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art.018/3/018/2/018/1

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ARTICLE 18 SUBSTITUTE A

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RELATING TO OFFICE OF HEALTH AND HUMAN SERVICES

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     SECTION 1. Sections 42-7.2.1, 42-7.2-2, 42-7.2-4, 42-7.2-5, 42-7.2-6, 42-7.2-6.1, 42-

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7.2-12 and 42-7.2-16 of the General Laws in Chapter 42-7.2 entitled ”Office of Health and

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Human Services” are hereby amended to read as follows:

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     42-7.2-1. Statement of intent.-- The purpose of this Chapter is to develop a consumer-

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centered system of publicly-financed state administered health and human services that supports

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access to high quality services, protects the safety of the state's most vulnerable citizens, and

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ensures the efficient use of all available resources by the five (5) four (4) departments responsible

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for the health and human services programs serving all Rhode Islanders and providing direct

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assistance and support services to more than 250,000 individuals and families: the department of

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children, youth, and families; the department of elderly affairs; the department of health; the

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department of human services; and the department of mental health, retardation behavioral

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healthcare, developmental disabilities and hospitals, collectively referred to within as

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"departments". It is recognized that the executive office of health and human services and the

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departments have undertaken a variety of initiatives to further this goal and that they share a

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commitment to continue to work in concert to preserve and promote each other's unique missions

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while striving to attain better outcomes for all the people and communities they serve. However,

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recent and expected changes in federal and state policies and funding priorities that affect the

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financing, organization, and delivery of health and human services programs pose new challenges

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and opportunities that have created an even greater need for structured and formal

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interdepartmental cooperation and collaboration. To meet this need while continuing to build on

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the achievements that have already been made, the interests of all Rhode Islanders will best be

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served by codifying in the state's general laws the purposes and responsibilities of the executive

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office of health and human services and the position of secretary of health and human services.

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     42-7.2-2. Executive office of health and human services . --There is hereby established

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within the executive branch of state government an executive office of health and human services

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to serve as the principal agency of the executive branch of state government for managing the

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departments of children, youth and families, elderly affairs, health, human services, and mental

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health, retardation behavioral healthcare, developmental disabilities and hospitals. In this

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capacity, the office shall:

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     (a) Lead the state's five four (4) health and human services departments in order to:

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     (1) Improve the economy, efficiency, coordination, and quality of health and human

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services policy and planning, budgeting and financing.

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     (2) Design strategies and implement best practices that foster service access, consumer

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safety and positive outcomes.

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     (3) Maximize and leverage funds from all available public and private sources, including

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federal financial participation, grants and awards.

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     (4) Increase public confidence by conducting independent reviews of health and human

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services issues in order to promote accountability and coordination across departments.

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     (5) Ensure that state health and human services policies and programs are responsive to

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changing consumer needs and to the network of community providers that deliver assistive

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services and supports on their behalf.

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     (b) Supervise the administrations of Administer the federal and state medical assistance

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programs by acting as in the capacity of the single state agency authorized under title XIX of the

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U.S. Social Security act, 42 U.S.C. § 1396a et seq., notwithstanding any general or public law or

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regulation to the contrary, and exercising exercise such single state agency authority for such

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other federal and state programs as may be designated by the governor. Except as provided for

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herein, nothing in this chapter shall be construed as transferring to the secretary: (1) The the

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powers, duties or functions conferred upon the departments by Rhode Island general laws for the

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administration of the foregoing federal and state programs; or (2) The administrative

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responsibility for the preparation and submission of any state plans, state plan amendments, or

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federal waiver applications, as may be approved from time to time by the secretary with respect

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to the foregoing federal and state programs management and operations of programs or services

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approved for federal financial participation under the authority of the Medicaid state agency.

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     42-7.2-4. Responsibilities of the secretary.-- (a) The secretary shall be responsible to

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the governor for supervising the executive office of health and human services and for managing

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and providing strategic leadership and direction to the five four (4) departments.

