Senate Bill 0484e1

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    CS for CS for SB 484                           First Engrossed



  1                      A bill to be entitled

  2         An act relating to public assistance; amending

  3         s. 409.908, F.S.; requiring the agency to

  4         establish a reimbursement methodology for

  5         long-term-care services for Medicaid-eligible

  6         nursing home residents; specifying requirements

  7         for the methodology; providing legislative

  8         intent; prescribing guidelines for Medicaid

  9         payment of Medicare deductibles and

10         coinsurance; eliminating a prohibition on

11         specified contracts; repealing redundant

12         provisions; amending s. 409.912, F.S.;

13         authorizing the agency to include

14         disease-management initiatives in providing and

15         monitoring Medicaid services; authorizing the

16         agency to competitively negotiate home health

17         services; authorizing the agency to seek

18         necessary federal waivers that relate to the

19         competitive negotiation of such services;

20         directing the Agency for Health Care

21         Administration to establish an outpatient

22         specialty services pilot project; providing

23         definitions; providing criteria for

24         participation; requiring an evaluation and a

25         report to the Governor and Legislature;

26         modifying the licensure requirements for a

27         provider of services under a pilot project;

28         amending s. 409.9122, F.S.; requiring the

29         Agency for Health Care Administration to

30         reimburse county health departments for

31         school-based services; requiring Medicaid


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    CS for CS for SB 484                           First Engrossed



  1         managed-care contractors to attempt to enter

  2         agreements with school districts and county

  3         health departments for specified services;

  4         specifying the departments that are required to

  5         make certain information available to Medicaid

  6         recipients; extending the period during which a

  7         Medicaid recipient may disenroll from a managed

  8         care plan or MediPass provider; deleting

  9         authorization for the agency to request a

10         federal waiver from the requirement that a

11         Medicaid managed care plan include a specified

12         ratio of enrollees; amending requirements for

13         the mandatory assignment of Medicaid

14         recipients; amending s. 409.910, F.S.;

15         providing for the distribution of amounts

16         recovered in certain tort suits involving

17         intervention by the Agency for Health Care

18         Administration; requiring that certain

19         third-party benefits received by a Medicaid

20         recipient be remitted within a specified

21         period; amending s. 414.28, F.S.; revising the

22         order under which a claim may be made against

23         the estate of a recipient of public assistance;

24         amending s. 198.30, F.S.; requiring that each

25         circuit judge provide a report of decedents to

26         the Agency for Health Care Administration;

27         amending s. 154.504, F.S.; providing certain

28         restrictions on the use of copayments by public

29         health facilities; creating ss. 381.0022,

30         402.115, F.S.; authorizing the Department of

31         Health and the Department of Children and


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    CS for CS for SB 484                           First Engrossed



  1         Family Services to share certain confidential

  2         information; amending s. 414.028, F.S.;

  3         providing for a representative of a county

  4         health department or Healthy Start Coalition to

  5         serve on the local WAGES coalition; amending s.

  6         766.101, F.S.; redefining the term "medical

  7         review committee" to include a committee of the

  8         Department of Health; amending s. 383.011,

  9         F.S.; providing that the Department of Health

10         is the designated state agency for receiving

11         federal funds for the Child Care Food Program;

12         requiring the department to adopt rules for

13         administering the program; amending s. 383.04,

14         F.S.; revising the requirements for the

15         prophylactic to be used for the eyes of

16         infants; repealing s. 383.05, F.S., relating to

17         the free distribution of such prophylactic;

18         amending s. 409.903, F.S.; providing Medicaid

19         eligibility standards for certain persons;

20         conforming references; providing an

21         appropriation to be matched by federal Medicaid

22         funds; providing an effective date.

23

24  Be It Enacted by the Legislature of the State of Florida:

25

26         Section 1.  Subsections (2) and (13) of section

27  409.908, Florida Statutes, are amended to read:

28         409.908  Reimbursement of Medicaid providers.--Subject

29  to specific appropriations, the agency shall reimburse

30  Medicaid providers, in accordance with state and federal law,

31  according to methodologies set forth in the rules of the


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    CS for CS for SB 484                           First Engrossed



  1  agency and in policy manuals and handbooks incorporated by

  2  reference therein.  These methodologies may include fee

  3  schedules, reimbursement methods based on cost reporting,

  4  negotiated fees, competitive bidding pursuant to s. 287.057,

  5  and other mechanisms the agency considers efficient and

  6  effective for purchasing services or goods on behalf of

  7  recipients.  Payment for Medicaid compensable services made on

  8  behalf of Medicaid eligible persons is subject to the

  9  availability of moneys and any limitations or directions

10  provided for in the General Appropriations Act or chapter 216.

11  Further, nothing in this section shall be construed to prevent

12  or limit the agency from adjusting fees, reimbursement rates,

13  lengths of stay, number of visits, or number of services, or

14  making any other adjustments necessary to comply with the

15  availability of moneys and any limitations or directions

16  provided for in the General Appropriations Act, provided the

17  adjustment is consistent with legislative intent.

18         (2)(a)1.  Reimbursement to nursing homes licensed under

19  part II of chapter 400 and state-owned-and-operated

20  intermediate care facilities for the developmentally disabled

21  licensed under chapter 393 must be made prospectively.

22         2.  Unless otherwise limited or directed in the General

23  Appropriations Act, reimbursement to hospitals licensed under

24  part I of chapter 395 for the provision of swing-bed nursing

25  home services must be made on the basis of the average

26  statewide nursing home payment, and reimbursement to a

27  hospital licensed under part I of chapter 395 for the

28  provision of skilled nursing services must be made on the

29  basis of the average nursing home payment for those services

30  in the county in which the hospital is located. When a

31  hospital is located in a county that does not have any


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    CS for CS for SB 484                           First Engrossed



  1  community nursing homes, reimbursement must be determined by

  2  averaging the nursing home payments, in counties that surround

  3  the county in which the hospital is located. Reimbursement to

  4  hospitals, including Medicaid payment of Medicare copayments,

  5  for skilled nursing services shall be limited to 30 days,

  6  unless a prior authorization has been obtained from the

  7  agency. Medicaid reimbursement may be extended by the agency

  8  beyond 30 days, and approval must be based upon verification

  9  by the patient's physician that the patient requires

10  short-term rehabilitative and recuperative services only, in

11  which case an extension of no more than 15 days may be

12  approved. Reimbursement to a hospital licensed under part I of

13  chapter 395 for the temporary provision of skilled nursing

14  services to nursing home residents who have been displaced as

15  the result of a natural disaster or other emergency may not

16  exceed the average county nursing home payment for those

17  services in the county in which the hospital is located and is

18  limited to the period of time which the agency considers

19  necessary for continued placement of the nursing home

20  residents in the hospital.

