Bill Text: IN SB0366 | 2011 | Regular Session | Enrolled


Bill Title: State department of health matters.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Passed) 2011-05-18 - SECTIONS 35 through 42 effective 07/01/2011 [SB0366 Detail]

Download: Indiana-2011-SB0366-Enrolled.html


First Regular Session 117th General Assembly (2011)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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    SENATE ENROLLED ACT No. 366



     AN ACT to amend the Indiana Code concerning health.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 4-4-33-1; (11)SE0366.1.1. -->
    SECTION 1. IC 4-4-33-1, AS ADDED BY P.L.181-2006, SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1. The lieutenant governor shall administer the following:
        (1) The Housing Assistance Act of 1937 (42 U.S.C. 1437).
        (2) Community services programs, including the Community Services Block Grant under 42 U.S.C. 9901 et seq.
        (3) Home energy assistance programs, including the Low Income Home Energy Assistance Block Grant under 42 U.S.C. 8621 et seq.
        (4) Weatherization programs, including weatherization programs and money received under 42 U.S.C. 6851 et seq.
        (5) Food and nutrition programs, including food and nutrition programs and money received under 7 U.S.C. 612, 7 U.S.C. 7501 et seq., and 42 U.S.C. 9922 et seq.
        (6) (5) Migrant and farm worker programs and money under 20 U.S.C. 6391 et seq., 29 U.S.C. 49 et seq., and 42 U.S.C. 1397 et seq.
        (7) (6) Emergency shelter grant programs and money under 42 U.S.C. 11371 et seq.
        (8) (7) Shelter plus care programs and money under 42 U.S.C. 11403 et seq.
SOURCE: IC 6-1.1-10-16; (11)SE0366.1.2. -->     SECTION 2. IC 6-1.1-10-16, AS AMENDED BY P.L.196-2007, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 16. (a) All or part of a building is exempt from property taxation if it is owned, occupied, and used by a person for educational, literary, scientific, religious, or charitable purposes.
    (b) A building is exempt from property taxation if it is owned, occupied, and used by a town, city, township, or county for educational, literary, scientific, fraternal, or charitable purposes.
    (c) A tract of land, including the campus and athletic grounds of an educational institution, is exempt from property taxation if:
        (1) a building that is exempt under subsection (a) or (b) is situated on it;
        (2) a parking lot or structure that serves a building referred to in subdivision (1) is situated on it; or
        (3) the tract:
            (A) is owned by a nonprofit entity established for the purpose of retaining and preserving land and water for their natural characteristics;
            (B) does not exceed five hundred (500) acres; and
            (C) is not used by the nonprofit entity to make a profit.
    (d) A tract of land is exempt from property taxation if:
        (1) it is purchased for the purpose of erecting a building that is to be owned, occupied, and used in such a manner that the building will be exempt under subsection (a) or (b); and
        (2) not more than four (4) years after the property is purchased, and for each year after the four (4) year period, the owner demonstrates substantial progress and active pursuit towards the erection of the intended building and use of the tract for the exempt purpose. To establish substantial progress and active pursuit under this subdivision, the owner must prove the existence of factors such as the following:
            (A) Organization of and activity by a building committee or other oversight group.
            (B) Completion and filing of building plans with the appropriate local government authority.
            (C) Cash reserves dedicated to the project of a sufficient amount to lead a reasonable individual to believe the actual construction can and will begin within four (4) years.
            (D) The breaking of ground and the beginning of actual construction.
            (E) Any other factor that would lead a reasonable individual to believe that construction of the building is an active plan and

that the building is capable of being completed within eight (8) years considering the circumstances of the owner.
If the owner of the property sells, leases, or otherwise transfers a tract of land that is exempt under this subsection, the owner is liable for the property taxes that were not imposed upon the tract of land during the period beginning January 1 of the fourth year following the purchase of the property and ending on December 31 of the year of the sale, lease, or transfer. The county auditor of the county in which the tract of land is located may establish an installment plan for the repayment of taxes due under this subsection. The plan established by the county auditor may allow the repayment of the taxes over a period of years equal to the number of years for which property taxes must be repaid under this subsection.
    (e) Personal property is exempt from property taxation if it is owned and used in such a manner that it would be exempt under subsection (a) or (b) if it were a building.
    (f) A hospital's property that is exempt from property taxation under subsection (a), (b), or (e) shall remain exempt from property taxation even if the property is used in part to furnish goods or services to another hospital whose property qualifies for exemption under this section.
    (g) Property owned by a shared hospital services organization that is exempt from federal income taxation under Section 501(c)(3) or 501(e) of the Internal Revenue Code is exempt from property taxation if it is owned, occupied, and used exclusively to furnish goods or services to a hospital whose property is exempt from property taxation under subsection (a), (b), or (e).
    (h) This section does not exempt from property tax an office or a practice of a physician or group of physicians that is owned by a hospital licensed under IC 16-21-1 IC 16-21-2 or other property that is not substantially related to or supportive of the inpatient facility of the hospital unless the office, practice, or other property:
        (1) provides or supports the provision of charity care (as defined in IC 16-18-2-52.5), including providing funds or other financial support for health care services for individuals who are indigent (as defined in IC 16-18-2-52.5(b) and IC 16-18-2-52.5(c)); or
        (2) provides or supports the provision of community benefits (as defined in IC 16-21-9-1), including research, education, or government sponsored indigent health care (as defined in IC 16-21-9-2).
However, participation in the Medicaid or Medicare program alone does not entitle an office, practice, or other property described in this

