relocation of an elderly person to a facility or
institution able to offer such care, assistance in
personal hygiene, food, clothing, adequately
heated and ventilated shelter, protection from
health and safety hazards, protection from
maltreatment the result of which includes, but is
not limited to, malnutrition, deprivation of
necessities or physical punishment, and
transportation necessary to secure any of the
above stated needs, except that this term shall
not include taking such person into custody
without consent except as provided in sections
17b-450 to 17b-461, inclusive.
(4) The term "protective services" means
services provided by the state or other
governmental or private organizations or
individuals which are necessary to prevent abuse,
neglect, exploitation or abandonment. Abuse
includes, but is not limited to, the wilful
infliction of physical pain, injury or mental
anguish, or the wilful deprivation by a caretaker
of services which are necessary to maintain
physical and mental health. Neglect refers to an
elderly person who is either living alone and not
able to provide for oneself the services which are
necessary to maintain physical and mental health
or is not receiving the said necessary services
from the responsible caretaker. Exploitation
refers to the act or process of taking advantage
of an elderly person by another person or
caretaker whether for monetary, personal or other
benefit, gain or profit. Abandonment refers to the
desertion or wilful forsaking of an elderly person
by a caretaker or the foregoing of duties or the
withdrawal or neglect of duties and obligations
owed an elderly person by a caretaker or other
person.
(5) The term "caretaker" means a person who
has the responsibility for the care of an elderly
person as a result of family relationship or who
has assumed the responsibility for the care of the
elderly voluntarily, by contract or by order of a
court of competent jurisdiction.
[(6) "State ombudsman" and "regional
ombudsmen" mean the persons appointed by the
commissioner of social services under the
provisions of section 17b-400.]
Sec. 19. Section 17b-452 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) The commissioner upon receiving a report
that an elderly person allegedly is being, or has
been, abused, neglected, exploited or abandoned,
or is in need of protective services shall cause a
prompt and thorough evaluation to be made,
[through the appropriate regional ombudsman,] to
determine the situation relative to the condition
of the elderly person and what action and
services, if any, are required. The evaluation
shall include a visit to the named elderly person
and consultation with those individuals having
knowledge of the facts of the particular case.
Upon completion of the evaluation of each case,
written findings shall be prepared which shall
include recommended action and a determination of
whether protective services are needed. The person
filing the report shall be notified of the
findings, upon request.
(b) [Each regional ombudsman] THE DEPARTMENT
OF SOCIAL SERVICES shall maintain a STATE-WIDE
registry of the reports received, the evaluation
and findings and the actions [recommended, and
shall furnish copies of such data to the
department of social services for a state-wide
registry] TAKEN.
(c) [Neither the] THE CLIENT'S FILE, THE
original report [nor] AND the evaluation report
[of the regional ombudsman] shall NOT be deemed [a
public record or] PUBLIC RECORDS NOR be subject to
the provisions of section 1-19. The name of the
person making the original report or any person
mentioned in such report shall not be disclosed
unless the person making the original report
specifically requests such disclosure or unless a
judicial proceeding results therefrom or unless
disclosure of the name of the elderly person about
whom the report was made is required to fully
evaluate a report.
Sec. 20. Subsection (a) of section 17b-453 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) If it is determined that an elderly person
is in need of protective services, [the regional
ombudsman shall refer the case to the department
of social services for the provision of necessary]
services SHALL BE INITIATED, provided the elderly
person consents. If the elderly person fails to
consent and the [regional ombudsman] PROTECTIVE
SERVICES STAFF OF THE DEPARTMENT OF SOCIAL
SERVICES has reason to believe that such elderly
person [lacks capacity to consent, the regional
ombudsman shall refer the case to the department
of social services for a determination pursuant to
section 17b-456 of whether a petition for
appointment of a conservator should be filed] IS
INCAPABLE OF MANAGING HIS PERSONAL OR FINANCIAL
AFFAIRS, THE PROTECTIVE SERVICES STAFF SHALL
PROVIDE PROTECTIVE SERVICES TO THE EXTENT POSSIBLE
AND MAY APPLY TO PROBATE COURT FOR THE APPOINTMENT
OF A CONSERVATOR OF PERSON OR ESTATE, AS
APPROPRIATE.
Sec. 21. Section 17b-455 of the general
statutes is repealed and the following is
substituted in lieu thereof:
[(a)] If an elderly person does not consent to
the receipt of reasonable and necessary protective
services, or if such person withdraws the consent,
such services shall not be provided or continued,
except that if the commissioner of social services
has reason to believe that such elderly person
lacks capacity to consent, he may seek court
authorization to provide necessary services, as
provided in section 17b-456.
[(b) The department of social services shall
initiate services planning within ten calendar
days from the receipt of the referral of any case
for the provision of protective services from the
regional ombudsman, and within thirty calendar
days of the receipt of each referral, shall
furnish the regional ombudsman a written report
outlining the intended plan of services. The
regional ombudsman shall have the right to comment
on the proposed plan, and a copy of the regional
ombudsman's comments shall be forwarded to the
state ombudsman for subsequent action, if
required.]
Sec. 22. Section 17b-457 of the general
statutes is repealed and the following is
substituted in lieu thereof:
In performing the duties set forth in sections
17b-450 to 17b-461, inclusive, [the regional
ombudsmen and] the department of social services
may request the assistance of the staffs and
resources of all appropriate state departments,
agencies and commissions and local health
directors, and may utilize any other public or
private agencies, groups or individuals who are
appropriate and who may be available.
Sec. 23. Section 17b-458 of the general
statutes is repealed and the following is
substituted in lieu thereof:
Subsequent to the authorization for the
provision of reasonable and necessary protective
services, the department of social services shall
initiate a review of each case within ninety days,
to determine whether continuation of, or
modification in, the services provided is
warranted. A decision to continue the provision of
such services should be made in concert with
appropriate personnel from other involved state
and local groups, agencies and departments, and
shall comply with the consent provisions of
sections 17b-450 to 17b-461, inclusive.
Reevaluations of each such case shall be made
every ninety days thereafter. [The department of
social services shall advise the appropriate
regional ombudsman of the decisions relative to
continuation of protective services for each such
elderly person.]
Sec. 24. Section 17b-340 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) The rates to be paid by or for persons
aided or cared for by the state or any town in
this state to licensed chronic and convalescent
nursing homes, chronic disease hospitals
associated with chronic and convalescent nursing
homes, rest homes with nursing supervision and to
licensed homes for the aged, as defined by section
19a-490, and to residential facilities for the
mentally retarded which are licensed pursuant to
section 17a-227 and certified to participate in
the Title XIX Medicaid program as intermediate
care facilities for the mentally retarded, for
room, board and services specified in licensing
regulations issued by the licensing agency shall
be determined annually, except as otherwise
provided in this subsection, after a public
hearing, by the commissioner of social services,
to be effective July first of each year except as
otherwise provided in this subsection. Such rates
shall be determined on a basis of a reasonable
payment for such necessary services, which basis
shall take into account as a factor the costs of
such services. Cost of such services shall include
(1) reasonable costs mandated by collective
bargaining agreements with certified collective
bargaining agents or other agreements between the
employer and employees, provided "employees" shall
not include persons employed as managers or chief
administrators or required to be licensed as
nursing home administrators, and (2) compensation
for services rendered by proprietors at prevailing
wage rates, as determined by application of
principles of accounting as prescribed by said
commissioner. Cost of such services shall not
include amounts paid by the facilities to
employees as salary, or to attorneys or
consultants as fees, where the responsibility of
the employees, attorneys, or consultants is to
persuade or seek to persuade the other employees
of the facility to support or oppose unionization.
Nothing in this subsection shall prohibit
inclusion of amounts paid for legal counsel
related to the negotiation of collective
bargaining agreements, the settlement of
grievances or normal administration of labor
relations. The commissioner may, in his
discretion, allow the inclusion of extraordinary
and unanticipated costs of providing services
which were incurred to avoid an immediate negative
impact on the health and safety of patients. The
commissioner may, in his discretion, based upon
review of a facility's costs, direct care staff to
patient ratio and any other related information,
revise a facility's rate for any increases or
decreases to total licensed capacity of more than
ten beds or changes to its number of licensed rest
home with nursing supervision beds and chronic and
convalescent nursing home beds. The commissioner
may so revise a facility's rate established for
the fiscal year ending June 30, 1993, and
thereafter for any bed increases, decreases or
changes in licensure effective after October 1,
1989. Effective July 1, 1991, in facilities which
have both a chronic and convalescent nursing home
and a rest home with nursing supervision, the rate
for the rest home with nursing supervision shall
not exceed such facility's rate for its chronic
and convalescent nursing home. All such facilities
for which rates are determined under this
subsection shall report on a fiscal year basis
ending on the thirtieth day of September. Such
report shall be submitted to the commissioner by
the thirty-first day of December. The commissioner
may reduce the rate in effect for a facility which
fails to report on or before such date by an
amount not to exceed ten per cent of such rate.
The commissioner shall annually, on or before the
fifteenth day of February, report the data
contained in the reports of such facilities to the
joint standing committee of the general assembly
having cognizance of matters relating to
appropriations. For the cost reporting year
commencing October 1, 1985, and for subsequent
cost reporting years, facilities shall report the
cost of using the services of any nursing pool
employee by separating said cost into two
categories, the portion of the cost equal to the
salary of the employee for whom the nursing pool
employee is substituting shall be considered a
nursing cost and any cost in excess of such salary
shall be further divided so that seventy-five per
cent of the excess cost shall be considered an
administrative or general cost and twenty-five per
cent of the excess cost shall be considered a
nursing cost, provided if the total nursing pool
costs of a facility for any cost year are equal to
or exceed fifteen per cent of the total nursing
expenditures of the facility for such cost year,
no portion of nursing pool costs in excess of
fifteen per cent shall be classified as
administrative or general costs. The commissioner,
in determining such rates, shall also take into
account the classification of patients or boarders
according to special care requirements or
classification of the facility according to such
factors as facilities and services and such other
factors as he deems reasonable, including
anticipated fluctuations in the cost of providing
such services. The commissioner may establish a
separate rate for a facility or a portion of a
facility for traumatic brain injury patients who
require extensive care but not acute general
hospital care. Such separate rate shall reflect
the special care requirements of such patients. If
changes in federal or state laws, regulations or
standards adopted subsequent to June 30, 1985,
result in increased costs or expenditures in an
amount exceeding one-half of one per cent of
allowable costs for the most recent cost reporting
year, the commissioner shall adjust rates and
provide payment for any such increased reasonable
costs or expenditures within a reasonable period
of time retroactive to the date of enforcement.
Nothing in this section shall be construed to
require the department of social services to
adjust rates and provide payment for any increases
in costs resulting from an inspection of a
facility by the department of public health and
addiction services. Such assistance as the
commissioner requires from other state agencies or
departments in determining rates shall be made
available to him at his request. Payment of the
rates established hereunder shall be conditioned
on the establishment by such facilities of
admissions procedures which conform with this
section, section 19a-533 and all other applicable
provisions of the law and the provision of
equality of treatment to all persons in such
facilities. The established rates shall be the
maximum amount chargeable by such facilities for
care of such beneficiaries, and the acceptance by
or on behalf of any such facility of any
additional compensation for care of any such
beneficiary from any other person or source shall
constitute the offense of aiding a beneficiary to
obtain aid to which he is not entitled and shall
be punishable in the same manner as is provided in
subsection (b) of section 17b-97. For the fiscal
year ending June 30, 1992, rates for licensed
homes for the aged and intermediate care
facilities for the mentally retarded may receive
an increase not to exceed the most recent annual
increase in the Regional Data Resources
Incorporated McGraw-Hill Health Care Costs:
Consumer Price Index (all urban) --All Items.
Rates for newly certified intermediate care
facilities for the mentally retarded shall not
exceed one hundred fifty per cent of the median
rate of rates in effect on January 31, 1991, for
intermediate care facilities for the mentally
retarded certified prior to February 1, 1991.
(b) The commissioner of social services shall
adopt regulations in accordance with the
provisions of chapter 54 to specify other
allowable services. For purposes of this section,
other allowable services means those services
required by any medical assistance beneficiary
residing in such home or hospital which are not
already covered in the rate set by the
commissioner in accordance with the provisions of
subsection (a) of this section.
(c) No facility subject to the requirements
of this section shall accept payment in excess of
the rate set by the commissioner pursuant to
subsection (a) of this section for any medical
assistance patient from this or any other state.
No facility shall accept payment in excess of the
reasonable and necessary costs of other allowable
services as specified by the commissioner pursuant
to the regulations promulgated under subsection
(b) of this section for any public assistance
patient from this or any other state.
Notwithstanding the provisions of this subsection,
for the fiscal [years] YEAR ending [June 30, 1994,
and] June 30, 1995, the commissioner may authorize
a facility to accept payment in excess of the rate
paid for a medical assistance patient in this
state for a patient who receives medical
assistance from another state.
(d) In any instance where the commissioner of
social services finds that a facility subject to
the requirements of this section is accepting
payment for a medical assistance beneficiary in
violation of subsection (c) of this section, the
commissioner shall proceed to recover through the
rate set for the facility any sum in excess of the
stipulated per diem and other allowable costs, as
promulgated in regulations pursuant to subsections
(a) and (b) of this section. The commissioner
shall make the recovery prospectively at the time
of the next annual rate redetermination.
(e) Except as provided in this subsection,
the provisions of subsections (c) and (d) of this
section shall not apply to any facility subject to
the requirements of this section, which on October
1, 1981, (1) was accepting payments from the
commissioner in accordance with the provisions of
subsection (a), (2) was accepting medical
assistance payments from another state for at
least twenty per cent of its patients and (3) had
not notified the commissioner of any intent to
terminate its provider agreement, in accordance
with section 17b-271, provided no patient residing
in any such facility on May 22, 1984, shall be
removed from such facility for purposes of meeting
the requirements of this subsection. If the
commissioner finds that the number of beds
available to medical assistance patients from this
state in any such facility is less than fifteen
per cent the provisions of subsections (c) and (d)
shall apply to that number of beds which is less
than said percentage.
(f) For the fiscal year ending June 30, 1992,
the rates paid by or for persons aided or cared
for by the state or any town in this state to
facilities for room, board and services specified
in licensing regulations issued by the licensing
agency, except intermediate care facilities for
the mentally retarded and homes for the aged,
shall be based on the cost year ending September
30, 1989. For the fiscal years ending June 30,
1993, and June 30, 1994, such rates shall be based
on the cost year ending September 30, 1990.
Notwithstanding the provisions of section 17b-344,
such rates shall be determined by the commissioner
of social services in accordance with this section
and the regulations of Connecticut state agencies
promulgated by the commissioner and in effect on
April 1, 1991, except that:
(1) Allowable costs shall be divided into the
following five cost components: Direct costs,
which shall include salaries for nursing
personnel, related fringe benefits and nursing
pool costs; indirect costs, which shall include
professional fees, dietary expenses, housekeeping
expenses, laundry expenses, supplies related to
patient care, salaries for indirect care personnel
and related fringe benefits; fair rent, which
shall be defined in accordance with SUBSECTION (f)
OF section [17-311-52f] 17-311-52 of the
regulations of Connecticut state agencies;
capital-related costs, which shall include
property taxes, insurance expenses, equipment
leases and equipment depreciation; and
administrative and general costs, which shall
include maintenance and operation of plant
expenses, salaries for administrative and
maintenance personnel and related fringe benefits.
Allowable costs shall not include costs for
ancillary services payable under Part B of the
Medicare program.
(2) Two geographic peer groupings of
facilities shall be established for each level of
care, as defined by the department of social
services for the determination of rates, for the
purpose of determining allowable direct costs. One
peer grouping shall be comprised of those
facilities located in Fairfield County. The other
peer grouping shall be comprised of facilities
located in all other counties.
(3) For the fiscal year ending June 30, 1992,
per diem maximum allowable costs for each cost
component shall be as follows: For direct costs,
the maximum shall be equal to one hundred forty
per cent of the median allowable cost of that peer
grouping; for indirect costs, the maximum shall be
equal to one hundred thirty per cent of the
state-wide median allowable cost; for fair rent,
the amount shall be calculated utilizing the
amount approved by the Commission on Hospitals and
Health Care pursuant to section 19a-154; for
capital-related costs, there shall be no maximum;
and for administrative and general costs, the
maximum shall be equal to one hundred twenty-five
per cent of the state-wide median allowable cost.