21         (b)  Subject to any limitations or directions provided

22  for in the General Appropriations Act, the agency shall

23  establish and implement a Florida Title XIX Long-Term Care

24  Reimbursement Plan (Medicaid) for nursing home care in order

25  to provide care and services in conformance with the

26  applicable state and federal laws, rules, regulations, and

27  quality and safety standards and to ensure that individuals

28  eligible for medical assistance have reasonable geographic

29  access to such care. Effective no earlier than the

30  rate-setting period beginning April 1, 1999, the agency shall

31  establish a case-mix reimbursement methodology for the rate of


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    CS for CS for SB 484                           First Engrossed



  1  payment for long-term-care services for nursing home

  2  residents. The agency shall compute a per diem rate for

  3  Medicaid residents, adjusted for case mix, which is based on a

  4  resident classification system that accounts for the relative

  5  resource utilization by different types of residents and which

  6  is based on level-of-care data and other appropriate data. The

  7  case-mix methodology developed by the agency shall take into

  8  account the medical, behavioral, and cognitive deficits of

  9  residents. In developing the reimbursement methodology, the

10  agency shall evaluate and modify other aspects of the

11  reimbursement plan as necessary to improve the overall

12  effectiveness of the plan with respect to the costs of patient

13  care, operating costs, and property costs. In the event

14  adequate data are not available, the agency is authorized to

15  adjust the patient's care component or the per diem rate to

16  more adequately cover the cost of services provided in the

17  patient's care component. The agency shall work with the

18  Department of Elderly Affairs, the Florida Health Care

19  Association, and the Florida Association of Homes for the

20  Aging in developing the methodology. It is the intent of the

21  Legislature that the reimbursement plan achieve the goal of

22  providing access to health care for nursing home residents who

23  require large amounts of care while encouraging diversion

24  services as an alternative to nursing home care for residents

25  who can be served within the community. The agency shall base

26  the establishment of any maximum rate of payment, whether

27  overall or component, on the available moneys as provided for

28  in the General Appropriations Act. The agency may base the

29  maximum rate of payment on the results of scientifically valid

30  analysis and conclusions derived from objective statistical

31  data pertinent to the particular maximum rate of payment.


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    CS for CS for SB 484                           First Engrossed



  1         (13)  Medicare premiums for persons eligible for both

  2  Medicare and Medicaid coverage shall be paid at the rates

  3  established by Title XVIII of the Social Security Act.  For

  4  Medicare services rendered to Medicaid-eligible persons,

  5  Medicaid shall pay Medicare deductibles and coinsurance as

  6  follows:

  7         (a)  Medicaid shall make no payment toward deductibles

  8  and coinsurance for any service that is not covered by

  9  Medicaid.

10         (b)  Medicaid's financial obligation for deductibles

11  and coinsurance payments shall be based on Medicare allowable

12  fees, not on a provider's billed charges.

13         (c)  Medicaid will pay no portion of Medicare

14  deductibles and coinsurance when payment that Medicare has

15  made for the service equals or exceeds what Medicaid would

16  have paid if it had been the sole payor.  The combined payment

17  of Medicare and Medicaid shall not exceed the amount Medicaid

18  would have paid had it been the sole payor.

19         (d)  The following provisions are exceptions to

20  paragraphs (a)-(c):

21         1.  Medicaid payments for Nursing Home Medicare Part A

22  coinsurance shall be the lesser of the Medicare coinsurance

23  amount or the Medicaid nursing home per diem rate.

24         2.  Medicaid shall pay all deductibles and coinsurance

25  for Nursing Home Medicare Part B services.

26         3.  Medicaid shall pay all deductibles and coinsurance

27  for Medicare-eligible recipients receiving freestanding end

28  stage renal dialysis center services.

29         4.  Medicaid shall pay all deductibles and coinsurance

30  for hospital outpatient Medicare Part B services.

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    CS for CS for SB 484                           First Engrossed



  1         5.  Medicaid payments for general hospital inpatient

  2  services shall be limited to the Medicare deductible per spell

  3  of illness.  Medicaid shall make no payment toward coinsurance

  4  for Medicare general hospital inpatient services.

  5         6.  Medicaid shall pay all deductibles and coinsurance

  6  for Medicare emergency transportation services provided by

  7  ambulances licensed pursuant to chapter 401. Premiums,

  8  deductibles, and coinsurance for Medicare services rendered to

  9  Medicaid eligible persons shall be reimbursed in accordance

10  with fees established by Title XVIII of the Social Security

11  Act.

12         Section 2.  Paragraph (c) of subsection (4) of section

13  409.912, Florida Statutes, is repealed, paragraphs (b) and (d)

14  of subsection (3) and subsection (13) of that section are

15  amended, and subsections (34) and (35) are added to that

16  section, to read:

17         409.912  Cost-effective purchasing of health care.--The

18  agency shall purchase goods and services for Medicaid

19  recipients in the most cost-effective manner consistent with

20  the delivery of quality medical care.  The agency shall

21  maximize the use of prepaid per capita and prepaid aggregate

22  fixed-sum basis services when appropriate and other

23  alternative service delivery and reimbursement methodologies,

24  including competitive bidding pursuant to s. 287.057, designed

25  to facilitate the cost-effective purchase of a case-managed

26  continuum of care. The agency shall also require providers to

27  minimize the exposure of recipients to the need for acute

28  inpatient, custodial, and other institutional care and the

29  inappropriate or unnecessary use of high-cost services.

