as intermediate care facilities for persons who are developmentally disabled, providers of day treatment services or specialty hospitals. Providers of services are charged assessments on their gross receipts received from services and care related to intermediate care facilities, day treatment services or specialty hospitals for persons who are developmentally disabled and other operating income, less personal needs allowances and refunds, on a cash basis in the percentage amounts and for the periods specified in subdivision two of this section. Such as sessments shall be submitted by or on behalf of such providers of services to the commissioner of the office of mental retardation and developmental disabilities or his or her designee.

§ 33. Subdivision 2 of section 43.04 of the mental hygiene law, as added by chapter 938 of the laws of 1990, is amended to read as follows: 2. (a) (1) For each provider of services in the categories of services set forth in subdivision one of this section located in Regions II and III. as defined in the methodology established pursuant to paragraph (ii) of subdivision (c) of section 43.02 of this [chapter] article, the assessment shall be six-tenths of one percent of each such provider of services' gross receipts received for all services rendered within such service categories on a cash basis [during the period] beginning January first, nineteen hundred ninety-one through March thirty-first, nineteen hundred ninety-two].

(ii) For each provider of services in the categories of services set forth in subdivision one of this section located in Regions II and III, as defined in the methodology established pursuant to paragraph (ii) of subdivision (c) of section 43.02 of this article, an additional assessment shall be two and four-tenths percent of each such provider of services' gross receipts received for all services rendered within such service categories on a cash basis beginning April first, nineteen hundred ninety-two.

(b) (1) For each provider of services in the categories of services set forth in subdivision one of this section located in Region I, as defined in the methodology established pursuant to paragraph (ii) of subdivision (c) of section 43.02 of this [chapter] article, the assessment shall be six-tenths of one percent of each such provider of services' gross receipts received for all services rendered within such service categories on a cash basis [during the period] beginning July first, nineteen hundred ninety-one [through September thirtieth, nineteen hundred ninety-two].

(ii) For each provider of services in the categories of services set forth in subdivision one of this section located in Region I, as defined in the methodology established pursuant to paragraph (ii) of subdivision (c) of section 43.02 of this article, an additional assessment shall be two and four-tenths percent of each such provider of services' gross receipts received for all services rendered within such service categories on a cash basis beginning April first, nineteen hundred ninetytwo. § 34. Subdivision 4 of section 43.04 of the mental hygiene law, as added by chapter 938 of the laws of 1990, is amended to read as follows: 4. Gross receipts received from all services rendered within the service categories set forth in subdivision one of this section shall include, without limitation, all monies received on account of such services pursuant to rates of reimbursement established by the office of mental retardation and developmental disabilities and paid by the state, and shall not include, subject to the provisions of subdivision twelve of this section, charitable contributions, grants, donations, bequests and income from non-service related fund raising activities and governmental deficit financing.

§ 35. The opening paragraph of paragraph (a) and paragraphs (c) and (d) of subdivision 7 of section 43.04 of the mental hygiene law, as added by chapter 938 of the laws of 1990, are amended to read as follows:

Every provider of services shall submit reports on a cash basis of [estimated] actual gross receipts received from all services rendered within the services categories set forth in subdivision one of this section to persons with developmental disabilities and operating income for each month as follows:

EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law to be omitted.

(c) Final payments shall be due for all providers of services for the assessments pursuant to subdivision two of this section upon the due date for submission of the applicable quarterly report.

(d) The commissioner of the office of mental retardation and developmental disabilities may recoup deficiencies in final payments pursuant to paragraph (c) of subdivision [five] six of this section.

§ 36. Paragraph (a) of subdivision 8 of section 43.04 of the mental hygiene law, as added by chapter 938 of the laws of 1990, is amended to read as follows:

(a) If an estimated payment made for a month to which an assessment applies is less than ninety percent of the actual amount due for such month, interest shall be due and payable to the commissioner of the office of mental retardation and developmental disabilities on the difference between the amount paid and the amount due from the day of the month the estimated payment was due until the date of payment. The rate of interest shall be twelve percent per annum or at the rate of interest set by the commissioner of taxation and finance with respect to underpayments of tax pursuant to subsection (e) of section one thousand ninety-six of the tax law. Interest under this paragraph shall not be paid if the amount thereof is less than one dollar. Interest, if not paid by the due date of the following [months of] month's estimated payment, may be collected by the commissioner of the office of mental retardation and developmental disabilities pursuant to paragraph (c) of subdivision six of this section in the same manner as an assessment pursuant to subdivision two of this section.

