ALERT:

The General Assembly passed two identical companion bills, H-7204 Sub A/2 and S-

2072/ Sub A/2, on June 13, 2024. Due to a clerical error, a paper copy of an incorrect

version of H-7204 Sub A (which was assigned the public law number P.L. 2024, ch.

423), was erroneously stamped as passed by both houses. The language contained in

the erroneously stamped version of the bill was never presented to, considered by, or

voted on by either chamber of the General Assembly. The erroneously stamped bill

was then improperly presented to the Governor on June 20, 2024, who took no action

on the bill. The language contained in P.L. 2024, ch. 423, per the Law Revision Office,

has not passed either house of the General Assembly and was therefore improperly

presented to the Governor.

Chapter 423
2024 -- H 7204 SUBSTITUTE A
Enacted 06/28/2024

A N   A C T
RELATING TO HEALTH AND SAFETY -- DEPARTMENT OF HEALTH

Introduced By: Representatives Shallcross Smith, Ajello, McEntee, Cortvriend, Fenton-Fung, and Fogarty

Date Introduced: January 17, 2024

It is enacted by the General Assembly as follows:
     SECTION 1. Section 42-7.4-3 of the General Laws in Chapter 42-7.4 entitled "The
Healthcare Services Funding Plan Act" is hereby amended to read as follows:
     42-7.4-3. Imposition of healthcare services funding contribution.
     (a) Each insurer is required to pay the healthcare services funding contribution for each
contribution enrollee of the insurer at the time the contribution is calculated and paid, at the rate set
forth in this section.
     (1) Beginning January 1, 2016 July 1, 2024, the secretary shall set the healthcare services
funding contribution each fiscal year in an amount equal to: (i) The child immunization funding
requirement described in § 23-1-46; plus (ii) The adult immunization funding requirement
described in § 23-1-46; plus (iii) The children’s health services funding requirement described in §
42-12-29; plus (iv) The psychiatry resource network funding requirement described in § 23-1-46.1
and all as divided by; (iv)(v) The number of contribution enrollees of all insurers.
     (2) The contribution set forth herein shall be in addition to any other fees or assessments
upon the insurer allowable by law.
     (b) The contribution shall be paid by the insurer; provided, however, a person providing
health benefits coverage on a self-insurance basis that uses the services of a third-party
administrator shall not be required to make a contribution for a contribution enrollee where the
contribution on that enrollee has been or will be made by the third-party administrator.
     (c) The secretary shall create a process to facilitate the transition to the healthcare services
funding contribution method that: (i) assures adequate funding beginning July 1, 2016, (ii) reflects
that funding via the healthcare services funding contribution method initially will be for only a
portion of the state’s fiscal year, and (iii) avoids duplicate liability for any insurer that made a
payment under the premium assessment method in effect prior to January 1, 2016, for a period for
which it would also be liable for a contribution under the healthcare services funding contribution
method as described in this chapter.
     SECTION 2. Section 23-1-45 of the General Laws in Chapter 23-1 entitled "Department
of Health" is hereby amended to read as follows:
     23-1-45. Immunization account.
     (a) There is created within the general fund a restricted receipt account to be known as the
“childhood immunization account”. All money in the account shall be utilized by the department
of health to effectuate the provisions of § 23-1-44 that relate to the childhood immunization
program. All money received pursuant to §§ 23-1-46 and 23-1-47 for the childhood immunization
program shall be deposited in the childhood immunization account. Funding dedicated exclusively
to effectuate the provisions of § 23-1-44 and this subsection received by the department of health
from sources other than those identified in §§ 23-1-46 and 23-1-47 may also be deposited in the
childhood immunization account. Up to 15% of the annual revenues from this account may be used
to support costs associated with childhood immunization program administrative and quality
assurance services and KIDSNET. The general treasurer is authorized and directed to draw his or
her orders on the account upon receipt of properly authenticated vouchers from the department of
health. Provided that for FY 2025 only, the department shall use up to eight hundred fifty thousand
dollars ($850,000) of available resources from the account to effectuate coverage for the following
services: the existing PediPRN and MomsPRN information lines together with any additional
information line, referral service, or hotline which is available to providers or residents in the state,
and which is funded pursuant to regulation adopted by the director of the department of health. The