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     (b) Notwithstanding the provisions set forth in this chapter, the governor shall appoint the

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directors of the departments within the executive office of health and human services. Directors

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appointed to those departments shall continue to be subject to the advice and consent of the senate

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and shall continue to hold office as set forth in §§ 42-6-1 et seq. and 42-72-1(c).

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     42-7.2-5. Duties of the secretary.--The secretary shall be subject to the direction and

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supervision of the governor for the oversight, coordination and cohesive direction of state

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administered health and human services and in ensuring the laws are faithfully executed, not

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withstanding any law to the contrary. In this capacity, the Secretary of Health and Human

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Services shall be authorized to:

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     (1) Coordinate the administration and financing of health care benefits, human services

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and programs including those authorized by the Global Consumer Choice Compact Waiver and,

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as applicable, the Medicaid State Plan under Title XIX of the US Social Security Act. However,

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nothing in this section shall be construed as transferring to the secretary the powers, duties or

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functions conferred upon the departments by Rhode Island public and general laws for the

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administration of federal/state programs financed in whole or in part with Medicaid funds or the

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administrative responsibility for the preparation and submission of any state plans, state plan

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amendments, or authorized federal waiver applications, once approved by the secretary.

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     (2) Serve as the governor's chief advisor and liaison to federal policymakers on Medicaid

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reform issues as well as the principal point of contact in the state on any such related matters.

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     (3) Review and ensure the coordination of any Global Consumer Choice Compact

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Waiver requests and renewals as well as any initiatives and proposals requiring amendments to

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the Medicaid state plan or category one (I) or two (II) or three (III) changes, as described in the

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special terms and conditions of the Global Consumer Choice Compact Waiver with the potential

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to affect the scope, amount or duration of publicly-funded health care services, provider payments

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or reimbursements, or access to or the availability of benefits and services as provided by Rhode

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Island general and public laws. The secretary shall consider whether any such changes are legally

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and fiscally sound and consistent with the state's policy and budget priorities. The secretary shall

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also assess whether a proposed change is capable of obtaining the necessary approvals from

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federal officials and achieving the expected positive consumer outcomes. Department directors

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shall, within the timelines specified, provide any information and resources the secretary deems

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necessary in order to perform the reviews authorized in this section;

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     (4) Beginning in 2006, prepare and submit to the governor, the chairpersons of the house

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and senate finance committees, the caseload estimating conference, and to the joint legislative

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committee for health care oversight, by no later than March 15 of each year, a comprehensive

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overview of all Medicaid expenditures outcomes, and utilization rates. The overview shall

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include, but not be limited to, the following information:

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     (i) Expenditures under Titles XIX and XXI of the Social Security Act, as amended;

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     (ii) Expenditures, outcomes and utilization rates by population and sub-population served

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(e.g. families with children, children with disabilities, children in foster care, children receiving

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adoption assistance, adults with disabilities, and the elderly);

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     (iii) Expenditures, outcomes and utilization rates by each state department or other

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municipal or public entity receiving federal reimbursement under Titles XIX and XXI of the

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Social Security Act, as amended; and

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     (iv) Expenditures, outcomes and utilization rates by type of service and/or service

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provider. The directors of the departments, as well as local governments and school departments,

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shall assist and cooperate with the secretary in fulfilling this responsibility by providing whatever

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resources, information and support shall be necessary.

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     (5) Resolve administrative, jurisdictional, operational, program, or policy conflicts

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among departments and their executive staffs and make necessary recommendations to the

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governor.