30         (3)  The agency may contract with:

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    CS for CS for SB 484                           First Engrossed



  1         (b)  An entity that is providing comprehensive

  2  inpatient and outpatient mental health care services to

  3  certain Medicaid recipients in Hillsborough, Highlands,

  4  Hardee, Manatee, and Polk Counties, through a capitated,

  5  prepaid arrangement pursuant to the federal waiver provided

  6  for by s. 409.905(5). Such an entity must become licensed

  7  under chapter 624, chapter 636, or chapter 641 by December 31,

  8  1998, and is exempt from the provisions of part I of chapter

  9  641 until then. However, if the entity assumes risk, the

10  Department of Insurance shall develop appropriate regulatory

11  requirements by rule under the insurance code before the

12  entity becomes operational.

13         (d)  No more than four provider service networks for

14  demonstration projects to test Medicaid direct contracting.

15  However, no such demonstration project shall be established

16  with a federally qualified health center nor shall any

17  provider service network under contract with the agency

18  pursuant to this paragraph include a federally qualified

19  health center in its provider network. One demonstration

20  project must be located in Orange County.  The demonstration

21  projects may be reimbursed on a fee-for-service or prepaid

22  basis.  A provider service network which is reimbursed by the

23  agency on a prepaid basis shall be exempt from parts I and III

24  of chapter 641, but must meet appropriate financial reserve,

25  quality assurance, and patient rights requirements as

26  established by the agency.  The agency shall award contracts

27  on a competitive bid basis and shall select bidders based upon

28  price and quality of care. Medicaid recipients assigned to a

29  demonstration project shall be chosen equally from those who

30  would otherwise have been assigned to prepaid plans and

31  MediPass.  The agency is authorized to seek federal Medicaid


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  1  waivers as necessary to implement the provisions of this

  2  section.  A demonstration project awarded pursuant to this

  3  paragraph shall be for 2 years from the date of

  4  implementation.

  5         (13)  The agency shall identify health care utilization

  6  and price patterns within the Medicaid program which that are

  7  not cost-effective or medically appropriate and assess the

  8  effectiveness of new or alternate methods of providing and

  9  monitoring service, and may implement such methods as it

10  considers appropriate. Such methods may include

11  disease-management initiatives, an integrated and systematic

12  approach for managing the health care needs of recipients who

13  are at risk of or diagnosed with a specific disease by using

14  best practices, prevention strategies, clinical-practice

15  improvement, clinical interventions and protocols, outcomes

16  research, information technology, and other tools and

17  resources to reduce overall costs and improve measurable

18  outcomes.

19         (34)  The agency may provide for cost-effective

20  purchasing of home health services through competitive

21  negotiation pursuant to s. 287.057. The agency may request

22  appropriate waivers from the federal Health Care Financing

23  Administration in order to competitively bid home health

24  services.

25         (35)  The Agency for Health Care Administration is

26  directed to issue a request for proposal or intent to

27  negotiate to implement on a demonstration basis an outpatient

28  specialty services pilot project in a rural and urban county

29  in the state.  As used in this subsection, the term

30  "outpatient specialty services" means clinical laboratory,

31  diagnostic imaging, and specified home medical services to


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  1  include durable medical equipment, prosthetics and orthotics,

  2  and infusion therapy.

  3         (a)  The entity that is awarded the contract to provide

  4  Medicaid managed care outpatient specialty services must, at a

  5  minimum, meet the following criteria:

  6         1.  The entity must be licensed by the Department of

  7  Insurance under part II of chapter 641.

  8         2.  The entity must be experienced in providing

  9  outpatient specialty services.

10         3.  The entity must demonstrate to the satisfaction of

11  the agency that it provides high-quality services to its

12  patients.

13         4.  The entity must demonstrate that it has in place a

14  complaints and grievance process to assist Medicaid recipients

15  enrolled in the pilot managed care program to resolve

16  complaints and grievances.

17         (b)  The pilot managed care program shall operate for a

18  period of 3 years.  The objective of the pilot program shall

19  be to determine the cost-effectiveness and effects on

20  utilization, access, and quality of providing outpatient

21  specialty services to Medicaid recipients on a prepaid,

22  capitated basis.

23         (c)  The agency shall conduct a quality-assurance

24  review of the prepaid health clinic each year that the

25  demonstration program is in effect. The prepaid health clinic

26  is responsible for all expenses incurred by the agency in

27  conducting a quality assurance review.

28         (d)  The entity that is awarded the contract to provide

29  outpatient specialty services to Medicaid recipients shall

30  report data required by the agency in a format specified by

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  1  the agency, for the purpose of conducting the evaluation

  2  required in paragraph (e).

  3         (e)  The agency shall conduct an evaluation of the

  4  pilot managed care program and report its findings to the

  5  Governor and the Legislature by no later than January 1, 2001.

  6         (f)  Nothing in this subsection is intended to conflict

  7  with the provision of the 1997-1998 General Appropriations Act

  8  which authorizes competitive bidding for Medicaid home health,

  9  clinical laboratory, or x-ray services.

10         Section 3.  Subsection (2) of section 409.9122, Florida

11  Statutes, is amended to read:

12         409.9122  Mandatory Medicaid managed care enrollment;

13  programs and procedures.--

14         (2)(a)  The agency shall enroll in a managed care plan

15  or MediPass all Medicaid recipients, except those Medicaid

16  recipients who are: in an institution; enrolled in the

17  Medicaid medically needy program; or eligible for both

18  Medicaid and Medicare.  However, to the extent permitted by

19  federal law, the agency may enroll in a managed care plan or

20  MediPass a Medicaid recipient who is exempt from mandatory

21  managed care enrollment, provided that:

22         1.  The recipient's decision to enroll in a managed

23  care plan or MediPass is voluntary;

24         2.  If the recipient chooses to enroll in a managed

25  care plan, the agency has determined that the managed care

26  plan provides specific programs and services which address the

27  special health needs of the recipient; and

28         3.  The agency receives any necessary waivers from the

29  federal Health Care Financing Administration.

