(5) SHALL INITIATE CONDUCT AN AUDIT OF EACH PRIVATE PROVIDER
EVERY 4 YEARS.

(I) THE ADMINISTRATION SHALL ACCEPT AS FINAL THE PRIVATE PROVIDER'S
YEAR-END REPORT IF:

(1) THE ADMINISTRATION FAILS TO PROVIDE WRITTEN APPROVAL OR A
WRITTEN EXPLANATION OF THE ANY ITEMS IN DISPUTE WITHIN 1 YEAR AFTER
RECEIVING THE REPORT; OR

(2) THE ADMINISTRATION FAILS TO RECONCILE THE YEAR-END REPORT
WITHIN 1 YEAR AFTER RECEIVING THE REPORT.

(J) IF THE ADMINISTRATION FAILS TO INITIATE CONDUCT AN AUDIT OF A
PRIVATE PROVIDER AS REQUIRED IN SUBSECTION (H)(5) OF THIS SECTION, THE
ADMINISTRATION MAY NOT AUDIT THE PRIVATE PROVIDER FOR ANY FISCAL YEAR
THAT BEGAN MORE THAN 48 MONTHS BEFORE THE ADMINISTRATION'S
NOTIFICATION OF AUDIT, UNLESS THE ADMINISTRATION SUSPECTS FRAUD OR
MISAPPROPRIATION OF FUNDS.

(K) PRIVATE PROVIDERS SHALL PROVIDE THE YEAR-END REPORT TO THE
ADMINISTRATION NO LATER THAN 6 MONTHS AFTER THE END OF THE STATE FISCAL
YEAR

SECTION 2. AND BE IT FURTHER ENACTED, That notwithstanding any
other provision of law, for fiscal year 2000, general funds appropriated in connection
with the Waiting List Initiative within the Developmental Disabilities Administration
of the Department of Health and Mental Hygiene that remain unexpended at the end
of the fiscal year shall not revert to the General Fund and shall remain available for
expenditure on the Waiting List Initiative in the subsequent fiscal year.

SECTION 3. AND BE IT FURTHER ENACTED, That the process established
by this Act for the Developmental Disabilities Administration review of private
provider submitted year-end reports, begin with the reports required at the end of
the 1999 fiscal year.

SECTION 2. 4. AND BE IT FURTHER ENACTED, That this Act shall take
effect October July 1, 1999.

Approved April 27, 1999.

CHAPTER 205
(House Bill 69)

AN ACT concerning

Assisted Living Programs - Licensure and Inspections

FOR the purpose of providing that the term of licensure for an assisted living
program is 2 years; requiring the Department of Health and Mental Hygiene to