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     (6) Assure continued progress toward improving the quality, the economy, the

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accountability and the efficiency of state-administered health and human services. In this

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capacity, the secretary shall:

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     (i) Direct implementation of reforms in the human resources practices of the departments

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that streamline and upgrade services, achieve greater economies of scale and establish the

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coordinated system of the staff education, cross- training, and career development services

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necessary to recruit and retain a highly-skilled, responsive, and engaged health and human

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services workforce;

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     (ii) Encourage the departments to utilize consumer-centered approaches to service design

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and delivery that expand their capacity to respond efficiently and responsibly to the diverse and

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changing needs of the people and communities they serve;

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     (iii) Develop all opportunities to maximize resources by leveraging the state's purchasing

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power, centralizing fiscal service functions related to budget, finance, and procurement,

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centralizing communication, policy analysis and planning, and information systems and data

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management, pursuing alternative funding sources through grants, awards and partnerships and

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securing all available federal financial participation for programs and services provided through

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the departments;

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     (iv) Improve the coordination and efficiency of health and human services legal functions

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by centralizing adjudicative and legal services and overseeing their timely and judicious

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administration;

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     (v) Facilitate the rebalancing of the long term system by creating an assessment and

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coordination organization or unit for the expressed purpose of developing and implementing

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procedures across departments that ensure that the appropriate publicly-funded health services are

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provided at the right time and in the most appropriate and least restrictive setting; and

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     (vi) Strengthen health and human services program integrity, quality control and

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collections, and recovery activities by consolidating functions within the office in a single unit

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that ensures all affected parties pay their fair share of the cost of services and are aware of

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alternative financing.

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     (vii) Broaden access to publicly funded food and nutrition services by consolidating

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agency programs and initiatives to eliminate duplication and overlap and improve the availability

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and quality of services; and

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     (viii) Assure protective services are available to vulnerable elders and adults with

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developmental and other disabilities by reorganizing existing services, establishing new services

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where gaps exist and centralizing administrative responsibility for oversight of all related

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initiatives and programs.

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     (7) Prepare and integrate comprehensive budgets for the health and human services

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departments and any other functions and duties assigned to the office. The budgets shall be

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submitted to the state budget office by the secretary, for consideration by the governor, on behalf

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of the state's health and human services in accordance with the provisions set forth in § 35-3-4 of

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the Rhode Island general laws.

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     (8) Utilize objective data to evaluate health and human services policy goals, resource use

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and outcome evaluation and to perform short and long-term policy planning and development.

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     (9) Establishment of an integrated approach to interdepartmental information and data

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management that complements and furthers the goals of the CHOICES initiative and that will

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facilitate the transition to consumer-centered system of state administered health and human

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services.

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     (10) At the direction of the governor or the general assembly, conduct independent

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reviews of state-administered health and human services programs, policies and related agency

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actions and activities and assist the department directors in identifying strategies to address any

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issues or areas of concern that may emerge thereof. The department directors shall provide any

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information and assistance deemed necessary by the secretary when undertaking such

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independent reviews.

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     (11) Provide regular and timely reports to the governor and make recommendations with

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respect to the state's health and human services agenda.

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     (12) Employ such personnel and contract for such consulting services as may be required

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to perform the powers and duties lawfully conferred upon the secretary.

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     (13) Implement the provisions of any general or public law or regulation related to the

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disclosure, confidentiality and privacy of any information or records, in the possession or under

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the control of the executive office or the departments assigned to the executive office, that may be

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developed or acquired for purposes directly connected with the secretary's duties set forth herein.

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     (14) Hold the director of each health and human services department accountable for

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their administrative, fiscal and program actions in the conduct of the respective powers and duties

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of their agencies.

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     42-7.2-6. Departments assigned to the executive office - Powers and duties. --(a) The

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departments assigned to the secretary shall:

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     (1) Exercise their respective powers and duties in accordance with their statutory

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authority and the general policy established by the governor or by the secretary acting on behalf

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of the governor or in accordance with the powers and authorities conferred upon the secretary by

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this chapter;

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     (2) Provide such assistance or resources as may be requested or required by the governor

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and/or the secretary; and

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     (3) Provide such records and information as may be requested or required by the

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governor and/or the secretary to the extent allowed under the provisions of any applicable general

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or public law, regulation, or agreement relating to the confidentiality, privacy or disclosure of

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such records or information.

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     (4) Forward to the secretary copies of all reports to the governor.