subsection to an exemption under this section.
    (i) A tract of land or a tract of land plus all or part of a structure on the land is exempt from property taxation if:
        (1) the tract is acquired for the purpose of erecting, renovating, or improving a single family residential structure that is to be given away or sold:
            (A) in a charitable manner;
            (B) by a nonprofit organization; and
            (C) to low income individuals who will:
                (i) use the land as a family residence; and
                (ii) not have an exemption for the land under this section;
        (2) the tract does not exceed three (3) acres;
        (3) the tract of land or the tract of land plus all or part of a structure on the land is not used for profit while exempt under this section; and
        (4) not more than four (4) years after the property is acquired for the purpose described in subdivision (1), and for each year after the four (4) year period, the owner demonstrates substantial progress and active pursuit towards the erection, renovation, or improvement of the intended structure. To establish substantial progress and active pursuit under this subdivision, the owner must prove the existence of factors such as the following:
            (A) Organization of and activity by a building committee or other oversight group.
            (B) Completion and filing of building plans with the appropriate local government authority.
            (C) Cash reserves dedicated to the project of a sufficient amount to lead a reasonable individual to believe the actual construction can and will begin within five (5) years of the initial exemption received under this subsection.
            (D) The breaking of ground and the beginning of actual construction.
            (E) Any other factor that would lead a reasonable individual to believe that construction of the structure is an active plan and that the structure is capable of being:
                (i) completed; and
                (ii) transferred to a low income individual who does not receive an exemption under this section;
            within eight (8) years considering the circumstances of the owner.
    (j) An exemption under subsection (i) terminates when the property is conveyed by the nonprofit organization to another owner. When the

property is conveyed to another owner, the nonprofit organization receiving the exemption must file a certified statement with the auditor of the county, notifying the auditor of the change not later than sixty (60) days after the date of the conveyance. The county auditor shall immediately forward a copy of the certified statement to the county assessor. A nonprofit organization that fails to file the statement required by this subsection is liable for the amount of property taxes due on the property conveyed if it were not for the exemption allowed under this chapter.
    (k) If property is granted an exemption in any year under subsection (i) and the owner:
        (1) ceases to be eligible for the exemption under subsection (i)(4);
        (2) fails to transfer the tangible property within eight (8) years after the assessment date for which the exemption is initially granted; or
        (3) transfers the tangible property to a person who:
            (A) is not a low income individual; or
            (B) does not use the transferred property as a residence for at least one (1) year after the property is transferred;
the person receiving the exemption shall notify the county recorder and the county auditor of the county in which the property is located not later than sixty (60) days after the event described in subdivision (1), (2), or (3) occurs. The county auditor shall immediately inform the county assessor of a notification received under this subsection.
    (l) If subsection (k)(1), (k)(2), or (k)(3) applies, the owner shall pay, not later than the date that the next installment of property taxes is due, an amount equal to the sum of the following:
        (1) The total property taxes that, if it were not for the exemption under subsection (i), would have been levied on the property in each year in which an exemption was allowed.
        (2) Interest on the property taxes at the rate of ten percent (10%) per year.
    (m) The liability imposed by subsection (l) is a lien upon the property receiving the exemption under subsection (i). An amount collected under subsection (l) shall be collected as an excess levy. If the amount is not paid, it shall be collected in the same manner that delinquent taxes on real property are collected.
    (n) Property referred to in this section shall be assessed to the extent required under IC 6-1.1-11-9.

SOURCE: IC 6-1.1-10-18.5; (11)SE0366.1.3. -->     SECTION 3. IC 6-1.1-10-18.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 18.5. (a) This section does not exempt from property tax an office or a practice of a physician

or group of physicians that is owned by a hospital licensed under IC 16-21-1 IC 16-21-2 or other property that is not substantially related to or supportive of the inpatient facility of the hospital unless the office, practice, or other property:
        (1) provides or supports the provision of charity care (as defined in IC 16-18-2-52.5), including funds or other financial support for health care services for individuals who are indigent (as defined in IC 16-18-2-52.5(b) and IC 16-18-2-52.5(c)); or
        (2) provides or supports the provision of community benefits (as defined in IC 16-21-9-1), including research, education, or government sponsored indigent health care (as defined in IC 16-21-9-2).
However, participation in the Medicaid or Medicare program, alone, does not entitle an office, a practice, or other property described in this subsection to an exemption under this section.
    (b) Tangible property is exempt from property taxation if it is:
        (1) owned by an Indiana nonprofit corporation; and
        (2) used by that corporation in the operation of a hospital licensed under IC 16-21, a health facility licensed under IC 16-28, or in the operation of a residential facility for the aged and licensed under IC 16-28, or in the operation of a Christian Science home or sanatorium.
    (c) Property referred to in this section shall be assessed to the extent required under IC 6-1.1-11-9.

SOURCE: IC 11-10-3-4; (11)SE0366.1.4. -->     SECTION 4. IC 11-10-3-4, AS AMENDED BY HEA 1017-2011, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 4. (a) The department shall establish directives governing:
        (1) medical care to be provided to committed individuals, including treatment for mental retardation, alcoholism, and drug addiction;
        (2) administration of medical facilities and health centers operated by the department;
        (3) medical equipment, supplies, and devices to be available for medical care;
        (4) provision of special diets to committed individuals;
        (5) acquisition, storage, handling, distribution, and dispensing of all medication and drugs;
        (6) the return of unused medications that meet the requirements of IC 25-26-13-25(j)(1) through IC 25-26-13-25(j)(6) to the pharmacy that dispensed the medication;
        (7) training programs and first aid emergency care for committed

individuals and department personnel;
        (8) medical records of committed individuals; and
        (9) professional staffing requirements for medical care.
    (b) The state department of health shall make an annual inspection of every health facility, health center, or hospital:
         (1) operated by the department; and
        (2) not accredited by a nationally recognized accrediting organization;

