EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING LAW. [Brackets] indicate matter deleted from existing law. *hb0509* HOUSE BILL 509 J1, O3 4lr2383 CF 4lr1533 By: Delegates Kaiser, Crutchfield, Cullison, Fair, Guyton, Healey, Kaufman, Pasteur, Ruth, Taveras, Taylor, Terrasa, Watson, and Williams Introduced and read first time: January 24, 2024 Assigned to: Health and Government Operations A BILL ENTITLED AN ACT concerning 1 Developmental Disabilities – Community Providers – Federal Participation for 2 Local Funds 3 FOR the purpose of requiring the Maryland Department of Health to develop a process to 4 receive federal financial participation for the payment of county or municipal general 5 funds appropriated to community providers that serve individuals with 6 developmental disabilities; requiring the Department to allocate the federal financial 7 participation to the community providers to which the county or municipality 8 general funds were appropriated; and generally relating to funding for community 9 providers serving individuals with developmental disabilities. 10 BY repealing and reenacting, with amendments, 11 Article – Health – General 12 Section 7–307 13 Annotated Code of Maryland 14 (2023 Replacement Volume) 15 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16 That the Laws of Maryland read as follows: 17 Article – Health – General 18 7–307. 19 (a) (1) In this section the following words have the meanings indicated. 20 (2) “Community direct service worker” means an employee of a community 21 provider that provides treatment or services to developmentally disabled individuals. 22 2 HOUSE BILL 509 (3) “Community provider” means a community–based agency or program 1 funded by the Administration to serve individuals with developmental disabilities. 2 (4) “Rate” means the reimbursement rate paid by the Department to a 3 community provider from the State General Fund, Maryland Medical Assistance Program 4 funds, other State or federal funds, or a combination of funds. 5 (b) Notwithstanding the provisions of this title or any other provision of law, the 6 Department shall reimburse community providers as provided in this section. 7 (c) Subject to subsection (d) of this section, the Department shall increase the rate 8 of reimbursement for community service providers each fiscal year by the amount of rate 9 increase included in the State budget for that fiscal year. 10 (d) (1) The Governor’s proposed budget for fiscal year 2019 shall include a 11 3.5% rate increase for community service providers over the funding provided in the 12 legislative appropriation for Object 08 Contractual Services in Program M00M01.02 13 Community Services for fiscal year 2018. 14 (2) The Governor’s proposed budget for fiscal year 2021 shall include a 4% 15 rate increase for community service providers over the funding provided in the legislative 16 appropriation for Object 08 Contractual Services in Program M00M01.02 Community 17 Services for fiscal year 2020. 18 (3) The Governor’s proposed budget for fiscal year 2022 shall include a 4% 19 rate increase for community service providers over the funding provided in the legislative 20 appropriation for Object 08 Contractual Services in Program M00M01.02 Community 21 Services for fiscal year 2021. 22 (4) The Governor’s proposed budget for fiscal year 2023 shall include a 4% 23 rate increase for community service providers over the funding provided in the legislative 24 appropriation for Object 08 Contractual Services in Program M00M01.02 Community 25 Services for fiscal year 2022. 26 (5) The Governor’s proposed budget for fiscal year 2024 shall include a 4% 27 rate increase for community service providers over the funding provided in the legislative 28 appropriation for Object 08 Contractual Services in Program M00M01.02 Community 29 Services for fiscal year 2023. 30 (e) The Governor’s proposed budget for fiscal year 2016 and thereafter for 31 community service providers shall be presented in the same manner, including object and 32 program information, as provided for in the fiscal year 2015 budget. 33 (f) A portion of the funds in subsection (e) of this section may be allocated to 34 address the impact of an increase in the State minimum wage on wages and benefits of 35 direct support workers employed by community providers licensed by the Developmental 36 Disabilities Administration. 37 HOUSE BILL 509 3 (G) (1) THE DEPARTMENT SHALL DEVE LOP A PROCESS TO REC EIVE 1 FEDERAL FINANCIAL PA RTICIPATION FOR THE PAYMENT OF COUNTY OR MUNICIPAL 2 GENERAL FUNDS APPROP RIATED TO COMMUNITY PROVIDERS BY: 3 (I) ESTABLISHING OR MODIF YING DEPARTMENT RESOURCES , 4 RATES, PRACTICES, OR SOFTWARE SYSTEMS ; AND 5 (II) COORDINATING WITH THE FEDERAL CENTERS FOR 6 MEDICARE AND MEDICAID SERVICES. 7 (2) THE DEPARTMENT SHALL ALLO CATE THE FEDERAL FIN ANCIAL 8 PARTICIPATION RECEIV ED UNDER PARAGRAPH (1) OF THIS SUBSECTION T O THE 9 COMMUNITY PROVIDERS TO WHICH THE COUNTY OR MUNICIPALITY GENE RAL 10 FUNDS WERE APPROPRIATED . 11 (3) ON OR BEFORE DECEMBER 1, 2024, AND EVERY 6 MONTHS 12 THEREAFTER , THE DEPARTMENT SHALL SUBM IT A REPORT TO THE GENERAL 13 ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, 14 THAT DESCRIBES : 15 (I) ACTIONS TAKEN BY THE DEPARTMENT TO SATISFY THE 16 REQUIREMENTS OF PARA GRAPH (1) OF THIS SUBSECTION ; 17 (II) THE TIME, DEADLINES, AND RESOURCES REQUIR ED FOR 18 THE DEPARTMENT TO SATISFY THE REQUIREMENTS OF PARAGRAPH (1) OF THIS 19 SUBSECTION; AND 20 (III) PROGRESS MADE BY THE DEPARTMENT TO SATISFY THE 21 REQUIREMENTS OF PARA GRAPH (1) OF THIS SUBSECTION . 22 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 23 1, 2024. 24