SL 2012-2: Senate Bill 797 Summary

• Authorize extraordinary budget adjustments totaling up to $205.5 million to ensure adequate Medicaid funding for fiscal year 2011-2012, with transfers executed in priority order from DHHS internal funds, federal CHIP bonus funds, repairs and renovations reserves, agency reversions, and revenue overcollections.

• Prohibit state officials from drawing down or transferring unearned or borrowed Medicaid disproportionate share receipts or other funds if such action would create or increase financial obligations in fiscal year 2012-2013 or subsequent years.

• Require prior approval by the General Assembly through legislative act before issuing requests for proposals or entering new contracts for operational oversight or management of health care services for prison inmates during fiscal biennium 2011-2013, with exception for Department of Public Safety clinic staffing contracts.

• Direct the Office of State Budget and Management and Department of Health and Human Services to report by October 1, 2012 on measures taken under this act to specified legislative committees.

• Limit all authorized fund transfers to amounts actually required to pay Medicaid providers through the end of fiscal year 2011-2012, with immediate lapse of authority for unneeded portions and return of excess funds to source accounts.