ARTICLE 10 SUBSTITUTE A AS AMENDED

RELATING TO RESTRICTED RECEIPT ACCOUNTS

SECTION 1. Section 42-14-9 of the General Laws in Chapter 42-14 entitled "Department of Business Regulation" is hereby amended to read as follows:

42-14-9. Payment of expenses -- Fees. – (a) The general assembly shall annually appropriate such sum as it may deem necessary for the payment of the salary of the administrator of banking and insurance, for the payment of the salaries of his or her deputies and for the payment of the clerical and other assistance, office and traveling expenses of the administrator of banking and insurance, his or her deputies and assistants, and the state controller is hereby authorized and directed to draw his or her orders for the payment of those sums, or so much of them as may from time to time be required, upon receipt by him or her of proper vouchers, approved by the director of business regulation. All fees, charges for examinations and other collections received by him or her as administrator of banking, insurance, and securities shall be paid to the general treasurer for the use of the state.

(b) Reimbursements. – (1) Certain operational costs of the department of business regulation are eligible for reimbursement from third parties, including, but not limited to, costs of licensing, and shall also include the following expenses:

(i) All reasonable technology costs related to the examination and licensing process. Technology costs shall include the actual cost of software and hardware utilized in the licensing process and the cost of training personnel in the proper use of the software or hardware.

(ii) All necessary and reasonable education and training costs incurred by the state to maintain the proficiency and competence of the examining and licensing personnel. All these costs shall be incurred in accordance with appropriate state of Rhode Island regulations, guidelines and procedures.

(iii) All revenues collected pursuant to this section shall be deposited as restricted receipts.

(2) There is created within the general fund a restricted receipt account to be known as the "banking division reimbursement account". All funds in the account shall be utilized by the department of business regulation to effectuate the provisions of section 42-14-9(b). All funds received for the securities division pursuant to section 42-14-9(b) shall be deposited in the securities division reimbursement account. The general treasurer is authorized and directed to draw his or her orders on the account upon receipt of properly authenticated vouchers from the department of business regulation.

(3) There is created within the general fund a restricted receipt account to be known as the "banking division reimbursement account". All funds in the account shall be utilized by the department of business regulation to effectuate the provisions of section 42-14-9(b) that relate to reimbursements. All funds received for the banking division pursuant to section 42-14-9(b) shall be deposited in the banking division reimbursement account. The general treasurer is authorized and directed to draw his or her orders on the account upon receipt of properly authenticated vouchers from the department of business regulation.

(4) There is created within the general fund a restricted receipt account to be known as the "securities division reimbursement account". All funds in the account shall be utilized by the department of business regulation to effectuate the provisions of section 42-14-9(b) that relate to reimbursements. All funds received for the securities division pursuant to section 42-14-9(b) shall be deposited in the securities division reimbursement account. The general treasurer is authorized and directed to draw his or her orders on the account upon receipt of properly authenticated vouchers from the department of business regulation.

(5) There is created within the general fund a restricted receipt account to be known as the "commercial licensing and racing and athletics division reimbursement account". All funds in the account shall be utilized by the department of business regulation to effectuate the provisions of section 42-14-9(b) that relate to reimbursements. All funds received for the commercial licensing and racing and athletics division pursuant to section 42-14-9(b) shall be deposited in the commercial licensing and racing and athletics division reimbursement account. The general treasurer is authorized and directed to draw his or her orders on the account upon receipt of properly authenticated vouchers from the department of business regulation.

(6) There is created within the general fund a restricted receipt account to be known as the "insurance division reimbursement account". All funds in the account shall be utilized by the department of business regulation to effectuate the provisions of section 42-14-9(b) that relate to reimbursements. All funds received for the insurance division pursuant to section 42-14-9(b) shall be deposited in the insurance division reimbursement account. The general treasurer is authorized and directed to draw his or her orders on the account upon receipt of properly authenticated vouchers from the department of business regulation.

SECTION 2. Sections 42-14.5-3 and 42-14.5-3 of the General Laws in Chapter 42-14.5 entitled "The Rhode Island Health Care Reform Act of 2004 - Health Insurance Oversight" are hereby amended to read as follows:

42-14.5-3. Powers and duties. [Effective until July 1, 2007.] [Contingent effective date; see notes under section 42-14.5-1.] -- The health insurance commissioner shall have the following powers and duties:

(a) To conduct an annual public meeting or meetings, separate and distinct from rate hearings pursuant to section 42-62-13, regarding the rates, services and operations of insurers licensed to provide health insurance in the state the effects of such rates, services and operations on consumers, medical care providers and patients, and the market environment in which such insurers operate. Notice of not less than ten (10) days of said hearing(s) shall go to the general assembly, the governor, the Rhode Island medical society, the Hospital Association of Rhode Island, the director of health, and the attorney general. Public notice shall be posted on the department's web site and given in the newspaper of general circulation, and to any entity in writing requesting notice.

