Alabama 2023 Regular Session

Alabama House Bill HB126 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~HB126ENROLLED~~
	1	+	HB126INTRODUCED
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3		-	WV1H5E-3
	3	+	WV1H5E-1
4	4		By Representatives South, Reynolds
5	5		RFD: Ways and Means General Fund
6	6		First Read: 21-Mar-23
7		-	2023 Regular Session
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12		-	5 ~~HB126 EnrolledHB126 Enrolled~~
	11	+	5 WV1H5E-1 03/03/2023 EBO-DHC EBO JT EBO-2023-17
13	12		Page 1
14		-	Enrolled, An Act,
	13	+	SYNOPSIS:
	14	+	This bill creates the Medicaid Emergency Reserve
	15	+	Fund and provides for the withdrawal and use of the
	16	+	amounts deposited into the fund.
	17	+	A BILL
	18	+	TO BE ENTITLED
	19	+	AN ACT
15	20		To create the Medicaid Emergency Reserve Fund and to
16	21		provide for the withdrawal and use of amounts deposited into
17	22		the fund.
18	23		BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
19	24		Section 1. This Act shall be known as the Medicaid
20	25		Emergency Reserve Fund Act.
21	26		Section 2. The Legislature finds that it is in the best
22	27		interest of the State of Alabama that the Alabama Medicaid
23	28		Agency is not forced to reduce payments to medical providers
24	29		or eliminate optional but essential medical benefits to
25	30		Medicaid recipients when the fiscal year appropriation is
26	31		insufficient to continue the operations of the Medicaid
27	32		program. It is the intent of the Legislature that there be a
28	33		Medicaid Emergency Reserve Fund to ensure the continued
29	34		operation of the Alabama Medicaid Agency during budget
30		-	shortfalls.
31		-	Section 3. There is hereby created in the State Treasury a
32		-	fund to be known as the Medicaid Emergency Reserve Fund. The fund
33		-	shall be administered in accordance with the provisions of this
34		-	article. The fund shall be budgeted and allotted in accordance with
35		-	Sections 41-4-80 through 41-4-96 and Sections 41-19-1 through
36		-	41-19-12.
37		-	Section 4.(a) The Medicaid Emergency Reserve Fund shall
38		-	only be used for the following reasons:
39		-	(1) To cover expenditure variances due to cost increases;
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	62	+	28 HB126 INTRODUCEDHB126 INTRODUCED
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	64	+	shortfalls.
	65	+	Section 3. There is hereby created in the State Treasury a
	66	+	fund to be known as the Medicaid Emergency Reserve Fund. The fund
	67	+	shall be administered in accordance with the provisions of this
	68	+	article. The fund shall be budgeted and allotted in accordance with
	69	+	Sections 41-4-80 through 41-4-96 and Sections 41-19-1 through
	70	+	41-19-12.
	71	+	Section 4.(a) The Medicaid Emergency Reserve Fund shall
	72	+	only be used for the following reasons:
	73	+	(1) To cover expenditure variances due to cost increases;
68	74		(2) To cover expenditure variances due to unforeseen
69	75		cost; or
70	76		(3) To prevent overdraft or deficit if the Alabama
71	77		Medicaid Agency is expected to expend its total State General
72	78		Fund appropriation before the end of the fiscal year.
73	79		(b) Funds in the Medicaid Emergency Reserve Fund shall
74	80		only be used by the Alabama Medicaid Agency when authorized by
75	81		the Governor.
76	82		(c) The Alabama Medicaid Agency must exhaust its
77	83		appropriation from the State General Fund for the fiscal year
78	84		in which the Governor approves the release before any funds
79	85		from the Medicaid Emergency Reserve Fund are utilized.
80	86		Section 5.(a) The Commissioner of the Alabama Medicaid
81	87		Agency shall notify the Governor when he or she foresees that
82	88		the Alabama Medicaid Agency will exhaust its State General
83		-	Fund appropriation within 180 days or less due to any of the
84		-	reasons stated in Section 4(a). The notification must include
85		-	a detailed explanation of why the State General Fund
86		-	appropriation will be exhausted, the anticipated amount of
87		-	funds necessary to continue the operation of the Medicaid
88		-	program until the next fiscal year, and the effect on the
89		-	Medicaid program if the Alabama Medicaid Agency is unable to
90		-	utilize funds from the Medicaid Emergency Reserve Fund.
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	115	+	Fund appropriation within 180 days or less due to any of the
	116	+	reasons stated in Section 4(a). The notification must include
	117	+	a detailed explanation of why the State General Fund
	118	+	appropriation will be exhausted, the anticipated amount of
	119	+	funds necessary to continue the operation of the Medicaid
	120	+	program until the next fiscal year, and the effect on the
	121	+	Medicaid program if the Alabama Medicaid Agency is unable to
	122	+	utilize funds from the Medicaid Emergency Reserve Fund.
