PART A

Sec. A-1. 22 MRSA §42, sub-§9 is enacted to read:

9.__Reimbursement, audit and appeal procedures.__Beginning January 1, 2006, the following requirements apply to reimbursement, audit and appeals procedures for community-based organizations providing mental retardation and developmental disabilities services to clients of the department through the MaineCare program or through contract or agreement with the department.__These procedures apply in addition to the procedures otherwise required by law or rule.

A.__In the principles of reimbursement, the department shall adopt a standard definition of "allowable costs" for all principles of reimbursement unless federal law or regulation specifically prohibits the use of the definition for a particular program.

B.__The principles of reimbursement for private nonmedical institutions must enable community-based organizations operating private nonmedical institutions to shift variable cost funds within certain designated accounts provided that the totals are met for the private nonmedical institution.

C.__The department shall publish on its publically accessible site on the Internet all interpretations of the application of the principles of reimbursement by the department's auditors.

D.__When a new interpretation of the application of the principles of reimbursement is made by the department and a previously allowed practice is disallowed by the department through an audit, a new practice replacing the previously allowed practice may not be required prior to the beginning of the next fiscal year after the audit is completed.

E.__Appeals by a community-based organization regarding programmatic and budgetary issues must be conducted for the department by an independent decisionmaker.

F.__If a community-based organization is successful in an appeal against the department, the decisionmaker shall award to the organization as an allowable cost the cost of legal fees and representation in the appeal.

Sec. A-2. Pilot project. The Department of Health and Human Services shall conduct a pilot project to determine the efficacy of accepting audits by certified public accountants