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     (b) Except as provided herein, no provision of this chapter or application thereof shall be

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construed to limit or otherwise restrict the department of children, youth and families, the

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department of elderly affairs, the department of health, the department of human services, and the

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department of mental health, retardation behavioral healthcare, developmental disabilities and

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hospitals from fulfilling any statutory requirement or complying with any valid rule or regulation.

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     42-7.2-6.1. Transfer of powers and functions.-- (a) There are hereby transferred to the

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executive office of health and human services the powers and functions of the departments with

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respect to the following:

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     (1) By July 1, 2007, fiscal services including budget preparation and review, financial

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management, purchasing and accounting and any related functions and duties deemed necessary

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by the secretary;

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     (2) By July 1, 2007, legal services including applying and interpreting the law, oversight

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to the rule-making process, and administrative adjudication duties and any related functions and

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duties deemed necessary by the secretary;

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     (3) By September 1, 2007, communications including those functions and services related

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to government relations, public education and outreach and media relations and any related

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functions and duties deemed necessary by the secretary;

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     (4) By March 1, 2008, policy analysis and planning including those functions and

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services related to the policy development, planning and evaluation and any related functions and

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duties deemed necessary by the secretary;

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     (5) By June 30, 2008, information systems and data management including the financing,

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development and maintenance of all data-bases and information systems and platforms as well as

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any related operations deemed necessary by the secretary;

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     (6) By October 1, 2009, assessment and coordination for long-term care including those

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functions related to determining level of care or need for services, development of individual

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service/care plans and planning, identification of service options, the pricing of service options

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and choice counseling; and

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     (7) By October 1, 2009, program integrity, quality control and collection and recovery

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functions including any that detect fraud and abuse or assure that beneficiaries, providers, and

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third-parties pay their fair share of the cost of services, as well as any that promote alternatives to

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publicly financed services, such as the long-term care health insurance partnership.

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     (8) By January 1, 2011, client protective services including any such services provided to

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children, elders and adults with developmental and other disabilities;

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     (9) [Deleted by P.L. 2010, ch. 23, art. 7, § 1].

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     (10) By July 1, 2012, the HIV/AIDS care and treatment programs.

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     (b) The secretary shall determine in collaboration with the department directors whether

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the officers, employees, agencies, advisory councils, committees, commissions, and task forces of

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the departments who were performing such functions shall be transferred to the office.

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     (c) In the transference of such functions, the secretary shall be responsible for ensuring:

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     (1) Minimal disruption of services to consumers;

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     (2) Elimination of duplication of functions and operations;

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     (3) Services are coordinated and functions are consolidated where appropriate;

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     (4) Clear lines of authority are delineated and followed;

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     (5) Cost-savings are achieved whenever feasible;

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     (6) Program application and eligibility determination processes are coordinated and,

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where feasible, integrated; and

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     (7) State and federal funds available to the office and the entities therein are allocated and

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utilized for service delivery to the fullest extent possible.

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     (d) Except as provided herein, no provision of this chapter or application thereof shall be

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construed to limit or otherwise restrict the departments of children, youth and families, human

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services, elderly affairs, health, and mental health, retardation behavioral healthcare,

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developmental disabilities, and hospitals from fulfilling any statutory requirement or complying

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with any regulation deemed otherwise valid.

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     (e) The secretary shall prepare and submit to the leadership of the house and senate

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finance committees, by no later than January 1, 2010, a plan for restructuring functional

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responsibilities across the departments to establish a consumer centered integrated system of

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health and human services that provides high quality and cost-effective services at the right time

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and in the right setting across the life-cycle.

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     42-7.2-12. Medicaid program study.-- (a) The secretary of the executive office of health

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and human services shall conduct a study of the Medicaid programs administered by the state to

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review and analyze the options available for reducing or stabilizing the level of uninsured Rhode

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Islanders and containing Medicaid spending.