(b) To make recommendations to the governor and the joint legislative committee on health care oversight regarding health care insurance and the regulations, rates, services, administrative expenses, reserve requirements, and operations of insurers providing health insurance in the state, and to prepare or comment on, upon the request of the co-chairs of the joint committee on health care oversight or upon the request of the governor, draft legislation to improve the regulation of health insurance. In making such recommendations, the commissioner shall recognize that it is the intent of the legislature that the maximum disclosure be provided regarding the reasonableness of individual administrative expenditures as well as total administrative costs. The commissioner shall also make recommendations on the levels of reserves including consideration of: targeted reserve levels; trends in the increase or decrease of reserve levels; and insurer plans for distributing excess reserves.

(c) To establish a consumer/business/labor/medical advisory council to obtain information and present concerns of consumers, business and medical providers affected by health insurance decisions. The council shall be involved in the planning and conduct of the public meeting in accordance with subsection (a) above. The advisory council shall assist in the design of an insurance complaint process to ensure that small businesses whom experience extraordinary rate increases in a given year could request and receive a formal review by the department. The advisory council shall assess views of the health provider community relative to insurance rates of reimbursement, billing and reimbursement procedures, and the insurers' role in promoting efficient and high quality health care. The advisory council shall issue an annual report of findings and recommendations to the governor and the joint legislative committee on health care oversight. The advisory council is to be diverse in interests and shall include representatives of community consumer organizations; small businesses, other than those involved in the sale of insurance products; and hospital, medical, and other health provider organizations. Such representatives shall be nominated by their respective organizations. The advisory council shall be co-chaired by the health insurance commissioner and a community consumer organization or small business member to be elected by the full advisory council.

(d) To establish and provide guidance and assistance to a subcommittee ("The Professional Provider-Health Plan Work Group") of the advisory council created pursuant to subsection (c) above, composed of health care providers and Rhode Island licensed health plans. This subcommittee shall develop a plan to implement the following activities:

(i) By January 1, 2006, a method whereby health plans shall disclose to contracted providers the fee schedules used to provide payment to those providers for services rendered to covered patients;

(ii) By April 1, 2006, a standardized provider application and credentials verification process, for the purpose of verifying professional qualifications of participating health care providers;

(iii) By September 1, 2006, a uniform health plan claim form to be utilized by participating providers;

(iv) By March 15, 2007, a report to the legislature on proposed methods for health maintenance organizations as defined by section 27-41-1, and nonprofit hospital or medical service corporations as defined by chapters 27-19 and 27-20, to make facility-specific data and other medical service-specific data available in reasonably consistent formats to patients regarding quality and costs. This information would help consumers make informed choices regarding the facilities and/or clinicians or physician practices at which to seek care. Among the items considered would be the unique health services and other public goods provided by facilities and/or clinicians or physician practices in establishing the most appropriate cost comparisons.

(v) By December 1, 2006, contractual disclosure to participating providers of the mechanisms for resolving health plan/provider disputes; and

(vi) By February 1, 2007, a uniform process for confirming in real time patient insurance enrollment status, benefits coverage, including co-pays and deductibles.

A report on the work of the subcommittee shall be submitted by the health insurance commissioner to the joint legislative committee on health care oversight on March 1, 2006 and March 1, 2007.

(e) To enforce the provisions of Title 27 and Title 42 as set forth in section 42-14-5(d).

(f) There is hereby established the Rhode Island Affordable Health Plan Reinsurance Fund. The fund shall be used to effectuate the provisions of sections 27-18.5-8 and 27-50-17.

SECTION 3. Sections 23-1-45 and 23-1-46 of the General Laws in Chapter 23-1 entitled "Department of Health" are hereby amended to read as follows:

23-1-45. Immunization account. – (a) There is created within the general fund a restricted receipt account to be known as the "childhood immunization account". All money in the account shall be utilized by the department of health to effectuate the provisions of section 23-1-44 that relate to the childhood immunization program. All money received pursuant to sections 23-1-46 and 23-1-47 for the childhood immunization program shall be deposited in the childhood immunization account. There shall be an expenditure in FY 2007 not to exceed one million dollars ($1,000,000) for pandemic influenza medications and equipment as directed by the director of health. Funding dedicated exclusively to effectuate the provisions of section 23-1-44 and this subsection received by the department of health from sources other than those identified in sections 23-1-46 and 23-1-47 may also be deposited in the childhood immunization account. The general treasurer is authorized and directed to draw his or her orders on the account upon receipt of properly authenticated vouchers from the department of health.

