An Act To Amend the Rule-making Authority of the Department of Human Services to Ensure Cost-effective Operation of State Medical Services Programs and Compliance with Federal Requirements LR 2639(02)
Maine Legislature, Session 121, LD 1748
Committee Amendment CA_A_H777 (House)
Amends: 22 MRSA §42

COMMITTEE AMENDMENT ·4" to H.P. 1270, L.D. 1748, Bill, "An 
Act To Amend the Rule-making Authority of the Department of Human 
Services to 
Ensure Cost-effective Operation of State Medical 
Services Programs and Compliance with Federal Requirements" 
Amend the bill by striking out everything after the enacting 
clause and before the emergency clause and inserting in its place 
the following: 
. Sec. 1. 22 MRSA §42, sub-§8 is enacted to read: 
8. 
Adoption of rules with retroactive application. 
The 
department is authorized to adopt rules that have a retroactive 
application for a period not to exceed 8 calendar quarters prior 
to the date of issuance of the rule in accordance with the 
provisions of this subsection. 
A. 
The Bureau of Medical Services is authorized to adopt 
rules that have retroactive application when necessary to 
max~m~ze available 
federal 
revenue 
sources. 
specifically 
regarding the federal Medicaid program. or to conform to the 
state Medicaid plan as filed with the Federal Government. 
The Bureau of Family Independence is authorized to adopt 
rules 
in the 
MaineCare. 
Temporary Assistance 
for 
Needy 
Families 
and 
food 
stamP 
programs 
that 
have 
retroactive 
application 
to 
comply 
with 
federal 
requirements 
or 
to 
conform to the state Medicaid plan as filed with the Federal 
Government. 
B. 
With respect to any services that MaineCare providers 
have rendered prior to the date of adoption of retroactive 
rules adopted pursuant to this subsection, such rules may 
Page l-LR2639(2) 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .. 11 .. to H.P. 1270, L.D. 1748 
not reduce or otherwise negatively affect the reimbursement 
or other payments 
that those providers are entitled to 
receive 
under 
the 
previously 
applicable 
rules. 
The 
reimbursement or other payments under the amended rules must 
be equal to or greater than the reimbursement under the 
rules previously in effect. 
C. 
For any benefits or services in the MaineCare, Temporary 
Assistance for Needy Families or food stamP programs that 
beneficiaries have received prior to the date of adoption of 
retroactive rules adopted pursuant to this subsection, such 
rules may not reduce or otherwise negatively affect the 
reimbursement or other payments, benefits or services that 
those beneficiaries are entitled to have covered or paid 
under the previously applicable rules. 
The reimbursement or 
other payments, benefits or services under the amended rules 
must be equal to or greater than under the rules previously 
in effect. 
D. 
This 
subsection 
does 
not 
give 
the 
department 
the 
authority to 
adopt 
retroactively 
any 
rule 
that has 
an 
adverse 
financial 
impact 
on 
any 
MaineCare 
provider 
or 
member, Temporary Assistance for Needy Families program or 
food stamp recipient or the beneficiary or recipient of any 
other 
program 
administered 
by 
the 
department. 
Specific 
statutory 
authority 
is 
required 
for 
adoption 
of 
a 
retroactive rule that has an adverse financial impact on any 
MaineCare provider or member, Temporary Assistance for Needy 
Families program or food stamp recipient or the beneficiary 
or 
recipient of 
any 
other 
program 
administered 
by 
the 
department. 
E. 
Rules adopted pursuant to this subsection are routine 
technical 
rules 
as 
defined 
in 
Title 
5, 
chapter 
375, 
subchapter 2-A: 
except that, if the underlying statutory 
rule-making authority for a rule or set of rules specifies 
that rules adopted pursuant to that authority are major 
substantive rules, then the related rule or rules adopted 
under this subsection are major substantive rules. 
F. 
This subsection is repealed July 1, 2006. 
Sec. 2. Report. 
By January 15, 2005 and January 15, 2006, the 
Department of Human Services shall report to the joint standing 
committee of the Legislature having jurisdiction over health and 
human services matters on implementation of this Act and the 
fiscal impact of implementation on the MaineCare and General Fund 
budgets and any MaineCare providers, members or beneficiaries or 
beneficiaries or recipients of other programs administered by the 
department. ' 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "#' to H.P. 1270, L.D. 1748 
SUMMARY 
This bill provides 
the authority for 
bureaus in the 
Department of Human Services, the Bureau of Medical Services and 
the 
Bureau 
of 
Family 
Independence, 
to 
adopt 
rules 
having 
retroactive application in certain specific circumstances for a 
period up to 8 calendar quarters. 
The Bureau of Medical Services 
may do so to maximize available federal revenue sources through 
the federal Medicaid program or to conform to the state Medicaid 
plan. 
Both bureaus may make 
retroactive rules regarding the 
MaineCare, Temporary Assistance for Needy Families and food stamp 
programs to comply with federal regulations and to conform to the 
state plan as filed with the Federal Government. 
The rules may 
not reduce or otherwise negatively affect reimbursement or other 
payments to providers that they are entitled to receive under 
previously applicable rules. 
Reimbursement or payment under the 
new rules must be equal to or greater than reimbursement under 
the old rules. 
The rules may not reduce or otherwise negatively 
affect reimbursement or other payments, benefits or services that 
beneficiaries are entitled to have covered or paid under the old 
rules. 
Reimbursement or other payments, benefits or services 
under the amended rules must be equal to or greater than under 
the prior rules. 
The amendment requires legislative approval for 
retroactive application of any rule that has an adverse financial 
impact on any MaineCare provider or member, Temporary Assistance 
for Needy Families program or food stamp recipient or beneficiary 
or 
recipient 
of 
any 
other 
program 
administered 
by 
the 
department. 
The 
amendment 
designates 
the 
rules 
as 
routine 
technical rules unless the underlying statutory authority for the 
rule already designates the rule as a major substantive rule. 
The amendment requires the department to report on implementation 
and the effect of implementation by January 15, 2005 and 2006. 
Under 
the 
amendment, 
the authority to adopt rules having 
a 
retroactive application is repealed on July 1, 2006. 
FISCH '\( ITF REQURED 
(See artached)_ 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 03/05/04 ,;::t;?ac::.. 
Office of Fiscal and Program Review 
LD 1748 
An Act To Amend the Rule-making Authority of the Department of 
Human Services to Ensure Cost-effective Operation of State Medical 
Services Programs and Compliance with Federal Requirements 
LR 2639(02) 
Fiscal Note for Bill as Amended by Committee Amendment" " 
Committee: Health and Human Services 
Fiscal Note Required: Yes 
Fiscal Note 
Potential current biennium savings - General Fund 
Potential current biennium revenue increase - Federal Expenditures Fund 
Authorizing the Department of Human Services to adopt rules in certain circumstances that have retroactive 
application could result in an increase in federal funding and "savings" in state spending. Whether there are specifil-
rules and "savings" beyond those already assumed in the department's budget\appropriations that would be affected by 
this legislation cannot be determined at this time. Any additional cost to the Department in implementing this 
legislation can be absorbed within existing budgetary resources. 
LR2639(2) - Fiscal Note - Page 1 of 1