2022 -- H 7388

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LC004547

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO HEALTH AND SAFETY - CATASTROPHIC ILLNESS IN CHILDREN

RELIEF FUND

     

     Introduced By: Representatives Amore, Henries, Craven, Caldwell, Batista, Speakman,
and Donovan

     Date Introduced: February 09, 2022

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Title 23 of the General Laws entitled "HEALTH AND SAFETY" is hereby

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amended by adding thereto the following chapter:

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CHAPTER 1.12

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CATASTROPHIC ILLNESS IN CHILDREN RELIEF FUND

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     23-1.12-1. Definitions.

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     When used in this chapter, unless the context requires otherwise:

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     (1) "Catastrophic illness" means any illness or condition the medical expenses of which are

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not covered by any other state or federal program or any insurance contract and exceed ten percent

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(10%) of the first one hundred thousand dollars ($100,000) of annual income of a family plus fifteen

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percent (15%) of the excess income over one hundred thousand dollars ($100,000).

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     (2) "Child" means a person twenty-one (21) years of age and younger.

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     (3) "Commission" means the catastrophic illness in children relief fund commission.

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     (4) "Family" means a child and the child's parent, parents or legal guardian, as the case

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may be, who is legally responsible for the child's medical expenses.

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     (5) "Fund" means the catastrophic illness in children relief fund.

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     (6) "Income" means all income, from whatever source derived, actually received by a

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family.

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     (7) "Resident" means a person legally domiciled within the state for a period of three (3)

 

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months immediately preceding the date of application for inclusion in the program. Mere seasonal

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or temporary residence within the state, of whatever duration, does not constitute domicile.

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Absence from this state for a period of twelve (12) months or more is prima facie evidence of

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abandonment of domicile. The burden of establishing legal domicile within the state is upon the

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parent or legal guardian of a child.

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     23-1.12-2. Catastrophic illness in children relief fund.

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     (a) The catastrophic illness in children relief fund is hereby established as a nonlapsing,

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revolving fund. The fund shall be administered by the commission, and shall be credited with

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monies received pursuant to § 23-1.12-10.

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     (b) The general treasurer shall be custodian of the fund and all disbursements from the fund

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shall be made by the treasurer upon vouchers signed by the chairman of the commission. The

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monies in the fund shall be invested and reinvested by the treasurer as are other trust funds in the

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custody of the general treasurer in the manner provided by law. Interest received on the monies in

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the fund shall be credited to the fund.

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     23-1.12-3. Catastrophic illness in children relief fund commission.

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     (a) There is hereby established in the executive department of the state government the

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catastrophic illness in children relief fund commission composed of nine (9) members. The

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commission shall consist of the director for children, youth and families, the director of human

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services, the director of the department of business regulation, the general treasurer, who shall be

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members ex officio, and five (5) public members who are residents of this state, appointed by the

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governor with the advice and consent of the senate for terms of five (5) years, two (2) of whom are

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appointed upon the recommendation of the president of the senate, one of whom is a provider of

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health care services to children in this state; and two (2) of whom are appointed upon the

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recommendation of the speaker of the house of representatives, one of whom is a provider of health

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care services to children in this state. The five (5) public members initially appointed by the

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governor shall serve for terms of one, two (2), three (3), four (4) and five (5) years, respectively.

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     (b) Each member shall hold office for the term of their appointment and until their

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successor has been appointed and qualified. A member of the commission is eligible for

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reappointment.

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     (c) Any vacancies in the membership of the commission occurring other than by the

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expiration of a term shall be filled in the same manner as the original appointment, but for the

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unexpired term only.

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     (d) Each ex officio member of the commission may designate an officer or employee of

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the ex officio member's department to represent the member at meetings of the commission, and

 

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each designee may lawfully vote and otherwise act on behalf of the member as the designee. Any

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designation shall be in writing delivered to the commission and filed with the office of the secretary

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of state and shall continue in effect until revoked or amended in the same manner as provided for

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designation.

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     23-1.12-4. Suspension and oaths.

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     Each member of the commission may be removed from office by the governor, for cause,

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after a public hearing and may be suspended by the governor pending the completion of the hearing.

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Each member of the commission before entering upon his or her duties shall take and subscribe to

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an oath to perform the duties of his or her office faithfully, impartially and justly to the best of the

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member's ability. A record of the oaths shall be filed in the office of the secretary of state.

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     23-1.12-5. Officers and quorum.

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     (a) The members shall elect a chairperson and chief executive officer of the commission

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who shall be one of the public members of the commission. The commission shall by rule determine

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the term of office of the chairperson and chief executive officer. The members shall elect a secretary

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and a treasurer who need not be members of the commission and the same person may be elected

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to serve both as secretary and treasurer.

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     (b) The powers of the commission are vested in the members thereof in office from time

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to time and five (5) members of the commission shall constitute a quorum at any meeting thereof.

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Action may be taken and motions and resolutions adopted by the commission at any meeting

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thereof by the affirmative vote of at least five (5) members of the commission. A vacancy in the

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membership of the commission shall not impair the right of a quorum to exercise all the powers

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and perform all the duties of the commission.

