STATE MEDICAID MATCHING PAYMENTS THROUGH VOLUNTARY CONTRIBUTIONS AND STATE TAXES.

SEC. 4701. STATE MEDICAID MATCHING PAYMENTS THROUGH VOLUNTARY CONTRIBUTIONS AND STATE TAXES. (a) Extension of Provision on Voluntary Contributions and Provider-Specific Taxes.— Section 8431 of the Technical and Miscellaneous Revenue Act of 1988 is amended by striking “December 31, 1990” and inserting “December 31, 1991”. (b) State Tax Contributions.— (1) Section 1902 (42 U.S.C. 1396a) as amended by section 4604, is further amended by adding at the end the following new subsection: “(t) Except as provided in section 1903(i), nothing in this title (including sections 1903(a) and 1905(a)) shall be construed as authorizing the Secretary to deny or limit payments to a State for expenditures, for medical assistance for items or services, attributable to taxes (whether or not of general applicability) imposed with respect to the provision of such items or services.”. (2) Section 1903(i) (42 U.S.C. 1396b(i)) is amended— (A) by striking the period at the end of paragraph (9) and inserting “; or”; and (B) by adding at the end the following new paragraph: (10) with respect to any amount expended for medical assistance for care or services furnished by a hospital, nursing facil-104 STAT. 1388–171ity, or intermediate care facility for the mentally retarded to reimburse the hospital or facility for the costs attributable to taxes imposed by the State soley4444So in original. Probably should be “solely”. with respect to hospitals or facilities.”. (c) Effective Dates.—The amendment made by subsection (b) shall take effect on January 1, 1991.