(b) There is created within the general fund a restricted receipt account to be known as the "pandemic medications and equipment account" for the purposes of funding pandemic medications and equipment. There shall be an expenditure in FY 2007 not to exceed one million dollars ($1,000,000) for pandemic influenza medications and equipment. Funding dedicated exclusively to effectuate the provisions of this subsection and received by the department of health from sources other than those identified in sections 23-1-45, 23-1-46 and 23-1-47 may also be deposited in the pandemic medications and equipment account. The general treasurer is authorized and directed to draw his or her orders on the account upon receipt of properly authenticated vouchers from the department of health.

(c) There is created within the general fund a restricted receipt account to be known as the "adult immunization account". All funds in the account shall be utilized by the department of health to effectuate the provisions of section 23-1-44 that relate to the adult immunization program. All funds received for adult immunization programs pursuant to sections 23-1-46 and 23-1-47 shall be deposited in the adult immunization account. Funding dedicated exclusively to effectuate the provisions of this subsection and received by the department of health from sources other than those identified in sections 23-1-46 and 23-1-47 may also be deposited in the adult immunization account. The general treasurer is authorized and directed to draw his or her orders on the account upon receipt of properly authenticated vouchers from the department of health.

23-1-46. Insurers. -- (a) Beginning in the fiscal year 2007, each insurer licensed or regulated pursuant to the provisions of chapters 18, 19, 20, and 41 of title 27 shall be assessed a child immunization assessment and an adult immunization assessment for the purposes set forth in this section. The department of health shall make available to each insurer, upon its request, information regarding the department of health's immunization programs and the costs related to the program. Further, the department of health shall submit to the general assembly an annual report on the immunization programs and cost related to the programs, on or before February 1 of each year. Annual assessments shall be based on direct premiums written in the year prior to the assessment and for the child immunization program shall not include any Medicare Supplement Policy (as defined in section 27-18-2.1(g)), Medicaid or Medicare premiums. Adult influenza immunization program annual assessments shall include contributions related to the program costs from Medicare, Medicaid and Medicare Managed Care. As to accident and sickness insurance, the direct premium written shall include, but is not limited to, group, blanket, and individual policies. Those insurers assessed greater than ten thousand dollars ($10,000) for the year shall be assessed four (4) quarterly payments of twenty-five percent (25%) of their total assessment. Beginning July 1, 2001, the annual rate of assessment shall be determined by the Director of Health in concurrence with the Primary Payors, those being insurers assessed at greater than ten thousand dollars ($10,000) for the previous year. This rate shall be calculated by the projected costs for advisory committee on immunization practices (ACIP) recommended and state mandated vaccines after the federal share has been determined by the centers for disease control and prevention. The primary payors shall be informed of any recommended change in rates at least six (6) months in advance, and rates shall be adjusted no more frequently than one time annually. For the childhood vaccine program the The director of the department of health shall deposit these amounts in the "childhood immunization account". These assessments shall be used solely for the purposes of the "childhood immunization programs" and no other. For the adult immunization program the The director of the department of health shall deposit these amounts in the "adult immunization account".

(b) Any funds collected in excess of funds needed to carry-out ACIP recommendations shall be deducted from the subsequent year's assessments.

SECTION 4. Chapter 42-28 of the General Laws entitled "State Police" is hereby amended by adding thereto the following section:

42-28-49. Acceptance of gifts and bequests. – The general treasurer is authorized and empowered, with the approval of the director of administration, to accept on behalf of the state police any gift or bequest of personal property, funds, securities, or other similar gift or bequest, given to the state police absolutely by any person or organization; provided, that no acceptance by the state shall make the state in any manner legally or equitably liable to any person, or organization relative to the care, preservation, or use of the gift, bequest, or property; provided further, that the right shall be reserved by the general treasurer, and/or the director of administration, to refuse any gift or bequest so offered to the state; and provided further, that to the extent any such gift or bequest is placed in a restricted receipt account, the gift and any identifiable earnings thereon shall remain in that account in the event that any existing and/or future funds in the account are diverted or otherwise transferred or withdrawn to the general fund or used for any other use whatsoever.

