Sec. K-17. Suspension of inflation and return on equity payments to nursing facilities. Notwithstanding any other provisions of law, the Department of Human Services may not include in its reimbursement of nursing facilities under the MaineCare program any amounts designed to provide for inflation adjustments or a return on equity capital for state fiscal years 2003-04 and 2004-05.

Sec. K-18. Merger. The Department of Human Services and the Department of Behavioral and Developmental Services shall merge into a single department to perform the duties of both departments. The departments shall commence merger activities immediately. The departments shall cooperate with any other entities of State Government and community providers involved in accomplishing this merger. The merger must:

1. Streamline services to clients;

2. Provide central points of contact for clients needing multiple services;

3. Coordinate use of contracts for service;

4. Maximize funding sources;

5. Minimize administrative overhead;

6. Eliminate duplication of services and administrative activities; and

7. Otherwise create efficiencies and cost-savings in the provision of services.

The departments shall participate in producing a plan to implement the merger, which must be submitted along with any necessary implementing legislation to the Second Regular Session of the 121st Legislature by January 1, 2004.

PART L

Sec. L-1. 12 MRSA §7017, sub-§1-A is enacted to read:

1-A.__Inflation adjustment.__Beginning in fiscal year 2004-05, and every biennium thereafter, the commissioner may