30

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  1  The agency shall develop rules to establish policies by which

  2  exceptions to the mandatory managed care enrollment

  3  requirement may be made on a case-by-case basis. The rules

  4  shall include the specific criteria to be applied when making

  5  a determination as to whether to exempt a recipient from

  6  mandatory enrollment in a managed care plan or MediPass.

  7  School districts participating in the certified school match

  8  program pursuant to ss. 236.0812 and 409.908(21) shall be

  9  reimbursed by Medicaid, subject to the limitations of s.

10  236.0812(1) and (2), for a Medicaid-eligible child

11  participating in the services as authorized in s. 236.0812, as

12  provided for in s. 409.9071, regardless of whether the child

13  is enrolled in MediPass or a managed care plan. Managed care

14  plans shall make a good faith effort to execute agreements

15  with school districts and county health departments regarding

16  the coordinated provision of services authorized under s.

17  236.0812. County health departments delivering school-based

18  services pursuant to ss. 381.0056 and 381.0057 shall be

19  reimbursed by Medicaid, subject to s. 409.908(19), for a

20  Medicaid-eligible child participating in the services as

21  authorized in s. 381.0056 and 381.0057, regardless of whether

22  the child is enrolled in MediPass or a managed care plan.

23  Managed care plans shall make a good faith effort to execute

24  agreements with county health departments regarding the

25  coordinated provision of services authorized under ss.

26  381.0056 and 381.0057. To ensure continuity of care for

27  Medicaid patients, the agency, the Department of Health, and

28  the Department of Education shall develop procedures for

29  ensuring that a student's managed care plan or MediPass

30  provider receives information relating to services provided in

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  1  accordance with ss. 236.0812, 381.0056, 381.0057, and

  2  409.9071.

  3         (b)  A Medicaid recipient shall not be enrolled in or

  4  assigned to a managed care plan or MediPass unless the managed

  5  care plan or MediPass has complied with the quality-of-care

  6  standards specified in paragraphs (3)(a) and (b),

  7  respectively.

  8         (c)  Medicaid recipients shall have a choice of managed

  9  care plans or MediPass.  The Agency for Health Care

10  Administration, the Department of Health and Rehabilitative

11  Services, the Department of Children and Family Services, and

12  the Department of Elderly Affairs shall cooperate to ensure

13  that each Medicaid recipient receives clear and easily

14  understandable information that meets the following

15  requirements:

16         1.  Explains the concept of managed care, including

17  MediPass.

18         2.  Provides information on the comparative performance

19  of managed care plans and MediPass in the areas of quality,

20  credentialing, preventive health programs, network size and

21  availability, and patient satisfaction.

22         3.  Explains where additional information on each

23  managed care plan and MediPass in the recipient's area can be

24  obtained.

25         4.  Explains that recipients have the right to choose

26  their own managed care plans or MediPass.  However, if a

27  recipient does not choose a managed care plan or MediPass, the

28  agency will assign the recipient to a managed care plan or

29  MediPass according to the criteria specified in this section.

30         5.  Explains the recipient's right to complain, file a

31  grievance, or change managed care plans or MediPass providers


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  1  if the recipient is not satisfied with the managed care plan

  2  or MediPass.

  3         (d)  The agency shall develop a mechanism for providing

  4  information to Medicaid recipients for the purpose of making a

  5  managed care plan or MediPass selection.  Examples of such

  6  mechanisms may include, but not be limited to, interactive

  7  information systems, mailings, and mass marketing materials.

  8  Managed care plans and MediPass providers are prohibited from

  9  providing inducements to Medicaid recipients to select their

10  plans or from prejudicing Medicaid recipients against other

11  managed care plans or MediPass providers.

12         (e)  Prior to requesting a Medicaid recipient who is

13  subject to mandatory managed care enrollment to make a choice

14  between a managed care plan or MediPass, the agency shall

15  contact and provide choice counseling to the recipient.

16  Medicaid recipients who are already enrolled in a managed care

17  plan or MediPass shall be offered the opportunity to change

18  managed care plans or MediPass providers on a staggered basis,

19  as defined by the agency.  All Medicaid recipients shall have

20  90 days in which to make a choice of managed care plans or

21  MediPass providers.  Those Medicaid recipients who do not make

22  a choice shall be assigned to a managed care plan or MediPass

23  in accordance with paragraph (f).  To facilitate continuity of

24  care, for a Medicaid recipient who is also a recipient of

25  Supplemental Security Income (SSI), prior to assigning the SSI

26  recipient to a managed care plan or MediPass, the agency shall

27  determine whether the SSI recipient has an ongoing

28  relationship with a MediPass provider or managed care plan,

29  and if so, the agency shall assign the SSI recipient to that

30  MediPass provider or managed care plan.  Those SSI recipients

31  who do not have such a provider relationship shall be assigned


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  1  to a managed care plan or MediPass provider in accordance with

  2  paragraph (f).

  3         (f)  When a Medicaid recipient does not choose a

  4  managed care plan or MediPass provider, the agency shall

  5  assign the Medicaid recipient to a managed care plan or

  6  MediPass provider. Medicaid recipients who are subject to

  7  mandatory assignment but who fail to make a choice shall be

  8  assigned to managed care plans or provider service networks

  9  until an equal enrollment of 50 percent in MediPass and

10  provider service networks and 50 percent in managed care plans

11  is achieved.  Once equal enrollment is achieved, the

12  assignments shall be divided in order to maintain an equal

13  enrollment in MediPass and managed care plans for the 1998-99

14  fiscal year. In the first period that assignment begins, the

15  assignments shall be divided equally between the MediPass

16  program and managed care plans. Thereafter, assignment of

17  Medicaid recipients who fail to make a choice shall be based

18  proportionally on the preferences of recipients who have made

19  a choice in the previous period.  Such proportions shall be

20  revised at least quarterly to reflect an update of the

21  preferences of Medicaid recipients.  When making assignments,

22  the agency shall take into account the following criteria:

23         1.  A managed care plan has sufficient network capacity

24  to meet the need of members.

