FORTY-THIRD LEGISLATURE
                        SECOND SESSION, 1998
  
  
                                                 February 5, 1998
  
  
  Mr. Speaker:
  
       Your BUSINESS AND INDUSTRY COMMITTEE, to whom has
  been referred
  
                        HOUSE BILL 287
  
  has had it under consideration and reports same with
  recommendation that it DO PASS, amended as follows:
  
       1. On page 2, strike lines 19 through 22 and insert in
  lieu thereof:
  
            "A.  Consistent with the terms of any contract
  between the department and a medicaid provider, the secretary
  shall have the right to be afforded access to such of the
  medicaid provider's records and personnel, as well as its
  subcontracts and that subcontractor's records and personnel,
  as may be necessary to ensure that the medicaid provider is
  complying with the terms of its contract with the
  department.".
  
       2.  On page 2, line 23, strike "The" and insert in lieu
  thereof "Upon not less than seven days written notice to a
  medicaid provider, the".
  
       3.  On page 3, strike lines 3 and 4.
  
       4.  Renumber succeeding paragraphs accordingly.
  
       5.   On page 3, line 11, after "(4)" insert
  "intentionally or with reckless disregard".
  
       6.  On page 3, line 15, after "(5)" insert "intentionally
  or with reckless disregard".
  
       7.  On page 4, line 1, strike "After" and insert in lieu
  thereof "Subject to the provisions of Subsection D of this
  section, after".
  
       8.  On page 4, line 8, strike "ten thousand dollars
  ($10,000)" and insert in lieu thereof "five thousand dollars
  ($5,000)".
  
       9.  On page 4, line 10, strike "occurrence of each" and
  insert in lieu thereof "separate occurrence of such".
  
       10.  On page 5, line 3, strike ", in which case the
  provider:" and insert in lieu thereof "pursuant to the terms
  of that contract.".
  
       11.  On page 5, strike lines 4 through 21 and insert in
  lieu thereof:
  
            "D.  If a contract between the department and a
  medicaid provider explicitly specifies a dispute resolution
  mechanism for use in resolving disputes over performance of
  that contract, the dispute resolution mechanism specified in
  the contract shall be used to resolve such disputes in lieu of
  the mechanism set forth in Subsection C of this section.
  
            E.  If a medicaid provider's contract so specifies
  the medicaid provider shall have the right to seek de novo
  review in district court of any decision by the secretary
  regarding a contractual dispute.".
  
       12.  On page 5, line 24, strike "five" and insert in lieu
  thereof "six".
  
       13.  On page 5, line 25, and page 6, line 1, strike
  "relating to" and insert in lieu thereof "that are necessary
  to verify the".
  
       14.  On page 6, line 2, after "recipient" insert "for
  which the medicaid provider received payment from the
  department to provide that benefit or service".
  
       15.  On page 6, line 4, after "recipient" insert "for
  which the medicaid provider received payment from the
  department to provide that benefit or service".
  
       16.  On page 6, lines 7 and 8, strike "or used for its
  administration" and insert in lieu thereof "under any contract
  between the department and the medicaid provider".
  
       17.  On page 6, line 9, strike "medicaid or".
  
       
  
  
       18.  On page 6, line 14, after "request" insert "unless
  the records are held by a subcontractor, agent or satellite
  office, in which case the records shall be made available
  within ten business days after the date of the request".
  
       19.  On page 6, between lines 22 and 23, insert the
  following new section:
  
       "Section 6.  EFFECTIVE DATE.--
  
            A.  The provisions of the Medicaid Provider Act
  shall become effective for all initial contracts between the
  department and a managed care organization that are executed
  following any managed care procurement performed by the
  department that takes place on or after July 1, 1998.
  
            B.  For all contracts between the department and any
  medicaid provider that is not a managed care organization, the
  provisions of the Medicaid Provider Act shall become effective
  on July 1, 1998.".,
  
  
  and thence referred to the JUDICIARY COMMITTEE.
  
                                Respectfully submitted,
  
  
  
                                                                 
                                                              Fred Luna, Chairman
  
  
                                     Adopted                            Not Adopted                         
            (Chief Clerk)                      (Chief Clerk)
  
                        Date                
  
  The roll call vote was  9  For  0  Against
  Yes:      9
            Excused:  Alwin, Hobbs, J.G. Taylor
            Absent:   Getty
  
  
  .122969A.1
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