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     (1) As part of this process, the study shall consider the flexibility afforded the state under

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the federal Deficit Reduction Act of 2006 and any other changes in federal Medicaid policy or

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program requirements occurring on or before December 31, 2006, as well as the various

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approaches proposed and/or adopted by other states through federal waivers, state plan

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amendments, public-private partnerships, and other initiatives.

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     (2) In exploring these options, the study shall examine fully the overall administrative

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efficiency of each program for children and families, elders and adults with disabilities and any

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such factors that may affect access and/or cost including, but not limited to, coverage groups,

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benefits, delivery systems, and applicable cost-sharing requirements.

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     (b) The secretary shall ensure that the study focuses broadly on the Medicaid programs

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administered by the executive office of health and human services and all five (5) of the state's

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five (5) four (4) health and human services departments, irrespective of the source or manner in

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which funds are budgeted or allocated. The directors of the departments shall cooperate with the

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secretary in preparing this study and provide any information and/or resources the secretary

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deems necessary to assess fully the short and long-term implications of the options under review

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both for the state and the people and the communities the departments serve. The secretary shall

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submit a report and recommendations based on the findings of the study to the general assembly

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and the governor no later than March 1, 2007.

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     42-7.2-16. Medicaid System Reform 2008. -- (a) The executive office of health and

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human services, in conjunction with the department of human services, the department of elderly

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affairs, the department of children youth and families, the department of health and the

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department of mental health, retardation behavioral healthcare, developmental disabilities, and

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hospitals, is authorized to design options that reform the Medicaid program so that it is a person-

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centered, financially sustainable, cost-effective, and opportunity driven program that: utilizes

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competitive and value based purchasing to maximize the available service options, promote

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accountability and transparency, and encourage and reward healthy outcomes, independence, and

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responsible choices; promotes efficiencies and the coordination of services across all health and

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human services agencies; and ensures the state will have a fiscally sound source of publicly-

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financed health care for Rhode Islanders in need.

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     (b) Principles and Goals. In developing and implementing this system of reform, the

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executive office of health and human services and the five (5) four (4) health and human services

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departments shall pursue the following principles and goals:

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     (1) Empower consumers to make reasoned and cost-effective choices about their health

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by providing them with the information and array of service options they need and offering

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rewards for healthy decisions;

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     (2) Encourage personal responsibility by assuring the information available to

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beneficiaries is easy to understand and accurate, provide that a fiscal intermediary is provided

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when necessary, and adequate access to needed services;

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     (3) When appropriate, promote community-based care solutions by transitioning

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beneficiaries from institutional settings back into the community and by providing the needed

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assistance and supports to beneficiaries requiring long-term care or residential services who wish

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to remain, or are better served in the community;

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     (4) Enable consumers to receive individualized health care that is outcome-oriented,

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focused on prevention, disease management, recovery and maintaining independence;

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     (5) Promote competition between health care providers to ensure best value purchasing,

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to leverage resources and to create opportunities for improving service quality and performance;

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     (6) Redesign purchasing and payment methods to assure fiscal accountability and

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encourage and to reward service quality and cost-effectiveness by tying reimbursements to

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evidence-based performance measures and standards, including those related to patient

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satisfaction; and

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     (7) Continually improve technology to take advantage of recent innovations and advances

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that help decision makers, consumers and providers to make informed and cost-effective

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decisions regarding health care.

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     (c) The executive office of health and human services shall annually submit a report to

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the governor and the general assembly commencing on a date no later than July 1, 2009

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describing the status of the administration and implementation of the Global Waiver Compact.

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     SECTION 2. Chapter 42-7.2 of the General Laws entitled ”Office of Health and Human

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Service” is hereby amended by adding thereto the following section:

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     42-7.2-17. Statutory reference to the office of health and human services.--

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Notwithstanding other statutory references to the department of human services, wherever in the

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general or public laws, or any rule or regulation, any reference shall appear to the "department of

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human services" or to "department" as it relates to any responsibilities for and/or to Medicaid,

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unless the context otherwise requires, it shall be deemed to mean "the office of health and human

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services."