§ 37. Paragraph (b) of subdivision 8 of section 43.04 of the mental hygiene law, as added by chapter 938 of the laws of 1990, is amended to read as follows:

(b) If an estimated payment made for a month to which an assessment applies is less than seventy percent of the actual amount due for such month, a penalty shall be due and payable to the commissioner of the office of mental retardation and developmental disabilities of [twentyfive] five percent of the difference between the amount paid and the amount due for such month when the failure to pay is for a duration of not more than one month after the due date of the payment with an additional five percent for each additional month or fraction thereof during which such failure continues, not exceeding twenty-five percent in the aggregate. A penalty may be collected by such commissioner pursuant to

paragraph (c) of subdivision six of this section in the same manner as an assessment pursuant to subdivision two of this section.

§ 38. Subdivision 10 of section 43.04 of the mental hygiene law, as added by chapter 938 of the laws of 1990, is amended to read as follows: 10. Notwithstanding any inconsistent provision of law or regulation to the contrary[,]:

(a) the assessments pursuant to this section shall not be an allowable cost in the determination of reimbursement rates pursuant to this

article:*

additional assess

(b) provided, however, that for purposes of determining rates of payment pursuant to this article for providers,, the ment of two and four-tenths percent imposed pursuant to this section shall be a reimburseable cost to be reflected as timely as practicable in rates of payment applicable within the assessment period, contingent, for payments by governmental agencies, on all federal approvals necessary by federal law and regulation for federal financial participation in payments made for beneficiaries eligible for medical assistance under title XIX of the federal social security act.

§ 39. Subdivision 11 of section 43.04 of the mental hygiene law, as added by chapter 938 of the laws of 1990, is amended to read as follows: 11. [Assessments] (a) The assessment shall not be collected in excess of five million one hundred thousand dollars [for] from providers of services [from] specified in paragraph (a) of subdivision two of this section for the period of January first, nineteen hundred ninety-one through March thirty-first, nineteen hundred ninety-two and specified in paragraph (b) of subdivision two of this section for the period of July first, nineteen hundred ninety-one through March thirty-first, nineteen hundred ninety-two. The amount of the assessment collected pursuant to subdivision two of this section in excess of five million [one hundred thousand] dollars shall be refunded to providers of services by the commissioner of the office of mental retardation and developmental disabil

So in original. (":" should be ";".)
So in original. (Word misspelled.)

ities based on the ratio which a provider of services' [assessments] assessment for such period bears to the total of [all] the assessments for such period paid by such providers of services.

(b) The assessment shall not be collected in excess of four million five hundred thousand dollars from providers of services specified in subdivision two of this section for the period of April first, nineteen hundred ninety-two through March thirty-first, nineteen hundred ninetythree. The amount of the assessment collected pursuant to subdivision two of this section in excess of four million five hundred thousand dollars shall be refunded to providers of services by the commissioner of the office of mental retardation and developmental disabilities based on the ratio which a provider of services' assessment for such period bears to the total of the assessments for such period paid by such providers of services.

(c) The additional assessment shall not be collected in excess of eighteen million dollars from providers of services specified in subdivision two of this section for the period of April first, nineteen hundred ninety-two through March thirty-first, nineteen hundred ninetythree. The amount of the additional assessment collected pursuant to subdivision two of this section in excess of eighteen million dollars shall be refunded to providers of services by the commissioner of the office of mental retardation and developmental disabilities based on the ratio which a provider of services' additional assessment for such period bears to the total of the additional assessments for such period paid by such providers of services.

§ 40. Section 43.04 of the mental hygiene law is amended by adding a new subdivision 12 to read as follows:

12. Each exclusion of sources of gross receipts received from the assessments effective on or after April first, nineteen hundred ninety-two established pursuant to this section shall be contingent upon either: (a) qualification of the assessments for waiver pursuant to federal law and regulation; or (b) consistent with federal law and regulation, not requiring a waiver by the secretary of the department of health and human services related to such exclusion; in order for the assessments under this section to be qualified as a broad-based health care related tax for purposes of the revenues received by the state pursuant to the assessments not reducing the amount expended by the state as medical assistance for purposes of federal financial participation. The commissioner of the office of mental retardation and developmental disabilities shall collect the assessments relying on such exclusions, pending any contrary action by the secretary of the department of health and human services. In the event the secretary of the department of health and human services determines that the assessments do not SO qualify based on any such exclusion, then the exclusion shall be deemed to have been null and void as of April first, nineteen hundred ninety-two, and the commissioner of the office of mental retardation and developmental disabilities shall collect any retroactive amount due as a result, without interest or penalty provided the provider of services pays the retroactive amount due within ninety days of notice from the commissioner of the office of mental retardation and developmental disabilities to the provider of services that an exclusion is null and void. Interest and penalties shall be measured from the due date of ninety days following notice from the commissioner of the office of mental retardation and developmental disabilities to the provider of services.

§ 41. Subdivision 2 of section 43.06 of the mental hygiene law, as added by chapter 938 of the laws of 1990, is amended to read as follows: 2. (a) Providers of services, for the purposes of this section, shall be hospitals licensed pursuant to article thirty-one of this chapter (which shall not include wards, wings, units or other parts of a hospital, as defined in article twenty-eight of the public health law,) and residential treatment facilities for children and youth, as defined in section 1.03 of this chapter.

(b) (1) For such hospitals which are providers of services, the assessment shall be six-tenths of one percent of each provider's gross receipts received from all patient care services and other operating income on a cash basis [during the period] beginning January first, nineteen hundred ninety-one [through March thirty-first, nineteen hundred ninety-two, ] for hospital or mental health-related services includEXPLANATION-Matter in italics is new; matter in brackets [ ] is old law to be omitted.

ing but not limited to inpatient service, outpatient

emergency service.

service and

(ii) If required pursuant to the provisions of subdivision thirteen of this section, for such hospitals which are providers of services, an additional assessment shall be one-tenth of one percent of each provider's gross receipts received from all patient care services and other operating income on a cash basis beginning April first, nineteen hundred ninety-two for hospital or mental health-related services including but not limited to inpatient service, outpatient service and emergency service. (c) (i) For residential treatment facilities for children and youth, the assessment shall be six-tenths of one percent of each provider's gross receipts received from all patient care services and other operating income on a cash basis [during the period] beginning July first, nineteen hundred ninety-one [through March thirty-first, nineteen hundred ninety-two, ] for hospital or mental health-related service including but not limited to inpatient service, outpatient service and emergency service.

(ii) If required pursuant to the provisions of subdivision thirteen of this section, for residential treatment facilities for children and youth, an additional assessment, shall be one-tenth of one percent of each provider's gross receipts received from all patient care services and other operating income on a cash basis beginning April first, nineteen hundred ninety-two for hospital or mental health-related service including but not limited to inpatient service, outpatient service and emergency service.

§ 42. Subdivision 3 of section 43.06 of the mental hygiene law, as added by chapter 938 of the laws of 1990, is amended to read as follows: 3. For all providers of services, gross receipts from patient care services and other operating income shall include, but not be limited to: (a) all moneys received for or on account of inpatient service, outpatient service, emergency service, or other hospital, mental health or mental health related service; and (b) all moneys received for or on account of such revenue sources as investment income, parking lots, cafeterias, gift shops, and rental income, provided, however, that subject to the provisions of subdivision twelve of this section income received from grants, charitable contributions, donations and bequests and governmental deficit financing shall not be included.

§ 43. Subdivision 5 of section 43.06 of the mental hygiene law, as added by chapter 938 of the laws of 1990, is amended to read as follows: 5. [(a)] Estimated payments by or on behalf of providers of services to the commissioner or his or her designee of funds due from the assessments pursuant to subdivision two of this section shall be made on a monthly basis. Estimated payments shall be due on or before the fifteenth day following the end of a calendar month to which an assessment applies.

§ 44. Paragraph (c) of subdivision 6 of section 43.06 of the mental hygiene law as added by chapter 938 of the laws of 1990, is amended to read as follows:

(c) Upon receipt of notification from the commissioner of a provider of services' deficiency under this section, the comptroller or a fiscal intermediary designated by the director of the budget, or the commissioner of social services, or a corporation organized and operating in accordance with article forty-three of the insurance law, or an organization operating in accordance with article forty-four of [this chapter] the public health law shall withhold from the amount of any payment to be made by the state or by such article forty-three corporation or article forty-four organization to the provider of services the amount of the deficiency determined under paragraph (a) or (b) of this subdivision paragraph (e) of subdivision seven of this section. Upon withholding such amount, the comptroller or a designated fiscal intermediary, or the commissioner of social services, or corporation organized and operating in accordance with article forty-three of the insurance law or organization operating in accordance with article forty-four of [this chapter] the public health law shall pay the commissioner, or his designee, such amount withheld on behalf of the provider of services.