For the fiscal year ending June 30, 1993, per diem
maximum allowable costs for each cost component
shall be as follows: For direct costs, the maximum
shall be equal to one hundred forty per cent of
the median allowable cost of that peer grouping;
for indirect costs, the maximum shall be equal to
one hundred twenty-five per cent of the state-wide
median allowable cost; for fair rent, the amount
shall be calculated utilizing the amount approved
by the Commission on Hospitals and Health Care
pursuant to section 19a-154; for capital-related
costs, there shall be no maximum; and for
administrative and general costs the maximum shall
be equal to one hundred fifteen per cent of the
state-wide median allowable cost. For the fiscal
year ending June 30, 1994, per diem maximum
allowable costs for each cost component shall be
as follows: For direct costs, the maximum shall be
equal to one hundred thirty-five per cent of the
median allowable cost of that peer grouping; for
indirect costs, the maximum shall be equal to one
hundred twenty per cent of the state-wide median
allowable cost; for fair rent, the amount shall be
calculated utilizing the amount approved by the
Commission on Hospitals and Health Care pursuant
to section 19a-154; for capital-related costs,
there shall be no maximum; and for administrative
and general costs the maximum shall be equal to
one hundred ten per cent of the state-wide median
allowable cost. For the fiscal year ending June
30, 1995, [and any succeeding fiscal year,] per
diem maximum allowable costs for each cost
component shall be as follows: For direct costs,
the maximum shall be equal to one hundred
thirty-five per cent of the median allowable cost
of that peer grouping; for indirect costs, the
maximum shall be equal to one hundred twenty per
cent of the state-wide median allowable cost; for
fair rent, the amount shall be calculated
utilizing the amount approved by the Commission on
Hospitals and Health Care pursuant to section
19a-154; for capital-related costs, there shall be
no maximum; and for administrative and general
costs the maximum shall be equal to one hundred
five per cent of the state-wide median allowable
cost. FOR THE FISCAL YEAR ENDING JUNE 30, 1996,
AND ANY SUCCEEDING FISCAL YEAR, PER DIEM MAXIMUM
ALLOWABLE COSTS FOR EACH COST COMPONENT SHALL BE
AS FOLLOWS: FOR DIRECT COSTS, THE MAXIMUM SHALL BE
EQUAL TO ONE HUNDRED THIRTY-FIVE PER CENT OF THE
MEDIAN ALLOWABLE COST OF THAT PEER GROUPING; FOR
INDIRECT COSTS, THE MAXIMUM SHALL BE EQUAL TO ONE
HUNDRED FIFTEEN PER CENT OF THE STATE-WIDE MEDIAN
ALLOWABLE COST; FOR FAIR RENT, THE AMOUNT SHALL BE
CALCULATED UTILIZING THE AMOUNT APPROVED PURSUANT
TO SECTION 19a-154; FOR CAPITAL-RELATED COSTS,
THERE SHALL BE NO MAXIMUM; AND FOR ADMINISTRATIVE
AND GENERAL COSTS THE MAXIMUM SHALL BE EQUAL TO
THE STATE-WIDE MEDIAN ALLOWABLE COST. Costs in
excess of the maximum amounts established under
this subsection shall not be recognized as
allowable costs, except that the commissioner of
social services [(A) may allow costs in excess of
maximum amounts for any facility with patient days
covered by Medicare, including days requiring
coinsurance, in excess of twelve per cent of
annual patient days which also has patient days
covered by Medicaid in excess of fifty per cent of
annual patient days; (B) may establish a pilot
program whereby costs in excess of maximum amounts
shall be allowed for beds in a nursing home which
has a managed care program and is affiliated with
a hospital licensed under chapter 368v; and (C)]
may establish rates whereby allowable costs may
exceed such maximum amounts for beds approved on
or after July 1, 1991, which are restricted to use
by patients with acquired immune deficiency
syndrome or traumatic brain injury.
(4) For the fiscal year ending June 30, 1992,
(A) no facility shall receive a rate that is less
than the rate it received for the rate year ending
June 30, 1991; (B) no facility whose rate, if
determined pursuant to this subsection, would
exceed one hundred twenty per cent of the
state-wide median rate, as determined pursuant to
this subsection, shall receive a rate which is
five and one-half per cent more than the rate it
received for the rate year ending June 30, 1991;
and (C) no facility whose rate, if determined
pursuant to this subsection, would be less than
one hundred twenty per cent of the state-wide
median rate, as determined pursuant to this
subsection, shall receive a rate which is six and
one-half per cent more than the rate it received
for the rate year ending June 30, 1991. For the
fiscal year ending June 30, 1993, no facility
shall receive a rate that is less than the rate it
received for the rate year ending June 30, 1992,
or six per cent more than the rate it received for
the rate year ending June 30, 1992. For the fiscal
year ending June 30, 1994, no facility shall
receive a rate that is less than the rate it
received for the rate year ending June 30, 1993,
or six per cent more than the rate it received for
the rate year ending June 30, 1993. For the fiscal
year ending June 30, 1995, no facility shall
receive a rate that is more than five per cent
less than the rate it received for the rate year
ending June 30, 1994, or six per cent more than
the rate it received for the rate year ending June
30, 1994. FOR THE FISCAL YEARS ENDING JUNE 30,
1996, AND JUNE 30, 1997, NO FACILITY SHALL RECEIVE
A RATE THAT IS MORE THAN THREE PER CENT MORE THAN
THE RATE IT RECEIVED FOR THE PRIOR RATE YEAR. For
the fiscal years ending June 30, 1992, and June
30, 1993, the commissioner of social services
shall exclude fair rent from any rate increase
maximums established pursuant to this subsection
for a facility which has undergone a material
change in circumstances related to fair rent. For
the fiscal year ending June 30, 1993, the
commissioner of social services shall exclude the
cost efficiency adjustment for indirect costs from
any rate increase maximums established pursuant to
this subsection. Thereafter, the commissioner of
social services may exclude fair rent from any
rate increase maximums established pursuant to
this subdivision for a facility which has
undergone a material change in circumstances
related to fair rent.
(5) For the purpose of determining allowable
fair rent, a facility with allowable fair rent
less than the twenty-fifth percentile of the
state-wide allowable fair rent shall be reimbursed
as having allowable fair rent equal to the
twenty-fifth percentile of the state-wide
allowable fair rent, PROVIDED FOR THE FISCAL YEARS
ENDING JUNE 30, 1996, AND JUNE 30, 1997, THE
REIMBURSEMENT MAY NOT EXCEED THE TWENTY-FIFTH
PERCENTILE OF THE STATE-WIDE ALLOWABLE FAIR RENT
FOR THE FISCAL YEAR ENDING JUNE 30, 1995.
Beginning with the fiscal year ending June 30,
[1993] 1996, any facility with a rate of return on
real property other than land in excess of
[sixteen] ELEVEN per cent shall have such
allowance revised to [sixteen] ELEVEN per cent.
Any facility or its related realty affiliate which
finances or refinances debt through bonds issued
by the State of Connecticut Health and Education
Facilities Authority shall report the terms and
conditions of such financing or refinancing to the
commissioner of social services within thirty days
of completing such financing or refinancing. The
commissioner of social services may revise the
facility's fair rent component of its rate to
reflect any financial benefit the facility or its
related realty affiliate received as a result of
such financing or refinancing, including but not
limited to, reductions in the amount of debt
service payments or period of debt repayment. The
commissioner shall allow actual debt service costs
for bonds issued by the State of Connecticut
Health and Educational Facilities Authority if
such costs do not exceed property costs allowed
pursuant to SUBSECTION (f) OF section [17-311-52f]
17-311-52 of the regulations of Connecticut state
agencies, provided the commissioner may allow
higher debt service costs for such bonds for good
cause. For facilities which first open on or after
October 1, 1992, the commissioner shall determine
allowable fair rent for real property other than
land based on the rate of return for the cost year
in which such bonds were issued. The financial
benefit resulting from a facility financing or
refinancing debt through such bonds shall be
shared between the state and the facility to an
extent determined by the commissioner on a
case-by-case basis and shall be reflected in an
adjustment to the facility's allowable fair rent.
(6) A facility shall receive [a] cost
efficiency [adjustment] ADJUSTMENTS for indirect
costs [if such costs are below one hundred ten per
cent of the state-wide median costs, except for
the fiscal year ending June 30, 1993, such cost
shall be below one hundred thirty per cent of such
median in order for a facility to receive a cost
efficiency adjustment,] and for administrative and
general costs if such costs are below [one hundred
five per cent of] the state-wide median costs. The
cost efficiency [adjustment] ADJUSTMENTS shall
equal twenty-five per cent of the difference
between allowable reported costs and the
applicable [maximum] MEDIAN allowable cost
established pursuant to this subdivision.
(7) For the fiscal year ending June 30, 1992,
allowable operating costs, excluding fair rent,
shall be inflated using the Regional Data
Resources Incorporated McGraw-Hill Health Care
Costs: Consumer Price Index (all urban) --All
Items minus one and one-half per cent. For the
fiscal year ending June 30, 1993, allowable
operating costs, excluding fair rent, shall be
inflated using the Regional Data Resources
Incorporated McGraw-Hill Health Care Costs:
Consumer Price Index (all urban) --All Items
minus one and three-quarters per cent. For the
fiscal years ending June 30, 1994, and June 30,
1995, allowable operating costs, excluding fair
rent, shall be inflated using the Regional Data
Resources Incorporated McGraw-Hill Health Care
Costs: Consumer Price Index (all urban) --All
Items minus two per cent. FOR THE FISCAL YEAR
ENDING JUNE 30, 1996, ALLOWABLE OPERATING COSTS,
EXCLUDING FAIR RENT, SHALL BE INFLATED USING THE
REGIONAL DATA RESOURCES INCORPORATED MCGRAW-HILL
HEALTH CARE COSTS: CONSUMER PRICE INDEX (ALL
URBAN) --ALL ITEMS MINUS TWO AND ONE-HALF PER
CENT. FOR FISCAL YEAR ENDING JUNE 30, 1997,
ALLOWABLE OPERATING COSTS, EXCLUDING FAIR RENT,
SHALL BE INFLATED USING THE REGIONAL DATA
RESOURCES INCORPORATED MCGRAW-HILL HEALTH CARE
COSTS: CONSUMER PRICE INDEX (ALL URBAN) --ALL
ITEMS MINUS THREE AND ONE-HALF PER CENT. For the
fiscal year ending June 30, 1992, and any
succeeding fiscal year, allowable fair rent shall
be those reported in the annual report of
long-term care facilities for the cost year ending
the immediately preceding September thirtieth. The
inflation index to be used pursuant to this
subsection shall be computed to reflect inflation
between the midpoint of the cost year through the
midpoint of the rate year. The department of
social services shall study methods of
reimbursement for fair rent and shall report its
findings and recommendations to the joint standing
committee of the general assembly having
cognizance of matters relating to human services
on or before January 15, 1993.
(8) On and after July 1, 1994, costs shall be
rebased no more frequently than every two years
and no less frequently than every four years, as
determined by the commissioner. The commissioner
shall determine whether and to what extent a
change in ownership of a facility shall occasion
the rebasing of the facility's costs.
(9) The method of establishing rates for new
facilities shall be determined by the commissioner
in accordance with the provisions of this
subsection.
(10) Rates determined under this section
shall comply with federal laws and regulations.
(11) For the fiscal year ending June 30,
1992, and any succeeding fiscal year, one-half of
the initial amount payable in June by the state to
a facility pursuant to this subsection shall be
paid to the facility in June and the balance of
such amount shall be paid in July.
(12) Notwithstanding the provisions of this
subsection, interim rates issued for facilities on
and after July 1, 1991, shall be subject to
applicable fiscal year cost component limitations
established pursuant to subdivision (3) of this
subsection.
(13) A chronic and convalescent nursing home
having an ownership affiliation with and operated
at the same location as a chronic disease hospital
may request that the commissioner approve an
exception to applicable rate-setting provisions
for chronic and convalescent nursing homes and
establish a rate for the fiscal years ending June
30, 1992, and June 30, 1993, in accordance with
regulations in effect June 30, 1991. Any such rate
shall not exceed one hundred sixty-five per cent
of the median rate established for chronic and
convalescent nursing homes established under this
section for the applicable fiscal year.
(14) For the fiscal year ending June 30,
1994, and any succeeding fiscal year, for purposes
of computing minimum allowable patient days,
utilization of a facility's certified beds shall
be determined at a minimum of ninety-five per cent
of capacity, except for new facilities and
facilities which are certified for additional beds
which may be permitted a lower occupancy rate for
the first three months of operation after the
effective date of licensure.
(g) For the fiscal year ending June 30, 1993,
any intermediate care facility for the mentally
retarded with an operating cost component of its
rate in excess of one hundred forty per cent of
the median of operating cost components of rates
in effect January 1, 1992, shall not receive an
operating cost component increase. For the fiscal
year ending June 30, 1993, any intermediate care
facility for the mentally retarded with an
operating cost component of its rate that is less
than one hundred forty per cent of the median of
operating cost components of rates in effect
January 1, 1992, shall have an allowance for real
wage growth equal to thirty per cent of the
increase determined in accordance with SUBSECTION
(q) OF section [17-311-52(q)] 17-311-52 of the
regulations of Connecticut state agencies,
provided such operating cost component shall not
exceed one hundred forty per cent of the median of
operating cost components in effect January 1,
1992. Any facility with real property other than
land placed in service prior to October 1, 1991,
shall, for the fiscal year ending June 30, 1995,
receive a rate of return on real property equal to
the average of the rates of return applied to real
property other than land placed in service for the
five years preceding October 1, 1993. For the
fiscal year ending June 30, 1996, and any
succeeding fiscal year, the rate of return on real
property for property items shall be revised every
five years. The commissioner shall, upon
submission of a request, allow actual debt
service, comprised of principal and interest, in
excess of property costs allowed pursuant to
section 17-311-52 of the regulations of
Connecticut state agencies, provided such debt
service terms and amounts are reasonable in
relation to the useful life and the base value of
the property. For the fiscal year ending June 30,
1995, and any succeeding fiscal year, the
inflation adjustment made in accordance with
subsection (p) of section 17-311-52 of the
regulations of Connecticut state agencies, shall
not be applied to real property costs. FOR THE
FISCAL YEAR ENDING JUNE 30, 1996, AND ANY
SUCCEEDING FISCAL YEAR, THE ALLOWANCE FOR REAL
WAGE GROWTH AS DETERMINED IN ACCORDANCE WITH
SUBSECTION (q) OF SECTION 17-311-52 OF THE
REGULATIONS OF CONNECTICUT STATE AGENCIES, SHALL
NOT BE APPLIED. FOR THE FISCAL YEAR ENDING JUNE
30, 1996, AND ANY SUCCEEDING FISCAL YEAR, NO RATE
SHALL EXCEED THREE HUNDRED SEVENTY-FIVE DOLLARS
PER DAY UNLESS THE COMMISSIONER, IN CONSULTATION
WITH THE COMMISSIONER OF MENTAL RETARDATION,
DETERMINES AFTER A REVIEW OF PROGRAM AND
MANAGEMENT COSTS, THAT A RATE IN EXCESS OF THIS
AMOUNT IS NECESSARY FOR CARE AND TREATMENT OF
FACILITY RESIDENTS.