and report to the commissioner whether that facility, center, or hospital meets the requirements established by the state department of health. Any noncompliance with those requirements must be stated in writing to the commissioner, with a copy to the governor.
    (c) For purposes of IC 4-22-2, the term "directive" as used in this section relates solely to internal policy and procedure not having the force of law.
    (d) For purposes of subsection (a)(6), the department:
        (1) shall return medication that belonged to a Medicaid recipient; and
        (2) may return other unused medication;
to the pharmacy that dispensed the medication if the unused medication meets the requirements of IC 25-26-13-25(j)(1) through IC 25-26-13-25(j)(6).
    (e) The department may establish directives concerning the return of unused medical devices or medical supplies that are used for prescription drug therapy and that meet the requirements of IC 25-26-13-25(k).
    (f) A pharmacist or pharmacy that enters into an agreement with the department to accept the return of:
        (1) unused medications that meet the requirements of IC 25-26-13-25(j)(1) through IC 25-26-13-25(j)(6); or
        (2) unused medical devices or medical supplies that are used for prescription drug therapy and that meet the requirements of IC 25-26-13-25(k);
may negotiate with the department a fee for processing the returns.

SOURCE: IC 11-11-6-2; (11)SE0366.1.5. -->     SECTION 5. IC 11-11-6-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2. (a) The facilities of the department must comply with federal and state health, sanitation, safety, and fire laws applicable to dwellings, food establishments, eating facilities, and public buildings.
    (b) Each department facility shall be inspected at least annually by:
         (1) the state department of health if the facility is not accredited by a nationally recognized accrediting organization; and
         (2) the state fire marshal;
who shall, within fifteen (15) days of the inspection, file a written report with the commissioner listing all unsafe, unsanitary, or unhealthy conditions within a facility that constitute a menace to the health, safety, and welfare of committed persons or department employees. In determining whether conditions are unsafe, unsanitary, or unhealthy, the state department of health and the state fire marshal shall consider the degree of overcrowding, the light, air, and space available to offenders within a facility, the size and arrangement of rooms and cells, the sanitary facilities, and the extent to which conditions in a facility endanger life or property.
    (c) The commissioner shall correct all unsafe, unsanitary, or unhealthy conditions reported by the state department of health or the state fire marshal with reasonable promptness. Failure by the department to initiate and continue action to correct unsafe, unsanitary, or unhealthy conditions within thirty (30) days of receiving a report of those conditions from the state department of health or the state fire marshal constitutes noncompliance with this subsection. Upon such noncompliance, the commissioner shall submit to the reporting agency and the governor a written statement explaining:
        (1) why the reported condition or conditions have not been remedied;
        (2) what the estimated cost of remedying the reported condition or conditions would be in terms of construction, renovation, manpower, space, and equipment;
        (3) whether the reported condition or conditions can be corrected by using facilities of other governmental entities;
        (4) whether additional state financing is required and, if so, the estimated amount needed; and
        (5) the probable consequences of not remedying each reported unsafe, unsanitary, or unhealthy condition.
    (d) Notwithstanding other provisions of this section, the state department of health and state fire marshal retain authority to correct unhealthy, unsanitary, or unsafe conditions within a facility as provided by law.
SOURCE: IC 16-18-2-84; (11)SE0366.1.6. -->     SECTION 6. IC 16-18-2-84 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 84. "Council" refers to the following:
        (1) For purposes of IC 16-21, IC 16-25, IC 16-27, IC 16-28, and IC 16-29, the hospital health care facility advisory council.
        (2) For purposes of IC 16-25 and IC 16-27, the home health care services and hospice services council.
        (3) For purposes of IC 16-28 and IC 16-29, the Indiana health facilities council.
        (4) (2) For purposes of IC 16-46-6, the interagency state council on black and minority health.
SOURCE: IC 16-18-2-150; (11)SE0366.1.7. -->     SECTION 7. IC 16-18-2-150, AS AMENDED BY P.L.152-2005, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 150. (a) "Governing body", for purposes of IC 16-22-7, has the meaning set forth in IC 16-22-7-2.
    (b) "Governing body", for purposes of IC 16-27-0.5, has the meaning set forth in IC 16-27-0.5-0.5.
    (c) (b) "Governing body", for purposes of IC 16-41-22, has the meaning set forth in IC 16-41-22-3.
SOURCE: IC 16-18-2-282; (11)SE0366.1.8. -->     SECTION 8. IC 16-18-2-282 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 282. (a) "Physician", except as provided in subsection subsections (b) and (c), means a licensed physician (as defined in section 202 of this chapter).
    (b) "Physician", for purposes of IC 16-41-12, has the meaning set forth in IC 16-41-12-7.
     (c) "Physician", for purposes of IC 16-37-1-3.1 and IC 16-37-3-5, means an individual who:
        (1) was the physician last in attendance (as defined in section 282.2 of this chapter); or
        (2) is licensed under IC 25-22.5.

SOURCE: IC 16-18-2-282.2; (11)SE0366.1.9. -->     SECTION 9. IC 16-18-2-282.2 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 282.2. (a) "Physician last in attendance" means the individual who pronounced the time of death for a deceased individual.
    (b) For purposes of IC 16-37-3, the term includes an individual who holds any medical license issued under IC 25-22.5.

