Sec. A-2. Appropriation. The following funds are appropriated from the General Fund to carry out the purposes of this Part.

2001-02

TREASURER OF STATE,

OFFICE OF

Debt Service - Treasury

All Other $5,000,000

Provides funds to meet the debt service payments related to a $100,000,000 tax anticipation note authority for fiscal year 2001-02.

PART B

Sec. B-1. 22 MRSA §258, sub-§8 is enacted to read:

8.__Transition.__When benefits are not available under this section, the commissioner may provide benefits under pharmaceutical benefits programs that were in effect on May 26, 2001.

Sec. B-2. Transfer of General Fund and Fund for a Healthy Maine funding. Notwithstanding any other provision of law, the Commissioner of Human Services is authorized to transfer appropriations from the General Fund and Other Special Revenue allocations from the Fund for a Healthy Maine legislatively authorized to the Department of Human Services for operation of the elderly low-cost drug program pursuant to the Maine Revised Statutes, Title 22, section 254. Transfers under this section are limited to transfers from the Medical Care - Payments to Providers program to the Elderly Low- cost Drug program as a separate program for budget purposes. Transfers under this section may be accomplished by financial order upon the recommendation of the State Budget Officer and approval of the Governor.

Sec. B-3. Transfer of Other Special Revenue funding. Notwithstanding any other provision of law, the Commissioner of

Human Services is authorized to transfer Other Special Revenue allocations legislatively authorized to the Department of Human Services for purposes of providing prescription drug benefits under the Healthy Maine Prescription Program under the Maine Revised Statutes, Title 22, section 258. Transfers under this section are limited to transfers from the Medical Care - Payments to Providers program to the Maine Rx Program under the Maine Revised Statutes, Title 22, section 2681. Transfers under this section may be accomplished by financial order upon the recommendation of the State Budget Officer and approval of the Governor.

Sec. B-4. Retroactivity. Section 1 of this Part applies retroactively to May 26, 2001.

Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.

FISCAL NOTE

2001-02

APPROPRIATIONS/ALLOCATIONS

General Fund $5,000,000

REVENUES

General Fund $5,000,000

This bill increases the tax anticipation note authorization level from $30,000,000 to $100,000,000 and includes a General Fund appropriation of $5,000,000 in fiscal year 2001-02 for the Office of the Treasurer of State for the debt service payments related to a $100,000,000 tax anticipation note expected to be issued for fiscal year 2001-02. Interest earnings attributable to the tax anticipation note will increase General Fund revenue in fiscal year 2001-02 by approximately $5,000,000.

This bill also authorizes the Department of Human Services to transfer legislatively authorized prescription drug benefit funding by financial order.

These provisions are also included in Committee Amendment "A" to L.D. 855, the Part II budget.

SUMMARY

Part A of this bill provides authority for the Treasurer of State to borrow in anticipation of taxes through tax anticipation note authority not to exceed $100,000,000. The bill also provides a General Fund appropriation to pay the debt service requirements in fiscal year 2001-02 from the use of tax anticipation note authority up to $100,000,000. The debt service requirements in fiscal year 2001-02 will be offset from increased General Fund revenue from investment income earnings estimated at $5,000,000 from the proceeds of the tax anticipation note authority.

Part B of this bill authorizes the expenditure of funding among pharmaceutical benefits programs administered by the Department of Human Services.