(h) For the fiscal year ending June 30, 1993,
any home for the aged with an operating cost
component of its rate in excess of one hundred
thirty per cent of the median of operating cost
components of rates in effect January 1, 1992,
shall not receive an operating cost component
increase. For the fiscal year ending June 30,
1993, any home for the aged with an operating cost
component of its rate that is less than one
hundred thirty per cent of the median of operating
cost components of rates in effect January 1,
1992, shall have an allowance for real wage growth
equal to sixty-five per cent of the increase
determined in accordance with SUBSECTION (q) OF
section [17-311-52(q)] 17-311-52 of the
regulations of Connecticut state agencies,
provided such operating cost component shall not
exceed one hundred thirty per cent of the median
of operating cost components in effect January 1,
1992. Beginning with the fiscal year ending June
30, 1993, for the purpose of determining allowable
fair rent, a home for the aged with allowable fair
rent less than the twenty-fifth percentile of the
state-wide allowable fair rent shall be reimbursed
as having allowable fair rent equal to the
twenty-fifth percentile of the state-wide
allowable fair rent. FOR THE FISCAL YEAR ENDING
JUNE 30, 1996, AND ANY SUCCEEDING FISCAL YEAR, THE
ALLOWANCE FOR REAL WAGE GROWTH AS DETERMINED IN
ACCORDANCE WITH SUBSECTION (q) OF SECTION
17-311-52 OF THE REGULATIONS OF CONNECTICUT STATE
AGENCIES, SHALL NOT BE APPLIED. FOR THE FISCAL
YEAR ENDING JUNE 30, 1996, AND ANY SUCCEEDING
FISCAL YEAR, THE INFLATION ADJUSTMENT MADE IN
ACCORDANCE WITH SUBSECTION (p) OF SECTION
17-311-52 OF THE REGULATIONS OF CONNECTICUT STATE
AGENCIES, SHALL NOT BE APPLIED TO REAL PROPERTY
COSTS.
(i) NOTWITHSTANDING THE PROVISIONS OF THIS
SECTION, THE COMMISSIONER OF SOCIAL SERVICES SHALL
ESTABLISH A FEE SCHEDULE FOR PAYMENTS TO BE MADE
TO CHRONIC DISEASE HOSPITALS ASSOCIATED WITH
CHRONIC AND CONVALESCENT NURSING HOMES TO BE
EFFECTIVE ON AND AFTER JULY 1, 1995. THE FEE
SCHEDULE MAY BE ADJUSTED ANNUALLY BEGINNING JULY
1, 1997, TO REFLECT NECESSARY INCREASES IN THE
COST OF SERVICES.
Sec. 25. Subsection (a) of section 17b-239 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) The rate to be paid by the state to
hospitals receiving appropriations granted by the
general assembly and to freestanding chronic
disease hospitals, providing services to persons
aided or cared for by the state for routine
services furnished to state patients, shall be
based upon reasonable cost to such hospital, or
the charge to the general public for ward services
or the lowest charge for semiprivate services if
the hospital has no ward facilities, imposed by
such hospital, whichever is lowest, except to the
extent, if any, that the commissioner in his
discretion determines that a greater amount is
appropriate in the case of hospitals serving a
disproportionate share of indigent patients. Such
rate shall be promulgated annually by the
commissioner of social services. Nothing contained
herein shall authorize a payment by the state for
such services to any such hospital in excess of
the charges made by such hospital for comparable
services to the general public. NOTWITHSTANDING
THE PROVISIONS OF THIS SECTION, ON AND AFTER JULY
1, 1995, RATES PAID TO FREESTANDING CHRONIC
DISEASE HOSPITALS SHALL NOT EXCEED RATES PAID IN
RATE PERIODS ENDING IN 1995 PLUS THE INFLATION
FACTOR ANNUALLY APPLIED IN DETERMINING ACUTE CARE
INPATIENT HOSPITAL RATES UNDER THE MEDICAID
PROGRAM. A FREESTANDING CHRONIC DISEASE HOSPITAL
HAVING MORE THAN AN AVERAGE OF FIFTY PER CENT OF
ITS INPATIENT DAYS PAID FOR BY THE DEPARTMENT MAY
REQUEST THAT THE COMMISSIONER USE THE COST OF
SERVICE FOR THE RATE PERIOD ENDING IN 1995 IN LIEU
OF RATE PAID FOR THE PERIOD WHEN DETERMINING THE
RATES TO BE PAID ON AND AFTER JULY 1, 1995.
Sec. 26. Section 17b-266 of the general
statutes is amended by adding subsection (d) as
follows:
(NEW) (d) The commissioner shall pay all
capitation claims which would otherwise be
reimbursed to the health plans described in
subsection (b) of this section in June, 1997, no
later than July 31, 1997.
Sec. 27. Section 17b-362 of the general
statutes is repealed and the following is
substituted in lieu thereof:
Each nursing home which participates in the
Medicaid program may [, in writing,] request of
the dispensing pharmacist that a prescription be
dispensed in an amount equal to a five-day supply
whenever (1) a drug product is prescribed for the
first time for a patient who is a Medicaid
recipient or (2) a refill of a prescription is
necessary for such a patient and the patient's
discharge from the home is imminent.
Sec. 28. (NEW) The commissioner of social
services may establish a one-year demonstration
program, to be administered in accordance with
federal law, for the purpose of exploring methods
of reducing destruction of prescription drugs in
long-term care facilities. Under such program,
facilities may submit individual or joint
proposals to the commissioner, on or before August
1, 1995, to provide pharmaceutical services in a
manner which reduces the destruction of drugs,
which may include an exception to subsection (h)
of section 21a-70 of the general statutes, to
allow a long-term care facility, which employs a
pharmacist less than thirty-five hours per week,
to purchase drugs from a wholesaler or
manufacturer or the implementation of a formulary.
No proposal shall involve the return to a licensed
pharmacy of drugs which have previously been
dispensed. The commissioner may approve the
proposals of up to ten facilities, provided no
proposal shall be approved which would increase
state expenditures. Proposals which are approved
shall be implemented January 1, 1996. The
commissioner of social services shall report the
results of such program to the joint standing
committees of the general assembly having
cognizance of matters relating to human services
and public health on or before February 15, 1997.
Sec. 29. (NEW) (a) As used in this section,
(1) "person" means person, as defined in section
12-1 of the general statutes; (2) "affected
taxable period" means any taxable period ending on
or before March 31, 1995, (A) for which a tax
return was required by law to be filed with the
commissioner of revenue services and for which no
return has been previously filed or made by the
commissioner on behalf of such person, (B) for
which a tax return was previously filed but not
examined by the department of revenue services and
on which return the tax was underreported, (C) for
which interest or a penalty was imposed for the
late payment of tax, (D) for which interest or a
penalty was imposed, upon examination of a tax
return by the department, for underreporting of
the tax or (E) for which interest or an addition
to tax was made where a person failed to file a
tax return and the commissioner made a return on
behalf of such person; (3) "affected person" means
a person owing any tax for an affected taxable
period; (4) "tax" means any tax imposed by any law
of this state and required to be collected by the
department; (5) "commissioner" means the
commissioner of revenue services; and (6)
"department" means the department of revenue
services.
(b) The commissioner shall establish a tax
amnesty program for persons owing any tax for any
affected taxable period. Amnesty tax return forms
shall be prepared by the commissioner and shall
provide for specification by the affected person
of the tax and the affected taxable period for
which amnesty is being sought. The tax amnesty
program shall be conducted during the period
September 1, 1995, to November 30, 1995,
inclusive. The tax amnesty program shall provide
that, upon written application by the affected
person, and payment by such person of all taxes
and interest due from such person to this state
for affected tax periods, the commissioner shall
not seek to collect any penalties that may be
applicable and shall not seek criminal prosecution
for any affected person for an affected taxable
period for which amnesty has been granted. For the
purposes of computing interest due for the
affected taxable period for which tax is due
pursuant to subparagraph (A) or (B) of subdivision
(1) of subsection (a) of this section, such
interest shall be computed at the rate of one per
cent per month or fraction thereof. Amnesty shall
be granted only to those affected persons who have
applied for amnesty during the tax amnesty period
and who have paid the tax and interest due upon
filing the amnesty tax return or have entered into
an instalment payment agreement for reasons of
financial hardship upon the terms and conditions
set by the commissioner. In the case of the
failure of an affected person to pay any
instalment at the time such instalment payment is
due under such agreement, the agreement shall
cease to be effective and the balance of the
amounts required to be paid thereunder shall be
due immediately. Failure to pay all amounts due to
this state shall invalidate any amnesty granted
pursuant to this section.
(c) Amnesty shall not be granted pursuant to
subsection (b) of this section to any affected
person who (1) has received notice from the
department that an audit examination is being
conducted in relation to the affected taxable
period for which amnesty is being sought or (2) is
a party to any criminal investigation or to any
civil or criminal litigation that is pending on
the effective date of this act, in any court of
the United States or this state for failure to
file or failure to pay, or for fraud in relation
to any tax imposed by any law of this state and
required to be collected by the department.
(d) Notwithstanding any provision of law to
the contrary, the commissioner may do all things
necessary in order to provide for the timely
implementation of this section.
Sec. 30. Section 12-700 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) There is hereby imposed on the Connecticut
taxable income of each resident of this state a
tax (1) at the rate of four and one-half per cent
of such Connecticut taxable income for taxable
years commencing on or after January 1, 1992, AND
PRIOR TO JANUARY 1, 1996.
(2) FOR TAXABLE YEARS COMMENCING ON OR AFTER
JANUARY 1, 1996, BUT PRIOR TO JANUARY 1, 1997, IN
ACCORDANCE WITH THE FOLLOWING SCHEDULE:
(A) FOR ANY PERSON FILING AS AN UNMARRIED
INDIVIDUAL OR AS A MARRIED INDIVIDUAL FILING
SEPARATELY:
CONNECTICUT TAXABLE INCOME RATE OF TAX
NOT OVER $2,250 3.0%
OVER $2,250 $67.50, PLUS 4.5%
OF THE EXCESS OVER
$2,250
(B) FOR PERSONS FILING AS HEADS OF HOUSEHOLDS:
CONNECTICUT TAXABLE INCOME RATE OF TAX
NOT OVER $3,500 3.0%
OVER $3,500 $105.00, PLUS 4.5%
OF THE EXCESS OVER
$3,500
(C) FOR PERSONS FILING AS MARRIED INDIVIDUALS:
CONNECTICUT TAXABLE INCOME RATE OF TAX
NOT OVER $4,500 3.0%
OVER $4,500 $135.00, PLUS 4.5%
OF THE EXCESS OVER
$4,500
(D) FOR TRUSTS OR ESTATES, THE RATE OF TAX
SHALL BE 4.5% OF THEIR CONNECTICUT TAXABLE INCOME.
(3) FOR TAXABLE YEARS COMMENCING ON OR AFTER
JANUARY 1, 1997, AND THEREAFTER IN ACCORDANCE WITH
THE FOLLOWING SCHEDULE:
(A) FOR ANY PERSON FILING AS AN UNMARRIED
INDIVIDUAL OR AS A MARRIED INDIVIDUAL FILING
SEPARATELY:
CONNECTICUT TAXABLE INCOME RATE OF TAX
NOT OVER $4,500 3.0%
OVER $4,500 $135.00, PLUS 4.5%
OF THE EXCESS OVER
$4,500
(B) FOR PERSONS FILING AS HEADS OF HOUSEHOLDS:
CONNECTICUT TAXABLE INCOME RATE OF TAX
NOT OVER $7,000 3.0%
OVER $7,000 $210.00, PLUS 4.5%
OF THE EXCESS OVER
$7,000
(C) FOR PERSONS FILING AS MARRIED INDIVIDUALS:
CONNECTICUT TAXABLE INCOME RATE OF TAX
NOT OVER $9,000 3.0%
OVER $9,000 $180.00, PLUS 4.5%
OF THE EXCESS OVER
$9,000
(D) FOR TRUSTS OR ESTATES, THE RATE OF TAX
SHALL BE 4.5% OF THEIR CONNECTICUT TAXABLE INCOME.
The provisions of this subsection shall apply to
resident trusts and estates and, wherever
reference is made in this subsection to residents
of this state, such reference shall be construed
to include resident trusts and estates, provided
any reference to a resident's Connecticut adjusted
gross income derived from sources without this
state or to a resident's Connecticut adjusted
gross income shall be construed, in the case of a
resident trust or estate, to mean the resident
trust or estate's Connecticut taxable income
derived from sources without this state and the
resident trust or estate's Connecticut taxable
income, respectively.
(b) There is hereby imposed on the
Connecticut taxable income derived from or
connected with sources within this state of each
nonresident a tax [at the rate of four and
one-half per cent of such Connecticut taxable
income for taxable years commencing on or after
January 1, 1992. The tax] WHICH shall be the
product of an amount equal to the tax computed as
if such nonresident were a resident, [and then]
multiplied by a fraction, the numerator of which
is the nonresident's Connecticut adjusted gross
income derived from or connected with sources
within this state and the denominator of which is
the nonresident's Connecticut adjusted gross
income, provided, if the nonresident's Connecticut
adjusted gross income is less than such
nonresident's Connecticut adjusted gross income
derived from or connected with sources within this
state, (1) such nonresident's Connecticut adjusted
gross income derived from or connected with
sources within this state, reduced by the amount
of the exemption provided in section 12-702, shall
be such nonresident's Connecticut taxable income
derived from or connected with sources within this
state and SHALL BE MULTIPLIED BY THE TAX RATE
SPECIFIED IN SUBSECTION (a) OF THIS SECTION FOR
THE PURPOSES OF DETERMINING THE TAX PURSUANT TO
THIS SECTION AND (2) such nonresident's
Connecticut adjusted gross income derived from or
connected with sources within this state shall be
such nonresident's Connecticut adjusted gross
income for the purposes of determining the credit
pursuant to section 12-703. The provisions of this
subsection shall also apply to nonresident trusts
and estates and, wherever reference is made in
this subsection to nonresidents of this state,
such reference shall be construed to include
nonresident trusts and estates, provided any
reference to a nonresident's Connecticut adjusted
gross income derived from sources within this
state or to a nonresident's Connecticut adjusted
gross income shall be construed, in the case of a
nonresident trust or estate, to mean the
nonresident trust or estate's Connecticut taxable
income derived from sources within this state and
the nonresident trust or estate's Connecticut
taxable income, respectively.
(c) (1) There is hereby imposed on the
Connecticut taxable income derived from or
connected with sources within this state of each
part-year resident a tax [at the rate of four and
one-half per cent of such Connecticut taxable
income for taxable years commencing on or after
January 1, 1992. The tax] WHICH shall be a product
equal to the tax computed as if such part-year
resident were a resident, [and then] multiplied by
a fraction, the numerator of which is the
part-year resident's Connecticut adjusted gross
income derived from or connected with sources
within this state, as described in subsection (a)
of section 12-717, and the denominator of which is
the part-year resident's Connecticut adjusted
gross income, as described in subdivision (2) of
this subsection, provided, if the part-year
resident's Connecticut adjusted gross income is
less than such part-year resident's Connecticut
adjusted gross income derived from or connected
with sources within this state, (A) such part-year
resident's Connecticut adjusted gross income
derived from or connected with sources within this
state, reduced by the amount of the exemption
provided in section 12-702, shall be such
part-year resident's Connecticut taxable income
derived from or connected with sources within this
state and SHALL BE MULTIPLIED BY THE TAX RATE
SPECIFIED IN SUBSECTION (a) OF THIS SECTION FOR
THE PURPOSES OF DETERMINING THE TAX PURSUANT TO
THIS SECTION AND (B) such part-year resident's
Connecticut adjusted gross income derived from or
connected with sources within this state shall be
such part-year resident's adjusted gross income
for the purposes of determining the credit
pursuant to section 12-703. The provisions of this
subsection shall apply to part-year resident
trusts and, wherever reference is made in this
subsection to part-year residents, such reference
shall be construed to include part-year resident
trusts, provided any reference to a part-year
resident's Connecticut adjusted gross income
derived from sources within this state or a
part-year resident's Connecticut adjusted gross
income shall be construed, in the case of a
part-year resident trust, to mean the part-year
resident trust's Connecticut taxable income
derived from sources within this state and the
part-year resident trust's Connecticut taxable
income, respectively.
(2) For purposes of subdivision (1) of this
subsection and subsection (a), the Connecticut
adjusted gross income of a part-year resident (A)
changing his status from resident to nonresident
shall be increased or decreased, as the case may
be, by the items accrued under subdivision (1) of
subsection (c) of section 12-717, to the extent
not otherwise includible in Connecticut adjusted
gross income for the taxable year and (B) changing
his status from nonresident to resident shall be
increased or decreased, as the case may be, by the
items accrued under subdivision (2) of subsection
(c) of section 12-717, to the extent included in
Connecticut adjusted gross income for the taxable
year.
