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Summary of statutory provisions in hb 1001Document Transcript
HB 1001 – CCR #1 APRIL 28, 2011 HIGHLIGHTS • No tax increases • Structurally balanced in both years of the biennium • Maintains a prudent level of reserves to protect taxpayers o Combined balances anticipated to be $1.07B at the end of the FY13 • Increases funding for K‐12 education o Increases tuition support funding by 0.5% in CY12 and 1% in CY13 o Increases full day kindergarten funding by $47M over the biennium HEALTH AND HUMAN SERVICES PROVISIONS • Provides for an extension and maximization of the Quality Assessment Fee, a moratorium on Medicaid nursing home beds, and a method for settling Medicaid overpayments • Authorizes a Hospital Assessment Fee with methodology for application, approval and disbursement of funds • Contains provisions supporting the management of mental health drugs • Maintains statutory authorizations and funding for Medicaid optional services • Restores CHOICE funding to levels appropriated in the previous budget • Makes the following changes to the First Steps program: o Requires insurance carriers to make monthly capitation payments on First Steps services o Increases but retains monthly copayment caps on First Steps services o Outlines a procedure for collecting delinquent copayments owed for First Steps services • Requires FSSA and the Medicaid Oversight Commission to study ways to lower the cost of the Developmentally Disabled Waiver program • Establishes the Council on Evansville Hospitals for the purpose of reviewing the need for state operated residential facilities in the Evansville area • Allows FSSA to reduce staffing levels and share services at the Evansville State Hospital and the Evansville Children’s Psychiatric Center but does not permit FSSA to close or merge the facilities until after the Council has completed its review • Requires ICHIA to set premiums for insured members to be at least 150% of average premiums for the 5 largest carriers • Provides reimbursement to providers for ICHIA services must be at least the Medicare rate plus 10% • Provides individuals may not enroll in ICHIA if they are eligible for services under Medicaid or a new insurance plan under the Federal Patient Protection and Affordable Care Act (PPACA) and the Indiana Check Up Plan
• Repeals the requirement that the Select Joint Commission on Medicaid Oversight must review any changes to reimbursements for nursing facilities • Broadens the ability for FSSA to adopt emergency rules • Repeals the FSSA Committee and the Council on Residential Facilities • Removes language regarding the reimbursement rate for RCAP facilities to reflect historic and current practice • Removes an exemption to the look back period for Medicaid eligibility for patterned transfer of assets • Removes the prohibition for OMPP to implement a federal option assessing penalties against those who disposed of assets below fair market value to obtain Medicaid eligibility • Prohibits OMPP from reimbursing a nursing home for a Medicaid recipient who is not present due to a hospital stay • Authorizes FSSA to apply to the federal government during the next two years for any available Medicaid block grant funding or additional waivers concerning the implementation of PPACA after review by the Budget Committee • Lowers eligibility for CHIP from children in families with less than 300% of federal poverty to families with less than 250% of federal poverty • Requires hospitals to conduct pulse oximetry screenings for all newborns • Abolishes the Indiana Tobacco Use Prevention and Cessation Executive Board and transfers the duties to the Department of Health • Establishes the Kinship Guardian Assistance Program under the Department of Child Services TAXES • Directs 50% of state reserve balances above 10% of appropriations to an automatic taxpayer refund and the other 50% to the Pension Stabilization Fund to reduce the unfunded liability of the pre‐1996 TRF account • Requires the State Budget to publish statewide estimates of certified distributions of CAGIT, CEDIT, and COIT • Prohibits supplemental distributions of CAGIT, CEDIT, and COIT balances unless a county’s balance exceeds 150% of the certified distribution • Provides that if the state collects an excess of use tax revenue from remote sellers because Congress has enacted the Streamlined Sales and Use Tax Agreement, 100% of the excess (defined as a year‐over‐year increase of more than $150M) shall be allotted to the Pension Stabilization Fund to reduce the unfunded liability of the pre‐1996 TRF account • Makes changes in the state tax code to conform and decouple from the federal tax code • Decreases (for FY 2012 and FY 2013 only) the share of cigarette tax revenues accruing to the State Retiree Health Benefit Trust Fund and increases the share for the state General Fund o Retiree Health Benefit Trust Fund will remain over 100% actuarially funded • Exempts the Council of State Governments from sales taxes during the Midwestern Legislative Conference • Requires DOR to publish on their website a statement notifying citizens that they are responsible for remitting use taxes due on items purchased over the internet or out of state
