Sec. 1. 34-B MRSA §3604, sub-§3, ¶H is enacted to read:

H.__Grants made pursuant to this section must be for the purpose of providing services to persons under the Medicaid program or for other purposes.__Grants made for other purposes may be used only for the purposes stated in the grant application and contract as budgeted.__The department shall adopt rules to implement this paragraph.__Rules adopted pursuant to this paragraph are routine technical rules as defined in Title 5, chapter 375, subchapter II-A.

FISCAL NOTE

This bill requires grants made for mental health services to be used for the purposes of providing Medicaid services or other purposes stated in the application and contract, as budgeted. The impact on the state share of Medicaid costs can not be determined at this time.

The Department of Mental Health, Mental Retardation and Substance Abuse Services will incur some minor additional costs to adopt rules. These costs can be absorbed within the department's existing budgeted resources.

SUMMARY

This bill requires grants made by the Department of Mental Health, Mental Retardation and Substance Abuse Services to be for the purposes of providing Medicaid services or other purposes stated in the application and contract, as budgeted. It requires rulemaking to implement the provision.