(d) The provisions of this chapter shall be
applicable with respect to any person, trust or
estate. Whenever, in this chapter, "any person"
appears without "trust or estate", the reference
to any person shall be deemed to include any trust
and any estate unless, in the context of the
particular provision, the reference to any person
could not be applicable in the case of a trust or
in the case of an estate.
Sec. 31. (NEW) (a) Any resident of this state,
as defined in subdivision (1) of subsection (a) of
section 12-701 of the general statutes, subject to
the tax under chapter 229 of the general statutes
for any taxable year shall be entitled to a credit
in determining the amount of tax liability under
this chapter for a portion of the amount of
property tax, as defined in this section, actually
paid by that person on that person's primary
residence or motor vehicles. The credit allowed
under the provisions of this section shall be no
more than one hundred dollars of the property tax
paid during the taxpayer's taxable year. No credit
shall be allowable for property taxes paid with
respect to an assessment year beginning prior to
October 1, 1995.
(b) For the purposes of this section "property
tax" means the amount of property tax actually
paid to a Connecticut political subdivision by a
taxpayer on the taxpayer's primary residence or
motor vehicles, and "motor vehicle" means a motor
vehicle, as defined in section 14-1 of the general
statutes, which is privately owned.
(c) The amount of tax due pursuant to sections
12-705 and 12-722 of the general statutes shall be
calculated without regard to this credit.
Sec. 32. Subsection (a) of section 12-214 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) Every mutual savings bank, savings and
loan association and every company engaged in the
business of carrying passengers for hire over the
highways of this state in common carrier motor
vehicles doing business in this state, and every
other company carrying on, or having the right to
carry on, business in this state, including a
dissolved corporation which continues to conduct
business, except (1) as to income years beginning
prior to January 1, 1973, insurance companies, and
as to income years beginning on or after January
1, 1973, insurance companies incorporated or
organized under the laws of any other state or
foreign government, (2) companies exempt by the
federal corporation net income tax law, and any
company which qualifies as a Domestic
International Sales Corporation (DISC) as defined
in Section 992 of the Internal Revenue Code of
1986, or any subsequent corresponding internal
revenue code of the United States, as from time to
time amended, and as to which a valid election
under Subsection (b) of said Section 992 to be
treated as a DISC is effective, but excluding
companies, other than any company which so
qualifies as, and so elects to be treated as, a
DISC, which elect not to be subject to such tax
under any provision of said Internal Revenue Code
other than said Subsection (b) of said Section
992, (3) companies subject to gross earnings taxes
under chapter 210, (4) companies all of whose
properties in this state are operated by companies
subject to gross earnings taxes under chapter 210,
(5) cooperative housing corporations, as defined
for federal income tax purposes, (6) any
organization or association of two or more persons
established and operated for the exclusive purpose
of promoting the success or defeat of any
candidate for public office or of any political
party or question or constitutional amendment to
be voted upon at any state or national election or
for any other political purpose, (7) any company
which is not owned or controlled, directly or
indirectly, by any other company, the gross annual
revenues of which in the most recently completed
year did not exceed one hundred million dollars
and which engaged in the research, design,
manufacture, sale or installation of alternative
energy systems or motor vehicles powered in whole
or in part by electricity, natural gas or solar
energy including their parts and components,
provided at least seventy-five per cent of the
gross annual revenues of such company are derived
from such research, design, manufacture, sale or
installation and (8) any company which engages in
the research, design, manufacture or sale in
Connecticut of aero-derived gas turbine systems in
advanced industrial applications, which
applications are developed after October 1, 1992,
which are limited to simple-cycle systems, humid
air, steam or water injection, recuperation or
intercooling technologies, including their parts
and components, to the extent that such company's
net income is directly attributable to such
purposes, shall pay, annually, a tax or excise
upon its franchise for the privilege of carrying
on or doing business, owning or leasing property
within the state in a corporate capacity or as an
unincorporated association taxable as a
corporation for federal income tax purposes or
maintaining an office within the state, such tax
to be measured by the entire net income as herein
defined received by such corporation or
association from business transacted within the
state during the income year and to be assessed
for each income year commencing prior to January
1, 1995, at the rate of eleven and one-half per
cent, for income years commencing on or after
January 1, 1995, and prior to January 1, 1996, at
the rate of eleven and one-quarter per cent, for
income years commencing on or after January 1,
1996, and prior to January 1, 1997, at the rate of
[eleven] TEN AND THREE-FOURTHS per cent, for
income years commencing on or after January 1,
1997, and prior to January 1, 1998, at the rate of
ten and one-half per cent, [and] for income years
commencing on or after January 1, 1998, [at the
rate of ten per cent] AND PRIOR TO JANUARY 1,
1999, AT THE RATE OF NINE PER CENT AND ONE-HALF
PER CENT, FOR INCOME YEARS COMMENCING ON OR AFTER
JANUARY 1, 1999, AND PRIOR TO JANUARY 1, 2000, AT
THE RATE OF EIGHT AND ONE-HALF PER CENT, AND FOR
INCOME YEARS COMMENCING ON OR AFTER JANUARY 1,
2000, AT THE RATE OF SEVEN AND ONE-HALF PER CENT.
The exemption of companies included in
subdivisions (7) and (8) of this section shall not
be allowed with respect to any income year of any
such company commencing on or after January 1,
1998, and any such company claiming such exemption
for any income years commencing on or after
January 1, 1985, but prior to January 1, 1998,
shall be required to file a corporation business
tax return in accordance with section 12-222 for
each such income year.
Sec. 33. Section 12-217o of the general
statutes is repealed and the following is
substituted in lieu thereof:
There shall be allowed as a credit against the
tax imposed on any corporation under this chapter
WITH RESPECT TO ANY TAXABLE YEAR OF SUCH
CORPORATION COMMENCING ON OR AFTER JANUARY 1,
1997, (1) that has more than two hundred fifty
full-time, permanent employees but not more than
eight hundred full-time, permanent employees, an
amount equal to five per cent of the amount spent
by the corporation on machinery and equipment
acquired for and installed in a facility in this
state, which amount exceeds the amount spent by
such corporation during the preceding income year
of the corporation for such expenditures or (2)
that has not more than two hundred fifty
full-time, permanent employees, an amount equal to
ten per cent of the amount spent by the
corporation on machinery and equipment acquired
for and installed in a facility in this state,
which amount exceeds the amount spent by such
corporation during the preceding income year of
the corporation for such expenditures.
Sec. 34. Section 12-217s of the general
statutes is repealed and the following is
substituted in lieu thereof:
There shall be allowed as a credit against the
tax imposed on any corporation under this chapter,
except corporations employing fewer than one
hundred employees, with respect to any taxable
year of such corporation commencing on or after
January 1, [1995] 1997, an amount equal to fifty
per cent of the amount spent by such corporation
for the direct costs of transportation management
programs and services related thereto instituted
by such corporation in response to the provisions
of sections 13b-38o to 13b-38y, inclusive, not to
exceed two hundred fifty dollars annually per
employee participating in alternative means of
commuting pursuant to transportation management
programs. The total amount of credits available
under the provisions of this section shall not
exceed one million five hundred thousand dollars.
The department of transportation shall adopt
regulations in accordance with the provisions of
chapter 54 which shall include, but not be limited
to, establishing procedures for a corporation to
obtain and qualify for the tax credit.
Sec. 35. Section 12-217t of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) There shall be allowed as a credit against
the tax imposed by [chapter 207,] this chapter [,]
AND chapter 208a, [209, 210, 211 or 212 or against
the tax imposed pursuant to section 12-202a] in an
amount determined under the provisions of
subsection (b) of this section with respect to the
personal property taxes paid during any income
year, on electronic data processing equipment. THE
CREDIT SHALL BE ALLOWED AGAINST THE TAX IMPOSED BY
CHAPTER 207, 209, 210, 211 OR 212 OR THE TAX
IMPOSED PURSUANT TO SECTION 12-202a WITH RESPECT
TO THE PERSONAL PROPERTY TAXES PAID FOR ELECTRONIC
DATA PROCESSING EQUIPMENT IN INCOME YEARS
COMMENCING ON OR AFTER JANUARY 1, 1997. For the
purposes of this section "electronic data
processing equipment" means computers, printers,
peripheral computer equipment, bundled software
and any computer-based equipment acting as a
computer as defined under Section 168 of the
Internal Revenue Code of 1986, or any subsequent
corresponding internal revenue code of the United
States, as from time to time amended, and any
other such equipment reported as a Code 20 on the
Personal Property Declaration as prescribed by the
secretary of the office of policy and management
pursuant to section 12-27.
(b) The amount allowed as a credit in any
income year shall be the full amount of the tax on
such electronic data processing equipment paid
pursuant to section 12-71 or 12-80a, and as
defined under Section 168 of the Internal Revenue
Code of 1986, or any subsequent corresponding
internal revenue code of the United States, as
from time to time amended, provided no credit
shall be allowed for the payment of any interest
or penalty on the tax.
(c) The credit provided for by this section
shall be allowed AGAINST THE TAXES IMPOSED BY THIS
CHAPTER AND CHAPTER 208a, for any taxes owed on
the grand list of October 1, 1994, AND AGAINST THE
TAXES IMPOSED BY CHAPTER 207, 209, 210, 211 OR 212
OR SECTION 12-202a FOR ANY TAXES OWED ON THE GRAND
LIST OF OCTOBER 1, 1996, and each grand list
annually thereafter or included in the list
prescribed under section 12-80a for such grand
list. Such credits shall first be used by the
taxpayer against the corporation business tax
under this chapter, if any, and then may be used
against any tax paid by the taxpayer under the
provisions of chapter 207, 208a, 209, 210, 211 or
212 or the tax imposed upon a health care center
under section 12-202a AS EACH SUCH CHAPTER OR
SECTION BECOMES ELIGIBLE FOR SUCH CREDIT. The
amount of credits allowable under this section in
any tax year against the taxes imposed by chapter
207, 208, 208a, 209, 210, 211 or 212 or against
the tax imposed on health care centers, under the
provisions of section 12-202a, shall be allowable
only after all other credits allowable against
such taxes for such tax year have been applied.
(d) In the case of leased electronic data
processing equipment, the lessee, not the lessor,
shall be entitled to claim the credit allowed
pursuant to this section if the lease by its terms
or operation imposes on the lessee the cost of the
personal property taxes on such equipment,
provided the lessor and lessee may elect, in
writing, that the lessor may claim the credit
provided by this section. Such election shall be
attached to the tax return filed by the lessor on
which such credit is claimed.
(e) In the case of taxpayers filing a combined
return pursuant to section 12-223a, the credit
provided by this section shall be allowed on a
combined basis, such that the amount of personal
property taxes paid by such taxpayers with respect
to such equipment may be claimed as a tax credit
against the combined tax liability of such
taxpayers as determined under this chapter.
Credits available to taxpayers which are subject
to tax under this chapter but not subject to tax
under chapter 207, 208a, 209, 210, 211 or 212 or
the tax imposed on health care centers under the
provisions of section 12-202a shall be used prior
to credits of companies included in such combined
return which are also subject to tax under said
chapter 207, 208a, 209, 210, 211 or 212 or the tax
imposed upon health centers pursuant to the
provisions of section 12-202a.
Sec. 36. Subsection (b) of section 127 of
public act 91-3 of the June special session, as
amended by section 40 of special act 92-13,
section 32 of public act 92-5 of the May special
session and section 46 of public act 92-17 of the
May special session, is repealed and the following
is substituted in lieu thereof:
(b) The notes shall be designated economic
recovery notes and shall be issued on or after
[the effective date of public act 91-3 of the June
special session, as amended by this act] AUGUST
22, 1991, whenever the treasurer determines that
the cash requirements of the general fund must be
met by such borrowing and shall be scheduled so as
to minimize the need for additional temporary
borrowing pursuant to section 3-16 of the general
statutes. Such notes shall mature in such amounts
as are necessary in order to retire principal
amounts of not less than fifty million dollars in
any fiscal year, provided any scheduled payments
shall not exceed: During the fiscal year ending
June 30, 1992, two hundred thirty-seven million
dollars; during the fiscal year ending June 30,
1993, two hundred fifty million dollars; during
the fiscal year ending June 30, 1994, three
hundred million dollars; and during the fiscal
year ending June 30, 1995, one hundred fifty
million dollars; PROVIDED SUCH NOTES MAY BE
RENEWED OR REFUNDED AT OR PRIOR TO MATURITY,
WHENEVER THE TREASURER DETERMINES THAT THE CASH
REQUIREMENTS OF THE GENERAL FUND MUST BE MET BY
SUCH RENEWAL OR REFUNDING SO THAT THE PRINCIPAL
THEREOF SHALL MATURE IN SUCH AMOUNTS AS ARE
NECESSARY IN ORDER TO RETIRE NOT LESS THAN THE
FOLLOWING PRINCIPAL AMOUNTS IN THE FISCAL YEARS AS
FOLLOW: DURING THE FISCAL YEAR ENDING JUNE 30,
1997, SEVENTY-NINE MILLION DOLLARS; DURING THE
FISCAL YEAR ENDING JUNE 30, 1998, SEVENTY-NINE
MILLION DOLLARS; AND DURING THE FISCAL YEAR ENDING
JUNE 30, 1999, EIGHTY-TWO MILLION SEVEN HUNDRED
TEN THOUSAND DOLLARS OR THE CURRENT PRINCIPAL
BALANCE OF NOTES THEN OUTSTANDING. Such notes, in
the amount of one hundred million dollars maturing
in fiscal year ending June 30, 1993, may be
renewed or refunded at or prior to maturity
whenever the treasurer determines that the cash
requirements of the general fund must be met by
such renewal or refunding, provided the maturity
or maturities thereof are within the limitations
set forth above except for the fiscal year ending
June 30, 1995.
Sec. 37. Subsection (c) of section 127 of
public act 91-3 of the June special session is
repealed and the following is substituted in lieu
thereof:
(c) All such notes shall be general
obligations of the state and the full faith and
credit of the state of Connecticut are pledged for
the payment of the principal of and interest on
said notes as the same shall become due, and
accordingly and as part of the contract of the
state with the holders of said notes,
appropriation of all amounts necessary for
punctual payment of such principal and interest is
hereby made, and the treasurer shall pay such
principal and interest as the same become due. All
such notes shall be sold at not less than par and
accrued interest in such manner and on such terms
as the treasurer may determine, in the best
interest of the state, and shall be signed in the
name of the state and on its behalf by the
treasurer. All such notes shall mature as
aforesaid and before [July 1, 1996] JUNE 30, 1999,
in such principal amounts and at such times, bear
such date or dates, be payable at such place or
places, bear interest at such rate or different or
varying rates, payable at such time or times, be
in such denominations, be in such form with or
without interest coupons attached, carry such
registration and transfer privileges, be payable
in such medium of payment, be subject to such
terms of redemption with or without premium and
have such additional security, covenant or
contract provisions, including credit facilities
which may include a letter of credit or insurance
policy from a commercial bank or insurance company
authorized to do business within or without the
state, and the necessary or appropriate provisions
to ensure the exclusion of interest on the notes
from taxation under the Internal Revenue Code of
1986, or any subsequent corresponding internal
revenue code of the United States, as from time to
time amended, as appropriate or necessary to
improve their marketability, as the treasurer
shall determine prior to their issuance. In
connection with any such credit facility, the
treasurer may enter into any reimbursement
agreements, remarketing agreements, standby
purchase agreements or any other necessary or
appropriate agreements securing or insuring such
notes, on such terms and conditions as the
treasurer determines to be in the best interest of
the state. In the event the credit facility is
drawn upon to pay the principal of or interest on
such notes, the full faith and credit of the state
is pledged to the repayment of the amount so drawn
and the treasurer is authorized to include such
pledge in any such agreement as part of the
contract with the provider of such credit
facility. The treasurer shall apply any
appropriation for the payment of such notes to
such reimbursement repayment if such credit
facility is drawn upon. Any expense incurred in
connection with the initial issuance of the
economic recovery notes shall be paid from the
accrued interest and premiums or otherwise from
the general fund. All such notes, their transfer
and the income therefrom including any profit on
the sale or transfer thereof shall at all times be
exempt from all taxation by the state or under its
authority and are hereby made and declared to be
(1) legal investments for savings banks and
trustees unless otherwise provided in the
instrument creating the trust, (2) securities in
which all public officers and bodies, all
insurance companies and associations and persons
carrying on an insurance business, all banks,
bankers, trust companies, savings banks and
savings associations, including savings and loan
associations, building and loan associations,
investment companies and persons carrying on a
banking or investment business, all
administrators, guardians, executors, trustees and
other fiduciaries and all persons whatsoever who
are or may be authorized to invest in notes of the
state, may properly and legally invest funds
including capital in their control or belonging to
them and (3) securities which may be deposited
with and shall be received by all public officers
and bodies for any purpose for which the deposit
of notes of the state is or may be authorized.