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     (c) The members of the commission shall serve without compensation, but the commission

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shall reimburse its members for the reasonable expenses incurred in the performance of their duties

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based upon the monies available in the fund.

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     (d) The commission shall be appointed within three (3) months after the effective date of

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this chapter and shall organize as soon as may be practicable after the appointment of its members.

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     23-1.12-6. Powers and duties.

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     The commission shall have, but is not limited to, the following powers and duties:

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     (1) Establish a program for the purposes of this chapter, administer the fund and authorize

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the payment or reimbursement of the medical expenses of children with catastrophic illnesses;

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     (2) Establish procedures for application to the program, determining the eligibility for the

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payment or reimbursement of medical expenses for each child, and processing fund awards and

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appeals;

 

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     (3) Establish procedures to provide that, in the case of an illness or condition for which the

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family, after receiving assistance pursuant to this chapter, recovers damages for the child's medical

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expenses pursuant to a settlement or judgment in a legal action, the family shall reimburse the fund

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for the amount of assistance received, or that portion thereof covered by the amount of the damages

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less the expense of recovery;

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     (4) Establish the amount of reimbursement for the medical expenses of each child using a

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sliding fee scale based on a family's ability to pay for medical expenses which takes into account

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family size, family income and assets and family medical expenses and adjust the financial

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eligibility criteria established in the definition of catastrophic illness pursuant to § 23-1.12-1 based

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upon the monies available in the fund;

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     (5) Disseminate information on the fund and the program to the public;

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     (6) Adopt bylaws for the regulation of its affairs and the conduct of its business, adopt an

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official seal and alter the same at pleasure, maintain an office at the place within the state as it may

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designate, and sue and be sued in its own name;

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     (7) Appoint, retain or employ staff, experts or consultants on a contract basis or otherwise,

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who are deemed necessary, and employ investigators or other professionally qualified personnel as

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may be within the limits of funds appropriated or otherwise made available to it to accomplish its

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purposes;

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     (8) Maintain confidential records on each child who applies for assistance under the fund;

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     (9) Take all actions deemed necessary to carry out the purposes of this chapter; and

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     (10) Adopt rules and regulations in accordance with chapter 35 of title 42 (the

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"administrative procedure act"), necessary to effectuate the purposes of this chapter.

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     23-1.12-7. Settlement of claims.

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     The commission is authorized to negotiate or settle a claim that the fund maintains for

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reimbursement against a family who has received assistance for the medical expenses of a child

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with a catastrophic illness pursuant to this chapter and has recovered damages in a legal action for

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the child's medical expenses. Money recovered pursuant to this section shall be deposited in the

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fund.

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     23-1.12-8. Eligibility.

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     (a) A child who is a resident of this state is eligible, through the child's parent or legal

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guardian, to apply to the program established pursuant to § 23-1.12-6.

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     (b) In the event a family has more than one child with a catastrophic illness, as defined

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pursuant to § 23-1.12-1, the commission shall waive the family responsibility, as established by

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regulation, for the other child if the family has met the family responsibility for the first child in a

 

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state fiscal year.

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     23-1.12-9. Financial assistance.

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     Whenever a child has a catastrophic illness and is eligible for the program, the child,

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through the child's parent or legal guardian, shall receive financial assistance from monies in the

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fund subject to the rules and regulations established by the commission and the availability of

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monies in the fund. The financial assistance shall include, but is not limited to, payments or

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reimbursements for the cost of medical treatment, hospital care, drugs, nursing care and physician

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services.

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     23-1.12-10. Annual surcharge per employee subject to the employer security act.

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     For the purpose of providing the monies necessary to establish and meet the purposes of

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the fund, the commission shall establish a one dollar and fifty cent ($1.50) annual surcharge per

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employee upon all employers who are subject to the employment security laws pursuant to chapters

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42, 43 and 44 of title 28. The surcharge shall be collected by the director of labor and training and

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paid over to the general treasurer for deposit in the fund annually as provided by the commission.

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     23-1.12-11. Rules and regulations.

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     The general treasurer shall adopt rules and regulations establishing procedures for the

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collection of the surcharge contained in § 23-1.12-10.

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     23-1.12-12. Annual reports.

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     (a) The commission shall report annually to the governor and to the senate and house of

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representatives committee with responsibility for issues affecting children, health and human

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services on the status of the program. The report shall include the following information:

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     (1) The number of participants in the program;

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     (2) Average expenditures per participant;

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     (3) The nature and type of catastrophic illnesses for which the fund provided financial

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assistance; and

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     (4) The average income and expenditures of families who received financial assistance

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under the program.

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     (b) The commission also may make recommendations for changes in the law and

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regulations governing the fund.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HEALTH AND SAFETY - CATASTROPHIC ILLNESS IN CHILDREN

RELIEF FUND

***

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     This act would establish the Catastrophic Illness in Children Relief Fund to provide

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financial assistance to families with children age twenty-one (21) years and younger stricken by a

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catastrophic illness for medical expenses not covered by any other state or federal program or any

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insurance contract.

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     This act would take effect upon passage.

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