03/30/1994 11:36 AM Senate RLS

 CHAIRMAN HALFORD brought  HB 529  (APPROP: AMEND CERTAIN FY 94                
 APPROPS) before the committee, and he explained that the bill was             
 before the committee the previous day for a calendaring motion,               
 however, because the Rules Committee is the only committee of                 
 referral in the Senate, it requires a substantive hearing.  He also           
 noted that HB 529 is exactly the same as SB 360, which has passed             
 out of the Senate Finance Committee with all "do pass"                        
 recommendations.                                                              
                                                                               
 CHAIRMAN HALFORD opened the public hearing on HB 529.                         
                                                                               
 SENATOR DRUE PEARCE, Co-chair of the Senate Finance Committee,                
 said the legislation was introduced in response to a timing                   
 problem.                                                                      
                                                                               
 In the FY 94 budget the Governor and the Legislature authorized               
 transferring $1.6 million from the Community Developmentally                  
 Disabilities grant appropriation to the Medical Assistance                    
 appropriation.  Project Choice, which is a waiver program, is to              
 finance care for individuals whose care used to funded through the            
 DD grants.  The DD grants had been in the budget of Medical                   
 Assistance.                                                                   
                                                                               
 However, implementation of the waiver program has been                        
 substantially delayed and $400,000 of the $1.6 million has been               
 used to date in FY 94.  At the beginning of 1994, DD grantees were            
 instructed by the department to spend their grants as though $1.6             
 had not been removed from the grant line.  The department assumed             
 each grantee would receive a corresponding payment from waiver                
 benefits, but implementation was delayed so the grantees have not             
 received the anticipated waiver revenue which necessitates this               
 fund transfer.                                                                
                                                                               
 Senator Pearce said there is zero net general fund impact; it                 
 restores $1.2 to the DD grant line for the Medical Assistance                 
 budget so that grantees can complete their 1994 operations.                   
 Section 22 of the FY 94 supplemental bill has been removed because            
 it is no longer necessary with the transfer of funds in HB 529.               
                                                                               
 Senator Pearce also noted that there is an April 1 deadline on the            
 legislation.  The hold-back money, which is $443,500, can only be             
 dispersed on April 1.                                                         
 There being no other witnesses present to testify on HB 529,                  
 CHAIRMAN HALFORD closed the public hearing and stated the bill was            
 available for action by the committee.                                        
                                                                               
 SENATOR RIEGER moved that HB 529 be passed out of committee with              
 individual recommendations.  Hearing no objection, it was so                  
 ordered.                                                                      
                                                                               
 SENATOR RIEGER moved and asked unanimous consent that  be approved            
 for calendaring at the Chair's discretion.  Hearing no objection,             
 it was so ordered.