Sec. 38. Section 12-568 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) The executive director, with the advice
and consent of the board, shall determine the
number of times a lottery shall be held in each
year, the form and price of the tickets therefor
and shall award prizes to winning participants,
determined in a manner designated by the executive
director. The proceeds of the sale of tickets
shall be deposited in the lottery fund from which
prizes shall be paid, upon vouchers signed by the
executive director, or by either of two persons
designated and authorized by him, in such numbers
and amounts as the executive director determines.
(b) The executive director, with the advice
and consent of the board, shall conduct special
instant lottery games. The proceeds of the sale of
instant lottery game tickets shall be deposited in
the lottery fund from which prizes shall be paid
in the manner specified in subsection (a) of this
section.
(c) The executive director, with the advice
and consent of the board, shall conduct daily
lottery games. The proceeds of the sale of daily
lottery game tickets shall be deposited in the
lottery fund from which prizes shall be paid in
the manner specified in subsection (a) of this
section.
(d) The executive director, with the advice
and consent of the board, shall establish a
two-year pilot program for the sale of product
advertising on lottery tickets, play slips and
other lottery media. The executive director, with
the advice and consent of the board, may enter
into agreements for the sale of product
advertising on lottery tickets, play slips and
other lottery media. Upon the termination of said
pilot program, the division shall review the
progress of the pilot program and may, with the
advice and consent of the board, solicit bids for
the continuation of advertising on lottery
tickets, play slips and other lottery media.
(e) (1) From time to time the executive
director shall estimate, and certify to the
comptroller, that portion of the balance in the
lottery fund which exceeds the current needs of
the division for the payment of prizes and for the
payment of compensation under subsections (a), (c)
and (d) of section 12-569. Upon receipt of any
such certification, the amount so certified shall
be transferred from the lottery fund to the
general fund.
(2) On September 1, 1989, the executive
director shall estimate, and certify to the
comptroller, the amount of moneys received or
collected by the state from lottery games and not
claimed as prizes. The amount of moneys so
certified, but not exceeding one million dollars,
shall, upon receipt of such certification, be
transferred by the comptroller to the general fund
and, for the fiscal year ending June 30, 1990,
shall be credited to the appropriation for the
department of education. Seventy per cent of such
appropriation shall be for the purposes of the
interdistrict cooperative grant program and thirty
per cent of such appropriation shall be for the
purposes of section 10-155i.
(f) THE EXECUTIVE DIRECTOR, WITH THE ADVICE
AND CONSENT OF THE BOARD, MAY ENTER INTO
AGREEMENTS WITH ONE OR MORE STATES FOR THE
PROMOTION AND OPERATION OF JOINT LOTTERY GAMES.
Sec. 39. Subsection (1) of section 12-408 of
the general statutes, as amended by section 17 of
public act 94-4 of the May special session, is
repealed and the following is substituted in lieu
thereof:
(1) For the privilege of making any sales as
defined in subsection (2) of section 12-407, at
retail, in this state for a consideration, a tax
is hereby imposed on all retailers at the rate of
six per cent of the gross receipts of any retailer
from the sale of all tangible personal property
sold at retail or from the rendering of any
services constituting a sale in accordance with
subsection (2) of section 12-407 except, in lieu
of said rate of six per cent, (A) at a rate of
five and one-half per cent of the gross receipts
of any retailer from the sale of any repair or
replacement parts exclusively for use in
machinery, as defined in subsection (34) of
section 12-412, used directly in a manufacturing
or agricultural production process, (B) at a rate
of twelve per cent with respect to each transfer
of occupancy, from the total amount of rent
received for such occupancy of any room or rooms
in a hotel or lodging house for the first period
not exceeding thirty consecutive calendar days,
(C) at a rate of four and one-half per cent of the
gross receipts of any retailer from the sale of
any motor vehicle to any person who is a member of
the armed forces of the United States and is on
full-time active duty in Connecticut but whose
permanent residence is in another state, (D) with
respect to the sales of vessels to any resident of
another state, at a rate which is the lesser of:
(i) Six per cent of the gross receipts of any
retailer from such sales or (ii) the percentage of
such gross receipts that is payable as a sales tax
by retailers engaged in business in the
purchaser's state of residence, provided such
retailer requires and maintains an affidavit or
other evidence, satisfactory to the commissioner,
concerning the purchaser's state of residence and
(E) with respect to the sales of computer and data
processing services occurring on or after July 1,
[1996] 1997, and prior to July 1, [1997] 1998, at
the rate of five per cent, on or after July 1,
[1997] 1998, and prior to July 1, [1998] 1999, at
the rate of four per cent, on or after July 1,
[1998] 1999, and prior to July 1, [1999] 2000, at
the rate of three per cent, on or after July 1,
[1999] 2000, and prior to July 1, [2000] 2001, at
the rate of two per cent, on and after July 1,
[2000] 2001, and prior to July 1, [2001] 2002, at
the rate of one per cent and on and after July 1,
[2001] 2002, such services shall be exempt from
such tax. The rate of tax imposed by this chapter
shall be applicable to all retail sales upon the
effective date of such rate, except that a new
rate which represents an increase in the rate
applicable to the sale shall not apply to any
sales transaction wherein a binding sales contract
without an escalator clause has been entered into
prior to the effective date of the new rate and
delivery is made within ninety days after the
effective date of the new rate. For the purposes
of payment of the tax imposed under this section,
any retailer of services taxable under subdivision
(i) of subsection (2) of section 12-407 who
computes taxable income, for purposes of taxation
under the Internal Revenue Code of 1986, or any
subsequent corresponding internal revenue code of
the United States, as from time to time amended,
on an accounting basis which recognizes only cash
or other valuable consideration actually received
as income and who is liable for such tax only due
to the rendering of such services may make
payments related to such tax for the period during
which such income is received, without penalty or
interest, without regard to when such service is
rendered.
Sec. 40. Subdivision (19) of section 12-412 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(19) Sales of AND THE STORAGE, USE OR OTHER
CONSUMPTION OF (A) oxygen, blood or blood plasma
when sold for medical use; [sales of] (B)
artificial devices individually designed,
constructed or altered solely for the use of a
particular handicapped person so as to become a
brace, support, supplement, correction or
substitute for the bodily structure, including the
extremities of the individual, [; sales of] AND
REPAIR SERVICES RENDERED TO PROPERTY DESCRIBED IN
THIS SUBPARAGRAPH; (C) artificial limbs,
artificial eyes and other equipment worn as a
correction or substitute for any functioning
portion of the body, custom-made wigs or
hairpieces for persons with medically diagnosed
total and permanent hair loss as a result of
disease or the treatment of disease, and
artificial hearing aids [, including repairs to
such hearing aids,] when designed to be worn on
the person of the owner or user, [; sales of] AND
REPAIR SERVICES RENDERED TO PROPERTY DESCRIBED IN
THIS SUBPARAGRAPH; (D) crutches, walkers and wheel
chairs for the use of invalids and handicapped
persons, [; sales, leasing or rental of] AND
REPAIR SERVICES RENDERED ON OR AFTER JANUARY 1,
1991, TO PROPERTY DESCRIBED IN THIS SUBPARAGRAPH;
AND any equipment used in support of or to supply
vital life functions, including oxygen supply
equipment, kidney dialysis machines and any other
such device used in necessary support of vital
life functions, and apnea monitors, AND REPAIR
SERVICES RENDERED TO PROPERTY DESCRIBED IN THIS
SUBPARAGRAPH. AS USED IN THIS SUBDIVISION, "REPAIR
SERVICES" MEANS SERVICES THAT ARE DESCRIBED IN
SUBPARAGRAPH (Q) OR (EE) OF SUBDIVISION (i) OF
SUBSECTION (2) OF SECTION 12-407.
Sec. 41. Subdivision (24) of section 12-412 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(24) Sales of municipal publications such as
information booklets and zoning regulations,
tangible personal property sold by public
libraries, [and] the sale of any property at
auction by a municipality, [whenever the sale of
any such foregoing item is in an amount of less
than five dollars] AND BOOK SALES BY LIBRARY
SUPPORT GROUPS.
Sec. 42. Subdivision (27) of section 12-412 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(27) (A) Sales of any items from one cent
vending machines; OR (B) SALES OF FOOD PRODUCTS,
AS DEFINED IN SUBSECTION (13) OF THIS SECTION,
SOLD THROUGH COIN-OPERATED VENDING MACHINES.
Sec. 43. Subdivision (44) of section 12-412 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(44) (A) Sales of and the storage, use or
other consumption of any filmed and taped
television and radio programs and any materials
which become an ingredient or component part of
films or tapes which are used directly in the
production and transmission of finished programs
[(1)] (i) broadcast to the general public by a
television or radio station or [(2)] (ii) used on
or after October 1, 1986, for purposes of
accredited medical or surgical training, including
any equipment used for such purpose; OR (B) SALES
OF AND THE STORAGE, USE, RENTAL, LEASE OR OTHER
CONSUMPTION OF ANY MOTION PICTURE OR VIDEO
PRODUCTION EQUIPMENT OR SOUND RECORDING EQUIPMENT
PURCHASED OR LEASED FOR USE IN THIS STATE FOR
PRODUCTION ACTIVITIES WHICH BECOME AN INGREDIENT
OR COMPONENT PART OF ANY MASTER TAPES, RECORDS,
VIDEO TAPES OR FILM PRODUCED FOR COMMERCIAL
ENTERTAINMENT, COMMERCIAL ADVERTISING OR
COMMERCIAL EDUCATIONAL PURPOSES.
Sec. 44. Subdivision (45) of section 12-412 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(45) Sales of and the storage or use of RARE
OR ANTIQUE COINS, gold or silver bullion and gold
or silver legal tender of any nation, traded
according to its value as precious metal, provided
such exemption shall not be applicable with
respect to any such sale, storage or use in which
the total value of such bullion or legal tender
sold by the retailer is less than one thousand
dollars.
Sec. 45. Subdivision (74) of section 12-412 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(74) (A) Sales of computer and data processing
services rendered to a customer [(A)] (i) by a
retailer which, on or after July 1, 1991, acquired
the operations of a data processing facility from
the customer, provided such customer operated the
facility for its own use or [(B)] (ii) by a
retailer which, on or after July 1, 1993, acquired
the operations of the data processing facility
from the retailer described in [subdivision]
SUBPARAGRAPH (A)(i) of this subsection, provided
such customer formerly operated the facility for
its own use. (B) SALES OF COMPUTER AND DATA
PROCESSING SERVICES RENDERED TO A CUSTOMER BY A
RETAILER WHICH, ON OR AFTER JULY 1, 1995, ACQUIRED
THE DATA PROCESSING OPERATIONS FROM THE CUSTOMER,
PROVIDED SUCH CUSTOMER FORMERLY CONDUCTED SUCH
DATA PROCESSING OPERATIONS FOR ITS OWN USE. SALES
OF AND THE STORAGE, USE OR OTHER CONSUMPTION OF
COMPUTERS OR DATA PROCESSING EQUIPMENT, WHEN SOLD
TO THE RETAILER DESCRIBED IN THIS SUBPARAGRAPH AND
USED BY SUCH RETAILER TO PROVIDE THE SERVICES
DESCRIBED IN THIS SUBPARAGRAPH. THE PROVISIONS IN
THIS SUBPARAGRAPH SHALL NOT APPLY IF THE RETAILER
IS A RELATED PERSON, AS DEFINED IN SECTION
12-217m, WITH RESPECT TO THE CUSTOMER OR THE
CUSTOMER IS A RELATED PERSON, AS DEFINED THEREIN,
WITH RESPECT TO THE RETAILER.
Sec. 46. Subsection (79) of section 12-412 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(79) Sales and the storage, use or other
consumption of bunker fuel oil, intermediate fuel,
marine diesel oil and marine gas oil for use in
any vessel having a displacement exceeding four
thousand dead weight tons; OR ANY VESSEL PRIMARILY
ENGAGED IN INTERSTATE COMMERCE.
Sec. 47. Section 12-412 of the general
statutes is amended by adding subsection (88) as
follows:
(NEW) (88) The sales and use of any services
or tangible personal property to be incorporated
into or used or otherwise consumed in the
operation of any project of the Connecticut
Resource Recovery Authority established pursuant
to section 22a-261 whether such purchases are made
directly by the authority or are reimbursed by the
authority to the lessee or operator of such
project.