SECTION 5. Section 40.1-1-13 of the General Laws in Chapter 40.1-1 entitled "Department of Mental Health, Retardation, and Hospitals" is hereby amended to read as follows:

40.1-1-13. Powers and duties of the office. -- Notwithstanding any provision of the Rhode Island general laws to the contrary, the department of mental health, retardation, and hospitals shall have the following powers and duties:

(1) To establish and promulgate the overall plans, policies, objectives, and priorities for state substance abuse education, prevention and treatment; provided, however, that the director shall obtain and consider input from all interested state departments and agencies prior to the promulgation of any such plans or policies;

(2) Evaluate and monitor all state grants and contracts to local substance abuse service providers;

(3) Develop, provide for, and coordinate the implementation of a comprehensive state plan for substance abuse education, prevention and treatment;

(4) Ensure the collection, analysis, and dissemination of information for planning and evaluation of substance abuse services;

(5) Provide support, guidance, and technical assistance to individuals, local governments, community service providers, public and private organizations in their substance abuse education, prevention and treatment activities;

(6) Confer with all interested department directors to coordinate the administration of state programs and policies that directly affect substance abuse treatment and prevention;

(7) Seek and receive funds from the federal government and private sources in order to further the purposes of this chapter;

(8) Act in the capacity of "state substance abuse authority" as that term has meaning for coordination of state substance abuse planning and policy and as it relates to requirements set forth in pertinent federal substance abuse laws and regulations;

(9) Propose, review and/or approve, as appropriate, proposals, policies or plans involving insurance and managed care systems for substance abuse services in Rhode Island;

(10) To enter into, in compliance with the provisions of title 37, chapter 2, contractual relationships and memoranda of agreement as necessary for the purposes of this chapter;

(11) To license facilities and programs for the care and treatment of substance abusers, and for the prevention of substance abuse;

(12) To promulgate rules and regulations necessary to carry out the requirements of this chapter;

(13) Perform other acts and exercise any other powers necessary or convenient to carry out the intent and purposes of this chapter; and

(14) To exercise the authority and responsibilities relating to education, prevention and treatment of substance abuse, as contained in, but not limited to, the following chapters: chapter 1.10 of title 23; chapter 10.1 of title 23; chapter 28.2 of title 23; chapter 21.2 of title 16; chapter 21.3 of title 16; chapter 50.1 of title 42; chapter 109 of title 42; chapter 69 of title 5 and section 35-4-18.

(15) To establish a Medicare Part D restricted receipt account in the Hospitals and Community Rehabilitation Services program to receive and expend Medicare Part D reimbursements from pharmacy benefit providers consistent with the purposes of this chapter.

SECTION 6. Section 35-4-27 of the General Laws in Chapter 35-4 entitled "State Funds" is hereby amended to read as follows:

35-4-27. Indirect cost recoveries on restricted receipt accounts. -- Indirect cost recoveries of ten percent (10%) of cash receipts shall be transferred from all restricted receipt accounts, to be recorded as general revenues in the general fund. However, there shall be no transfer from cash receipts with restrictions received exclusively: (1) from contributions from non-profit charitable organizations; (2) from the assessment of indirect cost recovery rates on federal grant funds; or (3) through transfers from state agencies to the department of administration for the payment of debt service. These indirect cost recoveries shall be applied to all accounts, unless prohibited by federal law or regulation, court order, or court settlement. The following restricted receipt accounts shall not be subject to the provisions of this section:

Department of Human Services

Veterans' home -- Restricted account

Veterans' home -- Resident benefits

Organ transplant fund

Veteran's Cemetery Memorial Fund

Department of Health

Pandemic medications and equipment account

Department of Mental Health, Retardation and Hospitals

Hospital Medicare Part D Receipts

Department of Environmental Management

National heritage revolving fund

Environmental response fund II

Underground storage tanks

Rhode Island Council on the Arts

Art for public facilities fund

Rhode Island Historical Preservation and Heritage Commission

Historic preservation revolving loan fund

Historic Preservation loan fund -- Interest revenue

State Police

Forfeited property -- Retained

Forfeitures -- Federal

Forfeited property – Gambling

Donation – Polygraph and Law Enforcement Training

Attorney General

Forfeiture of property

Federal forfeitures

Attorney General multi-state account

Department of Administration

Restore and replacement -- Insurance coverage

Convention Center Authority rental payments

Investment Receipts -- TANS

Car Rental Tax/Surcharge-Warwick Share

Legislature

Audit of federal assisted programs

Department of Elderly Affairs

Pharmaceutical Rebates Account

Affordable Energy fund

Department of Children Youth and Families

Children's Trust Accounts -- SSI

Military Staff

RI Military Family Relief Fund

Treasury

Admin. Expenses -- State Retirement System

Retirement -- Treasury Investment Options

Business Regulation

Banking Division Reimbursement Account

Securities Division Reimbursement Account

Commercial Licensing and Racing and Athletics Division Reimbursement

Account

Insurance Division Reimbursement Account

SECTION 7 This article shall take effect as of July 1, 2007.