(1) As used in this section: (a) (i) "Intergovernmental transfer" means the transfer of public funds from: (A) a local government entity to another nonfederal governmental entity; or (B) from a nonfederal, government owned health care facility regulated under Chapter 2, Part 2, Health Care Facility Licensing and Inspection, to another nonfederal governmental entity. (ii) "Intergovernmental transfer" does not include: (A) the transfer of public funds from one state agency to another state agency; or (B) a transfer of funds from the University of Utah Hospitals and Clinics. (b) (i) "Intergovernmental transfer program" means a federally approved reimbursement program or category that is authorized by the Medicaid state plan or waiver authority for intergovernmental transfers. (ii) "Intergovernmental transfer program" does not include the addition of a provider to an existing intergovernmental transfer program. (c) "Local government entity" means a county, city, town, special service district, special district, or local education agency as that term is defined in Section 63J-5-102. (d) "Non-state government entity" means a hospital authority, hospital district, health care district, special service district, county, or city. (2) (a) An entity that receives federal Medicaid dollars from the department as a result of an intergovernmental transfer shall, on or before August 1, 2017, and on or before August 1 each year thereafter, provide the department with: (i) information regarding the payments funded with the intergovernmental transfer as authorized by and consistent with state and federal law; (ii) information regarding the entity's ability to repay federal funds, to the extent required by the department in the contract for the intergovernmental transfer; and (iii) other information reasonably related to the intergovernmental transfer that may be required by the department in the contract for the intergovernmental transfer. (b) On or before October 15, 2017, and on or before October 15 each subsequent year, the department shall prepare a report for the Executive Appropriations Committee that includes: (i) the amount of each intergovernmental transfer under Subsection (2)(a); (ii) a summary of changes to CMS regulations and practices that are known by the department regarding federal funds related to an intergovernmental transfer program; and (iii) other information the department gathers about the intergovernmental transfer under Subsection (2)(a). (3) The department shall not create a new intergovernmental transfer program after July 1, 2017, unless the department reports to the Executive Appropriations Committee, in accordance with Section 63J-5-206, before submitting the new intergovernmental transfer program for federal approval. The report shall include information required by Subsection 63J-5-102(1)(e) and the analysis required in Subsections (2)(a) and (b). (4) (a) The department shall enter into new Nursing Care Facility Non-State Government-Owned Upper Payment Limit program contracts and contract amendments adding new nursing care facilities and new non-state government entity operators in accordance with this Subsection (4). (b) (i) If the nursing care facility expects to receive less than $1,000,000 in federal funds each year from the Nursing Care Facility Non-State Government-Owned Upper Payment Limit program, excluding seed funding and administrative fees paid by the non-state government entity, the department shall enter into a Nursing Care Facility Non-State Government- Owned Upper Payment Limit program contract with the non-state government entity operator of the nursing care facility. (ii) If the nursing care facility expects to receive between $1,000,000 and $10,000,000 in federal funds each year from the Nursing Care Facility Non-State Government-Owned Upper Payment Limit program, excluding seed funding and administrative fees paid by the non- state government entity, the department shall enter into a Nursing Care Facility Non-State Government-Owned Upper Payment Limit program contract with the non-state government entity operator of the nursing care facility after receiving the approval of the Executive Appropriations Committee. (iii) If the nursing care facility expects to receive more than $10,000,000 in federal funds each year from the Nursing Care Facility Non-State Government-Owned Upper Payment Limit program, excluding seed funding and administrative fees paid by the non-state government entity, the department may not approve the application without obtaining approval from the Legislature and the governor. (c) A non-state government entity may not participate in the Nursing Care Facility Non-State Government-Owned Upper Payment Limit program unless the non-state government entity is a special service district, county, or city that operates a hospital or holds a license under Chapter 2, Part 2, Health Care Facility Licensing and Inspection. (d) Each non-state government entity that participates in the Nursing Care Facility Non-State Government-Owned Upper Payment Limit program shall certify to the department that: (i) the non-state government entity is a local government entity that is able to make an intergovernmental transfer under applicable state and federal law; (ii) the non-state government entity has sufficient public funds or other permissible sources of seed funding that comply with the requirements in 42 C.F.R. Part 433, Subpart B; (iii) the funds received from the Nursing Care Facility Non-State Government-Owned Upper Payment Limit program are: (A) for each nursing care facility, available for patient care until the end of the non-state government entity's fiscal year; and (B) used exclusively for operating expenses for nursing care facility operations, patient care, capital expenses, rent, royalties, and other operating expenses; and (iv) the non-state government entity has completed all licensing, enrollment, and other forms and documents required by federal and state law to register a change of ownership with the department and with CMS. (5) The department shall add a nursing care facility to an existing Nursing Care Facility Non-State Government-Owned Upper Payment Limit program contract if: (a) the nursing care facility is managed by or affiliated with the same non-state government entity that also manages one or more nursing care facilities that are included in an existing Nursing Care Facility Non-State Government-Owned Upper Payment Limit program contract; and (b) the non-state government entity makes the certification described in Subsection (4)(d)(ii). (6) The department may not increase the percentage of the administrative fee paid by a non-state government entity to the department under the Nursing Care Facility Non-State Government- Owned Upper Payment Limit program. (7) The department may not condition participation in the Nursing Care Facility Non-State Government-Owned Upper Payment Limit program on: (a) a requirement that the department be allowed to direct or determine the types of patients that a non-state government entity will treat or the course of treatment for a patient in a non-state government nursing care facility; or (b) a requirement that a non-state government entity or nursing care facility post a bond, purchase insurance, or create a reserve account of any kind. (8) The non-state government entity shall have the primary responsibility for ensuring compliance with Subsection (4)(d)(ii). (9) (a) The department may not enter into a new Nursing Care Facility Non-State Government- Owned Upper Payment Limit program contract before January 1, 2019. (b) Subsection (9)(a) does not apply to: (i) a new Nursing Care Facility Non-State Government-Owned Upper Payment Limit program contract that was included in the federal funds request summary under Section 63J-5-201 for fiscal year 2018; or (ii) a nursing care facility that is operated or managed by the same company as a nursing care facility that was included in the federal funds request summary under Section 63J-5-201 for fiscal year 2018.
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