ENGROSSED

Senate Bill No. 138

(By Senators Tomblin (Mr. President) and Sprouse

By Request of the Executive)

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[Introduced January 14, 1999;

referred to the Committee on Health and Human Resources;

and then to the Committee on Finance.]

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A BILL to amend and reenact section six-a, article ten-a, chapter eighteen of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to removing the requirement that the division of vocational rehabilitation transfer disproportionate share hospital funds received by the division to the medical services trust fund.

Be it enacted by the Legislature of West Virginia:
That section six-a, article ten-a, chapter eighteen of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
ARTICLE 10A. REHABILITATION SERVICES.
ยง18-10A-6a. West Virginia rehabilitation services special account; expenditures.

(a) There is hereby established in the state treasury a separate account which shall be designated the "West Virginia rehabilitation center special account" "West Virginia rehabilitation services special account". The director of vocational rehabilitation services shall deposit promptly into the account all fees received for services provided by the West Virginia rehabilitation center from whatever source, including the federal government, state government or from other third- party payers or personal payments.
(b) A five-year West Virginia rehabilitation center services long-range plan shall be developed by the director and shall be adopted by the secretary of education and the arts. The West Virginia rehabilitation center's services' long-range plan shall be updated and revised at least every two years.
(c) The director is authorized to expend the moneys deposited in the West Virginia rehabilitation center special account West Virginia rehabilitation services special account in accordance with federal laws and regulations and with the laws of this state as is necessary for the development of the five-year center long-range plan and subsequent revisions. Provided, That all disproportionate share hospital funds received into the account shall be transferred by intergovernmental transfer to the medical services trust fund created in section two-a, article four-a, chapter nine of this code, except for funds appropriated by the Legislature for other purposes within the annual budget bill
(d)(d) Except for disproportionate share hospital funds transferred pursuant to subsection (c) of this section, the The director is authorized to expend the moneys deposited in the West Virginia rehabilitation center special account West Virginia rehabilitation services special account as provided in the center's long-range plan at such times and in such amounts as the director determines to be necessary for the purpose of maintaining or improving the delivery of rehabilitation center services: or for the purpose of maintaining or obtaining certification at the rehabilitation center Provided, That during the budget preparation period which occurs prior to the convening of the Legislature, the director shall submit for inclusion in the executive budget document and budget bill his recommended capital expenditures, recommended priorities, estimated costs and request for appropriations for maintaining or improving the delivery of vocational rehabilitation services. and for maintaining or obtaining certification at the rehabilitation center in such amounts as the director determines to be necessary to implement the five-year rehabilitation center long-range plan and any subsequent revisions thereto
(e) The director shall make an annual report to the Legislature on the status of the rehabilitation center revenue account West Virginia rehabilitation services special account, including the previous year's expenditures and projected expenditures for the next year.

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(NOTE: The purpose of this bill is to eliminate the provision that Disproportionate Share funds received by the Division of Rehabilitation Services for meeting the 1% utilization requirement at the Rehabilitation Hospital be transferred to the Medical Services Trust Fund. The U.S. Department of Education has determined that this money must be counted as earned program income to the Division of Rehabilitation Services or the Division will lose substantial federal funds leading to severe financial reductions in their programs. Minor technical changes were also made.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.)