or

§ 45. Paragraphs (d) and (e) of subdivision 6 of section 43.06 of the mental hygiene law, as added by chapter 938 of the laws of 1990, are amended to read as follows:

(d) The commissioner shall provide a provider of services with notice of any estimate of an amount due for an assessment pursuant to paragraph (a) or (b) of this subdivision or paragraph [(d)] (e) of subdivision

seven of this section at least three days prior to collection of such amount by the commissioner. Such notice shall contain the financial basis for the commissioner's estimate.

(e) In the event a provider of services objects to an estimate by the commissioner pursuant to paragraph (a) or (b) of this subdivision or paragraph [(d)] (e) of subdivision seven of this section of the amount due for an assessment, the provider of services, within sixty days of notice of an amount due, may request a public hearing. If a hearing is requested, the commissioner shall provide the provider of services opportunity to be heard and to present evidence bearing on the amount due for an assessment within thirty days after collection of an amount due or receipt of a request for a hearing, whichever is later. An administrative hearing is not a prerequisite to seeking judicial relief.

an

$ 46. The opening paragraph of paragraph (a) and paragraph (d) of subdivision 7 of section 43.06 of the mental hygiene law, as added by chapter 938 of the laws of 1990, are amended to read as follows:

Every provider of services shall submit reports on a cash basis of [estimated] actual gross receipts received from all patient care services and operating income for each month as follows:

(d) Final payments shall be due for all [provider] providers of services for the assessments pursuant to subdivision two of this section upon the due date for submission of the applicable quarterly report.

§ 47. Paragraph (a) of subdivision 8 of section 43.06 of the mental hygiene law, as added by chapter 938 of the laws of 1990, is amended to read as follows:

(a) If an estimated payment made for a month to which an assessment applies is less than ninety percent of the actual amount due for such month, interest shall be due and payable to the commissioner on the difference between the amount paid and the amount due from the day of the month the estimated payment was due until the date of payment. The rate of interest shall be twelve percent per annum or at the rate of interest set by the commissioner of taxation and finance with respect to underpayments of tax pursuant to subsection (e) of section one thousand ninety-six of the tax law. Interest under this paragraph shall not be paid if the amount thereof is less than one dollar. Interest, if not paid by the due date of the following [months of] month's estimated payment, may be collected by the commissioner pursuant to paragraph (c) of subdivision six of this section in the same manner as an assessment pursuant to subdivision two of this section.

to

§ 48. Paragraph (b) of subdivision 8 of section 43.06 of the mental hygiene law, as added by chapter 938 of the laws of 1990, is amended read as follows:

(b) If an estimated payment made for a month to which an assessment applies is less than seventy percent of the actual amount due for such month, a penalty shall be due and payable to the commissioner of [twenty-five] five percent of the difference between the amount paid and the amount due for such month when the failure to pay is for a duration of not more than one month after the due date of the payment with an additional five percent for each additional month or fraction thereof during which such failure continues, not exceeding twenty-five percent the aggregate. A penalty may be collected by the commissioner pursuant to paragraph (c) of subdivision six of this section in the same manner as an assessment pursuant to subdivision two of this section.

in

§ 49. Subdivision 11 of section 43.06 of the mental hygiene law, as added by chapter 938 of the laws of 1990, is amended to read as follows: 11. [Assessments] (a)(i) The assessment shall not be collected in excess of one million eight hundred thousand dollars [for] from providers of services pursuant to paragraph [b] (b) of subdivision two of this section [from] for the period of January first, nineteen hundred ninetyone through March thirty-first, nineteen hundred ninety-two. The amount of the assessment collected pursuant to paragraph [b] (b) of subdivision two of this section in excess of one million eight hundred thousand dollars shall be refunded to [the provider] providers of services by the commissioner of mental health based on the ratio which a hospital's assessments for such period bears to the total of [all] the assessments for such period paid by such hospitals.

(ii) The assessment shall not be collected in excess of one million five hundred thousand dollars from providers of services pursuant to paragraph (b) of subdivision two of this section for the period of April EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law to be omitted.