25         2.  The managed care plan or MediPass has previously

26  enrolled the recipient as a member, or one of the managed care

27  plan's primary care providers or MediPass providers has

28  previously provided health care to the recipient.

29         3.  The agency has knowledge that the member has

30  previously expressed a preference for a particular managed

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  1  care plan or MediPass provider as indicated by Medicaid

  2  fee-for-service claims data, but has failed to make a choice.

  3         4.  The managed care plan's or MediPass primary care

  4  providers are geographically accessible to the recipient's

  5  residence.

  6         (g)  When more than one managed care plan or MediPass

  7  provider meets the criteria specified in paragraph (f), the

  8  agency shall make recipient assignments consecutively by

  9  family unit.

10         (h)  The agency may not engage in practices that are

11  designed to favor one managed care plan over another or that

12  are designed to influence Medicaid recipients to enroll in

13  MediPass rather than in a managed care plan or to enroll in a

14  managed care plan rather than in MediPass.  This subsection

15  does not prohibit the agency from reporting on the performance

16  of MediPass or any managed care plan, as measured by

17  performance criteria developed by the agency.

18         (i)  After a recipient has made a selection or has been

19  enrolled in a managed care plan or MediPass, the recipient

20  shall have 90 60 days in which to voluntarily disenroll and

21  select another managed care plan or MediPass provider.  After

22  90 60 days, no further changes may be made except for cause.

23  Cause shall include, but not be limited to, poor quality of

24  care, lack of access to necessary specialty services, an

25  unreasonable delay or denial of service, or fraudulent

26  enrollment.  The agency shall develop criteria for good cause

27  disenrollment for chronically ill and disabled populations who

28  are assigned to managed care plans if more appropriate care is

29  available through the MediPass program.  The agency must make

30  a determination as to whether cause exists.  However, the

31  agency may require a recipient to use the managed care plan's


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    CS for CS for SB 484                           First Engrossed



  1  or MediPass grievance process prior to the agency's

  2  determination of cause, except in cases in which immediate

  3  risk of permanent damage to the recipient's health is alleged.

  4  The grievance process, when utilized, must be completed in

  5  time to permit the recipient to disenroll no later than the

  6  first day of the second month after the month the

  7  disenrollment request was made. If the managed care plan or

  8  MediPass, as a result of the grievance process, approves an

  9  enrollee's request to disenroll, the agency is not required to

10  make a determination in the case.  The agency must make a

11  determination and take final action on a recipient's request

12  so that disenrollment occurs no later than the first day of

13  the second month after the month the request was made.  If the

14  agency fails to act within the specified timeframe, the

15  recipient's request to disenroll is deemed to be approved as

16  of the date agency action was required.  Recipients who

17  disagree with the agency's finding that cause does not exist

18  for disenrollment shall be advised of their right to pursue a

19  Medicaid fair hearing to dispute the agency's finding.

20         (j)  The agency shall apply for a federal waiver from

21  the Health Care Financing Administration to lock eligible

22  Medicaid recipients into a managed care plan or MediPass for

23  12 months after an open enrollment period. After 12 months'

24  enrollment, a recipient may select another managed care plan

25  or MediPass provider.  However, nothing shall prevent a

26  Medicaid recipient from changing primary care providers within

27  the managed care plan or MediPass program during the 12-month

28  period.

29         (k)  In order to provide increased access to managed

30  care, the agency may request from the Health Care Financing

31  Administration a waiver of the regulation requiring health


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  1  maintenance organizations to have one commercial enrollee for

  2  each three Medicaid enrollees.

  3         Section 4.  Paragraph (f) of subsection (12) and

  4  subsection (18) of section 409.910, Florida Statutes, are

  5  amended to read:

  6         409.910  Responsibility for payments on behalf of

  7  Medicaid-eligible persons when other parties are liable.--

  8         (12)  The department may, as a matter of right, in

  9  order to enforce its rights under this section, institute,

10  intervene in, or join any legal or administrative proceeding

11  in its own name in one or more of the following capacities:

12  individually, as subrogee of the recipient, as assignee of the

13  recipient, or as lienholder of the collateral.

14         (f)  Notwithstanding any provision in this section to

15  the contrary, in the event of an action in tort against a

16  third party in which the recipient or his or her legal

17  representative is a party which results in a and in which the

18  amount of any judgment, award, or settlement from a third

19  party, third-party benefits, excluding medical coverage as

20  defined in subparagraph 4., after reasonable costs and

21  expenses of litigation, is an amount equal to or less than 200

22  percent of the amount of medical assistance provided by

23  Medicaid less any medical coverage paid or payable to the

24  department, then distribution of the amount recovered shall be

25  distributed as follows:

26         1.  After attorney's fees and taxable costs as defined

27  by the Florida Rules of Civil Procedure, one-half of the

28  remaining recovery shall be paid to the department up to the

29  total amount of medical assistance provided by Medicaid.

30         2.  The remaining amount of the recovery shall be paid

31  to the recipient.


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  1         3.  For purposes of calculating the department's

  2  recovery of medical assistance benefits paid, the fee for

  3  services of an attorney retained by the recipient or his or

  4  her legal representative shall be calculated at 25 percent of

  5  the judgment, award, or settlement.

  6         4.  Notwithstanding any provision of this section to

  7  the contrary, the department shall be entitled to all medical

  8  coverage benefits up to the total amount of medical assistance

  9  provided by Medicaid.

10         1.  Any fee for services of an attorney retained by the

11  recipient or his or her legal representative shall not exceed

12  an amount equal to 25 percent of the recovery, after

13  reasonable costs and expenses of litigation, from the

14  judgment, award, or settlement.

15         2.  After attorney's fees, two-thirds of the remaining

16  recovery shall be designated for past medical care and paid to

17  the department for medical assistance provided by Medicaid.