• Requires a professional tax preparer who prepares more than 100 returns prior to 2012, 50 returns in 2012, and 10 returns after 2012 to file the returns electronically EDUCATION PROVISIONS • Provides a school formula for CY 2012 and 2013 • Permits school corporations with significant revenue losses due to circuit breaker credits (defined as a loss exceeding more than 30% of the school’s non‐debt service levies) to restructure or extend outstanding debt and use the annual saving to offset circuit breaker losses o Schools with a loss between 30 and 45% must obtain taxpayer approval via a referendum o Schools with a loss greater than 45% are subject to the petition and remonstrance process o Schools are permitted to restructure no more than 50% of their outstanding debt • Adds the Mitch Daniels Early Graduation Scholarship (scholarship amount = $4,000) • Permits all high school students to participate in dual credit courses • Changes the funding for virtual charter schools from 80% of average statewide tuition support to 87.5% of the school’s target revenue • Requires that 60% of the students who are enrolled in virtual charters for the first time must have been included in the state’s ADM count for the previous year • Provides start up grants for the 1st semester costs for new charter schools • Permits school corporations to share revenues with a conversion charter school • Adds provisions designed to help DOE manage turnaround academies for failing schools • Requires DOE to distribute reimbursement for textbooks on a per capita basis (current law distributes reimbursement on the amount each school submits to DOE for reimbursement) • Stipulates that must take the ISTEP in students in either the 10th or 11th grade • Extends the exemption to the Brown County School Corporation for two years of principal and interest payments on their existing Rainy Day Fund loan • Includes technical amendments to HB 1429 concerning textbooks • Changes the effective dates in HB 1341 from January 1, 2011 (Retroactive) to July 1, 2011 • Provides funding for awards to high performing teachers • Funds universities through the performance funding formula • Changes approval thresholds on certain university capital expenditures to provide universities with more flexibility in managing non‐state funded capital expenditures • Requires the state’s public universities to participate in the state’s health care insurance program for prescription drugs unless the Budget Agency determines there would be no monetary savings • Requires CHE to recommend non‐binding fee increase targets within 30 days after enactment of a state budget • Requires public universities to set tuition and fees after the CHE has established recommended fee increase targets • Removes the CHE 90 day review requirement for projects funded with state appropriations • Requires the CHE to set priority dual credit courses and determine the amount of the fees to be charged to the student
• Increases funding for Frank O’Bannon grants to the levels projected to maintain the award caps at current levels • Permits transfers from the Freedom of Choice appropriation to ensure maximization of awards • Prohibits SSACI from providing scholarship grants to prisoners, but permits the DOC to provide some post‐secondary educational services to inmates • Requires the Budget Agency to annually calculate the unfunded liability of the 21st Century Scholars and CVO programs • Requires the Commission for Higher Education to study A) the university performance funding formula and B) Ivy Tech Community College’s plan to accommodate enrollment growth and EMPLOYMENT & PAY ISSUES • th Provides for a 13 Check for members of the PERF, TRF and State Excise/Gaming Agent/Conservation retirement funds, and provides a 1% “catch up” COLA for members of the 1987 State Police retirement program • Establishes the State Civil Service System, provides for state employees to be classified into either the state classified or the state unclassified service, and voids administrative rules concerning state employment • Provides that collective bargaining in state agencies and strikes by state employees are illegal • Creates an Interim Study Committee to study laws concerning mandatory union membership and project labor agreements • Provides that teachers at the Schools for the Deaf and Visually Impaired accrue vacation and holiday leave in accordance with the leave policies of the largest school corporation in the county • Temporarily (for 2 years) freezes legislator salaries at current levels • Provides discretion to the Chief Justice for pay increases for judges and prosecutors • Reestablishes the leave conversion program for the legislative and judicial branches • Provides for an annual contribution to the State Police, Conservation Officers, and the State Excise Police retiree medical plans in lieu of participation in the SEA 501 Retiree Health Benefit Plan CORRECTIONS • Conditions the requirements for which parolees must wear monitoring devices to the amount of funding available • Sets the maximum reimbursement rate that DOC must pay for inmate medical services at Medicare + 4% COURTS AND COUNTIES • Changes the Automated Record Keeping Fee, which is currently $7, from $4 to $5 from July 1, 2011 to June 30, 2013. Allows counties not participating in JTAC to keep $1 of the fee. • Increases funding for the Public Defense Fund from $1.7M to $3.7M funded by a $2 increase in the public defense administration fee • Requires that funds derived from a deferral program are available for expenditure only after appropriation
• Requires the Criminal Justice Institute to study the use of the diversion and deferral programs and the use of plea bargaining MISCELLANEOUS • Provides for a $1M annual transfer to the State Fair commission to promote harness racing at the State and County Fairs • Permits the Horse Racing Commission to use no more than 2% of breed development funds for administrative purposes • Provides for 15% of the revenues of the gaming integrity fund to be transferred to the Board of Animal Health • Redirects $3M from the breed development funds to the tobacco master settlement fund (TMSF) • Sets forth conditions under which the state moral obligation may be used to help ensure that annual debt service for bonds issued by the Bond Bank will be paid • Makes changes to permitted uses of the Allen County Food & Beverage Tax and the CIB • Extends due date of an outstanding loan made from the PDIF to January 1, 2023 • Requires the State Budget Agency to calculate annual unfunded liability amounts for certain SSACI programs • Reduces the Port Authority’s terms for loans and bonds to 25 years • Removes the historic preservation review of repair and rehabilitation expenses incurred by West Baden Springs • Requires the Commission on State tax and Financing Policy to study mass transit funding • Requires the State Budget Agency to study the funding of law enforcement training academies