Sec. 48. Subdivision (2) of section 12-407 of
the general statutes, as amended by section 15 of
public act 94-4 of the May special session and
section 127 of public act 94-1 of the May 25
special session, is repealed and the following is
substituted in lieu thereof:
(2) "Sale" and "selling" mean and include: (a)
Any transfer of title, exchange or barter,
conditional or otherwise, in any manner or by any
means whatsoever, of tangible personal property
for a consideration; (b) any withdrawal, except a
withdrawal pursuant to a transaction in foreign or
interstate commerce, of tangible personal property
from the place where it is located for delivery to
a point in this state for the purpose of the
transfer of title, exchange or barter, conditional
or otherwise, in any manner or by any means
whatsoever, of the property for a consideration;
(c) the producing, fabricating, processing,
printing or imprinting of tangible personal
property for a consideration for consumers who
furnish either directly or indirectly the
materials used in the producing, fabricating,
processing, printing or imprinting, including but
not limited to, computer programming, sign
construction, photofinishing, duplicating and
photocopying; (d) the furnishing and distributing
of tangible personal property for a consideration
by social clubs and fraternal organizations to
their members or others; (e) the furnishing,
preparing, or serving for a consideration of food,
meals or drinks; (f) a transaction whereby the
possession of property is transferred but the
seller retains the title as security for the
payment of the price; (g) a transfer for a
consideration of the title of tangible personal
property which has been produced, fabricated or
printed to the special order of the customer, or
of any publication, including but not limited to,
computer programming, sign construction,
photofinishing, duplicating and photocopying; (h)
a transfer for a consideration of the occupancy of
any room or rooms in a hotel or lodging house for
a period of thirty consecutive calendar days or
less; (i) the rendering of certain services for a
consideration, exclusive of such services rendered
by an employee for his employer, as follows: (A)
Computer and data processing services, including
but not limited to, time, (B) credit information
and reporting services, (C) services by employment
agencies and agencies providing personnel
services, (D) private investigation, protection,
patrol work, watchman and armored car services,
(E) painting and lettering services, (F)
photographic studio services, (G) telephone
answering services, (H) stenographic services, (I)
services to industrial, commercial or
income-producing real property, including but not
limited to, such services as management,
electrical, plumbing, painting and carpentry and
excluding any such services rendered in the
voluntary evaluation, prevention, treatment,
containment or removal of hazardous waste, as
defined in section 22a-115, or other contaminants
of air, water or soil, provided income-producing
property shall not include property used
exclusively for residential purposes in which the
owner resides and which contains no more than
three dwelling units, or a housing facility for
low and moderate income families and persons owned
by an organization which has as one of its
purposes the ownership of housing for low and
moderate income families, and which organization
has been granted exemption from federal income
taxation, (J) business analysis, management,
management consulting and public relations
services, excluding any environmental consulting
services, (K) services providing "piped-in" music
to business or professional establishments, (L)
flight instruction and chartering services by a
certificated air carrier on an aircraft, the use
of which for such purposes, but for the provisions
of subsection (4) of section 12-410 and subsection
(12) of section 12-411, would be deemed a retail
sale and a taxable storage or use, respectively,
of such aircraft by such carrier, (M) motor
vehicle repair services, including any type of
repair, painting or replacement related to the
body or any of the operating parts of a motor
vehicle, (N) motor vehicle parking, including the
provision of space, other than metered space, in a
lot having thirty or more spaces, excluding (i)
space in a seasonal parking lot provided by a
person who is exempt from taxation under this
chapter pursuant to subsection (1), (5) or (8) of
section 12-412, (ii) space in a parking lot owned
or leased under the terms of a lease of not less
than ten years duration and operated by an
employer for the exclusive use of its employees,
and (iii) valet parking provided at any airport,
(O) radio or television repair services, (P)
furniture reupholstering and repair services, (Q)
repair services to any electrical or electronic
device, including but not limited to, such
equipment used for purposes of refrigeration or
air-conditioning, (R) TAX PREPARATION SERVICES,
EXCLUDING SUCH SERVICES PROVIDED FOR A BUSINESS,
CORPORATION, PARTNERSHIP AND BUSINESS SCHEDULES
RELATED TO INDIVIDUAL RETURNS, (S) lobbying or
consulting services for purposes of representing
the interests of a client in relation to the
functions of any governmental entity or
instrumentality, [(S)] (T) services of the agent
of any person in relation to the sale of any item
of tangible personal property for such person,
exclusive of the services of a consignee selling
works of art, as defined in subsection (b) of
section 12-376c, or articles of clothing or
footwear intended to be worn on or about the human
body other than (i) any special clothing or
footwear primarily designed for athletic activity
or protective use and which is not normally worn
except when used for the athletic activity or
protective use for which it was designed and (ii)
jewelry, handbags, luggage, umbrellas, wallets,
watches and similar items carried on or about the
human body but not worn on the body in the manner
characteristic of clothing intended for exemption
under subdivision (47) of section 12-412, under
consignment, [or exclusive of services provided by
an auctioneer, (T)] (U) locksmith services, [(U)]
(V) advertising or public relations services,
including layout, art direction, graphic design,
mechanical preparation or production supervision,
not related to the development of media
advertising or cooperative direct mail
advertising, [(V)] (W) landscaping and
horticulture services, [(W)] (X) window cleaning
services, [(X)] (Y) maintenance services, [(Y)]
(Z) janitorial services, [(Z)] (AA) exterminating
services, [(AA)] (BB) swimming pool cleaning and
maintenance services, [(BB)] (CC) renovation and
repair services as set forth in this subparagraph,
to other than industrial, commercial or
income-producing real property: Paving of any
sort, painting or staining, wallpapering, roofing,
siding and exterior sheet metal work, [(CC)] (DD)
miscellaneous personal services included in
industry group 729 in the Standard Industrial
Classification Manual, United States Office of
Management and Budget, 1987 edition, exclusive of
services rendered by massage therapists licensed
pursuant to chapter 384a, [(DD)] (EE) any repair
or maintenance service to any item of tangible
personal property including any contract of
warranty or service related to any such item;
[(EE)] (FF) business analysis, management or
managing consulting services rendered by a general
partner, or an affiliate thereof, to a limited
partnership, provided (i) that the general
partner, or an affiliate thereof, is compensated
for the rendition of such services other than
through a distributive share of partnership
profits or an annual percentage of partnership
capital or assets established in the limited
partnership's offering statement, and (ii) the
general partner, or an affiliate thereof, offers
such services to others, including any other
partnership. As used in subparagraph [(EE)(i)]
(FF)(i) "an affiliate of a general partner" means
an entity which is directly or indirectly owned
fifty per cent or more in common with a general
partner; and [(FF)] (GG) notwithstanding the
provisions of section 12-412, except subsection
[(86)] (87) thereof, patient care services, as
defined in subsection (30) of this section by a
hospital; (j) the leasing or rental of tangible
personal property of any kind whatsoever,
including but not limited to, motor vehicles,
linen or towels, machinery or apparatus, office
equipment and data processing equipment, provided
for purposes of this subdivision and the
application of sales and use tax to contracts of
lease or rental of tangible personal property, the
leasing or rental of any motion picture film by
the owner or operator of a motion picture theater
for purposes of display at such theater shall not
constitute a sale within the meaning of this
subsection; (k) the rendering of
telecommunications service, as defined in
subsection (26) of this section, for a
consideration on or after January 1, 1990,
exclusive of any such service rendered by an
employee for his employer, subject to the
provisions related to telecommunications service
in accordance with section 12-407a; (l) the
rendering of community antenna television service,
as defined in subsection (27) of this section, for
a consideration on or after January 1, 1990,
exclusive of any such service rendered by an
employee for his employer; (m) the rendering of
transportation service, as defined in subsection
(28) of this section, for a consideration on or
after October 1, 1991, exclusive of any such
service rendered by an employee for his employer;
(n) the transfer for consideration of space or the
right to use any space for the purpose of storage
or mooring of any noncommercial vessel, exclusive
of dry or wet storage or mooring of such vessel
during the period commencing on the first day of
November in any year to and including the
thirtieth day of April of the next succeeding
year. Wherever in this chapter reference is made
to the sale of tangible personal property or
services, it shall be construed to include sales
described in this subsection, except as may be
specifically provided to the contrary.
Sec. 49. Subdivision (2) of section 12-407 of
the general statutes, as amended by section 15 of
public act 94-4 of the May special session,
section 127 of public act 94-1 of the May 25
special session and section 48 of this act, is
repealed and the following is substituted in lieu
thereof:
(2) "Sale" and "selling" mean and include: (a)
Any transfer of title, exchange or barter,
conditional or otherwise, in any manner or by any
means whatsoever, of tangible personal property
for a consideration; (b) any withdrawal, except a
withdrawal pursuant to a transaction in foreign or
interstate commerce, of tangible personal property
from the place where it is located for delivery to
a point in this state for the purpose of the
transfer of title, exchange or barter, conditional
or otherwise, in any manner or by any means
whatsoever, of the property for a consideration;
(c) the producing, fabricating, processing,
printing or imprinting of tangible personal
property for a consideration for consumers who
furnish either directly or indirectly the
materials used in the producing, fabricating,
processing, printing or imprinting, including but
not limited to, computer programming, sign
construction, photofinishing, duplicating and
photocopying; (d) the furnishing and distributing
of tangible personal property for a consideration
by social clubs and fraternal organizations to
their members or others; (e) the furnishing,
preparing, or serving for a consideration of food,
meals or drinks; (f) a transaction whereby the
possession of property is transferred but the
seller retains the title as security for the
payment of the price; (g) a transfer for a
consideration of the title of tangible personal
property which has been produced, fabricated or
printed to the special order of the customer, or
of any publication, including but not limited to,
computer programming, sign construction,
photofinishing, duplicating and photocopying; (h)
a transfer for a consideration of the occupancy of
any room or rooms in a hotel or lodging house for
a period of thirty consecutive calendar days or
less; (i) the rendering of certain services for a
consideration, exclusive of such services rendered
by an employee for his employer, as follows: (A)
Computer and data processing services, including
but not limited to, time, (B) credit information
and reporting services, (C) services by employment
agencies and agencies providing personnel
services, (D) private investigation, protection,
patrol work, watchman and armored car services,
EXCLUSIVE OF SERVICES OF OFF-DUTY POLICE OFFICERS
AT CONSTRUCTION SITES, (E) painting and lettering
services, (F) photographic studio services, (G)
telephone answering services, (H) stenographic
services, (I) services to industrial, commercial
or income-producing real property, including but
not limited to, such services as management,
electrical, plumbing, painting and carpentry and
excluding any such services rendered in the
voluntary evaluation, prevention, treatment,
containment or removal of hazardous waste, as
defined in section 22a-115, or other contaminants
of air, water or soil, provided income-producing
property shall not include property used
exclusively for residential purposes in which the
owner resides and which contains no more than
three dwelling units, or a housing facility for
low and moderate income families and persons owned
by an organization which has as one of its
purposes the ownership of housing for low and
moderate income families, and which organization
has been granted exemption from federal income
taxation, (J) business analysis, management,
management consulting and public relations
services, excluding any environmental consulting
services, (K) services providing "piped-in" music
to business or professional establishments, (L)
flight instruction and chartering services by a
certificated air carrier on an aircraft, the use
of which for such purposes, but for the provisions
of subsection (4) of section 12-410 and subsection
(12) of section 12-411, would be deemed a retail
sale and a taxable storage or use, respectively,
of such aircraft by such carrier, (M) motor
vehicle repair services, including any type of
repair, painting or replacement related to the
body or any of the operating parts of a motor
vehicle, (N) motor vehicle parking, including the
provision of space, other than metered space, in a
lot having thirty or more spaces, excluding (i)
space in a seasonal parking lot provided by a
person who is exempt from taxation under this
chapter pursuant to subsection (1), (5) or (8) of
section 12-412, (ii) space in a parking lot owned
or leased under the terms of a lease of not less
than ten years duration and operated by an
employer for the exclusive use of its employees,
[and] (iii) valet parking provided at any airport,
AND (iv) SPACE IN MUNICIPALLY-OPERATED RAILROAD
PARKING FACILITIES IN MUNICIPALITIES LOCATED
WITHIN AN AREA OF THE STATE DESIGNATED AS A SEVERE
NONATTAINMENT AREA FOR OZONE UNDER THE FEDERAL
CLEAN AIR ACT, (O) radio or television repair
services, (P) furniture reupholstering and repair
services, (Q) repair services to any electrical or
electronic device, including but not limited to,
such equipment used for purposes of refrigeration
or air-conditioning, (R) [tax preparation
services, excluding such services provided for a
business, corporation, partnership and business
schedules related to individual returns, (S)]
lobbying or consulting services for purposes of
representing the interests of a client in relation
to the functions of any governmental entity or
instrumentality, [(T)] (S) services of the agent
of any person in relation to the sale of any item
of tangible personal property for such person,
exclusive of the services of a consignee selling
works of art, as defined in subsection (b) of
section 12-376c, or articles of clothing or
footwear intended to be worn on or about the human
body other than (i) any special clothing or
footwear primarily designed for athletic activity
or protective use and which is not normally worn
except when used for the athletic activity or
protective use for which it was designed and (ii)
jewelry, handbags, luggage, umbrellas, wallets,
watches and similar items carried on or about the
human body but not worn on the body in the manner
characteristic of clothing intended for exemption
under subdivision (47) of section 12-412, under
consignment, [(U)] EXCLUSIVE OF SERVICES PROVIDED
BY AN AUCTIONEER, (T) locksmith services, [(V)]
(U) advertising or public relations services,
including layout, art direction, graphic design,
mechanical preparation or production supervision,
not related to the development of media
advertising or cooperative direct mail
advertising, [(W)] (V) landscaping and
horticulture services, [(X)] (W) window cleaning
services, [(Y)] (X) maintenance services, [(Z)]
(Y) janitorial services, [(AA)] (Z) exterminating
services, [(BB)] (AA) swimming pool cleaning and
maintenance services, [(CC)] (BB) renovation and
repair services as set forth in this subparagraph,
to other than industrial, commercial or
income-producing real property: Paving of any
sort, painting or staining, wallpapering, roofing,
siding and exterior sheet metal work, [(DD)] (CC)
miscellaneous personal services included in
industry group 729 in the Standard Industrial
Classification Manual, United States Office of
Management and Budget, 1987 edition, exclusive of
(i) services rendered by massage therapists
licensed pursuant to chapter 384a, [(EE)] AND (ii)
SERVICES RENDERED BY A HYPERTRICHOLOGIST LICENSED
PURSUANT TO CHAPTER 388, (DD) any repair or
maintenance service to any item of tangible
personal property including any contract of
warranty or service related to any such item;
[(FF)] (EE) business analysis, management or
managing consulting services rendered by a general
partner, or an affiliate thereof, to a limited
partnership, provided (i) that the general
partner, or an affiliate thereof, is compensated
for the rendition of such services other than
through a distributive share of partnership
profits or an annual percentage of partnership
capital or assets established in the limited
partnership's offering statement, and (ii) the
general partner, or an affiliate thereof, offers
such services to others, including any other
partnership. As used in subparagraph [(FF)(i)]
(EE)(i) "an affiliate of a general partner" means
an entity which is directly or indirectly owned
fifty per cent or more in common with a general
partner; and [(GG)] (FF) notwithstanding the
provisions of section 12-412, except subsection
[(86)] (87) thereof, patient care services, as
defined in subsection (30) of this section by a
hospital; (j) the leasing or rental of tangible
personal property of any kind whatsoever,
including but not limited to, motor vehicles,
linen or towels, machinery or apparatus, office
equipment and data processing equipment, provided
for purposes of this subdivision and the
application of sales and use tax to contracts of
lease or rental of tangible personal property, the
leasing or rental of any motion picture film by
the owner or operator of a motion picture theater
for purposes of display at such theater shall not
constitute a sale within the meaning of this
subsection; (k) the rendering of
telecommunications service, as defined in
subsection (26) of this section, for a
consideration on or after January 1, 1990,
exclusive of any such service rendered by an
employee for his employer, subject to the
provisions related to telecommunications service
in accordance with section 12-407a; (l) the
rendering of community antenna television service,
as defined in subsection (27) of this section, for
a consideration on or after January 1, 1990,
exclusive of any such service rendered by an
employee for his employer; (m) the rendering of
transportation service, as defined in subsection
(28) of this section, for a consideration on or
after October 1, 1991, exclusive of any such
service rendered by an employee for his employer;
(n) the transfer for consideration of space or the
right to use any space for the purpose of storage
or mooring of any noncommercial vessel, exclusive
of dry or wet storage or mooring of such vessel
during the period commencing on the first day of
November in any year to and including the
thirtieth day of April of the next succeeding
year. Wherever in this chapter reference is made
to the sale of tangible personal property or
services, it shall be construed to include sales
described in this subsection, except as may be
specifically provided to the contrary.
Sec. 50. (NEW) Notwithstanding the provisions
of section 13b-61 of the general statutes, the
commissioner of revenue services shall deposit
into the conservation fund established under
section 22a-27h of the general statutes two
hundred fifty thousand dollars of the amount of
the funds received by the state from the tax
imposed under chapter 221 of the general statutes
attributable to sales of fuel from distributors to
any boat yard, public or private marina or other
entity renting or leasing slips, dry storage,
mooring or other space for marine vessels provided
such amount shall be equally divided and credited
to the boating account and the fisheries account.
Sec. 51. (NEW) The department of social
services is authorized to adjust the amount of any
overpayment for disproportionate share - medical
emergency assistance determined pursuant to
sections 19a-169a and 19a-169b of the general
statutes by reducing the Medicaid payment to such
hospital by the amount of such overpayment.
Sec. 52. (NEW) For the fiscal year ending June
30, 1995, the comptroller is authorized to record
as revenue for said fiscal year (1) the amount of
federal funds received no later than September 30,
1995, from the participation of acute care
hospitals in the federal Medicaid and emergency
assistance programs, and attributable to the state
appropriation to the department of social services
for the fiscal year ending June 30, 1995, (2) the
amount of hospital gross earnings tax received no
later than September 30, 1995, from hospitals
under the provisions of section 12-263b of the
general statutes relating to earnings of such
hospitals prior to July 1, 1995, (3) the amount of
sales and use tax received no later than September
30, 1995, for patient care services under the
provisions of subsection (2) of section 12-407 of
the general statutes, relating to payments for
patient care services prior to July 1, 1995, and
(4) any additional amounts to be received as
described in subdivisions (1) to (3), inclusive,
of this section as each such amount is estimated
by the secretary of the office of policy and
management.
Sec. 53. (NEW) Notwithstanding the provisions
of section 3-115 of the general statutes, for the
fiscal year ending June 30, 1995, the comptroller
is authorized to submit the annual report to the
governor, required by said section 3-115, no later
than October 15, 1995.
Sec. 54. (NEW) (a) The commissioner of social
services shall calculate for each hospital the sum
of (1) the amount of disproportionate share
payments for such hospital for the fiscal year
ending June 30, 1995, not previously made and (2)
payments due to the hospital as the result of
final reconciliation of the uncompensated care
pool pursuant to section 56 of this act.