SOURCE: IC 16-19-3-24.5; (11)SE0366.1.10. -->     SECTION 10. IC 16-19-3-24.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 24.5. The state department shall administer food and nutrition programs and money received under 7 U.S.C. 612, 7 U.S.C. 7501 et seq., and 42 U.S.C. 9922 et seq.
SOURCE: IC 16-19-15; (11)SE0366.1.11. -->     SECTION 11. IC 16-19-15 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]:
     Chapter 15. Health Care Facility Advisory Council
    Sec. 1. The health care facility advisory council is created.
    Sec. 2. (a) The council consists of twenty (20) members as follows:
        (1) The commissioner or the commissioner's designee.
        (2) The secretary of family and social services or the secretary's designee.
        (3) The following members appointed by the governor:
            (A) One (1) physician licensed under IC 25-22.5 who primarily practices in acute care.
            (B) One (1) physician licensed under IC 25-22.5 who primarily practices in long term care.
            (C) One (1) registered nurse licensed under IC 25-23 who is employed in an acute care facility.
            (D) One (1) registered nurse licensed under IC 25-23 who is employed in a long term care facility.
            (E) One (1) registered nurse licensed under IC 25-23 who is employed by a home health agency.
            (F) One (1) residential care administrator.
            (G) Two (2) individuals who are employed as hospital administrators.
            (H) One (1) individual who is employed as an administrator of a freestanding ambulatory outpatient surgical center.
            (I) Two (2) individuals who are employed as long term care facility administrators, as follows:
                (i) One (1) individual who is employed at a for-profit facility.
                (ii) One (1) individual who is employed at a nonprofit facility.
            (J) One (1) individual who is employed by a home health agency as:
                (i) an administrator; or
                (ii) a director of nursing.
            (K) One (1) individual who:
                (i) represents the interests of senior citizens; and
                (ii) has experience as a health care advocate for senior citizens and may represent a statewide organization.
            (L) One (1) individual who:
                (i) represents the interests of people with disabilities; and
                (ii) has experience as a health care advocate for people with disabilities and may represent a statewide organization.
            (M) One (1) individual who:
                (i) represents the interests of people with chronic or acute health care needs; and
                (ii) has experience as a health care advocate for people with chronic or acute health care needs and may represent a statewide organization.
            (N) Two (2) individuals employed by any one (1) of the following:
                (i) A school of public health.
                (ii) A school of nursing.
                (iii) A school of medicine.
                (iv) A school of allied health.
                (v) A health care research organization.
                (vi) A quality improvement organization.
            (O) One (1) individual who is employed by a hospice agency as:
                (i) an administrator; or
                (ii) a director of nursing.
The governor shall appoint one (1) member under this subsection as chairperson and one (1) member as vice chairperson of the council.
    (b) The commissioner or the commissioner's designee shall serve as secretary of the council.
    (c) Except for an individual appointed under subsection (a)(3)(C) through (a)(3)(J), a member of the council may not:
        (1) have a pecuniary interest in the operation of;
        (2) have an ownership interest in;
        (3) serve as a voting member of the governing body of; or
        (4) provide professional services through employment or under contract to;
an institution, facility, or agency licensed by the state department.
    (d) The governor shall make the initial appointments under subsection (a)(3) to the council with the terms of office beginning July 1, 2011, and serving terms as follows:
        (1) Eight (8) members shall be appointed for a term of four (4) years.
        (2) Eight (8) members shall be appointed for a term of two (2) years.
After the initial term of office for the council, a member shall be appointed for a term of four (4) years.
    (e) Any vacancy on the council shall be filled by the governor for the remainder of the unexpired term in the same manner as the original appointment.
    Sec. 3. (a) A member of the council who is not a state employee is entitled to the minimum salary per diem provided by

IC 4-10-11-2.1(b).
    (b) A member of the council is entitled to reimbursement for traveling expenses as provided in IC 4-13-1-4 and other expenses actually incurred in connection with the member's duties, as provided in the state policies and procedures established by the Indiana department of administration and approved by the budget agency.
    Sec. 4. (a) The chairperson shall call the first meeting of the council not more than sixty (60) days after the appointment of all the members to the council. The council shall meet at least three (3) times each year on dates fixed by the council.
    (b) The chairperson may call a special meeting of the council at the commissioner's request or upon the written request of at least four (4) members of the council.
    (c) Ten (10) members of the council constitute a quorum for the transaction of business. The affirmative votes of a majority of the members are required for the council to take action on any measure.
    (d) The chairperson may approve the creation of a subcommittee at the request of a majority of the council members. A subcommittee member:
        (1) serves at the pleasure of the council; and
        (2) does not receive travel reimbursement or per diem.
    Sec. 5. (a) The council shall serve as an advisory body to the state department regarding facilities and entities licensed under the following:
        (1) IC 16-21.
        (2) IC 16-25.
        (3) IC 16-27.
        (4) IC 16-28.
    (b) The council may do the following:
        (1) Propose rules to the executive board.
        (2) Recommend issuance of interpretative guidelines when necessary to assist a facility or entity in meeting the requirements of a rule adopted under:
            (A) IC 16-21-1;
            (B) IC 16-27-0.5; or
            (C) IC 16-28-1.
        An interpretative guideline is not a rule and may not be used to contravene a rule.
    (c) The council shall do the following:
        (1) Propose rules as set forth in the following:


            (A) IC 16-21-1-7.
            (B) IC 16-21-2-14.
            (C) IC 16-27-0.5-9.
            (D) IC 16-28-1-7.
            (E) IC 16-28-1-11.
            (F) IC 16-28-6-2.
        (2) Advise the state department as set forth in the following:
            (A) IC 16-27-0.5.
            (B) IC 16-28-1-7(4).
        (3) Make recommendations to the fire prevention and building safety commission as set forth in IC 16-28-1-7(2).
        (4) Classify health facilities in health care categories as required in IC 16-28-1-7.
    Sec. 6. Beginning July 1, 2011, the liabilities, property, records, and other assets that belonged to the following councils are transferred to the health care facility advisory council:
        (1) The hospital council established by IC 16-21-1-1, before its repeal.
        (2) The home health care services and hospice services council established by IC 16-27-0.5-1, before its repeal.
        (3) The health facilities council (established by IC 16-28-1-1, before its repeal).