department must submit a report to the speaker of the house and senate president no later than
March 1, 2025, regarding use of these funds as well as recommendations for support beyond FY
2025.
     (b) There is created within the general fund a restricted receipt account to be known as the
“pandemic medications and equipment account” for the purposes of funding pandemic medications
and equipment. There shall be an expenditure in FY 2007 not to exceed one million dollars
($1,000,000) for pandemic influenza medications and equipment. Funding dedicated exclusively
to effectuate the provisions of this subsection and received by the department of health from sources
other than those identified in §§ 23-1-45, 23-1-46 and 23-1-47 may also be deposited in the
pandemic medications and equipment account. The general treasurer is authorized and directed to
draw his or her orders on the account upon receipt of properly authenticated vouchers from the
department of health.
     (c) There is created within the general fund a restricted receipt account to be known as the
“adult immunization account”. All funds in the account shall be utilized by the department of health
to effectuate the provisions of § 23-1-44 that relate to the adult immunization program. All funds
received for adult immunization programs pursuant to §§ 23-1-46 and 23-1-47 shall be deposited
in the adult immunization account. Funding dedicated exclusively to effectuate the provisions of
this subsection and received by the department of health from sources other than those identified
in §§ 23-1-46 and 23-1-47 may also be deposited in the adult immunization account. The general
treasurer is authorized and directed to draw his or her orders on the account upon receipt of properly
authenticated vouchers from the department of health. Provided that for FY 2025 only, the
department shall use up to eight hundred fifty thousand dollars ($850,000) of available resources
from the account to effectuate coverage for the following services: the existing PediPRN and
MomsPRN information lines together with any additional information line, referral service, or
hotline which is available to providers or residents in the state, and which is funded pursuant to
regulation adopted by the director of the department of health. The department must submit a report
to the speaker of the house and senate president no later than March 1, 2025, regarding use of these
funds as well as recommendations for support beyond FY 2025.
     SECTION 3. Chapter 23-1 of the General Laws entitled "Department of Health" is hereby
amended by adding thereto the following section:
     23-1-46.1. Psychiatry resource network account (Effective July 1, 2024).
     (a) There is created within the general fund a restricted receipt account to be known as the
"PRN account." All money in the account shall be utilized by the department of health to effectuate
coverage for the following services: Existing Rhode Island lines including the PediPRN and
MomsPRN information lines together with any additional information line, referral service, or
hotline which is available to providers or residents in the state, and which is funded pursuant to
regulation adopted by the director of the department of health. Amounts collected pursuant to § 42-
7.4-3(a)(1)(iv) shall be deposited in the "PRN account." The funds shall be used solely for the
purposes of the "PRN account," and no other.
     (b) Each year's psychiatry resource network funding requirement in § 42-7.4-3(a)(1)(iv)
shall be the amount:
     (1) Projected by the department of health for the services in subsection (a) of this section;
plus
     (2) A ten percent (10%) contingency for unexpected expenses; and after
     (3) Deduction for any projected carryover of excess funds from prior assessments.
     (c) The department of health shall submit to the general assembly an annual report on the
program and costs related to the program, on or before February 1 of each year. The department
shall make available to each insurer required to make a contribution pursuant to § 42-7.4-3, upon
its request, detailed information regarding the programs described in subsection (a) of this section
and the costs related to those programs.
     (d) The "PRN account" shall be exempt from the indirect costs recovery provisions of §
35-4-27.
     SECTION 4. Section 35-4-27 of the General Laws in Chapter 35-4 entitled "State Funds"
is hereby amended to read as follows:
     35-4-27. Indirect cost recoveries on restricted receipt accounts.
     Indirect cost recoveries of ten percent (10%) of cash receipts shall be transferred from all
restricted-receipt accounts, to be recorded as general revenues in the general fund. However, there
shall be no transfer from cash receipts with restrictions received exclusively: (1) From contributions
from nonprofit charitable organizations; (2) From the assessment of indirect cost-recovery rates on