18         3.  The remaining amount from the recovery shall be

19  paid to the recipient.

20         4.  For purposes of this paragraph, "medical coverage"

21  means any benefits under health insurance, a health

22  maintenance organization, a preferred provider arrangement, or

23  a prepaid health clinic, and the portion of benefits

24  designated for medical payments under coverage for workers'

25  compensation, personal injury protection, and casualty.

26         (18)  A recipient or his or her legal representative or

27  any person representing, or acting as agent for, a recipient

28  or the recipient's legal representative, who has notice,

29  excluding notice charged solely by reason of the recording of

30  the lien pursuant to paragraph (6)(d), or who has actual

31  knowledge of the department's rights to third-party benefits


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    CS for CS for SB 484                           First Engrossed



  1  under this section, who receives any third-party benefit or

  2  proceeds therefrom for a covered illness or injury, is

  3  required either to pay the department, within 60 days after

  4  receipt of settlement proceeds, the full amount of the

  5  third-party benefits, but not in excess of the total medical

  6  assistance provided by Medicaid, or to place the full amount

  7  of the third-party benefits in a trust account for the benefit

  8  of the department pending judicial or administrative

  9  determination of the department's right thereto. Proof that

10  any such person had notice or knowledge that the recipient had

11  received medical assistance from Medicaid, and that

12  third-party benefits or proceeds therefrom were in any way

13  related to a covered illness or injury for which Medicaid had

14  provided medical assistance, and that any such person

15  knowingly obtained possession or control of, or used,

16  third-party benefits or proceeds and failed either to pay the

17  department the full amount required by this section or to hold

18  the full amount of third-party benefits or proceeds in trust

19  pending judicial or administrative determination, unless

20  adequately explained, gives rise to an inference that such

21  person knowingly failed to credit the state or its agent for

22  payments received from social security, insurance, or other

23  sources, pursuant to s. 414.39(4)(b), and acted with the

24  intent set forth in s. 812.014(1).

25         (a)  The department is authorized to investigate and to

26  request appropriate officers or agencies of the state to

27  investigate suspected criminal violations or fraudulent

28  activity related to third-party benefits, including, without

29  limitation, ss. 409.325 and 812.014. Such requests may be

30  directed, without limitation, to the Medicaid Fraud Control

31  Unit of the Office of the Attorney General, or to any state


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    CS for CS for SB 484                           First Engrossed



  1  attorney. Pursuant to s. 409.913, the Attorney General has

  2  primary responsibility to investigate and control Medicaid

  3  fraud.

  4         (b)  In carrying out duties and responsibilities

  5  related to Medicaid fraud control, the department may subpoena

  6  witnesses or materials within or outside the state and,

  7  through any duly designated employee, administer oaths and

  8  affirmations and collect evidence for possible use in either

  9  civil or criminal judicial proceedings.

10         (c)  All information obtained and documents prepared

11  pursuant to an investigation of a Medicaid recipient, the

12  recipient's legal representative, or any other person relating

13  to an allegation of recipient fraud or theft is confidential

14  and exempt from s. 119.07(1):

15         1.  Until such time as the department takes final

16  agency action;

17         2.  Until such time as the Attorney General refers the

18  case for criminal prosecution;

19         3.  Until such time as an indictment or criminal

20  information is filed by a state attorney in a criminal case;

21  or

22         4.  At all times if otherwise protected by law.

23         Section 5.  Subsection (1) of section 414.28, Florida

24  Statutes, is amended to read:

25         414.28  Public assistance payments to constitute debt

26  of recipient.--

27         (1)  CLAIMS.--The acceptance of public assistance

28  creates a debt of the person accepting assistance, which debt

29  is enforceable only after the death of the recipient.  The

30  debt thereby created is enforceable only by claim filed

31  against the estate of the recipient after his or her death or


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    CS for CS for SB 484                           First Engrossed



  1  by suit to set aside a fraudulent conveyance, as defined in

  2  subsection (3). After the death of the recipient and within

  3  the time prescribed by law, the department may file a claim

  4  against the estate of the recipient for the total amount of

  5  public assistance paid to or for the benefit of such

  6  recipient, reimbursement for which has not been made.  Claims

  7  so filed shall take priority as class 3 class 7 claims as

  8  provided by s. 733.707(1)(g).

  9         Section 6.  Section 198.30, Florida Statutes, is

10  amended to read:

11         198.30  Circuit judge to furnish department with names

12  of decedents, etc.--Each circuit judge of this state shall, on

13  or before the 10th day of every month, notify the department

14  of the names of all decedents; the names and addresses of the

15  respective personal representatives, administrators, or

16  curators appointed; the amount of the bonds, if any, required

17  by the court; and the probable value of the estates, in all

18  estates of decedents whose wills have been probated or

19  propounded for probate before the circuit judge or upon which

20  letters testamentary or upon whose estates letters of

21  administration or curatorship have been sought or granted,

22  during the preceding month; and such report shall contain any

23  other information which the circuit judge may have concerning

24  the estates of such decedents. In addition, a copy of this

25  report shall be provided to the Agency for Health Care

26  Administration. A circuit judge shall also furnish forthwith

27  such further information, from the records and files of the

28  circuit court in regard to such estates, as the department may

29  from time to time require.

30         Section 7.  Subsection (1) of section 154.504, Florida

31  Statutes, is amended to read:


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    CS for CS for SB 484                           First Engrossed



  1         154.504  Eligibility and benefits.--

  2         (1)  Any county or counties may apply for a primary

  3  care for children and families challenge grant to provide

  4  primary health care services to children and families with

  5  incomes of up to 150 percent of the federal poverty level.

  6  Participants shall pay no monthly premium for participation,

  7  but shall be required to pay a copayment at the time a service

  8  is provided. Copayments may be paid from sources other than

  9  the participant, including, but not limited to, the child's or

10  parent's employer, or other private sources. As used in s.

11  766.1115, the term "copayment" may not be considered and may

12  not be used as compensation for services to health care

13  providers, and all funds generated from copayments shall be

14  used by the governmental contractor.