(b) If (1) the sum of the payments calculated
pursuant to subsection (a) is equal to or exceeds
the total of (A) the amount of tax liability of
such hospital, computed without regard to any
order of the United States District Court for the
district of Connecticut in the civil case of
Connecticut Hospital Association v. Phillips et
al, No. 94-CV-1224, under the provisions of
chapter 211a of the general statutes and
subparagraph (GG) of subdivision (i) of subsection
(2) of section 12-407 of the general statutes
attributable to any period which commenced on or
after April 1, 1994, and as to which the scheduled
due date for payment is on or before June 30,
1995, plus (B) all uncompensated care pool
assessments and other liabilities due to the state
pursuant to section 56 of this act, and (2) the
tax liability so computed is paid in full to the
commissioner of revenue services and pool
reconciliation payments are made in full to the
commissioner of social services by the hospital on
or before June 15, 1995, then the hospital shall
receive, not later than the next business day
following such payments, the full amount of
disproportionate share payments and uncompensated
care pool payments due, as determined by the
commissioner of social services and no penalty or
interest shall be assessed pertaining to such tax
liability.
(c) If (1) the sum of the payments computed
pursuant to subsection (a) is less than the total
of (A) the amount of tax liability of such
hospital, computed without regard to any order of
the United States District Court for the district
of Connecticut in the civil case of Connecticut
Hospital Association v. Phillips et al, No.
94-CV-1224, under the provisions of chapter 211a
of the general statutes and subparagraph (GG) of
subdivision (i) of subsection (2) of section
12-407 of the general statutes attributable to any
period which commenced on or after April 1, 1994,
and as to which the scheduled due date for payment
is on or before June 30, 1995, plus (B) all
uncompensated care pool assessments and other
liabilities due to the state pursuant to section
56 of this act, and (2) the total amount of tax
payments made to the commissioner of revenue
services and pool reconciliation payments made to
the commissioner of social services by the
hospital on or before June 15, 1995, is not less
than the total amount of disproportionate share
payments and pool reconciliation payments due to
the hospital, then the hospital shall receive, not
later than the next business day following such
payments, the full amount of disproportionate
share payments and uncompensated care pool
payments due, as determined by the commissioner of
social services and no penalty or interest shall
be assessed pertaining to such tax liability. The
unpaid balance due from the hospital shall be due
on or before November 30, 1995, and if paid in
full to the commissioner of revenue services by
such date shall accrue no interest or penalties
through November 30, 1995, provided if it is not
paid in full by said date any unpaid balance shall
be a delinquent tax and shall be subject to
chapter 202 of the general statutes and shall be
delinquent after said date.
Sec. 55. Section 19a-167j of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) Any health care facility or institution,
OR HEALTH CARE PROVIDER WHICH OWNS, OPERATES OR IS
SEEKING TO ACQUIRE A CAT SCANNER OR MEDICAL
IMAGING EQUIPMENT, required to file data under
[section 19a-151, 19a-152, 19a-156, 19a-161,
19a-167f, 19a-167g, sections 19a-170 to 19a-170g,
inclusive] CHAPTER 368c OR 368z, OR SECTION 60 OF
THIS ACT, or any regulation adopted [pursuant to
said sections] OR ORDER ISSUED THEREUNDER, which
fails to so file within prescribed time periods,
shall be subject to a civil penalty of up to [two
hundred fifty] ONE THOUSAND dollars a day for each
day such information is missing, incomplete or
inaccurate. [, unless such facility or institution
is granted a waiver in accordance with the
provisions of subsection (b) of this section.] Any
civil penalty authorized by this section shall be
imposed by the Commission on Hospitals and Health
Care in accordance with [subsection (b)]
SUBSECTIONS (b) TO (e), INCLUSIVE, of this
section.
[(b) The Commission on Hospitals and Health
Care shall notify any facility or institution
subject to a civil penalty under subsection (a) of
this section, of its intention to impose such
civil penalty and the amount of such proposed
civil penalty, not less than ten calendar days
prior to the proposed date of imposition of such
penalty. Within ten calendar days of receipt of
such notification, the facility or institution may
request a waiver of the civil penalty or an
extension of time to file such required
information, or both, by filing a written request
with the commission which shall contain an
explanation and list of any extenuating
circumstances. If any such request is filed, the
commission shall not impose any civil penalty
until it issues a decision on the waiver or time
extension request. If a waiver is requested, the
commission shall grant the waiver or hold a
hearing as soon as possible on the request, or
both. The commission shall issue a final decision
as to whether or not the civil penalty shall be
waived, in whole or in part, due to the
extenuating circumstances, within ten business
days of the close of the hearing or the date of
the request if no hearing is held. Unless a
request for a waiver or time extension, or both,
is filed with the commission, any civil penalty
imposed under this section shall be effective on
the first calendar day after such data is due or
after the ten-day period, whichever is later. If a
waiver is denied, in whole or in part, any civil
penalty imposed under this section shall be
effective on the first calendar day after such
denial. Within ten business days of the
commission's imposition of a civil penalty, any
facility or institution which is aggrieved by a
decision under this section may appeal to the
superior court under section 4-183. Any appeal to
the superior court shall not automatically stay
the imposition of any such civil penalty.
(c) The commission shall not grant any rate or
budget increase to offset any civil penalty
imposed under this section. Any rate or budget
increase which was not issued until after the
beginning of a rate or budget year because of the
failure of a facility or institution to submit
complete or accurate information within prescribed
time periods, may or may not be made retroactive
to the beginning of the rate or budget year at the
discretion of the commission. All rate or budget
orders of the commission in effect the last day of
a fiscal year or period shall continue in effect
during the following rate or budget period until
the commission issues a rate order or budget for
the facility or institution for the new fiscal
year or rate period or portion thereof.
(d) The commission may adopt emergency
regulations and shall adopt regulations in
accordance with chapter 54 to implement this
section and establish criteria for the granting of
a waiver or extension of the filing date under
subsection (b) of this section.]
(b) IF THE COMMISSION HAS REASON TO BELIEVE
THAT A VIOLATION HAS OCCURRED FOR WHICH A CIVIL
PENALTY IS AUTHORIZED BY SUBSECTION (a) OF THIS
SECTION, IT SHALL NOTIFY THE HEALTH CARE FACILITY
OR INSTITUTION OR PROVIDER, BY FIRST-CLASS MAIL OR
PERSONAL SERVICE. THE NOTICE WHICH SHALL INCLUDE:
(1) A REFERENCE TO THE SECTIONS OF THE STATUTE OR
REGULATION INVOLVED; (2) A SHORT AND PLAIN
STATEMENT OF THE MATTERS ASSERTED OR CHARGED; (3)
A STATEMENT OF THE AMOUNT OF THE CIVIL PENALTY OR
PENALTIES TO BE IMPOSED; (4) THE INITIAL DATE OF
THE IMPOSITION OF THE PENALTY, AND (5) A STATEMENT
OF THE PARTY'S RIGHT TO A HEARING.
(c) THE FACILITY, INSTITUTION OR PROVIDER TO
WHOM THE NOTICE IS ADDRESSED SHALL HAVE TEN
CALENDAR DAYS FROM THE DATE OF MAILING OF THE
NOTICE TO MAKE WRITTEN APPLICATION TO THE
COMMISSION TO REQUEST (1) A HEARING TO CONTEST THE
IMPOSITION OF THE PENALTY OR (2) AN EXTENSION OF
TIME TO FILE THE REQUIRED DATA. A FAILURE TO MAKE
A TIMELY REQUEST FOR A HEARING OR A DENIAL OF A
REQUEST FOR AN EXTENSION OF TIME SHALL RESULT IN A
FINAL ORDER FOR THE IMPOSITION OF THE PENALTY. ALL
HEARINGS UNDER THIS SECTION SHALL BE CONDUCTED
PURSUANT TO SECTIONS 4-176e TO 4-184, INCLUSIVE.
THE COMMISSION MAY GRANT AN EXTENSION OF TIME FOR
FILING THE REQUIRED DATA OR MITIGATE OR WAIVE THE
PENALTY UPON SUCH TERMS AND CONDITIONS AS, IN ITS
DISCRETION, IT DEEMS PROPER OR NECESSARY UPON
CONSIDERATION OF ANY EXTENUATING FACTORS OR
CIRCUMSTANCES.
(d) A FINAL ORDER OF THE COMMISSION ASSESSING
A CIVIL PENALTY SHALL BE SUBJECT TO APPEAL AS SET
FORTH IN SECTION 4-183 AFTER A HEARING BEFORE THE
COMMISSION PURSUANT TO SUBSECTION (c) OF THIS
SECTION, EXCEPT THAT ANY SUCH APPEAL SHALL BE
TAKEN TO THE SUPERIOR COURT FOR THE JUDICIAL
DISTRICT OF HARTFORD-NEW BRITAIN. SUCH FINAL ORDER
SHALL NOT BE SUBJECT TO APPEAL UNDER ANY OTHER
PROVISION OF THE GENERAL STATUTES. NO CHALLENGE TO
ANY SUCH FINAL ORDER SHALL BE ALLOWED AS TO ANY
ISSUE WHICH COULD HAVE BEEN RAISED BY AN APPEAL OF
AN EARLIER ORDER, DENIAL OR OTHER FINAL DECISION
BY THE COMMISSION.
(e) IF ANY FACILITY, INSTITUTION OR PROVIDER
FAILS TO PAY ANY CIVIL PENALTY UNDER THIS SECTION,
AFTER THE ASSESSMENT OF SUCH PENALTY HAS BECOME
FINAL THE AMOUNT OF SUCH PENALTY MAY BE DEDUCTED
FROM PAYMENTS TO SUCH FACILITY OR INSTITUTION OR
PROVIDER FROM THE MEDICAID ACCOUNT.
Sec. 56. Section 19a-168v of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) Notwithstanding the provisions of sections
19a-168 to 19a-168f, inclusive, the uncompensated
care pool shall terminate effective 12:00 a.m.,
April 1, 1994. The termination of the
uncompensated care pool shall not impair or affect
any act done, offense committed or right accruing,
accrued or acquired, or any obligation, liability,
penalty, forfeiture or punishment incurred prior
to April 1, 1994, under chapter 368c of the
general statutes, revision of 1958, revised to
1993, as amended, and the same may be enjoyed,
asserted and enforced, as fully and to the same
extent and in the same manner as they might under
the laws existing prior to said date, and all
matters civil or criminal pending on said date or
instituted thereafter for any act done, offense
committed, right accruing, accrued, or acquired,
or obligation, liability, penalty, forfeiture, or
punishment incurred prior to said date may be
continued or instituted under and in accordance
with the provisions of the law in force at the
time of the commission of said act done, offense
committed, right accruing, accrued, or acquired,
or obligation, liability, penalty, forfeiture or
punishment incurred.
(b) On April 1, 1994, the treasurer shall
transfer ten million dollars of the funds in said
pool representing the proceeds of the sale of
bonds issued pursuant to section 19a-168p for the
purpose of providing initial funding for said pool
into a separate account of the general fund to be
used to pay debt service on any tax exempt state
of Connecticut general obligation bond and shall
transfer all remaining funds and assets of said
pool to the resources of the general fund. During
the period April 1, 1994, to April 12, 1994,
inclusive, revenues received and payments made
from said pool, shall be made in accordance with
the provisions of section 19a-168b.
(c) (1) FINAL SETTLEMENT OF ALL OBLIGATIONS
AND LIABILITIES OF THE UNCOMPENSATED CARE POOL
SHALL BE NO LATER THAN JUNE 15, 1995. ALL
UNCOMPENSATED CARE POOL ASSESSMENTS AND OTHER
LIABILITIES OF HOSPITALS FOR THE PERIOD ENDING
MARCH 31, 1994, BASED ON THE ASSESSABLE ACCOUNTS
RECEIVABLE AS OF MARCH 31, 1994, SHALL BE PAID AND
ALL UNCOMPENSATED CARE POOL PAYMENTS TO HOSPITALS
ATTRIBUTABLE TO THE PERIOD ENDING MARCH 31, 1994,
SHALL BE MADE NO LATER THAN JUNE 15, 1995. THE
AMOUNT, IF ANY, BY WHICH ASSESSMENTS AND OTHER
LIABILITIES EXCEED PAYMENTS SHALL BE CREDITED TO
THE RESOURCES OF THE GENERAL FUND. (2) FOLLOWING
THE FINAL RESOLUTION OF AN ACTION PENDING IN THE
UNITED STATES DISTRICT COURT FOR THE DISTRICT OF
CONNECTICUT ENTITLED NEW ENGLAND HEALTH CARE
UNION, DISTRICT 1199, SEIU, AFL-CIO; ET AL V. MT.
SINAI HOSPITAL ET AL, NO. 92-CU-1012, ANY
ADDITIONAL AMOUNTS OWED TO THE STATE FROM
HOSPITALS AS A RESULT OF PAYMENTS THAT THE
HOSPITALS ARE ENTITLED TO RECEIVE FOR PATIENT CARE
SERVICES FOLLOWING THE RESOLUTION OF SUCH ACTION
SHALL BE DUE AND PAYABLE TO THE STATE NO LATER
THAN ONE MONTH FOLLOWING RECEIPT OF SUCH PAYMENTS
BY THE HOSPITAL. SUCH AMOUNT SHALL BE DEPOSITED
INTO THE GENERAL FUND AND CREDITED TO THE
RECONCILIATION ACCOUNT ESTABLISHED PURSUANT TO
SECTION 62 OF THIS ACT.
Sec. 57. Subsection (a) of section 19a-169a of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) Within available appropriations, the
department of social services [shall] MAY make
semimonthly payments to hospitals in an amount
calculated pursuant to section 19a-169b, PROVIDED
THE TOTAL AMOUNT OF PAYMENTS MADE TO INDIVIDUAL
HOSPITALS AND TO HOSPITALS IN THE AGGREGATE SHALL
MAXIMIZE THE AMOUNT QUALIFYING FOR FEDERAL
MATCHING PAYMENTS UNDER THE MEDICAL ASSISTANCE
PROGRAM AND THE EMERGENCY ASSISTANCE TO FAMILIES
PROGRAM AS DETERMINED BY THE DEPARTMENT OF SOCIAL
SERVICES IN CONSULTATION WITH THE OFFICE OF POLICY
AND MANAGEMENT. The payments shall be medical
assistance disproportionate share payments,
including grants provided pursuant to section
19a-168k, to the extent allowable under federal
law. In addition payments may be made for
authorized emergency assistance to needy families
with dependent children in accordance with Title
IV-A of the Social Security Act to the extent
allowable under federal law. The payments shall
not be part of the routine medical assistance
inpatient hospital rate determined pursuant to
section 17b-239, except to the extent the
commissioner of social services determines that
increasing those rates would be appropriate to
resolve any civil action pending on April 1, 1994,
in the United States District Court for the
district of Connecticut or the court orders such
increase. Payments shall be made on an interim
basis during each year and a final settlement
shall be calculated pursuant to section 19a-169b
by the commission for each hospital after the year
end based on audited data for the hospitals. The
commissioner of social services may withhold
payment to a hospital which is in arrears in
remitting its obligations to the state.
Sec. 58. Subsection (a) of section 19a-170a of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) For the fiscal year commencing October 1,
1994, and for subsequent fiscal years, the
commission shall establish an exempt authorized
net revenue limit for each hospital provided, for
the fiscal year commencing October 1, 1994, said
limit shall be effective January 1, 1995. Such
limit shall be computed as follows:
(1) For each hospital, except as described in
subdivision (2) of this subsection, the hospital's
authorized net revenue limit for the base year
shall be multiplied by one plus the forecast of
reasonable inflation determined in accordance with
section 19a-170e less one percentage point; the
result shall be adjusted for increases or
decreases in equivalent discharges from the
authorized base year using a fifty per cent
variable cost adjustment factor. The exempt
authorized net revenue for the budget year is
determined by multiplying the budget year exempt
authorized net revenue limit determined in
accordance with this subdivision and subdivision
(2) of this subsection by the rate year equivalent
discharges projected pursuant to section 19a-170f.