federal grant funds; or (3) Through transfers from state agencies to the department of administration
for the payment of debt service. These indirect cost recoveries shall be applied to all accounts,
unless prohibited by federal law or regulation, court order, or court settlement. The following
restricted receipt accounts shall not be subject to the provisions of this section:
     Executive Office of Health and Human Services
     Organ Transplant Fund
     HIV Care Grant Drug Rebates
     Health System Transformation Project
     Rhode Island Statewide Opioid Abatement Account
     HCBS Support-ARPA
     HCBS Admin Support-ARPA
     Department of Human Services
     Veterans’ home — Restricted account
     Veterans’ home — Resident benefits
     Pharmaceutical Rebates Account
     Demand Side Management Grants
     Veteran’s Cemetery Memorial Fund
     Donations — New Veterans’ Home Construction
     Department of Health
     Pandemic medications and equipment account
     Miscellaneous Donations/Grants from Non-Profits
     State Loan Repayment Match
     Healthcare Information Technology
     Healthcare services funding accounts for the psychiatry resource network (PRN)
     Department of Behavioral Healthcare, Developmental Disabilities and Hospitals
     Eleanor Slater non-Medicaid third-party payor account
     Hospital Medicare Part D Receipts
     RICLAS Group Home Operations
     Commission on the Deaf and Hard of Hearing
     Emergency and public communication access account
     Department of Environmental Management
     National heritage revolving fund
     Environmental response fund II
     Underground storage tanks registration fees
     De Coppet Estate Fund
     Rhode Island Historical Preservation and Heritage Commission
     Historic preservation revolving loan fund
     Historic Preservation loan fund — Interest revenue
     Department of Public Safety
     E-911 Uniform Emergency Telephone System
     Forfeited property — Retained
     Forfeitures — Federal
     Forfeited property — Gambling
     Donation — Polygraph and Law Enforcement Training
     Rhode Island State Firefighter’s League Training Account
     Fire Academy Training Fees Account
     Attorney General
     Forfeiture of property
     Federal forfeitures
     Attorney General multi-state account
     Forfeited property — Gambling
     Department of Administration
     OER Reconciliation Funding
     Health Insurance Market Integrity Fund
     RI Health Benefits Exchange
     Information Technology restricted receipt account
     Restore and replacement — Insurance coverage
     Convention Center Authority rental payments
     Investment Receipts — TANS
     OPEB System Restricted Receipt Account
     Car Rental Tax/Surcharge-Warwick Share
     Grants Management Administration
     RGGI-Executive Climate Change Coordinating Council Projects
     Executive Office of Commerce
     Housing Resources Commission Restricted Account
     Housing Production Fund
     Department of Revenue
     DMV Modernization Project
     Jobs Tax Credit Redemption Fund
     Legislature
     Audit of federal assisted programs
     Department of Children, Youth and Families
     Children’s Trust Accounts — SSI
     Military Staff
     RI Military Family Relief Fund
     RI National Guard Counterdrug Program
     Treasury
     Admin. Expenses — State Retirement System
     Retirement — Treasury Investment Options
     Defined Contribution — Administration - RR
     Violent Crimes Compensation — Refunds
     Treasury Research Fellowship
     Business Regulation
     Banking Division Reimbursement Account
     Office of the Health Insurance Commissioner Reimbursement Account
     Securities Division Reimbursement Account
     Commercial Licensing and Racing and Athletics Division Reimbursement Account
     Insurance Division Reimbursement Account
     Historic Preservation Tax Credit Account
     Marijuana Trust Fund
     Social Equity Assistance Fund
     Judiciary
     Arbitration Fund Restricted Receipt Account
     Third-Party Grants
     RI Judiciary Technology Surcharge Account
     Department of Elementary and Secondary Education
     Statewide Student Transportation Services Account
     School for the Deaf Fee-for-Service Account
     School for the Deaf — School Breakfast and Lunch Program
     Davies Career and Technical School Local Education Aid Account
     Davies — National School Breakfast & Lunch Program
     School Construction Services
     Office of the Postsecondary Commissioner
     Higher Education and Industry Center
     IGT STEM Scholarships
     Department of Labor and Training
     Job Development Fund
     Rhode Island Council on the Arts
     Governors’ Portrait Donation Fund
     Statewide records management system account
     SECTION 5. This act shall take effect on July 1, 2024.
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LC004248/SUB A
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