15         Section 8.  Section 381.0022, Florida Statutes, is

16  created to read:

17         381.0022  Sharing confidential or exempt

18  information.--Notwithstanding any other provision of law to

19  the contrary, the Department of Health and the Department of

20  Children and Family Services may share confidential

21  information or information exempt from disclosure under

22  chapter 119 on any individual who is or has been the subject

23  of a program within the jurisdiction of each agency.

24  Information so exchanged remains confidential or exempt as

25  provided by law.

26         Section 9.  Section 402.115, Florida Statutes, is

27  created to read:

28         402.115  Sharing confidential or exempt

29  information.--Notwithstanding any other provision of law to

30  the contrary, the Department of Health and the Department of

31  Children and Family Services may share confidential


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    CS for CS for SB 484                           First Engrossed



  1  information or information exempt from disclosure under

  2  chapter 119 on any individual who is or has been the subject

  3  of a program within the jurisdiction of each agency.

  4  Information so exchanged remains confidential or exempt as

  5  provided by law.

  6         Section 10.  Paragraph (e) is added to subsection (1)

  7  of section 414.028, Florida Statutes, to read:

  8         414.028  Local WAGES coalitions.--The WAGES Program

  9  State Board of Directors shall create and charter local WAGES

10  coalitions to plan and coordinate the delivery of services

11  under the WAGES Program at the local level. The boundaries of

12  the service area for a local WAGES coalition shall conform to

13  the boundaries of the service area for the regional workforce

14  development board established under the Enterprise Florida

15  workforce development board. The local delivery of services

16  under the WAGES Program shall be coordinated, to the maximum

17  extent possible, with the local services and activities of the

18  local service providers designated by the regional workforce

19  development boards.

20         (1)

21         (e)  A representative of a county health department or

22  a representative of a Healthy Start Coalition shall serve as

23  an ex officio, nonvoting member of the coalition.

24         Section 11.  Paragraph (a) of subsection (1) of section

25  766.101, Florida Statutes, is amended to read:

26         766.101  Medical review committee, immunity from

27  liability.--

28         (1)  As used in this section:

29         (a)  The term "medical review committee" or "committee"

30  means:

31


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    CS for CS for SB 484                           First Engrossed



  1         1.a.  A committee of a hospital or ambulatory surgical

  2  center licensed under chapter 395 or a health maintenance

  3  organization certificated under part I of chapter 641,

  4         b.  A committee of a state or local professional

  5  society of health care providers,

  6         c.  A committee of a medical staff of a licensed

  7  hospital or nursing home, provided the medical staff operates

  8  pursuant to written bylaws that have been approved by the

  9  governing board of the hospital or nursing home,

10         d.  A committee of the Department of Corrections or the

11  Correctional Medical Authority as created under s. 945.602, or

12  employees, agents, or consultants of either the department or

13  the authority or both,

14         e.  A committee of a professional service corporation

15  formed under chapter 621 or a corporation organized under

16  chapter 607 or chapter 617, which is formed and operated for

17  the practice of medicine as defined in s. 458.305(3), and

18  which has at least 25 health care providers who routinely

19  provide health care services directly to patients,

20         f.  A committee of a mental health treatment facility

21  licensed under chapter 394 or a community mental health center

22  as defined in s. 394.907, provided the quality assurance

23  program operates pursuant to the guidelines which have been

24  approved by the governing board of the agency,

25         g.  A committee of a substance abuse treatment and

26  education prevention program licensed under chapter 397

27  provided the quality assurance program operates pursuant to

28  the guidelines which have been approved by the governing board

29  of the agency,

30         h.  A peer review or utilization review committee

31  organized under chapter 440, or


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    CS for CS for SB 484                           First Engrossed



  1         i.  A committee of the Department of Health, a county

  2  health department, healthy start coalition, or certified rural

  3  health network, when reviewing quality of care, or employees

  4  of these entities when reviewing mortality records,

  5

  6  which committee is formed to evaluate and improve the quality

  7  of health care rendered by providers of health service or to

  8  determine that health services rendered were professionally

  9  indicated or were performed in compliance with the applicable

10  standard of care or that the cost of health care rendered was

11  considered reasonable by the providers of professional health

12  services in the area; or

13         2.  A committee of an insurer, self-insurer, or joint

14  underwriting association of medical malpractice insurance, or

15  other persons conducting review under s. 766.106.

16         Section 12.  Paragraph (i) is added to subsection (1)

17  of section 383.011, Florida Statutes, and subsection (2) of

18  that section is amended, to read:

19         383.011  Administration of maternal and child health

20  programs.--

21         (1)  The Department of Health is designated as the

22  state agency for:

23         (i)  Receiving federal funds for children eligible for

24  assistance through the child portion of the federal Child and

25  Adult Care Food Program, which is referred to as the Child

26  Care Food Program, and for establishing and administering this

27  program. The purpose of the Child Care Food Program is to

28  provide nutritious meals and snacks for children in

29  nonresidential day care. To ensure the quality and integrity

30  of the program, the department shall develop standards and

31  procedures that govern sponsoring organizations, day care


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    CS for CS for SB 484                           First Engrossed



  1  homes, child care centers, and centers that operate outside

  2  school hours. Standards and procedures must address the

  3  following:  participation criteria for sponsoring

  4  organizations, which may include administrative budgets,

  5  staffing requirements, requirements for experience in

  6  operating similar programs, operating hours and availability,

  7  bonding requirements, geographic coverage, and a required

  8  minimum number of homes or centers; procedures for

  9  investigating complaints and allegations of noncompliance;

10  application and renewal requirements; audit requirements; meal

11  pattern requirements; requirements for managing funds;

12  participant eligibility for free and reduced-price meals; food

13  storage and preparation; food service companies;

14  reimbursements; use of commodities; administrative reviews and

15  monitoring; training requirements; recordkeeping requirements;

16  and criteria pertaining to imposing sanctions and penalties,

17  including the denial, termination, and appeal of program

18  eligibility.

