Sec. 1. 34-B MRSA §1208, sub-§6, ķA, as enacted by PL 1989, c. 432, is amended to read:

A. The stability of the provider system by setting forth the causes for which reasons that constitute good cause for placing existing services may be placed out for competitive bid and procedures that provide no less than 90 days notice to existing providers before the issuance of a request for proposals and opportunity to appeal.__Good cause to place existing services out to competitive bid includes failure of the current provider to adhere to program, policy or performance criteria, to correct deficiencies, to improve services or to reduce costs in a manner reasonably requested by the department; repeated substantiated complaints involving violations of rights of consumers, a material change in circumstances that may affect the current provider's ability to provide services or other reasonable causes as provided by regulation;

SUMMARY

This bill requires the Department of Mental Health, Mental Retardation and Substance Abuse Services to make a determination that good cause exists prior to placing existing services out to competitive bid. Good cause is defined to include the failure of the current provider to adhere to program, policy or performance criteria, to correct deficiencies, to improve services or to reduce costs, repeated and substantiated complaints against the provider, a material change in circumstances or other reasonable causes as provided by regulation. The bill also requires the department to give providers of existing services 90 days notice prior to issuance of a request for proposals.