SOURCE: IC 16-21-1-9; (11)SE0366.1.12. -->     SECTION 12. IC 16-21-1-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 9. (a) Except as provided in IC 16-29-1-11, The executive board state health commissioner may, upon recommendation by the state health commissioner and for good cause shown, waive a rule:
        (1) adopted under this chapter; or
        (2) that may be waived under IC 16-28 for a specified time for a hospital based health facility or a hospital licensed under this article.
    (b) Disapproval of waiver requests requires executive board action.
    (c) (b) A waiver may not adversely affect the health, safety, and welfare of the residents or patients.
SOURCE: IC 16-21-2-3; (11)SE0366.1.13. -->     SECTION 13. IC 16-21-2-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. The council state department may determine if an institution or agency is covered by this chapter. A decision of the council state department under this section is subject to review under IC 4-21.5.
SOURCE: IC 16-21-2-12; (11)SE0366.1.14. -->     SECTION 14. IC 16-21-2-12 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 12. An application must be accompanied by a licensing fee at the rate adopted by the

council state department under IC 4-22-2.

SOURCE: IC 16-21-2-14; (11)SE0366.1.15. -->     SECTION 15. IC 16-21-2-14, AS AMENDED BY P.L.96-2005, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 14. A license to operate a hospital, an ambulatory outpatient surgical center, an abortion clinic, or a birthing center:
        (1) expires one (1) year after the date of issuance;
        (2) is not assignable or transferable;
        (3) is issued only for the premises named in the application;
        (4) must be posted in a conspicuous place in the facility; and
        (5) may be renewed each year upon the payment of a renewal fee at the rate adopted by the council state department under IC 4-22-2.
SOURCE: IC 16-21-3-2; (11)SE0366.1.16. -->     SECTION 16. IC 16-21-3-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2. The state health commissioner may take action under section 1 of this chapter on any of the following grounds:
        (1) Violation of any of the provisions of this chapter or of the rules adopted under this chapter.
        (2) Permitting, aiding, or abetting the commission of any illegal act in an institution.
        (3) Knowingly collecting or attempting to collect from a subscriber (as defined in IC 27-13-1-32) or an enrollee (as defined in IC 27-13-1-12) of a health maintenance organization (as defined in IC 27-13-1-19) any amounts that are owed by the health maintenance organization.
        (4) Conduct or practice found by the council state department to be detrimental to the welfare of the patients of an institution.
SOURCE: IC 16-21-6-6; (11)SE0366.1.17. -->     SECTION 17. IC 16-21-6-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 6. In addition to the report filed under section 3 of this chapter, each hospital shall, not more than one hundred twenty (120) days after the end of each calendar quarter, file with the state department, or the state department's designated contractor, inpatient and outpatient discharge information at the patient level, in a format prescribed by the state health commissioner, including the following:
        (1) The patient's:
            (A) length of stay;
            (B) diagnoses and surgical procedures performed during the patient's stay;
            (C) date of:
                (i) admission;
                (ii) discharge; and
                (iii) birth;
            (D) type of admission;
            (E) admission source;
            (F) gender;
            (G) race;
            (H) discharge disposition; and
            (I) payor, including:
                (i) Medicare;
                (ii) Medicaid;
                (iii) a local government program;
                (iv) commercial insurance;
                (v) self-pay; and
                (vi) charity care.
        (2) The total charge for the patient's stay.
        (3) The ZIP code of the patient's residence.
         (4) Beginning October 1, 2013, all diagnosed external causes of injury codes.
SOURCE: IC 16-21-9-7; (11)SE0366.1.18. -->     SECTION 18. IC 16-21-9-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 7. (a) Each nonprofit hospital shall prepare an annual report of the community benefits plan. The report must include, in addition to the community benefits plan itself, the following background information:
        (1) The hospital's mission statement.
        (2) A disclosure of the health care needs of the community that were considered in developing the hospital's community benefits plan.
        (3) A disclosure of the amount and types of community benefits actually provided, including charity care. Charity care must be reported as a separate item from other community benefits.
    (b) Each nonprofit hospital shall annually file a report of the community benefits plan with the state department. For a hospital's fiscal year that ends before July 1, 2011, the report must be filed not later than one hundred twenty (120) days after the close of the hospital's fiscal year. For a hospital's fiscal year that ends after June 30, 2011, the report must be filed at the same time the nonprofit hospital files its annual return described under Section 6033 of the Internal Revenue Code that is timely filed under Section 6072(e) of the Internal Revenue, including any applicable extension authorized under Section 6081 of the Internal Revenue Code.
    (c) Each nonprofit hospital shall prepare a statement that notifies the public that the annual report of the community benefits plan is:
        (1) public information;
        (2) filed with the state department; and
        (3) available to the public on request from the state department.
This statement shall be posted in prominent places throughout the hospital, including the emergency room waiting area and the admissions office waiting area. The statement shall also be printed in the hospital patient guide or other material that provides the patient with information about the admissions criteria of the hospital.
    (d) Each nonprofit hospital shall develop a written notice about any charity care program operated by the hospital and how to apply for charity care. The notice must be in appropriate languages if possible. The notice must also be conspicuously posted in the following areas:
        (1) The general waiting area.
        (2) The waiting area for emergency services.
        (3) The business office.
        (4) Any other area that the hospital considers an appropriate area in which to provide notice of a charity care program.
SOURCE: IC 16-25-3-2.5; (11)SE0366.1.19. -->     SECTION 19. IC 16-25-3-2.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2.5. The state department shall administer this chapter with the advice of the home health care services and hospice services health care facility advisory council established by IC 16-27-0.5-1. IC 16-19-15-1.
SOURCE: IC 16-27-0.5-9; (11)SE0366.1.20. -->     SECTION 20. IC 16-27-0.5-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 9. (a) The state department may request the council to propose a new rule or an amendment to a rule necessary to protect the health, safety, rights, and welfare of the home health care patients and hospice patients. If the council does not propose a rule within ninety (90) days after the state department's request, the state department may propose the rule.
    (b) The executive board shall consider rules proposed by the council under this section. and section 7 of this chapter. The executive board may adopt, modify, remand, or reject specific rules or parts of rules proposed by the council.
    (c) To become effective, all rules proposed by the council under this chapter must be adopted by the executive board in accordance with IC 4-22-2.
SOURCE: IC 16-28-1-7; (11)SE0366.1.21. -->     SECTION 21. IC 16-28-1-7, AS AMENDED BY P.L.145-2006, SECTION 135, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 7. The council shall do the following:
        (1) Propose the adoption of rules by the department under IC 4-22-2 governing the following:
            (A) Health and sanitation standards necessary to protect the