(2) For the fiscal year commencing October 1,
1994, [only] AND THE SUBSEQUENT FISCAL YEAR, the
base year authorization shall be adjusted to
reflect the actual net revenue received by each
hospital provided that this adjustment shall not
be applied to increase the base above the
authorized level. The adjustment shall be as
follows: (A) For the fiscal year commencing
October [1, 1992] FIRST, TWO YEARS PRIOR TO THE
YEAR FOR WHICH THE AUTHORIZATION IS BEING
DETERMINED, the result of subdivision (2) of
subsection (b) of section 19a-170c shall be
divided by the result of subdivision (1) of
subsection (b) of section 19a-170c. If the result
is greater than one, then it shall be replaced by
one. (B) For the fiscal year commencing October 1,
1994, [only] AND THE SUBSEQUENT FISCAL YEAR, the
result of subparagraph (A) of this subdivision,
shall be multiplied by the hospital's authorized
net revenue limit for the base year times one plus
the forecast of reasonable inflation in accordance
with section 19a-170e less one percentage point;
the result shall be adjusted for increases or
decreases in equivalent discharges from the
authorized base year using a fifty per cent
variable cost adjustment factor.
Sec. 59. Subsections (a) and (b) of section
19a-170c of the general statutes are repealed and
the following is substituted in lieu thereof:
(a) For the fiscal year commencing October 1,
1992, and subsequent fiscal years, each hospital
shall submit to the commission, in the form and
manner prescribed by the commission, the data
specified in section 19a-167g-91 of the
regulations of Connecticut state agencies, as from
time to time amended, the audit required under
section 19a-167f and any other data required by
the commission to implement this section. For the
period January 1, 1995, through September 30,
1995, and for subsequent fiscal years, if a
hospital exceeds its authorized net revenue limit,
adjusted for changes in equivalent discharges and
for unbundling of services, an amount equal to the
excess revenue for the year prior to the base year
as determined in subdivision (3) of subsection (b)
of this section shall be (1) deducted from the
subsequent fiscal year's net revenue limit; [.
Payments] (2) PAID BY THE HOSPITAL TO THE
COMMISSION IN FOUR EQUAL INSTALMENTS COMMENCING
OCTOBER FIRST OF THE YEAR TWO YEARS FOLLOWING THE
YEAR FOR WHICH THE COMPLIANCE IS BEING DETERMINED
AND DEPOSITED INTO THE GENERAL FUND; OR (3)
DEDUCTED FROM PAYMENTS TO HOSPITALS from the
[medical assistance disproportionate
share-emergency assistance account to a hospital
may be reduced by any amount owed by that hospital
under the provisions of this section] MEDICAID
ACCOUNT, AS DETERMINED BY THE DEPARTMENT OF SOCIAL
SERVICES, IN CONSULTATION WITH THE OFFICE OF
POLICY AND MANAGEMENT.
(b) For the period January 1, 1995, through
September 30, 1995, and for subsequent fiscal
years, the excess revenue for the fiscal year
shall be calculated as provided in subdivisions
(1) to (3), inclusive, of this subsection, EXCEPT
THAT FOR THE FISCAL YEAR COMMENCING OCTOBER 1,
1994, ONLY, THE COMPLIANCE AMOUNT SHALL BE
CALCULATED AT A RATE OF 0.75 TIMES THE COMPUTED
COMPLIANCE AMOUNT FOR THE PERIOD FROM OCTOBER 1,
1994, TO SEPTEMBER 30, 1995, INCLUSIVE. (1) The
commission shall adjust the compliance adjusted
authorized net revenue of the hospital for the
difference between the equivalent discharges used
in determining authorized net revenue and the
equivalent discharges experienced by the hospital
in the budget year using a fifty per cent variable
cost factor. The result shall be the volume
adjusted net revenue. (2) The commission shall
adjust the actual net revenue of the hospital,
including net payments from the uncompensated care
pool and payments from the department of social
services, then adjusting for any unbundling of
services. If the actual uncompensated care rate
experienced by the hospital exceeds the authorized
uncompensated care rate, the difference times the
total actual charges shall be added to the actual
net revenue plus unbundling adjustments. The
result shall be the adjusted actual net revenue.
(3) The net revenue compliance adjustment shall be
the adjusted net revenue calculated in subdivision
(2) of this subsection minus the adjusted
authorized net revenue calculated in subdivision
(1) of this subsection. If this compliance
adjustment is positive, that is, if the hospital
collected more revenue than authorized, the amount
shall be increased by the percentage increase in
the authorized net revenue per equivalent
discharge between the year for which the
compliance adjustment is being calculated and the
year in which the adjustment is being applied.
This amount is called the inflation adjusted net
revenue compliance adjustment. This amount shall
be (A) deducted from the subsequent fiscal year's
net revenue limit; (B) PAID BY THE HOSPITAL TO THE
COMMISSION IN FOUR EQUAL INSTALMENTS COMMENCING
OCTOBER FIRST OF THE YEAR TWO YEARS FOLLOWING THE
YEAR FOR WHICH THE COMPLIANCE IS BEING DETERMINED
AND DEPOSITED INTO THE GENERAL FUND; or [may be]
deducted from payments to hospitals from the
[medical assistance disproportionate
share-emergency assistance account as described in
subsection (a) of this section,] MEDICAID ACCOUNT,
AS DETERMINED BY THE DEPARTMENT OF SOCIAL
SERVICES, IN CONSULTATION WITH THE OFFICE OF
POLICY AND MANAGEMENT.
Sec. 60. (NEW) (a) Each hospital shall include
all applicable taxes in the price of each item in
its pricemaster for each charge.
(b) If the billing detail by line item does
not agree with the detailed schedule of charges on
file with the commission on hospitals and health
care for the date of service specified on the
bill, the hospital shall be subject to a civil
penalty of five hundred dollars per occurrence
payable to the state within ten business days of
notification. The penalty shall be imposed in
accordance with subsections (b) to (e), inclusive,
of section 19a-167j of the general statutes, as
amended by section 55 of this act. The commission
may issue an order requiring such hospital, within
ten business days of notification of an overcharge
to a patient, to adjust the bill to be consistent
with the schedule of charges on file with the
commission for the date of service specified on
the patient bill.
Sec. 61. (NEW) As to any service rendered by a
hospital during the period from November 1, 1994,
through the effective date of this act as to which
the hospital rendered a bill prior to the
effective of this act, the hospital shall not
issue a bill for, or attempt to collect, any
additional amount for or relating to such service,
regardless whether or not the additional amount is
called a tax, if either (1) the total amount
billed or attempted to be collected is greater
than the rate for such service included on the
pricemaster in effect on October 31, 1994, or (2)
the original amount billed included an amount for
sales or gross earnings tax. Nothing in this
section shall be construed to alter, impair or
interfere with any existing contract between any
hospital and any payer. In any civil action
involving collection of an additional amount for a
service rendered on or after November 1, 1994,
which was previously billed, the hospital shall
have the burden of proof in establishing by clear
and convincing evidence that it has complied with
this section. Violation of the provisions of this
section shall be deemed an unfair or deceptive act
or practice as defined by section 42-110b of the
general statutes.
Sec. 62. (NEW) There is established a
reconciliation account which shall be a separate,
nonlapsing account within the general fund. Any
moneys received pursuant to subdivision (2) of
subsection (c) of section 19a-168v of the general
statutes, as amended by section 56 of this act,
shall be deposited by the commissioner of social
services into the account.
Sec. 63. (a) The secretary of the office of
policy and management shall cause to be prepared,
with the assistance of the division of special
revenue, an implementation plan for the partial or
total privatization of the Connecticut state
lotteries. The provisions of such plan shall
include, but not be limited to, recommendations
concerning: (1) The mechanism by which the state
can achieve the maximum total return to the state
from the total or partial privatization of the
Connecticut state lotteries; (2) the valuation to
the state; (3) the potential for state debt
reduction; (4) the terms and conditions relating
to such plan and (5) the procedures necessary for
the timely implementation of the plan.
(b) The secretary may enter into consulting
agreements with financial advisors, investment
bankers and any other entity whose services are
necessary to assist the secretary in the
development of the implementation plan. On October
1, 1995, a preliminary report on the progress of
such plan shall be submitted to the governor and
the joint standing committee of the general
assembly having cognizance of matters relating to
finance, revenue and bonding. The secretary shall
submit the implementation plan to the governor and
the general assembly on or before January 15,
1996, for approval, disapproval or modification.
Sec. 64. Section 85 of public act 94-4 of the
May special session is repealed and the following
is substituted in lieu thereof:
This act shall take effect from its passage,
except: Section 7 shall be applicable to income
years commencing on or after January 1, 1980,
section 23 shall be applicable to taxable years
commencing on or after January 1, 1988, sections
13 and 75 shall be applicable to income years
commencing on or after July 1, 1989, section 3
shall be applicable to assessment years commencing
on or after October 1, 1993, sections 70 to 74,
inclusive, shall be applicable to taxable years
commencing on or after January 1, 1993, sections
4, 16 and 26 shall be applicable to taxable years
commencing on or after January 1, 1994, section 45
shall be applicable to income years commencing on
or after January 1, 1995, section 47 shall be
applicable to property on the grand list of
October 1, 1994, section 79 shall be applicable to
taxable years commencing on or after January 1,
1997, and (1) sections 22, 41 and 46 shall take
effect July 1, 1994, (2) section 82 shall take
effect July 1, [1996] 1997, (3) sections 42 and 83
shall take effect October 1, 1994, and section 42
shall be applicable to taxes due and owing after
said date, (4) section 14 shall take effect
January 1, 1995, and shall be applicable to sales
occurring on or after said date, (5) sections 5, 6
and 49 shall take effect January 1, 1995, and
shall be applicable to premiums due on or after
said date, (6) section 25 shall take effect
January 1, 1995, and shall be applicable to
taxable years commencing on or after said date,
(7) sections 30 to 40, inclusive, and sections 53
to 66, inclusive, shall take effect July 1, 1995,
and shall be applicable to taxes due and owing on
or after said date, (8) sections 15, [and 17 to
20, inclusive,] 17 AND 18 shall take effect July
1, 1996, and shall be applicable to sales
occurring on or after said date, [and] (9)
SECTIONS 19 AND 20 SHALL TAKE EFFECT JULY 1, 1997,
AND SHALL BE APPLICABLE TO SALES OCCURRING ON OR
AFTER SAID DATE, AND (10) section 12 shall take
effect July 1, [1996] 1997, and shall be
applicable to calendar quarters commencing on or
after July 1, [1996] 1997.
Sec. 65. Section 17b-244 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) The room and board component of the rates
to be paid by the state to private facilities and
facilities operated by regional education service
centers which are licensed to provide residential
care pursuant to section 17a-227, but not
certified to participate in the Title XIX Medicaid
program as intermediate care facilities for
persons with mental retardation, shall be
determined annually by the commissioner of social
services, except that rates effective April 30,
1989, shall remain in effect through October 31,
1989. Any facility with real property other than
land placed in service prior to July 1, 1991,
shall, for the fiscal year ending June 30, 1995,
receive a rate of return on real property equal to
the average of the rates of return applied to real
property other than land placed in service for the
five years preceding July 1, 1993. For the fiscal
year ending June 30, 1996, and any succeeding
fiscal year, the rate of return on real property
for property items shall be revised every five
years. The commissioner shall, upon submission of
a request, allow actual debt service, comprised of
principal and interest, in excess of property
costs allowed pursuant to section 17-313b-5 of the
regulations of Connecticut state agencies,
provided such debt service terms and amounts are
reasonable in relation to the useful life and the
base value of the property. For the fiscal year
ending June 30, 1992, the inflation factor used to
determine rates shall be one-half of the gross
national product percentage increase for the
period between the midpoint of the cost year
through the midpoint of the rate year. For fiscal
year ending June 30, 1993, the inflation factor
used to determine rates shall be two-thirds of the
gross national product percentage increase from
the midpoint of the cost year to the midpoint of
the rate year. FOR THE FISCAL YEARS ENDING JUNE
30, 1996, AND JUNE 30, 1997, NO INFLATION FACTOR
SHALL BE APPLIED IN DETERMINING RATES. The
commissioner of social services shall prescribe
uniform forms on which such facilities shall
report their costs. Such rates shall be determined
on the basis of a reasonable payment for necessary
services. Any increase in grants, gifts,
fund-raising or endowment income used for the
payment of operating costs by a private facility
in the fiscal year ending June 30, 1992, shall be
excluded by the commissioner from the income of
the facility in determining the rates to be paid
to the facility for the fiscal year ending June
30, 1993, provided any operating costs funded by
such increase shall not obligate the state to
increase expenditures in subsequent fiscal years.
Nothing contained in this section shall authorize
a payment by the state to any such facility in
excess of the charges made by the facility for
comparable services to the general public. The
service component of the rates to be paid by the
state to private facilities and facilities
operated by regional education service centers
which are licensed to provide residential care
pursuant to section 17a-227, but not certified to
participate in the Title XIX Medicaid programs as
intermediate care facilities for persons with
mental retardation, shall be determined annually
by the commissioner of mental retardation.
(b) The commissioner of social services and
the commissioner of mental retardation shall adopt
regulations in accordance with the provisions of
chapter 54 to implement the provisions of this
section.
Sec. 66. Section 17b-243 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) The rate to be paid by the state to
rehabilitation centers, including but not limited
to, centers affiliated with the Easter Seal
Society of Connecticut, Inc., for services to
patients referred by any state agency, except
employment opportunities and day services, as
defined in section 17a-246, shall be determined
annually by the commissioner of social services
who shall prescribe uniform forms on which such
rehabilitation centers shall report their costs,
except that rates effective April 30, 1989, shall
remain in effect through May 31, 1990, and rates
in effect February 1, 1991, shall remain in effect
through December 31, 1992, except those which
would be decreased effective January 1, 1992,
shall be decreased. For the rate year beginning
January 1, 1993, [and any succeeding rate year]
THROUGH DECEMBER 31, 1995, any rate increase shall
not exceed the most recent annual increase in the
consumer price index for urban consumers. Such
rates shall be determined on the basis of a
reasonable payment for necessary services
rendered. Nothing contained herein shall authorize
a payment by the state to any such rehabilitation
center in excess of the charges made by such
center for comparable services to the general
public. THE COMMISSIONER OF SOCIAL SERVICES SHALL
ESTABLISH A FEE SCHEDULE FOR REHABILITATION
SERVICES TO BE EFFECTIVE ON AND AFTER JANUARY 1,
1996. THE FEE SCHEDULE MAY BE ADJUSTED ANNUALLY
BEGINNING JULY 1, 1997, TO REFLECT NECESSARY
INCREASES IN THE COST OF SERVICES.
(b) The amount to be paid by the state to
rehabilitation centers including but not limited
to centers affiliated with the Easter Seal Society
of Connecticut, Inc., for employment opportunities
and day services to patients referred by any state
agency shall be determined annually using a
uniform payment system in accordance with the
provisions of subsection (a) of section 17a-246.
Sec. 67. (NEW) On and after April 1, 1996, in
the determination of rates for federally qualified
health centers, the commissioner of social
services shall apply Medicare productivity
standards and a maximum allowable per visit cost
of one hundred fifteen per cent of the median cost
per visit.
Sec. 68. (NEW) For the purposes of computing
the tax pursuant to section 12-705 or section
12-722 of the general statutes for the period
prior to July 1, 1996, such tax shall be computed
without regard to the rate established in
subdivision (2) of subsection (a) of section
12-700, as amended by section 30 of this act. The
Commissioner of Revenue Services shall issue new
withholding tables effective July 1, 1996.
Sec. 69. This act shall take effect from its
passage, except: Sections 30 and 31 shall be
applicable to income years commencing on or after
January 1, 1996, section 32 shall be applicable to
income years commencing on or after January 1,
1998, sections 33 to 35, inclusive, shall be
applicable to income years commencing on or after
January 1, 1995, and sections 1 to 28, inclusive,
36, 37 and 50 shall take effect July 1, 1995,
section 40 and 45 shall take effect July 1, 1995,
and shall be applicable to sales occurring on or
after July 1, 1995, and July 1, 1996, sections 44
and 48 shall take effect July 1, 1996, and shall
be applicable to sales occurring on or after said
date, sections 39, 41 to 43, inclusive, 46, 47 and
49 shall take effect July 1, 1997, and shall be
applicable to sales occurring on or after said
date.
Approved June 1, 1995