115	123		(b) The Commissioner of the Alabama Medicaid Agency
116	124		shall contemporaneously send the same notification to the
117	125		Chairman of the Senate Finance and Taxation Committee-General
118	126		Fund, and the Chairman of the House Ways and Means
119	127		Committee-General Fund, the State Finance Director, and the
120	128		Legislative Fiscal Officer.
121	129		Section 6.The Governor shall notify the Commissioner of
122	130		the Alabama Medicaid Agency, the Director of Finance, and all
123	131		persons listed in Section 5(b) of his or her decision to
124	132		release funds in the Medicaid Emergency Reserve Fund. The
125	133		Governor shall include the maximum amount of funds from the
126	134		Medicaid Emergency Reserve Fund that may be released.
127	135		Section 7.At the end of fiscal year 2024, and at the
128	136		end of every fiscal year thereafter, the unencumbered balance
129	137		of both the Medicaid State General Fund Account, Account No.
130	138		0106, and the Medicaid State General Fund Carryforward
131		-	Account, Account No. 0110, that was not appropriated in a
132		-	future budget, shall be transferred to the Medicaid Emergency
133		-	Reserve Fund no later than November 15 of the following fiscal
134		-	year. Each year the legislature shall appropriate the
135		-	expected carryforward in the Medicaid Emergency Reserve Fund
136		-	back to the fund for use in the next fiscal year. Each year
137		-	the legislature shall also appropriate any expected transfers
138		-	from both the Medicaid State General Fund Account, Account No.
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	164	+	Account, Account No. 0110, that was not appropriated in a
	165	+	future budget, shall be transferred to the Medicaid Emergency
	166	+	Reserve Fund no later than November 15 of the following fiscal
	167	+	year. Each year the legislature shall appropriate the
	168	+	expected carryforward in the Medicaid Emergency Reserve Fund
	169	+	back to the fund for use in the next fiscal year. Each year
	170	+	the legislature shall also appropriate any expected transfers
	171	+	from both the Medicaid State General Fund Account, Account No.
164	172		0106, and the Medicaid State General Fund Carryforward
165	173		Account, Account No. 0110, to the Medicaid Emergency Reserve
166	174		Fund.
167	175		Section 8.(a) In addition to all other appropriations,
168		-	there is hereby appropriated $88,000,000 from the Medicaid
169		-	State General Fund Carryforward Account to the Medicaid
	176	+	there is hereby appropriated $88,000,000 to the Medicaid
170	177		Emergency Reserve Fund for the state fiscal year ending
171	178		September 30, 2024.
172	179		(b) In addition to all other appropriations, there is
173	180		hereby appropriated $88,000,000 from the Medicaid Emergency
174	181		Reserve Fund to the Alabama Medicaid Agency to be used in
175	182		conformity with this Act during the state fiscal year ending
176	183		September 30, 2024.
177	184		Section 9.The balance in the Medicaid Emergency Reserve
178	185		Fund shall not exceed $100,000,000. No transfers may be made
179	186		to the Medicaid Emergency Reserve Fund if the balance is
180	187		$100,000,000.
181		-	Section 10.The State Treasurer shall invest the funds
182		-	in the Medicaid Emergency Reserve Fund in investments which
183		-	are eligible investments for the Alabama Trust Fund as
184		-	authorized by Amendment No. 450 and Amendment No. 488 of the
185		-	Constitution of Alabama of 1901 State Treasurer, as authorized
186		-	by subsections (b), (c), and (d) of Section 41-14-30, Code of
187		-	Alabama 1975. All interest earned on the investment of money
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213		-	in the reserve fund shall be credited to the State General
214		-	Fund. The State Treasurer shall receive no fees or
215		-	compensation for his or her work in complying with this
216		-	provision.
	213	+	Section 10.The State Treasurer shall invest the funds
	214	+	in the Medicaid Emergency Reserve Fund in investments which
	215	+	are eligible investments for the Alabama Trust Fund as
	216	+	authorized by Amendment No. 450 and Amendment No. 488 of the
	217	+	Constitution of Alabama of 1901. All interest earned on the
	218	+	investment of money in the reserve fund shall be credited to
	219	+	the State General Fund. The State Treasurer shall receive no
	220	+	fees or compensation for his or her work in complying with
	221	+	this provision.
217	222		Section 11. This act shall be effective upon its
218	223		passage and approval by the Governor, or its otherwise
219	224		becoming law.
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228		-	________________________________________________
229		-	Speaker of the House of Representatives
230		-	________________________________________________
231		-	President and Presiding Officer of the Senate
232		-	House of Representatives
233		-	I hereby certify that the within Act originated in and
234		-	was passed by the House 25-Apr-23, as amended.
235		-	John Treadwell
236		-	Clerk
237		-	Senate 25-May-23 Passed
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