health, safety, security, rights, and welfare of patients.
            (B) Qualifications of applicants for licenses issued under this article to assure the proper care of patients.
            (C) Operation, maintenance, management, equipment, and construction of facilities required to be licensed under this article if jurisdiction is not vested in any other state agency.
            (D) Manner, form, and content of the license, including rules governing disclosure of ownership interests.
            (E) Levels of medical staffing and medical services in cooperation with the office of Medicaid policy and planning, division of family resources, and other agencies authorized to pay for the services.
        (2) Recommend to the fire prevention and building safety commission fire safety rules necessary to protect the health, safety, security, rights, and welfare of patients.
        (3) Classify health facilities in health care categories.
        (4) Encourage the development of social and habilitative programs in health facilities, as recommended by the community residential facilities council.
        (5) (4) Act as an advisory body for the division, commissioner, and state department.
        (6) Adopt rules under IC 4-22-2.

SOURCE: IC 16-28-1-10; (11)SE0366.1.22. -->     SECTION 22. IC 16-28-1-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 10. (a) Except as specifically provided, the executive board The state health commissioner may, upon recommendation by the commissioner and for good cause shown, waive for a specified time any rule that may be waived under the following for a health facility:
        (1) This article.
        (2) IC 16-29.
        (3) IC 16-30.
    (b) Disapproval of a waiver request requires executive board action. However, The granting of a waiver may not adversely affect the health, safety, and welfare of the patients or residents.
SOURCE: IC 16-28-1-11; (11)SE0366.1.23. -->     SECTION 23. IC 16-28-1-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 11. (a) Unless an individual is certified under this section:
        (1) the individual may not practice as a qualified medication aide or a certified nurse aide; and
        (2) a facility may not employ the individual as a qualified medication aide or a certified nurse aide.
    (b) The council state department shall do the following:
        (1) Establish a program for the certification of qualified medication aides and certified nurse aides who work in facilities licensed under this article.
        (2) Prescribe education and training programs for qualified medication aides and certified nurse aides, including course and inservice requirements. The training program must include a competency test that the individual must pass before being granted an initial certification.
        (3) Determine the standards concerning the functions that may be performed by a qualified medication aide and a certified nurse aide.
        (4) Establish annual certification fees for qualified medication aides.
        (5) Adopt rules under IC 4-22-2 necessary to implement and enforce this section.
    (c) The state department shall maintain a registry of each individual who is:
         (1) certified as a:
             (A) qualified medication aide; or
             (B) certified nurse aide; or
        (2) registered as a home health aide under rules adopted under IC 16-27-1-7.

    (d) The department may conduct hearings for violations of this section under IC 4-21.5.
SOURCE: IC 16-28-1-12; (11)SE0366.1.24. -->     SECTION 24. IC 16-28-1-12 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 12. (a) The department may request the council to propose a new rule or an amendment to a rule necessary to protect the health, safety, rights, and welfare of patients. If the council does not propose a rule not more than ninety (90) days after the department's request, the department may propose its own rule.
    (b) The executive board shall consider rules proposed by the council under this section and section 1 of this chapter. The executive board may adopt, modify, remand, or reject specific rules or parts of rules proposed by the council.
    (c) To become effective, all rules adopted under this chapter must be adopted by the executive board in accordance with IC 4-22-2. The rules adopted under this chapter are the only rules governing the licensing and operation of health facilities.
SOURCE: IC 16-28-4-3; (11)SE0366.1.25. -->     SECTION 25. IC 16-28-4-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. The council state department shall refer an allegation of breach received about licensed

personnel at a health facility to the appropriate licensing board for review and possible disciplinary action.

SOURCE: IC 16-28-6-2; (11)SE0366.1.26. -->     SECTION 26. IC 16-28-6-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2. The council state department shall adopt rules governing the emergency relocation of patients that provide for the following:
        (1) Notice to the patient, the patient's next of kin, guardian, and physician of the emergency transfer and the reasons for the relocation.
        (2) Protections designed to ensure the welfare and desires of the patient.
SOURCE: IC 16-28-8-1; (11)SE0366.1.27. -->     SECTION 27. IC 16-28-8-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1. The director may, after consultation with the commissioner, and the chairman of the council, request the attorney general to petition the circuit or superior court of the county in which a health facility is located to place the facility in receivership to protect the patients in the facility.
SOURCE: IC 16-29-2-8; (11)SE0366.1.28. -->     SECTION 28. IC 16-29-2-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 8. (a) The state department shall adopt rules under IC 4-22-2 to implement this chapter and to establish a reasonable fee for filing and review of an application under this chapter. Notwithstanding IC 16-21-1-8, IC 16-21-1-9 or IC 16-21-1-10, a rule adopted under this chapter may not be waived.
    (b) Fees imposed in connection with the certificate of need review under this article are payable to the state department for use in administration of the certificate of need program created by this chapter.
SOURCE: IC 16-29-3-3; (11)SE0366.1.29. -->     SECTION 29. IC 16-29-3-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. A decision of the council state department under this chapter is subject to review under IC 4-21.5. IC 16-28-10 applies to review hearings and appeals.
SOURCE: IC 16-29-4-3; (11)SE0366.1.30. -->     SECTION 30. IC 16-29-4-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. The Indiana health facilities health care facility advisory council may recommend, before the conversion of existing health facility beds to ICF/MR beds or the construction of a new ICF/MR facility, that the state department issue a preliminary approval of the proposed project, but only if the council determines that there is an insufficient number of available beds to care for all the persons who are determined under IC 12-11-2.1 to be appropriate for placement in an ICF/MR facility.
SOURCE: IC 16-29-4-4; (11)SE0366.1.31. -->     SECTION 31. IC 16-29-4-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 4. A proposed project

