(1) There is created an expendable special revenue fund known as the "Nursing Care Facilities Provider Assessment Fund" consisting of:
(a) assessments collected by the department under Chapter 3, Part 4, Nursing Care Facility Assessment;
(b) fines paid by nursing care facilities for excessive Medicare inpatient revenue under Section 26B-2-222;
(c) money appropriated or otherwise made available by the Legislature;
(d) any interest earned on the fund; and
(e) penalties levied with the administration of Chapter 3, Part 4, Nursing Care Facility Assessment.
(2) Money in the fund shall only be used by the Medicaid program:
(a) to the extent authorized by federal law, to obtain federal financial participation in the Medicaid program;
(b) to provide the increased level of hospice reimbursement resulting from the nursing care facilities assessment imposed under Section 26B-3-403;
(c) for the Medicaid program to make quality incentive payments to nursing care facilities, subject to CMS approval of a Medicaid state plan amendment;
(d) to increase the rates paid before July 1, 2004, to nursing care facilities for providing services pursuant to the Medicaid program; and
(e) for administrative expenses, if the administrative expenses for the fiscal year do not exceed 3% of the money deposited into the fund during the fiscal year.
(3) The department may not spend the money in the fund to replace existing state expenditures paid to nursing care facilities for providing services under the Medicaid program, except for increased costs due to hospice reimbursement under Subsection (2)(b).