19         (2)  The Department of Health shall follow federal

20  requirements and may adopt any rules necessary for the

21  implementation of the maternal and child health care program,

22  or the WIC program, and the Child Care Food Program. With

23  respect to the Child Care Food Program, the department shall

24  adopt rules that interpret and implement relevant federal

25  regulations, including 7 C.F.R., part 226. The rules must

26  address at least those program requirements and procedures

27  identified in paragraph (1)(i).

28         Section 13.  Section 383.04, Florida Statutes, is

29  amended to read:

30         383.04  Prophylactic required for eyes of

31  infants.--Every physician, midwife, or other person in


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    CS for CS for SB 484                           First Engrossed



  1  attendance at the birth of a child in the state is required to

  2  instill or have instilled into the eyes of the baby within 1

  3  hour after birth an effective prophylactic recommended by the

  4  Committee on Infectious Diseases of the American Academy of

  5  Pediatrics a 1-percent fresh solution of silver nitrate (with

  6  date of manufacture marked on container), two drops of the

  7  solution to be dropped into each eye after the eyelids have

  8  been opened, or some equally effective prophylactic approved

  9  by the Department of Health, for the prevention of neonatal

10  blindness from ophthalmia neonatorum. This section does shall

11  not apply to cases where the parents shall file with the

12  physician, midwife, or other person in attendance at the birth

13  of a child written objections on account of religious beliefs

14  contrary to the use of drugs.  In such case the physician,

15  midwife, or other person in attendance shall maintain a record

16  that such measures were or were not employed and attach

17  thereto any written objection.

18         Section 14.  Section 383.05, Florida Statutes, is

19  repealed.

20         Section 15.  Section 409.903, Florida Statutes, is

21  amended to read:

22         409.903  Mandatory payments for eligible persons.--The

23  agency department shall make payments for medical assistance

24  and related services on behalf of the following persons who

25  the agency department determines to be eligible, subject to

26  the income, assets, and categorical eligibility tests set

27  forth in federal and state law.  Payment on behalf of these

28  Medicaid eligible persons is subject to the availability of

29  moneys and any limitations established by the General

30  Appropriations Act or chapter 216.

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  1         (1)  Low-income families with children are eligible for

  2  Medicaid provided they meet the following requirements:

  3  Persons who receive payments from or are determined eligible

  4  to participate in the WAGES Program, and certain persons who

  5  would be eligible but do not meet certain technical

  6  requirements. This group includes, but is not limited to:

  7         (a)  The family includes a dependent child who is

  8  living with a caretaker relative. Low-income, single-parent

  9  families and their children.

10         (b)  The family's income does not exceed the gross

11  income test limit. Low-income, two-parent families in which at

12  least one parent is disabled or otherwise incapacitated.

13         (c)  The family's countable income and resources do not

14  exceed the applicable aid-to-families-with-dependent-children

15  (AFDC) income and resource standards under the AFDC state plan

16  in effect in July 1996, except as amended in the Medicaid

17  state plan to conform as closely as possible to the

18  requirements of the WAGES Program as created in s. 414.015, to

19  the extent permitted by federal law. Certain unemployed

20  two-parent families and their children.

21         (2)  A person who receives payments from, who is

22  determined eligible for, or who was eligible for but lost cash

23  benefits from the federal program known as the Supplemental

24  Security Income program (SSI).  This category includes a

25  low-income person age 65 or over and a low-income person under

26  age 65 considered to be permanently and totally disabled.

27         (3)  A child under age 21 living in a low-income,

28  two-parent family, and a child under age 7 living with a

29  nonrelative, if the income and assets of the family or child,

30  as applicable, do not exceed the resource limits under the

31  WAGES Program.


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  1         (4)  A child who is eligible under Title IV-E of the

  2  Social Security Act for subsidized board payments, foster

  3  care, or adoption subsidies, and a child for whom the state

  4  has assumed temporary or permanent responsibility and who does

  5  not qualify for Title IV-E assistance but is in foster care,

  6  shelter or emergency shelter care, or subsidized adoption.

  7         (5)  A pregnant woman for the duration of her pregnancy

  8  and for the post partum period as defined in federal law and

  9  rule, or a child under age 1, if either is living in a family

10  that has an income which is at or below 150 percent of the

11  most current federal poverty level, or, effective January 1,

12  1992, that has an income which is at or below 185 percent of

13  the most current federal poverty level.  Such a person is not

14  subject to an assets test. Further, a pregnant woman who

15  applies for eligibility for the Medicaid program through a

16  qualified Medicaid provider must be offered the opportunity,

17  subject to federal rules, to be made presumptively eligible

18  for the Medicaid program.

19         (6)  A child born after September 30, 1983, living in a

20  family that has an income which is at or below 100 percent of

21  the current federal poverty level, who has attained the age of

22  6, but has not attained the age of 19.  In determining the

23  eligibility of such a child, an assets test is not required.

24         (7)  A child living in a family that has an income

25  which is at or below 133 percent of the current federal

26  poverty level, who has attained the age of 1, but has not

27  attained the age of 6.  In determining the eligibility of such

28  a child, an assets test is not required.

29         (8)  A person who is age 65 or over or is determined by

30  the agency department to be disabled, whose income is at or

31  below 100 percent of the most current federal poverty level


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    CS for CS for SB 484                           First Engrossed



  1  and whose assets do not exceed limitations established by the

  2  agency department.  However, the agency department may only

  3  pay for premiums, coinsurance, and deductibles, as required by

  4  federal law, unless additional coverage is provided for any or

  5  all members of this group by s. 409.904(1).

  6         Section 16.  The amount of $2 million is appropriated

  7  from tobacco settlement revenues to the Grants and Donations

  8  Trust Fund of the Agency for Health Care Administration to be

  9  matched at an appropriate level with federal Medicaid funds

10  available under Title XIX of the Social Security Act to

11  provide prosthetic and orthotic devices for Medicaid

12  recipients when such devices are prescribed by licensed

13  practitioners participating in the Medicaid program.

14         Section 17.  This act shall take effect July 1, 1998.

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