that receives preliminary approval under this chapter may not add more beds than the number determined by the Indiana health facilities health care facility advisory council to be necessary to provide an available bed for each person determined under IC 12-11-2.1 to be appropriate for placement in an ICF/MR facility. Upon completion of the proposed project and compliance with the other requirements for licensure under IC 16-28, the state department shall issue a license to the facility.

SOURCE: IC 16-35-2-3; (11)SE0366.1.32. -->     SECTION 32. IC 16-35-2-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. The state health commissioner shall appoint as a director of the program for children with special health care needs.
        (1) a physician; or
        (2) a person with a graduate degree;
who has expertise in the health care system as the system relates to the needs of a child with special health care needs and the child's family.
SOURCE: IC 16-37-1-3.1; (11)SE0366.1.33. -->     SECTION 33. IC 16-37-1-3.1, AS ADDED BY P.L.61-2009, SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE DECEMBER 31, 2010 (RETROACTIVE)]: Sec. 3.1. (a) Beginning January 1, 2011, the state department shall establish the Indiana birth registration system (IBRS) for recording in an electronic format live births in Indiana.
    (b) Beginning January 1, 2011, the state department shall establish the Indiana death registration system (IDRS) for recording in an electronic format deaths in Indiana.
    (c) Submission of records on births and deaths shall be entered by:
        (1) funeral directors;
        (2) physicians;
        (3) coroners;
        (4) medical examiners;
        (5) persons in attendance at birth; and
        (6) local health departments;
using the electronic system created by the state department under this section.
    (d) A person in attendance at a live birth shall report a birth to the local health officer in accordance with IC 16-37-2-2.
    (e) Death records shall be submitted as follows, using the Indiana death registration system:
        (1) The:
             (A) physician last in attendance upon the deceased; or
            (B)
person in charge of interment;
        shall initiate the document process. and If the person in charge of interment initiates the process, the person in charge of

interment shall electronically submit the certificate required under IC 16-37-3-5 to the physician last in attendance upon the deceased not later than five (5) days after the death.
        (2) The physician last in attendance upon the deceased shall electronically certify to the local health department the cause of death on the certificate of death not later than five (5) days after:
             (A) initiating the document process; or
            (B)
receiving under IC 16-37-3-5 the electronic notification from the person in charge of interment.
        (3) The local health officer shall submit the reports required under IC 16-37-1-5 to the state department not later than five (5) days after electronically receiving under IC 16-37-3-5 the completed certificate of death from the physician last in attendance.

SOURCE: IC 16-37-1-13; (11)SE0366.1.34. -->     SECTION 34. IC 16-37-1-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13. (a) Except as provided in subsection (c) or (d) or as otherwise provided, a person who recklessly violates or fails to comply with this chapter commits a Class B misdemeanor.
    (b) Each day a violation continues constitutes a separate offense.
     (c) A person who:
        (1) is licensed under IC 25 in a profession listed in section 3.1(c) of this chapter; and
        (2) recklessly violates or fails to comply with this chapter;
is subject only to sanctions under IC 25-1-9-4(a)(3).

     (d) The state department may not begin sanctioning a person for failing to submit a document in electronic format as required in section 3.1 of this chapter until January 1, 2012.
SOURCE: IC 16-37-3-3; (11)SE0366.1.35. -->     SECTION 35. IC 16-37-3-3, AS AMENDED BY P.L.61-2009, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. (a) The physician last in attendance upon the deceased or the person in charge of interment shall file a certificate of death or of stillbirth with the local health officer of the jurisdiction in which the death or stillbirth occurred.
    (b) Notwithstanding subsection (a), beginning January 1, 2011, the physician last in attendance upon the deceased or the person in charge of interment shall use the Indiana death registration system established under IC 16-37-1-3.1 to file a certificate of death with the local health officer of the jurisdiction in which the death occurred. The local health officer shall retain a copy of the certificate of death.
SOURCE: IC 16-37-3-4; (11)SE0366.1.36. -->     SECTION 36. IC 16-37-3-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 4. The physician last in attendance upon the deceased or the person in charge of interment

shall secure the personal data required by the state department by rules adopted under IC 4-22-2 for preparation of the certificate of death or of stillbirth from the persons best qualified to give the information.

