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13                       SECTION 41
14
15     TO AMEND SECTIONS 12-23-810 AND 12-23-815, BOTH AS AMENDED, 0F THE 1976 CODE, RELATING TO THE LICENSE
16     TAX ON HOSPITALS, SO AS TO DELETE PROVISIONS RELATING TO THE APPLICATION OF THE TAX TO A LICENSED
17     HOSPITAL IN ANOTHER STATE WHICH DOES BUSINESS IN THIS STATE AND TO DELETE AN OBSOLETE REFERENCE
18     APPLICABLE TO THE INFORMATION NEEDED TO ISSUE TAX ASSESSMENTS AND ASSIGN THE DUTY TO THE OFFICE
19     OF RESEARCH AND STATISTICS OF THE STATE BUDGET AND CONTROL BOARD; AND TO AMEND SECTION 44-6-155,
20     AS AMENDED, RELATING TO THE MEDICAID EXPANSION FUND, SO AS TO DELETE VARIOUS USES OF THE MONIES
21     IN THE FUND AND TO CORRECT AN OBSOLETE AGENCY REFERENCE.
22
23     A.  Section 12-23-810(B) of the 1976 Code, as added by Act 105 of 1991, is amended to read:
24
25           "(B)       Reserved     Effective July 1, 1992, every hospital licensed as a general hospital in another state is subject to the payment of an
26     excise, license, or privilege tax if the hospital does business in South Carolina. A hospital is considered to be doing business in this State if the
27     hospital, or the firm, corporation, association, or partnership which owns or operates the hospital, either directly or through a subsidiary
28     corporation, establishes a physical presence in the State by owning, leasing, subleasing, or by any other means arranges to provide space to
29     engage in or transact activity for financial profit or gain. Each hospital's tax must be based on the total number of patient days from the prior
30     year attributed to South Carolina residents, excluding Medicaid patient days, adjusted by the hospital's ratio of total net to gross patient revenue.
31     Net patient revenue for purposes of this formula is defined as gross patient revenue less contractual allowances, bad debts, uncompensated
32     indigent care, property taxes, and state and federal income taxes."
33
34     B.   Section 12-23-815 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:



PART II                                                                            PAGE 563

 1           "Section 12-23-815. The Department of Revenue shall issue assessments for the tax provided by this article based on information
 2     provided by the Department of Health and Environmental Control and the Health and Human Services Finance Commission Office of Research
 3     and Statistics of the State Budget and Control Board."
 4
 5     C.   Section 44-6-155(C) of the 1976 Code, as last amended by Act 105 of 1991, is further amended to read:
 6
 7           "(C)       Monies in the fund must be used to:
 8                  (1)  provide Medicaid coverage to pregnant women and infants with family incomes above one hundred percent but below one hundred
 9     eighty-five percent of the federal poverty guidelines;
10                  (2)  provide Medicaid coverage to children aged one through six with family income below federal poverty guidelines;
11                  (3)  provide Medicaid coverage to aged and disabled persons with family income below federal poverty guidelines;
12                  (4)  reserved       provide Medicaid coverage through a medically-needy program to eligible persons in families with medical expenses
13     which reduce the net family income below state and federal standards;
14                  (5)  reserved       provide Medicaid reimbursement for hospital patients in need of subacute care, including patients in swing beds;
15                  (6)  reserved       provide a pool of at least forty-four million dollars for the sole purpose of adjusting Medicaid reimbursement for
16     hospitals as provided in Section 44-6-140(A)(1). Funds in the pool not immediately used for this purpose must be carried forward for eventual
17     use for this purpose;
18                  (7)  provide up to two hundred forty thousand dollars to reimburse the Division Office of Research and Statistical Services Statistics
19     of the State Budget and Control Board and hospitals for the cost of collecting and reporting data pursuant to Section 44-6-170; and
20                  (8)  reserved       supplement state funds needed to administer items (3) and (4), not to exceed $700,000."
21