Title of Rule:	Cash Accounting, Section 8.042	
Rule Number:	MSB 07-08-24-D	
Division / Contact / Phone:	Controller's Division / Adel Soliman / 303-866-2764	

SECRETARY OF STATE
RULES ACTION SUMMARY AND FILING INSTRUCTIONS

SUMMARY OF ACTION ON RULE(S)

1.	Department / Agency Name:	Health Care Policy and Financing / Medical Services Board	
2.	Title of Rule:	MSB 07-08-24-D, Cash Accounting, Section 8.042	
3.	This action is an adoption of:	an amendment	
4.	Rule sections affected in this action (if existing rule, also give Code of Regulations number and page numbers affected): 	
Sections(s) 8.042, Colorado Department of Health Care Policy and Financing, Staff Manual Volume 8, Medical Assistance (10 CCR 2505-10).	
5.	Does this action involve any temporary or emergency rule(s)?	No	
If yes, state effective date:		
Is rule to be made permanent? (If yes, please attach notice of hearing).	Yes	

PUBLICATION INSTRUCTIONS*

Please replace current text at § 8.042 CASH ACCOUNTING with the new text provided.  This change is effective 12/30/2007.

Title of Rule:	Cash Accounting, Section 8.042	
Rule Number:	MSB 07-08-24-D	
Division / Contact / Phone:	Controller's Division / Adel Soliman / 303-866-2764	
STATEMENT OF BASIS AND PURPOSE

1.	Summary of the basis and purpose for the rule or rule change.  (State what the rule says or does and explain why the rule or rule change is necessary).	
To comply with SB 07-133.  SB 07-133 requires the Department to utilize the cash system of accounting, regardless of the source of revenues involved, for the Old Age Pension (OAP) Health and Medical Care Programs, the Children’s Basic Health Plan (CBHP), and the clawback provision of the federal Medicaid Modernization Act (MMA) of 2003 State Contribution Payment.	
2.	An emergency rule-making is imperatively necessary	
	to comply with state or federal regulation and/or	
	for the preservation of public health, safety and welfare.	
Explain:	
     	
3.	Federal authority for the Rule, if any:	
      	
4.	State Authority for the Rule:	
25.5-1-301 through 25.5-1-303, C.R.S. (2006);
SB 07-133	

Title of Rule:	Cash Accounting, Section 8.042	
Rule Number:	MSB 07-08-24-D	
Division / Contact / Phone:	Controller's Division / Adel Soliman / 303-866-2764	
REGULATORY ANALYSIS

1.	Describe the classes of persons who will be affected by the proposed rule, including classes that will bear the costs of the proposed rule and classes that will benefit from the proposed rule.
No clients or providers will be affected by this rule because it is only a clarification of when expenditures are counted against the State budget.  There is no impact to services.
2.	To the extent practicable, describe the probable quantitative and qualitative impact of the proposed rule, economic or otherwise, upon affected classes of persons.
No classes of persons are affected so there is no quantitative or qualitative impact.
3.	Discuss the probable costs to the Department and to any other agency of the implementation and enforcement of the proposed rule and any anticipated effect on state revenues.
SB 07-133 created a saving of $7.2 Million of general Fund in State Fiscal Year 07-08.  This rule is a change in accounting only.
4.	Compare the probable costs and benefits of the proposed rule to the probable costs and benefits of inaction.
The Department's Controller's Division and the Budget Division will absorb the administrative cost related to the implementation of SB 07-133.
5.	Determine whether there are less costly methods or less intrusive methods for achieving the purpose of the proposed rule.
This rule implements SB 07-133 exactly as expected.  There are no other less costly or less intrusive methods.
6.	Describe any alternative methods for achieving the purpose for the proposed rule that were seriously considered by the Department and the reasons why they were rejected in favor of the proposed rule.
This rule is a simple accounting change that is being implemented exactly as expected by the General Assembly.

8.042	UTILIZATION OF A CASH SYSTEM OF ACCOUNTING
8.042.1	PROGRAMS UTILIZING THE CASH SYSTEM OF ACCOUNTING
Effective Fiscal Year 05-06 and ongoing, The Department shall utilize the cash system of accounting regardless of the source of revenues involved, for the following appropriations:
A.	Medical Services Premiums Long Bill group.
B.	Medicaid Mental Health Community Programs Long Bill group.
C.	Medical Programs administered by the Department of Human Services except for the administration of such programs.  This includes the following Long Bill line items:
1.	Child Welfare Services
2.	Mental Health Community Programs, Goebel Lawsuit Settlement
3.	Residential Treatment for Youth (H.B. 99-1116)
4.	Mental Health Institutes
5.	Alcohol and Drug Abuse Division, High Risk Pregnant Women Program
6.	Community Services Adult Program Costs and CCMS Replacement – Medicaid Funding
7.	Federally – matched Local Program Costs
8.	Regional Centers – Medicaid Funding
9.	Services for Children and Families – Medicaid Funding 
10.	Division of Youth Corrections – Medicaid Funding
D.	Nurse Home Visitor Program Long Bill line item.
E.	SB 97-101 Public School Health Services Long Bill line item.
F.	University of Colorado Family Medicine Residency Training Programs Long Bill line item.

8.042.2	PROGRAMS UTILIZING THE CASH SYSTEM OF ACCOUNTING
Effective Fiscal Year 07-08 and ongoing, The Department shall utilize the cash system of accounting regardless of the source of revenues involved, for the following appropriations:
A.	Services for Old Age Pension State Program Clients.
B.	Children’s Basic Health Plan Premium Costs and Dental Benefit Costs.
C.	Medicare Modernization Act of 2003 State Contribution Payment.