SOURCE: IC 16-37-3-5; (11)SE0366.1.37. -->     SECTION 37. IC 16-37-3-5, AS AMENDED BY P.L.61-2009, SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 5. (a) If the person in charge of interment initiates the process, the person in charge of interment shall present a certificate of death to the physician last in attendance upon the deceased, who shall certify the cause of death upon the certificate of death or of stillbirth.
    (b) Notwithstanding subsection (a), beginning January 1, 2011, using the Indiana death registration system established under IC 16-37-1-3.1, if the person in charge of interment initiates the process, the person in charge of interment shall electronically provide a certificate of death to the physician last in attendance upon the deceased. The physician last in attendance upon the deceased shall electronically certify to the local health department the cause of death on the certificate of death, using the Indiana death registration system.
SOURCE: IC 16-41-39.8-7; (11)SE0366.1.38. -->     SECTION 38. IC 16-41-39.8-7, AS ADDED BY P.L.57-2009, SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 7. (a) The lead trust fund established by IC 13-17-14-6 (repealed) is reestablished to provide a source of money for the purposes set forth in subsection (f).
    (b) The expenses of administering the fund shall be paid from the money in the fund.
    (c) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public money may be invested. Interest that accrues from these investments shall be deposited in the fund.
    (d) Money in the fund at the end of a state fiscal year does not revert to the state general fund.
    (e) The sources of money for the fund are the following:
        (1) License fees established under section 6 of this chapter.
        (2) Appropriations made by the general assembly, gifts, and donations intended for deposit in the fund.
        (3) Penalties imposed under sections 14 and 15 of this chapter for violations of this chapter and rules adopted under this chapter concerning lead-based paint activities.
         (4) Any gifts and grants to the fund.
    (f) The state department may use money in the fund to do the following:
        (1) Pay the expenses of administering this chapter.
        (2) Cover other costs related to implementation of 40 CFR 745 for lead-based paint activities in target housing and child occupied facilities.
SOURCE: IC 25-19-1-5; (11)SE0366.1.39. -->     SECTION 39. IC 25-19-1-5, AS AMENDED BY P.L.54-2007, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 5. (a) The Indiana health facilities council, state department of health, pursuant to authority provided by IC 16-28, has, by rule duly promulgated, classified health facilities into comprehensive health facilities and residential health facilities. The fee for a health facility administrator's license in either classification shall be set by the board under section 8 of this chapter.
    (b) Such The fee and application shall be submitted to the board, and the board shall transmit all such the funds so received to the treasurer of state to be deposited by him the treasurer in the general fund of the state. All expenses incurred in the administration of this chapter shall be paid from the general fund upon appropriation being made therefor in the manner provided by law for making such appropriations.
    (c) The administrator of a comprehensive care facility must have a comprehensive care facility administrator license issued by the board in accordance with rules adopted under section 8 of this chapter.
    (d) The administrator of a residential care facility must have one (1) of the following licenses issued by the board under rules adopted under section 8 of this chapter:
        (1) A comprehensive care facility administrator license.
        (2) A residential care facility administrator license.
SOURCE: IC 31-26-4-14; (11)SE0366.1.40. -->     SECTION 40. IC 31-26-4-14, AS ADDED BY P.L.145-2006, SECTION 272, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 14. (a) The infant mortality account is established within the fund for the purpose of providing money for education and programs approved by the board under section 5(b) of this chapter to reduce infant mortality in Indiana. The account shall be administered by the treasurer of state.
    (b) Expenses of administering the account shall be paid from money in the account. The account consists of the following:
        (1) Fees from certificates of birth issued under IC 16-37-1-11.7.
        (2) (1) Appropriations to the account.
        (3) (2) Money donated to the account.
    (c) The treasurer of state shall invest the money in the account not currently needed to meet the obligations of the account in the same manner as other public money may be invested. Interest that accrues from these investments shall be deposited in the account.
    (d) Money in the account at the end of a state fiscal year does not revert to the state general fund.
SOURCE: IC 16-18-2-298; IC 16-18-2-318.1; IC 16-18-2-332; IC 16-21-1-1; IC 16-21-1-2; IC 16-21-1-3; IC 16-21-1-4; IC 16-21-1-5; IC 16-21-1-6; IC 16-21-1-8; IC 16-27-0.5-0.5; IC 16-27-0.5-1; IC 16- 27-0.5-2; IC 16-27-0.5-3; IC 16-27-0.5-4; IC 16-27-0.5-5; IC 16-27- 0.5-6; IC 16-27-0.5-7; IC 16-27-0.5-8; IC 16-28-1-1; IC 16-28-1-2; IC 16-28-1-3; IC 16-28-1-4; IC 16-28-1-5; IC 16-28-1-6; IC 16-28-1-8; IC 16-37-1-11.7.
; (11)SE0366.1.41. -->     SECTION 41. THE FOLLOWING ARE REPEALED [EFFECTIVE JULY 1, 2011]: IC 16-18-2-298; IC 16-18-2-318.1; IC 16-18-2-332; IC 16-21-1-1; IC 16-21-1-2; IC 16-21-1-3; IC 16-21-1-4; IC 16-21-1-5; IC 16-21-1-6; IC 16-21-1-8; IC 16-27-0.5-0.5; IC 16-27-0.5-1; IC 16-27-0.5-2; IC 16-27-0.5-3; IC 16-27-0.5-4; IC 16-27-0.5-5; IC 16-27-0.5-6; IC 16-27-0.5-7; IC 16-27-0.5-8; IC 16-28-1-1; IC 16-28-1-2; IC 16-28-1-3; IC 16-28-1-4; IC 16-28-1-5; IC 16-28-1-6; IC 16-28-1-8; IC 16-37-1-11.7.
SOURCE: ; (11)SE0366.1.42. -->     SECTION 42. [EFFECTIVE JULY 1, 2011] (a) During the 2011 interim, the health finance commission established by IC 2-5-23-3 shall study whether to require a hospital to report to the state department of health the immunization rate for influenza for the individuals who work in the hospital, including employees, staff, and contractors and the manner and format for the report.
    (b) This section expires December 31, 2011.

SOURCE: ; (11)SE0366.1.43. -->     SECTION 43. An emergency is declared for this act.


SEA 366 _ CC 1

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