Sec. 1. 22 MRSA §3104, sub-§4, as enacted by PL 1979, c. 386, is amended to read:

4. Mail issuance of coupons. The department shall institute a system of mail issuance of food stamp allotments through a direct coupon mailing system as authorized by and in conformity with regulations promulgated by the United States Department of Agriculture.

In those areas of the State where the department can document evidence of significant diminution of client demand or of loss of significant numbers of coupons, the department may, after notice and hearing, establish an alternative system of food stamp issuance, including contracting with faith-based organization as defined in Section 104 of the federal Personal Responsibilities and Work Opportunity Reconciliation Act of 1996, Public Law 104- 193, 1120 Stat. 2105.

Sec. 2. 22 MRSA §3173, last ¶, as enacted by PL 1997, c. 676, §1, is amended to read:

The department may enter into contracts with health care servicing entities for the provision, financing, management and oversight of the delivery of health care services in order to carry out these programs. For the purposes of this section, "health care servicing entity" means a partnership, association, corporation, limited liability company, faith-based organization as defined in Section 104 of the federal Personal Responsibilities and Work Opportunity Reconciliation Act of 1996, Public Law 104-193, 110 Stat. 2105 42 USC 604a or other legal entity that enters into a contract to provide or arrange for the provision of a defined set of health care services; to assume responsibility for some aspects of quality assurance, utilization review, provider credentialing and provider relations or other related network management functions; and to assume financial risk for provision of such services to recipients through capitation reimbursement or other risk-sharing arrangements. "Health care servicing entity" does not include insurers or health maintenance organizations. In all contracts with health care servicing entities, the department shall include standards, developed in consultation with the Superintendent of Insurance, to be met by the contracting entity in the areas of financial solvency, quality assurance, utilization review, network sufficiency, access to services, network performance, complaint and grievance procedures and records maintenance. Prior to contracting with any health care servicing entity, the department must have in place a memorandum of understanding with the Superintendent of Insurance for the provision of technical