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     SECTION 3. Section 42-18-5 of the General Laws in Chapter 42-18 entitled "Department

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of Health" is hereby amended to read as follows:

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     42-18-5. Transfer of powers and functions from department of health. -- (a) There

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are hereby transferred to the department of administration:

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      (1) Those functions of the department of health which were administered through or with

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respect to departmental programs in the performance of strategic planning as defined in section

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42-11-10(c);

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      (2) All officers, employees, agencies, advisory councils, committees, commissions, and

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task forces of the department of health who were performing strategic planning functions as

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defined in section 42-11-10(c); and

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      (3) So much of other functions or parts of functions and employees and resources,

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physical and funded, related thereto of the director of health as are incidental to and necessary for

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the performance of the functions transferred by subdivisions (1) and (2).

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      (b) There is hereby transferred to the department of human services the administration

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and management of the special supplemental nutrition program for women, infants, and children

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(WIC) and all functions and resources associated therewith.

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      (c) There is hereby transferred to the department of human services executive office of

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health and human services the HIV/AIDS direct services programs care and treatment programs

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and all functions and resources associated therewith. The department of health shall retain the

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HIV surveillance and prevention programs and all functions and resources associated therewith.

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     SECTION 4. Section 35-17-1 of the General Laws in Chapter 35-17 entitled "Medical

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Assistance and Public Assistance Caseload Estimating Conferences" is hereby amended to read

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as follows:

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     35-17-1. Purpose and membership. -- (a) In order to provide for a more stable and

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accurate method of financial planning and budgeting, it is hereby declared the intention of the

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legislature that there be a procedure for the determination of official estimates of anticipated

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medical assistance expenditures and public assistance caseloads, upon which the executive budget

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shall be based and for which appropriations by the general assembly shall be made.

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      (b) The state budget officer, the house fiscal advisor, and the senate fiscal advisor shall

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meet in regularly scheduled caseload estimating conferences (C.E.C.). These conferences shall be

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open public meetings.

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      (c) The chairpersonship of each regularly scheduled C.E.C. will rotate among the state

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budget officer, the house fiscal advisor, and the senate fiscal advisor, hereinafter referred to as

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principals. The schedule shall be arranged so that no chairperson shall preside over two (2)

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successive regularly scheduled conferences on the same subject.

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      (d) Representatives of all state agencies are to participate in all conferences for which

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their input is germane.

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      (e) The department of human services shall provide monthly data to the members of the

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caseload estimating conference by the fifteenth day of the following month. Monthly data shall

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include, but is not limited to, actual caseloads and expenditures for the following case assistance

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programs: temporary assistance to needy families, SSI federal program Rhode Island Works, and

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SSI state program, general public assistance, and child care, state food stamp program, and

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weatherization. The executive office of health and human services report shall include report

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relevant caseload information and expenditures for the following medical assistance categories:

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hospitals, long-term care, nursing homes, managed care, pharmacy, special education, and all

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other medical services. In the category of managed care, caseload information and expenditures

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for the following populations shall be separately identified and reported: children with

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disabilities, children in foster care, and children receiving adoption assistance. The information

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shall include the number of Medicaid recipients whose estate may be subject to a recovery, the

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anticipated recoveries from the estate and the total recoveries collected each month.

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     SECTION 5. Chapter 40-6 of the General Laws entitled "Public Assistance Act" is

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hereby amended by adding thereto the following section:

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     40-6-27.2. Supplementary cash assistance payment for certain supplemental security

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income recipients. -- There is hereby established a two hundred six dollars ($206) monthly

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payment for disabled and elderly individuals who, on or after July 1, 2012, receive the state

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supplementary assistance payment for an individual in state licensed assisted living residence

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under section 40-6-27 and further reside in an assisted living facility that is not eligible to receive

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funding under Title XIX of the Social Security Act, 42 U.S.C. section 1381 et seq.

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     SECTION 6. This article shall take effect on July 1, 2012.

Article-018-SUB-A